Cancellation Clause Waived for $190M Contract

Matson Navigation Company Inc has waived a cancellation clause in the $190 million contract with Kvaerner Philadelphia Shipyards Inc for delivery of two container vessels. The contract was signed in May 2002, but it has not been recognised as a firm order and included in Aker Kvaerner’s order reserve before. The two diesel-powered vessels, with a capacity for 2,600 containers (twenty-foot equivalent units) each, will cost approximately US$110 million per ship, including owner’s costs, and will be deployed in Matson’s Hawaii service when construction is completed in 2003 and 2004, respectively.