Matson Navigation Company, Inc.'s (Matson)today signed a contract with Kvaerner Philadelphia Shipyard Inc.
the purchase of two new containerships. The diesel-powered vessels,
capacity for 2,600 containers (twenty-foot equivalent units) each, will
approximately $110 million per ship, including owner's costs, and will
deployed in the company's Hawaii service
when construction is completed
late 2003 and in 2004, respectively.
"These two new ships will help ensure that Matson continues to provide
Hawaii with efficient, dependable ocean transportation services of
quality and value," said C. Bradley Mulholland, Matson president and
executive officer. "This significant investment in our Hawaii service
underscores our long-term commitment to remaining the state's leading
carrier. The vessels are similar in size and speed to Matson's
R. J. Pfeiffer, the fastest and biggest containership currently
the U.S. domestic offshore trades. They will be equipped with a number
features specifically designed to meet Hawaii's current and projected
requirements, particularly bigger container sizes for both refrigerated
dry containers. This will allow us to efficiently accommodate the
diversified mix of cargo needed to support the state's island economy."
In addition to being a good match for the Matson fleet, the Kvaerner
offer the company a unique opportunity to purchase high quality,
Jones Act vessels at a relatively low cost. The two ship construction
project has been underway since 1999 and is part of an overall plan by
Kvaerner Yards, the Philadelphia Shipyard Development Corporation
the Delaware River Port Authority (DRPA), the Commonwealth of
and the City of Philadelphia to rebuild the former Philadelphia Naval
as a world class commercial shipyard.
"We are pleased to be working with Matson Navigation on its fleet
program," Ron McAlear, president and CEO of KPSI said, "and we are
have the historic name of Matson on the side of the first ships built
Kvaerner Philadelphia Shipyard. This contract confirms Matson's
in Kvaerner's ability to build high quality ships. The Kvaerner
Philadelphia Shipyard was built to provide U.S. ship-owners with robust
ships at realistic prices for the dedicated trades of the U.S. Jones
This contract will be the first of many for those trades and proves the
value of combining European shipbuilding technology with American
"The acquisition of these two new vessels is part of Matson's overall
strategy of maximizing the value of our investments in our Hawaii
providing superior and continuously improving service levels to our
customers," Mulholland added. "Matson historically has modified and
enhanced its fleet to meet the changing needs of our customers.
this include the SSs Lurline and Matsonia mid-body replacements, which
increased their capacity, and conversion of the SSs Maui and Kauai to
open-top vessels. We have also purchased suitable Jones Act vessels as
opportunities have arisen."