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FASTSHIP AND CP SHIPS SEAL TRANSATLANTIC PACT

MFCA NAMES STUBBLEFIELD CHAIRMAN

   FastShip Inc., the company that aims to launch a fast transatlantic service with specialized high-speed vessels, has made a cooperation agreement with the CP Ships group, the largest liner shipping operator on the transatlantic route.

   Under the deal, CP Ships will assume commercial and marketing management for FastShip’s transatlantic services, when they start in 2004. The Canadian-owned shipping group, which trades in the Atlantic under the names of Canada Maritime, Cast, Lykes Lines, TMM Lines and Contship Containerlines, is taking “a small equity position in FastShip,” CP Ships said.

   FastShip, headquartered in Philadelphia, aims to create a high-speed transatlantic transport network.

   CP Ships said that it will establish a FastShip management team. The team will provide dedicated sales and customer service and joint back-office activities in the U.S. and Europe; manage the inland transportation network, including rail, truck and short sea, between FastShip’s dedicated terminal in Cherbourg, France and the rest of Europe; and manage the container and chassis fleet in North America and Europe.

   The operation will allow for pooling of equipment between FastShip and CP Ships.

   “We see FastShip as a complement to our existing range of transatlantic services,” said Ray Miles, chief executive officer of CP Ships. The service will “provide a competitive advantage to customers who require high-speed transport that is less costly than air freight,” he added.

   Roland Bullard II, president of FastShip Inc., said that the agreement will allow FastShip to benefit from CP Ships’ proven brand-building and operating skills.

   The alliance will add credibility to the FastShip project, which has made slow progress for many years.

   FastShip said that it will target high value, time sensitive goods including electronics, apparel and perishable items, providing speed, reliability and frequency comparable to standard air freight at half the cost.

   Services will commence in 2004 with delivery of the first ship.

   Last summer, Schneider National announced an agreement in principle to provide intermodal and logistics services to FastShip in North America.