Seward’s roughly 60-year-old cruise ship dock is on track to get a $137 million makeover. That’s after the Alaska State House passed a bill this week that ups the amount of money developers have to work with. Stakeholders say the project will revitalize aging infrastructure and expand regional economic opportunities.
Where the frigid waters of Resurrection Bay lap at the edge of Seward, two strongholds of Alaska tourism meet. The iconic blue and yellow Alaska Railroad reaches the end of its tracks in the small town, which embraces its slogan of “Alaska Starts Here.” It’s also the starting point for visitors coming by sea.
Everyone seems to agree that the Alaska Railroad’s existing cruise ship dock and terminal has seen better days.
“The dock is clearly ending, nearing the end of its useful life,” Jane Pierson told members of Alaska’s House Finance Committee last week. She works for the Seward Rep. carrying the bill to up the debt limit.
“In over 50 years of use, the dock’s pile foundation has corroded, and there are now limits on the dock’s remaining useful life and weight restrictions are being implemented,” she said.
If it passes, the bill would more than double the amount of bond debt the Alaska Railroad Corporation is allowed to take on to get the project done, up to $130 million. The corporation needs legislative approval to sell any bonds, kind of like how a city or borough needs voter approval on bond initiatives. Lawmakers OK’d an initial $60 million for the project in 2022.
Alaska Railroad CEO Bill O’Leary says the project’s benefits would go beyond Seward. The corporation estimates more than 200,000 cruise ship passengers visited Seward last year, with many adding on to trips in other parts of the state.
“It is not just a Southcentral project, not an interior project – but it does immediately impact both those sectors – but it also has a significant impact to the Southeast market, providing an avenue for cruise ships to come across the Gulf,” he said.
And Seward City Manager Kat Sorensen says the terminal is designed for year-round use, which makes it appealing to the city and community for off-season access.
“Over the past few years, as this project has been explored and discussed around town, I already hear the Seward community planning and scheming up amazing ideas to work with the railroad, hosting events and community gatherings in the tourism off season,” she told lawmakers.
She says the railroad’s plans also dovetail nicely with a $46 million federal grant the city got last fall to add shore electricity to the dock.
The bill currently moving through Juneau actually made it across the finish line last session. But there was a hiccup. It was one of five bills passed by lawmakers after midnight on the last day of the session. Pierson says the bill’s timely passage this session is imperative to ensure construction can continue as planned and so Royal Caribbean Cruises can honor trips it’s already started selling.
“They've already started selling bookings on the ships,” Pierson said. “Just by having this bill vetoed last year, it really put a stop in the whole project.”
Royal Caribbean is an important partner in the project. The company would enter into a three decade agreement and become the anchor tenant at the dock, which is designed to the specifications of the company’s ships. Royal Caribbean will then use its dock revenue to pay the debt off.
Preston Carnahan is the company’s regional vice president of destinations. He says the new dock will be able to accommodate the Royal Caribbean’s Quantum class of ships, which are the largest sailing in Alaska.
“We're excited, as a visitor to your state, to continue to bring a lot of happy guests on our ships,” he said.
If all goes according to schedule, construction on the new dock will start fall of 2025 and be completed next spring. Now that the bill has cleared the State House, it heads to the Senate. It’s scheduled to be taken up by members of the Senate Finance Committee on Monday morning.
