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For the first time in more than 50 years, a Washington ferry will be built out of state.

Governor Ferguson awarded the contract, worth $714.5 million, to Florida’s Eastern Shipbuilding Group for three new hybrid electric 160-car ferries. This bid came in 6% below the state’s expected cost.

鈥淲e鈥檙e restoring domestic service to pre-pandemic levels years ahead of schedule, improving crew retention, and soon will bring our first hybrid-electric vessel into service,鈥� Governor Ferguson said. 鈥淎fter 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.鈥�

The first boat from this contract is expected to be on the water in 2029. They are expected to carry approximately 1,500 passengers.

Ferguson chose Eastern Shipbuilding Group in Florida over the Whidbey Island-based Nichols Brothers Boat Builders. According to Ferguson, Eastern Shipbuilding Group’s bid was “significantly lower” in cost compared to Nichols Brothers’ bid. Despite the higher cost evaluation, many wanted the locally-based company to secure the deal to create local jobs and boost the region鈥檚 shipbuilding industry.

Rep. Andrew Barkis, R-Olympia, called the governor’s decision “disappointing, both in process and in principle.”

“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. “Their proposal came in more than $350 million higher than the winning bid from out of state. That difference is staggering and should serve as a wake-up call to lawmakers who continue passing laws that damage our state’s competitiveness. Washington shouldn’t be a place where our workers get priced out of building our ferries.”

“I鈥檓 confident Washington鈥檚 shipbuilders will have many more opportunities to compete for and win future contracts,” Sen. Marko Liias, D-Edmonds, chair of the Senate Transportation Committee, countered.

Eastern Shipbuilding Group, based in Panama City, Florida, has previously built ferries for North Carolina, Florida, and the Staten Island line in New York.

Total costs for the three new ferries

The Washington Legislature set aside about $1.3 billion to build new ferries over the next six to eight years.

Due to owner-furnished equipment, construction management, crew training, and risk contingencies, the first vessel is expected to cost $405 million in total, the second costing $360 million, and the third costing $325 million.

Washington State Ferries (WSF) is the largest public ferry system in the nation with 21 vessels in its fleet. WSF wants to grow to 26 ferries in size. Additionally, the state government aims to reduce the ferries’ environmental footprint as the boats transition to battery propulsion. Republicans in the Washington State Legislature argued for building a cheaper diesel ferry option to save money.

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