A proposed 20-year plan seeking to restore the ailing Alaska Marine Highway System to a more reliable and sustainable operation calls for a major increase in funding for operations and building several new ships.
The six new ferries and shoreside improvements could cost $3 billion.
The draft plan also envisions an ambitious increase in service to smaller communities, including Wrangell, while shrinking the total fleet from nine ships to eight.
The draft plan published Feb. 28 seeks about $3 billion in vessel and infrastructure spending, plus operating budgets rising from $173 million this year to $207.4 million next year — a 25% increase over Gov. Mike Dunleavy’s budget request.
A public comment period for the draft plan is open until March 30, with the proposal and comment form at https://publicinput.com/i56446.
“The consequences of not implementing the (long-range plan), whether through insufficient funding or lack of action on key recommendations, would result in continued decline in ferry service reliability and service levels,” the draft report states.
“Without necessary vessel replacements and maintenance, aging ships would become increasingly prone to mechanical failures, leading to more frequent cancellations and extended service disruptions.”
Currently many smaller Southeast communities such as Kake, Tenakee Springs and Pelican receive little or no ferry service during the winter months. The draft plan calls for Kake to get service “a few times a week” by 2045, while the existing winter schedule calls for one stop a month.
Dunleavy has been strongly criticized during his two terms as governor for a lack of ferry system support, including proposing to cut its budget in half during his first year and more recently for reluctance to provide sufficient state funds required to receive federal dollars.
His proposed budget for the coming fiscal year includes paying for nearly half of the ferry system’s operating budget using federal funds included in the 2021 Infrastructure Investment and Jobs Act, but that money has not yet actually been allocated to the state. Concerns have been expressed by lawmakers, including U.S. Sen. Lisa Murkowski, that such funds may be among those frozen or clawed back by the Trump administration.
The ferry system’s erosion has been long term as the 185,000 passengers and 65,000 vehicles carried in 2024 are down from a peak of about 400,000 passengers and 110,000 vehicles during the early 1990s.
The proposed long-range plan outlines a three-stage timeline that retires seven older vessels and replaces them with six new ones. Though the fleet would be one ship smaller, there would be less downtime for maintenance and unscheduled repairs, supposedly resulting in more service with fewer vessels.
The first stage involves adding one new ferry between 2025 and 2028, then three more between 2029 and 2035 and two more between 2036 and 2045.
The plan calls for all of the new ships to have hybrid propulsion systems of diesel and electric power.
Extensive terminal infrastructure work is also called for in the plan, with 56 ongoing projects during the first stage, 72 during the second and 126 during the third.
Goals in the plan call for both more port calls and passenger revenue, with the latter paying a gradually increasing share of the ferry system’s costs.
A total of 4,600 port calls is projected this year, with the plan seeing an increase to 5,200 by 2028 and about 6,600 in 2045. “Farebox recovery” to pay for operating costs is targeted to increase from 34% during the first stage of the plan to 41% by 2045.
The long-range plan addresses a growing problem with empty crew positions. The ferry system currently has a 24% job vacancy rate, one of the highest among state agencies. The plan seeks to recruit and retain employees with measures including additional funds for maritime scholarships, establishing a referral bonus program and partnerships with training institutions, educational institutions and others.
A Zoom webinar featuring an overview of the draft plan is scheduled at noon March 19, with information about the meeting available at https://publicinput.com/i56446.
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