State Department Of TransportationState Department Of TransportationHarbors DivisionHarbors DivisionPresentation to the communityPresentation to the communityJune 19, 2006June 19, 2006

HAWAII HAWAII SUPERFERRYSUPERFERRY

MISSION STATEMENTS

DOT Mission StatementTo provide a safe, efficient, accessible, and inter-modal 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 StatementTo 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.

KAHOOLAWE

STATEWIDE HARBORS SYSTEM

HAWAII

OAHU

MAUI

KAUAI

Kahoolawe

Molokai

Lanai

Niihau

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

Kaumalapau

HISTORICAL EVENTS & FACTS

Harbors operating agreement 9/7/05

Advertise design-build RFP 5/13/05

Award design-build RFP to HTBI ($37.488 million) 9/9/05

Issue Notice To Proceed to HTBI 11/7/05

Funding available in two parts (Act 178/SLH 2005):$20 million available 7/1/05$20 million available 7/1/06

Barges and ramps in place by:Honolulu, Kahului and Nawiliwili Harbors 2nd quarter ‘07Kawaihae Harbor 1st quarter ‘09

Kaumalapau

HARBORS OPERATING AGREEMENTState Responsibilities:1. Berth and landside areas to operate from.2. Barges and ramp systems to load and unload vessel.

Hawaii Superferry Responsibilities:1. Operations of ferry and facilities.2. Maintenance of facilities.3. 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 OR20 years after commencement of service of 2nd vessel.

COLLABORATIVE EFFORT

• 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.

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

Kaumalapau

KAUAINawiliwili HarborPier 1

HAWAIIKawaihae HarborPier 1

OAHUHonolulu HarborPiers 19 and 20

MAUIKahului HarborPier 2B

TERMINAL IMPROVEMENTS

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.Mahalo for your time.

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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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16Kahului 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

28

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

Hawaii SuperferryHawaii Superferry

State of Hawaii Department of TransportationState of Hawaii Department of TransportationHarbors DivisionHarbors Division

Public Informational MeetingsPublic Informational MeetingsJune 2006June 2006

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Bringing Back Affordable Bringing Back Affordable Interisland TransportationInterisland 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% completeConstruction is 80% complete……

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……..on HSFon HSF’’s 1s 1stst vessel in Mobile, ALvessel in Mobile, AL……

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…….from the bridge to the decks below..from the bridge to the decks below.

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Long History of Ocean TravelLong 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 TechnologyCatamaran 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 Convenience, Speed & Comfort Make Travel A WorldTravel A World--Class ExperienceClass Experience

Up to 282 cars or a mix of vehicles

28 trucks/buses and 65 cars

Drive on, drive offFast, easy boardingNo parking hasslesNo luggage transfers

<<<<<<<<

Cruise ship-like atmosphereRelaxed dining

Game arcade/kid’s play areaTV and movies

>>>>>>>> Up to 866 passengers

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The OnThe On--Board ExperienceBoard Experience

Retail store

Photos from similar ferry in

the Canary Islands

Dining and lounge areas

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Routes Have Been In Existence For Routes Have Been In Existence For More Than A CenturyMore 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 SchedulePreliminary Daily Schedule11

Ferry One Service Begins Mid-2007

Departs Time Arrives TimeHonolulu 6:30 AM Kahului 9:30 AMKahului 10:30 AM Honolulu 1:30 PMHonolulu 2:30 PM Nawiliwili 5:30 PMNawiliwili 6:30 PM Honolulu 9:30 PMFerry Two Service Begins Early 2009

Departs Time Arrives TimeHonolulu 7:30 AM Kawaihae 11:45 AMKawaihae 12:45AM Honolulu 5:00 PMHonolulu 6:00 PM Kahului 9:00 PMKahului 10:00 PM Honolulu 1:00 AM1 Subject to DOT and PUC review and approval

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Why Are We Doing This?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 Rising Interisland Airfares Have Hurt Hawaii Resident TravelHurt Hawaii Resident Travel

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004Year

One

Way

Airf

are

Incl

udin

g Ta

xes

& F

ees

($)

Resident LowestFareNon-ResidentLowestUnrestricted

Sources: Hawaii DBEDT, Honolulu Advertiser, Honolulu Star-Bulletin

Fewer Hawaii residents travel interisland

While local travel is down, morefolks 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.

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Interisland Air Travel DeclinesInterisland Air Travel Declines

400

450

500

550

1995 1998 2001 2004

Interisland

Mainland

22% decline since 2000

Source: SMS Hawaii Market Study(Base: Hawaii adults, 18 years or older, in thousands)

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More Good ReasonsMore 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 Nearly 90% Of Residents Of All Islands Plan To Use Superferry (Maui Highest At 94%)To Use Superferry (Maui Highest At 94%)

Source: Market Trends Pacific April 15, 2005

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Statewide Oahu Maui County East Hawaii West Hawaii Kauai

Lik

elihood T

o R

ide

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Everyday Affordable Fares *Everyday Affordable Fares *Maui & Kauai Hawaii

(Non-peak / Peak)

Base Passenger Fare $50 / $60 $ 60 / $70

Pickup / Work Van20’ Delivery Truck (fully loaded)Canoe trailer (45’)Bicycle40’ school busDog or cat (in car)Surfboard or Canoe (on car)

$90 / $100$400

$200 / $225$20 / $25

$638FREEFREE

$100 / $110$500

$225 / $250$25 / $30

$788FREEFREE

Advance Internet Fare $42 / $52 $52 / $62Car / SUV / Mini Van $55 / $65 $65 / $75

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

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Interisland Airlines Fares after Go!*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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SpecialtySpecialty AgricultureAgricultureScenario: Local farmer needs to quickly get fresh fruit to Honolulu for sale & export.

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

Air Freight

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 StateOperating Agreement with the StateState 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 HarborsHSF Projected Fees Paid to Harbors$5.6

$5.3

$3.2

$2.4

$0

$1

$2

$3

$4

$5

$6

2008 2009 2010 2011(12 months ended June 30)

(mill

ions

)

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

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Honolulu Harbor LayoutHonolulu Harbor Layout

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Kahului Harbor LayoutKahului Harbor Layout

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Nawiliwili Harbor LayoutNawiliwili Harbor Layout

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Kawaihae Harbor LayoutKawaihae Harbor Layout

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Port FacilitiesPort 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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SecuritySecurity

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 & SafetyOnboard 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 Commercial Harbor Users Working TogetherWorking 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 StudiesTraffic 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 Most Environmentally Friendly Vessels In HawaiiIn Hawaii

Cleanest & most energy efficient marine engines

Use fuel 100x cleanerThan conventional ships

“Low-E” glass & CFL lighting saves energy

Zero wastewater discharge keeps Hawaii’s oceans clean

•No ballast tanks •Ultra-slippery non-toxic bottom paint

Marine organisms are not transported

Gutter drains capture fluids

10x quieter underwater thanconventional ships

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Whale AvoidanceWhale Avoidance

• Whale avoidance has been a significant issue for Hawaii Superferry since the beginning

• HSF whale avoidance policy and procedures have been developed with input of whale researchers and others over a 3 year period

• The SAC voted unanimously in support of Hawaii Superferry’s whale avoidance policy in May 2005.

• HSF is the only company to submit a whale avoidance policy to the Hawaiian Islands National Marine Sanctuary Advisory Council (SAC).

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We Change Routes During Whale We Change Routes During Whale Season To Avoid WhaleSeason To Avoid Whale--Dense AreasDense 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

Chart source: Dr. Joseph Mobley, University of Hawaii

Non-whale season routes

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Invasive SpeciesInvasive Species

• HSF working with Hawaii Department of Agriculture (HDOA) Plant Industry & Animal Industry Divisions1) To ensure consistent application of HDOA rules and

regulations2) To develop appropriate polices and procedures for

HSF3) 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 SpeciesInvasive 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, MauiBoard 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 ServiceHSF Timetable to Start of Service

Launch Team Assembled Early 2006Advisory Boards Established March 2006

Delivery of Vessel I Early 2007Crew training, route proving

and familiarization Early 2007Service Vessel I Mid 2007

Delivery of Vessel II Early 2009Service Vessel II Early 2009

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Linking Islands, Connecting FamiliesLinking 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

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