WAILUKU, Maui — The Hawaii Superferry, already losing $650,000 per week while its high-speed catamaran idles in Honolulu Harbor, cannot afford to remain out of service in the months it will take the state to conduct a court-ordered environmental assessment of ferry-related projects at four ports, said company President and CEO John Garibaldi yesterday.

Testifying in a Maui Circuit Court hearing that will likely determine the Hawaii Superferry's fate, Garibaldi said an adverse court ruling prohibiting the Alakai from resuming Maui voyages would force company officials to find someone out of state to lease the vessel. And once the ferry leaves, there's no guarantee it will return, he said.

Although there are no legal impediments for the ferry to sail between Honolulu and Kaua'i, Garibaldi said service to Maui is essential.

"Our business model requires that we service Maui as well as Kaua'i. Only providing service to Kaua'i would not produce enough revenue to sustain our business model and, therefore, would put the company at risk," he said.

Hawaii Superferry launched on Aug. 26, but service was halted the next day by Maui Circuit Judge Joseph Cardoza. Cardoza has prohibited the ferry from using Kahului Harbor until he rules on whether the company can operate while the state undertakes an environmental assessment.

Service to Kaua'i has been suspended indefinitely due to safety concerns surrounding anti-ferry protests.

The Maui court hearing has stretched out over a month, and it is estimated an environmental assessment would take at least eight months.

If Cardoza rules the Hawaii Superferry must stay tied up in port during the assessment, Garibaldi said the company immediately would lay off 90 percent of its 300 workers.

He said the company is burning $500,000 weekly in operating costs that include labor, vessel maintenance, rent and insurance. Debt service on its loans runs about $125,000 per week, with assorted other costs thrown in, such as fees for the company's team of lawyers in the Maui court hearing.

There is nothing in the Hawaii Superferry's financing agreements that would prevent the Alakai from operating in another location, he said.

The Sierra Club, Maui Tomorrow and the Kahului Harbor Coalition have presented testimony during the court hearing on measures the Hawaii Superferry should take to address their concerns about traffic, the spread of invasive species and potential collisions with humpback whales.

The company's whale-avoidance policy calls for posting two dedicated whale lookouts on board the ferry and sailing north of Moloka'i on the Honolulu-to-Maui route from January through April, the peak of the humpback whale season in Hawai'i.

NEED FOR SPEED

Garibaldi testified that if allowed by Cardoza to resume service, the company would accept a court condition to adopt the practices during the entire time it takes the state to complete the assessment, not just during whale season. But he said the Hawaii Superferry would not be able to work with a court-imposed speed restriction of 15 knots, in the range recommended by marine mammal experts to reduce the risk of whale strikes and the severity of injuries to any animals that are hit.

The company tariff approved by the state Public Utilities Commission set a schedule of one daily roundtrip each between Honolulu and Maui, and Honolulu and Kaua'i. The sailing time for each one-way leg is set at three hours.

Garibaldi said the schedule was based on the ferry's cruising speed of 37 knots, or about 43 mph.

If forced to slow to 15 knots, Garibaldi said the company would not be in compliance with its tariff, and would not be able to make its two daily roundtrips. "Our business plan wouldn't be a viable business plan," he said.

Garibaldi testified the interisland ferry received enthusiastic encouragement from Hawai'i officials and the public in the seven years of planning leading up to its launch this year. The terrorist attacks of Sept. 11, 2001, provided further impetus for the project, he said, as the state's air transportation system was shut down for several days, with no movement between the Islands.

"It brought home the fact that we were relying on one mode of transportation," he said.

The Superferry appeared to be cleared for operation in Hawai'i until six days before its scheduled launch when the state Supreme Court ruled that the state erred in granting an environmental exemption to $40 million in publicly funded projects to accommodate the ferry at Honolulu, Kahului, Nawiliwili and Kawaihae harbors.

The state has since agreed to conduct the environmental assessment but wants the courts to allow the Superferry to operate while the assessment is done.

A state Department of Transportation committee has forwarded to director Barry Fukunaga its recommendation of a contractor to perform the environmental study, said Mike Formby, deputy director of harbors.

The department plans to finalize the selection today, he said.

Garibaldi said state laws encourage the establishment of a ferry system, and the state Legislature passed a resolution in 2004 urging the state Department of Transportation, the Public Utilities Commission, the U.S. Maritime Administration, and other officials and agencies to expeditiously process the company's permit applications and financing requests.

PUBLIC SUPPORT

The Legislature additionally endorsed the Hawaii Superferry, he said, by approving $40 million in financing for floating barges, ramps and other facilities to be used by the company at the four ports.

Garibaldi said there was an overwhelming show of public interest and support when the Hawaii Superferry arranged for a preview of the high-speed ferry service in March 2004. Thousands lined up to experience a similarly designed vessel, the Spirit of Ontario, as it called at island ports, he said.

"That gave us an indication this was something that was needed and wanted," he said.

Garibaldi's testimony will resume at 10 a.m. today.

Reach Christie Wilson at cwilson@honoluluadvertiser.com.