The proposed Knik Arm ferry or Cook Inlet ferry, christened the M/V Susitna would be a year-round passenger and auto ferry across Knik Arm between Anchorage and Point MacKenzie in Alaska. The project is expected to cost $44 million, a fraction of the cost of the more controversial proposed Knik Arm Bridge that would connect the same two communities. A special ice-breaking twin-hull ship was designed by Lockheed-Martin Corporation to serve the route, with capacity for 20 to 28 automobiles and 115 to 150 passengers. It was built by Alaska Ship and Drydock, Inc., in Ketchikan. Design and construction costs were subsidized by the United States Navy which hopes to study the technology for its potential as a new type of expeditionary landing craft, also called an "E-craft". Basic construction of the ferry was completed and it was christened the M/V Susitna in June 2010, but it has not yet been put into service as a ferry. Transit time across Knik Arm is expected to be about 12 minutes in each direction, with a similar amount of time required for loading and unloading. The subsidized one way fare is expected to be in the range of $10 per person or $25 for automobiles.
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... As of May 2011, the ferry was still sitting in port in Ketchikan, hundreds of miles from Knik Arm ... Although a ferry terminal at Point Mackenzie is nearly complete, there is not yet an agreement on a site for the Anchorage terminal ... Another site was rejected because the ferry needed more clearance than is available there ...