Young Brothers today announced it has received approval by the Hawaii Public Utilities Commission for its first significant rate increase in six years. The 4.3% rate increase is critical to allow Young Brothers to reinvest in its business and upgrade equipment to continue providing essential interisland cargo transport services.
Young Brothers makes over 1,250 sailings each year between the Hawaiian Islands. Tugs, barges, containers, lifts, generators and other equipment experience significant wear and tear due to usage and from the highly corrosive saltwater.
“We are grateful to the Consumer Advocate for their work and the Hawaiʻi Public Utilities Commission for approving our request for a rate increase,” said Joe Boivin, president of Young Brothers. “By nature, the business of being an inter-island water-carrier in Hawaii is very capital intensive and requires constant upgrading of equipment to meet or exceed safety requirements and customer needs. The increase in rates will enable us, among other things, to replace four of our six towing tugs, which averaged 44 years old.”
The four new tugs will substantially reduce the average fleet age, provide additional safety features for crews, improve fuel efficiency, reduce costs to customers and reduce carbon emissions, providing for a cleaner Hawaii.
The first two tugs, na Kapena Jack Young and Raymond Alapai, entered service in 2018. Na Kapena George Panui and Bob Purdy will enter service in mid-2019. All four tugs are named after former Young Brothers’ captains and will transport cargo between the Hawaiian Islands for the next 30+ years.
Young Brothers plays a vital role in Hawaii as the water carrier responsible for transporting all cargo that originates and ends in the state. It is also the only water carrier to serve all islands, including Lanai and Molokai, and transport all types of cargo.