Honolulu Harbor is a lifeline for Hawaii, and upgraded, expanded access for cargo transport has been identified as a need at the harbor since the 1980s. A single harbor terminal that serves the two largest ocean cargo companies serving Hawaii, Matson Inc. and Pasha Hawaii, is at capacity.
So it’s a milestone worth celebrating that the first of two phases in constructing a new Kapalama Container Terminal and piers has been completed, with the finish line in sight for 2024.
It’s also promising to learn that the timeline for completing the new cargo terminal may put the project and other harbor improvements in a good position to qualify for new federal funding authorized by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
Hawaii’s Department of Transportation (DOT), which oversees the islands’ crucial harbors, must now ensure that the project comes to fruition on time and on budget, while pursuing all available federal assistance connected with these landmark acts to make harbor improvements that bolster Hawaii’s resilience and economic potential.
Our island state is uniquely dependent on harbor access for cargo delivery, but federal transportation funding has generally been concentrated on highways and airports. The state is financing all costs for the Honolulu Harbor expansion, using bonds and recouping payouts through harbor user fees.
This year’s federal infrastructure and inflation reduction acts create more possibilities. It now falls on Hawaii’s DOT to pursue them — and the state’s governor and Legislature to support the effort, assessing opportunities and making matching funds and other necessary resources available as needed.
Last week, U.S. Sen. Mazie Hirono toured the Kapalama terminal and encouraged DOT officials to pursue grants available through the two federal spending bills, which aim to modernize the nation’s infrastructure, boost local economies and support projects that add resilience in the face of global warming, climate change and sea level rise. Honolulu Harbor ticks all those boxes.
No one would accuse the state of doing a quick turnaround on the crucial project, for which planning began in 2005; the projected completion date has been pushed back from 2016 to 2022, then 2024. However, two economic downturns over the past two decades also slowed the growth of cargo traffic, and Hawaii has been able to make do with existing container terminal structure so far.
The $526 million project was conducted on state land, which was formerly owned by the Army and used as a shipping and warehouse base.
In the initial phase of construction, structures were raised by 3 feet to protect against sea level rise. That was finished early this year, at a cost of $174 million.
In the second phase, piers will be constructed at the water’s edge along Honolulu Harbor’s ewa end, at a cost of $352 million.
Once the project is completed, Pasha will take over the new terminal, which will also feature new cargo cranes. Matson will remain on Sand Island’s Pier 51, expanding into Pasha’s current location.
With the expansion, the harbor will be able to accommodate additional growth and allow for expansion of Hawaii’s economy. The new terminal is expected to service about 50,000 truckloads of goods per year, and expand container handling capacity by 40%.
Resilient, well-functioning harbors are an absolute necessity for Hawaii. It’s a relief to have reached a progress point in Honolulu Harbor’s expansion, and it’s a must that the state forge further forward to strengthen harbor capacity, given the unprecedented funding opportunities created by this year’s federal legislation.