Terminal swaps in Honolulu

News 3 Oct 2017 by WCN Editorial

Terminal operators shuffle berths as construction contract for the new Kapalama Container Terminal in Honolulu, Hawaii is awarded.

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The Hawaii Department of Transportation (HDOT) Harbours Division has announced who will be going where as it re-develops parts of the Honolulu Harbour:

“TOTE Maritime will operate at Piers 1 and 2 and on 45 acres of adjacent land. As part of the agreement with the company, HDOT will improve and develop Piers 1 and 2, allowing TOTE to launch Hawaii operations upon the completion of the infrastructure improvements. In addition, Pasha will consolidate its operations from Piers 1 and 2 and from its existing terminal at Pier 51A, to the new KCT with more space for operations. The moves enable Matson to expand into Pasha’s existing site at Pier 51A on Sand Island for a contiguous terminal of 130 acres,” the department announced in a statement.

“We are modernizing Honolulu Harbour with much needed infrastructure improvements and creating space for a new service to enter the market while expanding terminal capacity for the entire shipping industry. This is not only a diversification of carriers, but of channels into our harbor to ensure the efficient and safe transport of goods to our islands,” said Gov. David Ige.

TOTE Maritime, a subsidiary of Seattle-based Saltchuk, is the new player in the trade. “TOTE is deeply committed to serving the people of Hawaii,” said Anthony Chiarello, TOTE President and CEO. “We are making a substantial investment in the islands and look forward to launching a new service that benefits the community with vessels that are efficient and environmentally friendly. This decision ensures we have a working terminal to begin service and advances Gov. Ige’s vision for improved infrastructure and a stronger economy.”

“KCT is a shining example of a public/private investment partnership,” said George Pasha, IV, President and CEO, The Pasha Group. “We feel very fortunate to have the expertise and longstanding support of the Harbours’ capable staff, and look forward to continuing to team up with them towards the successful completion of the project.”

Vic Angoco, Senior Vice President, Pacific at Matson said the plan recognises the company's investments over the last 10 years and “continues to be fair and equitable to all harbour users. This allows us to continue preparations for our much needed terminal expansion without interruption.”

The first phase of the construction contract for KCT has been award to Kiewit Infrastructure West Company, after it submitted the lowest bid of US$163.5M. KCT features a new 84-acre container yard and 1,800 linear feet of new berthing space. To be constructed in two phases, the full terminal is slated to be finished in 2022 at a cost of US$448M.