A ferry in the area was proposed as early as 1999.
Susitna was a project of Senator
Ted Stevens, who helped secure numerous earmarks through Defense Department budgets to pay for the ship. Rather than toss the ship in a scrap heap as all other prototypes were, the ship was to be put to work as both a ferry for taxpayers, and as a research vessel for the U.S. Navy. The navy would gather information via the 1,000 sensors on board to learn how the stresses of ice affect the ship, helping the navy construct an improved landing craft for icy seas. As of February 2013, the ferry was still docked at
Ward Cove in Ketchikan, hundreds of miles from Knik Arm. In 2008 then mayor of the Municipality of Anchorage
Mark Begich terminated the 2002 agreement with the
Matanuska-Susitna Borough, who then bore sole responsibility for the project. Several landing sites were proposed, and each time there were objections. One site could possibly interfere with the endangered
Beluga whale population in
Cook Inlet. Another was deemed too close to the oil "tank farm" at the
Port of Anchorage and was rejected out of security concerns. A third site was objected to by commercial
fishermen who feared it would interfere with their operations. Another site was rejected because the ferry required additional clearance. The borough favored a site at
Ship Creek, an industrial area already used for offshore docking of
tugboats, however, offloading of vehicles requires a ferry landing. No landings were ever built. In August 2011 the borough government was informed they were expected to take possession of the ship within a month, and that they were required to provide berthing fees and other expenses even though the vessel was not in service, an estimated annual cost of 1.3 million dollars. Concerned with taxpayers paying for operations costs on a ship that has no revenue, the Matanuska-Susitna Borough Assembly agreed to either transfer the vessel to any U.S. government entity or sell it to a commercial interest. They were informed that if they sold it outright they would need to return Federal grant funds used for its construction. The amount is uncertain. Or If the borough transferred the ship to another government entity, the financial obligation could have been reduced. In January 2012, the
Alaska Marine Highway rejected a proposal that they utilize the ship as it is not compatible with their existing facilities or training. A proposal to lease the vessel to the
Coast Guard was rejected by that agency on similar grounds. The unused vessel was listed for sale in September 2012. In May 2013, the borough agreed to sell the vessel to a private company for $6 million, a small fraction of its worth but enough to cover their obligations related to it. However the buyers did not remit a promised down payment on schedule. ==Sale to the Philippine Red Cross==