Senate passes bill to finance new $135M Seward dock, terminal for passenger ships
ANCHORAGE, Alaska (KTUU) - A bill to build a new $135 million passenger dock in Seward that would harbor larger cruise ships was passed by the Alaska Senate Wednesday.
If constructed, the new dock would also be able to harbor Alaska Marine Highway System ferries, helping to bring back intrastate travel to Seward.
The bill — House Bill 65 — passed the Senate Wednesday on an 18-0 vote and will now be sent to Gov. Mike Dunleavy’s desk to be signed into law. The bill had previously passed the House by a 36-0 vote on Feb. 17.
The bill authorizes the railroad corporation to issue revenue bonds to finance the project. The bonds' debt will be paid off through a 30-year pier usage agreement with Royal Caribbean Group.
The new dock is tentatively slated to open in spring 2026 and is expected to operate for at least 50 years, according to state supporters of the bill.
The Seward Passenger Dock Replacement Project — proposed by the Alaska Railroad Corporation — would replace the existing fixed passenger dock that was built in 1966 with a floating double-berth pier that extends 748 feet into the harbor at the head of Resurrection Bay.
The new dock would also have a 68,000-foot cruise terminal that would feature indoor space for passengers disembarking larger cruise ships.
In 2024, over 200,000 cruise ship passengers passed through Seward’s dock, according to Rep. Louise Stutes, R-Kodiak, who is also one of the sponsors of the bill.
Another of the bill’s sponsors, Sen. Matt Claman, D-Anchorage, said Wednesday that the dock has significantly corroded, resulting in weight restrictions.
“It’s a good sign that the dock is nearing the end of its useful lifetime,” Claman said Wednesday.
The $75 million will be added to the $60 million authorized by the state legislature in 2022.
In a letter to the legislature, Seward City Manager Kat Sorensen wrote on Jan. 28 that the town would benefit from a new and improved terminal for local events, calling it an “investment in community spirit and shared public space,” as well as additional job opportunities at the terminal for Seward residents related to the cruise ship industry.
Seward also received a $50 million grant from the Environmental Protection Agency (EPA) to bring power to cruise ships docked at the new terminal, using electricity from the state power grid.
A House bill to secure $137 million in financing for new dock infrastructure was passed last May, but was ultimately vetoed by the governor because it was unlawfully passed after the constitutionally-mandated midnight deadline to end the 2024 legislative session.
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