Hawaii Superferry Kauai Briefing - March 13, 2007

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    Federal regulations in Hawaii prohibit approaching a humpback whale closerthan 100 yards. Our whale avoidance policy requires a course change and/orspeed to maintain a minimum of 500 meters, whenever possible, between thevessel and any whale. When traveling in whale dense areas, our vessel will travelat speeds similar to other vessels and will slow its speed as needed to avoid

    whales. Our schedule has taken whale avoidance procedures intoconsideration.

    How many whales do you foresee killing or harming?

    Hawaii Superferrys policy is focused on whale avoidance and a commitment topreventing such incidents.

    What will the speed of the ferry be during whale season? And at that speed

    what will the maneuverability of the vessel be its ability to stop and turn the

    reaction time?

    Our whale avoidance policy requires the captain to change course and/orspeed to maintain a minimum of 500 meters between the vessel and any whalewhenever possible. Our vessels are highly maneuverable with the ability to turn,slow, and stop quickly to avoid marine mammals. Crewmembers are trained toactively seek and identify whales along track line ahead of vessel.

    How do you plan to see whales when the ferry travels at night?

    Our whale avoidance policy includes two crew members on the bridge duringwhale season to assist the Captain and officer in spotting whales.

    Just one of our four scheduled routes with our first vessel will be operating at

    night. On all of our routes, including the one route that will be operating at night,the extra crewmembers dedicated to spotting whales will be equipped withmotion-stabilizing and state-of-the-art night vision goggles. In addition, a largenight vision scope is built into the bridge for the captain. Special radar anddigital imaging technologies help our crew avoid whales with as much precisionas any craft on the water.

    How do you expect to adequately inspect all the vehicles in a one-hour turn-

    around period and how many personnel do you have for this assignment?

    Gates will open at least two hours prior to departure to begin check-in and

    screening of vehicles and passengers. Gates will close half an hour prior todeparture. This allows nearly two hours for the screening of passengers andvehicles. Passenger and vehicle screening procedures will be conducted byHawaii Superferry staff following security procedures approved by the U.S. CoastGuard (Department of Homeland Security). As passenger and vehicle loadsvary, so will Hawaii Superferrys port staff to ensure proper screening andappropriate customer service.

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    What percentage of vehicles will have their interiors inspected? When will

    vehicle screening procedures be released for public comment/viewing?

    Passenger security is a priority for Hawaii Superferry and is one of the foundationsfor operational procedures from pre-boarding to disembarking. Passengers willbe advised of basic procedures upon reservation. There are vehicle screening

    procedures for all vehicles and passengers boarding the ferry. Theseprocedures have been approved by the U.S. Coast Guard (Department ofHomeland Security). All vehicles, including trunks, and passengers will be visuallyscreened and are subject to random comprehensive inspection includingpassengers, baggage, trunks and compartments. In addition, Hawaii Superferrywill cooperate fully with local law enforcement efforts.

    Advertised literature states the Superferry will carry an average of 110 vehicles

    and 400 passengers. The Superferry is built to carry around 280 vehicles and 800

    passengers, which is double the average stated? Why such a large

    discrepancy?The maximum vessel holding capacity is 866 passengers and 282 sub compactcars. We anticipate carrying an average of 400 passengers and 110 vehicles ofmixed sizes (cars and trucks). Each voyage will vary according to the day ofweek, season, holidays, etc. The projected loads are based on benchmarkingother ferry operations and on our own surveys.

    What/how much will the Superferry do to minimize the demands on Kauais

    police, county life guards, parks personnel, etc.? Will they contribute funds to

    offset the increase in visitors?

    Hawaii Superferry is committed to working in partnership with each County

    where we do business to ensure that the ferry is a strong addition to the localcommunity. One way Hawaii Superferry will contribute to Hawaii is through feespaid to various funds. During the first four years Hawaii Superferry will pay about$16 million in General Excise Tax and an additional $16 million into the DOT-Harbors Special Harbor Fund. Airline travel with multiple daily flights the primarytransportation option for visitors. As an alternative method of inter-island traveland one daily voyage, we do not anticipate a significant increase in visitortravel.

    Superferry burns 6,000 gallons of fuel one way from Honolulu to Kauai. A plane

    only burns 500 gallons. How then can the Superferry claim to be soenvironmentally friendly?

    Based on carrying a maximum payload for Hawaii Superferry versus a maximumpayload for a jet airliner, Hawaii Superferrys fuel consumption would be lessthan 50% of the jet aircraft. Additionally, Hawaii Superferry incorporates some ofthe cleanest and most efficient marine technology today with environmentallyconscious features such as non-toxic bottom paint and Low-E glass. These are

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    some of the steps we are taking to be environmentally friendly and help protectour unique environment here in Hawaii.

    What is the energy adjustment (at todays prices) to the passenger fares?

    Fuel costs affect all transportation companies and Hawaii Superferry has a fuel

    surcharge. The surcharge adjusts with the price of fuel and is calculated on amonthly basis. As of February, 2007 the fuel surcharge was about 20%. Pleasesee our complete tariff and fuel surcharge calculations on our website.

    What type of building/accommodations, including bathroom facilities, will there

    be for passengers?

    There will be a tension fabric structure where passengers can check in and forpickup and drop off. There will also be sheltered areas in which to conductinspections and wheel chair accessible bathroom facilities installed at each portfor passengers waiting to board. As soon as passengers and vehicles disembark,

    oncoming passengers will board the vessel which has excellent facilities andamenities on board.

    What improvements/changes are planned for Nwiliwili and when will they be

    complete?

    Nwiliwili improvements will primarily consist of a moveable vehicle rampinstalled at Pier 1 for the vehicles to enter/exit the ferry, striping to configurationlanes for vehicle queuing, and a passenger waiting area and restroom facilities.These improvements began in May and will continue this summer.

    Will there be any proof of ownership required for household items, stereos, TVs,

    surfboards, etc.As with any transportation company, there are no laws requiring proof ofownership for the transport of household items within the state of Hawaii.

    How will you screen individual luggage, including boxes and other containers?

    Will each item be opens and gone through before boarding?

    There are screening procedures for all vehicles and passengers boarding theferry. These procedures have been developed and approved by the U.S. CoastGuard (Department of Homeland Security) and will be executed by HawaiiSuperferry staff. All vehicles will be screened and must have trunks and

    compartments open and ready for inspection at any time. Vehicles andluggage will be randomly selected for more extensive inspection. In addition,Hawaii Superferry will be cooperating with local law enforcement efforts.

    Are there plans to alter Superferry inspection procedures if invasive species are

    found to have been introduced by the Superferry?

    Similar to other transportation companies, Hawaii Superferry complies with allpolicies and procedures established by the Hawaii State Department of

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    Agriculture (HDOA). We are working closely with HDOA as well as InvasiveSpecies experts to inform passengers and implement procedures to helpprevent the transport of invasive species. We will continue to seek the advise ofHDOA and invasive species experts after start of service and participate withHDOA on risk assessments.

    Where are the HDOA facilities located on Kauai? Will HDOA have agriculture

    inspectors at Nwiliwili or will Superferry personnel do the inspections? Has

    HDOA been able to hire the additional inspectors required for the Superferry?

    Agricultural screenings will be conducted by Hawaii Superferry staff who aretrained by HDOA. For those passengers carrying plant and propagated plantparts an HDOA certificate of inspection is required, which can be obtained inadvance in advance of the journey. The locations of HDOA inspection facilitieswill be provided on our web site and when making a reservation.

    Will alcohol be served on the Superferry?As a service to our customers, wine and beer will be sold to passengers 21 yearsof age and older. Similar to all establishments licensed to serve alcohol -including cruise lines, airlines and dinner cruise operations, state law as well asour own established policies will guide our alcoholic beverage sale and service.

    Will there be anti-drug K-9 units to inspect each car pre-loading? What other

    anti-drug precautions are in the plans.

    Being a good citizen is important to Hawaii Superferry. We will cooperate fullywith local, state and federal law enforcement officials when it comes to anti-drug programs. The implementation of specific programs is subject to the

    discretion of law enforcement.

    Who will pay the extra law enforcement expenses?

    Hawaii Superferry will become a contributing member of the businesscommunity and will pay taxes like any other business operating in the state. Inthe first four years, it Hawaii Superferry will contribute $16 million to the HarborSpecial Fund and an additional $16 million in General Excise Tax.

    Who is pushing this and why? Who is benefiting and getting money from this?

    Consumer demand for affordable alternatives for family and business travel

    between the islands is the foundation of the Hawaii Superferry business plan. Thisis a service that will benefit our state for years to come, a vision which has beenshared and supported by thousands of residents and businesses statewide.Hawaii is a privately funded company.

    How will the island control how many stay on the island that come off the

    Superferry? What happens if they all decide to stay?

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    As with all transportation companies, it is the passengers who decide how andwhen they travel. Hawaii Superferry provides travel opportunities to and fromKauai. Our primary market is local residents and businesses.

    How much DOT money has been received by Superferry? How much in harbor

    fees have been paid by Superferry to DOT?Hawaii Superferry has received no funds from the state or DOT. As approved bythe legislature, the Hawaii Department of Transportation has funded $40 millionfor harbor improvements (barges and ramps) which make it possible for apassenger-vehicle ferry to operate. These improvements are funded by theHarbor Special Fund which collects fees from all harbor users and is used forharbor improvements. All harbor improvements for Matson, Young Brothers,Hawaii Superferry, and other harbor users are owned by the State of Hawaii.

    When in operation, Hawaii Superferry will be a significant source of revenue for

    the state. During the first four years alone, Hawaii Superferry will pay $16 millioninto the Harbor Special Fund and an additional $16 million in General Excise Tax.

    Was the Superferry included or identified in the latest Nwiliwili Harbor Master

    Plan? Is the Nwiliwili Harbor Master Plan being developed?

    The latest Nwiliwili Harbor Master plan was done prior to the Hawaii Superferrybeing introduced. The Department of Transportation is currently in the process ofupdating harbor master plans statewide, and would determine the timing forthe next Nwiliwili harbor master plan update.

    What funds or taxes are you providing or paying to the State and/or County for

    the increased use of public facilities (roads, enforcement, parks, camp grounds,etc.)

    Over the first four years of service, Hawaii Superferry will pay $16 million into theHarbor Special Fund (used for harbor improvements only) and an additional $16million in General Excise Tax.

    If the Superferry proves to not be economically viable, what happens to the

    vessels and are the Superferry investors subject to financial loss?

    Hawaii Superferry has undergone rigorous evaluations of its business plan by theU. S. Maritime Administration (MARAD) and J.F. Lehman and Associations.

    Hawaii Superferry is a privately funded company and as such accepts thefinancial risk of doing business. MARAD would have control of the vessels shouldthe unexpected occur. All harbor improvements are owned by the states DOTHarbors Division.

    Why must Kauai be part of the 2007 agenda? Why not wait until 2009, if at all.

    What is the hurry to launch the Superferry on Kauai? Why not wait and see how it

    goes between Maui and Oahu, then decide, based on experience?

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    Hawaii Superferrys interisland transportation model is based on statewideservice, with ferries connecting Oahu, Maui, Kauai and the Island of Hawaii(those four islands having harbors that can accommodate our vessels). Thetiming on which islands to service first was made in conjunction with the DOTHarbors. Thousands of Kauai residents are anxiously awaiting the opportunity

    to have a choice for inter-island travel and commerce.

    Give me ten good reasons to have the Superferry here on Kauai.

    1) Hawaii Superferry offers the people of Hawaii, including Kauai residents, awhole new way to travel to other islands.2) Hawaii Superferry enables car owners to drive aboard with baggageconveniently stowed in the trunk. Upon arrival, they simply drive off the ship,without having to touch baggage or hustle for ground transportation.3) Rates are economically priced with one-way passenger fares ranging from$15 for children under two to $62 for an adult full-fare.

    4) For just $59 to $69, depending upon day of sailing, travelers may bring theirstandard sized car packed with all the gear necessary for an island stay.5) Farmers on the islands of Kauai and Maui, in particular, can transport theirperishable items and bring them to new, expanded markets in the same day.6) Hawaii Superferry is mindful of Hawaiis environment.7) During the three-hour crossings, passengers are free to roam and relaxamongst comfortable reclining chairs, family inspired conversation nooks withinviting sofas, caf-style seating in welcoming dining areas, and select seatingon the open-air aft deck.8) Other novel amenities include movies and television, a childrens play area, agame arcade, and a gift shop.

    9) Passage aboard Hawaii Superferry will be a truly distinctive and pleasurableexperience that will offer new perspectives of Hawaiis magnificent coastlines,land seascapes.10) Hawaii Superferry vessels are of the highest caliber in terms of comfort,service and safety. The vessel was carefully designed for Hawaiis weather andocean patterns with added sensitivity to the islands unique natural resources.

    The majority of Kauai residents do not want the Superferry here. How can we

    avoid it coming here?

    Our information shows that a majority of Kauai residents welcome this newmode of interisland transportation and are looking forward to having a choicefor travel. The latest such study - a statewide public opinion survey conducted inMarch 2007 by Honolulu company, QMark Research & Polling, found that mostof the states adult population knows about Hawaii Superferry and a largemajority have a favorable view of the new interisland travel alternative and arelooking forward to the start of service.

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    Why arent the interests of Kauai being considered?

    Hawaii Superferry has conducted numerous meetings and briefings on Kauai tokeep the community updated on our plans and to listen to communityconcerns. We participated with the DOT-Harbors Division and HawaiiDepartment of Agriculture in 22 public informational briefings statewide. Five

    were conducted on Kauai. Numerous other meetings and presentations havebeen held around the island to inform and listen to community concerns. Eachof the key themes raised security, environment, whale avoidance, invasivespecies, and traffic has been carefully considered and practical solutionsworked into the operational plan.

    How can we believe whats being said if you keep avoiding the EIS?

    Hawaii Superferry has addressed environmental and community concerns byimplementing procedures in its operation, many of which go beyond what isrequired by state regulations. Please see our document Commitments and

    Actions to Address Environmental Concerns on our website.

    The U.S. Department of Transportations Maritime Administration determined,through a categorical exclusion, that an environmental review was not neededfor a federal loan guarantee. The States Office of Environmental Quality Controlfound that an Environmental Assessment (EA) was not required. Thesedeterminations were confirmed by the Courts. No ferry operation under theMaritime Administration has been required to obtain an EA. Other carries suchas Matson, Horizon, PASHA, Young Brothers and the Cruise ships are not requiredto provide an EA either. It would not be fair practice to require an EA of onecompany after the fact.

    Can you accept as a condition not to bring any more vehicles to the island than

    the number going off?

    It is anticipated that approximately the same number of vehicles will travel toOahu from Kauai as travel to Kauai from Oahu. Actual numbers will vary witheach voyage. This is based on established travel studies that show neighborisland residents frequently travel to Honolulu for use of services and resourcesthat are not available on island. There should be no significant change in thenumber of vehicles on Kauai.

    How did you calculate the expected vehicle loads?Our projections came from market research on Hawaiis interisland travel marketand benchmarked with other markets in the U.S. and around the world.

    Has DOT taken into consideration traffic issues on Kauai?

    Independent traffic studies were conducted as part of the operational plan forthe Hawaii Superferry submitted to the DOT. These are published and can befound in the environmental commitments section of our website. As a result of

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    these studies, the busiest traffic times were avoided and the vessel arrivalschedule was adjusted accordingly. Additionally, the pier area which HawaiiSuperferry will use is large enough to accommodate all vehicles which can fit onthe ferry.

    Will the Superferry consider applying for the voluntary incidental take permit toshow good faith?

    Hawaii Superferrys Whale Avoidance Policy represents the best policy and useof technology available today and has been carefully reviewed by theHawaiian Islands Humpback Whale National Marine Sanctuary AdvisoryCommittee. HSF will continue to explore additional means to help avoid whales.

    What are the specific illegal drug inspection procedures?

    All vehicles and passengers are visually screened upon pre-boarding and all aresubject to a random comprehensive inspection, during which vehicle

    compartments, baggage, and passengers will be inspected. Hawaii Superferrywill cooperate fully with federal, state and local law enforcement efforts.

    If the operation is viable, why is government money needed?

    Hawaii Superferry is a privately funded company and has not received publicfunds to operate. MARAD issued a loan guarantee for the building of the vessels,which is a common practice in the United States for the building of a vessel ofthis size. The states DOT-Harbors Division used its Special Harbor Fund (not publictax monies) to improve our islands harbors with barges and ramps to integratea passenger/vehicle ferry service into the transportation network. The funding ofharbor improvements for Hawaii Superferry is similar to improvements for all other

    harbors users such as Matson, Young Brothers, and Pasha.