Arc Expands into the Commercial Sector with Fast Track of First Electric Tug Boat

Servicing the busiest port in the U.S., Arc's first retrofitted tug boat is poised to save operators up to 50% compared to diesel vessels, setting a new standard for marine power systems to modernize today's vessels

LOS ANGELES, April 17, 2025 /PRNewswire/ -- Arc Boat Company, a startup manufacturing high-performance, fully electric boats from its headquarters in Los Angeles, today announced its entrance into the commercial sector. In partnership with a West Coast shipyard, Diversified Marine, Inc., Arc will retrofit a 26 ft tugboat for use in the Port of Los Angeles.

The Port of Los Angeles is racing to be zero-emission by 2030 and yet is populated with antiquated tugboats that are expensive, inefficient, and highly polluting. Arc is helping America regain its leadership in maritime technology as it introduces the first of many modern vessels that are more capable, cleaner, and built domestically. This workboat is a first step towards modernizing the busiest container port in the Western Hemisphere.

"At Arc, our mission has always been to electrify the marine industry. This is not just an environmental initiative — it's America's best shot at reclaiming its leadership in maritime technology," said Mitch Lee, co-founder and CEO of Arc. "U.S. shipyard throughput has been declining since WWII, and China now controls nearly half of the global shipbuilding market. We must adopt modern technologies to re-establish maritime exceptionalism. This partnership is a critical first step towards doing just that."

In recognition of the importance of shipbuilding, the U.S. government has announced a flurry of new incentives to revive domestic capacity, including the introduction of both a dedicated White House Office of Shipbuilding and tax incentives for domestic ship yards. Arc's first step in electrifying workboats has the power to not only create maritime jobs but also ignite an export industry. Historically, U.S.-built diesel boats have been substantially more expensive to create than foreign-built vessels, making them nearly impossible to sell overseas.

"Tugboats are a cornerstone of the economy that enable cargo ships to operate at ports," said Kofi Asante, VP of Business Development at Arc. "The short, but high power requirements of a tugboat make it a great fit for electrification which can drive efficiencies at the port." By adopting modern powertrains and leveraging software, Arc can re-establish American leadership in maritime and export superior products across the global market — all while improving the safety, uptime, and operating profits of the vessels.

Arc's Los Angeles headquarters is set up to quickly design, build, and integrate modern vessels. Arc is now underway on its first commercial vessel, a truckable tugboat that hardens the underlying technology, before proceeding with work on larger vessels later this year.

"As the backbone of port logistics, workboats are a crucial component to the shipping industry. It's time to bring them into the modern age," said Frank Manning, President of Diversified Marine, Inc. "With a partner like Arc, we will now be able to set the bar for the future of American ports, and truly show the benefits of what clean maritime technology can achieve."

For more information about Arc and its partnership with Diversified Marine, Inc., please visit: arcboats.com.

About Arc

Arc is building the future of boating with high-performance, fully electric boats that deliver power, precision, and zero emissions. Founded in Los Angeles in 2021 by former aerospace and automotive engineers, and backed by top-tier investors, Arc is on a mission to electrify the marine industry — from recreational boats to commercial vessels. With cutting-edge technology and a vertically integrated approach, Arc is redefining what's possible on the water.

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SOURCE Arc Boat Company