Washington State Governor Ferguson’s selection of an out-of-state shipbuilder to construct new hybrid-electric ferries draws criticism from local politicians and maritime stakeholders
Much to the disappointment of local politicians and maritime stakeholders, Washington State Governor, Bob Ferguson, selected a Florida-based shipbuilder to construct a series of 160-vehicle electric-hybrid ferries for the state’s ferry system.
Governor Ferguson said he selected the US$715M bid from Eastern Shipbuilding Group, “after careful consideration and conversations with legislative leaders”, calling it, “the best option to build these critically important vessels at a fair cost to our taxpayers.”
The next step is the contracting process, following the first competitive bid for ferry construction for Washington State Ferry (WSF) in more than 25 years.
WSF said in a statement the contract award comes after a comprehensive year-long process of advertising, prequalifying shipyards, and answering shipyard requests for clarification. Two shipyards submitted bids: Eastern’s bid was 6% lower than WSF’s own engineer’s estimate, and “significantly lower” than the other bidder, Nichols Brothers, Whidbey Island, Washington, according to the state.
But local maritime stakeholders were not convinced the contract was in the best interests of the state or local taxpayers. “We are beyond disappointed. This is a missed opportunity to invest in a skilled workforce as well as create over 1,300 jobs for the state,” Port of Everett chief executive, Lisa Lefeber, said. “I can’t imagine how this is in the best interest of Washington taxpayers,” she said in a social media post.
“I can’t imagine how this is in the best interest of Washington taxpayers”
Representative Andrew Barkis, House Republican transportation lead from Olympia, was livid, blaming high state taxes, regulations and compliance costs for keeping Nichols Brothers Boat Builders from making a competitive offer.
Mr Barkis said Nichols Brothers’ bid “came in more than US$350M 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.”
Continued Mr Barkis: “Why is doing business here so expensive that even with a 13% in-state preference, a Washington shipyard couldn’t come close to securing a major state contract? That’s not a reflection on the capabilities of Nichols Brothers — it’s an indictment of the crushing taxes, regulations, wage mandates, and costly compliance burdens our state has layered onto local employers.”
Mr Barkis also criticised the governor — a Democrat — for his lack of transparency. “As recently as a few weeks ago, I was told no decision had been made. Then, without warning, the contract was announced,” he said. Mr Barkis told a local radio host that he only found out about the selection when he was asked to comment on the award by a reporter.
Besides newbuilds, Washington State is converting three other ferries to electric-hybrid propulsion, one of which, Wenatchee, has been completed. The conversion of two others has been delayed until after the 2026 World Cup.
