The state of Alaska is considering opening up a new ferry terminal in Southeast Alaska, connecting Alaska’s ferries to the Lower 48 road system without going through Canada.
The idea comes as Alaska continues to struggle with the closure of the ferry terminal at Prince Rupert, British Columbia. Now, the state is conducting a $250,000 study to see if a terminal on Alaska’s side of the border would be a good replacement.
For decades, the Alaska Marine Highway System relied on a terminal at Prince Rupert as its southern road connection. The state has leased the terminal from Canada since 2013, but it’s been closed for most of the past six years. There are numerous complications, like infrastructure challenges and disagreements with Canada over border control responsibilities. The dock needs over $20 million in repairs, and Alaska’s aging fleet isn’t certified for international travel anymore.
Jim Clark spoke about it at a regional development meeting in Ketchikan last year. He’s the former chief of staff for Governor Frank Murkowski, who worked on the ferry system for decades.
“If we can put a man on the moon, we ought to be able to solve the problem between here and 90 miles away at Prince Rupert,” Clark said.
Prince Rupert’s closed terminal has been a hot topic in many southern Southeast meetings. Some, like Robert Venables of the Southeast Conference, say they’re not ready to give up on Prince Rupert.
“It’s going to take everyone to lean into this thing,” Venables said. “It is problematic at the highest levels of bureaucracies to try to get back to Prince Rupert. But we’re going to give it our best, best push, and we’re going to keep pushing until it happens.”
The Prince Rupert connection isn’t completely off the table. But Alaska would need a federal waiver to bypass a requirement that steel materials for repairs be American-made. The state has requested this waiver in recent years without success. Canadian officials have opposed the requirement because the terminal is on Canadian soil.
And so, the state’s Department of Transportation has considered Hyder, Alaska — about 90 miles from Ketchikan — as an alternative.
“Fortunately, we have a lot of data for this site,” said Kirk Miller, an engineer with the state’s Department of Transportation, last year. “We’ve done engineering up and down this whole Causeway, the island, I’ve been working on their harbor and all these projects there for years. So, we have data, but not quite enough.”
This October, a new feasibility study began and is expected to be completed in mid-2026. The study is looking at all the details, like where a dock would go, the water depths, dredging, and environmental concerns.
It’s estimated the new terminal would cost about $30 million. It’s located about the same distance to Seattle as Prince Rupert – about 1,000 road miles. Prince Rupert is much larger than Hyder and has more amenities, but Hyder would be under Alaska’s control.
“I just want to really voice my support for Hyder,” said Bob Horchover, speaking in July as a member of the Alaska Marine Highway Operations Board, which makes recommendations to the state.
“In Hyder, we own the land, and most of the work is already done,” he said. “It’s a very adaptable situation. So, for me, there isn’t even a discussion.”
The state approved a 20-year ferry plan this year, based, in part, on a survey of over 2,500 Alaskans. Many respondents said restoring a road connection in Southeast was a priority.
Local governments agree. The Ketchikan Gateway Borough passed a resolution supporting a Hyder terminal if Prince Rupert doesn’t work out. Nearby Metlakatla feels the same. Mayor Albert Smith said that the lack of a Prince Rupert connection has hurt his town’s economy.
“With fishing, the rail system is real close to Rupert, so we could use the ferry to transport fish, and then it’s connected right to the 48s,” Smith said. “It’s a more efficient way than other ways of shipping.”
At least one Alaska lawmaker is on board: Republican Representative Jeremy Bynum of Ketchikan.
“I’m going to be a fierce fighter here on the legislative side and make sure we can get the funding in place that we need,” he said.
Whether Alaska rebuilds the Prince Rupert connection or builds a new terminal at Hyder, officials say either option would take five to eight years to complete the necessary infrastructure work.