A new water ferry service between Kalaeloa and Aloha Tower likely will be launched at least one month later than its original July target, Mayor Mufi Hannemann said.

But the good news is that plans for a one-year pilot project are steaming full speed ahead because the city now has a clear indication that federal money the project depends on will soon be released, he said last week.

"Basically, all systems are go," Hannemann said.

The Federal Transit Administration had questioned the lack of parking for ferry commuters at the Kalaeloa terminal, Barbers Point Harbor.

But the FTA accepted the city's application for a $5 million grant, after the city assured that parking will still be sought nearby.

"While it is not yet awarded, this is recognition that FTA sees no obstacles at this point to the grant being awarded," FTA planner Ted Matley said in a message to city transportation officials.

Hannemann said it's a clear signal that the money will be coming.

"If there was going to be a show-stopper, they would have flagged it and said, 'keep working on it,' " Hannemann said.

The next step will be to lease boats for the service, he said. The plan calls for ferries to make three trips in each direction per day.

A key feature of the ferry plan is that its terminals will be linked to new shuttle bus routes serving Wai'anae, Makakilo, Kapolei, Waikiki and the University of Hawai'i-Manoa.

But the FTA and some City Council members had questioned whether that would only draw commuters who already take buses, rather than attracting people who would otherwise drive cars to and from work.

The lack of parking at the harbor "will severely limit the ability of the ferry service to appeal to a broad segment of the commuting public," the FTA said earlier.

But that would require paving, security and other improvements at the harbor.

"Insofar as this is a demonstration project, such a large investment would not be prudent until such time as we can fully evaluate the operational and financial feasibility of the ferry service," city transit officials responded.

The city and its ferry contractor, Hornblower Marine Services, will continue to seek off-site parking nearby, officials said.

There's no firm date for launching the ferries, but it won't happen in July as originally planned, Hannemann said.

"Because of these hiccups, we've lost some time," he said. "We may lose a month or so in the process, but it is coming."

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com.