Work has begun at the site of the new cruise ship terminal in Seward. That’s what Mickey Richardson, who helms The Seward Company, told Seward’s City Council last week.

Development of a new, 64,000-square-foot terminal is only one element of a multifaceted initiative to completely replace the Port of Seward being undertaken by Richardson’s company in collaboration with the city, the Alaska Railroad and Royal Caribbean Group.

“They have begun,” he said in a presentation to the council. Crews have been taking advantage of the light winter this year to get a jump on moving dirt and preparing what formerly was the large parking lot in front of the existing terminal for construction of the new facility. The water line has already been prepared for the new building and Richardson said welding would be underway that week to move the fuel line.

A photograph shared in Richardson’s presentation shows the area that the new terminal is set to cover — the old terminal “looks very much like a lawn shed in comparison.”

Pouring concrete for the foundation is projected for April, before the building will begin to be constructed. In September, work will begin on the dock in the water, as well as the removal of the existing terminal and dock.

“We are still on tap to be scheduled to be done in April of 2026,” Richardson said. “We’re moving very rapidly.”

Earlier this month, the Alaska Legislature passed a bill — that was later also signed by Gov. Mike Dunleavy — authorizing the Alaska Railroad Corporation to issue up to $135 million in revenue bonds to fund construction of the project.

No state funds will be used to pay for the bond, a press release from Dunleavy’s office says. Instead, a 30-year agreement with “anchor tenant” Royal Caribbean Group guarantees “a minimum of 140,000 guests annually,” and a port improvement fee will be charged to those guests to pay for the bond debt.

That agreement, Richardson said to the council, was also designed to fund maintenance needs for the dock over that time span.

The City of Seward has also secured a nearly $46 million grant from the Environmental Protection Agency to extend the electric transmission line to the port and integrate a battery energy storage system with the intent to allow cruise ships to connect to Seward’s electricity services rather than relying on diesel generators for power.

For more information about the New Port of Seward, visit sewardcompany.com.

Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.