By Frank Murkowski
There has been a concentrated effort the past few years to develop a long-term solution to the many problems of our ferry system. The effort has been led by the Alaska Department of Transportation. The department has hired several consulting firms over the years including the Spaulding Group, McDowell Group, Northern Economics and the governor's "reshaping work group," at a cost to the state of several hundred thousand dollars.
These reports have done a good job identifying problems, yet very few of their proposed solutions have been acted upon. One consistent recommendation of all the consultants is to remove the ferry system from the Department of Transportation and put it into a separate state-owned corporation with its own budget - like the state-owned Alaska Railroad Corp.
As a standalone corporation, management of the ferry system would be visible to the public and held accountable. As part of the larger department, the ferry system competes for funding and management with airports and highways.
The ferry corporation's board of directors could be proposed by the Southeast Conference for submission to the governor. Directors should have expertise in maritime and engineering matters, as well as marketing.
Though neither the governor nor the Legislature has acted upon the recommendation to establish a marine highway corporation, the long-term solution might be occurring under our very noses by default.
Either by accident or design, we may be experiencing the demise of the Alaska Marine Highway System. Excuses range from a lack of state funding to termination of service to Prince Rupert, British Columbia, and high maintenance costs of the older vessels.
Ridership is down and declining due to the lack of service. Some communities today will receive only one or two sailings a month during the winter. Average annual ridership between 2004 and 2014 was 250,000 passengers. In 2019, the ferry system carried 135,000 passengers.
A quick review of the scheduled sailings suggests that the disposal of several of our mainline vessels is resulting and will continue to result in substantially less service. The Taku was sold to an Indian broker for scrap. Our two fast ferries, which cost $68 million to build, were sold at a fraction of their cost.
The Malaspina has been laid up in Ketchikan for nearly two years at tremendous cost, and the Columbia has not operated for most of the year. Is the administration preparing the case to sell these vessels?
The Alaska cruise industry is looking forward to a dramatic recovery as the pandemic recedes. Alaska is the No. 1 visitor destination for tourists from Outside.
But there is another type of traveler who prefers traveling with a car or camper on which the ferry system should focus. That traveler wants the option to visit a choice of venues and experience the magic of Alaska's outlying areas. The Alaska Marine Highway is the largest and the only system for people who want to travel with their automobile. Why has the ferry system not reached out to this type of visitor? Where is the marketing?
The fall revenue forecast shows that there will be a significant increase in state funds due to a sharp rise in oil prices. This revenue increase, along with the federal infrastructure funding, could provide our ferry system with opportunities to grow, but we must plan now.
We have discussed this long enough. Now is the time to transfer the ferry system to a state-owned corporation that the consultants have long proposed. The effort should be led by the Southeast Conference Transportation Committee. I urge the committee to adopt a resolution for submission to the 2022 Legislature that would support transfer of the marine highway to a state-owned corporation.
Frank Murkowski served as governor of Alaska 2002-2006, and as U.S. senator for Alaska 1981-2002.
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