Washington state awarded a $714.5 million contract to Florida-based Eastern Shipbuilding Group to build three new hybrid-electric ferries, passing over local shipbuilder Nichols Brothers Boat Builders.
Why it matters: The decision marks a departure from the state’s long-standing practice of building ferries in-state and has raised concerns about the impact on local jobs and the shipbuilding industry.
The details:
- Eastern Shipbuilding’s bid was 6% lower than the state’s own estimates and significantly lower than Nichols Brothers’ proposal.
- The new ferries will each have space for 1,500 passengers and 164 vehicles and feature hybrid-electric propulsion systems to reduce emissions by up to 90%.
- The first ferry is expected to be delivered in about five years, with the delivery schedule extended from 48 to 60 months.
- Nichols Brothers argues that its bid would have created over 1,300 local jobs and reinvested hundreds of millions into Washington’s economy.
The contract is part of Washington State Ferries’ nearly $4 billion project to fully electrify its fleet by 2040, which includes retrofitting six diesel ferries to hybrid electric, building 16 new hybrid-electric vessels, and adding charging stations to 16 terminals.
What they’re saying:
- “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,” said Governor Bob Ferguson.
- “It’s disappointing for us because it’s the loss of the opportunity to train the follow-on generation of shipbuilders that we desperately need. This is an opportunity lost,” said Gavin Higgins, CEO of Nichols Brothers.
- “For too long, our Puget Sound communities have felt the strain of service disruptions caused by our aging ferry fleet. That’s why I support the governor’s decision to move forward with the lowest-cost bid for three new hybrid-electric ferries,” said State Sen. Marko Liias, D-Edmonds.
The other side: Some lawmakers and advocacy groups have raised concerns about not requiring out-of-state builders to meet Washington’s stringent environmental rules and providing a 13% bid credit for in-state contractors that do meet those rules.
What’s next: The new ferries are scheduled for delivery over the next several years, with the first expected in about five years. Washington State Ferries will continue its efforts to electrify its fleet and address the challenges posed by an aging fleet and deferred maintenance.