The Maui News
Saturday, June 21, 2008
By MELISSA TANJI, Staff Writer
KAHULUI — Gov. Linda Lingle on Friday signed a bill authorizing $118.3 million for improvements at Kahului Harbor and for the Hana Bay dock.
The Harbors Modernization Plan allows the state to move forward with a six-year program to improve commercial harbors across the state.
Mike Formby, deputy transportation director for harbors, confirmed that plans to upgrade the Kahului Harbor west breakwater will not be included in the modernization plan, although the breakwater expansion will remain in a Kahului Harbor 2030 Master Plan. He told The Maui News there will be a need to expand in the future.
"But given the present conditions, it doesn't justify the expense."
Original estimates for the modernization of Kahului Harbor including upgrades to the west breakwater to accommodate cruise ships and the Hawaii Superferry placed the cost at $345.1 million.
But Formby earlier this month reported that the department expected to scale back with the pullout of two Norwegian Cruise Line ships and resistance from shippers over the increased tariffs they would pay for the revenue bonds that need to be sold for the projects.
Signing the harbors funding bill in a ceremony at Pier 1 at the Kahului Harbor, Lingle called the move historic and said a lot needs to be done within six years.
"Six years is not a long time," she said; still, she was "confident we will succeed."
Lingle told a crowd of 50 people that the bill will help Kahului Harbor with expectations that Maui's population will grow to around 207,000 people by 2025. When she was Maui County mayor more than eight years ago, she said, the population was just 80,000.
"Kahului Harbor is the busiest harbor outside the island of Oahu and the third busiest harbor statewide," she said.
Lingle said the bill for harbors upgrades statewide provides major benefits, as 98 percent of goods used in Hawaii come through the harbors.
She said the volume of cargo coming by sea is expected to climb by as much as 27 percent in 2010 and as much as 93 percent by 2020.
Plans for Kahului Harbor include pier repairs and expansion, purchasing land on the harbor's east side, bulking up Pier 2B, moving existing cement silos and improving Pier 1A's fuel line.
Even though the modernization bill will not provide a more protected dock for the Hawaii Superferry, Superferry President and CEO Thomas Fargo said the company will continue to concentrate on providing reliable service.
"You play the hand you are dealt," he said.
The Superferry uses a docking barge set up at the end of Pier 2, an area subject to severe surge when winter season north swells hit the island. Wintertime ocean conditions prevented the ferry from operating over several weeks, while harbor surge last year caused the barge to break loose several times.
Buzz Fernandez, Maui district manager for Matson Navigation Co., said he thought the plan was great.
"Anything they can do to improve the harbor, spacewise, for the commercial users," he said.
Both the Hawaii Superferry and Matson are members of the Hawaii Harbors Users Group that works with the state Harbors Division to develop modernization plans for state commercial harbors.
The bill signed by Lingle also included provisions to have the Harbors Division take responsibility for the deteriorated Hana Bay wharf. Under the Harbors Division, the state can plan to restore the dock for use as a commercial harbor facility.
A boat launching ramp alongside the dock will remain under the jurisdiction of the state Department of Land and Natural Resources.
The cost for the upgrades to the Hana Bay dock is $20 million and is included in the $118.3 million project plans for Maui.
Sen. J. Kalani English, whose 6th District includes Hana, advocated the improvements and said the upgrades will provide an alternative means of transporting goods and people. As it is now, there is only one road in and out of the rural East Maui area, bridges on the highway are aging and there are few flights from Hana Airport.
"In an emergency this will be our lifeline," English said of the Hana dock.
English, chairman of the Senate Transportation and International Affairs Committee, was joined at the ceremonial table by Maui Rep. Joe Souki, chairman of the House Transportation Committee.
Lingle commended the legislators for supporting the program put together by her administration and the Hawai'i Harbors Users Group, citing group Chairman Gary North at the ceremony.
The new harbors funding plan designates the Aloha Tower Development Corp. as the state entity responsible for the management of the Harbors Modernization Plan in partnership with the DOT. The bill will expand the corporation's board and form a Harbors Modernization Group. Members will include maritime industry representatives, Maui, Kauai and Hawaii county mayors and the state director of budget and finance.
The law, Act 200, authorizes the DOT to issue revenue bonds to finance the harbor improvements. Revenue to repay the bonds will come from harbor users fees.
The 2008 Legislature approved a $124 million revenue bond for harbors projects in the fiscal 2009 budget.
• Melissa Tanji can be reached at mtanji@mauinews.com.
• Edwin Tanji can be reached at citydesk@mauinews.com.
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