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Dunleavy Signed Alaska Railroad Bonding Legislation To Fund New Seward Dock And Terminal - Radio Kenai
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Gov. Dunleavy Signed Alaska Railroad Bonding Legislation To Fund New Seward Dock And Terminal

Peyton Hernandez

Gov. Mike Dunleavy signed legislation (HB 65) granting the Alaska Railroad Corporation (ARRC) the ability to issue up to $135 million in revenue bonds to fund the construction of a new passenger dock and terminal facility in Seward.

 

Picture Courtesy: Seward, Alaska

 

ARRC’s existing Seward Passenger Dock and terminal facility dates back to the mid-1960s.

 

Gov. Dunleavy said the bill demonstrates how state government can spur economic development and growth without impacting state finances. “The new cruise ship dock in Seward will maintain Alaska’s status as one of the world’s premier tourism destinations.”

 

ARRC revenue bonds have no recourse to the state, and no state money will be used to finance the dock.

 

ARRC’s bonds will be secured by a 30-year agreement with anchor tenant Royal Caribbean Group, which guarantees a minimum of 140,000 guests annually. The port improvement fee assessed to these guests will fully cover the bond debt repayment.

 

“We’re excited to advance this needed project with the strong support of the Governor, the Legislature, and the City of Seward,” said Bill O’Leary, President and CEO of ARRC. “The existing dock has driven economic activity for decades but is at the end of its useful life. House Bill 65 will allow the Railroad to make an investment in replacing this public infrastructure that will be paid for by the private industry it serves and bring economic benefits to communities across Southeast, Southcentral, and Interior Alaska as we ensure cross-Gulf cruise ships can continue to dock in Seward.”

 

The new floating barge dock with a double-berth pier will be 748 feet long and 100 feet wide and can accommodate Quantum-class cruise ships. ARRC will own and operate the facility as an open dock that other cruise lines can use.

 

In 2024, over 205,000 cruise guests traveled through the Seward Passenger Dock.

 

The 2025 cruise season will operate normally at the existing dock in Seward. In fall 2025, the old dock will be demolished, and the new dock will be fully constructed and installed in time for the 2026 summer cruise season.

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