The ferry system has shrunk from 25 vessels in 2015 to 21 in 2025 because of retirements. Eleven ferries are more than 40 years old, including one that is 67 years old. State officials say Washington needs a fleet of 26 vessels to meet future service demands.

Eastern's contract to build the three ferries is valued at $714.5 million. When costs for owner-furnished equipment, construction management, Washington State Ferries crew training and contingency funding are included, the total project cost is about $1.15 billion, below the Legislature's $1.3 billion appropriation.

State officials said selecting Eastern over the competing Washington bidder is expected to save taxpayers about $360 million. They said the competing proposal would have totaled about $1.51 billion after additional project costs were included, exceeding the legislative appropriation by more than $200 million and limiting the state to building only two ferries.

The governor said he intends to use the savings to help fund a fourth ferry.