Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.R. No. 157 entitled:

begs leave to report as follows:

The purpose of this resolution is to enable local merchants and manufacturers to better compete with mainland and foreign competition regarding goods shipped to the Neighbor Islands by requesting the Department of Transportation to:

DOT supported the intent of this measure.

Your Committee finds that this measure will address the competitive disadvantage that some local merchants and manufacturers face regarding wharfage rates. Currently, incoming domestic overseas and foreign overseas cargo transshipment to the Neighbor Islands via Honolulu on a through bill of lading are not subject to outgoing interisland wharfage charges. However, other domestic overseas and foreign cargo bound for the Neighbor Islands that must be stored, repackaged, or processed in Honolulu before being shipped, are subject to outgoing interisland wharfage charges, even though both cargoes cross over the wharves the same number of times.

As a result, the waiving of outgoing interisland wharfage charges for transshipped cargo on a through bill of lading is discriminatory against local merchants and manufacturers who must pay the extra charges because they store, repackage, or process the goods that they ship in from domestic or foreign ports before shipping them to the Neighbor Islands.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 157 and recommends that it be referred to the Committee on Finance.