$40M heading to Hawai‘i to increase cargo capacity at Kahului Harbor, deliver goods faster to Maui

US Sen. Brian Schatz (D-Hawai‘i) announced the Hawai‘i Department of Transportation will receive $40.1 million in federal funding to expand cargo capacity at Kahului Harbor and deliver goods faster to Maui residents.

The funding will support grading, drainage improvements, and hardening at the container yard in order to allow five containers to be stacked on top of each other, compared to the current maximum of two.

“This new funding will increase cargo capacity at Kahului Harbor and reduce congestion and delays,” said Senator Schatz, a senior member of the Senate Appropriations Committee. “These improvements will help get goods into stores faster and keep shelves stocked while also supporting agricultural exports and Lāhainā’s ongoing recovery.”

The state Department of Transportation reports that it received the $40,146,750 in federal grant funding through the US Department of Transportation’s Port Infrastructure Development Program. The grant will support the $56.1 million Port of Kahului Cargo Yard Expansion project, significantly increasing landside capacity and operational efficiency at Maui’s sole commercial port.

The balance of the total project cost, $16 million, will be matched by state funds from the Harbor Special Fund.

The funding directly addresses the immediate need for expanded cargo storage and improved port resilience, created by an influx of construction materials, heavy equipment and modular housing units following the August 2023 Lahaina wildfires. The project encompasses three primary components:

• Pu‘unēnē Cargo Yard Improvements: Upgrading and hardening an existing seven-acre cargo yard with reinforced concrete pavement, leveling grade deficiencies and installing a box culvert over an open drainage channel to eliminate operational bottlenecks and mitigate sea-level rise and flooding risks.
• New Ala Luina Cargo Yard Development: Creating a new 10-acre cargo yard on a to-be-acquired parcel through the demolition and environmental remediation of obsolete industrial structures, followed by paving, lighting and security fencing.
• Project Administration and Terminal Access Enhancements: Delivering environmental compliance, design engineering, terminal roadway improvements, and a dedicated, safer pedestrian access area for cruise passengers away from active cargo operations.

“We are grateful for the support of our federal partners including our congressional delegation and the Maritime Administration,” said HDOT Director Ed Sniffen. “This landmark investment in the Port of Kahului is critical to sustaining Maui’s long-term economic recovery and resilience, while ensuring uninterrupted service in our supply chain for Maui and statewide. Expanding our landside capacity ensures our harbor can seamlessly handle the surge of incoming construction materials, heavy equipment and modular homes vital to rebuilding Lahaina, while providing the infrastructure needed to move local agricultural exports to market efficiently.”

“Without federal grant assistance, major development at Kahului would not have started for 10 to 15 years,” said Dre Kalili, deputy director of transportation for harbors, who noted that the federal funding enables HDOT to accelerate construction with a targeted project completion in 2029.

In addition to expanding port capacity, the construction phase is expected to generate approximately 297 direct jobs and 738 indirect jobs in the local economy.