Asia/Pacific News
Matson Deal Extends Service in South Pacific
U.S. carrier Matson Inc. [NYSE:MATX] (Matson) says it will acquire assets, including four vessels, from New Zealand-based Reef Shipping, extending its service in the South Pacific market.
"With this acquisition, Matson continues to expand its geographic reach into the South Pacific, and build on its well-earned expertise as a Pacific island carrier," said Matt Cox, president and CEO.
"While the purchase itself is relatively small, it complements our growing network of Pacific island services. "
Cox said Matson vessels, including freighters and luxury passenger ships, served the South Pacific from the 1920s through the 1970s.
"We are proud to return today to provide the same level of superior customer service and on-time delivery that is the hallmark of our other trade lanes," he said.
Matson did not disclose terms of the deal, but it said it should close around the end of the year.
The acquisition means Matson will provide service on Reef's core trade lanes, from Auckland, New Zealand and Fiji to Nauru, the Solomon Islands, Tahiti, Samoa, Cook Islands, Niue, Tonga, Wallis and Futuna, Vanuatu, Tarawa, and Majuro, which represent all new markets for the company.
Matson already provides service to Hawaii, Guam, the Commonwealth of the Northern Marianas Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.
Many in the maritime industries, including Jean-Hervé Jenn, CEO of marine IT solutions company Inatech Ltd., have been predicting increasing consolidation in the shipping industry because of difficult market conditions.
In Matson's Q3 earnings statement, Cox said the company has a strong balance sheet that would provide "ample capacity for future investments in our people, our businesses and new markets."
