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.B. No. 505 entitled:

begs leave to report as follows:

The purpose of this measure is to exclude Piers 1 and 2 from the Kakaako Community Development District.

Your Committee received testimony in support of this measure from the ILWU Local 142, The Chamber of Commerce of Hawaii, Matson Navigation Company, Young Brothers, Limited, North West Cruiseship Association, Waldron Steamship Co., Ltd., Maritime Consultants of the Pacific, Inchcape Shipping Services, Aloha Cargo Transportation, and one individual. Testimony in opposition was received from the Department of Transportation (DOT), Department of Business, Economic Development and Tourism (DBEDT), and Hawaii Community Development Authority (HCDA).

Your Committee notes the difference of opinion as to whether Honolulu's main waterfront should be a part of the comprehensive development plan for the Kakaako area or be a part of the DOT. Testimony of the DOT, DBEDT, and HCDA indicates that they recognize the importance and need for expanding commercial cargo space in Honolulu Harbor. However, they also recognize the competing importance of people-oriented maritime uses such as cruise ship activities that create the greatest return on investment to the State.

There are currently two significant and perhaps irreconcilable approaches to planning for Honolulu Harbor. One approach would emphasize cargo shipping, container space, and related parking. The other approach would emphasize holistic planning to meld the waterfront with the surrounding community development. The latter approach would plan for cruise ships and terminals. Both uses are of utmost importance. As an island state, Hawaii depends upon moving cargo and people in a constant stream of economic flow. The main artery of this flow is Pier 1 and Pier 2. The root of the problem is a lack of space.

Your Committee urges the DOT to plan prudently for Hawaii's future by ensuring there are sufficient cargo ship and container facilities, if not at Honolulu Harbor then at Barbers Point and Kalaeloa. Your Committee passes this measure on the basis that Hawaii must maintain the flow of shipping into and out of the State. Shipping is the lifeline of our citizens.

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 is in accord with the intent and purpose of S.B. No. 505 and recommends that it pass Second Reading and be referred to the Committee on Water, Land, and Agriculture.