New ferries on schedule, on budget

The Alaska-class ferries destined to be the future of the Alaska Marine Highway System in Lynn Canal are under construction on schedule and on budget.

That was the report of AMHS General Manager John Falvey to the system’s advisory board, which met in Anchorage on Monday.

“The work looks really good as far as we’re concerned,” he said.

The $120 million Alaska-class project involves the construction of two 280-foot dayboat ferries capable of carrying 300 passengers and 60 cars.

The state awarded a construction contract to Ketchikan’s Vigor Alaska Shipyard in October 2014, and construction is scheduled to be complete on Oct. 16, 2018.

“Vigor Shipyard is doing a bang-up job putting it together,” said Mike Neussl, deputy commissioner of the Alaska Department of Transportation and Public Facilities. “I think the workforce there is on target and tracking.”

While the Alaska Marine Highway is experiencing severe budget strain — it is forecasting that four of the system’s 11 ferries will be laid up next summer for lack of operating money — the Alaska-class ferries are expected to be cheaper to operate than the existing Lynn Canal boats and may save the system money if older boats are sold or scrapped as they become available.

Falvey and Neussl also said Monday that planning is progressing on the replacement of the ferry Tustumena, which serves Homer, Kodiak, the Alaska Peninsula and Aleutians. The Tustumena, built in 1964 and reinforced after design flaws were found, is showing increasing signs of wear, including metal fatigue.

The state had earmarked $10 million for design of a new ocean-going ferry. “As far as the Tustumena’s concerned, we had $10 million to design, and we’ll be able to do it with six,” Falvey said.

A final design is expected to be complete no later than the end of January, and then the ferry system will pursue federal funds for construction of the new Tustumena — which is estimated to cost about twice as much as the Alaska-class project.

In other business, Falvey and Neussl told the board about continuing problems with the AMHS’ service to Prince Rupert, British Columbia.

Conflicts between American and Canadian law have meant the ferry system has not been able to replace a badly worn dock in Prince Rupert: Both countries require that steel used in the project be bought domestically, and neither has been willing to budge.

Adding to Prince Rupert’s woes is a ripple effect of the ferry system’s budget cuts. Only a handful of AMHS’ ferries carry the SOLAS (Safety Of Life At Sea) certification that is required for American ships making ports of call internationally. Some of the ferries taken out of service for budgetary reasons include those that have the SOLAS certification, which means the ferry system might not have ships available to serve Prince Rupert.

The ferry system had applied for a waiver from the U.S. Coast Guard but didn’t receive it. “We thought we had it, and at the last minute it kind of turned on us,” Falvey said.

Of course, among all others, the issue of budget stability looms largest for the ferry system. In a discussion Monday, members of the advisory board discussed how to best gather input to create a schedule for a leaner, smaller ferry system.

“I want to put it out there very clearly: There is no money,” said advisory board chairman Robert Venables. “Our approach should not be about how do we get more money. … Our charge is to find those solutions to create the best service possible with the vessels and the staffing allowed by the fiscal note.”

• Contact reporter James Brooks at 523.2258 or at james.k.brooks@morris.com.

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