U.S. Arctic Presence Falters as Nome Deepwater Port Solicitation Canceled

By Malte Humpert (gCaptain) –

Efforts to expand U.S. Arctic capabilities face another setback. The long-discussed expansion of the port of Nome to create the country’s first Arctic deep-water port faces undetermined delays following the U.S. Army Corps of Engineers’ cancellation of solicitation due to cost overruns. Construction was originally slated to begin in 2025.

According to an Army Corps of Engineers notice the solicitation was canceled last week due to costs exceeding the available funding and statutory limits in the procurement process.

The expansion of the port of Nome to become the U.S.’ sole Arctic deep-water port has been discussed for more than a decade. The $662m project secured federal and state funding earlier this year and led to the signing of a project partnership agreement between the city of Nome and the Army Corps of Engineers. The majority of the costs, around 90%, will be carried by the Army Corps, with the City of Nome covering the remaining 10%. 

The awarding of funding was seen as a major step to expanding U.S. presence in the region and countering growing Russian and Chinese activity in the Bering Sea. Earlier this month, four coast guard vessels passed in proximity of Nome as part of the first-ever joint Russian-Chinese Arctic patrol.

“For the United States, the closest maritime operational support base to the Arctic is Dutch Harbor, 750nm from Nome, Alaska – two days sailing. Presence is the most important factor to Arctic operational challenges, and a deep water port in Nome is the best solution available, explained Dr. Troy Bouffard, Director of the Center for Arctic Security and Resilience at the University of Alaska Fairbanks.

The lack of progress toward developing a deepwater port sends exactly the wrong strategic message the U.S.’ Arctic competitors, Bouffard expanded.

Across three construction phases the existing port was to be expanded and deepened from 22 ft to 40 ft. Phase 1 called for the existing west causeway to be extended by 3,400 feet. Phase 2 would see dredging to create a deep-water port and the final phase included the demolition and rebuilding of the existing east causeway.

With a relatively short construction season during the summer months, phase 1 was expected to take three to four years, with full projection completion by 2030. The expansion of the port will allow it to accommodate large cruise and cargo ships, and more importantly all major U.S. military vessels, except aircraft carriers. 

“The Port of Nome, the first deep-water port in the Arctic, will be positioned to play a critical role in ensuring the United States is a leader in the Arctic region in terms of national security, international trade and geopolitical influence,” Sen. Dan Sullivan (R-Alaska) stated following the awarding of federal funding. 

The Army Corps of Engineers began soliciting bids for phase 1 of the project in February 2024. No updates have been released if or how many proposals were received through the end of application period in late May. 

The fact that allocated funding was insufficient suggests that received proposal(s) significantly exceeded original cost estimates. 

“We recently had to cancel the phase 1 contract solicitation because pricing was well above our statutory limit,” Spokesperson for the Corps John Budnik said, according to the Nome Nugget. 

It is unclear how the project will move forward from here and how the original timeline will shift.

“USACE will continue to diligently work to bring this project to a successful contract award as quickly as possible,” Budnik reiterated.

The City of Nome could not be reached for comment over the weekend. 

The Nome port expansion becomes the latest example of Arctic projects facing rising costs and potentially significant delays. Cost estimates for a new series of much-needed Coast Guard icebreakers have grown nearly 2.5-fold since contract awarding in 2019. Construction of the lead vessels is expected to finally begin before the end of this year.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 109,119 members