P&O NEDLLOYD BUYS FARRELL LINES

P&O NEDLLOYD BUYS FARRELL LINES

   P&O Nedlloyd said Tuesday that it had acquired U.S.-flag carrier Farrell Lines Inc., subject to final agreement and regulatory approval by the U.S. Maritime Administration.

   Five Farrell Line containerships of about 2,000 TEUs will be integrated into P&O Nedlloyd’s service between the U.S. and the Mediterranean, which will be upgraded to weekly. The new service, Farrell Mediterranean Express, will call directly at a number of East Mediterranean ports.

   In New York, industry sources said that a third-party ship management entity, yet to be named, will operate the vessels under their current subsidy arrangements for P&O Nedlloyd.

   “A key cargo segment is the U.S. military and preference cargo, which requires U.S.-flag ships,” P&O Nedlloyd said in a statement.

   Farrell Lines, originally named American South African Line, was founded in 1925 by John and James Farrell, and remained a family-owned company until now. It has a staff of 165, and offices in the U.S., Genoa, Italy, and Tblisi, Georgia.