The Don Young Port of Alaska secured another $50 million in federal funding for its ongoing modernization efforts, putting construction on track for 2026.
Officials celebrated the progress on Friday at the Port, highlighting the importance of the latest round of funding from the U.S. Department of Transportation and other efforts to upgrade the aging facility. The cargo terminal serves most of the state’s freight needs, from groceries to cars and fuel, and officials warn that it is nearing a point where it could fail, especially if a strong earthquake hits the area.
The $1.7 billion modernization project is already underway, with new cement and petroleum terminals and an administrative building completed. Officials said the big next step will be preparing the cargo terminals for an overhaul, the design of which was recently finalized.
“What you’re going to see is a facility designed with a 70-year lifespan that is state-of-the-industry and capable of handling any kind of cargo vessel that is sent here from anywhere,” said Port Director Steve Ribuffo. “A facility that is built to survive this seismic environment and last for 70 years, that is right-sized for the business that we know we’re going to have in the foreseeable future with space to grow.”
Ribuffo and other city officials said the $50 million federal grant, the third-largest port grant in the latest round of federal funding, will be used to prepare for demolition starting in 2025 and construction in 2026. More than $500 million has already been secured.
The Anchorage Assembly also approved another $180 million in revenue bonds earlier this month to fund construction. These bonds will be paid back with an increase in freight surcharges to about $4.80 per ton. While those surcharges could be passed onto Alaskans, Anchorage chief administrative officer Bill Falsey stressed that it would be “modest.”
“We’re talking about the fraction of a cent on a gallon of gasoline, a fraction of a cent on a loaf of bread and a few pennies on a gallon of milk,” he said. “One way of thinking about it is if you ne way of thinking about it is if you buy 2000 loaves of bread, the surcharge would be at $4.80.”
The city, which owns and operates the port, will put the first of the port’s two cargo terminals up for bid later this year. An earlier request for bids didn’t yield any interested companies, but Falsey said that was before the city secured the $50 million grant and approved the $180 million in bonds.
“We know one of the key elements to obtaining a successful bid on construction of the first new cargo terminal dock is to demonstrate we have the means to pay the surcharge, and the bond sale shows that we are serious, that we are committed, that we have skin in the game,” he said. “It will allow us to start the year with cash on hand. It’s an element that the construction firms that are interested in bidding on the work have told us was critical.”
While there’s still much ahead for the long-in-the-works modernization, Anchorage Mayor Suzanne LaFrance said they’re making meaningful progress.
“Its modernization is a necessary once-in-a-generation project,” she said. “It is an asset from which we have no alternative, and it is at risk of failing if we do not act. The good news is we’ve been taking action, and it has paid off.”
Matt Acuña Buxton is a long-time political reporter who has written for the Fairbanks Daily News-Miner and The Midnight Sun political blog. He also authors the daily politics newsletter, The Alaska Memo, and can frequently be found live-tweeting public meetings on Twitter.
