Washington State Ferries brings decommissioned ferries back on market after contract termination

Washington State Ferries (WSF) has terminated purchase and sales agreements with Nelson Armas for the decommissioned Elwha and Klahowya vessels, putting them back on the market. In August, Armas attempted to move the ferries to Ecuador, but tow equipment malfunctioned in Puget Sound. Both boats were returned to WSF’s Eagle Harbor Maintenance Facility on Bainbridge Island.

“It’s in the best interest of Washington state, the public and WSF to sever ties due to multiple failures to meet contractual obligations and deadlines,” said WSF Assistant Secretary Steve Nevey.

WSF was not made aware of the concerns raised by the Wycliffe crew regarding poor living conditions and fear of intimidation until they were reported in the media. While Armas has denied these reports, WSF places a strong emphasis on seafarer welfare.

“As a career mariner who spent the early part of my career working on internationally flagged ships, seafarer welfare is deeply personal to me,” Nevey said. “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. We take these matters seriously and are committed to incorporating these considerations into our plans for decommissioned ferries in the future.”

Other potential buyers have already shown interest and WSF has begun engaging with these possible new owners.

WSF still owns the Elwha and Klahowya because they were not removed by the deadline mandated in the purchase and sales agreements. Under default terms of the contracts, Armas forfeits the $200,000 ($100,000 per vessel) paid for the boats as damages. WSF has used some of those funds to cover costs for removing leftover fuel from the ferries. The balance of those funds will be transferred into the Puget Sound Ferry Operations Account, which is consistent with past sales of retired vessels.

The sale of a third decommissioned state ferry, Hyak, is pending. More information will be provided when that transaction is finalized.

WSF hopes to sell and transfer these retired boats to free more dock space at its Eagle Harbor Maintenance Facility for planned and unplanned maintenance on its current fleet. Their departures will also save staff costs, as moving them requires a tugboat and a tow captain, taking a crew member away from WSF service.

The 144-car Elwha and Hyak are two of four Super-class ferries built in the mid-1960s. Elwha mainly served the Anacortes/Friday Harbor/Sidney, British Columbia, route before being retired April 8, 2020. Hyak, which was decommissioned June 30, 2019, was primarily used on the Seattle/Bremerton route and is now docked at Kingston terminal. The final two Super-class ferries, Kaleetan and Yakima, are still in service.