Municipality Receives Judgement in MARAD Case

Mayor's Office

2/24/2022

Anchorage, AK ­– Today, the United States Court of Federal Claims aw­arded the Municipality of Anchorage (MOA) $367,446,809 in damages from the U.S. Department of Transportation, Maritime Administration (MARAD) due to design, construction, and project management failures at the Port of Alaska Intermodal Expansion Project. This judgement is subject to appeal.

In December, a federal judge ruled in favor of the MOA's lawsuit regarding this matter. It was determined that MARAD breached its contract with the MOA because of the numerous design and construction defects associated with the Intermodal Expansion Project.

“I am pleased with the judge's decision on this long-standing legal case," said Mayor Dave Bronson. “This award will help make the MOA whole regarding the Expansion Project. Though this is a positive outcome, we must remember that the appeal process could take up to a year, and the final amount to be paid is unresolved. In the meantime, we still need to construct a seismically resilient port that achieves food security for our state."

“I will continue to advocate for the Port of Alaska, as it is the single most important piece of infrastructure in our state," concluded Mayor Bronson.

Port of Alaska Director Steve Ribuffo said, “The awarded damages will enable us to get the north end properly fixed, but we cannot lose sight of the bigger picture: securing funding for the overall project to rebuild and modernize the port."

The full ruling can be read here.

The Port of Alaska Modernization Program is an estimated $1.6 – 1.8 billion project. The MOA still needs $600 million from the State of Alaska to design and construct one seismically resilient cargo dock at the port.

Media Contact: Hans Rodvik, Deputy Communications Director, hans.rodvik@anchorageak.gov, 907-570-6646

Bob Owens, Municipal Attorney, Robert.owens@anchorageak.gov, 907-343-4240

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