Project Description

Hawaii's economy is far more dependent on commercial harbors than most residents realize. Our lifestyles and living standards are directly tied to ocean surface transportation and commercial harbors. In fact, more than 80% of all consumer goods -food, clothing, autos, building supplies, machinery, paper and allied products, medical supplies, and agricultural materials - are imported into the state. Of that 80%, nearly all - some 98% - enter Hawaii through commercial harbors on six islands. Given the critical role that harbors play in the state, it is surprising that the vast majority of residents are unaware of the economic impact of harbors and the growing urgency to upgrade the commercial harbor system. 

If Hawaii's harbors are not upgraded, the loss of real gross domestic product (in 2007 dollars) could amount to more than $50 billion by 2030. This is especially large considering the fact that, to date, estimated costs of harbor improvements are under $1 billion.

Today, ocean surface transportation is our lifeline. It remains the only viable means to service the lion's share of Hawaii's economic needs. The fact that the state itself is separated into individual islands means that each island is also similarly dependent on ocean cargo shipping, even in today's age of advanced air transportation. If dependable and efficient ocean surface transportation were suddenly eliminated, Hawaii's economy would be devastated. 

The commercial harbor system is just as important to our economic health. Cargo ships transporting goods and commodities enter the state through Honolulu Harbor, Kalaeloa Barbers Point Harbor, Kahului Harbor, Kaunakakai Harbor, Hilo Harbor, Kawaihae Harbor, Nawiliwili Harbor, Port Allen Harbor, and Kaumalapau Harbor. In 2004, total container volume was 1.54 million TEUs (twenty-foot equivalent unit container). Container volume is expected to increase as much as 27% in 2010, 66% by 2015 and 93% by 2020. In recent years, new demands have been placed on Hawaii harbors by the cruise industry and the upcoming introduction of the Hawaii Superferry. Although the state spends $25-$30 million in harbor improvements annually, it falls woefully short of the estimated $600 million in harbor upgrades that is needed to meet the increasing demand for harbor facilities.

Hawaii cannot afford to delay harbor improvements any longer. Based on modest assumptions about overall impacts, the slightest reduction (0.1%) in the growth of Hawaii's real gross domestic product (gross domestic product that has been adjusted for inflation) due to inadequate harbors will, by 2030, result in a reduction in the level of RGDP that almost equals estimated RGDP for 2007.

Moreover, if harbor problems are ignored, by 2030, Hawaii's standard of living will be reduced significantly and price levels will be substantially higher. The impact on everyday consumer goods will be especially pronounced. Inadequate harbor improvements will drive up the cost of food, household products, small appliances, and furniture an average of 18%. That means without harbor upgrades, a can of green beans in 2030 will go from $2.88 to $3.42, a case of cola from $9.83 to $11.67 and a queen-size mattress from $1,094.48 to $1,299.08.

Reference:  Laney, L. (2007). The Impact of Hawaiʻiʻs Harbors on the Local Economy. Hawaiʻi Pacific University

Purpose

• Improve agency capacity to seek approval and funding to rebuild Lahaina Harbor as soon as possible
• Ensure that stakeholders are able to provide input so that Lahaina Harbor is rebuilt efficiently and better than before based on the expertise that stakeholders can provide
• Ensure that no slip holders, both recreational and commercial, lose their slip
• Imperative that Harbor NOT be turned into large-scale commercial and freight facility 
• Need to preserve cultural and social character - focus is on this harbor as a transit hub for Maui Nui
• Harbor is fundamentally important and integrated into the education, culture, businesses of Lahaina – it is an integral driver for jobs, healing, activity in Lahaina and Maui Nui
• Healing aspect: It is important for Lahaina people to get out into the water—the Harbor is the primary way to enable schools, community members, groups to get out to ocean for healing