It’s official! On Thursday, March 6, 2025, Governor Mike Dunleavy of Alaska signed the legislation for House Bill 65 (HB65) — the final step in giving the Alaska Railroad Corporation (ARRC) up to $135 million in revenue bonds.
This money will be used to fund the construction of a new passenger dock and terminal facility in Seward, Alaska — something that is urgently needed.
ARRC’s revenue bonds will not be using any state money to finance this dock — and is instead being secured by a 30-year agreement with an anchor tenant.
In this case the anchor tenant is Royal Caribbean Group, which guarantees that the revamped port will see a minimum of 140,000 visitors annually — though it will be available to other cruise lines as well.
To finance the new port, cruise fares will be supplemented with improvement fees, which will enable passengers to cover the bond debt repayment over time. The amount per passenger has not yet been announced.
“This bill demonstrates how state government can spur economic development and growth with no impact to state finances,” said Governor Dunleavy, adding, “The new cruise ship dock in Seward will maintain Alaska’s status as one of the world’s premier tourism destinations.”
ARRC’s current Seward passenger dock and terminal facility is 60 years old and in need of replacing. After a study in 2023, it was found that the port was deteriorating and heading for complete structural failure.
Even so, Seward remains a popular cruise port that saw 205,000 passengers in 2024 — and is now set to be demolished in the fall of 2025 so that the new dock can be built and installed ahead of the summer 2026 cruise season.
The all-new floating barge dock will be a double-berth pier — sitting at 748-ft long and 100-ft wide, with the ability to accommodate Royal Caribbean’s Quantum-class cruise ships that can host up to 4,100 passengers per sailing.
ARRC will be the owners and operators of the facility – which has been dubbed the “Port of Tomorrow.”
“We’re excited to advance this needed project with the strong support of the Governor, the Legislature and the City of Seward,” added Bill O’Leary, President & CEO of the Alaska Railroad.
Seeing that Seward is in need of a new cruise ship terminal and dock, the state has been working quickly to get this project approved.
Seward’s Port History and Future
The original port has been crucial to Seward’s economy — as this city and its port supplies the needs of many cities in western Alaska.
However, this port is not designed to accommodate year-round operations for cruise ships — something the new build will be solving.
But even when the weather isn’t optimal for cruising, the new facilities will still offer storage and event space, making it extremely versatile.
With over 100 cruise ships visiting during a typical season — up from just 64 in 2015 — the existing infrastructure is rapidly decaying and spurred the Alaska House of Representatives to work to raise the bond limit.
Read Also: Seward Cruise Port: Terminal, Getting Around and What to Do
The journey to replace the aging port began in March 2024, when the project’s cost was announced at $137 million. But initially, the Alaska Railroad Company had authorized only $60 million in bonds, falling short of the required amount.
On February 17, 2025, House Bill 65 was passed, enabling a bond issue for $135 million — covering nearly all of the project costs.
Beyond Seward, the popular port of Juneau has faced its own issues related to overcrowding — and is now planning on building its own new facilities that are set to open in 2027 on Douglas Island with funding from Goldbelt, Inc. and Royal Caribbean Group.
Cruise tourism has been booming in Alaska, with the state growing from 878,000 cruise passengers in 2010 to 1.719 million cruise passengers in 2024.
As the state rushes to improve its cruise infrastructure, it makes way for even more cruisers to boost the economy, further solidifying Alaska’s position as a premier tourist destination.
