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The Honolulu Advertiser
Posted on: Tuesday, April 28, 2009

OBJECTIONS RAISED
Carrier's shipping plans called threat to Isle service

By Rick Daysog
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Young Brothers says Pasha Hawaii Transport Line LLC's plans to begin interisland shipping service along certain routes will create an "unlevel playing field." Young has asked to take part in hearings on Pasha's application to provide service.

ADVERTISER LIBRARY PHOTO | October 2007

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Hawaii news photo - The Honolulu Advertiser

Pasha Hawaii last month filed an application with the state Public Utilities Commission to offer shipping service to Kahului, Maui, and Hilo, Hawai'i, from Honolulu.

ADVERTISER LIBRARY PHOTO | 2005

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Young Brothers said Pasha Hawaii Transport Lines LLC's plans to launch interisland cargo service will threaten the level of shipping service to all islands.

Young Brothers filed papers with the state Public Utilities Commission yesterday requesting "intervenor" status that will allow it to take part in PUC hearings on Pasha's application to provide interisland service.

Young Brothers said Pasha's entry will create an "unlevel playing field" because the company wants to serve the Honolulu to Hilo and Kahului routes while ignoring smaller markets such as Moloka'i, Lana'i and Kawaihae on the Big Island.

"Pasha's application, if approved, will result in an unlevel playing field with Pasha obtaining an unfair advantage in the regulated interisland/intrastate marine freight marketplace," said Glenn Hong, president and CEO of Young Brothers.

"As a result, it will change the economics of Young Brothers' statewide service and threaten our ability to afford our current level of service to all islands."

Pasha Hawaii filed an application with the state Public Utilities Commission last month to provide service between Honolulu, Kahului and Hilo using its 579-foot ship the Jean Anne.

Pasha Hawaii currently provides cargo service from the West Coast to Honolulu, Hilo and Kahului. But the company does not have regulatory approval to pick up and drop off shipments among the three local ports.

In its PUC filing, Pasha said it plans to make interisland shipments every 14 days.

Young Brothers, the dominant interisland carrier, said allowing Pasha to "cherry pick" the most profitable routes will hurt customers and business that depend on regular interisland service.

Under its certificate with the PUC, Young Brothers said it is obligated to serve the public interest by providing frequent, universal service to all users on all islands.

Young Brothers, which employs 360 workers, currently operates 12 regulated, round-trip sailings weekly from its Honolulu hub. They include two weekly trips to Hilo, two to Kawaihae, three to Kahului, two to Nawiliwili on Kaua'i, two to Kaunakakai on Moloka'i, and one weekly shipment to Lana'i.

"We've been providing service to Hawai'i — and only Hawai'i — for 110 years and we take our commitment very seriously to serve the entire state," Hong said.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.