A&B And APC Units Ink Strategic Alliance; Implementation Agreement Follows Boards' Approvals.HONOLULU--(BUSINESS WIRE)--Sept. 25, 1995--The ocean- transportation subsidiaries of Alexander & Baldwin, Inc. (A&B) and American President
This signing follows approval by the companies' respective boards. Matson Navigation Company Matson Navigation Company, a subsidiary of Alexander & Baldwin, is a private ocean transportation company with roots extending into the late 19th century. It is credited with introducing mass tourism to Hawaii with the opening of the Moana Hotel (now known as the Moana Surfrider Hotel) , Inc. (Matson) and American President Lines American President Lines Ltd. (now simply referred to as APL) is the world's sixth largest container transportation and shipping company, providing services to more than 140 countries through a network combining intermodal freight transport operations with IT and e-commerce. , Ltd. (APL (A Programming Language) A high-level mathematical programming language noted for its brevity and matrix generation capabilities. Developed by Kenneth Iverson in the mid-1960s, it runs on micros to mainframes and is often used to develop mathematical models. ) agreed that, subject to certain conditions, six APL ships and certain APL-owned assets in Guam will be purchased by Matson for approximately $164 million and that the two companies will share the cargo-carrying capacity of five Matson vessels, including four of the ships acquired from APL, on a route serving the U.S. Pacific Coast, Hawaii, Guam, Korea and Japan. "This agreement provides important benefits to both carriers," said A&B chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , John C. Couch. "Each will improve the underlying economics in its core service and offer improved service to its customers. Matson gains efficiencies and improves asset utilization in its keystone Hawaii Service. Matson also adds new business through its return to service to the island community of Guam, where the company had operated previously, between 1974 and 1979. Among other advantages, many prominent customers in Matson's Hawaii service also participate in the Guam trade." "I am especially pleased to see this agreement forged between two companies with such strong historic commitments to shipping in the Pacific. Along with their respective traditions of Pacific service, APL and Matson both have a long history of innovation in their operations, through developments in intermodal services and information technology. This is an opportunity to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the strengths of both organizations." The six ships to be sold to Matson include three C-9-class vessels, the MVs President Lincoln, President Monroe and President Washington, which are the largest and most modern American-built vessels presently in the foreign trades, and three C-8-class vessels, SSs President Grant, President Hoover and President Tyler. The sale is planned to close in January 1996. APL then will bareboat charter the vessels from Matson for continued operation in APL's trans-Pacific services until an alliance slot-hire agreement becomes effective. Under the alliance slot-hire agreement, which is expected to be signed and implemented in the first quarter of 1996, Matson will operate five vessels, utilize the vessels' space on westbound voyages from the U.S. Pacific Coast to Hawaii and Guam, and then make the vessels' space available to APL for the return eastbound voyages from the Far East. All of the agreements are subject to certain conditions, including necessary regulatory approvals. American President Companies, Ltd. (NYSE NYSE See: New York Stock Exchange :APS), headquartered in Oakland, California, provides container transportation and related services in Asia, the Americas, Europe and the Middle East through an intermodal system combining ocean, rail and truck transportation. Alexander & Baldwin, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALEX), headquartered in Honolulu, has two major subsidiaries: Matson Navigation Company, Inc. (ocean transportation) and A&B-Hawaii, Inc. (property development and management, and food products). CONTACT: Alexander & Baldwin, Honolulu Meredith J. Ching For the Chinese surname Ching 程, see . For the Chinese dynasty, see . The ching (Thai: ฉิ่ง; sometimes romanized as chhing) are small bowl-shaped finger cymbals of thick and heavy bronze, with a broad rim commonly used in Cambodia and , 808/525-6669 (Media) John B. Kelley, 808/525-8422 (Investor) or Matson Navigation Company Jeff S. Hull, 415/957-4534 |
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