“Competition brings out the best in products and the worst in people.” – Faqimi Fauzi “All progress and growth is a matter of change, but change must be growth within our social and government concepts if it should not destroy them.” – Herbert Clark Hoover, 31st President of the United States “They can rule by fraud and by fraud eventually acquire access to tools they need to finish the job of killing off the Constitution.” – Robert Anton Wilson

1. Clifton M. Hasegawa
President and CEO Clifton M. Hasegawa & Associates, LLC
1322 Lower Main Street A5
Wailuku, Maui 96793
Telephone: (808) 419-5481
Email: clifhasegawa@gmail.com
LinkedIn: https://www.linkedin.com/in/cliftonhasegawa
June 6, 2017
VIA EMAIL
The Honorable Jeff Sessions
Attorney of the United States
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0009
Re: State of Hawaii & Matson – The Demise of Kaimanu Maritime Corporation
Dear Attorney General Sessions:
Kaimanu Maritime Corporation was conceived to respond to a need expressed by
residents of Hawaii. The project was terminated.
Key was vessel construction. New build and retrofit were options explored to make the
numbers work. The sale of the MV Huakai, then docked at Aker Philadelphia Shipyards (Philly
Shipyards) was the death of the project having explored acquisition of a suitable Ro/Ro
Passenger ferry from other venues. Please note, “Philly Shipyards” [Aker Philadelphia
Shipyards] was selected by Matson to build Two (2) Dual (LNG and conventional diesel) Aloha-
Class vessels. Total cost, $925.3 Million.
The method of propulsion selected was LNG, like chosen by Pasha for their 2 new
containerships. The availability of a Marine Refueling Terminal in Hawaii, then and now, was
another obstacle that could not be overcome. As one of the founding members expressed,
“Timing is everything”.

2. The Honorable Jeff Sessions
Attorney of the United States
June 6, 2017
Page 2 of 2
As both a passenger and cargo vessel the number of sailing days is key for revenue.
Continuing changes in the weather patterns tied to changes in our environment.
The route from and to Honolulu and Maui was to be the first. Availability of the
terminal built for the Hawaii Super Ferry was tenuous then and is currently unavailable.
The project to build a suitable ferry terminal at Kahului Harbor by the State of Hawaii has been
abandoned for budget and financial reasons.
Given the obstacles then and currently, revisiting this project would be high-risk,
unacceptable to private investors. Satisfying expected rates of return in the current financial
and economic climate and market would be challenging.
New vessel construction by Matson and Pasha appears problematic excepting that
Matson/Pasha has a captive consumer base. Whether shipping rates will decline is a driving
question mark.
Clearly Title XI Funding will be needed. Private investor may shun the opportunity to
fulfill the funding gap given prevailing economic conditions in the marketplace, i.e.,
overcapacity, unemployment and anticipated rate of economic recovery on all fronts. Ten
inclusion of Venture Capitalists may be rejected by the shareholders.
Matson announced that they are financially capable of providing funding internally.
Institutional financing is the key for this company. Whether citizenship standards established in
Trico Marine can be met or exceeded, i.e., 75% U.S. citizens, is a question to be explored and
answered by MARAD and the Department of Justice.
Thank you for the opportunity to share
Respectfully,
Clifton M. Hasegawa
Enclosure: AG-80 Kaimanu Maritime Corporation – LinkedIn Slide Share – 4/18/2015