Alaska Railroad to replace dock, terminal in Seward

The Alaska Railroad Corp. (ARRC) plans to replace an aging terminal building and passenger dock in Seward with the purchase of $137 million in new infrastructure proposed by local developer Seward Co.

The existing dock, which the railroad has owned and operated since it was built in 1965, is approaching the end of its useful lifespan. The proposed opening of the new dock is scheduled for spring 2026.

"This dock is a vital piece of Alaska’s transportation infrastructure, not just for the community of Seward, but for Alaska’s visitor industry across southeast, southcentral and the interior," said ARRC President and CEO Bill O’Leary in a press release. "As maintenance becomes more challenging, it’s imperative we replace the old dock. This new, state-of-the-art infrastructure will serve Alaskans for the next 50 years."

The infrastructure also includes a new 60,000-square-foot terminal building that will feature an open floor plan designed for safe and efficient boarding. Checked-in and transiting guests will be able to easily exit and reboard the ship. During the winter months, the workstations and dividing walls of the terminal can be moved, making the new facility the largest flex-space in the region, ARRC officials said.

ARRC plans to purchase the new dock and terminal facility primarily through bonding. While ARRC must receive authorization from the Alaska legislature to issue bonds, the debt is an obligation of the railroad. In this case, the bond debt will be secured by a long-term agreement with Royal Caribbean Group. The arrangement will be a 30-year contract emphasizing the cruise line’s investment in Seward.

The project timeline requires that ARRC receives bond authorization before the close of the current legislative session, enabling the developer to break ground in fall 2025 to be ready with the new facility for the 2026 summer season.