News from the Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

House Passes Bill to Promote In-State Repair of Marine Highway Vessels

Measure Gives Alaska Competitive Footing

For Immediate Release: May 4, 1998 Contact: Senator Robin Taylor at (907) 465-3873.

Juneau -- The State House Monday passed Senate Bill 192, sponsored by Senator Robin Taylor (R-Wrangell), providing that vessels owned by the state of Alaska will be maintained in Alaska owned and operated facilities.

Taylor said by establishing a true and accurate statement of the interport differential costs, this bill ensures that Alaska is on a level competitive playing field with out-of-state shipyards. An interport differential refers to costs associated with performing vessel maintenance at shipyards away from the vessel’s base port. This includes all costs for delivery of the vessel to the repair site and redelivery of the vessel to its base port once repairs are complete.

"Because state law lacks this provision, Alaska has lost jobs. A difference of $14,000 on a bid from a Portland, Oregon shipyard cost an Alaskan shipyard $3 million in service work on an Alaska Marine Highway vessel," said Taylor. "With the cost of transportation added into out-of-state bids, Alaska has a better chance of winning the bids and keeping the jobs in-state."

Senate Bill 192 provides the following significant economic benefits:

• Allows advanced scheduling of state vessel maintenance and repair projects resulting in savings to the state and full utilization of Alaska shipyards.
• Full utilization of Alaska shipyards draws new marine support contractors, vendors and support industries to Alaska
• Alaska Shipyards provide savings to the state when state vessels require emergency repairs. Emergency repair projects must be augmented with routine maintenance projects to assure long term operation of Alaska’s shipyards.
• Diversifies the state’s economy by supporting new manufacturing jobs in ship building and repair without new appropriations.
• Assures repatriation of Alaska jobs and dollars for maintenance of state owned assets.

According to Taylor, the measure will make it more likely that shipyards in Ketchikan and Seward will get the work.

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Broadcast Note: Radio Actuality available at (800) 478-6540.
= Robin Taylor, 23 K