ALASKA MARINE HIGHWAY SYSTEM . The Alaska Marine Highway operates an extensive 3,500 mile route with a fleet of eleven vessels that are designed to carry passengers and vehicles ranging in size from motorcycles to large freight containers. The ferries operate year-round to provide essential transportation to over 35 coastal communities, many that are not accessible by road. The Alaska Marine Highway System is a core component of Alaska's transportation infrastructure and provides access for residents of smaller communities to goods and services in regional hubs. For Fairbanks Chamber of Commerce Transportation and Infrastructure Committee

Mission of AMHS The mission of the Alaska Marine Highway System is to provide safe, reliable, and efficient transportation of people, goods, and vehicles among Alaska communities, Canada, and the "Lower 48," while providing opportunities to develop and maintain a reasonable standard of living and high quality of life, including social, education, and health needs.

History of AMHS In 1948, Haines residents Steve Homer, Ray and Gustav Gelotte set up a company named Chilkoot Motorship Lines and purchased the MV Chilkoot, an ex-US Navy landing craft. The Board of Road Commissioners supported Chilkoot Motorship Lines and provided funding for three wood ramps to be built at Tee Harbor, Haines, and Skagway. The ramps were in service at the beginning of 1949.

Territory Purchases Business After a couple years of service, Chilkoot Motorship Lines faced bankruptcy. Due to snow levels closing the road to Haines between October and May 15 they were not able to operate year- round. They tried to secure contracts with mines in the winter months in order to be profitable; however, these contracts fell through. As news traveled that the service may be discontinued, the Territorial Government came forward and offered to purchase the business. After thoughtful consideration the owners decided to sell Chilkoot Motorship Lines to the territory of Alaska in June 1951. After a long history serving the communities of coastal Alaska, the original "Blue Canoe", the MV Chilkat was sold in 1988. The MV Chilkat was 99 feet long and could carry 59 passengers and 15 vehicles and served the coastal communities of Alaska for over 30 years. After being anchored in different harbors and sold several times over the years, sources indicate that the MV Chilkat is currently being used as a scallop boat

Alaska Ferry Transportation Act The first Alaska Legislature approved the Alaska Ferry Transportation Act in 1959, authorizing the new Department of Public Works to acquire ferry terminals and regulate ferry operators. In 1960, Alaska voters statewide approved a bond proposition to invest in a marine highway system, with additional ferries and docking facilities. Operations of the Alaska Marine Highway began in 1963 with four vessels. After a long history serving the communities of coastal Alaska, the original "Blue Canoe", the MV Chilkat was sold in 1988. The MV Chilkat was 99 feet long and could carry 59 passengers and 15 vehicles and served the coastal communities of Alaska for over 30 years. After being anchored in different harbors and sold several times over the years, sources indicate that the MV Chilkat is currently being used as a scallop boat

Expansion, Increased Capacity, and Additional Ports 1963 - 1973 1963 – 1964 First port calls SE Alaska, SW AK, South Central and SW "I was looking out the window and saw the Malaspina in Tongass Narrows. Something happened at that moment – THE FEELING OF ISOLATION WENT AWAY! – as I watched the ship coming up the channel. We could take our car, or walk onboard, and GO SOMEWHERE!!!! Our highway had arrived!" 1965 – 1973 Additional expansion South to Seattle and North from Valdez to Whittier, creating a ferry-rail link with the AKRR in order to shuttle vehicles between Portage and Whittier, and allowing access to the highway system closer to Anchorage.

Expansion, Increased Capacity, and Additional Ports 1974 - 1993 1966 and 1970 The State expanded the fleet with three new vessels due to the passage of bonds 1970 – 1979 New ships and increased capacity meant new ports of call. 1979 – 1993 Expansion included Alaska Peninsula and the Aleutian Chain In September 1989 the Southern Terminus was moved from Seattle to Bellingham.

Expansion, Increased Capacity, and Additional Ports 1994 - present 1998 The MV Kennicott was commissioned with the homeport of Valdez. The MV Kennicott can be transformed into a command center for emergency teams responding to an oil spill, something that was essential following the 1989 Exxon Valdez disaster. The unique vessel design includes a helicopter landing pad, a floating dock that's stored below deck, decontamination showers, and additional communications. The MV Kennicott proved to be a very seaworthy and versatile vessel, and connected the "Lower 48" with South Central Alaska with the addition of the Cross Gulf route. In September 1989 the Southern Terminus was moved from Seattle to Bellingham.

Expansion, Increased Capacity, and Additional Ports 1994 - present By 2012 the AMHS provided service to 35 communities, as it prepared for it’s 50th Anniversary in 2013. Southeast South Central Southwest

National Scenic Byway & All-American Road In 2002 the AMHS was named a National Scenic Byway for its scenic, cultural, and archaeological qualities. The Alaska communities served by the byway each have their own indigenous and modern culture, fascinating history and beautiful scenery. In 2005, the Alaska Marine Highway was named an All-American Road by the Federal Highway Administration, the highest designation awarded by the National Scenic Byway Program. It is the only marine route with the designation of National Scenic Byway and All-American Road.

The Fleet M/V Taku sold in 2018 Chenega out of service and Fairweather likely to follow soon

Fleet Additions The State of Alaska is well on its way to building two new Alaska Class Ferries. The keels were laid at the Vigor Shipyard in Ketchikan on December 13, 2014. The ferries are scheduled for delivery in the spring and fall of 2018. The Alaska Class Ferries will serve Juneau, Haines, and Skagway and operate as day boats, with one based in Juneau and one based in Haines. The vessels will be 280 feet long and carry 300 passengers and 53 vehicles. To learn more about this project click here.

MV Tustemena Replacement Project In 2014, the Alaska Marine Highway began the process to design a MV Tustumena replacement vessel. The importance of building a replacement vessel for the MV Tustumena became a focus for the state following a major service interruption in 2013. Retiring and replacing the MV Tustumena with a vessel that is at least as versatile and seaworthy is vital for the future of the communities, residents, and businesses it serves. The M/V Tustumena was built in 1964 and is one of two ocean class vessels in the AMHS fleet. Because of its size and design, it is the only AMHS vessel that is capable of serving all 13 ports of call between Homer and Unalaska. http://www.dot.state.ak.us/amhs/tusty_replace/index.shtml Why replace the M/V Tustumena Age: 50 years old Lack of Capacity: 36 Vehicle (720 Lane Feet) and 174 Passengers. There is increasing demand for car deck capacity between Homer and Kodiak. Also there is an increasing demand for car deck capacity for the Aleutian Chain route The increase in the discovery of wasted steel and cracking during annual maintenance availabilities

AMHS Service The number of people and vehicles served by AMHS grew steadily until traffic peaked in 1992 at over 420,000 passengers. A long-term decline in traffic lasted through the 1990s and early 2000s, likely attributable to several factors, including improvement of road conditions on the ALCAN, a downturn in the U.S. long-distance vehicle market, and increasing reliance on air travel. AMHS continued to improve service and vessels, adding the long-haul vessel Kennicott in 1998 and two fast ferries, the Fairweather (2004) and Chenega (2005). The long-term decline in traffic ended in the late 2000s; traffic has fluctuated only slightly over the last ten years, averaging 320,000 passengers. AMHS continues to provide essential transportation service to coastal Alaska, calling at 33 Alaska communities – 28 of which are not connected to Alaska’s road system. The number of communities served seems to vary between 33 – 35.

Marine Transportation Advisory Board The Marine Transportation Advisory Board (MTAB) may issue reports and recommendations and shall, in cooperation with the department, prepare and submit to the Department of Transportation and Public Facilities (DOT&PF) and the Governor for review a strategic plan that includes the mission, core values, objectives, initiatives, and performance goals of the Alaska Marine Highway System (AMHS). The board may establish volunteer regional advisory committees. After the Commissioner of Transportation has considered one or more candidates for the position of Director or Deputy Commissioner of the Alaska Marine Highway System, the Commissioner shall confer with MTAB regarding that candidate or those candidates before making an appointment to the position. Created 01/15/03 by Administrative Order by Governor Murkowski, and made permanent by Governor Palin in 2007, and effective by statute in 2009.

Marine Transportation Advisory Board The 12 members must all be residents of Alaska. NOTE! “…and at least two members who are residents of areas not directly served by the AMHS.”

Marine Transportation Advisory Board Dan Kelly resigned when moving out of state

Alaska Marine Highway System Fund The Alaska Marine Highway System Fund was established July 1, 1990. All gross revenues generated from the operation of the Alaska Marine Highway System are accounted for and remitted in accordance with AS 19.65.070 which mandates that the money shall be deposited in the Alaska Marine Highway System Fund.

Community Engagement Meetings What is more important, cost or service? What do you believe is the minimum level of service needed in your community to maintain your way of life? Based on what you have seen and heard, what suggestions do you have?

Reports The Economic Impacts of the AMHS (January 2016) http://www.dot.state.ak.us/amhs/reports.shtml The Economic Impacts of the AMHS (January 2016) AMHS Community Engagement Meetings (Nov/ Dec 2015) 2015 Annual Traffic Volume Report 2017 Annual Financial Report 2018 – 2019 Operating Plan 2015 Rate Study 2012 Systems Analysis

Alaska Marine Highway Reform Project http://www.amhsreform.com/

Alaska Marine Highway Reform Project Southeast Conference Mission Statement The mission of Southeast Conference is to undertake and support activities that promote strong economies, healthy communities, and a quality environment in Southeast Alaska. Introduction Southeast Conference was incorporated in 1958 to promote the formation of a regional transportation system that eventually became the Alaska Marine Highway System. After that success, we stayed together to continue to advocate for issues that are key to the southeast region as a whole. We look for consensus and areas that we can work together for the betterment of the region. Southeast Conference is the federally designated Economic Development District for the region, as well as the state designated Alaska Regional Development Organization.

Alaska Marine Highway Reform Project “Southeast Conference is excited to partner with the State of Alaska to reform and revitalize the state’s ferry system. Governor Bill Walker signed the attached memorandum of understanding(link is external) to formally recognize and kick off the project. “For over 50 years, the Alaska Marine Highway System has served as a critical transportation link for Alaska’s coastal communities,” said Governor Walker. “The ferries are a lifeline in many communities, and the economic benefits are felt throughout the state.” The Conference was formed in 1958 with the goal of establishing the Alaska Marine Highway System, and today, the marine highway system extends across 3,500 miles of scenic coastline and provides service to over 30 communities. But due to many factors, and exacerbated by the state’s fiscal crisis, the Alaska Marine Highway System is at a critical juncture and at risk of failure. Once again, Southeast Conference is leading the effort to “re-create” the ferry system into an organization that can continue to provide vital transportation services to the many user groups and industries that rely on it daily.”

Alaska Marine Highway Reform Project …….to be continued Join us on August 23rd to hear from Robert Venables / Southeast Conference Executive Director “With the ferry system in crisis, Alaskans have come together to revolutionize the government agency to be more responsive to the needs of business and community stakeholders. An aging fleet, increased O&M costs, diminished funding, misalignment of management and labor, all combined, cripples the AMHS’ ability to successfully achieve its mission. Southeast Conference is leading a statewide effort that proposes to establish the Alaska Marine Highway as a public corporation and enact as many of the recommended interim measures as possible.”