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

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

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?

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

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

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'

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.

See also:

Hannemann Wants To Revive Hawaii Superferry: Opponent Abercrombie Called That A Fantasy (KITV, 7/26/2010)

Candidates for governor pitch economic plans (AP, 7/26/2010)

Will Mufi “turn to desperate measures, like, say, reviving Hawaii’s Superferry” if he becomes governor? (7/25/2010)

[Editor's note - We believe the only reason that Goofy Hannemann raises this issue now is because he believes it is a way to energize the Oahu vote, regardless of whether it is realistic or not. By raising the Super Fairy Dream, Hannemann shows what kind of a baseless Governor he would be.]

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>>>

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.]

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

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

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

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"?

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

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

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

Austal closing Tasmanian factory - axing 116 staff

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?

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

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

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

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...