Retired Navy Adm. Thomas Fargo, newly named president and chief executive officer of Hawaii Superferry, yesterday said the company will continue to focus on providing regular, reliable service to the state's residents, visitors and businesses.

The former head of the U.S. Pacific Command is assuming the helm of the interisland ferry service as it recovers from a shaky start marred by a lengthy legal battle, protests, rough seas, and problems with its $85 million catamaran and docking facilities.

Fargo, 59, will take over on Monday from John Garibaldi, who will remain with the company as vice chairman and a member of the board of directors. Company officials would not comment on the reason for the leadership change, but said Fargo is joining the $250 million enterprise at a time when passenger and vehicles loads on the Honolulu-to-Maui sailings are growing.

The move also follows action by chief investor J.F. Lehman & Co. to make a "substantial increase'' in Superferry's capital base that "will definitely get us through this startup period and the delivery of our second vessel" next year, said Tig Krekel, vice chairman of the investment firm.

Garibaldi said Fargo's appointment is a positive sign of the Superferry backer's financial commitment to the operation and the company's "staying power."

Although a longtime acquaintance of former Navy Secretary John Lehman, head of the investment firm, Fargo said he had no prior involvement with Hawaii Superferry.

"When it first came out here, like a lot of folks I went down and visited to take a look at the ship. It was very intriguing to me from a maritime operations standpoint," he said.

Fargo said he did not want to address the ferry's tumultuous startup last year, and instead is focusing on building "a very reliable operation going forward."

"Hawaii Superferry is at a very important point right now," he said. "We've brought the ship to Hawai'i and shaken it down, and we're now in a period of expanded operations. I bring a set of skills in terms of running a complex maritime organization that complements what John (Garibaldi)'s done to date."

FUELING SPECULATION

Fargo's appointment likely will fuel longstanding speculation, sparked by Lehman's involvement in the company, that the high-speed, aluminum-hull catamaran's true intended purpose is as a transport for the 19-ton, eight-wheeled armored vehicles attached to the Army's rapid-response Stryker brigade on O'ahu and the Big Island.

"I'm a Navy guy," Fargo chuckled when asked about possible Stryker duty.

He said civilian customers must be able to rely on a regular daily schedule, and that cannot happen if the 350-foot Alakai is taken out of service for military charters.

"The success of this company will be built on its commercial operations and moving passengers and commercial freight between the islands. The ferry is for the residents and visitors and businesses of Hawai'i," said Fargo, who has sailed on the Alakai three times so far.

Garibaldi added that the military is welcome to book space on regularly scheduled voyages just like any other customer.

The Alakai is capable of carrying 866 people and 282 cars.

Superferry officials had projected a daily one-way passenger load of 400, but in the days leading up to the start of drydock repairs in February, the average load was 115 people and 40 cars from Honolulu to Maui, and 87 people and 39 cars on the return leg.

Yesterday, the vessel transported approximately 350 passengers and 100 vehicles from Honolulu to Maui, company officials said, and about 250 people and 70 cars on the return trip.

Garibaldi said business interest in using the ferry has accelerated due to uncertainty over the fate of Aloha Airlines' cargo operations. Among the Superferry's commercial customers are Love's Bakery, which will start regular shipments to Maui on Monday, he said.

'A WISE CHOICE'

Senate President Colleen Hanabusa met with Fargo, Garibaldi and Krekel yesterday as the trio visited state lawmakers and other leaders to announce Fargo's appointment. She said she appreciates the fact the retired admiral remained in Hawai'i to live and work after leaving the Navy in 2005.

"I've always been impressed with his leadership style and the fact that he really remained dedicated to Hawai'i," said Hanabusa, D-21st (Nanakuli, Makaha). "He chose to make Hawai'i his home. I think he is a wise choice on their part."

Fargo most recently worked as president of Trex Enterprises, a San Diego-based technology company with offices in Hawai'i. He continues as a managing director of J.F. Lehman & Co., and serves on the boards of Hawaiian Airlines, Hawaiian Electric Industries and USAA.

His community involvement includes serving on the boards of 'Iolani School, Hawai'i Pacific University and the Japan-America Society.

Fargo served as commander of the U.S. Pacific Fleet from October 1999 to May 2002, when he took over the U.S. Pacific Command, directing Army, Navy, Marine Corps and Air Force operations from the U.S. West Coast to the east coast of Africa. He retired from the Navy in February 2005 after 35 years of service.

PAST PROBLEMS

The installation of a new president and CEO at Hawaii Superferry may allow the company to distance itself from some of the controversy that has dogged the operation from its inception.

Most recently, the state auditor released a report this month suggesting the state compromised its environmental policy under pressure from Hawaii Superferry executives concerned about financing.

The auditor found that an internal Superferry deadline for financing ship construction appeared to have led the state Department of Transportation to bypass an environmental review of $40 million in state-funded, ferry-related port improvements.

The DOT's 2005 decision to exempt the projects from review led to a lawsuit filed by Maui Tomorrow, the Sierra Club and the Kahului Harbor Coalition. The costly case resulted in a Hawai'i Supreme Court ruling in August that the DOT was wrong to not conduct an environmental review.

A subsequent Maui court order halted ferry service to Kahului Harbor only a day after it launched, while protests on Kaua'i prevented the Alakai from docking at Nawiliwili Harbor.

Superferry was able to relaunch in December after state lawmakers approved a bill in special session allowing ferry service to resume while an environmental impact statement is conducted.

Other troubles included two weeks of voyage cancellations due to rough winter seas, and an unscheduled six-week drydock session in February and March for repairs.

The Alakai resumed sailing on April 7 and is scheduled to offer a second Maui roundtrip starting May 9.

Kaua'i service remains on hold indefinitely. Fargo said the best way to win community support for the ferry on Kaua'i is to establish a track record of responsible, reliable operations to Maui.

Delivery of the company's second catamaran, under construction at the Austal shipyard in Mobile, Ala., is anticipated early next year. That vessel will be used for service to Kawaihae on the Big Island.

Staff writer Derrick DePledge contributed to this report.