Governor Signs Railroad Bond Authority for Seward Cruise Terminal
Photo Credit: The Seward Company
The second time was the charm. A bill extending the bond authority of the Alaska Railroad Corporation (ARRC) to finance a new cruise ship terminal in Seward is now law. Governor Mike Dunleavy signed House Bill 65 after vetoing a version last year. At that time, Dunleavy said the final vote came after the constitutional end of the legislative session. This time, it’s one of the first pieces of legislation enacted during the regular session.
$135M for a Dock by Next Year
The bill adds $75 million to ARRC’s authority to finance the project through bonds. On top of $60 million authorized in 2022, ARRC can bond for $135 million to develop the facility in conjunction with Royal Caribbean Group and The Port of Tomorrow.
ARRC’s bonds will be secured by a thirty-year agreement with Royal Caribbean Group as anchor tenant, which guarantees a minimum of 140,000 guests annually. The port improvement fee assessed to these guests will fully cover the repayment of the bond debt. The governor points out that, although ARRC is a state-owned corporation, no state money will be used to finance the dock.
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“This bill demonstrates how state government can spur economic development and growth with no impact to state finances,” Dunleavy says. “The new cruise ship dock in Seward will maintain Alaska’s status as one of the world’s premier tourism destinations.”
ARRC’s existing Seward Passenger Dock and terminal facility date to the ‘60s and are approaching the end of their useful life. In 2024, more than 205,000 cruise guests traveled through the Seward Passenger Dock.
“The existing dock has driven economic activity for decades but is at the end of its useful life,” says ARRC President and CEO Bill O’Leary. “House Bill 65 will allow the Railroad to make an investment in replacing this public infrastructure that will be paid for by the private industry it serves and bring economic benefits to communities across Southeast, Southcentral, and Interior Alaska as we ensure cross-Gulf cruise ships can continue to dock in Seward.”
The new floating barge dock with double-berth pier will be 748 feet long and 100 feet wide and be able to accommodate Quantum class cruise ships. ARRC will own and operate the facility as an open dock available for other cruise lines to use as well.
O’Leary says, “We’re excited to advance this needed project with the strong support of the Governor, the Legislature, and the City of Seward.”
The 2025 cruise season will operate normally at the existing dock in Seward. When the season is over this fall, the old dock will be demolished and the new dock fully constructed and installed in time for the 2026 summer cruise season.
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