Legislature puts $200 million toward Anchorage port rebuild: consumers may pay for much of $1.8 million reconstruction

There is now $200 million for Port of Alaska reconstruction in the state capital budget.

While this is short of $600 million requested by the Municipality of Anchorage, which owns the port, Anchorage Mayor Dave Bronson says he’s happy to get anything.

$1 billion is needed to reconstruct the port’s Terminal 1 and Terminal 2 cargo ports, which handles most of the general cargo landed in Anchorage.

“After months of negotiations, numerous trips to Juneau, presentations before committees, and conversations with legislators on both sides of the aisle, I am pleased with this commitment,” Bronson said.

“Anchorage has roughly $220 million of ‘skin in the game’ (in a financial contribution) but the entire port project comes with a $1.8 billion price tag. The people of Anchorage cannot shoulder this alone,” Bronson said.

In reality, consumers across Southcentral and Interior Alaska will feel the bite of higher costs if the bulk of the reconstruction is funded with bonds repaid by tariffs, or fees, on cargo moved across the dock,

“Without financial help from the state, tariffs – essentially a tax – on all goods and food coming across the docks could go up by 900 percent,” Bronson said in a statement.

:Given the deteriorating condition of the docks, and the timeline for permitting and construction, it was imperative funding be allocated this year to the port. Though this appropriation doesn’t fulfill our initial $600 million request, I believe it is a positive step forward and shows that the Legislature is serious about partnering with Anchorage to safeguard Alaska’s lifeline: the Port of Alaska.”

Anchorage is also hoping that funds for the port can be included in a proposed state general obligation bond package that is still pending in the Legislature.

“Securing this appropriation was a bi-partisan effort. I specifically want to thank the House Finance Committee Co-Chairs for ‘having our back’ on this issue, and the senators who fought to pass the budget amendment that put this money into the budget,” said Bronson. The capital funding also approves a state match to federal funds for Port of Nome expansion and money for new roads in the Matanuska-Susitna Borough.

The Port of Alaska Modernization Project is a $1.8 billion construction project. The port serves 90 percent of Alaskans, with 50 percent of all goods coming into Alaska crossing the docks. The port serves all major Alaska industries and supports key operations of the U.S. Department of Defense. The economic and military security of Alaska hinges on the port being operational and resilient for years to come, Bronson said.