OLYMPIA—Florida-based Eastern Shipbuilding Group has officially received a Notice to Proceed from Washington State Ferries (WSF) to build two, with an option for an additional third, 160-vehicle hybrid-electric ferries for Washington state, the company announced on August 15.
“This is an exciting milestone in bringing new hybrid-electric ferries to our fleet,” said David Sowers, Washington State Ferries’ Electrification Program Administrator. “These vessels will not only incorporate state-of-the-art technologies in shoreside charging and battery storage to cut diesel-generated emissions, but they will also provide dependable service for the communities who rely on us every day.”
The contract, announced by Governor Bob Ferguson on July 1, marked WSFs’ 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.
“We are honored to move forward with Washington State Ferries on this historic initiative,” said Joey D’Isernia, CEO of Eastern Shipbuilding Group, Inc. “We are deeply committed to delivering world-class vessels that reflect the best of American shipbuilding, innovation, and environmental stewardship.”
The state-of-the-art hybrid/electric vessels have a length overall of 409’-6” with an 83’-2” beam and a hull depth of 24’-6”. These will be certified to transport 160 standard-sized passenger vehicles and 1500 passengers. With a draft of 16’-6”, the ferries will achieve a speed of 17 knots at full load and are designed to interface with all existing WSF dock facilities.
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 to select Eastern Shipbuilding Group stressed 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 argued that the contract undermines Washington’s proud 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. The company has a proven track record in delivering complex auto passenger vessels, including the iconic Staten Island Ferries and the auto/passenger ferry LONG ISLAND, delivered in 2024. Founded nearly fifty years ago, ESG is an American-owned shipbuilder that has delivered over 350 advanced commercial and government vessels and proudly has achieved a 99% on-schedule delivery rate for the past 20 years.
WSF, a division of the Washington State Department of Transportation, is the largest ferry system in the United States and in 2024 performed 9.07 million vehicle and 10.08 million passenger trips.
WSF expanded its service in June 2025 adding a second boat to the Seattle-Bremerton route. In July, The Wenatchee, North America’s largest hybrid-electric passenger vessel went back into service, enabling WSF’s fleet to reach 21 vessels and full pre-pandemic service levels.
WSF has a goal to be an emission-free ferry fleet by 2050. To achieve this, WSF is expanding its fleet by converting six existing vessels to hybrid-electric power, building 16 new hybrid-electric vessels and adding shore charging to 16 terminals. Construction is expected to start in 2026 electrify the first five ferry terminals—Bainbridge Island, Seattle, Clinton, Bremerton, and Kingston—in collaboration with regional utilities.
Author: Mario Lotmore
3 Responses
Hope the guv sends a hybid-electric QA engineer down there weekly.
This decision reeks of payoffs , short sighted decisions and ignorance. Or did they take into account the loss to Washington of all of the money that would be spent here, by Washington workers, to support communities and ancillary businesses that would support the building of these vessels? Somehow, I doubt it.
What do you expect from Fergie, a clone of Inslee. Yeah im not so sure $$$ hasn’t changed hands in this. Fergie could care less about Wash. He showed that by enacting the largest tax increase in Wash history. Just remember this when its time to show him the door and kick his sorry ass to the curb.