December 2016 | Business View Magazine

76 77 as this one, there are many bureaucratic hurdles which still have to be overcome. “A draft feasibility study conducted by the Army Corps evaluated 13 sites along the Arctic coast for the ability to develop an Arctic deep-draft port to support the nation, and three locations rose to the top,” Baker recounts. “Those three were further evaluated and Nome was deter- mined as having the greatest potential for initial Arctic port investment based on our existing infrastructure, both onshore and offshore. But, last year, the situation on the ground changed when Shell Oil pulled the plug on its Arctic-focused explorations and the Corps decided to re-evaluate its decision. “When Shell suspended its operations, they said we’re going to have to rethink this, because under the program we were using, it had to fit into a national economic framework, which does not capture the challenges in Northwest Alaska and the Arc- tic,” Baker says. But Port Director, Baker, also firmly believes that the Corps erred in its initial analysis by focusing too A draft feasibility study conducted by the Army Corps evaluated 13 sites along the Arctic coast for the ability to develop an Arctic deep-draft port to support the nation, and three locations rose to the top. Those three were fur- ther evaluated and Nome was deter- mined as having the greatest potential for initial Arctic port investment. JOY BAKER port director THe pOrt OF NOme heavily on Nome’s relationship with the oil and gas industry while neglecting to place enough emphasis on such factors as national security, resource protection, and the Port’s role in staging critically needed search and rescue, as well as oil spill response assets for the Bering Sea. In any case, the Corps found itself going back to Congress, to get additional language placed in the $10.6 billion Water Resources Redevelopment Act, the underlying legislation for any federally-sanctioned port improvements. That revised bill was passed in different forms in both the House and Senate this year, and Baker says that committee staffs are currently working to reconcile them. During its Lame Duck session, when Congress reconvenes to complete its business before the end of the year, it could potentially approve the compro- mise bill written by the conference committee, which would then go to the President for his signature. “Once that happens, it goes to the Corps and they are given their direction, within the new language, on moving forward with the completion of the study and design of an Arctic deep-draft port,” Baker continues. “The intention is for the city to become the non-federal, cost-share sponsor on the study and design completion. We will sign a formal agreement, like we did twelve years ago when we partnered with the Corps to re-locate our entrance channel and build the east breakwater, and proceed to work closely with them on the re-scoping of the study for a final Chief’s Report authorization to move into design. And then, once the design was completed, it would go into another phase to obtain funding for construction. “It could take maybe a year to re-scope the study and get the Chief’s Report signed, and then likely two years would be the shortest and most optimistic timeline for completing the design, followed by another year or two to obtain con- struction funding,” Baker adds. “The initial concept, based on results of the first study draft with Nome at the top of the pile, was $212 million, which could increase by the time we reach the construction phase, based on final design features. We’re a small community in a very remote area so the federal government is going to have to play a large role in the ex-