ANCHORAGE, Alaska (AP)—A recent study says steep tariff hikes could be on the way at the Port of Alaska if the Municipality of Anchorage has to pay for repairs to the dock.
The Alaska Journal of Commerce reports the analysis, prepared by economic consulting firm Parrish, Blessing and Associates Inc., considers how much tariffs on refined petroleum products and cement would have to be raised to cover the cost of borrowing $200 million to pay for replacing the port’s petroleum and cement terminal.
The port currently charges a tariff of 15.7 cents per barrel on petroleum products. The analysis says rates would need to be increased by 45 percent per year until 2023 – when they would reach $1.01 per barrel.
The tariff for cement is currently $1.61 per ton. It would increase 39 percent per year and hit $8.30 cents per ton in 2023.
Information from: (Anchorage) Alaska Journal of Commerce, https://www.alaskajournal.com