APL completes six-vessel sale

PUBLISHED : Monday, 15 January, 1996, 12:00am
UPDATED : Monday, 15 January, 1996, 12:00am

AMERICAN President Lines (APL) has completed the sale of six containerships to Matson Navigation, a subsidiary of Alexander & Baldwin of the United States.

The sale is the first step in the formation of a 10-year strategic alliance between APL and Matson, due to start next month.

As part of the alliance, the two companies will share slots on five Matson vessels, including four of the ships acquired from APL, on a route serving the US Pacific coast, Hawaii, Guam, South Korea and Japan.

Matson will operate the vessels in the alliance and utilise their space on westbound voyages from the US Pacific coast to Hawaii and Guam.

Space on the vessels will be made available to APL for the return eastbound voyages from the Far East.

APL will bareboat charter five of the vessels from Matson for continued operation in its transpacific services until the alliance begins, after which it will sell certain of its assets in Guam to Matson.

APL expects to earn about US$164 million from the deal.