Adak argues it can be freight container hub for Arctic shipping Adak is making a push to become a container-shipping hub for future ice-breaking cargo vessels using Russia’s northern sea route. There will be increased interest by vessel operators to switch cargoes to conventional vessels at a strategic point, in this case the former Naval base in the Aleutian Islands that is now owned by the Aleut Corp. While the Northern Sea Route has been proven to save time for seasonal Europe-to-Asia shipping, the efficiency of ice-breaking ships will be limited on portions of their routes in non-Arctic Waters. The solution, Adak’s promoters say, is to use ice-breaking ships in only the northern waters and transfer cargo at Adak, which is on the North America – Asia great circle shipping route used by thousands of vessels per year. Many of these travel with spare capacity. The concept is that a “hub” at Adak would allow container ships with spare capacity to stop and pick up extra freight. The concept is proven because ships often stop at Unalaska/Dutch Harbor to pick up frozen fish.

With continued warming of the Arctic the ice-free shipping window along the northern coast of Russia is expanding. With new ice-breakers being built Russia believes the shipping window will soon be seven months a year. The Aleut Corp. is meanwhile looking for partners to expand the port at Adak.

Telecom companies feel the effects of state’s recession
The major telecom companies operating in Alaska are feeling the state’s economic headwinds, although Alaska Communication Systems’ focus on business and institutional customers seems to have served it well. ACS reported a 2.8 percent growth in revenue for 2018, increasing from $227 million in 2017 to $232 million in 2018. The trend held through the fourth quarter of the year, with revenue growth from $54.9 million to $58.7 million for a year-over-year comparison of the final quarter. Business revenue, which includes government, was up 3.9 percent for ACS, although consumer services revenue was flat.

In contrast, General Communications Inc. saw a dip in annual revenue from $895 million in 2017 to $875 million in 2018. Business revenue, which includes government, was hit by federal decisions to cut funding for rural health care facilities, which reduced funding for GCI services by $28 million. On the plus side, GCI’s consumer revenue stayed level in 2018. Growth in data services was a bright spot, up 10 percent. Other parts of GCI’s business reflect consumer trends that are national but exacerbated in Alaska by a gradually falling population. Cable modem subscribers increased 1 percent, reflecting growth in streaming, while video subscribers dropped 8 percent. Consumer voice lines were down 9 percent as more people switched to sole use of cell phones.

Juneau solicits ideas on using cruise tax revenue
The City and Borough of Juneau has a May 2 deadline for public comments on how the city should use its $5-per-passenger cruise passenger tax revenue. A recent court settlement in litigation brought by cruise lines has set guidelines that projects funded with the fees must directly benefit cruise vessels. One local group, Renewable Juneau, is proposing money to be used for dockside facilities allowing ships to plug into the local electric grid instead of providing on-board power through leaving engines idling. The bulk of Juneau’s power comes from renewable hydro. If implemented, the plan would reduce local air pollution in summer when cruise ships crowd into the capital city. Princess Cruises is now able to connect with Alaska Light and Power, the utility, using the one dock with the proper equipment.

New ferry terminal planned north of Juneau
The state Department of Transportation and Public Facilities is studying a $27 million new terminal for state ferries at Cascade Point, at the end of the Glacier Highway north of Juneau, as an alternative to an existing terminal at Auke Bay, which is closer to the city. The new terminal would allow two new “Alaska Class” state ferries to serve Haines and Skagway in northern Lynn Canal in a 12-hour period. The current schedule from Auke Bay is longer because of the greater distance. With the reduced travel time the ferries can provide twice the level of service.

Nome to see jump in cruise ship visits
Nome will see a surge in cruise ship visits this sum- mer. Seven vessels will stop at Nome, some more than once, for an expected total of 12 visits. Last year a jam in ice in the Northwest Passage, the intended route, caused several vessels to call off the Nome stop, two ships did visit as part of a cruise through the Bering Sea. Ships scheduled at Nome this summer will carry 500 to 1,000 passengers. Nome once saw brisk summer tourism, with as many at 10,000 visitors a year, when Alaska Airlines promoted a Nome-Kotzebue tour. The airline halted that several years ago and summer visitors have dwindled.

Southeast pilots worry about mega-ship
Southeast marine pilots have expressed worries over the maneuverability of the Royal Princess, one of four mega-size cruise ships expected in Alaska waters this summer. Vessel operation simulations appeared to present problems for the vessel in certain wind and tide conditions, mainly in entering Ketchikan. Princess Cruises, the vessel owner, challenged the simulations. Three other megaships are expected in Alaska this summer including Royal Caribbean’s Ovation of the Seas, the largest cruise ship ever to visit the state with capacity for 4,900, but those vessels didn’t present the problems cited by pilots on Royal Princess, which is expected in Alaska in mid-May. The Royal Princess has capacity for 3,600 passengers.

Ketchikan talks with cruise companies about public-private partnership
Ketchikan officials are talking with cruise ship companies about possible industry investment in further dock expansion and upland development in Ketchikan. Cruise passengers on Alaska voyages are continuing to increase and Ketchikan is the Alaska gateway for most of the ships. However, the city is load- ed with debt for port and dock expansions and can’t take on more debt, city officials say. Discussions about investment occurred during the recent Seatrade Cruise Global Expo in Florida. Cruise companies would want preferential access to docks. Princess Cruises is already making dock and upland investments in Skagway, another major cruise ship port.

New defense department strategy paper on arctic
A new U.S. Defense Department strategy for the Arctic is to be released in June and is expected to put more emphasis on projection of U.S. power in the region with increasing military activity by Russia and commercial shipping by China. China is touting plans for a “Polar Silk Road” to be used by cargo vessels in an Arctic that is increasingly ice-free in summer.

Bill to ban use of plastic bags advances in legislature
A bill to ban the use of plastic bags in retail sales is advancing in the Legislature but some lawmakers representing communities that have established local bans say the restriction has been ineffective. The proposed measure, by Rep. Andy Josephson, D-Anch., would exempt fresh produce and certain other sales from the requirement. An exemption for small businesses was taken out of the bill. Seventeen communities in Alaska have ad- opted bans on plastic bags, and a ban in Anchorage will take effect in September. Three states, California, Hawaii and New York, have statewide bans, but 12 states have passed laws prohibiting communities from enacting local bans. In Alaska, Rep. Colleen Sullivan-Leonard said the ban has not worked in Wasilla, a community she represents that has a ban. However, Fairbanks borough assemblyman Andrew Gray has introduced a resolution in support of the statewide ban.