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The Honolulu Advertiser
Posted on: Tuesday, August 16, 2005

Harbor security slows imports

By Alexandre Da Silva
Associated Press

A Matson barge heads out of Honolulu Harbor on its way to the Marshall Islands. Matson is in compliance with harbor security rules that went into effect last year under the Maritime Transportation Security Act of 2002, according to a company spokesman in Oakland, Calif.

LUCY PEMONI | Associated Press

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Thoai Nguyen would rather endure five-hour flights to California each month than wait weeks for the latest styles to arrive from the Mainland to dress the hangers in her newly-opened boutique.

"If you wait for the boat, it takes too long," said Nguyen, 31, founder and owner of Crazy Beautiful at Restaurant Row. "It takes like two weeks."

Increased security regulations at the state's commercial harbors have slowly come into effect over the past year, delaying operations and holding up shipments. Small-business owners — whose livelihoods depend on getting merchandise from the Mainland, Asia and beyond — have had to rely on their imaginations to overcome delays.

At Executive Chef at Ward Warehouse, small kitchen items like garlic presses and utensils come in via airmail while bulkier cooking items like cookware and small appliances are shipped in, said Kelli Furushima, the company's buyer and general manager.

"It does seem like maybe things are taking longer," said Furushima.

The new laws, part of the federal Maritime Transportation Security Act of 2002, require harbor users to carry identification cards and be able to spot and report suspicious activities among other things.

The U.S. Coast Guard began to fully enforce the new rules on Dec. 31 after companies were given a grace period to adjust, said Lt. Cmdr. Todd Offutt.

In its ongoing effort to protect harbors against a possible attack, the Coast Guard next month will conduct an exercise at Honolulu Harbor to mimic a terrorist attack, said Ed Teixeira, vice director of the state Civil Defense.

Truck drivers transporting goods in and out of harbors also are being trained, said Gareth Sakakida, general manager of the Hawaii Transportation Association, which represents local trucking companies.

"We are all learning a lot," Sakakida said.

There have only been a few terrorism scares at Hawai'i harbors since the facilities began receiving more attention after the Sept. 11, 2001, terrorist attacks. The most significant alarm, a bomb threat aboard a cruise ship in 2003, turned out to be a hoax.

However, state authorities have justified the increased protection because of the harbors' economic importance.

Matson Navigation became fully compliant with the new rules after adjusting its operations last year, said Jeff Hull, the company's spokesman in Oakland, Calif.

Matson has received $965,000 from three federal grants to train hundreds of employees and other workers who enter their Honolulu piers, including vendors and contractors, said Gary Moniz, the company's facilities and security officer.

"There's a learning curve," Moniz said. "It's a major cultural change."

At Young Brothers Ltd., security costs have more than doubled to $1 million since regulations took effect last year, said Bruce McEwan, a security officer at the shipping company.

"We had anticipated it this year, but we are still running a little bit over budget," said McEwan, acknowledging that the rules have slowed traffic into the pier.

"We need to ensure all employees are trained with maritime security," he said.

But the constantly changing security requirements could put a strain on smaller business unaware of the laws, said Ted Liu, director of the state Department of Business, Economic Development and Tourism.

"Small businesses are particularly challenged because they don't have the resources. If you are Wal-Mart you know, you can dedicate a whole bunch of resources," Liu said, shortly after he voiced the issue at a recent U.S. House Small Business Committee hearing in Waikiki.

U.S. Rep. Ed Case said after the House hearing that he would continue to ask for more federal assistance to streamline port security, but also said that people need to be patient.

"Homeland Security has to come number one. We can't really make an exception to anybody," said Case, D-Hawai'i. "What we can do is to make sure that ... those that need some assistance to operate on a leveled playing field get it."

But Nguyen, who runs her two-month-old boutique with a friend, said she works in an industry guided by fashion, where waiting for assistance could throw off the store's display of what's in style.

"People want their clothes now," Nguyen said. "You know how girls are."

So Nguyen heads to Los Angeles for aggressive shopping sprees at wholesalers then brings back the goods in overstuffed bags.

"I get charged for overweight," she said with a laugh, reluctantly admitting to a 30-box record on a single trip. "But ... I can keep my own schedule and I love shopping, so it doesn't bother me."