A bill to extend the Alaska Railroad Corp’s bond authority (ARRC) to finance a new cruise terminal in Seward was recently passed into law.
Alaskan Governor, Mike Dunleavy, signed the bill after vetoing a version last year.
At that time, Dunleavy had said that the final vote came after the constitutional end of the legislative session.
However, this time, it was one of the first pieces of legislation enacted upon during the regular session, the Alaskan Business reported.
The bill adds $75 mill to ARRC’s authority to finance the project through bonds. Including the $60 mill authorised in 2022, ARRC can now bond for $135 mill to develop the facility in conjunction with partners, Royal Caribbean Group and The Port of Tomorrow.
ARRC’s bonds will be secured by a 30 year agreement with Royal Caribbean Group as the anchor tenant, which guarantees a minimum of 140,000 guests annually.
The port improvement fee to be paid for by the cruise guests will fully cover the repayment of the bond debt. The governor said that, although ARRC is a state-owned corporation, no state money will be used to finance the dock.
“This bill demonstrates how state government can spur economic development and growth with no impact to state finances,” Dunleavy reportedly said.
“The new cruise ship dock in Seward will maintain Alaska’s status as one of the world’s premier tourism destinations,” he said.
ARRC’s existing Seward passenger berth and terminal facility were built in the 1960s and are approaching the end of their useful life.
In 2024, more than 205,000 cruise guests passed through the Seward passenger dock.
“The existing dock has driven economic activity for decades but is at the end of its useful life,” ARRC President and CEO, Bill O’Leary said.
“House Bill 65 will allow the Railroad to make an investment in replacing this public infrastructure that will be paid for by the private industry it serves and bring economic benefits to communities across Southeast, Southcentral, and Interior Alaska, as we ensure cross-Gulf cruise ships can continue to dock in Seward.” he said.
The new floating barge dock with double-berth pier will be 748 ft long and 100 ft wide and will be able to accommodate RCL’s ‘Quantum’ class cruise ships.
ARRC will own and operate the facility as an open dock made available to other cruise lines to use.
The 2025 cruise season will operate normally at Seward’s existing facility. At the end of the season, the old dock will be demolished and the new dock built and installed in time for the 2026 summer cruise season.
