AllAll AboardAboard

FOURTH QUARTER 2015 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES Give Us a Piece of Your Mind by Feb. 5! Thanks A Lot. Not! INSIDE... Cultural Survey, Part 2 Crossings: President’s Two and a half years ago we asked every railroader to take 0022 Year-in-Review a cultural survey that measured how engaged they felt. About half of our workforce (340 employees) responded, highlight- Crossings: ing several areas where we could improve… accountability, 0033 CFO Message communication, training and social networking. It would be and Budget great to get even more responses this time! We’ve worked hard to do better in these areas, and it’s time Mileposts: to see if we are making progress. Are we on the right course, 0055 Employee or do we need to do something diff erently? Let us know! Recognition On Friday, January 22, employees got an email with a link to an online Survey Monkey questionnaire. It includes Crossings: 20 questions that repeat those asked in July 2013, plus 2 1100 Review: Safety additional questions about health and wellness. Please take and Training 10 minutes to help direct our eff orts moving forward. Your answers are confi dential. You may remain anonymous unless Crossings: you choose to self-identify. 1122 Non-rep Deadline to Respond: Friday, February 5 Reclass Study

A link to the survey is also available via our Inside Track Sidings: employee website, which is accessible from home. Launch 1133 Retirement your internet browser, type in https://insidetrack.akrr.com, Ride Guide #3 and log-in using your regular windows log-in and password. This locomotive was coated with Click on DIALOG > Employee Surveys to locate the link to snow when a southbound freight Crossings: the Survey Monkey questionnaire. train hit a snow slide on the track 1144 Marketing’s To thank employees for participating, everyone who takes near Curry the day before Thanks- Photo Contest the survey can be entered into a random drawing for some giving 2015. See more details and great prizes. Th ese include: photos on page 12. Crossings: Green Star (See “Cultural / Engagement Survey” on page 9) (Photo by Lloyd Tesch) 1144 Update

New Department Focus to help Railroad stay in a State of Good Repair Crossings: Technology: Feds require Asset Management Plan 1166 CAB and Quest

Imagine you buy a 10-year-old home with a nace, eco-friendly appliances, wooden fence around Wye of It: goal to sell it in 10 years for a profi t. You want the the backyard, wooden deck, asphalt driveway and 1188 Iron Dog PSA home to stay in good shape to attract buyers. So, 2 ladders. You note the condition of asset compo- and RR Racers you make a plan. nents. Th e siding requires no painting. Th e roof has First, you assess your property and inventory loose singles. Th e driveway has cracks. Th e fence has Sidings your home’s assets: vinyl siding, asphalt shingle 2 broken posts and one side is leaning. All major 2200 “Great Shot” roof, carpeting throughout, electrical and plumbing appliances are a decade old. Photo Winner systems, forced air heating and a 98% effi cient fur- (See “Transit Asset Management” on page 4) President’s Message: 2015 Year in Review All Aboard Last year: Values drove our actions 2 By President & CEO Bill O’Leary Safety section that was the fi rst to roll-out on the Inside Track web site; Quarterly Safety Meetings, 4TH QTR 2015 Early in 2015, the Alaska Railroad made it a and a confi dential Safety Hotline. Plus, in spring point to reconfi rm the values that defi ne us as a we hired a Training & Developing Manager to help company and as railroaders. We work safely. We are meet safety training documentation and curricula a team. We are accountable and engaged. We excel mandates (see story on page 10). at service. And, we pursue sustainability as stewards of our assets and the environment. Railroaders Engagement & Communication lived up to these values, and it showed in this year’s Because a railroader’s education begins on day accomplishments. one, the Human Resources (HR) Department’s enriched our Employee Orientation program in Promoting Our Values 2015. A new upbeat video explains what we do and Th is spring the Alaska Railroad brand evolved where we operate. Revamped materials off er a more Bill O’Leary with a new public-facing logo featuring design comprehensive overview. And the orientation room inspired by our trains. Th e logo is now included is enhanced with better presentation equipment and in just about every marketing medium, while our wall decor showcasing our route and railroad values. circular corporate seal is still valid for internal or We highlight our values because they are corporate documents. In conjunction with the refl ected in the way we take care of our own. Th at’s brand refresh, we have reemphasized our company one reason we were gratifi ed to earn an Employer values in materials and merchandise, such as the Support of the Guard and Reserve (ESGR) Pro aluminum water bottle given to each employee Patria Award for demonstrating exceptional support to showcase the new logo and fi ve values (safety, to our dozens of Guard and Reserve employees. integrity, sustainability, service excellence and Th e award was presented by the Alaska Committee teamwork). Our values, logo fi les and templates are of the ESGR national program. HR also created a available on our employee web site. Critical Incident Stress Plan to take care of employ- Dubbed Inside Track, the new internal web ees who might be directly involved in a stressful site began rolling out in 2015. It is about 80% incident, such as a train accident. Th e plan includes complete and will fi nish up in early 2016. Th e new leave options and access to psychological fi rst aid. site features areas not found on the old My Portal Th e Railroad’s Engagement Committee pursued — a NEWS section includes Procurement Weekly, dozens of goals and initiatives outlined in an En- Tech Topic bulletins, and Executive Team messages, gagement Charter this year. One goal was to increase in addition to All Aboard newsletters. And, the informal networking opportunities; hence, the PEOPLE section lists employee career milestones, Employee Family Picnic events made a comeback. awards and a photo album gallery. Railroaders and their families enjoyed the late-July Th e fi rst online photo album highlights inaugu- picnics in Anchorage and Fairbanks, as much as ral mid-December Spike Award ceremonies, which mid-December holiday parties again supported by concluded a revamp of our Employee Recognition the company. Program. On-Track Spike Awards recognize Communication was another employee priority railroaders for living the company values with and engagement focus. In addition to the internal three levels of appreciation. During the program’s website roll-out, ARRC’s executive team off ered fi rst month (December), 6 Gold, 14 Silver and 33 nearly four dozen timely updates covering subjects Bronze Spikes were presented for a great start to this from board policy, fi nance, business, laws and regu- values-based program (see story on page 8-9). latory news; to safety and security measures. Th ese Our number one value, safety, was at the fore- are all posted on Inside Track for anytime access. front of recognition, communication, engagement and learning initiatives as ARRC strives to stay Our number one value, safety, ahead of new federal requirements tied to safety. was at the forefront of recognition, Federal Railroad Administration (FRA) regulations call for safety training to be FRA-approved to meet communication, engagement and standards for curricula and trainer qualifi cations. learning initiatives as ARRC strives Given pending rules and regulations, safety head- lined a mid-February Supervisors Summit involving to stay ahead of new federal over 100 railroaders who learned more about our challenges and about tools to keep employees en- requirements. gaged and informed. Tools such as the robust online (See “2015 Year in Review” on page 6) CFO Message: 2016 Ops budget lower, capital plans larger than 2015 2016 Budgets a company-wide eff ort All Aboard By Chief Financial Offi cer Barbara Amy is about $2 million more than in 2015. More than 3 Th e 2016 Operating and Capital Budgets 60% comes from internal funding, underscoring were approved mid-December following a several how important our net income performance is to 4TH QTR 2015 months-long company-wide eff ort to lower expense our capital plan. Everyone has a role in driving our net income performance. In other words: and increase revenue. Th is was in response to early my behavior = ARRC’s results indications in the budget process that 2016 will be a diffi cult year with lower anticipated interline FTA formula funds are also key to our capital volumes due to a downturn in oil industry activity plan, providing the remaining 40% of 2016 project and uncertainty around export coal. Th e Board- funding. Our FTA formula funding went through approved operating budget refl ects a projected net some changes as a result of the new federal surface income of $9.3 million — a vast improvement over transportation bill (FAST Act). ARRC stands to early budget versions, but still $0.6 million less than receive more formula dollars than in the prior year, the 2015 forecasted net income. so we will put those dollars to work in our capital Th e 2016 budget eff ort involved more broad plan. A $28 million capital plan is a bit on the light Barbara Amy participation and a great deal more out–of-the-box side when it comes to maintaining $850 million in thinking to reach budget goals, and my thanks to all fi xed assets. Th e capital plan should really be closer who were involved in the process. With what may to $40 million per year, so we’ve got a hill to climb prove to be several years of low oil prices on the ho- with respect to operating results that can generate rizon, we must focus on continuous improvement that kind of cash fl ow. and our core values — Safety, Service excellence, At the December meeting, Integrity, Teamwork and Sustainability — in the Board also approved ARRC’s order to sustain us through this economic environ- 5-year Capital Plan (2016-2020), ment and to position ARRC to take advantage of which is posted online on Inside new revenue opportunities as they arise. In addi- Track, REFERENCES > Plans tion, we need to think about new and diff erent ways and Goals should you wish to re- to grow and diversify ARRC’s revenue portfolio view it. Again, a great many folks so we are always better positioned to weather the participated in the development of storms of a single industry downturn. our 2016 and 5-year capital plans, On the capital side, we anticipate total capital and my thanks go to everyone funding in 2016 to be nearly $28 million, which involved.

issued in December, Groups to explore more cost-cutting and revenue-building ideas the Report to State document includes ARRC forms Budget Initiative Teams the 2016-2020 Five- Year Capital Plan. During the December 17 meeting where the selling for well under $30, putting extreme pressure Alaska Railroad Board of Directors approved the on the state’s economy and therefore many of our 2016 Operating and Capital budgets, the Board was customers,” said President & CEO Bill O’Leary. advised that eff orts would continue to reduce our “Th is examination is critical if we are to reinvent cost structure and/or increase our revenue streams ourselves to maintain our current capabilities..” Toward that end, about a dozen internal teams were formed in early January. Th eir task is to further Teams and Leads: explore initiatives that can improve our fi nancial re- Infrastructure Review ...... Brian Lindamood sults. Team leaders are recruiting team members and PTC Post-implementation ...... Doug Engebretson preparing to tackle the issues. In addition, a number Facilities Consolidation ...... Paul Farnsworth of revenue initiative teams are charged with explor- Real Estate ...... Christina Hendrickson ing possible non-traditional sources of revenue. Technology/Administration ...... Jim Ratchford Th e timing on this process will vary, based upon Vehicles/Equip/Locomotive Use: ...... Chris Sopp each team’s scope of work. However, preliminary Staffi ng/Organization ...... Bill O’Leary results are anticipated by the end of the fi rst quarter Fuel/Energy Conservation ...... David Greenhalgh of 2016. Employees asked for information as part of Export Coal/South End ...... Barbara Amy this process are asked to respond as soon as possible. Passenger Revenue/Expense ...... Jesse Moose “We continue to operate in a highly challenging Employee Benefi ts ...... Susan Lindemuth fi scal environment — a barrel of crude oil is now All Aboard Transit Asset Management ...

(continued from page 1) company-wide approach to asset management yet, 4 You list likely maintenance needs: Replace 30 said Shawnessy Leon, Director, Grants Administra- shingles this year and the entire roof in 5 years. Fix tion and Asset Management. Some departments 4TH QTR 2015 broken fence posts this summer and install a chain- (Maintenance of Way, Mechanical, Signal, Facili- link fence in 6 years. Seal driveway cracks this sum- ties) have a good start on managing their assets; mer and pave it right before re-sale. Hire experts to they already have robust preventive maintenance check heating, electrical and plumbing systems the processes as a result of regulatory requirements, or year prior to re-sale and rehab as necessary to meet they have simply adopted best practices. code. Replace the furnace right before re-sale. Deep clean carpet annually and replace all carpet right Who will accomplish this task? before resale. Check ladder rungs each summer. In August, the railroad re-organized our Grants You decide to address some assets only if they & Operating Budgets Department by realign- stop working right. Performance targets include: ing fi nance-related positions under Finance and Th e fence must keep neighborhood animals out as renaming the department Grants Administration measured by a lack of holes. Th e furnace must keep and Asset Management. Th e intent was to give winter heating bills to less than $200 per month. Leon time to focus on asset management in concert You write all of this down, creating a mainte- with a team of subject experts from our asset-heavy nance and funding plan. departments. Th e team includes: Lloyd Tesch from Th e railroad is tackling a similar task, in part Maintenance of Way; Al Price from Bridges; Roy because we want to keep getting over $30 million Th omas from Engineering; Rodney Neal from in Federal Transit Administration (FTA) funding Signal; Ed Hills from Mechanical; Perry Robbins each year. It turns out we’ll lose eligibility if we from Heavy Equipment; Deanna Ottoy from Fleet don’t develop a Transit Asset Management (TAM) Management; Ron Th ompson from Mechanical program. Congress told the U.S. Department of Car Shop / TOFC; Joe Carlton from Telecom; Nick Transportation (USDOT) that its grant recipients Sullenberger from Technology; Blake Adolfae from must formally manage their assets. In response, the Projects; and Shane Maloney from Facilities. Th e FTA drafted proposed rules to tell grantees how and team is pursuing TAM development in steps: when to go about developing a TAM. Step 1 Perform a self-assessment using an FTA Moreover, grantees must use asset planning to template. Currently underway. prioritize capital project spending. Th is prioritized Step 2 Develop an asset management plan for needs list then becomes part of the State Transpor- each ARRC department and then for the tation Improvement Plan (STIP) and/or a local An- company as a whole. chorage or Fairbanks Transportation improvement Step 3 Execute the plan, and concurrently write Plan (TIP). Until a project is included in the STIP the TAM Plan document. or TIP, we can’t spend federal money on it. “Several state-level transportation organizations What is a TAM? in the Lower 48 are establishing entire departments A TAM program consolidates all of an organiza- staff ed with dozens of people focused solely on asset tion’s asset maintenance and management activities: management,” said Leon. “We can’t aff ord that. GOAL-SETTING: establish department and We have to be lean and mean in our approach and company TAM program goals and measure- develop a TAM with existing resources.” ments to determine if goals are reached. Is it worth it? INVENTORY: a detailed list of major assets needed for railroad operations — buildings, Absolutely. And not only for the federal fund- bridges, track, tunnels, locomotives and rail- ing. “A well thought-out asset management plan cars, vehicles and heavy equipment, technology just makes sense for the Alaska Railroad as part of a systems, signals / telecom / wayside equipment. capital-intensive railroading industry,” notes Leon. “Over time we can generate better information that CONDITION: What shape are the assets in? we can use to plan more eff ectively.” MAINTENANCE REQUREMENTS: repairs, rehab, renovation and replacements required to When must we fi nish the TAM? keep the asset in a state of good repair. FTA is expected to issue its fi nal rule during the TARGETS: performance targets and measure- fi rst half of 2016, and this will include deadlines. ments that show if the target is met. In the meantime ARRC has established an internal While the railroad has been doing asset manage- goal of developing the TAM framework by the end ment for years, we do not have a consolidated or of this year. Mileposts: Railroaders mark service milestones Service Awards: Fourth Quarter All Aboard 1 Year 15 Years 5 Olin Anderson ...... MOW Rebecca Gould . . Marketing and Customer Service Aaron Butterer ...... Real Estate Martin Hupe...... Mechanical 4TH QTR 2015 Kate Dueber . . . . .Advanced Train Control Systems Connor Keogh ...... ATCS William Helm ...... Mechanical Dustin Kincaid ...... Transportation Christina Hendrickson ...... Project Management Susan Lindemuth ...... Human Resources Sean Mesloh ...... Transportation Rusty Pochatko ...... Mechanical James Potter ...... Maintenance Rodney Powers ...... MOW Deanna Price...... Transportation Tom Riley ...... ATCS Carol Schlitte ...... Transportation Blaine Sears ...... ATCS Gary Smith ...... Mechanical 20 Years John MacDonald...... Guest Services 5 Years Andrew Behrend ...... Legal 25 Years Dennis Bensel ...... Safety Th eodore Lombard ...... Transportation Christopher Gaubatz...... MOW Larry Carbaugh...... Transportation Russell Grandel ...... Real Estate Leon Butler ...... Transportation Pam Reil ...... Human Resources Nicholas Sullenberger ...... Info Services 30 Years Jerry Davis ...... Transportation Christy Terry...... Real Estate Jaclyn Gutierrez...... Transportation 10 Years Jackson Dianoski...... Mechanical 40 Years Gregory Kreta ...... Transportation Al Price ...... Bridges Forrest Long ...... Transportation Deanna Ottoy ...... Finance

Mileposts: 7 people joined the railroad October - December 2015 Welcome New Hires: Fourth Quarter

Daniel Anunciacion ...... Intern Real Estate Bryan Cothren ...... Mechanical Ronald Barfi eld ...... Intern Technology Lauren Shinn ...... Train Dispatch Daniel Britton...... Technology Sasha Th elen ...... Passenger Sales and Marketing Deborah Brown...... Accounting

Mileposts: Railroaders salute 3 retirees and welcome 3 babies Home Front: Fourth Quarter

Births: New Arrivals Retirements: Fond Farewells

Journeyman Mechanic Ronald Rifredi and Conductor / Brakeman Craig “Stos” Stos- wife Kamela welcomed son Charles A., born kopf retired November 3 from the Transporta- October 26. tion Department after 39 years of service. Real Estate Leasing Technician Kellyan Journeyman Mechanic Rodney Schumacher Taylor and husband James welcomed daughter retired December 1 from the Mechanical De- Eliana, born December 3. partment after 22 years of service. Signal Maintainer Sean Robbins and wife Bridge Foreman Pat Vogel retired Decem- Nichol welcomed son Oren, born December 10. ber 3 from the Maintenance of Way, Bridges Department after 36 years of service. All Aboard 2015 Year in Review...

(continued from page 1) recognizes excellence in facility effi ciency. Th is year, 6 As of August, employees now also have 24/7 ARRC earned a Silver LEED Certifi cation Award access to pay and benefi ts information thanks to a for the Historic Freight Shed. Such successes are 4TH QTR 2015 partnership with the Paperless Pay Corporation. By highlighted in a 2015 update report to Green Star, a eliminating printing and mailing, e-stub accounts voluntary program that recognizes organizations for have the added benefi ts of causing less environmen- eff orts to reduce waste and pollution, recycle and tal impact and costing fewer dollars. conserve energy. As with previous bi-annual report eff orts, the 2015 update reveals many great environ- Curbing Costs and Impacts mental stewardship stories (see story on page 14). Several 2015 railroad initiatives lower expense. One such story relates to powering wayside We signed new labor agreement with TCU, expand- equipment in remote areas, a critical challenge in ing the number of employees who fall under a the pursuit of Positive Train Control (PTC). Th e modernized health benefi ts plans designed to curb use of relatively green solid oxide fuel cells (SOFC) escalating health care costs while off ering competi- has become the model for communications sites tive coverage. constructed in support of PTC and SOFC was Th e Transportation Department took the lead installed at several siding/switch and signal sites in on locomotive fuel effi ciency. Locomotive event 2015 as well. SOFC and other alternative power op- recorder data is collected to calculate fuel and ton- tions are routinely considered by a cross-functional nage per train — information that can help refi ne Power Application Committee formed in October engineer train-handling techniques using our loco- to investigate cleaner, cost-effi cient, lower-mainte- motive simulator and OJT. We are employing new nance energy sources for remote sites. methods to determine how many locomotives are Eff orts to bring PTC online were also assisted needed to pull a train. With calculated placement, a by state and federal actions. Early in 2015, ARRC train often manages with fewer engines, thus burn- estimated $55 million was needed to complete ing less fuel. Fine-tuning training and distributed PTC. In May, Alaska’s legislators, governor, and power strategies are saving real fuel dollars. FTA approved our request to sell FTA formula Similarly, Facilities folks are saving more energy fund-backed bonds in the amount of $37 million dollars. A Facilities Preventive Maintenance (PM) for PTC. Th e state also facilitated use of Federal Program was fully implemented to help identify Highway Administration money to fi ll the gap. problems, schedule upgrades and prioritize repairs. Later in 2015 Congress extended the deadline to 2015 was the seventh year we kept overall facility complete PTC to the end of 2018 and off ered op- utility expense below 2008 levels ($3.6 million in portunities to vie for future federal grants that could 2008 vs. $3.03 million in 2015). Th anks to an elec- defray PTC development costs. tricity monitoring system installed in the Anchorage Car Shop, railroaders nearly halved annual shop Organizational Changes power usage over two years. Plus, Anchorage facil- An ARRC Board-directed performance audit ity improvements enabled ARRC to halve natural of the PTC function confi rmed that we need even gas consumption from a decade ago —1,288,421 more robust and focused resources to support this CCF in 2006 compared to 677,500 CCF in 2015. critical safety system. Toward that end, Advanced Lighting upgrades are saving electricity and labor Train Control Systems (ATCS) and Technology costs. For example, a Heavy Equipment Shop proj- became two separate divisions, allowing ATCS ect completed in early 2015 replaced sodium and VP Eileen Reilly to direct her full attention on halide lighting with LED panels that produce the PTC. Other Technology functions are now the same amount of light for half the electrical cost. responsibility of Jim Ratchford, who was hired in Cost reductions often translate to less envi- January to fi ll the new Chief Information Offi cer ronmental impact, a concept touted by the U.S. (CIO) position. Th is year, Technology supported Green Building Council’s Leadership Energy and complete rebuilds of external and internal web sites, Environmental Design (LEED) program, which and worked with Labor Relations to develop online electronic job bidding for the Alaska Railroad Another organizational change Workers (ARW), Carmen (TCU) and Teamsters (IBT) unions. Bid boards off er a long-desired forum emerged in anticipation of agencies to view and track job openings and bid action company-wide. Mid-year Technology also added requiring passenger organizations Data and Security Services as a new department to to implement Asset Management. protect technology assets from cyber threats. (See “2015 Year in Review” on next page) 2015 Year in Review... All Aboard

(continued from page 6) December, we ran the Holiday Train one additional Another organizational change emerged in an- Saturday. 7 ticipation of U.S. Dept. of Transportation agencies Th ese trains fi lled with the help of a growing requiring transit and rail passenger organizations to social media presence. Facebook, Twitter, Instagram 4TH QTR 2015 implement a Transit Asset Management (TAM). To and other social media promotions also played a tackle this considerable project, ARRC reorganized key role in a fi rst-ever photo contest that produced the Grants & Operating Budgets Dept., renaming it enough great images to support an 18-month Grants Administration and Asset Management, and railroad calendar sold in our gift shop (see story on realigning several fi nance-related positions under page 14). the Finance Division (see story on page 1). New TAM rules aim to ensure federally-funded In the Community capital assets are kept in a state of good repair, and Th e railroad’s popularity is never more visible ARRC must comply to remain eligible for federal than at our community Open House events. In fact, grants. FTA funds are as important as ever given the Fairbanks open house was the biggest yet with the fi nancial challenges we face in 2016 and be- an estimated 5,000 attendees. For the fi rst time, we yond. Fortunately, in late 2015, U.S. lawmakers and ran out of balloons and food; and depot Gift Shop the President passed the Fixing America’s Surface sales doubled over the previous Fairbanks open Transportation (FAST) Act, providing a 5-year na- house. tionwide funding plan, and changing laws govern- In Anchorage, we helped the municipality ing highways, railroads, transit, safety, hazmat and celebrate its centennial by sponsoring a train ride other issues. FAST fi xed a glitch that had lowered for 3,000 second graders. Th e event was in line with our FTA funding in the previous surface transporta- the Anchorage School District’s second grade Alaska tion bill (MAP-21). Th is means we can expect at History curricula, which highlights the railroad’s least $3 million more annually in FTA grant money, role in establishing Anchorage. off ering some relief as ARRC seeks new funding Seward was the focus of substantial community sources. involvement eff orts as we moved forward with master planning for our Seward-based assets, thanks Business Lines to a $2.5 million grant managed by the Maritime Often regulatory actions translate to additional Administration. With local input, project visioning restrictions or requirements, but one FRA decision eff orts produced a project logo and title — Railport lifted restrictions, opening potential business op- Seward: Reimagining Travel and Trade — to carry portunities. In line with Interior Alaska’s quest for through future phases. Studies will follow in 2016 cheaper, cleaner energy, ARRC submitted a formal and culminate in a Master Plan by early 2017. request to move Liquefi ed Natural Gas (LNG) by Our community involvement took a more rail. In response, ARRC became the fi rst railroad serious turn this summer when the railroad assisted in the country to gain approval to move LNG in with response to the Sockeye fi re that ignited near ISO containers. FRA later increased the quantity of Willow. Our trains moved fi refi ghters and gear in LNG that could be moved per train, and modi- and out of fi re areas, and hauled passengers and fi ed other provisions to make LNG-by-rail more baggage that were otherwise stuck. economical and operationally feasible. Railbelt communities were the focus of a July- Despite such future opportunities, existing to-December track safety campaign that used Op- freight business overall faced challenges in 2015. eration Lifesaver’s reminder: See Tracks? Th ink Train. We experienced our fi rst full year following the Th e message was spread via news media, public Flint Hills refi nery closure that equates to far less service announcements, in editorial columns, radio fuel-hauling. Export coal dwindled to about 15% talk shows, and social media. We plan to continue of previous tonnage. Oil exploration had fueled the momentum with an even more robust campaign recent growth in our barge business, however, the in 2016 (see story on pages 17-18). nose dive in oil prices does not bode well for explo- ration in the near future. Conclusion While some freight business lines contracted, Whether promoting the safety of our neighbors, some passenger services expanded this year. Alas- working together to exceed customer expectations, kans in particular took advantage of $8-12 fares to or recognizing fellow railroaders for a job well fi ll all but two of the 16 trains traveling round trip done; throughout 2015 railroaders demonstrated between Anchorage and the Palmer State Fair. Mid- the Alaska Railroad is a values-based company that week service aboard the Aurora winter train went takes care of its own… state, customers, partners from 2 weeks in 2014 to 4 weeks in 2015, and in and employees. Mileposts: Ceremony highlights new employee recognition awards All Aboard RR presents inaugural Spike Awards 8 Th e Alaska Railroad’s inaugural Spike Awards service at $29 per week. He was also lauded for his program culminated with mid-December ceremo- role in seamlessly processing a $1 million+ move 4TH QTR 2015 nies in Anchorage and Fairbanks where six Gold of contaminated soil at the Flint Hills North Pole Spikes and 14 Silver Spikes were presented. Awards facility to a hazardous waste facility in Oregon. went to railroaders working in Anchorage, Seward, Seward Dock & Real Estate Manager Louis Whittier and Fairbanks; and from many depart- Bencardino, Whittier Dock & Real Estate ments (Marketing & Customer Service, Mechani- Manager Lester Lunceford; and Seward Port cal, Real Estate, Police & Security, Human Resourc- Manager Christy Terry were hailed as “Dock es). Award presentation photos are on Inside Track Stars” for stand-out management of dock growth under PEOPLE > Photo Album. and service over the past two years. Th e team is Gold Spikes routinely described as service oriented, professional, knowledgeable and accommodating. All serve as Equivalent to the previous President’s Award, the our port community ambassadors, representing the Gold Spike is presented annually to employees who “face” of the railroad. In Seward, Bencardino and clearly stand out for above-and-beyond demonstra- Terry helped drive a 24% increase in passenger and tion of our company values. freight dock revenue from 2013 to 2015. In Whit- Passenger Fleet Maintenance and Support tier, Lunceford’s diplomatic handling of challenging Supervisor Mark Baehm demonstrated superior issues contributed to steady DeLong Dock revenue performance over the past year in his new supervi- improvement with 50% growth from 2013 to 2014 sory position. Th e supervision transition has been and 77% revenue increase from 2014 to 2015. seamless, ensuring 100% passenger equipment availability and regulatory compliance, and a high Silver Spikes level of customer service. During 2015’s fourth Equivalent to the previous Spotlight Award, quarter, Baehm used his 25-year background in pas- the Silver Spike is presented any time to recognize Mark Baehm senger equipment mechanics to perform a formal above-and-beyond demonstration of our values. 2015 Individual passenger fl eet assessment, which ARRC had not Gold Spike Freight Customer Service Rep Kody Anderson accomplished before. Th is completed task is impor- demonstrated excellent service and teamwork in tant to meeting federal agency mandates to show we shepherding a complex and profi table freight job. can keep our capital assets in a good state of repair He and Fairbanks counterpart Dale Rageth were with comprehensive asset management. essential to the seamless and effi cient processing Lead Crew Dispatcher Sandra Linn demonstrat- of a $1 million+ move of contaminated soil from ed a selfl ess commitment to the Crew Dispatch of- the North Pole Flint Hills location to a hazardous fi ce. She met her own job responsibilities while also waste facility in Oregon. Professional competence, doing the work of a day-shift employee who was courtesy and good communication ensured timely out on Workman’s Compensation. Covering this signatures and approvals, meticulous tracking and position saved the railroad real money by avoiding documentation, and fl awless regulatory compliance. 8+ hours of overtime per week. In addition, during While inspecting a freight train in the Anchorage Sandra Linn summer 2015, Brakemen were not available to work Yard, Carman Mike Reed identifi ed a diffi cult- 2015 Individual Terminal jobs, and the uncertainties could have to-spot crack in a wheel bearing on a customer’s Gold Spike resulted in a diffi cult transition. Yet Linn coped like UTLX Tank Car. Th is took attention-to-detail and a pro, and when Brakemen returned to Terminal an experienced eye. If not discovered, the damaged jobs at summer’s end, she ensured another smooth bearing would have become hot. It might have been transition. Whether orchestrating a job bulletin caught by a hot-bearing detector along the route, rush or managing seasonal changes, Linn delivers but stopping a train out on the line usually results stellar internal customer service. in signifi cant delays. An undetected crack can also Fairbanks Freight Customer Service Represen- evolve into a break, causing a wheel seizure and car tative Dale Rageth was nominated twice by dif- derailment. Catching the problem in the yard, close ferent departments for diff erent achievements. He to the Car Shop, was by far the best outcome. saved the railroad $8,000 annually by investigating Human Resources Benefi ts Rep Barbara Rogers mailing procedures that seemed too costly. As a re- was noted for her consistently excellent treatment of Dale Rageth sult, ARRC is scanning and emailing timesheets for fellow railroaders, demonstrating genuine care dur- 2015 Individual timely delivery to the Anchorage-based Timekeeper. ing often stressful situations and complex issues. She Gold Spike Th is eliminates the need for overnight mailing at tenaciously learns new skills to remain a profi cient a cost of $182 per week, replacing it with regular (See “Inaugural Spike Awards” on next page) Inaugural Spike Awards... All Aboard

(continued from page 8) and solid, self-motivated work ethic that is evident beyond his Terminal Mechanical Servicing (TMS) advocate and information source. She is known for role. He vigorously pursues new skills while embrac- 9 her persistence in fi nding solutions and answers ing new roles. He communicates eff ectively with for employees and family members. Rogers makes 4TH QTR 2015 any department and decision level. He mentors an eff ort to remembering employee milestones and less experienced crew and demonstrates a genuine learn family member names (even the pet!). Th ese concern for colleagues and customers. small gestures often leave a big impression, making it abundantly clear that she cares. Anchorage Holiday Party co-Coordinators Nancy Davis (Signal & Telecom), Keri Meszaros Fairbanks Depot Services Associate Alesia (Mechanical), Angelina Lott (Transportation), Salmela helped to improve our annual print/poster and Rob Walker (Supply Management) volun- sale-and-signing event, starting with a suggestion teered countless hours to organize the considerable to include our event in the Fairbanks First Friday logistics involved with producing an exciting and art appreciation program. Although outside her job universally appreciated gathering for fellow railroad- responsibilities, Salmela provided local insight, re- ers. Th e foursome was also highly instrumental in searched First Friday contact information, and com- organizing the equally festive and memorable 2014 Louis Bencardino piled a list of local catering vendors. Th e railroad’s holiday party. Likewise, in Fairbanks, Brett Brown 2015 Team participation in the December 2015 Fairbanks First (Transportation) and Katrina Martolano (TOFC) Gold Spike Friday was an unqualifi ed success with attendance co-coordinatedof a great holiday party for North and gift shop/ticket window sales double that of End railroaders and were similarly recognized. 2014. Plus, ARRC gained exposure to a previously untapped art market. Five Police & Security (P&S) Department members were hailed for actions beyond railroad prop- South Terminals Manager Pat Volmer went out erty boundaries to assist within the community, of his way to help a Discovery Channel fi lm crew augmenting local emergency responders, averting remain safe while obtaining footage they needed to serious danger and even saving lives. Fairbanks tell the Canada-to-Alaska rail-barge story in Whitti- Special Agent (SA) Kathy Kraft rescued two er and Anchorage this past September. Th e crew was people whose car went into the ditch at -40 grateful for Volmer’s knowledge of rail and barge temperatures; and responded to multiple vehicle operations and his considerable Transportation con- accidents. SA Johnny Evans helped rescue a Boy Lester Lunceford nections. Quality fi lm-making can be an eff ective Scout who broke his leg while hiking near Curry. 2015 Team and authentic information and marketing tool. Also Th e department helped rescue two men and a boy Gold Spike interviewed by the fi lm crew, retired ARRC Execu- who capsized their boat while navigating the Placer tive VP Corporate Aff airs Jim Blasingame wrote our River. SA Jason Nielsen was the fi rst on-scene CEO to say he was very impressed with Volmer. to render aid to an accidental gunshot victim in Conductor Keith Webster was commended for Palmer. Port Security Manager Doug Regan overall excellent job performance and attitude. and P&S Program Manager Robyn Simmons Inside and outside the Transportation Department, kept railroaders and port operations secure and in there is general consensus that Webster is simply compliance, working closely with federal agencies an outstanding employee with a clean safety record and local port and harbor authorities.

Cultural / Engagement Survey... Christy Terry 2015 Team (continued from page 1) His-and-Her logo ball caps (“distressed red” and Gold Spike “faded black”) Glacier Discovery for 2 tickets (for family/friends) Kids Desk Kit (pencil bag, logo erasers, calcula- 7-inch HD Fire Kindle with logo case tor/ruler and letter opener) Lunch with CEO & COO — invite 2 co-work- ers to join you to dine with the head honchos To participate in the drawing while maintaining your anonymity, obtain the key word provided at $50 gift card — choose from among restaurant, the end of the survey, and email that word to Toni sporting goods or grocery retailer Curry at [email protected]. Key words will change Deluxe Home Tool Kit periodically throughout the 2-week survey period. 2016 signed ARRC commemorative print Th ank you for helping to make ARRC a great place Old fashioned logo alarm clock to work! 2016 ARRC commemorative calendar Training: Mentoring, Customer Service, Instruction & Leadership All Aboard New Training Programs and Curricula 10 Training and Development Manager Toni Curry techniques and procedures that can help a relative made good progress on a number of training fronts, newcomer succeed and grow in their position. 4TH QTR 2015 developing the curricula and course materials for “It’s important for mentors to have the time several training programs, and laying the ground- and inclination to provide this type of guidance,” work to track railroader training. said Curry. “Th e commitment must go both ways Two new courses are already in use. A 2- to in order to have a truly successful mentorship. Th is 3-hour Customer Service class can be tailored to program will help a committed mentor and mentee fi t the needs of various groups. Four departments get the most out of their association.” completed the Customer Service training in 2015 A 12-module Supervisor / Manager seminar is — Accounting, Real Estate, Supply Management 75% developed. Railroaders have long asked for for- and Human Resources. More classes are planned in mal coursework to hone skills that promote eff ective 2016. leadership and good people management. Curry ex- Similarly, an updated Sexual Harassment course pects to fi nish seminar development by early spring, Toni Curry is available and managers may request presenta- and envisions a schedule that allows supervisors (or tion to their departments or units. Four Anchorage soon-to-be supervisors) to self-pace completion. Shops Mechanical groups completed the 1-hour Curry has also been working with the class in 2015. Technology Department to choose a Learning Two completely new programs should be ready Management System (LMS). A widely-used LMS to go during the fi rst half of 2016. One capitalizes by Cornerstone has been purchased under a 3-year on the remarkable knowledge base among long- contract and will be implemented later in 2016. term railroaders who mentor. Th e other teaches Cornertone’s software is intuitive, user-friendly and front-line leaders how to eff ectively supervise. expandable. Curry fi rst plans to upload operational A formal Mentoring Program is under review by safety training data that must be tracked by the senior managers. Th e program will off er guidance, 2018 deadline established by the Federal Railroad a standard process, materials and forms to support Administration. Next, the system will incorporate mentoring relationships. Curry envisions her role as other regulatory training (such as OSHA-man- a facilitator, checking in with a mentor periodically dated), and then fi nally professional development to assess and track how a mentorship is progress- training will be added. Eventually, the LMS will ing. Mentoring relationships can last between two provide a centralized and standardized system for months to a year or more, as experienced railroad- documenting all of the training that each railroader ers share on-the-job insight, and demonstrate needs and accomplishes.

Safety Department recaps program highlights from last year 2015: Safety’s year in review

By Tom Covington, Safety Director employees. Full plans are available on the Safety section of Inside Track (RESOURCES > Safety 2015 saw many changes and improvements in > Safety Plans & Programs) the overall ARRC safety program. Many may wonder how the Alaska Railroad

Incident reporting increased for a more accurate fared when considering injuries and incidents that Tom Covington picture of the types of incidents that occur. An occurred in 2015. Injury severity — in terms of Internal Control Plan for Accident & Incident resulting lost and restricted work days — trended Reporting was Federal Railroad Administration down. In fact the number of lost days in 2015 was (FRA)-approved mid-year. nearly half (53%) that of 2014. Likewise, 2015 90+ Workplace Safety Audits were conducted to included about one-third (38%) fewer restricted ensure compliance with Occupational Safety & days compared to 2014. Health Administration (OSHA) standards. While the overall trend is improving, ARRC still Five newly updated safety programs (Equipment must work on lowering incidents and injuries, as Lockout/Tagout, Fall Protection, Hazard Com- shown by these graphs (page 11). “Th e Safety De- munication, Hearing Conservation and Respiratory partment is a resource to help departments resolve Protection) were published, and Safety launched safety issues,” said Safety Director Tom Covington. an awareness training program to inform all (see “Safety Year in Review” on page 11) Safety Department year in review... All Aboard

(continued from page 10) Injury Severity: “Our goal is to provide the best safety recom- 11 mendation and assistance — internally or with Lost and Restricted Work Days external expertise.” 4TH QTR 2015 Bottom line: employees are expected to take 1,600 1,422 2014 an active role in ARRC safety programs. “Creat- 1,400 ing a Job Safety Analysis (JSA) of a job’s hazard- 2015 ous tasks provides a clearer picture of the dangers 1,200 and how to prevent them,” said Covington. “Th e 1,000 employee-driven JSA program is one of the best 841 tools a railroader can use to make his or her 800 755 workplace safer.” More information about JSA is 600 515 on Inside Track’s SAFETY > Safety Reference Days of Number Library > JSA Library. 400 200 Coming up in 2016… 0 Lost Work Days Restricted Work Days Safety System Program Plan (SSPP) — Safety made great strides in creating the mandated ele- ments for an SSPP that will eventually replace our Safety Management System (SMS) document. FRA Reportable Incidents Safety will work internally and with an experi- by Type enced contractor to fi nish the SSPP, so it is ready 50 48 to submit for approval when pending FRA regula- 2014 tions require it. 45 2015 41 49 CFR Part 243 Railroad Safety Train- 40 39 ing — Th e Federal Code of Regulations (CFR) 35 pertaining to Transportation (49) recently added 31 stipulations for training, qualifying and oversee- 30 ing safety-related railroad employees (Part 243). 25 Aff ected ARRC departments will continue to work with Training & Development Manager 20 Toni Curry to fulfi ll the code requirements and to

Number of Incidents of Number 15 develop a Learning Management System to track and store all ARRC training information. 10 6 6 OSHA Compliance — Safety staff will continue 5 3 3 0 1 facility audits to ensure compliance with OSHA 0 Trespasser On-Track Illness Injury Total standards, as well as safe work environments in all Fatality Incident settings. All Safety Incidents, by Type 80 75 2014 70 2015 64 60 52 50 40 42 40 40 31 30 24 20 Number of Incidents of Number 20 18 13 10 7 4 5 0 Environmental First Aid Illness Injury Near Miss On-Track Property Incident Damage Railroad digs out freight train after big snow slide near Curry All Aboard Pre-Thanksgiving slide traps crew 12 Conditions were ripe for snow slides the day slide zone, and began tackling the mountain of before Th anksgiving 2015, and sure enough the snow, digging and plowing it off the track shovelful 4TH QTR 2015 white stuff let loose in multiple sluff s along a 2-mile by shovelful. By 4:00 p.m. MOW reached and freed stretch of track and in one larger slide covering 200 the train crew, transporting them to Anchorage. Below-left: Railcars feet of track at Milepost 246.7, just south of Curry. Unstable snow conditions prevented further are buried with snow A southbound freight train was heading through work on Th anksgiving , but crews were back at it from the slide. the area at about 7:00 a.m. after the snow sluffi ng Friday. Mechanical and Transportation coordinated Below-right: MOW occurred, trapping the crew onboard. to free the snow-packed locomotive and railcars and heavy equipment Maintenance of Way, Heavy Equipment, Trans- got the train moving again with a fresh crew. Th e shovels snow to portation and Mechanical departments responded. railroad was back in business by 10:00 p.m. Friday, clear the tracks. MOW mobilized snow-clearing equipment to the November 27.

(Photos by Lloyd Tesch)

HR to implement study fi ndings, develop new evaluation process in 2016 Non-rep reclassifi cation study status

About a quarter of the Alaska Railroad’s On a positive note, the study’s salary survey employees are not represented by a union. Many confi rms that ARRC non-represented salaries — of them may be wondering what became of the with only a few exceptions — are very competitive Classifi cation and Compensation Study for Non- within comparable employment markets. Forty- represented positions that began in fall 2014, and nine positions were surveyed with results indicating Susan Lindemuth fi nished up this past June. Implementing the Railroad non-rep position salaries average about study’s fi ndings remains a high priority for the 103% of salaries for similar positions in the market. Human Resources (HR) Department, according to Th erefore, salary adjustments — up or down — HR Director Susan Lindemuth. “Th is has been a will not be necessary for the vast majority of non- large undertaking, which is still in the works, and represented positions. patience is appreciated,” she said. In line with the classifi cation and compensation Implementation entails: study eff orts, HR has been revising the non-repre- editing and fi nalizing the position descrip- sented performance evaluation process and form. tions drafted by the Segal consultants; A draft revision is just complete and under review. Th e current plan is to implement non-rep evalua-

revising the non-represented compensation tion revisions during the fi rst quarter of 2016. policy and procedures document; First quarter plans also call for implementing updating the non-represented salary schedule the new Non-rep Compensation Policy and Procedure, (pay grade structure, and minimums and adopting the salary structure, and assigning posi- maximums); and tions to the new salary ranges. Updated position assigning the new pay grades to the non- descriptions should also be completed by the begin- represented positions. ning of the second quarter 2016. Crossings: HR continues to off er “Milepost #3” on retirement journey Ride Guide for railroader retirement All Aboard To continue the journey begun in 2nd and 3rd purpose is during each stage of your life, and 13 quarter 2015 All Aboard issues, here is the next Mile plan accordingly. When you plan for retire- Post in your travels toward a successful retirement. ment, make it the “next” stage in your life…not 4TH QTR 2015 “Every journey begins with the fi rst step!” the end stage! 3. MILEPOST 3: PREP THE ARSENAL! If you Learn from the mistakes of others. Th ere aren’t already investing, now is the time to start. is no reason to repeat the mistakes of others; Hopefully by now you have started, or established, instead, learn from them. Many people sold at your fi nancial infrastructure. Th is means getting the bottom of the market in early 2009. Th ose your debt under control (or gone), setting a budget folks locked in their losses. If they had been and creating a fully-funded emergency fund. Part patient and waited a few years, they would have of your budgeting should include carving out a seen tremendous gains instead. Don’t panic just place for your investments. Your ARRC 401(k) Plan because everyone else is panicking, and pay at- tention to the mistakes that bring others down. is one of those places! Theresa MacLeod In a recent article, Jeff Rose, CFP and founder When you learn from the mistakes of others, of GoodFinancialCents.com noted that Warren you are less likely to fall victim to them. Buff ett is well recognized as one of the greatest 4. Don’t invest in the exotic. Buff ett talks investors of our time. Mr. Buff et’s insights and ideas about how he keeps enough cash on hand to off er sage advice as you consider not only your meet his upcoming needs but other than that, retirement future, but all the stations along the way. he keeps his money working for him. What he 1. Invest in the long term. Many of us are doesn’t do is invest in exotic assets. He stays short sighted. We panic at every market crash away from gold and currencies, and also avoids or try to chase a quick buck. However, Buf- the complicated credit default swaps that he fett teaches to invest for the long term. When famously referred to as instruments of mass he buys a company, he looks at the long term fi nancial destruction. You can be the same Pamela Reil value, not something with splashy, short term boring investor. Focus on stocks using index returns. He looks for something with staying funds, and you will likely build wealth over time power. When investing for your future, you without the stomach-churning volatility and need to think the same way. You may not be risk that comes with more exotic assets. able to buy whole companies, but you can in- Keep in mind that the ARRC 401(k) Tax- vest for the long term by buying into the market Deferred Savings Plan off ers not only index funds, through index funds, then stay in for the long but a well-diversifi ed portfolio of Target Date Funds haul! Your future self will thank you. and actively managed funds. Along with access to (An index fund is a type of mutual fund with a the Vanguard Managed Account Program, your portfolio constructed to match or track the compo- option to be a hands-on, or hand-off investor, rests nents of a market index, such as the Standard & in your hands! Poor’s 500 Index (S&P 500). An index mutual Look in upcoming communications for the next fund is said to provide broad market exposure, low Mile Post on the journey to a comfortable and suc- operating expenses and low portfolio turnover.) cessful retirement. As always, feel free to call or stop 2. Have a purpose. Buff ett talks about the in and see Pamela Reil, Retirement Specialist (ext. importance of having a purpose. You need to 2273), and/or Th eresa MacLeod, Manager ARRC have an idea of what you want to do that gives Corporate Retirement Plans (ext. 2346) for forms, meaning to your life. Th ink about what your help, or to answer questions.

Wye of It: 149 Railroaders pledged contributions to United Way 2015 campaign raises nearly $51,000

Th e 2015 Alaska Railroad Employee United $50,000 or better. And although the number of Way Campaign wrapped up in early November 2016 donors was 33 fewer than last year, 149 do- after nearly two months of activity that generated nors was the second best participation since 2010. almost $51,000 ($50,989). While the pledge tally Moreover the Day of Caring Food Drive in Sep- was lower than tallies for each of the previous fi ve tember generated a record-breaking 1,136 pounds years, railroaders did maintain a streak of donating of food and $200 in cash. Gen-er-ous! New Jersey railroader wins fi rst “Catch the Train” photo contest All Aboard Best photos featured in new calendar 14 Congratulations to North Arlington, New Jer- Jersey Transit — and he came up for his fi rst visit to sey, resident Michael W. Sullivan, who was “elected” Alaska last summer. His image depicts the Glacier 4TH QTR 2015 as Grand Prize Winner of the railroad’s fi rst-ever Discovery train traveling along Turnagain Arm. Th e Catch the Train Photo Contest. Votes cast online photo drew a whopping 6,402 votes via the Alaska were tallied by the deadline January 11, when the Railroad Facebook page. As the top vote-getter, Sul- Alaska Railroad announced a top prize winner. livan receives $1,500 cash and roundtrip-rail travel More than 800 photographs were submitted for four anywhere along our routes. His image from photography buff s and railroad fans from will be distinguished on the cover of our upcoming all over the world. Th e contest was hosted on key Alaska Railroad 18-month calendar. ARRC social media sites, including Facebook, Twit- All of the fi nalists receive rail travel for four on Grand prize winning ter and Instagram. A panel of judges narrowed the a trip of their choice. Plus the photos submitted by photo (right) will fi eld down to 18 fi nalists based on artistic merit, each of the 18 fi nalists will grace one of the months be featured in the originality, subject and style of the photo submit- in the calendar. Th e 2016-2017 Alaska Railroad 18-month new 2016- ted. From these fi nalists, the grand prize winner was Calendar will be available for purchase during 2017 calendar shown selected by a popular vote. summer 2016. Finalist photos can be viewed on in the Jan. 11 face- We hear through the grapevine that Sullivan the Alaska Railroad Facebook page (www.facebook. book post below. is a fellow railroader — a yardmaster for the New com/alaskarailroad).

2015 update report reveals ongoing environmental stewardship eff orts Railroad updates Green Star status

Every other year, the Alaska Railroad provides and external website rebuilds in 2015 will foster an update to Green Star, a pro-business pro-envi- electronic communications. ronment program that recognizes organizations for eff orts to reduce waste and pollution, recycle and Recycling conserve energy. A member of Green Star for more ARRC continues discounted transport trailers than two decades, ARRC’s 2015 Green Star report carrying recycled materials bound for the Lower revealed many environmental stewardship eff orts. 48 in partnership with the Alaskans for Litter Below are highlights. A summary is on Inside Prevention & Recycling (ALPAR). From 2010- Track > RESOURCES > Green Railroading. 2015, ARRC hauled nearly 40 million pounds in 723 containers ($105,000 value). Waste Reduction In 2015, ARRC, Anchorage Water & Wastewater Replaced nearly all of the fl eet of 30 copiers with Utility, HDR Engineers, Central Environmental modern eco-friendly models. Inc. (CEI) and Central Recycling Services (CRS) Enhanced electronic communications: Commu- collaborated to use 500 tons of recycled glass ag- nity Ties newsletter went entirely online in 2014. gregate as the bedding material for 1,100 feet of As of August 2015, most union job bidding is pipe as part of ARRC’s Ship Creek tenant sewer via online bid boards. As of November 2015, extension project. employees receive Paperless Pay e-stubs. Internal (see “Green Star update” on next page) Green Star update... All Aboard

(continued from page 14) provements with construction working permit and renewed trail location permit. 2013-2015 In late 2015, ARRC CFO Barbara Amy was 15 supported Anchorage’s Kings Landing project to named to the ALPAR Board of Directors to assist construct pedestrian amenities and river access at 4TH QTR 2015 and guide the organization as a volunteer leader Ship Creek on Railroad land. Supporting Fair- focused on fi nances and fund-raising. banks North Star Borough’s (FNSB) Chena River Walk project by granting a permit to use railroad Energy Conservation property; FNSB design is underway. Kept annual utility expense to below 2008 levels. Purchased locomotive simulator in 2013 to Completed Facility Preventive Maintenance facilitate in-house training, including fuel program, to include plans that help identify and conservation. Enhanced Fuel Conservation ef- repair energy leaks. forts through new ways to analyze locomotive By installing an electricity monitoring system in power needs, train-handling classes, data-driven the Anchorage Car shop, ARRC halved annual simulator-based locomotive engineer training, electrical consumption (1,400 KWH in 2013 to and updated tracking and presentation materials. 695KW in 2015). 2013-2015, following a 5-year plan to replace Replaced halide/sodium bulbs with LED panels older vehicles with emission-compliant and in the Heavy Equipment Shop, saving 28 cents alternative fuel (fl ex fuel) vehicles. Since 2013, per hour per lamp since 2014. retired 39 and sold 26 older under-used vehicles, Facility repairs and heating conservation projects reducing fl eet by 30% to fewer than 200. Fleet have cut natural gas consumption by 45% in includes four (4) compressed natural gas (CNG) Anchorage facilities over the past decade (1.3 vehicles; three are bi-fuel (operates on CNG or million CCF in 2006 vs. about a half million gasoline) and one is CNG only. CCF in 2015), despite the addition of 96,000 Since 2013, sold 38 pieces of heavy equipment square feet of facility space to heat/manage to reduce overall fl eet. Replaced some equipment PTC communications sites use solid oxide with emission-compliant models that meet Fed- fuel cells (SOFC) as a greener fossil fuel power eral Clean Air Act requirements. Purchased six source. One SOFC site in 2013, three in 2014- new Tier-3 compliant pieces in 2013-2014; four 15 and more in the future. Tier-4-Interim compliant pieces in 2014-2015; and three Tier-4-Final compliant pieces in 2015. 2013-2015, upgraded three defect detector way- side equipment sites from a small wind-and-solar Future Goals case to full shelters housing more effi cient wind/ solar equipment. SOFC also replaced diesel gen- Eliminate 50-100 desktop printers in favor of erators at two wayside equipment sites in 2014, more effi cient and programmable Konica copiers. and eight signal / switch /siding sites in 2015. Purchase and use larger percentage of recycled Formed a cross-functional Power Application paper. Committee in October 2015 to pursue clean, All Aboard newsletter to entirely electronic distri- cost-effi cient power sources to replace diesel bution generators where feasible at remote sites. Reduce plastic bottled water purchases and look 2013-2015, expanded direct round-trip inter- into potential for recycling in the fi eld. community passenger service to meet short-term Pursue several facility lighting projects to replace transit needs. Th is includes: old fi xtures with much more effi cient LED Fair Train fare reduced 80% and train fre- lighting. quency increased to entice sold-out service Install SOFC as the main power source for a new between Anchorage and Palmer State Fair at communication site, and convert two existing the end of summer, taking an estimated 125 sites from diesel generators to SOFC power. cars off the road, saving 5,000+ gallons of fuel. Install SOFC at eight (8) sidings (for signals and Mid-Week Winter Train off ers reduced fares switches) between Curry and Cantwell). and more convenient additional Tuesday- 2016-2018 purchase and install replacement to Wednesday service in February and March. obsolete GPS system, to provide real-time track- Expanded from 2 weeks in 2014, to 4 weeks ing of route, speed, stops. Goal is to improve in 2015 and 6 weeks in 2016. vehicle operations and obtain DOT-compliant Pedestrian accommodations: 2013, supported reports and other data useful to promoting safety Municipality of Anchorage Coastal Trail im- and fuel conservation. Technology board helps to ensure smoother change process All Aboard Change Advisory Board established 16 During the last quarter of 2015, the Technology Eventually, this calendar will be on Inside Track Department established a Change Advisory Board where everyone can access it. 4TH QTR 2015 (CAB) to review plans for technology changes. Th e An example of a recent Technology change CAB does not decide which Technology projects executed under new CAB procedures took place in will occur; rather, it oversees how the changes will early January on our new Corporate Website imple- take place. Th is is very similar to OSHA’s function mentation. Th is was a complex project involving — they do not care what work we do, just so long the coordination of multiple Technology depart- as we do it safely. Th e CAB should not be confused ments and additional resources working in Passen- with the Technology Advisory Committee (TAC), ger Services. Th e initial change plan was developed which is the new inter-departmental group that and brought to the weekly CAB meeting for review. reviews proposed future technology investments. During that meeting, an omission in the plan was Often changes to a technology system start with identifi ed and the plan needed to be reworked a call to the Help Desk, or with a suggestion by to accommodate the new information. Without another department wanting to improve a process. this, the go-live would have actually failed and we In response, a team of technology folks develop a would have needed to roll back to the old website. formal plan to execute the change. Th is technical Although the go-live was challenging and had some document outlines the risk (user impact), resourc- diffi culties, things would have been far more dire ing (staff needed), system importance, stakeholder had the CAB not caught the omission. communication, what exactly needs to be done, Th e CAB meets every Friday morning. It is how to test the change, and roll-back plans (in case comprised of CIO Jim Ratchford, Change Manager the change doesn’t work). Paul Willman, Systems & Applications Manager Th e CAB determines if the change document Beth Fleischer, Data & Security Manager Glen Bie- covers all the bases. Once a change plan is approved gel, Telecom Director Joe Carlton, and Technology and the responsible technology team is ready to pro- Infrastructure Manager Nick Sullenberger. Quest Executive ceed, the project is placed on a Change Calendar. Director Jon Vaughn presented the award during the 2015 Railroad wins Quest International User Group “Newcomer Award” Collaborate JDE User Group honors Railroad Conference in Las Vegas. Accepting, L-R, HR Director In 2015, the Alaska Railroad won a Newcomer Lindemuth, Michelle Maddox, Wendy Richerson, Susan Lindemuth, Award from a formal community of people and Jim Steele #2 and Paul Willman. In pushing to Payroll / Accounts organizations that use JDEdwards (JDE) and other get JDE implemented, this team realized the value Payable Assistant Oracle-based software. Th e Quest International of reaching out to a larger community, and made Controller User Group (Quest) off ers a forum to connect and the time and learning commitment to do so. For Michelle Maddox, learn in order to get the most out of the software example, in both 2014 and 2015 ARRC sent an in- JDE Project / investment. Each year, Quest presents distinguished volved contingent to the major annual Oracle user Technology Strat- service awards to group members. Typically, the conference (Collaborate), and to the JDE user com- egy Manager Paul Newcomers Award goes to an individual, but this munity conference (InFocus). Several JDE Team Willman and Busi- was the fi rst year that a company earned the honors. Leads also attended executive forums and served in ness Systems Analyst Th e award recognizes a high level of engagement. user group leadership roles. As a result of the award II Drew Dekreon. In fact, ARRC’s commitment was deemed “best” in recognition, Quest now tends to listen even harder relation others that had joined within the past year. to ARRC input and to respond even more quickly ARRC’s to inquiries. commitment was An Oracle platinum partner, Quest is the driven in large world’s number one JDE user group with nearly part by the JDE 55,000 members. Quest facilitates three annual Team Leads, conferences, along with multiple special interest including Bar- and advisory groups that work directly with users. bara Amy, Drew Quest acts as a liaison with Oracle, bringing user Dekreon, Robert concerns to software developers who improve the Gonzalez, Sandy products. Quest has an extensive library of online Holmes, Shaw- JDE information, and actively facilitates the online nessy Leon, Susan JDE user community. Those intersted in donating to Engine No. 557, visit AlaskaRails.org 557 support comes from near and far All Aboard As of the end of 2015, Engine No. 557 Restora- 557 Co. Secretary/Treasurer Dick Morris and 17 tion Company (557 Co.) President Patrick Durand Board Member Maria Keff er off ered up $5,500 to reports that the project is coming along thanks to spur a match-challenge fund-raiser in December, 4TH QTR 2015 a variety of fi scal benefactors — from local Alaska generating at least $29,000 ($8,466 came from residents to fans overseas. In some cases, recent outside of Alaska and $200 from Germany!). It was donors have a connection to the Steam Engine 557 the most successful and the State of Alaska, and in other cases, simply a short-term fund- love of history and trains. raising eff ort yet. For example, Georgetown Railway Equipment Along with Company (GREX) President & CEO William countless hours con- “Wiggie” Shell and GREX Executive Chairman tributed by skilled Chris Aadnesen generously contributed $5,000 in and dedicated vol- December. Aadnesen was the Alaska Railroad’s unteers, funds raised President & CEO when the 557 returned to Alaska from supporters is in 2012. the project’s life- John and Joan Gray of Bethesda, MD, spon- blood. Work on the sored 20 tubes with a $2,000 contribution. Gray engine can only move is with the American Association of Railroads in forward as fast as Washington, DC, but he grew up with the Alaska funding is developed. Railroad where his dad Tom Gray worked his way Th e estimated cost to up from section gang member to management. complete the project Other recent donations were made by the res- and ready No. 557 toration project’s nearby Mat-Su Valley neighbors. for service in 2018 is A generous personal check for $3,000 came from $430,000. Scott, a local valley resident who prefers to remain For detailed anonymous. Dave and Judy Snyder and their son progress reports and a direct donation link, visit Recent Donors Logan dropped off $1,000 on December 30, mark- www.AlaskaRails.org No. 557 and click on the GREX President ing the second year that the owners of Diversifi ed Info button. William “Wiggie” Tire have made a major donation. Shell and GREX Executive Chairman Card helps railroaders explain why to stay away from tracks (and former ARRC President & CEO) “See Tracks, Think Train.” Brochure Chris Aadnesen pose with a print depict- As part of the Alaska Railroad’s ongoing eff orts Lifesaver Alaska (OL-AK) chapter. For more infor- ing Engine No. 557. to educate the public about the dangers of mation on Operation Lifesaver in Alaska contact being on or near railroad tracks, Dwight West at 265-2691. a 4-by-9-inch card has been de- West is also the contact veloped to off er information and for in-the-fi eld railroaders, in to promote the national Operation particular, to obtain a small Lifesaver message: “See Tracks, inventory of cards that may Th ink Train.” be distributed to members Operation Lifesaver is a non- of the public found in our profi t, international continuing right-of-way. Railroaders public education program fi rst company-wide can also established in 1972 to end colli- obtain cards from the sions, deaths and injuries at railroad Corporate Aff airs offi ce crossings and right-of-ways. Th e by contacting External programs are sponsored cooperatively Aff airs Manager Tim Railroaders are by federal, state and local government Sullivan at 265-2357 welcome to use the agencies, highway safety organizations ro SullivanT@akrr. “See Tracks. Think and the nation’s railroads. In Alaska, the com. Train” Brochure Alaska Railroad Corporation sponsors all Card (pictured) to activities associated with the Operation help educate friends and neighbors. Renowned snowmobile race helps promote safety along our tracks All Aboard Iron Dog PSA kicks off campaign 18 During the holidays, the railroad teamed up with ARRC’s 2015 public safety campaign to pro- with Operation Lifesaver and Iron Dog to produce mote citizen safety around tracks and trains. 4TH QTR 2015 a winter safety public service announcement (PSA) In addition to the snowmobile PSA, elements for television and radio that will air during coverage the 2016 campaign include: of the 2016 renowned snowmobile race. Social Media — Safety Saturday messages, other Th e PSA stars Cory Davis, 27, a lifelong messages, images and video clips on Facebook, Alaskan, second generation Iron Dog racer and Twitter and other forums an X-Games medalist who donated his time to

highlight the dangers of snowmobiling near and on Email marketing the railroad tracks. With compelling footage and Engage railroaders as safety ambassadors a convincing tone, Davis reinforces the Operation Brochure cards onboard the Hurricane Turn, Lifesaver message “See Tracks, Th ink Train.” Special Event Trains and to select retailers Th e 2016 Iron Dog features an all-day series of Seasonal radio messages / PSAs timed prior to Cory Davis events and ceremonial start in downtown Anchor- summer holidays, hunting season, and winter age on Saturday, February 20. A short portion of the race will go through Alaska Railroad property Quarterly opinion columns in local newspapers Below: Iron Dog and the offi cial restart is in Big Lake on Sunday, Radio talk show interviews and other media racer Cory Davis February 21. Be sure to look for Cory in our new opportunities warns winter PSA while watching the Iron Dog. Customer and partner communications recreation fans to Th e PSA provides a bonus kick-off to the rail- “See Tracks, Think road’s 2016 Public Track Safety Campaign. Beyond Railroad website updates Train” in a new PSA the Iron Dog race, the PSA will air as TV and radio 2015 was the fi rst year that the Iron Dog in- for the Alaska opportunities arise during the winter months. Th e cluded a ceremonial start in downtown Anchorage Railroad. 2016 campaign maintains the momentum started before heading to Big Lake for the actual race start. Filming the PSA was in part an Iron Dog thank you for the railroad’s assistance in making that happen. “Last year, we coordinated with the railroad, the city of Anchorage and Joint Base Elmendorf Rich- ardson to allow for a parade lap from 4th Avenue in Anchorage, through railroad property, on out to the military base and Eagle River,” explained ARRC Conductor / Brakeman / Engineer Lee Davis, who volunteers as an Iron Dog race martial. “Th e railroad was a big help in allowing us to block roads and crossings for the race. And this year, they let us go on the other side of the depot to lessen road impacts. Th e race Director [Kevin Kastner] wanted to do something in return.”

Snowmobile race attracts railroaders as racers, mentors, volunteers Railroaders tackle Iron Dog Race

Th e story of a team of two train crew members miles from the restart in Big Lake, north to Nome soon became a tale of remarkable railroader partici- and south to Fairbanks. It’s a punishing trek that an pation in this year’s Iron Dog Race (the Iditarod elite few complete. Once a racer crosses the fi nish of snowmobiling) — from racers and mentors to line in the Pro Class race, they are considered Iron offi cials and legendary sponsors. Dog veterans. Iron Dog Team #25 — Conductor/ When the world’s longest, toughest snowmo- Engineer Daniel Keim, 37, and Conductor/Brake- bile race gets underway February 20, two Alaska man Tyler Bogert, 23 — are rookies. Railroad Train & Enginemen (T&E) will comprise Bogert and Keim both ride the Ski-Doo MXZ one of the 41 teams at the Iron Dog’s ceremonial X-RS 600 and maintain the sleds themselves. Th e start in Anchorage. Teams will ride more than 2,000 (see “Iron Dog: Railroaders to Watch” on next page) Iron Dog: Railroaders to Watch... All Aboard

(continued from page 18) happen anywhere along the way, which is why solid preparation and practice is so critical, said Davis. men live just 10 minutes apart in Wasilla, which is By riding several thousand miles during the months 19 convenient considering the amount of time they before the race, participants not only get in shape, devote to riding and prepping for the grueling 4TH QTR 2015 they also get to know what parts on their sleds may race. “We ride at least 400 miles every weekend,” break. Th ose parts are beefed up, along with the said Bogert, who joined the railroad in 2011, and suspension, to fashion a more durable sled that can Railroaders to has been on layoff since summer’s end. A 15-year go the distance. railroader, Keim plans to take about three weeks root for during Davis was also part of a railroader team who of leave in February to fi nalize preparations and the 2016 Iron ran the Iron Dog. He and David Bang fi nished strategize with Bogert. eighth in 2006. Since then, Davis has volunteered Dog Race Bogert has been racing snow machines since in several capacities, most recently as a race martial. age 4, and his dad has been “wrenching and riding” beginning “My job is to help as many teams as possible cross since 1984, the year of the fi rst Iron Dog Race February 20 the fi nish line,” said Davis. To help new teams which was won by retired railroader John Faeo Sr. prepare, he shares essential advice during a mid- and current railroader Rod Frank. Like Bogert, December Rookie Orientation. When Bogert and Keim has been heavily involved with snowmobile Keim attended the orientation, they listened care- racing as a family pastime. He grew up in Skwen- fully to Davis and other voices of experience as they tna, near the start of the Iron Dog, and he’s wanted explained the type of gear, training and sled modi- to take part for decades. “I guess this is my year, fi cations to pursue, and potential perils to watch for. before I get too old,” he said. Keim notes that yet another railroader is in the Th e partnership began in May 2015 when race this year — Carman Brian Webb, 42, from Bogert and Keim ran the work train together and Anchorage. He is paired with a fellow rookie from discovered a shared “love of anything with a motor” Wasilla, Jimmy Gee. Both members of Team #24 and a desire to race in the Iron Dog. Th ey agreed are riding the Polaris Switchback Pro-S 600 snow- Tyler Bogert to make it happen in 2016 and immediately started mobiles. Hired by the railroad over a decade ago, saving. Each racer needs to spend about $20,000 to Webb lists the legendary 7-time Iron Dog champ buy two snowmobiles… one for practice and one to John Faeo Sr. among his Iron Dog sponsors. race. Tack on the $7,100 race entry fee and the cost Stay tuned, Railroaders… it’s bound to be an of gear, fuel and supplies and the duo’s bare bones exciting race with so many fellow railroaders to root investment totals at least 50 grand. for! Bogert and Keim feel fortunate to have sev- eral sponsors to help defray the cost of outfi tting their snowmobiles. Th ey are still working to fi ll a considerable funding gap through T-shirt sales and a Go-Fund-Me site (www.gofundme.com/ team25IronDog). Th e men also appreciate general Daniel Keim support from United Transportation Union (UTU) colleagues, thanks to Local UTU President Vern Gillis who has spread the word among trainmen/en- ginemen. At least three UTU members have shared their own race experience as Iron Dog veterans— 16-year Conductor/Engineer David Bang, 36-year Conductor/Brakeman Rod Frank and 26-year Conductor/Engineer Lee Davis. A self-described “hot head” always ready to go-go-go, Bogert says he appreciates his teammate’s calm-cool-and-collected demeanor. “We’re a good team,” he said. Brian Webb Keim agrees. “I’m always telling him, ‘Th is isn’t a race to McGrath or Nome. It’s a race all the way to Fairbanks,’” he said with a laugh. “At the same time, Tyler pushes me harder, to go faster.” Lee Davis who volunteers as an Iron Dog Race Martial echoed the wisdom in running a speedy, Irong Dog Team #25: Train crew members but steady-paced race. Typically about half of the Daniel Keim, left, and Tyler Bogert. teams make it to the fi nish line, and mishaps can PRSRT STD U.S. POSTAGE PAID AALLLL AABOARDBOARD ANCHORAGE, AK PERMIT NO. 845 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

Alaska Railroad Corporation P.O. Box 107500 Anchorage, AK 99510-7500 Printed on recycled Member & www.AlaskaRailroad.com paper Suppporter

FOURTH QUARTER 2015 Great Shot! Photos on the Rail Employee Photo wins prize valued at $200. Employees asked to submit photos in 2016.

Each year, All Aboard randomly selects from among employees Aaren MacKenzie — United Way (3rd Qtr) who have submitted a photo for newsletter use. Th e prize is valued Keri Meszaros — United Way (3rd Qtr) at $200 to include a Kindle Fire, case and $50 Amazon card. Real Pam Reil — United Way (3rd Qtr) Estate Permit Technician Christine Flanery is this year’s winner. In Tim Sullivan — Centennial Train (2nd Qtr); Anchorage September, she submitted about a dozen images of train travel from Employee Picnic (3rd Qtr) the summer. Th e 4th Quarter Great Shot features several photos Lloyd Tesch — Snow Slide (4th Quarter) from Flanery’s Glacier Discovery trip in early August. Th anks to all of these 2015 All Aboard photo submitters: To participate during 2016, employees should submit Meghan Clemens — Rafting on Placer River (3rd Qtr) photos to Stephenie Wheeler via company mail or email Tom Covington — Sockeye Fire (2nd Qtr) digital photo fi les to [email protected]. When using a digital camera, be sure the camera is set to “fi ne” or “high Johnny Evans — 557 Visit (2nd Qtr) resolution” to ensure your photo is suitable for print. If you Christine Flanery – Glacier Discovery (4th Qtr) have questions, Bruce Gough — Anchorage Clean-up Day (1st Qtr) and Young contact Wheeler Superfan (2nd Qtr); Report to State cover (4th Quarter) at (907) 265-2671 Shimane Hamer — Dog Rescue and Fairbanks Crews (2nd Qtr) or email her at Angie Lott — United Way (3rd Qtr) WheelerS@akrr. Katrina Martolano — Fairbanks Employee Picnic com. (3rd Qtr)

Christine Flanery captures a panoramic of the Glacier Discovery at Grand View, and Grandview sign, in August 2015.