Matson to Build Two New Con-Ro Ships For Hawaii Service

Matson, Inc. today announced that its subsidiary, Matson Navigation Company, Inc., a leading U.S. carrier in the Pacific, has signed a contract with General Dynamics NASSCO, a wholly owned subsidiary of General Dynamics, to build two new combination container and roll-on/roll-off (“Con-Ro”) vessels for its Hawaii fleet at a contract price of $511 million for both vessels with deliveries scheduled for the end of 2019 and mid-year 2020.

Artist rendering of Matson Kanaloa Class vessel. Courtesy General Dynamics NASSCO

Artist rendering of Matson Kanaloa Class vessel. Courtesy General Dynamics NASSCO

Matson is calling these vessels the Kanaloa Class in honor of the ocean deity revered in the native Hawaiian culture and will name each of the new vessels after predecessor ships from its 134-year history.  The first vessel will be named Lurline, the sixth Matson vessel to carry that name, while the second vessel will be its fifth named Matsonia.

The Kanaloa Class vessels will be built on a 3,500 TEU vessel platform, which is 265 meters long, 34.9 meters wide (beam), with a deep draft of 11.5 meters and enclosed garage space for up to 800 vehicles.  In addition, the new vessels will have state-of-the-art green technology features, including a fuel efficient hull design, environmentally safe double hull fuel tanks, fresh water ballast systems and dual-fuel engines, meaning that they will be able to operate at speeds up to 23 knots on either conventional fuel oils or liquefied natural gas (“LNG”) with some adaptation for LNG.  These advancements are important to Hawaii as a means to reduce fuel consumption, and will result in significant emissions reductions over time.

The two Kanaloa Class ships will replace three diesel powered vessels in active service, which will be moved to reserve status.  With delivery of the Kanaloa Class ships, along with its two new Aloha Class ships, Matson will have completed the renewal of its Hawaii fleet, allowing it to retire its seven older steamship vessels that will no longer comply with environmental regulations in 2020 without substantial modification.

The larger capacity of the Aloha Class and Kanaloa Class vessels will allow Matson to return to an optimal nine-ship fleet deployment in Hawaii, increasing efficiency and lowering operating costs.  The Kanaloa Class vessels are expected to be more fuel efficient than the ships they will replace and will add rolling stock carrying capacity while lowering operating, repair and maintenance, and dry-docking costs.

“This vessel order underscores Matson’s long-standing commitment to serve Hawaii with the largest, most reliable, efficient and environmentally friendly fleet for the long-term,” said Matt Cox, president and CEO.  “The Kanaloa Class ships will be built specifically to meet Hawaii’s freight demands while reducing our environmental impact and improving our efficiency for decades to come.”

Matson expects to finance the Kanaloa Class vessels primarily through cash flows from operations, borrowing available under the Company’s unsecured revolving credit facility and additional debt financings, which could include U.S. Government guaranteed vessel finance bonds (Title XI).

Matson’s ‘Ka Ipu ‘Aina’ (Container for the Land) Grants Available

Matson shipping company announces it’s ‘Ka Ipu ‘Aina’ (Container for the Land) Grants are available. This program is designed to underscore Matson’s environmental commitment to Hawai’i’s communities and environment.

Matson’s ‘Ka Ipu ‘Aina’ (Container for the Land) Grant was used for a clean up in Hawaii Ocean View Estates.

Matson’s ‘Ka Ipu ‘Aina’ (Container for the Land) Grant was used for a clean up in Hawaii Ocean View Estates.

Matson will donate the use of container equipment on the Big Island for environmental cleanup projects arranged by non-profit organizations.  They will pay the trucking expenses incurred in the delivery and pickup of the containers.

In addition, Matson will make a $1000 cash contribution to each of the non-profits that successfully complete a cleanup initiative.

Community Clean-up

Community Clean-up

Note:  There is a time frame for the clean up. Contact:  Mona 961-5286.

Governor Abercrombie Responds to Molasses Spill in Honolulu Harbor – Matson Accepts Responsibility

Gov. Neil Abercrombie today released the following statement about the state’s response to the Honolulu Harbor molasses spill:

abercrombieheader
“The emergency response programs of the Department of Health, the aquatic resources division of the Department of Land and Natural Resources, and the Department of Transportation Harbors staff are working as a team to respond to this spill, reduce its impact and protect the health of our people. The affected area is limited to a portion of the Honolulu Harbor channel and Keehi Lagoon.

“Matson accepts responsibility for the spill and is working directly with the state and federal agencies to respond to this unprecedented event.

“My administration will do everything needed to restore harbor channel waters to the highest quality and take all appropriate action to ensure that such a spill will not reoccur.”

Matson Cutting 10% of Employees… 60 Jobs

Alexander & Baldwin said Tuesday it will cut 10 percent of its workforce at Matson Navigation Co., Hawaii’s largest ocean shipper…

…Matson will eliminate 60 non-union positions, which come on top of a hiring freeze that began in 2007 and continued into 2008…

…In less than four months, A&B stock has lost more than half of its value, tumbling from $44 a share at the end of September.

More Here