Gov seeks $842M in harbor fixes

Lingle and legislators tout the plan as addressing shipping needs through 2030

Six major harbors on four islands are targeted for renovations and improvements at a cost of $842 million over six years, the Lingle adminitration announced yesterday.

Revamps ahoy Kahului Harbor: $345.1 million Honolulu Harbor: $257.3 million Kawaihae Harbor: $87.8 million Hilo Harbor: $61.4 million Kalaeloa Harbor: $57.9 million Nawiliwili Harbor: $10.3 million Source: Office of the Governor

The plan was developed through a public-private partnership that sought input from state and county agencies, harbor users and others.

It has the support of legislative leaders, who said they were pleased with the collaborative effort put forth in crafting the plan.

"Because of that approach, we have, for the most part, agreed with this particular plan," said Senate Transportation Chairman J. Kalani English (D, East Maui-Lanai-Molokai).

The six harbors are:

» Kahului Harbor on Maui;

» Honolulu and Kalaeloa harbors on Oahu;

» Hilo and Kawaihae harbors on the Big Island; and

» Nawiliwili Harbor on Kauai.

The modernization plan would require no general funds and instead utilize the state harbors special fund and revenue bonds.

In her supplemental budget for the 2009 fiscal year, Lingle requested $124 million in harbor revenue bonds for the harbors project.

"It will address current and projected shipping needs through 2030," Lingle said. "It will be one of the most expeditious projects that we've taken on."

Six harbors on four islands will be renovated at a cost of $842 million over six years, in an effort to meet the growing demand on waterways posed by cargo shippers and passenger traffic from cruise ships and the Hawaii Superferry, the Lingle administration announced yesterday.

On the Net » For more information, including graphics of the harbor plans, see hawaii.gov/gov.

"Lack of harbor capacity across the state will drive up the cost of living if left unattended and it will create a significant restraint on the state economy now and into the future," Gov. Linda Lingle said at a news conference in her office.

"The bottom line is: Harbors are our lifeline," she added. "They are over capacity in some cases. They need to prepare for the future and this will allow us to realize an increased quality of life across the state."

The state Harbors Modernization Plan was developed through a public-private partnership that sought input from state and county agencies, harbor users and others.

Among them was the Hawaii Harbor Users Group, a consortium of harbor users including Horizon Lines, Young Bros., Matson, Norwegian Cruise Line, Hawaii Superferry and Hawaii Stevedores, among others.

"We've identified specific projects, we've prioritized them and now we have a consensus," said Gary North, senior vice president with Matson and chairman of the harbor users group.

The plan also has support among Democrats in the Legislature, who have not always been in agreement with the Lingle administration.

"I'm in full agreement of this proposal and I'll do my utter best to move it forward next session to improve the harbors that are the lifeblood for all of us," said House Finance Chairman Marcus Oshiro (D, Wahiawa-Poamoho).

Oshiro was joined at Lingle's news conference by Senate President Colleen Hanabusa (D, Nanakuli-Makua) and Senate Transportation Chairman J. Kalani English (D, East Maui-Lanai-Molokai).

English said he supported the plan because of the collaborative effort put forth by the administration and the harbor users, but said he also hopes that needs of rural communities such as Hana, in his district, are addressed.

"This plan is a good starting point for us to discuss how we're going to deal with all of our infrastructure in Hawaii," English said. "If we're looking at infrastructure statewide, we have to make sure that some of the most remote areas are serviced as well."

Lingle officials noted that the population, visitor and business growth during the past 15 years has significantly increased harbor use, with more growth forecast in coming years.

Cargo container volume is expected to increase as much as 27 percent by 2010, by 66 percent in 2015 and by 93 percent in 2020, Lingle said.

Kahului Harbor on Maui is slated to receive the bulk of the money -- $345.1 million -- because of the high volume of traffic forecast for the island's only commercial harbor.

Mike Formby, deputy state transportation director in charge of harbors, said one key provision is separating cargo traffic from passenger traffic.

Plans for Kahului include a new west harbor ferry/barge slip with a terminal building, a new west harbor cruise terminal, new breakwaters on the east and west harbors, acquisition of more land to expand the east end of Kahului Harbor and other necessary paving and fencing improvements.

Other harbors in the modernization plan include Honolulu and Kalealoa harbors on Oahu, Hilo and Kawaihae harbors on the Big Island and Nawiliwili Harbor on Kauai.

The project is scheduled to begin in fiscal year 2009, and will not require any general funds, Lingle said. Instead, the project is to be financed by the harbor special fund and harbor revenue bonds.

"Revenue (is) coming from harbor activities, rentals, leases and some proposed increases in harbor fees and land leases to be worked out over time," Lingle said.

She added that the six-year time frame includes all of the time expected to complete the necessary environmental reviews and studies that will be required for upgrading state facilities.

4 islands' harbors included in renovation plans

Details of the $842 million in harbor projects planned by the state include:

Kahului, Maui

» New west harbor breakwater
» New west harbor ferry/barge slip with terminal building
» New west harbor cruise terminal
» New east harbor breakwater
» Upgrading of Pier 1 fuel line
» Acquisition of additional property to expand the east end of the harbor
» Strengthening of Pier 2B
» Other paving and fence improvements

Oahu

» Construction of a Kapalama Military Reservation container deep-draft wharf with berthing capacity to accommodate two container ships
» New 70-acre container yard at Kapalama with gates, buildings and off-site improvements that connect to the Young Bros. barge yard
» Construction of Kalaeloa west harbor utilities infrastructure
» New fuel pier at Kalaeloa

Big Island

» Dredging for and construction of a new pier and interisland cargo handling yard through a new Pier 4 barge in Hilo
» Acquisition of property to establish a harbor access route via Kumao Street, which will allow for separation of commercial and cruise ship activities
» Barge and terminal improvements at Pier 2, Kawaihae
» Southern extension of Pier 2 at Kawaihae
» Construction of a new multiuse Pier 4 at Kawaihae
» Improvements to allow development of liquid bulk storage facilities at Kawaihae

Nawiliwili, Kauai

» Construction of a new multi-use berth along the existing jetty