MARITIME SHIPPING HAWAII JURISDICTION

SURFACE TRANSPORTATION BOARDHAWAII PUBLIC UTILITIES COMMISSION

THE JONES ACT

A PRESENTATION BYCLIFTON M. HASEGAWA & ASSOCIATES,

LLC

AMERICAN MARITIME CONGRESS

Section 27 of the Merchant Marine Act, 1920, as amended (46 App. U.S.C. 883), commonly referred to as the Jones Act, is one of the three legal pillars of the modern United States Merchant Marine.

A cabotage law, the Jones Act requires that all merchandise transported between two ports within the jurisdiction of the United States be carried by a U.S.-flag vessel, built in the United States, owned by a U.S. citizen and crewed by American merchant mariners.

PORT HAWAII - 10 COMMERCIAL HARBORS

Honolulu Harbor

Kewalo Basin Kaumalapau Harbor Kahului Harbor

Kaunakakai Harbor Kawaihae Harbor Hilo Harbor

Nawiliwili Harbor Port Allen Harbor

Kalaeloa Barbers Point Harbor

Source: State of Hawaii, Department of Transportation, Harbors Division

HAWAII FOREIGN-TRADE ZONE No. 9 (FTZ9)

Honolulu Harbor, Pier 39, was Hawaii’s first Foreign Trade Zone site.

Current site: FTZ9, Pier 2, Honolulu Harbor.

FTZ9 sites also include Campbell Industrial Park, Mililani Tech Park, Maui, Hilo, and Natural Energy Laboratory of Hawaii Authority (NELHA).

Source: FTZ9

SURFACE TRANSPORTATION BOARD (STB)TARIFF AUTHORITY

“The STB would only have tariff authority over carriers involved in US noncontiguous domestic marine traffic.  For example, STB would have authority over carriers operating between Hawaii and the US 48 states.

The STB would not have authority over Hawaiian inter-island carriers, traffic between the noncontiguous states or territories themselves (ex: Alaska to Hawaii, or Guam to Hawaii), or international traffic (ex: Canada to Hawaii).”

Source: STB. January 17, 2014

SURFACE TRANSPORTATION BOARD (STB)CARRIER TARIFF AUTHORITY

The carriers: SaltChuk, Young Brothers, Old Oahu Tug Services,

and any others, would only be subject to STB tariff filing requirements to the extent they publish rates, or carry

freight, between any noncontiguous state or territory and the 48 US states.

Source: STB. January 17, 2014

The Hawaii Public Utilities Commission regulates four water carriers:

1. Young Brothers, Limited (“Young Brothers”),

2. Sea Link of Hawaii, Inc. (“Sea Link”),

3. Hone Heke Corporation (“Hone Heke”), and

4. Pasha Hawaii Transport Lines LLC (“Pasha”)

Source: Hawaii Public Utilities Commission

THE HAWAII PUBLIC UTILITIES COMMISSION WATER CARRIER TARIFF AUTHORITY

MATSON NAVIGATIONHORIZON LINES

MATSON NAVIGATION - Dedicated Neighbor Island FleetMatson's frequent, reliable schedules extend to each of the major ports of Hawaii's Neighbor Islands: Kahului, Maui; Nawiliwili, Kauai; and Hilo and Kawaihae on the Big Island of Hawaii. Service is also available to the islands of Molokai and Lanai.

 HORIZON LINES – Sailing and service from Honolulu Harbor to the Neighbor Islands.

MATSON NAVIGATIONHORIZON LINES

HAVE NO VALID WATER CARRIER TARIFFS TO PROVIDE HARBOR-TO-

HARBOR OR PORT-TO-PORT INTER-ISLAND SERVICE WITHIN

PORT HAWAII

FILED WITH

THE HAWAII PUBLIC UTILITIES COMMISSION

MATSON NAVIGATIONHORIZON LINES

Any and All Tariffs filed With The Surface Transportation Board (STB) to provide Harbor-to-Harbor or Port-to-Port water carrier transportation for Hawaiian Inter-Island Service have No Force And Effect. The STB has no jurisdiction for Harbor-to-Harbor or Port-to-Port water carrier transportation within Port Hawaii.

Please call and confirm with:

1.The Surface Transportation Board2.HIDOT, Harbors Division3.Shipping Agents for Matson4.Shipping Agents for Horizon

HAWAII PUBLIC UTILITIES COMMISSION

PASHA HAWAII TRANSPORT LINES, LLC

DOCKET NO. 2009-0059 ORDER NO. 31766

Affirms Pasha Hawaii Transport Lines, LLC's Interim Authority to Operate through December 31, 2013.

Dismisses without Prejudice Pasha Hawaii Transport Lines, LLC's Application for A Certificate of Public Convenience and Necessity.

DOCKET STATUS: CLOSED

WATER CARRIERS AUTHORIZED TO PROVIDE TRANSPORTATION BETWEEN PORTS AND

HARBORS WITHIN PORT HAWAII as of January 20, 2014

Young Brothers, Limited (“Young Brothers”)

Sea Link of Hawaii, Inc. (“Sea Link”)

Hone Heke Corporation (“Hone Heke”)