Hawaii Superferry Maui Briefing - March 6, 2007

Hawaii Superferry Informational Briefing Maui March 6, 2007

1) How will HSF accurately and effectively detect whales, whether traveling at 25 or 35+ knots or any speed without forward-looking collision avoidance sonar? Hawaii Superferry has developed a comprehensive whale avoidance policy in collaboration with whale researchers and the Hawaiian Islands Humpback Whales National Marine Sanctuary Advisory Council (SAC). The policy that we have developed is stricter than existing Federal regulations in Hawaii and includes the following: • Changing routes during whale season to avoid areas with high concentrations of whales • Slowing the speed of our vessel in shallow water areas where whales congregate • Maintaining a distance of 500 meters (541 yards) from whales whenever possible. Federal regulations require vessels stay 100 yards from whales. • Adding two dedicated whale observers on the bridge during whale season to assist the Captain and officer. • Utilizing state of the art technology, including the latest motionstabilizing and night-vision binoculars to enhance our crew’s ability to spot whales. Any vessel traversing Hawaii’s waters must help protect and avoid whales whenever possible, and we do not take this responsibility lightly. Hawaii Superferry will continue to explore additional means to avoid whales.

2) When a whale surfaces in HSF’s path, what is the minimum distance required and time needed to change course and avoid collision? There are multiple variables that must be considered in whale avoidance such as location of whales, vessel speed, sea state, and others that does not allow a simple answer to the question. Our catamaran design makes our vessels highly maneuverable with the ability to turn, slow, and stop more quickly than large conventional ships with a single hull. Our crewmembers are trained to actively seek and identify whales along track lines ahead of vessel and will change course and speed as needed to avoid whales.

There are many aspects to our whale avoidance policy which can be seen on our website. Highlights include our vessels changing course during whale season to avoid areas of higher whale concentrations near Maui and Penguin Banks near Molokai. Two additional crew members will be stationed on the bridge with the latest motion-stabilizing and nightvision binoculars to help the Captain and officer spot and avoid whales. Our vessel must, whenever possible, maintain a minimum distance of 500 meters (541 yards) from any whale.

3) Please substantiate how HSF’s Whale Avoidance Policy is more restrictive than the 100-yard federal approach law for humpback whales? How is it possible HSF can ensure it will never approach closer than your stated goal of 500 meters? Our policy requires that our vessel change course or speed to stay at least 500 meters (541 yards) from whales which represents a stricter policy than current federal regulations in Hawaii that requires vessels to maintain a distance of 100 yards from a Humpback whale. Our policy represents a high standard to help us avoid whales using current available technology. This policy includes: • Changing routes during whale season to avoid the whale dense areas near Maui and the Penguin Banks off of Molokai. • Slowing down to 25 knots or less in shallow waters (600 feet or less) where whale concentrations are greater. • Adding two extra crew on the bridge to assist the Captain and officer in spotting whales. These crew members will be equipped with the latest motion-stabilizing and night vision binoculars. In addition, a large night vision scope is built into the bridge. 4) Research has shown that humpback whales are more vocal and just as active at night as during the day. When fully operable, over 50% of HSF departures or arrivals will be in total darkness. How will HSF detect whales at night and avoid collision? How does HSF plan to minimize impacts from noise created by its multiple engines on humpback whales and other marine life? Our whale avoidance policy represents a high standard that will help us to avoid whales with the current available technology. With one vessel operating, one out of four departures will be at night – from Kauai to Honolulu. When two vessels are operating in 2009, three out of eight departures will be at night – Kauai to Honolulu, Honolulu to Maui and Maui to Honolulu. Our Whale Avoidance Policy includes adding two extra crew members on the bridge to assist the Captain and officer spot whales.

During night voyages the whale spotters will be equipped with the latest stage four night vision binoculars providing exceptionally clear images. In addition, a large night vision scope is built into the bridge. Regarding the question regarding of noise, our vessels are similar to other ferries operating in United States waters where Humpback whales are present, such as in Alaska. Our routes are primarily in deep waters avoiding areas of greater whale concentration. Our routes change during whale season to avoid the more whale dense areas by going North of Molokai on voyages between Honolulu and Kahului whenever possible and routing around Penguin Banks. Our vessels will also operate at a maximum of 25 knots in waters of less than 100 fathoms (600 feet or less). The ferries’ independent water jet-propulsion systems mean no exposed propellers for increased safety and protection of marine mammals. 5) Research by David Laist of the U.S. Marine Mammal Commission has shown that most fatal collisions between whales and ships occur when vessels are traveling at speeds greater than 13 knots. Furthermore in over 90% of collisions with vessels exceeding 250 feet in length the collision is deadly for the whale (HSF is 349.4 feet long). HSF is proposing to travel in Sanctuary (and near shore) waters at 25 knots, nearly twice the recommended speed by the Marine Mammal Commission and NOAA. What research and modeling has HSF undertaken to ensure it will not strike and kill whales both in the Sanctuary and non-sanctuary waters? Hawaii Superferry worked in partnership with whale researchers and the Hawaiian Islands Humpback Whale National Marine Sanctuary Advisory Council to develop a whale avoidance policy that is stricter than existing federal regulations in Hawaii. Our whale avoidance policy requires our vessels to slow down to a speed no greater than 25 knots when in Sanctuary waters or shallow waters (600 ft. or less) which is a similar speed as some other vessels in Hawaiian waters, including vessels traveling within Sanctuary waters. Our policy requires our captains to change course and speed whenever necessary to avoid whales. The catamaran design of our vessels will help reduce exposure by having a shallower draft than large conventional single hull vessels. Our vessels have a draft (distance of hull below the water line) of only 12 feet as compared to other conventional ships with a draft ranging from 28-55 feet. Hawaii Superferry vessels also have no propellers, eliminating a source of potential harm to whales.

6) Where on the vessel will the two onboard whale observers be located, what will they be equipped with, and how long will it take for a course and speed change once an observer detects a whale? Has HSF done any modeling to calculate how long it will take to relay whale information to the helm, and for the captain to set a new course? The two onboard whale observers, who are trained in whale behavior and detection, will be located on the far port and starboard sides of the bridge to assist the Captain and officer in spotting whales. Relaying information to the Captain will take just a few seconds. As shown in our whale avoidance policy our Captains can detect and react with appropriate avoidance maneuvers within seconds. Our whale observers will be equipped with the latest motion-stabilizing and night vision binoculars. In addition, a large night vision scope is built into the bridge. These whale observers are also trained to actively seek and identify whales along track lines ahead of the vessel. They will identify course and speed of whales and calculate CPA (Closest Point of Approach) and change course and/or speed as required to maintain a minimum 500 meter distance fro whales. Our catamaran design hulls allows our vessels to be highly maneuverable with an ability to change course, slow or stop much faster than the large conventional ships with a single hull.

7) Given HSF relies upon federal and state funds, why has the HSF not applied for an incidental take permit (provided for under Section 10 (a)(1)(b) of the Endangered Species Act) with regard to colliding with humpback whales? There is no federal or state requirement for a Section 10 incidental take permit. An incidental take permit is a voluntary process and to date there has been no vessel or industry such as the whale watch industry, cargo transportation, or recreational boating industry that has undertaken this process in Hawaii. Hawaii Superferry has, however, worked with whale researchers and collaborated with the Hawaiian Islands Humpback Whale National Marine Sanctuary Advisory Council in developing and publishing its whale avoidance policy. 8) HSF¹s proposed routing to Kawaihae on Hawaii Island passes through one of the richest concentration of odontocetes (dolphins, pilot whales, beaked whales, etc.) in Hawaii located on the SW side of Lanai. Highspeed ferries operating off the Canary Islands in the Mediterranean Sea have had numerous collisions with dolphins and pilot whales. The HSF

Whale Avoidance Policy addresses only humpbacks, not their smaller cousins. How does HSF propose to mitigate impacts on these animals? JG’s comment: need better answer The HSF Whale Avoidance Policy focuses on humpback whales, but these avoidance measures can also be beneficial to other forms of marine life as well. The goal of the policy is avoidance of high concentrations of marine life to prevent interaction. We appreciate the mention of this area off the SW side of Lanai and request that the person who asked this question please contact us so that it may be included in our on-going research to help us find additional ways to protect Hawaii’s marine life. 9) The HSF website says the HSF is “whale friendly” because it operates water jets instead of propellers. Has the HSF done any acoustic profiling or modeling to examine the amount of noise differential between the two propulsion types and measured the resultant impacts on marine life? What studies will you fund to understand the long-term impacts of acoustic noise on marine life targeted along your transit routes? Hawaii Superferry vessels are similar to other vessels operating with the United States in waters where Humpbacks and other marine life live and complies with regulations. We recommend that any studies regarding marine life ought to be determined by independent researchers. 10) Over 80% of vessel strikes with whales involve ‘blunt trauma injury’ resulting from direct body contact with the hull. How will the bulbous underwater bow wings on the HSF pose little or not threat to whales and other marine life? Our whale avoidance policy takes steps that are more restrictive than existing federal regulations in our waters. Our policy is based on avoiding areas where whale concentrations are greater and keeping at least 500 meters (541 yards) from whales. While no ship in Hawaii waters can completely eliminate the possibility of interaction with whales, our catamaran style vessels have much smaller hulls and draft underwater than the larger conventional ships with single hulls. Our draft is 12’ as compared to a range of 28-55 feet for the conventional ships. For more information on this, please refer to our Whale Avoidance Policy. 11) In Hawaii, from December ¹05 and February ¹07 there have been at least 10 whales struck by vessels ranging from 18-65 feet in length and traveling between 10-15 knots. If these smaller, slower vessels are hitting whales in HSF¹s proposed winter whale season route, how does HSF plan to miss?

It is unfortunate any time a whale and vessel interact and all vessels must be on the lookout for whales. Hawaii Superferry’s whale avoidance policy is designed to avoid areas where whale concentrations are greatest, such as in Sanctuary waters near Maui and Penguin Banks near Molokai. Many of the incidents have occurred in those areas with vessels who are trying to get a closer look at whales. Our primary objective is the safety of marine mammals and our passengers, which we will accomplish by staying away from whales and avoiding them whenever possible. Our policy requires that our vessels maintain a minimum distance of 500 meters (451 yards) away from whales whenever possible (federal regulations are 100 yards). In addition, we will have two additional observers on the bridge, equipped with the latest motion stabilizing and night vision binoculars available, on the lookout for whales. The catamaran design of our vessels makes them highly maneuverable and capable of changing course and speed quickly to avoid whales. 12) On November 18, 2004 John Garibaldi, CEO of Hawaii Superferry testified on it’s application for a Certificate of Public Convenience and Necessity to Engage in Operations as a Water Carrier at Waikoloa Elementary School. Mr. Garibaldi stated: “Our whale avoidance policy is much stricter than what is required by federal regulations regarding approach to marine mammals…” On December 9, 2004 in a reply to PUC regarding their Certificate of Public Convenience application, they clarified the marine mammal approach policy they were referring to was North Atlantic right whales. Federal regulations regarding the protection of right whales prohibit approach to 500 yards and speeds reduced to 10 knots or less in waters where right whales are found, and full stop at 500 yards. How is the Superferry’s approach policy stricter than this NOAA marine mammal approach policy? To clarify any previous alleged statements, Hawaii Superferry’s whale avoidance policy statement is stricter than current federal regulations for Humpback whales in Hawaii and does not refer to other areas or other types of whales. Our whale avoidance policy states that our vessels must stay at least 500 meters (451 yards) away from Humpback whales whenever possible. Current federal regulations for Humpbacks in Hawaii require vessels to stay at least 100 yards away. 13) In a January 19, 2007 news article in Pacific Business News (Superferry officials confident they can compete with airlines), former CEO of Austal USA (the builder of the Superferry) Alan Lerchbacker states: “I just worry about getting enough business to cover costs because of the sheer size of it,” Lerchbacker said he suggested a 72-meter vessel only to see the

company order the 100-meter model. “They may need 400 to 500 passengers to break even,” stated Lerchbacker. On February 7, 2007 John Garibaldi, CEO of Hawaii Superferry testified at a Senate hearing that the ferry would likely only carry about 100 or so cars and 200 people on an average voyage. If Mr. Lerchbaker is correct, how does the Superferry plan to make money and remain in business? Hawaii Superferry did not speak with, nor interact in any manner with Mr. Lerchbaker, who is no longer with Austal. We have selected the best vessel available in the world for Hawaii’s waters. 14) The following campaign contributions were cited in relation to Governor Lingle: John Lehman: $3,000 Tig Krekel: $3,000 John Garibaldi: $2,800 David Cole: $4,000 Margaret Cole: $6,000 Jeffery Arce (to Aiona) $2,500 ML&P $1,000 Steve Case, Investor: $3,000 Total: $25,300 Cited Source: www. followthemoney.org What portion of John Garibaldi’s annual salary does $2,800 represent? Hawaii Superferry is a privately held company and John Garibaldi’s salary is proprietary information, as is the salary of all executives and others working for Hawaii Superferry. 15) On November 18, 2004 John Garibaldi, CEO of Hawaii Superferry testified on it’s application for a Certificate of Public Convenience at Waikoloa Elementary School. Mr. Garibaldi stated, “The loading and unloading of passengers and vehicles is fast – it should take about 30 minutes to load and unload the passengers and vehicles once the vessel is secured in port.” How long will it really take to load and unload passengers and vehicles? How early will vehicles and passengers be allowed to line-up prior to departure? Where is the parking located for passengers not wishing to bring their vehicles, how will passengers get from off-site parking to ferry, and how much will the parking cost? Since the initial application filed with the PUC in 2004, Hawaii Superferry has refined its operational plans and filed an update with the PUC. While we feel that loading and unloading can be accomplished quickly, especially after residents and businesses become familiar with the

process, our preliminary schedule allows for a adequate vessel turn around time between arrival and departure. One hour for the ports of Honolulu and Kauai, with Maui allowing 90 minutes turn around time. The ports of Honolulu and Kauai will open two hours prior to vessel departure, Maui will open two and a half hours prior to departure. Our facilities in each port are sufficiently large to accommodate all vehicles expected to board the ferry. This will ensure that vehicles can immediately enter each facility with no delays on the outside roadways. There is no public parking available in Hawaii’s ports. Walk-on passengers should make arrangements with family or friends to be dropped off or picked up at each port. 16) On December 9, 2004 the Superferry issued a reply to their application for a Certificate of Public Convenience and Necessity to Engage in Operations as water Carrier wherein they state: “Applicant does not intend to offer large lots for long-term or overnight parking at the harbors. Any parking provided would be limited to pick-up, drop-off, ticket sales or other business. Most people who bring a vehicle will prefer to travel with it, so the demand for parking in connection with roll-on-roll-off ferries is typically low”. Can the Superferry please reveal the studies and case histories showing low demand for parking? What studies did Superferry fund to examine the parking issue? Hawaii Superferry visited and met with owners of the premier ferry operator in the Canary Islands, an archipelago with 6 islands and population similar to Hawaii. Benchmarking was done with their operation as well as other ferry operations throughout the world. Phone surveys were also conducted in 2004 to identify the needs and potential usage of consumers in Hawaii. Based on our assessment, walk-on passengers are estimated to be 15% or less of expected passenger loads. The primary advantage to customers of Hawaii Superferry is the ability to drive your car on and off the ferry. 17) Hawaii Superferry announced inter-island ferry service on January of ’04 with service to commence January’07. They started construction of their first ferry in June of ’04. Then they applied to the PUC for a Certificate of Public Convenience in November of ’04. Why did you start construction of your first vessel without the required operations permits in hand first? The founders of Hawaii Superferry believed strongly that their application for interisland ferry service was timely, financially sound, and provided residents with a much needed alternative to travel. Austal USA, the builders of the vessel, felt it was a sound business enterprise and commenced construction of Hawaii Superferry’s first vessel in May 2004

under a shipbuilding agreement that was subject to financing.