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<< Previous   of   Next >>   ADVERTISEMENT   ADDITIONAL ITEMS • Steel Electric Ferries Disposal Report ( PDF)   Related Stories • Shipbuilder can't sue state over ferry bids 8/15/08 • Alabama officials hope Air Force tanker award stands 6/19/08 • State makes deal for Keystone-Port Townsend ferries 4/28/08 • State may not seek new bids for Keystone-Port Townsend ferry 4/25/08 • State to solicit new bids on a 50-car ferry 4/21/08 • State rejects bid for new Whidbey-Port Townsend ferry 4/3/08 • Reviving rusted 80-year-old ferries not an option, Hammond says 4/1/08 • Old ferries at heart of Martinac's feud with state 3/3/08   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Wednesday, June 4, 2008 Ferries could be sold for scrap By Scott North Herald Writer SEATTLE -- Four aging state ferries may be headed to the scrap yard. Washington State Ferries on Monday began advertising its four Steel Electric-class ferries as being up for sale to state agencies, local communities and nonprofit organizations. "After that, if they don’t sell, we will post them on eBay," David Moseley, the state's assistant transportation secretary in charge of the ferry system, said in an update posted on the agency's Web site. State lawmakers earlier this year passed legislation ordering the ferry system by June 1 to "sell, be in the process of selling, or otherwise dispose of" the 81-year-old vessels. The ferry system last week sent lawmakers an update on options (click to see PDF), including selling the ferries for scrap. The steel in the old boats has a scrap value of up to $475,000, but the ferries still possibly could find buyers interested in using them to transport passengers outside the U.S., according to the report. The ferry system is recommending that the boats be sold for no less than $350,000 each. Some have been suggesting that the Steel Electrics be repaired and pressed back into service. The ferry system report says that is not an option, in part because Coast Guard permission to operate the vessels has expired. None of the Steel Electrics has ever met federal safety standards for watertight compartments, in effect since the 1950s. Until November they had operated with Coast Guard waivers. State Transportation Secretary Paula Hammond tied up the vessels Nov. 20 after close inspection of the Quinault found extensive corrosion in the hull. The state initially thought repairs could be made in hopes of squeezing out a few more years of service. Work was stopped in mid-December after engineers determined nearly half of the Quinault's hull plating was so rusted it needed to be replaced at a cost of $8 million. The state spent close to $1 million prepping the Illahee for the same sort of close inspection. When work stopped, engineers estimated repairs could cost more than $5 million. No repairs were attempted on the Klickitat or the Nisqually. Even though the certificates of inspection have expired, Lt. Cmdr. Todd Howard, chief of vessel inspections for the Coast Guard in Seattle, said in late May that the expiration in itself would not pose a barrier to reviving the Steel Electrics. If inspection found less than 25 percent of the hull steel on those vessels in need of replacement, it is possible the ferries could be returned to service without major modifications, Howard said. He also said that ferry officials know how much money the state has available for investing in repairs. Moseley said spending more money on the Steel Electrics would not be a prudent use of state funds, and that there is no reason to believe the other boats are in any better shape than the Quinault. The ferry system earlier was approached by officials in Port Townsend and the Washington Scuba Alliance about the possibility of turning one or more of the old boats into tourist attractions. Port Townsend leaders have talked about tying up one of the boats as a waterfront attraction. The divers would like to see one or more of the Steel Electrics scuttled somewhere in Puget Sound to create an underwater park. Those ideas are both mentioned in the ferry system's report to the Legislature. The report also says that ferry officials on May 15 transferred to other vessels in the fleet obscure leases that for two decades turned the Steel Electrics into floating tax shelters. Ferry officials initially thought the state would have to pay at least $3 million to compensate two investment companies that since the 1980s have held Safe Harbor Leases on four Steel Electric-class ferries. Ferry officials are focusing on building new boats to replace the Steel Electrics. They hope to seek bids by August or September for constructing new Island Home-style ferries, a design that is capable of carrying up to 80 cars. The ferry system has posted answers to questions about its plans for the Island Home-class ferries here: www.wsdot.wa.gov/Projects/Ferries/NewVessel/FAQ.htm. Reporter Scott North: 425-339-3431 or north@heraldnet.com

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