PRIMUS LOGISTICS

Matson continues to strengthen its ocean transportation services through fleet enhancements, industry leading on time arrival records and support of current efforts to improve Hawaii and Guam's port infrastructure to best meet future growth. In recent years, the Matson fleet has welcomed four newly-built containerships, all equipped with more fuel-efficient diesel engines, state-of-the-art shipboard technology and a number of "green" environmentally friendly design elements. We also modified one of our containerships by adding a new garage unit, increasing the company's ro-ro capacity by 120 percent. The fleet enhancement is part of a multi-phase program commenced in 2003 that provides Matson's auto customers two essential service features: frequency of service and ro-ro capacity. Equally important, Matson is working with other carriers and local officials in developing plans for a port modernization program in Hawaii and addressing similar issues in Guam related to upgrading its port infrastructure.