The Alaska Railroad’s Board of Directors greenlit the Seward Company’s purchase agreement for a new cruise facility in Seward, Alaska. Valued at $137 million, the agreement marks the start of construction for the largest turn port facility in the Alaska cruise industry.
The new facility, called the Port of Tomorrow, will include a 68,000-square-foot terminal building and a 750-foot, two-berth floating dock designed to accommodate modern cruise ships.
Upon completion, the Alaska Railroad will purchase the renewed cruise port with a 30-year pier usage agreement with Royal Caribbean Group, which owns Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
The company will be able to accommodate its 4,100-passenger Quantum-class ships at the new port following the expansion.
The agreement grants Royal Caribbean Group preferential berthing rights while allowing the Alaska Railroad to operate the facility as an open dock welcoming multiple cruise lines.
“Large developments are never easy. Today’s greenlit approval was two years in the making,” said Mickey Richardson, CEO of the Port of Tomorrow, representing the Seward Company. “The agreement guarantees cruise ships will continue to serve Seward for the next 30 years and beyond.”
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The construction of the state-of-the-art port will begin after the conclusion of the 2024 Alaska cruise season in September. Norwegian Cruise Line’s Norwegian Jewel will be the final ship arriving at and departing from the port on September 23, 2023.
Foundational work will be completed before winter with pier construction set to commence in fall 2025, ensuring no disruption to the summer 2025 cruise season, which will commence in May when Silversea Cruises’ Silver Moon arrives on the 15th.
The port is expected to be compete in the of spring 2026.
Expansive Growth Amidst Growing Concerns
The new terminal in Seward will be the largest community space in the area with a terminal capable of welcoming travelers and handling provisions for cruise ships.
The 750-foot floating dock will be the largest of its kind and includes features such as freshwater provisioning, fuel supply from a local vendor, and shore power support.
A 150-foot transfer span will connect disembarking travelers directly to an Alaska Railroad train or other ground transportation. The port will also add a parking lot to accommodate 48 cars and 32 bus stalls.
Jason Davis, president of Turnagain, the design and build firm for the Seward port, emphasized the significance of the project, saying, “Alaska’s infrastructure growth, and for that matter, the growth of the tourism industry, depends heavily on projects supported by the cruise industry, global travel partners, and Alaskans.”
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According to the Alaska Travel Industry Association, the visitor industry is the second-largest private-sector employer in the state, accounting for one in every 10 Alaska jobs and generating an economic impact of over $5.6 billion.
As Seward looks to expand its cruise offerings, other ports across the state are facing growing concerns of overtourism from residents. Juneau, the ninth busiest port in the U.S., recently agreed to restrict cruise guests per day to 16,000, except for Saturdays, which is set to 12,000.
The agreement also limits the number of ships calling per day to five, with residents pushing to have a cruise-ship-free Saturday.
Sitka, Alaska, which welcomes 600,000 cruise passengers annually, is currently seeing residents push to cap its numbers at 300,000.
Currently, the 2,376-passenger Norwegian Jewel and the 696-passenger Silver Muse and Silversea’s 728-passenger Silver Nova homeport in Seward this season on voyages between it and Vancouver.
Royal Caribbean International’s 2,466-passenger Radiance of the Seas, Regent Seven Seas Cruises’ 750-passenger Seven Seas Explorer, Crystal Cruises’ 740-passenger Crystal Serenity, Viking Oceans’ 930-passenger Viking Orion, and Celebrity Cruises’ 2,158-passenger Celebrity Summit are also homeporting in Seward.
