Pasha Hawaii Transport Lines (PHTL) Resumes Ship Construction

Friday, April 4, 2003

Corte Madera, CA— Pasha Hawaii Transport Lines (PHTL), a joint venture between The Pasha Group and Van Ommeren Shipping (USA) LLC, announced it has resumed construction of the motor vessel Jean Anne at VT Halter Marine’s (VTHM) shipyard in Pascagoula, MS. The first of two planned U.S. Flag, Pure Car and Truck Carriers, the Jean Anne will operate between the West Coast and Hawaii. Each of the vessels will accommodate the equivalent of 4,300 vehicles in a drive on, drive off fashion commonly known as RoRo. In addition, each will also have capabilities for the carriage of Over, High and Wide cargoes as well as trailers and containers of various sizes. Construction financing for the Jean Anne is guaranteed under Title XI, a loan program sponsored by the U.S. Maritime Administration (MARAD) in Washington, D.C.

Construction of the Jean Anne was interrupted for more than 18 months when Friede Goldman (parent company to Halter Marine) filed for Chapter 11 bankruptcy relief in April of 2001. Their Pascagoula shipyard has since been acquired by VTHM, with whom PHTL has negotiated an agreement to complete construction of the Jean Anne. PHTL, with the strong support of MARAD, reached agreement last December with its surety company on financial terms that allowed PHTL to re-engage VTHM in a contract to complete construction of the Jean Anne.

Restarted on February 17, the construction will be completed in the autumn of 2004. PHTL and VT Halter Marine are planning the construction of a second, identical sister ship scheduled for delivery in 2005.

Based in Corte Madera, California, The Pasha Group has more than 55 years' experience in automobile logistics, vehicle processing and transportation. Pasha offers point-to-point logistics, terminal operations, distribution management and information tracking systems. Connecticut-based Van Ommeren Shipping (USA) LLC is a well-known ship owner and operator, established in 1839, that currently operates four U.S. flag vessels in the U.S. preference trade and the international market.

Pasha and Van Ommeren will combine their respective expertise in PHTL, with Pasha assuming responsibility for marketing, terminal operations and documentation, and Van Ommeren assuming responsibility for vessel construction and operations.

For more information contact Gary Kaliher, The Pasha Group, 415-927-6610.