A “tentative agreement” that could result in a reassignment of the rights to operate the state-owned Ketchikan shipyard has been announced by Vigor Marine Group, whose Vigor Alaska subsidiary has operated the yard since 2012. The operating lease would be assigned to JAG Marine Group, whose JAG Alaska subsidiary has operated the Seward shipyard since 2018.

The development was made public on July 15 in a press release from the Alaska Industrial Development and Export Development Authority, which owns the Ketchikan yard.

AIDEA’s announcement said the tentative agreement between Vigor and JAG is “aimed at an assignment of operator rights of the Ketchikan shipyard to JAG,” with the parties working “together to ensure an orderly leadership transition.”

No time frame or deadline for an agreement between Vigor and JAG was provided in the press release.

The Ketchikan yard performs winter overhaul and repair work on most of the Alaska state ferry fleet, in addition to working on other government and private vessels.

In the press announcement, AIDEA Executive Director Randy Ruaro said, “The next step will be for AIDEA and the new operators to reach an agreement for the operation of the shipyard.”

Vigor is currently nearing the end of a 10-year extension of the original operating agreement that began with the previous operator, Alaska Ship & Drydock, and continued after Portland-based Vigor bought the operation.

AIDEA announced earlier this year it would not extend Vigor’s lease and wanted to bring in a new operator.

The state agency on Feb. 28 notified Vigor Alaska President Adam Beck that AIDEA would not extend the operating contract. The letter said the state did not believe that Vigor had performed well enough to merit the next 10-year extension.

The JAG Marine Group and JAG Alaska are part of the JAG Industrial and Marine Services entity based in Jonesville, Michigan.

According to its website, “JAG works throughout the United States providing project management services for industrial manufacturing, marine repair and ship building including oceanic vessels, river and Great Lakes-faring vessels. It can support every aspect of marine and industrial projects up to and including turnkey project management while representing our clients to the end customer.”

JAG Alaska stepped in to operate the Seward Shipyard after the previous operator — Vigor — sent a letter to the city in January 2018, stating that Vigor would be shutting down its operation in Seward after four years, according to newspaper reports. The story noted that Vigor maintained that “business was simply too slow in Seward.”

Among the larger projects that JAG Alaska has completed at the Seward Shipyard include a six-month, $9.5 million overhaul of the Alaska Marine Highway ferry Tustumena, and a nearly $11 million overhaul of the U.S. Navy rescue and salvage ship USS Grasp, according to JAG information.