The state of Alaska is looking to the private sector to offer ferry service between Juneau and four Southeast villages facing months-long gaps this winter from January to March.

An invitation to bid was posted Monday (11-29-2021) on a state website seeking operators for vessels at least 75-feet long capable of carrying 125 passengers or multiple vehicles for some Southeast routes. It doesn’t mention a range of cost but invites bidders to make their own proposals.

The state Department of Transportation says it’s responding to concerns that a two-month gap in ferry service could bring additional hardships.

“Originally we didn’t have any fill in service plan during that time, but we have received requests from communities,” DOT’s regional spokesman Sam Dapcevich told CoastAlaska. “And we are looking for a way to meet that demand.”

Hoonah Mayor Gerry Byers says when ferry service goes away the cost of essentials goes up in his village of about 800 people on Chichagof Island.

“Everyone has had a hard time during the pandemic,” he said. “Now, with all the prices going up, coming into winter is going to make it harder for residents to be able to live in their home communities.”

That was the fear when Governor Mike Dunleavy’s administration announced gaping holes in the winter ferry schedule.

One reason is that at the end of the year, the LeConte, a 47-year-old workhorse that serves Southeast villages, is going into dry-dock for a scheduled two-month overhaul that will keep it offline until at least March.

DOT’s bidding documents ask for operators to provide regular and on-call service to connect Juneau with the communities of Hoonah, Angoon, Gustavus and Pelican during that period and perhaps beyond.

This wouldn’t be the first time DOT has called up private operators to fill-in for state ferries. It signed contracts with vessel operators Goldbelt and Allen Marine for some routes, though that never fully materialized due to the pandemic. And local officials in upper Lynn Canal chartered a catamaran last year to service Haines and Skagway but that was accomplished with local funds.

But Dapcevich says this request is designed to also include at least one vessel capable of carrying vehicles and on relatively short notice for the foreseeable future. 

“We would have some a contract in place with different vendors, and we could call them up and say, ‘Hey – are you available?'” he said.

Goldbelt, Inc. doesn’t have any vessels capable of carrying vehicles. But Juneau’s urban Native corporation’s chief executive says its catamarans could offer passenger-only service.

“Goldbelt does plan to put a bid in,” Goldbelt CEO McHugh Pierre told CoastAlaska. “I’m really excited for Department of Transportation, and Alaska Marine Highway to be able to finally make this step to allow for routine, dependable transportation that is sized appropriately for each community.”

Allen Marine Tours which operates a fleet of catamarans for whale watching and other excursions is also evaluating the prospect of bidding, the Sitka-based vessel operator’s Zakary Kirkpatrick wrote in an email.

State ferry workers skeptical

The plan to rely more on private operators is, unsurprisingly, getting a cool reception from the unions representing marine highway crew members.

“I would think that these (maintenance) issues can be anticipated,” said Ben Goldrich, a Juneau-based leader of Marine Engineers’ Beneficial Association. His union represents about 75 licensed marine engineers who work on the state’s ferries.

“And we’d like a better understanding of why the state’s not using resources that they currently have tied to the dock,” he added

One asset is the Tazlina, a $60 million Alaska Class Ferry built in Ketchikan. It briefly entered service in 2019 but has spent most of its service life tied up due to a number issues, principally its limited range due to its configuration as a day boat.

Dapcevich listed off a few reasons the Tazlina won’t be activated while the LeConte is out.

“Because we didn’t plan for it,” Dapcevich said. “We are unable to crew it up quickly enough to meet the time-frame for January service.”

Another reason, marine highway officials say, is that the idled vessel doesn’t have all its certifications. And getting a short-term certificate, they say, could be cumbersome to the third-party auditor that issues its certificate.

But Goldrich, the union boss, also says he’s skeptical whether DOT will be able to find a vessels that meets its needs.

“I’m not sure that those vessels exist or are available,” Goldrich said. “Seems like the state ought to be using their newer resources in this case.”

In the rural coastal villages, local leaders say they’re glad that the state is supplementing the winter schedule.

“It’s better than nothing,” Byers, the Hoonah mayor, said. He says the backdrop for all of this is the federal infrastructure package’s promise of $1 billion for a new five-year essential ferry service program.

“My big things is, the state got all this federal money for ferries and I think we should try to utilize it to the best advantage to help the communities survive,” Byers said.

Alaska Class Ferry to get $15 million upgrade

In related news, there’s some progress in upgrading the Tazlina’s sister ship Hubbard with crew quarters that would extend that Alaska Class Ferry’s range and make it more suitable as a fill-in for the half-century old ferries that normally ply the panhandle. 

DOT confirmed that Vigor Alaska is the low bidder at just over $15 million to do the work early next year. The contract has not been finalized, though representatives for the company that operates the Ketchikan shipyard say they are “cautiously optimistic” they’ll get the tender.

The bids for private ferry operators are due on December 15 with the goal to finalize the contract on December 28.

Correction: An earlier version of this story misreported that the Department of Transportation had chartered catamarans for service in upper Lynn Canal. That was a local initiative.

News last week that Canada has banned cruising in Canadian waters until February 2022 has most considering Alaska’s large cruise ship season cancelled this summer. But some small cruise lines, like Sitka-based Alaskan Dream Cruises, are still planning to operate.

At a press conference on Thursday (2-11-21), head of marketing Zak Kirkpatrick laid out preliminary plans for the upcoming season. Alaskan Dream has two planned sailings in April and will start with a full schedule in May with planned stops in remote communities like Kake and Pelican. He said they’ve been in close communication with local leaders.

“So Alaskan Dream Cruises is in a unique position because we’re locally based, we’re Alaska owned small ship cruise line, and our vessels embark and may disembark from our own privately-owned marine facilities in several Southeast Alaska communities,” he said. “And our itineraries just by virtue of being small ships, they’re really flexible.”

Because their ships carry less than 250 passengers, they’ve never been subject to federal no sail orders outlined by the Centers for Disease Control and Prevention. They also aren’t impacted by Canada’s ban on cruising because all of their trips start and stop within Southeast Alaska.

But Alaskan Dream still cancelled their 2020 season for health and safety reasons. Kirkpatrick said they’re feeling confident they can now operate safely with proper protocols like sanitization, masking and temperature checks. He also pointed to high vaccination rates in Southeast and among their clients.

“The average age of our cruisers is over 60, so many booking expeditions with us expect to have received the vaccination in the coming months, or have already received at least the first dose of vaccination, and we expect this to accelerate as the nation-wide rollout ramps up and more vaccinations are approved for use in the near future,” he said.

Some of the company’s plans like whether they’ll require vaccinations for passengers and crew are still up in the air and dependent on additional guidance from the CDC. They will require a negative test within 72 hours of departure for all guests, and they’re attempting to purchase their own tests, so they can test anyone on board who exhibits symptoms. They also have a clear plan if someone needs to quarantine. 

“Upon confirmation of a positive COVID test, the affected guests or passengers would be quarantined in their room,” Kirkpatrick said. “And upon consultation with shore-based medical, the guests would be transferred to either a Sitka or Juneau local hotel.”

Kirkpatrick said they’ve seen an uptick in bookings over the last week. He also said the company hasn’t given up on a large cruise season for 2021, which still impacts their day boat company Allen Marine. They’ve been in contact with Alaska’s congressional delegation, urging them to push back on Canada’s decision and search for alternatives.

Erin McKinstry is a Report for America corps member.

Editor’s note: Since this story aired, the Canadian government announced a ban on cruise ships in Canadian waters until February 2022, effectively canceling Alaska’s 2021 season for large cruise ships.

In pre-pandemic times, preparations for the summer season would already be underway for Alaska tourism businesses. But uncertainty about the 2021 season has left many in a holding pattern, especially those that rely on the cruise ship industry. Some Sitka businesses are feeling cautiously optimistic while others are worried about the future.

Preparations for the 2021 season are already underway on the 68-foot Takeena, says co-owner of Takeena Adventures Serena Wild. Extension cords and tools litter the main room.

“Sorry, it’s under construction right now,” Wild laughs. “It’s winter time project time!”

The company takes small groups on five-day excursions out of Sitka to go fishing, hunting, kayaking or whatever else the group wants to do. Wild and her partner purchased the boat in February of 2020, just in time for the start of the pandemic.

“Our business plan did not have a pandemic in it and luckily our lenders are understanding,” she says.

Their numbers were a fraction of what they expected, and they weren’t able to access any federal CARES Act funding because they didn’t have any previous revenue. But Takeena Adventures did have a season. Their crew is small, and the groups of no more than six guests tested before heading out on the boat.

“It’s like your own personal cruise ship. Just you and your family on board, or friends,” she says.

The company doesn’t rely on passengers from large cruise lines at all, and that could be why reservations are looking brighter for 2021. Wild says they only have a few weeks left open. That sentiment was echoed by a handful of local private lodges.

Smaller cruise lines like Alaskan Dream Cruises that aren’t subject to a federal no sail order or affected by the closure of Canadian ports are also looking at 2021 with a hint of optimism. 

“We definitely see and recognize that there is pent up demand for travel,” Zak Kirkpatrick, head of marketing, said.

Alaskan Dream Cruises cancelled their 2020 season for health and safety reasons, but have plans  to operate in 2021. Kirkpatrick says they’re heartened by the vaccine rollout, but recognize the need to be flexible. 

“We have a plan of being nimble and just rolling with the punches, like all of society is having to do,” he said.

The bigger concern is for it’s parent company, Allen Marine, which has built a regional day boat business that depends almost entirely on large cruise lines. Normally, they’d be in the midst of hiring upwards of 600 seasonal employees around the region right now, but they’ve had to tell people to hang tight.

“We just try as hard as we can to keep close communication,” Kirkpatrick said. “Of course, there’s a lot of crew members that are really eager and hopeful.”

Although it’s economy is more diverse than many Alaskan communities, with strong fishing and government sectors, Sitka’s visitor industry isn’t insignificant. Tourists pumped more than 50 million dollars into local businesses in 2016, and the bulk of those arrivals came on cruise ships: more than 80 percent. 

“You cannot overstate the cruise industry is to Southeast Alaska,” Kirkpatrick said. “It’s not just us as a tour operator or the people that work for us, it’s our local restaurants, our local retailers. Everyone wants it to be healthy and safe, but are also very eager to get this sector of the economy rolling again because there’s just hardly anyone that it doesn’t affect.”

On Thursday, the Canadian government announced a ban on cruise ships in Canadian waters until February 2022, effectively shutting down Alaska’s 2021 season. Large cruise lines had been holding out hope, and the order could be rescinded if pandemic conditions improve. But cruise lines would still need to meet requirements set by the US Centers for Disease Control and Canada would need to open its ports.

Chris McGraw is general manager of Halibut Point Marine Services, which operates Sitka’s private cruise ship dock. He says he was feeling hopeful early last fall, thinking the vaccine would be widely available in time for the 2021 season, but now, he’s not so sure.

“At this point, kind of just waiting and doing our best to prepare for the season while spending as little money as possible not knowing if and when ships will show up,” McGraw said.

That’s particularly challenging because they’re currently undergoing a large expansion at their facility that needs to be completed in time for the cruise season.

And they’re not the only ones approaching the season with caution. For kayak tour company Sitka Sound Ocean Adventures, more than half of the guests come from cruise ships. Manager John Dunlap said they’ve hired a few guides to start in early May, with plans to bring on more if the cruise ships do come. 

He thinks they’ll make it through regardless, but he worries about businesses that have less diverse streams of income.

“I think there’s a lot of folks that have tourism businesses in Alaska that if this is a weak year for them, it’s gonna be really hard for them to make it through to another year,” Dunlap said.

And even for businesses like Takeena Adventures that are feeling more optimistic, the pandemic still brings a lot of uncertainty about the future.

“We have been stressed. Starting a brand new business, everything’s uncertain. There’s a lot of money going out to get it going and you’re just hoping that money is going to keep coming in,” Wild said. “The biggest challenge is trying to get our name out there and let people know that we’re available, that you can come to Alaska safely, and go out and not be around the general population.”

For those businesses that do hang on, 2022 could be a comeback year. Sitka’s Chamber of Commerce is projecting 400,000 cruise ship visitors, almost double the number from 2019.

Erin McKinstry is a Report for America corps member.

The Admiralty Dream in Glacier Bay. Alaskan Dream Cruises began with the Admiralty Dream and Alaskan Dream in 2011, added the Baranof Dream in 2013, the Misty Fjord in 2015, and the Chichagof Dream in 2016. (Alaskan Dream photo)

A Sitka-based tour company has become a dominant player in the small-ship cruise industry in Southeast Alaska.

Alaskan Dream Cruises was launched 5 years ago by Allen Marine, which has offered day trips and passenger lightering to the major cruise lines since 1970.

Marketing director Zak Kirkpatrick told the Sitka Chamber of Commerce this week (11-30-16) that Alaskan Dream now operates five small ships on itineraries ranging from a week to 11 days. But they all have one thing in common.

You’ll note that none of these itineraries will ever go, say Juneau to Ketchikan. It’s really important for Dave (CEO Allen) and the Allen family that everybody coming here touches Sitka. That’s extremely important to them. And it makes a lot of sense, as we all know in this room. Sitka has a lot to offer. In his letter this year Dave said, “Our itineraries are designed to ensure that you will enjoy an authentic and personal Alaskan experience. At the conclusion of each day you’ll feel that you’ve done much more than just travel through the Inside Passage. You will realize that you’ve witnessed the region through the lens of a resident. You will have experienced natural interactions with local peoples and indigenous cultures, and have walked the streets and gravel roads of local villages which rarely see outside visitors.”

Kirkpatrick said that there are now 17 small cruise ships from five different companies competing in the Southeast market, with a total capacity of about 1,200 — around half the passengers of a single large cruise ship. What’s more: there’s little overlap between the market for large- and small-ship cruising. Alaskan Dream sees no reason to disrespect the big players.

We have very, very close ties and relationships, and do a lot of business with large cruise lines. That’s Allen Marine’s whole model. That’s what we’ve done since 1970 when it started. We think that it would be misguided, truly, to disparage those large-ship lines because we’ve found that small ship cruising is not for everybody. Just like large-ship cruising is not for everybody. Some people want this educational enrichment, they want a Native village. Other people say, Hey, I’d like a large room, and to be able to go to the casino, or have more of the party life. So our saying is that Alaska has something for everybody. And something for the unique tastes and individual preferences of our guests. We always say, There’s no bad way to see Alaska.

Alaskan Dream’s five-ship fleet is second only to UnCruises, which operates six. Kirkpatrick fielded a question from an audience member about whether Alaska Dream would consider capitalizing on its success and serve other parts of Alaska.

He offered this anecdote from a recent trip to the Alaska Travel Industry Association conference.

When I was up at ATIA the mayor of Nome came up to me and said, I need to give a message to the Allen family: We want you in Nome! So all I can speak to the growth in other areas, whether it be south or north, is that options never seem to be off the table with the Allens. Right now we’ve found a great little niche doing what we know best in Southeast Alaska. It’s working pretty well and we’re filling boats. So that’s what I can say to that.

Former Allen Marine vice-president Rob Allen — now CEO of Sitka Community Hospital — speaking from the audience, offered the insight that every small-ship cruise line that wasn’t “well capitalized” had gone bankrupt, and that his family was aware of that risk.

Still, there are happy accidents. Rob Allen’s brother Dave, the current president of Alaskan Dream, reportedly increased his fleet’s capacity with the click of a button.

Dave also often gets asked what’s the game plan? Are there more ships? And the only thing I’ve heard him really say regarding that is, Please keep me off eBay! The story goes that he bid on that Chichagof Dream and thought he may not have got it, but ended up getting it.

Alaskan Dream Cruises served just under 2,000 passengers in its inaugural season in 2014. Last summer they nearly reached 3,000. Kirkpatrick said that early bookings — plus added sailings from the Chichagof Dream — would likely push their passenger count over 3,000 in 2017.