Alaska House Bill 65 would allow the Alaska Railroad Corporation to issue more revenue bonds to finance the replacement of the Alaska Railroad Corporation’s passenger dock and related terminal facility in Seward.
It sailed through the House Finance Committee and will be on the House floor for consideration on Monday.
The bill’s primary sponsor is Rep. Louise Stutes of Kodiak, with bipartisan co-sponsors Rep. Alyse Galvin (U-Anchorage) and Reps. Mike Prax and Frank Tomaszewski, Republicans of North Pole and Fairbanks. HB 65 is essentially the same as one proposed by Gov. Mike Dunleavy, House Bill 67, which will be set aside in favor of the House’s own legislation.
The bonding limit of the Alaska Railroad Corporation is $60 million, due to legislation passed in 2022 that gave the railroad bonding authority. HB 65 would increase that to $135 million and allow the railroad to move ahead on refurbishing the terminus of the critical infrastructure.
The existing dock, built in 1965-66 after the Great Alaska Earthquake of 1964 had destroyed the dock and surrounding infrastructure, is now near the end of its useful lifespan. There has been significant corrosion to the pile foundations over the decades.
The proposed new dock and facility have been designed with specification for the anchor tenant, Royal Caribbean but the terminal building could be available for rent for community purposes as well. The Alaska Railroad has a proposal from a builder for the project for $137 million.
One aspect of the proposed 750-foot, two-berth floating dock is that it would accommodate the Quantum class of ships, which is the largest cruise ship size sailing in Alaska, and this enhancement will bring Seward into the same port capacity as those in Southeast Alaska.
Although the railroad requires legislative approval to bond, the State of Alaska would not be responsible for the debts of ARRC. The bonds would be secured by a port usage agreement and paid back entirely by dock revenues.
The bill passed out of House Finance Committee with all members voting in support, signaling it will pass the House quickly ad move to the Senate.
The railroad has big ambitions, hoping to have the entire project done in time for the 2026 cruise season.
