A proposed 20-year plan seeking to restore the ailing Alaska Marine Highway System to a more reliable and sustainable transportation hub calls for, above all, adequate funding for operations and construction.

It also envisions an ambitious increase in service to smaller communities in particular with a roughly 45% increase in total port calls — while shrinking the total fleet from nine ships to eight.

The draft plan published last Friday seeks about $3 billion in vessel and infrastructure spending, plus operating budgets rising from $173 million this year to $207.4 million in 2025. Gov. Mike Dunleavy is proposing a $159.4 million operating budget for the ferry system during the coming fiscal year and relying on the federal government to provide the majority of those funds.

A public comment period for the draft plan is open until March 30, with the proposal and comment form at https://publicinput.com/i56446.

The proposed long-range plan was released two days after the Marine Highway System got a grade of D — tied for lowest along with wastewater — on the state’s Infrastructure Report Card as evaluated by the American Society of Civil Engineers. Both the report card and long-range plan describe the current ferry system as plagued by a fleet of aging vessels that are unreliable, plus a crisis-level shortage of workers due to subpar pay and other working conditions.

“The consequences of not implementing the (long-range plan), whether through insufficient funding or lack of action on key recommendations, would result in continued decline in ferry service reliability and service levels,” the draft report states. “Without necessary vessel replacements and maintenance, aging ships would become increasingly prone to mechanical failures, leading to more frequent cancellations and extended service disruptions. The condition of terminal infrastructure would gradually deteriorate, increasing safety risks and requiring costly emergency repairs.”

“The loss of dependable ferry service would impact residents, businesses, and visitors alike, limiting access to essential goods and services, disrupting local economies, and further isolating communities that rely on AMHS as their primary transportation link.”

Currently many smaller communities such as Kake, Tenakee Springs and Pelican receive little or no ferry service during the winter months in particular. The draft plan calls for Kake to get service “a few times a week” by 2045, while the existing winter schedule calls for one stop a month. Sitka, which has one stop per week in the winter schedule, would also see ships “a few times a week” if the plan is implemented.

Dunleavy has been strongly criticized during his two terms as governor for a lack of ferry system support, including proposing to cut its budget in half during his first year and more recently for reluctance to provide sufficient state funds to secure federal allocations.

His proposed budget for the coming fiscal year includes paying for nearly half of the ferry system’s operating budget using federal funds included in the 2021 Infrastructure Investment and Jobs Act, but that money has not yet actually been allocated to the state. Concerns have been expressed by lawmakers, including U.S. Sen. Lisa Murkowski, that such funds may be among those frozen or clawed back by the Trump administration.

However, the ferry system’s erosion has been long term as the 185,000 passengers and 65,000 vehicles carried in 2024 are down from a peak of about 400,000 passengers and 110,000 vehicles during the early 1990s.

The proposed long-range plan outlines a three-stage timeline that retires seven older vessels and replaces them with six new ones. While an eight-fleet ferry system would be one smaller than the current nine ships, at least one vessel and frequently more has been out of service in recent years due to long-term term maintenance and unscheduled repairs. AMHS Director Craig Tornga told state lawmakers last month multiple ships are going through extended shipyard periods “due to wasted steel.”

The first stage involves “replacing AMHS’ most vulnerable assets, with the goal of stabilizing the system” between 2025 and 2028, including bringing one new vessel online. A middle stage between 2029-2035 envisions “three new vessels entering service and two vessels retiring,” with the final stage between 2036-2045 seeking two additional vessels and “regular maintenance of the assets” replaced during the first two stages.

The six new vessels added during those 20 years would join two existing vessels operating as day boats — the Tazlina christened in 2018 and Hubbard put into service in 2023. The plan calls for all of the new ships to have hybrid propulsion systems, and to “standardize fleet and terminal infrastructure to promote interoperability.”

Extensive terminal infrastructure work is also called for in the plan, with 56 ongoing projects during the first stage, 72 during the second and 126 during the third.

Goals in the plan call for both more port calls and passenger revenue, with the latter paying a gradually increasing share of the ferry system’s costs.

A total of 4,600 port calls is projected this year, with the plan seeing an increase to 5,200 by 2028 and either 6,600 or 6,700 in 2045 (different figures are cited in different portions of the report). “Farebox recovery” to pay for AMHS’s costs is targeted to increase from 34% during the first stage of the plan to 41% by 2045.

The ferry system currently has a 24% vacancy rate, one of the highest among state agencies, because it is considered a “farm system” for specialized positions, Tornga told lawmakers during his presentation last month. Washington state’s ferry system, for instance, pays pilots 25% more than Alaska’s.

The proposed long-term plan seeks to recruit and retain employees with measures including additional funds for maritime scholarships, establishing a referral bonus program, and “partnerships with training institutions, educational institutions, tribal organizations, non-profit organizations, and other strategic partners to develop a workforce pipeline.”

The plan also states new vessels will operate more efficiently in terms of manpower needs, so the current average required crew size of about 560 can be reduced to 530 by 2045.

“As of January 30, 2025, AMHS had 484 crew members, falling well short of the 568 crew members required to provide the currently desired service levels with seven vessels operating and two vessels in layup,” the draft plan states.

A Zoom webinar featuring an overview of the draft plan is scheduled at noon March 19, with information about the meeting available at https://publicinput.com/i56446. Officials also note further input and revisions are planned if it formally adopted.

“While the Plan is a visionary document that reflects current and anticipated future needs based on the system’s current operating configuration, it does not preclude consideration of future system expansions or modifications, new terminal locations, or service to new communities,” the draft states. “Rather, it is a living document that, by statute, is to be updated at least every five years.”