Washington State Ferries Terminates Sale of Two Vessels, Citing Contract Breaches and Crew Welfare Concerns

Washington State Ferries (WSF) has terminated the sale agreements for two decommissioned vessels, the Elwha and Klahowya, due to the buyer’s failure to meet contractual obligations.

The decision comes after a series of events that raised concerns about the vessels’ intended use and the welfare of crew members.

In August, buyer Nelson Armas attempted to move the ferries to Ecuador, but the operation was halted when tow equipment malfunctioned in Puget Sound. Subsequently, reports emerged about poor living conditions and intimidation of the tugboat’s crew, prompting WSF to reevaluate the sale.

WSF Assistant Secretary Steve Nevey emphasized the importance of crew welfare, stating, “As a career mariner who spent the early part of my career working on internationally flagged ships, seafarer welfare is deeply personal to me. Though Mr. Armas denies these claims, it’s important to reaffirm that WSF’s values prioritize the fair treatment and safety of all crew members.”

Under the terms of the contract, Armas forfeits the $200,000 paid for the vessels. WSF has used part of these funds to remove leftover fuel from the ferries, with the balance to be transferred to the Puget Sound Ferry Operations Account.

The 144-car Elwha, one of four Super-class ferries built in the mid-1960s, primarily served the Anacortes/Friday Harbor/Sidney, British Columbia route. It was retired on April 8, 2020.

The Klahowya, an 87-car Evergreen State-class ferry built in 1958, primarily served the Fauntleroy/Vashon/Southworth route. In 2014, it was reassigned to the San Juan Islands interisland run. Upon its decommissioning on July 1, 2017, its sister ship Tillikum took over its route.

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