End of an era as Vigor exits Ketchikan Shipyard, and JAG and AIDEA take over

The long-running transition at the Ketchikan Shipyard is now entering its final phase, as Vigor Industrial’s operating contract ends Nov. 30 and JAG Marine Group moves fully into place as the new operator. The change comes after months of uncertainty for workers, following AIDEA’s February 2025 decision not to renew Vigor’s agreement due to years of underutilization, declining revenue, reduced employment, and lagging maintenance investment at the state-owned facility.

AIDEA, which owns the shipyard, briefly explored a possible extension of the partnership in March, but after reviewing Vigor’s proposals, rejected them in April and began looking for a new operator. By July, Vigor started laying off workers, eventually reducing a workforce of nearly 100 down to about 18 as operations wound down.

In September, AIDEA finalized an agreement with JAG Marine Group—under its JAG Ketchikan division—to take over management, launching full operations on Sept. 19. The shipyard continues servicing vessels such as Alaska Marine Highway System ferries, now under new leadership.

On Nov. 25, AIDEA released a detailed update on the transition after state leaders, local officials, Tribal representatives, and maritime industry partners met in Ketchikan to discuss the shipyard’s future. Executive Director Randy Ruaro, JAG Marine President Doug Huff, Commerce Commissioner Julie Sande, Transportation Commissioner Ryan Anderson, Senator Bert Stedman, and other stakeholders outlined goals for expanding shipyard utilization, creating year-round jobs, increasing capacity, and developing housing and workforce pipelines to support long-term growth. Participants described the changeover as the beginning of a “new start” for one of Southeast Alaska’s most important industrial employers.

AIDEA emphasized that JAG Marine brings decades of experience operating shipyards across the country, and that the company’s existing bench of Alaskan tradesmen and project managers is well-suited to the demands of heavy maritime work in Southeast’s rugged environment. State leaders pointed to the shipyard’s strategic value for Alaska’s fisheries, tourism, and energy sectors, as well as for national security, since vessels serving the Pacific and Arctic regularly require American-based maintenance.

The early workload under JAG is already taking shape. Maintenance work has begun on NOAA’s Rainier, a hydrographic survey ship, with more projects booked for 2026 and 2027.

JAG’s leadership said its focus is on executing upcoming jobs while partnering with AIDEA and local stakeholders to expand the shipyard’s capabilities. Officials project potential revenue growth of 200–300% in the next two years and estimate the transition could support the addition of 100 or more full-time jobs.

Community leaders framed the change as a needed reset after years of stagnation. They praised AIDEA’s oversight and credited Ruaro’s long experience with Ketchikan waterfront development, including past NOAA and AMHS facilities, for helping guide the transition. Local officials said they expect the shipyard to once again become a dependable economic anchor, with stable employment and steady investment. Tribal and university leaders echoed the view that workforce development will be key to sustaining the shipyard’s next chapter.

AIDEA board leadership said the agency’s priority has always been maximizing utilization of the shipyard as a statewide asset, and that the partnership with JAG aligns with Gov. Mike Dunleavy’s push for expanded economic development. State officials also noted that strengthening Alaska’s labor and trades workforce is increasingly urgent as communities struggle with outmigration and a lack of skilled craftsmen.

As the new operator, JAG Ketchikan, a division of JAG Alaska Inc., specializes in marine vessel construction, repair, and support services. AIDEA’s continued involvement reflects its mission to promote economic opportunity across Alaska, and both organizations say they expect the shipyard to grow into a stronger regional hub for maritime work in the years ahead.