Governor proposes plan for reshaping management of state ferry system

Gov. Mike Dunleavy has submitted long-awaited legislation to change the way the state ferry system is managed. House Bill 134, introduced March 10, would repeal the present Alaska Marine Transportation Advisory Board and establish the Alaska Marine Highway Systems Operation and Planning Board as a permanent governing structure.

The state ferries are currently managed by a division within the state Department of Transportation and Public Facilities/

“As we continue efforts to restructure and modernize the Alaska Marine Highway System, it is imperative the long-term operations and finances are addressed,” the governor said. “Our goal remains the same, to create a more reliable and efficient marine highway system to serve coastal Alaska for years to come.”

The Alaska Marine Highway Systems Operation and Planning Board created in HB 134 would consist of members serving staggered terms and require a short and long-term operations plan to be provided to the governor, legislature, and the public. The proposal follows recommendations from the 2020 Alaska Marine Highway Reshaping Report prepared by the ferry system advisory board.

Short-term reports developed by the new board will address Alaska Marine Highway System financial information, cost savings and strategies, scheduling, maintenance, regulatory compliance and other matters. Additionally, the long-term plans will cover objectives, planning assumptions, fleet planning, and a timeline for major operations milestones.

Reforming management of the state ferry system was one of the governor’s key objectives when he took office in December 2018. The system connects Alaska coastal communities from Southeast to Southwest Alaska but suffers heavy operating losses in the winter, a period of low traffic, but breaks even on many routes in the summer during the commercial fisheries season and, in normal year, tourists.