Port commission mulls fender alternatives for new port
In last week’s regular Port Commission meeting, the body discussed an array of topics, starting with a work session on fenders to be installed at the prospective extended port facilities. As the Arctic Deep Draft port project is gaining momentum due to a boost in federal money for the Army Corps of Engineers’ portion of the financing and general awareness of the lack of Arctic maritime infrastructure, the commission requested a joint meeting with the Nome Common Council to discuss funding for the city’s cost share obligations. In other business, the commission rejected a request from staff to pass a motion that would bring to the City Council a request to purchase gravel material from Q Trucking without going to bid, as it would piggyback on a Bonanza Fuel project to fill gravel north of Bonanza’s tank farm.
Due to the absence of commission chair Jim West Jr., Commissioner Charlie Lean presided over the meeting. Present were commissioners Russell Rowe, Gay Sheffield, Derek McLarty, Drew McCann and Shane Smithhisler.
Fenders
In a work session, PND engineer Bryan Hudson walked the commission through four different fender alternatives that would be installed. The port expansion entails extending the existing causeway by 3,400 feet and a 2,000-feet L shaped sheet pile dock, which will incorporate fenders for berthing of vessels. The engineers into account seasonal ice loading forces and size of vessels that will dock. The commission agreed on an alternative that is a combination of permanent pile fenders and seasonally removable foam fenders. The engineer’s note summed up the advantages: “Highly functional with low risk related to ice damage, construction and minimal maintenance needs.” A cost estimate would put the fender system at just over $5 million, excluding maintenance. The commission unanimously voted in favor of that alternative.
Port expansion
Included in the meeting packet was the Alaska Economic Report which highlighted upcoming deadlines for the Nome and Anchorage port projects. Federal money, $250 million, were approved for the Army Corps of Engineers to finance phase one of the port expansion, with $83 million that must be secured by the City of Nome by November. An additional $92 million is needed by the city for local service facilities. Commissioner Gay Sheffield requested a joint meeting with the Nome Common
Council to be briefed on the money pursuit for the port expansion. It would be good to know what the scheduling time table is, what grants and funding opportunities are pursued and just be generally “on the same sheet.” Port Director Joy Baker responded that she has submitted two grant applications, that the city lobbies the state for investment in the project and that she hopes to have some news in regard to a public-private partnership soon.
Commissioner Shane Smithhisler requested clarification on the recent special Common Council session with Senator Lisa Murkowski. On the agenda was discussion of areduction of local cost share for the port project, yet nothing of the sort was discussed. Did Murkowski make an announcement to the effect? No, explained Baker. That was just a hopeful request. It was also submitted to Senator Dan Sullivan’s office, “hoping that they can facilitate some kind of reduction, but nothing was decided on that front,” said Baker.
City Manager Glenn Steckman said that the City doesn’t have the borrowing power to come up with the $183 million for the city’s share of the port expansion. He said that interest is building on an Arctic deep draft port with all that is happening right now: the Russian invasion of Ukraine and military concerns, climate change and opening of shipping lanes. Steckman said the city requested $175 million from the State legislature for the port project.
He added that Quintillion has expressed interest in the port, as has the Deputy Consul General of Korea, who visited Nome on April 7 and 8. Deputy Consul General Seung-man Sang came to Nome to visit the Korean community in Nome and met with city officials. Steckman said he was interested in the port expansion project. On the Korean Consular Office of the Republic of Korea’s website, Deputy Consul General Sang wrote that he hopes for greater cooperation not only between the USA and Republic of Korea but also Alaska. “I wish this same relationship would grow between Korea and Alaska, seeking more strategic cooperation in various fields such as natural resources, climate change, and Arctic routes. In this sense, for the first time in history, ROK Navy ships’ entry into the Anchorage Port last November was in line with this future direction of bilateral relations.”
In a follow-up phone call with the Nugget, Steckman said that there are no discussions with foreign interests about port financing. He said even with Quintillion, they have only expressed their interest in the port, but no negotiations are taking place at this point.
Pad expansion
Harbormaster Lucas Stotts asked for an addition to the agenda to discuss infill work at the Thornbush pad in conjunction with Bonanza Fuel tank farm expansion. Bonanza Fuel plans to expand and fill in an area north of the existing tank farm. The port’s upland Thornbush pad is adjacent. Port Director Joy Baker asked the commission to pass a motion that would recommend to the Nome Common Council to authorize the city manager a purchase order to Q Trucking of up to $153,000 to place gravel, geotex and cobbles on the city-owned property just east and north of Bonanza Fuel’s project.
Baker argued in a memo to commissioners: “There is benefit from piggybacking on BFI [Bonanza Fuel] contract work by capturing this CY rate without going through the time and expense of bid doc prep, advertising, contract solicitation, mobe and demobe, essentially using economies of scale.”
The commissioners expressed discomfort as the agenda item addition was brought to them last minute, so that the public couldn’t see it on the published agenda, and that they were asked to recommend a non-bidded project to go forward, even if it may or may not save the city money, time and effort. No motion was made and therefore no action was taken.