1. HOME
  2.  | 
  3. Featured
  4.  | Alaska Marine Highway System Board Works on Long-Range Plan

Alaska Marine Highway System Board Works on Long-Range Plan

by | May 7, 2025 | Featured, Government, News, Transportation

Two Alaska Marine Highway ferries pass in Lynn Canal, north of Juneau.

Photo Credit: Dimitra Lavrakas

The Operations Board of the Alaska Marine Highway System (AMHS) is looking ahead twenty years to update the long-range plan for state ferries. The board met April 25 via an online meeting to discuss the current draft, which states that it is a “living document that, by statute, is to be updated at least every five years.”

“We’re trying to find a sweet spot to start the long-range plan,” said Board Chair Shirley Marquardt in what was her last meeting before she moves Outside. “Any decisions contain risk, but our goal is stability and financial stability.”

Seeking Long-Term Stability

The board has some broad gestures in mind. By bringing on new vessels as old ones retire, AMHS hopes to solidify existing service to towns and villages, add new connections, and achieve a longtime goal: reviving a Canadian stop.

Current Issue

Alaska Business Magazine January 2026 cover

January 2026

The stop in Prince Rupert, British Columbia, depends on the state receiving a federal waiver for renovations to the AMHS terminal at Prince Rupert and construction of a new ferry to comply with international safety standards. That project is likely to take about six years.

Metlakatla Mayor Albert Smith says ferry service in Southeast is vital for his community, where many of the 1,500 residents have family members across the border.

“Our closest community is Ketchikan,” he said at the meeting. “We’ve all got family spread out through Southeast.”

A Wide Net of Innovations and Efficiencies

AMHS has provided transportation throughout Southeast and Southcentral since statehood. Alaskans voted in 1959 for an $18 million bond package (worth about $198 million today) to pay for four new vessels and new docks in several Southeast communities.

For the next twenty years, the strategic plan aims to modernize the AMHS fleet through newly built ferries and renovations by replacing aged vessels, exploring updated vessel technologies like efficient propulsion options, and reduced emission equipment. Also included in the plan are projects to upgrade terminals, standardize and modernize berthing and mooring structures to accommodate future vessels, adapt new user-friendly software, make upgrades to comply with Americans with Disabilities Act requirements, and support Alaska’s National Electrical Vehicle Infrastructure Program plans.

The long-range plan also calls for a reduction in environmental impacts such as erosion and sea-level rise’s effect on ports and docks, finding opportunities to address AMHS’ environmental impact, and creating a maintenance schedule for terminals.

An Alaska Marine Highway System ferry heads into Auke Bay terminal in Juneau.

Photo Credit: Dimitra Lavrakas

Uncertainties Loom

The draft plan calls for $3 billion in vessel and infrastructure spending, with operating budgets rising from $173 million in 2024 to $207.4 million this year. Governor Mike Dunleavy is proposing a $159.4 million operating budget for the ferry system during the 2025 fiscal year, a budget that relies on the federal government to provide most funding.

It is unclear what effect the Trump administration’s pause on disbursement of funds appropriated through the Infrastructure Investment and Jobs Act of 2021 or Inflation Reduction Act of 2022 will have on the spending plan. Those laws directed billions of federal dollars to states and cities for projects ranging from highway expansions to water system upgrades. It’s unclear if the president can revoke spending appropriate by Congress through an executive order.

Somewhat closer to the ferry system’s control is the recruiting and retention of employees. AMHS’s job vacancy rate of 24 percent is the highest among all state agencies. Thus, AMHS is trying to develop and attract workers by offering maritime scholarships, referral bonuses, and partnerships with training institutions to develop a workforce pipeline.

A thirty-day public review of the draft plan has completed, but the document is available for viewing online via the AMHS website.

Related Articles
Alaska Business Magazine January 2026 cover
In This Issue
JUNIOR ACHIEVEMENT OF ALASKA + INDUSTRY SUPPORT
January 2026
In our first issue of 2026, we are again featuring two special sections: Junior Achievement of Alaska and Industry Support.

We’re honored again this year to celebrate our partnership with Junior Achievement of Alaska, a nonprofit that educates local youth about enterprise, business, money, and financial literacy. In the special section, three Junior Achievement of Alaska students weigh in on their experience with the exceptional volunteers and teachers involved with the program.

And in Industry Support, we explore the range of varied services that industry in Alaska requires, from mancamps to spill response to off-grid energy solutions.

Outside the special sections, make sure to check out the 2026 Economic forecast, where Alaska leaders share their insights on what may lie ahead in the coming year. Enjoy!

Share This