Superferry vs. Pirates?

Mahalo to Mike Reitz for pointing out that this story of pirates is very deceiving and may be partially about hyping a threat in order to secure funding for the expensive Littoral Combat Ship (LCS), a prototype of which was made by Austal Corporation, the same company that made the Hawai’i Superferry and its soon to be built sisters, the Joint High Speed Vessel (JHSV).    The article by John Feffer gives an excellent analysis of the origins of the “pirate” problem in Somalia (they call themselves the coast guard).  It also looks at the process by which the defense contractors help to create threats that can be fixed by their product.

======

Source: http://www.tomdispatch.com/post/175062/john_feffer_the_piracy_problem

posted April 21, 2009 3:54 pm

Tomgram: John Feffer, The Piracy Problem

Sometimes, it seems as if all U.S. global geopolitics boils down to little more than a war for money within the Pentagon. In the best of times, each armed service still has to continually maintain and upgrade its various raisons d’être for the billions of dollars being poured into it; each has to fight — something far more difficult in economic hard times — to maintain or increase its share of the budgetary pie. The remarkable thing is that we are now in the worst of economic times and yet, for one more year, the Pentagon can still pretend that it just ain’t so. After eight years in which the Bush administration broke the bank militarily, an already vastly bloated Pentagon budget will miraculously rise once more, even if by a relatively modest 4%, in the coming fiscal year. But don’t for a second think that the Army, Air Force, Marines, and Navy aren’t already scrambling for toeholds suitable for a more precarious future.

Our unchallenged imperial Navy rules the sea lanes of the planet. Its 11 aircraft carrier battle groups, those vast water-borne military bases, roam the oceans of the world without opposition. But there’s a problem. Right now, as John Feffer, co-director of the invaluable website Foreign Policy In Focus and TomDispatch regular, points out below, the American war of note is on the ground in (and in the air over) the Af-Pak theater of operations, which leaves the Navy scrambling for meaning — that is, future money.

Right now, the Army and the Marines are getting the headlines and the attention, which could mean the lion’s share of future loot, as they recalibrate based on a counterinsurgency future. (One, two, many Afghanistans…) So, thought of in naval terms, the Somali pirates — that is, an actual threat at sea — have arrived just in the nick of time, providing an excuse for a new wave of potential expenditures aimed at creating the equivalent of counterinsurgency warfare at sea. In fact, think of those pirates as just the leading edge of a wave of new naval missions involving various forms of low-intensity operations afloat: not just piracy but also “seaborne terrorism, nuclear proliferation, drug smuggling, and human trafficking” for which naval planners and boosters are already starting to beat the drums.

And of course, no new mission should lack its preferably expensive, high-tech weaponry: in this case, the Littoral Combat Ship, a mighty pile of money in a relatively small package. A third the size of a destroyer, this $500 million craft is meant to patrol the planetary shallows, even if it has so far proved a production-plagued nightmare. Nonetheless, Secretary of Defense Gates has just modestly upped the craft’s production — and there’s more to come from Navy “reformers.” Count on a new array of smaller, shallow-water vessels that could be formed into little armadas already termed by one naval officer “Influence Squadrons.”

Right now, of course, unmanned aerial drones are the hottest thing in the new Air Force counterinsurgency arsenal (and the Navy’s commissioning them as well), so how about unmanned robo-boats? Don’t worry: they’re already being considered as part of the new Navy mission. The sea’s the limit, so to speak. Tom

Monsters vs. Aliens

Why Terrorists and Pirates Are Not About to Team Up Any Time Soon

By John FefferIn the comic books, bad guys often team up to fight the forces of good. The Masters of Evil battle the Avengers superhero team. The Joker and Scarecrow ally against Batman. Lex Luthor and Brainiac take on Superman.

And the Somali pirates, who have dominated recent headlines with their hijacking and hostage-taking, join hands with al-Qaeda to form a dynamic evil duo against the United States and our allies. We’re the friendly monsters — a big, hulking superpower with a heart of gold — and they’re the aliens from Planet Amok.

In the comic-book imagination of some of our leading pundits, the two headline threats against U.S. power are indeed on the verge of teaming up. The intelligence world is abuzz with news that radical Islamists in Somalia are financing the pirates and taking a cut of their booty. Given this “bigger picture,” Fred Iklé urges us simply to “kill the pirates.” Robert Kaplan waxes more hypothetical. “The big danger in our day is that piracy can potentially serve as a platform for terrorists,” he writes. “Using pirate techniques, vessels can be hijacked and blown up in the middle of a crowded strait, or a cruise ship seized and the passengers of certain nationalities thrown overboard.”

Chaotic conditions in Somalia and other countries, anti-state fervor, the mediating influence of Islam, the lure of big bucks: these factors are allegedly pushing the two groups of evildoers into each other’s arms. “Both crimes involve bands of brigands that divorce themselves from their nation-states and form extraterritorial enclaves; both aim at civilians; both involve acts of homicide and destruction, as the United Nations Convention on the High Seas stipulates, ‘for private ends,'” writes Douglas Burgess in a New York Times op-ed urging a prosecutorial coupling of terrorism and piracy.

We’ve been here before. Since 2001, in an effort to provide a distinguished pedigree for the Global War on Terror and prove the superiority of war over diplomacy, conservative pundits and historians have regularly tried to compare al-Qaeda to the Barbary pirates of the 1800s. They were wrong then. And with the current conflating of terrorism and piracy, it’s déjà vu all over again.

Misreading Piracy

Unlike al-Qaeda, the Somali pirates have no grand desire to bring down the United States and the entire Western world. They have no intention of establishing some kind of piratical caliphate. Despite Burgess’s claims, they are not bent on homicide and destruction. They simply want money.

Most of the pirates are former fisherman dislodged from their traditional source of income by much larger pirates, namely transnational fishing conglomerates. When a crippled Somali government proved incapable of securing its own coastline, those fishing companies moved in to suck up the rich catch in local waters. “To make matters worse,” Katie Stuhldreher writes in The Christian Science Monitor, “there were reports that some foreign ships even dumped waste in Somali waters. That prompted local fishermen to attack foreign fishing vessels and demand compensation. The success of these early raids in the mid-1990s persuaded many young men to hang up their nets in favor of AK-47s.”

Despite their different ideologies — al-Qaeda has one, the pirates don’t — it has become increasingly popular to assert a link between radical Islam and the Somali freebooters. The militant Somali faction al-Shabab, for instance, is allegedly in cahoots with the pirates, taking a cut of their money and helping with arms smuggling in order to prepare them for their raids. The pirates “are also reportedly helping al-Shabab develop an independent maritime force so that it can smuggle foreign jihadist fighters and ‘special weapons’ into Somalia,” former U.S. ambassador to Ethiopia David Shinn has recently argued.

In fact, the Islamists in Somalia are no fans of piracy. The Islamic Courts Union (ICU), which had some rough control over Somalia before Ethiopia invaded the country in 2006, took on piracy, and the number of incidents dropped. The more militant al-Shabab, which grew out of the ICU and became an insurgent force after the Ethiopian invasion, has denounced piracy as an offense to Islam.

The lumping together of Islamists and pirates obscures the only real solution to Somalia’s manifold problems. Piracy is not going to end through the greater exercise of outside force, no matter what New York Times columnist Thomas Friedman may think. (In a recent column lamenting the death of diplomacy in an “age of pirates,” he recommended a surge in U.S. money and power to achieve success against all adversaries.) Indeed, the sniper killing of three pirates by three U.S. Navy Seals has, to date, merely spurred more ship seizures and hostage-taking.

Simply escalating militarily and “going to war” against the Somali pirates is likely to have about as much success as our last major venture against Somalia in the 1990s, which is now remembered only for the infamous Black Hawk Down incident. Rather, the United States and other countries must find a modus vivendi with the Islamists in Somali to bring the hope of political order and economic development to that benighted country.

Diplomacy and development, however lackluster they might seem up against a trio of dead-eyed sharpshooters, are the only real hope for Somalia and the commercial shipping that passes near its coastline.

From the Shores of Tripoli

It would have been the height of irony if the sharpshooters who took out the three Somali youths in that lifeboat with their American hostage had been aboard the USS John Paul Jones, a Navy guided-missile destroyer. Considered the father of the American Navy, Jones was quite the pirate in his day. Or so thought the British, whose ships he seized and looted.

We are left instead with the lesser irony of the sharpshooters taking aim from the USS Bainbridge. This ship was named for Commodore William Bainbridge, who fought against the Barbary pirates in the battles of Algiers and Tunis during the Barbary Wars and was himself taken prisoner in 1803.

The parallels between the pirates of yesterday and today are striking. Then, as now, American observers miscast the pirates as Muslim radicals. In fact, as Frank Lambert explains in his book The Barbary Wars, those pirates actually served secular governments that were part of the Ottoman Empire (much as Sir Francis Drake plundered Spanish ships on behalf of Queen Elizabeth in the sixteenth century or Jones served the United States in the eighteenth). Then, as now, the pirates resorted to preying on commercial shipping because they’d been boxed out of legitimate trade.

The Barbary pirates took to looting European vessels because European governments had barred the states of Algiers, Tripoli, and Morocco from trading in their markets. Back then, the fledgling United States accused the Barbary pirates of being slavers without acknowledging that the U.S. was then the center of the global slave trade. Today, the U.S. government decries piracy, but doesn’t do anything to prevent the maritime poaching of fishing reserves that helped push pirates from their jobs into risky but lucrative careers in freebooting.

The most improbable link, however, involves the conflation of terrorism and piracy. In the aftermath of September 11, pundits and historians identified the U.S. military response to the Barbary pirates as a useful precedent for striking out against al-Qaeda. Shortly after the attacks, law professor Jonathan Turley invoked the war against the Barbary pirates in congressional testimony to justify U.S. retaliation against the terrorists. Historian Thomas Jewett, conservative journalist Joshua London, and executive director of the Christian Coalition of Washington State Rick Forcier all pointed to those pirates as Islamic radicals avant la lettre to underscore the impossibility of negotiations and the necessity of war, both then and now.

The battle against the Barbary pirates led to the creation of the U.S. Marine Corps (“…to the shores of Tripoli“) and the first major U.S. government expenditure of funds on a military that could fight distant wars. For historians like Robert Kagan (in his book Dangerous Nation), that war kicked off what would be a distinguished history of empire, which he contrasts with the conventional wisdom of a United States that only reluctantly assumed its hegemonic mantle.

Will the current conflict with the Somali pirates, if successfully linked in the public mind to global terrorism, serve as one significant part of a new justification for the continuation of empire and a whole new set of military expenditures needed to sustain such a venture?

The New GWOT?

The United States has the most powerful navy in the world. But what it can do against the Somali pirates is limited. Big guns and destroyers are incapable of covering the necessary vast ocean expanses in which the relatively low-tech pirates operate, can’t respond quickly enough to pin-prick attacks, and ultimately aren’t likely to intimidate what Secretary of Defense Robert Gates has quite correctly termed “a bunch of teenage pirates” with little to lose.

“The area we patrol is more than one million square miles and the simple fact of the matter is we just can’t be everywhere at once to prevent every attack of piracy,” says Lt Nathan Christensen, of the U.S. Fifth Fleet in Bahrain. Last year, approximately 23,000 ships passed through the Gulf of Aden. Pirates snagged 93 of them (some large, some tiny). Yet, in part because these trade routes are so crucial to global economic wellbeing, this minuscule percentage struck fear into the hearts of the most powerful countries on the planet.

The failure of the U.S. Navy to stamp out piracy has led to predictable calls for more resources. For instance, to deal with nimble, low-intensity threats like the speedy pirates, the Pentagon is looking at Littoral Combat Ships instead of another several-billion-dollar destroyer. The Navy is planning to purchase 55 of these ships, which, at $450-$600 million each, will come in at around $30 billion, a huge sum for a project plagued with costs overruns and design problems. With the ground (and air) war heating up in Afghanistan and the CIA in charge of operations in Pakistan, the Navy is understandably trying to keep up with the other services. The Navy’s goal of a 313-ship force, which boosters champion regardless of cost, can only be reached by appealing to a threat comparable to terrorists on land. Why not the functional equivalent of terrorists at sea?

Pirates are the perfect threat. They’ve been around forever. They directly interfere with the bottom line, so the business community is on board. Unlike China, they don’t hold any U.S. Treasury Bonds. Indeed, since they’re non-state actors, we can bring virtually every country onto our side against them.

And, finally, the Pentagon is already restructuring itself to meet just such a threat. Through its “revolution in military affairs,” the adoption of a doctrine of “strategic flexibility,” and the cultivation of rapid-response forces, the Pentagon has been gearing up to handle the asymmetrical threats that have largely replaced the more fixed and predictable threats of the Cold War era, and even of the “rogue state” era that briefly followed. The most recent Gates military budget, with its move away from outdated Cold War weapons systems toward more limber forces, fits right in with this evolution. Canceling the F-22 stealth fighter aircraft and cutting money from the Missile Defense Agency in favor of more practical systems is certainly to be applauded. But the Pentagon isn’t about to hold a going-out-of-business sale. The new Obama defense budget will actually rise about 4%.

George W. Bush’s Global War on Terror, or GWOT, turned out to be a useful way for the Pentagon to get everything it wanted: an extraordinary increase in spending and capabilities after 2001. With GWOT officially retired and an unprecedented federal deficit looming, the Pentagon and the defense industries will need to trumpet new threats or else face the possibility of a massive belt-tightening that goes beyond the mere shell-gaming of resources.

The War on Terror lives on, of course, in the Obama administration’s surge in Afghanistan, the CIA’s campaign of drone attacks in the Pakistani borderlands, and the operations of the new Africa Command. However, the replacement phrase for GWOT, “overseas contingency operations,” doesn’t quite fire the imagination. It’s obviously not meant to. But that’s a genuine problem for the military in budgetary terms.

Enter the pirates, who from Errol Flynn to Johnny Depp have always been a big box-office draw. As the recent media hysteria over the crew of the Maersk Alabama indicates, that formula can carry over to real life. Take Johnny Depp out of the equation and pirates can simply be repositioned as bizarre, narcotics-chewing aliens.

Then it’s simply a matter of the United States calling together the coalition of the willing monsters to crush those aliens before they take over our planet. And you thought “us versus them” went out with the Bush administration…

John Feffer is the co-director of Foreign Policy In Focus at the Institute for Policy Studies. His writings can be found at his website, and you can subscribe to his weekly e-newsletter World Beat here.

Hawai'i taxpayers could pay $40M Superferry bill

Friday, April 10, 2009 | Modified: Wednesday, April 15, 2009, 12:00am

Hawaii taxpayers could pay $40M Superferry bill

Pacific Business News (Honolulu) – by Chad Blair

Hawaii taxpayers could end up paying for most of the $40 million in harbor improvements carried out to accommodate Hawaii Superferry, which removed its ship, the Alakai, from Hawaiian waters on March 28.

It also is possible that Hawaii Superferry will be held responsible for reimbursing the state. The state Department of Transportation and the Attorney General’s Office are reviewing the enforceability of the state’s operating agreement with Superferry.

The state spent the $40 million, using general obligation reimbursable bonds, to construct barges with ramps at harbors in Honolulu, Kahului on Maui, and Kawaihae on the Big Island. A ramp also was built for Kauai’s Nawiliwili Harbor.

Under terms of the agreement, Hawaii Superferry was to reimburse the state for the $40 million. A fee schedule between the D.O.T. and Superferry called for minimum monthly payments of $191,667, or 1 percent of gross receipts, “less certain adjustments,” for the first three years.

The payments began Dec. 13, 2007, when Superferry resumed its Honolulu-Kahului sailings following a court-ordered suspension. Superferry had paid the state $2.6 million when it halted service March 19. Service stopped after the Hawaii Supreme Court ruled that a state law exempting Superferry from an environmental impact statement was unconstitutional.

“A lot depends on future events that are currently unknown,” said Mike Formby, the D.O.T.’s deputy director of harbors. “We don’t know how long Superferry will be out of the state, or how long the Chapter 343 review will take. So we have not come up with a final analysis or assessment.”

Formby was referring to Hawaii Revised Statutes Chapter 343, which calls for an environmental impact statement under the Hawaii Environmental Policy Act.

“Our basic position is that, although Superferry has left the market, we reserve all rights as to the enforceability of the operating agreement,” he said. “We are not conceding that it is void or unenforceable.”

The $40 million was used up faster than expected because of repairs made to the Kahului barge, battered by rough winter seas in 2007 and 2008.

The Kawaihae barge was rendered inoperable following the October 2006 Big Island earthquake and towed to the protected waters of Honolulu Harbor. The Kahului barge is expected to join it shortly.

Only Superferry can use the barges, which were made specially for the Alakai. Also, they are “foreign hulled,” meaning they do not qualify under the federal Jones Act for use by vessels sailing directly between U.S. ports, Formby said.

It was the harbor improvements that triggered the court-ordered environmental impact statement.

Belt Collins, which has a $1.3 million contract to conduct the EIS, has halted work until the D.O.T. can assess what is now required under Chapter 343 and state procurement law.

Formby said he expects the EIS to be completed within three to six months.

“That $40 million will be satisfied over time,” said Gary North, chairman of the Hawaii Harbor Users Group, adding that his members understand “everybody pays” for use of harbors.

Some lawmakers say they were worried all along about getting stuck with the $40 million tab.

“Neighbor Island senators especially asked Superferry, blatantly, what happens if it fails?” said Sen. Kalani English, D-E. Maui-Molokai-Lanai. “We were told, ‘Oh, we’ll pay it back, it’s all going to pay off.’ Those weren’t the exact words, but that was the general sense. And now this has happened and the state has to pay for it.”

English, now chairman of the Senate’s transportation committee, supports interisland ferries but opposed the Legislature’s decision to exempt Superferry from state law.

“If Superferry does get a military contract, which we know they are pursuing, then the taxpayers of Hawaii have subsidized their proof-of-concept experiment,” English said. “That’s what this was, to figure out all the bugs and fix it.”

Hawaii Superferry officials had little to say about the rest of the $40 million or about the future of its operations in Hawaii.

“[There is] no clarity on those issues at this time,” Hawaii Superferry President and CEO Tom Fargo said through a spokeswoman.

cblair@bizjournals.com | 955-8036

Source: http://pacific.bizjournals.com/pacific/stories/2009/04/13/story3.html?b=1239595200^1809947

Abercrombie speaks about Makua and Hawai'i Superferry

Neil Abercrombie, 20-year Congressional Representative from Hawai’i, is making a run for Governor in 2010.  He started out his political career as an anti-war activist at UH in the 1960s.   More recently, he has been a proponent of militarization of Hawai’i, including supporting the largest military land-grab since World War II, the Army Stryker Brigade.  But in recent years, he  has also come out criticizing the Army activities in Makua valley.   To illustrate his contradictory stance, here’s a excerpt from a Honolulu Star Bulletin Article about his views on the Hawai’i Superferry and the military in Hawai’i:

Hawaii Superferry: The service both to the military and local residents was valuable, he says, but the process of approving the environmental impact statement was mishandled. “This was a judgment disaster and a policy disaster.”

Military: Urge the military to leave Makua Valley. “The one time they were able to do some training, they managed to set it on fire.”

It shows a couple of things. First, that the steady efforts to win the clean up and return of Makua has built enough support to force him to recognize this issue.    And second, that there is a calculation that giving up Makua would win enough support from Kanaka Maoli, environmentalists, and peace and demilitarization activists to neutralize his stance on other military expansion efforts.

Here’s the full article:

http://www.starbulletin.com/news/20090414_Abercrombie_anxious_for_campaign_to_begin.html

Abercrombie anxious for campaign to begin

By Richard Borreca

POSTED: 01:30 a.m. HST, Apr 14, 2009

With the impatience of someone who at 70 has finally decided what he wants to do in life, Neil Abercrombie sits in his Kakaako campaign office anxious to get on with what he considers the most important campaign of his political life.

U.S. Rep. Abercrombie is leaving a 20-year career in Washington politics at the time when his Democratic Party controls Congress and when he is close enough to President Barack Obama to have been in the tight crowd along with Oprah Winfrey to celebrate the inauguration upstairs at the White House.

The battle is for governor of Hawaii, a goal more than 18 months away but one Abercrombie is already fighting.

“There is no sense fooling around. If anyone else wants to run for governor, say so. Let’s get going and do it. This is not about options or finessing it,” said Abercrombie, who was the first to declare in a Democratic primary that could also attract Mayor Mufi Hannemann and Senate President Colleen Hanabusa.

For Abercrombie, who came to Hawaii in 1959 as a graduate student and first ran for office in 1970, the governor’s race is to be his last quest.

“I have a renewed sense of energy and joy. This is my 50th anniversary of coming to Hawaii. It is as if this incredible gift has been given to me.

“Everything I have learned about Hawaii makes me who I am today, and I want to bring a culmination in this run and I feel joyous about it.

“I will be able to say I gave every bit of energy and all of my sense of aloha to this campaign, and I will be content,” Abercrombie said last week in an interview with the Star-Bulletin.

Abercrombie went from being a left-wing campus orator and graduate student to serving in the state House and Senate and the Honolulu City Council before winning an office in Congress.

“He has name recognition and a well-tested political operation,” said Neal Milner, University of Hawaii political scientist and ombudsman. “He is formidable.”

Hannemann would be Abercrombie’s strongest rival, said Milner, because the Honolulu mayor also brings a skillful campaign style and the ability to raise campaign cash to the race.

“With Abercrombie,” Milner said, “you have someone who is already tested. It is not like you are suddenly going to find out something about him.”

Abercrombie said all those years in Congress, the Legislature and City Hall have both shaped and changed him. The garrulous Democrat said he has learned, for instance, when to stop talking and listen.

“I understand that it can be construed as lecturing other people, putting yourself in a position where you are telling them what they need to do. That is the wrong way to go about it,” he said. “People vote with you and for you for their own reasons, not yours. You are not the source of your own power, and taking that into account in yourself is something you have to do every day.”

So far Abercrombie has found some valuable friends, picking up old-time Democratic Party war horses like Charles Toguchi, the former state schools superintendent and legislator, and Ed Hasegawa, who worked on the Hawaii Obama campaign. Also, Abercrombie enlisted Andrew Aoki, 40, an attorney and co-founder of 3Point, a public-interest consulting firm, and Kanu Hawaii, a group that promotes the culture of aloha.

In contrast to Abercrombie’s extensive elective track record, Aoki is new to politics.

“I understand the paradox … but it may be that Neil’s time has come. There is an alignment between his principles and the action that this time needs,” Aoki said.

“He is a learner and he is open. His mind is filled with tons of experience, but he is willing to listen to those who feel they are out of the loop.”

This week, Abercrombie is wrapping up a two-week Easter recess trip back to Hawaii. He had campaign meetings on Kauai and in Kalihi and Hawaii Kai last week which supporters said each drew crowds of more than 100. He also plans a fundraising event while in the islands.

Abercrombie said he will continue to work in Washington and commute to his home state when he can. If he resigned, it would trigger a special election because House members cannot be appointed, like senators, and Abercrombie said he did not want the state to go through the expense of holding a special election.
Abercrombie on the issues

As he starts his run for governor, U.S. Rep. Neil Abercrombie is detailing some of his campaign issues.

Housing: Establish a public-private partnership to build and maintain new affordable housing. Demolish Aloha Stadium to allow development of the property and require private developers build a new stadium. “You build us a new stadium so we can really compete in Division I.”

Environment: Move Hawaii toward energy independence using domestically produced fuel and toward growing its own food. “These are self-defense measures, and you have to be completely devoted to them.”

Hawaii Superferry: The service both to the military and local residents was valuable, he says, but the process of approving the environmental impact statement was mishandled. “This was a judgment disaster and a policy disaster.”

Military: Urge the military to leave Makua Valley. “The one time they were able to do some training, they managed to set it on fire.”

With the impatience of someone who at 70 has finally decided what he wants to do in life, Neil Abercrombie sits in his Kakaako campaign office anxious to get on with what he considers the most important campaign of his political life.

U.S. Rep. Abercrombie is leaving a 20-year career in Washington politics at the time when his Democratic Party controls Congress and when he is close enough to President Barack Obama to have been in the tight crowd along with Oprah Winfrey to celebrate the inauguration upstairs at the White House.

The battle is for governor of Hawaii, a goal more than 18 months away but one Abercrombie is already fighting.

“There is no sense fooling around. If anyone else wants to run for governor, say so. Let’s get going and do it. This is not about options or finessing it,” said Abercrombie, who was the first to declare in a Democratic primary that could also attract Mayor Mufi Hannemann and Senate President Colleen Hanabusa.

For Abercrombie, who came to Hawaii in 1959 as a graduate student and first ran for office in 1970, the governor’s race is to be his last quest.

“I have a renewed sense of energy and joy. This is my 50th anniversary of coming to Hawaii. It is as if this incredible gift has been given to me.

“Everything I have learned about Hawaii makes me who I am today, and I want to bring a culmination in this run and I feel joyous about it.

“I will be able to say I gave every bit of energy and all of my sense of aloha to this campaign, and I will be content,” Abercrombie said last week in an interview with the Star-Bulletin.

Abercrombie went from being a left-wing campus orator and graduate student to serving in the state House and Senate and the Honolulu City Council before winning an office in Congress.

“He has name recognition and a well-tested political operation,” said Neal Milner, University of Hawaii political scientist and ombudsman. “He is formidable.”

Hannemann would be Abercrombie’s strongest rival, said Milner, because the Honolulu mayor also brings a skillful campaign style and the ability to raise campaign cash to the race.

“With Abercrombie,” Milner said, “you have someone who is already tested. It is not like you are suddenly going to find out something about him.”

Abercrombie said all those years in Congress, the Legislature and City Hall have both shaped and changed him. The garrulous Democrat said he has learned, for instance, when to stop talking and listen.

“I understand that it can be construed as lecturing other people, putting yourself in a position where you are telling them what they need to do. That is the wrong way to go about it,” he said. “People vote with you and for you for their own reasons, not yours. You are not the source of your own power, and taking that into account in yourself is something you have to do every day.”

So far Abercrombie has found some valuable friends, picking up old-time Democratic Party war horses like Charles Toguchi, the former state schools superintendent and legislator, and Ed Hasegawa, who worked on the Hawaii Obama campaign. Also, Abercrombie enlisted Andrew Aoki, 40, an attorney and co-founder of 3Point, a public-interest consulting firm, and Kanu Hawaii, a group that promotes the culture of aloha.

In contrast to Abercrombie’s extensive elective track record, Aoki is new to politics.

“I understand the paradox … but it may be that Neil’s time has come. There is an alignment between his principles and the action that this time needs,” Aoki said.

“He is a learner and he is open. His mind is filled with tons of experience, but he is willing to listen to those who feel they are out of the loop.”

This week, Abercrombie is wrapping up a two-week Easter recess trip back to Hawaii. He had campaign meetings on Kauai and in Kalihi and Hawaii Kai last week which supporters said each drew crowds of more than 100. He also plans a fundraising event while in the islands.

Abercrombie said he will continue to work in Washington and commute to his home state when he can. If he resigned, it would trigger a special election because House members cannot be appointed, like senators, and Abercrombie said he did not want the state to go through the expense of holding a special election.

Abercrombie on the issues

As he starts his run for governor, U.S. Rep. Neil Abercrombie is detailing some of his campaign issues.

Housing: Establish a public-private partnership to build and maintain new affordable housing. Demolish Aloha Stadium to allow development of the property and require private developers build a new stadium. “You build us a new stadium so we can really compete in Division I.”

Environment: Move Hawaii toward energy independence using domestically produced fuel and toward growing its own food. “These are self-defense measures, and you have to be completely devoted to them.”

Hawaii Superferry: The service both to the military and local residents was valuable, he says, but the process of approving the environmental impact statement was mishandled. “This was a judgment disaster and a policy disaster.”

Military: Urge the military to leave Makua Valley. “The one time they were able to do some training, they managed to set it on fire.”

Ferry Tale: Book Review of The Superferry Chronicles

Ferry tale

There’s plenty of blame to go around, but Hawaii court rights ship in end

By Michael Leidemann / Special to the Star-Bulletin

POSTED: 01:30 a.m. HST, Apr 05, 2009

The Hawaii Superferry is gone, probably for good, but the political, legal, financial and ethical stink it leaves behind is going to cling to the islands for a long time. You might as well get used to it, and if you’re still trying to figure out who’s responsible, this book might help.

The Hawaii Supreme Court effectively shut the company down last month, ruling that the special law that it was operating under was unconstitutional. With that, the company announced that it was closing down operations, laying off workers and looking for a new home for its $350 million first ship. “We’re taking our beach ball and looking for a new ocean to toss it in,” Adm. Thomas Fargo, the company’s chief executive office, practically told Hawaii after the ruling came out.

“Good riddance,” some people said.

“See, anti-business,” the old guard said.

“Dang, I wish I’d ridden it at least once before it left,” the rest of us whispered, but not loud enough to be heard.

The court’s ruling that the state cannot set up a special law to accommodate one company, no matter how much money it was bringing into the state, especially if it was done by circumventing our treasured environmental laws, was the right thing and a long time in the making.

Only most of us didn’t see it coming. Were we silent conspirators, blinded by our own desire for a cheap interisland travel alternative, or did we have the wool pulled over our eyes by a high-flying group of investors who found friends in high places at the Legislature and Governor’s Office?

Clearly, the authors of this book think it’s the latter.

“We don’t hate ferries. Actually, we quite love ferries,” the authors say near the end of this collection of pieces that gives an almost fair but hardly balanced view of the ferry fiasco. “We even had a positive reaction to the idea when we first heard about the Superferry. But then, we learned the rest of the story.”

The story they tell is one of greed, manipulation, militarization, political ambition, absentee owners, a near riot and a cast of characters that includes Silicon Valley entrepreneurs, a former secretary of the Navy, a governor in bed with big business, as well as some local “heroes” who never stopped believing that Hawaii and its courts would ultimately do the right thing and make the ferry operations comply with all state laws, not just the one written especially for its benefit.

The book gives a lot of space to those little people who one way or another helped expose the ferry, and perhaps its ulterior motive of using Hawaii waters as a testing ground for a new type of military transport ship. It’s a little less fair to the thousands of people who genuinely wanted to see the ferry company succeed out of the belief that the Hawaii archipelago would be well served with a new kind of transportation. You’ll have to wade through a lot of stuff here to reach your own conclusions about who is really to blame.

Remember the movie “Who Killed the Electric Car?” which was making the rounds a few years ago? The film told the story of a highly successful electric car manufactured by General Motors, which suddenly and inexplicably pulled the product from the market. In the film, the directors leave the question of blame open-ended: big oil, the car companies, state bureaucrats, even consumers who did not buy enough of the cars end up sharing responsibility.

It’s a lot like that here. Sure, the Superferry company cut corners and is now paying a big price. Sure, the Legislature and the governor gave it their best (and, as it turns out, illegal) shot at salvaging the project. Sure, all of us who sat idly by and only prayed that it would all work out peacefully deserve some of the blame, too.

If there are any real heroes here, it’s the justices of the state Supreme Court. As they’ve done on a handful of memorable occasions before, the justices swiftly and quickly stood up for the law, and that means all of us, without any taint of the greed and politics that made this such an otherwise sordid tale.

This story’s probably over, but if it turns out that there’s a new chapter, or a new Superferry, somewhere in Hawaii’s future, we could all do worse than spending a little time with the book to figure out whose side we’re going to be on the next time we have to make a choice.
“The Superferry Chronicles: Hawaii’s Uprising Against Militarism, Commercialism and the Desecration of the Earth”

By Koohan Paik and Jerry Mander

(Koa Books)

320 pages, $20

Source: http://www.starbulletin.com/features/20090405_ferry_tale.html

Superferry sails away leaving Hawai'i with bruises and the tab

Today’s Honolulu Star Bulletin reported:   “The Alakai went home yesterday looking for work.”

Maybe it was a slip, but it was accurate.  The Superferry’s home is, and always has been somewhere else.  It was never a homegrown interisland transportation system to ship pineapples or allow grandma on Maui to visit her grandkids on O’ahu.   It was always about powerful outside interests using Hawai’i to further their business plans and spread the risk to tax payers.  That’s why the business plan for the Superferry never made sense, and why the company was so eager to pack up and ship out once it had gotten everything it needed from Hawai’i and a convenient out.   Where the Superferry ends up will reveal a lot about its real business plans.

Conspiracy ferry

Conspiracy ferry

Did we get taken for a ride by Hawai‘i Superferry?

Christopher Pala
Mar 25, 2009

Hawai‘i’s Superferry ended its choppy ride last week, leaving tantalizing clues, but no proof, that the whole venture was about more than providing “reliable commercial service in these islands,” as CEO Thomas B. Fargo insisted at his dawn press conference.

“You look at the players involved, you have to question their motives, there are some pretty significant defense contracts involved,” said Rep. Hermina Morita, who chairs the House Energy and Environmental Protection Committee.

The defense contracts come in two categories.

First, the construction of the two ferries by Austal USA helped the young company get a contract to build a military version of the fast cargo and troop-transport ship-with an option for nine others-for a total of $1.6 billion, according to defense analysts and Austal USA itself. It also played a role in getting a contract for a Littoral Combat Ship prototype, a separate project to build up to 50 fast, aluminum warships at more than twice the price for each. The question is: was that the real purpose of building the Superferry?

Second, there are the ferries themselves. Now that the Hawai‘i Supreme Court has freed them of any obligation to serve the Islands, which has proved to be a money-losing operation, are they going to fetch a better price elsewhere? If they do, was that the main point for building them and bringing them here?

Austal and INCAT are the two giants of the big, fast aluminum catamaran business that have been supplying the world market for decades from their shipyards in Australia. Unlike most countries, the United States can’t buy foreign vessels for internal or military use: the Jones Act specifies they must be built domestically. So to crack the American market, Austal and INCAT needed to set up shipyards in the United States. Austal USA set up shop in Mobile, Ala., in 2001 and INCAT partnered with Bollinger Shipyards, Inc. in South Lockport, La., both with their eye on a contract for a military version of the Superferry.

By the summer of 2004, when work started on the first Superferry, Austal USA had built eight ships, all smaller than the Superferry. “Bollinger/Incat [USA] was a credible threat,” Bill Pfister, VP for external relations at Austal USA, said in a telephone interview from Mobile. “Building the Superferry was very helpful in demonstrating that we can build these ships in the United States as well as Australia, it was a major part of our credibility, almost a prerequisite,” he said. “It allowed us to build up the work force and the facilities.” Once the first Superferry was finished, that work force moved to the Littoral Combat Ship prototype, he said. And last November, as work was ending on the second Superferry, the Huakai, Austal beat Bollinger/Incat USA for the contract for the military version of the Superferry, called the Joint High Speed Vessel-essentially a Superferry with a helipad in the back.

In an interview together last year, Tig Krekel, vice chairman and partner of J.F. Lehman & Company, an investment bank in New York, and John Garibaldi, a former Hawaiian and Aloha Airlines executive who was CEO of Hawai‘i Superferry when it launched service, described how Garibaldi, Tim Dick and Terry White started the project together, financing it out of their savings until early 2004, when they raised $3.3 million. In September 2004, Lehman & Company took over the company and its principal, John F. Lehman, signed a deal to provide $85 million for the first Superferry.

“The ship started being built in summer of ’04, basically on spec,” Garibaldi said. “It was done on verbal assurances from Lehman and me that we would not leave them with the ship.” By the fall of 2005, Krekel said, Lehman was chairman of the board and the Maritime Administration was ready to guarantee $140 million of the $185 million loan.

Garibaldi said the shipyard had started building the ship “on spec” because the project’s financial success was so obvious “it was a no-brainer.” Krekel added, “We expect service to grow to five ships, the market’s there.”

But Alan Lerchbacker, the founding CEO of Austal USA, painted a different picture in an interview in Honolulu with Pacific Business News published on January 19, 2007, the same week Hawai‘i Superferry took delivery of the Alakai.

“I just worry about getting enough business to cover costs because of the sheer size of it,” he was quoted as saying. “They may need 400 to 500 passengers to break even.” Indeed, Hawai‘i Superferry executives had said the financial break-even point lay at 50 percent capacity, or 143 cars and 433 passengers, which the Superferry rarely attained.

Lerchbacker said he had suggested a 220-foot vessel, but the company chose the 326-foot model-and then another one of 344 feet.

Still unclear is whether Austal started building the Alakea “on spec” because it was the perfect way to prove its mettle to the military procurement community or because it believed that whatever the Hawai‘i plan’s merit, the ship itself would be attractive to the military. Also opaque is J.F. Lehman & Co.’s financial interest in Austal’s success. Atlantic Marine, which the company purchased recently and has a shipyard that adjoins Austal’s in Mobile, works with steel ships and “has no connection to Austal,” said Tim Colton, a shipping analyst in Florida.

The second kind of military contract that may be involved has to do with what would happen if the Superferries fail in their mission to make money in Hawai‘i or are prevented from operating by the courts.

On Thursday, Superferry CEO Fargo said, “We’re going to have to go out and find other employment for Alakai.” He added, “There are other ferry operations that would like to expand their service. Certainly the military may very well want to lease this particular ship.”

In July, BYM Marine and Maritime News reported, “Austal was recently awarded a new contract to provide additional features and equipment on the second Hawaii Superferry to facilitate its use by the military. This follows on from the long-term charter, since 2001, of the Austal-built 308-foot vehicle-passenger catamaran WestPac Express by the III Marine Expeditionary Force based on Okinawa, Japan.”

Pfister, the Austal vice-president, sidestepped in an e-mail exchange the question of whether a contract had been signed with the military to lease the Huakai. He explained that modification in question is a ramp that allows the ship to discharge cargo pretty much anywhere. It’s not usually used in civilian service because it’s heavy and cuts the number of cars by about 20 to 25, he wrote.

Lori Abe, a spokeswoman for Hawai‘i Superferry, said the ramp was added for use in the Big Island and that BYM is wrong.

Loren Thompson of the Lexington Institute in Arlington, Va., said leasing the superferries to the military would be difficult to pull off. “Leasing military equipment is not popular in Congress,” he said. Another analyst, who asked to remain anonymous, added: “Tolerance for leasing rather than buying ran out. Another lease now could be a hard sell.”

But Colton, the analyst, said that if anyone can pull it off, it’s Lehman. The Navy secretary in the entire Reagan administration who famously advocated a 600-ship navy (from about 500) was a major adviser and fund-raiser for John McCain and was seen as his likely his chief of staff. “He’s much better positioned than anyone else to get these boats leased,” Colton said.

While we may never learn what interest Lehman had in helping Austal get the military contracts, the value of the two civilian superferries should soon become apparent.

If Lehman fails to lease them out and stops servicing the loan, the federal maritime administration, the loan’s guarantor, would have to take over the ships and likely sell them to the Navy. That could trigger headlines like “Feds Bail Out Another Well-Connected Fatcat.”

And there would be some irony in Obama’s Navy bailing out one of his most powerful opponents.

Source: http://honoluluweekly.com/feature/2009/03/conspiracy-ferry/

Damn the torpedoes! Full speed ahead.

This blog post about the Superferry debacle by Jan TenBruggencate aptly applies a popular military aphorism:

Tuesday, March 24, 2009

Source: http://raisingislands.blogspot.com/2009/03/admiral-farraguts-torpedoes-and-hawaii.html

Admiral Farragut’s torpedoes and the Hawai’i Superferry

There is a point at which a commander throws caution to the winds and orders, in the words of Admiral Farragut, “Damn the torpedoes. Full speed ahead.”

It worked for David Farragut in the Battle of Mobile Bay in 1864. He defeated the Confederate fleet-largely because most of the tethered mines, then called torpedoes, were duds. They bounced off the ships’ hulls and didn’t explode.

Damning the torpedoes is always risky. It doesn’t always work. Indeed, it seldom does. Take the Hawai’i Superferry (I know, you’re tired of the Superferry).

Early on, when there was still plenty of time to perform a proper environmental study without holding up the ferry at all, someone made that call.

To paraphrase the classic line from “The Treasure of Sierra Madre:” “We don’t have no EIS. We don’t need no EIS. I don’t have to show you any stinkin’ EIS.”

Never mind that the Councils of three of the four counties, representing 100 percent of the ferry’s destinations from Honolulu, asked for environmental studies.

Today’s it’s popular to blame the “environmentalists” for the Superferry’s failure. But County Councils are hardly hotbeds of environmental furor. They mostly get blamed for representing the interests of power, not the radical vegan community.

Someone, at some point, made the Farragut call, although we don’t know whether it was in Governor Linda Lingle’s office, Superferry president John Garibaldi’s office, a Superferry lawyer’s or state Attorney General’s office, a public relations consultant’s office or perhaps a state Department of Transportation office.

The call was wrong. The Hawai’i Supreme Court said so, although the court’s position in this is widely misunderstood. It required the Department of Transportation conduct an EIS-not that the Superferry prepare one.

In late August, 2007, a 15-year-old kid on a surfboard was among four dozen swimming and paddling protesters in Nawiliwili Harbor, preventing the Superferry’s entrance. When Coast Guard officers used boat hooks to try to snag him and arrest him, he insisted they arrest the ferry captain as the real lawbreaker.

Technically, the Kauai kid on the surboard was wrong. Arguably, he should have been protesting at the state Department of Transportation office-or at the office of the person who made the Farragut call, if anybody could figure out who that was.

And technically, the Superferry was right as it sailed into the minefield. But clearly, the Farragut call in this case was catastrophic.

For Farragut, the mines didn’t go off. For the Hawai’i Superferry, they did.

©2009 Jan TenBruggencate

Hawaii Court backs Protestors vs. Superferry

Hawaii Court Backs Protestors vs. Superferry

(But the Saga Continues)
By Jerry Mander & Koohan Paik

March 24, 2009

In the latest turn of events in Hawaii’s impressive grassroots uprising against a huge corporate-military boondoggle, the state’s Supreme Court has ruled unanimously (5-0) that the Hawaii Superferry has no legal authority to continue its operations in the state, at least for the time being. But, hold the cheery encomiums and ginger-blossom bouquets; there are downsides to this story that, so far, most media have neglected. First, the good news.

The ruling struck down as “unconstitutional” a law instigated by right-wing Republican Governor Linda Lingle called Act Two, which was intended to circumvent an earlier unanimous Hawaii Supreme Court ruling (August 2007). That prior decision asserted that the giant high-speed catamaran–which races at 40 miles per hour through humpback whale calving grounds, uses 12,000 gallons of gas on a round trip between islands and may have other extremely serious environmental effects–could not begin operations without first completing a full Environmental Impact Statement (EIS) under the Hawaii Environmental Policy Act (HEPA). The Superferry company, however, owned by the infamous New York militarist financier John F. Lehman, former Secretary of the Navy under Ronald Reagan, advocate of a 600-ship Navy to dominate the world’s oceans and member of the neocon Project for the New American Century, said it would not comply with the 2007 decision. Governor Lingle immediately backed Lehman via her (illegal) legislative foray, which exempted the Superferry from doing an EIS under HEPA and gave faux authority for the boat to keep operating. This was the biggest of many favors she did for Lehman and the company in a campaign many critics believe was designed as much for her own future in the Republican Party as for any concerns about Hawaii. Lehman was likely to be John McCain’s chief of staff, had he won (according to a New York Times report before the election), a position that might have put Lingle in good position for national office, which she apparently craves.

And yet, after last week’s court ruling, the Superferry company showed surprisingly little desire to fight, quickly announced it would suspend all Hawaii service within three days and did. This struck some observers as out of character for such an aggressive, self-important outfit, and raised new questions about the company’s and Lehman’s intentions: What’s up now? Could it be the company actually wanted to get out? Does this confirm that the Hawaii adventure was really only a demo for bigger military options, as many suggest? We will come back to that below.

Anyway, the good news set off celebrations on the islands of Kauai and Maui, which have led the protests against the Superferry. Eighteen months earlier, on the occasion of the boat’s maiden voyage, Kauai was the site of a landmark two-day uprising, where 1,500 protestors occupied the shoreline at Nawiliwili Harbor. They shouted their demands for an EIS, as dozens of surfers leaped into the water and paddled out dangerously close to the catamaran blades of the oncoming 350-foot colossus, stopping it cold in the water. It was a convincing display of determined resistance and daring from a laid-back community not usually known for political action. The boat never came back to Kauai.

Similar joy was displayed on Maui, which had suffered the only remaining Superferry run. After cancellation of service to Kauai, and then also to the Big Island, the Honolulu-Maui-Honolulu run, once daily, was the company’s last hurrah. Three Maui groups–the Sierra Club, Maui Tomorrow and Kahului Harbor Coalition–were plaintiffs in both lawsuits that brought the Supreme Court victories. Irene Bowie of Maui Tomorrow said, “It’s unfortunate all this had to take place; I wish the state and Superferry had taken the correct action in the beginning, and followed the law.”

But wait! The battle may not be over. As David Brower, the celebrated leader of the Sierra Club during its heyday in the 1960s, often said, “there are no environmental victories, only holding actions; they always come back.”

First there is the Cheneyesque Governor Lingle, who never admits mistakes, and never quits pushing. She said that ending Superferry service would be “devastating” to Hawaii–she may have meant devastating to herself–and arrogantly re-asserted that Act Two was entirely legal, whatever the unanimous court said.

Lingle revved up the conservative Honolulu broadcast media to blame environmentalists rather than herself for the loss of 236 Superferry jobs. But as one opponent responded, “If it’s illegal jobs the Governor wants, then growing marijuana would be more profitable, better for the environment and doesn’t need absentee owners.”

Lingle announced that her Attorney General will ask the Court to “reconsider” its verdict, and that her Department of Transportation would do the EIS under HEPA that the company refused to do in 2007, hoping to someday lure it back. Lingle is also trying to again persuade the Democratic legislature to save the Superferry via some tricky legal interventions. Opposition leader, State Senate Majority Leader Gary Hooser, would have none of it, blaming the whole situation on Lingle for exempting the Superferry from an EIS in the first place. Senator J. Kalani English agreed: “It goes back to the beginning. We [opposition senators] told the Superferry, ‘simply follow the EIS law.’ If they had done that, none of this would have happened.”

Then there’s the Superferry company itself and its absentee owner, John F. Lehman. Most people assumed the court decision would also be “devastating” to the company. But now the sense is growing that it is secretly delighted, for two compelling reasons.

First, the operation has been a commercial flop and the company and its investors are losing money fast in hard times. According to the Honolulu Advertiser, during the past three months the Superferry has operated at below 25 percent of capacity for people, cars and trucks. And according to a citizens’ watchdog commission set up by Act Two, the Oversight Task Force, overall performance figures since the project’s inception are little better. The company itself always suggested 50 percent of capacity as its break-even point (at rates that included a gasoline surcharge), a mark it has only hit sporadically. It just looks like most people are not that into a three-hour boat ride through famously rough waters; the Superferry barely dented the far more popular, and far more fuel-efficient, airplane ridership. It would probably be less headache for Lehman to sell the two boats–each built for about $90 million (and one of which, because of all the cancelled routes, has never begun operating)–and transform a losing enterprise into, maybe, $200 million cash while also eliminating operating costs. Or to lease the boats at a profit to the military, or Singapore, or someplace without activist surfers. The Supreme Court served up the perfect escape route. (A strong rumor has the boats headed for a Guam-Saipan-Tinian career that, alas, would not avoid protestors. There are a lot of anti-military activists on Guam.)

Secondly, there’s the military angle. As we reported on March 16 in The Nation and in our book, The Superferry Chronicles, during the last several years it became apparent that the Hawaii Superferry may have had more to do with military intentions than with its advertised role as friendly local transport for people and avocados between islands. The evidence is circumstantial but strong: Lehman’s military advocacies, a board of directors that’s like a shadow Pentagon and a CEO, Admiral Tom Fargo, who was commander of all US military operations in the Pacific under George W. Bush. What do all those military celebrities have to do with a neighborly ferry service? And why was the boat itself built completely out of scale for Hawaii–way too big, powerful and gas-guzzling, as the numbers are proving–but perfect for trans-Pacific purposes.

The company routinely denies this. At his shut-it-down press conference last Thursday, March 19, Admiral Fargo scoffed at the notion. “Not true,” he said. “We certainly would not have gone to the trouble to paint the Alakai [Superferry] in the manner we did, to appoint her with first-class seats…if that [military use] was our goal.” And yet, there have been innumerable contradictory published statements by other company executives (including Lehman) over the past eight years, that the Superferry might well be used for such military purposes as carrying Stryker tanks among the islands, among other uses. Why deny it? What can of worms does it open?

Most intriguing, for example, is the fact that in November 2008, the manufacturer and designer of the Superferry, Austal US, of Mobile, Alabama, a division of an Australian company, was awarded a huge US Navy contract to build ten new high-speed, light, high-capacity, aluminum-hulled, shallow water catamarans–which except for military accouterments (and that paint job!) are nearly identical to the Superferry design–for the Navy’s Joint High Speed Vessel program. This is one of two Navy programs that contemplate some fifty-five aluminum-hulled boats in the Pacific in preparation for possible challenges from China. This first ten-boat contract with Austal is worth $1.6 billion.

According to the New York Times, Bill Pfister, vice president for external affairs of Austal, credited the Superferry project with helping Austal develop a credible US workforce and construction process. “Building the Superferry was very helpful in demonstrating we can build these ships in the United States” he said. Now they get to build ten more.

Even more important was getting the Superferry into the water in Hawaii and keeping it there to demonstrate its seaworthiness, making it a perfect demo model, a working prototype for the Austal-US contract. So was this a central goal of the Superferry project all along, to help Austal get the contract? Is this why it was so important to avoid an Environmental Impact study, which might have delayed the boat’s deployment? Did Linda Lingle know this? And with the contract established, is this why the company can so willingly leave Hawaii? A lot of people believe that.

Whether, or how, John F. Lehman or any of his corporations, including the Superferry, actually achieves any financial benefit from Austal’s bonanza, remains unknown. Two years ago, however, Lehman bought a shipbuilding company called Atlantic Marine, adjacent to Austal in Mobile, Alabama. So far, however, we have found no reports of further agreements between the two companies for collaborative work on the Navy contract.

So here’s the wrap-up: Assuming Lingle can’t overcome the court, the people of Hawaii are free of the Superferry, possibly forever, and have time to contemplate what kind of alternative ferry service might be desirable–smaller scale, slower, environmentally friendly, locally owned or better yet, publicly owned. And, a new diverse activist resistance coalition has been born. As for Governor Lingle, she has been embarrassed and exposed for her many disgraceful actions, and politically she may now be toast.

And John Lehman? Well, it appears his business acumen is confirmed. He will probably come out of his Hawaii adventure escaping financial harm, and maybe with considerable gain, depending on the sales and/or rental agreements he makes for his giant boats, increasingly admired by potential military clients. And if he does somehow get involved in the Austal production bonanza he helped support, that will bring him personally closer to fulfilling his grandest dreams of expanded US domination of Pacific waters.
About Jerry Mander
Jerry Mander is director of the International Forum on Globalization and co-author, with Koohan Paik, of The Superferry Chronicles: Hawaii’s Uprising Against Militarism, Commercialism and the Desecration of the Earth (Koa).

About Koohan Paik
Koohan Paik is an Hawaii filmmaker and co-author, with Jerry Mander, of The Superferry Chronicles: Hawaii’s Uprising Against Militarism, Commercialism and the Desecration of the Earth (Koa).

Source: http://www.thenation.com/doc/20090406/mander_paik/print?rel=nofollow

Coup de Superferry

The authors of the Superferry Chronicles wrote this excellent analysis for the Hawaii Independent on the demise of the Hawai’i Superferry.  Their conclusion:  in the end, the Superferry won.  If we assume that the Superferry was meant to primarily be a proof of concept, then it accomplished its purpose.   Their venture was underwritten by Hawai’i residents to the tune of $40 million in harbor upgrades and by U.S. tax payers to the tune of a $140 million loan guarantee.

===

http://www.thehawaiiindependent.com/opinion/2009/03/20/coup-de-superferry/

Coup de Superferry

Posted March 20th, 2009 in Opinion by Koohan Paik and Jerry Mander

When the Superferry set sail on its last roundtrip voyage across the channel between Honolulu and Maui, Oahu grieved. CEO Tom Fargo gave his swan-song statement as the ship pulled out of the harbor, announcing soberly that the company would seek contracts for its two boats elsewhere. Tearful passengers lamented the end of this “alternative mode of transportation” that enabled FedEx and Love’s Bakery to ply their wares on Maui. At Kahului Harbor, on Maui, a tugboat tributed the final run by spraying seawater skyward. The evening newscasts were filled with images of many of the 236 employees who had been laid off, victims of a seemingly unfair (and unanimous) state Supreme Court ruling. “It’s like a death,” uttered port utility operator Corrine Dutro-Ponce.

Superferry is the supposed “victim” in the latest ruling that determined that “Act 2,” the bill that Lingle and the Legislature rushed into law, was unconstitutional, on the grounds that it was custom-tailored for one company: Hawaii Superferry. It cannot continue to operate, unless it first conducts an Environmental Impact Statement (EIS).

Economically speaking, this ruling gives the company a golden opportunity to cut their losses and bow out gracefully. Though Fargo and the media have been repeating like a mantra the phrase “over 250,000 customers” (as if this cumulative passenger count somehow justified the company’s existence), nonetheless, it has been operating at a loss since it arrived on our shores. According to figures presented in a March 18, 2009 Honolulu Advertiser story, for the three months of November through January, the company never attracted more than 25% capacity, far below the ridership necessary to break even. Figures revealed monthly at the Oversight Task Force meetings showed similar public disinterest in ridership.

In addition to staunching the fiscal hemmorhaging, the ruling enables the company to recoup more money through legal actions should they choose, now that Act 2 has been struck down. Act 2 had included a provision prohibiting the company from suing the state. Not only that, shutting down operations frees up the two vessels, which cost $180 million, to be leased or sold.

This, along with the cushy federal loan guarantee for $140 million issued by the U.S. Maritime Administration, leaves the departing company in much better financial shape than if they were to continue in Hawaii, running at a loss.

But the biggest coup of all for the Superferry corporation is that it got what it needed out of the deal: to prove the boat’s seaworthiness as a demo model in competition to build the Navy’s Joint High-Speed Vessel (JHSV). Austal USA, an investor in Superferry as well as its builder, won the contract worth $1.6 billion last September to build ten JHSVs.

That’s why conducting an EIS has been anathema to Superferry from the very start. Doing so would have kept the boat out of the water, and unable to prove itself against Austal USA’s competitors for the lucrative Navy contract.

That’s also very likely why Hawaii Superferry ignored Alan Lerchbacker, former CEO of Austal USA when he suggested to the company that it build a vessel smaller than 340 feet, concerned that the company would never break even on fuel costs. Lerchbacker was Austal USA’s outgoing CEO when he advised Hawaii Superferry in mid-2003, several months before the boatbuilder and Superferry sealed the deal in 2004 to build two 340-foot catamarans. A smaller vessel, as recommended by Lerchbacker, would not have been considered in the running for the JHSV contract. Cost-effectiveness as a civilian ferry ship did not seem to factor into the final decision. Building the largest high-speed aluminum-hulled catamaran in the United States seemed to be paramount, and certainly a premium in a competition for a Navy contract.

As it now stands from Superferry’s point of view, its job in Hawaii is pau already.

While the big winner in this fiasco is Hawaii Superferry, the losers are clearly the 236 workers who have lost their jobs during these rough economic times. If the company ever really cared about them, they would have done things right from the start, complied with state environmental law, conducted a proper EIS, and encouraged community participation in shaping what could have been a great public service.

Koohan Paik and Jerry Mander are the authors of The Superferry Chronicles: Hawaii’s Uprising Against Militarism, Commercialism, and the Desecration of the Earth.

New York Times article on the Superferry

As the Hawaii Superferry sails off into the sunset for good, it seems that the military connections to the Superferry that activists railed against are finally coming to fruition, and getting the attention it deserves by major news outlets such as this article in the New York Times.

Thomas Fargo, HSF CEO and former Commander in Chief Pacific Command said in his Superferry swan song: “Certainly the military may very well want to lease this particular ship.”

Yet he says with a straight face a few minutes later: “We always get the question, ‘Was this designed as a military operation?’ ” he said. “That’s absolutely not true.”

Maybe he didn’t consult with his predecessors who told the Pacific Business News in 2004 that the Superferry business model consisted of three elements, one of which was to:

Seek defense business, hauling vehicles between islands at night for military exercises. The ferries are being built with specially reinforced vehicle decks especially for this, though the reinforcement also means that big rigs can be driven onto the ferries and it won’t matter in which lane they park.

A couple of pieces of the puzzle still don’t fit though.   What was the product of Sen. Inouye’s early (1997)  earmarks for a high speed ferry system and how does it relate to the HSF?  What was the source of funding for the $140 million MARAD loan guarantee to the HSF?  The fund for loan guarantees was not supported by the Bush Administration. Instead, Congress would appropriate funds for this purpose.   Did Lehman have any direct interest in the Joint High Speed Vessel contract that was awarded to Austal, thanks to the Superferry helping to jump start Austal USA?

March 22, 2009

A Hawaii Ferry Ends Its Choppy Ride

By CHRISTOPHER PALA

HONOLULU – The Hawaii Superferry made its final interisland voyage last week, capping a period marked by lawsuits, low ridership and suspicion that its ultimate purpose had more to do with military contracts than with connecting the Hawaiian islands.

On Monday, the State Supreme Court effectively grounded the vessel, the Alakai, when it struck down an act passed by the Legislature last year that exempted its operator, Hawaii Superferry Inc., from carrying out an environmental impact study. The company said it would not appeal the decision.

“We’re going to have to go out and find other employment for Alakai,” said the president of Hawaii Superferry, Thomas B. Fargo, a retired Navy admiral who once commanded American forces in the Pacific. “Certainly the military may very well want to lease this particular ship.”

The Marine Corps already leases a similar transport catamaran, the Westpac Express, in Okinawa, Japan.

A shipbuilding analyst in Florida, Tim Colton, said the company’s owner and chairman, John F. Lehman, a former Navy secretary, was well positioned to lease the Alakai and a just-finished sister ship to the Navy.

In its 19 months of sporadic operations, the Alakai – an $85 million, 350-foot aluminum catamaran that sliced through some of the world’s roughest seas at 40 miles per hour – is widely thought to have lost money for Hawaii Superferry. The passenger-vehicle ferry usually operated well below the 50 percent capacity that the company had designated as its break-even point. For much of the winter, it operated at about 25 percent capacity, according to figures released by the company.

Responding to a lawsuit filed by environmentalists, the State Supreme Court initially struck down a permit that the administration of Gov. Linda Lingle, a Republican, had granted Hawaii Superferry to operate its boats without an environmental assessment. After that ruling, Ms. Lingle persuaded the Legislature to pass the act exempting the company from the requirement.

Why the company chose to risk operating without an environmental review, which would have taken the better part of a year, has been the matter of debate across the state, with Mr. Lehman’s background leading to speculation that Hawaii Superferry was primarily hoping to prove itself to the United States military.

Nearly two years ago, a former chief executive officer of Austal USA, an Alabama shipyard that built the Alakai, was quoted in a local weekly, Pacific Business News, as saying the ship was too big for its market of 1.3 million people.

“I just worry about getting enough business to cover costs because of the sheer size of it,” said the executive, Alan Lerchbacker.

Mr. Lerchbacker said that he had suggested Hawaii Superferry order a 230-foot vessel but that the company instead ordered two 350-foot models. The Alakai traveled between Oahu and Maui; the second ferry, the Huakai, was completed last week and had been scheduled to link Oahu and the Big Island.

State Representative Hermina M. Morita, a Democrat and chairwoman of the Committee on Energy and Environmental Protection, said she never thought either ferry would be profitable.

“You look at the players involved,” Ms. Morita said. “You have to question their motives.”

In November, Austal USA was awarded a contract to build up to 10 military versions of the ferry.

Austal’s Australian unit had built scores of giant aluminum catamarans used as fast ferries around the world, but the United States requires that all ships sold to its armed forces must be domestically built.

Austal USA, with a shipyard in Mobile, Ala., was created in 2001. “They have managed to become a major player in a very short time,” said Robert Button, a naval analyst with the RAND Corporation.

Austal USA’s vice president for external affairs, Bill Pfister, said that while the company had built several smaller ships in Mobile, the construction of the two Hawaii ferries had helped it develop the work force and demonstrate the construction processes to bid credibly for a similar military version.

The contract calls for one ship for the Army, with an option for four more for the Army and five for the Navy, for a total of $1.6 billion.

“Building the Superferry was very helpful in demonstrating that we can build these ships in the United States as well as Australia,” Mr. Pfister said.

At a news conference on Thursday, Admiral Fargo denied that Hawaii Superferry had any military agenda.

“We always get the question, ‘Was this designed as a military operation?’ ” he said. “That’s absolutely not true.

“We certainly wouldn’t have gone to the trouble to appoint her with 836 first-class seats, to spend huge sums of money to establish service here in Hawaii if that was our goal, which was unmistakably to provide a regular, reliable commercial ferry service in these islands.”

Source: http://www.nytimes.com/2009/03/22/us/22ferry.html?_r=2&scp=1&sq=superferry%20and%20christopher%20pala&st=cse

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