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Tag Archive: John F. Lehman

Hawaii Superferry: An ulterior motive?


Was the Hawaii Superferry project conceived of as a means of securing a military contract? Speculation in Hawaii among activists that the ferries might have eventually been used for interisland transport of the Army’s Stryker brigade and other military equipment fueled conflict between protestors and Superferry supporters.

In March 2005, John F. Lehman, a former Navy Secretary during the Reagan administration and the company's principal investor, told Pacific Business News that there was a possibility the ferries would be used to move military cargo. In 2008, the former CEO and President of HSF, Inc., Thomas Fargo, said that ...

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Government agency with a history of taxpayer losses keeps at it


Between 2004 and 2009, the U.S. Maritime Administration, or MARAD, a federal agency that supports the U.S. shipbuilding industry and merchant marine, made just one loan from its troubled Federal Ship Financing Program, also known as Title XI. The borrower was Hawaii Superferry Inc., a politically connected company that hired a former chief counsel and deputy administrator of MARAD, among others, to lobby the agency. In 2005, Hawaii Superferry got a taxpayer-guaranteed loan for $139 million to build and operate a pair of high-speed ferries in the fiftieth state. Just four years later, the company filed for bankruptcy ...

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