Hawai‘i Defers 3% Tariff Increase at State Harbors

June 25, 2020, 3:12 PM HST (Updated June 25, 2020, 3:18 PM)
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The Hawai‘i Department of Transportation (HDOT) Harbors Division will defer the scheduled 3% tariff increase on the orders of Governor David Ige.

The tariff increase was scheduled to take effect on July 1 and would have been applied to port entry fees, vessel dockage, wharfage, pipeline tolls, and other fees associated with cargo and passenger operations at the State’s commercial harbors.

“Our economy relies heavily on the movement of goods through our commercial harbors,” said Governor Ige. “As part of our economic recovery efforts, I’ve directed HDOT to defer scheduled tariff increases. This will allow local shippers and businesses, especially those on the neighbor islands, to conduct business without worrying about a rate increase at this time.”

The Harbors Division has restricted its program costs and is currently 20% under budget, according to an HDOT press release. In March, Fitch Ratings affirmed the ‘AA-’ rating for Harbors Revenue Bonds and rated the outlook for these bonds as “stable.” The original news release on the Fitch Ratings review of port operations in light of the coronavirus pandemic can be read here.

“State Harbors are financially self-sustaining through the collection of tariffs from those using our infrastructure,” Hawai‘i Department of Transportation Director Jade Butay said in a press release. “We are able to support the governor’s deferral without negative impact to our Harbors modernization and other infrastructure improvement projects.”

Hawai‘i’s commercial harbor system is comprised of and Kawaihae and Hilo Harbors on Hawai‘i Island; Nawiliwili and Port Allen Harbors on Kaua‘i; Honolulu and Kalaeloa Barbers Point Harbors on O‘ahu; Kahului Harbor on Maui; Kaunakakai Harbor on Moloka‘i; and Kaumalapau Harbor on Lana‘i.

More information on harbor tariffs and fees can be found at https://hidot.hawaii.gov/harbors/doing-business/.

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