Alaska Railroad Ongoing Projects: Northern Rail Extension Alaska Railroad Corporation Ft. Wainwright Realignment 1st Quarter, 2007 www.alaskarailroad.com • (907) 265-2300 Fairbanks-to-North Pole EKLUTNA QUARRY DISPUTE ENDED Rail Realighment Railroad and Eklutna agree on land transfer and quarry use Nenana Realignment n February, the Alaska Railroad Corpora- tion (ARRC), Eklutna, Inc. and the Native Collision Avoidance System Village of Eklutna signed an agreement that would transfer the 48-acre parcel of land near Eagle River (which includes a rock Curry Quarry Development quarry) to Eklutna, Inc. The agreement would also enable ARRC to haul $2 million worth of stockpiled rock material previously Anchorage Rail Capacity EA Imined from the quarry. According to Alaska law, any full conveyance Whistle Noise Reduction System (exchange, sale, donation, etc.) of railroad land must be approved by the legislature. Introduced by Senator Charlie Huggins and Representatives Crossbuck Illumination Test Bill Stoltze and Anna Fairclough, new legislation would authorize the land transfer. The rock quarry in Eklutna Hills. Ship Creek Intermodal Center The move ends a long-running dispute over the property’s use as a quarry. The land was origin- ARRC is currently developing an alternative ally homesteaded and then held by the Bureau rock quarry at Curry. With another source of Chugach Forest Whistle Stop of Indian Affairs (BIA) as a Native school track maintenance material available, ARRC is reserve. The Alaska Railroad was authorized to in a better position to resolve the Eklutna develop a rock quarry on site in 1944. In 1955, Quarry controversy. If the legislation passes into South Wasilla Rail Realignment the BIA transferred the land to the railroad., law, the railroad will transfer ownership of the quarry to Eklutna, Inc. In turn, Native support Later, Eklutna, Inc. claimed the quarry site has enabled ARRC to obtain a permit to Seward Freight Dock Expansion under the Alaska Native Claims Settlement Act remove the existing rock inventory and to use (ANSCA). A 1987 ANSCA settlement agree- the rock on its capital projects. ment allowed ARRC to continue to mine the For updates or comments on quarry, but the Native Village of Eklutna took The bill will also pave the way for ARRC and these projects, visit the Alaska legal action to protect the area, which has valid Eklutna, Inc. to work on future land historical and cultural significance. Result-ing negotiations that will be beneficial to both Railroad web site at court decisions made it increasingly difficult to entities. www.AlaskaRailroad.com mine and use the rock resources. 2006 ANNUAL REPORT FEATURES “ENGINEERED SUCCESS” The Alaska Railroad’s 2006 Annual in net income for 2006 surpassing our 2006 Report offers an account of a year that forecast by $2.8 million. Gross revenues exceeded expectations and capped off a topped out at $148.9 million with $138.5 well-executed five-year plan. million in expenses. The 2006 report’s theme “Engineered Headlining the list of financial highlights Success” could not be more fitting. was the railroad’s entry into the public debt Certainly, the efforts of our dedicated market. For the first time, the railroad workforce engineered positive returns issued tax exempt bonds, using funds to in several business sectors. Passenger accelerate a track and bridge rehabilitation services generated record revenues, our program to increase safety, reduce expens- net income significantly outperformed es, and enhance capacity and railroad budget expectations and we again marked speed. our safest year ever. The year’s robust financial outcome saw our assets grow to The annual report is posted on the ARRC web site – $714 million… nearly double our $367 million asset base www.AlaskaRailroad.com. Printed copies will be available in 2002 and a far cry from the $22.3 million purchase at the end of April. If you receive Community Ties, you will price in 1984. The railroad earned a healthy $10.4 million receive a copy. DEC DENIES WEED CONTROL PERMIT APPLICATION Railroad faces another growing season with limited tools to combat vegetation 4 he Alaska Department of our employees, customers and Environmental Conservation neighbors,” said Gamble. “That hasn’t (DEC) denied the Alaska changed. A serious vegetation problem Railroad’s permit application is still on the table.” to use chemical weed control as part of a comprehensive Gamble conceded that the permit vegetation management plan process accomplished what it was for more than 600 miles of supposed to. “One thing we can all T mainline, siding and yard take away from this long and in-depth tracks. DEC cited concerns over the application period is that the system selected herbicides in relation to use worked,” said Gamble. near water resources. the track bed, which raises the risk of “Based on sound scientific studies, they “The recent decision by DEC is a clear derailment and environmental impacts have stated which weed killer can and and concise document,” said ARRC resulting from a derailment. Over- cannot be used, as well as the President/CEO Pat Gamble. “It tells grown vegetation also endangers application challenges we need to us that we need to do more employees, by obstructing line of sight address in a future permit application. homework.” and covering trip-and-fall hazards on That is their job and they did it,” the ground. Gamble continued. “It is now up to us Without the permit, the railroad faces to do our homework. We still need to the upcoming growing season with the “We had a compelling reason to seek a kill weeds and will use any method same limited arsenal of tools to combat permit to enhance our vegetation allowed by law.” weeds, shrubs and trees that damage management plan – safety… safety for PROJECT UPDATE: NENANA RAIL REALIGNMENT Interior Alaska project moves forward with land acquisition and final design ike most major transpor- The proposed elevated track tation improvement bed, which moves train traffic projects, the Nenana Rail outside of downtown Nenana, Realignment (NRR) may engineer additional venture has gone through benefits, such as flood control lengthy conceptual elements (dikes, culverts, etc.). development and envi- Gone will be most delays ronmental review caused by long freight trains Lprocesses. NRR began an that can block city roadways Environmental Assessment in and access to critical facilities 2003. In 2005, the project (i.e., the health clinic). moved into final design, and Concerns over train noise, thanks to a recent near-million vibration and hazardous dollar Federal Highway Adminis- materials transport should tration appropriation, the railroad greatly diminish. began purchasing land for the new right-of-way (ROW) in The existing track structure 2006. ROW acquisition continues through Nenana will be this year. maintained to support port and potential passenger activities. The $25 million project will greatly improve safety by In addition, the railroad will keep touting the historical straightening several large sharp curves and by significantly significance of Nenana as passenger trains travel by the reducing rail traffic at six at-grade crossings in town. The community. Tour guides will continue to tell visitors about project would also allow for faster train speeds over less such milestones as completing the Alaska Railroad in Nenana maintenance-intensive track structure, enhancing operations in 1923 and building the remarkable Mears Bridge over the efficiency and lowering costs. Tanana River. ARRC OFFERS PREMIER 1ST CLASS DINER TRAIN Celebrity Chef Al dishes up gourmet cuisine for an unmatched dining experience n April 21, the Alaska Railroad, along with with an assortment of tantalizing hors d’oeuvres, a savory celebrity chef Al Levinson, will serve up main course and delectable desserts, topped off with a view sumptuous cuisine for the Alaska Railroad’s no restaurant in Alaska can match. premier “Spring Diner Train with Chef Al.” Riders will board the railroad’s custom-made first- “The Alaska Railroad is always looking for new and class double-decker dome cars in Anchorage to innovative trains that provide a truly Alaskan experience,” enjoy a gourmet cruise along Turnagain Arm to said Susie Kiger, Director, Passenger Sales and Marketing. Portage. “With Chef Al in the galley preparing a signature dish, Diner O Train riders are in for a real treat. We plan to complement Known as Chef Al, Levinson is the owner of the Kincaid his first-class meal with first-class service on board the best Grill and executive chef of City Diner, Anchorage's newest, train in the world.” hottest restaurant. The renowned chef will serve up his distinctive brand of cooking, tempting Diner Train guests Reservations can be made on-line at AlaskaRailroad.com. ALASKA RAILROAD TAKES STRYKER BRIGADE HOME Iraq war comes closer to home with Stryker re-deployment in January 2007 he war in Iraq came a little closer to home for the Alaska Railroad, as dozens of ARRC employees in Anchorage and Fairbanks assisted with a re-deployment of the 1st Brigade, 25th Infantry Division (formerly the 172nd Stryker Brigade Combat Team). In late January soldiers and armored Stryker vehicles arrived at the T Port of Anchorage aboard the Navy’s USS Shugart, completing another leg on their way back home to Fort Wainwright. Loading Stryker vehicles at the Port of Anchorage. (Photo by Blake Adolfae) Two 57-car trains moved about 220 Stryker combat vehicles, a few HUMVs and several trailers with supplies and “I’m proud of everyone at the railroad who made it all come equipment over four days. The Strykers were returning to be together. It took the whole team. We really had to focus, due reconditioned and refurbished in preparation for a possible to the nature of this type of move,” said ARRC Senior Freight future deployment. Account Manager Rob Halpin, who facilitated, priced and marketed the railroad’s role in the re-deployment.