GreenLight Manufacturing
Brief #2
Profile:
Vigor Shipyards
(formerly Todd Pacific
Shipyards of Seattle)
Location
1801 16th Ave SW - Seattle
Founded
1916 (Todd)
Employees
Variable; appx. 800 total (600
skilled trades) average in 2010
Industry Role
Vigor Shipyards performs a
substantial amount of repair
and maintenance work on
commercial and federal
government vessels and
provides new construction and
industrial fabrication services
for a wide variety of
customers. Its customers
include the U.S. Navy, the
U.S. Coast Guard, the
Washington State Ferry
system, NOAA, the Alaska
Marine Highway System, and
various other commercial and
governmental customers.
The Buzz
On the acquisition of Todd,
Vigor president Frank Foti
says, “Todd is Puget Sound’s
leading shipyard and the
combination of Vigor and Todd
4
WSF. "WSDOT Ferries Division (WSF) - Nation’s Largest Ferry System." Web.
Clean Energy Potential for Washington State
Ferries & Puget Sound Shipyard Manufacturing
Faced with an aging fleet,
looming budgetary issues,
and increased
environmental
regulations, Washington
State Ferries (WSF) has
undertaken efforts to
reduce emissions and
increase efficiency in the
vessels that serve the
ferry-going public. These
efforts have a significant
potential impact on the 3D Schematic of a Norwegian LNG ferry
way we build, maintain,
and operate ferries in Puget Sound. New, “greener” technologies
are on the horizon in the marine manufacturing industries. Marine
manufacturing in the Puget Sound region is well-poised to be on
the leading edge of green technology deployment for a major
public vessel fleet, with opportunities to create good skilled jobs
and new training opportunities not afforded by other areas of the
country.
Created in 1951, WSF is the largest ferry system in the United
States and the third largest in the world.4 In addition to serving
over 23 million passengers in Puget Sound per year, our ferry
system has been a key contributor to the vitality of our regional
shipyard manufacturing industries. In the past 25 years, four new-
construction ferries have been built in Seattle-area shipyards (with
two more new vessels currently underway or in planning). In that
same time period, nine additional vessels have been rebuilt in area
shipyards. Furthermore, our skilled marine manufacturing
will create the largest and workforce has and will continue to provide regular maintenance
most capable marine services and preservation to the 23 vessels in the overall ferry fleet.
company in the Pacific
Northwest…The combination
of resources and capabilities Beginning as early as 2014, the EPA Clean Diesel program will
will allow the combined require in Category 2 marine diesel engines (encompassing
companies to expand both the
engines used by WSF) significant reductions in Nitrogen Oxide
scope and capacity of their
ship repair and new (NOx), Sulfur Oxides (SOx), and Particulate Matter (PM) emissions
construction business.” through the use of off-engine technologies. WSF predicts these
Stephen Welch, former clean diesel technologies will result in significant operating
President and CEO of Todd expenditures.
said, “This transaction is a
testament to the excellent
work Todd has done to However, by transitioning the fleet to cleaner Liquefied Natural Gas
revitalize our business…We (LNG) propulsion, ferries could achieve similar NOx, SOx, and PM
believe that the addition of emissions to 2014 EPA Clean Diesel goals plus reduce Carbon
Todd’s products to Vigor will
Dioxide (CO2) emissions by 20%. WSF would also circumvent the
help create a stronger, more
diversified company with long- use of costly off-engine diesel technologies.5
term advantages for both
companies’ customers and Reductions in emissions harmful to our environment are not the
employees.”1
only benefit to LNG fuel. It is also a significantly less expensive
Recent Contracts and more efficient fuel. “Over the last few years, we have done all
Qty & Owner $ Est. the standard things such as reducing speed where appropriate,
Type Mil. Del.
1 car WSF 50.8 2011 improving the engines with the use of upgraded cylinder packs
ferry reducing emissions, using 5% bio-diesel and using only ultra-low
1 fastGolden 20.0 planned
ferry Gate sulfur diesel fuel,” according to WSF Chief Naval Architect Endicott
Bridge
1 car Wahkiakum In Fay. “The cost of LNG is significantly less than diesel fuel and
ferry County design should be considerably more stable from a price standpoint.”6 The
4 NuStar
barges Energy table below shows diesel/LNG fuel cost comparison for the
Source: MarineLog
Issaquah class ferry vessels:
Jobs Story
Gal/yr Cost/gal USD/yr Source
The shipyard has recently
completed two 64-car ferries. Diesel fuel 800,000 $2.50 $2,000,000 WSF cost
The Chetzemoka is has begun
LNG fuel 1,360,000 $0.83 $1,128,880 Vendor est.
service, the Salish is
undergoing sea trails, and the Savings/yr $871,200
shipyard holds a contract for a
Source: Washington State Ferries
third Kwa-di Tabil-class ferry.
It has also been working full-
steam repairing ships for the
We can look at Norway for another means of comparison to Puget
Navy and Coast Guard, like
last year’s $12.5 million Sound. Norway’s makeup includes some 2,000 inhabited islands
contract to repair a Coast and countless narrow fjord settlements cut into a jagged coastline.
Guard icebreaker the length A major ferry system transports people and goods between the
of 1 ½ football fields. In fact, islands and across the fjords. Ample sources of clean and cheap
there is so much work on Navy

1
Vigor Industrial. Todd Shipyards Corportation to Be Acquired by Vigor Industrial LLC. 23 Dec. 2010. Web.
5
The Glosten Associates. "LNG Use for Washington State Ferries." Web.
6
"Endicott Fay." Telephone interview. 28 Feb. 2011.
ships from the Bremerton and
Everett naval shipyards—half
of the company’s income
comes from repairing Navy
ships—that the company has
satellite operations there.2
Production workers at the
shipyard are dispatched
directly from several Metal
Trades union hiring halls,
including:
 Boilermakers Local 104
 Shipwrights Local 1184
 Sheetmetal Local 66
 Painters Local 300
 Machinist Local 79
 Pipefitters Local 32
 Electricians Local 46
 Shipscalers Local 252
 Operating Engineers Local
302
 International Union of
Operating Engineers
Local 286
 Warehousemen Local 117
 Teamsters Local 174
domestic natural gas and high emissions taxes drove the initial
conversion of the Norwegian car ferry fleet to LNG in 2000. Today,
Norway operates the largest fleet of clean LNG-fueled ships in the
world. Based on the success of LNG ferries, Norwegian commercial
supply vessels and coastal carriers have also made the LNG
conversion, providing critical support to the Norwegian marine
manufacturing industry.7
To build and maintain a 21st Century ferry system for Washington
is no easy task, though. The elimination of the motor vehicle
excise tax a decade ago has left capital expense shortfalls on WSF.
Meanwhile, the ferry fleet has aged a collective 231 years in that
time. Today, the average age of the WSF fleet is 35.6 years. WSF
will need to build 15 vessels over the next 30 years in order to
retire existing vessels when they reach the mandatory 60-year
cutoff age.8 Even though there are significant and demonstrable
long-run operational cost savings for LNG prospects, upfront costs
of $8.3 million per vessel for LNG engines (compared with $2
million for diesel engines) compound the capital funding situation.
There are also additional startup costs associated with design
revisions, regulatory modifications, and fueling infrastructure
needed in order to implement an LNG ferry program.9

The company and its unions

sponsor Washington state-
approved apprenticeship
programs. In 2010, the
company was the recipient of
a $1.9 million Maritime
Administration grant to
stabilize and expand these
programs. Apprentices start
at 70% of the current journey
rate of pay. Every six months
(1000 hours) of work,
apprentices receive a 5%
increase in pay. Upon
completion of the 3-year
apprenticeship program, they
receive the journey rate of
pay. The current ferry
program requires 12%
apprentice utilization3
But emissions regulations, coupled with the ever-growing cost and
instability of petroleum means that the cost of operating diesel-
powered ferries will continue to exacerbate the longstanding
financial challenges of developing a world-class ferry vessel stock.
Observers point out that a delay in ferry replacement is an
effective cut in service, an unpopular proposition amongst those
who rely on ferry service in Western Washington. New financing
tools and models for ferry capital investment may need to be
looked at closely by state government, as a major state
transportation funding package is expected to rise to the forefront
in 2012. Bold steps toward next-generation technologies for the
ferry system would improve our impact on the environment while
saving operating costs. New training opportunities would further
differentiate our skilled marine manufacturing workforce and the
next generation of shipbuilders to work with green technologies not
yet being deployed elsewhere. The current Kwa-di Tabil-class

2
Gilmore, Susan. "Pacific NW | Seattle's Todd Pacific Shipyards Stays Afloat in a Sinking Industry | Seattle Times Newspaper."
The Seattle Times | Seattle Times Newspaper. 20 Feb. 2010.
3
"Buls Eye - Shipshape in Seattle - WorkBoat.com." Web log post. WorkBoat.com - Maritime News, Commercial Marine and
Dayrates. 1 Mar. 2010. Web.
7
Glosten.
8
San Juan County. “Ferry Fact Sheet.” Web.
 program of three new 64-car ferries is both ahead-of-schedule and
under-budget.10 The success of current and past ferry production
programs in Washington points to a shipbuilding industrial and
workforce capacity in our state that is well-equipped to effectively
Related Job
deliver upon the “green” challenges and opportunities that lay
Titles before us in marine transit.
 Shipfitter
 Welder
 Burner
 Rigger Fleet of LNG-fueled Ferries Reduces Pollution
Top
 Dock rigger What next for Norwegian Shipbuilding Industry?
Headlines
 Shipwright Seattle's Todd Pacific Shipyards stays afloat in a sinking
industry
 Painter
MARAD Announces ARRA Small Shipyard Grant
 Inside machinist
Recipients
 Outside machinist
Rolls-Royce power for LNG-fueled ferry
 Tool room keeper Wash. Senate passes $9B transportation budget
 Marine pipefitter
 Marine electrician Washington State Ferries Select
www.wsdot.wa.gov/ferries
 Shipscaler Organizations
 Crane operator
Puget Sound Metal Trades Council to Watch
http://pugetsoundmetaltradescouncil.com/
 Stationary engineer
Vigor Industrial, LLC
 Warehousing http://vigorindustrial.com/
 Drivers
Rolls Royce Marine
www.rolls-royce.com/marine/

Wärtsilä Marine Solutions

www.wartsila.com

Shipbuilders Council of America

www.shipbuilders.org

“The Worker Center, AFL-CIO is an equal opportunity

employer and provider of employment and training
services. Auxiliary aids and services are available upon
request to individuals with disabilities.” 8

9
Glosten.
10
"WSF: New Ferries on Time, under Budget." Web log post. Washington State Senate Democrats. Web.