Legislature cleared revenue bond authorization for Seward passenger dock; Alaska Railroad outlines dock plans

Alaska Railroad officials told the House Transportation Committee on Feb. 27 that the state‑owned railroad plans to replace Seward's aging passenger dock with a new double‑sided pier and terminal building at an estimated cost of $137 million.

President and CEO Bill O'Leary said the existing passenger dock dates to the mid‑1960s, is deteriorating and has increasing maintenance costs. "It's still safe to use; it's incredibly costly for us to continue to maintain this dock and the end is near," O'Leary said.

O'Leary said the railroad plans to fund most of the project with revenue bonds. He told the committee that House Bill 65, which the presentation said had passed the Legislature and the Senate, authorizes the railroad to issue those bonds. The bonds are described in the presentation as secured by a 30‑year agreement with an anchor tenant, Royal Caribbean Group, that would provide debt‑service security. The railroad said the dock will remain an open facility available to other cruise lines.

The railroad also described a separate $25 million freight‑dock expansion project in Seward that includes federal grant funding of about $20 million and a matching contribution from the railroad. Officials said they invested nearly $2 million recently to strengthen a transfer span so the dock can continue year‑round freight service during construction seasons.

Megan Clements, the railroad's external affairs director, said the projects are intended to support Alaska's travel and freight industries and create a more resilient marine terminal. "We are designing and using our terminal space as efficiently as possible," Clements said, noting public meetings and coordination with Seward officials.

Committee members thanked staff and noted the statewide implications of improved cruise and freight capacity; presenters said ribbon‑cutting timing will follow project development and bond financing.