DOT Harbors Public Informational Briefing Kaua‘i - March 13, 2007 Questions to Hawaii Superferry How many jobs will

be created on Kaua‘i? Between 20 and 30 jobs will be created on Kaua‘i to service port operations at Nāwiliwili Harbor. The majority of these will be part time positions due to the vessel schedule which will be in port Sunday through Friday between 6:00pm and 7:00pm. Will you provide housing for employees? Employees of our Nāwiliwili port operations will be residents of Kaua‘i and will not require housing. What is the pay scale for Superferry employees? The pay scale for all Hawaii Superferry employees will be competitive. For further employment information and an application, please visit the employment section of our web site, hawaiisuperferry.com. Will employees receive benefits? All Hawaii Superferry employees are eligible for benefits depending on the job classification. Part-time positions are eligible for limited benefits. All employees will receive travel privileges aboard the ferry as covered by company policy. What State, SMA, County permits have been approved or are in the approval process pertaining to roads, buildings, parking and waste water? Hawaii Superferry has received all approvals required from the State. County permits are not required for use of state harbor facilities. Wastewater facilities will not be required on Kaua‘i, as all wastewater will be retained onboard will be disposed of each evening into the O‘ahu sewer system. How much parking will there be for people leaving cars on Kaua‘i to take the Superferry to O‘ahu and Maui? For security and operational reasons, Hawaii Superferry passengers are not permitted to leave cars parked in the Pier 1 harbor facility. It is anticipated that the vast majority of passengers will take their own vehicles onboard the ferry. For those passengers not traveling with a vehicle, there is a pick-up and drop-off area conveniently located within our terminal facilities. NOAA regulations require a complete stop of a vessel at 500 yards from a whale and a speed limit of 12 knots while within 1.5 miles of a whale. How will you abide by this regulation and stay on schedule?

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Federal regulations in Hawai‘i prohibit approaching a humpback whale closer than 100 yards. Our whale avoidance policy requires a course change and/or speed to maintain a minimum of 500 meters, whenever possible, between the vessel and any whale. When traveling in whale dense areas, our vessel will travel at speeds similar to other vessels and will slow its speed as needed to avoid whales. Our schedule has taken whale avoidance procedures into consideration. How many whales do you foresee killing or harming? Hawaii Superferry’s policy is focused on whale avoidance and a commitment to preventing such incidents. What will the speed of the ferry be during whale season? And at that speed what will the maneuverability of the vessel be – it’s ability to stop and turn – the reaction time? Our whale avoidance policy requires the captain to change course and/or speed to maintain a minimum of 500 meters between the vessel and any whale whenever possible. Our vessels are highly maneuverable with the ability to turn, slow, and stop quickly to avoid marine mammals. Crewmembers are trained to actively seek and identify whales along track line ahead of vessel. How do you plan to see whales when the ferry travels at night? Our whale avoidance policy includes two crew members on the bridge during whale season to assist the Captain and officer in spotting whales. Just one of our four scheduled routes with our first vessel will be operating at night. On all of our routes, including the one route that will be operating at night, the extra crewmembers dedicated to spotting whales will be equipped with motion-stabilizing and state-of-the-art night vision goggles. In addition, a large night vision scope is built into the bridge for the captain. Special radar and digital imaging technologies help our crew avoid whales with as much precision as any craft on the water. How do you expect to adequately inspect all the vehicles in a one-hour turnaround period and how many personnel do you have for this assignment? Gates will open at least two hours prior to departure to begin check-in and screening of vehicles and passengers. Gates will close half an hour prior to departure. This allows nearly two hours for the screening of passengers and vehicles. Passenger and vehicle screening procedures will be conducted by Hawaii Superferry staff following security procedures approved by the U.S. Coast Guard (Department of Homeland Security). As passenger and vehicle loads vary, so will Hawaii Superferry’s port staff to ensure proper screening and appropriate customer service.

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What percentage of vehicles will have their interiors inspected? When will vehicle screening procedures be released for public comment/viewing? Passenger security is a priority for Hawaii Superferry and is one of the foundations for operational procedures – from pre-boarding to disembarking. Passengers will be advised of basic procedures upon reservation. There are vehicle screening procedures for all vehicles and passengers boarding the ferry. These procedures have been approved by the U.S. Coast Guard (Department of Homeland Security). All vehicles, including trunks, and passengers will be visually screened and are subject to random comprehensive inspection – including passengers, baggage, trunks and compartments. In addition, Hawaii Superferry will cooperate fully with local law enforcement efforts. Advertised literature states the Superferry will carry an average of 110 vehicles and 400 passengers. The Superferry is built to carry around 280 vehicles and 800 passengers, which is double the average stated? Why such a large discrepancy? The maximum vessel holding capacity is 866 passengers and 282 sub compact cars. We anticipate carrying an average of 400 passengers and 110 vehicles of mixed sizes (cars and trucks). Each voyage will vary according to the day of week, season, holidays, etc. The projected loads are based on benchmarking other ferry operations and on our own surveys. What/how much will the Superferry do to minimize the demands on Kaua‘i’s police, county life guards, parks personnel, etc.? Will they contribute funds to offset the increase in visitors? Hawaii Superferry is committed to working in partnership with each County where we do business to ensure that the ferry is a strong addition to the local community. One way Hawaii Superferry will contribute to Hawai‘i is through fees paid to various funds. During the first four years Hawaii Superferry will pay about $16 million in General Excise Tax and an additional $16 million into the DOTHarbors Special Harbor Fund. Airline travel with multiple daily flights the primary transportation option for visitors. As an alternative method of inter-island travel and one daily voyage, we do not anticipate a significant increase in visitor travel. Superferry burns 6,000 gallons of fuel one way from Honolulu to Kaua‘i. A plane only burns 500 gallons. How then can the Superferry claim to be so environmentally friendly? Based on carrying a maximum payload for Hawaii Superferry versus a maximum payload for a jet airliner, Hawaii Superferry’s fuel consumption would be less than 50% of the jet aircraft. Additionally, Hawaii Superferry incorporates some of the cleanest and most efficient marine technology today with environmentally conscious features such as non-toxic bottom paint and Low-E glass. These are

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some of the steps we are taking to be environmentally friendly and help protect our unique environment here in Hawaii. What is the energy adjustment (at today’s prices) to the passenger fares? Fuel costs affect all transportation companies and Hawaii Superferry has a fuel surcharge. The surcharge adjusts with the price of fuel and is calculated on a monthly basis. As of February, 2007 the fuel surcharge was about 20%. Please see our complete tariff and fuel surcharge calculations on our website. What type of building/accommodations, including bathroom facilities, will there be for passengers? There will be a tension fabric structure where passengers can check in and for pickup and drop off. There will also be sheltered areas in which to conduct inspections and wheel chair accessible bathroom facilities installed at each port for passengers waiting to board. As soon as passengers and vehicles disembark, oncoming passengers will board the vessel which has excellent facilities and amenities on board. What improvements/changes are planned for Nāwiliwili and when will they be complete? Nāwiliwili improvements will primarily consist of a moveable vehicle ramp installed at Pier 1 for the vehicles to enter/exit the ferry, striping to configuration lanes for vehicle queuing, and a passenger waiting area and restroom facilities. These improvements began in May and will continue this summer. Will there be any proof of ownership required for household items, stereos, TVs, surfboards, etc. As with any transportation company, there are no laws requiring proof of ownership for the transport of household items within the state of Hawai‘i. How will you screen individual luggage, including boxes and other containers? Will each item be opens and gone through before boarding? There are screening procedures for all vehicles and passengers boarding the ferry. These procedures have been developed and approved by the U.S. Coast Guard (Department of Homeland Security) and will be executed by Hawaii Superferry staff. All vehicles will be screened and must have trunks and compartments open and ready for inspection at any time. Vehicles and luggage will be randomly selected for more extensive inspection. In addition, Hawaii Superferry will be cooperating with local law enforcement efforts. Are there plans to alter Superferry inspection procedures if invasive species are found to have been introduced by the Superferry? Similar to other transportation companies, Hawaii Superferry complies with all policies and procedures established by the Hawaii State Department of
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Agriculture (HDOA). We are working closely with HDOA as well as Invasive Species experts to inform passengers and implement procedures to help prevent the transport of invasive species. We will continue to seek the advise of HDOA and invasive species experts after start of service and participate with HDOA on risk assessments. Where are the HDOA facilities located on Kaua‘i? Will HDOA have agriculture inspectors at Nāwiliwili or will Superferry personnel do the inspections? Has HDOA been able to hire the additional inspectors required for the Superferry? Agricultural screenings will be conducted by Hawaii Superferry staff who are trained by HDOA. For those passengers carrying plant and propagated plant parts an HDOA certificate of inspection is required, which can be obtained in advance in advance of the journey. The locations of HDOA inspection facilities will be provided on our web site and when making a reservation. Will alcohol be served on the Superferry? As a service to our customers, wine and beer will be sold to passengers 21 years of age and older. Similar to all establishments licensed to serve alcohol including cruise lines, airlines and dinner cruise operations, state law as well as our own established policies will guide our alcoholic beverage sale and service. Will there be anti-drug K-9 units to inspect each car pre-loading? What other anti-drug precautions are in the plans. Being a good citizen is important to Hawaii Superferry. We will cooperate fully with local, state and federal law enforcement officials when it comes to antidrug programs. The implementation of specific programs is subject to the discretion of law enforcement. Who will pay the extra law enforcement expenses? Hawaii Superferry will become a contributing member of the business community and will pay taxes like any other business operating in the state. In the first four years, it Hawaii Superferry will contribute $16 million to the Harbor Special Fund and an additional $16 million in General Excise Tax. Who is pushing this and why? Who is benefiting and getting money from this? Consumer demand for affordable alternatives for family and business travel between the islands is the foundation of the Hawaii Superferry business plan. This is a service that will benefit our state for years to come, a vision which has been shared and supported by thousands of residents and businesses statewide. Hawaii is a privately funded company. How will the island control how many stay on the island that come off the Superferry? What happens if they all decide to stay?

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As with all transportation companies, it is the passengers who decide how and when they travel. Hawai‘i Superferry provides travel opportunities to and from Kaua‘i. Our primary market is local residents and businesses. How much DOT money has been received by Superferry? How much in harbor fees have been paid by Superferry to DOT? Hawaii Superferry has received no funds from the state or DOT. As approved by the legislature, the Hawaii Department of Transportation has funded $40 million for harbor improvements (barges and ramps) which make it possible for a passenger-vehicle ferry to operate. These improvements are funded by the Harbor Special Fund which collects fees from all harbor users and is used for harbor improvements. All harbor improvements for Matson, Young Brothers, Hawaii Superferry, and other harbor users are owned by the State of Hawai‘i. When in operation, Hawaii Superferry will be a significant source of revenue for the state. During the first four years alone, Hawaii Superferry will pay $16 million into the Harbor Special Fund and an additional $16 million in General Excise Tax. Was the Superferry included or identified in the latest Nāwiliwili Harbor Master Plan? Is the Nāwiliwili Harbor Master Plan being developed? The latest Nāwiliwili Harbor Master plan was done prior to the Hawaii Superferry being introduced. The Department of Transportation is currently in the process of updating harbor master plans statewide, and would determine the timing for the next Nāwiliwili harbor master plan update. What funds or taxes are you providing or paying to the State and/or County for the increased use of public facilities (roads, enforcement, parks, camp grounds, etc.) Over the first four years of service, Hawaii Superferry will pay $16 million into the Harbor Special Fund (used for harbor improvements only) and an additional $16 million in General Excise Tax. If the Superferry proves to not be economically viable, what happens to the vessels and are the Superferry investors subject to financial loss? Hawaii Superferry has undergone rigorous evaluations of its business plan by the U. S. Maritime Administration (MARAD) and J.F. Lehman and Associations. Hawaii Superferry is a privately funded company and as such accepts the financial risk of doing business. MARAD would have control of the vessels should the unexpected occur. All harbor improvements are owned by the state’s DOT Harbors Division. Why must Kaua‘i be part of the 2007 agenda? Why not wait until 2009, if at all. What is the hurry to launch the Superferry on Kaua‘i? Why not wait and see how it goes between Maui and O‘ahu, then decide, based on experience?
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Hawaii Superferry’s interisland transportation model is based on statewide service, with ferries connecting O‘ahu, Maui, Kaua‘i and the Island of Hawaii (those four islands having harbors that can accommodate our vessels). The timing on which islands to service first was made in conjunction with the DOT Harbors. Thousands of Kaua‘i residents are anxiously awaiting the opportunity to have a choice for inter-island travel and commerce. Give me ten good reasons to have the Superferry here on Kaua‘i. 1) Hawaii Superferry offers the people of Hawaii, including Kaua‘i residents, a whole new way to travel to other islands. 2) Hawaii Superferry enables car owners to drive aboard with baggage conveniently stowed in the trunk. Upon arrival, they simply drive off the ship, without having to touch baggage or hustle for ground transportation. 3) Rates are economically priced with one-way passenger fares ranging from $15 for children under two to $62 for an adult full-fare. 4) For just $59 to $69, depending upon day of sailing, travelers may bring their standard sized car packed with all the gear necessary for an island stay. 5) Farmers on the islands of Kaua‘i and Maui, in particular, can transport their perishable items and bring them to new, expanded markets in the same day. 6) Hawaii Superferry is mindful of Hawai‘i’s environment. 7) During the three-hour crossings, passengers are free to roam and relax amongst comfortable reclining chairs, family inspired conversation nooks with inviting sofas, café-style seating in welcoming dining areas, and select seating on the open-air aft deck. 8) Other novel amenities include movies and television, a children’s play area, a game arcade, and a gift shop. 9) Passage aboard Hawaii Superferry will be a truly distinctive and pleasurable experience that will offer new perspectives of Hawai‘i’s magnificent coastlines, land seascapes. 10) Hawaii Superferry vessels are of the highest caliber in terms of comfort, service and safety. The vessel was carefully designed for Hawai‘i’s weather and ocean patterns with added sensitivity to the islands’ unique natural resources. The majority of Kaua‘i residents do not want the Superferry here. How can we avoid it coming here? Our information shows that a majority of Kaua‘i residents welcome this new mode of interisland transportation and are looking forward to having a choice for travel. The latest such study - a statewide public opinion survey conducted in March 2007 by Honolulu company, QMark Research & Polling, found that most of the state’s adult population knows about Hawaii Superferry and a large majority have a favorable view of the new interisland travel alternative and are looking forward to the start of service.

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Why aren’t the interests of Kaua‘i being considered? Hawaii Superferry has conducted numerous meetings and briefings on Kaua‘i to keep the community updated on our plans and to listen to community concerns. We participated with the DOT-Harbors Division and Hawai‘i Department of Agriculture in 22 public informational briefings statewide. Five were conducted on Kaua‘i. Numerous other meetings and presentations have been held around the island to inform and listen to community concerns. Each of the key themes raised – security, environment, whale avoidance, invasive species, and traffic – has been carefully considered and practical solutions worked into the operational plan. How can we believe what’s being said if you keep avoiding the EIS? Hawaii Superferry has addressed environmental and community concerns by implementing procedures in its operation, many of which go beyond what is required by state regulations. Please see our document ‘Commitments and Actions to Address Environmental Concerns’ on our website. The U.S. Department of Transportation’s Maritime Administration determined, through a categorical exclusion, that an environmental review was not needed for a federal loan guarantee. The State’s Office of Environmental Quality Control found that an Environmental Assessment (EA) was not required. These determinations were confirmed by the Courts. No ferry operation under the Maritime Administration has been required to obtain an EA. Other carries such as Matson, Horizon, PASHA, Young Brothers and the Cruise ships are not required to provide an EA either. It would not be fair practice to require an EA of one company after the fact. Can you accept as a condition not to bring any more vehicles to the island than the number going off? It is anticipated that approximately the same number of vehicles will travel to O‘ahu from Kaua‘i as travel to Kaua‘i from O‘ahu. Actual numbers will vary with each voyage. This is based on established travel studies that show neighbor island residents frequently travel to Honolulu for use of services and resources that are not available on island. There should be no significant change in the number of vehicles on Kaua‘i. How did you calculate the expected vehicle loads? Our projections came from market research on Hawaii’s interisland travel market and benchmarked with other markets in the U.S. and around the world. Has DOT taken into consideration traffic issues on Kaua‘i? Independent traffic studies were conducted as part of the operational plan for the Hawaii Superferry submitted to the DOT. These are published and can be found in the environmental commitments section of our website. As a result of
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these studies, the busiest traffic times were avoided and the vessel arrival schedule was adjusted accordingly. Additionally, the pier area which Hawaii Superferry will use is large enough to accommodate all vehicles which can fit on the ferry. Will the Superferry consider applying for the voluntary incidental take permit to show good faith? Hawaii Superferry’s Whale Avoidance Policy represents the best policy and use of technology available today and has been carefully reviewed by the Hawaiian Islands Humpback Whale National Marine Sanctuary Advisory Committee. HSF will continue to explore additional means to help avoid whales. What are the specific illegal drug inspection procedures? All vehicles and passengers are visually screened upon pre-boarding and all are subject to a random comprehensive inspection, during which vehicle compartments, baggage, and passengers will be inspected. Hawaii Superferry will cooperate fully with federal, state and local law enforcement efforts. If the operation is viable, why is government money needed? Hawaii Superferry is a privately funded company and has not received public funds to operate. MARAD issued a loan guarantee for the building of the vessels, which is a common practice in the United States for the building of a vessel of this size. The state’s DOT-Harbors Division used its Special Harbor Fund (not public tax monies) to improve our islands’ harbors with barges and ramps to integrate a passenger/vehicle ferry service into the transportation network. The funding of harbor improvements for Hawaii Superferry is similar to improvements for all other harbors users such as Matson, Young Brothers, and Pasha.

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