A longer version of this story appeared on the Washington State Standard.
For the first time in more than 50 years, Washington State Ferries will contract with an out-of-state shipyard to build new vessels.
Democratic Gov. Bob Ferguson made the final call to accept the low bid from Florida-based Eastern Shipbuilding Group to build three new hybrid electric ferries, each capable of carrying up to 160 cars and 1,500 passengers. The vessels will replace aging boats in the state fleet.
Ferguson passed over a considerably more expensive bid from in-state shipyard Nichols Brothers Boat Builders. Whidbey Island-based Nichols Brothers and a range of allies from around the north Puget Sound region lobbied the governor unsuccessfully to split the contract for the new ferries to secure local jobs and boost the region’s shipbuilding industry.
The state accepted Eastern Shipbuilding’s bid of $714.5 million for three new ferries, with deliveries estimated to begin in 2029.
However, the total cost to taxpayers will be much higher because the state plans to purchase the hybrid electric powertrain separately and made allowances for construction oversight, early delivery incentives and change orders. Ferguson’s office said this brings the cost of the first vessel to approximately $405 million, the second to $360 million, and the third to $325 million. The cost and risks decrease with lessons learned from each previous build.
Civic and business leaders in Washington urged the governor to choose Nichols Brothers and its sister yard, Everett Ship Repair, arguing that Ferguson should consider the jobs that would be created and economic benefits derived from using an in-state contractor.
The Washington Legislature previously set aside about $1.3 billion to build new ferries over the next six to eight years. Money is not the only consideration. The ferry system and the state’s Democratic leadership also want to reduce the ferries’ air pollution footprint by switching to battery propulsion as much as possible.
The Panama City, Florida-based Eastern Shipbuilding Group has experience building car ferries for numerous other governments, including in North Carolina and Florida and for the Staten Island line in New York.
Nichols Brothers submitted a competing bid that was considerably higher, even after including a 13% credit authorized by the Legislature to incentivize home state construction.
Nichols Brothers CEO Gavin Higgins said his company would not appeal the contract award to his Florida competitor. But he made it clear in an interview Tuesday that he felt “real disappointment” that the state missed the boat to grow its shipbuilding industry and invest in the next generation of apprentice builders.
“We’ve lost the opportunity to hire over 1,300 people and bring them to work. Who’s going to do it now?” Higgins said.
Jerry Cornfield contributed to this story. The Washington State Standard published a longer version of this story on July 1, 2025.
