HAWAII SUPERFERRY

Presentation to the community June 19, 2006

State Department Of Transportation Harbors Division

MISSION STATEMENTS
DOT Mission Statement
To provide a safe, efficient, accessible, and intermodal transportation system that ensures the mobility of people and goods, and enhances and/or preserves economic prosperity and the quality of life.

Harbors Division Mission Statement
To provide and effectively manage a commercial harbor system that facilities the efficient movement of people and goods to, from and between the Hawaiian Islands, and enhances and/or preserves economic prosperity and quality of life.

STATEWIDE HARBORS SYSTEM
KAUAI OAHU
Molokai

Niihau

MAUI
Lanai Kahoolawe KAHOOLAWE

HAWAII

Nine commercial harbors on six islands.
Note: Kewalo Basin will be transferred to HCDA in summer 2007.

HISTORICAL EVENTS & FACTS
Harbors operating agreement Advertise design-build RFP Award design-build RFP to HTBI ($37.488 million) Issue Notice To Proceed to HTBI
Kaumalapau

9/7/05 5/13/05 9/9/05 11/7/05

Funding available in two parts (Act 178/SLH 2005): $20 million available $20 million available Barges and ramps in place by: Honolulu, Kahului and Nawiliwili Harbors Kawaihae Harbor

7/1/05 7/1/06 2nd quarter ‘07 1st quarter ‘09

HARBORS OPERATING AGREEMENT
State Responsibilities:
1. 2.

Berth and landside areas to operate from. Barges and ramp systems to load and unload vessel.

Hawaii Superferry Responsibilities:
1. 2. 3.

Operations of ferry and facilities. Maintenance of facilities. Kaumalapau Any additional improvements required for operations.

Terms of Agreement:
1.

Tariff structure:
Dockage fees. Passenger fees. Vehicle fees.

2.

Minimum annual guarantee, either:
Above tariffs plus 1 percent of gross receipts OR $2.3 million for the first 3 years.

3.

Length of agreement, earlier of:
22 years after commencement of service of 1st vessel OR 20 years after commencement of service of 2nd vessel.

COLLABORATIVE EFFORT
The Harbors Division and the Hawaii Superferry (HSF) works closely with the maritime community to plan for improvements.

• • • • • • •

12/28/04: Meeting with HSF and harbor users to discuss proposed ferry locations statewide. 3/10/05: Pre-site visit meeting with users (Matson, Young Bros. and Hawaiian Cement). 3/14/05: Kawaihae Harbor site visit meeting with users (HSF, Matson, Young Bros., Hawaiian Cement, CH2M Hill). 3/15/05: Nawiliwili Harbor site visit meeting with users (HSF, Matson, Young Bros., Norwegian Cruise Line, Hawaiian Cement, CH2M Hill). 3/16/05: Kahului Harbor site visit meeting with users (HSF, Matson, Young Bros., Norwegian Cruise Line, Hawaiian Cement, CH2M Hill). 3/2005 to present: Meetings with Young Bros. regarding HSF operations at Kahului Harbor. And meetings are continually scheduled to address any issues.

TERMINAL IMPROVEMENTS
KAUAI
Nawiliwili Harbor Pier 1

OAHU
Honolulu Harbor Piers 19 and 20

MAUI
Kaumalapau

Kahului Harbor Pier 2B

HAWAII
Kawaihae Harbor Pier 1

VISIT OUR WEBSITE
For the latest information on:
• News. • Vessel schedules. • Cargo stats. • PORT HAWAII Handbook. • Contact numbers.

www.hawaii.gov/dot/harbors

Mahalo for your time.

Healy Tibbitts Builders, Inc.

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NELHA 55” X 9000’ cold water pipe

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NELHA 55” X 9000’ cold water pipe

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Kawaihae Dolphin #2

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Kahului Harbor

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15

Kahului Boat Ramp

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Kahului Boat Ramp & Breakwater

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Kahului Boat Ramp & Breakwater

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Pearl Harbor Fuel Pier H-6

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Honolulu Harbor Fishing Village Pier 36 - 38

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Nawiliwili Harbor Pier 3

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Tern Island, French Frigate Shoals Shore Protection

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• • • • •

Design and Build Barges and Vehicle Ramp Systems For Inter-Island Ferry Service, Statewide, Job H.C. 90018
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Schedule

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Honolulu Pier 20

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Honolulu Pier 20

280X75ft

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Kahului Pier 2

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Kahului Pier 2

280X105 ft

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Kawaihae Pier 1

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Kawaihae Pier 1

280X75ft

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Vehicle Barge

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Nawiliwili Pier 1

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Nawiliwili Pier 1

160 X 24 ft

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Honolulu Barge Fabrication

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June 12 Blocks 1,2,3 at erection site being fitted together

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June 12, Block 10 and 12 final blocks on jig for assembly

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June 13, Ramp parts in process of prefabrication

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June 14, Aft portion of main deck ramp on jig for assembly

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June 14, Blocks 4 port and starboard moved into position for attachment to block 1& 3 on erection site

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June 15, Ramp deck plating in assembly process

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June 16, Block 6 moving to erection areas for final fitup

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June 16, Blocks 1,2,3,4,5 joining master butt at erection area

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Kawaihae Barge Fabrication

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June 12 Block 1 bottom panels in position on assembly jig

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June 13 Framed prefabricating in jig.

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June 13 to 15 top of picture prefabrication in progress

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June 16 prefabrication area for panels and fitting bulb flats in progress

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June 16 prefabrication of transverse bulkhead 15 for block 1

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Hawaii Superferry
State of Hawaii Department of Transportation Harbors Division Public Informational Meetings June 2006

Bringing Back Affordable Interisland Transportation…

At Hawaii Superferry, our vision is to provide an affordable, fast, and convenient interisland travel alternative for Hawaii’s residents and visitors – linking communities and connecting families – in accordance with our philosophy of caring for the environment.
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Construction is 80% complete…

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….on HSF’s 1st vessel in Mobile, AL…

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….from the bridge to the decks below.

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Long History of Ocean Travel

• Hawaii has a long history of travel between islands beginning with Polynesian double hull voyaging canoes

• Today’s catamarans still use the basic twin hull concept • Hawaii Superferry will use a modern high tech catamaran to bring ocean travel back to the islands
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Catamaran Ferries: Proven Technology
• Proven over 15 years of ocean-going service • Perfect Safety Record • Replaced all hovercraft and hydrofoils in other rough ferry runs like the English Channel and Cook Strait • Semi-SWATH hull design handles rough seas

353’ Hawaii Superferry
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Convenience, Speed & Comfort Make Travel A World-Class Experience
Up to 282 cars or a mix of vehicles 28 trucks/buses and 65 cars
<< Drive

on, drive off << Fast, easy boarding << No parking hassles << No luggage transfers

Cruise ship-like atmosphere >> Relaxed dining >> Game arcade/kid’s play area >> TV and movies >>

Up to 866 passengers

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The On-Board Experience

Retail store

Dining and lounge areas

Photos from similar ferry in the Canary Islands

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Routes Have Been In Existence For More Than A Century
HSF will serve Kauai, Maui, Honolulu, and Hawaii • 1 - 2 times daily from Honolulu • 3 - 4 hour transit times
Kauai Oahu

Maui

Big Island

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Preliminary Daily Schedule1
Ferry One
Departs Honolulu Kahului Honolulu Nawiliwili Time 6:30 AM 10:30 AM 2:30 PM 6:30 PM Time 7:30 AM 12:45AM 6:00 PM 10:00 PM Arrives Kahului Honolulu Nawiliwili Honolulu Arrives Kawaihae Honolulu Kahului Honolulu
Service Begins Mid-2007

Time 9:30 AM 1:30 PM 5:30 PM 9:30 PM
Service Begins Early 2009

Ferry Two
Departs Honolulu Kawaihae Honolulu Kahului

Time 11:45 AM 5:00 PM 9:00 PM 1:00 AM
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1 Subject to DOT and PUC review and approval

Why Are We Doing This?
Alternative to air travel • Hawaii is the world’s only island archipelago solely dependent on passenger air transport. Costs less and consumes far less fuel than air travel • air travel is the highest cost and energy consuming transportation mode.

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Rising Interisland Airfares Have Hurt Hawaii Resident Travel
One Way Airfare Including Taxes & Fees ($) 140 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 Year Resident Lowest Fare Non-Resident Lowest Unrestricted

Fewer Hawaii residents travel interisland While local travel is down, more folks are going to the mainland
The annual study by SMS Research and Marketing Inc. indicates that the number of Hawaii residents traveling interisland has shrunk by 22 percent since 2000.

Sources: Hawaii DBEDT, Honolulu Advertiser, Honolulu Star-Bulletin
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Interisland Air Travel Declines
550
Mainland

500
Interisland

450

400 1995 1998 2001 2004

22% decline since 2000
(Base: Hawaii adults, 18 years or older, in thousands) Source: SMS Hawaii Market Study
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More Good Reasons….
Families can afford to visit each other, especially neighbor islanders who must travel 3 – 5 times more than Oahu residents for health care, business, education, shopping, etc. Provides convenient drive on/drive off way of getting products to market or for export. In case of emergency, such as a hurricane or tsunami, the ferry can assist civil defense capability and help move people and goods.
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Nearly 90% Of Residents Of All Islands Plan To Use Superferry (Maui Highest At 94%)
100% 90%

80%

Likelihood To Ride

70%

60%

50%

40%

30%

20%

10% Statewide Oahu Maui County East Hawaii West Hawaii Kauai

Source: Market Trends Pacific April 15, 2005
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Everyday Affordable Fares *
Maui & Kauai
(Non-peak /

Hawaii
Peak) $ 60 / $70 $52 / $62 $65 / $75 $100 / $110 $500 $225 / $250 $25 / $30 $788 FREE FREE
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Base Passenger Fare
Advance Internet Fare Car / SUV / Mini Van Pickup / Work Van 20’ Delivery Truck (fully loaded) Canoe trailer (45’) Bicycle 40’ school bus Dog or cat (in car) Surfboard or Canoe (on car)

$50 / $60 $42 / $52 $55 / $65 $90 / $100 $400 $200 / $225 $20 / $25 $638 FREE FREE

*One way as filed with PUC. Includes estimated port fees and taxes, excludes possible fuel price surcharges

Interisland Airlines Fares after Go!*
Hawaiian $43…..$56…..$68…..$78…..$103…..$128…..$171 Aloha $43…..$59…..$69…..$85…..$103…..$128.....$162 Go! $39 …..$49 …..$59….. $67…..$77…..$79
Source: Airline websites as of June 17, 2006 *One-way - Does NOT include airport fees or taxes of $5.80
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Specialty Agriculture
Scenario: Local farmer needs to quickly get fresh fruit to Honolulu for sale & export.
Air Freight Limited interisland airfreight capacity: only 75 tons/day of non-mail freight from neighbor islands, at $0.30 - 0.45/lb. One Way Cost: Per ton: $600 - $900 For a 10 ton truckload: $6,000 Truck drives on and off ferry to provide door-to-door, same-day service.

One Way Cost: Trucks over 50’ - $22 per foot 50’ truck would cost: $1,100

HSF Fares as filed with Public Utilities Commission
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Operating Agreement with the State
State DOT commitment to construct necessary barge and ramp equipment for ferry infrastructure and make available for HSF use • June 2007: Honolulu, Kahului and Nawiliwili harbors • December 2008: Kawaihae harbor HSF has a 22 year service commitment to the state HSF fees for use of harbor facilities upon start of service • Dockage, passenger and vehicle fees based on activity: – $2 for every passenger – $4 for every private vehicle – $20 for every commercial vehicle – 1% of gross receipts • Minimum Annual Guarantee of $2.3 million thru year 3
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HSF Projected Fees Paid to Harbors
$6

$5.6 $5.3

$5

$16.5 million over first 4 years to DOT-Harbors Fund

$4
(millions)

$3.2
$3

$2.4
$2

$1

$0 2008 2009 2010 2011
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(12 months ended June 30)

Honolulu Harbor Layout

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Kahului Harbor Layout

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Nawiliwili Harbor Layout

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Kawaihae Harbor Layout

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Port Facilities
Each port will have: • Check in and security/agriculture inspection area • Vehicle queuing area • Passenger waiting area & ticket booth • Drop-off/pick-up area for walk-on passengers Parking areas not provided at port facilities.
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Security
Security procedures for:
• Walk-on passengers and baggage • Vehicles • On-Board • Terminals
Security is regulated and monitored by Homeland Security (US Coast Guard)

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Onboard Security & Safety
• No passengers on vehicle deck when under way • Locks secure all non-passenger areas • Video cameras • 100% of crew safety trained • Vessels can be boarded while underway • Advanced lifesaving equipment

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Commercial Harbor Users Working Together
• HSF is a member of the Hawaii Harbor Users Group (HHUG) along with Matson, Young Brothers, Norwegian Cruise Lines and others. • HHUG works together and provides recommendations to DOT-Harbors Division regarding utilization of harbor assets and harbor improvements. • Facilities are being designed in consultation with other harbor users and State DOT after site surveys and assessments. • Check-in and staging areas for cars and passengers are separated from areas used by other harbor users.
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Traffic Studies
• Traffic studies conducted during peak traffic hours without HSF in port. • HSF has adjusted the port arrival times to avoid busiest traffic times. • Traffic studies submitted to DOT-Harbors in May 2006 – now being reviewed by DOT-Highways Division, Traffic Branch. • Port facilities being designed to accommodate expected vehicle loads.
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Most Environmentally Friendly Vessels In Hawaii
Cleanest & most energy efficient marine engines Use fuel 100x cleaner Than conventional ships Gutter drains capture fluids “Low-E” glass & CFL lighting saves energy

•No ballast tanks •Ultra-slippery non-toxic bottom paint Marine organisms are not transported

10x quieter underwater than conventional ships

Zero wastewater discharge keeps Hawaii’s oceans clean

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Whale Avoidance
• Whale avoidance has been a significant issue for Hawaii Superferry since the beginning • HSF is the only company to submit a whale avoidance policy to the Hawaiian Islands National Marine Sanctuary Advisory Council (SAC). • The SAC voted unanimously in support of Hawaii Superferry’s whale avoidance policy in May 2005.

• HSF whale avoidance policy and procedures have been developed with input of whale researchers and others over a 3 year period
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We Change Routes During Whale Season To Avoid Whale-Dense Areas

• Whale season routes go around Penguin Banks and North of Molokai • Vessels will slow down in waters less than 100 fathoms where whale densities are greatest • Vessels are jet drives - do not have propellers • Two additional, dedicated whale lookouts with motion-stabilizing and infrared binoculars

Non-whale season routes Chart source: Dr. Joseph Mobley, University of Hawaii
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Invasive Species
• HSF working with Hawaii Department of Agriculture (HDOA) Plant Industry & Animal Industry Divisions 1) To ensure consistent application of HDOA rules and regulations 2) To develop appropriate polices and procedures for HSF 3) Increase industry-wide awareness Passenger education: On board, websites, tickets, signage HSF staff trained by HDOA On-going HSF study, dialogue, and collaboration to identify practical solutions
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• • •

Invasive Species
Passengers agree to the following rules when they purchase a ticket, subject to inspection at check-in: • No dirty or muddy vehicles or tires allowed aboard • Plants and plant parts must be inspected by HDOA Plant Quarantine Office and have a “Passed” sticker

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Board of Advisors on Kauai, Hawaii, Maui
Purpose of the Board of Advisors: • Help to identify issues of local community concern • Provide suggestions and recommendations for workable solutions to existing and future issues • Advise on community outreach activities Members represent broad perspectives and interests: • Invasive species committees • Whale Sanctuary Advisory Council • Farm Bureau and Cattlemen’s Association • Recreational harbor users • Marine resources • Visitor industry
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HSF Timetable to Start of Service
Launch Team Assembled Advisory Boards Established Delivery of Vessel I Crew training, route proving and familiarization Service Vessel I Delivery of Vessel II Service Vessel II Early 2006 March 2006 Early 2007 Early 2007 Mid 2007 Early 2009 Early 2009

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Linking Islands, Connecting Families
Everyday Low Fares
• Affordable fares for residents and visitors

Benefits Residents and Businesses
• Take the family and drive your own car • Small businesses have easier access for delivery of goods • School, sports, church groups’ travel becomes affordable

Hawaii’s Ferry
• Hawaii’s transportation for Hawaii’s people

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Visit our website at www.hawaiisuperferry.com for more information