Bids to build new plug-in Washington state ferries come in high • Washington
Washington's Ferry System Faces Costly Bid Dilemma
Washington state officials are grappling with unexpected costs following the opening of bids for up to five new hybrid electric ferries. With a budget of approximately $1.3 billion set aside for new vessels and charging infrastructure, lawmakers are now questioning the feasibility of acquiring all five ferries due to rising prices. The low bid from Eastern Shipbuilding Group has raised concerns about the overall affordability and the future of the aging ferry fleet.
Budget Constraints and Bid Analysis
On Monday, state House Transportation Committee Chair Jake Fey expressed skepticism about the ability to fund all five new hybrid electric ferries, stating, “I don’t see how you get to five. There’s money for three on a good day.” The Washington Legislature had previously allocated funds to modernize the ferry fleet, which is crucial for reducing air pollution and enhancing reliability. The aging vessels have been a persistent issue, prompting the shift towards battery-powered options.
The Eastern Shipbuilding Group from Panama City, Florida, submitted the lowest bid of $251 million for the first of the proposed 160-car ferries, aligning closely with the state engineer’s estimate. In contrast, Nichols Brothers Boat Builders from Whidbey Island presented a significantly higher bid, even after applying a 13% credit designed to encourage local construction. Notably, neither bid included the costly hybrid electric powertrains, which the state intends to procure separately.
As the Washington State Ferries (WSF) agency reviews the bids, it faces pressure to consult with the governor’s office and key legislators to determine what is financially viable. The anticipated delivery date for the first new ferry is set for 2029, leaving officials with limited time to navigate the complexities of funding and construction.
Challenges in the Shipbuilding Industry
The rising costs of ferry construction reflect broader challenges within the U.S. shipbuilding industry. Rep. Greg Nance, a Democratic legislator from Bainbridge Island, highlighted the impact of a declining shipbuilding sector, noting that the state is “swimming upstream” in its procurement efforts. He emphasized the need for increased support for domestic shipbuilding to regain competitiveness lost over the past five decades.
Historically, the costs of ferry construction have nearly doubled in the last seven years. The most recent ferry, the 144-car Suquamish, was delivered in 2018 for approximately $122 million. As Washington State Ferries pivots towards electrification, the reliability of the existing fleet has diminished, further complicating the situation.
While some lawmakers advocate for a return to cheaper diesel options, WSF officials warn that such a shift would require a complete redesign and could delay the acquisition process by up to two years. The agency is committed to moving forward with hybrid designs, which promise significant reductions in fuel consumption and greenhouse gas emissions, provided they are charged with green electricity.
As Washington State Ferries navigates these turbulent waters, the future of its fleet remains uncertain. With 21 vessels currently in operation, the agency aims to expand its fleet to 26 to ensure reliable service across all routes. However, the hefty bids and ongoing challenges in the shipbuilding industry may hinder these plans.
