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Rail Transportation in Alaska

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Rail Transportation in Alaska Rail Transportation in Alaska By Greg Huff ai l transportation is an importa nt link in A laska's developm en t. Over twenty ra ilroad operate in A las ka since th e late 18005, Ra ilroads hauled hundreds of m il lions o f tons of coa l, gold, copper and other m inerals from inland mines to t idewater ports. and transported million s of passengers. A s the minera ls played out or were no longer profita· ble, m in s lased, comm unity populations dwindled an d slowly t he railroads disappear d. Today tw operat ional raill oads remain in A laska and only one, t he A laska Railroad (ARR), is full y operationaL T he other, Wh ite Pass and Yu ­ kon Ra il road (WP & YR), is on ly pravi ing limite su mmer passenger service . These two rai lroads have had long histories in Alas ka, far longer th an any other A laskan rai lroads. In long-term economic effects the A RR has, b far. had the most impact. T hi s artiel explores t.h e p st o f t he t hese two remaining rail­ roilds and discusses their current and fu ture outlook. White Pass and Yukon Railroad The ol dest of the two existing A laska n ra ilroads. The White Pass and Yukon Rai lroad, operated between 1900 and 1982. After a six year closure, the line wi ll sta rt limited operation again this summ er. T he new operations are limit­ ed to passenger se rvice and wi ll trave l from Ska way to White Pass and retu rn , a th ree hour round trip through 49 miles o f spectacular scenel'y. T he primary cu stom rs wi ll be tour ship pas engers. In the past the train traveled to W hite­ horse and was a key transportation link to the rich Yukon mineral d posits. Construction began on this narrow gauge railroad in 1898 and end din 1900. Over twenty railroads The 110 miles of t rack (2 0 m iles are in A laska) p rovided a transportat ion link operated in Alaska since between the Yu kon gold fields and tidewater. T he rail road was profitable for some 20 years, but when go ld pro ducti on fell off in th 1920s and 1930s the the late 18005. rai lroad experienced many hard y ars. The Wh ite Pass & Yukon revived during World War II. The railroad hauled mili­ tary equipment from Skagway to the interior fo r construct ion of the A lc n High­ way and Co na l pipeline system . After the war the railroa re turned to civil ian management, in poor shape ue to heavy use. During the 19505 the line was upgraded and m odernize d. evolu tionary at the time. th e railroad (i n co nnection with i LS barge lines) introduce d the fi rst con­ tai neri ze d freight service in A laska. The railroad rem ain d operat. ional un til 1982 when minera l prices made the Cy prus·A nvil mine in the Yu kon uneconom ica l to operate. Without ore haulag e t he rai lroad could not m ainta in a profitab le operation. B fore closing in [ 982 th ra il road carried about 600,000 tons of freight and 65,000 passengers an­ nually. When the railro d closed it took about 160 year· round jobs and ov .r 4.5 million in annual payroll from Sk gway's economy. T he start·u p this su mmer creates some 20 jobs fo r the summer months in Ska g­ way, but without new d velopments the days of this railroad as a large em ­ ployer are over. 7 p letion of the p roject occurred near­ ly ten years later in J uly 1923. T he The concept of the Alaska Ra ilroad cost was $60 m illion and the 48 1 (ARR) existed for at least two d cades m iles o f m a in li ne track was renam ed before its construction. In fact, two the Alaska R il road. It was the first companies attempted to build a rail­ frontier railroad financed e ntirely by road o n the route of the present day the federal gov rnment. ARR. The first attem pt was the Alaska Central Railroad. Construction start­ The railroad was built, but comple ed in 1904 with its primary goal of tion only connected the tracks from reaching the rich coal fields in the Seward to Fairbanks. Work remained Matanuska Valley. Four years and before the A RR was o n pa r with low­ only 51 miles of track later the com­ er 48 railroad standards. However, pany was bankrupt. The Alaska that work was not to be done for some Northern Railroad acquired the time, From 1924 to 1945 the railroad defunct railroad in 1908 and built an rece ived no capital or operating ap­ additional 21 miles of track to Kern propriatio ns from Congress and the (near Girdwood). However, without railroad could not finance improve­ money to continue construction or ments due to the generi:lliack of eco­ operate the railroad's days were nomic activity along the line_ numbered. Deterioration of the already marginal railroad prompted some government By 1914, legislation passed empower­ officials to call for abandonment of ing the President to buy or construct the line. a railroad not more than 1,000 miles in length. The railroad was to connect World War II prevented the Alaska Alaska's interior navigable waterways Railroad from being abandoned_ The and rich coal and mineral deposits military provided ARR with a sharp with an ice-free harbor. Two route increase in traffic, needed income proposals existed-Alaska Northern's and a link to Whittier. The 3.5 miles Seward to Fairbanks route and the of tunnels to Whittier were completed Copper River and Northwestern Rail­ in 1943, cutting the distance from An­ road 's proposed route from Cordova chorage to ice-free tidewater by 51 to Fairbanks. The federal government miles. However, even with military as­ decided for the Alaska Northern route sistance the railroad's equipment and and purchased the 72 miles of exist­ property were in no better condition ing track. than before the war. The "Government Railroad" project After the war the federal government started in April 1914 with an initial considered abandoning the A RR , but appropriation of $35 million. Com- decided to rebuild instead_ By the end of the rehabilitation period in the ear­ ly 1950s, at a cost of over $95 m illion, the railroad was co mplet . During the Figure 1 1960s two even ts cause d long-term Al aska Railroad Revenues and Workload, 1980-1987 changes in the character of the rail­ road; initiation of railcar barge service Re v enue~ between Alaska and both Can ada and 250 the continental U.S, and opening of year-round container ship servi e to th Port of Ancho rage_ The most im­ ~ 40 200 o portant event wa s the railca r b arge enO ser vice, T his service gave additional '":::> "'0 options to Alaska shippers and made ~ a .30 150 > en it possible to ship items directly to '" c: O::: ~ Alaska without re loading in Seattle .:f 20 100 and Alaska ports. In the 1970s another event trans­ 10 50 formed the railroad into its present form. During the construction of the o o trans- Alaska pipeline between 1974 19801981198219831984198519861987 and 1977 the railroad carried its most Sourc~: Alo:sko Railroad Corporation profitable volumes of traffic since World War II. More important the rail ­ 8 road emerged from a period of heavy from 1980 to 1987 are illustrated in usage in better physical condition F-igu re 1. than it was (i t the beginning of the period. An infusion of federal dollars The railroad also hauls drilling pipe and equipment saw to that. from Whittier and Seward to Fair­ banks, where it is transferred to The Alaska Railroad in the 19805 trucks and delivered to the North Slope_ The impact of slumping oil During the earl y and mid 1980s the prices on drilling activity resulted in railroad experienced seve ral changes, a dramatic drop in pipe freight from the most important being a transfer the peak of 74,000 tons in 1985. from federal to state ownership. The export component consists While discussion about a transfer of almost exclusively of coal shipments the ARR to state ownership had taken to Korea: The UsibelJi coa l mine be­ place since 1968, it was not until gan exporting coal to Korea in 1985, January 5, 1985 that the transfer hap­ when they struck a deal with Suneel pened. Alaska purchased the railroad Corporation. The coal is exported out from the federal government for $22.3 million. The Alaska legislature created a public corporation called the Alaska Railroad Corporation Figure 2 (ARRC) to operate the railroad and Overview of Freight Markets, 1987 Revenues manage its properties. In addition to the purchase price, the state con­ tributed $11 million for initial work­ ing capital and capital expenditures. Interline 15% With three years of operation under TOFC / COFC 15% its belt the AlmC has made a profit in two of the years. The railroad has Pipe 2% increased reta ined ea rn i ngs by over $2 million to $9.2 million (Table 1) and has received no subsid ies from Local Coal 12% the state.
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