According to the Department of Transportation, tickets booked after the first of the year for travel after May first will reflect the new rates. Tickets booked before the New Year will fall under the current rates.
The new fare structure is spurred by the recommendations of a recent rate analysis. The Marine Transportation Advisory Board saw the preliminary recommendations of that report during a recent meeting in Ketchikan. DOT spokesman Jeremy Woodrow says the department was planning to raise fares even before the recommendation
“The department knew its rates were out of balance and by increasing most fares by 4.5%, that was consistent with a lot of other recommendations that were coming through the department as a way to help increase revenues to offset operating costs,” he said. “So the department would likely move ahead with this rate increase regardless. So by announcing it now, we’re giving the general public the most amount of time possible to prepare for that increase.”
The analysis was conducted by Northern Economics. It recommends the Marine Highway System set rates so that they to cover between 39 to 65 percent of operating expenses. Revenues currently cover less than one-third of the operating budget, according to the department.
Woodrow says the complete rate study will be released to the legislature in February. More changes in operating costs may come after that.
“The rate increase that was just announced was one of the first preliminary recommendations from that report,” he said. “The study is not complete yet so we’ve not released the first report. We’ll do that when we release the full report to the legislature this upcoming session.”
The analysis suggests that rates more than 25 percent above average NOT change. Woodrow says that means about 30 fares within the system will remain unchanged, such as the route between Skagway and Haines, the highest per mile rate in Southeast.
For the Ketchikan area, fares that are more than 25 percent above average are those between Ketchikan and Annette Island, and Ketchikan and Petersburg.