Anchorage receives $25M grant for Port of Alaska upgrades
This Jan. 8, 2008 file photo shows trucks loading cargo onto the Totem Ocean Trailer Express container ship North Star at the Port of Anchorage as seen from the newly developed area of the port in Anchorage, Alaska. (AP Photo/Al Grillo, File)

ANCHORAGE, Alaska (AP) – Anchorage has been awarded a $25 million federal grant to assist with upgrades to the Port of Alaska.

News organizations reported the funds will be put toward the $2 billion modernization project.

Officials say the U.S. Department of Transportation grant will fund construction of a new $214 million petroleum and cement terminal.

Mayor Ethan Berkowitz’s office says state and federal funds cover $134 million of the terminal’s cost, leaving an $80 million gap.

Municipal Manager Bill Falsey says the grant will help offset the deficit, while the remaining $55 million can be generated from port tariffs.

Falsey says the grant will allow the terminal project to start this summer with completion projected for 2021.

An estimated 85% of Alaska’s homes and businesses rely on cargo from the port.