Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.R. No. 83 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Department of Transportation (DOT) to amend section 19-42-83, Hawaii Administrative Rules, relating to movement of vessels at state ports.

Your Committee received testimony in support of this measure from Young Brothers, Limited, ILWU Local 142, Hawaii Ports Maritime Council, The Hawaii Pilots Association, Hawaii State Association of Electrical Workers, Inlandboatmen's Union of the Pacific, International Organization of Masters, Mates & Pilots, and ten individuals. Testimony in opposition was received from the Department of Transportation, Waldron Steamship Co., Ltd., Transmarine Navigation Corporation, Norwegian Cruise line, and North West Cruiseship Association.

Hawaii is dependent on waterborne transportation for the supply of the vast majority of goods used in the State, which underscores the importance of the harbor system to the State. As such, systems and procedures need to be in place to safeguard the harbors to allow the safe and continuous flow of commerce and the operation of systems in a safe and prudent manner. This concept is sometimes referred to as "prudent navigation." In particular, Hawaii's neighbor island harbor system is a vital link in the supply of food, energy, and other essential supplies.

A grounding, collision, or other casualty involving a large ship in the harbor area would have serious consequences for all residents on that island. Such a casualty would likely result in closure of the harbor, with a resultant interruption of shipping to and from the island. One of the most effective means to reduce the risk of shipping casualties, such as groundings and collisions, is to ensure the adequate use of tug boats to assist large ships entering and departing harbors.

Testimony of the DOT acknowledges that there is a need to amend its administrative rules pertaining to the movement of large vessels, which were last revised in 1997. Since that time, modern ship design and technology have made possible the current use of much larger commercial cargo and passenger ships. Safety issues are magnified with the introduction of larger vessels, both cargo and cruise, into service in the Hawaiian islands. The DOT states that the desired rules change is to assure the safe operation of larger vessels at state harbors, particularly with regard to the use of tug boat assistance.

Testimony on this measure indicated that there is no consensus on requiring the use of tug boats to berth large ships. Your Committee is primarily concerned with safety and possible liability to the State from property damage and physical injury. Your Committee recognizes that the added costs to shipping lines for the use of tug boats may discourage the discretionary use of tug boats. Therefore, the administrative rules should be clear and unambiguous as to when tug boats are required.

It has come to your Committee's attention that the DOT's policy with regard to use of tug boats at Hilo Harbor has been ambivalent and most recently contradictory. In the meantime while the DOT is revising its administrative rules, your Committee requests the DOT to administratively require the use of tug boats at Hilo Harbor for the large ships and to rescind any prior orders to the contrary.

Your Committee has amended this measure to urge the DOT to:

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 83, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 83, S.D. 1.