When William Matson sailed the Emma Claudina out of San Francisco for Hilo on April 10, 1882, it marked the beginning of a 125-year corporate journey.

Matson Navigation Co., the company founded by the Swedish seaman, is now one of the world's leading ocean carriers, with nearly 1,000 employees and about $1 billion in annual revenues. These days, Matson handles about 70 percent of all goods shipped into Hawai'i.

Earlier this month, Matson and its parent company, Alexander & Baldwin Inc., celebrated the anniversary of the maiden voyage of Matson's three-masted schooner with receptions in Hilo and Honolulu for employees, customers and the local community.

A&B held similar events marking the 125th anniversary of Matson's sister company, Hawaiian Commercial & Sugar Co.

"Beyond celebrating Matson's longevity, we are equally excited about the company's future prospects," said Allen Doane, Matson's chairman and chief executive officer of Alexander & Baldwin.

"As with any successful business, the key is to continually evolve and seek out growth opportunities that will keep us competitive and profitable."

Throughout its history, Matson has adapted to the shifting economic tides.

In the early 1900s, Matson was the first ocean carrier with oil-burning steamships and the first to use cold storage and electric lighting. In 1910, the company got in the cruise business for Mainland-to-Hawai'i travel.

The war years brought more change for the company. The U.S. military took over Matson's ships to ferry troops and supplies to ports around the world.

According to William Worden's 1981 book "Cargoes: Matson's First Century in the Pacific," the local shipping company transported nearly 100,000 soldiers throughout Europe in World War I. Matson's ships carried a total of 736,000 troops throughout the Pacific and Europe during World War II.

In the post-war years, Matson diversified into other industries.

The company began flying cargo planes between Honolulu and the West Coast in 1946, using converted military transport planes. But Matson's plan to operate regular passenger service was dashed later that year when federal regulators allowed United Airlines, not Matson, to fly between Hawai'i and San Francisco.

The company also owned high-end hotels. In 1927, it co-developed the Royal Hawaiian Hotel in Waikiki and by the early 1950s Matson also owned the Surfrider and the Princess Kaiulani.

But the company sold the luxury hotels to Sheraton Corp. in 1959 to focus on what's become one of the company's post-war innovations: containerization.

With its 20-foot containers, large shipping cranes and massive cellular ships, Matson revolutionized the cargo business in the Pacific. The centuries-old process of handling, packing and distributing cargo was replaced by a sophisticated system that cut costs and time.

"Celebrating 125 years of service is a remarkable achievement for any company and is truly unique in the U.S. maritime industry," said James Andrasick, Matson's president and chief executive officer.