Ferry a step
closer to reality

The interisland travel option
would create hundreds of jobs,
according to testimony

It was smooth sailing for the Hawaii Superferry last night as it sought the regulatory green light for Hawaii's most ambitious interisland ferry plan yet.

In a lightly attended hearing at the state Capitol, testimony was decidedly in favor of approving the plans of Hawaii Superferry Inc., which proponents say will create hundreds of jobs, offer a cheaper interisland travel option and help integrate the islands' economy.

"It's high time we had a ferry here. We're one of the only island groups in the world that doesn't," said Hugo De Vries, a photographer who said having another way to reach neighbor island photo shoots would boost his business.

The hearing was the first held on the Superferry by the state Public Utilities Commission, which is reviewing the plans and seeking public comment on whether to give the company the go-ahead.

John Garibaldi, chief executive of Hawaii Superferry, told commission members the ferry will directly create more than 300 jobs and could create more than twice as many in catering, trucking and other companies likely to benefit from the ferry's presence.

The Superferry will offer daily, round-trip interisland passenger and vehicle ferry service between Honolulu; Kahului, Maui; Lihue, Kauai; and Kona on the Big Island at rates about half of current air fares. Two ferries, each carrying 866 passengers and 282 cars, have been ordered, and the first is to be delivered in late 2006; the second, 16 months later.

At an appearance earlier in the day, America Online co-founder Steve Case, who has a stake in the Superferry, said the ability to transport goods by truck between islands will benefit farmers, producers and the state's economy in general.

"Part of the challenge will be transporting food more efficiently at home. That's a big part of why I've invested in the Hawaii Superferry. The more we can link local buyers and sellers, the more we serve both their interests ... and, more broadly, stitch our islands into a single unified market."

The state's consumer advocate, John Cole, urged the PUC's approval.

"We have concluded that Hawaii Superferry Inc. appears to be fit, willing and able to provide this service," he said.

Hawaii Superferry is asking the commission to approve a rate structure that includes one-way fares from Oahu to Kauai and Maui that range from $50 to $60. Passage for a passenger car will range from $55 to 65.

Fares between Honolulu and the Big Island are about 10 percent higher.

PUC approval is the only significant regulatory hurdle faced by the Superferry.

However, the ferry's launch will depend on securing adequate financing. The company completed its initial fund raising of $3.3 million earlier this year, and now has its sights set on landing $55 million in equity investment.

Garibaldi said that effort was "progressing well."

Additional public hearings are to be held next week in Lihue, Kahului and Waikoloa on the Big Island.