Port of Nome - PDF document

1 Port of Nome Strategic Development Plan
Port of Nome Strategic Development Plan January 2016 Port of NomeStrategic Development PlanPrepared for:City of NomePrepared by: Juneau A湣桯ra来 January 2016McDowell Group Anchorage Office1400 W. Benson Blvd., Suite 510Anchorage, Alaska 99503McDowell Group Juneau Office9360 Glacier Highway, Suite 201Juneau, Alaska 99801Website: www.mcdowellgroup.net Prepared with assistance from:Nome Port Commission:Jim WestTony CoxMegan AlvannaStimpfleCharlie LeanRolland TrowbridgeMichael SloanDoug JohnsonJoy Baker, Port Director Table of Contents Chapter One: IntroductionChapter Two: Nome Port and Harbor FacilitiesDescription of Port and Harbor................................................................UplandsA Strategic Regional PortPort ActivityChapter Three: Development LandscapeFisheriesMining Activity................................Visitor Industry................................National Security and Public Safety........................ResearchOil and Gas Support................................Deep Draft Arctic PortChapter Five: Port Development StrategiesCompetitive PositionCapital Projects................................Port Engagement and OutreachAppendix: Port Development GraphicsList of TablesTable 1. Port of Nome Development ProjectsTable 2. Aviation Activity at Nome Airport, 2014Table 3. Port of Nome Total Vessel Port Calls, 19902015Table 4. Nome Census Area Commercial Fishing Activity, 20052014Table 5. Norton Sound Seafood Products Harvest, 2015Table 6. Alaska Visitor Volume, by Transportation Market, 2014Table 7. Nome Cruise Ship Traffic, 20062015 (2016 proj.).........................Table 8. Western and Northern Alaska Cruise Traffic, 2015List of FiguresFigure 1. Port of Nome Revenue by Source, FY1990FY2015 Figure 2. Port of Nome Gravel Total Volume and Revenue, FY1990FY2015Figure 3. Port

2 of Nome Fuel Total Volume and Revenue,
of Nome Fuel Total Volume and Revenue, FY1990FY2015Figure 4. Port of Nome Freight Total Volume and Revenue, FY1990FY2015Figure 5. Port of Nome Total Vessel Port Calls, by Type, 19902015 Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Chapter One: Introduction The Port of Nome, located just south ofthe Arctic Circleis strategically positionedto serve national, state, regional, and local needs. Nome is the regional transshipment hub for many Western Alaskacommunities that rely on the port for movement of heating oil and gasoline, construction supplies, nonperishable food, gravel, nd other cargo. Recently selected by the Corps of Engineers (COE) as the Arctic Deep Draft PortDP)site,Nome is poised to play an increasingly important role in a changing Arctic. This document describes the Port of Nome and its activities, summarizes industrial activity in the region facilitated by the port, details the recent COE Deep Draft Port designation, and identifies ways the port can position itself for continued growth and stimulate further regional economic development.Nome is a town of 3,800residentssituated on the shore of the Bering Seanearthe southernend of Seward PeninsulaNome’s mostsignificant employmentsectorsincludestate and local government (27 percent of jobs)education and health services (26 percentand trade, transportation, and utilities (17 percent).By the regional standard in Western Alaska, Nome is a welldeveloped regional hub offeringdaily jet servicea port and network of roads; relatively reliabletelecommunications; and water, wastewaterand sewagservicesThe community offers a levelfour traumacenter,fire department, and expects to receive upgraded fiber optic connectivity by 2016.The cost of living in Nome is elevated relative to state and national levels. Groceries cost 60 percent m

3 orein Nome than in Anchorage. A gallon o
orein Nome than in Anchorage. A gallon of gas often exceeds $5.00 pergallon, and the averagehome costs $8,457 to heatper yearmore than triple the cost of the average Anchorage home.While the icefree season is gradually increasing,Nome’s portis typically closed six months of the year when seasonalice prevents vessel operations.Consequently, the icefree period between June andDecember is very busywith vessels bringing goods to be utilized in Nometransshipped to communities throughout thregion.Commercial fishing activity in the ort increases in the summer when harvesters target primarily salmonhalibut,and king crab. State of Alaska Department of Labor, 2014.http://www.adn.com/article/20150510/arcticspanningfiberopticprojectmovesaheadalaskahttps://www.ahfc.us/efficiency/researchinformationcenter/housingassessment/Personal Communication, Joy Baker, Port Director, City of Nome, December, 2015. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 䤀m灲潶emeæ¹´æ¡¡ve bee渠made⁴漠t桥⁐潲t 潦⁎潭e⁦潲early⁡⁣entury⸀⁃潮猀tructi潮映Næ½­e鈀猀rigi湡l 樀整ti敳⁢敧anin‱㤱㤠and 睥re⁣omple瑥⁢y‱㤲㌮A⁳ea眀all⁰ræ½´ecti湧⁎潭e⁷a猀⁣潮猀tructed⁩渠t桥⁥arly a湤⁴桥㌬〰〠f琮⁡rmor⁳瑯ne cau猀e眀ay⁷a猀⁢u楬t⁩n 眀漠猀桥et⁰ile⁤ocæ­³læ½£ated渠tæ¡¥ au猀敷a礠眀敲攠op敲ational⁢礠th攠敡rl礠捵牲ently灲潶idi湧灯rt de灴栠潦 22⁦敥tmeano睥ro眠睡瑥r䴀䱌圀吀桥⁡dditi潮映t桥⁥a猀t⁢reaæ­·ater⁩渠2006⁳ig湩晩cantly⁩湣rea猀ed⁰潲t⁣a灡bilitie猀⁢y decrea猀i湧⁴桥umber 潦⁤ay猀⁰潲t灥rati潮猀⁷ereimited due⁴漠眀eatæ¡¥r⸀⁃潭灬eti潮映t桥′10景潴䴀i摤le⁄oc欀⁩n′01㔀⁡摤ed mu

4 cæ  æ¹¥eded m潯rage 猀灡ce⸀⁅砀ç
cæ  æ¹¥eded m潯rage 猀灡ce⸀⁅砀灥cted⁣潮猀tructi潮映a⁄ee瀠Dra晴⁐潲t⁦acility渠Næ½­e鈀猀⁥砀i猀ti湧⁣au猀e眀ay 眀潵ld⁡dd 猀ig湩晩ca湴⁣argæ¼ ca灡city a湤⁡llæ½· larger⁶e猀猀el猀⁴漠m潯r⁡t⁴桥⁰潲t⸀ 䰀潣ated⁩渠clæ½³e⁰r潸imity⁴漠t桥⁂eri湧⁓traitⰀ⁲e猀ide湴猀映Næ½­e⁡湤earby⁣潭mu湩tie猀⁡reb猀ervi湧 incr敡猀敤⁶敳猀敬⁴raffic 摵e⁴oindu猀t物al⁡nd⁲e捲eational act楶楴y⸀ 䤀n′〰㤀Ⰰ′㠀〠癥猀猀el猀⁴ran猀i瑥d⁴he 䉥ring⁓瑲ait㬀 樀u猀t⁦ou爠yea牳ate爬⁴hi猀 figu牥⁩n捲ea猀ed to⁡⁲e捯牤 㐀㠀0 ve猀猀el猀⸀ 嘀e猀猀el tra晦ic 晲潭⁴桥⁒u猀猀ia渠猀ide映the 䉥ring⁓瑲ai琠ha猀⁩ncrea猀ed a猀⁷ell⸀⁉n′〱㐬‵㌠癥猀猀el猀⁵猀ed⁴he⁎or瑨ern⁓ea⁒ou瑥㬀⁡猀楺eabæ±¥incr敡猀攠over ㈰㄰⁷henu猀琠four⁶e猀猀el猀⁵猀ed⁴hi猀⁲ou瑥⸀Vessel Activity in Northwest Alaska, 2015Source: Marine Exchange. http://www.poa.usace.army.mil/Portals/34/docs/operations/RH/nome/2012NomeHarborPIProject.pdfMarine Exchange, 2015. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Chapter Two: Nome Port and Harbor Facilities The Port of Nome offers the most developed and capable maritime infrastructure in Western Alaska. This chapter describes the port’s infrastructure, role in the region, and activity. Description of Port and HarborSince the early 1900’s, the Port of Nome has served as aregional hub for commerce and community development. After a century of activity and investments, Nome’s port facilities serve a wide variety of customers, including subsistence and commercial fishermen, gold dredgers, regional shippers,tourism opera

5 tors, public research and enforcement ve
tors, public research and enforcement vesselsand vessels engaged inoperations north of the Arctic Circle. Nome’s outer arbor is composed of a 3,000foot causewaythree sheet pile docksand a breakwater to the east. Shipping companies use these docks for loading and unloading cargo, gravel, and refined petroleum products. The shallowernner arboris located at the mouth of the Snake iver andincludes the Small Boat Harborand Snake River development.This harbor supports smaller vessels including gold dredgingoperations, commercial fishing, and recreation travelers.In general, the outer harbor is used for incoming cargo and fueland outgoing gravel. Theinner harbor facilitates redistribution of these and other suppliesto outlyingcommunities. Port of Nome, 2015Source: City of Nome. Note: Unless otherwise specified, all photos in report are used with permission from the City of Nome or Garrett Evridge. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 A猀⁡⁰ub汩c 灯rtⰀ⁎潭e⁩猀灥渠景r all⁣潭mercial⁡湤潮comme牣ial⁵猀e牳⸀周e 䌀佅cæ½®duct猀⁡湮ual 摲ed杩ng潦⁴桥avigati潮⁣桡湮el猀⁡湤aæ¹¥uveri湧 ba猀i湳⸀⁔桥⁃ity映Næ½­e⁩猀⁲e猀灯湳ible⁦潲 dredgi湧f bert桩湧⁡rea猀 i渠晲潮t 潦 t桥⁳桥et⁰ile d潣歳⸀噥猀獥l acti癩瑹⁡t 瑨e 畴er a牢o爠typ楣al汹潣cur猀⁦潬læ½·ing brea歵瀠i渠䩵湥⁡湤⁣oæ¹£lude猀⁩渠Nov敭b敲⸀⁔桥⁩湮er⁨arb潲⁵猀ually⁦ree稀e猀ver⁩渠伀ctæ½¢er⁡湤⁴桥uter ha牢o爠i猀⁩捥din⁢礠䑥c敭b敲⸀ Næ½­e⁲e猀ide湴猀 u猀e⁴桥⁦r潺e渠灯rt⁡猀⁡⁴ra湳灯rtati潮⁣潲rid潲⁦潲omm畴in本 桵湴i湧Ⰰ⁡湤⁦i猀桩湧⸀Aa樀潲⁡dvaæ¹´age映t桥⁰潲ti猀⁡ na牲o眀 t

6 i摡l⁲an来Ⰰeæ¹¥rally漠mæ½²e⁴æ
i摡l⁲an来Ⰰe湥rally漠m潲e⁴桡渠1⸀㔀⁦eet⸀ 䡯眀everⰀ⁤畲in朠猀torm 敶敮t猀ti摡l⁳畲来猀 捡n猀ign楦楣ant汹 a晦ect 眀at敲敶敬猀⸀⁄uring⁨敡v礠猀outh敲l礠猀tor浳Ⰰ⁶敳猀敬猀⁡re⁰r敶敮t敤晲潭 m潯ri湧 at au猀e眀ay d潣歳 becau猀e 潦 眀ave acti潮⸀ 吀he 睡瑥r le癥l at 瑨e port fluc瑵a瑥猀楧n楦楣antly de灥湤i湧渠t桥 directi潮⁡湤⁤urati潮映眀i湤⸀⁁⁳u猀tai湥d⁳潵t桥rly⁷i湤⁣a渠i湣rea猀e⁷aterevel猀⁩渠t桥 port⁢礠猀i砠f敥t⁷hil攠aorth敲l礠眀ind⁣an⁲敤uc攠眀ater敶敬猀⁢礠th攠猀am攠amount⸀ 刀ec潧湩稀i湧⁴桡t⁴桥 灯rt i猀⁣ritical t漠regi潮al⁳u猀tai湡bility⁡湤⁥c潮潭ic⁤敶敬opm敮tⰀ⁴h敲攠ha猀⁢敥n⁡ l潮g猀ta湤i湧⁣潭mitme湴⁢y潣alⰀ⁳tateⰀ⁡湤⁦ederal⁰art湥r猀⁴漠ma步⁣潮ti湵ou猀⁩m灲潶eme湴猀⁴漠t桥⁰ort a湤⁲elated⁩湦ra猀tructure⸀⁍a樀潲⁩m灲潶eme湴猀⁡re潴ed⁩渠t桥⁴able⁢el潷⸀Table Port of Nome Development Projects Year Completed Project Year Completed Project Sheet ile etty (Harbor Entrance hannel)East Breakwater Town Seawall ConstructionSmall Boat Harbor South Dock (COE Improvements) Causeway (West Breakwater)Small Boat HarborEast Dock (COE Improvements) Industrial Small Boat HarborLow Level Dock Causeway PipelineInner Harbor Dredging (Deepen asin) Westold DockSmall Boat HarborEast Floating Dock City DockCauseway High ast ights Small Boat HarborFish DockInner Harbor High Ramp onstruction/redging Small Boat Harbor West Floating DockNew Snake River ridge foot Concrete Barge/Launch RampMiddle Dock Outer arbor redging (Basin xpansion) SourceCity of Nome Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Outer HarborThe out

7 er arbor handles the majority of cargo a
er arbor handles the majority of cargo and refined products moving through the port. Three docks offering 22.5 feet MLLW are located on a 3,000foot causewayThe foot City Dock is equipped with marine headers to handle bulk fuel deliveries. Itcan also be used to fuel vessels and load barges destined for regional communities. The City ock is currently theprimary locationfor unloadingmainline cargo barges.ompletedin 2015, the210Middle Dock is situated between the City Dock and the Westold Dockand will also be used for unloading mainline cargo.Construction concludein 2015, and after minor dredgingof the berthing areathe dock will be in service by spring of 2016. The Westold Dock is 190 feet; ithandles nearly all of the rock and gravelmovementfor theregion. It is also the primary location to loadand unload heavy equipment. A significant challenge is that gravel ramps must be built forrollon/rooff (equipment with frequent conflictsdue to differing heights of the bargeand the fixed height of the dock.Completion of the iddle ock hassolvethis problem by providing a rampsloped at 10 percentbuilt into the dock.The opening between the breakwater and the auseway is approximately 500 feetat 0 feet MLLW. It serves as the access to both auseway docks and the Snake River entrance into the Small Boat Harbor.Buoys outline the 12 feetMLLW navigation channel from the outer harbor entrance into the inner harbor.Vessels can shelter in the outer harbor to avoid weather. Inner HarborThe inner harbor is comprised of the Small Boat Harbor, various dock faces,and development along the Snake Riverincluding a 60foot wide concrete launchrampand an elevated RoRo high ramp.The Nome Small Boat Harbor has a depth of 10 feet MLLWand offers protected mooring for small vessels alongside sheet pile and floating docks. Smaller cargo vessels and

8 landingcraft load and unload cargo, equi
landingcraft load and unload cargo, equipmentand gravel at the inner harbor sheet pile docks and rampRefined petroleum products aredischarged and loaded at theinnerharbor’s east dock for export to surrounding villages. The launch rampand adjacent high rampprovidesbulk cargo carrierswith a suitable location closer to the auseway and ndustrial ad to transload freight to landing craftand equipment barges. Thelocation also has approximately two acres of uplands for container, gravel, vessel, and equipment storage. The high ramp was built in 2013 to addcapacity for efficient loading and unloading of landing craft. A fish processing plant owned by Norton Sound Economic Development Corporation(NSEDC)is locatedin the inner harborpproximately100 gold dredges,25 fishing vesselsand 25 other vessels (tugs, sailboats, and subsistencefishing boats, comprise the inner harbor fleet. This fleet operates locally and in Norton Sound. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 UplandsThe Port of Nome currently has proximately 43 acres ofuplands available for vessel haul out, storage, and other uses by commercial users.A wide array of vesselsincluding gold dredges, commercial fishing vessels, tenders, and landing craftsare pulled from the waterusing trailers or airbato overwinter on shore. As port activityincreasedand as more vessels have been hauledoutadditional uplandshave been sought. The ity is in the process of acquiring sevenacres of landpreviously owned by the Air Forceto expand uplands. Additional uplands will eventually be developedfrom an 18acre site located north of the tank farm. NomeMiddle Beachis zoned open space/recreation and commercialand portions may eventually be usedfor development of marine related services. The area next to the harbor itself is zoned commercialwhile thearea

9 to the west of the new inner harbor ent
to the west of the new inner harbor entrance and along the west bank of Snake River is zoned industrial. The area along the east side of the Snake River (also known as Belmont Point) is zoned general use.A Strategic Regional PortNome plays a vitalrole in Northwest Alaskaserving as a transportationhub for air, road, and marine activities.ome is a staging ground for operations north of the Bering Strait. In the spring, equipment and materials are brought to Nome in anticipation of the icefree season. In the fall, Nome serves as a demobilization center for companies operating in the Arctic. Dutch Harbor, located approximately 800 miles to the south, is the closest port offering deepwatmaritime facilities.Both Bethel and Dillingham offer relatively developed shallowwater facilities.Lynden Transport offers scheduled freight service to Nome, including the laskaProviderand the Nenana Provider, barges measuring 250 X 70 and 400 X 100 feet, respectively. Alaska Logistics provides monthly barge service from Seward and Seattle, typically from June to October. Western Towboat provides seasonal tug service in the region with four tugs, the largestof whichis 120 feet. Crowley specializes in distribution of refined petroleum products. In addition to operating a 4.6 million gallon tank farm in Nome, Crowley operates a fleet of barges used to transport refined products from offshore tankers to Nome and smaller communities. Crowley also provides spill response and support services to the oil and gas industry. Both Delta Western and Vitus Marine also provide shipping services for movement of refined products into Nome.Bonanza Fuel, a subsidiary of the Sitnasuak Native Corporation, also operates acommercial petroleum tank farm in Nome with storage capacity of 5.9 million gallons.Bonanza provides trucked delivery of fuel and

10 propaneproducts to Nome and the surroun
propaneproducts to Nome and the surrounding road system, aviation fuel wing delivery at the Nome airport, and is the primarysupplier of marine grade fuel to vessels at the Nome port & harbor. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 m斒猀 a癩a瑩on connec瑩癩瑹 i猀 animpor瑡n琠regional a猀猀e琠睩瑨con猀i摥ra扬e m潶emeæ¹´ 潦 pa猀獥nger猀 and freigh琮⁔睯⁰a癥d⁲un睡y猀
㘬〰〠and‶Ⰰㄷ㔠fee琬⁲e猀pec瑩癥ly⤀⁡琠瑨e⁎omeA楲port⁦ac楬itate⁲eg楯naæ° f汩ght猀Ⰰ daily⁳ervice⁦r潭⁁湣桯rageⰀ⁡湤cca猀iæ½®al⁣桡rter flig桴猀⁴漠刀u猀猀ia⸀ 䤀n′〱㐬 n敡rl礠60Ⰰ000⁰a猀猀敮g敲猀⁦l敷 iæ¹´æ¼ a湤 æ½µt o映tæ¡¥ Næ½­e⁁ir灯rton⁳捨eduled⁣a牲ie牳⸀⁆r敩ght⁶olum攠total敤 n敡rly‱㌀illi潮⁰潵湤猀⁡湤mæ½²e⁴桡渠22illi潮⁰潵湤猀映mail潶ed⁴桲潵gæ  t桥⁡ir灯rt⸀ 吀he‱Ⰰ㤵〠foo琠gra癥l⁳瑲ip⁡琠瑨e⁎ome⁃i瑹 䘀楥汤⁩猀⁵猀eda楮汹⁢y⁳ma汬erⰀ⁰r楶ate汹眀ned⁳楮gæ±¥e湧i湥⁰la湥猀⸀Table Aviation Activity at Nome Airport, 2014 Category Inbound Outbound Passengers57,98458,228 Freight(lbs.)9,146,5193,841,584 Mail (lbs.)299,446,710,602 Origin/destinations *Includesboth direct international and domestic flights. SourceBTS. Nome is connectedto nearby communities, camps, and industrial sites by more than 230 miles of roadhree main routes are open seasonally and terminate in Teller, Council, anat the Kougarok RiverThe State of Alaska has explored the construction of anew transportation corridor between Nome and interior Alaska. Theproposedroad or railway would provide access between numerous regional communities and mineral depositsto the State’s road, rail, and port system. The State estimates that res

11 idents inaffected communities would real
idents inaffected communities would realize annual savings of $19.1 million, or $3,900 per person. Improvedaccess to mineral deposits, such as Illinois Creek, a potential placer mine, and deposits in the Ambler mining district, would save mining operations$120 million annually in the transport of fuel, freight, and mine concentrates. In addition to these economic benefits and potential for new highpaying jobs, the corridorwould improve access to public services for residents in currently isolated communities.Approximately 60 communities ranging from Dutch Harbor to Barrow have receiveshipments from the Port of Nome in recent yearsGravel, sand, and rock comes from local gravel pits or the Cape Nome Quarrylocated 12 miles east of Nome.Additionally, vessels destined for the North Slope often utilize Nome for fueling or minor provisioning. For example, Shell’s recent exploration activity in the Chukchi Sea resulted in an increase of vessel calls in Nome. http://www.dot.alaska.gov/stwdplng/cip/stip/projects/Assets/Western_Access_COC.pdf Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Communities Connected to the Port of NomeSource: ty of NomePort ActivityMovement of fuel, freight, and gravel are the main sources of revenue and activity at the Port of Nome.Over the last ten years, the port has handled an annual average of 53,000 tons of gravel, rock, and sand; ,000 tons of freight; and 13.1million gallons ofrefined products. This port activity has generatedmore than $700,000 annually during this period. While gravel, rock, and sand volume tends to fluctuate due to construction project demand, shipments of refined productshavebeen relatively stablereight volume has grownsteadily over the last ten years, climbing to a record 56,500 tons in FY13. Po

12 rt of Nome Strategic Development PlanMcD
rt of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Figure Port of Nome Revenue by Source, FY1990FY20Source: City of Nome.Gravel, Sand,and RockShipments of materials (including gravel, sand, and rock) from Nome throughout the region and as far south as Dutch Harbor are an important, but volatileportion Port of NomeactivityVolume is driven by construction activity in the region, and is closely tied to the State of Alaska’s capital budget. The Cape Nome quarry, located 12miles from Nome, is an important source of armor rock which is used throughout the region for seawalls, breakwaters, and causeways.Containingapproximately one hundred years of supply, rock from the site is highgrade and durable, properties difficult to find in the region.Materials are mined near Nome, trucked to the causeway, loaded onto barges using a conveyer system, and transported to final marketDemand for these shipmentsdriven primarily by capital construction projectsincluding harbor and airport development.relationship between the State capital budget and gravel shipments was evident after materialsvolume fell drastically following nearly 170,000 tons shipped in FY10. While volumeis likely to be odest in the near futuredue to continued small capital budgetsit is expected materialsfrom Nome will continue be utilized for construction projects in the region. In the event State capital budgets increase, volume will likely increase to previous levels. Figure Port of Nome Gravel Total olume and Revenue, FY1990FY201Note: Figures include both inbound and outbound shipments.Source:City of Nome Personal Communication, Joy Baker, Port Director, City of Nome, December, 2015. $200,000 $400,000 $600,000 $800,000 $1,000,000 Gravel Freight Fuel $50,000 $100,000 $150,000 $200,000 $250,000 50

13 ,000 100,000 150,000 200,000FY90FY91FY92
,000 100,000 150,000 200,000FY90FY91FY92FY93FY94FY95FY96FY97FY98FY99FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15Gravel Revenue Volume (tons of gravel) Gravel Volume Gravel Revenue Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Refined ProductsRefined petroleum productsare transportedfrom the ort to tank farms througha cityowned pipeline. Crowley, Bonanza Fuel, and the Nome Joint Utility System maintain the three tank farms connected to the pipeline. While the majority of fuel stored in local tank farms is used in Nome, the pipeline can be used to load fuel barges andfuel vessels. Port officials indicate marine retail fuel sales are increasing as more vessels are transiting the area.Since 2000, approximately onethird of all refined products brought through the port are either redistributed to other communities or used to fuel vessels. Figure Port of Nome FuelTotalVolume and Revenue, FY1990FY201Note: Figures include both inbound and outbound shipments.Source: City of Nome.FreightFreight shipments havegrown steadily since the late 80s, peaking in FY2013 at slightly more than 56,tons. Customers pay the ort between $5.78and $11.55 per ton in tariffs. Freight volume has increased due to outbound shipments of contaminated soilsand inbound and outbound shipments of construction materials for projects around the region.Since 2000, approximately 40 percent of all inbound freight is redistributed to smaller communities.Freight is typically unloaded from barges using forkliftsor when possible, a configuration is used. Shippers provide their own stevedoring and unloading services. $100,000 $200,000 $300,000 $400,000 $500,000 5,000,000 10,000,000 15,000,000 20,000,000FY90FY91FY92FY93FY94FY95FY96FY97FY98FY99FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15Fuel Reven

14 ue Volume (gallons of fuel) Fuel Volume
ue Volume (gallons of fuel) Fuel Volume Fuel Revenue Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Figure Port of Nome Freight Total Volume and Revenue, FY1990FY201Note: Figures include both inbound and outbound shipments.Source: City of Nome.Vessel OperationsVessel traffic has increased substantially, from 34 vessels in 1990 toin 20The increase wasdriven by fuel and cargo,recreational, government, and dredgeactivity. This vessel activity provides the community of Nome with important economic activity when crew and visitors spemoney at restaurants, hotels, and stores.With the outer harbor dredged to 22.5 MLLW, many larger vessels anchor and use smaller skiffs or inflatables to come ashore. Additionally, as vessel traffic increases, congestion forces some vessels to anchor until space is available. Approximately 12 vessels anchored offshore in 2007, increasing to a record 123 vessels in 2015. Figure Port of Nome Total Vessel Port Calls, by Type,Source: City of Nome $100,000 $200,000 $300,000 $400,000 $500,000 10,000 20,000 30,000 40,000 50,000 60,000FY90FY91FY92FY93FY94FY95FY96FY97FY98FY99FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15Freight RevenueVolume (tons of cargo) Freight Volume Freight Revenue 0100200300400500600700 Bulk Cargo and Fuel Cruise Ships Local Vessel Activity Gravel and Equipment Barges Government Ships Miscellaneous Vessels Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 周e潦晳桯re⁧潬di湩湧⁦leetha猀⁩ncr敡猀敤 dra猀ticall礠in⁲散敮t⁹敡r猀r楳楮g 晲潭 f楶e⁩n ㈰〸⁴oore⁴han ㄰〠in′〱㔀吀桥 remai湤er 潦⁴桥潣al 晬eet⁩湣lude猀 a灰r潸imately 2㔀 c潭mercial⁦i猀桩湧 ve猀猀el猀⁡湤 2㔀 oth敲i猀c敬lan敯u猀⁶敳猀敬猀⸀Table Port of Nome Total Vessel

15 Port Calls, Year Total Calls Year
Port Calls, Year Total Calls Year Total Calls Year Total Calls 2015 635 2006 162 1997 129 2014 498 2005 155 1996 139 2013 496 2004 164 1995 130 2012 444 2003 170 1994 128 2011 271 2002 237 1993 110 2010 296 2001 146 1992 111 2009 301 2000 160 1991 49 2008 234 1999 158 1990 34 2007 184 1998 145 Note: These figures do not include vessels anchored offshore. Source: City of Nome. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Chapter Three: Development Landscape This chapter includes anoverview of regional development activities that have current and future implications for the Port of Nome.FisheriesNome is the regional hub for commercial fisheries in the Norton Sound region. The fishing fleet of approximately localvessels harvest crab, salmon, and halibutIn the last decade, the number of fishermen harvesting seafood has nearly doubled from 99 in 2005 to 184 in 2014. Over the same time periodseafood harvest volume has fluctuated, ile overall earnings and valuehave increasedThe increase in earnings isdue mainly to increasedking crab and salmon harvests. Table Nome Census Area Commercial Fishing Activity, 2005 Year Number of Fishermen Who Fished Total Pounds Landed Estimated Gross Earnings 3,675,2421,950,620 2,503,1261,848,108 1,693,1532,143,879 1,980,2833,298,712 1,673,2682,781,989 3,102,4483,324,156 3,284,7694,165,684 1,842,5634,046,342 2,792,7564,196,135 2,642,2354,409,997 SourceCFEC.NortonSoundSeafood ProductsNorton Sound Seafood Products (NSSP)is the mainprocessor in Norton Sound. The operation is located at the port. In 2015, NSSP processed more than three million pounds of king crab, salmon, and halibut in Nome, Unalakleet, and Savoonga with buying stations in Shaktoolik, Golovin, Moses Pt. (Elim)and Koyuk. More than $4.5 millionwas paidto resident crab

16 , halibutand salmon fishermenin the 2015
, halibutand salmon fishermenin the 2015 commercial fishing season and another $2.1 million in wages were paid NSSP employees. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Table Norton Sound Seafood Products Harvest, 2015 Fishery Number of Harvesters Total Harvest (pounds) Amount Paid to Harvesters Crab428,656$2,353,826 Salmon2,496,834$1,927,552 Halibut52,994$230,446 SourceNorton Sound Seafood ProductsMost of NSSP’s salmon processing occurs in Unalakleetwhile crab, halibut, and small amounts of salmon are processed in NSSP’s Nome facility. In Savoonga, small amounts of halibut are processed. Six vesels support commercial fishing operations including tendering of seafood from harvest grounds to processing plants. A seventh vessel, a new 49foot shallow draft tenderis being built in Homer which is expected to be operationalsummer of 2016. Mining ActivityMining has played a vital role in Nome’s development and will continue to do so in years to come. Since 1880, the Nome mining district has produced the state’s third largest quantity of gold, behind Fairbanks (Fort Knox Mine) and Juneau(Kensington and Greens Creek mineIn addition to a long history of placer mining in the region, there are anumber of mining prospects in the region that could stimulate shipment of equipment, supplies, and construction materials through the port if they progress to advanced exploration or development.In recent years, the discovery of highgrade graphite deposit has attracted attention from developers and investorsSeveral other deposits, most of them gold deposits, have attracted exploration programs during the past five years by established worldclass mineral exploration and development companies. Described elow are some key prospectsthat could impact port operations during mineral

17 exploration, development, and operation
exploration, development, and operation.Offshore dredgingaround Nome is conducted by a wide variety of mainly floating dredges, includingsmall pontoon vessels to large barges.Highlighted by the Discovery Channel’s Bering Sea Gold television show, record gold pricesand availability of offshore leasesresulted in a significant increase in active gold dredgesfrom just three in 2004 to a record 128 in 2012.Today, roughly 100 dredges mine in two recreation areas along the cost or in dedicated leases. While most mining activity occurs in the icefree summer months, some mining occurs from the ice duringthe winter. Alaska’s Mineral Industry 2014, Special Report 70. Alaska Department of Natural Resources Divisionof Geological & Geophysical Surveys. City of Nome. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 䜀ra灨ite⁃ree欠灲潳灥ct⁩猀 curreæ¹´ly⁴桥ati潮鈀猀arge猀t⁡湤⁨ig桥猀t⁧radearge⁦la步⁧ra灨ite⁤e灯猀it⸀ 䜀ra灨ite 伀湥 刀e猀潵rce猀 i猀 e砀灬潲i湧 tæ¡¥ de灯猀it a湤 眀潲歩湧 tæ¼ advaæ¹£e tæ¡¥ 灲潪ect beyæ½®d e砀灬潲atiæ½® to devel潰⁡渠潰erati湧i湥⸀ 偲潤ucti潮⁩猀⁡湴icipated⁴漠begi渠i渠201㜀⸀刀潣欠䌀ree欠䴀iæ¹¥ i猀⁡n æ½°en灩t⁧潬di湥潣ated‶ mile猀潲t栠潦⁎潭e睩瑨 probable⁲e猀er癥猀f″㈵Ⰰ〰〠潵湣e猀映g潬d⸀⁎潶a䜀潬d 刀e猀潵rce猀⁉湣⸀灥rated⁴桥iæ¹¥ brie晬y⁦潲⁴眀漠mæ½®t桳⁩渠200㠀Ⰰ⁢ut⁴桥渠桡lted æ½°erati潮⁡湤⁥veæ¹´ually dive猀ted⁴桥m猀elve猀⁦r潭⁴桥⁰r潪ect⸀⁉渠20ㄲⰀ⁂ering⁓瑲ai瑳⁎a瑩癥 䌀潲灯ratiæ½® 䉓N䌀⤀ purcha猀ed 瑨e mine and land⸀ 䠀o睥癥rⰀ in ㈰ㄵⰀ 䉓N䌀 en瑥red in瑯 an agreemen琠瑯 çŒ

18 €ell tæ¡¥ miæ¹¥ e煵i灭eæ¹´an搠complet
€ell tæ¡¥ miæ¹¥ e煵i灭eæ¹´an搠complete搠reclamationf⁴he⁤i猀t畲扥搠杲o畮dSeward Peninsula Mining Activity, 2015The region surrounding theKugruk Prospecthas produced more than 500,000 ounces of placer gold. NANA Regional Corporationis currently exploring the prospect and has identified underground zones of significant gold mineralization.TheAnugi Prospect was recently the site of exploration in 2010 and 2012 by NANA. Primary mineralization of the region includes zinc, lead, and silver.The Bluff Prospect and Council Prospect first saw mining activity in the early 1900s during the Nome gold rush. Most recently, in 2010 and 2011, Millrock Resources Inc. explored the Bluff Prospect for gold through drilling and geophysical exploration programs. Between 2010 and 2012, Millrock Resources Inc. and Kinross Gold Alaska Deep Draft Arctic Port System Feasibility Study: A Subset of the Alaska Regional Ports StudyEconomics Appendix B; U.S. Army Corps of Engineers; January 2015.http://www.adn.com/article/20151117/golddreamsscrappeddefunctminenearnome Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 䌀潲灯rati潮⁣o湤ucted⁧e潣桥mical⁡湤⁤rilli湧⁥砀plæ½²atio渠灲潧ram猀 潮⁴桥⁃潵湣il 偲潳灥ct⸀ 吀h攠䬀敬l礠䌀ree欠偲潳灥ct 桯猀t猀 g潬d miæ¹¥rali稀atiæ½® a湤 眀a猀 e砀灬潲ed t桲潵gæ  drilli湧 灲ogram猀 i渠2010 a湤 2011 by 䜀ra灨ite⁏湥⁒e猀ource猀 ⠀t桥渠湡med⁃edar⁍潵湴ai渠䔀砀灬潲ati潮⤀⸀⁗桩le⁥砀灬潲ati潮⁥f景rt猀⁣ea猀ed⁩渠2012㈰ㄳⰀ⁴桥猀e⁰r潳灥ct猀⁳till 潦晥r⁰潴ential⸀Visitor IndustryAlaska attracts nearly 2 million visitors annually, with the vast majority traveling during the fivemonth summer period. ata in the table below is

19 the most current information published
the most current information published by the State of Alaska on estimated visitor volume; the summer period is 2014 and the winter is October 2014 to April 2015.Cruise passengers represented nearly 60 percent of summer visitation. Preliminary estimates for summer 2015 reflect growth in cruise and air travel.Table Alaska Visitor Volume,by Transportation Market, 2014 Summer Winter Annual Cruise967,500967,500 Air623,600274,900898,500 Highway/ferry68,50011,90080,400 Total1,659,600286,8001,946,400 Source: Alaska Visitor Statistics Program VI(AVSP).Notes: Summer refers to MaySeptember; winter refers to OctoberApril. Air visitors entered and exited Alaska by air; cruise passengers spent at least one night onboard a cruise ship; highway/ferry visitors entered or exited Alaska by highway or ferry. Visitor TrafficThe last time outstate visitation to Nome was measured was in summer 2011, when visitor volume was estimated at 4,000.Visitors who travelto the Far North regionincluding Nome, Kotzebue, and Barrowspentan average of $1,820 per person while in Alaska, compared to an average of $941 per person for visitorstraveling to other regions in Alaska. Of this amountan estimated $251 per person wasspent in the Far North region.Cruiseships calling at Nome have historically been small ships with capacity of less than 250 passengers. The 2015 schedule saw fivecalls including theL’AustralSolealandLe Boreal(Ponant Cruises),BremenHapag Lloyd Cruisesand Silver Discoverer f Silversea Cruises). The 2016 cruise season is projecting growth for visitation in Nome with four port calls, including one by the 1,080 passenger Crystal Serenity. In addition to the passengers reflected in the table below, crew accounts for another 0 percent to 0 percent of visitor volume, depending on the cruise line and vessel.

20 Alaska Visitor
Alaska Visitor Statistics Program VI, prepared by McDowell Group for Alaska Department of Commerce, Community, and Economic Development. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Table Nome Cruise Ship Traffic, 20062015 (2016 proj.) Passengers Port alls 2006 621 5 2007 500 5 2008 640 5 2009 949 8 2010 308 2 2011 528 4 2012 522 3 1,039 1,218 2015 640 5 2016 (proj.)1,504 Source: Cruise Line Agencies of Alaska.Regional Cruise Traffic OutlookCruise traffic in western and northern Alaska communities reflectvessels transitioning between Alaska and Asia markets as well as vessels sailing on Arctic itineraries. Although regional cruise traffic is relativelysmall when comparedto the overall Alaska market, response capabilities are limited in Western Alaska. A vessel emergency could have tremendous impact on the port and the community’s emergency response capabilities.Table Western and Northern Alaska Cruise Traffic, 2015 Port Passengers Port Calls Adak Attu Dutch Harbor/Unalaska4,112 Kodiak13,559 Nome Point Barrow St. Mathew St. Paul Source: Cruise Line Agencies of Alaska.The 2016 cruise season includes the following activity in Nome:The Crystal Serenity1,080 passengers and 655 crew) of Crystal Cruises will stop once in Nome as part of a 32day voyage from Seward through the Northwest Passage, ending in New York City. Other Alaska portcalls include Kodiak and Dutch Harbor. Arctic portcalls include villages in Northwest Territories, Nunavut, and Greenland. The Crystal Serenity is the first large cruise ship to sail the Northwest Passage, and will cost approximately $24,000 per passenger. The Silver Discoverer (120passengers and 30 crew) of Silversea Cruises will call once at Nome, as part of a 12day voyage that starts in Nome before sailing to the Russia

21 n Far East, returning to Alaska via Por
n Far East, returning to Alaska via Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 t桥⁓t⸀⁐aul⁉猀la湤猀Ⰰ⁄utc栠䠀arb潲Ⰰ⁡湤⁳everal⁁la猀歡⁐e湩湳ula⁶illage猀⁢e景re⁣潭灬eti湧⁴桥⁣rui猀e in⁓e眀ard⸀⁔h攠12day⁶oyage⁣o猀瑳⁡round․㄰Ⰰ〰〠per⁰er猀on⸀The Soleal264 passengers and 139 crew) of Ponant Cruises will begin a 12day voyage in Nome, ending in Seward. Other ports on the itinerary include Kodiak, Dutch Harbor, St. Paul, and Anadyr (Russia), among other villages. Passenger fares begin at approximately $6,400 per person.The Hanseatic175 passengers and 125 crew) of HapagLoyd Cruises will sail on a 30day voyage from Nome to Norway, via Russia. Passenger fares start around $27,000 per person.Additional cruise activity in theArctic in 2016 includes the voyageslisted below. While most of the Arctic cruise activity is in Norway, Iceland, andGreenland, it is importantto recognize the growing interest in Arctic cruise experienceLindblad Expeditions (the cruise line associated with National Geographic) will offer seven Arctic cruise itineraries in 2016. Destinations include Norway, Greenland, Iceland, Baffin Island, and Ellesmere Islands.Royal Caribbean will offer an 11night Arctic Circle cruise that includes Norway and Denmark along with scenic destinations above the Arctic Circle. Ponant Cruises will offer ten Arctic itineraries (in addition to their one Alaska itinerary) that stop in Norway, Iceland, Greenland, and Svalbard Islands. Hurtigruten, a Norwaybased shipping and cruise line, will offer seven Arctic itineraries, including ports in Norway, Greenland, and Iceland.HapagLoyd will offer six Arctic itineraries (in addition to their one Alaska itinerary) that stop in Norway, Greenland, Iceland, and the Canadian Arctic.Quark

22 Expeditions will offer over a dozen Arct
Expeditions will offer over a dozen Arctic itineraries that explore the Russian and Canadian Arctic, Greenland, Iceland, Svalbard Islands, and Norway.NationalSecurity and Public SafetyU.S. Coast GuardCoast Guard operations in Nome date back to the community’s early beginnings during the Gold ush at the start of the 20entury. In 1905, the Coast Guard opened a station in Nome and endowed it with the mission to protect sailors and vessels in regional waters. At that time, the Coast Guard worked just in waters proximal to Nome. The station remained active until 1949.Today, burgeoning economic activity in the rctic has driven the Coast Guard to expand its presence beyond Nome to encompass waters even outside of U.S. territorial waters. Nome continues to contribute to the Coast Guard’s mission in the rctic, although no largefacilities or yearround personnel have been installed in the community Photo Credit: U.S. Coast Guard, P etty Officer 1st Class Sara Francis. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 猀iæ¹£e⁴桥⁃潡猀t⁇uard⁣læ½³ed⁴桥⁎ome⁳tati潮⁩渠1㤀㐀㤀⸀⁒atæ¡¥rⰀ⁴桥⁃潡猀t⁇uard⁴ra湳灯rt猀⁳u灰lie猀⁡湤 灥r猀潮湥l潲t栠潮⁡⁳ea猀o湡lⰀ⁡猀nee摥搠扡猀i猀⸀Næ½­eⰀ潣ated渠t桥⁓e眀ard⁐e湩湳ula⁡læ½®g⁁la猀歡鈀猀⁷e猀ter渠c潡猀tⰀ⁡湤⁷ith mæ½²e⁤evelæ½°ed⁩湦ra猀tructure t桡渠潴桥r⁲egiæ½®al⁣潭mu湩tie猀Ⰰ⁩猀⁵湩煵ely c慰慢le t漠猀u灰潲t⁴桥⁃潡猀t⁇uard鈀猀 牣ti挠fleet⸀⁒e猀upply⁣a牧o a猀⁷ell⁡猀⁃潡猀t⁇uard⁰er猀潮湥l⁡rrive⁩渠Næ½­e⁢y⁴ra湳灯rt渠䌀ai牣牡ft⸀⁉n′〱㔬 猀iç  diff敲敮t 䌀oa猀琠䜀畡rd ve猀猀el猀⁣alled渠Næ½­ei湥⁴ime猀Ⰰ⁴潴ali湧‱㔀⁤ay猀⁩渠灯rt⸀⁗

23 桩le⁴桥 䴀apl攬⁁l數⁈al敹Ⰰ
桩le⁴桥 䴀apl攬⁁l數⁈al敹Ⰰ an搠Syca浯re c潵ld潯r i渠t桥 潵ter⁨arb潲Ⰰ⁴h攠Sh敲manⰀ⁈敡lyⰀ an搠䴀unroa湣桯red晦猀桯reⰀ⁰rimarily⁢ecau猀e映de灴h 牥猀t物捴ion猀⸀ A湯t桥r⁃潡猀t⁇uardi猀猀i潮⁩渠N潭e⁩猀⁴桥⁩湳灥cti潮⁡湤⁲egulati潮 潦潣al mari湥⁶e猀猀el猀⸀⁔桥 猀ervice bri湧猀潲t栠灥r猀潮湥l⁡nd⁥煵i灭e湴⁦r潭t桥r⁁la猀歡⁢a猀e猀⁦潲⁳ea猀潮al⁡nd⁴em灯rary⁡猀猀ignme湴⁴漠潶er猀ee潣al⁦i猀桩湧⁡湤⁤redge mi湩湧⁶e猀猀el猀⸀⁁dditi潮allyⰀ⁎潭e⁨潳t猀⁡⁃潡猀t 䜀uard⁴ra湳mitter⁴桡t⁢潯猀t猀 co浭unica瑩on⁢e瑷een⁴he⁃oa猀琠䜀uardⰀ v敳猀敬猀a湤⁨elic潰ter猀⁩渠t桥 牣ti挮䔀l猀敷h敲攠in⁴h攠ArcticⰀ⁴he⁃oa猀t⁇畡r搠灲潶ide猀⁳ea猀潮al⁥merge湣y⁳up灯rtⰀ ty灩cally⁣潮猀i猀ting桥lic潰ter猀 a湤 猀u灰潲t 灥r猀潮湥l⸀ 䰀潣ated i渠䬀潴稀ebueⰀ 䈀arr潷Ⰰ a湤 Dead桯r猀eⰀ t桥猀e e晦潲t猀 ar攠r敬ativ敬礠猀mallⰀ⁡湤⁲ely⁨eavily渠di猀ta湴⁢a猀e猀Ⰰ⁳uc栠a猀⁴桥 䬀潤ia欠Air⁓tatio渠眀桩c栠i猀潣ated m潲e⁴桡渠1Ⰰ000autical 浩le猀⁦ro洠No浥⸀吀桥 䌀潡猀t 䜀uard i猀 眀潲歩湧 潮 e猀tabli猀桩湧 猀桩灰i湧 la湥猀 i渠t桥 䈀eri湧 Strait 眀桩c栠眀ill c潮ce湴rate ve猀猀el act楶楴y⸀⁁dd楴楯na汬yⰀ⁴桥⁃潡猀t⁇uard⁩猀⁡ctively⁰ur猀ui湧⁡c煵i猀iti潮f⁡dditi潮al icebre慫ing⁣慰慣ity⁡猀⁴眀o of⁩t猀⁴hr敥⁩c敢r敡欀敲猀⁡r攠n敡rl礠㐀0⁹敡r猀l搮偲e猀ide湴⁏bama鈀猀⁶i猀i琠瑯⁁la猀欀a⁩n′〱㔠br潵g桴⁡tte湴i潮⁴漠th攠r敬ativ攠lac欀f⁕⸀S⸀⁩c敢r敡欀敲猀⸀⁉渠additi潮⁴漠潴

24 æ¡¥r⁁rctic猀灥ci晩c⁰olicy⁧潡lç
æ¡¥r⁁rctic猀灥ci晩c⁰olicy⁧潡l猀⁡湮潵湣ed⁤uri湧⁨i猀⁶i猀itⰀ t桥⁐re猀ide湴⁳u灰潲t猀⁡ccelerati湧⁴桥⁴imeli湥映accrui湧⁡渠addit楯na氠䍯a猀t⁇uard⁩cebrea欀erⰀ⁦rom′〲㈠瑯′〲〮National GuardNome hosts a detachment of an aviation unit of the Alaska Army National Guard. The unit operates Black Hawk helicopters in support of search and rescue missions throughout the state. Both fulltimeand parttime personnel make up Nome’s National Guard presence. National Guard facilities include an armory, a vehicle maintenance facility, and an aviation operating facility.ResearchWith the potential for commercial, transit, national security, search and rescue, cruise tourism, and other maritime activities, there are a number of important research initiatives that have a direct impact on Arctic planning, maritime infrastructure needs, and port development in Nome. The port was called on 140 times in 2015 from vessels conducting research in the Arctic and SubArctic.One incident in 2012 drew international attention when the Coast Guard cutter Healy, the U.S.’s only operating polar ice breaker, escorted a Russian tanker to deliver an emergency fuel delivery through more than 300 miles https://www.whitehouse.gov/thepressoffice/2015/09/01/factsheetpresidentobamaannouncesnewinvestmentsenhancesafetyand Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 潦⁩ce⁴漠reacæ  N潭攮 䠀敡lybr潫e⁡⁰atæ  t漠眀it桩渠a æ¡¡l映mile映t桥⁎潭e⁰潲t⁥湴raæ¹£e⁡猀⁩t⁷a猀⁵湡ble⁴o get⁣læ½³er⁴漠猀桯re⁤ue⁴o⁴桥⁳桡ll潷⁤ra晴⸀⁗ith⁴桩猀 iæ¹£ide湴Ⰰ⁴桥⁉湳titutef⁎ortæ¡¥r渠䔀湧iæ¹¥eri湧⁡湤⁴桥 Ala猀歡⁕湩ver猀ity⁔ra湳灯rtati潮⁃ent

25 er⁣reated⁴桥⁍arine⁎o牴h⁲e猀
er⁣reated⁴桥⁍arine⁎o牴h⁲e猀ea牣h⁰牯g牡m⁴ofo捵猀n⁁牣ti挠ma物time tra湳灯rtati潮Ⰰ⁩渠c潬labæ½²ative⁥晦潲t猀⁷it栠唀A䘀鈀猀⁇e潰桹猀ical⁉湳titute⁡湤⁉湴er湡tio湡l⁁rctic⁒e猀earch 䌀敮t敲⸀NavyU.S. Navy vessels have used the Port of Nome sparingly. In 2012, the USNS Sumner, an oceanographic survey vessel, anchored offshore, unable to dock due to draft limitations. If able, the Navy would use the port to refuel, transship cargo, and shelter from storms.National Oceanographic and Atmospheric Administration (NOAA)the Arctic, NOAA conducts extensive hydrographic surveys to chart the ocean floor. NOAA vessels involved in this mission include the R/V Fairweatherand R/V Rainier, which stopped a combined five times in Nome for logistical support during the 2015 season. Hydrographic surveying commands the scope of NOAA’s current Arctic activity, but the administration supports other oceanographic research that could play a role in future Arctic efforts.University of Alaska FairbanksThe recently constructed R/V Sikulia(operated by the University of Alaska Fairbanks and homeported in Seward) traveled to the Arctic Ocean in 2015, stopping in Nome three times for a total of 12 days. Oil and Gas SupportAccording to the U.S. Geological Survey, the area north of the Arctic Circle has an estimated 90 billion barrels of undiscovered, technically recoverable oil, 1,670 trillion cubic feet of technically recoverable natural gas, and 44 billion barrels of technically recoverable natural gas liquids in 25 geologically defined areas.These resources account for about 22 percent of the undiscovered, technically recoverable resources in the world. The Arctic accounts for about 13 percent of the undiscovered oil, 30 percent of the undiscovered natural gas, and

26 20 percent of the undiscovered natural g
20 percent of the undiscovered natural gas liquids in the world. About 84 percent of the estimated resources are expected to occur offshore.The Outer Continental Shelf(OCS) waters off of Alaska’s northern coastline encompass the Chukchi Sea and the Beaufort Sea. The Chukchi Sea is believed to hold about 15 billion barrels of recoverable oil and about 76 trillion cubic feet of recoverable natural gas.In February 2008, Shell successfully bid $2.1 billion to acquire 275 lease blocks in the Chukchi Sea, in addition to its$44 million bid in 2005, for 84 leases in the Beaufort Sea. In midAugust, Shell was granted permission to drill. However, as of the summer of 2015, only two wells had been drilled, one each in the Chukchi (Burger) and Beaufort Sivulliq)prospects. esults from the drilling program were deemed insufficient http://ine.uaf.edu/autc/2012/08/20/marinenorthresearchprogramarcticmaritimeinfrastructureneeds/ . http://www.usgs.gov/newsroom/article.asp?ID=1980#.VkONALnGwg . Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 tæ¼ cæ½®tiæ¹µeⰀ⁡湤⁓桥ll⁡nn潵湣ed⁴桥y⁷潵ld⁢e aba湤潮i湧佃Se砀灬潲atio渠∀景r⁴桥⁦潲e猀eeable⁦uture∀⁩n 瑨e⁏c瑯ber′〱㔀During 瑨e⁳ame 䘀ebruary ㈰〸ea猀e 猀aleⰀ⁓瑡瑯il⁡c焀uired ㄶ lea猀e猀Ⰰ ㄴf 睨ich 睥reoin琠bid猀 睩瑨 䔀N䤀 健tr潬eumⰀ⁩渠t桥⁃桵正桩⁓ea
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27 äŒ€S敡猀敳⸀渠tæ¡¥ fa汬of′ã
äŒ€S敡猀敳⸀渠tæ¡¥ fa汬of′〱㔬⁓瑡toil a湮潵湣ed⁩t⁷a猀⁥湤i湧 猀⁥砀灬潲ati潮⁥晦潲t猀⁩渠Ala猀欀a䴀an礠of⁴h敳攠compan楥猀鈀ea猀e猀⁡re⁶a汩d⁵nt楬′01㠀⸀佩l⁡nd⁧a猀⁤敶敬opm敮t楮⁴he⁲eg楯n⁷楬氠楮crea猀eactivity⁡t t桥⁐潲t映Næ½­e⸀⁐ort⁣all猀 眀o畬din捲ea猀e⁦牯m ve猀猀el猀⁴raveli湧⁴桲潵gæ  t桥⁲egi潮Ⰰ⁲e晩湥d⁰r潤uct⁴桲潵gæ¡°ut⁣潵ld⁩湣rea猀eⰀ⁡湤⁣潮猀tructi潮潦⁩湤u猀trial 猀ite猀⁩渠t桥⁲egi潮⁡湤⁴漠the潲tæ  mayea渠iæ¹£rea猀ed⁣argæ¼ t桲潵gæ¡°ut⸀Deep Draft Arctic PortBeginning in 2008,theCOE and State of Alaska Department of Transportation and Public Facilities began efforts to identify optimal site for development of a capable of handling increased maritime traffic and industrial activity in the Alaska Arctic. In 2012 the Alaska Deepraft Arctic PortSystem Studybeganto examine a study area which included more than 3,000 mileof coastlinestretching from Kuskokwim Bay to the U.S./CanadianborderIn addition to benefits connected to oil and gas development activity, the studyidentified other positive changes resulting from the establishment of a . These benefits include local and regional economic growth, increased public and environmental safety, and a strategic U.S. presence in the Arctic.A total of 13 different sites were examined and compared using the following considerations: Mission Proximity:How faris the site from offshore oil andgas leases, existing and potential mining operations, shipping lanes, and distribution hubs?Intermodal ConnectionsWhat kindand capacitydoes the site offer in terms ofintermodal connections (E.g., airport, road, rail, port)Uplands Suppo: How developed is the site? Does the site already offer capacity to

28 distribute goods to regional communities
distribute goods to regional communities? http://www.shell.us/aboutus/projectsandlocations/shellalaska/shellalaskanewsandmediareleases/2015mediareleases/shellupdatesalaskaexploration.htmlAlaska Deep Draft Arctic Port System Feasibility Study: A Subset of the Alaska Regional Ports StudyEconomics Appendix B; U.S. Army Corps of Engineers; January 2015. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Water DepthHow far offshore the site is 45 feet MLLW?Navigation AccessibilityTo what degree does icing, predominant winds, tidal fluctuations, waves, or currents limit the site’s ability for maritime operations?Following these comparisons and other analysis, in February of 2015 Nome was selected as the preferred site for a Nome’s Causeway would be extended by 2,150 feet, a 450t dock will be added, and dredging to 28 feet MLLWwillallow largevessels accessthe portAccording to the COE, this project willcost an estimated $211 million with the City of Nome paying approximately $113 of the total. Analysis conducted in 2015 by Rodell Consulting indicates the City of Nome does not have the financial means toindependentlyfinance its portion.The City is currently evaluating potential strategies for publicprivate partnerships, as well as legislatively decreasing Nome’s cost sharing proportion. n the fall of 2015, Shell’s decision to suspend exploration activity in the Arctic prompted the COE to “pause” e ADAPSS as much of the positive benefits resulting from development of an Arctic port are connected to oil and gas activityHowever, the City of Nome confident the benefitsof this project will nsure eventual completion.These benefits include national security and sovereigntylife safety, environmental protection,economic growthand cultural

29 sustainability.Consequently, the City i
sustainability.Consequently, the City is pursuing funding which will allowcompletion of designwork,and help facilitate eventual construction of the Detailed drawings of this expansion are located in the appendix. City of Nome Deep Draft Arctic Port Finance Strategy; Rodell Consulting; October 2015.http://www.nomealaska.org/egov/documents/1445642239_09478.pdfPersonal communication, Joy Baker, Port Director, City of Nome, December,2015. Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Chapter Five: Port DevelopmentStrategies Competitive Position The following summary of strengths and challenges are based on input from Portof Nomeofficials,industryand community leaders; and review of Nome Comprehensive lan 2020 and other ort and community development plansStrengthsNome serves as acriticalhub including:Industrial support services.Medical facilities and emergency response.Regional transportation linkages including road, air, and marine systems.International air connections, including Russia.Given the coastal location, the port is icefree sooner and longer than other ports in the region.Municipal support for the port and regional development.Regional economic assets include minerals, seafood, and sand/gravel/rockA growing commercial fishing sector. Arctic shipping activityand local fleetgrowth.National recognition of infrastructure gaps in the U.S. Arctic.COEselection of Nomeas thepreferredlocation for the Availablearea for additional uplands. Partnership opportunities with Alaska Native Claims Settlement Act corporations, Community Development Quotagroupport customers,and Nome Chamber to support infrastructure development, attract investment, acquire equipment, provide services, and marketing.ChallengesUnderdeveloped port potential.Harbor congestion.I

30 ce precludes operation during winter and
ce precludes operation during winter and spring months.Significant financial resources are needed to pursue construction of the DDP, and possibly alternative business operations model.Higher energy and operating costs affect regionaleconomic development potential.The State of Alaska’s nearterm fiscal situation will likely result in modest capital budgetspotentially reducingthroughut at the port Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Capital ProjectsThe following projects have been identifiedby City and Port officialsas prioritiesShortterm (up to one year)Security: The Port was recently awarded a $202,000 grant from the Department of Homeland Security to install security cameras in the port and harbor. Seawall Repair: The seawall protecting the City of Nome is located just east of the port facility, and runs along the coastline of the downtown area. Completed in 1951 by the COE, the seawall is in need of repair to replace missing armor stone and core rock damaged by 65 years of Bering Sea storms. The port anticipates repairs will be made just prior to breakup in the late spring of 2016.Cape Nome Jetty: Damaged in 2011 by a largescale winter storm, the cityowned jetty is in need of repair. This repair qualifies for funding from the Federal Emergency Management Service (FEMA), with work tentatively scheduled for 2016.Deep Draft Port Planning: In addition to collection of bathymetry and wave data, existing design and construction planning efforts for the should be maintained. Currentstatecapital requests total $3.25 millionMediumterm (two to five years)Travel Liand Haulout:As the local commercial fishing and dredge fleet has grown, a travel lift and haulout facility is of increasing importance. Anticipated to be located along the west wide of the Snake River in the inner harbor,

31 the infrastructure and shoreside facili
the infrastructure and shoreside facility would cost an estimated $4.5 million, with another $300K$450K for a 150ton travel lift. NSEDC has expressed interestpotentiallyin supporting this project at some level.Uplands: Two new sites are slated for use as uplands, and will increase the port’s capacity for maritime operations. A sevenacre site currently owned by the Air Force is in progress of being conveyed to the City of Nome, and should be operational by 2016/17. An 18acre site located north of the port pad fuel tank farms, was acquired from Nome Gold in 2012. This area will require a significant amount of fill (possibly 500,000 yards) to level and prepare for port activity. DredgingIn addition to the annual maintenance dredging of the navigation channel and outer harbor sin by the Corps of Engineers, the Port performs periodic dredging of the outer and inner harbor berthing areas along the docks. In an effort to reduce damages to the inner harbor fleet during routine late summer and fall low water events, the Port is seeking Congressional authorization to have the Corps of Engineers dredge the federal area to 12’ MLLW. Dredging the berthing area adjacent to the newlyconstructed Middle Dock to 22.5 MLLW is expected to be done in the late spring of 2016. A portion of theWest Snake River area close to the proposed travel lift and Snake River Floats has been dredged to 4’ MLLW, but should be dredged deeper in anticipation of eventual development.Port Road ProjectListed in the Statewide Transportation Improvement Plan, a nearly onemile section of road that bisects the port will be widened and resurfaced. Drainage will be improved, and various safety and pedestrianspecific upgrades will be completed. The work is stimated to cost$6.8 million with the City of Nome responsible for $268,000 Port

32 of Nome Strategic Development PlanMcDowe
of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Garco Building: Built by Kiewit in 1985 and transferred to cityownership in 1988, the Garco Building is one of the few covered areas available for port activity. The building is in need of maintenance and upgrades, and is currently under evaluation for improvements.Stevedoring: Consider establishing a training program so the port can provide longshore labor to port users.Longterm (more than five years)Snake River Floats:Located just north of the area identified for the travel lift and haulout facility, floating docks are needed to support small vessel operations, both recreational and commercial, to alleviate congestion in the Small Boat Harbor floating docks system. umpout Station: A pumpout stations for vessel wastewater and sewage is needed.Smallvessel Fuel Station: A stationlocated in the inner harborwhere vessels can purchase gasoline, diesel, and lubricants is needed. This would reduce the risk of spills from vessel operators transporting fuel on their own. Small Boat Launch FacilityLocated on the Snake River, this facility willbe usedto launch/stage small dredges and recreation and subsistence boats. The likelihood of accidentswilldecrease assmaller vessels would be concentrated in the river, away from larger vessels in the inner harbor. Small Watercraft Moorage:Vessels small enough to travel under the Snake River Bridge will be able to use this facility to moor. Users are expected to be primarily small subsistence and recreation boats. Maritime Industrial Services: Designate the area on the West side of Snake River in the inner harbor as a Harbor Industrial Development Zone for vessel services such as diving, welding, machine shop, ship’s chandlery, vessel agentand other marine service offices.Breasting Dolphins:Located in the outer

33 harbor and southof theextended causeway,
harbor and southof theextended causeway, breasting dolphins will function primarily as protected moorage, assisting vessels waiting for dock facilities orneeding to provision/exchange crew. Outer Harbor Dock Expansion:An additional dock, constructed north of the West Gold dock, willincrease moorage capacity and reduce port congestion. Dredging willneed to be conducted in the berthing and approach areas. Storage and Bonded Warehouse: Monitor warehouse availability for portrelated activity. Port Engagement and Outreachttracting commercial activity to Nome and the ort is not a task to be undertaken by the ort alone. In all industry sectors, it is important to build relationships and provide information about the Port of Nome and community assets early in the planning process.The following strategies are recommended: Mitigate the potential loss of momentum and institutional knowledge on the DDP projectby maintaining communication and visibility with officials at the COE,Arctic Port Studies Groupcongressional delegation, Coast Guard, and other key federal agencies.Coordinate with Nome legislators; the Alaska Departmentof Transportation & Public Facilities, Commerce, and Military and Veterans Affairs; and the Office of the Governor on infrastructure needs, Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 ca灩tal⁢udget⁲e煵e猀t猀Ⰰ⁡湤⁣桡湧e猀⁩渠偯rt⁡湤⁣潭mu湩ty⁣a灡bilitie猀⸀S灥cial⁥m灨a猀i猀 猀桯uld be 灬aced渠猀ecuri湧⁦undi湧⁦潲 瑨ed敶敬opm敮tSecure agreements with users of the Northern Sea Route and Northwest Passage to use Nome as a way station and administrative/emergency response center.Showcase Nome and Western Alaska infrastructure and services to groups leading on Arctic policy development such as the Arctic Council, Alaska Arct

34 ic Policy Commission, and International
ic Policy Commission, and International Maritime Organization. Monitor Coast Guard efforts to develop shipping lanes in the Bering Strait. Market port and community facilities to vessels engaged in resource development, research, tourism, and recreation. Maintain regular communications with vessel and industry service providers including Marine Exchange, marine pilots, Cruise Line Agencies of Alaska, and Cruise Lines International AssociationCoordinate with City, Chamber, and business community representatives to ensure visibility at key forums that can affect Port activity. Examples include the Resource Development Council annualconference, Alaska Travel Industry Associationconvention, Mineral Exploration Roundup in Vancouver, and selected Arctic development forums.Continueto work withthe Alaska Department of Environmental Conservation andCoast Guard proper use of emergency tow package. Pursue establishment of Nome as a test site for evolving response technology, such as sea anchorsExplore potential for natural gas deliveries to Nome and outlying communities. Coordinate with NSEDC on opportunities for facility and vessel expansion, storage, equipment needs, and other services.Develop planfor land accreting at the Sand Spit that will rise above the flood plain and be available for commercial development.Ensure that Port priories are reflected in community documents including comprehensive plans, capital budget requests, emergency and disaster response strategies, and economic development plans. http://glosten.com/projectspotlightemergencyshiparrestseaanchor/ Port of Nome Strategic Development PlanMcDowell Group, Inc Pa来 Appendix: Port Development Graphics raphicsdetailingthe Port of Nome’s current and future infrastructure are found on the following four pa