Anchorage Assembly considers $1.75M federal grant to replace port's 1960s electrical system

The Anchorage Assembly considered Tuesday whether to accept $1.75 million in federal money to fund the Port of Alaska Modernization Program Electric Substation Project at the Don Young Port of Alaska, infrastructure that dates to the 1960s and sits inside active seismic and tsunami hazard zones.

The grant comes from the U.S. Department of Transportation Maritime Administration's Port Infrastructure Development Program. The total electrical overhaul is estimated at $35 million. The federal funds are designated for design and construction of electric infrastructure and emergency electricity generation equipment for port cargo terminals. The required non-federal match of $437,500 draws from a 2023 state legislative grant and revenue bond sales the Assembly approved in April 2025.

Port's Aging Electrical System

Cheryl Beckham, port deputy director, wrote in the administration memorandum that "the POA's current dock power facilities date back to the 1960s and are located within active cargo transit yards subject to seismic and tsunami hazards."

Some electrical equipment sits on dock structures that must be demolished to make way for new Terminal 1 construction. The existing system also lacks the capacity to power three new ship-to-shore cranes planned for the modernized terminal.

The project would relocate critical electrical infrastructure to a seismically hardened, tsunami-protected site away from dock and transit yard operations, according to the memorandum, which was approved by Terry Umatum, port director. The full $1.75 million is budgeted under Professional Services.

Why the Port's Function Is Statewide

The stakes extend well beyond Anchorage. As a Department of Defense-designated Commercial Strategic Seaport, the port supports military logistics with no statewide backup. Mayor Suzanne LaFrance, in submitting the resolution, noted that "unlike many areas of the contiguous United States, Alaska lacks redundant transportation systems capable of replacing the Port's statewide cargo function during a disruption."

Administration Recommends Approval

The grant is reimbursable, meaning the port spends first and seeks federal repayment upon submitting required documentation. The administration memorandum recommends approval of the appropriation.