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Port Expansion: Honolulu

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Hawaii: HDOT Selects Contractor for Kapalama Container Terminal Project

Gov. David Ige and the Hawai‘i Department of Transportation (HDOT) Harbors Division on September 21 announced the awarding of a $163.5 million contract for construction of the first phase of the Kapalama Container Terminal (KCT).  

The KCT project at Piers 41, 42, and 43 in Honolulu Harbor is the centerpiece of the state’s Harbors Modernization Plan (HMP) and features a new 84-acre/34-hectare container yard and 1,800 linear feet of new berthing space. HDOT received six sealed bids for Phase I.

The site was previously the location of a military reservation constructed to provide logistical support during World War II.

"The Kapalama cargo yard is one of the most significant and impactful achievements of this administration," said Governor Ige. "As a legislator, I supported this initiative as an investment in Hawaii’s future. As governor, I recognize that there are few projects with such a wide-ranging impact on Hawaii’s residents." Most of the goods we need for survival come in through our harbor system. More than 80 percent of all goods consumed in Hawai‘i are imported, and about 99 percent of the imported goods enter the state and are delivered to each island via our ten commercial harbors.

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, KCT will reduce the congestion in Honolulu Harbor. Its location bordering the existing inter-island cargo yard will allow approximately 50,000 truckloads per year to move directly between the facilities, alleviating traffic on adjacent road ways.

Phase I – Landside Construction is scheduled to begin in December 2017. Phase I includes an 84-acre/34-hectare container yard with an elevated two-foot grade to accommodate sea level rise, construction of support buildings, entry and exit gates, security fencing, parking, gantry cranes and container-handling equipment, on-site utilities, energy efficient lighting, a HDOT-Highways weigh station, and other ancillary features. This phase also includes the paving of surface streets leading to the adjacent existing inter-island cargo facility.

Phase II – Waterside Construction is tentatively scheduled to be out to bid in 2018, pending permit approvals.

The HDOT Harbors Division administers the 10 public ports that comprise the state’s commercial harbor system as a self-funded enterprise that generates revenue through collection of user fees, leases, tariffs and charges necessary to cover operating expenses and the costs of capital improvement projects. The harbor system receives no federal revenue or state funds from the general fund, meaning it does not receive traditional taxpayer money from sources like income tax.  During fiscal year 2015-16, the system handled 22.7 million short tons of cargo, 1.5 million container TEUs, and more than 1.0 million cruise passengers.

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