For more than a decade, the state has been talking about developing a 90-acre shipping terminal at Kapalama.

It’s about to get launched in a big way.

The plan to modernize Honolulu Harbor now includes space for a third shipper.

Tote Maritime announced last month it was eyeing entry into the market.

But it needed harbor space, and its competition Matson and Pasha hadn't been keen on sharing space.

Many feared another delay on the harbor upgrades at Kapalama.

But it appears the logjam has been broken, with a game of musical chairs.

The governor hopes, the added completion, will lead to lower prices.

"Harbor modernization is all about reducing long-term costs for the consumer. The current setup in Honolulu Harbor is very inefficient. Matson’s operations are divided. The new modernization plan allows us to consolidate all of Matson's operations. It creates new space with Pasha, and with Tote coming in, provides more capability to unload containers in Piers 1 and 2,"  Gov. David Ige said. 

Transportation officials are glad the deal with harbor users will allow the Kapalama improvements to move ahead, and that Tote will get a home in the harbor.

"They are going to be a large operation and they wanted 40 acres and  40 acres is hard to come by,” said Transportation Director Ford Fuchigami.

The state agreed on a deal with Hawaii Stevedores which handles APL and NYK.

They operate out of Pier 1 and 2 and join Pasha at Kapalama, and Tote will then move into their space.

Matson will then keep with the plan to expand in Pasha's space.

Matson Senior Vice President Vic Angoco said the company believes the deal is fair to all users. It has worked with the state for the last decade on the harbor improvement plan.

The state has just awarded the contract to begin construction at Kapalama to Kiewit. Work is expected to get underway in the first part of next year.