City of Kodiak is the municipal government for the city of Kodiak, separate from the surrounding Kodiak Island Borough. Its council and mayor set budgets, manage the harbor and water and sewer systems, and oversee parks and historic properties like the Griffin building.
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Fewer boats came through Kodiak's city shipyard this year, and its operator lost money
Fewer boats came into Kodiak's city-owned shipyard this year, and the company that runs it lost money.
Highmark Marine Fabrication serviced 40 vessels in the year that ended Sept. 1, down from 54 the year before, and lost $29,264 operating the yard, according to its annual report to the city.
The company attributes the drop to the fishing economy. Its main customers, the local commercial fishing fleet, face "acute global market volatilities and price pressures despite a recovery in harvest volumes," the company wrote, and "vessel maintenance continues to be deferred as a cost."
The boats that did come out of the water stayed longer, an average of 39 days, up from 22. Revenue from days boats spent on land rose 41%, to about $221,000, while hauling, blocking and launching revenue slipped 3%, to about $381,000.
Highmark reported $755,140 in gross income from the yard. Against that, it paid the city $241,308, a $232,908 annual payment plus $8,400 in sales tax, and spent $543,096 on operating costs.
The 40 vessels matched the yard's count from two years earlier. It serviced 54 in the year in between.
Highmark said it has offered seasonal discounts to ease costs for local boat owners. It said it is "hopeful" traffic will pick back up as markets settle and fish prices improve.
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