Legislature(2025 - 2026)BUTROVICH 205
03/04/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Alaska Marine Highway System Long Range Plan | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 4, 2025
1:42 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Bert Stedman
Senator Mike Shower
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
COMMITTEE CALENDAR
PRESENTATION(S): ALASKA MARINE HIGHWAY SYSTEM LONG: RANGE PLAN
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
DOM PANNONE, Director
Program Management and Administration
Department of Transportation and Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Co-presented Alaska Marine Highway System
Long Range Plan.
CRAIG TORNGA, Marine Director
Alaska Marine Highway System (AMHS)
Department of Transportation and Public Facilities (DOTPF)
Ketchikan, Alaska
POSITION STATEMENT: Co-presented Alaska Marine Highway System
Long Range Plan.
ACTION NARRATIVE
1:42:44 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:42 p.m. Present at the call to
order were Senators Kiehl, Tobin, Stedman, Shower and Chair
Bjorkman.
^PRESENTATION(S): ALASKA MARINE HIGHWAY SYSTEM LONG RANGE PLAN
PRESENTATION(S): ALASKA MARINE HIGHWAY SYSTEM LONG RANGE PLAN
1:43:31 PM
CHAIR BJORKMAN announced the presentation Alaska Marine Highway
System: Long Range Plan by Department of Transportation and
Public Facilities (DOTPF) by Director Craig Tornga and Director
Dom Pannone.
1:44:07 PM
DOM PANNONE, Director, Program Management and Administration,
Department of Transportation and Public Facilities (DOTPF),
Juneau, Alaska, introduced himself.
1:44:23 PM
CRAIG TORNGA, Marine Director, Alaska Marine Highway System
(AMHS), Department of Transportation and Public Facilities
(DOTPF), Ketchikan, Alaska, introduced himself and advanced to
Slide 2:
[Original punctuation provided.]
SAFETY
AMHS Safety Goal:
NO HARM to People, Environment,
and Equipment
2024 Safety Results
51 injuries: 14 strains, 13 slip, trip, or fall,
5 struck or hit an object, 5 finger, 4 burn, 3
other, 2 absorption, ingestion or inhalation, 2
cut, 1 eye, 1 chest pain, 1 repetitive motion
No spills to the water from terminals and vessels
No collisions or allisions
MR. TORNGA said that AMHS recently began tracking these
statistics, which will help AMHS improve operations. He noted
six customer spills that were contained to the vessel. He
briefly explained how terminal guards ensure spills do not reach
drains.
1:46:29 PM
CHAIR BJORKMAN asked how customers create spills.
1:46:37 PM
MR. TORNGA explained that cars sometimes leak transmission fluid
or antifreeze (among other things). He briefly described the
tools used to capture leaks. He noted that the majority of the
spills were at the Whittier terminal while vehicles were waiting
to embark.
1:47:22 PM
SENATOR TOBIN asked about the finger injuries listed on Slide 2.
1:47:45 PM
MR. TORNGA clarified that the slide is referring to five
fingers. He added that most individuals were wearing gloves,
which minimizes damage.
1:48:30 PM
MR. TORNGA advanced to Slide 3 and discussed fleet reliability:
[Original punctuation provided.]
RELIABILITY
• Shipyard Delays with steel repairs due to wastage
• LECONTE, TUSTUMENA, AURORA, COLUMBIA
• Implemented Computer Maintenance Management
System (CMMS) in 2024; all vessels are in the
system and using all functions
• 2024 Operational Uptime Percentage 98.51
percent
• 35,420.25 operating hours / 527.75 out of
service hours
MR. TORNGA said that many reliability issues are related to the
age of the fleet. He described the repairs needed for each
vessel and offered a timeline for their return to use. He
described the new computer maintenance management system (CMMS).
A drydock module is forthcoming. He said AMHS recently began
tracking reliability statistics, which is tracked as an uptime
percentage. This percentage applies to vessels in operation. The
target uptime percentage is 99 percent.
1:51:45 PM
MR. TORNGA advanced to Slide 4 and discussed crewing operations:
[Original punctuation provided.]
2024 CREWING OPERATIONS AND SEPARATIONS
Masters, Mates and Pilots (MMP)
Hired 7 with 11 Separated
Marine Engineer's Beneficial Assoc. (MEBA)
Hired 1 with 8 Separated
Inlandboatmen's Union (IBU) Engine
Hired 8 with 6 Separated
Inlandboatmen's Union (IBU) Deck
Hired 15 with 20 Separated
Inlandboatmen's Union (IBU) Steward
Hired 79 with 41 Separated
MV Matanuska serving as a hotel ship
• Meeting Collective Bargaining Agreement
Requirements
• Ketchikan and Southeast facing a Housing Shortage
• Temporary housing for training events and new
hires, offsets hotel (if available) and other
quartering costs
Looking for creative solutions to housing and
quartering staff
[Slide 4 includes a table comparing the Base Pay for
key AMHS crew positions compared with the Base Pay
(unverified) for Washington State Ferry crew
positions.]
MR. TORNGA explained that Masters, Mates, and Pilots (MMP)
separations were primarily due to retirement. Engineering
separations are related to a national engineering shortage.
1:54:57 PM
SENATOR KIEHL asked whether AMHS has shared this information has
with its bargaining units.
1:55:17 PM
MR. TORNGA replied yes.
1:55:30 PM
CHAIR BJORKMAN asked about the path to becoming a marine
engineer.
1:55:41 PM
MR. TORNGA briefly explained the process, which includes
completing a 4-year program or working up from an entry-level
position.
1:57:55 PM
CHAIR BJORKMAN asked what a wiper does.
MR. TORNGA explained that "wiper" is a term for an entry-level
position and refers to the work of wiping down engines, clearing
oil, and performing preventative maintenance to support the
engineers. He briefly explained the different levels and
locations for this position.
1:58:34 PM
CHAIR BJORKMAN noted previous discussions regarding the cost to
maintain the Matanuska as part of the fleet. He asked about the
cost benefit of using the Matanuska as a hotel ship.
1:58:51 PM
MR. TORNGA replied that a fixed facility for lodging would be
more cost-effective. He said that using the ship for training
has been beneficial; however, it is an expensive option. Costs
could be reduced by moving the ship into lay-up status. He
briefly discussed the options to lower the cost.
1:59:54 PM
MR. TORNGA advanced to Slide 5 and discussed crewing operations
by position. Slide 5 contains a chart of the needs and current
numbers for various positions. He noted successes with the third
mate position and explained pilotage requirements. There have
been shortages with engineering crew.
2:01:41 PM
MR. TORNGA advanced to Slide 6 and discussed AMHS workforce
initiatives. He noted that it can be challenging for employees
to find housing in Southeast; hiring locally helps to avoid
housing issues. AMHS initiatives include school outreach,
community partnerships, and in-state travel (to avoid
relocation).
2:04:09 PM
MR. TORNGA briefly discussed career pathways, job fairs, course
requirements, and training grants. There is funding to create 8
new licensed positions. This will help to fill position gaps.
2:05:37 PM
SENATOR STEDMAN asked for a synopsis of the hiring process.
2:06:12 PM
MR. TORNGA said AMHS has streamlined the application process.
Someone who has the required certificate will be hired for a
position if there is an opening. He added that there is
availability for the ordinary seaman position. There are
typically 12-15 new hires each month (primarily stewards).
Alaska hires are the primary focus and there is a hiring bonus.
He noted high overturn. It is more difficult to fill licensed
positions.
2:08:08 PM
SENATOR STEDMAN asked about the hiring process for someone who
is not a seaman.
2:08:30 PM
MR. TORNGA explained the process of obtaining certification. The
process is roughly 5-6 weeks, with some candidates working and
training onboard while they obtain their certification. New
hires must also obtain a Transportation Worker Identification
Credential (TWIC) card and various training courses. AMHS
partners with the University of Alaska Southeast (UAS) in
Ketchikan and Alaska Vocational Technical Center (AVTEC) to
provide the necessary training courses.
2:10:37 PM
MR. PANNONE advanced to Slide 7 and discussed operational
funding for 2023-2025. This includes Infrastructure Investment
and Jobs Act (IIJA) Rural Ferry Grant Program (49 USC § 5334)
and Formula Programs (23 USC §§ 218, 147, 139). The proposed
budget for calendar year 2026 includes a $46 million federal
grant. $20.7 AMHS revenue funds and $61.4 million of
unrestricted general funds.
2:11:44 PM
MR. PANNONE advanced to Slide 8 and discussed operating budget,
expenditure, and revenue trends from 2016 to present. He noted
that actual expenses were less than budgeted amounts, due to
crew requirements. AMHS has relied significantly on federal
funds, decreasing the impact of reduced revenues. He briefly
discussed the reduced revenues from the peak in 2019. Revenues
have not recovered fully from Covid-19 shutdowns. Revenues are a
significant long-range focus.
2:12:49 PM
MR. PANNONE advanced to Slide 9 and discussed AMHS's ridership
history from 1990 to present. Slide 9 includes a graph showing
passengers, vehicles, vessels operating, and budget actuals. He
said there is a strong correlation between the number of
available ships and the amount of funds spent. He noted a dip
during the Covid-19 pandemic with steady recovery after that
time.
2:13:38 PM
SENATOR KIEHL directed attention to Slide 8 and noted a $2
million AMHS revenue drop from 2023-2024. He then turned to
Slide 9 and noted what appears to be a slight increase in
passengers and vehicles in 2024 over 2023. He asked for
clarification.
2:14:04 PM
MR. PANNONE said that the revenue is attributed to the different
vessels and routes the ridership was taking. He explained that
in those years, there was a significant amount of ridership for
Southeast-only routes (as opposed to Bellingham routes, which
result in significantly more revenue). Shorter trips result in
lower revenue, even though ridership is up.
2:14:34 PM
MR. TORNGA added that in 2024, the Bellingham route was run by
the Kennicott rather than the Columbia. The Kennicott has a
smaller vehicle deck, which resulted in a decline in that
(higher revenue) route. The Hubbard was introduced in 2023 for
Lynn Canal, which increased ridership on that route. He
explained that much of AMHS revenue is from vehicles, rather
than walk-on passengers.
2:15:34 PM
SENATOR STEDMAN asked about shoreside infrastructure and
personnel in locations where a ship is in port once every two
weeks.
2:16:09 PM
MR. TORNGA replied there is a lot of downtime in those
locations. He added that it has been a challenge to keep some
needed personnel, including port engineers and construction
engineers. He noted a recent construction engineer hired for the
Tustumena replacement vessel.
2:18:30 PM
MR. PANNONE advanced to Slide 10 and discussed Alaska Marine
Highway System Fund (AMHSF) (1076) (AS 19.65.060, AS 37.05.550)
and the AMHS Vessel Replacement Fund (1082) (AS 37.05.550). All
revenue generated is deposited into AMHSF. Slide 10 contains a
table showing the history of balances, revenues, and
expenditures for 2019 through 2024 and 2025-2026 projections.
Capital and overhaul expenses earn federal toll credits,
allowing AMHS to take advantage of Federal Transit
Administration (FTA) funds. He briefly explained how revenues
impact funding and AMHS's long-term funding plan.
2:20:14 PM
SENATOR STEDMAN pointed out that the projected 2026 budget is
negative $8.5 million and asked about the plan to address this.
2:20:35 PM
MR. PANNONE explained that the projected amounts are based on
ridership and revenues remaining the same. Additional funding
mechanisms - or a decrease in AMHS's operating budget - would be
needed in this case. AMHS could also apply for Title 23 grant
funds from the Federal Highway Administration (FHWA). The
current goal is to increase revenue.
2:21:14 PM
SENATOR KIEHL acknowledged the goal of increased revenue but
pointed out that 2026 is fast approaching. He was if there is a
plan to increase revenue by the necessary amount ($8.5 million)
in 15 months.
2:21:37 PM
MR. PANNONE answered that the current year has seen an 18
percent increase in revenue. AMHS needs around $4 million per
year to reach the revenues needed. He explained that AMHS can
shift the funds it is using.
2:22:11 PM
SENATOR KIEHL surmised that the budget proposal needs to be
adjusted.
2:22:18 PM
MR. PANNONE replied that AMHS is focusing on increasing revenue
and is not seeking an adjusted budget proposal at this time.
2:22:31 PM
MR. TORNGA advanced to Slide 11 and discussed capital projects:
[Original punctuation provided.]
Vessel Projects
Vessel Capital Improvement Projects
• TAZLINA Crew Quarters Addition
• COLUMBIA Controllable Pitch Propellor Upgrade
• Project cancelled following Recent Risk
Assessment
• MATANUSKA Audio Gauge reports at next Alaska
Marine Highway Operations Board (AMHOB) Meeting
• KENNICOTT Generator Upgrades Underway
MR. TORNGA said AMHS has been working with FTA to meet program
and administrative requirements for the Tazlina crew quarters
addition.
2:26:03 PM
MR. TORNGA advanced to Slide 12 and discussed the status of the
various AMHS Vessels. Slide 12 contains information for each
vessel, including current projects, upgrades, and age. Planned
future vessels are also included on this slide.
2:27:41 PM
MR. TORNGA advanced to Slide 13 and discussed the Tustumena
Replacement Vessel Schedule. AMHS is completing the final design
for the vehicle lift. He briefly discussed the power propulsion
unit, which must be completed before the Request for Proposal
(RFP) can go out. There is a 30-month construction timeline. He
noted that the "Buy America" component creates additional work
on the front-end.
2:29:44 PM
SENATOR STEDMAN commented on the Tustumena wheelhouse
configuration and asked whether the design is intentionally old-
fashioned.
2:30:03 PM
MR. TORNGA commented that the replacement vessel contains a lot
of modernization; however, he said he understands the comment
about the wheelhouse design. He explained that the replacement
vessel is diesel/electric and has redundancy in the power
system. He briefly described the power system and its benefits.
He emphasized that the new system would be more accessible,
resulting in greater ease with maintenance. He also noted that a
new boiler system.
2:33:34 PM
MR. TORNGA advanced to Slide 14 and continued to discuss the
Tustumena replacement vessel. He explained that the replacement
wheelhouse will have excellent visibility. He briefly described
the design process.
2:35:04 PM
MR. TORNGA advanced to Slide 15 and discussed AMHS terminal
infrastructure improvements. Improvements would total $170
million and would include 33 AMHS ports and 12 terminal projects
(2024-2027). Slide 15 contains a map of locations and
improvement projects. He explained that one long-range plan is
to standardize terminals. All funds are managed by DOTPF.
2:36:10 PM
MR. TORNGA advanced to Slide 16:
[Original punctuation provided.]
Long Range Plan Focus Areas
Service
Provide a service that is safe, reliable, and connects
our communities
Fleet and Terminal Infrastructure
Modernize and update our fleet and terminal assets to
promote resiliency and standardization
Workforce
Continue to build and support a reliable workforce
Financial Efficiency and Sustainability
Promote financial efficiency and sustainability
MR. TORNGA emphasized the work done regarding service, which
included focus groups to better understand community wants and
needs.
2:37:18 PM
MR. TORNGA advanced to Slide 17 and discussed Modernization and
Standardization:
[Original punctuation provided.]
An Aging Fleet
Modernization and Standardization
The AMHS fleet is comprised of older vessels.
Modernizing and replacing vessels will provide updated
systems and can decrease the likelihood of unplanned
service outages.
Standardization increases uniformity and consistency
of vessels in the fleet. A standard fleet also
improves flexibility and reliability in the event of
vessel technical issues, as more vessels can serve
more routes.
Recommended Standardization
• Loading Door Locations
• Pilothouse Design
• Power and Propulsion Systems
• Berthing and Mooring Structures
Benefits
• Interoperability
• Schedule Flexibility
• Easier Crew Training
• Simpler Procurement
• Reliability
30-35: Target age of vessel maintenance life
5: Vessels under the age of 30
55: Average age of vessels over 30
61: Oldest AMHS vessel
2:40:00 PM
SENATOR STEDMAN noted committee members' interest in the
discussion of phasing out older vessels.
2:40:17 PM
MR. TORNGA related a story of how he sold the first boat he
sailed on and commented that sentimentality can be costly.
2:40:48 PM
MR. TORNGA advanced to Slide 18 and discussed fleet analysis:
[Original punctuation provided.]
Components of Fleet Analysis
Model included considerations/inputs such as:
• Capacity
• Vehicle Capacity
• Passenger Capacity
• Cost
• Fleet Capital Cost
• Fleet Operational Cost
• Farebox Recovery Rate
• Route Profile
• Distance/Travel time between ports
• Total Workforce Size
• Vessel Crewing Requirements
• Level of Service
• Fleet Redundancy
• Maintenance Weeks
MR. TORNGA briefly described the process and tools used to
conduct the fleet analysis.
2:42:52 PM
SENATOR KIEHL asked about the degree to which route profiles
considered sea and weather states - and the new ships' ability
to handle these.
2:43:12 PM
MR. TORNGA said AMHS did consider this. He noted that,
currently, the Yakutat route is dependent on the Kennicott. The
long-range plan is to change the Yakutat dock to a floating
dock, thus allowing the mainline ocean-class vessels to dock
there. He briefly discussed how ships would be able to fill in
for various routes.
2:44:56 PM
SENATOR KIEHL pointed out that weather can vary greatly along
different routes, particularly in winter. He said he wants to be
sure the modeling and profiling is considering this.
2:45:34 PM
MR. TORNGA agreed and indicated that the modeling and profiling
is considering this. He reiterated that all the new vessels are
diesel/electric and explained why this redundancy is preferable.
With respect to icing and spray, he said that vessels would
still have an open deck. He briefly discussed how the bow of
various vessels is designed to minimize spray. He noted ease of
maintenance and lowered costs.
2:48:21 PM
SENATOR STEDMAN commented that residents of Southeast Alaska
would like to take the ferry to Prince Rupert and/or Hyder. He
noted that many residents cannot afford to take the ferry all
the way to Bellingham and would prefer to ferry to Price Rupert
and drive down. He opined that a solution is needed and noted
that revenue is one consideration. He suggested that Prince
Rupert could be added without cutting revenue from the
Bellingham route.
2:49:09 PM
MR. TORNGA replied that the long-range plan includes Prince
Rupert or Hyder. He indicated that a waiver for the Buy America
requirement is the deciding factor for this route addition. If
AMHS does not receive a waiver, the necessary federal funds will
not be accessible.
2:49:40 PM
SENATOR STEDMAN opined that residents are less concerned about
how they reach Prince Rupert and simply want access.
2:50:02 PM
MR. TORNGA expressed understanding and noted STIP funding to
complete a study on the dock at [Prince Rupert]. The resulting
data would allow plans to move forward. He said that AMHS has
considered potential dock layouts and expressed confidence in
the project's feasibility. AMHS has contacted FHWA regarding
funds for a facility at [Prince Rupert]; FHWA indicated that
this was a possibility.
2:51:17 PM
SENATOR STEDMAN asked for confirmation that Mr. Tornga is
referring to Prince Rupert and not Hyder.
MR. TORNGA confirmed that he was referring to Prince Rupert.
2:51:30 PM
MR. TORNGA advanced to Slide 19 and provided an overview of the
2045 fleet configuration:
[Original punctuation provided.]
The 2045 fleet is a mix of two existing vessels and
six new builds to create a standardized, reliable, and
efficient system.
• Low-No I - Shuttle (new)
• Low-No II - Shuttle (new)
• TRV - Tustumena Replacement Vessel (new)
• MRV I - Mainliner Replacement Vessel (new)
• MRV II - Mainliner Replacement Vessel (new)
• DB - Dayboat Replacement Vessel (new)
• Hubbard - Dayboat
• Tazlina - Dayboat
MR. TORNGA explained that this configuration has the lowest
associated cost and ensures that there are backup vessels across
the fleet. He briefly discussed speed and coverage improvements.
2:53:45 PM
MR. TORNGA advanced to Slide 20 and discussed the short-, mid-,
and long-term plans for vessel replacements. Slide 20 contains
an infographic to illustrate the short-, mid-, and long-term
plans for vessel replacement (breaking down contract
design/contracting and detail design/construction) and the age
of each vessel at the time of replacement. He indicated that
more specific dates are available. He briefly discussed the
construction speed for different vessels. He emphasized the role
that new vessels play in fleet reliability.
2:54:43 PM
MR. TORNGA advanced to Slide 21 and discussed the path to
reliability:
[Original punctuation provided.]
Period of Variability: 2025-2028
• 5,200 Average Annual Port Calls
• New Vessel Online: Low-No I Shuttle
• 13 Terminal Projects Ongoing
• Average Fleet Age: 36
Initial Success: 2029-2035
• 6,300 Average Annual Port Calls
• New Vessels Online: TRV; MRV I; Dayboat
• 29 Terminal Projects Ongoing
• Average Fleet Age: 20
Reliable Expansion: 2036-2045
• 6,700 Average Annual Port Calls
• New Vessels Online: MRV II; Low-No II
• 40 Terminal Projects Ongoing
• Average Fleet Age: 13
2:56:16 PM
SENATOR SHOWER commented that Southwest and Southeast rely on
ferries for transportation between communities and funding is
necessary. He asked for confirmation of his understanding that
AMHS is moving toward a fleet that has greater flexibility, made
up of more small vessels that run with greater efficiency.
MR. TORNGA confirmed this understanding. He explained that AMHS
is considering the fleet, rather than focusing on individual
vessels. Routes are also considered, as long runs require a
large vessel. He added that timing, efficiency and crew
requirements must be considered in light of new US Coast Guard
(USCG) work-rest rules. A smaller fleet also means that backup
crews must be reconfigured. He reiterated that AMHS is focusing
on the fleet while ensuring efficiency for the primary task.
2:59:07 PM
MR. TORNGA advanced to Slide 22 and discussed next steps:
[Original punctuation provided.]
Next Steps
LRP Document Prep and Review
30-Day Public Review Period
Project Completion and Interim Updates
Once the draft document is complete, there will be a
30-day public comment period. Once the Plan is
complete, the work won't be done! The plan is a living
document and will be revisited every 5 years for
project updates and implementation reports.
2:59:49 PM
CHAIR BJORKMAN thanked the presenters. He encouraged AMHS to
work on increasing ridership. He said that a cross-gulf ferry
service would be utilized by his constituents. He stated that
many of his constituents would take advantage of a reliable
ferry from Homer to Kodiak. He emphasized the need for reliable
service at intervals that make sense for Alaskans' travel needs.
He asked about how ferry routes are determined.
3:00:58 PM
MR. TORNGA answered that ferry focus meetings emphasized
schedule reliability. Businesses also emphasized the need for
reliability. He expressed understanding and stated that one goal
of AMHS is to create a reliable schedule.
3:01:42 PM
CHAIR BJORKMAN commented on the impact that cancellations have
on travelers - particularly when canceled sailings are not
rescheduled as soon as possible. He criticized AMHS's lack of
consideration for travelers impacted by cancellations and
questioned the decision to not reschedule sailings that and
leave travelers - and their belongings - stranded. He expressed
frustration that AMHS does not uphold commitments to its
ridership - and yet is seeking public support for the services
it provides.
3:02:37 PM
MR. TORNGA expressed his understanding. He emphasized that the
long-range plan is to return to reliable service and this goal
can be achieved with the necessary support and initiatives in
place.
3:03:22 PM
CHAIR BJORKMAN thanked the presenters.
3:03:27 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 3:03 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AMHS Overview 2025 03042025.pdf |
STRA 3/4/2025 1:30:00 PM |