Los Angeles-based startup Arc Boats, best known for its sleek electric sport boats, has signed a $160 million contract with tug and barge operator Curtin Maritime to build hybrid-electric tugboats for the Port of Los Angeles.
The deal covers eight ship-assist tugboats, priced at about $20 million each, with delivery expected in 2027. Arc will build the vessels in partnership with Snow & Co. shipyard. Ship-assist tugs are critical to guiding massive cargo ships in and out of major ports, but they are also among the most polluting marine vehicles, often powered by massive diesel engines.
Arc CEO and co-founder Mitch Lee said the company’s hybrid-electric system replaces those heavy diesel engines with a 6 MWh battery and electric motors capable of producing over 4,000 horsepower. A smaller diesel generator will serve as backup for longer trips or when charging infrastructure is unavailable.
According to Lee, this approach could slash emissions at the LA port, where only about 20 such tugs are currently in service. Beyond environmental benefits, the design also saves space by eliminating large exhaust stacks, potentially allowing for bigger crew quarters and better visibility in the wheelhouse.
Arc has previously focused on all-electric sport boats like the Arc One and Arc Sport, but the company sees tugboats as a massive opportunity to modernize maritime workhorses while helping operators cut costs on fuel and maintenance.
Related: Mercor Pursues $10Billion Valuation In New Funding Round.
“This is an incredibly important part of the economy,” Lee said. “All of this commercial activity is held together by these tractors in the water that are pushing and pulling ships into position. We have the opportunity to modernize them in a really compelling way.”
