Peter Segall / Juneau Empire File Someone holds up an inflatable Alaska Marine Highway ferry at at a rally to support of the Alaska Marine Highway System on Tuesday, Feb. 11.

Peter Segall / Juneau Empire File Someone holds up an inflatable Alaska Marine Highway ferry at at a rally to support of the Alaska Marine Highway System on Tuesday, Feb. 11.

Long-awaited ferry reshaping report released

Read the full report here.

The Alaska Marine Highway Reshaping Work Group released its final report Thursday afternoon, providing recommendations on ways to improve the state’s ferry system.

The report details the nine-member work group’s findings and recommendations around several key areas, such as reducing costs, raising revenue and strengthening the system’s governance. The report also includes a draft implementation plan with actions that could begin as soon as November.

Recommendations included creating a new governing board composed of industry professionals and other interested parties to manage the ferry system. The report suggests a nine-member board that would have broad discretion over AMHS operations. Changing policy at the state level makes long-term planning for the ferry system difficult, the report said, and said a board could provide a better, more business-centered focus.

“More well-grounded outside advice focused on business and financial practices, ferry system fleet planning and maintenance, pricing and service models, and capital asset investment, much as a board of directors provides a corporation, would benefit AMHS,” the report says.

Like the work group itself, the report recommends the board should be made up of individuals representing various professions and backgrounds.

“A notional structure, purpose, and skill for such a board would include three members with business experience, preferably one or more in the marine business field, three members with strong marine operating, maintenance and vessel construction experience, two public members, one of which would represent Alaska Native interests, a union representative, and another person with experience in organization transformation,” the report says.

[Ferry work group says $24M subsidy insufficient]

Gov. Mike Dunleavy formed the reshaping work group in January with union representatives and elected officials among others, including Southeast Conference Executive Director Robert Venables, who said that while his organization would review and make its own comments on the report he was mostly pleased with the outcome.

“I was very glad to see a focus on management and governance structure, actionable steps, that will improve the organization,” he said in a phone interview Thursday. “If the governor acts on these recommendations it’ll address some of the issues that plague the core of the Alaska Marine Highway System.”

Venables noted the report contained only recommendations that were likely to change before being fully implemented.

The report cites labor as a significant cost for AMHS and recommends finding ways to bring those costs down.

“As personnel costs make up almost 70% of vessel operating costs, significant system operational savings cannot be achieved without substantially lowering personnel costs,” the report says. “Although challenging for both parties, achieving cost savings, by agreement is preferable to other authorized actions that impair system operation.”

The report says contracts with maritime unions will need to be renegotiated to allow for “changes that optimally match vessel capacity, routing and scheduling to seasonal and demand requirements, increase system flexibility and lower system labor cost.”

Calls to representatives from The Inland Boatman’s Union of the Pacific and Marine Engineers’ Beneficial Association were not immediately returned.

Contact reporter Peter Segall at psegall@juneauempire.com. Follow him on Twitter at @SegallJnuEmpire.

More in News

State House District 6 candidates Rep. Sarah Vance, Dawson Slaughter and Brent Johnson participate in a candidate forum hosted by the Peninsula Clarion and KBBI 890 AM at the Homer Public Library in Homer, Alaska, on Tuesday, Oct. 29, 2024. (Jake Dye/Peninsula Clarion)
House District 6 race unchanged in first update since Election Day

Neither incumbent Rep. Sarah Vance or challenger Brent Johnson have claimed 50% of votes in the race

A grader moves down 1st Avenue in Kenai, Alaska, during a snow storm on Tuesday, Feb. 28, 2023. (Jake Dye/Peninsula Clarion)
Storm system to bring weekend snow to western Kenai Peninsula

Extended periods of light to moderate snow are expected Friday through Sunday morning

Homer Electric Association Chief Operating Officer Rob Montgomery speaks during a joint luncheon of the Kenai and Soldotna Chambers of Commerce at the Kenai Chamber of Commerce and Visitor Center in Kenai, Alaska, on Wednesday, Nov. 13, 2024. (Jake Dye/Peninsula Clarion)
HEA talks search for new energy sources, hazard trees at chamber luncheon

The utility produces 90% of its electricity using natural gas

Alaska State Troopers logo.
Update: Troopers arrest Anchor Point man wanted on felony warrants

Troopers sought help from the public in a search for Tanner Allen Geiser

From left: Joseph Miller Jr. and Jason Woodruff, Alaska State Troopers charged with felony first-degree assault, appear with their lawyers, Clinton Campion and Matthew Widmer, for an arraignment at the Kenai Courthouse in Kenai, Alaska, on Thursday, Nov. 14, 2024. (Jake Dye/Peninsula Clarion)
Troopers renew not guilty pleas after grand jury indictment

Woodruff, Miller charged with felony first-degree assault for alleged conduct during May arrest in Kenai

Canna Get Happy owner Sandra Millhouse, left, appears with attorney Richard Moses during a meeting of the Board of Adjustment at Kenai City Hall in Kenai, Alaska, on Oct. 15, 2024. (Jake Dye/Peninsula Clarion)
Kenai board of adjustment denies Canna Get Happy appeal

The owner sought to operate a retail marijuana establishment at Swanson Square in Kenai

A winter weather advisory and special weather statement are in effect for the western Kenai Peninsula, while other messages are published for the eastern Kenai Peninsula, in this map from the National Weather Service. (Screenshot/National Weather Service)
Snowfall, heavy winds forecast for tonight

Winter weather advisory and other messages from National Weather Service effective through Friday morning

The storefront of Madly Krafty in Kenai, Alaska, is seen on Thursday, Nov. 14, 2024. (Jake Dye/Peninsula Clarion)
Soldotna Chamber of Commerce holds 5th annual Spark event

Soldotna sharks give $4,000 scholarship to local gift shop

Kenai Peninsula Borough School District Superintendent Clayton Holland speaks during a meeting of the KPBSD Board of Education in Soldotna, Alaska, on Monday, June 3, 2024. (Jake Dye/Peninsula Clarion)
School board considers ‘hypothetical’ 4-day calendar, asks for community survey

Included in the work session notes is a potential calendar describing weeks running from Monday to Thursday starting in August 2025

Most Read