Design and Construction Industry Professionals Briefed on Rail Transit

Project Will Create 11,000 Jobs Annually

Several hundred representatives from the design and construction industry attended a contractors’ workshop today to learn about Honolulu’s rail transit project and opportunities for work.

Construction Workshop:  An Infrastructure Contractors’ Open House provided information on the transit alignment and stations; contract packaging and procurement processes; guideway components and construction; and maintenance facility components and construction.  Attendees also had the opportunity to meet individually with members of the project team.

Mayor Mufi Hannemann stressed the opportunities for large and small companies to collaborate.  “The magnitude of this nearly $4 billion project means that we will have to rely on the talents and resources of firms that come to us from the national and international arenas.  We will also depend on homegrown talent and expertise and our proven construction industry workforce.  Large firms bring with them capacity and new perspectives.  Smaller companies come to the table with first hand knowledge of Honolulu and incomparable boots on the ground experience.  Combining these resources makes for powerful partnerships which will serve Honolulu’s rail transit well.”

Current estimates are that construction of the initial 20 miles of the transit project will result in 4,700 construction jobs annually.  On a yearly basis 11,000 direct and indirect jobs will be created, for a total of 90,000 person years of employment.

The first phase of the rail alignment runs for 20 miles, from East Kapolei to Ala Moana Center.  The initial guideway construction segment will be contracted on a design-build basis and the 20 mile project will be contracted in segments as follows:

§       West Oahu contract;

§       Farrington contract;

§       Kamehameha contract;

§       Salt Lake contract;

§       City Center contract.

Should funding become available, the Hannemann administration intends to move forward with construction of a spur to Honolulu International Airport and that would also be a separate contract. 

A design-build contract will also be awarded for construction of the maintenance yard and shop facility. 

Contracts for the 19 stations along the initial route will be awarded on a design-bid-build basis.  Among the other contracts to be awarded are those for professional services, systems installation and supply contracts.

Contract values will range from approximately $20 million to $350 million, depending on the particular contract.  Packaging is being done in order to provide as much opportunity as possible for firms large and small.

“In 1992, contract awards were so large that many firms did not have the chance to participate,” said Mayor Hannemann.  “This time around we want to be sure that there is participation at all levels and we’ve designed the bid packages so that firms of all sizes have the opportunity to work on rail transit,” added the Mayor.  “I’m hopeful that with today’s event, firms will begin forming teams to bid for work.  Given the economic slow down nationally and here in Hawaii, I believe this project will bring an economic shot in the arm to Honolulu,” said Hannemann.  “Rail transit will enhance our mobility, protect our environment and improve quality of life for those of us who now waste productive hours stuck in gridlock.”

Honolulu’s rail transit project will cost approximately $3.7 billion.  Groundbreaking is scheduled for late next year.