New Seward Passenger Dock will be operational next year
Governor Mike Dunleavy signed legislation today (HB 65) granting the Alaska Railroad Corporation (ARRC) the ability to issue up to $135 million in revenue bonds to fund the construction of a new passenger dock and terminal facility in Seward.
ARRC revenue bonds have no recourse to the state, and no state money will be used to finance the dock. ARRC’s bonds will be secured by a 30-year agreement with anchor tenant Royal Caribbean Group, which guarantees a minimum of 140,000 guests annually. The port improvement fee assessed to these guests will fully cover the repayment of the bond debt.
“This bill demonstrates how state government can spur economic development and growth with no impact to state finances,” said Governor Dunleavy. “The new cruise ship dock in Seward will maintain Alaska’s status as one of the world’s premier tourism destinations.”
“We’re excited to advance this needed project with the strong support of the Governor, the Legislature and the City of Seward,” said Bill O’Leary, President, and CEO of the Alaska Railroad. “The existing dock has driven economic activity for decades but is at the end of its useful life. House Bill 65 will allow the Railroad to make an investment in replacing this public infrastructure that will be paid for by the private industry it serves, and bring economic benefits to communities across Southeast, Southcentral and Interior Alaska as we ensure cross-Gulf cruise ships can continue to dock in Seward.”
ARRC’s existing Seward Passenger Dock and terminal facility date to the mid-1960s and are approaching the end of their useful life. Replacement is necessary for Seward to continue to be able to receive cruise ships. In 2024, over 205,000 cruise guests traveled through the Seward Passenger Dock. The new floating barge dock with double-berth pier will be 748-ft long and 100-ft wide and be able to accommodate Quantum class cruise ships. ARRC will own and operate the facility as an open dock available for other cruise lines to use as well.
The 2025 cruise season will operate normally at the existing dock in Seward; in fall 2025, the old dock will be demolished and the new dock fully constructed and installed in time for the 2026 summer cruise season.
