Cost Estimate for Juneau Road/Ferry Project goes up 37% in Under Two Years to $374 Million;

High Cost of Project Will Limit Funds for Needed Transportation Projects Throughout the State

Anchorage, AK – The Alaska Department of Transportation and Public Facilities (DOT) today issued a revised Juneau Road/Ferry Project cost estimate, increasing the known costs of the project from approximately $273 million (Jan. 2006 estimate) to $374 million (Oct. 2007 estimate).  The vast majority of the funds for this extremely expensive state transportation project, over $244 million or 65%, have not yet been identified. 

The Juneau Road/Ferry Project, a holdover transportation project proposed by the Murkowski Administration, consists of 50 miles of new road that would dead-end at a new ferry terminal across Lynn Canal from Haines.  Travelers would then take a ferry to Haines and Skagway.  Due to the proposed road route along very steep terrain prone to avalanches, rockfalls, and landslides, a good portion of the project will be among the toughest – and most expensive per lane-mile – road construction projects in the country.

“At a time of limited state and federal resources for transportation, it would be a huge mistake for Governor Palin to proceed with the Juneau Road/Ferry Project since there currently is a ferry alternative.  This costly project will benefit very few people statewide, and project money could be better spent on meeting higher-priority transportation needs,” stated Lois Epstein, Director of the Alaska Transportation Priorities Project, a non-profit, statewide transportation watchdog organization.

Federal transportation funding is in decline, so much of the $244 million in currently-unidentified funds will need to come from the state, resulting in transportation needs around Alaska being cancelled, delayed, or scaled back to fund the Juneau Road/Ferry project.  Using state general fund money for this project also could affect non-transportation priorities, such as funding for education and municipal revenue sharing.

As early as 2009, federal funding for roads will be in a steep decline with the Highway Trust Fund going broke, resulting in a cut of 25% or more in federal road funding.  Additionally, because Alaska’s delegation now is in the minority, it is unlikely that Senator Stevens and Congressman Young can ensure in the future that Alaska has adequate funding to meet its transportation needs.  Important state transportation projects that may have inadequate funding should the Juneau Road/Ferry Project proceed include the Glenn/Seward Highway to Highway connection, upgrading the Parks Highway to allow for year-round truck travel, and ensuring the safety of existing roads and bridges.

Epstein, a licensed engineer, also critiqued today’s cost estimate for not providing a cost range enabling decision-makers to see best case and worst case cost scenarios.  Washington State routinely performs this type of “cost estimate validation” on expensive transportation projects.  

Epstein adds that “Those who have tried to hike the route of the Juneau Road/Ferry Project found numerous, insurmountable obstacles.  DOT admits in today’s financial plan it has not sufficiently developed the costs of construction for the northernmost portions of the road since additional geotechnical information still is needed.  It’s likely that costs for this project will rise substantially prior to its expected completion in 2020.”

The Juneau Access Improvements Financial Plan, 2007 Annual Update (October 2007) is available at http://dot.alaska.gov/juneauaccess/assets/07FinancialPlanUpdate.pdf

Read related article in The Juneau Empire.

Download: Press Release, October 29th, 2007 (MS Word, 193k)