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The Honolulu Advertiser
Posted on: Thursday, April 28, 2005

$24M cruise terminal coming

By Andrew Gomes
Advertiser Staff Writer

A Pier 2 warehouse at Honolulu Harbor is being transformed into a modern cruise ship terminal following years of financial constraints and a downturn in the cruise business that long delayed the $24 million state project.

The facility at the foot of South Street will provide an inviting addition to Honolulu's only functioning passenger terminal at adjoining Piers 10 and 11 on the 'ewa side of Aloha Tower Marketplace, and better accommodate growing demands of the industry.

"Airports and harbors are the first and last impressions visitors are going to have when they come to Hawai'i," said Scott Ishikawa, state Department of Transportation spokesman. "We want to give them a better impression."

Pier 2 has been used primarily for cargo ships and barges as well as a secondary terminal for cruise ships when Piers 10 and 11 are occupied. But the cargo shed accommodations do not suit cruise passengers well.

"Passengers have been waiting in a humid, dark warehouse for the tour buses to pick them up," Ishikawa said.

The Pier 2 improvement project broke ground last week, and is expected to be completed in November.

The state had hoped that construction could have begun at the start of the year and been finished to coincide with the inaugural Hawai'i voyage in July by Pride of America, the second Hawai'i-ported vessel of Norwegian Cruise Lines. But Ishikawa said construction bids came in higher than expected, creating a delay to obtain extra funding.

A Pier 2 cruise terminal behind the Coast Guard headquarters on Ala Moana has been sought as far back as 1998 when a state-commissioned study recommended such a facility with modern check-in and lobby areas was needed to accommodate Hawai'i's growing cruise-ship visits.

The Transportation Department secured funding from the Legislature in early 2001, but shelved the project after the Sept. 11 terrorist attacks hobbled Hawai'i tourism and sunk what had been the state's only home-ported cruise line, American Hawai'i Cruises.

Cruise-ship visits to Hawai'i recovered fairly quickly, but the state Transportation Department in the past few years had to concentrate resources on enhancing harbor security.

Cruise passenger arrivals increased from about 150,000 in 2000 to 240,800 last year, according to the state Department of Business, Economic Development and Tourism.

This year through March, cruise visitor counts are 33 percent higher than the same three months last year.

Expected to add to those figures is NCL's Pride of America, which would join the company's Pride of Aloha that began service last July. NCL also recently began construction on a planned third Hawai'i-ported vessel, Pride of Hawai'i.

"The cruise industry is the fastest-growing industry (in tourism) right now, and Hawai'i is in high demand as a destination," said tourism liaison Marsha Wienert. "We're excited."

According to the Cruise Lines International Association, Hawai'i is one of the top 10 cruise destinations worldwide.

The Pier 2 passenger facility is designed to handle 2,500 passengers through the three-story, air-conditioned terminal. The top-level concourse will connect to ships via a gangway. A mezzanine will connect the concourse with the ground level and its baggage and cargo handling areas, restrooms and parking and loading areas for passengers, employees, tour buses and vendors.

Long lines for passengers should be eliminated because of lower security requirements at Pier 2, the Transportation Department said.

Despite the enhanced facilities, it is questionable whether Pier 2 will be considered Ho-nolulu Harbor's preferred cruise terminal because Piers 10 and 11 are adjacent to Aloha Tower Marketplace and its variety of restaurants and retail stores.

Pier 2, however, is across Ala Moana from Restaurant Row, which could see a significant increase in customers as more cruise ships tie up nearby.

Cruise-ship companies schedule berthing space with the Transportation Department on a first-come first-served basis.

Wienert said she expects both Piers 2 and 10/11 will be used equally by cruise ships.

The Pier 10/11 cruise terminal had been slated to be rebuilt as part of a $300 million plan by a private developer to create a residential and commercial complex around Aloha Tower Marketplace, but that plan's viability is unclear after key elements failed to gain support at the Legislature last month.

The Pier 2 work may include a secondary phase of improvements to the warehouse fronting the pier, which is long enough to berth two ships with a combined length under 1,950 feet. No timetable or cost has been determined for the additional work, which would create Customs Border Protection offices.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.