Alaska Railroad Ongoing Projects:

Fairbanks Intermodal Facility Alaska Railroad Corporation 1st Quarter, 2004 Collision Avoidance System www.alaskarailroad.com • (907) 265-2300

Photo by Sam Harrel Fish Passage Improvements

Palmer Park-and-Ride Center

Anchorage-to-Wasilla Track Realignment

2003 PERFORMANCE SETS STANDARD Anchorage Rail Capacity Study Railroad marks safest, most prosperous year in history

otivated employees, a good number of man-hours in modern times Whistle Noise Reduction System plan executed well, and a (1.42 million). Train derailments were also more modern infrastructure down in 2003. ARRC met its goal to reduce boosted Alaska Railroad derailments by 20%, and ARRC’s “train Anchorage Yard Ops Center performance to the top of the accident rate” (an industry measure of charts in 2003. Here’s how incidents with more than $6,700 damage, the Railroad stacked up when for every million train miles run) was below Ship Creek Intermodal Center compared to both its 2003 the national average at 3.5. goals and five-year objectives: M Financial — 2003 goal: Grow overall Improved Sidings & Signals Safety — 2003 goal: Operate a safe revenue 2-4% per year. railroad • Five-year objective: Reduce The 2003 budget process pointed to a employee injuries to average no more than marginal, if not below average, year. 2.0 injuries per 200,000 man-hours. Whittier Development Planning However, a surprisingly strong Alaska 2003 was the Alaska Railroad’s safest, ever. economy and several unplanned business Perhaps the most important milestone was a opportunities contributed to revenue Seward Dock & Port Security reduction in injury severity, expressed as the growth of 7.5%. On the expense side, number of days lost to injury per 200,000 employee productivity and efficiency man-hours worked. We finished the year at dropped expenses well below estimates. As 3.66 — a 54% reduction over last year. a result, ARRC earned $14.0 million The Railroad also reduced the number of (unaudited), surpassing its 2003 net income For updates or comments on reportable injuries to 26 incidents — the budget of $5.5 million. The company’s these projects, visit the Alaska lowest number in company history. These assets grew by 19% and are now valued at Railroad web site at reductions occurred even while Railroad $437.3 million. employees worked the second largest (see “Banner Year” on page 2) www.AlaskaRailroad.com BANNER YEAR... Customers — 2003 goal: Place more emphasis on customer service and on “the business” of the Railroad.

Freight: Track upgrades and efficiencies from Williams’ new offload loop track in Anchorage led to fuel transport volumes well over budget estimates. High demand from southcentral construction projects made 2003 the second highest year for gravel tonnage in company history. The export coal 1922: A train leaves Anchorage. contract with South Korea resumed last year, adding two coal trains per week. Finally, the Bird Point road project along Turnagain Arm used rail to MOMENT IN HISTORY transport 22,000 cars of bulk rock, adding nicely to unbudgeted revenues. Passenger: This year, customers were able to book rail packages via the The Railroad was the only founda- Internet. Alaska Railroad (independent traveler) passenger numbers grew by tion of Anchorage in 1923. The 9% over last year. Passenger purchases generally continued a 2002 trend small city in the “westward” of toward shorter, less expensive packages. Rail trips to Seward booked at an Alaska - as distinguished from the all time high, growing by 17%. Also popular were day trips out of Southeast panhandle that was Anchorage, the new Spencer Glacier and Grandview service in particular. considered the principal region of the territory - was created because Real Estate — Five-year objective: Achieve and sustain an annual real estate of railroad construction. At the income of at least $10 million per year. time, it was nowhere near on par with the busy mining towns of This long-term objective was met with real estate earnings of $10.5 million Nome and Fairbanks, which were in 2003, exceeding the $9.6 million budget figure. With an eye toward well-established and well-known development, ARRC focused on Ship Creek in 2003, securing the area’s first in this period. President Harding retail tenant — the Ulu Factory. The railroad also partnered with the said during a 1923 visit to Municipality of Anchorage to plan a link between a downtown E-Street Anchorage, “...here in Anchorage, corridor proposal and the Railroad’s future Ship Creek intermodal center. you have built a city on a founda- tion which contemplates a great Operations/Maintenance4 — Five-year objectives: Achieve and sustain an and wonderful future.” operating ratio of 0.95 by 2006; Consistently run trains between Anchorage 5 2 and Fairbanks under 12 hours. Operations and maintenance personnel produced an operating ratio of 0.92 Alaska Railroad in 2003, surpassing the Railroad’s five-year objective early on. Operating ratio measures the direct train operational costs over its revenues (excluding 2003 Annual real estate and interest). The Railroad also advanced its objective to run Report will be trains from Anchorage to Fairbanks in less than 12 hours, achieving a 75% available in April success rate. The Alaska Railroad’s 2003 Employee Initiatives/Labor — 2003 goal: Improve employee quality of life. Annual Report will be available • Five-year objective: Establish a formal recruitment and training program. on-line at the railroad’s web site The Railroad spent $1.8 million in 2003 to enhance personnel training and — www.alaskarailroad.com — education efforts. We introduced industry-standard training for new hire after the first of April. Hard train service and student engineers. We delivered more than 1,200 hours of copies will also be available upon locomotive simulator and new computer-based training. And, we rolled out request by contacting ARRC’s coursework in leadership and management supervisory skills. Public Affairs Officer Tim Plans and site work were completed for a new centralized train operations Thompson, 265-2695; or PUbilc center in Anchorage, which will provide many employees with improved Involvement Officer Stephenie working conditions and will provide space for corporate training and crisis Wheeler, 265-2671. response activities. Construction starts in 2004. In Wasilla and Whittier, employees moved from substandard workshops into professional shop (continued on next page) (continued from page 2) Double Track Project was completed in the fall, relieving congestion along this busy five-mile corridor. The workspaces. Systemwide, renovations were made to Railroad made substantial progress on the Anchorage-to- several employee breakroom and restroom facilities. Wasilla track-straightening effort. In Whittier, ARRC Finally, a company-wide employee performance completed a new downtown heavy equipment recognition program was implemented last year. maintenance facility, invested in additional freight dock safety features, and spent $500,000 to improve the Capital Projects — 2003 goal: Continue to shape our DeLong Dock for use by local businesses and fishermen. future through the beneficial effects of world-class capital improvements •Five-year objectives: Invest an average of Community Cooperation — 2003 goal: Continue to 20% of annual revenue in infrastructure maintenance; participate in community planning and development. Successfully complete our federally-funded capital construction program; Fund and apply technology to The Railroad continued its active membership in train dispatching, signals and switching; Redesign/build numerous local and statewide civic groups and Anchorage and Fairbanks yard facilities to meet business, government transportation planning efforts, including the growth and community needs. Fairbanks Rail Task Force, the Anchorage/Mat-Su Regional Transportation Planning Organization, the 2003 was a remarkable year for ARRC depots. May 17th Whittier Planning Group, as well as both the Anchorage marked an intermodal milestone, as Seward passenger and Fairbanks Metropolitan Transportation Planning dock and terminal improvements were completed just in Organizations. ARRC also contributed to North Pole’s time to accommodate the season’s first cruise ship. Some 50-year anniversary and Seward’s centennial of those passengers boarded the first cruise ship train to celebrations. pull into the new Bill Sheffield Rail Depot at the Ted Stevens Anchorage International Airport. At Denali Park, LOOKING AHEAD ARRC constructed new passenger shelters and restrooms For all the success experienced in 2003, our “To Do” list as part of our expansion and upgrade to the passenger is still daunting. Future capital improvement plans facilities and surroundings. include rail-relocations, track-straightening, intermodal Ground broke on the Fairbanks Intermodal Project. The projects, commuter rail service, high-tech safety systems, Ship Creek Intermodal Transportation Center project and potential rail extensions to Delta Junction and moved from the planning stage into design. In the Mat- beyond. Estimates run into hundred of millions of dollars Su Valley, ARRC joined a unified Wasilla Intermodal to plan, design and construct these projects. Planning effort that prioritized many city, borough and In addition to projects, the Railroad anticipates a busy state transit projects in the area. In Palmer, the Railroad operational side. Passenger reservations are a very bright designed a park-and-ride facility, preparing the project spot, with growth expected to be 5-7% in 2004. For for construction in 2004. freight, ARRC expects only a small reduction in 2004 ARRC completed the initial phases of a state-of-the-art revenue compared to 2003, which was a record year. Collision Avoidance System. The South Anchorage

OPEN HOUSE EVENTS SHOWCASE CAPITAL PROJECTS The Alaska Railroad recently ARRC’s project managers were completed four Program of Projects on-hand to answer questions and Open House events to inform the explain projects in more detail. public about the railroad’s capital Exposure to ARRC plans elicited improvement plans in 2004. nearly two dozen comments from Several hundred people attended Alaskan residents, ranging from these events, which were held support for commuter service to ARRC Chairman John Binkley January through February in concerns over potential rail bypass explains several Rail Task Force recommendations at the Open Anchorage, Fairbanks, Seward and routes around Fairbanks and House in Fairbanks. Wasilla. Wasilla. RAILROAD NAMES NEW PUBLIC AFFAIRS OFFICER Anchorage Channel 2 News assignment editor becomes ARRC spokesperson

imothy Thompson has joined the assignment editor, he managed all aspects of Alaska Railroad as the Public Affairs news gathering for the state’s largest broadcast Officer. In this position, he is news organization. With more than a decade of responsible for the railroad’s media experience in public and media relations, employee newsletter, communications, Thompson has also served as advertising programs, special events an adjunct professor for the University of Alaska and community outreach activities, Anchorage (UAA) Journalism and Public Relations such as the annual open house, Tim Thompson Department. school tours and school business Tpartnership activities. Thompson will also serve as a During his tenure with Channel 2, Thompson’s work corporate spokesperson for media and community was recognized with an Emmy award for local inquiries. newscasts/documentary features, and with an Edward R. Murrow Award for small market national and regional “I am really excited about working with the Alaska news coverage. In 2001, he was named among the Railroad Corporation,” said Thompson. “The railroad is “Top Forty Under 40” by the Alaska Journal of an important part of Alaska’s infrastructure, which is why Commerce and Anchorage Chamber of Commerce. I am committed to keeping the community informed on its role in the state’s economic future and the great Born in Minnesota and raised in Anchorage, Thompson strides that are being made to continue its growth.” has been an Alaska resident since 1968. He earned a master of business administration degree in Thompson comes by way of KTUU Channel 2 News, telecommunications management from Alaska Pacific where he worked as the manager and assignment editor University, and a bachelor’s degree in journalism and

since 1995, and as producer from 1992 to 1995. As public communications from UAA.

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2004 COMMUNITY TIES MAILING LIST UPDATE LIST MAILING TIES COMMUNITY 2004

PERMIT NO. 500 NO. PERMIT

Anchorage, Alaska 99510-7500 Alaska Anchorage,

ANCHORAGE, AK ANCHORAGE,

P.O. Box 107500 Box P.O.

U.S. POSTAGE PAID POSTAGE U.S.

Alaska Railroad Corporation Railroad Alaska PRSRT STD PRSRT Alaska Railroad Ongoing Projects:

Fairbanks Intermodal Facility Alaska Railroad Corporation 2nd Quarter, 2004 Anchorage Operations Center www.alaskarailroad.com • (907) 265-2300

Anchorage-to-Wasilla ARRC GARNERS 2 PRESTIGIOUS AWARDS Track Realignment Safety improvements and architecture inspire awards

n May, the railroad industry’s most considered among the most dangerous Ship Creek Intermodal Center prestigious safety organization occupations. recognized the Alaska Railroad (ARRC) as one of the most improved railroads Architecture — In April, the Bill Sheffield Whittier Passenger Access in the country for safety performance. Depot at Ted Stevens International Airport ARRC was one of nine U.S. railroads to won a coveted American Institute of receive an Edward H. Harriman Architects (AIA) Award. Architects from Improved Sidings & Signals Memorial special certificate of KMD (Kaplan McLaughlin Diaz) drew praise commendation for continuous for their northern lights inspired design. Like Iimprovement in safety performance the Aurora Borealis, the depot captures Track Integrity Detection over at least a two-year period. intriguing patterns of light — from skylights across vaulted ceilings, to towering glass The annual Harriman Awards are granted to walls that project a warm glow, to fiber railroads with the fewest injuries per optic northern lights décor along the tunnel Fish Passage Improvements 200,000 man-hours worked. ARRC’s injury linking to the airport terminal. rate in 2003 was 3.64, the lowest in the corporation’s history and a 70% reduction “The rail station brings the intrigue of the Palmer Park-and-Ride Center since 1997. Edward H. Harriman was a sky into a welcoming center to greet and pioneer in American railroading. His wife tantalize visitors with the natural splendors Mary founded the safety awards in his of Alaska,” said Herb McLaughlin, KMD’s Anchorage Rail Capacity Study memory in 1913, when railroading was design director. THEY’RE HERE! Whistle Noise Reduction System This spring, the Alaska Railroad took possession of the eight new Seward Loading Facility SD70MAC locomotives being purchased this year. Soon after rolling off a General Motors assembly line, locomotives 4317 through 4324 were distinctively For updates or comments on painted before delivery. This fall, these 4300 horsepower locomo- these projects, visit the Alaska tives will be equipped with head power (HEP), which will supply Railroad web site at electrcity to passenger coaches to www.AlaskaRailroad.com run air conditioning, lighting, cooking appliances, etc. ARRC, EPA ASSESS SHIP CREEK 80 years of industrial operation prompts study

he Alaska Railroad and the U. S. Environmental Protection Agency (EPA) recently agreed to environmentally assess about 600 acres of railroad land in the Ship Creek area. Railroad and other 1933 Passenger Train brochure. industrial uses over the Tpast 80 years may have resulted in MOMENT IN HISTORY environmental problems at the site. The Railroad will conduct the There is no information indicating The pictured 1933 Alaska Railroad investigation under EPA guidance. that it is unsafe to consume fish passenger service brochure was If any significant contamination is from Ship Creek. distributed by Conoco Travel discovered during the study period, agencies owned and operated the Bureau, in Denver, Colorado. That risks to humans, wildlife or the railroad until its transfer to the year, the passenger season was environment will be assessed, and state. In 1985, the State of Alaska effective June 9 - September 8. results will guide development of a took ownership of the railroad and There were no dining cars at the cleanup plan where appropriate the property in Anchorage, time, so luncheon stops were made in Anchorage and Healy. For and feasible. Any cleanup would assuming federal leases to industrial the long route between Seward be shared cooperatively with past and commercial businesses, ranging and Fairbanks, passenger trains owners/operators. from small convenience stores to stopped overnight in Curry, where large oil storage operations. the Alaska Railroad owned and “The potentially complex4 issue operated the Curry Hotel. boils down to what occurred, and The remedial investigation could who was responsible5 at the time,” take several years to complete. According to the brochure, visitor President and CEO Pat Gamble During this process, ARRC and EPA connections to the Alaska Railroad said. “But clearly, the bottom line is will encourage public involvement could be made: that we and those affiliated parties through public meetings, fact •at Seward, via the Alaska will want to address any findings sheets, project documents to the Steamship Company and Pacific right away.” community, and public comment Steamship Company based in opportunities. A copy of the Seattle; The federal government agreement, other information and •at Nenana, via the American- constructed the railroad from 1915 updates are posted at www. Yukon Navigation Company to 1923, and various federal alaskarailroad.com. steamer river service between the Yukon Territory's Whitehorse and Dawson City, and Nenana. The Alaska Railroad also operat- ed passenger and freight service on the Tanana and Lower Yukon rivers. •At Fairbanks, via car travel along the Richardson Auto Trail that stretched from Fairbanks to Valdez.

The size of the Ship Creek area being studied is approximately 600 acres. LEGISLATIVE ACTIONS HOLD EXPANSION PROMISE Lawmakers embrace potential rail extentions to Fort Greely and Canada

ome legislative actions this Ft. Greely to support military, be resurrected in a future session, session may pave the way agricultural and resource depending on development of a for economic expansion. development activities. North Slope gas pipeline. Another will address land use restrictions that could Two years in the making, Senate Bill The Railroad asked the legislature to hinder railroad expansion. 31 authorizes the Railroad to respond to a recent Alaska Supreme delineate and survey a 500-foot- Court decision that questioned the Lawmakers in both wide transportation corridor railroad’s long-standing exemption chambers wholeheartedly between Eielson AFB and the from local planning and zoning Sembraced several rail extension Canadian Border. The railroad ordinances. Lawmakers formed a initiatives. Passed this year, Senate would own a 200 foot-wide task force to offer recommendations Bill 395 authorizes ARRC to issue corridor embedded within the on whether and to what extent up to $500 million in tax-free transportation corridor. Funding is municipal planning, platting and revenue bonds to underwrite not yet identified. land use regulations should apply to construction of a rail line from interests in land owned by the Fairbanks to Delta Junction and Ft. Also on the economic development Alaska Railroad. The task force will Greely. Bonds would be secured front, Senate Bill 384 was be comprised of one senator, one through U.S. Department of introduced to authorize use of house member, a member from Defense funds and could be issued Railroad tax-exempt bonds to fund each railbelt municipality, and a as early as 2005. This bill followed a gas pipeline down the rail corridor railroad representative. The the 2003 initiative, HCR 2, which from Fairbanks to Anchorage. legislature will consider their encourages ARRC to extend rail to While the bill failed to pass, it could recommendations in 2005. REGIONAL ROUND-UP Alaska Railroad activity from Seward to Fairbanks

EWARD: The railroad is assessing plans to WHITTIER: The Railroad began greeting Princess Cruises improve capacity of the Seward Loading passengers in this deepwater harbor community in late Facility that was purchased last September. The May. Construction of a privately owned dock, and facility currently handles movement of coal repeal of a passenger tax, prompted Princess to move that comes by train from Healy to Seward, docking operations from Seward. To accommodate where it is loaded onto ships headed for South passengers seeking rail transportation from Whittier to Korea. An environmental assessment is Anchorage, ARRC created safe dock-to-train access, Sunderway to determine potential impacts. including a paved path, signage and shelter.

Whittier: A shelter is constructed over a path to the train. The facility conveyor discharges coal into a ship’s hold. (continued on back page) summer. A gravel train is traveling round-trip through ROUND-UP CONTINUED... Wasilla in the mornings, 5-6 days per week, to accommodate a new gravel pit located along the Parks Highway, just north of Wasilla. Other gravel trains run ANCHORAGE: This spring, Alaska Mechanical Inc. between pits in Palmer and processing facilities in (AMI) began construction of the railroad’s new Anchorage. Anchorage Operations Center situated off Whitney Road on railroad land. Designed by Architects Alaska,the FAIRBANKS: Governor Frank Murkowski joined ARRC building will house offices for key operations personnel, Chair John Binkley in late April for a Fairbanks crew and train dispatch facilities, training rooms, Intermodal Facility ground-breaking ceremony. Designed conference and meeting areas, employee break areas, by Charles Bettisworth & Company, the state-of-the-art restroom/ locker rooms, and an Emergency Operations passenger terminal is being constructed by AMI. It will Center. The facility should be substantially complete by begin receiving rail passengers in summer 2005. the end of 2004, and ready to operate in March 2005. Covering 32-acres of land, the terminal location and track configuration can support an increased number of trains to meet projected passenger growth over the next 30 years.

Anchorage Operations Center architecture compliments ARRC Headquarters building.

WASILLA: Wasilla residents and Mat-Su Valley commuters may notice new train activity between

Pittman Road and the Glenn/Parks Interchange this Governor Murkowski praises Fairbanks Intermodal Facility.

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2004 COMMUNITY TIES MAILING LIST UPDATE LIST MAILING TIES COMMUNITY 2004

PERMIT NO. 500 NO. PERMIT

Anchorage, Alaska 99510-7500 Alaska Anchorage,

ANCHORAGE, AK ANCHORAGE,

P.O. Box 107500 Box P.O.

U.S. POSTAGE PAID POSTAGE U.S.

Alaska Railroad Corporation Railroad Alaska PRSRT STD PRSRT Alaska Railroad Ongoing Projects:

Fairbanks Intermodal Facility Alaska Railroad Corporation 3rd Quarter, 2004 Anchorage Operations Center www.alaskarailroad.com • (907) 265-2300

Anchorage-to-Wasilla Track Realignment

Ship Creek Intermodal Center

Whittier Passenger Access

The Spirit of Palmer locomotive breaks through the ribbon on the track next to the new Alaska State Fair Intermodal Commuter center during a ceremony August 26, the first day of the fair. Improved Sidings & Signals

ARRC TESTS NEW SAFETY TECHNOLOGY Track Integrity Detection Alaska Railroad demonstrates system to detect broken rail Fish Passage Improvements he Alaska Railroad (ARRC) is Once installed, the Track Integrity System testing a system for detecting will apply electricity to the track to create broken rail along track that is not circuits similar to those in signalized Palmer Park-and-Ride Center equipped with automatic signals. territory. When a train approaches, the The $410,000 Track Integrity locomotive’s on-board system activates and System test is a Federal Railroad checks the track circuits. If there is a Anchorage Rail Capacity Study Administration (FRA) technology problem, the on-board computer console demonstration project funded 93% displays a warning. If the crew does not T by FRA and 7% by ARRC. stop the train, the on-board system will. Whistle Noise Reduction System Along the railroad’s “signalized” territory, a The track integrity test bed will consist of low voltage current runs through the rails so three five-mile sections of track north and that they function as wires in a signal south of Anchorage, and one locomotive Seward Loading Facility circuit. In the uncommon event that a rail equipped with an on-board computer and breaks, the circuit’s electrical current is system software. System installation is taking disrupted and the railroad is alerted to the place this summer and testing will be break. However, about 85% of ARRC’s track complete by summer 2005. If all goes well, For updates or comments on corridor is not equipped with signals. In the Alaska Railroad will have created an these projects, visit the Alaska these “dark” areas, rail defects are discov- industry prototype that will contribute to ered by frequent track inspections, as well the safety and cost-effectiveness of railroads Railroad web site at as ongoing rail and roadbed maintenance. across the country. www.AlaskaRailroad.com LOCAL LAND USE JURISDICTION IN QUESTION Legislature forms task force to mull if, how local zoning applies to Railroad

group of railbelt municipal officials will help that such local non-uniform and conflicting regulations clarify whether, and to what extent, city and would greatly impede interstate commerce by hindering borough land use regulations should apply to the efficient transportation of goods between states and land owned by the Alaska Railroad (ARRC). local jurisdictions. The Alaska Railroad Planning, Platting and Land Use Regulation Task Force was Although the Railroad is now owned by the state, the established in May by Senate Bill 395. The bill federal Surface Transportation Board has exclusive arose from a recent Alaska Supreme Court jurisdiction over its operations and facilities and the decision that called into question the Alaska Alaska Railroad shares the same interstate commerce ARailroad’s long-standing exemption from local planning protection from local regulation as every other railroad and zoning ordinances. in the United States (see 49 U.S.C. 10501(b)). In addition to federal protections, ARRC interpreted its The Railroad’s mainline track passes through 13 state statutes as explicitly exempting the Railroad from recognized city and borough governments between local planning and zoning for the 18 years following Seward and North Pole. Representatives from these transfer. However, a March 2004 Alaska Supreme Court communities, seated on the task force, will consider opinion held that “the legislature did not clearly express planning and zoning issues and make recommendations its intent to exempt the railroad from local zoning laws.” to the legislature to clarify law during the 2005 session. To address the ambiguity in the state law, SB 395 was When the state purchased the Railroad from the federal initially drafted with provisions to make clear the government in 1985, the Transfer Act designated ARRC statutory language exempting the Railroad from local as a rail carrier engaged in interstate and foreign land use jurisdiction. The exemption would have applied commerce. This subjected ARRC to regulation by the to railroad lands along the rail corridor, unless leased to

Interstate1 Commerce Commission (ICC), now known as third-parties.4 Leaseholders would, and currently do, the Surface Transportation Board. The ICC was formed comply with local planning and zoning laws. However, following2 an 1886 U.S. Supreme Court ruling that held these5 provisions in the bill were replaced with a that states could not regulate interstate railroads through requirement to establish a land use task force to review their patchwork of state laws. The court determined the issues. 3

When AMTRAK took over operation of inter- city passenger train routes by May of 1971, MOMENT IN HISTORY most of the private railroads in the United States had discontinued passenger service. Bucking that trend, the Alaska Railroad began adding passenger equipment to accommodate a growing number of visitors and residents wanting to ride the train. Much of this equipment had become surplus for the freight-only railroads. Pictured at left, in the ARRC Employee newspaper’s January- February 1972 edition, is a “new” vistadome coach. This car was purchased, along with 30 other cars of various types, from Union Pacific Railroad in 1971. The passenger coach went into service in May 1972 and remains in service today. REGIONAL ROUND-UP Alaska Railroad activity from Seward to Fairbanks, and beyond

EWARD: The Railroad is nearing completion WASILLA: An Alternatives Assessment (AA) was recently on an Environmental Assessment (EA) of completed to examine potential intermodal facilities and proposed improvements to the Seward locations in the Wasilla area. An Alternatives Assessment Loading Facility that ARRC purchased last year is a pre-cursor to environmental studies (such as an EA) with a federal grant. The goal is to continue to required for federally-funded projects. Similar enhance efficiency so that Alaska coal (and assessments are underway for an underpass or overpass potentially other resources) remains at the Knik-Goose Bay crossing and realignment of the competitive in the global market. The EA is track outside of downtown Wasilla. Once all three AA analyzing upgrades that would expedite the draft documents are complete, the Railroad will conduct Stransfer of coal to and from the stockpile as well as a public meeting in fall / winter 2004. accelerate loading coal on to ships. Comments from NENANA: The Railroad is nearing completion on local officials and residents are being incorporated into another EA initiated in 2003 to investigate a proposal to the EA. realign the track around downtown Nenana. The ANCHORAGE: In late August, proposed alignment would reduce track length by nearly the Railroad began testing a new 2 miles, straighten a large sharp curve, and eliminate or Train Whistle Noise Reduction significantly reduce rail traffic at six at-grade crossings. System at the Klatt Road rail Rail service to Nenana’s port would be maintained, and crossing in Anchorage. When a a potential spur could serve the Nenana airport. The train approaches, automated document will be available for public review this fall. wayside horns installed at the RAIL EXTENSION TO FORT GREELY: Military members site will direct a whistle warning who commute between Fairbanks and Fort Greely may toward road traffic. This takes someday benefit from an idea that is quickly gaining the place of the train-mounted momentum. The Railroad is working with the military to horn, which radiates noise over pursue extension of the track from Eielson AFB to Fort a greater area. The intent of the Greeley, near Delta Junction. The 80-mile extension wayside horn is to focus the A wayside horn is moun- could provide passenger and freight services needed in noise, so that it impacts a smaller ted at Klatt Rd. crossing. connection with a growing Defense presence in Interior area. A different whistle noise reduction system will be Alaska. The Railroad can help buy down the cost of the installed at another crossing in Anchorage later this year. project by issuing tax-exempt bonds backed by PALMER: The Alaska State Fair Intermodal Commuter guaranteed military contracts. Center in Palmer (also known as the South Palmer Station) officially opened with a ribbon-cutting ceremony August 26, the first day of the fair. The new facility offers ample parking, rider drop-off areas and efficient one- way traffic flow, along with a rail passenger shelter and roomy restrooms. It’s completion adds another piece of infrastructure to support increased rail service between Anchorage and the Mat-Su Valley. In the meantime, Mat-Su Community Transit (MASCOT) has already established the station as a flag stop, with commuter bus service Monday through Friday. the commuter bus will pick up at 6:18 a.m., arriving at the People Mover Transit Center (6th & H) at 7:20 a.m. The bus will leave Anchorage at 4:18, arriving at the Palmer Station around ARRC Chairman John Binkley and Governor Frank 5:20 p.m. For details, visit MASCOT’s web site at Murkowski ride the train to a bill-signing event for legisla- www.matsutransit.com. tion encouraging rail extensions to Ft. Greely and Canada. PRSRT STD Alaska Railroad Corporation U.S. POSTAGE PAID P.O. Box 107500 ANCHORAGE, AK Anchorage, Alaska 99510-7500 PERMIT NO. 500

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user-friendly and efficient. Please consider Please efficient. and user-friendly

revamp its corporate web site to make it more it make to site web corporate its revamp e No Yes

3 he Alaska Railroad is taking initial steps to steps initial taking is Railroad Alaska he Did the menu item and navigation make sense to you? you? to sense make navigation and item menu the Did

.alaskarailroad.com www on feedback public requests Railroad Alaska ARRC TO REVAMP CORPORATE WEB SITE WEB CORPORATE REVAMP TO ARRC Alaska Railroad Ongoing Projects:

Fairbanks Intermodal Facility Alaska Railroad Corporation 4th Quarter, 2004 Anchorage Operations Center www.alaskarailroad.com • (907) 265-2300

Anchorage-to-Wasilla 2004: YEAR IN REVIEW Track Realignment This year proves to be safe, profitable for Alaska Railroad

he year 2004 has refinery, made changes to Ship Creek Intermodal Center been both a safe their product mix and and profitable marketing strategy that one for the we believe will be very Whittier Passenger Access Alaska Railroad. positive in the long run, but for this year, volume Passenger remained similar to Improved Sidings & Signals services is the big 2003. Barged container- story, with growth on-flatcar services T in both passenger surpassed projections, as Track Integrity Detection numbers and revenue. did local coal movement. Ridership, north and south, grew by an average For export coal, we Fish Passage Improvements of 9%; and average fulfilled the steady revenue per passenger demand driven by a two- also increased. We year contract with South Palmer Park-and-Ride Center attribute this to better Korea. With the contract analytical tools, such as soon expiring, Usibelli yield management, that Coal and the State of Anchorage Rail Capacity Study helped guide our business Gravel growth was flat over 2003, but Alaska have been the volume was still substantial. decision-making process. aggressively pursuing international coal markets in the Pacific Rim Breaking it down, ridership for the Coastal and South America this year — a number of Whistle Noise Reduction System Classic (Anchorage to Seward) jumped 5%. negotiations have been initiated in Korea, The Denali Star (northbound), increased China and Chile. 10%. Surpassing all expectations, the Seward Loading Facility Glacier Discovery, including the Spencer When the railroad is profitable, our ability Glacier Raft trip or Grandview excursion, to pursue capital projects improves. grew 15% — a strong finish for a service in Foundations were poured and walls erected only its second year of operation. on two state-of-the-art facilities that will be For updates or comments on completed by spring 2005 — the new these projects, visit the Alaska Freight totals in 2004 were slightly below Fairbanks Depot and the Anchorage our customers’ original projections, Operations Center. Buildings were not the Railroad web site at however, we still moved a substantial only focus of infrastructure improvements. www.AlaskaRailroad.com amount of goods across the state. Flint We also concentrated on our track. Hills, the new owner of the North Pole (see “The Year 2004” on page 2) Certificate of transfer conditions. MOMENT IN HISTORY

The federal Alaska Railroad Transfer Act of 1982 required that a transfer report be compiled that described the rail properties, assets and liabilities of the Alaska Former Lt. Governor Jack Coghill provides input during an October 26 public Railroad, and other aspects of the meeting in Nenana. The railroad organized the meeting to discuss the proposed transfer of the railroad Environmental Assessment (EA) of the Nenana Rail Realignment project, which to the state. The report was com- proposes to realign the main track around the downtown area. Residents pleted July 14, 1983. After the were given an opportunity to review the EA, ask questions, and make sugges- tions. About two dozen residents attended the early evening meeting. State of Alaska and Federal Attendees came prepared with lively, thoughtful discussion, allowing the rail- Railroad Administration (FRA) had road to glean information important to future activity on the project. reviewed the inch-thick report, the two parties signed off on it on July 12, 1984. The above pictured certificate commemorates the THE YEAR 2004... signing by then Governor Bill The environmental assessment4 of a proposed Nenana Rail Realignment Sheffield, and John Riley, FRA. project got underway, and we expect design work to commence in 2005.

Realignment of the track5 on military installations near Anchorage was 2 substantially complete in 2004; bringing greater efficiency one step closer to this most heavily used segment between Anchorage and Wasilla. Track 2005 CAPITAL PROJECT rehabilitation, which will eventually lay welded rail across the transportation OPEN HOUSE EVENTS corridor between Anchorage and Fairbanks, was in full swing all year long.

Anchorage Open House This past year, Real Estate put a completely fresh face on our facilities 4:00 - 7:00 p.m. • January 6 improvement program. For example, our Real Estate department leased the Historic Ship Creek Depot old wooden covered bridge over Ship Creek to entrepreneurs who are in the process of renovating the historic structure into a one-of-a-kind Fairbanks Open House restaurant, which is expected to open in 2005. Ship Creek pedestrian 4:00 - 7:00 p.m. • January 13 amenities, including sidewalks and lighting, were also added in 2004. Such Fairbanks Railroad Depot land developments and facility upgrades provide a taste of what’s to come via a budgeted five-year facilities plan rolling out across the entire railbelt. Wasilla Open House 4:00 - 7:00 p.m. • January 19 Our safety record was solid again this year. We had a low injury frequency, Evangelos Restaurant the lowest injury severity rate, and we are on track to record the lowest number of derailments in recent corporate history. Seward Open House 9:00 a.m. to 2:00 p.m So, to repeat, 2004 has been a good year for the Alaska Railroad February 12 Corporation. We built solid foundations and created momentum through Railroad Terminal Building our role as an economic engine for Alaska and the communities we serve. Our success will carry us confidently into 2005. ARRC FORMALIZES CONTRIBUTION POLICY Railroad contributes to civic and charitable non-profits all along railbelt

The Railroad Board of facilities. ARRC also leases land to One of the most visible contribu- Directors recently local governments at well below tion programs is the annual United formalized principles and market value in situations where the Way campaign. In this case, it is the guidelines for providing community residents will derive employees of the Alaska Railroad corporate cash and in- certain benefit (i.e. parks, who give of themselves. The 2004 kind donations. The ARRC recreation, etc.). The railroad has United Way drive broke all records Corporate Contribution formed school business partnerships November 29, when employee Policy is available on the through which employees offer donations totaled $86,057 — that’s railroad web site. hundreds of volunteer hours each $16,000 more than the $70,000 T year in support of educational goal. The corporation matches In general, ARRC supports programs. employee donations dollar-for- charitable non-profits that enhance dollar, effectively doubling the educational opportunities, com- The railroad relies on the counsel of contribution to United Way. munity quality of life, and economic a Citizens Advisory Board (CAB) health, as well as civic non-profits when making many funding The ARRC annual contribution that provide communty services and decisions. The CAB is comprised of budget is directly linked to business development. The bulk of civic leaders who reside in railbelt corporate net income. Last year, ARRC’s contributions are in-kind. communities. They are familiar with cash and in-kind contributions from These range from donation of rail community needs and have the the corporation and its employees tickets and promotional items experience to recognize who will totaled about $1 million. (posters, pins, etc.); to use of ARRC benefit the most. The CAB meets rail service, rail cars and railroad twice per year, in spring and fall. CABOOSE IS FOCUS OF 2005 POSTER Poster signing slated for January 8 in Anchorage and January 15 in Fairbanks

he 2005 Alaska Railroad The first Alaska Railroad poster, Corporation print is created by John Van Zyle, was entitled, “The Goodbye printed in 1979. Since then, the Caboose,” by Anchorage annual poster (except 1984) has artist Betty Atkinson. The become a popular collector’s winter scene depicts a item, with requests coming from child swinging at a park all over the world. near Bootleggers Cove (just outside the Prints, posters and pins go on sale TAnchorage yard), waving at the at the Anchorage and Fairbanks passing caboose. depots in early January. The 2004 Alaska Railroad commemorative poster. posters sell for $25 and the prints Atkinson studied art at the Univer- for $50. The artist, Betty sity of Iowa, Banff School of Fine Arts in Alberta, Canada Atkinson, will be on hand at poster signing events and University of Alaska, Anchorage. She has studied scheduled for 10:00 a.m. to 2:00 p.m. Saturday, January abroad in Europe on an art study tour. Her artwork has 8, at the Anchorage Depot, and 10:00 a.m. to 2:00 earned awards and has been shown in juried exhibitions p.m., Saturday, January 15, at the Fairbanks Depot. throughout Alaska, the U.S. and England. PRSRT STD Alaska Railroad Corporation U.S. POSTAGE PAID P.O. Box 107500 ANCHORAGE, AK Anchorage, Alaska 99510-7500 PERMIT NO. 500

2004 COMMUNITY TIES MAILING LIST UPDATE We need your help to update our newsletter mailing list. Please let us know if you wish to be removed from our list. Also please make any corrections needed to your contact information. Send changes via fax to (907) 265-2365 or email to [email protected]. Name misspelled Address wrong Contact person changed Remove me from the mailing list

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Bradley.)

train photos by Red by photos train

photo and holiday and photo

Anchorage. (Cover Anchorage.

returning to returning

Festival, before Festival,

Seward Holiday Seward

guests enjoyed the enjoyed guests

activities. In Seward, In activities.

organized holiday organized

elves (employees) elves

treated to a visit with Santa himself, as Railroad as himself, Santa with visit a to treated

400 passengers bound for Seward. Children were Children Seward. for bound passengers 400 The 7th Annual Holiday train carried more then more carried train Holiday Annual 7th The

turnout lanes at the busy Peridot and 3-Mile and Peridot busy the at lanes turnout A Parks Highway. Highway. Parks

About $2.1 million will be used to construct to used be will million $2.1 About including Rex, Broad Pass and Hurricane Gulch on the on Gulch Hurricane and Pass Broad Rex, including

signage, markings and signalization at 14 crossings, 14 at signalization and markings signage,

projects in the region over the next two years. two next the over region the in projects other $3 million will be used to upgrade the warning the upgrade to used be will million $3 other

million in Highway Safety Improvement Safety Highway in million crossings without bringing other traffic to a halt. The halt. a to traffic other bringing without crossings

Northern Region announced nearly $5.2 nearly announced Region Northern and busses (and other required vehicles) to stop at the at stop to vehicles) required other (and busses and

(FMATS), the Alaska Dept. of Transportation of Dept. Alaska the (FMATS), one southbound, will allow trucks with hazardous cargo hazardous with trucks allow will southbound, one

Metropolitan Area Transportation Study Transportation Area Metropolitan At each crossing 1400-foot lanes, one northbound and northbound one lanes, 1400-foot crossing each At

t an October 2004 meeting of the Fairbanks the of meeting 2004 October an t Gate crossings on the Richardson Highway in Fairbanks. in Highway Richardson the on crossings Gate

Upgrades include turnout lanes at 2 crossings; signs and signals at 14 others 14 at signals and signs crossings; 2 at lanes turnout include Upgrades DOT HAS $5 MILLION FOR INTERIOR CROSSINGS INTERIOR FOR MILLION $5 HAS DOT