Motives questioned as state signs $28.5M contract for first phase of ferry terminal at Cascade Point
- Mark Sabbatini
- Jul 31
- 5 min read
AMHS board members question practicality for travelers; agreement coincides with mining company’s plans for ore shipping facility at the site
A $28.5 million agreement for a ferry terminal at Cascade Point, signed this week by the state despite objections by Alaska Marine Highway System board members, is being welcomed by a gold mining company planning an ore shipping facility at the site.
The agreement dated Monday for site preparation and other work with a 2027 completion date does not include funds for the ferry terminal itself, with the total project cost estimated at $77 million. The site is on land owned by Goldbelt Inc., which agreed in 2023 to partner with the state on the ferry terminal and also has a cooperative agreement with Grande Portage Resources Ltd. for that company’s proposed ore shipping terminal.
"Development of the ore terminal is not contingent on development of the passenger ferry terminal — it can be developed prior to (and independently of) the passenger ferry facility," Grande Portage stated in a May 29 press release. "However, having the ferry terminal proceed first is highly advantageous as it would result in the development of infrastructure that will also be necessary for the ore terminal, particularly the new access road and bridge. This reduces the time and cost required for future ore terminal development."
Grande Portage in March announced exploratory plans for a new Amalga gold mine north of Juneau and south of Cascade Point.
Gov. Mike Duneavy and officials in his administration say the new ferry terminal 30 miles north of Juneau will improve access by cutting about two hours from the six-hour boat trip between Juneau’s Auke Bay terminal and Skagway. It’s also promoted as part of a “Chilkat Connector" plan that involves at least two new ferry terminals — the other at the end of a road from Haines extending southward along the mountains on the west side of Lynn Canal.
"That ferry ride would be very short, and you would have an even bigger fuel and time savings," Sam Dapcevich, a spokesperson for the Alaska Department of Transportation and Public Facilities, said Wednesday. "You could potentially run it three times a day, back and forth, or maybe more between Cascade Point and William Henry Bay."
"So if you were a Skagway or a Haines resident, you might be able to come down (to Juneau) in the morning and take care of business. And I don't know if you could make it back in the same day, but you might be able to only spend one night in Juneau versus multiple, so it would improve transportation there."
One of the goals of a 20-year long-range ferry system plan released earlier this year is "to shorten up routes, where you can with roads," he added.
But skeptics say road access to Cascade Point poses plenty of practical problems for travelers such as hazardous conditions during winter and access for walk-on passengers without vehicles. Those skeptics include members of the Alaska Marine Highway Operations Board, who in a meeting last Friday reiterated statements from earlier meetings that the Dunleavy administration has failed to show the project makes sense economically and for travelers.
"It seems like our inquiries are being ignored and, without knowing anything else, I'm just going to go on record that I'm against this until we have more information," said Bob Horchover, a board member appointed by Dunleavy. "And to continue to develop without even the reason for doing it is, to me, a boondoggle and so until something's presented I am fully against development of Cascade Point."
Opposition to the Cascade Point terminal has been expressed by the municipal governments of both Skagway and Haines.
“It is difficult to understand why the State is choosing to invest in the construction of a new marine facility rather than rehabilitating existing terminals, many of which — including those serving northern Southeast Alaska — are in urgent need of repair,” declares a letter by the Skagway Assembly sent to the state last month.
The Haines Borough, in a July 23 letter, states "In the past four years, we have sent two letters to the state requesting answers to concerns about the Cascade Point site, including but not limited to the state’s provisions for getting walk-on passengers to their destination, Juneau. Our long-term assumption is that the state ferry provides our access to Juneau and the Cascade Point location would get many of us only halfway there. Our questions have not been answered."
Skeptics say Dunleavy has been hostile toward the ferry system throughout his seven years in office, from trying to eliminate most of its funding early on to failing to take full advantage of hundreds of millions in federal funds intended for fleet and infrastructure upgrades.
As such, his motives for supporting the Cascade Point project are being questioned — especially since he is a strong proponent of resource development, including endorsing President Donald Trump’s plans for full-scale activity in Alaska by repealing all federal regulations that prevent maximum utilization of those resources.
Offering public testimony in March of 2024 about the Cascade Point terminal before the presentation to the board was Gabriel Baylous, a Ketchikan resident who said it appears the main beneficiaries are Goldbelt, local mining companies and other commercial interests.
“It will inconvenience walk-on passengers who are in the most need, and do nothing to address systemwide problems and take away funding from communities in need,” he said. “But this project is of great benefit to Goldbelt, Coeur Alaska, Kensington, Berners Bay landholders and construction companies.”
Grande Portage, in its press release, states the proposed Amalga Mine project is an "outgrowth of the Herbert Gold discovery situated approximately 25 km north of Juneau."
"The Company holds a 100% interest in the New Amalga property," the release states. "The New Amalga gold system is open to length and depth and is host to at least six main composite vein-fault structures that contain ribbon structure quartz-sulfide veins. The project lies prominently within the 160km long Juneau Gold Belt, which has produced over eight million ounces of gold."
When asked about the characterization of Cascade Point as a "boondoggle," Dapcevich said a DOT study showing the economic and other benefits of the Cascade Point terminal is scheduled for release soon.
"The economic report is in draft form, but should be coming out pretty soon," he said. "We'll show why it is good for the ferry system."
• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.
