Washington State Ferries terminates sale of Elwha and Klahowya, gets $200,000 anyway

The Elwha and Klahowya are back on the market after Washington State Ferries (WSF) terminated purchase and sales agreements with Nelson Armas for the decommissioned vessels. The decision follows multiple failures to meet contractual obligations and deadlines.

In August, Armas attempted to move the ferries to Ecuador, but tow equipment malfunctioned in the Puget Sound. Both boats were returned to Eagle Harbor Maintenance Facility on Bainbridge Island, where they are moored. Armas had agreed to buy the ferries for $100,000 each. As damages, Armas forfeited the $200,000 paid for the boats.

“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,” WSF Assistant Secretary Steve Nevey said.

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WSF was not informed of the tugboat Wycliffe crew’s concerns about poor living conditions and fear of intimidation until they were reported in the media. The Wycliffe was to pull the ferries out of Puget Sound. Although Armas has denied these reports, WSF emphasizes 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.”

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

The Elwha, a 144-car Super-class ferry built in the mid-1960s, primarily operated on the Anacortes/Friday Harbor/Sidney, British Columbia route before its retirement on April 8, 2020.

The Klahowya, an 87-car Evergreen State-class ferry built in 1958, mainly served the Fauntleroy/Vashon/Southworth route and was decommissioned on July 1, 2017.

WSF still owns the Elwha and Klahowya because they were not removed by the deadline mandated in the purchase and sales agreements. WSF has used some of the penalty 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, 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.

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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: moving them requires a tugboat and a tow captain, taking a crew member away from WSF service.

WSF is the largest ferry system in the U.S., safely and efficiently carrying tens of millions of people a year through some of the most majestic scenery in the world.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X and email him here.