Harbors KAPALAMA CONTAINER TERMINAL continued from page 1
“Just in time” shipping reduced the need for retailers to have individual storage facilities and placed the burden of timely delivery on the cargo carriers transforming the piers into the State’s “warehouses,” further complicating the orchestration of cargo movements. Almost ten years after the findings of the 2020 Honolulu Master Plan, the Hawaii Harbor Users Group, comprised of 11 members, was formed to ensure the economic security of the State and the maritime industry. With HHUG’s support, findings and the presentation of the Mercator Transport Group report (2006), a blue print for the development of the Kapalama Container Terminal was created and embodied in Act 200 in 2008. During 2009 the Harbors Division adopted rules to increase its tariffs to fund the Act 200 capital improvements and support the sale of $160 million in revenue bonds. Status of Kapalama Container Terminal Phase I of the Kapalama Container Terminal will be completed during November 2020 due to the work efforts of Dung Vo, Harbor Modernization Development Manager and William Makanui, Project Engineer, and the work efforts of the Harbors fiscal office by paying the contractors on a timely basis and the work efforts to manage the Harbors cash by the Harbor Modernization
project funding.
Development Treasurer. The final stage of the Phase I development culminates a true team effort, thanks to the staff within the Engineering Branch to ensure all the planning, environmental reviews, and design work was done properly to meet the needs of our Operations team. And behind the scenes, a critical part of the whole project development process is the
But how are these projects financed and move forward to break ground? Like the Airports and the Highways Division, the smallest of the three DOT divisions earns its money without general fund support. Capital Improvement Projects receive funding from tariffs on containers, passengers, pipeline fees, land rent, and the sales of bonds. To complete the Kapalama Container Terminal and $350 million needed to award the construction contract, Kendrick Au, Harbor Modernization Development Treasurer, instilled financial discipline as the Fiscal Officer and Administrative Services Officer, as he developed and proposed Harbor fee increases since 2015. The increases in revenue provided the financial basis for the Harbors Management team as well as the team of legal and financial advisors to lead a successful bond sale. The additional sale provided an
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