Hawaii Superferry unofficial blog

What's up with the Ferries?

2011-09-19T11:50:00.000-07:00

http://hamptonroads.com/2011/09/us-weighs-four-bids-hawaiian-superferries

■ 13 SEPTEMBER 2011 | 1:45 PM

U.S. weighs four bids on Hawaiian superferries

The Alakai and Huakai, two Hawaiian superferries docked at Lambert’s Point , may soon be changing hands.

The U.S. Maritime Administration, which put the two vessels up for sale on an “as is, where is” basis in late June, has received four bids.

They were due by 5 p.m. July 20.

The administration is “working expeditiously with bidders and other interested parties in evaluating its options, with a goal of maximizing the government’s return from these vessels,” according to a spokeswoman.

The June 20 sale notice in the Federal Register made it clear the ferries would not be given away.

The administration reserved “the right to reject any and all bids and to seek additional bids from the bidders and any other interested parties.”

The plan was to sell the ferries together – they would be sold separately only if they could be sold at the same time, according to the notice.

Also required: cash sale or owner-procured financing, plus a $500,000 non-refundable deposit for each ferry.

The administration took possession of the ferries in July 2009 after a bankruptcy judge ruled that the owner – Hawaii Superferry Inc. – could abandon them to lenders, owed nearly $159 million. The administration, which guaranteed the loans, moved them to Norfolk. -- Robert McCabe

Damn, just realized something...

2011-08-11T21:00:00.000-07:00

This "unofficial" blog outlasted the official entity...

4 Cheap Offers, No Deal, MARAD ain't Desperate

2011-08-11T20:48:00.000-07:00

Best review of the news we have seen from Kyle at DMZ Hawai'i:

Source: http://www.dmzhawaii.org/?p=9268

Taxpayers Stuck With Unsold Ferries in Default

August 10, 2011 by kyle

Bloomberg published an article about the wasteful Maritime Administration (MARAD) loan guarantee program, which became the reluctant owner of two high-speed ferry ships after the Hawaii Superferry went bankrupt in 2009:

Two passenger ferries sit at a dock in Norfolk, Virginia, waiting for someone to take them off the government’s hands.
The U.S. Maritime Administration has taken bids for them in an attempt to recover some of the $138 million in taxpayer money paid to cover defaults on loans it guaranteed for the owners, Hawaii Superferry Inc. The company sought bankruptcy protection and defaulted in 2009.
The unwanted ferries are reminders of the defaults and oversight problems reported as recently as December in the so- called Title XI program as vessel owners have won $798 million in new loan guarantees this year, the most since 2001. As it considers two applications for an additional $712 million in guarantees, the maritime agency is trying to recover what it can on $311 million paid out to cover six defaults since 2008.

After protests and legal challenges disrupted Hawaii Superferry operations, the Hawai’i Supreme Court finally ruled that the special legislation retroactively exempting the Superferry from the state’s environmental review laws was illegal. However, it was the company’s arrogance and collusion with state officials to circumvent the environmental review process that doomed the venture from the start. As the article points out, even down to the rationale for the MARAD loan guarantee program, the Superferry project was driven by politics and special interests:

The program’s bipartisan supporters, such as former Senator Trent Lott, a MississippiRepublican, and Democratic Senator Daniel Inouye of Hawaii, credit Title XI with creating jobs and supporting national defense and the U.S. commercial fleet. The U.S. fleet shrank from 17 percent of the world’s oceangoing merchant ships in 1960 to less than 1 percent in 2008, according to the Bureau of Transportation Statistics.
Five guarantees approved since President Barack Obama took office in 2009 will create 8,000 jobs, maritime agency Administrator David Matsuda said in an e-mail.
The program has survived elimination attempts because supporters in Congress “logroll” to keep funding it, said Chris Edwards, director of tax policy studies at theCato Institute. “Some of these ships are built in their districts, and they’ll fight to the death for it,” Edwards said in an interview. His Washington-based group advocates reducing government spending and lower taxes.
[...]
Politics drove decisions to give guarantees to some companies that eventually defaulted, Clayton Cook, the maritime agency’s general counsel from 1970 through 1973, said in an interview.
He cited American Classic Voyages Co., chaired by billionaire real-estate investor Sam Zell, which received a $1.1 billion guarantee for two cruise ships under the banner of Project America. Five subsidiaries of the company accounted for $330 million of the $490 million that defaults cost the government from 1993 through 2002.
Inouye sponsored a provision in a defense bill called the U.S. Flag Cruise Ship Pilot Project, he said at a hearing in 1999. The project gave American Classic Voyages exclusive rights to operate cruise ships in Hawaii, the company said in a Securities and Exchange Commission filing in 2000. The ships were to be built at Ingalls Shipbuilding in Pascagoula, Mississippi, Lott’s hometown. Lott declined to be interviewed.
American Classic Voyages filed for Chapter 11 bankruptcy in October 2001. The default cost taxpayers $187 million, according to the maritime agency.
Hawaii Connections
“The project, while proceeding with considerable difficulty, including delays and increased costs in construction, ultimately became a victim, like many other industries, of the September 11 attack on our nation,” Inouye said in a floor speech in 2003.
Inouye didn’t respond to a question about the default, saying in an e-mail that “loan-guarantee programs are one of the many ways that government can partner with the private sector to create jobs and expand the economy.”
Hawaii Superferry, chaired by former Navy Secretary John Lehman, spent up to $20,000 a year lobbying Congress, the maritime agency, the Environmental Protection Agency and other agencies on Title XI and “vessel financing issues” between 2004 and 2006, according to federal lobbying disclosures. The loan guarantees helped the firm finance the ferry purchases from shipbuilder Austal USA, based in Mobile, Alabama.
The Superferry’s default occurred because a Hawaii court ruled the state shouldn’t have let the company skip an environmental impact study, said William Schubert, maritime administrator from December 2001 to February 2005. “The people of Hawaii wanted the service, and when it went to the state Supreme Court it pretty much put an end to the program,” Schubert said in a phone interview.

The quote from Schubert is incorrect on a few ponts. Activists figured out early on that the Superferry business model was unprofitable. As Austal USA, the shipbuilder, pointed out to the Hawaii Superferry executives in the beginning, the ships on order were too large for the Hawai’i market. But they did meet military specifications, which in the end, paid off for Austal, who leveraged the Hawaii Superferry as a proof of concept to win a contract to supply Joint High Speed Vessels to the military. Some people from some islands may have wanted the Superferry. But many strongly opposed the project as another threat to the environment and sustainability. And Hawaii taxpayers were left holding the bag for $40 million in state harbor improvements that were never recovered from the company.

"As is, Where is" Two Fast Ferries for Sale, Cheap?

2011-06-20T21:32:00.001-07:00

Hot damn, when it rains it pours.

This is where we find out who benefits from them. Whoever hopes to buy them at pennies on the dollar benefits from all the other losses:

Source: http://frwebgate3.access.gpo.gov/cgi-bin/TEXTgate.cgi?WAISdocID=N2BQil%2F0%2F1%2F0&WAISaction=retrieve

[Federal Register: June 20, 2011 (Volume 76, Number 118)]

[Notices][Page 35941-35943]

From the Federal Register Online via GPO Access

[DOCID:fr20jn11-127]
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Maritime Administration

Offer for Public Sale of Two High Speed Vessels

AGENCY: Maritime Administration (MARAD),

Department of Transportation.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: MARAD is offering for public sale, on an ``as is, where is''
basis, two fast ferry vessels, ALAKAI, Official Number 1182234, and

HUAKAI, Official Number 1215902.

DATES: Bids may be submitted on or before 5 p.m. July 20, 2011.

FOR FURTHER INFORMATION CONTACT: David Heller, Office

of Shipyards and Marine Engineering, Maritime Administration,

1200 New Jersey Avenue, SE., Washington, DC 20590. Telephone:

(202) 366-1850; or e-mail David.Heller@dot.gov. Copies of this notice

may also be obtained from that office. An electronic copy of this

document may be downloaded from the Federal Register's home

page at: http://www.archives.gov and the Government Printing

Office's database at: http://www.access.gpo.gov/nara.

SUPPLEMENTARY INFORMATION: The Maritime Administration

(``MARAD''), an agency of the U.S. Department of Transportation,

is offering for public sale, on an ``as is, where is'' basis, two fast ferry

vessels, ALAKAI, Official Number 1182234, and HUAKAI, Official

Number 1215902 (each a ``Vessel'' and collectively, the ``Vessels'').

MARAD will warrant title to the Vessels and convey title free and

clear of all liens. The Vessels were previously owned by Hawaii

Superferry LLC and MARAD has obtained title through foreclosure.

The Vessels were built in Mobile, AL by Austal USA and are currently

berthed at Lambert's Point Dock, Norfolk, VA. Specifications for the

Vessels are set forth at the end of this notice (no guarantee or warranty

as to specifications is made by MARAD).

All bids must contain specific information on the offer price, details of

any financing for the purchase of the Vessels, timing of the closing of

the proposed transaction, affidavit stating that the bidder is not

affiliated with the former owner, Hawaii Superferry LLC, or any of its

officers, directors or significant equity owners, and any contigencies

that could affect the closing of the transaction. Bidders may be either

U.S. citizens or foreign citizens. However, because the Vessels are U.S.

flagged, any bidder who is a foreign citizen must be prepared to comply

promptly with the provisions of 46 U.S.C. 56101 and MARAD's

implementing regulations. Responsive and successful bids should

include the following components: (1) Purchase of both Vessels

(MARAD only will consider an offer for sale of a single Vessel if

concurrent sale of both Vessels to separate buyers can be arranged),

(2) monthly reimbursement of any lay-up costs for the Vessels between

the execution of a sale contract and closing of the sale, (3) purchase of

the Vessels on an ``as is, where is'' basis with MARAD only required to

warrant title to the Vessels and that they are free and clear of liens, and

(4) cash sale or owner-procured financing (proposals with MARAD

financing of the Vessels will not be considered).

The successful bidder will be required to submit a $500,000 deposit

for each Vessel. Deposits must be made by wire transfer or in the form

of a certified check, drawn on a U.S. bank and made payable to MARAD,

within five business days of the bidder being advised that its bid is
approved by the Maritime Administrator. The successful bid will be

considered non-responsive if the bid deposit is not received in the

required five business day time frame. The deposit is nonrefundable.

No interest will be paid on the deposit. The successful bidder's deposit

will be credited toward the bid offer. The successful bidder may not

assign its right to the Vessel without consent of MARAD.

The successful bidder will be required to sign the MARAD form vessel

sale contract that, among other provisions, incorporates all of the

requirements set forth in this notice.

MARAD reserves the right to reject any and all bids and to seek

additional bids from the bidders and any other interested parties.

Arrangements to inspect the Vessel must be made through MARAD.

All inspections will be at the bidder's own risk and expense. For

additional information or to arrange an inspection, please contact

Mr. David Heller at (202) 366-1850 or david.heller@dot.gov. Bids

and affidavits must be submitted by overnight courier to the Maritime

Administration, Office of Marine Financing, 1200 New Jersey Ave., SE.,

Room W23-432, Washington, DC 20590, Attention: Mr. Daniel Ladd,

by 5 p.m. 30 days from date of publication of this notice.

------------------------------------------------------------------------

By Order of the Maritime Administrator.

Dated: June 14, 2011.

Murray Bloom,
Acting Secretary, Maritime Administration.
[FR Doc. 2011-15147 Filed 6-17-11; 8:45 am]
BILLING CODE 4910-81-P

Aggressive Corrosion in Austal's Pride and Joy

2011-06-20T18:15:00.000-07:00

Was thinking about getting rid of this page just last week.

But wait!, the story never seems to die:

Source: http://www.bloomberg.com/news/2011-06-17/navy-finds-aggressive-corrosion-on-austal-s-combat-ship-1-.html

"Navy Finds ‘Aggressive’ Corrosion on New Ship"
By David Lerman and Tony Capaccio - Jun 17, 2011

The U.S. Navy has discovered “aggressive” corrosion in Austal Ltd. (ASB)’s first new combat ship designed for operating close to shore.

The corrosion is in the propulsion areas of the USS Independence, the Littoral Combat Ship built by the Mobile, Alabama-based subsidiary of Australia’s Austal and General Dynamics Corp. (GD)

“This could be a very serious setback,” said Norman Polmar, an independent naval analyst and author in Alexandria, Virginia. “If the ship develops a serious flaw, you’re not going to continue producing them.”

Permanent repair will require drydocking the ship and removing its “water jets,” a key component of the propulsion system, the Navy said in a written statement to congressional appropriations committees provided to Bloomberg News.

Aluminum-hulled ships such as Austal’s tend to rust faster than steel-hulled ships, Polmar said. “But I’m surprised it happened so early,” he said. “This ship is brand new.”

The corrosion discovery in a ship that was commissioned in January 2010 marks another blow to the Littoral Combat Ship program, planned to ultimately consist of 55 ships. In February, the Navy discovered another ship in the series, from another construction team, had a crack through the hull.

Close to Shore

The Littoral Combat ships are designed to operate closer to shore than the rest of the Navy's surface fleet. They would make up about 17 percent of the Navy’s planned 313-ship fleet. Missions include clearing mines, hunting submarines and providing humanitarian relief.

The Navy in December awarded contracts for as many as 10 Littoral Combat ships to each of two teams of builders, led by Lockheed Martin Corp. (LMT) and Austal.

Austal won a $465 million contract that could reach as much as $3.78 billion if all options are exercised, the Navy announcement said. Building all 55 ships will cost the Navy at least $37.4 billion, according to a Pentagon report released in April.

Officials were concerned about the potential for corrosion during construction of the ship because of “dissimilar metals,” particularly near the steel propulsion shafts, the Navy memo said.

Temporary repairs will allow the ship to operate safely in the interim, the Navy said. The Littoral Combat Ships are designed to last about 25 years. Each ship is expected to cost about $36.6 million a year to operate and support.

Two Versions

The Navy is buying two versions from two teams of builders. The other team consists of Bethesda, Maryland-based Lockheed and Marinette Marine Corp. of Marinette, Wisconsin.

The first Lockheed ship developed a crack as long as six inches through its hull during sea trials in February, prompting a Navy investigation of the design.

Calls to Austal and calls and e-mails to General Dynamics weren’t immediately returned.

The Austal ship is now in Mayport, Florida, undergoing additional testing, the Navy said in its statement. A permanent repair of the existing corrosion damage would be conducted next year, the Navy said.

The Navy statement did not provide an estimate of the cost of the repair work.

Don't Succeed, Try, Try Again

2011-01-21T19:45:00.000-08:00

HB191.DOC HB191 Status
Context: The purpose of this measure is to establish the Hawaii state ferry system ...a new chapter to be appropriately designated and to read as follows: "CHAPTER HAWAII STATE FERRY SYSTEM Definitions. As used ...in this chapter, unless the context indicates otherwise: "Authority" means the Hawaii state ferry system authority. "Department" means the department of transportation. ...Director" means the director of transportation. "Ferry system" means the Hawaii state ferry system. "Vessel" ...
Filesize: 26476
Electronic File Date: 1/20/2011 8:26:20 PM

Problems with the New Littoral Combat Ship Dual Contracts Plan

2010-11-04T01:16:00.000-07:00

Source: http://www.navytimes.com/news/2010/11/defense-navy-picks-both-lcs-designs-110310/

Navy asks Congress to buy both LCS designs
By Christopher P. Cavas - Staff writer Nov 3, 2010

Rival teams from Lockheed Martin and Austal USA have been waiting all year to see which of their designs would be chosen for the Navy’s littoral combat ship competition. Now, if the Navy gets permission from the lame-duck Congress, the winner could be both...

Source: http://www.informationdissemination.net/2010/11/inside-look-at-new-littoral-combat-ship.html

Thursday, November 4, 2010

Inside Look at the New Littoral Combat Ship Plan

Posted by Galrahn

...The new plan to build 10 of each hull type is said to come as an opportunity. Apparently the competition has produced favorable contract prices from both contractors, and as such it is either cost neutral, or potentially cost saving, to buy 20 ships under these two contracts over the entire Five-Year plan instead of 19 under the old plan.

Dual Award	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	Total
Marinette	1	1	2	2	2	2	20
Austal	1	1	2	2	2	2
Total	2	2	4	4	4	4

There are a few hurdles to the new plan though.

In order to go with the new plan, the Navy needs Senate and Congressional approval to change the acquisition strategy. There are already statements up on both Alabama Senator websites, Senator Shelby and Senator Sessions. As a senior member of the Senate Armed Services Committee, Senator Sessions appears to have spoken to Ray Mabus about this plan on Wednesday morning and filled in on the details, because the statement implies he has thrown his full support into the plan. Senator Shelby has yet to learn the details, and finishes his statement by having concerns he hopes to work out with the Navy as he learns more details. Neither Senator Kohl nor Senator-elect Johnson has posted a statement on this news.

Both shipyards would have to agree to the new plan, and it appears pretty obvious both would do it happily. On just the details as reported in the press, Austal shares soared up 20% and trading had to be halted. Fox11 in Wisconsin quoted Richard McCreary, the President and CEO of Marinette Marine, the deal "would be a very positive event." I also thought is was noteworthy that Tim Colton, a highly respected shipbuilding consultant well known for his very clever commentary on Navy shipbuilding responded tonight by saying "Amazing, and somewhat hard to believe!"

I agree with Tim Colton that this is very hard to believe, particularly when I started looking at the details of the plan. This plan clearly comes from somewhere, and I believe it comes from way up the civilian chain of command - and by that I mean it almost certainly comes directly from the White House. There is way too much industrial and political consideration in this acquisition strategy for it not to be politically driven, which suggests to me this approach represents the Obama administrations shipbuilding jobs program. Only by accepting it as an Obama administration jobs program can you explain the enormous and obvious flaw in the plan.

The Big Flaw

My primary problem with the new acquisition strategy is how the plan to build both ships does not address the problem of each ship class having a unique combat system. Prior to the Milestone B review, the Navy told Inside the Navy (subscription only):

The Navy will draw up total life-cycle cost estimates for both the Lockheed Martin and General Dynamics versions of the Littoral Combat Ship before the program goes before the Defense Acquisition Board this year for its Milestone B. review.

The service included the announcement in a response to a Government Accountability Office report that criticized LCS life-cycle estimates.

In the September 16, 2009 statement that announced the downselect acquisition strategy, the Navy stated the plan "reduces program ownership costs, and meets the spirit and intent of the Weapons System Acquisition Reform Act of 2009." With each class having unique combat systems, this statement is no longer accurate. By building both designs but not choosing a single combat system, the Littoral Combat Ship program builds a dozen orphan ships rather than just two for some future CNO, SECDEF, etc... to retire, sell, or sink early as a cost savings measure.

The qualification standard for a "hybrid sailor" is higher on the Littoral Combat Ship than on other vessels in the Navy, and the qualifications necessary for one combat system has nothing in common with the other combat system - meaning if the Navy buys both - "hybrid sailors" are not interchangeable among the two classes of Littoral Combat Ship without undertaking a new set of extensive (and expensive) qualifications. Building both hulls with different combat systems will cost the Navy a lot more in the long run than choosing a single combat system in a competition, and spending a little bit of money up front to standardize the combat system on both ships.

The Navy can afford to do this, because there is a dirty secret here that must be addressed anyway. You know that 30mm gun for the surface warfare mission module? Word in the CIC is that it does not work for either combat system right now on either ship, in fact it may not work well with the combat system on the LPDs either, as we discussed the other day. In order to integrate new weapon systems into the Littoral Combat Ship, for each new system extensive work will be required to insure the new system works with both of the combat systems. It will not take long before the Navy spends more money maintaining and integrating new technologies into both combat systems among 2 fleets of 12 ships than it would cost if the Navy just bit the bullet now and selected a single combat system for both ships.

Selecting a single combat system would still allow the Navy to proceed under the plan to build 10 copies of both versions of the ship, although the Navy would probably be forced to get out bids for a new contract to one of the shipbuilders. If the Navy was to select, for example, the AIS combat system from General Dynamics for both hulls, the Navy could then proceed by building the 2 ships in FY2010 and 2 ships in FY2011 as Austal versions while the combat system on the Lockheed Martin version of the ship was converted to the AIS system. With an Austal build rate of 2/2/2/2/1/1 over the next 5 years, the Navy would begin funding the Lockheed Martin version of the ship with Marinette in FY 2012 under a 2/2/3/3 acquisition plan. Such a plan would allow the Navy to build at the same rate 2/2/4/4/4/4 between FY10 - FY15 as under the new plan, but would standardize the combat system.

Failure to standardize the combat system will result in early retirements of one class of Littoral Combat Ships, because it will cost too much before the end of one of the ships hull life to maintain both classes, and some future DoD/Navy leader absolutely will retire ships early to save costs - that's a fact. How do we know? Because the expense of maintaining unique, uncommon systems on ships is the same criteria ADM Roughead and other Navy leaders have used to retire ships over the last decade!...

Source: http://cdrsalamander.blogspot.com/2010/11/lcs-choice-1-or-2-navy-answers-yes.html

Wednesday, November 03, 2010

LCS choice 1 or 2? Navy answers, "Yes!"

Posted by CDR Salamander

From the same Generation of leadership that gave us "Every Child Gets a Trophy" and turned the Navy Achievement Medal into an addendum to PCS orders - via NavyTimes,

The long-awaited decision on which competitor will win the Navy’s littoral combat ship competition is expected to be revealed Wednesday afternoon, and the answer will surprise most people.

The winner? Both teams.

Sources said the Navy, rather than selecting one team to build 10 ships, will instead award construction contracts to both Lockheed Martin and Austal USA to build 10 of their ships, for a total of 20 new LCS hulls.

One source said the ships will continue to be built with separate combat systems, rather than go through a time-consuming effort to install a common system on all the ships.

Really? Really?

I don't want to hear any more from these people about configuration control, systems commonality or gains from economies of scale. I don't want to hear them tell one more Commanding Officer that he needs to make hard choices.

LCS - a dog's breakfast of intellectual fail from CONOPS through production. Almost as bad as sending an XO to Court Martial for failing to implement something that doesn't exist.

If this pans out - it is only one thing; full-spectrum systemic fail.

Would someone make a d@mn decision. The right one would be to kill the entire program before it does more damage to our long-term Operational and Tactical capabilities ... but no ... punt the decision to others to deal with...

Hawaii Superferry’s Bankruptcy = US Navy Opportunity

2010-10-17T02:24:00.000-07:00

A good wrap-up article:

Source: http://www.defenseindustrydaily.com/Hawaiian-SuperFerry-Files-for-Bankruptcy-05472

14-Oct-2010 14:04 EDT

Hawaii Superferry
(click to view full)

In his April 6/09 discussion of the FY 2010 budget, Secretary of Defense Robert M. Gates said that the US military wanted to charter another 2 “JHSV-like” fast catamaran ships from 2009-2011, untilthe JHSV ships begin arriving. That meant JHSV-winner Austal would find its products competing once more with Incat, which has had 4 of its wave-piercing catamarans chartered by various American services. Their Swift wave-piercing catamaran is currently chartered by the Navy as HSV-2, just as the Austal-built Westpac Express is chartered by US Military Sealift Command for the Marines.

One obvious option was the Hawaiian Superferry catamarans, a larger pair of Austal-built ships that resemble the Westpac Express….

Alakai arrives
(click to view full)

Oct 10/10: The US Maritime Administration (MARAD) buys the 2 ferries for $25 million each at a US District Court auction in Norfolk, VA. MARAD was able to use its owed debts to cover the bid cost, and will now look to sell the ferries. The US Navy has expressed interest in buying them. Maritime Matters | Alabama Press-Register | Honolulu Star-Advertiser | KITV Honolulu | Virginia Pilot | Gannett’s Navy Times.

May 2010: The federal government sues to get title to the 2 vessels, in order to recoup its $150 million loan guarantees. The suit leads to the October 2010 auction.

Feb 11/10: The former Hawaii superferries Huakai and Alakai are pressed into service by the USA’s Maritime Administration (MARAD), in the wake of the disaster in Haiti. The ships are managed by Hornblower Marine Services (HMS), and the deployment is seen as an earl concept test of the similar JHSV design’s operations. Haiti’s lack of port infrastructure has not, to date, been a major problem for these ships. Maritime Executive magazine.

March 30/09: Hawaii Superferry files for Chapter 11 bankruptcy, as it reportedly has just $1 million in cash, and is facing a $2.9 million principal and interest payment on one of the ferry construction loans. MarineLog’s “Hawaii Superferry files for Chapter 11” explains the situation, and details the firm’s various creditors.

The US Maritime Administration (MARAD) is owed more than $135.7 million because of 2 loan guarantees under the Title XI program
Shipbuilder Austal USA is owed $22.9 million, as a 2nd mortgage, on construction fees
The state of Hawaii, which provided $40 million in harbor improvements, held the 3rd mortgage.
Superferry is also in default to Guggenheim Funding LLC for $51.7 million, related to a secured note in August 2007.
J.F. Lehman & Co., the controlling private investor in the project, put up $85.2 million of the $92.9 million issued in preferred stock. The firm was founded by former Secretary of the Navy John F. Lehman, and seems set to lose its entire investment.

Unsecured creditors listed in the bankruptcy petition are headed by:

The Harbors Division of State of Hawaii: disputed claim for $731,080
MTU: $544,653 for engine maintenance related services
Hornblower Marine Services: $113,685 for management fees and services
Austal USA: $78,198 for travel and labor for professional services

Well, we're almost done here...

2010-10-05T02:17:00.000-07:00

We're told MARAD had the winning bids of $25 million on each of the 2 Hawaii Superferries over and above what was already owed to MARAD.

Now, what does MARAD do with those 2 vessels?

Ferries went to Auction Yesterday?

2010-10-01T16:43:00.000-07:00

Source: http://maritimeprofessional.com/Blogs/The-Final-Word-with-Joseph-Keefe/September-2010/Shopping-at-DOT--What%E2%80%99s-in-Your-Wallet-.aspx

Global Maritime Analysis with Joseph Keefe > September 2010
"Shopping at DOT: What’s in Your Wallet?"

...The Real End of Title XI

A regular reader of this column sent me the DOT NOTICE OF PUBLIC AUCTION links for the sale of the vessels ALAKAI and HUAKAI and then added simply via E-mail, “You can get them for a penny above what is owed.” Before you start rifling through the sofa cushions for spare change, just know that Marad’s David Matsuda is on record as pledging to protect the government’s interests in the matter by matching any bid that does not equal the full amount owed. A Marad PAO confirmed that metric on Monday...

Click on the two vessel names above. They go to the classifieds placed a little more than a week ago for the auction of each of the vessels. Notice they were being auctioned separately... Waiting to hear who bought 'em and at what prices, no doubt different prices.

Dicus: Superferry - The "Non-issue" of Campaign, etc.

2010-09-01T17:35:00.000-07:00

Source: http://blogs.hawaiinewsnow.com/howard/2010/08/two-non-issues-of-the-gubernatorial-campaign.html

08/31/2010
"Two non-issues of the gubernatorial campaign"
by Howard Dicus (Superferry supporter)

It was a little weird to hear two perfectly intelligent men of substantial achievements who care deeply about Hawaii arguing over two complete non-issues in the debate Monday night.

Former Honolulu Mayor Mufi Hannemann and former Rep. Neil Abercrombie, in this and other debates, have discussed Hawaii Superferry and timeshare tourism. They might as well leave these topics on the table. I almost hate to bring this up because I enjoy amiable relations with both guys. And I hear their aides, spokeshumans and other impediments are increasingly temperamental as the campaign wears on. But I'm going to proceed anyhow. Vote against them if they can't take a joke.

Hawaii Superferry went broke, not merely because of the court challenges against it, but because its basic economic model was flawed. It would have required way more usage by the average resident than it could ever have reasonably counted on. I speak as a Superferry supporter who felt much of the opposition to it was invalid. I rode it once and really enjoyed it. I said at the time that the criticisms of it were more properly directed to other boats in the water that the same people have simply allowed to sail and proliferate. Yet it needed more revenue than it was ever going to get.

The ships are gone, sold off, and the company has died. Not only that, but both Hawaiian Airlines passenger service and Aloha Air Cargo service between the islands have improved a lot since Superferry "sank the island," as they said in the Master & Commander novels. Superferry's not coming back, so talking about it is kind of a waste of time at this point...

There you have it. But, we imagine there are some out there who still don't get it.

Also received the following comment today:

Doctor on a bike said...: My office looks right out on the Hawaii Superferries in Norfolk. They've been moved this morning (Sept. 1) and look to be ready to go somewhere.
To which we said...: BTW, if you go to here: http://www.marinetraffic.com/ais/
Set it to "Satellite," zoom in, and you can look down on the Alakai and Huakai and see they have been moved to a pier right next to the one they have been at.

Interesting story on 41M Austal vessels in Trinidad & Tobago

2010-08-26T21:36:00.000-07:00

Source: http://news.bn.gs/article.php?story=20100826164909100

"Trinidad and Tobago's new water taxis..."
Thursday, August 26 2010
Contributed by: ibalgobin

Water-Taxis “Paria Bullet” & “Trini Flash” undergoing sea-trials in Australia.The new Minister of Works and Transport, the Honourable Jack Austin Warner in his recently stated position has announced that he is seriously giving thought to divesting at least two (2) of our brand new Austal designed and built forty-one metre (41M) water-taxis already named “PARIA BULLET”, “TRINI FLASH”, “CALYPSO SPRINTER” and “CARNIVAL RUNNER”. This desire to want to sell-off “surplus” state assets that are “unable to pay for themselves” may be considered good thinking on his part.

The People’s Partnership Government inherited the previous administration’s business model of acquiring foreign used and/or new vessels with “built-in” maintenance contracts, some for as long as five (5) years, with foreign-based marine service providers, as is the case with the six (6) Trinidad and Tobago Offshore Patrol Craft (OPC). According to what has been previously stated by the Honourable Minister of Works and Transport and mentioned in the media, the maintenance cost alone for these four new water-taxis amount to some sixty-nine million dollars (TT$69 million), per year. Normally, as is the case with new automotive vehicles, very little maintenance is required within the first few years of operation, with the exception of routine air/oil filter changes, engine and hydraulic oil changes, lubrication of bearings, usually undertaken after a fixed scheduled number of running hours. As a matter of information, the sale of new marine vessels, normally carry a standard one (1) year shipyard manufacturer’s warranty, which would normally cover both major and minor components, ranging from engine propulsion units to navigational equipment.

In the last three (3) years, the previous administration had outsourced the purchase, maintenance and operational aspects of all of our passenger vessels to foreign entities. Examples of these contracts can be seen with the maintenance and operation of the three (3) used Hydrocruisers (existing water-taxis fleet) which is presently undertaken by Hornblower Global Maritime, Inc. (USA), the used twin INCAT inter-island fast ferries to Bay Ferries Management Limited (CANADA) and the most recent contract for the new water-taxis given to Austal Limited (AUSTRALIA). This foreign outsourcing model will invariably lead to an enormous imbalance between local revenues earned and expenditures paid-out in valuable foreign exchange, related to the operational and maintenance costs of our local passenger fleet.

As a developing country with a new administration intent on diversifying our economy from the energy sector, we all have to start to think even more creatively and look at new opportunities, as they arise.

So, from a purely economic standpoint, the new Minister cannot be faulted for wanting to divest these unproductive assets. However, there may be viable alternatives. For example, these new “surplus” water-taxis can be used to transport tourist from visiting cruise liners that dock at the port of Port of Spain and from those staying at the newly built waterfront Hyatt Regency Trinidad and the nearby Crowne Plaza hotel to Maracas Bay. Local residents will also appreciate driving to our capital cities of Port of Spain, San Fernando and soon-to-be Chaguanas, on weekends and public holidays enjoying the scenic water-taxi ride along the north coast of Trinidad, to and from our beautiful bathing beaches.

With the government owned water-taxi car parking facility available nearby, this can easily provide a convenient meeting point for our population, who will prefer to park their vehicles in a safe and secure facility, rather than to drive for several hours in slow moving traffic to and from the main beaches with their families, as is very common during national holidays. Likewise, the new water-taxis with their two levels of aircraft type seating accommodation can be utilized to offer a similar air-conditioned “tourist-like” experience to our world famous Caroni Swamp, via the Gulf of Paria sea route. The use of these environmentally friendly water-taxis with their large panoramic tinted windows and silent Kamewa waterjets should go well with environmentalists and the visiting scarlet ibis, including the aquatic wildlife.

The People’s Partnership manifesto promises not only to diversify our economy, but to also develop the maritime industry, which should include the development of our local vessel repair and maintenance capabilities. Therefore with a little creativity and thought, we can possibly do both with the newest additions to our maritime fleet.

Interior View of T&T Water-Taxis showing aircraft style seating accommodation.

------------------------------------------------------------------------------------------------
CREDITS:

- Photos courtesy and article written by Wilfred de Gannes, T&T Shipbuilding and Repair.

What are the Hawaii Superferries Worth?

2010-08-22T22:34:00.000-07:00

There is a new KITV report on a MARAD official's statements yesterday in Honolulu on the expected auction of the two Hawaii Superferries here and here. In those reports the MARAD official is quoted as saying the lien that MARAD has on the vessels is a total of $150 million. The report further quotes,

"'I can tell you we already have a $150 million lien on both ships. So, you can of course, provide a cash bid higher than that amount and take ownership of both the Alakai and the Huakai,' said Matsuda. Matsuda was in Honolulu Friday for the groundbreaking ceremony for the renovation of the Pier 29 container yard at Honolulu Harbor. The project is funded with federal stimulus money. Matsuda said Maritime Administration wants the Superferry vessels for military and humanitarian projects."

Hold that thought.

You can look a number of places to try to find what the two Superferries actually cost to build including all the nice extras in the interiors and things added later like the Whale detection systems to the Alakai and the ramp, wastewater treatment, and desalination plants added to the Huakai. A simple place to look is Wikipedia which says each vessel's total costs were $88 million each, here and here. Of course that's just Wikipedia and the Huakai's costs were at least $5 million more than the Alakai. But a quick thumbnail estimate is that the combined cost for the two was at least $181 million new before depreciation. Hold that thought.

Now, it took a little bit of hunting but we went back and looked at some of the early Bankruptcy Court filings, and it looks like the outstanding senior lien that MARAD has on the two vessels is actually closer to $140 million, not $150 million. Additionally Guggenheim Corporate Funding, LLC has a lesser priority outstanding lien of about $48 million and Austal had an even lower priority lien of about $22 million. The State of Hawaii was junior to them. Austal wrote off their loan as a loss. Guggenheim's lien was "secured" in equity. It is understood that all equity holders would lose their money on this. So the key takeaway on the liens is that MARAD's is $140 million, not $150 million and that Guggenheim also has a lien and would be out $48 million. The total of those two adds up to $188 million, only slightly more than what the two vessels originally cost to build. Hold that thought.

Now, let's got back to that MARAD official's quote about $150 million. First of all, does MARAD determine and run the auction? NO, they do NOT. It is the Bankruptcy Court that does that. The MARAD official's comment, "So, you can of course, provide a cash bid higher than that amount ('$150 million') and take ownership of both the Alakai and the Huakai,' said Matsuda," is not something that MARAD will determine and is misleading. First of all, MARAD's outstanding lien is $140 million, and NOT $150 million and more importantly because these ships are possibly worth closer to $180 million than $150 million, but also because it is not for MARAD to say what exact dollar figure will be enough to take ownership of the two vessels, that's the purvue of the Bankruptcy Court.

So, what are these ships worth? Well, it's somewhere between $150 and $180. They have a tax depreciable life of at least 20 years, even though the Huakai is almost like brand new and should not be depreciated as much as the Alakai. The Alakai, if you will remember, had significant damage to the rudder, was run aground going into drydock, and fell off it's blocks in drydock. But, if they were both actually being used continuously over the past 2 to 3 years, then the total depreciation on $180 million would be about $4.5 million for the Huakai and about $13.5 million for the Alakai for a total of about $18 million off of $180 million equaling about $162 million, which is about what these two vessels are really worth, leaving $140 million for MARAD, not $150 million, and the other $22 million for Guggenheim, recovering almost half of their potential loss. Keep in mind, to build these brand new for commercial use would be at least $90 million each and also the builder Austal is being paid about $180 million to build just one of these very similar ships for the U.S. military as JHSV's.

Our conclusion is then that these two vessels together are worth no less than $160 million total. Their actual worth is probably a little more than that. We would expect Guggenheim to be a bidder on this in addition to MARAD. We believe MARAD will actually be satisfied to recover their $140 million, but we also believe MARAD when they say the, "Maritime Administration wants the Superferry vessels for military and humanitarian projects."

Now, let's see if somebody gets 'em for less than that?

By the way, Mufi, your cheap friends aren't in the running.

More Misplaced Comments from Mufi Hannemann on the Superferry

2010-08-18T16:55:00.000-07:00

Source: http://mauinews.com/page/content.detail/id/534506.html?nav=10

Our responses in red. Excerpted from...

Hannemann talks about action plan
Economy, education, environment are key
By CHRIS HAMILTON, Staff Writer
POSTED: August 18, 2010

...Hannemann was unapologetic, saying his ads have facts meant to educate the public about the great disparity in the candidates' qualifications. He laughed off a section of the flier that listed "Won First Place, Lahaina Whaling Days Beard Contest" under Abercrombie's "Recognition."

The two men do have some similarities, though, in their campaigns. For instance, both veteran lawmakers said they'd put education first and start with placing the Department of Education superintendent in their cabinets (Hannemann would make the University of Hawaii president a cabinet member, too.); and both support bringing back the Hawaii Superferry.

Three Maui-based environmental groups successfully sued to kill off the Superferry after Gov. Linda Lingle's administration bypassed the environmental impact statement process. [The lawsuit wasn't what killed the Superferry, it was their own financial losses even when they were operating. HSF was never actually compelled to cease operations nor leave the state.]

Hannemann said he'd start the process from scratch to resolve Lingle's "mistakes" by hosting public meetings on the Superferry plan across the state, and he'd start a new environmental impact statement to make sure the slate is clean. [DOT has been planning to reuse the information from the Act 2 EIS and add some to that. Hannemann doesn't say whether he would rescope it. The existing vessels are logistically inappropriate for the route requirements.]

"If we're going to do this again, we have to do it right," Hannemann said.

He said he'd favor a public-private partnership that likely involves using the currently bankrupt company's two giant high-speed catamarans to transport military personnel on leave between islands. [HSF was already transporting military personnel on leave, and it wasn't making a difference with their bottom line. What Hannemann could more transparently say is "transport military personnel and their equipment on assignment between islands for training purposes."]

"It would free up a lot of lines at the airport," he said. [Not really, it never did. HSF did a small fraction of the business that the airlines did.]

But Superferry's true benefit was economic. Before service ceased about two years ago, a lot of Maui farmers, fishermen, contractors and other small-business owners used the ferry to get their goods to the lucrative Oahu markets... [Some Maui farmers were using it, and they are now using Aloha Air Cargo with no problem. The fishermen, contractors and small-business who were using it were mostly from Oahu. No surprise that the Oahu Development Board, Enterprise Honolulu, lobbied so hard for HSF and was putting out narrow and what turned out to be inaccurate economic forecasts on it as far back as 2003.]

An additional response from another commentor:

Economic? Really? Bleeding $40-$50 million out of the state’s budget for infrastructure, now to be paid off by other harbor users (though both the Alakai and floating barge are gone). Where is the economic cost/benefit study to show that a subsidized interisland ferry will help enough small businesses ship interisland to make it worth the costs, including the increasing price of fuel for the gas-guzzling fast ferry? State to pay for public meetings and preparing a new EIS?

With his above statements Mufi Hannemann reveals insight into his thought processes. The same processes he would use to try to solve any other problems. Such as with this one. It should be clear to all that regardless of his formal education, Mufi Hannemann is not the sharpest tool in the shed.

Superferry's Boondoggle Business Plan

2010-07-27T19:08:00.000-07:00

Source: http://thegardenisland.com/news/opinion/mailbag/article_ffeeaac0-993a-11df-a4d1-001cc4c03286.html?mode=story

Superferry’s boondoggle business plan

The July 24 letter writer Cayetano Gerardo must have missed the recent AP news item in The Garden Island, “The Hawaii Superferry was sailing under a facade of success ... shortchanging the state on its monthly fees. The company’s inability to pay fully [as early as] July 2008 indicates it was in troubled waters nine months before [voluntarily ceasing operations]...”

Indeed, let’s remember and support the elected officials who took a stand against a boondoggle business plan that was destined to fail in the free market.

Furthermore, the voters/consumers of Hawai‘i can thank the blind political supporters of the Superferry for 18 more years of higher prices to cover the more than $40 million that the state lost on the Superferry and which other harbor users now have to cover and pass on to the consumers of Hawai‘i.

Indeed, come election day let’s remember the politicians who did not speak up and those who supported a Superferry business plan that was destined to fail under top-heavy operating expenses and ultimately cost the taxpayers and consumers more money for nothing. Vote ‘em out.

Goofy Hannemann's Super Fairy Dreamin'

2010-07-27T13:39:00.000-07:00

Larry Geller called this spot on before and after Hannemann's press conference yesterday:

Sunday, July 25, 2010

"Will Mufi 'turn to desperate measures, like, say, reviving Hawaii’s Superferry' if he becomes governor?"

by Larry Geller

Internet find:

Will Birmingham-area politicians turn to desperate measures like, say, Hawaii's Superferry to solve the Grants Mill Road bridge problem? Never say never. [The Birmingham News, Chat live with Driving Miss Crazy on Monday at 1, 7/25/2010]

Before they do anything that desperate, I hope they check Google. They’ll learn of the extensive subsidies Hawaii bestowed upon the ferry business, that it was losing money, and that the state knew about it months before the ultimate bankruptcy filing.

Of course, as a government-owned operation, it would be reasonable for Birmingham to decide to invest in a ferry as a public service, just as government runs transportation systems anywhere. New York City provides the Staten Island Ferry for free, as an example of a subsidized ferry service.

It was interesting, though, just to see “Hawaii Superferry” and “desperate measures” in the same sentence. There really isn’t much in it.

This next, however, is much more serious. It’s a snip from an interview with gubernatorial candidate Mufi Hannemann, in which he seems unaware that Hawaii Superferry was not a viable business from day one:

My next question is one of my favorites because every politician loves the idea. So Mufi is elected and on the first day of session the legislative leadership says he can give them one bill and they will immediately pass it - what is the bill.
Mufi thought about this for a good 20 seconds. And then he said funding to restart the super-ferry and do the EIS. Mufi went into great detail about the great benefit that people in the state had when it was running. [David Thielen (Huffington Post), Mufi Hanneman Interview, 7/12/2010] [The PUC CPCN needs to be redone too.]

In the audio record of the interview, Mufi says “I saw enough of it that I knew it was going to be successful” (around 29:35 in the interview). Unfortunately, this is contrary to the facts as revealed by the Associated Press story of 7/21/2010 (after the interview date).

Again, a decision by government to create a Hawaii inter-island ferry service and pay the cost could be a rational decision (if they can also figure out how to do it without causing extensive seasickness). The Hawaii Superferry, however, was to be a private, profitable business, not a municipal- or state- run ferry. The taxpayer was subsidizing the potential profit of Hawaii Superferry’s owners.

But look, Mufi has a rather poor record at implementing water transportation so far, and a tolerance for high losses:

TheBoat, Honolulu's commuter ferry from Kalaeloa to Aloha Tower, gives West O'ahu residents an oceangoing alternative to increasingly clogged highways, for no more than $4 per round-trip ticket.
What makes the service so cheap is that Honolulu taxpayers pay an additional $120 per roundtrip rider to cover the actual costs of operating TheBoat, according to a city study.
The cost of carrying each passenger on TheBoat is about 62 times more than the cost of an average trip on TheBus. It is also significantly more expensive than comparable Mainland ferry services. [Honolulu Advertiser, High subsidies may scuttle Hawaii's ferry, 2/15/2009]

It was ok with Mayor Mufi to charge taxpayers $120 for each roundtrip rider on his boat service before it was finally terminated.

Hawaii Superferry certainly had an EIS problem, but even without that, the business appears to have been dead in the water from day one. The Superferry fiasco wasn’t Mufi’s responsibility, but his lack of understanding of what ultimately sank the business combined with willingness to tolerate losses incurred by TheBoat should be a concern, given the need to control costs for a possible rail transit system planned for Honolulu.

(Thanks to Kevin for pointer to the interview story)

Monday, July 26, 2010

"Mufi fiscally irresponsible to ignore Superferry losses"

by Larry Geller

Again, the news tells us that Mufi Hannemann is serious about trying to revive the Hawaii Superferry, with the same ships that couldn’t be economically successful the first time around.

Maybe, like Sarah Palin or George Bush, he just doesn’t read the newspapers. The Associated Press revealed on 7/21/2010 that the Superferry was unable to pay its fees to the State fully nine months before it ultimately went bankrupt. Analyst Brad Parsons had estimated the costs of running such a large, fuel-hungry ship much earlier and published the information on his popular blog.

Our press seems unwilling to ask the hardball questions. Won’t a reporter please confront him on this one day soon?

Perhaps hizzoner knows the economic facts but is playing to the Oahu voter’s dreams of the Superferry’s return, and their belief that it was viable business killed by a bunch of Kauai tree huggers and Maui whale worshippers.

All the more reason for some reporter to call him on it and set the record straight.

Goofy Hannemann's Plan for Recovery: Roads, Rail & da Superferry!

2010-07-26T21:46:00.000-07:00

Oh, man, this is a frickin' joke. Superferry should be a total non-issue. They don't even have a Certificate of Public Convenience and Necessity anymore, not to mention the EIS that the state hasn't even begun. The Superferry is so insignificant considering the problems the state has to deal with, esp. considering that the Superferry's own business plan wasn't working, it's a farce that a Gubernatorial candidate would so desperately grasp at straws to even mention it:

"Candidates for governor pitch economic plans"
MARK NIESSE, Associated Press Writer
Monday, July 26, 2010, 10:09 p.m.

HONOLULU (AP) — Hawaii's Democratic candidates for governor proposed competing economic plans Monday, with Mufi Hannemann's ideas focused on construction and Neil Abercrombie's pitch centered on energy and agricultural sustainability.

Hannemann wants roads upgraded, Honolulu's rail project built and the Hawaii Superferry revived. He also would seek an audit of state spending and a commitment for the NFL's Pro Bowl to be hosted in the islands...

Abercrombie countered that the former Honolulu mayor's ideas emphasize projects instead of long-term policies to improve the business climate.

The former congressman is aiming for the state to use more renewable energy, produce more of its own food and remove governmental red tape.

"I propose that we save the state of Hawaii and immediately invest in our survival by having a long-term plan," said Abercrombie. "What we need to have is not just projects ... What we need to have is economic plans."

Hannemann's 10-point economic plan first calls for an audit of state government to help eliminate waste.

Abercrombie responded that a study of the government would delay needed changes.

Hannemann said an interisland ferry could be successful if it were tried again and followed environmental guidelines this time. He hopes to partner with a private company to bring back the same ferries previously operated by the bankrupt Hawaii Superferry.

"If it had been done properly, we wouldn't have experience the kind of difficulties that it had," Hannemann said. "It's just too good of an idea to let it go by the wayside."

But Abercrombie said a new ferry system would need to be more financially sound than the Superferry was.

"The only way the Superferry is going to be able to come back, except in a fantasy, is if there is a partnership with the United States military," he said. Abercrombie said he would seek a public-private partnership for a ferry system.

The Associated Press reported last week that the Hawaii Superferry had fallen short on its required payments to the state nine months before the Hawaii Supreme Court decision widely blamed for the ferry's closure came in March 2009.

The leading Republican candidate for governor, Lt. Gov. James "Duke" Aiona, has an economic platform based on easing government barriers to business and encouraging technology development... >>>Full Article>>>

Superferry Politics: The Devil is in the Details, Mr. Schatz

2010-07-24T03:22:00.000-07:00

Candidate for Lt. Governor Brian Schatz comments on the Superferry shortly before and after the unconstitutional Act 2 was passed by the Legislature, followed by a clip on the latest news about the unsustainable business plan that the Superferry always was:

Source: http://honoluluweekly.com/diary/2007/09/lessons-from-the-superferry/

"Lessons from the Superferry"
How do we move forward?
by Brian Schatz Sep 19, 2007

OK, we’ve heard the arguments. Depending on your perspective, either the Superferry is an example of how unfriendly Hawai’i is toward business, or it’s a cautionary tale for those who skirt environmental regulations. Both sides of this cultural and environmental divide are outraged. But where do we go from here? What are the lessons from this ongoing fiasco?

For Government:

Yes should mean yes, no should mean no.

The Superferry was told by one part of the government (the Transportation Department) that an Environmental Assessment wasn’t required, and then another part of the government (The Supreme Court) told them to do it. The Superferry folks are right in saying that this situation is ridiculous and that it shows how complicated and difficult Hawai’i’s process is. [?] I’ve heard smart legal arguments on both sides, [?] but the way to prevent a mess like this in the future is to have the Legislature clarify who has the final authority to decide issues like this. [?]

For Developers:

Do the Environmental Assessment if you have any doubt at all.

There are several reasons to just go ahead and do an Environmental Assessment for a major project. First, it’s the right thing to do, because it’s often the only opportunity for the public’s voice to be heard about important projects. Second, the law usually requires it. [?] And even if you can construct a legal case in which it isn’t required, you are going to end up fighting in court, which will make people angry and delay the project anyway. Finally, the Environmental Assessment process is not an approval thing–it’s a disclosure thing, which means that when the environmental disclosure is complete, the project goes forward... [???]

Source: http://honoluluweekly.com/diary/2007/11/the-next-legislative-session/

"The next legislative session"
Stay away from old issues and spend a little time on things that matter, like sustainability
by Brian Schatz Nov 14, 2007

Superferry Session is pau...

Avoid superobsession

The Superferry war isn’t over until a series of court rulings are made, but for legislative purposes, it’s done, and the vote wasn’t close. As the battle rages on elsewhere, it shouldn’t occupy the energy of the Legislature. This will take discipline because both sides are still fighting mad. But it’s no longer in the Legislature’s hands. One more caution on this issue: The majority of the general public wanted the Superferry, and they were willing to carve an exemption in our environmental laws to let it happen. [?] But they do not want this to become a habit, and they do not want weaker laws.

Get focused on supersustainability not the Superferry...

Source: http://www.businessweek.com/ap/financialnews/D9H3E6P80.htm

"Hawaii Superferry shorted state"
By MARK NIESSE The Associated Press July 21, 2010

HONOLULU--The Hawaii Superferry was sailing under a facade of success in the summer of 2008 -- boasting of record ridership -- but it had already begun to shortchange the state on its monthly fees, according to an Associated Press review of Department of Transportation records.

The company's inability to pay fully in July indicates it was in troubled waters nine months before the Hawaii Supreme Court decision widely blamed for the ferry's closure came in March, 2009. The court overturned a state law that allowed the Superferry to operate while an environmental impact statement was being conducted...

[Editor's note - The Devil is in the Details. Good policy is not always merely a matter of political compromise. Wisdom and experience would know that.]

Surprise, Surprise, Superferry "shorted state" even in it's best month

2010-07-20T21:47:00.000-07:00

From: http://www.staradvertiser.com/news/breaking/98869884.html

"Hawaii Superferry shorted state"
By Mark Niesse Associated Press July 20, 2010

The Hawaii Superferry was sailing under a facade of success in the summer of 2008 -- boasting of record ridership -- but it had already begun to shortchange the state on its monthly fees, according to an Associated Press review of Department of Transportation records.

The company's inability to pay fully in July indicates it was in troubled waters nine months before the Hawaii Supreme Court decision widely blamed for the ferry's closure came in March, 2009...

>>>Read rest of article>>>

All you had to do was count cars and you could see this comin' many months in advance...

Lingle and Hannemann exchange words over Superferry and the Rail

2010-06-07T09:17:00.000-07:00

STATEMENT BY GOVERNOR LINDA LINGLE ON MAYOR HANNEMANN’S SUPERFERRY COMMENT

Governor Linda Lingle issued the following statement recently:

“In his campaign for higher office, Mufi Hannemann is trying to rewrite history. His inaccurate comments regarding the Hawai‘i Superferry situation are both misinformed and patently false.

“It seems as if the Mayor was absent during the herculean efforts put forth by both the Legislature and my Administration to bring the Superferry to Hawai‘i. In a historic Special Session of the Legislature, Senate President Hanabusa and House Speaker Say worked hand-in-hand with me and my team, as well as their colleagues in both houses, to ensure Hawai‘i residents had the benefit of a new mode of interisland transportation.

“With O‘ahu residents being the greatest beneficiaries of the Superferry, it is curious that Mayor Hannemann was noticeably absent from the discussion at the time. Yet now, as is his nature, he wants to blame others.

“The fact is that the decision to stop the Superferry was the result of a Supreme Court ruling which was a far-reaching interpretation that heretofore had never been applied to any new maritime operation in the state.”

###

JHSV's 4 and 5 Move Ahead

2010-06-04T18:30:00.000-07:00

U.S. Department of Defense Announces Latest Contract Awards

June 4, 2010

CONTRACTS: NAVY

Austal USA, Mobile, Ala., is being awarded a $99,557,548 modification to previously awarded contract (N00024-08-C-2217) for long lead time material (LLTM) for ships four and five of the Joint High Speed Vessel (JHSV) program. This contract provides LLTM for main propulsion engines, aluminum, waterjets, reduction gears, generators and other components to support construction of JHSV ships four and five, commencing in fall 2010. Work will be performed in Detroit, Mich. (38 percent); Chesapeake, Va. (18 percent); Henderson, Australia (13 percent); Gulfport, Miss. (10 percent); Ravenswood, W.Va. (9 percent); Ft. Lauderdale, Fla. (4 percent); Mobile, Ala. (3 percent); Auburn, Ind. (2.6 percent); Winter Haven, Fla. (1 percent); Gardena, Calif. (1 percent); and Davenport, Iowa (0.4 percent), and is expected to be completed by December 2011. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

What's that "Giant Sucking Sound"?

2010-05-31T19:42:00.000-07:00

From: http://blog.al.com/live/2010/05/political_skinny_2.html

Giant sucking sound

Don't look for shipbuilding executive Richard McCreary to book any summer vacation plans along the Alabama Gulf Coast.

McCreary is president of Wisconsin's Marinette Marine, which is competing with Mobile's Austal USA for a lucrative contract to build Littoral Combat Ships for the U.S. Navy.

McCreary told a business luncheon in Madison, Wis., last week that the contract could bring thousands of jobs to northeast Wisconsin and Michigan's Upper Peninsula.

"If we win this contract, the giant sucking sound you hear will be people (who work in shipyards) leaving the Gulf Coast to come up here," said McCreary, according to WISBusiness.com.

Superferry Certificate of Public Convenience and Necessity Cancelled Yesterday‏‏

2010-05-28T23:55:00.000-07:00

Here was how I summarized it to a friend after reviewing the following two docs. I may be simplifying it, but:

The bankruptcy representative asked the PUC to cancel the CPCN because Superferry does not have the finances to perform some of the obligations under the CPCN and this needs to be cancelled so that the bankruptcy can be completed. The PUC approved it, and closed the docket on the Superferry yesterday. So basically somebody from the private sector who might try to come in again and operate under the Superferry's prior charter will not be able to do so (unless the PUC reverses it's decision?). The process would have to begin again, and that was about a 2 year process with public input again. Superferry is completely dead. The ships will be auctioned by MARAD soon.

The full-text docs are:
03/10/10 Request to Surrender CPCN
05/27/10 Order Approving Voluntary Surrender of CPCN

Other related news today on this otherwise old story:

From: http://www.honoluluadvertiser.com/article/20100528/BREAKING01/100528052/Lingle+criticizes+Hannemann+over+Hawaii+Superferry+remarks

BREAKING NEWS/UPDATES
Updated at 5:06 p.m., Friday, May 28, 2010
"Lingle criticizes Hannemann over Hawaii Superferry remarks"
Associated Press

HONOLULU — Gov. Linda Lingle is criticizing Democratic gubernatorial candidate Mufi Hannemann over his remarks about her handling of the Superferry controversy. Hannemann, the mayor of Honolulu, contended Thursday Lingle will not allow his proposed commuter rail project to move forward while she is in office. Lingle is now reviewing the project's environmental impact study. Hannemann said the irony is Lingle "blew the Superferry" because she didn't want to conduct a full environmental report on the interisland vessel. Lingle said in a statement Friday that Hannemann's comments were "misinformed and patently false." She says the state Supreme Court blocked the Superferry in March 2009 with an unprecedented reading of state environmental law.

I say, let 'em Duke it out. I'm only hangin' around this story long enough to find out who buys the vessels at auction and at what price. Otherwise, I'm done wit' dis' story...
A - L - O - H - A!

US moves to arrest Hawaii Superferry vessels

2010-05-27T17:39:00.000-07:00

Auction, huh? Silent or closed auction? This could answer a lot of questions about who finally gets the value out of these. If they sell for a low-ball price to certain individuals, then finally things could make sense that otherwise never did. The ships are worth no less than $160 million total, probably more with all of the internal additions. If not the DoD, look for the buyer to be in a company name controlled by a silent individual.

US moves to arrest Hawaii Superferry vessels

by Rajesh Joshi - Monday May 24, 2010

THE US government has taken the first step towards an eventual court-ordered auction of two catamarans formerly owned by the bankrupt Hawaii Superferry, by securing arrest warrants against the two ships in Virginia to recoup amounts due.

The move comes one year after Hawaii Superferry entered Chapter 11 protection. It was not immediately clear whether...

World's Largest 'Super Ferry' Makes Her Maiden Voyage

2010-05-23T22:56:00.000-07:00

Austal closing Tasmanian factory - axing 116 staff

2010-05-12T18:56:00.000-07:00

Interesting Austal statement today on closing their Tasmanian operations:

"We were trying to understand whether this trend was driven by the global financial crisis or more than that. We have concluded it is more than that. It is permanent and therefore we have had to make this decision."

Austal closing Tassie doors
Tasmania Mercury
SHOCKED workers at Austal's Margate shipyard have been told they will lose their jobs by September. Twenty staff were laid off without notice yesterday and ...
See all stories on this topic

ABC Online

Austal closes Tas factory, axes jobs
ABC Online
(ABC News: Sarah Bester) The shipbuilder Austal is closing its Tasmanian shipyard and sacking 116 staff. The Western Australian company says it will shed ...

Govt denies ignoring business plight
ABC Online
Lara Giddings says the Austal board would have made the decision to close regardless of what the Government offered. (ABC News: Sarah Bester) The Tasmanian ...
See all stories on this topic

Austal closes shipyard, 121 staff let go
WA Business News (subscription)
Shipbuilder Austal will close its Tasmanian operations at Margate in a few months leaving 121 employees out of work as the company amends operations ...

International Business Times AU

Austal shifts to small vessels; cuts jobs
International Business Times AU
Shipbuilder Austal confirmed on Wednesday it will have a total transformation as it discontinues its Tasmanian shipyard operations and terminates 116 ...

Austal to close its Tasmanian shipyard
Marine Log
Austal has announced what it terms "a rationalization of its Australian operations and workforce as a result of the impact of changed market demand ...

Austal closing Tassie doors
Tasmania Mercury
Austal took over the Margate yard from North West Bay Ships in February, 2007. The shipbuilder, which has lucrative defence contracts both locally and in the U.S. ...

120 ship workers axed
Tasmania Examiner
BY RACHEL WILLIAMS Austal sales and operations manager Andrew Bellamy told the ... Austal posted a $15.5 million half-year profit after income tax...

Austal interfering with a small radio station in Mobile, AL?

2010-05-03T19:27:00.000-07:00

From: http://www.rbr.com/radio/ENGINEERING/94/23862.html

"WMOB-AM Mobile to relocate antenna due to ground clutter"
2010-05-03

Christian-formatted WMOB-AM Mobile, AL says its signal is being hindered by Austal Shipyard and AIDT (Alabama Industrial Development Training) expansions. 82-year-old owner Buddy Tucker says Austal's and AIDT's new buildings (Maritime Science Center) are warping the station's coverage area. At the western end of the Mobile Bay Causeway, between a massive shipyard building and the construction site for a new state jobs training center, is the location of WMOB’s antenna site, says The Mobile Press-Register.

To improve things, Tucker plans to relocate east on the Causeway to the location of the former WLVV-AM (later WNPL-AM), vacant since Hurricane Katrina. He and his wife have paid $450,000 for the property.

To accomplish the move, Tucker tells the paper the neighbors need to chip in: "We are going to have to depend on getting some money from these people," Tucker said. "We're just small-time, compared to them."...

"This situation is very much akin to a guy who's got a great view of the ocean," Bill Pfister, vice president of external affairs for the Australian-owned Austal, told the paper. Such a guy would have no recourse if someone legally built a house blocking the view.”

Tucker has been blind since he was 15, and a radio broadcaster since he was 16. He started as an announcer on some of the South's most historic stations, moving on to work as a manager launching two Christian stations in Iowa. After that, he bought WMOB, which at the time was off the air. Since, he’s added a station in DeLand, FL, and WTOF-AM in Bay Minette, AL.

But the plot thickens: the interference problem began two years ago, when Austal started building a manufacturing facility west of the site that WMOB rents from the state. Workers who were erecting steel kept getting "zapped" when they touched the beams, Pfister said. And a copper phone wire kept picking up religious programming.

"We finally figured out it was radio energy," Pfister said.

Asked to turn off the station during Austal's construction, Tucker said that he declined.

Tucker said that the beams and walls in Austal's structure, which has some nine acres under roof, reflect WMOB's broadcast, bouncing its signal away from its normal southwesterly course. WMOB’s directional antenna avoids contact with stations in Monroeville, AL and Pensacola, FL.

Because of the deflected signal, WMOB is out of compliance with its FCC license, although regulators have granted waivers while it works to solve the problem. The FCC hasn't gotten any complaints. Tucker said he's received calls from listeners in southern Mobile and Baldwin counties who used to be able to hear the signal but can't any more...

The station has limited leverage. It operates on land leased from the state on a month-to-month basis, and could be ordered to clear out within 30 days. AIDT is likely to have to plow up some of the copper wiring underground that aids AM broadcasting to build a seawall around its new property.

Austal, meanwhile, plans to build an administration building on the WMOB end of its property, and Pfister said that Austal could probably get the FCC to force WMOB to shut down its transmitter if it intruded on Austal's operations.

Tucker said that he is frustrated that the problems have dragged on for almost two years, and fears that Austal and AIDT are trying to wait him out... >>>Full Article Here>>>

See also, for graphic and comments: http://blog.al.com/live/2010/05/christian_radio_station_on_cau.html

Fast Ferries Aren't Helping Greece Today

2010-05-01T13:52:00.000-07:00

LCS-2 is Done...Kaput...It's Over...That's a Wrap

2010-04-28T20:39:00.000-07:00

Amazing, the Alabama Senators with their CBO report request cinched the decision away from LCS-2 in favor of LCS-1...

From: http://www.defensenews.com/story.php?i=4603087&c=AME&s=SEA

"Report: Fuel Factors Less Than Price For LCS"
By CHRISTOPHER P. CAVAS Defense News
Published: Apr. 28, 2010

Fuel costs for the U.S. Navy's new Littoral Combat Ship (LCS) are calculated by a new Congressional report to be about 11 percent of total life-cycle costs - far less than the 64 percent figure represented by the price to buy the ship.

The relative insignificance of the fuel figure to the purchase price is at odds with claims by Alabama's Senate delegation that the Navy should give more weight to fuel efficiency in its pending choice of which LCS to buy. Navy officials have repeatedly said that the selection, expected sometime this summer, will be based largely on purchase price rather than lifecycle costs.

Sen. Jeff Sessions, R-Ala., asked the Congressional Budget Office (CBO) to study the effect of fuel costs and other factors on lifecycle costs. Sessions is supporting the aluminum-hulled trimaran LCS design built by Austal USA in Mobile, Ala. That ship is competing with a Lockheed Martin LCS built in Wisconsin.

Sessions and his Senate colleague, Richard Shelby, R-Ala., have repeatedly said the Austal USA ship is more fuel-efficient than the Lockheed ship, particularly at higher speeds...

The study, sent to Sessions on April 28...

CBO concluded that, as a percentage of life-cycle costs, fuel costs made up 8 percent of the low-fuel ship, 11 percent for the moderate-fuel ship, and 18 percent of the high-fuel ship.

Comparatively, procurement cost for the low-fuel ship made up 66 percent of the life-cycle cost, 64 percent for the moderate-fuel ship and 58 percent of the high-fuel ship...

>>>Rest of Article>>>

Austal can forget about LCS. They're lucky to get any JHSV's. Tough bloody luck, blokes.

Lockheed, Austal submit bids for LCS

2010-04-13T07:02:00.000-07:00

Lockheed, Austal submit bids for US Navy warships
Reuters
Lockheed Martin and Australia's Austal Ltd submitted bids on Monday for a deal valued at well over $5 billion to build more Littoral Combat Ships (LCS)...

2 contractors submit bids for up to 10 US warships
AP - Forbes
Officials from Lockheed Martin and Austal USA confirmed their bids were submitted on Monday...

New Revelations about MARAD and Superferry

2010-04-13T06:14:00.000-07:00

Two new articles yesterday with previously unreported information by a Ryan Sibley of the Sunlight Foundation Reporting Group:

From: http://reporting.sunlightfoundation.com/2010/government-agency-history-taxpayer-losses-keeps-it/

"Government agency with a history of taxpayer losses keeps at it"
By Ryan Sibley Apr 12, 2010

Between 2004 and 2009, the U.S. Maritime Administration, or MARAD, a federal agency that supports the U.S. shipbuilding industry and merchant marine, made just one loan from its troubled Federal Ship Financing Program, also known as Title XI. The borrower was Hawaii Superferry Inc., a politically connected company that hired a former chief counsel and deputy administrator of MARAD, among others, to lobby the agency. In 2005, Hawaii Superferry got a taxpayer-guaranteed loan for $139 million to build and operate a pair of high-speed ferries in the fiftieth state. Just four years later, the company filed for bankruptcy, listing assets of a mere $1 million.

The failure was par for the course for a program that even the business-friendly administration of George W. Bush branded as an “unwarranted corporate subsidy.”...

Loan guarantees issued by Title XI slowed drastically in years following the default of American Classic Voyages. Hawaii Superferry received the only guarantee issued in 2005 and the last one until 2009. Disclosure records show the company lobbied Congress and MARAD in 2005 regarding ship financing and Title XI amid the program slow down.

The company hired Blank Rome LLP to push its interests in Washington; among the firm’s lobbyists that represented Hawaii Superferry was Joan Bondareff , who served as chief counsel and acting deputy administrator for MARAD during the Clinton administration . She’d also served as the majority counsel to the House Committee on Merchant Marine and Fisheries. Blank Rome reported receiving $20,000 in fees from Hawaii Superferry in 2005; the company got a taxpayer-guaranteed loan for $139 million to pay for construction and operation of a pair of high-tech catamarans... >>>Rest of Article>>>

Also from: http://reporting.sunlightfoundation.com/2010/hawaii-superferry-ulterior-motive/

"Hawaii Superferry: An ulterior motive?"
By Ryan Sibley Apr 12, 2010

Was the Hawaii Superferry project conceived of as a means of securing a military contract? Speculation in Hawaii among activists that the ferries might have eventually been used for interisland transport of the Army’s Stryker brigade and other military equipment fueled conflict between protestors and Superferry supporters.

In March 2005, John F. Lehman, a former Navy Secretary during the Reagan administration and the company's principal investor, told Pacific Business News that there was a possibility the ferries would be used to move military cargo. In 2008, the former CEO and President of HSF, Inc., Thomas Fargo, said that was still a possibility, and the company’s lobbyists at Blank Rome LLP reported being paid $210,000, according to data from the Center for Responsive Politics, to lobby for inclusion in a Defense Department program that would pay to have improvements made to the Hawaii Superferry’s two high speed catamarans that would make them more militarily useful... >>>Rest of Article>>>

Hawaii Senate Kills HB 2667 study for state-run ferry

2010-04-07T12:56:00.000-07:00

Here's the total vote, published nowhere else publicly. Somebody may have been trying to protect the losing Ayes by not publishing their names. Well here they are:

4/6/2010

HB 2667 failed to be adopted; Failed to pass Third Reading. Ayes, 8 (Senator(s) Espero, Gabbard, Green, Hanabusa, Kim, Sakamoto, Takamine, Taniguchi). Noes, 17 (Senator(s) Baker, Bunda, Chun Oakland, English, Fukunaga, Galuteria, Hee, Hemmings, Hooser, Ige, Ihara, Kidani, Kokubun, Nishihara, Slom, Tokuda, Tsutsui).

Here's a good report on it:

From: http://www.forbes.com/feeds/ap/2010/04/07/business-financial-impact-us-ferry-service-hawaii_7494503.html

"Hawaii Senate rejects state ferry service study"
By MARK NIESSE, Associated Press 04.07.10

HONOLULU -- The Hawaii Senate has sunk an idea that would have studied the creation of a state-sponsored ferry service between the islands...

It was the only bill killed in the Senate on Tuesday amid dozens of other proposals that advanced to conference committees for final negotiations before the Legislature adjourns April 29.

>>>Full Article Here>>>

Souki said it would, "SAIL on Through." Apparently NOT, Mr. Souki.

GAO's Most Recent Report on JHSV and LCS

2010-04-04T15:51:00.000-07:00

Some nuggets from the most recent GAO report on JHSV:

From: http://www.gao.gov/new.items/d10388sp.pdf

The JHSV is a joint Army and Navy program to acquire a high-speed, shallow-draft vessel for rapid intratheater transport of combat-ready units. The ship will be capable of operating without reliance on shore based infrastructure. The program awarded a detail design and construction contract with options for nine additional ships to Austal USA in November 2008, and DOD authorized construction of the first ship in December 2009...

Design and Production Maturity

In December 2009, DOD authorized the shipbuilder to start JHSV lead ship construction with 65 percent of the ship’s 3D product model complete. According to program officials, the product modeling is complete for some of the JHSV’s most complex modules, including the machinery, water jet, and generator rooms. The decision to authorize construction is not consistent with GAO recommended shipbuilding best practices, which call for achieving a complete and stable 3D product model before construction begins. The program office believes that the completion of the model prior to construction start is less critical for its program because the JHSV is not as complex as other Navy ships, such as the DDG 1000 or the T-AKE. The Navy also demonstrated JHSV design maturity by tracking the number of critical drawings approved by the American Bureau of Shipping (ABS). As of December 2009, ABS has approved 99 percent, or 319 out of 321, of JHSV’s critical design drawings used to build the 3D product model. Program officials estimate that 70 percent of the JHSV design is the same as the commercial Hawaii Superferry produced by the JHSV shipbuilder. However, the differences, which include the firefighting system, hotel services, aviation accessibility, and the addition of a limited self-defense capability, affect a large area of the JHSV...

In order to achieve the necessary production rate, the shipbuilder built a modular manufacturing facility, which marks a change in production strategy for the yard. Prior to using this facility to build the JHSV, the shipbuilder built components of the Littoral Combat Ship in the facility. In addition, it built a pilot JHSV module in the facility prior to lead-ship construction start. While modular manufacturing decreases the number of workers needed, the contractor experienced hiring issues and program officials anticipate that the shipyard will be challenged to hire a sufficient number of workers with critical skills as its workload increases...

And the LCS nuggets:

The Navy’s LCS is designed to perform mine countermeasures, antisubmarine warfare, and
surface warfare missions. It consists of the ship itself, or seaframe, and the mission package it
deploys. The Navy plans to construct the first four seaframes in two unique designs, then select one design for the remainder of the class. The first seaframe (LCS 1) was delivered in September 2008 with the second seaframe (LCS 2) following in December 2009. We assessed both seaframes. See pages 97-98 for an assessment of LCS mission packages...

...The Navy identified watercraft launch and recovery as a major risk for both designs...

...Challenges for LCS 2 include completing required endurance testing of the main propulsion diesel engines and addressing pitting and corrosion in the waterjets...

Technology Maturity

Seventeen of 19 critical technologies for both LCS designs are mature. For LCS 2, the trimaran hull and aluminum structure are nearing maturity. The Navy identified watercraft launch and recovery—essential to complete the LCS antisubmarine warfare and mine countermeasures missions—as a major risk to both seaframe designs. Watercraft launch and recovery systems have not been fully demonstrated for either seaframe...For LCS 2, factory testing of the twin boom extensible crane revealed performance and reliability concerns that were not fully addressed prior to installation. In addition, program officials report the LCS 2 main propulsion diesel engines have not completed a required endurance test, in part due to corrosion in each engine’s intake valves. As an interim solution, the Navy has installed new intake valves, which enabled the ship to complete acceptance trials. LCS 2 has also experienced pitting and corrosion in its waterjet tunnels. The Navy has temporarily fixed the issue and plans to make weld repairs to pitted areas during a future dry dock availability.

...At fabrication start for each ship, approximately 69 percent (LCS 3) and 57 percent (LCS 4) of basic and functional drawings were complete. Starting construction before drawings are complete could result in costly out-of-sequence work and rework to incorporate new design attributes...

...For LCS 3, the contractor has incorporated a design change to extend the transom by four meters to improve stability...

...Navy officials report that the earned value management systems (EVMS) in each of the LCS shipyards do not yet meet Defense Contract Management Agency requirements. Under the terms of the LCS 3 and LCS 4 contracts, the shipyards must achieve EVMS certification within 28 months from the date of the award. Until those requirements are met, cost and schedule data reported by the prime contractors cannot be considered fully reliable.

...The Navy stated that LCS 1 now meets the damage stability requirement with the addition of external tanks on the rear of the ship...

...To address corrosion of the waterjet tunnels, the Navy stated that electrical isolation of propulsion shafts from the waterjets is being incorporated and a plan is in place to renew the corroded metal in the waterjet intake tunnels.

There you have it.

Reuters covers LCS design problems...and the losers plan their appeal

2010-03-30T19:40:00.000-07:00

Problems revealed with both LCS designs:

Congressional report cites problems with LCS ships
Reuters
General Dynamics won a contract for LCS-4, based on an aluminum trimarin design by Austal (ASB.AX) on May 1, 2009, or 10 months ago...

And the losers are already planning their appeal:

Editorial: LCS award won't be endgame
Press-Register - al.com
Defense industry analysts say that both sides, Austal USA in Mobile and Lockheed Martin ... Whether Austal wins or loses the order for up to 10 new ships...

Poor Losers...Handwriting is on the Wall

2010-03-28T21:45:00.000-07:00

From: http://blog.al.com/live/2010/03/analysts_lcs_contract_decision.html

"Analysts: LCS contract decision could be contested"
by Sean Reilly March 28, 2010

WASHINGTON -- By the Navy's calendar, a winner-take-all order for up to 10 new littoral combat ships is supposed to be awarded this summer, with Mobile-based Austal USA's future prospects heavily staked to the outcome.

But that award may not be the end of the story, according to outside analysts...

"It's just too important a program for both sides," said Jay Korman, a principal at The Avascent Group, a Washington, D.C., consulting firm...

Bids are due April 12, with a decision to follow in June or July, according to Sean Stackley, the Navy's top weapons buyer.

Representatives of both Austal and Lockheed declined to say what they would do in the event of defeat.

Either, however, could lodge a formal protest with the Government Accountability Office, the federal agency charged with handling contract appeals. The GAO gives itself just over three months to decide a protest, although a request to reconsider its initial ruling can add more time...

>>>Rest of Article>>>

Tit for tat, gettin' nasty...'Bama LCS folks not happy about losing

2010-03-19T18:37:00.000-07:00

Richard Shelby, Herb Kohl trade fire at Senate LCS hearing | al.com
By Sean Reilly
Herb Kohl, D-Wis., countered by labeling Austal's aluminum trimaran design "radical" and suggested that its version of the LCS would be more expensive to maintain than a traditional steel vessel. Sen. Richard Shelby, R-Tuscaloosa ... Breaking News from the Press-Register - http://blog.al.com/live/

US Navy request raises issue about aluminum ships?

2010-03-17T01:39:00.000-07:00

From: http://www.reuters.com/article/idUSN1513314120100316?type=marketsNews

"US Navy request raises issue about aluminum ships"
By Andrea Shalal-Esa Mar 16, 2010

WASHINGTON, March 16 (Reuters) - The U.S. Navy is seeking an analytical tool to predict problems with aluminum-hulled ships just months before it is due to announce the winner of the Littoral Combat Ship competition involving such a ship.

In a little-noticed solicitation posted on a Navy website in January, the Navy said it needed better tools to predict possible cracking on aluminum-hulled ships, especially under difficult conditions at sea. Replies are due by March 24....

Extreme Loading Events

In the solicitation, the Navy said it was facing "great challenges" in picking appropriate analytical tools and validation procedures to assure the performance and integrity of the aluminum ship structure in the presence of "unexpected extreme loading events" such as wave-slamming....

>>>Rest of Article>>>

Nice piece of reporting. As background listen to the second audio link that says “click here” at:

http://disappearednews.com/2008/04/secon d-program-on-alleged-superferry.html

It’s the rest of the story. Helps to explain what the Navy might be looking at.

Also, here's a video to remind our readers what "deck-slamming" looks and sounds like:

Marinette: "When we win the fiscal year 2010 ships for LCS"

2010-03-13T17:40:00.001-08:00

"We're going to win (the LCS contract) on cost," Moosally said. "This is basically a price shootout."

From: http://www.greenbaypressgazette.com/article/20100313/GPG03/3130574/1247/Marinette-Marine-breaks-ground-on-large-ship-facility

"Marinette Marine breaks ground on large ship facility"
Fincantieri Marine Group plans $100 million investment in area operations
BY NATHAN PHELPS • March 13, 2010

MARINETTE — Marinette Marine Corp. broke ground Friday for the expansion of its large ship erection building.

Company leaders say this is part of a $100 million investment in Marinette Marine and other area operations aimed at securing contracts that will help stabilize the work force at the shipyard — such as the Navy's Littoral Combat Ship.

(The expansion) "is to improve our production efficiency and make us more productive and more competitive in the marketplace," said Fred Moosally, president and CEO of Fincantieri Marine Group, which includes Bay Shipbuilding Co. in Sturgeon Bay and ACE Marine in Green Bay. "When we win the fiscal year 2010 ships for LCS, that's a winner take all with 10 ships … and it will really stabilize the work force."...

"We're going to win (the LCS contract) on cost," Moosally said. "This is basically a price shootout." >>>Full Article>>>

Austal to showcase vessels at China Maritime

2010-03-11T18:08:00.000-08:00

From: http://www.bairdmaritime.com

Wednesday, 03 March 2010

Austal will be showcasing its range of high speed, lightweight aluminium vessels at China Maritime 2010, to be held at the Hong Kong Convention and Exhibition Centre, March 16 - 18.

...Also of interest to many of the region's navies, coast guards and maritime security agencies will be Austal's range of high speed defence platforms, including police vessels, patrol vessels, combat ships and high speed support vessels.

On display will be Austal's latest 47.5-metre passenger catamaran ferry, 21 of which are currently servicing the growing demand generated from the Hong Kong to Macao route.

Also on display will be a model of Austal's 102-metre next generation trimaran, which is currently nearing completion at Austal's Western Australian shipyard and is available for purchase... >>>Rest of Article>>>

GD and Austal Split Up To Bid on LCS

2010-03-06T17:34:00.000-08:00

Austal is trying to characterize this in a positive light for them, but thinking about it from a number of interations, this is mostly positive for GD and later bids in this process, and not so much for an unproven solo prime contractor building the significantly more expensive version of LCS. Three articles about it referenced below:

"GD and Austal Split Up To Bid on LCS"

By Christopher P. Cavas Mar. 4, 2010

Shipbuilding partners Austal USA and General Dynamics have agreed to revoke their teaming arrangement on the Littoral Combat Ship (LCS) program - a move that positions Austal to bid as a prime contractor on this year's bid for 10 LCS ships for the U.S. Navy, and allows GD to go after another five ships to be awarded in 2012... >>>Rest of Article>>>

"Austal, General Dynamics part ways on LCS"
By Jeff Amy March 05, 2010

MOBILE, Ala. -- Austal USA and General Dynamics Corp. said Thursday that they're parting ways in the competition to build littoral combat ships for the U.S. Navy, a move that could give both sides advantages as they seek future contracts... >>>Rest of Article>>>

"Maine, Alabama shipyards end teaming arrangement"
by (AP) March 5, 2010

BATH, Maine — Maine's Bath Iron Works and Alabama's Austal USA are ending their partnership, allowing Austal to compete on its own for the next contract to build fast and agile warships for the Navy.

...In 2012, the Navy plans to award another five-ship contract that must go to a different builder. By breaking up their team, Bath Iron Works would be able to bid on the second contract... >>>Rest of Article>>>

Tab rises another $218,000, to tow barge out of Kahului harbor

2010-03-04T10:13:00.000-08:00

From: http://www.honoluluadvertiser.com/article/20100304/NEWS03/3040325

"Hawaii's tab for Superferry rises another $218,000, to tow barge" out of Maui harbor
By David Waite Advertiser Staff Writer Thursday, March 4, 2010

Hawai'i taxpayers aren't done yet paying for the failed Superferry project.

The state Department of Transportation's Harbors Division has awarded a $218,000 contract to Healy Tibbitts Builders Inc. to tow a state-owned barge, which had been used to load vehicles on and off the now-defunct interisland ferry, from Maui's Kahului Harbor to Honolulu...>>>Rest of Article>>>

Supposed "H4" documents floating around

2010-03-02T23:00:00.000-08:00

There are some documents floating around from an individual and private entity with a supposed Arabic investor that profess to be interested in finishing the E.I.S. Their "due diligence" research so far looks very remedial. In particular the H4.pdf attachment in that packet looks unprofessional and fake to me. Joan Conrow writes about the package here. I'll wait before I post anything more about it.

Doesn't make a lot of sense that the State House would be passing a bill to study the State owning such a ferry (crossed over to the Senate today) and at the same time a private investor would be proposing to finish the E.I.S. for and to run such a ferry.

One of 'em's got to be off. Maybe the "H4 Team" is real and Souki is just real 'slow'. Or maybe the "H4 Team" is a fake and Souki is just real 'slow'...

The Story Behind False Killer Whales

2010-02-25T17:14:00.000-08:00

From: http://honoluluweekly.com/cover/2010/02/truth-or-consequences/

"Truth or consequences"
False killer whales are disappearing from our waters faster than the Hawaiian monk seal
by Christopher Pala Feb 24, 2010

Two decades ago off the Kona coast of the Big Island, Dan McSweeney spotted a pod of 15-foot-long false killer whales jumping high out of the water and doing belly flops, a favorite hunting technique apparently designed to scare or confuse their prey. He sped over in his Boston Whaler and slipped into the water with a small air tank and a camera.

“I went down to 100 feet,” he recalls. “One of the whales racing toward me, he was holding the back half of a big yellowfin that must have weighed 150-pounds. He stopped suddenly about four feet away and released the tuna, which came floating toward me. I figured it was some kind of offering, so I took it. Then he dived under me, made a big circle and came back to the same spot and stared at me. He looked like he wanted it back, so I pushed it over. He took it and went off. I took a picture as he was swimming away with a few of his buddies.”

“It was one of those magical moments you never forget,” adds McSweeney, who has been studying marine mammals for 40 years and heads the Wild Whale Research Foundation in Holualoa...

>>>Rest of Article>>>

Not looking so good for Austal on LCS contract...

2010-02-18T19:39:00.000-08:00

Adm. on LCS decision, "all about procurement cost," w/cost cap of $480 million per ship & GD/Austal LCS-2 costing over $700 million, Lockheed/Martin LCS-1 looking like a winner:

From: http://www.reuters.com/article/idUSN1819337020100218?type=marketsNews

"Cost is critical factor in LCS competition-US Navy"
Thu Feb 18, 2010 1:04pm EST
By Andrea Shalal-Esa

WASHINGTON, Feb 18 (Reuters) - Cost will be the critical factor the U.S. Navy uses to judge competing designs from General Dynamics Corp (GD.N) and Lockheed Martin Corp (LMT.N) for a new class of fast, flexible, shallow-water warships, a top admiral said on Thursday.

Rear Admiral William Landay, program executive officer for Navy ships, said both designs met the Navy's requirements for its new Littoral Combat Ship (LCS), and the deciding factor would be procurement cost, even if one design offered certain advantages.

"While there are a number of factors in our RFP (request for proposals) ... in the end, for this particular acquisition, the cost of that ship is critically important to us, and that was our key overarching driver," Landay told reporters after addressing a conference hosted by Aviation Week magazine...

But at this point, procurement cost was the Navy's primary concern, given its plan to buy 55 of the ships and a congressional cost cap of $480 million per ship. "We're going to downselect to one, and the cost is going to be a critical piece of that. It's just the reality of it," Landay said.

The Navy gave industry the final terms for the competition in mid-January, and bids are in mid-March. It will pick a single winner to build 10 ships and combat systems for five more in late spring or early summer, Landay said...>>>Rest of Article>>>

What other bloggers are saying about these vessels

2010-02-15T22:28:00.000-08:00

Interesting the knowledgeable comparisons that are made in the following two recent blog posts:

Mulling the LCS down-select: | USNI Blog
By Defense Springboard
If LCS-1 wins the initial down-select, the JHSV catamaran becomes a viable platform. (And given the minimum-cost focus of the LCS RfP–LCS-1 may well end up winning the LCS contract.) In that case, the JHSV gets a wide-open niche to go ...
USNI Blog - http://blog.usni.org/

Information Dissemination: JHSVs Are Not Coastal Patrol Vessels
By Galrahn
You'll see, for example, improvements at the low end because we've stabilized the LCS program and increased the Joint High Speed Vessel program quite significantly, to 23 vessels. There was a big debate within the department on patrol ...
Information Dissemination - http://www.informationdissemination.net/

The following were a couple of interesting articles from last week on the JHSV. Recommend reading the one from the 9th:

High-speed Army catamarans could be based at Pearl Harbor

Feb 9, 2010 | By William Cole Advertiser Military Writer ... The Army said it plans to look at the environmental impact of basing up to three "joint high-speed vessels" in Pearl Harbor -- speedy craft capable of carrying large loads ...
Superferry-like military vessels may be based in Hawaii; Army to conduct EIS

Feb 8, 2010 | By William Cole Advertiser Military Writer ... The Army today said it plans to look at the environmental impact of basing up to three "joint high speed vessels" in Pearl Harbor -- a craft similar to the defunct ...

Revised Text of HB 2667 - From a State Authority to a Study That's Already Been Done, Twice Before

2010-02-11T22:29:00.000-08:00

Interesting that to save face Souki wanted to turn this into a study that's already been done. Enterprise Honolulu did a study on the ferry for the Legislature in 2004 and Market Scope Inc. also did a similarly applicable study for the PUC. Interesting, both of them have been taken down from the Internet since the entity went bankrupt, but people still have the .pdf copies of both.

Now, when there's not enough money for kids here to have 5 days of school a week, we're contemplating spending more money on a study that has already been done, not once, but twice before? Here's the most recent version of Souki's face saving bill. Souki, by the way, says it's gonna "sail" through the Finance Committee...it's next stop. We'll see about that:

From: http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2667

HOUSE OF REPRESENTATIVES	H.B. NO.	2667
TWENTY-FIFTH LEGISLATURE, 2010		H.D. 1
STATE OF HAWAII

BILL FOR AN ACT

RELATING TO FERRIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The State of Hawaii is made up of a chain of islands, six of which have major population centers. Unlike other states, Hawaii does not have the benefit of being linked to other states through the federal interstate highway system or a network of intersecting state and local highways and roads.

With the exception of slow, time-consuming interisland shipping and barge operations for the transportation of property between the islands, the only link between the islands for the transportation of persons is air transportation, with our present reliance on two interisland carriers and a few smaller commuter operations. However, this reliance on air transportation may be misplaced. With the exception of the island of Hawaii, each of the neighbor islands is served by only one airport, and each may be subjected to severe operational interruption in the event of a natural disaster, such as a hurricane or earthquake. Even the Hickam Air Force Base-Honolulu international airport complex, with its location along the shoreline on Oahu may be operationally shut down by a natural disaster. By way of example, had the airport at Lihue been shut down operationally in the aftermath of Hurricane Iniki, it would have taken days, if not weeks, before any major aid and relief in the form of water, food, medical supplies, and rescue workers could have reached the island. Hawaii is too reliant on its present slow water carriers and air carriers in the event of a major natural disaster.

While the Hawaii superferry operation had its shortcomings, rocky start, and questionable financial forecast, it proved to be a very successful mode of transportation of both persons and property between the islands of Maui and Oahu. It was the missing link in the transportation system between the islands that is so essential for the health, safety, and well-being of the people of Hawaii.

The purpose of this Act is to require the department of transportation to conduct a study on the feasibility of establishing a statewide ferry system to provide the necessary and essential additional missing link for the carriage of persons and property between the islands of the State.

SECTION 2. (a) The department of transportation shall conduct a study to determine the feasibility of establishing a statewide ferry system and a Hawaii state ferry system authority as the primary agency for oversight and regulation of the statewide ferry system.

(b) The department shall study various types of ferry systems, including passenger-only and passenger, automobile, and cargo ferry systems, that the department determines are suitable for operations within Hawaiian waters, taking into account such parameters as vessel design and speed, passenger capacity, cargo capacity, automobile capacity, availability of smaller vessels for transportation between the islands of Maui, Molokai, and Lanai, and compatibility with harbor infrastructure. The study shall also include:

(1) An analysis of potential costs and revenue of a statewide ferry system, as well as economic, social, and physical or other effects upon residents of and visitors to Hawaii;

(2) Any impact a statewide ferry system would have on the state and the counties;

(3) Information on the financing of a statewide ferry system, including the establishment of rates, fees, rents, charges, or any other payments or costs associated with a statewide ferry system;

(4) Information on the development of a special fund for the financial self-sustainability of the statewide ferry system; and

(5) Information on the impact a statewide ferry system would have on the other water carriers in the state.

(1) The composition of the authority;

(2) The rights, duties, powers, and obligations of the authority in developing, coordinating, and implementing state policies and direction for the safe transportation of persons and property between the Hawaiian islands; and

(3) The ability of the authority to eliminate or reduce barriers to travel between the Hawaiian islands and provide a positive and competitive business environment.

(d) The department shall submit a report of its findings and recommendations, including any necessary legislation, to the legislature, no later than twenty days prior to the convening of the 2011 regular session.

SECTION 3. This Act shall take effect on July 1, 2010.

Report Title:

Transportation; Ferry System Study

Description:

Requires the Department of Transportation to conduct a study on the feasibility of establishing a statewide ferry system and the Hawaii State Ferry System Authority for the operation of a ferry system between the islands. (HB2667 HD1)

Some things noticed in HB2667, the "Ferry Bill"

2010-02-08T20:14:00.000-08:00

Quoting in order from the measure at http://www.capitol.hawaii.gov/session2010/bills/HB2667_.pdf:

"While the Hawaii superferry operation had its shortcomings, rocky start, and questionable financial forecast, it proved to be a very successful mode of transportation of both persons and property between the islands of Maui and Oahu."

Actually, it did not. The financial failings were because of the amount of fuel consumed by these particular vessels, the distances involved, and low ridership partly due to conditions. These were intrinsic to it's failure. Also, why the lower case on "superferry" and why the slang "rocky." Already we have indications that this bill was not professionally written, out of Souki's Office?

"At minimum, the authority shall operate one high speed passenger and vehicular ferry vessel, with a minimum capacity of four hundred passengers and __ hundred vehicles, capable of operating at thirty knots or more, for the carriage of passengers and property between the major islands, and other small vessels, as needed, for service to the between the islands of Maui, Molokai, and Lanai and other routes."

Interesting key limitations and exclusions in this paragraph. First, notice that this has to be a "high speed" ferry. Also notice that it has to be able to carry "vehicles." The high speed, vehicular ferry is an uncommon combination throughout the whole U.S. There are only a few vessels in the U.S. that meet that requirement. It also goes to the crux of two of the key points of contention with the HSF vessels. But further, notice the requirement of at least "four hundred passengers and __ hundred vehicles" capacity. That differs from the unconstitutional Act 2 that required 500 passengers and 200 vehicles capacity, a key point that made it unconstitutional. The 400/100 opens it up to more vessels in the U.S. that meet that requirement, but none of them are high speed ferries except for the Akakai, Huakai, and The Cat (The Cat not made in the U.S.). The 400/100 requirement might though qualify smaller fast ferries (outside the U.S./or yet to be made) that might better match the operational requirements of the fuel consumption/distances travelled between the Hawaiian Islands.

"§ -4 Initial operations. (a) The authority, as soon as practicable, shall engage in communications with the United States Department of Transportation and the United States Maritime Administration relating to federal funding assistance and the possible purchase or lease of the former Hawaii superferry vessels Alakai and Huakai or other ayailable suitable vessels to commence its operations."

First, notice again the lower case "superferry." Also notice the sloppy misspelling of "ayailable" from the original. But also a point to be clear on about the quote, "or other ayailable suitable vessels," at present there are no other qualified fast ferry vessels made in the U.S. that meet the requirements of this bill, other than the Alakai and Huakai, so that last open-ended statement is intentionally vague and deceptive. But also it is clear from the above paragraph that the drafters of this in the Legislature hope for some sort of sweetheart preferential treatment and maybe even funding from the U.S. DOT, MARAD, or the Federal Government in general. That's the Obama Federal Government that just proposed more than a trillion dollar deficit for the coming year and the foreseeable future, not having included this pork project in their proposals. This is just "passing the buck" on fiscal responsibility by those who vote for this bill. Either that or we are talking about state subsidies for a money losing service over properly funding things such as public education...

"The authority shall have access on a priority basis into all harbors and small boat facilities operated by the department and the department of land and natural resources..."

So a key aspect of this bill would be subsidizing a state run ferry service, most likely at a loss, to compete with a number of private sector companies by water and air...

"The authority shall have all the rights, obligations, and duties of a common carrier of persons and property in its ferry system operations, including the right to a certificate of public convenience and necessity..."

Who is to determine that? The Legislature or the PUC? Will you study that to determine if there is really 'need'? Or just vacantly declare it so in this bill?

"SECTION 5. This Act shall take effect on July 1, 2010."

Good LUCK with that.

Status of this bill:
HB2667 Status
Written testimony thusfar:
HB2667_TESTIMONY_TRN_02-08-10_ Testimony
Copy of the bill:
View PDF of measure text

Ha ha ha ha ha ha, almost no lessons learned...back from the dead?

2010-02-08T19:21:00.000-08:00

Will write more on this soon, meanwhile check out the links:

Hawaii State Legislature
2010 Regular Session
HB2667

View all versions of this measure	Show Hearing Notices	Show Committee Reports	Show Testimony
View PDF of measure text	Subscribe to RSS feed

Measure Title:	RELATING TO FERRIES.
Report Title:	Transportation; Ferry System
Description:	Establishes the Hawaii state ferry system and the Hawaii state ferry system special fund for the operation of a ferry system between the islands. ($)
Companion:
Package:	None
Current Referral:	TRN, FIN

Introducer(s):

SOUKI, AWANA, SAY

Date		Status Text
1/25/2010	H	Pending introduction.
1/27/2010	H	Introduced and Pass First Reading.
1/27/2010	H	Referred to TRN, FIN, referral sheet 7
2/4/2010	H	Bill scheduled to be heard by TRN on Monday, 02-08-10 9:00am in House conference room 309.
2/8/2010	H	The committees on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 11 Ayes: Representative(s) Souki, Awana, Aquino, Hanohano, Keith-Agaran, Nakashima, Rhoads, Saiki, Takumi, Yamashita, Pine; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) M. Lee.

Huakai in Haiti: Military Rolls off Huakai into Haiti

2010-02-06T00:47:00.000-08:00

First HMSHaiti Pictures from Port-au-Prince: http://www.flickr.com/photos/hms-corp/show/ #Huakai #Alakai

NEPA EIS for JHSV

2010-02-05T10:54:00.000-08:00

From: http://aec.army.mil/usaec/nepa/topics00.html

Programmatic Environmental Impact Statements

Joint High Speed Vessel

The Army intends to prepare a programmatic environmental impact statement in 2010 for the proposed stationing and operation of joint high speed vessels. The JHSV is a strategic transport vessel designed to support the rapid transport of military troops and equipment in the U.S. and abroad. All interested members of the public, including native communities and federally recognized Native American Tribes, Native Hawaiian groups, Guam Chamorro Groups, and federal, state, and local agencies are invited to participate in the scoping process for the preparation of this PEIS. Comments may be sent to the Public Affairs Office, U.S. Army Environmental Command, 5179 Hoadley Rd, Attn: IMAE-PA, Aberdeen Proving Ground, MD 21010-5401; (410) 436-2556; fax (410) 436-1693; e-mail USAEC NEPA.

U.S. Army Environmental Command seeking Comments on JHSV's in Guam, Hawaii, San Diego and Seattle

2010-02-05T02:06:00.000-08:00

From: http://www.guampdn.com/article/20100204/NEWS01/2040302/Guam-may-host-Army-fast-ships

"Guam may host Army fast ships"
By Gaynor Dumat-ol Daleno • Pacific Daily News • February 4, 2010

Guam is one of several areas being considered as a station for up to a dozen high-speed catamaran-style military ships each capable of transporting more than 300 people per ship, according to an Army Environmental Command announcement.

Hawaii, San Diego and Seattle are also being considered, according to the command's announcement, which was issued as an advertisement in the Pacific Daily News to solicit public comments.

A cooperative effort between the Navy and the Army, the Joint High Speed Vehicles, or JHSVs will be used for fast intra-theater transportation of troops, vehicles and equipment, according to an earlier Defense Department announcement of the program on defenselink.mil.

"JHSVs will be capable of transporting 700 short tons (within) 1,200 nautical miles at an average speed of 35 knots, and can operate in shallow-draft ports and waterways, interfacing with roll-on/roll-off discharge facilities, and on/off-loading a combat-loaded Abrams Main Battle Tank," according to the Defense Department.

These ships all give commanders the ability to roll on a company with full gear and equipment, or roll on a full infantry battalion if used only as a troop transport, haul it intra-theater distances, then move their shallow draft safely into austere ports to roll them off, according www.defenseindustrydaily.com.

Initial uses of the high-speed vessels have led to a $1.6 billion program called the Joint High Speed Vessel, which could involve up to 10 ships, according to defenseinustrydaily.com.

The Army Environmental Command notice for public comment says up to 12 Joint High Speed Vessels will be stationed.

TO COMMENT

Report: Navy's Joint High Speed Vessel at risk in combat

2010-01-30T17:58:00.000-08:00

From: http://blog.al.com/live/2010/01/report_navys_joint_high_speed.html

"Report: Navy's Joint High Speed Vessel at risk in combat"
By Sean Reilly January 30, 2010

WASHINGTON -- As the Navy ramps up production of the Joint High Speed Vessel, the Pentagon's chief weapon tester is warning that the low-slung cargo ship has little or no chance of surviving an enemy attack.

Manufactured by Austal USA's Mobile shipyard and modeled on a commercial ferry, the vessel "is not designed or expected to be survivable against weapons effects encountered in combat missions," according to the latest annual review by J. Michael Gilmore, director of operational test and evaluation at the Defense Department.

In a Friday statement, Navy spokeswoman Monica McCoy said the vessel is not designed to operate in uncontrolled environments and thus "does not require the survivability and ability to sustain damage like a surface combatant" ship...>>>Rest of Article>>>

We had this conversation before with regard to aluminium, burn, and things like white phosphorus...

Austal awarded $204 million to build 2nd and 3rd JHSV's

2010-01-28T17:54:00.000-08:00

Announced the day after the Huakai is used for the first time...by the military. Is that $204 million for both or for each? Or for both just to get 'em started? Either way quite a bit different price from the 1st one...

CONTRACTS
NAVY
Austal USA, Mobile Ala., is being awarded a $204,238,728 modification to previously awarded contract (N00024-08-C-2217) to exercise options for Ships 2 and 3 of the Joint High Speed Vessel (JHSV) program. The JHSV will provide high speed, shallow draft transportation capability to support the intra-theater maneuver of personnel, supplies, and equipment for the Navy, Marine Corps and Army. Work will be performed in Mobile, Ala., and is expected to be completed by July 2012. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

From: http://blog.al.com/live/2010/01/austal_awarded_204_million_to.html

"Austal awarded $204 million to build second, third Joint High Speed Vessel"
By Kaija Wilkinson January 28, 2010, 4:22PM

MOBILE, Ala. -- The U.S. Navy has awarded $204.2 million to Mobile's Austal USA shipyard for the Joint High Speed Vessel (JHSV) program, part of a potential 10-vessel, $1.6 billion contract Austal landed in November 2008, Alabama Sen. Richard Shelby, R-Tuscaloosa, announced today.

The funding will allow for construction of the second and third vessels, high-speed transport ferries that will be used by both the U.S. Army and Navy, according to Shelby's office.

Austal began work on the first JHSV in December...

(For a complete report, read Friday's Press-Register.)

Video: Huakai Underway Today

2010-01-27T22:59:00.000-08:00

Pictures: Superferry load-out

BY MIKE HOLTZCLAW
January 27, 2010

FORT EUSTIS - The Superferry Huakai was loaded up at Fort Eustis today with equipment and soldiers bound for Haiti and the ongoing earthquake relief effort.

The U.S. Army's Military Surface Deployment and Distribution Command (SDDC) will send its 597th Transportation Brigade to Port-au-Prince to deliver humanitarian supplies.

In a press release, the SDDC noted that the Huakai "traditionally only moves passengers," but for this mission the Maritime Administration has given operational control of the vessel to the Military Sealift Command to deliver equipment and cargo as well as military personnel.

Obama Preparing to Make a Mistake with HMS Haiti?

2010-01-25T15:55:00.000-08:00

From gallupnews - Americans Lean Against Letting More Haitians Into U.S.: http://bit.ly/7UkFvd counter to what #Obama intends with #HMSHaiti?

HMS Haiti and Never before seen pictures of the Huakai

2010-01-21T15:50:00.000-08:00

From Timothy Dick today, founder of HSF:

http://www.hmshaiti.com/

Also, never before seen pictures of the Huakai:

http://www.flickr.com/photos/hms-corp/

Video: Current Harbor and Ferry Operations in Haiti:
http://bit.ly/7At07M

Alakai Headed to Haiti Too

2010-01-21T00:18:00.000-08:00

From: http://www.honoluluadvertiser.com/article/20100120/BREAKING01/100120032/Alakai+gets+call+for+Haiti+relief+duty

Updated at 12:04 p.m., Wednesday, January 20, 2010
"Alakai gets call for Haiti relief duty" by Advertiser Staff

...U.S. Secretary of Transportation Ray LaHood announced today that the Department's Maritime Administration has started preparing Alakai for relief duty in Haiti. The ship will be crewed by civilian mariners. "This ship will help our relief workers on the ground by allowing quick movements of people in and out of Haiti from various staging points," LaHood said in a statement...

From: http://blog.al.com/press-register-business/2010/01/hawaii_superferry_built_at_aus.html

"Hawaii Superferries built at Austal's Mobile shipyard to deliver Haiti relief"
By Kaija Wilkinson al.com January 20, 2010, 10:16AM

Huakai, a catamaran designed and built by Austal USA, has been mobilized along with its sister ship Alakai by MARAD for relief efforts in Haiti. MARAD reposessed the vessels in summer 2009 after Hawaii Superferry Inc. went bankrupt. Two high-speed catamarans built at Austal USA in Mobile for Hawaii Superferry Inc. are headed to Haiti to assist with relief efforts, the U.S. Maritime Administration (MARAD) announced today...

Although no details have been released about how they will be used, the ships may serve as a link between Haiti and Naval Station Guantanamo Bay, Cuba or Miami, carrying relief supplies and personnel to and from Haiti.

The catamarans can carry nearly 800 tons per voyage, Austal said. They will be crewed by Hornblower Marine Services of Albany, Ind.

Huakai Superferry Headed to Haiti

2010-01-19T10:03:00.000-08:00

From: http://www.starbulletin.com/business/20100119_Never-used_Superferry_vessel_mobilized_to_aid_Haiti_relief_effort.html

"Never-used Superferry vessel mobilized to aid Haiti relief effort"
The U.S. Transportation Department obtained the Huakai after Hawaii Superferry shut down
By Nina Wu Jan 19, 2010

The M/V Huakai, the high-speed ferry that never fulfilled its purpose as part of Hawaii Superferry operations last year, will be mobilized for relief duty in Haiti...>>>Full Article>>>

Can't frickin' believe we have to keep repeating these things!

2010-01-18T21:48:00.000-08:00

From: http://www.honoluluadvertiser.com/article/20100118/BREAKING01/100118067/Governor+says+city+needs+to+revise+its+financial+plan+for+rail+project

"Governor says city needs to revise its financial plan for rail project"
Updated at 4:02 p.m., Monday, January 18, 2010

...GOVERNOR LINDA LINGLE OPENING REMARKS

AMERICAN INSTITUTE OF ARCHITECTS – HONOLULU CHAPTER

PRESENTATION ON HONOLULU RAIL TRANSIT

Monday, January 18, 2010...

Re: "The Superferry did not use one dollar of public funding. We had reimbursable general obligation bonds that were paid for, and will be paid for, by the people who use the harbors. There's not one dollar of direct tax funding that ever went to Superferry or was pledged to Superferry or will be used for Superferry in the future."

WRONG! The Superferry DID use public funding beyond the general obligation bonds. Beyond the bonded money there was all of the money spent to fix the barge at Kahului harbor. There was all of the money spent on the tug boat service daily to hold the barge to the Kahului pier when the ferry came in. There was all of the money spent for extra DLNR security when the ferry first started operating and then continuing for inspections. There was all of the money spent to pay for the Act 2 Special Session. There was all of the legal fees of the Attorney General in this case. There are all of the legal fees of the continuing bankruptcy proceedings.

Re: "In addition, there was never a requirement for an EIS for the Superferry until it was challenged and went to the State Supreme Court and then the Supreme Court made the ruling. The Superferry was treated the way every other ocean-related project was treated whether it was Matson, NCL, Young Brothers or anyone else using our oceans. It was treated the same way, our Administration made the same decision, it's just that the Supreme Court changed the law with their decision."

WRONG AGAIN! You are one hard-headed, obstinate politician! The EIS requirement existed all along, before the Supreme Court even made their first ruling on this. The Superferry was not treated the same as the other harbor users. Those harbor users have had to do EIS's for similar projects. The Supreme Court never changed the law. In fact, it was your Attorney General who wrote the flawed new law Act 2 and your Administration who lobbied the new law through the Legislature. The underlying HEPA law never changed. The Supreme Court never changed the law.

Still Sittin' There...

2010-01-18T10:59:00.000-08:00

From: http://connect.hawaiinewsnow.com/vmix_hosted_apps/p/media?id=9401236&item_index=23&all=1&sort=NULL

Click on image to enlarge.

Hawaii Super Ferry sighting
Full Description:
This is both of the Hawaii Super Ferries sitting here in downtown Norfolk, Virginia. I am in the Navy and just transferred to Norfolk from Pearl Harbor.
By: OS2(SW) Jon P Florez, US Navy

GD Austal May Break Up LCS Team

2010-01-10T17:28:00.000-08:00

From: http://www.defensenews.com/story.php?i=4447501

"GD May Break Up LCS Team"

By Christopher P. Cavas
Published: 11 January 2010

The partnership between General Dynamics and Austal USA that has produced one of the two contenders for the U.S. Navy's Littoral Combat Ship (LCS) is preparing to break up - a reaction to the Navy's increased push for multiple layers of competition in the program.

The move is expected to position GD to build further LCS ships in one of its own shipyards, regardless of the outcome when, later this year, the Navy chooses between the GD LCS design and one from a Lockheed Martin-led team.

GD, through its Bath Iron Works subsidiary, is the prime contractor on the LCS bid, allied with shipbuilder Austal USA in Mobile, Ala. The partnership, formed to compete for the 2004 LCS program, saw Bath, with more than a century of experience building naval ships, overseeing relative newcomer Austal USA, a subsidiary of Australia's Austal shipbuilding company. GD's LCS proposal is based on an all-aluminum commercial ferry design from Austal.

All along, GD has planned to expand LCS construction to one of its own shipyards - Bath's yard in Maine or the National Steel and Shipbuilding Company (NASSCO) facility in San Diego - whenever LCS production ramped up. The Navy had planned to buy unspecified numbers of each team's LCS, but in September the service changed its acquisition strategy to a single-design downselect - a decision expected to come in late spring or early summer.

But with the single-design switch, the Navy also now wants a second-supplier shipyard that can't be associated with the primary builder. That would mean that, should the Navy choose GD's LCS, the company's shipyards would be excluded from bidding to become the second shipyard. As a result, GD and Austal USA are prepared to split up their partnership.

No final decisions have been made, as the companies are waiting to see the Navy's latest Request for Proposals (RfP), expected to be released in mid-January. The RfP already has been delayed several weeks to allow the Navy to react to industry responses from a preliminary RfP issued last fall.

It is not clear what effect the shipyard breakup would have on GD's Advanced Information Systems (AIS) division, which designed the combat system for the ships.

Officials from General Dynamics, Austal USA and the Navy declined to comment on the story, citing its speculative or preliminary nature. >>>Rest of article>>>

The Coast Guard's Official 'Line' on the Superferry

2009-12-25T07:30:00.001-08:00

From pages 16-19: http://www.uscg.mil/hq/cg5/docs/Summer%202008%20Proceedings%20Info%20Share%20special%20section.pdf

From: http://cgmarinesafety.blogspot.com/2009/12/hawaii-superferryinformation-sharing.html

Wednesday, December 23, 2009

"The Hawaii Superferry—information sharing leads to operational success"

Posted by USCG Proceedings of the MSSC

Excerpt from U.S. Coast Guard “Proceedings of the Marine Safety & Security Council” magazine. By CAPT Vince Atkins, former commander, U.S. Coast Guard Sector Honolulu, and ENS Meghan Hough, U.S. Coast Guard Sector Honolulu.

Hawaii Superferry (HSF) came to Hawaii to start a high-speed ferry service between the Hawaiian islands of Oahu, Maui, and Kauai. The Superferry vessel, the Alakai, is a 350-foot high-speed catamaran designed to carry 866 passengers and 282 vehicles.

A Hostile Operating Environment

Citizens and environmental groups opposed to this new service voiced several concerns, citing Alakai’s lack of an environmental impact study, the possibility of increased traffic congestion, and the potential for introducing invasive species and harming marine life.

Alakai’s initial operations were greeted by an estimated 300 protestors in Kauai, endangering public safety at sea and ashore...

Unique Challenges...

Achieving Interagency Alignment...

Execution of the Operation...

For more information:
Full article and “Focus on Safety” edition of USCG Proceedings is available at www.uscg.mil/proceedings. Click on “archives” and then “2008 Vol. 65, Number 2," pp. 16-19 (Summer 2008).

Constant missteps such as these...

2009-12-07T09:55:00.000-08:00

Still got the webbots going, waiting for news on the bankruptcy, and this came in:

From: http://volcanicash.honadvblogs.com/2009/12/07/let-the-competence-begin/

"...Constant missteps such as these — not to mention grand-scale blunders like the Hawaii Superferry — are shaping up as a sad legacy for an administration that started out with such high hopes of effecting historic change." Tags: economy, Linda Lingle

Their current blunder gaining steam is unnecessarily building a bike path ON Wailua Beach, that State DOT Director Brennon Morioka is apparently adamantly in favor of.

Hawaii interisland shipping news

2009-11-28T00:31:00.000-08:00

Interesting blog post on interisland shipping...
like the dueling economists coverage in this piece:

http://bizbites.honadvblogs.com/2009/11/26/laissez-unfair/

Biz Bites| Biz Bites blog, honoluluadvertiser.com | Honolulu, Hawaii

bizbites.honadvblogs.com By Rick Daysog

Hey, Mike, what's happening with the Chapter 343 EIS?

2009-11-20T10:41:00.000-08:00

From: http://www.starbulletin.com/columnists/20091120_Superferry_is_a_long_shot_to_return_to_island_waters.html

"We recognize the value that the ferries can provide Hawaii and are willing to work with transportation planners, providers and officials to advance proposals to use them in regular service in Hawaii," a MarAd spokesperson said recently.

Selling LCS technology overseas?

2009-11-18T16:04:00.000-08:00

Selling 'Superferry' LCS technology overseas?
http://newwars.wordpress.com/2009/11/18/lcs-alternative-weekly-3/

LCS Alternative Weekly « New Wars

Source: newwars.wordpress.com

The littoral combat ship Pre-Commissioning Unit (PCU) Independence (LCS 2) pulls away from the pier for her acceptance trials at Austal USA in Mobile, Ala....

Batten down the hatches, boys!...

2009-11-09T17:49:00.000-08:00

From: http://blog.al.com/live/2009/11/gov_riley_declares_state_of_em.html

"Updated with video: Gov. Riley declares state of emergency for Alabama as Ida approaches"
By Press-Register staff November 9, 2009

MOBILE, Ala. - Gov. Bob Riley today declared an official state of emergency in Alabama due to the imminent threat posed by Tropical Storm Ida. The emergency declaration enables the governor to invoke various emergency preparedness measures.

Gov. Bob Riley speaks at a dedication ceremony Monday, Nov. 9, 2009, at the Austal USA shipbuilding facility in Mobile, Ala. Riley used the dedication ceremony to announce that he has issued a state of emergency for Alabama as Tropical Storm Ida approaches. During a news briefing at shipbuilder Austal USA in Mobile, Riley urged Alabama residents to take the threat seriously and to follow the direction of local emergency managers for storm preparation.

"Based on the latest information I have seen, Alabama lies directly in the path of Tropical Storm Ida," Riley said...

State of Emergency declared for Ida

Still available for sale...WHAT A DEAL!

2009-11-03T17:36:00.000-08:00

From: http://www.marinebusiness-world.com/index.cfm?nid=62874

'The 102m trimaran is available for sale.' Click Here to view large photo

"Austal prepares to launch 102m trimaran"

Austal is preparing to launch its new 102 metre trimaran vehicle/passenger ferry platform at the company’s Western Australian shipyard.

The latest trimaran ferry builds on Austal’s landmark 2005 trimaran “Benchijigua Express” in every sense - optimising performance, seakeeping, fuel efficiency, passenger comfort and payload to deliver a truly next generation transportation solution.

With a maximum deadweight of 700 tonnes and a speed of up to 39 knots, the vessel is available for purchase.

By utilising Austal’s patented trimaran technology, the vessel combines the softer roll of monohulls with the low resistance, stability and carrying capacity of catamarans to open up new opportunities beyond those served by existing fast ferry designs. The trimaran’s lower roll speed means lower accelerations experienced by passengers – significantly reducing passenger seasickness.

Austal Director – Global Sales and Marketing, Andrew Bellamy, said the vessel had already attracted significant worldwide interest ahead of its completion in February 2010.

“Many operators recognise this as a fantastic opportunity to have a state-of-the-art high speed commercial platform delivered and in service as early as March 2010, just five months from now,” Mr Bellamy said.

Austal’s 102 metre trimaran delivers enhanced performance in waves and better fuel economy.

“The enhanced seakeeping of this vessel will help operators offer better service on existing routes plus also begin operations on new routes where sea conditions had previously been too challenging. The possibilities for many operators are definitely exciting.”

At the heart of Austal’s new 102 metre trimaran are three MTU 20V 8000 Series diesel engines, which offer the world’s highest power-to-weight ratio in their power range and are established as a low risk propulsion engine option for many leading high speed ferry operators.

A seating layout that draws on Austal’s 20-year experience with a wide range of customer requirements can be customised to seat up to 1165 passengers.

The extensive range of high quality onboard facilities includes two bar areas, a food preparation and service counter and a boutique gift store. Onboard amenities are designed to maximise accessibility and include wheelchair-accessible toilets, lift and four independent passenger entry points.

Passenger-friendly seating density ensures rows are limited to no more than three seats, increasing comfort and accessibility, which is important during longer journeys. An outdoor seating area is also available.

The vehicle deck has space for 245 cars or 190 truck lane metres plus 145 cars. The stern is reinforced to accept a vehicle ramp if required. With flexibility in mind, the mezzanine deck is a mixture of fixed and hoistable decks that allow the carriage of up to 132 cars with a clear deck height of 2 metres. When hoisted there is a height on the main deck below of 4.3 metres and 2.3 metres when lowered. The trimaran’s unique hydrodynamic hullform combined with its three engine propulsion train delivers fuel efficiency across a range of operating conditions.

A speed of 39 knots (@ 90% MCR) is achieved with fuel consumption of 4.78 tonnes/hour.

A $50 to $60 Million the State of Hawaii could use about now...

2009-11-03T00:20:00.000-08:00

From: http://parxnewsdaily.blogspot.com/2009/11/puppy-love.html

Monday, November 2, 2009

PUPPY LOVE: You can’t pick up a newspaper, watch the local TV news- or what passes for “Hawai`i News, Now”- or for that matter hold a conversation these days without someone bemoaning how our keiki are suffering by “missing out” on 17 instructional school days.

Everyone that is but the kids themselves. Oh sure the media has managed to scrounge-up a handful of Goody-Two-Shoes, “I’m gonna teeeeeell” types and stick cameras in their faces so they can parrot what their parents told them to say about “sacrificing our future” because a petty vindictive governor and a pompous and lazy legislature fiddle while education burns.

But move outside the ear-shot of the grown-up and ask any red-blooded kid- especially those who are bored to tears at this year’s “long division again” curriculum- and you’ll hear nothing but “Hip Hip Hooray for “Furlough Fridays”

They’re ecstatic about the fact that the so-called adults are so busy fighting over political considerations that they can’t come up with a lousy $60-85 million to keep the schools open despite the half-a-billion federal stimulus dollars that were supposed to be spent specially for education but instead went for everything but.

$60-85 million?... hmmmm- why does that number sound familiar?

Oh yeah- that’s the same range of the estimate of how much the self-same governor and legislature blew trying to pull a super-fast-one and ram the super-fast-tracked super-fast-Superferry down our gagging throats.

When you include not just the base $40 million bucks for the unneeded, now-useless harbor improvements but stuff like keeping the half-assed barge loading system running, the millions in legal fees and state-worker time and expenses as well as dozens of other costly incidentals, it comes out to... let’s see, divide by the arrogance, carry the corruption, multiply by the “legal bribe” corporate campaign contributions.... oh, around $60-85m.

So kiddies, the least you could do with all your free time is get busy writing to your military-madness-mindset-muddled senator, your Stepford Wife governor and your bought and paid for state legislative leadership and thank them for the gift of “Superferry Fridays.”

With any luck these dolts will figure out a way to fritter away another $60-85 million and make all weekends the three-day variety.

Posted by Andy Parx

Interesting...

2009-10-21T17:58:00.000-07:00

From: http://www.sys-con.com/node/1153705

"General Dynamics' Littoral Combat Ship Independence Completes Builder's Trials"
By: PR Newswire Oct. 21, 2009

MOBILE, Ala., Oct. 21 /PRNewswire-FirstCall/ -- Independence (LCS 2), the innovative high-speed trimaran combatant ship being constructed by shipbuilder Austal USA in Mobile, Ala., as part of the General Dynamics Littoral Combat Ship Team, successfully completed a series of tests known as builder's trials on October 18 in the Gulf of Mexico. The trials included more than 50 demonstration events that rigorously test the ship and all of its systems in preparation for final inspection by the Navy before delivery.

Notable achievements during the trials included reaching a sustained speed of 44 knots during the required four-hour full-power run, with a top speed in excess of 45 knots...

Many of the test events were conducted in high sea-state and wind conditions (8-foot waves and winds in excess of 25 knots). Despite the weather, the ship repeatedly reached speeds of over 45 knots with propulsion and ride-control systems operating in full automatic mode, proving the effectiveness of the control systems and the highly efficient and stable characteristics of the trimaran hull form.

A series of high speed ahead and astern maneuvers in these sea state conditions proved the effectiveness of the ship's four steerable water jets. During the repeated high-speed turns the ship demonstrated excellent agility and stability characteristics.

The ship's flight deck remained stable despite sea state conditions and maneuvers...

General Dynamics Bath Iron Works is the prime contractor for the General Dynamics Littoral Combat Ship Team. Partners include shipbuilder Austal USA (Mobile, AL); General Dynamics Advanced Information Systems (Fairfax, VA); BAE Systems (Rockville, MD); L3 Communications Marine Systems (Leesburg, VA); Maritime Applied Physics Corporation (Baltimore, MD); and Northrop Grumman Electronic Systems (Baltimore, MD).

Bath Iron Works employs approximately 5,700 people. Since 1991, BIW has manufactured and delivered 31 Arleigh Burke-class destroyers; the shipyard is also building the lead ship of the Navy's Zumwalt (DDG 1000) class of guided missile destroyers.

Austal USA's Mobile facility currently employs almost 1,000 workers and is the largest aluminum shipyard in the world. In addition to the LCS, recent projects have included construction of the largest-ever aluminum ferry in the United States. Austal is also in the pre-construction design phase on the first Joint High Speed Vessels (JHSV) for the U.S. Department of Defense...

Good blog coverage and comments elsewhere...

2009-10-20T00:41:00.000-07:00

Springbored's Springboard has some good posts and reader comments on both LCS and JHSV. See: Austal: Indications And Warmings and What Do Austal's Other Monster Trimarans Mean For LCS-2?

Which has a reader comment link to the following:

From: http://www.rolls-royce.com/marine/products/ship_design/naval_support_vessels/flv/index.jsp

Naval fast logistic vessels

Economic fast strategic sea-lift

The Rolls-Royce family of speed troop transport and fast logistic vessel designs have the rare combination of long range and high speed with relatively high payload. Technology transfer across commercial and naval applications has led to these 40 knot vessel designs capable of meeting emerging military needs.

Intra-Theatre Logistics Vessel - A fast steel monohull vessel configured to deliver capability within Operational Theatre. The vessel is designed to operate at an average speed greater than 40 knots and has a long- self-deployment range.

The design uses a monohull commercial ropax hull design with a wave-piercing bow. With a range of 3,000nmiles, 2,500 tonnes of cargo can be transported at 40 knots, almost twice as fast as existing ships of equivalent payload.

The smaller Intra-Theatre Logistic Vessel has a cargo area of 2,310m² and is capable of transporting up to 350 troops over 4,000nm at 40 knots.

Specific military features include a helicopter landing area amidships capable of accommodating an aircraft up to Chinook size.

LCS-1 Freedom to deploy ahead of schedule

2009-10-16T01:03:00.000-07:00

From: http://www.al.com/business/press-register/index.ssf?/base/business/12555982076330.xml&coll=3

Business Briefs

Thursday, October 15, 2009

LCS Freedom to deploy ahead of schedule

The littoral combat ship Freedom will be deployed two years early, in early 2010, U.S. Navy officials announced Tuesday.

In a written statement, Chief of Naval Operations Adm. Gary Roughead called the decision "a big step forward in getting this ship where it needs to be," operating in shallow waters in the Pacific and near South America.

Built by Lockheed Martin Corp., Freedom is the first of two LCS. The second, Independence, was built in Mobile at Austal USA by a General Dynamics Corp.-led team

Independence is in testing and scheduled for delivery by year's end.

The Navy has said it will, in 2010, choose between the two LCS designs before ordering additional ships...

LCS-2 Takes on Water...Déjà vu...flashback to Austal welder's radio interview in April 2008

2009-10-10T23:02:00.000-07:00

The following interesting news brief today out of Mobile, Alabama. This reminds me of comments by former Austal first class welder Wayne Jenkins in a radio interview from April 2008. A link to that interview is here at Disappeared News. In that interview Wayne speaks about this area of the ships. Might venture a guess to check the welds, and the production processes used to deal with possibly imperfect aluminium "butt welds"?

From: http://www.al.com/business/press-register/index.ssf?/base/business/1255166112192270.xml&coll=3

Business Briefs

Saturday, October 10, 2009

LCS-2 Independence takes on water

General Dynamics Corp. said this week that the jet-drive compartment on the Austal-built littoral combat ship Independence took on an undetermined amount of water Oct. 1. The compartment is an unmanned space that houses waterjets, gears and other mechanical and electrical equipment for the ship's propulsion system.

"When (Austal) discovered the issue, they dewatered the space," said General Dynamics spokesman Jim DeMartini. "At this stage, we're pretty well back on track."

The flooding resulted in the replacement of some components, though nothing major, he said. General Dynamics, Austal and the Navy are investigating the cause, he said.

The new breed of shallow-water warship was built at Austal for a General Dynamics-led team. It is scheduled to undergo acceptance trials by the Navy in mid-November and be delivered by the end of the year...

Ohhh, Hawaii just a little bit too early...

2009-10-08T22:15:00.000-07:00

Shipbuilding News

by Larry Pearson

More money for the ferry industry

For the second time in less than three months, the U.S. Department of Transportation (DOT) is playing Santa Claus to the ferry industry. DOT Secretary Ray LaHood has announced more than $42 million in grants to improve ferry service and build new docks and other facilities in 15 states and Puerto Rico. This totals $110 million for the year, an amount exceeding the $100 million in small shipyard grants awarded in August with funds appropriated under the federal economic stimulus bill.

The top three awards were for $3 million each. Two of those were for new ferries in Puerto Rico and San Francisco. In addition to those three, there were seven other awards above $1 million, all involving new/renovation ferry construction or engines for existing ferries. Continue reading…

Latest on Austal-USA Troubles

2009-10-08T19:08:00.000-07:00

Judge rules Austal once again engaged in unfair labor practices
Press-Register - al.com - Mobile, AL Oct. 7, 2009
By JEFF AMY and KAIJA WILKINSON

A union could get a third crack at organizing Austal USA's workers after an administrative law judge ruled the Mobile River shipyard again committed unfair labor practices in the run-up to an April 2008 election... >>>Continued here>>>

Long-Delayed LCS-2 Trials Set To Resume
DefenseNews.com Oct. 7, 2009
By Christopher P. Cavas

Sea trials of the first Littoral Combat Ship (LCS) from General Dynamics (GD) could resume as early as next week, sources said, giving shipbuilders and their U.S. Navy customers a chance to see if numerous engineering fixes implemented since the summer have taken hold.

The ship, named Independence, went out for an initial series of builder's trials in early July, but except for a handful of day trips, it has been pierside since then at Austal USA's shipyard in Mobile, Ala. A series of problems, many of them associated with the propulsion plant, cropped up during the trials, and officials decided to take the ship out of trials mode and work on getting things finished... >>>Continued here>>>

50 P/E?, Oh shoot, could be half that...

2009-09-25T20:42:00.000-07:00

From: http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ric=ASB.AX

Austal Ltd.

ASB: Australian Stock Exchange

LAST A$2.57 AUD

CHANGE TODAY -2.28%

P/E 50

ASB On Other Exchanges

Snapshot of Austal Ltd. (ASB):

ASB Advanced Stock Chart

Interesting news between the lines today on LCS, JHSV, and A-615 and A-616

2009-09-24T00:45:00.000-07:00

From: http://www.bloomberg.com/apps/news?pid=20601087&sid=aNMlnU1TAETo

"Littoral Ships, Other Weapons Cut in New U.S. Navy 5-Year Plan"
By Tony Capaccio

Sept. 23 (Bloomberg) -- The U.S. Navy has proposed a new five-year budget that cuts by almost half its purchases of a new warship that operates close to shore, a potential blow to Lockheed Martin Corp. and General Dynamics Corp.

The Navy would buy 15 of these ships through 2015, down from 29 in its plan of a year ago, and trim spending overall by 4.5 percent, according to an unreleased budget document. That’s the goal set by top Defense Department officials.

Lockheed and General Dynamics are the prime contractors for the new Littoral Combat Ship. Each has a contract to build two and would have to compete for contracts for the next 15...

The ships are designed for mine clearance, submarine hunting, humanitarian relief, and other missions in shallow coastal waters called littorals. They have a draft of no more than 20 feet, enabling them to operate close to coasts in the Persian Gulf, Korean peninsula and elsewhere...

Programs Deferred

The Navy would trim about $25 billion through 2015 by deferring or canceling weapons programs, including a total of about $18 billion in its shipbuilding account, which includes the littoral ship...

The Navy plan also would cut through 2015:

-- Two of 11 planned high-speed [JHSV], shallow-draft troop and cargo vessels managed by the Navy to transport Army and Marine Corps units and helicopters. Austal-USA is building the vessels in Mobile, Alabama.

[A good guess is those Two JHSV's they no longer will be building are A-615 and A-616. I'd say it's a sure thing they will be retrofitted and "painted gray."]

Was ferry's side door open? and did cargo shift?

2009-09-22T11:39:00.000-07:00

There's been a lot of articles on Philippines Superferry 9, but this one stands out from the rest:

From: http://fairplay.co.uk

"Was ferry's side door open?"
Daily News 22 Sep 2009

OFFICIALS investigating the Superferry 9 sinking are today addressing the possibility that the ro-pax’s crew failed to seal the side entrance before it sank in the Philippines. This entrance, positioned on the lower portion of the ship, should always be closed because it is the closest to the water, said the Board of Marine Inquiry, which is seeking to question workers at the last port where the ferry called before sailing. If the crew failed to seal that entrance tightly, the entrance would have been exposed to water ingress when the ro-pax listed by 25 degrees, said Alejandro Flora, BMI panel member and Coast Guard vice commandant. The board moved to the side-door theory after the master and crew testified that the 7,268gt ship’s cargo of containers and vehicles had been properly lashed and secured. Still, cargo movement is thought by investigators to have contributed to the sinking when the ship listed. Superferry 9 sank off the Zamboanga Peninsula on 6 September; 10 people were killed.

PBN: Callin' It Like It WAS

2009-09-21T22:57:00.000-07:00

From: http://pacific.bizjournals.com/pacific/stories/2009/09/21/editorial3.html?b=1253505600^2125731&s=industry&i=economic_snapshot

Economic Snapshot
Friday, September 18, 2009
"Wobbly support wasn’t Superferry’s biggest problem"
Pacific Business News (Honolulu)

...We long have believed that the Superferry was operating with flawed business assumptions. Putting aside state officials’ blunder in reasoning that the Superferry didn’t need an environmental assessment, we are not convinced that there was enough passenger, vehicle and freight revenue to cover the cost of running two big ships.

In its brief time in service, the ferry showed it was unreliable and that the trip to Maui produced a nightmare of seasickness. Small businesses found it still made more sense to put their goods on a barge than to commit a driver and truck to an all-day run to or from Oahu.

Marching and marauding politicians and businesspeople can’t overcome a bad business plan or flawed legal advice. Lingle’s shots were off the mark and unrealistic.

This Thing's More Realistic for the Littorals than either LCS-1 or LCS-2

2009-09-19T11:58:00.000-07:00

In the comments over at Information Dissemination "The LCS is still a Mess" there's lots of good analysis of just what the last press release on LCS may mean. In particular, given the nature of the new acquisition contract competition, the commentators there are evaluating other existing ship designs and shipyards that might satisfy the new LCS requirements. The most interesting one mentioned is USCGC Bertholf (WMSL 750). WMSL 750, 751, and the rest of that class look to be more realistic for the global littorals than LCS. It's cheaper (half the price), fast enough, more fuel efficient, more versatile, carries a larger payload, has much longer range, better armed and defended, and better able to sustain damage and keep on going compared to LCS. Austal is toast. Here's some info and links on WMSL:

More pictures of the USCGC Bertholf (WMSL 750)

From Wikipedia:

Career (USCG)
USCGC Bertholf (WMSL-750)
Ordered:	January 2001
Builder:	Northrop Grumman Ship Systems, Pascagoula, Mississippi
Cost:	$285 million
Laid down:	March 29, 2005
Launched:	September 29, 2006
Christened:	November 11, 2006
Commissioned:	August 4, 2008
Homeport:	Alameda, California
Motto:	"Legends Begin Here"
Status:	Commissioned
General characteristics
Type:	National Security Cutter
Displacement:	4500 LT
Length:	418 feet
Beam:	54 feet
Draught:	30 feet
Propulsion:	Combined diesel and gas
Speed:	28+ knots
Range:	12,000 nm
Complement:	113 (14 Officers)
Sensors and processing systems:	EADS 3D TRS-16 Air Search Radar SPQ-9B Fire Control Radar AN/SPS-73 Surface Search Radar AN/SLQ-32
Electronic warfare and decoys:	AN/SLQ-32 Electronic Warfare System
Armament:	57 mm gun and Gunfire Control System Close-In Weapons System 2 SRBOC/ 2 NULKA countermeasures chaff/rapid decoy launcher 4 50 Caliber Machine Guns 2 M240B 7.62mm Light Machine Guns
Aircraft carried:	(2) MH-65C Dolphin MCH, or (4) VUAV or (1) MH-65C Dolphin MCH and (2) VUAV
Aviation facilities:	50x80 foot flight deck, hangar for all aircraft

From: http://www.deagel.com

Description: The Maritime Security Cutter, Large (WMSL), formerly known as the National Security Cutter (NSC) , is a highly capable, cutting-edge, world-class, long endurance cutter designed to replace aging cutters owned by the US Coast Guard. The Integrated Coast Guard Systems (ICGS), a Northrop-Grumman and Lockheed-Martin joint venture, is responsible for the execution of the program. The US Coast Guard Integrated Deepwater Systems program is the parent program for the WMSL cutter. The parent program envisages three classes of cutters to meet the US Coast Guard present and future requirements. Moreover, a new manned fixed-wing aircraft fleet, new and upgraded helicopters, and cutter- and land-based unmanned aerial vehicles (UAVs) are needed.

The Maritime Security Cutter shares design team, common systems, logistics and training with the Offshore Patrol Cutter (OPC) and the Fast Response Cutter (FRC). The WMSL will have an aft launch and recovery area for two rigid hull inflatable boats, a flight deck for manned and unmanned rotary wing aircraft and advanced command and control electronics. The 418-ft (128.3 meters) long and 4,000-t class ship will feature a CODAG (Combined Diesel and Gas) propulsion system. Besides, these ships will be provided with NBC detection and defense equipment as well as more powerful weapons, air and surface search radars and improved Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities.

General Electric Transportation's LM2500 gas turbine was chosen to drive the new US Coast Guard's Maritime Security Cutter Large (WMSL) on November 29, 2004 under Integrated Deepwater System (IDS) program. The contract was awarded by Detroit Diesel Corporation which is the prime contractor for the WMSL integrated propulsion system. The integrated propulsion system selected for the WMSL relies on a CODAG arrangement with a single GE LM2500 gas turbine and two MTU 20V1163 diesel engines. The power output is estimated at 48,960 shaft horsepower.

The US Coast Guard awarded a $11 billion, 20-year contract to Lockheed-Martin and Northrop-Grumman in June 2002 for Deepwater program. Despite the $11 billion contract, the total cost of this program could exceed $17 billion. Deepwater includes 91 (8 NSC, 25 OPC and 58 FRC) new-built cutters, 35 fixed-wing aircraft, 34 helicopters, 76 UAVs, 93 upgraded helicopters and 49 upgraded cutters. Up to eight National Security Cutters are expected to be delivered to the Coast Guard from 2008 through 2017.

In June 2004, the ICGS team received the contract for the first WMSL to be manufactured at Northrop Grumman Ship Systems Ingalls Operations, Pascagoula, Mississippi. Construction on the first ship, named NSC 1, began in September 2004. On 18 January 2005, the US Coast Guard awarded ICGS a further contract to begin construction and delivery of the second WMSL. The WMSL 750, formerly NSC 1, had its keel laid on March 29, 2005. The keel laying ceremony of the second National Security Cutter (WMSL 751) was held at Northrop-Grumman Pascagoula facilities on September 11, 2006. The first high endurance cutter (WMSL 750) was christened Bertholf at Northrop Grumman's shipyard on November 11, 2006. It was delivered to the US Coast Guard in 2007 and is due for commissioning during 2008.

Too much...

2009-09-18T12:49:00.000-07:00

May have to disable my webbots on "Superferry." Have been getting entirely too many damn alerts about the Philippines "Superferry." Was still waiting for some last little bit of news on the resolution of the bankruptcy and where the vessels are going.