The document summarizes plans by various shipping companies that operate in Hawaii to invest in new ships and port infrastructure to modernize operations. Governor Ige announced that the Kapalama Container Terminal project in Honolulu will be constructed in two phases over four years with an estimated cost of $448 million and is expected to be completed in 2022. Young Brothers, Pasha Hawaii, Matson, and TOTE Maritime each placed orders for new, more efficient ships powered by liquefied natural gas that will begin entering service between 2018 and 2021. The investments are being made to support growth and take advantage of the upgraded Kapalama Container Terminal facility.

1. GOVERNOR DAVID Y. IGE
STATE OF HAWAII
The State thanks its industry partners
and the Hawaii Harbors Users Group
for its commitment to the Harbors Modernization Plan
and the necessary tariff increases to finance the projects
________________________________________________________
DEPARTMENT OF TRANSPORTATION, HARBORS DIVISION
PORT OF HAWAII
JANUARY 13, 2017 – ASSOCIATION OF PACIFIC PORTS
https://static1.squarespace.com/static/5228f3e5e4b00447185d4ee0/t/588fab1ae6f2e1fa1d525f5c/1485810479377/Duane+Kim%2C+Hawaii+DOT.pdf
Presentation by Duane Kim, Harbor Master
Maui District Commercial Harbors
THE HARBORS & HAWAII
DOT Harbors manages Port Hawaii to most efciently move people and goods to,
from, and between our islands
The harbors system is Hawaii’s lifeline
➢ 80% of goods consumed are imported
➢ 98% enter Hawaii through the Harbors
➢ Every resident of Hawaii relies on the goods that arrive through the
harbors
➢ Food, fuel/energy, necessities
KAPALAMA CONTAINER TERMINAL (KCT)
The heart of the Harbors Modernization Plan; new harbor system (KCT)
➢ Locates a cargo yard in Kalihi in addition to Sand Island
➢ Construction to begin Spring 2017
➢ Project to be completed in two phases over 4 years - 2021
➢ Supports greater efciencies which will allow for decreased costs
[Emphasis and Clarifcation Supplied]

2. GOVERNOR DAVID IGE, September 21, 2017
The KCT project will be constructed in two phases over a four-year period
with an estimated project cost of $448 million. Upon completion, targeted
for 2022,
Source: HIDOT. Governor Ige Announces Milestone In Harbor Modernization September
21, 2017, accessed January 4, 2018 http://hidot.hawaii.gov/blog/2017/09/21/governor-
ige-announces-milestone-in-harbor-modernization/
_________________________
Rhythm and timing are the two things which we all must have
yet no one knows how to teach either
-- Bobby Jones
Young Brothers, Limited, Hawaii's largest inter-island cargo service provider, has
signed a contract valued at nearly $80 million with Conrad Shipyard, Morgan
City, LA, covering construction of four new tugs. The frst tug will be delivered
in the frst quarter of 2018, and the fourth by the frst quarter of 2019.
{Emphasis Supplied]
Source: Young Brothers orders four new tugs at Conrad Ship. Marine Log. June 28, 2016,
accessed January 4, 2018 http://www.marinelog.com/index.php?option=com_k2&view=item&id=22165:young-
brothers-orders-four-new-tugs-at-conrad-shipyard&Itemid=1
____________
Pasha Hawaii will be adding two more ships to its feet providing Jones Act
shipping service between the U.S. mainland and Hawaii with the addition of two
newbuild gas-powered containerships. Construction of the two containerships
will begin immediately, with delivery of the frst vessel expected in 1Q 2020,
and the second vessel in 3Q 2020. {Emphasis Supplied]
Source: Pasha Hawaii Confrms Order for Two LNG-Powered Containerships at Keppel By Mike
Schuler. gCaptain. August 24, 2017, accessed January 4, 2018
http://gcaptain.com/pasha-hawaii-confrms-order-two-lng-powered-containerships-keppel/

3. Matson has two Aloha Class ships under construction at Philly Shipyard in
Philadelphia with deliveries scheduled for the third quarter of 2018 and frst
quarter of 2019, respectively. Matson has also ordered two Kanaloa Class
vessels from General Dynamics NASSCO in San Diego with deliveries scheduled
for the end of 2019 and mid-year 2020.
{Emphasis Supplied]
Source: Matson Signs Contracts for a Total of Six New and Upgraded Cranes for Honolulu
Terminal. Investments tied to terminal expansion in preparation for new ships. MATSON.
August 23, 2017, accessed January 4, 2018 https://investor.matson.com/static-fles/c9ef78bc-
6fc6-4773-ab3b-7624efb8ac98
____________
Under the terms of the LOI, TOTE will order two 3,700 TEU containerships with
an option to order two additional sister ships. The vessels will feature dual-fuel
engines that can be adapted to use liquefed natural gas (LNG).
It is intended that these vessels will service TOTE’s new domestic shipping service
between the U.S. West Coast and Hawaii.
Conversions at the new deep water Kapalama Container Terminal (KCT) in
Honolulu have already started for TOTE.
As planned, the new vessels from Philly Shipyard will enter service in early
2020 and 2021. The shipyard noted in an earlier statement that it has already
begun construction of the vessels to support their optimal delivery dates.
These vessels are the continuation of the series of two similar 3,600 TEU Aloha
Class containerships currently under construction at PSI for the Hawaii trade-lane.
{Emphasis Supplied]
Source: Philly Shipyard confrms LNG-ready containerships LOI with TOTE. LNG WORLD
NEWS. August 18, 2017, accessed January 4, 2018 https://www.lngworldnews.com/philly-
shipyard-confrms-lng-ready-containerships-loi-with-tote/