SNOHOMISH COUNTY, JULY 3: For the first time in 50 years, the largest ferry system in the nation, Washington State Ferries (WSF), will contract with an out-of-state shipyard to build new vessels to help bring domestic service to pre-pandemic levels.
The move to accept the $714.5 million bid from Florida-based Eastern Shipbuilding Group has some in-state supporters frustrated over lost opportunities for the local workforce.
“This is very disappointing news for the working men and women in Snohomish and Island counties and the state of Washington,” Ray Stephanson, president and CEO of Economic Alliance Snohomish County said.
In a statement Governor Bob Ferguson said the decision was “the best option.”
“After careful consideration and conversations with legislative leaders, I believe Eastern is the best option to build these critically important vessels at a fair cost to our taxpayers,” the statement said.
Eastern is set to build three new 160-vehicle hybrid-electric ferries, with deliveries to begin in 2029. The first vessel will cost approximately $405 million due to owner-furnished equipment, construction management, crew training and risk contingencies. The second is estimated at $360 million and the third $325 million.
The new ferries will mainly serve the Seattle/Bremerton and Mukilteo/Clinton routes, according to WSF. The ferries are also expected to cut emissions by 90% compared to older vessels.
The second and only other bid came from Whidbey Island-based Nichols Brothers Boat Builders (NBBB). The bid submitted was considerably higher, even after including a 13% credit authorized by the Legislature to incentivize home state construction, the Washington State Standard reported.
Nichols Brothers CEO Gavin Higgins said his company would not appeal the contract award to his Florida competitor. But he made it clear that he felt “real disappointment” that the state missed an opportunity to grow the shipbuilding industry and invest in the next generation of apprentice builders.
The contract award comes after a comprehensive year-long process of advertising, pre-qualifying shipyards, and answering shipyard requests for clarification. Eastern’s bid was 6% lower than WSF’s own engineer’s estimate, and 25% less than the competing bid.
In March, an independent study revealed that constructing ferries in state would generate 1,298 jobs and $31.9 million in state and local taxes.
“We are beyond disappointed. This is a missed opportunity to invest in a skilled workforce as well as create over 1,300 jobs for the state. I can’t imagine how this is in the best interest of Washington taxpayers,” Port of Everett CEO Lisa Lefeber said.
If NBBB were awarded the bid, ferries would have been built partially on Whidbey Island and predominantly at the Port of Everett.
The Port of Everett is tasked with increasing economic development through its international seaport, public marina and real estate development. Port activities support more than 40,000 jobs in the surrounding community and contribute $433 million in state and local taxes.
“The budget constraints we face — combined with rising construction costs driven by tariffs and inflation — mean we must make the most of every taxpayer dollar to deliver the ferries we urgently need,” Sen. Marko Liias, D-Edmonds, chair of the Senate Transportation Committee, said.
“I’m confident Washington’s shipbuilders will have many more opportunities to compete for and win future contracts,” Liias said.
Gordon
July 7, 2025 at 2:46 pmHope those are Ocean Going ferries . . . thats a long long trip from FL to WA!