MATSON RECEIVES $150 MILLION IN TITLE XI FINANCING
The U.S. Maritime Administration has approved Title XI financing for two U.S.-flag containerships under construction for Matson Navigation Co.
The Title XI financing provides $75 million per ship. The 2,600-TEU ships are being built in the Kvaerner Philadelphia Shipyard in Philadelphia, and will be delivered to Matson’s West Coast/Hawaiian service in June 2003 and April 2004.
Title XI, a loan guarantee program managed by MarAd, was established under the 1936 Merchant Marine Act to encourage commercial shipbuilding in U.S. shipyards.
Matson plans to use the new diesel-powered containerships to replace two 30-year-old steam-powered vessels — the “Manulani” and “Manukai” — each with a capacity of 1,476 TEUs. The new vessels will be similar in size and speed to Matson’s “R.J. Pfeiffer,” built in 1992.