$115.4M Federal Funding Boost for Alaska Ports

“These investments will help revitalize Alaska’s ports, enhancing our ability to bring our natural resources to market and ensure a secure supply chain for everything from bulk fuel to groceries,” says US Senator Lisa Murkowski.

US Senator Dan Sullivan adds that, in addition to the 2021 infrastructure program, he added a provision to a 2023 defense spending bill that waived MARAD’s cost-benefit analysis for Alaska and Hawai’i. “We also ensured MARAD can properly account for Alaska’s geographic isolation and the economic reliance of our communities on port infrastructure. Those changes have helped level the playing field so Alaska communities can fairly compete for critical investments like these through the national Port Infrastructure Development Program,” Sullivan says.

A Look at the Projects

Topping the funding list is $38.6 million for the Municipality of Skagway’s project to rebuild the Port of Skagway industrial dock. The funding covers demolition and removal of creosote-treated timber docks, old fuel lines and headers, and partial demolition of a mining or conveyor building, in addition to permitting and construction of a new industrial dock with an integrated fuel header, removable roll-on, roll-off freight transfer ramp, and shore power for tugboats. 

The Matanuska-Susitna Borough’s Port MacKenzie receives $34 million for its multimodal port expansion project. The money, routed through the Alaska Department of Transportation and Public Facilities, pays for a roughly 110-acre cargo laydown area, completion of a rail spur and loop, and barge dock and heavy lift improvements. The additional project scope includes warehouse construction, utilities, communication, lighting, and security upgrades, and engineering and design. 

Receiving nearly $20.4 million, the Alaska Railroad Corporation’s plan to upgrade the railroad tunnel that connects the Port of Whittier to the railroad’s main line got a significant boost. The funding will pay to expand the tunnel clearance to allow double-stack container operations and will pay for the purchase of thirty railcars for the container service to allow double-stacking of containers. 

The City of Homer was awarded $11.2 million to pay for permitting and replacement of a float system at the Port of Homer. The city’s Float System 4—its oldest, in operation for sixty years—is deteriorating and in critical condition. The Homer City Council passed a resolution last August stating that the float system was at risk of being condemned and decommissioned, which would cause further congestion at the busy harbor.

Resilience and Reliability

The Municipality of Anchorage secured $4.7 million to pay for engineering and design to replace the aging petroleum terminal at the Don Young Port of Alaska, part of the municipality’s Port of Alaska Modernization Program (PAMP). While the entire modernization program carries a price tag of $2.8 billion, municipal officials say each dollar of state or federal funding will reduce shipping charges by about $2.50, “saving Alaskans money on the cost of groceries, fuel, and essential goods.”

Anchorage Mayor Suzanne LaFrance says, “Every dollar for the PAMP is a win for our entire state because a modern, resilient facility means a more secure and affordable future for Alaska.”

Whittier received a second award of $4 million to fund design, permitting, and final plans for a city-owned port facility that will replace existing, dilapidated infrastructure. Built in 1953 by the US Army, the city’s DeLong Dock is showing signs of significant corrosion, section loss in support piles, outdated fendering systems, and seismic vulnerabilities that would likely result in failure during a major earthquake. 

“The DeLong Dock has served this community for decades, but time and use have taken their toll,” says Whittier City Manager Jackie C. Wilde. “Investing in its replacement is about safety, reliability, and ensuring Whittier can continue to meet the needs of Alaska for generations to come.” 

The city is contributing a 20 percent match to round out the cost of the replacement project’s planning phase.

Rounding out the seven funding awards is the City of Chevak, which secured $2.35 million to pay for planning and design for a barge landing facility for the rural Western community. 

“By strengthening these connections, we’re helping facilitate economic growth and expanding opportunities for communities across the state,” says Alaska Department of Transportation and Public Facilities Commissioner Ryan Anderson.