Frosty Fuels was purchased by The Aleut Corporation in 2003. It is 100% owned by Aleut Enterprise, which in turn is 100% owned by the Aleut Corporation. Cold Bay is a community of 128 individuals according to 2017 data. This is an increase from 2010 Census when 108 individuals were counted, but still down significantly from the peak census count of 256 in 1970. Cold Bay is also unique in that according the Census Bureau, 94% of the occupied homes were renter occupied. This reflects the fact that a significant portion of the population is provided housing by their employers.
The demand for fuel in Cold Bay is evenly split between the fuel sold to the aviation customers and in the community of Cold Bay for power generation and home heating. On the aviation side, the demand for Frosty Fuels is driven by the 10,180 ft runway which is the fifth longest runway in Alaska. Currently, 99% of the fill ups made over the last several years can be handled by Frosty Fuels’ single tanker truck in one load; however, TAC Board and Management have wisely requested plans be made for expansion of the capacity if the demand can be identified. Frosty Fuels has seen a stronger presence of the US Coast Guard, more salmon from King Cove being shipped fresh, and an increased usage of Cold Bay by small corporate jets flying between North America and Asia as traditional airports such as Anchorage International become more crowded. There is great opportunity for Cold Bay to service larger cargo aircraft as well as perhaps attracting direct flights from Seattle during peak fishing season then flying the passengers from Cold Bay to the fishing communities such as Unalaska, King Cove, Sand Point and even to Bristol Bay.
The options for expansion include a pipeline directly to the tarmac, a supplemental fuel tank located on the tarmac, and additional tanker vehicles. The options can all be quickly implemented once the business case can be made for expansion.
The Aleut Corporation is proud to have Aaron Merculief, shareholder, as our terminal manager. Aaron has done an outstanding job in managing the terminal since 2015. Aaron now calls Cold Bay home while he manages additional staff members.
Though it may not happen overnight, additional infrastructure to the airport, lodging for passengers, and even customs and immigration personnel would be needed to maximize the potential opportunities. The Aleut Corporation sees a great future in Cold Bay and we stand ready to contribute to its prosperity, so we can continue to serve our mission: “To maximize dividends and opportunities for our shareholders.”