American Cruise Lines Pulls $4M Offer for Haines Dock Rebuild

American Cruise Lines has withdrawn its offer to contribute up to $4 million toward rebuilding Haines’ failed Letnikof Cove dock, resetting the borough’s most developed plan for replacing a facility that has been unusable since 2024.

The proposal had drawn sharp criticism from residents and commercial fishermen who said long-term priority access for cruise ships could disrupt fishing activity and limit public use of a key mooring area. American Cruise Lines did not provide a reason for pulling back from the Letnikof Cove talks, and the company declined interview requests about its Alaska expansion and infrastructure proposals.

Letnikof Cove dock replacement faces an $8 million-plus price tag

The Letnikof Dock has been out of commission since 2024 after a structural failure, leaving the community without a working berth at the site. Borough officials have said the replacement project is expected to cost more than $8 million.

Harbormaster Henry Pollan said a state grant program could potentially cover about half the cost, but Haines would still need to come up with more than $4 million in matching funds. After the cruise line withdrew its offer, Pollan said the borough would keep looking for ways to assemble the local share. “From where I’m sitting, I’m going to keep charging ahead, trying to creatively fund the match portion of this,” he said, adding, “But this does set us back a little bit.”

What American Cruise Lines offered, and what it would have changed

American Cruise Lines’ pitch was framed as a public-private partnership: financial support for reconstruction in exchange for long-term priority docking access. Pollan previously said the concept included two landings per week at Letnikof Cove, shifting the company’s operations from tendering passengers at the downtown dock to a walk-off facility.

• Funding: Up to $4 million toward rebuilding the Letnikof Cove dock.
• Access terms: At least two decades of priority, but not exclusive, docking, with an option to extend.
• Operational shift: A walk-off berth at Letnikof Cove rather than tendering passengers at the downtown dock.

Some fishermen argued the tradeoff was too steep. Brian O’Riley said, “We don’t want them cruising around through all our nets and all of our crab pots and shrimp pots.” He added: “Leave us alone, go someplace where we’re not.” O’Riley also described the proposed investment amount as “chump change” compared with the value of long-term priority access.

Fishing and navigation concerns drive local pushback

Opposition to the Letnikof Cove proposal focused on how cruise ship movements could affect fishing and navigation in the Chilkat Inlet and in the narrower Letnikof Cove area. Residents and dock users said even small-ship traffic could force gear changes or create conflicts in tight waterways.

Fisherman Karl Johnson raised concerns about operating alongside cruise traffic, saying, “It’s pretty tight there. Are you going to offer us a relief fund if they destroy our gear?” At a town hall, Johnson also said, “We used to be able to fish the canal on both sides, now we’ve got deep-draft standard traffic lanes that the cruise ships demand.” Another fisherman, Bill Thomas, added, “Put any small cruise ship in there and we have to pick up nets to let them go by.”

Public comments also opposed the Letnikof proposal, including a December letter from Aaron Davidman arguing that additional ship traffic would disrupt fishing and that the borough should pursue other funding approaches that preserve how the cove is used.

Attention shifts to Portage Cove and the Chilkoot Indian Association

After talks with the borough faltered, American Cruise Lines moved toward a potential arrangement to use the Chilkoot Indian Association’s dock at Portage Cove. Haines Borough Assembly member Gabe Thomas disclosed the discussions at an assembly meeting. Thomas also serves as director of the association’s transportation department and said he would not participate in negotiations.

Thomas said the cruise line approached the tribe about docking at Portage Cove and that a ship tied up there this summer to test whether the site could work operationally. Specific terms were not available, and tribal administrator Harriet Brouillette did not respond to requests for details.

The Portage Cove dock has been part of the tribe’s broader Discover Deish tourism initiative, which includes a restaurant, tour operation, and a gear shop. Borough manager Alekka Fullerton told residents she did not want the borough competing with the tribe, while also saying the cruise line had expressed interest in potentially using both Portage Cove and Letnikof Cove facilities, even as the $4 million Letnikof offer was no longer available.

Infrastructure funding debate intersects with cruise policy

Local officials have framed the dock discussion as part of a broader challenge: finding ways to fund major infrastructure when outside support is tighter. “We are not going to become more self-sufficient by taxing our population,” Fullerton said. “We have to figure out other ways of doing that, and it might be a public-private partnership.”

Cruise ship policy remains a live issue in Haines. A borough-commissioned survey found differences by age: 52% of younger participants said they believed they could economically benefit from more cruise ship landings, compared with 49% of middle-aged participants and 33% of older participants. Overall, a majority favored maintaining current ship volume or allowing a slight increase.

How Haines fits into American Cruise Lines’ Southeast Alaska dock strategy

The Haines discussions are playing out as American Cruise Lines expands its Alaska operations. Residents and fishermen who commented on the Letnikof proposal often emphasized that the vessels discussed in Haines are small cruise ships, with fewer than 200 passengers.

The company brought a second ship to Alaska last season and plans to add a third in 2028. Speaking to the Wrangell Borough Assembly, American Cruise Lines President Charlie Robertson described the company’s approach: “In order to do this, we’ve identified the need to invest in our port infrastructure.”

Wrangell has advanced further than Haines on a formal agreement. The Wrangell Borough Assembly unanimously approved a proposed 40-year tidelands lease under which American Cruise Lines would pay for and build a floating dock designed for its small ships. The borough would fund waterfront fill using revenue bonds paid back through ports and harbors funds rather than local tax dollars. The dock is expected to be available for public use when ships are not alongside and could be completed as soon as May 2027.

In Petersburg, negotiations have continued on a different track. Harbormaster Glorianne Wollen said discussions have included the possibility that American Cruise Lines could lease waterfront and build a private dock, and that the community focus has been on maintaining local control over details such as ship size and frequency of calls. “The community doesn’t want to give over control,” Wollen said, adding that the cruise line “has seemed pretty responsive to that.”

In Haines, the borough is now back to searching for other ways to assemble the matching funds needed to pursue the more-than-$8 million Letnikof replacement, while attention turns to what a separate agreement between American Cruise Lines and the Chilkoot Indian Association at Portage Cove could mean for local visitation and marine traffic patterns.

Frequently Asked Questions (FAQs)

Why did American Cruise Lines withdraw its Letnikof Cove dock proposal?

American Cruise Lines did not give a reason for withdrawing the offer. The retraction came after public pushback from residents and dock users who said cruise operations could crowd out local boating and fishing activity in Letnikof Cove.

What did “priority, but not exclusive, docking” mean in the Haines discussions?

In practice, it would have given the cruise line preferred access for scheduled calls while still allowing other users when space and schedules permitted, rather than reserving the dock only for the company.

What is the status of American Cruise Lines’ talks with the Chilkoot Indian Association at Portage Cove?

Borough officials said American Cruise Lines is in discussions with the Chilkoot Indian Association about using the tribe’s Portage Cove dock, and that a ship tied up there this summer to test whether it could work operationally. Specific terms were not publicly available at the time of reporting.

How large is the funding gap for rebuilding the Letnikof dock?

Haines officials have said the Letnikof replacement is expected to cost more than $8 million. Pollan said a state grant program might cover about half, but the borough would still need more than $4 million in matching funds.

What size ships does American Cruise Lines operate in Alaska?

In the Haines discussions, residents and fishermen emphasized that American Cruise Lines operates small cruise ships in Alaska, with fewer than 200 passengers per ship.