Washington State has selected Florida-based Eastern Shipbuilding Group to build three new 160-vehicle hybrid-electric ferries for Washington State Ferries (WSF) at a cost of $714.5 million, a decision that prioritizes cost savings but has raised concerns about bypassing local shipbuilders and its impact on Washington’s economy.
“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,” Governor Bob Ferguson said.
The contract, announced by Governor Ferguson on July 1, marks Washington State Ferries’ (WSF) first competitive bid for ferry construction in over 25 years. Eastern’s $714.5 million bid was 6% below WSF’s engineer’s estimate and significantly lower than the other bidder, Nichols Brothers of Whidbey Island, following a year-long process of advertising, pre-qualifying shipyards, and addressing bidder inquiries.
“As we follow Governor Ferguson’s direction to focus on service, it’s exciting, as we restore additional vessels on three routes, to also move forward with constructing new ferries,” said Deputy Transportation Secretary for WSF Steve Nevey.
Beyond the shipyard bid, additional costs for owner-furnished equipment, construction management, crew training, and risk contingencies bring the first ferry’s cost to $405 million, the second to $360 million, and the third to $325 million. The state’s 2025-27 transportation budget allocates nearly $900 million for ferry system capital projects, with over half supporting new vessel construction and electrification.
WSDOT’s Ferry System Electrification Program, estimated at roughly $4 billion, is partially funded with $1.03 billion from the Move Ahead Washington package and $599 million from the Climate Commitment Act.
Supporters of the decision highlight fiscal responsibility. Sen. Marko Liias (D-Edmonds) stated, “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.”
However, critics argue the contract undermines Washington’s shipbuilding industry. Port of Everett CEO Lisa Lefeber called it “a missed opportunity to invest in a skilled workforce as well as create over 1,300 jobs for the state.”
Rep. Andrew Barkis (R-Olympia), House Republican transportation lead, criticized both the decision and its lack of transparency, stating that Nichols Brothers’ bid exceeded Eastern’s by over $350 million.
“It’s deeply concerning that Nichols Brothers, a long-established Washington company with decades of experience, could not offer a competitive bid despite having home-field advantage,” Barkis said. He blamed high taxes, regulations, and compliance costs, warning, “If building ferries in Washington is no longer financially viable, we’ve done something terribly wrong.”
Barkis added, “There was no Four Corners meeting, no briefing, no explanation of the final process or rationale.”
Eastern Shipbuilding, Panama City’s largest employer, emphasizes its workforce development through its “BUILD” initiative, though its unionization status remains unconfirmed.
Meanwhile, WSF is expanding its service, adding a second boat to the Seattle-Bremerton route and planning further vessel additions. Governor Ferguson also reported progress on the Wenatchee’s hybrid-electric conversion, set to resume service in early July, enabling the fleet to reach 21 vessels and full pre-pandemic service levels.
Author: Mario Lotmore
One Response
Save a few bucks now but deprive the local economy of all of the positive impacts this project could have had for the local region. If WA employers are meant to compete with FL employers, then WA leaders should have offered payroll taxes credits for all of THEIR mandates. Nichols never had a chance and now we’re sending money away from skilled WA labor to a state with no concerns for workers. Stupid stupid stupid.