Washington State Awards $714.5 Million Ferry Contract to Eastern Shipbuilding

Washington Governor Bob Ferguson has selected Florida-based Eastern Shipbuilding Group to build three new 160-vehicle hybrid-electric ferries in a contract valued at $714.5 million. The Washington State Ferries (WSF) will now proceed with the contracting process following what officials describe as the first competitive bid for ferry construction in more than 25 years.

“We’re 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,” Governor Ferguson said. “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.”

Eastern’s bid came in 6% below WSF’s engineer’s estimate and was significantly lower than the only other bidder in the year-long selection process. Beyond the shipyard costs, WSF will invest approximately $150 million for the first vessel to cover owner-furnished equipment, construction management, crew training, and contingencies. This brings the total cost to approximately $405 million for the first vessel, with subsequent vessels costing $360 million and $325 million as efficiencies are gained through construction experience.

Deputy Transportation Secretary for WSF Steve Nevey noted, “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.”

The ferry system has been steadily rebuilding service since pandemic disruptions. In March, Governor Ferguson announced plans to delay hybrid-electric conversion of two large ferries until after the 2026 World Cup to expedite return to full domestic service. The system has already completed one hybrid-electric conversion on the Wenatchee, expected to return to service this month.

WSF, a division of the Washington State Department of Transportation, is the largest ferry system in the United States. The Ferguson administration has made ferry service improvements a priority, with the governor personally meeting affected island communities and securing $39 million in the state budget for crew hiring, retention, and training programs.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 109,140 members