CP Ships

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CP Ships was a large Canadian container shipping company now part of Hapag Lloyd since late 2005.

The company became an independent corporation in 2001 when it was demerged by conglomerate Canadian Pacific Limited (CP) and is incorporated in Saint John, New Brunswick but headquartered in Gatwick, United Kingdom. Its 82 ships were registered in a number countries including the UK, Bermuda, Liberia, and Germany and most of the crews were Asian. Its primary ports remain Montreal and Vancouver.

[edit] Canadian Pacific Steamships

In 1884, the Canadian Pacific Railway (CPR) began purchasing sailing ships as part of a railway supply service on the Great Lakes. In that same year, CPR received sufficient encouragement from talks with the British government in London that plans began to be formalized for establishing trans-Pacific steamship routes between Vancouver and the Far East.^[1]

The trans-Pacific services of Canadian Pacific were begun by Sir William Cornelius Van Horne, the Dutch-American builder of the railroad network in 1887. In that year, Sir William chartered three vessels -- the SS Abyssinia, the SS Parthia, and the SS Batavia -- as a beginning of the CP fleet. Orders were placed for three new ships to be built to CP specifications; and the first of the Empress ships were in regular service by the beginning of the next decade. ^[2]

In 1891, CPR adopted a new name -- the Canadian Pacific Steamship Company (CPSC).^[3] The CPSC became one of the many shipping companies operating in and out of Liverpool. This branch of the CPR expanded as people emigrating from Europe to North America provided a larger number of passengers and the company also started holiday cruises. Like other shipping companies, CPSC built larger ships to cope with the demand.^[4]

In the late 19th century, CPR initiated an ocean-going service between the port of Vancouver, British Columbia and Hong Kong, with calls at Japan and China, and later at Manila, Philippine Islands and Honolulu, Hawaii. This service provided a link for CPR's transcontinental railroad passenger and freight services. During 1887, temporary steamship service was initiated on a Vancouver-Yokohama-Hong Kong route.^[5] From 1887 through 1941, the Canadian Pacific Railway provided steamship service between Vancouver and Victoria, British Columbia, Canada and Hong Kong with calls at Japan and China, and later at Manila, Philippine Islands and Honolulu, Hawaii. Three ships were built at Barrow-in-Furness in England, and the three sailed together towards Vancouver in 1890, with initial voyages projected for January 15th, February 15th, and March 15th of the new year. An 11-foot scale model of the ship was put on display in Canadian Pacific's New York offices. In an effort to lure American Chinese passengers to sail with CPR from North America to Shanghai and Hong Kong, prominent members of the Chinese community in New York were invited to examine the scale model and its amenities. ^[6]

In 1887, steamship routes between Vancouver and Australia were initiated.^[7] Cunard sold three ships to CPR for the Australian route -- the SS Abyssynia, the SS Parthia, and the SS Batavia.^[8]

[edit] Fleet expansion

In 1891, CPR and the British government reached agreement on a contract for subsidized mail service between Britain and Hong Kong via Canada.^[9] The route began to be serviced by three specially designed Empress liners -- the RMS Empress of China and the RMS Empress of India. Each of these "Empress" steamships sailed regularly in the period from 1891 through 1912. In that year, the Empress of China struck a reef near Tokyo, and she was subsequently towed to Yokohama where she was scrapped. The Empress of India would continue in service through 1914. The third of the three original empresses, the RMS Empress of Japan, sailed regularly from 1891 through 1922. These three ships and the others which comprised the "Empress fleet" carried mail, passengers, and freight speedily across the Pacific for over half a century.^[10]

Three steamships docked together -- the SS Empress of France, the SS Empress of India, and SS Empress of Britan (1926). Note the curved bow of the 1891 Empress of Britain in contrast with the straight-sided bows of the newer ships in the CP fleet.

In 1903 the company began operating ships on the Atlantic between Halifax, Nova Scotia and the United Kingdom. In 1906, two vessels were built in England, the SS Empress of Scotland and SS Empress of Ireland. These two practical vessels would gain quite a lot of fame. They each had a full capacity of 1,530 Passengers. There was accommodations for 310 First Class Passengers and 470 Second Class Passengers for people traveling back and forth between Canada and Europe, along with a large capacity for immigrants. The two sisters each had accommodations for 500 Third Class Passengers (Berthed in simple four-berth cabins) and 250 Steerage Passengers (Berthed in vast dormitories) The Canadian Pacific Line had much immigration from Europe to Canada, primarily from Great Britain and Scandinavia. The sisters achieved much unwanted fame after the Empress of Ireland sank in 1914 after a collision with the Norwegian freighter Storstad. In all, 1,012 of the 1,477 Passengers and Crew aboard her were drowned as she ship foundered in the St. Lawrence River in just 14 minutes after the collision.

In 1915, the business had grown to the point where it was spun off into a separate entity formally known as the Canadian Pacific Steamships Ocean Services Ltd.^[11]

The new company acquired the successful Allan Line and expanded to become a major international cargo carrier and operators of luxury passenger liners such as the Empress of Britain and the Empress of Canada.

Like other shipping companies, Canadian Pacific provided ships to carry troops in both World Wars. In WWI, some ships were refitted as Armed merchantmen. In WWII, the CP fleet carried over a million tons of cargo and a million troops and civilians during the Second World War.^[4]

In each of the post-war periods, the company sought to compensate for ships lost at sea by expanding its fleet.

Over time, the passenger steamship business changed. By the 1950s, rapidly growing competition from airlines began to cut into the business and the company diversified into tanker fleets and bulk carriers.

The Canadian Pacific fleet expanded in bursts, responding to changed economic conditions and perceived changes in the market for passenger liner travel. The evolution of the CP fleet mirrors some of those developments. The dates of maiden voyages are indicated each ship's name.^[12]

[edit] Notable CP figures

Ronald Stuart receiving his VC from King George V outside Buckingham Palace

• Captain Ronald Niel Stuart VC DSO RD RNR (1886-1954) was highly decorated for his service in the Royal Navy during the first World War I.^[13] In addition to his British decorations, he was honored with the French Croix de Guerre and the United States' Navy Cross while serving in the Royal Navy during the First Battle of the Atlantic. The remainder of his naval career was spent with Canadian Pacific. A special warrant was written in 1927 which allowed him to fly the Blue Ensign from any ship, mercantile or military, which he commanded.^[14] In 1934, he was named Commodore of the CPS fleet and was placed in command of the 42,000 ton liner RMS Empress of Britain on her transatlantic route. In 1937, he was promoted to company superintendent, a role followed by the job of general manager at Canadian Pacific's London office. He retained this job for 13 years, including through the difficult experiences of World War II when London's dockyards were badly damaged by the London Blitz. During this period, he was made a part-time naval aide-de-camp to King George VI in 1941 – a position he held part–time throughout World War II.^[15]

• Captain Samuel Robinson KBE (1870-1958) served 37 years at sea on Canadian Pacific vessels. He earned international acclaim as captain of the RMS Empress of Australia which was at Yokohama in Tokyo Bay during the devastating Great Kanto Earthquake of 1923. He would be credited with saving the ship, his crew and passengers, and more than 3,000 others during the unfolding catastrophe.^[16] Robinson's honors included Commander of the British Empire (CBE);^[17] Knight Commander of the British Empire (KBE);^[16] Order of the Chrysanthemum (Japan);^[18] Order of St John of Jerusalem, the Silver Medal (UK);^[17] Lloyd's Medal for Meritorious Service (UK);^[17] Medal of Honour, Red Ribbon Medal (Japan);^[17] Order of the White Elephant (Siam);^[16] Cross of the Second Class of the Order of Naval Merit (with white badge) (Spain).^[19]

• Captain John Wallace Thomas CBE (1888 - 1965) served with distinction in both first and second World Wars. He was made a Commander of the Order of the British Empire (CBE) for his handling of the SS SS Empress of Scotland during an attack by the Luftwaffe off the coast of Ireland on November 9, 1940. Captain Thomas was the only member of the Canadian merchant navy to have been honored with the CBE during that war.

[edit] CP Ships

In 1971, the company changed its name to CP Ships Ltd.

In 1984 it entered a joint venture with Compagnie Maritime Belge called Canada Maritime to secure North Atlantic container traffic for its rail facilities in Montreal. This "new" company prospered and the fortunes of CP Ships revived in the early 1990s and in 1993 Canadian Pacific bought out its partner in Canada Maritime, and that company was merged in CP Ships reviving the fleet. The next decade saw the company grow through acquisition. In April 1995 CP Ships purchased the Cast Group out of a bankruptcy proceeding, and subsequently bought Lykes Lines in July 1997 also out of bankruptcy, Contship Containerlines in October 1997 at a profitable level, Australia-New Zealand Direct Line in December 1998 also being profitable, Ivaran Lines in May 1998 (unprofitable), TMM Lines (unprofitable, 50 % in January 1999, rest 50 % in January 2000), in August 2000 Christensen Canadian African Lines (CCAL) at small profitability and Italia Line in August 2002 at breakeven business results. By 2001 it was the seventh largest carrier in the world, and dominated the North Atlantic. When it was spun off into a separate company it represented 8% of Canadian Pacific's revenues and was a source for a large portion of CPR's rail traffic - much originating from CP Ships' Montreal Gateway Terminals.

Soon after gaining its independence the company suffered from a general economic slowdown, however it recovered much faster than its competitors and returned to profitability in 2002. By 2004 the global shipping industry was booming, and consolidating, and CP became the target of a number of take over rumours.

During its independence, CP Ships operated its seven distinct brands (Ivaran and CCAL were not operated as brands after takeover but were absorbed into the Lykes brand) and used the slogan "Regional Focus, Global Scale." However, prior to being bought-out by Hapag Lloyd, CP Ships had already made the decision to get rid of the brand identities and operate solely with the CP Ships brand. For the CP Ships brand they had mostly unlogoed (some had the flag on the back door but no wording) CPSU brown dry box containers as well as refrigerated containers.

[edit] TUI AG-Hapag-Lloyd

On August 21, 2005, German conglomerate TUI AG offered to acquire CP Ships Limited for €1.7 billion (US$2.0 billion) in cash, and merge it with TUI's Hapag-Lloyd division.

On August 30, 2005, Ship Acquisition Incorporated, an indirect wholly owned subsidiary of TUI AG made a formal offer for 100% of CP Ships shares. The deal was approved by the boards of both CP Ships and TUI AG and was presented to CP Ships shareholders for approval.[1]

On October 19, 2005 CP Ships and TUI AG jointly announced that 89.1% of CP Ships shareholders, representing 84,095,325 common shares, had accepted Ship Acquisition Inc.'s August 30 offer. The shares were to be taken up the following day October 20, followed by payment of $21.50 USD per share on October 25, 2005.[2] Following the purchase and merger, TUI AG's combined Hapag-Lloyd and CP Ships fleet will comprise the fifth largest by capacity in the worldwide container shipping market.

[edit] International identifiers

[edit] SCAC codes

CP Ships (UK) Limited: CPSU
CP Ships USA, LLC: CPSP
Hapag-Lloyd: HLCU and HLXU

[edit] Operator Codes

CP Ships (UK) Limited: CPS
CP Ships USA, LLC: CPP
Hapag-Lloyd: HLL

[edit] 9000 Series Codes

Hapag-Lloyd: 9529

[edit] BIC Codes

CP Ships: CPSU
Hapag-Lloyd: HLCU, HLXU
ex Australian New Zealand Direct Line: AZLU
ex CAST Line: CASU
ex Canada Maritime: CMUU
ex Contship Containerlines: CSQU, HAMU, PLVU, CLGU, TLEU, PSBU, PCRU, FANU (Fantainer)
ex Federacion Maritima: FMGU
ex Ivaran Lines: IVLU
ex Italia Line: ITAU
ex Lykes Lines: LYKU
ex Tecomar: TEMU
ex Transportacion Martima Mexicana: TMMU

[edit] See also

• Queen of the Pacific
• SS Mount Temple

[edit] Notes

[edit] References

• Official website - page offline - please refer to History of CP Ships
• The Role of the CP Ships in World War II
• CP Ships: Press release - CP Ships Accepts Offer for US $2 Billion in Cash, 21. August 2005
• CP Ships: Press release - TUI extends CP Ships Offer Regulatory approvals obtained in Canada and the U.S., 07. October 2005
• CP Ships: Press release - EU Approves TUI's Proposed Acquisition of CP Ships China Review Period Expires, 12. October 2005
• CP Ships: Press release - All Regulatory Approvals Regarding TUI'S Proposed Acquisition of CP Ships Obtained or Waived, 17. October 2005
• CP Ships: Press release - TUI Offer For CP Ships Successful, 19. October 2005
• CP Ships: Press release - Update on Successful TUI Offer For CP Ships, 19. October 2005
• CP Ships: Press release - CP Ships Completes Amalgamation Resulting in TUI Owning 100% of CP Ships, 21. December 2005
• CP Ships: Press release - CP Ships CEO Ray Miles and CFO Ian Webber to Step Down As Executive Management is Restructured, 29. December 2005
• EDGAR^® Online: CP Ships Limited - Revised 2003 Annual Information Form, 07. September 2004

• Snelling, Stephen. 2002. The Naval VCs. Stroud, Gloustershire: Sutton. 10-ISBN 0-750-91395-9; 13-ISBN 978-0-750-91395-9

[edit] External links

• White Empress fleet list: 20 vessels