Governor Ferguson celebrates the start of construction on first new ferry in more than a decade, exercises option to build third vessel

Florida-based Eastern Shipbuilding Group will now build three new hybrid-electric ferries

PANAMA CITY, Fla. - Governor Bob Ferguson announced today that Eastern Shipbuilding Group began construction on Washington's first new ferry in 11 years, an important milestone in his pledge to reform and rebuild Washington's ferry system. The occasion will be marked by a ceremonial steel cutting event today at Eastern's shipyard in Panama City, Fla., to begin construction of the first new 160-vehicle hybrid-electric ferry.

The state contracted with Eastern to build two new ferries, with an option for a third vessel. Ferguson also announced today that he is exercising that option to bring a third new ferry to Washington's waters.

When he took office in 2025, Governor Ferguson inherited a ferry system in crisis. Washington's fleet is aging, with 11 ferries over 40 years old, and one that's 67. In 2015, Washington had 25 vessels. By 2025, we were down to 21 due to vessel retirements. Our ferry system needs 26 vessels to operate effectively into the future.

Before Governor Ferguson took office, cancelations were high, and crew retention was flagging. Governor Ferguson has prioritized rebuilding our ferry system, including working with the Legislature to preserve funding for these three new vessels.

Ferries are an essential part of the Puget Sound's transportation system. They are a lifeline to Washington's island communities. Washingtonians rely on our ferries to get to work, school and appointments. They are also an essential part of Washington tourism, most recently playing a pivotal role in moving World Cup travelers around Puget Sound.

Washington State Ferries leadership joined representatives from Eastern today in Florida for the ceremonial steel cutting ceremony marking the start of construction. Governor Ferguson had planned to attend, but canceled his trip due to the state's devastating wildfires.

"This is the first time in a decade that construction is beginning on a new ferry," said Governor Ferguson. "In the past decade, we lost four ferries to retirement. Today signifies a critical step in rebuilding our fleet with modern vessels that will allow us to provide more dependable service."

"Eastern Shipbuilding Group is proud to begin construction on these vessels and to partner with Washington State Ferries on one of the most important ferry modernization programs in the country," said Joey D'Isernia, CEO of Eastern Shipbuilding Group. "Our team is committed to delivering safe, reliable, high-quality ferries that will serve Washington communities for decades. Today's steel cutting is the next step in turning that commitment into three new vessels."

"After years of design and procurement, today's steel cutting marks an exciting moment where all of the planning becomes visible progress," said Steve Nevey, WSF Deputy Secretary of Transportation. "These new hybrid-electric ferries will help us restore the reliability and resilience our customers depend on while building a cleaner, more modern fleet for the future. We are pleased to move forward with Eastern Shipbuilding Group and look forward to delivering these vessels to the people of Washington."

There was a competitive bidding process for who would construct these new vessels. There were two bidders, Eastern, and a Washington state bidder. In July 2025, Governor Ferguson selected Eastern, whose bid was more than 30% lower than the alternative bidder.

Selecting Eastern saved Washington state taxpayers approximately $360 million.

Under the contract, Eastern will build three ferries for $714.5 million. There are additional costs for owner-furnished equipment, construction management, WSF crew training, and risk contingencies. This brings the total cost of the three vessels to $1.15 billion. This is considerably less than the $1.3 billion appropriated by the legislature.

The governor is committed to utilizing these savings to help fund a fourth ferry.

Applying the same additional costs for owner-furnished equipment, construction management, WSF crew training, and risk contingencies, the alternative bid would have cost taxpayers $1.51 billion. That bid would have exceeded the appropriation by more than $200 million. Consequently, Washington would only have been able to build two boats if Governor Ferguson accepted the alternative bid.

Eastern is scheduled to deliver the first boat in 2030, the second boat in 2031, and the third boat in 2032.

The last new vessel for Washington State Ferries, the Suquamish, began construction in May of 2015. It was delivered in 2018.

Washington businesses play an important role in maintaining our ferry system. The current state budget allocates $282 million for preservation and maintenance of ferries, which is performed by Washington state shipyards.

Making things happen for ferries

Governor Ferguson has made improving Washington's ferry system a priority of his administration.

Last year, we returned to full 18 vessel domestic service for the first time since 2019. Overall, the ferry system is moving passengers and reducing cancellations. For example, comparing summer 2025 to 2024:

• Reduced cancellations by nearly 70% (191, down from 600);
• Added 4,000 sailings; and
• Transported 500,000 additional passengers.

In addition, almost 99% of scheduled sailings operated in the San Juan Islands, up from 94% in 2024.

The Wenatchee, one of the largest ships in the fleet, returned to service as the largest hybrid-electric ferry in the country and the first to be converted.

Governor Ferguson has invested in crew hiring, retention and training. One example: Retention rates for deck hands improved from 66 percent in 2024 to 92 percent, as of November 2025.

Watch the steel cutting ceremony here: https://tvw.org/video/washington-state-ferries-press-conference-2026081066/?eventID=2026081066