Thirteen days after the Alaska Industrial Development and Export Authority notified Vigor Alaska that AIDEA would not renew Vigor’s contract to operate the AIDEA-owned Ketchikan Shipyard when the current agreement expires on Nov. 30, the two entities on Thursday released a joint statement that they have “commenced discussions this week to ensure the Ketchikan Shipyard remains operational.”

“After AIDEA’s non-renewal notice for Vigor’s current contract, both parties are discussing ways to extend our working relationship and operations at the shipyard beyond 2025,” stated the brief, four-paragraph statement.

The announcement didn’t provide much further detail about what was being discussed, beyond the idea that “Both organizations are working together on potential opportunities to extend our working relationship by exploring new opportunities and partnerships to improve the shipyard’s ability to serve Alaska’s maritime needs.

“This is critical for the more than 100 family-wage jobs which support the Ketchikan economy year-round,” states the announcement.

Vigor Alaska, a subsidiary of the Portland, Oregon, based Vigor Industrial, has operated the Ketchikan Shipyard since Vigor purchased Alaska Ship & Drydock, the Ketchikan-based former operator of the shipyard, in 2012.

In 2015, AIDEA renewed Vigor’s operating agreement for another 10-year term, with the possibility of another 10-year extension in 2025.

On Feb. 28, AIDEA Executive Director Randy Ruaro sent a letter to Vigor Alaska President Adam Beck, notifying Vigor that AIDEA had decided not to extend the final 10-year extension to Vigor.

“After reviewing Vigor’s long-term economic performance projections, extensive studies, repair budgets, and other documentation relating to the Shipyard, AIDEA has reasonably determined that Vigor has not demonstrated its ability to fully utilize all of the Shipyard’s economic capabilities,” Ruaro wrote, adding that Vigor’s contributions to the shipyard “Repair and Replacement” account are inadequate to maintain the shipyard in good condition.

“Accordingly, Vigor’s term at the Shipyard expires as of Nov. 30, 2025,” wrote Ruaro, although adding later that “AIDEA is willing to discuss a plan for wind-down and demobilization of up to one year through March 1, 2026.”

According to the letter, AIDEA would, at some point in the next few weeks, issue an “RFI seeking new opportunities” for the shipyard.

“I expect that it will also be necessary to have on-site visits with prospective occupants,” Ruaro wrote in the feb. 28 letter.

On March 8, responding to an inquiry from the Daily News, Ruaro wrote in an email that AIDEA anticipated that an RFI would be issued “in the next 30 days,” and that the RFI will be a public document on the Alaska Public Notice website.

In response to a question as to how soon would a new operator need to be contracted in order for there to be a “seamless transition” at the shipyard if the current agreement ended in November, Ruaro wrote that the “Timing of a transition depends on a number of factors.  

“In the first instance, we expect VIGOR to keep its word and perform several months of work already under contract for AMHS, DPS, and others,” he wrote.

The circumstance did have an effect on Ketchikan Gateway Borough airport ferry work, Borough Manager Ruben Duran wrote in his manager’s report for the Borough Assembly’s regular meeting on March 10.

Duran noted in the report that the federally mandated biennial Coast Guard hull inspections and maintenence on the airport ferries have “historically been performed at the Ketchikan Shipyard.”

“The Oral Freeman ferry is due for drydock in April, but Vigor is not accepting new contracts,” Duran wote. “The USCG Vessel Inspection division has agreed to work on granting a one-year hull inspection extension to allow time to explore alternative drydock options.

“The nearest U.S. facility capable of servicing the ferries is in Bellingham, Washington,” Duran continued. “However, sending a ferry there annually would place a heavy financial and operational burden on the airport, including travel time, fuel costs, and the need for licensed crew. Sending the ferries out-of-state for drydock services is not sustainable long term.”

Thursday’s joint announcement from AIDEA and Vigor highlighted the Ketchikan Shipyard’s role as a “critical economic asset to the region, supporting high-quality employment opportunities and bolstering Alaska’s Marine Highway System.”

“ For more than two decades under Vigor’s stewardship, the shipyard’s skilled workforce has exemplified excellence in maritime services, significantly contributing to the economic vitality of Ketchikan and Southeast Alaska,” according to the announcement. “AIDEA and Vigor are united in their commitment to preserving this essential shipyard as a cornerstone of opportunity for the community and the state.”

The announcement concluded by stating: “Looking ahead, AIDEA and Vigor remain optimistic about the Ketchikan Shipyard’s future and its enduring role in the region. Further updates will be provided as negotiations advance, and we anticipate sharing additional developments in the near future.”