PORT ACTIVITY UPDATE (II

PORT ACTIVITY UPDATE Port of Alaska A crucial link for the U.S. in the north Pacific

As one of 17 commercial strategic seaports for the United States Armed Forces, the Port of Alaska plays a key supporting role for the U.S. Army in the north Pacific. The Port is also a crucial access point when it comes to ensuring food security for Alaskans in the event of a major disaster. It’s no wonder then, that infrastructure resiliency is a constant focus for Director Steve Ribuffo. “We have three missions here at the Port,” Ribuffo said. “Commerce to generate revenue, support for the Department of Defense, and disaster response and recovery.” And while Ribuffo continues to work his way through a Modernization Plan that identifies a number of projects that will bolster the Port’s facilities, the question of whether Alaska’s legislators can convince Washington to invest in in the State’s infrastructure in a timely manner remains to be seen.

Sectioned into five phases, the Port of Alaska Modernization Program addresses the needs of Anchorage’s waterfront area and, in a larger scope, the needs of the entire State. Phase 1 — currently underway, on track and on budget — deals with construction of the replacement of the Petroleum / Cement Terminal (PCT); Phase 2 will address stabilization of the north extension and construction of replacement cargo docks; and Phases 3 through 5 will continue the redevelopment of the northern extension as well as upland expansion for the Port’s Terminal 3.

While Phase 1 is almost complete, and the Phase 2 permitting and design effort is about to start, timing for completion of the entire Program may likely take a decade or more. “We’re very conscious of the need to ensure there is funding in place as we move forward with the phases, but we also must ensure we have the budgets to properly maintain that infrastructure in the future,” Ribuffo said, adding that the business case for each project is developed so that facilities are not “overbuilt” for current demand but still be flexible enough to easily expand in the long term.

Progress

“We’re in the second year of construction for the Petroleum / Cement Terminal and ahead of schedule,” Ribuffo said. “There’s one piece of the project that’s disconnected from the facility itself—relocation of a utility boat floating dock—which still requires work on permits with the US Army Corps of Engineers and the National Marine Fisheries Service, but that process is not slowing down the construction of the PCT.”

With all of the in-water work (e.g., pile driving) complete, the Port is currently setting pile caps on top of 12-foot diameter monopile mooring and breasting dolphins before adding the catwalks that will connect them. Concurrently under construction are two vertical structures on the dock — a hose tower and a control building. “Because of the extreme tides we can get here, the hose tower allows for 75-foot-long hoses that are flexible enough to accommodate any swings in tides and still remain connected to the ship. The control building will house shut-off valves and emergency response controls,” Ribuffo said. “We’re also installing the fendering system at the front of dock and the breasting dolphins, and hooking up the power and water,” he said, noting that all of the fuel plumbing is in place and being tied into the lines into the existing valve yard.

“If we stay on schedule, we’ll be done by the end of November and be able to have a ribbon-cutting ceremony in early December to declare the terminal operational,” said Ribuffo. He noted that the new terminals will be smaller than what currently exists. “For major capital projects like this, you need a business case that is affordable. When we looked at the requirements needed to satisfy the known business we have and the predictable demand for petroleum (we don’t export it so it’s fairly easy to calculate future volumes), and balance that with the challenge of being able to cover the cost of the debt as well as future budgeting for maintenance, it doesn’t make sense to build more than we can afford.” Having said that however, Ribuffo was quick to add that there is the ability to expand the size of the facility in the long term should forecasts change.

Ribuffo went on to say that the cement part of the PCT is a relatively easy piece as all the cement offload equipment is mobile and simply needs to be relocated to the new facility. Once complete, the new dock is 1,500 feet closer to the storage dome which will greatly increase the speed for offloading cement.

Concurrently with this effort, Ribuffo and his team are starting on Phase 2 of the Modernization Program — the cargo docks. “It will take about two to three years to get all of the permitting done and we have about two years of design work that will be done concurrently,” he said, adding that some of the land-side work can be done in parallel, including relocating the Port’s offices

Sectioned into five phases, the Port of Alaska Modernization Program addresses the needs of Anchorage’s waterfront area and, in a larger scope, the needs of the entire State.

as well as some earth work at the north end of the port to remove fill that will provide for more room for cargo ships to maneuver. The construction phase for the cargo docks is estimated to last eight to 10 years but Ribuffo is hoping that ways to cut that timing down will be found as they go through the design process.

Financing

Despite the recent passage of a threetrillion-dollar infrastructure package for the United States, competition for funding will be tough, not just amongst the various transportation modes — road, rail, airports, bridges, etc. — but also between ports. “Alaska has always been challenged when it comes to securing federal dollars,” said Ribuffo. He commended Alaska’s Senator Murkowski on a recent video produced to highlight the importance of the Port of Alaska as well as Anchorage’s Mayor Dave Bronson’s work with Alaska’s Governor, congressional delegation, and mayors of communities who benefit from the Port. “Everyone recognizes our need — especially given the severe corrosion issue we have with all our docks — it’s always a challenge navigating the politics of funding and competing with other states who have a much louder voice in Washington.”

Another consideration in funding is the question of how to spread the cost beyond residents in the port’s immediate jurisdiction. “If you compare us to other ports, like LA/Long Beach or another large coastal port, the cargo going through that port will be going to and from multiple destinations throughout the U.S. and around the globe, so the cost for infrastructure projects can be shared with users well beyond the port’s own area. Because this Port serves Alaska almost exclusively, the tax burden for Alaskans would be tremendous without federal funding.”

Urgency

While the Modernization Program is meant to bring the Port’s facilities up to modern-day standards, the urgency for the Program to be done as quickly as possible lies in the fact that there is a severe corrosion problem that is very possibly “single-digit years away” from potentially shutting down parts of the dock that won’t be able to withstand heavy loads. It’s an issue that keeps Ribuffo up nights. “Of all the state and federal emergency response plans developed for Alaska, I have yet to see one that doesn’t assume the Port of Alaska is going to be there as part of the recovery infrastructure. Yet, we are as vulnerable as any other piece of infrastructure in the State — even more so given the condition of the docks.”

Given that half of Alaska’s freight comes in through the Port — and all of the U.S. Army’s equipment and materials sent to and from training locations outside of Alaska – the Port’s infrastructure is crucial to the State’s functionality. And while progress is being made, Ribuffo worries that time is not on their side. “It’s definitely a challenge — mitigating the corrosion impacts on the docks to ensure Alaska is ready for whatever comes in the future is becoming more and more urgent as each year passes.”