Matson to re-enter transpacific market after 35 years

Matson to re-enter transpacific market after 35 years    Matson will re-enter the transpacific trade after an absence of over 35 years when its 10-year vessel operating alliance in the transpacific and U.S. mainland/Guam trade agreement with APL ends early next year.
   Under terms of the agreement only APL serves the transpacific trade while Matson exclusively covers the U.S. mainland/Guam trade.
   Matson was one of the first container operators in the transpacific until it left the trade in 1970.
   Matson said it intends to invest $365 million in vessel, container and terminal assets to launch a five-ship weekly U.S. West Coast/Hawaii/Guam/China service beginning in February 2006.
   “This decision allows Matson to retain its competitive position in the Guam service, while simultaneously strengthening the Hawaii service and adding a new growth opportunity with carriage of cargo from China,” said Allen Doane, president and chief executive officer of Honolulu-based Alexander & Baldwin Inc., of which Matson is a wholly owned subsidiary.
   To help facilitate its return to the transpacific, the U.S. Jones Act shipping line has entered into cash on delivery purchase contracts for two new U.S.-built containerships with Kvaerner Philadelphia Shipyard Inc. The ships are expected to be delivered and placed in service by July 2005 and June 2006 at an estimated combined cost of $315 million. Matson has the option to time charter these vessels in lieu of purchasing. It also will have a right of first refusal with Kvaerner for up to four other containerships of similar design that are deliverable by the Philadelphia yard before June 2010.
   “Matson’s highest priority for the past two years has been the development of a viable replacement service for Guam,” said James Andrasick, Matson president and CEO. “We also have a continuing interest in expanding our reach into new markets, and at the same time strengthening our service reliability to our home state of Hawaii.”