Honolulu Harbor enters Phase 2 of efficiency, capacity project

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A project run by the Hawaii Department of Transportation (HDOT) at Honolulu Harbor is entering its second phase, progressing the largest capital improvement project in Hawaii’s history.

Known as the Kapalama Container Terminal (KCT) project, the effort began in January 2018 with a $163 million Phase 1, still slated for completion this summer. Phase 2, however, should cost between $200-300 million and be completed in 2023. Bids will open in February.

The two phases cover different aspects of the larger project, though. Phase 1 is tackling landside construction and the addition of 66.5 acres of yard space, gates, lighting, and equipment. Phase 2 will focus on waterside construction at the harbor for piers 40-43, adding 1,800 linear feet of berthing space and an additional 18.5 acres of container operational areas next to the cargo ships. The berthing space should add enough space for two container ships to dock simultaneously alongside six gantry cranes. Other work to be performed will include dredging along the waterfront and in the harbor channel, as well as widening the slips between piers.

“Positive improvements are underway at our commercial harbors that will enhance operations for the harbor users, which ultimately benefits the public as a whole,” Derek Chow, Deputy Director of HDOT’s Harbors Division, said. “This project is especially exciting because it will help address our capacity issues and meet the growing economic demands for the long term, that when complete, overseas transfers of containers to the interisland carrier will reduce traffic around the harbor’s surrounding roads.”

Efficiency and traffic reduction are major goals of the larger project, a cornerstone of the Harbors Modernization Plan. The plan is seen as critical for the future of the state as more than 80 percent of all goods consumed by Hawaii’s people are imported, with more than 98 percent of those goods coming through the harbor system.

HDOT said no state general fund taxpayer money has been used for the construction, though. Instead, the self-sufficient Harbors Division has utilized revenue from harbor user fees and charges to pay for such projects.