Costco is building a standalone gas station in Kapālama Kai, and it has nothing to do with a new warehouse. Construction started in October 2025 on a parcel between Colburn Street and Dillingham Boulevard. The station is expected to open in 2027 with 20 fueling islands and 40 pumps.
Kamehameha Schools owns the land and confirmed the project. It's part of 'Ōlauniu at Kapālama Kai, a nine-acre redevelopment of four existing buildings. The full development adds retail, dining, office space, and gathering areas. Honolulu planning documents put the project cost at over $13.5 million.
The station sits about a mile from the Costco warehouse and gas station in Iwilei. The new location gives Kapālama drivers a fueling option without the warehouse congestion on Iwilei Road. Kamehameha Schools called it a "hub of connectivity" with improved traffic circulation for the district.
This is part of a broader Costco strategy. The retailer had 747 gas stations worldwide at the end of fiscal 2025, up from 719 the year before. Fuel accounted for 10% of net sales. Standalone stations without attached warehouses are new for Costco. The first U.S. standalone location is planned for Mission Viejo, California. Honolulu is among the first markets to get one.
For businesses and residents in the Kapālama corridor, cheaper fuel is the obvious near-term benefit. Costco's gas prices run consistently below market, and adding 40 pumps to a Dillingham stretch that's light on competition should keep prices in check for the surrounding area. Watch the broader 'Ōlauniu development too. New retail and dining around a high-traffic fueling hub tends to reshape where people stop on their commutes.