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DOT says AMHS reliability improving but key vessels and terminal projects still require large federal grants and contract work
Summary
DOT officials told the Senate Transportation Committee on Jan. 23 that AMHS operations continue while $400 million in grants for vessel projects and about $170 million for terminals advance, but noted that the 60‑year‑old Matanuska will require a cost‑benefit assessment before a decision on its future.
At the Jan. 23 Senate Transportation Committee meeting in Juneau, Commissioner Ryan Anderson and other DOT officials briefed senators on the Alaska Marine Highway System (AMHS), vessel overhauls, new federal grants for rural ferries and terminal projects and ongoing labor negotiations.
DOT said Director Tornga (AMHS) and staff have focused on vessel reliability and crew quarters improvements. The department reported more than $400 million in grants currently committed for new vessels or vessel improvement projects and about $170 million in grants for dock and terminal projects.
The department highlighted two near‑term vessel matters:
- Matanuska: The 60-year-old vessel used as a hotel ship is undergoing surveys and costing analysis. DOT said it will present cost estimates to the Alaska Marine Highway Operations Board and consider whether further investment or retirement is appropriate. Senators asked for a schedule, holding costs while the ship remains docked and an assessment of whether retirement is the prudent fiscal choice.
- Tustamina (Tuscaloosa replacement): DOT is advancing procurement but said federal rules and interagency coordination — notably Buy America and differing agency interpretations (FTA vs. FHWA rules) — have complicated specification writing and timeline. Anderson said DOT has engaged FTA and legal counsel and scaled up consultant support to shepherd the project through federal review; he described the issue as lengthy but not a resourcing shortfall.
Labor and operations
Senators discussed ongoing contract negotiations with three marine unions; DOT said department negotiators include marine highway management staff. Senators asked for clearer presentation of master ship agreements, contract terms, wages and hiring rates to inform policy and appropriations discussions.
Why it matters: AMHS serves many coastal and island communities in Alaska; ship and terminal investments directly affect service reliability, staffing and the cost of operations for communities that rely on the ferry system.
Ending: DOT agreed to provide a schedule for major AMHS capital projects, cost assessments for the Matanuska, and additional information on wages, hiring and the status of union negotiations to the committee.
