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Posted on Oct 21, 2020 in Latest Department News, Newsroom

HONOLULU – The Hawaii Department of Transportation (HDOT) is proud to announce the Kapalama Container Terminal Phase 2 project has been awarded to Kiewit Infrastructure West which will complete the cornerstone project for the Harbors Modernization Plan. The project is the largest capital improvement project in Hawaii harbors history. It will increase operational efficiency, provide better resiliency of critical maritime infrastructure, and significantly reduce traffic on surrounding roadways.

“This project is proceeding at a critical time when our state needs it most as we continue fighting COVID-19 and its impacts,” said Gov. David Ige. “The work will be performed by local talent and infuse hundreds of millions of dollars into the local economy, in addition to improving our harbor system that will benefit the state for decades to come.”

The awarded contract of $350 million features the waterside construction at Piers 40-43 in Honolulu Harbor that will add 18.5 acres of fast-land, including 1,860 linear feet of new berthing space for two container ships to dock simultaneously and up to six gantry cranes. The work also includes dredging along the waterfront and up to the federal channel and widening of the water basin between Piers 40 and 41, which will create important barge berthing space along Pier 41. This phase 2 project will address sea level rise by increasing the pier height that will match the phase 1 elevated backlands in construction. The project construction is scheduled to start in spring 2021 and is estimated for completion in the winter of 2023.

“The Kapalama Container Terminal project is especially exciting because it will add much needed docking and cargo space that will increase efficiency for harbor users, help reduce traffic around Honolulu Harbor, and address sea-level concerns for the facility,” said Director Jade Butay, Hawaii Department of Transportation. “The Kapalama Container Terminal improvements is a project we can all be proud of.”

The new Kapalama Container Terminal, Landside Improvements, Phase 1 began January 2018 and continues to be on-schedule for completion at the end of 2020 at a cost of $174 million. Phase 1 landside construction adds 65.5 acres of container yard space to meet Oahu’s cargo demands for the foreseeable future. It will include entry and exit gates, security fencing, parking, on-site utilities, outdoor energy efficient lighting, a coordinated truck weigh station, and will support the use of new gantry cranes and container handling equipment. The new cargo yard borders the existing interisland cargo area allowing easy access between facilities for transshipment of containers, this will and reduce traffic on surrounding roadways such as Nimitz Highway by taking approximately 50,000 truckloads off the roads each year. A prominent environmental feature will remove debris from stormwater runoff before it enters the receiving ocean waters.

The harbor system is vital to the economic security of the state as more than 80 percent of all goods consumed by people in Hawaii are imported, and of that more than 98 percent is shipped in through the commercial harbors system.

Construction of the new Kapalama Container Terminal is financed by revenue collected from harbor user fees, not traditional taxpayer money.

For more project information please visit

To view photos of KCT and the construction area please click here. Please courtesy “HDOT” or “Hawaii Department of Transportation” if published.