Sign In | Create an Account | Welcome, . My Account | Logout | Subscribe | Submit News | Home RSS
 
 
 

Superferry seeks greener pastures

March 20, 2009
By CHRIS HAMILTON, Staff Writer

KAHULUI - Hawaii Superferry will look worldwide to charter its vessel, while waiting to see if and when the state is willing to accept the controversial ferry back into its harbors, said Tom Fargo, the company's president and chief executive officer.

Fargo spoke briefly Thursday, and in mostly general terms, to reporters about the future of Superferry. He declined to discuss the specific financial aspects of the company, such as whether the high-speed ferry service was losing or making money.

"We had ramped up our business model that we laid out last summer and were very optimistic for this spring and summer," he said. "We couldn't see anything but growth."

Opponents have said the ferry, although it increased its number of interisland trips last year, still often carried few passengers. Many residents wondered how long it could stay afloat financially.

Ferry opponents also said it would harm whales, pollute harbors, increase traffic, introduce invasive species and disrupt rural island life.

Fargo had flown to Maui to join the crew of the 350-foot Alakai for a return trip to Honolulu, on what could be its last voyage in Hawaiian waters. The Alakai left Kahului Harbor about 11:20 a.m.

Fargo's comments came three days after the Hawaii Supreme Court ruled that a law - commonly referred to as Act 2, and enacted by a special session of the Legislature in late 2007 - was unconstitutional. The high court said that, except for land transfers, the state cannot create laws to benefit specific businesses, such as Hawaii Superferry.

Act 2 had allowed the Superferry to operate while the Department of Transportation and its private contractor completed an environmental impact statement.

Hawaii's legislators and Gov. Linda Lingle said they would ask the Supreme Court to reconsider its decision.

However, the combined efforts of the Republican governor and Democratic Legislature are unlikely to sway the independent court, which rarely reconsiders its rulings, said David Callies, a University of Hawaii law professor who teaches state and local government.

Lawmakers said their concern is that courts could invalidate other laws meant to benefit specific groups, such as current measures in the works to prevent evictions of Native Hawaiians living in a state park.

But the attorney who challenged the Superferry said the court's decision wasn't meant to prevent lawmakers from doing their job.

"The Legislature is overreacting," said Isaac Hall, who represented three groups opposed to the Superferry. "I don't think it will have any great impact on what they do."

The environmental impact statement was required since the state invested about $40 million in harbor improvements for a "large-capacity vessel." The money was to be repaid in user fees. Fargo said Superferry had contributed about $2 million to the state so far.

Hall - who represents the Sierra Club, Maui Tomorrow and Kahului Harbor Coalition - successfully argued in court that the governor and legislators used the vague "large-capacity" language to circumvent state environmental law in order to accommodate Superferry deadlines.

Superferry executives had said they were under pressure to receive a $140 million U.S. Maritime Administration loan in 2006. Superferry and its backers invested about $300 million in the project by last year.

Lingle said this week that she's uncertain how the state will pay for its general obligation bonds. The state's share had ballooned by more than $5 million with unanticipated pier repairs and with towing and security costs.

If an entirely new environmental study must be done, which Superferry's opponents demand, it would take a year or longer, Fargo said.

The Superferry environmental impact statement was scheduled for completion in May, said state Department of Transportation Deputy Director for Harbors Mike Formby. He said the state had contractor Belt Collins discontinue the study because of the court ruling, but Formby did not elaborate Thursday on the reasoning for the action.

"Our problem is that we have no resolution of the EIS," Fargo said. "That's the reason we're not operating. In the meantime, we'll have to find other work for the Alakai."

Fargo said Superferry officials don't have a specific customer or region of the world in mind.

Superferry has a second vessel under construction in Mobile, Ala. It's reportedly almost finished.

"There appears to be no short-term solution to this ruling," Fargo said. "There's a clear and unmet need for an interisland high-speed ferry system in this state. My hope, our hope, is that the conditions will eventually be such that we can realize that vision."

For Superferry to return, the state needs to remove the element of uncertainty, Fargo said. He said he would be open to any permanent legislative solution.

"All these issues need to get resolved first," he said.

Fargo added that he was surprised by the Supreme Court's decision. The company had been operating safely and regularly with no significant negative impact for about the past year, he said.

He said he felt Superferry employees proved themselves and had earned the loyalty of businesses and passengers who had come to rely on the service, he said.

The company began laying off its 236 employees this week.

* Chris Hamilton can be reached at chamilton@mauinews.com. The Associated Press

contributed to this report.

 
 

 

I am looking for:
in:
News, Blogs & Events Web
 
 

Article Photos

The Maui News / MATTHEW THAYER photo

Kihei residents Marc and Jennifer Weber watch the ferry leave Kahului Harbor on Thursday morning. The couple said they had no animosity toward the ferry but did not like the way the governor and the Legislature handled the issue.