In 1907, a shootout between two rival railroad companies ended Valdez's hope of becoming the railroad link from tidewater to the Kennicott Copper Mine. The mine, located in the heart of the Wrangell-St.Elias Mountains, was one of the richest copper ore deposits on the continent. The exact location of the right-of-way dispute, in which one man was killed and several injured, is located at the southern entrance of the canyon on the Valdez side. A half-completed tunnel in the canyon marks the end of railroad days in Valdez. A rail line to Kennicott was later established from the coastal city of Cordova.
The city of Valdez was badly shaken but not destroyed in the 1964 Good Friday Earthquake. Liquefaction of the glacial silt that formed the city's foundation led to a massive underwater landslide, which caused a section of the city's shoreline to break off and sink into the sea. The underwater soil displacement caused a local tsunami 30 feet (9.1 m) high that travelled westward, away from the city and down Valdez Bay. Thirty-two men women and children were on the city's main freight dock to help with and watch the unloading of the SS Chena, a supply ship that came to Valdez regularly. All 32 people died as the dock collapsed into the ocean with the violent landslide. There were no deaths in the town.
Residents continued to live there for an additional three years while a new site was being prepared on more
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