Polynesian Shipping Line Changes Hands

Business & Finance

August 25, 2014

The Board of Polynesian Shipping Line Limited has decided to sell the company to Neptune Pacific Line Limited.Polynesian Shipping Line Limited business has been sold as a going concern and will continue to provide services in the Australian and New Zealand trades to Fiji, the Samoas and the Kingdom of Tonga as well as the interisland trade, the company announced.

In addition, the existing global freight services to the Samoas and Tonga will continue and be developed further, according to the announcement.

“Whilst the ownership of Polynesian Shipping Line Limited has changed, its business as usual with our customers and service providers. No change is envisaged to existing arrangements in the immediate future,”Polynesian Shipping Line said.

A key aspect of the sale is the signing of a contract of affreightment between Polynesian Shipping Line Limited shareholder interests and Neptune Pacific Line Limited.

“This Agreement will see Polynesian Shipping Line limited shareholder interests continue to support the business for many years to come,” the company added.

Over the last two to three years, there has been considerable change to shipping services in the Pacific, specifically:

Reef Shipping went into receivership with the assets and business subsequently sold to Matson Line of the United States
Polynesian Shipping Line vessel (M.V. Ratstor) suffered a major mechanical failure requiring the business to change from being a vessel operator to a slot charterer.
Shareholders of Pacific Forum Line sold their interests to the Samoan Government who in turn subsequently sold a 50% controlling interest to Neptune Pacific Line.

Most recently there has been a further change to vessels and schedules and it is likely that further rationalization will be required in some form in the future.

“These significant changes have required Polynesian Shipping Line shareholders to continually review the company’s operation and of course, the company’s position in the trade. With the changes that have taken place in the market, the company’s shareholders have been considering what is best for Polynesian Shipping Line going forward.

When looking at the trade today compared with nine years ago, there has been a significant increase in the level of service provided. There is sufficient capacity in the main trade lanes and frequency is at acceptable levels. In addition to service, capacity and frequency, rates are competitive and the services provided by the various operators are sustainable,” the announcement read.

In announcing the sale of the business, the Chairman of Polynesian Shipping Line Limited, Charlie Westerlund stated;

“Polynesian Shipping Line was established out of a need to provide a regular, reliable and competitive shipping service to Pacific Island communities. Over the last nine years Polynesian Shipping Line Limited has achieved those goals.

The time is now right for the shareholders to withdraw from shipping, and we are pleased to be able to sell the business to a professional and well managed company in Neptune Pacific Line Limited.

In selling the business to Neptune Pacific Line Limited we are confident they will ensure the company’s loyal supporters, service providers and employees will benefit from this transaction both now and in the years to come.”
[mappress]
Press Release, August 25, 2014

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