Alaska Railroad gets bonds approval to fund new Seward dock

The milestone allows ARRC to move forward with an investment of more than $80m for the cruise facility.

Bank of America Securities was also identified as the bonds' underwriter. Its team visited Seward this week with ARRC to get acquainted with the project and move forward with next steps in the underwriting process.

Ready for 2025 season

The construction timeline calls for the new passenger terminal to be operational for the 2025 season. The upgrades are needed as Seward serves thousands of cruise passengers who arrive in Alaska each summer.

'We appreciate the governor’s strong support for the railroad and our ability to finance critical Alaska infrastructure,' ARRC President and CEO Bill O’Leary said. 'Seward has been an essential gateway for the Alaska Railroad for decades. Replacing the dock and enhancing our passenger terminal will ensure this important connection remains intact for all Railbelt communities for many more decades to come.'

O’Leary also noted the railroad is on the cusp of celebrating its centennial, 100 years as a critical transportation link, adding: 'It is fitting to mark the occasion by starting a project that will offer profound benefit to communities all along our rails.'

No state dollars

Because ARRC has its own bonding powers, none of the project costs will be paid by state dollars. ARRC plans to issue bonds totaling $60 million and the remaining costs will be paid through existing dock fees and capital funds.

Royal Caribbean Group negotiations

ARRC already has interest in the dock upgrades from Royal Caribbean Group as the two are in negotiations for a multi-year berthing agreement that features an annual revenue guarantee.

'Our cruise brands have enjoyed operating out of Seward for more than 20 years and with this investment, our guests will continue building memories that last a lifetime,' said Wendy Lindskoog, Royal Caribbean Group’s regional VP government relations for Alaska and the West Coast. 'Our aligned vision to support this new dock with the governor, legislators and ARRC means long-term economic benefit to the region and the ability for Royal Caribbean Group to bring our newer, more energy-efficient ships to the market.'

'We are thankful for the strong return of the cruise ship industry after a two-year hiatus,' Seward City Manager Janette Bower said. She acknowledged the support of the governor and Senate President Peter Micciche (R), House Transportation Committee Chair Rep. Grier Hopkins (D) and Rep. Bart LeBon (R) for allowing this 'valuable project' to move forward, generating cruise tourism dollars for local businesses, including commercial passenger vessel funds for both the city and borough, Seward's marine industry and throughout the state.