The US Department of Transportation has granted Lykes Lines, a subsidiary of CP Ships (www.cpships.com), the right to operate five US-flag containerships in its new Maritime Security Program (MSP) for ten years beginning October 1, 2005, it was announced early this year. The ships will receive government subsidy to offset the cost of operating under a US flag. Over the ten-year contract term, the subsidy will total US$145mn. The five ships will operate on the TransAtlantic.

MSP was created to ensure the Department of Defense has ready access to a fleet of modern and efficient commercial US-flag ships that could be made available in times of war or national emergency.

This new contract represents an increase in Lykes Lines' participation in MSP. It currently operates five US flag ships in a single loop on the TransAtlantic, but only three are MSP ships and receive subsidy under the existing contract which expired on September 30, 2004.

CP Ships provides international container transportation services in four key regional markets: TransAtlantic, Australasia, Latin America and Asia. CP Ships operates 39 services in 23 trade lanes, most of which are served by two or more of its even recognized brands: ANZDL, Canada Maritime, Cast, Contship Containerlines, Italia Line, Lykes Lines and TMM Lines. As of September 2005, CP Ships' vessel fleet comprised 81 ships and its container fleet 457,000 TEU. Its 2003 volume was 2.2mn TEU, more than 80% of which was North American exports or imports. It also owns Montreal Gateway Terminals, which operates one of the largest marine container terminal facilities in Canada. CP Ships' stock is traded on the Toronto and New York stock exchanges under the symbol TEU.