McDERMOTT STUFF

BEGINS HERE

Port Users

• Shipping Lines: Matson and Horizon Lines• Ferries, Cruise Ships, Barges• Trucks• Shippers• Passengers• Hawaii has no rail system

Port UsersHUGG (HAWAII HARBOR USERS GROUP)

• Matson Navigation Company (Steamship Line)• Horizon Lines, LLC (Steamship Line)• Young Brothers/Hawaiian Tug & Barge• Norwegian Cruise Line• Sause Bros., Inc. (Tub & Barge, Marine Repair)• Aloha Cargo Transport (ACT) (Inter-Island Barge carrier)• McCabe Hamilton & Renny Co., Ltd. (Stevedores)• Hawaii Stevedores, Inc.• Hawaii Superferry, Inc.• Tesco Hawaii Corporation (Bulk Refining and Distribution)• The Gas Company • Ameron Hawaii (Concrete & Construction)

Production• Hawaii imports 98% of its consumed goods by sea through its commercial harbors.

• The main obstacle to Hawaii being able to increase production and efficiency is the amount of space the port has available.

• The number of TEUs handled per terminal acre annually in 2005 was over 7,000. This compared with around 4,000 for Seattle, Tacoma, and Oakland, and around 5,000 for Los Angeles and Long Beach

• Forecasts predict continued growth in the future.

Pricing• Examples:• Pilotage: $2.50 to $3.50 per vessel foot.

• Tuggage: $685 to $1,057 per hour

• Stevedore: $120 to $147 per gang hour

• Passenger fees: 35 cents to $5.00 per passenger.

• Port Entry fees: $25 to $638 based on vessel length.

• The port also charges for: Freight station surcharge, Storage space, Dockage, Wharfage, Demurrage, and Transtainers based on the Hawaii harbors division tariff.

Agglomeration

• Hawaii’s towns/cities are based around the ports due to island geography.

• The economy is primarily based on tourism and the military, both service oriented sectors.

• Agglomeration has caused fierce competition for port space.

Intrer/Intra Port Competition• All port facilities are administered by

the Hawaii DOT Harbors Division.

• Hawaii is 2,500 miles from nearest land mass.

• Honolulu is the main hub for freight coming in from the mainland. It is then dispersed from there to the

other islands.

McDermott STUFF

ENDS HERE

HODGES STUFF

BEGINS HERE

Operating Options

• 10 harbors on 6 islands

• Operated by Hawaii’s Department of Transportation’s Harbor Division

• Operated under the umbrellas of Hawaii’s Department of Transportation, not all data is separated by division

• Leases to some harbors to terminal operators

Investments

• 2007 assets = $146.3M

• 2007 cash = $142.6M• 2007 issued bonds =

$2.9M• Purpose of

investments is to support and increase tourism activity

Operating and Capital Costs

• $46M in 2007• $38.2M in 2006• Decrease of 20.3%• $3.1M in cancelled projects• $1.1M in pay increase• $1.7M in special maintenance• More projects to be cancelled

Governing Structure

• Land owned by Hawaii Community Development Authority

• Operated by Hawaii’s Dept. of Transportation’s Harbor Division

Dock Workers• Do not belong to ILWU• Represented by ILWU

Local 142• Follows format of Pacific

Coast Longshore Contract Document

• Believe to have more benefits than ILWU members

Marketing Strategy

• No competitors

• Hawaii’s Department of Transportation focuses on coordinating Land, Air, and Harbor divisions to promote tourism

• Welcomes innovation to attract new carriers and keep up with new technology

• Works with foreign cruise ship operators to seek waivers on Jones Act restrictions

HODGES STUFF

ENDS HERE