2 Superferries May Go to Navy

The Virginian-Pilot     Monday, November 21, 2011

Navy hopes to gain two Hawaiian superferries

By Robert McCabe
http://hamptonroads.com/2011/11/navy-hopes-gain-two-hawaiian-superferries

NORFOLK

The Navy wants the two Hawaiian superferries docked at Lamberts Point in Norfolk.

The Navy “is working with the U.S. Maritime Administration to permit the transfer of the two high-speed vessels, formerly Hawaii superferries, into the naval service of the United States,” Lt. Cmdr. Alana Garas, a Navy spokeswoman, said Friday.

One of the ferries, the Huakai, was used in the military’s relief efforts after the Haiti earthquake in January 2010. The Navy first expressed interest in the ferries after the Maritime Administration took possession of them in 2009.

The Maritime Administration said Friday that a deal had yet to be reached.

“We continue to work with interested parties, including the U.S. Navy, in evaluating all options, with a goal of maximizing the government’s return from these vessels,” Kim Riddle, an administration spokeswoman, said in an email. “We anticipate announcing a winning bidder soon.”

The Maritime Administration took the ferries, the Alakai and the Huakai, in July 2009 after a bankruptcy judge ruled that the owner – Hawaii Superferry Inc. – could abandon them to lenders, who at the time were owed nearly $159 million.

The administration, which guaranteed the loans, moved them to Norfolk.

The administration eventually bought the vessels for $25 million each through a credit bid at an auction on Sept. 30, 2010, on the steps of U.S. District Court in Norfolk.

The administration was allowed to bid using the original $150 million guarantee that the federal government already had spent on the boats, according to Riddle.

Built to move cars and people among the Hawaiian Islands, the ferries can cruise at 35 knots. Between 320 and 340 feet long, they can carry 836 passengers and 282 cars.

In June, the Maritime Administration put the two vessels up for sale on an “as is, where is” basis and eventually received four bids.

In September, the administration said it was “working expeditiously with bidders and other interested parties in evaluating its options, with a goal of maximizing the government’s return from these vessels.”

Garas declined to comment on whether the Navy was among the bidders or whether the Navy was purchasing the vessels or simply taking possession of them.

Robert McCabe, (757) 446-2327, robert.mccabe@pilotonline.com