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Port of Alaska’s $800 million Terminal 1 takes shape
T he Port of Alaska is moving ahead with one of the largest infrastructure projects in its history: the $800 million redevelop- ment of Terminal 1, a multi-year effort designed to modernize the port’s con- tainer operations and strengthen its long-term capacity. John Daley, Engineering Manager for the Don Young Port of Alaska Modernization Program, told APP conference delegates that significant funds and time had already been invested even before construction began. “Before we even broke ground on our site, we had spent over $100 million on prefabrication, including piling and precast concrete — much of which was produced in the Seattle area,” Daley said. Estimated to take a total of four years to complete, the Terminal 1 project is currently at the pile-driving stage. Daley noted that construction is being carried out through a joint ven- ture between Manson Construction and Michels Corporation, with the partnership helping address the bond- ing capacity and scale required for the project. One of the most complex elements involves the container cranes that will serve the new dock. Terminal operator Matson is providing three cranes by repurposing existing equip- ment from the Seattle area and trans- porting it north to Alaska. The cranes are expected to arrive in 2028. That arrangement creates a tightly coordin- ated schedule involving the Port as owner, the construction contractor and Matson. The dock infrastructure, electrical system and cranes must all be ready at the same time, with the project targeting August 2028 for the major elements to converge. The cranes also bring specific elec- trical and physical requirements that
Alaska’s climate adds another layer of complexity. Marine construction in Cook Inlet is severely constrained during the winter months, roughly from November through March, when ice prevents most marine work.
must be incorporated into the new terminal infrastructure. Detailed con- tracts have been developed to establish responsibilities and address potential delays between the parties. Alaska’s climate adds another layer of complexity. Marine construction in Cook Inlet is severely constrained during the winter months, roughly from November through March, when ice prevents most marine work. Contractors therefore must demobil- ize and return during successive con- struction seasons, compressing much of the work into Alaska’s relatively short summer window. Environmental considerations are equally important. Cook Inlet is home to the endangered beluga whale, requiring the Port to impose restric- tions on pile driving. Observation sta- tions monitor the area, with observers watching for whales as far as several miles from the construction site. “Anytime there’s a beluga whale in the area, we have to stop pile driving,” Daly said. “And that happens quite often, especially in the fall, because they chase the salmon up the Cook Inlet.” “Funding is obviously a big chal- lenge,” he continued. “We appreci- ate the support we’ve received from MARAD and other funding agencies but we’re always searching for ways to add to that.” Despite the challenges of funding, weather, environmental requirements and complex project coordination, Daley said the Terminal 1 program remains on schedule.
John Daley, Don Young Port of Alaska
For visitors to the Don Young Port of Alaska, the scale of the undertak- ing is already unmistakable. “It looks like we’re building the Grand Coulee Dam there right now. Honestly, there’s equipment everywhere,” he said, extending an invitation to any- one in the area to visit. With construction progressing and the major components moving toward their planned 2028 conver- gence, Terminal 1 represents a sig- nificant investment in the future of Alaska’s marine transportation infrastructure.
October 2026 — PACIFIC PORTS — 17
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