Matson Navigation Company, Inc.; Notice of Application for Written Consent Pursuant to Section 506 of the Merchant Marine Act, 1936, as amended, for the Transfer of the President Hoover, President Grant, and President Tyler to the Domestic Trade

DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket S-921]

Matson Navigation Company, Inc.; Notice of Application for

Written Consent Pursuant to Section 506 of the Merchant Marine Act,

1936, as amended, for the Transfer of the President Hoover, President

Grant, and President Tyler to the Domestic Trade

Notice is hereby given that Matson Navigation Company, Inc.

(Matson), by letter of June 19, 1995, requests a waiver of the

provisions of section 506 of the Merchant Marine Act, 1936, as amended

(Act), so as to permit Matson to operate in exclusively domestic

service during the year commencing December 1, 1995, the U.S.-Flag C-8

containerships the President Hoover, President Grant, and President

Tyler (Vessels) not to exceed six months, with respect to each vessel,

during that year period. The Vessels were built in the United States

with the aid of construction-differential subsidy (CDS), and are

currently owned by American President Lines, Ltd. (APL). Matson intends

to purchase the Vessel from APL.

Matson states that it intends to use the C-8S both in its

Transpacific Alliance (Alliance) service, as well as in its Pacific

Coast Shuttle (PCS) service, where they will engage on voyages among

Vancouver, British Colombia, Canada; Seattle, Washington; Los Angeles

and Oakland, California. The itinerary of the Alliance service vessels

westbound will involve departures from California ports with calls at

Honolulu and Guam outbound before arrival as Asian ports. The outbound

calls at Hawaii and Guam are specifically permitted under section 506

of the Act. Matson explains that due to operational exigencies involved

in the start-up of the Alliance service, it is likely that the Vessels

will have to be used interchangeably among the Alliance and PCS

services for an indefinite period. However, Matson indicates that only

two of the Vessels will be used in the PCS service at any time.

Acquisition of the C-8s will mean that the PCS can be expanded to a

twice weekly service, and that Oakland, CA can be added as port of

call.

Any person, firm, or corporation having any interest in the

application for section 506 consent and desiring to submit comments

concerning Matson's request must by 5;00 p.m. on July 17, 1995, file

written comments in triplicate, to the Secretary, Maritime

Administration, Room 7210, Nassif Building, 400 Seventh Street, SW.,

Washington, D.C. 20590. The Maritime Administration, as a matter of

discretion, will consider any comments submitted and take such action

as may be deemed appropriate.

(Catalog of Federal Domestic Assistance Program No. 20.800

Construction-Differential Subsidies (CDS)).

By Order of the Maritime Administrator.

Dated: June 27, 1995.

Joel C. Richard,

Secretary, Maritime Administration.