Matson, Inc. (NYSE:MATX) Q3 2023 Earnings Call Transcript

Matt Cox : This is Matt, Ben. So the first vessel that we have installed LNG on that it’s now operating on LNG is the Daniel K. Inouye. And it was — it went through a conversion process, adding tanks and manifolds and all that. As you know, the engine was already set to consume or burn LNG fuel when we ordered it. So that vessel is out, and it’s on way. The second vessel that’s going to go through a gas conversion or a gas and engine conversion is in the shipyard now. And we have another vessel going in next year in 2024. We’ll talk more about the timing of that. But we’re very much underway with our conversion projects in addition to the 3 new vessels that are not yet cutting steel, but that will be delivered in a couple of years. Those will also be LNG ready. So we do have — the plan is rolling out just the way we expected and the timing, very consistent with our original timing on the conversions.

Ben Nolan : And then lastly, I was going to ask, as it relates to Hawaii — and obviously, there’s the horrendous strategy in Maui. As we think about that longer term and is this something that just purely from a freight and volume perspective that could actually lift volumes for you guys as rebuilding happens and so forth. And in the near term, there are some headwinds from tourism, but just trying to think through what might be the volume impacts of that for you?

Matt Cox : And it’s a sensitive subject because, obviously, we’re focused on the tragedy and which it never happened. But in the short term, I think you’ve got it right. It’s going to be a situation where in the near term, there are some headwinds and — but over the longer term, and the rebuild process we expect, as we mentioned in our prepared comments, the recovery will occur in the medium term, the rebuilding could occur over the longer term. So — but eventually, I think there will be a rebuild. I know the residents in Maui and the leadership in Maui want it to be rebuilt, and that will translate into freight volumes at some point into the future.

Operator: [Operator Instructions] And speakers, I am seeing no further questions in the queue. I would now like to turn the conference back to the CEO, Matt Cox for closing remarks.

Matt Cox : Okay. Thanks, operator. Thanks for listening in on our call today. We look very much forward to seeing everyone on our year-end call. Aloha.

Operator: This concludes today’s conference call. Thank you all for participating. You may now disconnect, and have a pleasant day.