Alaska Railroad Poised to Issue Bonds to Replace Seward Passenger Dock

The new 748-foot dock, scheduled to open in time for cruise season in 2026, will be “the most robust floating double-berth pier in Alaska,” according to the Alaska Railroad. Designed as a turn-port, the double-barge hull will feature a concrete deck with ample space for passengers to safely embark while also supporting effective provisioning. Designed for the Royal Caribbean’s Quantam-class specifications, the new facility will easily accommodate all classes of cruise vessels sailing in the Alaska market, as well as potential winter cargo shipments in coordination with ARRC’s adjacent freight dock.

“We believe it will work well for Royal Caribbean and work well for other cruise line customers, and meet the long-term needs of the Alaska Railroad,” Clemens says.

Last year, eighty-seven ships docked in Seward carrying 188,000 passengers. Many of these cross-gulf cruise guests extend their time in the state with shoreside excursions on the Kenai Peninsula or onward to Anchorage, the Matanuska-Susitna Borough, Denali, Fairbanks, or other destinations.

“The new Seward passenger dock is an important investment in Alaska’s long-term ability to welcome visitors to Southcentral Alaska and beyond,” says Governor Mike Dunleavy. “We’re proud that Alaska is rightfully known as a world-class destination, and our strong visitor industry is ready to continue providing incredible experiences for guests, and benefits to our local communities.”

The floating dock will raise and lower with Alaska’s extreme tides, allowing ships to berth on both sides. It will also include a 60,000-square-foot terminal building. During the winter, the workstations and dividing walls of the terminal can be moved, making the new facility the largest flex-space in the region.

“This dock is hugely important to our community,” says Seward Mayor Sue McClure. “In addition to the economic importance of bringing summer visitors to local businesses, the terminal building is used for community events over the winter months. We are excited about the revitalization of this infrastructure, and Royal Caribbean’s long-term commitment to Seward as a premier destination.”

Clemens says the dock will also accommodate side-loading ferry vessels, giving the Alaska Marine Highway System the option to return to Seward. Shore power will also be available, an important new feature to meet future regulations and objectives for low-emission solutions.

Bonding Authority

ARRC plans to purchase the new dock and terminal facility primarily through bonding. The organization has bonding authority granted in 2022 by the legislature to issue up to $60 million in bonds when plans called for a smaller facility. Now ARRC is seeking permission from the legislature to increase that bonding amount by $75 million.

The new proposal includes an unprecedented commitment on the part of Royal Caribbean: a thirty-year contract that will effectively pay off the cost of construction over time.

“Royal Caribbean Group remains strongly committed to the future of Seward and the State of Alaska,” says Preston Carnahan, regional vice president for Royal Caribbean Group, noting that the homeport agreement will be the largest in the state of Alaska. “We are excited to continue to collaborate with the Alaska Railroad and watch as Seward energizes opportunity across Alaska.”

ARRC is awaiting approval of the bond authorization request before the close of this Legislative session. Approval will allow the developer to break ground in fall 2025 and have the new facility ready for the 2026 season.

Clemens says, “We are excited about bringing new infrastructure to Seward that will support the growth of the next fifty years of the Alaska visitor industry.”