The Alaska Senate Finance Committee on Thursday heard testimony on Senate Bill 72, a proposal that would authorize the Alaska Railroad Corporation to issue revenue bonds to acquire a new passenger dock and terminal in Seward, railroad officials told the committee.

The project is estimated at $137,000,000 for the dock and terminal, with the Alaska Railroad planning an additional $1,800,000 investment in an enhanced transfer span to support winter freight operations. The railroad also described a separate $25,000,000 freight dock expansion in Seward funded by a MARAD grant and internal match. Bill O’Leary, president and CEO of the Alaska Railroad Corporation, said the bonds would be revenue bonds of the railroad and “are by statute, not an obligation of the state.”

The railroad said the financing rests largely on a 30‑year, legally binding usage agreement with Royal Caribbean Group that includes an annual revenue guarantee sized to cover the facility’s debt service and operations and maintenance costs. Preston Carnahan, vice president of destinations for Royal Caribbean Group, told the committee the company has executed the agreement and described the commitment as a minimum annual revenue guarantee.

The project would replace a passenger dock the railroad described as dating to the mid‑1960s. Alaska Railroad Director of External Affairs Megan Clemens said the new facility will be a double‑berth pier capable of accommodating two ships simultaneously and able to accept side‑loading vessels, and that the railroad intends to operate the site as an open dock with Royal Caribbean receiving preferential berthing on one side. The railroad is targeting a ribbon‑cutting in spring 2026, contingent on timely legislative authorization.

Seward city manager Kat Lorenzen told the committee the terminal is critical for the community and said the new facility includes shore‑power infrastructure supported by recently acquired federal funding, which she said will cut emissions from docked vessels and add a “significant new ratepayer” for the local electric utility. Jillian Simpson, president and CEO of the Alaska Travel Industry Association, said ATIA represents more than 625 tourism businesses and described cruise visitation as a major statewide economic driver, saying Alaska saw “over 1,700,000 cruise ship visitors” last year and that in “02/2022, those passengers generated $500,000,000 in spending,” as reported to the committee.

Committee members asked railroad and Royal Caribbean officials about the guarantee and the risk if ships do not call Seward as planned. Senator Keel asked whether the guarantee is large enough to cover debt service and operations if no other lines call the dock; O’Leary answered the agreement is sized to pay debt service and operations and maintenance costs even if no other ships use the facility. Senator Stedman emphasized the project’s potential freight value for moving goods into the Anchorage corridor in the event of disruptions to Cook Inlet ports.

The committee’s invited testimony concluded with the chair opening public testimony; none was offered. The committee set an amendment deadline for the bill of tomorrow, Thursday the twentieth, at 5 p.m., and then set the bill aside for future consideration.

The committee did not take a formal vote on SB 72 at the hearing.