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February - March 2000

Register now for Hawaiian Maritime Industry Day 2000

Pacific Whale Foundation launches eco-friendly boat

Maritime needs for the new millennium

Hawaii’s ship repair industry: Better times on the horizon

Marisco expands facilities

Survey: Big role for humpbacks in tour boat industry

Stowaway aliens plague West Coast

Regulatory News

Marine Casualties



News Briefs   News from Matson, CSX and Hawaii Pilots

Soundings   Why I want to be a captain






Register now for Hawaiian Maritime Industry Day 2000

The 10th Annual Hawaiian Maritime Industry Day – Hawaii’s premier maritime community event – takes place Wednesday, March 15, in the Tapa Ballroom at the Hilton Hawaiian Village. Hawaii Ocean Industry and Shipping News is a sponsor of the day-long conference, organized by the Coast Guard Marine Safety Office in Honolulu.

The $30 admission fee includes a continental breakfast, lunch, breakout sessions, industry exhibits, $3 validated parking, and a post-
conference reception with pupus and no-host bar. Breakout sessions will cover a variety of safety, environmental, regulatory and operational issues affecting Hawaii’s ports.

Register online by March 1 at
For conference information, call USCG MSO-Honolulu, (808) 522-8256.

Exhibitor Booth Space Available

In addition to the conference sessions there will be an exhibitor’s hall with vendors and organizations presenting their services, products and information.
Booth space is available by calling Terry White at Hawaii Ocean Industry & Shipping News, 808-599-3788.  The booth rental fee includes approximately 10’ x 10’ of exhibit space, one table, electrical access and validated parking.  







Pacific Whale Foundation launches eco-friendly boat

The Pacific Whale Foundation has built a new 49-passenger, 54-foot deluxe power catamaran with innovative features that will make it the most environmentally sound, whale-friendly motorized vessel operating from Maui. The vessel, named Ocean Explorer, began operating eco-adventure cruises out of Lahaina Harbor on January 1.

Using data collected by humpback whale researchers, the Pacific Whale Foundation team worked with the designers at Kvichak Marine Industries of Seattle, Wash. and Morrelli & Melvin of San Diego, Calif., to design and build the eco-friendly vessel. Features such as skewed propellers, a sound-deadening hull and a high-tech muffler system reduce the amount of underwater noise generated by the boat.

The Ocean Explorer includes other eco-friendly features, too. The primary material for the boat is high-recycled content aluminum, which has reduced the amount of timber and other raw materials required to build the boat. The exterior aluminum finish above the water line has been left unpainted, reducing the use of toxic paints.

The vessel’s twin Cummins 6CTA diesel engines were computer-designed for maximum energy efficiency. Each engine is rated for 430BHP at 2600 rpm and drives a Teignbridge 28" diameter five-blade, stainless steel propeller through a ZF IRM 305A down-angle marine transmission. The engines also meet the International Maritime Organization’s proposed Annex VI of MARPOL 73/78, for the prevention of air pollution from ships.

The Ocean Explorer will be able to cruise comfortably at 25 knots with a top speed in excess of 30 knots.

Passengers sit in individual cushioned captain-style chairs arranged stadium-seating style to give each passenger the maximum opportunity to view whales and other marine wildlife.

“We designed the Ocean Explorer to offer ideal viewing of whales from all seats, based on findings that showed vessels with restricted viewing platforms forced their captains to continually maneuver their boats to maintain viewing access for their passengers,” says Greg Kaufman, founder and president of Pacific Whale Foundation. “Extra maneuvering creates extra noise.” 








Maritime needs for the new millennium

by Kraig Kennedy

The Maritime Committee of the Chamber of Commerce recently hosted the third annual Hawaii Maritime Conference. It was well attended and included virtually all maritime industry leaders, state administrators and legislators responsible for maritime lands and facilities, and several federal agency representatives. The primary purpose of this conference was to establish consensus within the maritime industry on the top concerns to be addressed in this millennium year.

Conference workshops identified both infrastructure priorities and legislative recommendations, and further indicated that the maritime industry wants to be proactive in the resolution of multi-jurisdictional issues between state agencies.
The final report from the conference identified five short-term and four long-term projects that the maritime industry believes are essential to future growth on the waterfront, and to ensure the long-term economic growth of the state.

The short-term facility projects include:

Sand Island container yard expansion. Matson and CSX Lines are both operating their container yards at maximum capacity/efficiency and need room for expansion. This issue has been in the discussion phase between state agencies, and the maritime industry believes this is one of the keys to continued economic growth for the state. Specifically, 26 acres across Sand Island Road from the existing facilities is under consideration.

Pier 2 cruise ship terminal. American Hawaii Cruises and its newly formed sister company, U.S. Lines, recently announced plans to increase its fleet to three ships for local cruises. Further, port calls by foreign cruise ships to the Hawaiian Islands have increased from 97 in 1997 to 240 in 1999, with future growth expected. At the moment, Honolulu only has one cruise ship facility designed to support cruise ship business. Future cruise ship home porting and foreign ship port call growth to Honolulu can only be supported if a second terminal is built.

Kailua-Kona Pier repairs and improvements. The pier at Kailua-Kona is in need of serious repair. It is used by small boat users, fishing boats, tour boats and as a landing for tender boats from the cruise ships. It cannot accommodate all the needs and requirements that presently exist. Improvements and repairs to this facility must be accomplished to support current requirements and future growth.

Kikiaola dredging and tender boat pier (new). This project will significantly reduce tour boat congestion in Port Allen, provide an opportunity for another port visit for cruise ships, and significantly enhance economic development in West Kauai.

The long-term projects, defined as projects needed over the next 6 to 20 years, include:

  • Sand Island tunnel/Kalihi Channel. This project would open the Kalihi Channel to ship traffic, greatly reducing harbor congestion by creating two entrances/exits to Honolulu Harbor. The need to widen and dredge the channel is critical to support Hawaii’s economic growth since 98.6 percent of all goods to Hawaii arrive through Honolulu Harbor. Any interruption of ship traffic caused by closure of our current single entrance would shut down our economy. A second harbor entrance at Kalihi Channel would solve this potentially catastrophic disaster.

  • Kapalama container yard development. The projection for container yard requirements in the Oahu Commercial Harbors 2020 Master Plan, based on economic forecasts, reflects a shortage of 85 to 100 acres of container yard area in 20 years. Container yard expansion is an absolute necessity to support Hawaii’s economic growth.

  • Hilo dedicated cruise ship pier (new). Presently, cargo and passenger vessels use the same facility, creating safety and capacity concerns in both segments of our industry. With the expected growth in both industries, it is essential to separate cargo activity from passenger activity.

  • Kahului cruise ship terminal. American Hawaii Cruises has announced that it will permanently home port the SS Independence on Maui this year. Temporary facility improvements are being planned for the short term. However, the need to separate passenger cruise ship business from cargo activity, similar to Hilo, applies here as well. The Kahului cruise ship terminal project will segregate these activities, and provide for the anticipated growth of the cruise ship business on Maui.
    Legislative Initiatives

The maritime industry has stepped forward in strong support of four legislative initiatives that would help accomplish the above projects.
The first and most significant initiative is legislation that would establish a water dependency criterion for maritime lands. The intent is to identify and preserve for maritime use those lands required for activities that are dependent on being adjacent to water to be accomplished.

The second initiative is a proposal to allocate the majority of the tax revenue stream on future domestic cruise ships placed in service for the first time to finance necessary passenger ship facilities around the state over the next nine years.

The third initiative will allow cost reimbursement to private developers of maritime facilities on state land over time, through rebate of fees and lease rents.

Lastly, the maritime industry supports the initiative of the Department of Land and Natural Resources and the Department of Transportation to have broader authority over harbor back-up lands. This would allow non-maritime ancillary or supportive uses on harbor back-up lands that have a public benefit and would generate a fair return to the state landholder. New revenues so generated could then be used for further harbor improvements.

The Maritime Committee is actively involved with our state and local leaders, helping to provide information and assistance as our lawmakers and administrators work to improve our harbor facilities and capabilities. It’s an exciting challenge at a pivotal time in our statewide maritime harbor development

Kraig Kennedy, executive vice president of McCabe Hamilton & Renny Co., Ltd., is the current chairman of the Chamber of Commerce of Hawaii Maritime Committee.








Hawaii’s ship repair industry: Better times on the horizon

by Mele Pochereva

After nearly a decade of economic stagnation and a severe cutback in Navy repair contracts several years ago, Hawaii’s ship repair industry sees better times ahead. A huge jump in private sector contracts for Navy repair work this fiscal year is part of the reason for optimism, but the recent two-week dry-docking of American Hawaii Cruises’ SS Independence at Pearl Harbor Naval Shipyard may open new doors of opportunity that lead to long-term growth for Hawaii shipyards.

For an industry that has depended on Navy contract work for 65 to 75 percent of its business, the drop in contracts from $28 million in FY96 to $9 million in FY97 was a devastating blow. It spurred the local ship repair industry, and their subcontractors, suppliers and customers, to form the Ship Repair Association of Hawaii in late 1997.

The private sector/military working group set out to explore solutions that would keep afloat the state’s ship repair capacity, not only for the survival of local shipyards, but in order to maintain an adequate skilled workforce to service both the Navy and large commercial vessels. Their vision: Dry-dock facilities at Pearl Harbor Naval Shipyard would be available for use by the private sector, with a steady stream of civilian work.

Today, John Ball, president of the Ship Repair Association and CEO of Honolulu Shipyard Inc., sees that vision turning to reality following the successful dry-docking of the SS Independence at Pearl Harbor in early January. It was the first-ever routine maintenance visit for a civilian ship, and a job worth about $5 million to Honolulu Shipyard and its 35 or so subcontractors. It could be the beginning of more such work in the near future.

Adding to the optimism is more than $40 million worth of Navy repair and maintenance work going out to the private sector this fiscal year. It’s the largest amount of naval contract work for Hawaii companies in more than five years, and though this may be an unusual surge, Ball hopes the Navy work will stay in the range of $25 million to $30 million a year.

Mission possible

Ball likens the Independence job to a shuttle space mission, with 1,400 separate tasks and more than 700 workers carefully scheduled by a computerized project-planning program.

To get the job done in the allotted two-week timeframe, work was done around the clock, in three 8-hour shifts. Radio communications kept everyone apprised of progress, and enabled a quick response to any unforeseen needs.
“We knew every move of every person every hour,” said Ball.

While planning was a key to the project’s successful, on-time completion, Ball was impressed with the cooperation among so many different contractors.
“No one wanted to fail. All of our subcontractors wanted [the job] to work, and just went out and did it,” he said.

Landing the job wasn’t all smooth sailing, however. Honolulu Shipyard first approached American Hawaii Cruises in late 1997 about doing the work at Pearl Harbor. Then there were a number of legal hurdles to overcome with the U.S. Navy since this was a precedent-setting proposal. Finally, Honolulu Shipyard had to win the bid over Southwest Marine in San Diego and Cascade General Shipyard in Portland, Oregon, the contractor for many of the Independence’s previous dry-dockings.

The biggest concern for American Hawaii Cruises was the “unknown” of using the Navy facility for the first time, said Randy Burns, the company’s vice president of marine operations and project manager for the dry-docking. Regulations and procedures for working in a military facility, such as ballast discharge and other issues, are different from a commercial shipyard, he said.

Nonetheless, the work “went incredibly smooth,” said Burns.

By keeping the Independence in Hawaii, the company saved about nine days in transit time to and from the West Coast. That meant less wear and tear on the ship, which would have made the trans-Pacific run at full speed. And, it meant one less week out of service, which would have cost the company an estimated $1.2 million in gross revenues.

Would American Hawaii consider a Pearl Harbor dry-docking again? “Absolutely, Burns said. “It was a good opportunity for the whole marine community.”
There appears to be similar enthusiasm among Navy officials.

“The Navy is pleased with how well this partnership between Oahu private shipyards and the Pearl Harbor Naval Shipyard and IMF (Intermediate Maintenance Facility) worked for the SS Independence dry-docking,” said Bill Ryzewic, the Pacific Fleet’s executive director for fleet maintenance. “The Navy considers private shipyards on Oahu an important contributor to Navy ship maintenance. In support of this, the Navy is willing to enter into future partnership arrangements, similar to this dry-docking, to enable private shipyards to maintain their capabilities.”

“What the Independence job proved is that we are capable of doing the job [in Hawaii],” noted Charley Pires, whose company, Kewalo Shipyard, was one of the subcontractors. “I think it was wonderful for everybody. We’re all competitors – fierce competitors at times – but the teamwork was incredible.”

World-class facility

Honolulu Shipyard’s Ball says that in view of Hawaii’s location and the fact that 98 percent of its goods arrives by ship, the state should have a world-class shipyard. Dry Dock 4 at Pearl Harbor Shipyard could be that shipyard, he says.
The ship repair industry will then need to market Hawaii’s ship-repair capabilities to attract the larger commercial and U.S. Coast Guard vessels. This likely will include financial incentives to make Hawaii competitive with mainland yards. Local companies also will have to build their skilled workforce to handle the bigger jobs.

Ball estimates that, by making Pearl Harbor’s shipyard facilities available to the private sector, as much as $50 million a year in additional repair work could be generated in the next two to three years.

And as Kewalo’s Pires points out, “There’s not much floating around the world that can’t go in there.” 

Yet Pires says he doesn’t want to jump to conclusions, and is moving ahead with caution. The last few years have been “disastrous” for his company, whose work is now 60 percent military and 40 percent commercial. He lost people and lost skills as workers left for more secure jobs.

“Everyone’s pinching dollars with the economy,” Pires explains. “Boat owners are just fixing what’s needed right now to get back in the water. They’re just putting on patches.”

Small boatyards stay afloat

While the larger ship repair companies have had to downsize to adjust to a diminishing amount of Navy work, smaller boatyards have found other ways to cope with the state’s lagging economy.

Yoshi Muraoka, director and administrative manager of Keehi Marine, says his company has been pretty lucky with a steady business over the last couple of years. The work is divided about 50/50 between commercial and pleasure boats.

Primarily a haul-out and support facility for outside contractors, Keehi offers reasonable rates compared with some of the larger shipyards, Muraoka says. Also, the company recently expanded its clientele to state, city and federal government vessels, including the city’s fireboat and the Arizona Memorial shuttle boat.

Ala Wai Marine Manager Henry Stewart says it has been a struggle, but since he joined the company four months ago, prices have been reduced, and in-store promotions and marketing efforts have increased.

Our margins are as thin as they can be,” Stewart says. “We’re much more competitive now.”

He says the new management staff also has been working to re-create Ala Wai’s image, adopting a “boater first” attitude, both in its full-service boatyard operations and marine retail store.

With a boatyard staff of 10, most of Ala Wai’s customers are private boaters. Sport-fishing and other commercial vessels account for about 30 percent of the business.












Marisco expands facilities

A new 3,500-ton dry dock for Marisco’s Kalaeloa Barbers Point Harbor facility is scheduled to open in mid-February, and three customers are already lined up for servicing, says Marisco President Fred Anawati.

Complementing the company’s existing 8,000-ton dock, the new addition will “unclog a bottleneck” of repair work and enable the company to attract new customers, such as Chinese and Japanese purse seiners, says Anawati. Another 20 to 25 workers will be added to Marisco’s current workforce of 120.

The “new” dock was built in 1943 as a combatant repair dock (ARDC) for the military, complete with a galley and sleeping quarters for 40 people. But it was mothballed until Campbell Shipyard of San Diego purchased it in 1973.

After Marisco acquired the dock and brought it to Hawaii last December, the company removed tons of auxiliary machinery and gave it a new paint job, upgrading it from a 2,800-ton dock to one capable of lifting vessels up to 3,500 tons.

Anawati says he also is testing the waters with cruise lines and other operators to see if there is a sufficient interest to bring in a dry dock to handle larger ship repairs in Hawaii. He has a “gentlemen’s agreement” to acquire a 35,000-ton dock, but it will require dredging a space for it at the harbor. 








Survey: Big role for humpbacks in tour boat industry

by Mele Pochereva

Hawaii’s ocean tour boat industry generated approximately $132 million in direct revenues in 1999, according to a survey conducted by the Hawaiian Islands Humpback Whale National Marine Sanctuary. Humpback whale watching was a significant part of this total.

During the 1999 whale season (December 15, 1998-April 15, 1999), whale-watching tours alone generated approximately $11 million in direct revenues. Another $5 million of 1999 snorkeling tour revenues were attributed to passengers’ interest in whale watching, according to the study.

Maui was the top whale-watching destination, accounting for about $6.1 million in direct revenues and two-thirds of Hawaii’s estimated 370,000 whale-watching passengers.

The survey also provided information on the overall status of Hawaii’s ocean tour boat industry during the full 1999 calendar year. The estimated $132 million in total direct revenues last year was based on the data provided by about 100 ocean tour operators on the islands of Hawaii, Kauai, Maui and Oahu. (With the exception of whale watching, the Oahu revenue estimates were based on prior research because of the low response from Oahu operators.)

The total economic impact of the industry last year was estimated to be $225 million, including direct revenues in combination with indirect and induced revenues. The industry also supports approximately 3,200 jobs in the state.









Stowaway Aliens Plague West Coast

The number of illegal immigrants arriving on container ships at West Coast ports is on the rise, according to a recent Fairplay News Service story. During the first few days of January, some 70 stowaways were discovered in containers at ports from Vancouver, British Columbia, to southern California in what immigration officials describe as a “new and troubling trend.”

On January 4, Canadian authorities in Vancouver found 25 stowaways in two containers aboard the NYK-owned California Jupiter, bound for Seattle. That same day, 14 illegal immigrants were found in a container on the Liberian-flagged Norasia Shamsha during a spot check, after discovery of 12 others aboard Orient Overseas Container Line’s Faith two days earlier.

Three Chinese were arrested on suspicion of organizing the smugglings. They were linked to an earlier discovery of 30 Chinese stowaways aboard two ships in Southern California.

In the NYK Line case, Canadian customs agents were tipped off by U.S. officials, leading to the discovery of 21 men and four youths aboard the vessel. The stowaways had spent two weeks locked in two steel, canvas-topped containers with a mattress, water, waste containers, and a battery to power a fan and lights. The container manifest listed the contents as machinery. The degree of sophistication and equipment found has led immigration officials to believe that the perpetrators had previous experience in shipping humans in containers.

The shipping company was fined US$255,000, the largest ever issued by Immigration Canada.

After finding illegal Chinese immigrants on two of its ships in U.S. ports, Orient Overseas Container Line is installing sophisticated devices on its vessels to detect humans in containers. The devices will be used to scan containers at terminals and on ships throughout the Asian region. The carrier would not reveal the kind of devices it was acquiring because it did not want “snakeheads,” organizers of the illegal trade in humans, to find ways to beat detection.  









Regulatory News

Licensing, manning regs for mariners aboard tow boats

The U.S. Coast Guard has issued an interim rule with new requirements for licensing mariners who operate towing vessels, whether inspected or uninspected.

The rule creates new licenses with levels of qualification and with enhanced training and operating experience, including practical demonstrations of skill; it also ensures that all towing vessels will be manned by officers holding licenses specifically authorizing their service.

Comments are encouraged and the rule could be altered in response to them. For questions on the rule, contact Lieutenant Commander Luke Harden, Office of Operating and Environmental Standards (G-MSO), 202-267-0229; e-mail

California ballast water exchange requirements

The state of California has implemented a new ballast water control and management program, effective January 1, 2000, in order to prevent introduction of foreign aquatic species into rivers, bays and coastal areas.

Vessels carrying ballast into California state waters after operating outside the Exclusive Economic Zone now must complete a series of requirements, including performing a mid-ocean ballast water exchange.

Ships are also required to allow the state Lands Commission to take samples of ballast water and sediment as well as other actions to certify that the requirements are being met. Ships must maintain a ballast water management plan and submit a fee to California’s Board of Equalization of $600 per vessel per voyage.

The new law also requires compliance with certain “good housekeeping” practices outlined by the state. These include the avoidance of uptake or discharge in or near marine sanctuaries, reserves, parks or coral reefs and minimizing or avoiding uptake near areas of infestation, sewage outfalls, dredging operations, areas with reduced tidal flushing, in darkness when bottom-dwelling organisms are active, and where propellers may stir up sediment.

Ballast tanks must be regularly cleaned to remove sediment and the sediment must be disposed of properly. Other requirements include minimizing discharge amounts, rinsing anchors and anchor chains, removing fouling organisms from hulls, pipes, etc., and disposing of any removed substance.







Marine Casualties

The following information is provided by the USCG Marine Safety Office Honolulu.

10/7/99 LAHAINA, MAUI.
A tender carrying 12 crewmembers from the cruise ship Statendam ran aground in the vicinity of Lahaina Harbor. No injuries were reported and the tender drifted free on its own. It was towed back to the Statendam for repairs.

A cylinder of anhydrous ammonia exploded onboard the fishing vessel Icy Point. Two crewmembers and one dock worker suffered exposure-related injuries. Eight other workers had to be decontaminated and sent to the hospital for evaluation.

While en route to Kahului, the barge Haleakala, towed by the tug Henry Sr., struck the fishing vessel Kai O’Hoku while it was fishing four miles north of Kahului Harbor. No injuries were reported and the fishing vessel sustained minor damage.

The barge Mauna Loa, which was being towed by the tug Kokua, collided with the fishing vessel Zuhio Maru No. 3 while maneuvering in the vicinity of Pier 32. The fishing vessel was moored. No injuries were reported, but the Zuhio Maru sustained damage to the port bow. 










(Editor’s note: The following essay, written by an anonymous 10-year-old, was submitted by a reader.)

Why I want to be a captain

I want to be a captain when I grow up because it’s a funny job and easy to do. Captains don’t need much school education, they just have to learn numbers so they can read the instruments. I guess they should be able to read maps so they won’t get lost.

Captains have to be brave so they won’t be scared if it’s foggy and they can’t see, or if the propeller falls off they should stay calm so they will know what to do. Captains have to have eyes to see through the clouds and they can’t be afraid of thunder or lightning because they are closer to them than we are. The salary that captains make is another thing that I like. They make more money than they can spend. This is because most people think that captaining a ship is dangerous, except captains, because they know how easy it is.
There isn’t much I don’t like, except girls like captains and all the girls want to marry captains, so they always have to chase them away so they won’t bother them. I hope that I don’t get seasick, because I get carsick and if I get seasick I could not be a captain and then I would have to go out to WORK!







Kraig M. Kennedy, executive vice president of McCabe Hamilton & Renny Co., Ltd., was named chairman of the Chamber of Commerce of Hawaii’s Maritime Committee. He succeeds Clint Taylor , manager of public affairs and business development for CSX Lines LLC (formerly Sea-Land Service).

Hawaiian Tug & Barge/Young Brothers has named Mark Cohen vice president maritime operations. He was previously the Southern California manager of operations for Foss Maritime, and has more than 20 years’ experience in the maritime industry.  Cohen assumes the position from Bill Chung who has held dual responsibilities as vice president for both maritime operations and  personnel & industrial relations. With added human resources responsibilities, Chung will focus on this latter position.

Victorialei “Nohea” Nakaahiki
, RP, a maritime/admiralty paralegal with Carlsmith Ball’s Honolulu office, was recognized as the 1999 Five Star Paralegal of the Year by Five Star Legal and Compliance Systems, Inc., a litigation support company based in Los Angeles. She is the first Hawaii honoree and was selected from more than 4,000 nominees nationwide. Earlier in 1999, Legal Assistant Today magazine recognized Nakaahiki as a “specialty star.” She has more than 11 years of paralegal experience.
Matson Navigation Company has promoted Capt. John W. Sullivan to director, vessel operations and offshore labor relations,  and Paul A. Johnescu to director, facilities and equipment engineering. Both are newly created positions. Sullivan will oversee all operations pertaining to the Matson fleet, including marine operations, vessel engineering, labor relations and marine personnel. Johnescu will oversee all engineering activities pertaining to Matson’s equipment and shoreside facilities, including mechanical engineering, electrical engineering, facilities and maintenance, and industrial engineering.

Matson also announced the early retirement of Ronald F. Briggs, general manager, engineering and fleet maintenance. Briggs joined the company in 1977. As a result of company restructuring, his position has been eliminated.

The Oceanic Institute has hired three research scientists to meet its expanding needs. Dr. Ian Forster has joined the institute as research scientist for the Aquatic Feeds and Nutrition Program, which includes feed formulation, nutrient requirements, ingredient evaluation and feed attractants. Previously he was research coordinator for Biozyme Systems in Vancouver, Canada. Dr. Charles Laidley was named reproductive physiologist in the Finfish Program, with an emphasis on technology for the spawning in captivity of foodfish and marine ornamental species. He previously was a professor at Pacific University. Oscar Henig was named site manager for the institute’s Kona facilities and also is responsible for Shrimp Program-related activities as a research associate. He worked at the Federal University of Ceara Marine Research Institute of Brazil. 







News Briefs

Matson rate increase

Matson Navigation Company announced a 3.9 percent rate increase that goes into effect on February 14. This follows a 1.75 percent fuel surcharge that was implemented last October due to higher fuel costs.

The rate increase will help offset rises in operating costs and support ongoing investments in containers and chassis, shoreside equipment and information technology, according to Matson President and CEO C. Bradley Mulholland.

Mulholland said recent company investments in its Hawaii service include $30 million in container equipment purchases in 1999 and 2000, $13 million in information technology, $13 million in fleet improvements and $1.3 million in terminal improvements at Matson’s Sand Island facility.

Sea-Land Service now ‘CSX Lines’

Sea-Land Service’s parent company, CSX Corporation, announced the re-naming of its domestic container shipping company late last year.  Sea-Land Service, Inc. is now CSX Lines, LLC.

The shipping company was created last March when Sea-Land Service, a business unit of CSX, reorganized into three separate businesses. In July, Sea-Land’s international business and some terminal assets were sold to A. P. Moller/Maersk Line.

CSX Corp. retains CSX Lines and a terminal company as separate subsidiaries of CSX.

CSX Lines operates a fleet of 16 vessels and 27,000 containers serving the domestic trade areas of Alaska, Guam, Hawaii and Puerto Rico. The company will remain headquartered in Charlotte, N.C., with 20 offices in the continental United States, Hawaii, Guam and Puerto Rico.

New Web site for Aloha Boat Days Committee

After the revival of Aloha Boat Days, the traditional welcome activities that greeted arriving cruise ship passengers at Aloha Tower in the early to mid-1900s, the Aloha Boat Days Committee has launched a Web site at

“The Web site provides a lot of useful information for people while they are visiting Hawaii and when they are planning their trips, but is not just for visitors,” says Greig Trowbridge, volunteer coordinator for Aloha Boat Days and creator of the site.

A schedule of ship arrivals and departures, links to other sites, and information about participating in the Boat Days activities are available at the new site.

Innovative shrimp study funded

Researchers from the Oceanic Institute (OI) received federal funding for an innovative research program designed to increase productivity in shrimp farming. The $130,000 National Research Initiative grant was awarded to Hawaii Pacific University, in partnership with OI, by the U.S. Department of Agriculture.

The grant will allow OI scientists to conduct a two-year study examining the sex-reversal in Pacific white shrimp to grow all-female stocks using economically viable methods, thereby increasing the efficiency and production yields of shrimp farms. Since female Pacific white shrimp grow more rapidly and are 10 to 20 percent larger at harvest, these shrimp offer excellent revenue potential to shrimp farmers.

With wild shrimp capture fisheries at maximum yield, increased harvests of farmed shrimp could decrease the United States’ $2.9 billion trade deficit in shrimp products.

Oceanic Institute has the world’s largest domesticated shrimp population for selective breeding and administers the United States Marine Shrimp Farming Program, a national consortium of six universities and laboratories.

Hawaii Pilots help homeless

The Hawaii Pilots Association shared the holiday spirit with those less fortunate by donating $10,000 to the River of Life Mission, a non-profit organization in Honolulu’s Chinatown that offers hot meals, sandwiches, a dry bunk and counseling services for the homeless or destitute. The organization is totally dependent upon charitable contributions to operate.






© 2002 Hawaii Ocean Industry