The U.S. Army Corps of Engineers says plans to build the country’s first deep draft port in the Arctic are too expensive.
The Army Corps canceled its port expansion contract solicitation on Wednesday. It cited two key factors: the proposed pricing exceeded both the cost limits set by U.S. law and the available funding for the project.
According to a City of Nome resolution from September of 2023,the estimated total cost of the project was $662,569,000, with a 90-10% split primarily paid for by the Army Corps.
Per the resolution, the city was set to pay 100% of costs related to local improvements such as roads, docks, and utilities.
The decision halts the project that aimed to significantly improve and expand the capacity of the Port of Nome, a critical hub for cargo and commerce in western Alaska. The project would have deepened the port to 40 feet, allowing for large military vessels and cruise ships to dock.
The Army Corps did not immediately respond to a request for comment. Nome city officials declined to comment. They expect to meet with Army officials in the near future to discuss a path forward.
Underwater construction was supposed to start next summer. It wasn’t immediately clear when the project will be reopened for future consideration.