Matson Inc's Business Segments

Matson, Inc., a holding company incorporated in January 2012, in the State of Hawaii, and its subsidiaries, is a leading provider of ocean transportation and logistics services. The Company consists of two segments, Ocean Transportation and Logistics.

Ocean Transportation: Matson’s Ocean Transportation business is conducted through Matson Navigation Company, Inc. (“MatNav”), a wholly-owned subsidiary of Matson, Inc. Founded in 1882, MatNav is an asset-based business that provides a vital lifeline of ocean freight transportation services to the island economies of Hawaii, Guam and Micronesia, and also operates a premium, expedited service from China to Long Beach, California. In January 2013, Matson began providing ocean services to various islands in the South Pacific including New Zealand, Fiji, Samoa, American Samoa, Tonga and the Cook Islands, and later expanded service to include Australia to the Solomon Islands, and Nauru. Matson’s fleet consists of 18 owned and three chartered vessels including containerships, combination container/roll-on/roll-off ships, and custom-designed barges.

Matson also provides container stevedoring, container equipment maintenance and other terminal services for MatNav and other ocean carriers through Matson Terminals, Inc. (“Matson Terminals”), a wholly-owned subsidiary of MatNav, on the islands of Oahu, Hawaii, Maui and Kauai.

Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”) through a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc. (“SSA”), a subsidiary of Carrix, Inc. SSAT provides terminal and stevedoring services to various carriers at six terminal facilities on the U.S. West Coast, including to MatNav at several of those facilities. Matson records its share of income in the joint venture in operating expenses within the Ocean Transportation segment due to the nature of SSAT’s operations.

Logistics: Matson’s Logistics business is conducted through Matson Logistics, Inc. a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics is an asset-light business that provides multimodal transportation, including domestic and international rail intermodal service (“Intermodal”); long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload services, expedited freight services (collectively “Highway”); and warehousing and distribution services. The warehousing and distribution services are provided in the U.S. by Matson Logistics Warehousing, Inc. (“Matson Logistics Warehousing”), a wholly-owned subsidiary of Matson Logistics.

Matson, Inc. a leading provider of ocean transportation and logistics services, is primarily engaged in a diversified business model that encompasses several key segments, products, and services tailored to meet the needs of its vast customer base. The company operates a variety of services that are integral to the movement of goods across the Pacific Ocean and beyond.

1. Ocean Transportation Services

A. Hawaii Service
Matson provides comprehensive ocean freight services between major U.S. West Coast ports—Long Beach, Oakland, and Seattle—and the primary ports in Hawaii, including Oahu, Kauai, Maui, and the Big Island. As the largest carrier of ocean cargo to Hawaii, Matson’s services encompass:
- Lift-On/Lift-Off (Lo/Lo) Services: Involves lifting containers on and off the vessel using cranes.
- Roll-On/Roll-Off (Ro/Ro) Services: For vehicles and large cargo that can be driven on and off the vessel without cranes.
- Conventional Services: For cargo that does not fit within standard container sizes.

The westbound cargo from the U.S. West Coast to Hawaii primarily includes:
- Dry containers with varied commodities
- Refrigerated goods for perishable items
- Packaged foods
- Building materials
- Automobiles
- Household goods

Eastbound cargo includes:
- Automobiles
- Household goods
- Dry containers with assorted commodities
- Food and beverages
- Livestock

B. China Service
Matson has established an integrated service that connects Hawaii, Guam, and China. Utilizing five dedicated containerships, the service operates weekly voyages from Long Beach to Honolulu, followed by destinations in Guam and then onward to the major Chinese ports of Xiamen, Ningbo, and Shanghai. This service caters to a diverse range of cargo, ensuring connectivity and efficiency for international shipping needs.

C. Guam and Micronesia Services
Matson offers weekly container and conventional freight services specifically for Guam, providing an essential link between the U.S. West Coast and this vital territory. Furthermore, Matson connects Guam to the Commonwealth of the Northern Mariana Islands, as well as offering services to various islands across Micronesia, including:
- Republic of the Marshall Islands (Kwajalein, Ebeye, Majuro)
- Federated States of Micronesia (Yap, Pohnpei, Chuuk, Kosrae)
- Republic of Palau

Cargo for these regions is typically transshipped through Guam, enhancing operational efficiency.

D. Matson South Pacific
In a strategic move to expand its services, Matson acquired the assets of a South Pacific ocean freight carrier based in Auckland, New Zealand, which now operates under the name Matson South Pacific.The service facilitates freight transport between New Zealand, Australia, and various South Pacific Islands, including:
- Nauru
- Fiji
- Samoa
- American Samoa
- Tonga
- Cook Islands
- Solomon Islands

Fleet and Vessel Information
Matson’s fleet consists of 18 owned and three chartered vessels, with a significant investment in modern maritime equipment valued at approximately $1.3 billion. The fleet features:
- 11 containerships designed to accommodate containerized freight.
- Three combination container/roll-on/roll-off vessels that support vehicle transport.
- One roll-on/roll-off barge and three container barges, showcasing Matsons diverse capabilities.

An ongoing initiative includes the construction of two new Aloha-class containerships equipped with dual-fuel capable engines, set to enhance the environmental sustainability of Matson’s operations.

Terminal Services

Matson Terminals
Matson operates a critical terminal in Honolulu spanning 105 acres, where it provides stevedoring and container equipment maintenance. The facility can accommodate multiple vessels simultaneously and owns seven cranes to facilitate cargo movement. Additionally, Matson offers terminal services across Hawaii, including Maui and Kauai, reinforcing its logistical capabilities.

SSAT Operations
In collaboration with the Sea Star Atlantic Transportation (SSAT) joint venture, Matson provides terminal and stevedoring services across six facilities on the U.S. West Coast, expanding its reach and service offering to various carriers.

Logistics Services

Matson Logistics
Matson Logistics serves as a transportation intermediary, providing comprehensive intermodal services that include:
- Rail services
- Highway transport
- Warehousing and distribution
- Third-party logistics solutions

This segment also encompasses freight forwarding, customs brokerage, purchase order management, and non-vessel operating common carrier services. Matson Logistics operates warehouses in both Northern and Southern California, as well as in Georgia, enabling a full spectrum of logistics support.

Through operational efficiencies, such as volume purchasing of transportation services and advanced tracking systems, Matson Logistics helps clients streamline their supply chains. The logistic segment runs six customer service centers and maintains a market presence with sales offices throughout the United States and in China, catering to both domestic and international clientele.

In summary, Matson, Inc. offers a rich portfolio of ocean transportation and logistics services that are crucial to connecting the U.S. mainland with surrounding Pacific regions and facilitating effective supply chain management across international borders.