The Matanuska-Susitna Borough has essentially completed the second phase of port development, an earth fill barge dock, and a fully integrated and operational deep-water marine port. This paper summarizes the major actions currently underway and how allocated funds, in particular federal funds, will be used to complete the next critical phases of Port MacKenzie's development. Additionally, the paper provides a brief description of private sector entities that have expressed interest in utilizing the port complex.

Parties expressing interest in utilizing the port have dramatically risen over the past year. As a result, client development activities are rapidly progressing on a number of fronts. The Borough continues to support Alaska Manufacturing Contractors’ (AMC) construction of modular homes for the Department of Housing and Urban Development (HUD). These homes are destined for rural Alaska communities. Since the summer of 2001, 68 homes have been shipped from Port MacKenzie to rural communities in Alaska. The unique aspect of the construction of these homes is that residents from the communities that the homes are destined are afforded the opportunity to help construct their homes. This provides training in the building trades at Port MacKenzie for rural residents thereby improving their chances of obtaining gainful employment. VECO has presented the Borough with a Letter of Interest to construct the firm's oil/gas field modular units at Port MacKenzie. The Port MacKenzie facility offers several highly significant means of improving VECO's competitive standing in modular construction thus providing additional employment opportunities for qualified Alaskans. The Borough is working closely with VECO to identify those capital improvements that are necessary to meet its needs. NPI, a wood chip company, has already executed a lease agreement with the Borough for the facility and constructed a new 1.25 mile access road, 18 acre pad, and 3,000’ conveyor system to the new deep-draft dock.