UA-131046696-1 [slim_seo_breadcrumbs]

State to pay more than $70 million in Superferry costs until 2028

Author:

Hawaii News Digest, 20 July 2017, 04:15 hrs, UTC, Post #15344.

Source:

https://www.bizjournals.com/pacific/news/2017/07/19/state-to-pay-more-than-70-million-in-superferry.html?

Accessed on 20 July 2017, 04:15 hrs, UTC.

Reporter:  Anna Hrushka (“Pacific Business News”).

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Comment:

According to “Pacific Business News” correspondent Anna Hrushka, the Hawaii State Auditor’s Office says the failed Superferry project will cost the state around $70 million and won’t be paid off until 2028.

The Superferry declared bankruptcy on 30 May 2009 after project officials failed to get an exemption from the Environmental Protection Agency. The state was stuck with paying off millions of dollars in harbor improvements and interest associated with the Superferry operation.

“Pacific Business News” correspondent Anna Hrushka provides the anlaysis:

“The audit said the state paid $45.2 million in total capitalized costs, which included barge and vehicle ramp systems and wharf improvements to accommodate the Superferry, as well $730,036 in tug service and transportation of barges to and within Honolulu Harbor.”

“Total interest on general obligation bonds for the work total $24.6 million.”

“Last year, the Legislature appropriated $50,000 to the Hawaii Department of Transportation to study the feasibility of establishing an interisland and intra-island ferry system.”

“The report said the department received an additional $500,000 for the study from the U.S. Department of Transportation’s Maritime Administration.”

Opinion:

I have a funny feeling that the controversial Honolulu Light Rail project will suffer the same fate, with local residents having to foot the bill for poor planning and inconsistent management of that project.

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Thanks for joining us today.

Until next time,

Russ Roberts

Hawaii News Digest

https://prgnewshawaii.wordpress.com

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