HomeMy WebLinkAboutRES 679 Draft 01 2018-2020COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION NO. 679 20
A RESOLUTION URGING YOUNG BROTHERS AND THE PUBLIC UTILITIES
COMMISSION TO EXPLORE ALL OPPORTUNITIES TO CONTINUE
UNINTERRUPTED CARGO SERVICE TO THE ISLANDS OF THE STATE OF
HAWAII.
WHEREAS, the islands of Hawai`i are dependent on the uninterrupted flow of
interisland cargo; and
WHEREAS, interisland cargo is the key to allowing agricultural commodities to reach
their intended markets in a timely manner, which promotes economic growth and recovery, and
builds food self-reliance in Hawai`i; and
WHEREAS, United States Code Title 46, Section 55601, directs the U.S. Secretary of
Transportation to establish a short sea transportation program and to designate such projects to
be conducted under the program to mitigate landside congestion, or to promote short sea
transportation; and
WHEREAS, the Secretary is further directed through the program, to encourage the use
of short sea transportation through the development and expansion of documented vessels,
shipper utilization, port and landside infrastructure, and marine transportation strategies by State
and local governments; and
WHEREAS, the Secretary may designate a project to be a short sea transportation
project if the Secretary determines that the project uses documented vessels and mitigates
landside congestion or promotes short sea transportation; and
WHEREAS, pursuant to this section of U.S. Code, the U.S. Department of
Transportation has established under its Maritime Administration the "America's Marine
Highway" program, comprising 25 coastal, river, and lake routes to expand the use of America's
navigable waters, and has established a grant funding program to promote use of waterways; and
WHEREAS, acting upon an application from the Hawai`i Department of Transportation
HDOT), the Maritime Administration, on July 9, 2018, designated the waters around and
between the Hawaiian Islands as MH-1, the Daniel K. Akaka Marine Highway, in honor of the
late United States Senator; and
WHEREAS, this designation enables HDOT's participation in the Marine Highways
program, which provides federal resources to increase operational efficiency in moving cargo
through the State's commercial harbors; and
WHEREAS, Young Brothers LLC, a subsidiary of Foss Maritime Company, LLC, a
subsidiary of Saltchuk Marine Services, LLC, a subsidiary of Saltchuk Resources, Inc., is an
interisland shipper licensed and regulated by the Public Utilities Commission (PUC) under
Hawai`i Revised Statutes Chapter 271G, the Hawai`i Water Carrier Law; and
WHEREAS, the PUC on May 4, 2020, has issued Order No. 37128, approving Young
Brothers' request as stated in their Transmittal No. 20-0003, to cut expenses by reducing its
weekly sailings to the Kahului Harbor from three to two, by reducing its weekly sailings to
Kaunakakai Harbor from two to one, and by reducing its weekly sailings to Hilo Harbor from
two to one on a temporary basis; and
WHEREAS, the reduction in sailings to these ports reduces carrying capacity, constrains
intrastate commerce, and increases the potential for service interruptions due to incidents arising
from improper container loads; and
WHEREAS, Young Brothers has on May 26, 2020, requested a grant of$25 million
from the State's allocation of Coronavirus Aid, Relief, and Economic Security Act (CARES)
funding, has stated that its parent company will not cover revenue shortfalls after May 31, 2020,
and also that "absent immediate relief from the State, it will soon be unable to pay its expenses
or continue operations"; and
WHEREAS, a cessation of service is contrary to the stated intent of the Hawai`i Water
Carrier Law to "promote safe, adequate, economical, and efficient service among carriers, to
encourage the establishment and maintenance of reasonable rates and charges for transportation
and related accessorial service, without unjust discrimination, undue preference or advantage, or
unfair or destructive competitive practices, all to the end of developing, coordinating, and
preserving a sound transportation system by water"; and
WHEREAS, federal subsidies may be available through the U.S. Department of
Transportation's Maritime Administration, the U.S. Department of Agriculture, and elsewhere to
offset reasonable expenses incurred by Young Brothers so that the company may continue its
operations; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that
Young Brothers and the Public Utilities Commission are urged to explore all opportunities to
continue uninterrupted cargo service to the islands of the State of Hawai`i, while maintaining
just and reasonable" rates as required by the Hawai`i Water Carrier Law.
BE IT FURTHER RESOLVED that the cessation of interisland cargo service is an
unacceptable outcome.
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BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the Honorable Brian Schatz, United States Senator; the Honorable Mazie Hirono,
United States Senator; the Honorable Tulsi Gabbard, United States Representative; the
Honorable Lorraine R. Inouye, Senator; the Honorable Kaiali`i Kahele, Senator; the Honorable
Chris Todd, Representative; James P. Griffin, Public Utilities Commission Chair; Dean Nishina,
Consumer Advocate; Jay Ana, Young Brothers President; Donna Domingo, International
Longshore and Warehouse Union Local 142 President; the Honorable David Y. Ige, Governor;
and the Honorable Harry Kim, Mayor.
Dated at Hilo Hawai`i, this 8th day of July 20 20 .
INTRODUCED BY:
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IL MEMBER, COUN • HAW A I`I
NMfAic
COUNCIL EM R, COUNTY OF ' A API
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX
Hilo, Hawaii CHUNG X
DAVID X
I hereby certify that the foregoing RESOLUTION was by EOFF X
the vote indicated to the right hereof adopted by the COUNCIL of the KANEALII-KLEINFELDER XCountyofHawai`i on July 8, 2020
KIERKIEWICZ X
LEE LOY X
ATTEST: POINDEXTER X
RICHARDS X
VILLEGAS X
9 0 0 0
Reference: C-991/Waived GREDC
TY CLERK CHAIRPERSON & PRESIDING FICER RESOLUTION NO. 679 ZO
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