Work began in March 2026 on an $807 million project to replace the first of four cargo terminals at Don Young Port of Alaska in Anchorage, adn.com reported.

The project is part of the $2.75 billion Port of Alaska Modernization Program scheduled over the next decade.

Port Director Terry Umatum told adn.com that the port, which was build in the early 1960s, has been corroding because the Cook Inlet tides push 35 ft. of ice-filled water in and out.

"It is a really difficult place to have iron and steel sitting in salt water for 67 years and not expected to start to collapse and fall," Umatum told adn.com. "That's kind of where we're at right now."

Umatum said the dock could potentially collapse if a large earthquake hits Anchorage because the pilings are rotting away. Port signage that most of the 1,400 wharf piles at the dock have lost up to 75 percent of their original thickness.

New pilings that are 240 ft. long and 72 in. wide are set to arrive in Anchorage by mid-May, with crews installing the pilings by June, adn.com reported.

The Anchorage Assembly unanimously passed an ordinance a year ago that enabled the municipality to sell up to $1.1 billion in revenue bonds to pay for the modernization project's construction work.

The new terminal will feature much larger cranes that are 100 ft. wide, compared to the current width of 38 ft., alaskasnews-source.com reported.

Former Port Director Steve Ribuffo said there will several challenges related to the project, including the short construction season, rapidly changing tides, possible rising tides due to global climate change and environmental considerations, such as the endangered Cook Inlet beluga whale.

Alaskapublic.org reported that about 75 percent of the state's inbound cargo arrives at the Don Young Port of Alaska, driving more than $14 billion in annual economic activity.