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Home My WebLink About01152025 PACAB Laydown - AK RRos-oiisPAcAgLayonwn! AKR(Z ALA�'i�CA RAILROAD tn Seward Passenger Dock Replacement Project May 14 2024 The Alaska Railroad Corporation (ARRC) seeks to replace its aging passenger dock and associated terminal facilities within ARRC's land reserve in Seward, Alaska. The project will construct a new floating dock, passenger terminal facilities, and associated upland improvements. Purpose and Goals The project purpose is to replace the exist- ing passenger -related marine infrastructure. Project goals include: Removal of existing fixed passenger dock Replace the existing cruise passenger terminal - including dock, building and upland facilities to provide continued passenger marine docks in Southcentral Alaska. ALASKA --� `y }loyal Caribbean Group Rn11PU4D Project Scope The project includes the following components: • Removal of existing fixed passenger dock. • Construction of a new passenger dock which will be a floating double -berth pier, spanning 100 feet in width and 748 feet in length, complemented by a 200-foot-long transfer span providing for passenger loading and unloading during high or low tides for the next 50 years.. • A 68,000 square foot cruise terminal with indoor space capable of accommodating anticipated cruise passenger traffic. • Facility parking improvements enhancing lot safety with forward -only vehicle movement pattern and parking for both cars and motorcoach/buses. • ARRC, the Seward Company and City of Seward are submitting an EPA grant application that will allow for the installation of shore power capable berths significantly reducing or eliminating air emissions from ships. Cost and Funding In 2019, the State of Alaska awarded approximately $4 million in FY2O Designated Legislative Grants with money drawn from the Commercial Passenger Vessel Excise Tax revenues. These grants were used to fund planning, design and project management costs that precede construction. Right: Design of new floating dock and 13 acre upland facility. Below: ARRC's Seward Passenger Facility design. Above: The existing dock and terminal footprint. PROJECT FACTS In 2022, the Alaska Legislature authorized ARRC to issue revenue bonds to support replacement of the dock and terminal up to $60 million. In response to construction inflation and scope changes, in 2024 ARRC requested approval for an additional $75 million in bond authorization from the Alaska Legislature to complete the project by 2026. The cost for the floating pier design and passenger facility is $137 million. The revenue bonds will be secured by a 30-year customer agreement with anchor tenant Royal Caribbean Group. Project Background Completed in 1966, the existing Seward passenger dock is a pile -supported pier dock with a concrete deck. It measures 736 feet long and 200 feet wide. The dock provides support and moorage space for freight vessels and non -cruise vessels during the visitor off-season. The dock's pile foundation has experienced significant corrosion over its half -century lifespan, which limits the dock's remaining useful life and has resulted in weight restrictions. The Dale R. Lindsey Alaska Railroad Intermodal Terminal building is located on the northern end of the passenger dock. The 26,555 square foot, steel -framed rectangular structure features a flexible layout and a capacity accommodating up to 1,675 people. Outside of the cruise ship season, terminal building space is available to rent as a venue for sports practice, community festivals, conferences, weddings and other celebrations or events. Traffic staging to support cruise ship activities takes place in a five -acre area north of the terminal. The area is used for loading and unloading passengers and luggage from buses and trains. In 2015, ARRC initiated the Seward Marine Terminal Expansion Planning Project (also known as Railport Seward) to consider current and anticipated long-term needs at the Alaska Railroad's Seward Marine Terminal. The project included three studies — Passenger Traffic, Freight Traffic and Transportation Connectivity. Completed in 2017, these studies resulted in a Master Plan supporting development ALA�K� RAILROAD strategies to meet current and future demand, including expansion of the adjacent Seward freight dock and demolition of the defunct and inoperable coal loading equipment at the Seward mooring dock. Within the Master Plan, ARRC considered several different passenger terminal replacement concepts. The plan recommends replacing the aging dock, and constructing a new passenger terminal building and associated facilities. To support replacement of the Seward passenger dock and facility, ARRC, Royal Caribbean Group (RCG) and The Seward Company designed and developed plans to replace the outdated pier and modernize the passenger infrastructure. ARRC's bonds would be secured through a long-term use agreement with RCG as anchor tenant and create a dock and facility with a 50-year lifespan. Top: Underside of the Seward passenger dock, photo taken in Sept. 2023 , showing signi age. Bottom: Seward passenger dock with cruise ship at berth. cant corrosion and Seward Passenger Dock Replacement • Page 2 PROJECT FACTS Project Schedule Seward Passenger Dock and Passenger Facility January 2024 - Local developer The Seward Company approached APPC with a proposal to redevelop the Seward passenger dock and terminal July 2024 - Agreement to Development Terms January 2025 - Uplands construction September 2025 - Marine demolition of existing dock and begin installation of a new floating dock April 2026 - Cruise ship operations at the new dock ALASKA RAILROAD OCKSC For More Information • Visit sewardcompany.com to see additional project information. • Visit the ARRC website's Projects section for more information on the master planning effort — www.AlaskaRailroad.com > CORPORATE > Projects (Seward Capital Projects dropdown) • For public comment or inquiry, use Public_Comment@akrr.com or call (907) 265-2449. Conceptual designs of the Seward passenger dock and facilities. ALASKA RAILROAD Royal Caribbean Group 3Q a 177 Q Apr. 2026 - cruise operations at new dock Sept. 2025 - demo and installation of new dock Jan. 2025 - uplands construction begins Q July 2024 - agreement to development terms Q Jan. 2024 - project development offer Seward Passenger Dock Replacement • Page 3 R ►LASKA RAILROAD F7 SEWARD PASSENGER DOCK REPLACEMENT NEW DOCK AND TERMINAL BUILDING OPENING SPRING 2026 SEWARD'S PASSENGER DOCK AND TERMINAL ARE CRITICAL INFRASTRUCTURE FOR ALASKA'S VISITOR INDUSTRY. Owned and operated by the Alaska Railroad Corporation (ARRC), the current Seward passenger dock is at the end of its useful life and cannot continue to support Seward's cruise visitors without replacement. Early 2024, ARRC received a $137 million proposal from local developer The Seward Company for a new state-of-the-art dock and terminal facility. The debt associated with the purchase will be secured by a long-term use agreement with anchor tenant Royal Caribbean Group; this unprecedented 30-year agreement is critical to the project, and a strong signal of Royal Caribbean's commitment to Seward and Alaska. Recently the City of Seward was awarded $46 million from the EPA's Clean Ports Program. The grant, together with a 1o% match provided by The Seward Company, will enable the city to deliver shore power to the new facility, allowing cruise ships to cut off their diesel generators in port and substantially reducing emissions. This team effort from the City of Seward, the Seward Company, the Alaska Railroad, and anchor tenant Royal Caribbean Group will be a great investment in green cruising in Alaska as the new facility supports the next 50 years of visitor demand. $137 million New Seward passenger dock & terminal Additional investment by ARRC to enhance transfer span for light freight $46 million Federal grant won by City of Seward to deliver shore power Grant match provided by the Seward Company BOUT THE A LASKA ' AILROAD ARRC provides year-round rail transportation throughout Southcentral and Interior Alaska, in addition to real estate holdings that include the Seward passenger dock and terminal. The self-sustaining, state-owned corporation connects Alaskan communities to goods, passenger services and economic opportunity. safety • service excellence • integrity • teamwork • sustainability 1 205,000 Number of cruise r. passengers in Seward t' in 2024 low 88 Number of cruise ship calls in Seward in 2024 $882 Average spending in Alaska per cross -gulf cruise guest (additional to cruise and land packages)' 1 c!� OCK e v 2024 ARRC Board approves necessary commercial contracts with the Seward Company & Royal Caribbean Group. Uplands construction begins. 1966 Seward passenger dock constructed originally serving passengers and freight. • • • • • • 2026 New Seward passenger dock and terminal complete for summer 2026, ready to support next 50 years of cruise visitors. 2025 Construction of new pier and terminal building to begin at end of 2025 cruise season. 2015 ARRC initiates Railport Seward, considering current & long-term needs at Seward Marine Terminal. 2001 ARRC completes Seward freight dock; prior dock will serve as a passenger -only facility. alb re. Pro GATEWAY TO SOUTHCENTRAL & INTERIOR ALASKA • In 2022/2023, tourism generated $5.6 billion in economic output, with $3.9 billion in direct spending.' • Over 40% of summer visitors to Denali and Fairbanks originate from cross -gulf cruises.' • In 2020, a single year of no -sail orders cost the city of Seward an estimated $2.4 million on tax revenue. www.alaskatia.org/resources/tourism-works-for-alaska https://www.documentcloud.org/documents/20610408-04082021-cruise-impacts-to-alaska p 3 .— .• ,f • I 4) r CORP AFFAIRS