Governor Approves Railroad Bond for Developing Seward's Cruise Terminal Infrastructure
The Seward Cruise Terminal project, a significant development for Alaska's tourism industry, has received a boost with Governor Mike Dunleavy's strong support and the signing of House Bill 65. This bill extends the bond authority of the Alaska Railroad Corporation (ARRC) to finance the project, adding $75 million to its existing funds, bringing the total to $135 million.
The new dock, a floating barge dock with double-berth pier, measuring 748 feet long and 100 feet wide, is expected to accommodate Quantum class cruise ships. This upgrade is crucial as the existing Seward Passenger Dock, dating back to the '60s, is nearing the end of its useful life. In 2024, over 205,000 cruise guests travelled through this facility.
ARRC, under the leadership of President and CEO Bill O'Leary, will own and operate the new dock. It will not only cater to Royal Caribbean Group, with a thirty-year agreement as anchor tenant guaranteeing a minimum of 140,000 guests annually, but will also be available for other cruise lines to use.
The project, which will replace the existing dock that has driven economic activity for decades, is being developed in conjunction with Royal Caribbean Group and The Port of Tomorrow. The port improvement fee assessed to these guests will fully cover the repayment of the bond debt, ensuring the project is paid for by the private industry it serves.
Governor Dunleavy has emphasised that no state money will be used to finance the new dock for the Seward Cruise Terminal. The old dock will be demolished after the 2025 cruise season, and the new dock will be fully constructed and installed in time for the 2026 summer cruise season. This development is expected to ensure cross-Gulf cruise ships can continue to dock in Seward, maintaining Alaska's status as one of the world's premier tourism destinations.
The Seward Cruise Terminal project is a promising step forward for Alaska, bringing economic benefits to communities across Southeast, Southcentral, and Interior Alaska. The project's advancement is a testament to the collaborative efforts of Governor Dunleavy, the Legislature, the City of Seward, Royal Caribbean Group, and The Port of Tomorrow.
