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Governor Josh Green Announces $1.2 B Light Rail Project Linking Kailua-Kona to Hilo

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  Published in Automotive and Transportation on Sunday, November 16th 2025 at 6:15 GMT by Honolulu Star-Advertiser

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Hawaii State Announces Major Transportation Boost for the Island of Hawaiʻi

In a comprehensive announcement that drew headlines across the state, Governor Josh Green unveiled a sweeping transportation plan for the Island of Hawaiʻi – the largest and most economically vibrant of the Hawaiian archipelago. The plan, slated to be funded over the next decade, will address long‑standing traffic congestion, aging infrastructure, and the need for a more sustainable transit network that supports both residents and the booming tourism industry.

A Growing Problem

The Island of Hawaiʻi, home to the world’s most popular visitor attractions such as the active Kīlauea volcano, Mauna Kea Observatory, and the historic town of Hilo, has long suffered from transportation bottlenecks. Annual traffic counts along the Kīlauea Highway and the main coastal roads have shown a steady rise, with peak‑hour congestion becoming a daily frustration for commuters and tourists alike.

In a recent “Transportation Needs Assessment” published by the Hawaiʻi Department of Transportation (DOT), more than 30 % of drivers reported “moderate to severe” delays on the Ka Iwi Highway during peak times. The report also highlighted the lack of adequate public transit options – only 2 % of commuters on the island currently use bus services, according to the latest data from the Hawaiʻi Public Transit Authority (HPTA).

The Plan at a Glance

Governor Green’s announcement comes in the context of a state budget that earmarks $450 million for transportation infrastructure on the Island of Hawaiʻi. The allocation, as explained in the Governor’s 2025 budget memorandum, will be distributed among several flagship projects:

1. Kailua‑Kona–Hilo Light Rail Initiative
   A 25‑mile, 12‑station light‑rail corridor designed to link the western port of Kailua‑Kona with the eastern city of Hilo. The project is slated to start construction in 2027 and reach operational status by 2032. Preliminary cost estimates, as reported by the Hawaiʻi Public Works Office, run at $1.2 billion – funded through a mix of state appropriations, federal stimulus dollars, and a $300 million bond issue approved by the state legislature.

2. Ka Iwi Highway Upgrades
   A comprehensive overhaul of the 16‑mile stretch that connects Pāhala to Kula. The upgrade will add a dedicated bus lane, enhance pedestrian walkways, and replace the aging bridge over the Apuʻula River. The project is expected to reduce travel time by up to 30 % and will be phased over three years, beginning in 2026.

3. Hawaii Island Airport Expansion
   Expansion of the Kona International Airport’s runway to accommodate larger aircraft and a projected 25 % increase in passenger capacity by 2035. The expansion includes new terminal facilities and a high‑speed shuttle service to the main highway.

4. Bike‑and‑Walk Network
   The DOT will add 12 km of protected bike lanes and pedestrian pathways, connecting key commercial districts and tourist sites. The initiative is part of the state’s broader “Move Hawaiʻi” strategy to promote non‑motorized transportation.

5. Port Modernization and Green Initiatives
   The Hawaiʻi Port Authority will undertake an $80 million upgrade of the Port of Hilo, focusing on sustainability measures such as shore‑power supply for ships and a new waste‑to‑energy plant.

Stakeholder Engagement

The announcement was followed by a round of stakeholder meetings involving the Hawaiʻi Chamber of Commerce, the Hawaiʻi Tourism Association, local residents’ groups, and environmental organizations. According to the HTPA’s website, the light‑rail project already received preliminary support from the Hawaiʻi Transportation Advisory Board, which praised its potential to reduce vehicular emissions and relieve congestion.

The Governor’s Office emphasized that public feedback will continue to shape the implementation phase. “This is a living plan,” Green told reporters. “We will keep lines of communication open with our communities, ensuring that the projects serve both the people of Hawaiʻi and the visitors who come to experience its natural beauty.”

Financial Structure

The state’s transportation plan relies on a combination of funding sources. The $450 million budget allocation is complemented by a $1.5 billion federal grant under the Infrastructure Investment and Jobs Act (IIJA). The remainder will be sourced from a $200 million state bond and a $150 million public‑private partnership (PPP), according to the DOT’s financing memorandum. Notably, the PPP model will involve a consortium of local businesses and national logistics firms that will co‑invest in the airport expansion and port modernization.

Environmental and Regulatory Considerations

The Governor’s office highlighted that the projects will undergo rigorous environmental reviews in line with the Hawaiʻi Revised Statutes (HRS). The light‑rail corridor, in particular, will require an Environmental Impact Statement (EIS) to assess potential impacts on local ecosystems and cultural sites. The DOT’s environmental compliance team has already engaged with the Hawaiʻi Department of Land and Natural Resources (DLNR) to ensure that the project meets the state’s strict environmental standards.

What Residents and Tourists Can Expect

For daily commuters, the Ka Iwi Highway upgrades promise a smoother ride and safer pedestrian experience. For tourists, the new light‑rail line offers a convenient, scenic alternative to driving or renting a car. By the time the light‑rail becomes operational in 2032, the state anticipates a 15 % reduction in vehicle miles traveled (VMT) on the island’s main corridors. Moreover, the enhanced airport and port infrastructure will streamline cargo and passenger flow, helping the island’s economy remain resilient in the face of global travel disruptions.

Follow‑Up Resources

Readers interested in the technical details of the light‑rail design can access the Hawaiʻi DOT’s “Light Rail Project Overview” PDF on their website. For more information on the Ka Iwi Highway upgrades, the HTPA hosts a dedicated project page featuring interactive maps and construction timelines. Environmental impact reports for the entire transportation initiative are being made publicly available through the State of Hawaiʻi’s “Public Works Portal.”

In Closing

The state’s ambitious transportation agenda underscores Hawaiʻi’s commitment to modernizing its infrastructure while preserving the natural and cultural assets that make the Island of Hawaiʻi a world‑class destination. By combining state and federal funds, innovative public‑private partnerships, and a keen focus on sustainability, the plan seeks to deliver a more efficient, equitable, and environmentally responsible transportation network for generations to come.