Adak, sitting halfway between the continental United States and Russia where the Bering Sea and Pacific Ocean meet, is ready for new development and international opportunities.
ADAK: 1940 TO 2015
Over a half century ago, in 1942, the US military recognized Adak’s globally strategic location and built the Adak Army Base and Naval Operating Base to assist in World War II operations. Years later, Adak played a key role as a reconnaissance station, keeping tabs on Soviet submarines during the Cold War.
Adak’s strategic positioning has made it a 20th and 21st century geographical and geopolitical asset for the United States.
In 1994, the Adak Naval Station was decommissioned; in 2003, the Aleut Corporation exchanged equal lands for the naval station. Besides the land and infrastructure, the transfer created over $493 million in allowable tax deductions for the corporation. Over the past 10 years TAC has realized $39 million in tax savings from these tax deductions and will continue to realize many millions more in coming years. These savings translate directly to TAC’s profits which determines Shareholder benefits and dividends.
Two of TAC’s subsidiary companies work in Adak. Aleut Real Estate (ARE) manages the island’s properties and infrastructure. Aleut Enterprise (AE) oversees the Adak Inn, the port and fishery structures, and sells fuel to trawlers, residents, commercial outfits, airlines and utilities. All AE on-island staff are shareholders or descendants.
ADAK NOW
The Board of Directors recognized the importance of Adak for TAC’s future and in 2015 approved 4 major goals or Adak Concentration Areas. Since then, these goals have been the guiding light for TAC management.
GOAL 1: MONETIZE TAC’S POLLOCK FISHERY ALLOCATION
Since the pollock allocation was passed by the late Senator Ted Stevens and the US Congress in 2004, our ability to monetize it has been obstructed by multiple challenges. TAC management continue to work with Alaska’s congressional delegation, lobbyists, and state representatives to realize our allocation.
GOAL 2: CREATE A VIBRANT AND PROFITABLE FISHING AND PROCESSING INDUSTRY IN ADAK
Currently there are two processors operating out of Adak and TAC and its subsidiaries actively research possible markets to support these processors. Their success is ultimately our success.
GOAL 3: DEVELOP ADAK AS THE TRANSSHIPMENT PORT AND CONTAINER MEGA PORT
Adak is located in the middle of the Great Pacific Circle Route, which is one of the busiest marine and air corridors in the world. As its strategic location was recognized 75 years ago, Adak’s location is again being recognized, this time as a potential shipping hub. The international polar sea routes are rapidly changing and the up-and-coming marine superhighway, the Northern Sea Route, offers time-saving and cost-saving opportunities for worldwide shippers. Adak sits at the intersection of the Great Pacific Circle Route and the Northern Sea Route. Adak also has a deep water port that can be utilized by the largest of ships. It also has an airport and two runways that can accommodate jet aircraft.
GOAL 4: MARKET ADAK AS A STRATEGIC LOCATION FOR THE COAST GUARD AND NAVY
Adak is the United States’ westernmost hub in the North Pacific. Its military strategic positioning, deep water ports and active airport can accommodate both deep draft vessels and large aircraft. Coves and harbors sheltered from the predominant winds, and developable land make Adak the most cost efficient and effective means for the US military to gather in the Arctic. If Adak again sees military development it will have come full circle from its beginnings as a US naval base in the 1940s.
WHY ADAK IS IMPORTANT TO TAC SHAREHOLDERS AND DESCENDANTS
It is important that as a shareholder or descendant of the Aleut Corporation you understand the global importance of Adak. These four goals are attainable. From fishing allocations to international transshipment, they make up a valuable diversified asset for TAC. Each goal has a series of strategies and tactics along with timelines. As a living document, the four goals are continually monitored and evaluated. Your Board of Directors, TAC management and staff are working diligently with Alaska’s federal and state representatives, fishery groups, residents of Adak, the international shipping industry, the military and the Arctic Council to make sure that we manage our Adak asset to benefit you.