A state-sponsored ferry service for Hawaii would be financially and commercially impractical, according to a new study conducted last year by the state Department of Transportation.
The main barrier to a new ferry is a lack of pier space and the cost to construct new infrastructure at the
12 state harbors that were analyzed, according to the report. Many of the harbors would need more parking lots, ramps, new floating docks and other changes to accommodate a new ferry system and its customers.
According to the DOT, there is substantial support among Hawaii residents for the ferry system, but most residents admitted they would probably not use it unless the service was cheaper and took less time than other transportation options.
“From a commercial perspective, the expectations of Hawaii’s residents and the reality of a ferry system are incompatible,” the report found. “While the interest or support for a ferry system, inter-island or other, is significant, the pool of likely users is relatively insignificant.”
The privately owned Hawaii Superferry began service Aug. 26, 2007, with a trip to Maui, but its second voyage of the day was halted by protesters blocking entry to Kauai’s Nawiliwili Harbor. A court order suspended service two days later amid legal challenges and concerns from environmentalists. It resumed service in December 2007 until it was halted again in March 2009 by a court order, and the company declared bankruptcy two months later. The Honolulu ferry, known as TheBoat, also ran from 2007 to 2009, but at only 30 percent occupancy.
The new study was based on a review of past ferry systems in Hawaii and current successful ferry systems in the United States, and on a poll of more than 1,400 Hawaii residents conducted by SMS Hawaii. According to Act 196, the DOT was required to research multiple subjects like successful ferry systems in Alaska and Washington, the compliance of state laws, costs and possible vessel models, its effect on the islands’ congested roadways, and the impact on invasive species.
The latest study found the costs for most potential ferry routes still would exceed revenue, and a state subsidy still would be needed. About 77 percent of the general public felt the ferry system should be supported by state funding.
In 2016 the state allotted $50,000 for the latest study of the possibility of reinstating a ferry service, and nearly that entire amount was used, according to DOT spokesman Tim Sakahara. The U.S. Maritime Administration has approved $500,000 for HDOT to fund its next steps and further study viable ferry system options.
Although the report found that a state-sponsored ferry would be unfeasible, the state DOT suggested a public-private partnership might be workable. Such a partnership would allow the ferry system to remain eligible for federal funding while eliminating the requirement that ferry employees work for the state.
However, state officials wrote that more research and analysis is needed to determine whether that approach is workable.
