APL in US$164m deal

PUBLISHED : Wednesday, 27 September, 1995, 12:00am
UPDATED : Wednesday, 27 September, 1995, 12:00am

AMERICAN President Companies, parent of American President Lines (APL), and Alexander & Baldwin (A&B) of Honolulu have taken the first step in their 10-year strategic alliance first announced in April.

Under an agreement signed this week, APL will sell six ships and some assets in Guam to A&B subsidiary Matson Navigation for US$164 million.

The two companies will share the cargo carrying capacity of five Matson vessels, including four vessels acquired from APL, on a route serving the US Pacific coast, Hawaii, Guam, South Korea and Japan.

After the sale is closed in January, APL will charter the ships back for continued operation in its transpacific services until an alliance slot hire agreement is signed in the first quarter of next year.

Matson will operate five vessels on the route between US Pacific coast to Hawaii and Guam, and make the vessels available to APL for Far East sailings.