PORTLAND – Bath Iron Works plans to put the proceeds from the $3 million sale of its Portland dry dock back into the city’s waterfront, the shipbuilder announced Monday.

A Croatian shipbuilder had bought the dry dock that was used more than a half-century ago to repair warships in the Pacific in World War II, BIW said.

The rusty blue landmark is expected to be hauled away this spring.

The state and BIW agreed to put $2 million into the city’s new cruise ship terminal. Those funds are expected to generate matching funds.

The remaining $1 million would be used for a revolving loan fund for pier maintenance and dredging along the waterfront.

The announcement came at a waterfront news conference attended by Gov. Angus King and BIW president Allan Cameron.

BIW used the Portland dry dock to finish work on vessels it builds at its Bath shipyard. It is no longer needed now that the shipyard has purchased a new dry dock on the Kennebec River.

“The Portland facility was a critical component for us to win the lead status as designer and builder for the Arleigh Burke-class destroyer – a program that continues to provide thousands of good jobs in Maine,” Cameron said.

“Our partnership with the city of Portland and the state of Maine made that possible, and we were grateful for that opportunity,” he said.

Cameron said the revolving loan fund will enable private pier owners to secure low-cost financing to maintain and improve their piers. “That’s a nice legacy for us as we depart,” he said.