Alaska Marine Highway System Board Works on Long-Range Plan

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.

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.