State Contractor Mobilizes Equipment, Prepares for Ferry Terminal Construction at Cascade Point
By Avery Ellfeldt, KHNS | November 2, 2026
The M/V Hubbard carries passengers between Juneau, Haines, and Skagway throughout much of the year. (Avery Ellfeldt/KHNS)
The state of Alaska recently gave a contractor the green light to begin preparations for the construction of a controversial ferry terminal between Haines and Juneau. This move has sparked concerns among critics that the Dunleavy administration is rushing the project before a new governor takes office.
The Alaska Department of Transportation (ADOT) has not yet approved actual construction on the Cascade Point Ferry Terminal project. However, a spokesperson for ADOT, Justin Shelby, stated in mid-October that they informed the Sitka-based contractor, K&E Alaska Inc., that they could “mobilize equipment and store materials at the project site.”
This followed the U.S. Army Corps of Engineers' issuance of a jurisdictional determination, outlining which parts of the project site require federal permitting. This determination clarified that the initial phase, encompassing upland work but not the terminal itself, would not impact federally regulated waters.
“It is conceivable that ADOT could do work at the site and not be required to get a permit from us if they don’t affect those jurisdictional waters,” said Randal Vigil of the Corps’ Alaska District.
The Southeast Alaska Conservation Council (SEACC) sent a cease and desist letter to the agency on Friday after observing excavators at the site. By Monday afternoon, more equipment was visible at the site, according to SEACC staff member Stacy Unzicker.
SEACC, along with other critics, is concerned that the state is proceeding with Stage 1 without first obtaining the necessary permits for the remainder of the project. Unzicker accused the Dunleavy administration in a written statement of unlawfully dividing the project to “set things in motion before the next governor can put a stop to it.”
State Rep. Louise Stutes, a Republican from Kodiak, echoed these concerns in a phone interview. Stutes, who sits on the House Transportation Committee, has previously criticized ADOT for pushing forward with the project despite opposition from elected officials and ferry users in Haines, Skagway, and Juneau.
Stutes expressed worry about the potential waste of millions of dollars on a highly unpopular project that might never be completed.
“The $28.5 million they’re working on now is just a drop in the bucket of what that project would ultimately cost,” Stutes stated.