July 10, 2015 4:00pm by David Farrar

Hawaiki makes progress

For the first time, it actually looks as if the 50% Spark-owned Southern Cross Cable could get some serious competition.

Hawaiki Cable founder Remi Galasso has been trying to raise $400 million for a trans-Pacific submarine cable since 2008.

Today, Hawaiki signed an equity deal with SIL Long Term Holdings, the family investment vehicle of NBR Rich Lister Sir Eion Edgar. …

Speaking to NBR shortly after the deal was made public, Sir Eion would not say how much money he would put into Hawaiki but described it as “substantial.”

He said he would also be advising the cable company and helping it bring other investors onboard.

Asked whether his investment was contingent on more customers coming on board (at the moment Haiwaiki has one firm customer, Crown agency Reannz), Sir Eion said “No, we’re committed.”

That is promising. Pacific Fibre got lots of potential customers but never got the capital. Hawaiki looks to be achieving both.

However the history in this space is that progress is a long way removed from commitment. Until they announce the project is definite, I’m not counting on it.

He said Hawaiki would lay its 25 terabit-per-second Sydney-Whangarei-Hawaii-mainland-US cable by December 2017. He expected it to be cashflow positive in three to five years.

It will be great if they achieve this.