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Thursday, June 25, 2020
Ige Defers Harbor Tariff Hike
By News Release @ 10:22 PM :: 4137 Views :: Jones Act, OHA, Small Business, Taxes

GOVERNOR IGE DEFERS SCHEDULED HARBOR TARIFF INCREASE

News Release from Office of the Governor, Jun 25, 2020

HONOLULU – The Hawaii Department of Transportation (HDOT) Harbors Division will defer the scheduled three-percent 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.”

“State Harbors are financially self-sustaining through the collection of tariffs from those using our infrastructure,” said Hawaii Department of Transportation Director Jade Butay. “Thanks to the foresight of our Harbors Division staff we are able to support the governor’s deferral without negative impact to our Harbors modernization and other infrastructure improvement projects.”

The Harbors Division has restricted its program costs and is currently 20-percent under budget. 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.

Hawaii Department of Transportation Deputy Director for Harbors Derek Chow added: “Financial discipline and management controls will continue to govern our projects. Together with our federal, state, county, and private sector partners, we can weather any storm.”

Hawaii’s commercial harbor system is comprised of Nawiliwili and Port Allen Harbors on Kauai; Honolulu and Kalaeloa Barbers Point Harbors on Oahu; Kahului Harbor on Maui; Kaunakakai Harbor on Molokai; Kaumalapau Harbor on Lanai; and Kawaihae and Hilo Harbors on Hawaii Island. More information on harbor tariffs and fees can be found at https://hidot.hawaii.gov/harbors/doing-business/

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2016: Harbors Division Fee Hike designed to boost $77M OHA Slush Fund?

2020: OHA to Ige: Bypass Legislature and Give Us $21,287,134  

Related? Debunked: YB Demands $25M COVID Relief on Top of Rate Hike

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