With the introduction of authorizing legislation in Juneau, the Alaska Railroad Corporation is following through on a proposal to replace and construct a new passenger dock in Seward, which continues a critical transportation link to Interior Alaska and the Southeast Alaska cruise industry network.
Senate Bill 218, sponsored by Senate President Peter Micciche and companion legislation House Bill 366, sponsored by the House Transportation Committee, chaired by Representative Grier Hopkins, will authorize ARRC to use the railroad’s bonding authority to raise $60 million for the project.
Micciche said:
“The opportunity to finance this critical piece of Alaska’s infrastructure without having to use state dollars is vitally important. ARRC has its own bonding powers and none of the $60 million to be raised for the project will be carried by the people of Alaska. This dock is essential to a valuable part of my district, Seward, the Kenai Peninsula, and frankly, all of Alaska’s tourism industry.”
Hopkins said:
“While this dock will be built in Seward, thousands of visitors who arrive and depart from there spend time in Fairbanks. It is very important to my constituents that we keep every option open for people to visit Alaska.”
Royal Caribbean Group, who has been a partner of the Seward Cruise Ship Terminal, is finalizing a multi-year berthing agreement with ARRC, which features an annual revenue guarantee. The group has three brands calling upon Alaska this 2022 cruise season – Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
Joshua Caroll, Vice President, Destination Development, Royal Caribbean Group said:
“Our cruise ship brands have enjoyed operating out of Seward and working with ARRC for more than 20 years, as evidenced by our deep community relationships and support of local businesses. Guests view Seward as a great destination to build Alaska vacation memories that last a lifetime. We applaud ARRC for taking the initiative to obtain legislative approval securing the financing necessary to rebuild the Seward dock and we have no doubt that better cruise facilities will lead to increased railroad visitors benefiting Alaska communities.”
ARRC President and CEO Bill O’Leary said:
“We appreciate the support of Senator Micciche, Representative Hopkins, Governor Dunleavy, and the City of Seward in moving this project forward. Seward has been the gateway for the railroad to bring people to Alaska for over 100 years. This new opportunity with Royal Caribbean Group will ensure we are able to show off Alaska to visitors for decades to come.”
The existing passenger dock, built in 1966, is owned and operated by ARRC. While currently safe to operate, the dock will reach the end of its functional life span soon and should be replaced within the next five years.
In 2019, nearly 230,000 visitors made their way across the passenger dock in Seward, more than 30,000 of which rode on Alaska Railroad ‘Cruise Trains’ along with thousands more who traveled further into the state as independent travelers.
Total project costs are estimated to be close to $80 million for the removal of the existing dock and terminal facility and construction of a new dock and facility. Revenue bond debt service will be met from dock user fees once the new dock is operational. The remaining costs will be paid through existing dock fees and ARRC capital funds.
NOTE: photo courtesy of the Alaska Railroad social media page.