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The Honolulu Advertiser

Posted on: Wednesday, June 29, 2005

Matson marks ship's maiden voyage

By Audrey McAvoy
Associated Press

Matson Navigation Co. yesterday commemorated the maiden voyage of the MV Manulani, a container ship the company plans to run on a route linking two Chinese ports with California starting next year.

Jim Andrasick, President and CEO of Matson Navigation Co., helped celebrate the start of the first voyage for the MV Manulani, the company's newest container ship.

Photos by Bruce Asato • The Honolulu Advertiser

The new service will be a chance for Hawai'i's largest shipping company to break into the China market. China has fast become one of the world's biggest exporters.

Matson will use new ships built by Kvaerner Philadelphia Shipyard Inc., which grew out of old Navy shipbuilding facilities in Pennsylvania, on the route.

"It's good for us because of the confluence of the availability of these U.S.-built vessels and our belief, collectively, that the China market, long-term, will continue to expand in terms of export capability," Matson Chairman Jim Andrasick said at a news conference.

The Manulani, which means heavenly bird, is one of five ships Matson plans to run on the trans-Pacific route.

The vessels will drop off cargo in Hawai'i and Guam on their way westward from Long Beach, Calif., and then pick up goods in the Chinese ports of Ningbo and Shanghai for a nonstop trip back.

The China leg will make the return trip of the Pacific route Matson has long run more profitable.

For the past 10 years, Matson has effectively rented out its ships for the way back from the Western Pacific as it carried cargo to the Mainland on behalf of shipper APL Ltd.

Capt. Paul T. Shulman was on the bridge of the MB Manulani yesterday. Matson will use the new ship on its China-Hawai'i-California route that will be launched next year.
Andrasick said Matson's vessels would be competitive with bigger shippers like Maersk-Sealand due to their 11-day voyage time from Shanghai to Long Beach, which he said was "about as good as it gets."

Matson's smaller vessels also may be unloaded in a day and a half, a much shorter time than larger container ships, which can require three to four days for all cargo to be removed, he said.

While Matson has potential to grow from the once-a-week voyage, Andrasick said its vessels will account for less than one percent of the vast cargo business between China and the U.S. West Coast — even if all it's containers leave Shanghai for Long Beach full.

The Manulani will be used on Matson's Hawai'i-West Coast routes until next February when Matson will launch the China service. It was due to leave for Long Beach yesterday evening.

Manulani is the third of four vessels Matson has contracted Kvaerner Philadelphia to build. The shipbuilder started in 2001 at the site of the former Philadelphia Navy Shipyard.

San Francisco-based Matson, a subsidiary of Honolulu-based Alexander & Baldwin Inc., handles roughly 70 percent of cargo shipped between Hawai'i and the Mainland. It also controls about 50 percent of the Guam market.