A city-appointed panel today selected steel wheels on rail as the technology that will be used on Honolulu's planned $3.7 billion fixed guideway transit system.

The group voted 4-1 in favor of steel rail technology with one member favoring rubber tire on concrete technology. The other two options considered were monorail and magnetic levitation technology.

Mayor Mufi Hannemann hopes to break ground on the project in 2009, with the first segment starting service between East Kapolei and Waipahu in 2012.

An official bid solicitation won't be made for at least a year.

Hanneman has said the Honolulu City Council should adopt the panel's technology recommendation.

The steel wheels on steel rail generate less friction than rubber on concrete and last longer, however they typically have lower acceleration and braking performance than rubber on concrete. Steel is also relatively noisy compared with other rail technology.

The vendors proposing to use steel wheels on steel rail are ALSTOM Transport, AnsaldoBreda Transportation Inc., Bombardier Transportation, Mitsubishi-Sumitomo and Siemens Transportation Systems Inc.