Anchorage Assembly Approves $1.1B Bond for New Port Cargo Terminal
Photo Credit: Alaska Business
The Municipality of Anchorage is positioned to finance and construct its largest capital project since the unification of the city and borough governments fifty years ago. The Anchorage Assembly held a special meeting on Wednesday to approve two significant milestones for the Port of Alaska Modernization Program (PAMP). One unanimous vote authorized a $1.1 billion revenue bond, and a second unanimous vote approved a construction contract for the city-owned port’s Cargo Terminal 1.
Journey of a Decade
Assembly Vice Chair Meg Zaletel says, “$1.1 billion is a big number, and it’s essential. The port is one of the most significant pieces of infrastructure in the state, and thanks to the strong partnerships we’ve built over many years, the municipality is stepping up to ensure this vital infrastructure works and remains resilient long into the future.”
With the approval of the construction contract, Cargo Terminal 1 is scheduled for completion by the end of 2029. PAMP has already resulted in a new Petroleum and Cement Terminal and a new port administration building. Stabilization of the north extension is underway, and stakeholders have reached consensus on designs for Cargo Terminals 1 and 2.
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“If you’ve been on the journey of the port for the past decade, you know these two items represent significant milestones,” Zaletel adds.
Since taking office last year, Mayor Suzanne LaFrance has directed her team to refresh PAMP’s financing plan, retooled the request for proposals, reopened the contract to bidders, and worked closely with interested parties to address questions and concerns. With the Assembly’s unanimous approvals, the financial architecture to support the project is in place, and the $807 million contract to construct Terminal 1 is in the hands of the builders, a joint venture of Manson Construction and Michels Corporation.
Pacific Pile & Marine had also bid for the project. The mayor rejected the bid, which had been accompanied by a $22 million bid bond, after the city was told the check was not certifiable.
LaFrance says, “As a municipality, the port is the most important piece of infrastructure we steward. As the most cost-effective way to get food and supplies to the vast majority of Alaskans, with a key role in national defense and emergency preparedness, responsible management of this project is critical.”
The Don Young Port of Alaska handles about half of all in-bound Alaska cargo.
The contract for Terminal 1 calls for the demolition of existing terminal structures and replacement with a new pipe-pile-supported concrete deck, 870 feet long by 120 feet wide, with mooring and berthing features and crane rails to support new ship-to-shore cranes.
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