“One sad thing about this world is that the acts that take the most out of you are usually the ones that people will never know about.” ― Anne Tyler, Celestial Navigation
Kapalama Container Terminal - A Perspecive from the Stars
1. KAPALAMA CONTAINER TERMINAL – A PERSPECTIVE FROM THE STARS
Gloves, particularly leather gloves, are not one-size fits all. Rackets, Bats, Sticks, Clubs are best played
with regulation sized balls and pucks. Upsized balls and pucks are good for neophytes and novices – a
disastrous folly on regulation courts, diamonds, rinks and courses by proficient players.
Bringing the analogy home.
A shipping company comes and says I’m building new vessels, my new vessels that are bigger than your
present harbors can accommodate, your harbors too small and are too shallow, I have chosen to replace
rather than modernize the old vessels, very good for an asset-based company.
Another shipping company comes and says some of the new vessels I have acquired are bigger than
your present harbors can accommodate, your harbors are too small and too shallow for the hulks that I
just acquired. The vessels I built are perfectly sized for the Hawaii trade and are in current use.
They both say in unison your future depends on building a bigger better harbor - more foreign trade,
they both say. Best of all, Honolulu is key and you are in control!
The light bulb goes off, the brain starts ticking. AHA! A new container terminal will save us!
“About 80% of the State's goods are imported, and almost all of those imports come through Hawaii's
commercial harbor system. THE HAWAII DOT HARBORS DIVISION HAS PROPOSED TO REDEVELOP THE
KAPALAMA MILITARY RESERVATION TO ADD A NEW CONTAINER TERMINAL AT HONOLULU HARBOR.
THE HARBOR DIVISION INTENDS TO PROVIDE NEW SHIP BERTHING AND CONTAINER STORAGE SPACE
AND TO INCREASE HONOLULU HARBOR'S TERMINAL CAPACITY FOR OVERSEAS CONTAINERS. This
HONOLULU HARBOR PROJECT WILL INVOLVE DREDGE AND FILL AND NEW CONSTRUCTION OF PIERS TO
SUPPORT CONTAINER TERMINAL OPERATIONS, TO INCREASE HANDLING/TRANSPORTATION
EFFICIENCIES FOR OVERLAND AND INTER-ISLAND DISTRIBUTION; AND TO DECREASE THE RISKS RELATED
TO THE SOMETIMES DIFFICULT-TO-REACH SAND ISLAND TERMINALS, THEREBY IMPROVING LINKS
BETWEEN HONOLULU HARBOR'S OVERSEAS CARGO, CONSUMERS, AND INTER-ISLAND DISTRIBUTORS.”
Source: World Port Source. Honolulu Harbor. Accessed April 26, 2017
<http://www.worldportsource.com/ports/commerce/USA_HI_Honolulu_Harbor_Oahu_166.php>
_____________________
A PERFECT FIT – TWO BERTHS – TWO COMPANIES – WIDE ENOUGH, DEEP ENOUGH
“The State of Hawaii Department of Transportation, Harbors Division, is proposing to develop a new
overseas container terminal at the former KAPALAMA MILITARY RESERVATION (KAPALAMA SITE) in
Honolulu Harbor to increase existing overseas container terminal capacity. The Proposed Action
consists of the development of a new pier with BERTHING CAPACITY FOR TWO CONTAINER SHIPS, and
an approximately 94-acre container yard.”
2. “ON THE WATERFRONT, A PIER WOULD BE CONSTRUCTED WITH BERTHING CAPACITY FOR TWO
CONTAINER SHIPS.”
Source: Kapalama Container Terminal. Environmental Impact Statement. Hawaii Department of
Transportation. Accessed April 26, 2017
http://oeqc.doh.hawaii.gov/Shared%20Documents/EA_and_EIS_Online_Library/Oahu/2010s/2012-
12-23-DEIS-5B-Kapalama-Container-Terminal.pdf
_____________________
KAPALAMA CONTAINER TERMINAL 2-BERTHS, ESTIMATED COST $450 MILLION. COST JUSTIFIED?
The Harbors Modernization Plan is a Series of System-Wide Capital Improvements estimated to cost a
total of $850 million. The Plan was adopted by The Hawaii State Legislature in Act 200 (2008) with an
initial estimated cost of $600 million. As the plan is implemented and planning and design work is
completed, the harbors estimates the current cost of the system-wide improvements at $850 million.
Since 2010, about $150 million has been expended or encumbered by harbors on implementing projects
within the plan. THE HEART OF THE PLAN IS THE KAPALAMA CONTAINER TERMINAL IN HONOLULU
WITH A COST ESTIMATE OF $450 MILLION BASED ON RECENTLY COMPLETED ENGINEERING DESIGNS.
Source: HIDOT. Accessed April 26, 2017 http://www.rpmcsi.com/Documents/DOT%20Harbors%20--
%20Overview%20of%20Wharfage%20Fee%20Increases_Effective%2002.01.17.pdf
WOULD IT BE PRUDENT TO SCRAP THE KAPALAMA CONTAINER TERMINAL AND CUT OUR LOSSES?
WOULD IT BE MORE PRUDENT TO CONCENTRATE ON THE SYSTEM-WIDE CAPITAL IMPROVEMENTS FOR
HAWAII’S HARBORS BY DREDGING CHANNELS, ANCHORAGES, CARGO PIERS; PROVIDING BERTHS AND
DOCKING SPACES; UPGRADING CARGO SUPPORT THE SYSTEMS AND FACILITIES?
YOUR BE THE JUDGE
References:
1. MATSON NEW VESSELS – BIGGER, DEEPER DRAFT, DUAL POWER: LNG AND FUEL EFFICIENT DIESEL
a. THE KANALOA CLASS vessels “will be built on a 3,500 TEU vessel platform, which is 265 METERS
[869.423 feet] LONG, 34.9 meters wide (beam), with A DEEP DRAFT OF 11.5 METERS [37.72966 feet] and
enclosed garage space for up to 800 vehicles.” [Emphasis Supplied] Source: Matson. Accessed April 25,
2017 http://investor.matson.com/releasedetail.cfm?ReleaseID=985704
b. MATSON ALOHA CLASS 3,600 TEU CV-LNG READY
Length overall: 260.3 meters 854.00262 feet Breadth: 35.0 meters 114.829 feet
Draught: 11.6 meters 38.057743 feet
Source: Aker Philadelphia Shipyard. Accessed April 25, 2017. http://files.zetta.no/www-phillyshipyard-
com/upload/36002.pdf
________________________
3. Matson Hawaii Fleet Renewal Program:
Matson has 11 vessels actively deployed in its Hawaii service including three steamships. Including
these three steamships, the Company has a total of seven steamships, all of which are near the end of
their useful life. Beginning January 1, 2020, these steamships will no longer comply with established
U.S. and international emission regulations without substantial modifications. In order to renew its
Hawaii fleet and prepare for the phase-out of its steamships, Matson ordered four new vessels as
follows:
During the fourth quarter of 2013, MatNav and Philly Shipyard, Inc. (“Philly Shipyard”) entered into
definitive agreements pursuant to which Philly Shipyard will construct two new Aloha Class
containerships with dual-fuel capable engines (the “Philly Shipbuilding Agreements”).
During the third quarter of 2016, MatNav and General Dynamics NASSCO (“NASSCO”) entered into a
definitive agreement pursuant to which NASSCO will construct two new Kanaloa Class combination
container and roll-on/roll-off (“Con-Ro”) vessels with dual-fuel capable engines (the “NASSCO
Shipbuilding Agreements”).
Certain specifications of the new vessels on order are as follows:
Usable Cargo Capacity
Maximum Maximum Containers Vehicles
Official Expected Type of Speed Deadweight Reefer
Name of Vessels Number
Delivery
Date Class Vessel Length (Knots) (Long Tons) TEUs Slots Autos
Dual-fuel Capable
Daniel K. Inouye 1274136 Q3 2018 Aloha Class Containership
854’
0” 23.5 50,794 3,220 408 —
Kaimana Hila 1274135 Q1 2019 Aloha Class Containership
854’
0” 23.5 53,747 3,220 408 —
Lurline 1274143 Q4 2019 Kanaloa Class Con-Ro
869’
5” 23.0 50,981 2,750 432 500
Matsonia 1274123 Q2 2020 Kanaloa Class Con-Ro
869’
5” 23.0 50,981 2,750 432 500
Expected annual construction progress payments based on signed agreements and change
orders, excluding owners’ items and capitalized interest, for both the Aloha Class and Kanaloa
Class vessels are as follows:
(in millions) 2016 and Prior 2017 2018 2019 2020 Total
Two Aloha Class Containerships $ 95.9 $159.1 $138.1 $ 20.3 $ 0.9 $414.3
Two Kanaloa Class Con-Ro Vessels 25.6 41.7 246.1 174.3 23.3 511.0
Total $ 121.5 $200.8 $384.2 $194.6 $ 24.2 $925.3
Upon delivery, the two new Aloha Class containerships are expected to replace the three active
steamships currently deployed in the Company’s Hawaii service. By the end of 2019, Matson expects to
have retired all of its seven active steamships as they will no longer comply with new environmental
regulations without substantial modifications that are effective as of January 1, 2020.
4. When complete, these new Aloha Class containerships and Kanaloa Class Con-Ro vessels are expected to
have among the lowest operating cost per TEU of any vessel in the U.S. domestic trades.
The cost efficiencies are expected to be driven by our ability to return to an optimal nine vessel Hawaii
fleet deployment and by significantly lower operating costs including fuel consumption, maintenance
and repair, and dry-docking costs.
[Emphasis Supplied]
Source: Matson. Annual Report.10K Annual Report. Filed February 24, 2017, accessed April 26, 2017
http://investor.matson.com/secfiling.cfm?filingID=1558370-17-947&CIK=3453 Page 4 – 5
_______________________
ACTIVE VESSELS OWNED AND CHARTERED BY MATSON AS OF DECEMBER 31, 2016 ARE AS FOLLOWS:
Usable Cargo Capacity
Maximum Maximum Containers Vehicles
Owned/ Official Year Speed Deadweight Reefer
Name of Vessels (1) Chartered Number Built Length (Knots) (Long Tons) TEUs (2) Slots Autos
Diesel-Powered - Owned
MAUNALEI Owned
1181627 2006
681’
1”
22.0
33,771
1,992 328
—
MANULANI Owned
1168529 2005
711’
11”
23.0
29,517
2,378 284
—
MAUNAWILI Owned
1153166 2004
711’
11”
23.0
29,517
2,378 326
—
MANUKAI Owned
1141163 2003
711’
11”
23.0
29,517
2,378 326
—
OLOMANA (3) Owned
1559 1999
381’
5”
14.0
5,364
521 68
—
R.J. PFEIFFER Owned
979814 1992
713’
6”
23.0
27,100
2,245 300
—
MATSON KODIAK Owned
910308 1987
710’
0”
20.0
37,473
1,668 280
—
MATSON ANCHORAGE Owned
910306 1987
710’
0”
20.0
37,473
1,668 280
—
MATSON TACOMA Owned
910307 1987
710’
0”
20.0
37,473
1,668 280
—
MOKIHANA Owned
655397 1983
860’
2”
23.0
29,484
1,994 354
1,323
MANOA Owned
651627 1982
860’
2”
23.0
30,187
2,824 408
—
MAHIMAHI Owned
653424 1982
860’
2”
23.0
30,167
2,824 408
—
Diesel-Powered - Chartered
IMUA II (3) Chartered 9184237 2005
388’
6”
15.0
8,071
630 90
—
6. b. PASHA JEAN ANNE
Hailing port: San Francisco
Length: 579 feet
Beam: 102 feet
Draft: 28 feet 8.5344 meters
Source: Pasha. Accessed April 26, 2017 https://www.pashahawaii.com/services/vessels/mv-jean-anne
c. PASHA MARJORIE C
Hailing port: Honolulu
Length: 692 feet
Beam: 106 feet
Draft: 31 feet 9.448 meters
Source: Pasha. Accessed April 26, 2017 https://www.pashahawaii.com/services/vessels/pacific
d. PASHA PACIFIC (Horizon)
Hailing port: New York, NY
Length: 813 feet
Beam: 90 feet
Draft: 36.5 feet 11.1252 meters
Source: Pasha. Accessed April 26, 2017 https://www.pashahawaii.com/services/vessels/pacific
e. PASHA RELIANCE (Horizon)
Hailing port: Philadelphia, PA
Capacity: 2,437 TEU
Length: 893 feet
Beam: 100 feet
Draft: 40.8 feet 12.43584 meters
Source: Pasha. Accessed April 26, 2017 https://www.pashahawaii.com/services/vessels/reliance
f. PASHA SPIRIT (Horizon)
Hailing port: Philadelphia, PA
Length: 893 feet
Beam: 100 feet
Draft: 40.8 feet 12.43584 meters
Source: Pasha. Accessed April 26, 2017 https://www.pashahawaii.com/services/vessels/spirit
7. 3. PORTS OF HAWAII – TOO SMALL, TOO SHALLOW
HONOLULU HARBOR
Honolulu Harbor contains more than 30 berth facilities at more than eight kilometers (five miles) of
mooring space with a depth of 12.2 meters (40 feet).
Called Fort Armstrong Channel, the 13.7-meter (45-foot) deep main channel is the entry and exit port
for Honolulu Harbor.
Tidal range in Honolulu Harbor averages 0.6 meters (1.9 feet), but the highest tide on record was 0.9
meters (3.1 feet) and the lowest was -0.4 meters (-1.15 feet).
Piers 36 through 38 are home to Honolulu Harbor's Domestic Fishing Village. Each of the piers serves
commercial fishing vessels. Pier 36 serves commercial fishing boats. It has berthing distance of 166.4
and 121.9 meters (546 and 400 feet) with alongside depth of 10.7 meters (35 feet). Pier 37 serves
commercial fishing vessels and is the site of fish auctions in Honolulu Harbor. Pier 37 has berthing
distance of 124.4 meters (408 feet) with alongside depth of 3.0 meters (10 feet). Pier 38 serves
commercial fishing boats and a propane barge . The Honolulu Harbor fishing boat station has berthing
distance of 178.9 meters (587 feet) with alongside depth of 6.1 meters (20 feet). The propane barge
station has berthing distance of 18.9 meters (62 feet) with alongside depth of 7.6 meters (25 feet).
Container terminals
Honolulu Harbor's Pier 1, or Fort Armstrong, specializes in handling foreign containers and neo-
bulk cargoes. Pier 1 has berthing distance of 358.1 meters (1175 feet) with alongside depth of
12.2 meters (40 feet). Containers are also handled at Honolulu Harbor's Piers 39 through 45.
Pier 42 is the site for the container freight station, and it has two berths with berthing distance
of 64.0 and 91.4 meters (210 and 300 feet) and alongside depths from 6.7 to 10.4 meters (22
to 34 feet).
Honolulu Harbor's Pier 39 has seven berthing stations totaling 2.7 kilometers (1.7 miles) in
length with alongside depth of 9.1 meters (30 feet) that handle containers, breakbulk, and roll-
on/roll-off cargoes as well as support barges and tugboats.
Pier 40 in Honolulu Harbor also handles containerized, breakbulk, and roll-on/roll-off cargoes at
six berthing stations that are a total of 2.4 kilometers (1.5 miles) long with alongside depth of
9.1 meters (30 feet).
8. Bulk and breakbulk terminals
Piers 31 through 35 in Honolulu Harbor, all of which have alongside depth of 10.7 meters (35
feet), handle general cargo, dry bulk, and roll-on/roll-off cargo.
Honolulu Harbor's Piers 19 through 29 handle general and roll-on/roll-off cargoes, barges,
tugboats, cruise ships, water taxis, and barges. These Honolulu Harbor piers have total berthing
distance of more than meters 1828 meters (6000 feet), and 80% of the berthing space has
alongside depths from 9.1 to 10.4 meters (30 to 34 feet).
Ro/Ro terminals
Located at Honolulu Harbor's Sand Island, Piers 51 through 53 handle domestic containers and
automobiles. The Sand Island piers have a total length of 9.9 kilometers (6.1 miles). Honolulu
Harbor's Pier 51A also handles roll-on/roll-off cargoes and petroleum. It has berthing distance
of 207.3 meters (680 feet) with alongside depth of 11.3 meters (37 feet) and a 26.3-acre open
yard.
Pier 51B has berthing distance of 169.5 meters (556 feet) with alongside depth of 11.3 meters
(37 feet), and it has a 31.1-acre open yard. Berth 51C and Piers 52 and 53 have alongside depth
of 12.2 meters (40 feet).
Source: World Port Source. Honolulu Harbor. Accessed April 26, 2017
http://www.worldportsource.com/ports/commerce/USA_HI_Honolulu_Harbor_Oahu_166.php
HONOLULU HARBOR, OAHU - FOREIGN TRADE
http://www.worldportsource.com/trade/USA_HI_Honolulu_Harbor_Oahu_166.php
HILO HARBOR
Hilo Harbor is protected by a three thousand meter (ten thousand foot) breakwater. The Hilo Harbor
basin is 427 meters (1400 feet) wide by 701 meters (2300 feet) long. The entrance channel to Hilo
Harbor is 10.7 meters (37 feet) deep.
Pier 1 has berthing space of 382 meters (1255 feet). Pier 2 has berthing space of 214 meters (703 feet),
and Pier 3 has berthing space of 194 meters (637 feet). Alongside depth at the piers ranges from 10.1
meters (33 feet) to 10.7 meters (35 feet).
Pier 1 in Hilo Harbor is used to ship and receive conventional and containerized general cargo and
automobiles. It is also used for receiving dry bulk commodities, bulk fertilizers, and lumber. Finally, Pier
1 is used for boarding passengers. Hilo Harbor's Pier 1 is located adjacent to the inner end of the
breakwater. It has berthing space of 382 meters (1255 feet) with alongside depth of 10.4 meters (34
feet).
9. Pier 2 is used to receive and ship conventional and containerized general cargo and automobiles. It is
also used to receive lumber and bulk cement. Pier 2 has berthing space of 214 meters (703 feet) with
alongside depth of 10.7 meters (35 feet).
Pier 3 is also used for shipping and receiving conventional and containerized general cargo and
automobiles. Pier 3 has berthing space of 194 meters (636 feet) with alongside depth of 10.7 meters
(35 feet).
Source: World Port Source. Accessed April 25, 2017
http://www.worldportsource.com/ports/commerce/USA_HI_Hilo_Harbor_Hawaii_827.php
HILO HARBOR, HAWAII - FOREIGN TRADE
http://www.worldportsource.com/trade/USA_HI_Hilo_Harbor_Hawaii_827.php
KAWAIHAE HARBOR
Kawaihae Harbor contains two commercial piers with about 14 acres of space for cargo-handling and
storage.
The Harbors Division, State of Hawaii, owns and operates Kawaihae Harbor Pier 1 to receive and ship
conventional and containerized general cargo, automobiles, and perishable foods and to receive lumber
and cement.
Kawaihae Harbor Pier 1 has berthing space of 125 meters (410 feet) with alongside depth of 6.1 meters
(20 feet).
Kawaihae Harbor Pier 2 is also owned and operated by the Harbors Division. Used to ship and receive
conventional and containerized general cargo and automobiles, Pier 2 also receives petroleum products
and sends aggregate materials. Kawaihae Harbor Pier 2 has berthing space of 351 meters (1152 feet)
with alongside depth of 10.7 meters (35 feet)
Source: World Port Source. Accessed April 25, 2017
http://www.worldportsource.com/ports/commerce/USA_HI_Kawaihae_Harbor_Hawaii_828.php
NAWILIWILI HARBOR
The State of Hawaii's Harbors Division owns and operates Nawiliwili Harbor Piers 1 and 2. These piers
receive and ship containerized and conventional general cargo and automobiles.
Piers 1 and 2 have berthing space of 392 meters (1285 feet) with alongside depth of almost 11 meters
(35 feet).
10. The State's Harbors Division also owns and operates the Nawiliwili Harbor Pier 3. Pier 3 receives and
ships conventional and containerized general cargo and automobiles. Pier 3 receives liquefied
petroleum gas, dry bulk fertilizer, and lumber. Pier 3 has berthing space of 191 meters (627 feet) with
alongside depth of almost 11 meters (35 feet).
http://www.worldportsource.com/ports/commerce/USA_HI_Nawiliwili_Harbor_Kauai_829.php
NAWILIWILI HARBOR, KAUAI - FOREIGN TRADE
http://www.worldportsource.com/trade/USA_HI_Nawiliwili_Harbor_Kauai_829.php
PORT ALLEN
The State of Hawaii's Harbors Division within the Department of Transportation manages Port Allen
Harbor.
The Harbors Division owns and operates the Port Allen Harbor Pier. The Pier is used to receive
petroleum products, fuel oil, and liquid fertilizer as well as for mooring vessels. The Pier has berthing
space of 38 meters (124 feet) with alongside depth of almost 11 meters (35 feet).
Source: World Port Source. Accessed April 25, 2017
http://www.worldportsource.com/ports/commerce/USA_HI_Port_Allen_Harbor_Kauai_830.php
KAHULUI HARBOR
HARBOR CHARACTERISTICS
Harbor Size: Small Harbor Type: Coastal Breakwater Shelter: Good
TURNING AREA: YES
MAXIMUM VESSEL SIZE: Over 500 feet in length
Good Holding Ground: No
ENTRANCE RESTRICTIONS
Tide: No Swell: No Ice: No
WATER DEPTH
Channel: 31 - 35 feet 9.4 - 10 meters Anchorage: 41 - 45 feet 12.5 - 13.7 meters
Cargo Pier: 31 - 35 feet 9.4 - 10 meters Mean Tide: 1 foot
Source: World Port Source. Accessed April 25, 2017
http://www.worldportsource.com/ports/portCall/USA_HI_Kahului_Harbor_Maui_824.php
11. KAHULUI HARBOR, MAUI - FOREIGN TRADE
http://www.worldportsource.com/trade/USA_HI_Kahului_Harbor_Maui_824.php
KALAELOA BARBERS POINT HARBOR
The State of Hawaii's Harbors Division is the port authority for Kalaeloa Barbers Point Harbor. Kalaeloa
Barbers Point Harbor serves a niche market within the Hawaiian port community. Kalaeloa Barbers
Point Harbor contains several specialized cargo-handling facilities that are not available in Honolulu
Harbor.
The entrance to the main channel is 945 meters (3100 feet) long, 137 meters (450 feet) wide, and 12.8
meters (42 feet) deep. The main basin of Kalaeloa Barbers Point Harbor is 701 meters (2300 feet) long,
548 meters (1800 feet) side, and 11.6 meters (38 feet) deep. The Barge Basin, basically the original
harbor that was built in 1961, is located near the entrance channel.
Piers 5 and 6 receive and ship petroleum products and conventional and containerized general cargo. It
is also used to receive grains and dry bulk cargos and to ship cement. Vessels are also bunkered at
Kalaeloa Barbers Point Harbor Piers 5 and 6. There are almost 35 acres of paved open storage at the
rear of the piers.
Kalaeloa Barbers Point Harbor Piers 5 and 6 has berthing space of 488 meters (1600 feet) with alongside
depth of 11 meters (36 feet).
Source: World Port Source. Accessed April 25, 2017
http://www.worldportsource.com/ports/commerce/USA_HI_Kalaeloa_Barbers_Point_Harbor_Oahu_
822.php
IT’S ALL IN THE STARS!