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August - September 2002 Issue

Table of Contents

Ferry Tales
4 Pier 19 ferry terminal nears completion, but ferry service is in limbo.

Deepwater 5
Coast Guard to spend $11.04 billion on new ships, planes.

2002 Hawaii Commercial 6 Harbor Construction Update
An island-by-island survey of harbor construction and improvements.

Port Security 10 DOT-Harbors
Matson receive federal grants to enhance security measures.


Salutes Industry newsmakers

News Briefs News from NCL, Coast Guard Auxiliary, Matson


Soundings Unlock Passion, Purpose and Potential, By William Anonsen











Pier 19 terminal nears completion, but will the ferries come?

by Mele Pochereva

The Department of Transportation-Harbors Division expects to complete construction of its $4.1 million inter-island ferry terminal this December, but it is unlikely that any ferries will be calling at the facility any time soon. Julia Tsumoto, head of Statewide Transportation Planning (STP), said her office has had discussions with a potential inter-island ferry operator. The problem, however, is the availability of appropriate U.S-built vessels. The STP would like the ferry service to include roll on/roll off service for automobiles and trucks, but most of the ferries that are large enough to carry vehicles and cross Hawaii's rough channels are foreign-built, according to Tsumoto. A large up-front investment and considerable start-up time would be needed to build new vessels. The group that has been talking with the STP may seek a temporary waiver of the Jones Act, allowing it to use foreign-built ferries for a period of time until U.S.-built vessels are available. In the meantime, the 12,000-square-foot terminal, which will accommodate up to 1,700 people and will include space for ticketing, offices, waiting areas and baggage handling, will serve cruise ship passengers until the state finds a ferry operator. Several cruise ships are already scheduled to berth at Pier 19 in 2003 on days when piers 2 and 10/11 are not available. Intra-island ferry project in limbo Separate from the inter-island ferry project is the state's proposed intra-island ferry service between West Oahu and Honolulu Harbor. Following its year-long commuter ferry demonstration project with Pacific Marine in 2000, the state Department of Transportation concluded that an intra-island ferry service was desirable. "(The service) was well received by the public, but location of the terminals is important," Tsumoto said, adding that Iroquois Point in Pearl Harbor was preferred over Kalaeloa Barbers Point Harbor for the Leeward terminal site. Security issues at Pearl Harbor following last year's terrorist attacks, together with the Navy's recent selection of a developer for Ford Island have caused some setbacks in pursuing the ferry service. "We will need to work with the Navy and the new developer (to secure a terminal site at Iroquois Point)," Tsumoto said. A terminal site at piers 5/ 6 in Honolulu Harbor also must be negotiated with Aloha Tower Development Corporation, the state agency that oversees development of the Honolulu waterfront from piers 5-14. "It's do-able," Tsumoto says, "But until some of the pieces fall into place, we're in limbo."



































Coast Guard to spend $11.04 billion on new ships, planes

The U.S. Department of Transportation and U.S. Coast Guard announced on June 25 the award of a landmark $11.04 billion contract for a fleet of new ships and aircraft, plus improved command and control systems to meet the service's homeland security and other mission needs.

The contract also includes $5.91 billion for operating, maintenance and sustainment costs ­ bringing the total contract value to $16.95 billion.

The contract was awarded to Integrated Coast Guard Systems (ICGS), a joint venture established by Lockheed Martin and Northrop Grumman. Known as the "Deepwater Program," the ICGS award is the largest ever for the Coast Guard. It also is the first time the service has bundled procurement of several types of ships, aircraft and other equipment into an integrated procurement program.

The contract calls for the delivery of the first ships and planes ­ and upgrades to some existing vessels ­ within the next five years, and it may extend up to 30 years. Deepwater will involve the acquisition of up to 91 ships, 35 fixed-wing aircraft, 34 helicopters, 76 unmanned surveillance aircraft, and upgrade of 49 existing cutters and 93 helicopters, in addition to systems for communications, surveillance and command and control.

"As the leader in Maritime Homeland Defense, the Coast Guard must have the most capable ships, aircraft, sensors and communications technology available to protect our nation and carry out our many missions," stated Admiral Thomas H. Collins, U.S. Coast Guard Commandant. "The Deepwater Program will give us the necessary tools to create an effective, layered defense of our nation's maritime interests."

Of 39 similar navy and coast guard fleets surveyed around the world, the U.S. Coast Guard's vessel fleet is the 37th oldest. The Coast Guard's twelve 1960s era Hamilton class cutters are among the service's aging fleet slated for replacement under the Deepwater contract. Other existing ships that would be replaced include fourteen 1960s vintage 210-foot Reliance class and a variety of other ships, some dating back to World War II.

The Deepwater Program that led to the ICGS contract has been in development for five years. The contract does not include smaller rescue and patrol boats, buoy tenders and workboats, icebreakers or shore side facilities. More information is available online at






















2002 Hawaii Commercial Harbor Construction Update

by Mele Pochereva

Eight major construction projects worth more than $48 million have been ­ or will be ­ completed at Hawaii's commercial harbors this year, according to the state Department of Transportation-Harbors Division. Another $10.7 million worth of projects are in the design or bidding stages, and are expected to be completed within the next three years.

Construction has been deferred on two other major projects with estimated costs totaling $51 million.

Among the projects nearing completion are the state's $4.1 million ferry terminal at Pier 19 (see story page 4), the $14.57 million commercial fishing village at piers 36-38, construction of a new $16.5 million pier and apron at Kalaeloa Barbers Point Harbor and the extension of Kahului Harbor's Pier 1C to accommodate multiple cruise ships, an $8.6 million project.

At Honolulu Harbor, construction of a new cruise ship terminal at Pier 2 and container yard strengthening at piers 51C to 53 are in the design phase, but construction has been deferred.

This construction update, provided by the Harbors Division, summarizes the major projects that are underway at commercial harbors statewide.


Honolulu Harbor


This project involves strengthening the pavement on approximately 30 acres, incidental additional work involving replacement of light poles, waterlines and fire hydrants for approximately 54 acres of the container yard.

Status: Design phase Estimated Cost: $31,000,000 Estimated Completion: Construction is deferred.


This project involves the demolition of a portion of the Pier 19 shed and restrooms and the construction of a new ferry terminal for passengers within the footprint of the existing pier shed.

The terminal, which will be primarily used as a ferry terminal but can also be used as a cruise ship terminal or multiuse facility, is capable of future expansion as additional space requirements arise. The terminal will include areas for ticketing, office space, restrooms, passenger waiting areas and baggage handling areas, as well as utility rooms and will cover approximately 16,800 square feet. Utilities will be installed including water, drainage, fire, electricity and telephone systems. Other site improvements include parking lot striping and regulatory signage.

Status: Under construction Cost Estimate: $4,100,000. Estimated Completion: December 2002


This project involves construction of a 52,000-square-foot, full service cruise ship terminal and multiuse facility to accommodate increased cruise ship demand. It will be capable of accommodating one large (over 3,500 passengers) or two smaller cruise ships. Removable partitions will divide the terminal into two smaller terminals when two ships visit. Work includes construction of an interior terminal within the existing pier shed, a second level concourse with gangways, ticket counters, office spaces, customs area and restrooms. New utilities will be installed including sewer drainage, water, fire, electricity, and telephone systems. Also, included in the design are baggage areas, storage spaces, roadway parking lots and staging area improvements.

Status: Design phase Estimated Cost: $20,000,000 Estimated Completion: Construction deferred


Construction of the pier, site improvements, and multi-user building are substantially completed. Completion of extra work pending design of security gates and safety rail and installation of telephone service by Verizon for activation of the fire alarm system.

Status: Under construction Cost: $14,570,000 Estimated Completion: October 2002


Demolition of three bulk storage tanks used for molasses and aqua-ammonia. Work also includes the removal of pump house and piping systems.

Status: Postponed Cost: $400,000 Estimated Completion: To be determined


This project involves dredging of approximately 1,600 cubic yards of spoils from an area approx. 100' wide by 250' long, to a depth of minus 40 feet MLLW, on the Ewa end of Pier 51A. Disposal of the dredged spoils is planned for an approved upland site.

Status: Bidding/Award Estimated Cost: $ 575,000 Estimated Completion: September 2003


The project involves the recommendation, design and construction of methane mitigation systems for the Pier 36-38 area at Honolulu Harbor.

Status: Design Phase Estimated Construction Cost: $700,000 Estimated Completion: August 2003


Installation of a video monitoring system at various locations within the commercial harbors on Oahu.

Status: Bidding/Award Estimated Cost: $380,000 Estimated Completion: February 2003


The proposed project involves clearing, widening and concrete lining two existing drainage ditches, and constructing new and improved drainage outfall structures for runoff from the Keehi Industrial area and the upland Pahounui subdivision.

Status: Design Estimated Cost: $2,300,000 Estimated Completion: March 2005

Kewalo Basin


Demolition of existing structures within the former GRG Enterprise site near Kewalo Basin. Demolition is planned for above-grade portions only.

Status: Bidding/Award Estimated Cost: $244,000 Estimated Completion: October 2003

Kalaeloa Barbers Point Harbor


Construction of a new 800-foot pier and apron, with utilities and small backup yard have been completed. The remaining work involves extra work to install guardrails and barbed wire on the chain link fence.

Status: Under construction Cost: $16,500,000 Estimated Completion: September 2002


Kahului Harbor


This project includes reconstruction of portions of the Pier 3 container yard and the relocation of an existing waterline. The project also includes the replacement of the Second Street bridge over the county drainage ditch, which provides access to the newly acquired 8.2-acre yard on the Puunene side of the harbor. This will permit movement of containers and container-handling equipment into the newly acquired area, which was restricted by the load capacity of the existing bridge.

Status: Bidding/Award Estimated Cost: $3,000,000 Estimated completion: August 2003


The pier will be extended approximately 300 feet to facilitate the operation of cargo handling equipment and to accommodate multiple cruise ships.

Status: Under construction Cost: $8,600,000 Estimated Completion: December 2002


Hilo Harbor


The project involves replacing galbestos siding and roofing on the Pier 1 Shed, and modifying necessary utilities including reefer outlets, fire sprinkler lines and adjacent yard lighting.

Status: Bidding/award. Estimated Cost: $3,500,000 Estimated Completion: December 2003


Pier 3 will be extended with breasting dolphins and connecting catwalks to enable the berthing of cruise ships up to 850 feet in length. Completion of this project will enable Hilo Harbor to accommodate two large cruise ships concurrently. Additional bollards, area lighting, pay phones, and fendering systems are included. A separate study of the cruise market is being undertaken to assess current and future infrastructure needs for this industry.

Status: Design phase Estimated Cost: To be determined Estimated Completion: Reassessing project schedule


Approximately 6.4 acres was graded and paved using an advanced type of stone matrix asphalt being used for the first time by DOT Harbors. All work is substantially completed.

Status: Under construction Cost: $1,100,000 Estimated Completion: August 2002


The existing sugar silos together with appurtenances and the sugar transfer conveyor system have been demolished and removed. All work is substantially completed. Extra work/paving is pending.

Status: In progress Cost: $1,600,000 Estimated Completion: July 2002


Nawiliwili Harbor


An extension to the Pier 2 berthing area is being proposed to accommodate large cruise ship vessel berthing. Demolition of an existing concrete lay berth and dredging, expansion of the Pier 2 comfort station and telephone banks for Piers 1 and 2, and associated site work is also included. A separate study of the cruise market is being undertaken to assess current and future infrastructure needs for this industry.Status: Design phase Estimated Cost: To be determined Estimated Completion: Reassessing project schedule



Bullrails will be installed at piers statewide (Honolulu, Kalaeloa Barbers Point, Kaunakakai, Kaumalapau, Hilo, Kawaihae, Nawiliwili, and Port Allen harbors) in accordance with an agreement made between the Department of Transportation- Harbors Division and the Occupational Safety and Health Administration of the federal government. The project is being implemented by four separate construction contracts. The scope of work includes site work, construction of fixed bullrails, fabrication and installation of removable bullrails, painting, striping and other related work. Some work has been completed under the harbor maintenance budget.

Status: Bidding/Award Estimated Cost: $1,600,000 Estimated Completion: March 2003



















DOT Harbors, Matson Receive Port Security Grants

by Mele Pochereva

Federal grants totaling $92.3 million were awarded recently to 51 ports throughout the nation to enhance the security of ports and other facilities. Two Hawaii entities, the Department of Transportation-Harbors Division and Matson Navigation Company, received $650,000 and $125,000, respectively.

The grant program, administered by the new Transportation Security Administration (TSA), is part of the U.S. Department of Transportation's ongoing efforts to enhance the security of ports and other facilities, post 9/11. TSA, along with the Maritime Administration and the U.S. Coast Guard reviewed project applications.

DOT-Harbors will use the funds for three projects intended for improving and enhancing security measures at Honolulu Harbor's cruise ship berths and passenger terminals located at Piers 10 and 11, and Pier 2.

Improvements include installing additional physical barriers and video monitoring capabilities in and around these areas.

The Harbors Division's Harbors Security Committee, a group comprising Harbors Division personnel, hasbeen managing and overseeing thegrant application process. Matson will use its grantfunds to assess container inspection technology at its Sand Island terminal. The company will work with outside consultants to determine what enhancements Matson can make to the present security precautions it has in place.

"Although security at our terminal has been stepped up significantly since September 11 through an employee ID program and the installation of employee-only turnstiles, we plan to do even more to improve security," said Gary Moniz, Matson's facilities manager. "Specifically, this study will focus on how we can be more cautious when handling containers."

The study is expected to take six months and will examine ways to enhance the existing "TAG" program that identifies the contents of containers, along with ways to further educate terminal employees as to how to recognize and inspect containers that may contain hazardous materials or explosives.

"Protecting seaports and port facilities against the threat of terrorism is imperative," stated U.S. Secretary of Transportation Norman Y. Mineta when the grant awards were announced in mid-June. "The terrorist attacks have resulted in a renewed focus on the security of our transportation systems."

Immediately following the terrorist attacks, the U.S. Coast Guard enhanced security in the nation's territorial waters by tracking high interest vessels and requiring the submission of key information on people, cargo and vessels to ensure they do not pose a security risk to the United States. Additionally, the Coast Guard, in coordination with state and local agencies, has greatly increased its presence in the protection of critical bridges, port facilities and other infrastructure adjacent to waterways.

When necessary, it also has escorted vessels containing high risk cargo and those traveling through security sensitive areas.














Hawaii Ocean Safety Team (HOST) general membership meeting 2 pm. HCC Marine Education and Training Center, Sand Island Access Road. Information:

August 19-20

Transportation of Hazardous Material Training Course Two-day course offered by Marine Cargo Surveys of Hawaii for National Cargo Bureau, Inc. Location TBA. Fee. Contact: (808)836-7799 or email

September 23-24

Transportation of Hazardous Material Training Course Two-day course offered by Marine Cargo Surveys of Hawaii for National Cargo Bureau, Inc. Location TBA. Fee. Contact: (808)836-7799 or email

October 10

Hawaii Ocean Safety Team (HOST) general membership meeting 2 pm. HCC Marine Education and Training Center, Sand Island Access Road. Information:

November 14-16

Fish ExpoWorkboat Northwest Conference and marketplace for fishermen workboat owners, commercial vessel operators and seafood processors. Washington State Convention & Trade Center, Seattle. Information: 1-800-368-7932 or

December 4-6

International WorkBoat Show Leading commercial marine trade show and conference. Ernest N. Morial Convention Center, New Orleans. Information: 1-800-368-7932 or

To have your meeting or event listed, please send information to the editor at least four weeks prior to publication.










News Briefs

NCL adds Wind to Hawaii cruise market Norwegian Cruise Lines will add a second cruise ship to its Hawaii service for eight months of the year, augmenting the year-round inter-island cruise service the company inaugurated last December. Beginning September 27, the 1,748-passenger Norwegian Wind will offer 10- and 11-day inter-island cruises with calls at four islands and a visit to Fanning Island in the Republic of Kiribati. The service will run until mid-April, when the ship returns to Alaska for the summer months. The Wind's Hawaii itinerary includes stops at both Hilo and Kailua-Kona on the Big Island, and its 11-day itinerary includes an overnight call at Lahaina, Maui, with two full days in port. Sister ship Norwegian Star, which offers 7-day inter-island cruises year-round, makes only one stop on the Big Island, at Hilo, and has no overnight calls. Colin Veitch, NCL president and CEO estimates that the Wind will add $60 million to Hawaii's economy each year.

Coast Guard Auxiliary celebrates 63rd birthday June 23rd marked the 63rd anniversary of the Coast Guard Auxiliary. Following the events of Sept. 11, the Auxiliary's thirty-five thousand members set the nation's standard for volunteerism and patriotism. In the first six months after Sept. 11, the Auxiliary volunteered over 250,000 hours, conducting multi-mission harbor safety patrols, providing administrative support and filling in as needed for search and rescue duties. Last year, Auxiliarists saved 482 lives and assisted 11,351 others. They also conducted 113,048 vessel safety checks and 1,372 commercial fishing vessel safety exams. Auxiliarists spent over 8,800 hours in the air, more than 37,000 hours on the water and completed over 69,300 hours in the classroom. The Auxiliary, formed by an act of Congress in 1939, has the responsibility of supporting the Coast Guard and recreational safe boating. Originally, the volunteers were known as the Coast Guard Reserves, until the start of World War II when they were renamed the Coast Guard Auxiliary.

Smithsonian to feature Matson exhibit Matson Navigation Company, which celebrates its 120th anniversary this year, will be featured in a new permanent exhibit that opens at the Smithsonian's National Museum of American History in late 2003. The new "America on the Move" exhibit will explore the importance of transportation in shaping America. Matson's history-making role in the container revolution will be featured in a section entitled "Transforming the Waterfront." The exhibition also will address the impact of containerization on West Coast waterfront operations, including the historic Mechanization and Modernization Agreement of 1960. Humpback advisory council seeks applicants Hawaiian Islands Humpback Whale National Marine Sanctuary is seeking applicants for nine Sanctuary Advisory Council seats. The seats available are for non-governmental members, including business/commerce, citizen-at-large, commercial shipping, conservation, fishing, Native Hawaiian, ocean recreation, tourism and whale watching positions. Council member application packages are available by contacting Amy Glester at (808)397-2655 or by email at Applications also are available online at


















Capt. Timothy Skuby has relieved Capt. Gilbert Kanazawa as commanding officer of USCG Marine Safety Office Honolulu. Skuby, a 23-year veteran, arrived at MSO Honolulu from Coast Guard Headquarters where he was the Budget and Resources Division Chief in the Office of the Assistant Commandant for Marine Safety, Security & Environmental Protection. Kanazawa, the commanding officer since 1999, has retired in Kaneohe after 26 years of service.

Capt. Patrick H. Stadt is the new commander of the Coast Guard Cutter Rush, a 378-foot-long high endurance cutter homeported in Honolulu. Formerly the commanding officer of Project Resident Office, Stadt succeeds Capt. Paul F. Zukunft, who transferred to the 14th Coast Guard District in Honolulu to be the chief of operations. Along with a number of shore assignments, Stadt has served aboard the Coast Guard Cutters Midgett, Sherman, and Gallatin.

The National Sea Grant Office has awarded the prestigious Knauss Fellowship to Malia Ana Rivera, a native of Kaneohe and a graduate of the University of Hawaii. Rivera is presently a doctoral candidate at the University of California, Berkeley, and an analytical research specialist at the Hawai'i Institute of Marine Biology on Moku-o-Lo'e.

At Matson Navigation Company, several senior positions have been realigned: W. Allen Doane, president and CEO of parent company Alexander & Baldwin, was appointed chairman of Matson's board. C. Bradley Mulholland, previously president and CEO of Matson, was appointed vice chairman of the board, responsible for the construction of Matson's two new container vessels as well as continuing involvement in government relations activities. He reports to Doane. James S. Andrasick, executive vice president and chief financial officer of A&B, was given additional duties as president and CEO of Matson, on an interim basis. Paul E. Stevens was promoted to executive vice president. He previously was senior vice president (ocean services.) Raymond L. Smith, chief operating officer, is no longer with the company.

John Mullen & Co. promoted Neal Seamon to director of maritime claims. Previously the senior casualty adjuster for the company, Seamon is the publisher of Personal Injury Judgments Hawaii, a jury verdict publication that includes Jones Act and unseaworthiness judgments.

Getting it Straight

Due to proofreading errors, the 2002 Hawaii Port Directory included incorrect or incomplete information. The administrator for the Division of Boating and Ocean Recreation (DOBOR) should be W. Mason Young. DOBOR's Web site is The complete address for the Dept. of Transportation Maui District Office is 103 Ala Luina St., Kahului, Hawaii 96732. Phone: 873-3350; fax: 873-3355. Scott Cunningham is the Maui District manager. The name of Kalaeloa Barbers Point Harbor was incomplete on the harbor map. Also, the adjacent marina should be Ko Olina Marina.


Ignite passion, purpose and potential to unlock the seeds of greatness

by William Anonsen

Do you envision a future where you can follow your passion, fulfill your purpose and maximize your potential? I believe that everyone's calling is great, and by immersing ourselves in the pursuits of that passion and purpose, we enrich our lives and the lives of our island community. Professional organizations are made up of individuals who share a common interest in the pursuit of the ambitions that represent and assimilate the passion for their chosen profession or area of interest. The Propeller Club of the United States ­ Port of Honolulu is just such an organization, a grassroots group with the primary purpose of educating our policy makers and the public about the importance of all waterborne commerce ­ and the critical contributing role our maritime services perform in our daily lives. The Propeller Club's Port of Honolulu chapter has served this purpose for Hawaii's maritime community very well since it was chartered on August 15, 1939. Its members are dedicated to the enhancement and well being of all the various interests of Hawaii's maritime community on a local, national and international basis. In the last two or three years, the organization suspended its customary activities due to a lack of participation. This was understandable, as many of us have been fully engaged in our individual business and personal obligations. The many facets of our maritime community have expressed a strong desire to re-establish the Propeller Club; many indicated this is a period when the mission of the organization is gravely needed. From the beginnings of the Port of Honolulu's club activities to the turn of this century, the port has played a major role in bringing maritime professionals together to aggressively promote Hawaii's maritime industry through programs and partnerships with other community and civic organizations. The Propeller Club is dedicated to the enhancement and promotion of our maritime services and proactive, professional dialogue between the various Hawaii businesses and professions connected to the maritime industry. Like most successful organizations, the Propeller Club ­ Port of Honolulu is a member-driven organization that relies on the participation and support of its members to engage in community based services. With the kokua of our members we will continue to promote the aloha spirit of friendship and our shared common purpose of encouraging the development of global trade with our shipping partners in the Pacific Basin. The Port of Honolulu's community outreach program is supported by club members volunteering their time and effort to support numerous programs that benefit our island community.

Let's help set a course for our youth One of the most successful programs on a national level has been the Adopt-a-Ship plan, jointly sponsored by the Propeller Club and the U.S. Maritime Administration since the 1930s. The Propeller Club administers the plan, which provides the opportunity for elementary school classes (5th- 8th graders) to "adopt" a ship of the American Merchant Marine and exchange correspondence with the crew. The primary purpose is to teach our youth, the citizens of tomorrow, the need for an educated merchant marine for domestic and foreign shipping. Maritime educational awareness program Club members make themselves available for speeches and presentations to civic organizations, educational institutions and other non-profit groups. The Port of Honolulu's speaker bureau comprises maritime professionals who represent the many facets of the marine industry. Speakers are provided, when available, at no charge.

Harbor tours and industry briefings The Propeller Club - Port of Honolulu occasionally conducts harbor tours and briefings for Hawaii's policy makers, business/civic leaders and community organizations. Guests receive a briefing on the Port of Honolulu's activities and an update on Hawaii's maritime transportation industry, current issues and future requirements.

Hawaii maritime conferences Throughout the year, our club co-hosts and sponsors interactive maritime conferences, developed and presented by public and private enterprises and institutions. They provide a forum for discussion and an exchange of information between government regulators, port officials, vessel and terminal operations and the numerous marine service providers who share their expertise, new industry advances and current initiatives that are rapidly changing the marine industry. Working together we can continue the objectives that have established the Propeller Club as one of the premier maritime service clubs. If you are interested in joining Propeller Club of the United States ­ Port of Honolulu or would like additional information, check the club's web site ( to find out how you can help to support the club's mission and its various community outreach programs.

William Anonsen is 1st vice president/incoming president of the Propeller Club ­ Port of Honolulu.

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