Showing posts with label Superferry. Show all posts
Showing posts with label Superferry. Show all posts

Sunday, October 17, 2010

Hawaii Superferry’s Bankruptcy = US Navy Opportunity

A good wrap-up article:

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

Related Stories: Americas - USA, Corporate Financials, Events, Other Corporation, Surface Ships - Other

Hawaii Superferry
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….

Hawaii Superferry
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

See also: Journal of Commerce.

March 16/09: The Hawaiian Superferry service is shut down, after a Hawaiian Supreme court court decision strikes down a 2007 law that allowed them to operate. The ruling effectively mandates even more environmental reviews for the service, and forces the ferries to stop operating in the mean time. Alakai had been operating between Oahu and Maui. AP.

Additional Readings

  • Maritime Professional (August 2010) – Waiting for that Ship to Come In. Joseph Keefe takes a sharp look at the Hawaii Superferry saga. [Ed. note - This is a funny, if not accurate read.]

Wednesday, August 18, 2010

More Misplaced Comments from Mufi Hannemann on the Superferry

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.

Tuesday, July 27, 2010

Superferry's Boondoggle Business Plan

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.

Monday, July 26, 2010

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

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>>>

Saturday, July 24, 2010

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

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.]

Friday, May 28, 2010

Superferry Certificate of Public Convenience and Necessity Cancelled Yesterday‏‏

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!

Tuesday, April 13, 2010

New Revelations about MARAD and Superferry

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>>>

Monday, February 8, 2010

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

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

Hawaii State Legislature
2010 Regular Session
HB2667

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
1/25/2010HPending introduction.
1/27/2010HIntroduced and Pass First Reading.
1/27/2010HReferred to TRN, FIN, referral sheet 7
2/4/2010HBill scheduled to be heard by TRN on Monday, 02-08-10 9:00am in House conference room 309.
2/8/2010HThe 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.

Tuesday, January 19, 2010

Huakai Superferry Headed to Haiti

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>>>

Monday, January 18, 2010

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

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"

...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.

Friday, December 25, 2009

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

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).

Monday, December 7, 2009

Constant missteps such as these...

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: ,

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.

Friday, November 20, 2009

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

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.

Wednesday, November 18, 2009

Selling LCS technology overseas?

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

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....

Monday, September 21, 2009

PBN: Callin' It Like It WAS

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.

Saturday, September 5, 2009

STILL! correcting the record...

From: Downturn offers opportunity, Lingle says
Honolulu Advertiser -
...Luncheon emcee Ron Vaught asked Lingle about the status of Superferry...


Re: "...The two completed ferries now sit at a shipyard in Maryland. Lingle said she's been in recent contact with the ferries' builder, Austal, which is considering military contracts for the high-speed vehicle transports. In the meantime, the state will "carry on" and work to complete the required environmental impact statement. Superferry was good for business, and the majority of people wanted it, she said."

My comment:

9/5/09 -- Last reported the ferries were in Virginia, not Maryland. Austal has no interest in the ferries anymore. It makes no sense that Lingle would be talking with Austal about the Superferries. MARAD is the one considering military use for the vessels. Regardless, a Chapter 343 EIS has to be completed and accepted before any large high speed vessel can operate in Hawaiian waters, regardless of its owner or user. About being good for business, that is a good question for all of the unsecured creditors (small businesses in Hawaii) and common stockholders of the bankrupt entity.

9/7/09 -- Thought of one reason for the State to talk with Austal, to try to find a buyer for the ramp barges.

Saturday, August 1, 2009

For Sale on Craig's List!?!...

From: http://honolulu.craigslist.org/oah/clt/1299148411.html

Hawaii Superferry Replica Model Alakai - $1500 (Honolulu, Oahu)


Date: 2009-07-31, 10:07AM HST
Reply to: sale-jvnq3-1299148411@craigslist.org


Alakai, Hawaiian for "Ocean Path" is the name of the vessel which serviced the Hawaiian waters for a brief time (2007-2009). To commemorate its arrival for Service in August '07, roughly 80 models were created of the ship in intimate detail. (One of the few, if any, that would ever make public circulation) These models which were displayed are various trade shows and exhibitions helped bring to the public a glimpse of the grand vessel that was about to arrive in the islands. Details fleshed out in fully colored replicas of the vessel, including hand railings, emergency rafts, and cars on the second (mezzanine) vehicle deck. This is an EXTREMELY rare collectible that would normally be given out at an executive level.

The replica ship would make a great addition to any lounge or living space. It definitely will make a statement for the office. You will have a dramatic reminder of the vessel that tried to service the Hawaiian islands and caused a controversy that made local news daily. This vessel daily crossed Waikiki towards Daimondhead. You could talk about your personal experience taking the ferry, or liven up the room with a replica catamaran (double hull) vessel. The Alakai was the largest aluminum vessel created and sailed in American waters. It was a vessel 300 feet in length, 80 feet wide, and over 5 stories tall. It could carry over 700 passengers and 200 vehicle interisland.

The model is fixed by shinny, metallic posts to a glossy wood base. It is covered by a Plexiglas case that fits into a fabricated, square notch in the wood base. The overall model is about 18 inches long and 8 inches tall. I do not know the scale ratio to the actual ship.

***WARNING***
The vessel that is up for sale does have some minor damages from being frequently displayed; these damages can easily be fixed by a hobby expert. I know of a shop that would be able to do the repairs, but have not gotten a quote on the fix. The Plexiglas case also has mild scratches.

Pictures are available on request for SERIOUS buyers. There is a second model in my possession that is still in the box NEW, but that would be at a higher price. I would like to meet in person to conduct the transaction, and cash only.

Serious inquiries only.
  • Location: Honolulu, Oahu
image 1299148411-0


PostingID: 1299148411

Thursday, July 9, 2009

Winding down...Questions about the EIS

Not much to post here anymore. I still have the "webbots" going on this, but even they don't send back much info to me anymore. But, received an interesting letter to the editor cc'd to me recently. Here was my reply to that letter below:

Sally,

Good to hear from you again. About the EIS. As far as I know DOT put it on temporary hold after the Supreme Court decision, but that was before the bankruptcy. As far as I know DOT has not publicly said anything about the EIS since the bankruptcy proceedings began. The situation may have changed given those recent bankruptcy proceedings and as to the "need" for an interisland ferry and relative to the state budget problems.

As for your last question, "And what has happened to John Lehman, former chairman of the Superferry, and his investment firm? Did the Superferry bankruptcy cost him any money personally? Or were the only losers small investors, vendors, and the Superferry employees?":

JFL and Co is still in business. Their lawyer recently said in bankruptcy court after the abandoning of the vessels was allowed that JFL and Co lost all of their $85 million invested in HSF. All of the common stockholders and preferred stockholders are expected to lose any money they invested or expected value accrued in it. It still remains in question who buys or leases the two vessels and for how much. These vessels may be sold at loan value which would be a discount. A previous loser in this could actually end up making money if they acquire the vessels at discount and use them in the right situation. The right situation calls for either military use or one-way commercial routes of 70 miles or less between significant population/commercial centers.

Brad

-------- Original Message --------
Subject: What is the status of the Superferry EIS?
Date: Mon, 06 Jul 2009
From: Sally Raisbeck
To: Maui News (letters@mauinews.com)


What is the status of the Superferry EIS?

The DOT prepared a draft EIS for the Superferry that was released in January. Has that been completed? The title was for a "statewide large capacity ferry". This was meant to continue the fiction that Act 2 exempting the Superferry from environmental review was passed by the legislature as a general law, not a particular law to benefit the Superferry. So I presume that the state would complete the EIS, to continue the fiction. Has it been completed?

I would like to know if they dropped it when the Superferry went out of business. I would also like to know how much the state spent on the EIS, besides the $40 million on harbor improvements.

I am so glad they didn't go ahead with state plans to build a ferry terminal for the Superferry on the Kahului Harbor breakwater. That plan would really have been expensive. Probably the plans were expensive.

The company that built the Superferry got the Joint High Speed Vessel (JHSV) contract for 10 military versions of the Superferry last November. Does the Maui News know? The company was Austal Ltd. And what has happened to John Lehman, former chairman of the Superferry, and his investment firm? Did the Superferry bankruptcy cost him any money personally? Or were the only losers small investors, vendors, and the Superferry employees?

Surely someone on Maui knows some of these interesting economic facts.

Sally Raisbeck
Wailuku HI

Saturday, May 16, 2009

Auction it all...Laters...They outta here!?

Damn, if I were on Maui or Oahu, would go check out the auction. Sounds like some cool chit up for auction:

From: http://www.honoluluadvertiser.com/article/20090515/BREAKING01/90515081


by Christie Wilson

KAHULUI, Maui — Souvenir hounds and bargain hunters will get a chance to bid on remnants of Hawaii Superferry's short-lived and contentious operations at auctions to be held on Maui and Oahu.

Everything from restroom trailers, portable offices, traffic cones, light towers, office furniture, Superferry shirts and shoe scrubbers will go on the auction block at 10 a.m. tomorrow at the former ferry terminal at Kahului Harbor, located at Puunene and Kaahumanu avenues.

The Oahu auction will take place at 10 a.m., May 23, at Honolulu Harbor Piers 19 and 20. Items include tools, a 10,000-pound power winch, animal carriers, luggage scales and carts, security camera systems, ticket counters, food service items, computers and life preservers...

Friday, April 3, 2009

Hawaii Ferry History: FAP routes, SeaFlite, Superferry...

Interesting and accurate overview of the recent and past ferry situation in Hawaii. This was called to my attention by Hope Kallai of Kaua'i. The information comes with permission from Oscar Voss' website at Hawaii Highways: http://www.hawaiihighways.com/ . I particularly found interesting the possible DOT ferry routes that Oscar found and documents below:

5.5 Are there auto ferries between the islands?

Not right now. The Hawaii Superferry provided auto and passenger transport between Oahu, Maui, and (very briefly) Kauai from August 2007 to March 2009, with plans to resume service to Kauai and add service to the Big Island. As discussed below, all Superferry service has been indefinitely suspended, and probably will not resume (if at all) until 2010.

Pre-Superferry, and even when the Superferry was operating, local residents flew a lot between the islands on local airlines providing jet service between the four most-populated islands, and smaller planes also serving the other inhabited islands except privately-owned Niihau. They rented cars as needed when visiting other islands, generally at "kama'aina" discount rates restricted to Hawaii residents. On the rare occasions residents moved their cars between islands (such as for an inter-island change of residence), the cars usually went by barge or freighter.

In the mid-1970s, SeaFlite operated private passenger-only hydrofoil ferries between most of the populated islands (all but Lanai and Niihau). However, I understand that they never were very popular, largely because the ferry boats were prone to breakdowns, but also because it took several hours to travel between islands, through deep, unprotected waters that are rougher than the sheltered waters mainly used by the extensive auto ferry systems of Alaska and the Pacific Northwest. Not helping to smooth the ride through the rough waters was the relatively small size of the SeaFlite hydrofoils, which unlike typical auto ferries could and did use small-boat harbors (Kailua-Kona on the Big Island, Maalaea on Maui) rather than be limited to the larger deep-draft commercial harbors.

By the way, Hawaii DOT assigned Federal Aid Primary route numbers 6-10 to a network of ferry routes. These apparently were intended for a state-run auto ferry system the state had been noodling over throughout the 1960s and 1970s, not the short-lived SeaFlite passenger ferry system of the mid-1970s, which didn't always follow the FAP ferry routes. Here are the assigned FAP ferry routes, as of 1976 (from Hawaii DOT's Highway Systems Maps that year for all the islands), compared to the corresponding SeaFlite routes (per 1977 Hawaii Visitor Bureau maps), and the routes that the Hawaii Superferry served or planned to serve:

FAP FAP route SeaFlite route Superferry route
6 Honolulu - Nawiliwili (Kauai) Honolulu - Nawiliwili (Kauai) Honolulu - Nawiliwili (Kauai)
7 Honolulu - Kaunakakai (Molokai) Honolulu - Kaunakakai (Molokai) --
8 Kaunakakai (Molokai) - Kahului (Maui) Honolulu - Maalaea (Maui) Honolulu - Kahului (Maui)
9 Kahului (Maui) - Hilo (Big Island) -- --
10 Kahului (Maui) - Kawaihae (Big Island) Maalaea (Maui) - Kailua-Kona (Big Island) Honolulu - Kawaihae (Big Island)

There are private ferries between Lahaina in west Maui, and Lanai and (sometimes) Molokai. Hawaii DOT has in recent years tested a hydrofoil ferry from various points in west Oahu to Honolulu, to help relieve congestion on Interstate H-1. But these also are all passenger-only ferries.

Heightened post-9/11 airport security, which made interisland air travel less convenient than before, and also the planned merger (since called off) of two major interisland airlines, spurred renewed interest in inter-island ferries. A private company, Hawaii Superferry, worked with the state to develop an interisland ferry system that would carry cars and trucks as well as passengers. In January 2004, it contracted for construction of two new high-speed catamaran ferries. Construction of the first one was completed in January 2007, and it arrived in the islands in summer 2007.

The Superferry attempted to begin regular operation from Oahu to Maui, and to Kauai, in late August 2007, and indeed made two sailings to Maui and one to Kauai. But service was put on hold thereafter due to a variety of legal and other obstacles, including a last-minute Hawaii Supreme Court decision invalidating an exemption from environmental review the Superferry had relied on, the resulting injunction blocking the Superferry's continued use of Maui's Kahului harbor, and vociferous waterborne protestors blocking the Superferry's attempted second trip to Kauai's Nawiliwili harbor. The Hawaii legislature then passed a law designed to clear the legal obstacles to a restart of Superferry service.

Hawaii Superferry restarted once-daily service between Oahu and Maui on December 13, 2007, with a scheduled running time of 3 hours 45 minutes from Oahu to Maui, and 3 hours on the return trip. The company also began in May 2008 to offer a second voyage in each direction, four afternoons each week in peak season and at least once a week in the winter. Twice-daily service to and from Maui had been originally planned to begin in 2009 with the arrival of the second ferry vessel, but Hawaii Superferry decided to accelerate those plans, perhaps expecting that once-a-day service to and from Kauai would generate less business than adding an extra daily trip on the Maui route, which allowed commercial customers to take their trucks to Maui in the morning and return that evening, without the overnight stay required by the old schedule. Due to economic conditions, the Superferry held off until at least 2010 using the second ferry vessel for Hawaii service, which would have added service to the Big Island (once improvements and earthquake damage repairs were completed to the Big Island's Kawaihae harbor), and possibly also resumed service to Kauai. As far as I know, extension of Superferry service to Lanai and Molokai islands was never seriously considered, due to their small populations and limited harbor facilities.

The Superferry was used mainly by local residents and businesses taking their own vehicles, as well as local and tourist foot passengers. Most tourists still traveled by air among the islands, changing rental cars as needed. Due to a quirk in state law, the Superferry cannot transport rental cars (or other vehicles) without written permission of the registered vehicle owner. However, some rental car companies allowed their vehicles on the Superferry, with some even allowing one-way rentals. I took a National rental car on the Superferry round-trip between Maui and Oahu in January 2009, choosing a round-trip rather than a one-way rental since the one-way surcharge for the companies allowing one-way rentals was at least $400, much more than the one-way return trip fare for vehicle and passenger.

Superferry service was abruptly and indefinitely suspended in March 2009, a few days after the Hawaii Supreme Court invalidated the 2007 law allowing the Superferry to resume operations before completing state environmental reviews. At that point, the Superferry was at least a year away from completing those reviews, and couldn't afford to have its existing ferry vessel (plus the almost-completed second vessel it had on order) idle that long. State legislative leaders decided against pursuing a new law to help the Superferry continue operating, since a new law focused on helping the Superferry would likely have the same constitutional problem the state supreme court found with the old law, and there was no appetite for broader revisions to state environmental laws that could pass constitutional muster but might have unwanted effects on non-Superferry projects.

The Superferry will try to find alternate uses for its two ferry vessels, probably in non-Hawaiian markets. It is leaving the door open to returning to Hawaii if and when all the environmental issues are resolved in its favor. However, it is uncertain whether or when that will happen (unlikely before 2010), or that the Superferry will return to Hawaii even if can legally do so.