Anchorage wins lawsuit over failed port construction

two people walk down a ramp in front of a sunset
People haul supplies onto a couple tug boats at the small boat launch near the Port of Alaska in Anchorage on Dec. 8, 2020. (Jeff Chen/Alaska Public Media)

Anchorage has won its lawsuit with a federal agency over failed construction at the state’s largest port.

U.S. Court of Federal Claims Judge Edward J. Damich on Thursday found the U.S. Maritime Administration breached its 2003 and 2011 agreements with the Municipality of Anchorage over construction at the Port of Anchorage, Alaska’s News Source reported. The facility has since been renamed the Port of Alaska.

“It’s an enormous vindication of what we’ve been saying all along, and that’s basically that the federal government had control of this project and they didn’t perform — they messed it up,” assistant municipal attorney Robert Owens said.

In 2014, Anchorage filed a lawsuit against the maritime administration for more than $300 million over failed construction in the effort to replace deteriorating facilities and upgrade port infrastructure to meet increasing demands.

A nine-day trial was held last spring, at which the municipality argued the government’s 2003 and 2011 agreements required the agency to provide technical expertise to oversee, design and construct the expansion project “free of defect,” the court documents show.

The government countered that Anchorage was the party responsible for managing and executing the project, and the maritime administration didn’t breach any duties.

The judge sided with Anchorage, saying the federal agency failed to enforce its contractual duties or administer funds properly.

The amount of damages have not been awarded yet. Both sides have 10 days to submit arguments for what they believe the monetary award should be.

Anchorage Mayor Dave Bronson called the verdict a victory for Alaska.

“The Port of Alaska is a vital piece of infrastructure for all Alaskans, with roughly 90% of our population touched by goods that come through the Port,” Bronson said in a statement.

The municipality is working with the state and federal government to secure nearly $1.6 billion to repair the port, Bronson said.

An email sent Friday to the U.S. Maritime Administration seeking comment was not immediately returned.

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