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THIRD QUARTER 2015 NEWSLETTER FOR RAILROAD EMPLOYEES Crossings: Paperless pay off ers 24/7 access to payroll information INSIDE...

Pay stubs go strictly electronic nov. 1 Crossings: 0022 President’s October 2015 is the last custom-answer capability, Message month that paper pay stubs and an account lock-out will be mailed to employees, feature to thwart unauthor- Crossings: who can access their pay ized users. Employees can 0033 Finance information any time online. set up email alerts when new Message Nearly all banking insti- paystubs are available. Th ey tutions off er their customers can also choose to have the Mileposts: online account access rather than mail statements system send text messages noting gross pay, deposit 0044 Employee and other information. Th anks to a partnership amounts and/or leave balances. Recognition with Paperless Pay Corporation, employees now have Employees are encouraged to set up Paperless similar instant and secure online access to payroll Pay account access by the end of October. Th e Crossings: information 24/7, any day of the year. Paperless Pay User Set up Guide is available on the 0077 PTC Audit results Th is summer, ARRC’s Accounting Department railroad’s employee web site, Inside Track, under uploaded all paystubs year-to-date for 2015, making REFERENCES > Finance References, under the them available for viewing and printing. In mid- Payroll box. Wye of It: Railroaders August employees were sent instructions for how Don’t delay! As of Nov. 1, pay stubs will no 0088 to the Rescue to set up an account at https://my-estub.com longer be mailed to employee homes. where employees can view and print paystubs from If you have questions about electronic pay stubs, Wye of It: any computer or device with internet access. contact Assistant Controller for Payroll & Accounts Winter Pax Paperless Pay provides multi-level security with Payable Michelle Maddox at 265-2664. 0099 Service case-sensitive passwords, security questions with Sidings: Crossings: Program refresh incorporates familiar railroad spike 1122 United Way Revised Employee Recognition Awards Underway Crossings: Th e Alaska Railroad is putting Within the new three-tiered 1133 Seward Master Plan the fi nishing touches on an Employee program, employee recognition is Recognition program refresh that will tied to company values. Nominations roll out by early November. Dubbed should highligh how an employee(s) Sidings: the On Track SPIKE AWARDS, the demonstrates Safety, Integrity, Service 1144 Holiday Party Planning program makes use of the spike as both Excellence, Teamwork and Sustain- a familiar railroad symbol and a meta- ability. phor for committed railroad employ- Crossings 2016 Art Print ees. A spike plays an important part Bronze Spike 1155 unveiled in keeping the track together, and a As the fi rst recognition level, this spike’s role is strengthened by spikes driven nearby. award responds to employees who said they wanted Sidings Th e same can be said of employees who perform a more informal way to off er on-the-spot recog- Back to with excellence and integrity, and who contribute to nition with little fanfare or paperwork. Hence, 1166 School Picnic the eff ectiveness of a railroader team. (See “Employee Recognition - Spike Awards” on page 4) President’s Message: Learn more at in-person meetings All Aboard Town Hall one way to get more news 2 By President & CEO Bill O’Leary An import coal tax in a major market Oversupply of coal in the global market 3RD QTR 2015 Town Hall Meetings Usibelli’s export coal customers have typically In this edition of All Aboard (page 3) you’ll fi nd come from Japan, Chile and South Korea. Th e a schedule and reminder to attend one of the nine Chile client recently acquired its own mine and the Employee Town Hall meetings coming up in late South Korean government imposed new import October and into early November. Th e town hall taxes on coal — conditions that don’t bode well for events have become a fall tradition for dialog about a return of these customers in the foreseeable future. what’s important to the company and what’s im- portant to you. At these meetings I plan to discuss Growing New Business progress we’ve made so far on areas that employees said were important… accountability, communica- When the railroad lost a good chunk of our tion, training, and social opportunities. Autumn fuel-hauling business in recent years, we sought new Bill O’Leary is budgeting season, so we’ll talk about our plans customers and focused on expanding existing busi- for the tasks and challenges ahead in 2016. We’ve ness lines. Th is was a successful approach and we worked hard on engagement and safety initiatives intend to do the same in response to the downturn this year, and I want to hear what you think about in the export coal business. Th ere are some prom- these eff orts. ising leads that may emerge within other energy At last year’s town hall meetings, railroaders sectors. We should know more soon. brought up several topics that we didn’t know you Growing new business often means improving were curious about. If you have any subjects that or expanding our infrastructure so we can accom- you want to hear more about during these meetings, modate more passengers and additional freight let me know and we’ll do our best to cover addi- commodities. Th is requires a long-term approach. tional topics before the question-and-answer session Such is the case with our port facilities and business begins. Send a note by company mail or email opportunities in Seward. Th anks to a new federal Lorine Hall ([email protected]) grant, we are currently pursuing a master plan that will help us maximize and prioritize our port and If you have any subjects that you land assets. Check out the Rail Port Seward story on page 13 for more details. want to hear more about during Stay Informed these meetings, let me know and If you are interested in company news, I encour- we’ll do our best to cover addi- age you to take advantage of the many ways we are communicating with railroaders. Regular leader- tional topics before the question- ship updates from me, the COO, CFO, other VPs, Safety and Security provide timely insight. If you and-answer session begins. miss the email version, remember these updates are now posted on our Inside Track employee web site — https://insidetrack.akrr.com — look under Status of Export Coal NEWS > Leadership News. Th e quarterly All One topic we expect railroaders to be interested Aboard and HR Wellness & Benefi ts newsletters are in is the status of export coal. We shared an an- mailed and posted online. In fact, the entire NEWS nouncement released September 22 by our Seward section of Inside Track is ready to use. I hope to Coal Loading Facility partner / operator Aurora see every employee during one of the upcoming Energy Services. Th is release explained that the town hall meetings designed to give you yet another facility would be idle for the rest of 2015 given a chance to learn what’s going on in-person. steady decrease in demand for Usibelli coal on the global market. We had originally budgeted for a Growing new business often slower year moving a half-million metric tons. But as it turned out, we hauled less than a third of that means improving or expanding forecast to fi ll just two ships from Japanese custom- our infrastructure so we can ac- ers. Factors driving down demand include: A strong dollar makes U.S. exports more commodate more passengers and expensive and less attractive additional freight commodities. CFO Message: Leaner times ahead for Railroad and Residents Budgets: balancing funds & goals All Aboard By Chief Financial Offi cer Barbara Amy At this point in the process (it is October 1st 3 as I write this), we are refi ning the numbers with Autumn leaves have turned and we once again respect to the operating budget, and once done 3RD QTR 2015 fi nd ourselves deep in planning mode for 2016. At with that, we can assemble the recommendations this point, all of the department operating budgets from the capital request review group regarding the have been submitted, and we are in the process of capital budget for 2016. At the same time, we are refi ning the numbers, so I can’t say at this point trying to be mindful of the corporate goals and stra- what our expectation for 2016 net income will be, tegic initiatives that have been delivering fi nancial but I can give you a general feel for how we are go- gains in terms of benefi ts savings and improved em- ing to come out. ployee engagement and morale, so there is clearly a One cannot pick up the newspaper or turn balancing act between being fi nancially conservative on the local news these days without hearing the in our expense budgets and spending prudently in message that leaner times are coming for the state areas like safety and training where we generate sav- and for our local economy. Th e railroad’s outlook ings in other areas, like medical expenses, workers Barbara Amy for the future is no diff erent. As the news reports compensation, and the cost of employee turnover in of activity slowing on the North Slope and of Shell terms of training and productivity. We have about abandoning its drilling eff orts in the Chukchi Sea four more weeks to fi ne tune before we need to have hit the media, so too is ARRC experiencing a slow- the budgets, along with 5-year plans, locked in and down in its freight business in support of the oil ready for Board review and approval. industry. Th e forecast for 2015 net income is down It is an enormous coordinated eff ort every year $2.5 million from where we had originally budgeted to pull the budgets together, and I would like to it, and the original budget for 2015 net income was take a moment to express my gratitude to all of the down $3.1 million from what ARRC experienced in men and women who pull together at this time of 2014. A high level view of 2016, while not fi nal, is year to get the budgets completed on time. Your that net income will be down further still, resulting input in the process is invaluable and is enormously in even fewer dollars available for capital spending appreciated. than were available this year.

Crossings: News you can use with face-to-face dialog Attend one of 9 town hall meetings

Fall brings a somewhat less frenzied operating others members of the executive management team pace and a chance for railroaders to refl ect on the will be meeting with employees and listening to em- year behind us and plan for the work and challenges ployee input during a series of town hall meetings. that lay ahead. Th e ARRC President/CEO and Below is the schedule:

Location Facility Day / Date Time Anchorage Signal / Telecom Friday, Oct. 23 8:30 - 10:00 am Wasilla Wasilla Section Friday, Oct. 23 1:00 - 2:30 pm Whittier / Seward Whittier Town Hall Monday, Oct. 26 3:00 - 4:30 pm Anchorge HQ GOB JBB Board Room Tuesday, Oct. 27 1:30 - 3:00 pm Anchorage Ops AOC Rooms 201 / 202 Friday, Oct. 30 1:30 - 3:00 pm Anchorage Yard Bldg 6 Breakroom Tuesday, Nov. 3 2:00 - 3:30 pm Anchorage Historic Depot Lobby Wednesday, Nov. 4 9:30 - 11:00 am Healy Healy Section Thursday, Nov. 5 1:00 - 2:30 pm Fairbanks Fairbanks Depot Friday, Nov. 6 11:30 am - 1:00 pm All Aboard Employee Recognition Spike Awards...

(continued from page 1) a letter from the CEO 4 this level involves presentation of a small token of a real gold-dipped and engraved spike in a appreciation — either a hardhat decal or a lapel cool holder personalized with the recipient’s 3RD QTR 2015 pin — and follow up with a quick email noting the name and year recipient and a sentence or two describing why the $150 gift certifi cate for a choice of dining, person was recognized. fuel or sport/outdoor retailer Silver Spike Th e updated program refl ects revisions that Th is second level is similar to the Spotlight came by way of employee input provided through Award. Any employee may nominate another surveys and focus groups earlier this year. Addition- SPRIKE AWARD employee any time during the year. Nominations al Program details and forms will Inside Track entail completing a form that is signed off by the soon be available on under PEOPLE > nominee’s supervisor and department head. Indi- Recognition > Employee Recognition Program. viduals or teams earning this award get: On Track Overall Program a letter from the CEO Th e SPRIKE AWARDS are part of the Alaska real silver-dipped and engraved spike Railroad’s overall recognition program, known as $50 gift certifi cate for a choice of dining, On Track Awards. Additional components include: fuel or sport/outdoor retailer Mears Award — given periodically to a team of railroaders and partners that pursue Gold Spike a project or program that benefi ts our Alas- Th is third level is the same as the previous Presi- kan communities. Th e Historic Freight Shed dent’s Award and is presented annually in Decem- renovation and the Tanana Bridge construc- ber. Th e nomination process includes completing tion teams are past recipients. a nomination form that must be signed off by the Safety Recognition — Th e Safety Depart- nominee’s supervisor review and department head. ment conducts a separate program designed Th e President & CEO selects from among the to acknowledge day-to-day safe work habits nominations. Employees presented with 5 Bronze as well as employees who go the extra mile Spikes or a Silver Spike are automatically considered to keep themselves and co-workers safe. A for a Gold Spike. Individual or team recipients are revised Safety program will launch soon. presented with:

Mileposts: Deadline to nominate railroaders is November 16 Nominate now for Gold Spike Award

Any railroad employee can nominate other Nominations are being accepted now through railroaders to receive the Gold Spike Award, which Monday, November 16. Corporate Aff airs is is equivalent to the previous President’s Award. collecting nominations for the President / CEO’s re- Start thinking of fellow employees who clearly view and selection. Awards will be presented during stand out for above-and-beyond demonstration of employee holiday events in Anchorage December 5 one or more ARRC core values (service excellence, and Fairbanks December 18. integrity, safety, sustainability and teamwork). Forms will soon be available on Inside Track’s Examples may include sustained exceptional job Employee Recognition page (PEOPLE > Recogni- performance or customer service, signifi cant cost- tion > Employee Recognition). In the meantime, saving or enhanced revenue innovation, remarkable contact Stephenie Wheeler at [email protected] environmental stewardship eff orts, etc. or 265-2671 to obtain a form. Mileposts: Railroaders mark service milestones Service Awards: Third Quarter All Aboard 1 Year Cynthia Matthias ...... Accounting 5 Amelia Carpenter ...... Transportation Bradley Porter III ...... MOW Steven Champagne ...... Mechanical Alan Riley ...... MOW 3RD QTR 2015 Craig Stoker ...... Mechanical Kimberly Chvatal ...... Transportation Brian Webb...... Mechanical Matthew Graham ...... Guest Services Benjamin Worley ...... Mechanical Kurt Jensen ...... Transportation LaFewt Knox...... Finance 15 Years Brooks McCumby...... Mechanical Travis Caraveau ...... MOW Peter Nafpliotis ...... Mechanical Richie Greenfi eld...... Facilities Michael Reed ...... Mechanical Tony Nakjua ...... Signal Michael Newman ...... Mechanical 20 Years Charles Queeno ...... Transportation Kevin Bergsrud ...... Transportation Marcus Quinn...... Transportation Scott Brown ...... MOW Chet Samuelson ...... Safety Archie Card...... Mechanical Steven Taylor...... MOW Katrina Martolano...... Mechanical Wilkie Th ompson III ...... Transportation Kathleen Schwalbe ...... Accounting Kate Wilkie ...... Guest Services 25 Years Richard Whitney...... MOW Christian Ryll ...... Engineering Services 5 Years 30 Years John Bennett...... Police and Security Robert Gonzalez ...... Supply Management James Chambless...... Transportation Brian LaForge ...... Signal Larry Fuller ...... MOW Shawnessy Leon ...... Grants & Operations Samuel Humphreys...... Bridges 35 Years John Katkus ...... Transportation Dave Kocher ...... ATCSs Erin Kehoe ...... Corporate Administration

10 Years 40 Years Peter Firmin ...... Mechanical Grant Gerhart ...... MOW Terry Hunter...... Mechanical Warren Redfearn ...... Transportation Kyle Jacobs ...... MOW 45 Years Allen Kinne...... Mechanical James Trueblood ...... Mechanical

Mileposts: Railroaders salute 3 retirees and welcome 5 babies Home Front: Third Quarter

Births: New Arrivals Retirements: Fond Farewells Project Management Director Brian Equipment Operator / Truck Driver Lindamood and wife Sarah welcomed son Foreman Larry Burton retired July 13 from Emory James, born July 6. the Mechanical / TOFC Department after Conductor / Brakeman / Engineer Eric nearly 28 years of service. Rangel and wife Casey welcomed son Emilio, Equipment Operator / Truck Driver born August 3. Foreman Antonio “Tony” Sansone retired TOFC Equipment Operator Michael July 15 from the Mechanical / TOFC Depart- Newman and wife Jessica welcomed son Noah, ment after more than 31 years of service. born August 15. Journeyman Mechanic James “Turbo” Signal Maintainer Joshua Kuznicki and wife Trueblood retired October 1 from the Katherine welcomed son August, born Sept. 4. Mechanical Department after more than 32 years of service. Signal Maintainer Timothy Lewandowski and wife Jessica welcomed daughter Shelby, orn Sept. 18. Mileposts: Railroad Leaders accept new industry apppointments All Aboard Leary, Lindamood named as presidents 6 Congratulations to Alaska Railroad (ARRC) ARRC Director of Project Management Brian Board Chair Linda Leary who was recently hired as Lindamood was recently installed as president of the 3RD QTR 2015 President of Fairweather, LLC. An Edison Chouest American Railway Engineering and Maintenance- Off shore (ECO) company, Fairweather is a leading of-Way Association (AREMA) Board of Governors. oil and gas support services company on the North AREMA develops and advances technical and prac- Slope and throughout Alaska. Leary will represent tical knowledge and recommends practices pertain- ECO’s Alaska presence and lead Fairweather and ing to the design, construction and maintenance of the Deadhorse Aviation Center. railway infrastructure.

Mileposts: a dozen people joined the railroad July - September 2015 Welcome New Hires: Second Quarter Linda Leary Kristine Bollinger ...... Mechanical Russell King ...... Mechanical Christian Davis ...... Mechanical Seth Krejci...... Mechanical Zachary Fitz-Enz...... Guest Services Christopher Monroe ...... Mechanical Jill Hall ...... Real Estate Douglas Schopp ...... Engineering Mike Humphrey ...... Human Resources Ronald Smith ...... Telecom Russell James...... ATCS Benjamin Stephens ...... ATCS

Mileposts: Nine Railroaders earn Spotlight Award recognition Third Quarter Spotlight Awards Brian Lindamood Manager, Real Estate / Facilities, Budgets of communications through this remote section and Contracts Shane Maloney has earned Certi- could have delayed up to 20 trains and several fi ed Energy Auditor (CEA) status from the Associa- MOW crews based in Talkeetna. Instead, working tion of Energy Engineers (AEE). Certifi cation re- several 16+ hour days, the team returned the site quires completion of an AEE training program and to normal operations without letting service drop. passing a comprehensive CEA exam. Maloney also Seamless coordination began on a mid-August handily met the considerable education and experi- Sunday, when Telecom Technicians Henry Sook ence requirements, having earned a four-year degree and Edmund Ausman were dispatched to Curry and having at least 10 years verifi able experience in to investigate sensor indication of a gradual power energy and/or facility management — nearly 4 of loss. Th ey found a damaged soot-spewing gen- those years with the Alaska Railroad as our Man- erator, which they repaired and restarted to keep ager of Facility Contracts. While not required for the site operational. Th e following day, Sook and Maloney’s position, the CEA designation enhances Telecom Architecture Manager Otto Wendt the depth and fl exibility of the Facilities staff to developed a plan to clean up the site and replace the accomplish the department’s mission. Energy man- generator. Wendt also worked with Mechanical agement saves the railroad hundreds of thousands Supervisor Perry Robbins and Heavy Equipment of dollars every year and Maloney’s certifi cation will Foreman John Britt to arrange for site refueling. strengthen and accelerate the department’s energy A Telecom Technician team comprised of Sook, enhancement and conservation projects. Previously, Justin Mitchell and Adam Kinkaid executed part the railroad had to contract energy auditing services. one of Wendt’s plan, cleaning and preparing the With this expertise now on staff , energy savings in generator room on site. Th e team took advantage every project will be easier to quantify and verify. of the helicopter time to remove the old generator, transport and position the new generator, and to Coordinated, tireless eff orts of a team comprised haul in drums of fuel. (Th is saved $4,000 by avoid- of Telecom, Mechanical and Maintenance-of-Way ing a separate fuel trip). By the following day, the (MOW) employees prevented costly disruptions new generator was installed, started and modifi ed to to train and track operations by restoring mission- function automatically thanks to controller changes critical communications at the Curry radio site made by Telecom Engineer Brian Scheid. With- in a remarkably short amount of time. A failure in a few days, the site was again fully operational. Crossings: Annual performance audit focuses on PTC PTC Audit reveals risks, challenges All Aboard Implementing PTC is one of the most pressing it’s ability to meet scheduled deadlines is not clear. 7 challenges facing our company. If we don’t do it Of particular concern is Wabtec’s development of correctly or don’t meet statutory deadlines, we won’t an additional system, the Independent Vital Offi ce 3RD QTR 2015 legally be able to operate many of our trains. Controller (IVOC) component, which will help Due to PTC’s signifi cance, it was the topic of ARRC avoid $35 million in additional costs. Audit this year’s annual performance audit which took recommendations call for greater executive level place this summer. Th e ARRC Board of Directors engagement. approved the audit and its recommendations during its September 17 regular meeting. Audit results in- Sustainability. Long-term, ARRC must deter- dicate the project is at risk. Keeping it on track will mine a realistic cost estimate to maintain PTC once involve a commitment to each one of our company it is fully implemented. Some estimate the annual values: Safety, Teamwork, Integrity, Sustainability PTC maintenance expense to be several million and Service Excellence. dollars, which must be absorbed into an already stretched budget. Th e audit highlights the need to Safety. PTC boils down to enhanced safety. plan accordingly for a sustainable system. As an overlay system, it off ers a failsafe system to prevent incidents and accidents resulting from Service Excellence. On the bright side, human error. For this reason, Congress insists that ARRC has a remarkable level of PTC technical U.S. railroads demonstrate that they intend to meet maturity, given experience dating back to 2002, statutory deadlines. Th e Alaska Railroad must make when ARRC initiated the Collision Avoidance Sys- every eff ort to make PTC happen as effi ciently and tem (CAS) project, a predecessor to PTC. Hence, cost-eff ectively as possible. we’ve outfi tted our entire locomotive fl eet and have established a training program for our locomotive Teamwork. Teamwork could be considered a mechanics to maintain the PTC equipment. In cornerstone value, considering the audit’s revelation addition, we’ve already gathered essential track data that too many ARRC departments don’t understand and established a verifi ed and validated pilot terri- PTC’s importance and their role in its success. Th e tory to serve as a model. We can continue to build audit recommends a more engaged leadership team on these foundations. and a more deliberate account of how each depart- Positive Train ment must contribute to, and align with, PTC Th e performance audit report is a public docu- Control development. All ARRC departments should come ment and is available on the employee website, Inside Track to view PTC as a priority, so that requests for sup- under the menu item REPORTS & System port are met with quick and collaborative response. LOGS. Overview Anything less than a strong sense of teamwork can cause delay and incomplete planning.

Integrity. Project integrity is heavily reliant on strained resources. Internally, the vast majority of PTC expertise and project leadership is concentrated in one person — Advanced Train Control Systems (ATCS) Vice President Eileen Reilly. Th e audit recommends spreading that knowledge base among more people, creating a succession plan and expanding the project leadership team. Externally, we, like many other U.S. railroads, must also rely on contracted expertise. As a major PTC contractor for railroads nation- wide, Wabtec is stretched thin and Wye of it: Railroaders go the extra mile to help distressed customers All Aboard Railroad rescues weary hunters 8 When Anchorage resident Shane Ferreria em- pulled out near the railroad bridge at Luebner Lake barked on a week-long moose hunting trip with a (MP 62), they were wet, cold and shaken. 3RD QTR 2015 friend and his 15-year-old son, they were excited to Understandably, Shane’s son had grown increas- board the train that delivered them ingly alarmed. “At one point, my son told me he to the Spencer Glacier Whistle Stop on Saturday, wondered if they were going to make it out,” said Ferreria. “I knew we could not go any further; and 1 The customer September 13. After two overnights at Spencer, the the next train would not come until Saturday.” threesome arrived group took to the Placer River on Monday, and the Fortunately, Ferreria’s cell phone managed a at Spencer Whistle adventure soon turned frightful. When a call for weak signal and he was able to reach his girlfriend Stop, anticipating help came Tuesday morning, quick response from Rebecca, who in turn contacted the railroad police. a great hunting railroaders averted a potentially dangerous situation Special Agent Johnny Evans worked with Dispatch- experience. for a few valued customers. Th e traveling trio were using infl atable canoes ers Kim Chvatal and Mike Alfaro to get the ball 2 Folks on foot that got caught on rocks, ran aground in shallow rolling for a potential rescue. can cross over water and capsized twice over the course of what South End General Roadmaster Bruce Gough the Placer River should have been a 40-minute fl oat between Spen- was onboard a charter train traveling north from via this pedestrian cer and Luebner along the Placer River. Instead, it Seward when he got the call from Dispatch Tuesday bridge (rail bridge took six and a half hours. “We were getting pretty morning. Th e train was relatively close to Luebner, in the background) beat up by the debris. Th e rain had raised the river and stopped to check on the group, which had set at Spencer. level and sped up the current. We watched whole up camp on a gravel bar. Gough arranged for a local birch and cotton wood trees coming down the Portage section Maintenance of Way hi-rail truck 3 From the train, river,” said Ferreria. to return to Luebner in short order. MOW Crew Meghan Clemens Progress was also slowed by the need to hike Kei Kanongataa and Charles Neidel arrived on site captured a rafting around multiple beaver dams. Plus, a deceptively before noon to pick up the three weary travelers tour party that uneven river bed found Shane slipping into deep and their gear, and delivered them to their vehicle likely embarked water drop-off s that nearly swept him downstream. in Girdwood. If not for the railroad, Ferreria’s next from Spencer lake In hindsight, the infl atable canoes were not ideal option was to call State Troopers to request a much this summer. for the upper Placer River. By the time the travelers more costly helicopter rescue. “We are very grateful to the railroad. Th e employees were more than helpful,” said Ferrerria. “Th ey took our safety seriously and were nothing but professional.” Despite the harrowing ordeal, Ferreria noted that he thoroughly enjoyed the railroad experience. “Th ere is a lot to be said for what the railroad of- fers. Th e whole system is impressive,” he said. “Th e Chugach Forest whistlestop area is just beautiful and getting there by train was great. I will defi nitely go again… probably without the rafts.” Wye of it: Railroad expands winter-time passenger services More: Charters, Mid-Weeks, Contests All Aboard Th e Passenger marketing and operations folks and now in 2016 we will have a total of 6 round- 9 are headed into a relatively busy winter season, with trips from the last week in February through all 5 more charters and regular scheduled service trains weeks in March, the will travel 3RD QTR 2015 off ered to Alaskan residents and visitors. northbound on Saturday and Tuesday, and south- bound on Sunday and Wednesday. More Holiday Trains On November 17, 2014, Wasilla resident New Photo Contest Karina W. lamented with a post Facebook, “My From now until mid-December, the railroad family is so sad that the Holiday Trains are already is conducting a “Catch the Train” photo contest sold out! Any chance you will be adding any cars or for non-railroaders who submit their best photos additional schedules?” of the train (and possibly other railroad images). Th e answer is YES for 2015. Th e railroad is add- Employees: tell your friends and neighbors about ing another Saturday (December 19) to the Holiday this opportunity to win one of 18 fi rst-prizes, each Train schedule (in addition to December 5 and 12), including a set of railroad tickets and the winning each with two daily departures (10 a.m. and 3:00 photo featured in an upcoming 18-month Alaska p.m.). Two more trains should raise the spirits of Railroad calendar. Folks can upload and enter families looking to board the Anchorage-to-Indian photos through Facebook, Instagram or Twitter Customer posts on round-trip train featuring caroling, coloring, con- (hashtag #catchthetrainak). While the railroad’s socal media clearly tests, prizes, Santa and his elven entourage. Marketing Department will select fi rst place win- showcase the value ners, a grand prize winner will be chosen by public More Mid-Week Trains that they see in the vote on Facebook. Th e grand prize winner gets a Railroad’s winter Th e upcoming winter passenger season features total of 4 railroad tickets, his/her winning photo train off erings. expansion of another service popular with Alaskan featured on the calendar cover, and $1,500 cash. Below a winter customers. Last year the Aurora mid-week trains Voting will occur once fi rst prize winners are chosen trip to Talkeetna were full. In response, the 2016 winter passenger (by December 21) through January 10. inspires a photo train operations will add another two weeks of mid- Th ere is no fee to enter. Full details can be collage as does a week service during and around Spring Break. In found at www.AlaskaRailroad.com > Travel > seat aboard a 2014 2014 we off ered two mid-week round-trips, in 2015 Specials > Catch the Train Photo Contest. Holiday Train. we off ered mid-week round-trip during 4 weeks; Training: Mentoring, Customer Service, Instruction & Leadership All Aboard New Training Programs and Curricula 10 By Toni Curry, Manager, Training and Development A Customer Service course is developed, and scheduled for delivery soon to Human Resources, 3RD QTR 2015 A lot is happening on the training front at the Accounting and Supply Management departments. Alaska Railroad. While all eff orts are not yet com- Employees in Corporate Planning and Real Estate plete and visible, here’s a snapshot of what we are are also slated to take the course before year end. working on to enhance and promote training: A Methods of Instruction course is being A formal Mentoring Program is under devel- taught by Th e Growth Company in late October opment to provide a more structured approach to and early November. Th e three-day course is target- practical learning. Once established, it will allow ed toward personnel who deliver classroom training employees to identify and document knowledge at ARRC, with an eye to providing consistency and transfer from more experienced employees to those quality in classroom instruction. less senior. It will include developing professional Development of a new Supervisor and Man- goals, provide development resources and guidance, ager training curricula is underway to give railroad- Toni Curry and encourage job shadowing opportunities. ers the skills and tools they need to successfully A request for proposal has hit the streets, seek- supervise people and understand management roles ing development and implementation plans for a and responsibilities. Organized into 12 modules, Learning Management System. Th is system is the seminar series will enable new supervisors to fi t essential to meeting the records storage and training the training into their schedules. Topics will include documentation requirements outlined in federal legal obligations, fi nancial requirements, and recog- law (49 CFR 243), and for submitting training nition and performance reviews. materials and a program description to the Federal New training forms and processes are also in Railroad Administration. Th is is due by 2018 and progress to ensure a comprehensive training and there is much to do between now and the deadline. development program benefi tting all railroaders.

Signals: Story illustrates dangers of poor communication Lessons Learned: Complacency Kills

From John Brahaney against a building; the view of it is blocked from Operating Rules & Training Manager the side the brakeman was riding by the edge of the building. Th e foreman was going to shove the cut “Th e real enemy is complacency, new guys get through the dumper and into a tail track so the mill out there, ride the side a few times, and nothing guys could get their switch engine out and in posi- happens to them, and the one time they get dis- tion to pull the cars back through the dumper and tracted by the stuff going on around them, like the unload them. operations in a paper mill, or in my case too busy Th e brakeman failed to get off at the spot he John Brahaney watching a possum running along the edge of the was told to, from his point of view there was no track, and that chain link fence that leaned over af- reason to, no switch was there to line, and there was ter the rain last night suddenly appears from around nothing there at all but the road, he saw no reason the curve about three feet in front of you, fouling the get off in the middle of the road. Th e conductor the track, and you have no time to do anything but got off before the unloader, shoved the cut through, hug the car and hope. Lost the back of my shirt, cut away and went back to where he expected the my pager, and a lot of skin, but gained a lot of brakeman to be standing. Th e brakeman had been awareness about how fast this stuff can creep up on swiped off the chip car by the support frame for the you, even at 2 mph. unloader, fell into the auger pit, knocked out by Th e reason the guy was killed in the paper mill one or the other impact, and didn’t answer his radio was incomplete communication and failure to fol- when the conductor began calling for him. low the rule that tells you if you don’t understand Th e area around the mill is totally fl at with what you are told to do, then do nothing until it is visibility for thousands of feet. It only took a few clarifi ed. seconds for the conductor to realize the only place Th e conductor told him to get off the chip cars the guy could be was either in the auger pit or at the fi rst road crossing, but failed to tell him why. between the cars and the building. By the time he Th e chip unloader has super close clearance, got in contact with the mill crew to tell them the inches only, and is located just around a curve (see “Complacency, assumptions” on page 11) Crossings: HR continues to off er “Milepost #2” on retirement journey Ride Guide for railroader retirement All Aboard To continue the journey we began in the last interest rates.) Th is isn’t to say you have to cut out 11 issue, here is the next “Milepost” in your travels all of your discretionary spending. However, cutting toward a successful retirement. Remember, “Every down on things like that daily $4 cup of coff ee or 3RD QTR 2015 journey begins with the fi rst step!” going out for lunch every day for a few months goes a long way toward tackling that pesky consumer MILEPOST 2: ESTABLISH A FINANCIAL debt. One idea many debt counselors suggest is to INFRASTRUCTURE! Like any type of construc- pay cash for most everything. It is a lot harder to tion, before you can even lay a foundation, you part with cash than it is to whip out that debit or have to start your build with a plan…a blueprint, if credit card. you will. Financial infrastructure is the same idea. It is the blueprint that will allow you to build your Create an Emergency Fund. Having an emer- fi nancial future. For our purposes, this means set- gency fund is an important component of your ting a budget, getting your debt under control, (or fi nancial infrastructure. An emergency fund is gone), and creating a fully-funded emergency fund. a stash of money set aside to cover the fi nancial surprises life throws your way. Th e unexpected Theresa MacLeod Set a Budget. You wouldn’t set out on a cross- events can be stressful and costly. Some of the top country road trip without consulting a map, right? emergencies people encounter are: 1) job loss; Likewise, you can’t expect to reach your fi nancial 2) medical or dental emergency; 3) unexpected goals without developing a plan for spending and home repairs; 4) car troubles; 5) unplanned travel saving. Th e fi rst step toward developing a budget is expenses. How do you fi gure out how much you to track your expenses for a least a month. Be sure need in an emergency fund and how do you get to record every purchase, no matter how small, even started? Your emergency fund should be enough to ATM fees. Along with knowing where your money cover your major expenses such as housing, utilities, is going, you need to know how much you have and insurance, food, health care, debt repayments, trans- how much you make. Once you have that infor- portation and reasonable personal expenses (i.e., mation ready, there are several free on-line budget household supplies, haircuts, clothes and toiletries) Pamela Reil calculators and worksheets out there that can help for approximately 6 months. Th e next step is to set you get started. (Check out Vanguard’s “Home up a savings plan to build your savings. You could Budget Calculator.”) structure an automatic savings each payday for a Get Debt Under Control. Th e basics of debt specifi c amount to a separate account. Within a reduction are simple: Cut down on your discretion- relatively short time, you can build that emergency ary spending and put the extra money toward your fund to the level you have determined you need. debt payments. We aren’t talking about your mort- gage, monthly household expenses, or even your For more information on retirement planning, car payment or student loans. For most people, contact Retirement Specialist Pamela Reil (ext. we are talking about consumer debt. (Consumer 2273) and/or Corporate Retirement Plans Manager debt includes credit cards and purchases with high Th eresa MacLeod (ext. 2346). Complacency, assumptions can kill...

(continued from page 10) reason for him to ride down other than to see what was there. He had no duty to perform other than brakeman might be in the pit it was too late, they observing the move to see how it is done. had started the auger the moment the conductor Th e conductor should have fully explained why cut away from the shove. he wanted the brakeman to get off where indicated. Had the conductor explained why he wanted Both failed to communicate, and both were com- the brakeman to get off where he told him to, and placent, each expecting the other one to “know” had the brakeman followed those instructions, there what was going on and “know” what the dangers would have been nothing to write about. were.” But he failed to do so, and failed to question the conductor about something he didn’t understand... he should have followed the rule that says “don’t un- Lessons Learned: DO NOT ASSUME derstand what you are told to do, then do nothing ANYTHING, AND LOOK OUT FOR until it is clearly explained”. He should have stood there when the movement started. Th ere was no YOUR CO-WORKERS. Wye of It: Food drive lead “Minions” use humor to fi ght hunger All Aboard 2015 United Way Campaign Underway 12 Th e 2015 Alaska Railroad Employee United Way (UW) campaign kicked off with a food drive 2015 United Way 3RD QTR 2015 that was exceptional in terms of enthusiasm and Volunteer Team food collected. Food Drive Coordinators (i.e., Lead Minions) Pam Reil, Aaren MacKenzie and Shi- Ro Proctor, Chair 265-2523 mane Hamer (Fairbanks) brainstormed ideas to use humor to fi ght hunger. With a fun-loving Minion Kevin Bergrud (T&E, Co-Chair) 242-1169 theme and a good-natured barrel-fi lling competi- Meghan Clemens (Marketing) 265-2543 tion, the two-week food drive ended mid-Septem- ber with a record-breaking 1,136 pounds of food Nancy Davis (Signal/Telecom) 265-2658 and about $200 in cash. Th e total food collected Mia Foster (Corporate Admin) 265-2686 was 200-plus pounds more than the 900 pounds collected in 2014, and 300-plus pounds more than Shimane Hamer (Fairbanks) 458-6022 food donations in 2013. Way. To. Go! Erin Kehoe (AOC/Transportation) 265-3003 Th is year’s United Way campaign runs through November 5, 2014. Th e planning team hopes to re- Angie Lott (AOC/Transportation) 265-2639 peat or exceed totals in 2014, when 182 employees Aaren MacKenzie (Pax Services) 265-2494 pledged and just over $59,000 was raised. Th e “100% Ask” is a main tenet of the cam- Keri Meszaros (Mechanical) 265-2488 paign, with outreach eff orts designed to connect Pam Reil (Human Resources) 265-2273 with every ARRC employee, giving them an oppor- tunity to make a pledge. As in years past campaign Rob Walker (Supply Mgmt) 265-2218 activities include coff ee services, employee lunches Stephenie Wheeler (Publicity) 265-2671 and a raffl e. Th e campaign concludes with a drawing on the last day. Employees who pledge/ contribute are entered to win one of dozens of prizes.

1 Sandra Linn, left, and Angelina Lott, pose with AOC’s winning barrell.

2 Pam Reil preps a sign at the HQ / GOB food drive barrell site.

3 Keri Meszaros shows off a barrell she set up in mechanical.

4 Aaren MacKenzie shows off a barrell he decorated in the Historic Depot. (Photos courtesy of the Minions). Wye of It: $2.5 million grant helps fund Seward Master Plan project All Aboard Railport Seward project is underway 13 As reported late last year, the U.S. Department Th e goals for these visioning activities are to: of Transportation has awarded the Alaska Railroad 1) educate stakeholders about the planning process 3RD QTR 2015 a $2.5 million TIGER VI (National Infrastructure and how / when they can provide input; 2) deter- Investments) grant to be managed through the mine issues of concern, and project benefi ts and Maritime Administration (MARAD). Th e grant, challenges; and 3) to identify key points of contact along with a $500,000 match from ARRC, will in the community and within subject expert orga- fund pursuit of a Master Plan for railroad assets nizations. A visioning workshop in mid-December in Seward. Known offi cially as “Railport Seward: will wrap up fi rst project deliverable. Reimagining Travel and Trade,” the project got In 2016, the team will pursue the remaining underway in August. deliverables: ARRC Project Manager Christina Hendrickson Passenger Traffi c Study is coordinating the work of a 60-person team com- Freight Traffi c Study prised of the lead contractor PND Engineers, and Transportation Connectivity Study Christina several sub-contractors, including E3 Environmen- Hendrickson tal, Hanson, Dowl, Bettisworth North and Cardno. Results from this research will help the team Th e fi rst step is collaboratively Project Visioning. evaluate alternatives based on cost, social and Clockwise from Beginning in October, the team will conduct economic factors. Th e end product will be a Master top left: Railroad focus groups in Seward to help develop a logo that Plan that includes dock design concepts, as well as docks next to the graphically conveys the project purpose. Next come a prioritized approach to reimagining the uses and harbor a coal meetings with internal and external stakeholders attributes of all railroad assets in Seward. train unloads the during the last quarter of 2015. Internal groups in- While grant money may be spent through passenger dock clude Alaska Railroad departments company-wide. March 2017, Hendrickson says the goal is to is an intermodal External stakeholders include shippers, mooring, complete the project by the end of 2016. Once in terminal and the freight partners, passenger service partners, fi sheries, place, a Master Plan sets the stage to pursue the next freight dock up- elected offi cials (including the local city council), phases of engineering, fi nal design and construc- lands are secured and many Seward citizen planning commissions. tion, and associated funding sources. with fence and gate. Sidings: Employees enjoy return of summer company picnics All Aboard Families join railroaders at picnics 14 Family members joined employees for late afternoon company picnics held in late July. 3RD QTR 2015 By most accounts, employees appreciated the informal opportunity to connect with fellow Left-top: A railroad railroaders at events featuring good food and family enjoys their child-friendly activities. food on the lawn next to the Plaza where the Anchorage picnic set up July 28. Left-below: a railroad daughter gets her face paint- ed, one of several chldren’s activities. (Photos by Timothy Sullivan)

Right-Top: At the Fairbanks picnic July 23, Sidings: Railroaders pick employee holiday party dates in December Princesses Anna and Elsa came Holiday party planning is underway to visit the kids. pictured L-R: Olive Alaska Railroad employees are again spearhead- (x2488; [email protected]). Th e event includes Kreta (Greg Kreta’s ing year-end holiday parties to provide a festive a dinner buff et and cash bar, music by our own daughter), Charlie venue for railroaders to gather in Anchorage and DJ Rob Walker, door prizes and festive décor. Clark (Janice Wit- Fairbanks. Th e company is again supporting the Admission tickets must be purchased by Monday, November 25 ter’s niece), Hayden gatherings by donating use of depot facilities, as (cash only; no refunds) from: Davis, Schofi eld well as providing partial funding for food, decora- Meszaros, Alicia Reando x3100; Aaren MacKenzie (Katrina Marto- tions, prizes and entertainment. When polled via x2576, Lorine Hall x2414, and Angie Lott x3030. lano’s grandson), in-house Outlook technology in September, twice One cab ride home per party will be provided for Nevaeh Marto- as many south-end employees picked December 5 those that request it. Parking at the airport long lano (Martolano’s over January 9, and north-end employees decided term parking is $7 for the entire evening with a granddaughter), upon a date later in December — the18th. Party or- voucher available at the event. Several Anchorage Zoe Queeno ganizers in Anchorage and Fairbanks need employee airport-area hotels are off ering discounted overnight (Charles Queeno’s help to pull off the parties successfully. Please give lodging for railroad employees. For more informa- daughter) them a call and lend a hand. tion about hotels contact Davis or Meszaros. (Photo by Katrina ANCHORAGE: Saturday, December 5, FAIRBANKS Friday, December 18, 6 p.m. Martolano) 6 p.m. to midnight at the Bill Sheffi eld Depot at to midnight at the Fairbanks Depot. Th e event will Ted Stevens Anchorage International Airport. Dress feature food, music and door prizes. Admission cost is casual or semi-casual. Admission cost is $15 (cash will be based on catering, which is in the works, or check). and should be available soon. Party Organizers are For details, contact party organizers Nancy Da- Katrina Martolano x6021 and Brett Brown, x6022, vis (x2658; [email protected]) and Keri Meszaros [email protected]. Crossings: Artists captures Northern Lights on canvas 2016 print art features Houston All Aboard For the fi rst time since the Alaska Railroad . For more informaton, follow 15 established its annual print program in 1979, the JasonVukovichArt on Facebook and Etsy. 2016 artwork features the Aurora Borealis. ARRC Employees may purchase prints at a discounted 3RD QTR 2015 releases the new print / poster at three sale-and-sign price of $45 (regular $55) and additional posters for events featuring Anchorage artist Jason Vukovich: $25 (regular $30). To reserve a specifi c number of the 2016 print (numbered 1-750), the form HOUSTON: Saturday, November 14 DEADLINES: , 10 a.m. below must be completed and returned to Stephe- to 2 p.m., at the Houston High School Library Reserve specifi c nie Wheeler, Corporate Aff airs, by October 30. numbered prints (12501 Hawk Owl Circle) Numbers 1-25 are not available. If you do not want by October 30 ANCHORAGE: Saturday, November 21, a particular print number you do not need a res- 10 a.m. to 2 p.m., at the Historic Depot ervation. To keep a preferred print number, Pick up reserved prints by January FAIRBANKS: First Friday, December 4, return the reservation form by deadline. 31, 2016 4 to 7:30 p.m., at the Fairbanks Depot Prior years’ print number reservations will Every railroad employee gets one NOT be honored for the 2016 print. FREE poster from their department. If you are unable to attend sign-and-sale events, you may pick up your reserved print at the An- Distribution to departmens is timed so railroad- chorage Historic Depot or Fairbanks Depot ticket ers can get their poster signed by the artist if they windows (depending upon the location you indicate wish. Call Aaren McKenzie at ext. 2494 to confi rm on the form below). Reserved prints must be your department contact. purchased and picked up (or mailed) by January 31, Entitled Lights Above Houston, the original wa- 2016. After January 31, previously reserved prints tercolor painting depicts a locomotive moving into will be returned for sale to the public. a winter landscape with the northern lights shim- mering overhead. For the 2016 print, ARRC asked artists to feature Houston, which incorporated as a city 50 years ago in 1966, and which sits at the juncture of the railroad’s existing main line and a project to extend a rail spur to Port MacKenzie. “In addition to showing the Houston area on a clear winter night and the spectacular aurora borea- lis, I wanted to showcase two of the very best ways to see Alaska — mushing a dogsled and riding the Alaska Railroad,” said Vukovich. A resident of Anchorage, Jason Vukovich origi- nally hails from Illinois, where he earned a degree in Sculpture. A 13-year Army / Army Reserve vetan, Vukovich is a Control System Designer for Doyon Anvil. His art has shown across the U.S. and in 2016 Alaska Railroad Print Reservation Form

Complete this form and return it by October 30, 2015 via: Intercompany Mail to Stephenie Wheeler, Corporate Aff airs (Headquarters Bldg) Fax back to (907) 265-2443 or Email your preference to [email protected] Name Phone

Department Anchorage Fairbanks

Reserve Print Number: Second Choice Number: Third Choice Number:

Jason Vukovich 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

THIRD QUARTER 2015 Railroaders host 2015 back-to-school picnic New and veteran picnic volunteers worked together to off er special pre-school event

A dozen railroad volunteers helped ARRC host a back-to-school picnic at Government Hill Elementary on August 17. “It was great to see several new faces along with folks I’ve been able to count on year after year,” said Stephenie Wheeler, picnic organizer, who paired new- comers with experienced volunteers. Over 500 hotdogs were served during the drizzly afternoon as neighborhood parents and school children came to meet with teachers and PTA representa- tives. Th e railroad organizes the picnic as part of its enduring School Business Partnership with Government Hill Elementary. Clockwise from top-left: 1. Christina Hendrickson learns the ropes with balloons. 2. Ro Proctor, right, takes Lorine hall under her wing at the bal- loon station. 3. Newbie Blaine Spears, left, delivers grilled dogs to experienced dog-wrappers Pam Reil and Ed Hills. 4. Shannon Sanderson watches Operation veteran Dwight West in action.