Alaska’s long-range ferry plan is complete after three years of preparation. The Alaska Marine Highway Operations Board approved the plan at a meeting on April 25, and now it goes to the Legislature and the governor for consideration. The plan relies on millions of dollars every year, but where that money will come from is unknown.
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The purpose of the long-range plan is to guide the Alaska Marine Highway System (AMHS) for the next 20 years. It was created with input from over 2,600 Alaskans through surveys and hundreds of public testimonies. The number one concern was reliability. To be reliable, the marine highway needs ferries that run, qualified staff to operate them, and infrastructure that’s maintained.
“It’s a good guideline for us, keeping us on track,” said AMHS Marine Director Craig Tornga. “We have a plan that’s got a good maintenance plan in it.”
The current fleet needs a lot of maintenance. Of the nine ferries in the fleet, two are over 60 years old and three are about 50. The Alaska Marine Highway Operations Board recommended retiring the 62-year-old Matanuska because it’s too expensive to repair. The Matanuska is 62 years old, the Tustumena is 61 years old, the Columbia and Leconte are both 51, and the Aurora is 48.
Tornga says maintaining the old vessels is a challenge.
“So, it will be a great benefit to have a younger fleet here,” he said. “We spend a lot of time in the yards, and as we get this fleet in line, we’ll be spending a lot less time. We’ll be doing maintenance instead of repairing.”
Staffing has been a huge challenge for the system in recent years. AMHS currently needs about 30 more officers with full pilotage certification, which means they can guide ferries through specific areas.
Outgoing Board Chair Shirley Marquardt said staffing is being addressed. The plan includes steps for hiring and retaining crew and shoreside workers.
“That’s going to be a real challenge, but it’s not being ducked,” she said. “It is definitely being focused on. And so, I think that’s really important.”
Funding is at the heart of the long-range plan. It calls for six new ferries. Those and upgrades to terminals in coastal communities are estimated to cost about $3 billion over the next two decades. AMHS also needs millions a year in operating costs. And economist Katie Berry said the state shouldn’t expect revenue like fares to make ends meet.
“There should not be an expectation with a public service,” said Berry. “This is a public transportation system.”
Lately, AMHS has been relying on federal funding, receiving over $700 million through the Bipartisan Infrastructure Law.
But Berry said federal funding isn’t secure.
“As of right now, we have no indication that operating funding continues,” Berry said. “The state of Alaska should be preparing to fund the operations of the marine highway system.”
The operations board recommends that the state forward-fund the marine highway system for two years to allow it to plan better, instead of just year to year.
“It is a long-standing desire to have the budgeting process that bridges fiscal years and introduces stability into the system for it to optimize its operations and revenue potential,” said Wanetta Ayers, the new board chair.
Funding for two years will need Legislative approval. Senator Lyman Hoffman of Bethel co-chairs the finance committee overseeing the operating budget. His office staff said that forward-funding the ferry system would be a very unique situation.
Katherine Keith is the deputy commissioner for the state’s Department of Transportation and an operations board member. She said lawmakers will have questions about that kind of budgeting, but she supports it.
“This will provide flexibility to AMHS operations in managing their funds,” she said, reading from the recommendation language.
This new long-range ferry plan will be updated every five years, according to state law. It will also be incorporated into a new Southeast regional transportation plan, which was last updated in 2004. The process on that is just beginning.
The AMHS operations board is also mandated to create a short-range plan for the next three to five years. They’ll focus on that process next.
