AIDEA Pumps $22.8M into Wrangell Deepwater Port and Shipyard
Concept art shows Wrangell’s former timber mill property redeveloped into a maritime industry hub.
Photo Credit: Alaska Industrial Development and Export Authority
Expansion of infrastructure and operations at the Wrangell Deepwater Port and Shipyard backed by a federal grant is getting matching funds from the Alaska Industrial Development and Export Authority (AIDEA). Board members approved a $22.8 million financing package needed for the City and Borough of Wrangell to leverage its $43.1 million award from the US Department of Commerce Economic Development Administration. That award includes $31.2 million to redevelop Wrangell’s former timber mill property into a maritime industry hub serving federal, state, and private interests.
Potential to Open Doors
“Alaska’s working waterfronts are vital to our state economy, our supply chains, the Alaska Marine Highway System, and our national security,” says AIDEA Executive Director Randy Ruaro. “Recent federal awards and investments in infrastructure and icebreakers are creating tremendous opportunities for Alaska, and AIDEA’s strong fiscal position and financing tools on projects like the Wrangell Shipyard will help turn those opportunities into reality.”
Subject to terms negotiated between Ruaro and the borough, the AIDEA board approved a $15 million loan for design and permitting and an additional $7.8 million dollar loan for the required nonfederal funding match.
“This investment has the potential to open doors for local families, businesses, and future generations. It also reflects a commitment to building a stronger maritime economy for Southeast Alaska,” says Wrangell City Manager Mason Villarma. “There is more work ahead, but we are incredibly grateful to everyone who has helped bring Wrangell to this point.”
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AIDEA’s investment in the Wrangell Shipyard complements efforts to expand operations at the Ketchikan Shipyard, which it owns. Shipyard operator JAG Marine is also partnering with AIDEA and Wrangell to provide redundancy, additional capacity, and scalable workforce development.
“Ketchikan and Wrangell have an opportunity to work together to grow Alaska’s shipbuilding and vessel repair industry,” Villarma says. “Today, too much of that work leaves Alaska for shipyards in the Lower 48. Given the close proximity of our communities and the abundance of maritime assets, infrastructure, and skilled workforce between us, this is a natural fit.”
Investments in the Ketchikan Shipyard are among highlights in AIDEA’s annual earnings report. For fiscal year 2026, the authority reports statutory net income of more than $62.4 million, down slightly from last year’s record high of $67.4 million. From those earnings, the AIDEA board of directors approved a dividend to the State of Alaska of $15.6 million for fiscal year 2028, down from last year’s $17 million.
“AIDEA has never been as successful in its history as it is now, proven by its third straight year of statutory net income over $60 million,” Ruaro says. “Consistently strong net income generates tremendous value for the state through the AIDEA dividend payment, which at 25 percent for Fiscal Year 2028 is orders of magnitude greater than publicly traded companies like Coca-Cola Inc. that pay a dividend of around 2 percent per year.” Since the Legislature established AIDEA’s dividend program in 1996, the authority has paid $527.6 million to the state.
From Concept to Construction
Concept art shows Wrangell’s former timber mill property redeveloped into a deepwater port and shipyard.
Photo Credit: Alaska Industrial Development and Export Authority
Still, Ruaro notes that AIDEA’s mission established by the Alaska Legislature is not necessarily to return dividends but to promote the health, welfare, and education of Alaskans through the responsible development of natural resources, with a special focus on creating jobs.
AIDEA’s loan programs help small businesses access financing. The authority also earns revenue through wholly owned assets like the DeLong Mountain Transportation System, which moves ore from Red Dog Mine.
In the last fiscal year, AIDEA has supported HEX’s efforts to increase Cook Inlet natural gas production, Alyeschem’s chemical plant being built on the North Slope; Greensparc’s cabinet-sized data center in Cordova; Interior Gas Utility’s home heating service in the Fairbanks Area; and matching a federal grant to complete a Port MacKenzie railroad extension.
AIDEA Board Chair Bill Kendig says, “Supporting major federal grant awards as a source of non-federal matching funds, just as AIDEA’s board did earlier this year to advance the Port MacKenzie Rail Extension, doesn’t just move these projects from a concept into construction and operations. AIDEA is also relieving pressure on the State treasury along with creating high-paying jobs for Alaska’s workforce of the future.”
