Contractors move equipment to Cascade Point for ferry terminal work

Contractors move equipment to Cascade Point as state prepares for ferry terminal work

Heavy equipment has begun arriving at the Cascade Point project site north of Juneau, signaling a move by the Alaska Department of Transportation and Public Facilities to prepare for construction of a new ferry terminal. While the state has not yet authorized actual construction, Sitka-based contractor K&E Alaska Inc. was informed in mid-October that it could begin mobilizing equipment and storing materials at the site, according to reports from Alaska Public and Alaska News.

The mobilization comes despite significant political pushback and legal challenges from conservation groups. Staff with the Southeast Alaska Conservation Council observed excavators and other heavy machinery at the site on Friday, Oct. 30, and again on Monday, Nov. 2. The organization has since issued a cease and desist letter to the state, accusing the Dunleavy administration of attempting to “set things in motion before the next governor can put a stop to it” by dividing the project into stages to bypass broader scrutiny.

The controversy centers on whether the state is improperly segmenting a massive infrastructure project to avoid the more rigorous federal permitting required for marine construction. The total cost of the project is expected to scale significantly from its current phase. While the immediate work involves roughly $28.5 million in upland improvements, the full scope of the terminal includes much larger expenditures.

The divide between upland preparation and marine construction

The Alaska Department of Transportation maintains that its current actions are lawful. Justin Shelby, a spokesperson for the agency, stated that the department is “following all applicable laws and regulations” and denied any attempt at unlawful segmentation. The state’s strategy relies on a jurisdictional determination from the U.S. Army Corps of Engineers, which clarified that the first phase of the project—consisting of upland work such as an access road, a bridge over Cascade Creek, and a staging pad—does not affect federally regulated waters.

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Because these initial works are on land, the state argues it does not require a federal permit from the Corps to begin. However, the second stage of the project, which involves the actual berth and waterside facilities, remains under federal environmental review. reports that the second stage is estimated to cost $80.5 million, bringing the total project investment well beyond the initial $35 million listed in the draft state transportation plan.

Critics argue this distinction is a technicality used to create momentum for a project they believe is fundamentally flawed. State Sen. Jesse Kiehl, a Democrat representing the affected communities, questioned the logic of starting work before the ultimate goal is even approved.

“If you don’t know that the ultimate thing you’re going to build for the whole project is going to be allowed, why would you start building yet?”

Economic efficiency versus local disruption

The debate over Cascade Point is not just about environmental permits; it is a fundamental disagreement over the future of Southeast Alaska’s maritime logistics. The state’s primary argument for the new terminal is efficiency. By building a terminal further north than the current Auke Bay location, the Department of Transportation claims it can shorten ferry routes, reduce fuel consumption, and optimize the entire Marine Highway system.

This vision is supported by a $37.6 million federal Rural Ferry Program award, which Governor Mike Dunleavy and Alaska’s congressional delegation announced in August. You can find more details regarding the administration’s stance on this federal investment on the official Governor’s office website.

Call out Cascade Point ferry terminal project

However, the “efficiency” gained by the state may come at a direct cost to Juneau residents and travelers. Critics point out that a terminal at Cascade Point would require passengers to drive or take a shuttle an additional 30 miles from Juneau just to board the vessel. This shift could complicate travel for locals and businesses that rely on the current Auke Bay infrastructure.

The financial stakes are high. State Rep. Louise Stutes, a Republican from Kodiak and member of the House Transportation Committee, expressed concern that the state is committing millions to a project that may never be finished. She noted that the current $28.5 million phase is merely a “drop in the bucket” compared to the total cost of a completed terminal.

Projected costs and construction timelines

The following table outlines the estimated financial breakdown of the project phases as reported by state documents and local news outlets:

Equipment arrives at cascade point ferry site before construction is authorized — Photo: alaskanews.com

Project Phase	Estimated Cost	Status/Requirement
Stage 1 (Upland/Access)	~$28.5 – $35 Million	Mobilization/Upland work in progress
Stage 2 (Marine/Berth)	~$80.5 Million	Pending federal environmental review

Despite the arrival of heavy machinery, actual ground-disturbing work cannot begin until the state completes several critical regulatory hurdles. These include an environmental review checklist, a Stormwater Pollution Prevention Plan, and mandatory consultations under the Alaska Historic Preservation Act.

The Department of Transportation is currently monitoring these requirements closely. While Justin Shelby indicated there is a possibility of construction continuing through this year, the agency also noted the timeline could stretch into 2026. This delay was partly due to the Army Corps of Engineers requesting full design information for both phases of the project back in March, rather than allowing the state to proceed with the first phase in isolation.

For the residents of Haines, Skagway, and Juneau, the next several months will determine whether Cascade Point becomes a cornerstone of regional transit or a multimillion-dollar cautionary tale of political maneuvering.

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