Anchorage

New design for Port of Anchorage is unveiled

Mayor Dan Sullivan and members of the port project team unveiled another new design for the Port of Anchorage on Friday, taking a simpler approach to fix what the municipality started years ago.

The design calls for the abandonment and removal of unfinished construction to the north, along with two new terminals, two new docks and a new administration building set back from the waterfront, said Douglas Playter, a senior project manager with CH2M Hill, the engineering firm charged with getting the port project back on track.

Of the four design concepts Playter presented to the Anchorage Assembly Friday, the one ultimately selected had the lowest price tag, he said. Preliminary cost projections put the project at $485 million. Still, it's more than triple the amount the municipality currently has saved for the project.

"I was glad to see that they had considered multiple options and they seem to have a realistic path forward," said Assembly member Amy Demboski. "The real question is funding."

Back in 2003, the municipality began its first attempt at revamping the port, located on the eastern bank of Knik Arm just north of downtown Anchorage. Officials selected a design known as "open cell sheet pile" to essentially create new land to the north of the terminals. Giant hammers drove long sheets of steel into the Knik Arm seabed that would connect in a series of overlapping U-shapes. The front of the cells would create a new dock face and the area behind would be filled with gravel.

But the plan didn't work. Inspection revealed that some steel sheets had bent, jammed and separated during installation. Construction was halted by 2010 with the structure about one-third built.

Of the $439 million reserved for the port project, about $300 million was spent. Now the municipality has roughly $130 million left to begin the process again.

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"I think it's going to be pretty tough to come up with another $350 million," said Assembly member Patrick Flynn. "But I'm not sure we have a choice."

Since the original port project was scrapped, the municipality has spent millions of dollars maintaining the current structure. The port was built using the traditional design of dock on piling, or posts. But the piling has corroded. In 2014, the municipality repaired 100 piles for more than $2.6 million. It repaired more in years prior, according to Todd Cowles, port engineer.

In the new design, terminals and docks will also be built using dock on piling, said Lindsey Whitt, Port of Anchorage spokeswoman.

Construction is expected to begin in 2016 and last six years. The plan assumes that full funding will be available at the start of construction, Playter said.

He said the port will be completed in six phases. Phase 1 includes demolishing and rebuilding the administration building, creating a new dock and removing 15 to 20 acres of gravel and steel that jut into the water to the north -- part of the prior construction.

Clearing out the gravel should improve water flow and decrease the amount of sedimentation buildup, which can restrict ships, Playter said.

The administration building, constructed in 1961 on a dock, will be rebuilt on solid ground, leaving more room for the two major shippers that use the port, Whitt said.

"It will be demolished because the land is more valuable for our customers," she said.

Horizon Lines Inc. will gain about 2 acres in its leasing area, while Totem Ocean Trailer Express Inc., or TOTE, will see roughly a 4-acre increase, Playter said.

The new terminal and docks -- essentially replacing the same number of old terminals and docks -- will extend about 70 feet farther into the water to accommodate larger ships, Whitt said.

But before construction begins, an array of studies must be completed and permits acquired. The design must also reach a further level of completion. On Friday, it was at about 15 percent, Playter said.

George Lowery, Alaska director of TOTE, said Friday that he gave the design a "thumbs up."

"We've been very involved in this process as it's been described," he said. "It's a complete 180 over the process in the past."

The design was selected after a week-long meeting of key stakeholders in the Port of Anchorage project, including TOTE, Horizon, the U.S. Army Corps of Engineers and the Alaska Railroad Corp.

Assembly member Pete Petersen said Friday he also approved of the new design and hoped it would bring more cruise ships to Anchorage, further fueling the local economy. But, he said, he was concerned about funding.

"The question, of course, is going to be how and where are we going to find the money," Petersen said. "It's really unfortunate that we didn't go through this process before we went to rebuild the port. I think we could have already had it finished at this point and wouldn't be looking at having to find huge sums of additional money."

Earlier this month, Sullivan flew to Washington, D.C., to discuss funding and loans with U.S. Department of Transportation officials, asking them to look out for grants that may apply to the Port of Anchorage project.

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Sullivan said he plans to ask the state Legislature for funding during the upcoming session. Whitt said she expects the funding mechanisms for the port to be diverse.

Some money may also come from pending litigation. In two lawsuits, the municipality has sued firms tied to the construction, management and design of the earlier failed port overhaul. The city is seeking roughly $340 million in damages.

When discussing funding, Sullivan underlined the importance of the Port of Anchorage as a reason why the project should rank as a top state priority. About 90 percent of Alaska's consumer imports flow through the port.

"It's probably the most critical piece of infrastructure that needs to be fixed," Sullivan said.

Tegan Hanlon

Tegan Hanlon was a reporter for the Anchorage Daily News between 2013 and 2019. She now reports for Alaska Public Media.

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