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Matson to expand into South Pacific

By Star-Advertiser staff

LAST UPDATED: 01:36 p.m. HST, Dec 26, 2012

Hawaii-based ocean cargo transportation firm Matson Inc. announced plans today to add routes in the South Pacific by acquiring assets of a struggling New Zealand company.

Matson said it signed an agreement to buy four ships, roughly 1,500 pieces of container equipment and other assets of Reef Shipping for an undisclosed price.

The purchase is expected to close on Monday, upon which Matson would continue providing service to islands served by Reef.

Reef provides service from New Zealand and Fiji to Nauru, the Solomon Islands, Tahiti, Samoa, the Cook Islands, Wallis and Futuna territories, Niue, Tonga,  Vanuatu, Tarawa and Majuro.

The routes will be new for Matson, which mainly serves Hawaii from West Coast ports and China but also serves Guam, the Commonwealth of the Northern Marianas Islands, the Republic of Palau, the Federated States of Micronesia and the Republic of the Marshall Islands.

Reef, a subsidiary of Reef Group Ltd., was placed into receivership last month and has undergone struggles to maintain service.

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Matson expands presence in Pacific

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cojef wrote:
A big bite for Matson, maybe. Reef has been unable to service the route and there must be a valid reason. It just does not pay off. Growth potential for the Island Nations are almost nil. Bad decision??? ? Hope not.
on December 26,2012 | 01:59PM
steveoctober wrote:
Look forward to higher shipping rates. This is a major loser deal that isn't going to make any money, but makes management look like they are doing something to keep busy with an expansion plan for that hoard of cash they have available. More evidence to repeal the Jones act immediately.
on December 26,2012 | 05:32PM
ichiban wrote:
The Jones Act is going to rear its ugly head as Matson begins commerce through Reef Shipping which means goods entering Hawaii port will be costlier to the consumers of these islands.Because of the "Protectionist " stance of \the Jones Act it prevents foreign vessels to compete for US commerce.
on December 27,2012 | 12:45AM
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