Ferries In Default Rust On Taxpayer Dime
Hawai`iʻs two former Superferries sit at a dock in Norfolk, Virginia, waiting for someone to take them off the government’s hands.
The US Maritime Administration has taken bids for them in an attempt to recover some of the $138 million in taxpayer money paid to cover defaults on loans it guaranteed for the owners, Hawai`i Superferry Inc.
The company sought bankruptcy protection and defaulted in 2009.
Hawai`i Superferry, chaired by former Navy Secretary John Lehman, spent up to $20,000 a year lobbying Congress, the maritime agency, the Environmental Protection Agency and other agencies on Title XI and “vessel financing issues” between 2004 and 2006, according to federal lobbying disclosures.
The loan guarantees helped the firm finance the ferry purchases from shipbuilder Austal USA, based in Mobile, Alabama.
The Superferry’s default occurred because a Hawaii court ruled the state shouldn’t have let the company skip an environmental impact study, said William Schubert, maritime administrator from December 2001 to February 2005.
