Mar 1, 2005 9:07 AM, from staff and wire reports

Matson Navigation Co Inc, the ocean transportation subsidiary of Alexander & Baldwin Inc, intends to invest $365 million in vessel, container, and terminal assets to launch a new Guam and China service beginning in February 2006. That is when its present 10-year alliance agreement with APL expires.

As part of that plan, Matson has entered into cash-on-delivery purchase contracts for two new United States-built containerships with Kvaerner Philadelphia Shipyard Inc (KPSI).

The two new ships are expected to be delivered and placed in service by July 2005 and June 2006 at an estimated combined cost of $315 million.

By mid-2006, both new ships will be deployed in a weekly West Coast-Hawaii-Guam-China service together with three of Matson’s diesel-powered containerships. The planned route will include port calls at Long Beach, Honolulu, Guam, and two ports in China.