"It's certainly within the realm of possibility,'' said Mat-Su borough manager John Duffy of building the ferry landing on the Anchorage side, which would complement the proposed landing at Port MacKenzie.

"It's good for both of us,'' Duffy said. "Helping them out, helps us out. The two facilities go hand-in-hand.''

Officials from the Mat-Su borough and the Port of Anchorage are crafting a "memorandum of understanding,'' outlining each party's responsibilities.

The agreement had not been signed by either party at press time.

The Mat-Su borough has $11.8 million in federal money to build a ferry system across Knik Arm. The money would go toward design and engineering of the ferry landings, utilities and access roads, and for the construction of a ferry.

But that money is not enough to fund the entire project, Duffy said.

He said Anchorage may be asked to provide 20 percent in matching funds for its side of ferry landing construction.

"We'd probably ask them to pony up the matching money,'' Duffy said.

Exactly how much the ferry system will cost is still not known; borough officials are looking at several options, including using a privately-owned ferry.

Marc Van Dongen, port director at Port MacKenzie, said at least 25 businesses have expressed interest in establishing operations on the Mat-Su side once a ferry system is in place.

VECO Corp. in August expressed interest in building oil drilling modules at Port MacKenzie.

A ferry could be transiting Cook Inlet in less than two years, if funding and construction schedules go right, Van Dongen said.

The borough has considered building its own ferry, a 223-foot-long, $3.5 million ship that would hold 50 vehicles and 150 passengers.

The two-mile trip would take only 12 minutes and would cost travelers under $10, Van Dongen said.

A private ferry operator also could be used, he said.

But whether run publicly or privately, the ferry would have to be heavily subsidized, Van Dongen said, noting that ferries in the Seattle area are typically subsidized by the government by at least 40 percent.

Ship Creek Point, within walking distance of downtown, has a boat launch and boat storage facility. It is a popular waterfront sightseeing destination for tour buses.

Bill Sheffield, Anchorage port director, said a ferry landing would encourage tour boat operators to run sightseeing trips in Cook Inlet.

"There is not a lot of things to do for tourists,'' Sheffield said. "A good day-boat operation would do very well here.''

Sheffield also sees future development of the Ship Creek Point to include a hotel and restaurants.