State may contract for private operator to cover ferry gap in smaller communities

The Alaska Marine Highway System is looking for private companies to fill service gaps over the winter for small Northern Southeast communities.

The LeConte is scheduled to go out of service in early January until the end of February for its annual overhaul and recertification. That would leave several communities without ferry service for two months.

Mainline ferries are too large to serve the communities and the state’s smaller ships are unavailable. “The stars are not aligning for us to use one of our own vessels,” said Sam Dapcevich, a spokesperson for the Alaska Marine Highway System.

Among the smaller ships, the Aurora is busy serving Prince William Sound, and it would take too long to get crews ready to operate the Tazlina, which is being held out of service to save money. Besides, it is not possible to get a temporary sailing certification for the Tazlina only two months, Dapcevich said.

The Hubbard, which has never sailed with passengers since it was built three years ago, will soon be fitted with sleeping quarters for crew to increase its sailing range, at a cost of around $16 million, Dapcevich said.

After hearing frustration from residents about the possibility of long service gaps, the Alaska Department of Transportation put out an invitation in late November for private companies to bid and offer passenger and vehicle service through March.

“Right now, we’re trying to see what interest is out there,” Dapcevich said.

The contracts for private companies are set to be announced on Dec. 28.

The contracted service could cover Angoon, Tenakee Springs, Pelican, Hoonah and Gustavus. The precise sailing schedule, and costs, will need to be negotiated. The additional service would not extend to Wrangell or Petersburg, which are covered weekly by a mainline ferry in the winter.

If the state can negotiate a contract or contracts, some of the smaller Southeast communities could see ferry service increase significantly to once a week or even twice a week over the winter. The department also hopes to have a “supplemental” private ferry option available through March 2023 in case the LeConte is ever unable to operate on the route, Dapcevich said.

Pelican Mayor Patricia Phillips said service gaps of two or three months for the city are tough but manageable.

“If it gets longer than that, it really becomes a hardship,” she said.

Ferry service twice a month in the winter for Pelican would be “almost a miracle, to tell you the truth,” the mayor said.

Tom Williams, city administrator for Gustavus, agrees that long service gaps are difficult, saying the communities rely on ferries for medical trips, shipments of food and other supplies and to prepare for a busy summer visitor season.

Neither Williams nor Phillips were told ahead of time that the Alaska Marine Highway System is looking for private companies to fill service gaps.

Norm Carson, president of the Pelican Chamber of Commerce, wasn’t told about the plan either. He was recently chosen by Gov. Mike Dunleavy to sit on a new public advisory board for the ferry system, though it has not yet met.

Carson said he told state officials that Pelican didn’t need any state ferry service in January or February. He is skeptical that Pelican needs winter ferry service every week or even twice a month. “We don’t think it’s cost effective or necessary to get out that frequently in the middle of winter.”

The state has previously contracted with Juneau-based Goldbelt and Sitka-based Allen Marine Tours on a temporary basis to run ships to the small Southeast communities when ferries have been sidelined by mechanical breakdowns.

“Previous rates from 2020 for similar passenger route contracts ranged from $7,800 per trip to $11,250, depending on the route,” Dapcevich said by email, explaining that costs are expected to rise due to the COVID-19 pandemic. “Ballpark estimate is a 20% increase over those passenger service rates.”

Zak Kirkpatrick, a spokesperson for Allen Marine Tours, said the company is just starting to look at the online notice for passenger services.

Bowhead Transport, a subsidiary of an Alaska Native corporation based out of Western Alaska, is interested. Clark Hill, the operations manager, said it is looking at whether it will place a bid for the vehicle and freight delivery contract.

The Unalaq, a landing craft that typically operates in the Aleutians and Western Alaska, has spent the past few winters in Southeast Alaska. Hill said it has been used to ship freight and undergo repairs in the relatively milder climate.