Todd awarded WSF ferry contract

Todd Shipyards Corporation (NYSE:TOD) reports that its wholly owned subsidiary, Todd Pacific Shipyards Corporation has been awarded a $114.1 million contract from Washington State Department of Transportation, Ferries Division ("WSF") for the construction of two 64-auto ferries with an option for a third.

As reported earlier, Todd was the sole bidder when WSF opened bids for the contract.

Todd is currently constructing the lead vessel in the new class to be used on the Puget Sound ferry route between Port Townsend and Keystone. The current award is for the construction of vessels two and three in the class.

As part of this award, WSF has an option for the construction of a fourth vessel in the class for $50.8 million, which must be exercised no later than May 31, 2011.

The contract will commence once Todd gets a notice to proceed from WSF.

The contract contemplates delivery of the second vessel in the class 18 months after the notice with the third vessel nine months after that delivery.

The competition to build the 64-auto ferry was open to all shipyards located in the state of Washington.

"The selection of Todd to build the ferries, especially when combined with our on-going work for the United States Navy, United States Coast Guard and commercial customers, looks like a win on several fronts," said Todd CEO Steve Welch. "Todd will be a very stable employer for at least the next couple of years, and in the process help train a new generation of trades people through our apprenticeship programs. We get the opportunity to build quality vessels for our state and earn a fair return in the process.