In 1956, Matson establishes an in-house research department, the first of its kind in the industry, to develop a new system of handling, gathering and distributing cargo. A year later, a lift-on, lift-off container program is recommended for cargo handling, with implementation in two phases. First, partial conversion of several conventional C-3 freighters to enable them to carry containers on deck, with shoreside gantry cranes to be installed at Matson's terminals in harbors in San Francisco and Los Angeles.