Originally posted by Konaguy
Read the link, gonna have to say there's a bit of exaggeration in that commentary. HSF is now also gonna be at fault for bringing in crime too?
But just to play devil's advocate, okay, let's say we do the EIS. And it will pretty much state the obvious, more traffic, busier harbor traffic, etc. Then what? Are you gonna shut down HSF then? And if so, what happens to the $40 mil spent by the state on the barges and associated equipment being built in China at the moment? What about the federally backed loan HSF took to build the ships? The residents of Hawaii plus all other American taxpayers gonna foot that $140 mil loan as the feds repossess the ships and sell them at a fraction of the loan?
And I need to point this out, HSF's agreement with the state is a 22 year agreement and guarantees at least $2.3 mil in payment from HSF to the State in fees annually, excluding the docking fees for each time the ships call port. So is the $40 mil the State's spending really a subsidy to HSF, considering all the harbor upgrades belong to the State and is not exclusively reserved for HSF? If another ferry startup wants to use the facilities, HSF has to make room for them. As for the federally backed loan, that's a loophole caused by two laws. The Jones Act requires any marine service between two US ports to consist of a ship built in the US, registered in the US, and manned by a US crew. Which is probably why HSF is having their ships built in Alabama. The ship manufacturer, Austal, is based in Australia and easily could build it there. Then you got the Title XI law that permits ships built in the US to apply for a federally backed loan. Can you say that's subsidizing HSF on a federal level or just merely the confluence of two laws?
Leave a comment: