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AIDEA, Vigor announce talks to resolve dispute over future of Ketchikan Shipyard

man on ferry looking at shipyard
Eric Stone
/
KRBD
A deckhand aboard Ketchikan's airport ferry watches as tugs maneuver the Inter-Island Ferry Authority's M/V Stikine outside the Ketchikan Shipyard on March 8, 2022.

Alaska’s state development agency says it’s in talks with the operator of the Ketchikan Shipyard to resolve a dispute that threatens the future of the key local employer.

The announcement comes about two weeks after the Alaska Industrial Development and Export Authority told shipyard operator Vigor it would not renew its contract to run the multimillion-dollar state facility. AIDEA said Vigor had not supported enough jobs, made enough money for the state or adequately contributed to repairs and maintenance. The agency said the operator’s time at the yard would end Nov. 30.

Now, though, tensions appear to be easing. A joint statement from AIDEA and Vigor dated March 13 commends the operator’s “stewardship” of the Ketchikan Shipyard.

“AIDEA and Vigor are united in their commitment to preserving this essential shipyard as a cornerstone of opportunity for the community and the state,” the statement said. “Both organizations are working together on potential opportunities to extend our working relationship by exploring new opportunities and partnerships to improve the shipyard’s ability to serve Alaska’s maritime needs.”

Neither side offered any details on what had changed in the meantime.

Previously, AIDEA said it was willing to discuss extending the end of the contract to March of next year. But there’s no mention of the March deadline in Thursday’s statement, indicating the pair may be negotiating a longer-term deal.

“Looking ahead, AIDEA and Vigor remain optimistic about the Ketchikan Shipyard’s future and its enduring role in the region,” Vigor and AIDEA said. “Further updates will be provided as negotiations advance, and we anticipate sharing additional developments in the near future.”

Vigor is a significant employer in Ketchikan, with roughly nearly 100 direct employees and dozens of additional contractors. It’s also the only major shipyard in Southeast Alaska, and it’s where many of the state’s Marine Highway System ferries, among other government vessels, go for maintenance and overhaul work.

Eric Stone is Alaska Public Media’s state government reporter. Reach him at estone@alaskapublic.org.