The State Public Utilities Commission has granted Young Brothers, the state’s primary interisland barge transport company, a rate increase of 46%, or around $27 million, with conditions.
One provision important to the Big Island is that Young Brothers must restore the full “pre-COVID” sailing schedule by Sept. 1, 2020, which will restore an additional sailing from the ports of Hilo and Kahului to Honolulu. Young Brothers cancelled the second Hilo call in April to alleviate an impending cash crisis brought on by a 30% drop in cargo volumes due to the COVID-19 pandemic. The company said it was on track to lose $25 million this year. The company said it had already implemented numerous cost-cutting measures.
The PUC’s decision also included the following conditions:
- Young Brothers cannot raise rate for at least 12 months
- Young Brothers must provide 6-months advance notice to the PUC and State if the Company decides to discontinue regulated interisland service in the future;
- Young Brothers must develop and implement a comprehensive customer service plan; and
- the company will undergo a financial and management audit by an independent party selected by the PUC.
Young Brothers had told the PUC that it might have to discontinue service if it did not get a rate increase by Aug. 17.
For the full 80-page order, click here.
