The Alaska Railroad Corporation (ARRC) board has approved a US$137 million investment in a new cruise facility in Seward, paving the way for construction to commence on what will become the largest turn port in Alaska’s cruise industry.
The facility, which will serve as both the starting and ending point for voyages, is set to open for the 2026 cruise season.
This announcement closely followed Governor Mike Dunleavy’s veto of House Bill 122 on August 1st. The bill, which would have authorized ARRC to issue revenue bonds to finance the replacement of the Seward passenger dock and cruise ship terminal, was one of 5 bills vetoed that day.
Despite the veto, the project remains on schedule. According to Meghan Clemens, ARRC’s director of external affairs, an alternative funding strategy has been identified to ensure the project’s continuity.
The funding will come from a combination of ARRC internal funds, dock improvement fees collected from cruise passengers between 2022 and 2025 - mandated to be reinvested in the dock - US$60 million in ARRC revenue bonds approved by the Legislature in 2022, and a commercial loan.