Failed Hawaii Superferry catamarans are for sale

’S Maritime Administration. The agency purchased the vessels last September for $25 million each at a foreclosure auction.

The Maritime Administration bid on the catamarans using the $150 million guarantee that the federal government made to Hawaii Superferry LLC to build the vessels. The Maritime Administration was owed more than $135 million by the bankrupt Hawaii Superferry.

The Alakai began sailing from Honolulu to Maui and Kauai in August 2007, but was shut down in March 2009 after the Hawaii Supreme Court ruled that a state law exempting the Superferry from an environmental impact statement was unconstitutional. The Superferry and its parent company, HSF Holdings Inc., filed for Chapter 11 bankruptcy in May 2009.

A second vessel, the Huakai, was built in Mobile, Ala., and was ready to be placed in service when the legal and financial troubles began. The Huakai never made it to Hawaiian waters.

Both vessels were used temporarily in January 2010 to provide aid to Haiti following a deadly earthquake there. Other than that, the Alakai and Huakai have been docked at Lambert’s Point Dock in Norvolk, Va.

Now, both 836-passenger catamarans are for sale.

The catamarans are being sold together, although the Maritime Administration said it will consider an offer for a single vessel if concurrent sale of both vessels can be arranged. A Maritime Administration spokeswoman said she was unsure if a minimum bid has been set for the sale of the vessels.

Those interested in bidding on the catamarans have until July 20 to submit an offer. For information, contact David Heller at (202) 366-1850, or email him at David.Heller@dot.gov.

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I have to admit to a twinge of sadness when I read that the sorry saga of the Hawaii Superferry appears to be in its final act with the announcement by the U.S. Maritime Administration that it’s selling the two Superferry vessels, the Alakai and Huakai.

The federal agency ended up owning the ships when it had to eat $135 million in loan guarantees after the Hawai‘i Supreme Court ruled that a law exempting the Superferry from an environmental impact statement was unconstitutional.

Personally, I was looking forward to being able to use the Superferry to visit the neighbor islands again. I’ve seldom been able to go since I’ve been in a wheelchair because of a lack of ground transportation options, and being able to take my own van would have opened the state to me.

But beyond my admittedly narrow personal considerations, I felt the demise of the Superferry was a major loss to many local travelers and businesses who would have been at least a little bit out of the grip of the semi-monopoly airlines and shippers.

While there’s been a lot of finger-pointing as to who was to blame, it’s troubling that there’s been little thoughtful and objective consideration of all that went wrong and what changes we need to make to prevent such a debacle from happening again.

As we prepare to sell APEC delegates on the idea that Hawai‘i is a good place to do business, the Superferry is an elephant in the room that we’ve yet to adequately explain.

Recommended reading for anyone interested in the SF fiasco:

http://honoluluweekly.com/feature/2009/03/conspiracy-ferry/

It sounds like taxpayers all over the country, not just here in Hawai’i,were taken for a ride. Meanwhile, Austal USA, whose parent is an Australian company, took advantage of that ride to win a multi-billion dollar contract with the US Navy to build ships similar to SF.

Hawaii is a nice place but not a good place to do business. It’s wicked unfriendly if the new business impinges on the sacred turf of the good old boy networks.

As for the Superferry, we are worse off for having it gone. We’re an island state that feels it’s just dandy to spend billions and billions for a Mall Train but fails to have inter-island ferry transportation that would be truly stimulative to small business and tourism.

The EIS issue was poorly handled but it was not the real reason for the demise of the SF.


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