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Tuesday, May 22, 2001



Passenger ferries
may again link
Oahu, Maui

A Las Vegas company hopes
to start the service
within the year


By Gary T. Kubota
Star-Bulletin

WAILUKU >> The owner of a Las Vegas-based company says he is hoping to start a passenger ferry service connecting Oahu, Molokai and Maui within a year.

William E. "Matt" Dillon, president of Rainbow Transportation Group, said yesterday the ferry with a capacity of 225 passengers would travel from Honolulu Harbor to harbors at Kaunakakai on Molokai and Maalaea on Maui in about 2-1/2 hours.

The tentative fares for a round trip would be $80 for residents and $135 for visitors.

Dillon said his plan is to eventually extend the service to the Big Island and finance improvements to state facilities for passenger ferry service.

The state Legislature recently passed a bill authorizing the group's operating company to secure special-facility revenue bonds up to $44 million from the state to finance construction improvements at harbor locations.

Under House Bill 1686, the ferry business would be responsible for repaying the bond.

State finance official Scott Kami said Rainbow Transportation would also have to undergo a review of its finances and meet state and federal requirements.

Kami said usually company officials also are required to buy insurance guaranteeing that if they default, the bond will be paid by another entity.

"They're going to have to come in and demonstrate they can do it," Kami said.

Dillon said the management team has years of experience in operating Boeing Jet foils -- some from operating ferries in Southeast Asia, and others with the former interisland SeaFlite ferry, which shut down in Hawaii in 1978 after 31 months.

Dillon said a ferry system can succeed now because hydrofoil technology is more advanced and a boat captain can detect bad weather and travel around it.

"This allows us to travel in the best sea conditions," he said.

Some residents have said they are worried about the potential impact of the vessels on marine mammals in the Hawaiian Islands Humpback Whale National Marine Sanctuary.

Maalaea Bay is located within the sanctuary.

Dillon said that in the period SeaFlite operated, it recorded only one whale strike.

He said the jet foil, expected to travel at about 45 miles an hour, will use forward radar and sonar technology to avoid striking marine mammals and travel as much as possible outside of the Hawaii Islands Humpback National Marine Sanctuary.

Dillon said he has been in discussion with the nonprofit whale group Pacific Whale Foundation about how to reduce the chances of injuring marine mammals.



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