Pier 29 at Honolulu Harbor has been more like an empty lot for the past two years.

First used as a yard for Matson Navigation Co.’s automobile shipments, the pier was later used by Aloha Cargo Transport for containers of goods coming in from the Pacific Northwest.

Six months of wear and tear, and the pier’s foundation began to sink. It was never designed for Aloha Cargo Transport’s equipment, and the structural failures rendered the yard unusable.

"Their heavy equipment in picking up the containers and stacking them was cutting through the pavement," said Michael Formby, deputy director of the Harbors Division for the state Department of Transportation. "It became unstable and unsafe for the workers."

It will be another two years, but Pier 29 will be getting the upgrade it needs to be usable again after the state received a $24.5 million commitment in federal stimulus funding.

The money comes from the Transportation Investment Generating Economic Recovery, or TIGER, discretionary grant program. There were $60 billion worth of requests nationwide, competing for a $1.5 billion pot.

"We were one of 70 or so projects that were awarded, and one of five harbor projects that won TIGER money," said Brennon Morioka, state Department of Transportation director.

The work, contracted to Watts Constructors, will include demolition and removal of existing pavement and utilities, and placing sturdier cement concrete that would be reinforced with rebar, as well as constructing systems for drainage, water, sewer and electricity.

It will add about 12 acres of upgraded cargo yard and add up to 30 years of usage to the pier, Formby said. Currently, Aloha Cargo Transport has six acres, sandwiched between Piers 1 and 2.

The pier still has remnants of patch jobs from before the state decided to shut it down. Parts of the pavement are still cracked and sunk in.

The contracted work is expected to bring in about 300 jobs. Construction begins in October, and the pier should be in use by September 2012.

"This project is going to improve operations at the port and improve quality of life. … It will take trucks off Nimitz Highway," said David Matsuda, administrator for the Maritime Administration, under the U.S. Department of Transportation. "Maritime transportation creates a lifeline to Hawaii."