Governor approves Alaska Railroad financing for expanded cruise ship dock in Seward

Alaska Gov. Mike Dunleavy signed HB 127 into law July 3 in Seward, moving a proposed $60 million new cruise ship passenger dock project in Seward toward construction.

The bill authorizes the state-owned Alaska Railroad Corporation to issue revenue bonds to finance the replacement of the Seward passenger dock. The dock will also be enlarged so that it can accommodate larger cruise ships now serving Alaska.

With additional financing for other related facilities the total project costs could approach $80 million.

“I am pleased to sign this bill which will help to expand several elements of Alaskan infrastructure in a meaningful and significant way. The planned passenger dock and terminal facility updates in Seward will be a value add to tourism, to the Railroad, to Southcentral Alaska, and to the state as a whole,” said Dunleavy.

Alaska Railroad Board Chair John Shively “Governor Dunleavy cemented his support of tourism as a significant renewable resource in Alaska. By giving the ARRC (Alaska Rail Road Corporation) the ability to issue bonds to fund the project in Seward, the ARRC will also be able to maintain its mission of being a self-sustaining entity as it will not have to rely on state (general) funds for the construction of the dock and terminal facility.”

Shively said the new dock and terminal will serve as a gateway, “to unforgettable travel experiences that await in the Great Land.”

Alaska Railroad President and CEO Bill O’Leary said, “Seward has been an essential gateway for the railroad to bring people across Alaska for many decades. Replacing the dock and enhancing our passenger terminal will continue an important connection for all Railbelt communities,” O’

Leary said.

“Moving this project forward comes on the cusp of the railroad’s centennial when we’ll celebrate 100 years as a critical transportation link,” he said.

The allows the state railroad corporation to issue revenue bonds to finance the project up to $60 million. The initial project will construct a new dock, provisional passenger terminal facilities, and associated upland improvements. Future project elements will include constructing a new permanent passenger terminal building.

In January 2022, the ARRC Board of Directors authorized the railroad to pursue up to $60 million in funding through ARRC’s statutory authority to issue bonds, subject to state legislative approval, to complete dock design and construction.

The railroad is evaluating potential funding sources for the permanent passenger terminal building.