Washington State Ferries Cancels Sale of Retired Vessels

Washington State Ferries announced it has canceled the sale of two retired vessels after the buyer failed to meet its contractual obligations and left a tugboat crew abandoned in Puget Sound.

Sold in August for $100,000 apiece, the decommissioned WSF ferries Elwha and Klahowya had been sold to Nelson Armas, who has gained approval from the U.S. Department of Transportation's Maritime Administration (MARAD) to transport the out-of-service vessels by tow for recycling at a steel mill facility in Ecuador.

But when Armas attempted to move the ferries to Ecuador, tow equipment malfunctioned in Puget Sound, and both ferries were returned to WSF’s Eagle Harbor Maintenance Facility on Bainbridge Island.

In addition, one of the tugboats that Armas performed to perform the tow, the 60-year-old Wycliffe, was reported to have substandard crew conditions on board, including inadequate food, limited access to medical care and insufficient water supplies. The crew had reportedly been left unpaid and abandoned, though Armas has denied the claims.

“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, a division of the Washington State Department of Transportation, said in a statement that it was not until media reports surfaced that it was made aware of the concerns raised by the Wycliffe crew regarding poor living conditions and fear of intimidation.

“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.”

Because the ferries were not removed by the deadline mandated in the purchase and sales agreements, WSF maintains ownership of the vessels and Armas forfeits the $200,000 paid for the boats as damages. WSF said it 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.

WSF said it has engaged with other interested buyers as it works toward new agreements to sell the retired ferries and free up dock space at its Eagle Harbor Maintenance Facility for planned and unplanned maintenance on its current fleet. Additionally, the sale of a third decommissioned state ferry, Hyak, is pending, WSF said.

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.

Built in 1958, the 87-car, Evergreen State-class Klahowya mainly served the Fauntleroy/Vashon/Southworth route. It moved to the San Juan Islands interisland run in 2014. When Klahowya was decommissioned July 1, 2017, sister ship Tillikum replaced it on the route.