Knik Arm Ferry - Timeline

Timeline

As of May 2011, the ferry was still sitting in port in Ketchikan, hundreds of miles from Knik Arm. Although a ferry terminal at Point Mackenzie is nearly complete, there is not yet an agreement on a site for the Anchorage terminal. In 2008 then mayor of the Municipality of Anchorage Mark Begich, frustrated with the lack of progress, terminated the 2002 agreement with the Matanuska-Susitna Borough, who now bear sole responsibility for the project. Several sites have been proposed, and each time there have been objections. One site could possibly interfere with the endangered Beluga whale population in Cook Inlet. Another was deemed to close to the oil "tank farm" at the Port of Anchorage and was rejected out of security concerns. A third site was objected to by commercial fishermen who feared it would interfere with their operations. Another site was rejected because the ferry needed more clearance than is available there. The borough is now considering a new idea for the already-rejected site at Ship Creek. The proposed new location is in an industrial area already used for offshore docking of tugboats, there is no harbor. The borough has indicated it is willing to develop the site, but currently there is no access for vehicle loading and the site would be for walk-on passengers only, which would be of limited utility as the ferry was supposed to provide commuter access to the Mat-Su population centers, not pedestrian access to the lightly populated Point Mackenzie area.

In August 2011 the Borough government was informed they were expected to take possession of the ship within a month, and that they would be required to provide berthing fees and other expenses even if the vessel is not in service, an estimated annual cost of 1.3 million dollars. Because of the continuing logistical problems the borough is considering several alternative plans, including leasing the ship to third party. They were informed that if they sold it outright they would need to return all Federal grant funds used for its construction, an estimated 21 million dollars.

As of January 2012, the borough had yet to take possession of the ferry or to come up with any concrete plan for its use or storage. The Alaska Marine Highway rejected a proposal that they utilize the ship as it is not compatible with their existing facilities or training. A proposal to lease the vessel to the Coast Guard was rejected by that agency on similar grounds. The unused vessel was listed for sale in September 2012.