RECOMMENDATIONS THROUGH THE YEAR 2020
Discussion of Maritime Activities, Recommendations and Alternatives
The discussions, recommendations and alternatives of this chapter are organized by the major facility improvements suggested, discussed and agreed upon by the members of the Hawaii Commercial Harbors 2020 Master Plan's task force. The facilities that satisfy these recommendations will be designed and constructed when the projects' financial and environmental concerns are properly addressed.
A. OVERSEAS CONTAINER CARGO TERMINAL(S)
DISCUSSION
Hawaii depends almost entirely on the ocean shipping industry to transport its essential commodities (food, clothing, fuel, building materials, automobiles, etc.) and local products (pineapple, sugar, molasses, livestock, diversified agriculture, etc.) to and from the neighbor islands, the mainland, and various foreign countries. Developed island economies are typically dependent on ocean shipping for their sustenance. The importance of cargo shipping to our State cannot be overstated. This Master Plan therefore begins with the facilities and services required by the overseas cargo carriers. While the economic value of commercial fishing, ocean mining, passenger cruises, excursions and ferries, etc. cannot be denied, commercial harbor planning must first address Hawaii's life-sustaining cargo operations. The requirements of the ocean cargo carriers must be given priority.
Based on the throughput of containers (counted in 20-foot equivalent units or TEUs) the American Association of Port Authorities ranked Honolulu Harbor as the tenth busiest of all 75 North American container ports in 1995. Yet, in a selected study of thirteen of these comparable ports (SMS Research, 1996), Honolulu Harbor's cargo acreage places it in the lower 31 percent of this range. This discrepancy between the large number of containers handled and the limited cargo acreage available suggests that Honolulu Harbor's cargo handling efficiencies are constrained by a lack of space.
A recent evolution in the method of retail inventory management further exacerbates the cargo movement problem. Supplies are now ordered and scheduled to arrive "just in time" to replenish depleted stocks. This practice reduces the need for individual storage facilities, but places the burden of timely delivery on the cargo carriers. The commercial harbor cargo yards, therefore, have been transformed into the State's "warehouses," further complicating the orchestration of cargo movements. "Just in time" shipping also limits the potential for direct overseas cargo shipments to the neighbor islands. Container vessels have such large capacities that it would take weeks to fill a ship with a neighbor island's orders and justify a direct shipment. Merchants (especially grocers) will not tolerate such infrequent deliveries of their merchandise.
An integral step in the development of a valid 2020 plan was the substantiation of the cargo carriers' facility requirements. This was accomplished by projecting cargo volumes through the year 2020 and conceptualizing the facilities necessary to support this amount of cargo. Projections of future cargo volumes, however, proved a strenuous task. In examinations of past cargo records, it was discovered that cargo shipments were recorded in various modes (short tons, revenue tons, TEUs, etc.), separated into multitudinous categories (liquid propane, crude oil, jet fuel, diesel, coal, clinkers, sand, breakbulk, general cargo, cars, livestock, etc.). The volume of cargo alone made this one of the more time consuming tasks of this planning effort. Once the past cargo records were organized and documented in a consistent format, correlating socio-economic projections were applied to establish a valid 2020 prognosis of the volume of cargo expected in Hawaii's commercial harbors. The projected volume of cargo was then applied to commonly used port planning formulae to determine the space required to manage this amount of cargo. The estimates of space required by the year 2020 are considerably greater than the land currently available for port operations in Hilo. Maritime property on the "Big Island" is a valuable and scarce commodity, and cargo carriers have had to make do with the little that is available. This plan attempts to adjust the space requirements for the projected 2020 volume of cargo, acknowledging that cargo carriers must continue to make the best use of allotted space, devise appropriate operational schemes and attempt to deal with the inefficiencies associated with this lack of space.
The need for services that support shipping is largely determined by the demand for shipping, and the demand for shipping is dictated by the local economy. Current projections for Hawaii's economy in the year 2020 dictate the development of significant, consistently well-planned commercial harbor facilities. Otherwise, competition for scarce resources, such as berthing and backup lands for cargo handling, can slow industry growth, cause congestion in the harbor and on the roadways, and raise the costs of merchandise.
RECOMMENDATIONS
In 1986, 25,711 TEUs of overseas containers moved through Hawaii's port system. The volume of container shipments grew to 40,853 TEUs by 1991, and reached 47,340 TEUs in 1996. The overseas container volume is projected to top 110,300 TEUs by the year 2020. When computed into acreage requirements, the 110,300 TEUs amount to approximately 41 acres of overseas container cargo yards. To satisfy these requirements, 2020 overseas container operations are recommended at:

Pier 1, Hilo Harbor with 20 acres of cargo yard;
Pier 3, Kawaihae Harbor with 21 acres of cargo yard;
A cargo expansion area for growth beyond the year 2020 is located adjacent to the overseas container yard at Kawaihae Harbor.
B. INTER-ISLAND CARGO TERMINAL(S)
DISCUSSION
This classification is used for inter-island cargo as well as for neobulk commodities moving in large, unitized loads. Although inter-island and neobulk cargoes are increasingly shipped in containers, certain commodities such as newsprint, lumber, steel, construction components, heavy equipment and vehicles can be efficiently loaded and transported without containerization, and continue to move in unitized form.
The inter-island system of cargo distribution is the principal means by which neighbor island communities receive and export their cargo. This system has Honolulu Harbor as its hub or point of distribution and consolidation. Because of Oahu's large population and the corresponding high demand for goods, container vessels are used to reduce the costs of shipping to Honolulu. In Honolulu Harbor, containers are off-loaded by destination. Oahu's cargo is loaded onto trucks for delivery. Cargo destined for the neighbor islands is transferred onto barges for shipment. Until the neighbor islands' demand for commerce or volumes of exports qualify for similar direct overseas shipments, this system of distribution will remain an integral part of the neighbor island economy.
Like the overseas cargo trade, operating and capital costs will influence the trend of more container use in the inter-island trade. Also similar to the overseas trade, inter-island shipping's operational and capital investment costs are leading to larger vessels and larger capacity handling equipment. The growth of diversified agriculture and forestry products could lead to more inter-island cargo traffic in terms of frequency as well as tonnage, due to the time sensitiveness of agricultural products. Growth of the neighbor islands' populations, tourist industries, construction activities and general economies will affect inter-island shipping in a similar manner. Facility improvement plans for inter-island operations consider these trends.
RECOMMENDATIONS
The 2020 projections for general cargo total 793,278 short tons, which when computed into acreage requirements, result in 43 acres of inter-island cargo yard. To satisfy this requirement, inter-island cargo terminals are recommended at:

Pier 4, Hilo Harbor with 21 acres of cargo yard;
Piers 5 and 6, Kawaihae Harbor with 22 acres of cargo yard;

A cargo expansion area for growth beyond the year 2020 is located adjacent to the inter-island cargo yard at Kawaihae Harbor.
C. BERTHS
DISCUSSION
Berthing is becoming more of a concern as the number of calls to each harbor continue to increase while the number of berths remain static. The various cargo carriers, cruise ship operators, commercial fishermen, ocean research and military cargo operations share existing berths. Even with the new berths recommended for construction, vessels will continue to share commercial harbor facilities.
RECOMMENDATIONS*
To accommodate the wide variety of commercial harbor operations, the following are recommended:

Container berths at Pier 1, Hilo Harbor and Pier 3, Kawaihae Harbor;
Inter-island cargo berths at Pier 4, Hilo Harbor and Piers 5 and 6, Kawaihae Harbor.
The RO/RO berth at Hilo Harbor is planned at the junction of Piers 4 and 5. The junction of Piers 3 and 4 is an alternative RO/RO berth. Kawaihae Harbor's Pier 6 is its RO/RO berth;

Dry bulk cargo berths at Pier 1, Hilo Harbor and Piers 1,2 and 5, Kawaihae Harbor;
Liquid bulk cargo berths at Pier 3, Hilo Harbor and Piers 2 and 5, Kawaihae Harbor;
Commercial fishing berths are provided at available piers and at Radio Bay, Hilo Harbor;
Passenger vessel (ferry, cruise ship, etc.) berths at Piers 1 and 5, Hilo Harbor and Pier 4, Kawaihae Harbor. Alternate berthing sites for passenger vessels in Hilo Harbor are at an extended Pier 2, a new pier at the northern end of Pier 1, and a new pier at Coconut Island;
Military cargo (including Coast Guard) berths at the existing RO/RO berth and Radio Bay, Hilo Harbor, and the LST/LSV ramp and Pier 7, Kawaihae Harbor;
Research vessel berths at Pier 6 and Radio Bay, Hilo Harbor and Pier 4, Kawaihae Harbor.
* Other than at Kewalo Basin/Annex, berthing within the State's commercial harbors is generally not permanently assigned. Vessels entering port are directed to their berths according to the shoreside facilities required and the availability of such berths.
The recommended berth allocations contained in this chapter serve as an informal guide for vessel placement. More importantly, these allocations indicate the facilities required to accommodate the kinds and numbers of vessels anticipated by the year 2020.
D. ROADWAYS
DISCUSSION
Roadways are an integral component of the commercial harbor infrastructure. Sufficiently-sized entrances/exits to cargo yards, convenient access to major thoroughfares, and the reduction or elimination of traffic congestion are all necessary for efficient cargo movement between ship and store.
RECOMMENDATIONS
The 2020 Master Plan recommends:

Five access roads at Hilo Harbor;
The eastern access road may also serve as the Corps of Engineers' access to the breakwater;
The improvement of all supporting roadways and intersections, including Kalanianaole Street, Kanoelehua Street, Silva Street and the Kawaihae Bypass Road;
Because Kawaihae Harbor lands are directly adjacent to Kawaihae Road, access roads will be cognizant of local traffic constraints and include the proper safety measures.
E. PASSENGER TERMINAL(S)
DISCUSSION
In anticipation of a "boom" in the number of ocean cruise passengers, the international cruise industry is building a record number of new passenger ships. The domestic cruise industry, reportedly experiencing saturation of the Caribbean market and the Alaskan market's approach of its limit, is reaching out to new markets. As these cruise lines investigate new destinations, local ship agents are receiving increased inquiries for new and additional cruise ship calls. Hawaii's inter-island cruise line, acting on internal market studies and near-capacity bookings of its existing ship, is actively pursuing the acquisition of a second vessel and the construction of another ship by an American shipyard. Recognizing the potential growth of this industry, the Chamber of Commerce of Hawaii has agreed to promote Hawaii as a destination for both foreign and domestic cruises.
The State of Hawaii is actively pursuing inter- and intra-island ferry operations to provide alternatives to existing commuter services and to supplement the economy.
RECOMMENDATIONS
While Hawaii offers a prime location for ferry operations and an excellent destination for cruise passengers, passenger terminal facilities are largely lacking. This discrepancy is addressed by the recommendation to construct a primary passenger terminal at Pier 5, Hilo Harbor and an alternate terminal at Pier 4, Kawaihae Harbor.
Alternate sites for Hilo Harbor's passenger terminal are at Pier 1, Pier 2 and Coconut Island.
F. NAVIGATIONAL IMPROVEMENTS
DISCUSSION
Harbor surge, the size and depth of the harbor turning basins, and the configuration of the harbor channels were the navigational concerns stated by the task force members. The Harbors Division will coordinate the efforts of the U.S. Army Corps of Engineers to remedy the problems.
RECOMMENDATIONS
The following alterations are recommended to ease the harbor's navigational problems.

Wave absorbers under Pier 1, Hilo Harbor to attenuate harbor surge;
Dredging the area between Piers 3, 4 and 5, Hilo Harbor to a depth of 35 feet;
Modifying the configuration or boundaries of Hilo Harbor's turning basin to permit construction or extensions of piers.
Construction of jetties to attenuate harbor surge at Kawaihae Harbor;
Dredging Kawaihae Harbor's turning basin to a depth of 40 feet.

G. DRY BULK CARGO TERMINAL(S)
DISCUSSION
Dry bulk cargo includes cement, scrap metal, coal and forestry products, and constitutes a significant percentage of the island's total cargo tonnage. Cement and concrete products are the construction industry's "building blocks." Scrap metal recycling operations remove unsightly abandoned vehicles. Forestry products may replace sugar as the island's primary export commodity.
RECOMMENDATIONS

Forestry products (veneer) require an acre of cargo yard at Hilo Harbor and six acres (wood chip operations) at Kawaihae Harbor;
Bulk cement operations will occupy about an acre of Kawaihae Harbor lands;
Scrap metal operations project a need for two acres of cargo yard at Kawaihae Harbor.

H. LIQUID BULK CARGO TERMINAL(S)
DISCUSSION
The island's petroleum supplies are shipped to Hilo Harbor and dispersed via truck throughout the island. While petroleum storage terminals have been proposed at Honokohau Harbor and in the proximity of the Keahole-Kona Airport, Kawaihae Harbor provides an immediate terminal site.
RECOMMENDATIONS
Although there are valid concerns over petroleum storage facilities in Kawaihae Harbor, it is understood that the cost to relocate these facilities to a more remote area is prohibitive, and the adjacent Hawaiian Home Lands are not prepared to accommodate these operations in the immediate future. In any case, some means of bulk storage is required in the vicinity for vessel bunkering and ultimate distribution throughout west Hawaii.

The existing petroleum hatches will remain at Pier 3, Hilo Harbor;
The existing TOSCO facility will remain at Kawaihae Harbor;
A public liquid bulk terminal is proposed at the coral stockpile, Kawaihae Harbor;
Liquid bulk transfers are also possible at Piers 2 through 5, Kawaihae Harbor.

I. COMMERCIAL FISHING
DISCUSSION
Since 1985, the fishery picture in Hawaii has changed rapidly and in unforeseen ways. The tuna cannery closed, resulting in a substantial decline in landings for what once was the largest fishery for the State - the aku (skipjack tuna) pole-and-line fishery. Hawaii did not become a base and trans-shipment point for purse seine-caught tuna and troll-caught albacore. Foreign longliners were excluded from the Unites States (U.S.) 200-mile Exclusive Economic Zone (EEZ) surrounding the State and have been replaced by a fleet of American longline vessels employing new methods for targeting bigeye tuna and broadbill swordfish. With few exceptions, however, the catch of pelagic fish has increased greatly in landings and value. Hawaii's commercial landings are at a record high in value with some estimates for 1990 near $50 million. Exports of tuna and swordfish to Japan and the mainland U.S. account for a large percentage of the catch. New and improved facilities are likewise required to support this lucrative industry.
RECOMMENDATIONS
It is difficult to project future quantities/locations of pelagic fish and subsequently difficult to project the size of the commercial fishing industry and its required 2020 facilities. The Department of Land and Natural Resources' Division of Boating and Ocean Recreation currently manages and maintains Hawaii's commercial fishing facilities on the island of Hawaii. To assist in these accommodations:

Commercial fishing berths and accommodations are provided at available berths and/or Radio Bay, Hilo Harbor.

J. MILITARY CARGO
DISCUSSION
The U.S. Army owns land on the coral stockpile at Kawaihae Harbor under a Governor's Executive Order. Military cargo, including provisions, troops, vehicles and explosives are transported through this facility. The U.S. Army Corps of Engineers has the responsibility for constructing and maintaining the harbors' navigational improvements, including the breakwaters, and must be provided access to them.
RECOMMENDATIONS

In addition to the lands under their Executive Order in Kawaihae Harbor, the Army is provided 100 yards of beach access east of the LST/LSV ramp. The area west of the ramp is added to their jurisdiction for the Corps of Engineer's access to the breakwater;
Pier 7, Kawaihae Harbor, will be constructed as berthing for Coast Guard vessels;
The existing RO/RO berth in Hilo Harbor will also serve as a LST/LSV berth;
Coast Guard vessels will utilize Radio Bay or Pier 6, Hilo Harbor.

K. OCEAN RESEARCH
DISCUSSION
While not a true function of the commercial harbor, Hawaii's dearth of maritime facilities make it difficult for the university's ocean research operations to secure the appropriate sites. Hawaii's commercial harbors, therefore, provide some of the facilities required by ocean research operations.
RECOMMENDATIONS

Ocean research operations are permitted berthing for their vessels and adjacent landside accommodations at Pier 6, Hilo Harbor and Pier 4, Kawaihae Harbor.

L. ADDITIONAL RECOMMENDATIONS

At Kawaihae Harbor, an area adjacent to both overseas and inter-island cargo terminals is delineated for cargo yard expansions as they become necessary.
The southeast corner of Kawaihae Harbor lands is a potentially significant historical site. These lands will not be developed for commercial harbor operations until cargo volumes dictate the expansion and the proper archaeological and environmental studies are conducted.
A cultural, recreational organization, Pua Ka'ilima O' Kawaihae, is afforded temporary space for their activities on the western edge of the coral stockpile at Kawaihae Harbor.