The city's delayed commuter ferry program could begin by late August, now that a key federal grant is being released, officials said yesterday.

Two vessels from the Seattle area have been selected for the new system, which will run between Barbers Point Harbor and Aloha Tower.

The city is also studying whether a ferry stop can be added at Iroqouis Point, city Transportation Director Melvin Kaku said.

The twin 72-foot aluminum catamarans — the Rachel Marie and the Melissa Anne — are to undergo engine and cosmetic overhauls next week so they'll be in shipshape when they arrive in Honolulu, officials said.

The boats, which can carry 149 passengers each, have been used in other ferry operations in the Seattle area and Alaska, project manager Darin Mar said. The vessels are to be transported here on a barge in August.

A $3 million federal grant will pay for one year of ferry service as a demonstration project, and another $2 million is available for related infrastructure improvements, Kaku said.

The plan calls for ferries to make three trips in each direction per day.

Terminals will be linked to new shuttle bus routes serving Wai'anae, Makakilo, Kapolei, Waikiki and the University of Hawai'i-Manoa.

A single bus fare — currently adults pay $2 for a one-way trip — would pay for the ferry and bus rides at each end. Monthly and annual bus passes also would be honored on the ferry.

The city had hoped to launch the service in July, but it was delayed after federal officials and City Council members raised various questions about the plan.

The Federal Transit Administration worried that a 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 city hopes parking can be leased nearby.

U.S. Sen. Daniel K. Inouye said the ferry won't solve O'ahu's traffic woes, but will give some commuters an important new choice.

"There is no silver bullet to ease traffic congestion coming in from the Leeward Coast to Downtown Honolulu, and then on the University of Hawai'i and Waikiki," he said. "This ferry demonstration provides one option during the morning and afternoon rush hours."

U.S. Rep. Neil Abercrombie said the one-year demonstration "could very well produce a permanent ferry system to complement the proposed rail transit system, which I will continue to support on the federal level."

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com.