[121211.EN.SEA] Alexander & Baldwin Splits: Matson Does Shipping, A&B, Land And Agri-biz

MATSON parent Alexander & Baldwin (A&B) plans to split in two independently operated units with one handling shipping and logistics and the other dealing with agriculture and the property market.

Jones Act carrier Matson, which serves Hawaii and Guam, will become a separate company, taking in Matson Logistics and services to Micronesia and China.

Hawaii Shippers Council president Michael Hansen said the move was "probably a reflection of their disappointment with the failed operations of Matson's foreign flag containership service in the transpacific trade".

Matson added a second transpacific string last year between the US west coast and Asia, but when demand and prices dropped, it pulled out in less than a year, noted American Shipper. When the loop was discontinued, Matson said the service had recorded operating losses of US$50 million.

Matson president Matthew Cox becomes CEO and A&B chairman Walter Dods becomes chairman of the new Matson. Company real estate and agriculture interests will retain the Alexander & Baldwin name and A&B chief executive Stanley Kuriyama becomes both chairman and CEO agriculture and property firm.

Said Mr Cox: "Matson is well positioned in the markets it serves and we are excited about its growth prospects and future value creation opportunities as an independent company. Matson's valuable assets, strong balance sheet, and premium brand and service model position us to seek expansion into other markets."

Each of the corporations will have its own independent board of directors with industry-specific expertise.

Source : HKSG.