he Alaska Marine Highway System (AMHS) continues to adapt and evolve as it fulfills its crucial role connecting coastal communities across Southeast. Recent developments in funding mechanisms, fleet renovations, and service schedules highlight both the challenges and innovations that keep this essential transportation network afloat.
“Toll credits are not actual cash; rather, they’re a financing tool that allows the state to cover the required match for federal transportation grants without having to put up state funds,” explains Sam Dapcevich, Alaska Department of Transportation and Public Facilities Public Information Officer for Southcoast Region and AMHS. “Thanks to a recent approval by the Federal Highway Administration in April 2024, Alaska now has a formal toll credit program in place.”
Toll credits function as a budgetary multiplier, allowing every state dollar invested to draw down significantly more federal support. The credits accrue when an agency applies toll revenue toward building, maintaining, or improving its facilities, as opposed to other expenses.
The toll credit program specifically benefits the AMHS by reducing the local match requirement for federal transit grants from 20 percent to just 9 percent in many cases. This innovative funding approach has allowed Alaska to secure approximately $84 million in federal funding for AMHS operations in the current fiscal year, representing a 15 percent increase over previous allocation levels.
The implementation of real-time vessel tracking has improved transparency and helped communities better prepare for arrivals and departures. Passengers can now track their vessel’s location through the AMHS website and mobile app, reducing uncertainty during winter weather disruptions.
Onboard connectivity has also seen improvements, with satellite internet now available on major routes. This upgrade particularly benefits business travelers and remote workers who increasingly rely on digital connectivity even while traveling. Local schools have utilized this improved connectivity for educational field trips, allowing students to remain engaged with classroom activities even during multi-day ferry journeys.
“As of early 2025, the Alaska Marine Highway System continues to manage an aging fleet with several vessels undergoing maintenance or awaiting upgrades,” notes Dapcevich. “The MV Kennicott is currently out of service for the year, undergoing generator replacements and steel repairs to meet federal emissions standards.”
MV Matanuska, in service since 1962 and refit in 2019, has faced ongoing challenges. “The Matanuska remains in layup due to extensive steel deterioration. A decision on its future is pending,” Dapcevich says.
Meanwhile, MV Columbia, once the flagship of the fleet, continues its limited summer-only operations after extensive renovations completed in late 2024. Columbia now serves the mainline route between Bellingham, Washington, and Southeast. Dapcevich notes that plans to replace controllable-pitch propellers were canceled to keep the vessel operational until a new mainliner is built.
Perhaps most promising is the progress on the Alaska Class Ferry program, with MV Tazlina and MV Hubbard now integrated into the Southeast route structure since joining the fleet in 2019 and 2023, respectively. These vessels, designed specifically for shorter routes, have proven their value despite initial concerns about their day-boat configuration.
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“Southeast Alaska continues to be served by a combination of one mainliner vessel, two dayboats, and one smaller commuter vessel,” Dapcevich says. “Right now, the MV Columbia is our Southeast mainliner, and it’s making weekly roundtrips between Bellingham, Washington, and Skagway, stopping in most Southeast communities along the way.”
Key Southeast communities—including Juneau, Ketchikan, Sitka, and Petersburg—see regular service, often with fewer weekly sailings than historical levels. Smaller communities such as Angoon, Hoonah, and Kake have seen service reductions, but Dapcevich says strategic scheduling maintains essential connectivity.
“To help fill service gaps while the LeConte is in extended overhaul for major steel replacement until late July, we’re offering supplemental sailings to communities like Pelican and Angoon using contracted catamarans operated by two Southeast Alaska tour companies,” Dapcevich explains.
He adds, “We’ve worked closely with community representatives to ensure that, even with reduced frequency, sailings align with critical needs—whether that’s medical travel, freight delivery, or school activities.”
Southeast communities have shown remarkable resilience in adapting to the evolving AMHS service. Local governments, businesses, and residents have developed complementary transportation options, including enhanced air service, private water taxis, and coordinated freight consolidation programs.
These adaptations don’t replace the core function of the AMHS, but they help communities cope during service gaps or reduced schedules.
“It’s not just about transportation. The system supports local economies and helps people stay connected—culturally, socially, and economically,” Dapcevich emphasizes. “It carries groceries, seafood, construction equipment—you name it. It gives people access to healthcare and education, and it brings tourists into places they probably wouldn’t get to otherwise.”
Even for the road-connected communities of Haines and Skagway, which saw winter highway closures due to avalanche risks, the ferry system provided crucial alternative transportation when road access was compromised.
A significant policy victory for the AMHS came in late 2024 when the US Department of Transportation formally designated the system as an “Essential Transportation Service” under federal guidelines. This designation, which followed years of advocacy from Alaska’s congressional delegation, opens additional funding avenues and provides greater regulatory flexibility.
“It’s important to remember that the Alaska Marine Highway is part of the state’s official highway system—it connects remote communities much like roads do elsewhere, and that distinction matters when it comes to funding and federal recognition,” Dapcevich points out.
The designation acknowledges what Alaskans have long understood—that for many coastal communities, the AMHS isn’t a luxury or simply a scenic tourist experience but rather an essential lifeline like Interstate Highways in the Lower 48.
“The Alaska Marine Highway System isn’t just a transportation network—it’s part of the cultural fabric of coastal Alaska,” says Dapcevich. “For many communities, the ferry is a lifeline that has shaped the way people live, travel, and stay connected across vast distances. Generations of Alaskans have grown up riding the ferries.”
The system celebrated its 75th anniversary in 2024 with commemorative events in port communities throughout the region. These celebrations highlighted not just the transportation legacy but the countless personal stories connected to the Alaska Marine Highway System.
“AMHS plays a key role in regional identity. The sight of a ferry arriving in town is often tied to everything from sports travel and student activities to medical trips, shopping runs, and family reunions,” Dapcevich notes. “It’s a shared experience that brings people together and reinforces a strong sense of place. In that way, the Marine Highway is not just a service—it’s a symbol of connection, independence, and community.”
Local schools have incorporated the AMHS history into their Alaska studies curriculum, ensuring younger generations understand the system’s importance to regional development. A traveling exhibit featuring historical photographs and artifacts from the system’s early days has been making its way through Southeast communities, drawing surprisingly large crowds even in the digital age.
But the march of time cannot be stopped, so the AMHS is preparing accordingly. Dapcevich explains, “The 2045 AMHS Long-Range Plan calls for retiring seven of our aging vessels and constructing six new ones over the next twenty years. This is a phased approach—starting with design and early construction in the short term, with one vessel (Tustumena Replacement Vessel) entering service by 2028.”
But even if the fleet had the newest, shiniest ferries, the problem remains: who will drive them?
“Right now, our biggest challenge is crewing,” reveals Dapcevich. “This isn’t unique to Alaska; it’s part of a nationwide shortage of qualified maritime workers. Demand is high across the industry, and there simply aren’t enough licensed crew members to meet the needs of the industry. This shortage affects our ability to operate vessels consistently and limits how much service we can provide, even when vessels are otherwise ready to sail.”
While financial constraints and aging infrastructure present ongoing challenges, innovative funding mechanisms, technological advances, and strategic fleet management have helped stabilize this critical service.
“Right now, AMHS is at a turning point,” concludes Dapcevich. “With an aging fleet and workforce shortages, we’re working to maintain service while also planning for the future. The Draft 2045 Long-Range Plan lays out a path toward a more modern, reliable system—but it’ll take continued investment and support from our communities, policy makers, and elected leaders to get there.”
For the communities of Southeast, the AMHS remains far more than just a transportation option—it represents their connection to the wider world and to each other. As the system navigates its next chapter, the balance between fiscal reality and community need will continue to define its evolution with toll credits, vessel renewals, and schedule adaptations all contributing to its sustained operation.
“It’s more than transportation—it’s a connection to family, opportunity, and community life,” Dapcevich says.