MATSON PROPOSES CANADA-U.S. WEST COAST-HAWAII SERVICE
Matson Navigation Co. is hoping to win government approval of a new service linking Vancouver, Seattle, Oakland and Honolulu.
The company wants to launch the service early next year. But Maritime Administration approval is required, since Matson plans to operate the service with two ships built with government subsidy.
Ships built with government subsidy are not entitled to participate in the domestic offshore, or Jones Act, trades. Because the service links Canada and the U.S., Matson views its proposal as an international trade service.
Matson plans to operate the service in conjunction with its existing Pacific Coast shuttle service between Vancouver, Los Angeles and Seattle. Matson says the shuttle service has grown steadily as a competitive alternative to rail and truck transportation, generating about $25 million in annual revenue.