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The Honolulu Advertiser
Posted on: Friday, February 24, 2006

Hawai'i distanced from ports deal

 •  U.S. port security poor, expert says
 •  Inouye: Is 'terrorists welcome' sign next?

By Lynda Arakawa
Advertiser Staff Writer

Honolulu Harbor, including the Matson and Horizon Lines container yards at Sand Island seen here, is overseen by the state, as are all commercial seaports in Hawai'i. Officials say the potential takeover by Dubai Ports World of some U.S. ports is unlikely to touch Hawai'i.

BRUCE ASATO | The Honolulu Advertiser

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The controversy over a deal for an Arab company to take over operations at six U.S. ports is unlikely to happen in Hawai'i, where the state manages and operates the ports, transportation officials said.

"It's not the same situation because the state already manages and operates the harbor," said state Department of Transportation spokesman Scott Ishikawa. "It's a different situation than what's occurring on the Mainland."

The Bush administration recently approved a deal by government-owned Dubai Ports World to take over operation of seaports in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. The deal has generated criticism in Congress and elsewhere. Critics say it would threaten port security. White House aide Karl Rove suggested yesterday that President Bush could accept some delay of the deal, and the Arab maritime company involved, Dubai Ports World, agreed.

But while the public ports involved in the controversy lease portions of their facilities to private terminal operators, Hawai'i's commercial harbors are managed and operated by the state.

"The reason we don't currently do that, or historically have never done that, is the ports are small," said Barry Fukunaga, deputy director of the state Department of Transportation.

The state has avoided turning over port operations to private companies to assure all parties have equal access to the ports. "It's important for Hawai'i to provide available access to all companies, because if you gave exclusive (use) to a company for any particular area, then it would be up to them to decide whether or not they would allow another shipping company to use that area," Fukunaga said.

Fukunaga said while some companies like Matson Navigation Co. or Horizon Lines may rent a small portion of the harbors, the piers are generally kept for common use.

But having a private operator may be among the scenarios state transportation officials include in discussions about harbor expansions.

For example, it may be quicker if the state leases a portion of the harbor to a private developer to build, officials said. The developer would then have a management company oversee operations for that part of the harbor.

"When we talk about harbor expansion, that's one method for doing it," Fukunaga said. "In all fairness, you want to make sure that you've done this kind of evaluation because you just can't arbitrarily exclude things."

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.