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Matson Orders 2 Containerships from Kvaerner

July 2002

Seafarers-contracted Matson Navigation Company on May 29 signed a contract with Kvaerner Philadelphia Shipyard Inc. for the purchase of two new containerships. The diesel-powered vessels, with a capacity for 2,600 containers (20-foot equivalent units) each, will cost approximately $110 million per ship and will be deployed in the company’s Hawaii service when construction is completed in late 2003 and in 2004, respectively. “This is an important commitment for all concerned, and I’m confident the unions of the SIUNA will continue living up to our end of the bargain by providing top-quality manpower for these new vessels,” stated SIU Vice President Contracts Augie Tellez. He added, “The construction of new vessels such as those ordered by Matson is a boon to America’s national security, because it helps ensure the availability of U.S. crews and it also helps maintain our domestic shipbuilding capability.” Matson President and CEO C. Bradley Mulholland said the new vessels “are similar in size and speed to Matson’s flagship MV R. J. Pfeiffer, the fastest and biggest containership currently operating in the U.S. domestic offshore trades. They will be equipped with a number of features specifically designed to meet Hawaii’s current and projected market requirements, particularly bigger container sizes for both refrigerated and dry containers.” In announcing the contract, Matson described the project as “part of an overall plan by Aker Kvaerner Yards, the Philadelphia Shipyard Development Corporation, the Delaware River Port Authority, the Commonwealth of Pennsylvania, and the City of Philadelphia to rebuild the former Philadelphia Naval Yard as a world class commercial shipyard.” The president of CEO of the Philadelphia yard, Ron McAlear, stated, “We are pleased to be working with Matson Navigation on its fleet renewal program and we are proud to have the historic name of Matson on the side of the first ships built at Kvaerner Philadelphia Shipyard. This contract confirms Matson’s confidence in Kvaerner’s ability to build high quality ships. “The Kvaerner Philadelphia Shipyard was built to provide U.S. shipowners with robust ships at realistic prices for the dedicated trades of the U.S. Jones Act,” he continued. Matson is a wholly owned subsidiary of Alexander & Baldwin, Inc. of Honolulu.