The U.S. Army Corps of Engineers (USACE) says plans to build the country’s first deep draft port in the Arctic are too expensive.
USACE canceled its port expansion contract solicitation on Wednesday, October 16. 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.
USACE and City of Nome signed a resolution in September of 2023 that projected the total cost of the project at $662,569,000, with a 90-10% split.
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 corps did not immediately respond to a request for comment. Nome city officials declined to comment. They expect to meet with USACE in the near future to discuss where to go from here.
Underwater construction was supposed to start next summer. As of Thursday afternoon it’s unclear when the project will be reopened for future consideration.
