MATSON NAVIGATION ACQUIRES TWO NEW CONTAINERSHIPS

MATSON NAVIGATION ACQUIRES TWO NEW CONTAINERSHIPS

   Matson Navigation Co. will add two new 2,600 TEU containerships to its fleet in late 2003 and 2004.

   The diesel-powered vessels, under construction in the Kvaerner Philadelphia Shipyard, will cost about $110 million each, including owner’s costs, the San Francisco-based Jones Act carrier said. They will replace two 30-year-old steam-powered vessels in the Matson fleet.

   To finance the purchase, Matson will tap its existing capital construction fund of $170 million, supplemented with external burrowings of about $50 million.

   Matson plans to deploy the two vessels in its U.S. West Coast/Hawaii trade. “This significant investment in our Hawaii service underscores our long-term commitment to remaining the state’s leading ocean carrier,” said C. Bradley Mulholland, president and chief executive officer of Matson, a subsidiary of Alexander & Baldwin.

   Mulholland said the vessels are designed to meet both current and future needs of the Hawaiian ocean freight market, such as bigger container sizes for both refrigerated and dry goods.