The 2024 Guide To Hawai‘i’s Shipping, Air And Transportation
Although an early 2024 completion date was originally anticipated, the new $555 million Kapalama Container Terminal at Honolulu Harbor is now expected to open in 2025.
The trucks lined up are carrying donated popup tiny homes being loaded to Matson ship Lurline in Long Beach for delivery to Maui. | Photo: courtesy of Matson
Expanding Services Statewide
Between September 2022 and September 2023, Hawai‘i saw a steep increase in imports to $288 million from $166 million, a 67.1% increase, according to The Observatory of Economic Complexity. Exports decreased over the same time period, by $25.1 million (-58.8%) to $17.6 million.
Young Brothers reports a slight increase in tonnage in 2023 compared to pre-pandemic levels in 2019. In addition to 12 weekly sailings, they introduced a new service line in April 2023 with their Kaholo barge, which has a carrying capacity of 500 cars and makes weekly port calls to Nāwiliwili, Kahului, and Hilo.
“We’re also growing our fleet by constructing two new barges that will enhance connectivity and reliability of service for our customers starting in late 2024,” says Nalani Say, Director of Terminal Operations, Young Brothers, LLC. “Containers — dry or refrigerated — represent the main commodity we move on our barges annually, though cars continue to account for a significant portion of our business. We expect the volume of vehicles shipped to remain steady in 2024 and hopefully grow as our Kaholo service continues to open opportunities for kama‘āina.”
Matson has also invested in new ships and terminal improvements to support its Hawai‘i service. Last year, it committed $1 billion to building three new ships that will serve the islands starting in 2026.
Harbor Developments
Although an early 2024 completion date was originally anticipated, the new $555 million Kapalama Container Terminal at Honolulu Harbor is now expected to open in 2025.
“When finished, Kapalama Container Terminal will provide a roadmap for transition of Hawai‘i’s commercial port infrastructure to clean energy, serving as the state’s most efficient operating terminal,” says George Pasha, IV, President and CEO, Pasha Hawaii.
The improvements will also open terminal space at Pier 41, paving the way for Young Brothers to redesign their terminal space and optimize cargo flow, according to Say.
On Hawai‘i Island, the Port of Kawaihae is also slated for an expansion. Last year, the U.S. Department of Transportation Maritime Administration granted $23.46 million for improvements. The grant will cover 70% of the $33.9 million project, with HDOT funding the balance with revenues from harbor user fees. The construction contract is estimated to be awarded in 2025, and the project is expected to be completed within two years.
“The grant will undoubtedly have a positive impact on a key entry point for grocers, retailers and tourism-related businesses who rely on fast and reliable transportation,” says Pasha.
“We deeply appreciate Senator Brian Schatz spearheading this critical work to improve the Port of Kawaihae, says Say. “We understand that funds will support repaving the port, providing an enhanced surface for our machines to operate on, and better lighting for safer operations.”
Young Brothers
During a keel-laying ceremony held in winter 2023 in Louisiana, Young Brothers leaders signed their names on a gray slab of steel, which will become the first piece of its newest barge, Nāulu.
This special ceremony marked the official start of the construction of Nāulu, which joins Kalohi as part of Young Brothers’ $25 million investment in growing its fleet to better serve its customers across the island chain. Both new barges will embark on their maiden voyages starting in winter 2024.
“These barges represent our commitment to improving reliability, connectivity and service to our island communities,” says Jay Ana, president of Young Brothers.
From left to right: Young Brothers leaders Chris Martin, Megan Rycraft, Lauren Imada and Nalani Say attend the keel laying ceremony for the company’s newest barge under construction, the Nāulu. | Photo: courtesy of Young Brothers
Nāulu, measuring 350 feet long, will be homeported in Kawaihae, while Kalohi is 286 feet long and designed to serve the rural communities and smaller harbors of Moloka‘i and Lāna‘i. Each barge offers more deck space and cargo capacity to meet rising demand, ballastable technology to match changing tidal conditions and more ramps— both of which allow for more efficient loading and unloading of cargo.
Team members chose Nāulu for a sea breeze and rain in Kawaihae, which, when translated, means the sudden rain shower that quickly passes. Meanwhile, the Kalohi Channel that links Lāna‘i and Moloka‘i inspired the name for the second barge, and the word lohi is short for ‘alohi, meaning sparkle or shine.
To learn more about Young Brothers, visit youngbrothershawaii.com, email info@htbyb.com or call (808) 543-9311.
Maui Wildfires’ Impact
Just as shipping operations and revenue began to stabilize to pre pandemic levels in 2023, “The wildfires had an immediate effect on the items that needed to be shipped with urgency to Maui, mirroring what occurred during the initial start of the pandemic in Hawai‘i,” Pasha says. “We experienced high volume in essential goods and saw a decrease in shipments related to the visitor industry such as rental cars and supplies for hotels and restaurants.”
Immediately following the fires, shipping companies worked closely with federal, state and county agencies, and nonprofits to prioritize disaster relief shipments.
“In all, we moved more than 125 containers designated for Maui relief and donated more than $90,000 in gratis shipments,” says Say. “We maximized cargo space on every barge that departed to Maui and continue to do so as we field and fulfill relief shipment requests daily.”
Pasha Hawaii implemented its Emergency Response Plan, prioritizing available vessel and neighbor island barge capacity for emergency rations, perishable and non-perishable food and beverage items, and medical supplies.
When Pasha Hawaii moves to the new Kapālama Container Terminal, Matson will expand into the area that Pasha will vacate.
“Our team worked around the clock, fulfilling customer requests to ship in essential goods, and we worked closely with government agencies and other humanitarian organizations to deliver much-needed supplies to Maui,” Pasha says. Now, “The unusually high volume of essential goods on our container ships has normalized as Maui’s needs transition from relief to recovery.”
Those needs are focusing on rebuilding, housing, and temporary classrooms.
Matson has also worked closely with emergency response agencies in the delivery of equipment and supplies to Maui. Those shipments have included large generators, 40-foot containers of bottled water for FEMA, and refrigerated containers containing perishable food and ice sent by the Hawaii Food Industry Association (HFIA).
Matson also transported a diesel generator to provide extra support for refrigerated containers in its Kahului Terminal, and 30 chassis trailers to support anticipated additional cargo volumes on Maui.
“So far, Matson has contributed close to $1 million in cargo transportation and logistics services to response efforts and we are committed to supporting Maui’s recovery for the long term,” says Len Isotoff, Senior Vice President, Pacific at Matson Navigation Company.
Isotoff says another big focus will be continued work toward achieving Matson’s climate goals of reducing fleet greenhouse gas emissions by 40% by 2030, and reaching net zero emissions by 2050.
“A key step in our strategy for reaching these goals is to adopt use of liquefied natural gas (LNG) as a lower carbon ‘bridge’ fuel while new alternative fuels and technologies are being developed.”
The company also expects to complete the LNG installation of a second Aloha Class ship to run on LNG, the re-engining of another vessel to run on LNG, and design work for three new LNG-ready Aloha Class ships that will go into service in 2026 and 2027.
Pasha
Pasha Hawaii is a third-generation, family-owned company dedicated to serving Hawai‘i with a full range of services and resources to support the transportation of cargo between the Hawaiian Islands and the Mainland. Pasha Hawaii operates a fleet of container ships and roll-on/roll-off vessels calling on multiple port terminals in Hawai‘i and California.
Since launching its first cargo vessel, MV Jean Anne, in Hawai‘i in 2005, Pasha Hawaii has continued to make major investments in its infrastructure. Most recently, the company introduced Hawai‘i’s first ‘Ohana Class container ships to operate on natural gas, setting the bar in environmental sustainability for future ship building. Both MV George III and MV Janet Marie were designed to surpass the International Maritime Organization (IMO) 2030 emission standards for ocean vessels and continue to operate at a higher standard and capacity than expected.
In addition to investing in its infrastructure, Pasha Hawaii also employs more than 400 locally based residents and supports the community through its Hui Hulilima (Helping Hands) employee community action team program, and in-kind and cash donations made to Hawai‘i’s non-profit ts throughout the year.
“Our family established Pasha Hawaii to make a difference in the lives of those who call Hawai‘i home, by ensuring Hawai‘i’s businesses have what they need to provide for their customers, while remaining good stewards of Hawai‘i’s natural resources,” said George Pasha, IV, president and CEO, Pasha Hawaii.
