The first segment of the Skyline project was opened in June 2024, following considerable delays. Credit: Brave Behind the Lenz/Shutterstock.

Hitachi Rail Honolulu Joint Venture (JV) has filed a lawsuit against Honolulu Authority for Rapid Transportation (HART) and the City and County of Honolulu, seeking at least $324m in damages for breach of contract and unjust enrichment.

The Skyline rail project has faced numerous delays and mismanagement issues, leading to increased costs for Hitachi Rail.

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The lawsuit alleged that the defendants’ mismanagement included the installation of incompatible track by another contractor and directed Hitachi Rail to commence a costly 18-month operations and maintenance workforce mobilisation prematurely.

Hitachi Rail claimed that these actions have resulted in significant financial losses for the company.

Joey Manahan, HART’s director of government relations and public involvement, said: “At this time we are not able to discuss or comment on the active claim,” in a statement released to local media.

The Skyline project, intended to be the first fully automated, driverless light rail system in the US, has been troubled with coordination issues among multiple contractors.

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HART chose to allocate the design and construction of the project among multiple contractors instead of a single design-build contractor to handle the design, construction, supply of passenger vehicles, and operation and maintenance of the entire Skyline system.

This approach necessitated proficient and efficient coordination from HART. However, HART and its contractors failed to perform the work in a timely and coordinated manner leading to repeated delays for Hitachi Rail, according to the claim.

Independent oversight consultant Hill International has corroborated the issues raised by Hitachi Rail in its lawsuit.

Despite efforts to resolve the dispute out of court, Hitachi Rail has found it necessary to pursue legal action to seek compensation for the damages caused by HART’s mismanagement, it said.

The Skyline project’s first segment opened in June 2024, after significant delays, and further completion dates for the remaining segments have been pushed back.

In August last year, HART awarded a $1.66bn contract to Tutor Perini (TPC) for the design and construction of the next segment of the city’s Skyline rail project. This includes a three-mile elevated guideway with six stations through downtown Honolulu.