The federal ship has come in for the Alaska Marine Highway System, carrying more than $284 million for upgrades to old vessels, money to help pay for a new ferry, dock repairs, additional service to small communities and even a proposed electric-powered ferry for short runs.
The Federal Transit Administration announced the awards last week.
The grants were awarded under a competitive application process, but Alaska’s congressional delegation wrote the provisions of the Infrastructure Investment and Jobs Act of 2022 with the intent of steering a lot of the money to the state.
Sen. Lisa Murkowski, one of the negotiators on the bipartisan infrastructure spending bill, said last week she had spoken with the governor about using the federal dollars for improvements to the vessels and ferry service, not merely to save the state from spending its own money.
Speaking at a press conference last Thursday, the senator said she expects the governor and legislators will provide the state match to receive the full federal aid and spend the money wisely, and that she will “personally bird-dog” the spending to ensure “we don’t mess it up.”
“I am pretty attached to what we have built here,” she said of the ferry system. “I am determined to make sure that the system that worked for me and my family when I grew up (mid-1960s) in Wrangell” works well for future generations.
“This is historic funding,” the senator said.
The state has received federal money in past years for vessels and shoreside work, but nothing close to this year’s haul.
The $284 million in federal aid will require approximately $105 million in match from the state. The Legislature has already appropriated some of those funds, but will need to appropriate more.
Southeast Conference Executive Director Robert Venables said missing out on the federal windfall “would be like looking a gift horse in the mouth.”
“We’ve got vessels that are 60 years old that we’re still trying to patch up and use and others that are kind of mismatched,” Venables said.
The federal funding will include $72 million for upgrades to the Matanuska, Columbia, Tazlina and Kennicott.
The oldest of the four ships, the 60-year-old Matanuska, was pulled out of service last month. It needs extensive replacement of “wasted steel,” according to the state Department of Transportation. In addition, its passenger and crew quarters will be refurbished, safety improvements will be made, and old plumbing and electrical materials will be replaced.
The state estimates the $37.5 million project — counting federal and state dollars — could be finished by June 2024, putting the Matanuska back into service.
Replacement of the controllable pitch propeller system and other repairs to the Columbia are estimated at $13.7 million.
Adding crew quarters to the Tazlina, which is just four years old, along with other work is estimated at $25 million. The addition of crew quarters would allow the ferry to carry a second crew so that it could operate on longer routes, rather than its current restriction to one 12-hour crew shift and then tying up in port for the night.
Emissions and exhaust upgrades on the Kennicott are estimated at $13.8 million.
The federal funding also includes $44.8 million to pay for additional operating hours to run ferries to rural communities.
How many more runs and which communities will be determined after the Legislature this spring approves the ferry system budget and the Department of Transportation issues its draft schedule for next fall and winter, explained Sam Dapcevich, department spokesperson.
“These awards are the first wave of funds for a five-year program created in the infrastructure law and the department intends to apply for additional operating grant funds” for subsequent years, Dapcevich said.
The ferry system depends on state and federal funding to cover expenses — its passenger and vehicle revenues fall far short of covering costs. This year’s marine highway budget is about $143 million. In 2019, the last pandemic-free travel year, fares covered about 35% of the ferry system budget.
Last week’s grant awards also included $68.5 million toward the $325 million cost of a new Tustumena-class ferry. The department is in the early design stages of the project, targeting a 2027 completion date for the new ship. The Tustumena operates mostly in the Gulf of Alaska, serving Kodiak and the Aleutian Islands.
The state will receive $8 million toward design costs for a new mainline ferry. The state has talked about needing a long-term replacement for the Matanuska or Columbia. Design and construction of a replacement vessel is years away.
Ferry terminal repairs in Juneau, Cordova, Pelican, Tatitlek and Chenega will receive $45 million in federal assistance.
And the grants also include $46 million for a proposed electric ferry to travel on short runs between Ketchikan and Metlakatla, Haines and Skagway, or Homer and Seldovia.
The ferry system serves 3,500-plus miles of Alaska’s coastline and more than 30 communities, most of which are unreachable by road. It has struggled for years with mechanical breakdowns and service interruptions, occasionally stranding passengers.
Separate from the $284 million, the federal government has awarded $2 million to the Southeast Conference to work with coastal communities and the state to ensure that new vessels and service improvements address local needs.
The money “enables us to play that role,” Venables said of the nonprofit organization’s coordinating function.
This story includes work by Alaska Beacon reporter James Brooks and Anchorage Daily News reporter Riley Rogerson.
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