State boating officials plan to develop a new pier at Maalaea Small Boat Harbor for the Lanai ferry and other vessels to load and unload passengers.

The $2.8-million project includes removing and replacing badly deteriorated pier near the harbor’s new ferry terminal building, according to the state Department of Land and Natural Resources.

The work, begun this month, is scheduled to be finished in April 2016.

About 80 percent of the funding came from federal-related transportation funds, and the remainder authorized by the Legislature.