UPDATED | State orders new ferry; Nichols to benefit

The state will order one new ferry for the Keystone-Port Townsend run, state Sen. Mary Margaret Haugen said Wednesday.

And Nichols Brothers Boat Builders of Freeland, which a week ago laid off 30 employees, will get a piece of the action.

“We’re going to build a ferry. We’re moving forward with one boat,” Haugen, chairwoman of the Senate Transportation Committee, told members of the Island County Council of Governments at its meeting in Coupeville.

The state will likely build two additional ferries of the modified Island Home design, Haugen added, and push back construction of new 144-vehicle-capacity ferries.

Todd Pacific Shipyards in Seattle, in conjunction with Nichols Brothers, originally submitted a bid to construct two new 64-car high-speed ferries for the Keystone-Port Townsend run.

The bid was $65.5 million for one ferry and $124.4 million for two.

The state originally projected $84.5 million for two boats.

The bid, the only one submitted, was opened by ferry system officials on Nov. 13.

“The cost of the new boat is a lot, there’s no question about it,” Haugen told the council, which included representatives from the city of Langley, the ports of South Whidbey and Coupeville and Island County.

She said Gov. Christine Gregoire had concerns about the state receiving just one bid, but Haugen noted the state would face other costs if jobs continue to be lost in Washington. Having new vessels built here means jobs, she said.

“If we were to build out of state, it would cost you $2 million to bring it here,” Haugen added.

The state is looking for a modified version of the Island Home design.

Matt Nichols, managing director for business development, said Friday that Nichols Brothers’ share of the contract will be about $6 million, but that the company will negotiate for a bigger piece of the job.

“We originally said that was all we could handle, because we were expecting another job,” Nichols said. “Then we didn’t get the other job.”

The Freeland shipyard is expected to build the top section of the vessel, including the entire passenger deck and galley, and the pilot houses and machinery compartments for the heating and air-conditioning systems.

“It should be a good job,” Nichols said. “Any work right now is good work. When you get a job for sure, it’s hallelujah, let’s go.”

Nichols said there would be three or four months of engineering work before additional employees could be added to the project.

The Island Home was designed by the Elliott Bay Design Group of Seattle and built by VT Halter Marine Inc., of Moss Point, Mass. The first state vessel is expected to go into service in April 2010, state officials said.

The state Department of Transportation ordered new ferries for the Keystone-Port Townsend run after four 80-year-old Steel Electric vessels were pulled from service a year ago by Washington State Ferries because of safety concerns.

Haugen said Wednesday the state may eventually build additional Island Home ferries.

“We will probably build two more of these boats. We probably will slide the 144s,” she said. “The recommendation is that we don’t need the 144s right now.”

It’s good news for the Keystone-Port Townsend route.

“That will make this area, this run in particular, very secure,” Haugen said, adding that cuts in service on some routes is currently being discussed in light of the state’s $5.1 billion budget deficit.

Nichols Brothers said the recent layoffs were due to a California buyer’s plan to acquire and rebuild existing vessels rather than purchase a new vessel from the Freeland firm.

Nichols Brothers had maintained its employment level to allow for training in anticipation of winning that ferry contract.

The Golden Gate Bridge, Highway and Transportation District has been looking to buy new high-speed passenger ferries since June 2006. In July, Nichols Brothers submitted a bid of $18.6 million to build one of the ferries.

However, the district decided to buy two used ferries, the M/V Snohomish and M/V Chinook, from Washington state for $4 million.

The Golden Gate district also plans to spend approximately $19.1 million to refurbish the Washington ferries.

Nichols said the company would bid on a portion of the refurbishment contract when it is announced.