On the international front, more specifically, Asia, we are encouraged by our prospects. In the short-term, the rapid growth of Asian economies is expected to continue, fueling exports that will land in West Coast ports. In China where we have direct interest, nearly double digit growth is expected throughout the planned period, and in Guam, the significant military redeployment of 8,000 Marines from Okinawa will fuel a massive infrastructure buildout that will require the import of construction goods to that island economy. Together, these large economic trends give us opportunities to leverage our existing assets in place our China and Guam ocean surfaces.

Slide 16 provides a look into the environment for Matson Integrated Logistics or MIL, and while we envision short-term weakness for that business, we do believe the global trade trends, particularly coming out of Asia, will propel long term expansion. The map on the right details the locations of our MIL network and an overlay of our current commercial property portfolio. Since many of the properties do not fit into the industrial logistics category, there is not any material linkage between the two right now. We can envision, however, an increasing link in the relative near term.

The next twelve slides articulate the growth initiatives that emerge from our strategic planning process. We represent these with two basic themes, inside the supply chain, and targeted real estate investment.

Slide 18 is a real eye-popper, but it represents the most concrete way where we see value creation in our transportation segments over the next few years. In short, value creation shifts from our port-to-port legacy, to door-to-door solutions, you will note that we are currently, we currently have in place two of the five components, a port-to-port solution from Asia and a U.S. port-to-distribution solution in the form of Matson Integrated Logistics, and we have excellent expertise operationally and a strong history in these areas. As we look out, we see an expansion of opportunity, which will ultimately create a door-to-door solution for our customers, and drive us deeper into their value and supply chain. With multiple customer touchpoints, we believe we can create superior efficiencies that will allow us to grow these businesses quite quickly.

As I mentioned, we do have a port-to-port solution in Asia and the results we have delivered in a little over a year and a half are remarkable. Our ships are sailing at nearly 100% utilization, and in the most recent contracting cycle concluded in early May, we were able to effect nearly double digit rate increases. The increases validate our value proposition. We're the fastest, most reliable trans-Pacific port-to-port solution. Our primary go forward initiative will be the focus on yield management and balancing this against our utilization. And because of this early success, we are exploring other port to port options that may extend our reach into Asia.

The second component of the supply chain is the U.S. port-to-door and let me make a few comments here. One, we believe this segment of the supply chain has excellent growth prospects; two, Matson Integrated Logistics, or MIL, has great capability and competency in both rail and highway, the backbone of the industry; three, MIL is just getting into expedited and specialty services and does not have its own warehouse capability. With A & B Properties support and possible acquisitions across a broad range of services, we see a very bright future here.

The door-to-door solution is a compelling proposition for us. I have alluded to how multiple customer touchpoints allow us to move deeper into the value and supply chains. We established Matson Global this past spring to compliment our existing solutions. We expect to grow this part of MIL quite quickly over the next few years, both by internal means and acquisitions. An increasing number of services will be offered to our growing customer base. It will be more challenging to grow the Asia element of the business than the U.S., but by leveraging Matson Navigation's presence we believe it can happen.

Before moving into Real Estate, we'll take a few minutes to expand the discussion on Guam. Well, this market does not fit into the evolving global supply chain, it is a self-contained supply chain to an island economy in the Pacific. What is clear is that the military redeployment will provide volume and earnings impact over the course of our plan. What is not clear today is how many other opportunities may materialize for us here, not only for Matson but for our real estate activities. We went into Guam last year and frankly did not find real estate opportunities that pencilled out for us. Good deals, perhaps, but a bit premature. We know that Matson's prospects are favorable and we hope to launch A & B Properties initiatives but will be cautious in this area for the moment.

We'll now shift to the second theme of our strategic plan and that is targeted real estate investment.

When we think about our real estate operations, we see three value propositions. One, we will continue to focus on our current development pipeline, manage our existing leasing portfolio, and continue to deliver solid earnings results. Two, we will continue to grow. Certainly, we will look at Hawaii first, but we are increasingly aware the mainland U.S. provides us new opportunities and expanded markets. Three, we will continue to be disciplined capital managers. We need to seek expansion in our leasing portfolio and to recycle proceeds from increased land monetization into this portfolio.