UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
Current Report

Commission File Number 1-5109

TODD SHIPYARDS CORPORATION
(Exact name of registrant as specified in its charter)

DELAWARE                       91-1506719
(State or other jurisdiction of    (IRS Employer I.D. No.)
  incorporation or  organization)


1801- 16th AVENUE SW, SEATTLE, WASHINGTON   98134-1089
(Street address of principal executive offices - Zip Code)

Registrant's telephone number: (206) 623-1635





Item 5.  Other Events

Todd Shipyards Corporation (the "Company") announced it has
entered into a 30-year agreement with an insurance company
that will provide the Company with broad-based insurance
coverage for the remediation of the Todd operable units at
the Harbor Island Superfund Site.  The Company has been
working with the EPA and other federal and state agencies
since 1986 on the remediation of the site where the Seattle
shipyard is located.  The subject insurance agreement will
provide coverage for the known liabilities in an amount
equal to and exceeding the Company's current booked reserves
of $15.9 million.  Additionally the Company has entered into
a 15-year agreement for coverage of any new environmental
conditions discovered at the Seattle property that would
require environmental remediation.

Item 7.  Financial Statements and Exhibits

(c) Exhibits

  28-1 Press Release dated January 17, 2001.



SIGNATURES


Pursuant  to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.


Dated:  January 17, 2001.


______________________________
By:  Michael G. Marsh
On Behalf of the Registrant as
Secretary and General Counsel