The Port of Nome could face negative net revenues by 2035 if it doesn’t begin increasing rates annually. That’s according to a new analysis from Cordova Consulting.
The consultants laid out three scenarios for the future: no vessel traffic growth, two percent annual growth, and five percent annual growth. Though the timelines differ for each scenario, each one eventually shows negative revenues when depreciation is considered.
The port has historically relied on state and federal grants for funding. But Port Director Joy Baker reports that those grants are getting more competitive, and the port won’t always be able to depend on them. Instead, the consulting group suggested a few alternate ways of increasing the port’s revenue. These include cruise ship passenger fees and small but regular increases in dockage and storage rates.
Cordova Consulting will now begin phase two of their analysis. Meanwhile, the Nome Port Commission intends to take phase one into consideration as they make budgetary decisions in the future.
