Aker Philly Delivers Containership to Matson

Matson Navigation Company, Inc. announced that its newest containership, MV Maunalei, has been delivered to the company by Aker Philadelphia Shipyard. The delivery of the Maunalei represents the completion of a historic four ship modernization and replacement strategy, following the delivery of the Manukai in 2003, the Maunawili in 2004, and the Manulani in 2005. "Having added only one new ship to the Matson fleet between 1983 and 2002, the four new vessels with a capital cost of over $500 million are essential to the current and future success of Matson," said W. Allen Doane, the Chairman of Matson and the Chairman and CEO of its parent company, Alexander & Baldwin. "The average age of Matson's ships was 25 years before the first ship was delivered in 2003. Today the age is a more youthful 14 years. I am pleased that this unparalleled investment has been completed and its objectives are being met or exceeded." The purchase of the Maunalei will be financed through a combination of cash balances in Matson's Capital Construction Fund (CCF), which allows Matson to significantly accelerate the tax depreciation of the vessel, and committed long-term financing at interest rates 38 basis points over LIBOR for the first five years of the facility. The Maunalei will be christened on July 22 by Mary Mildred "Millie" Akaka, wife of Senator Daniel Akaka (D-Hawaii), at a formal ceremony at the shipyard. Among the speakers at the ceremony will be Allen Doane, General Norton Schwartz, Commander, U.S. Transportation Command, Representative Neil Abercrombie (D-Hawaii) and Congresswoman Madeleine Bordallo (D-Guam). The vessel will depart Philadelphia in August and begin service later that month. Maunalei is Hawaiian for mountain wreath or lei.