AALLLL AABOARDBOARD

C ROSSINGS:NEWS Y OU C AN U SE MAY / JUNE FLOWER POWER LEGISLATURE OKAYS 2007 ARRC INITIATIVES INSIDE THIS ISSUE... By Wendy Lindskoog, Assistant VP, Corporate Affairs The Alaska Railroad went to Juneau this year with a very aggressive legislative agenda, and we emerged CROSSINGS: remarkably successful. Of the 449 bills (plus 71 res- FREIGHT olutions) introduced this session in the House and CONTRACTS Senate, only 66 bills (15%) became law, and three 5 were Railroad initiatives… two land transfers and a bond authorization. Below is a snapshot of those initiatives and other legislation impacting the I HEARD IT Railroad. THROUGH THE RAIL THB 168: Railroad and DOT&PF Land Transfer LINE — ASK PAT Sponsor: Rep. Kyle Johansen, Transportation Chair 8 ARRC and the Dept. of Transportation & Public Facilities (DOT&PF) sought to exchange less than CROSSINGS: 10 acres of land in Wasilla and Fairbanks. The swaps EMERGENCY will accommodate local DOT&PF projects on the Parks Highway in Wasilla and the Fairbanks Airport EXERCISES Heavy Aircraft Apron in Fairbanks. 9 HB229: Railroad Authorization to Issue $2.9 Billion in Tax Exempt Bonds SIDINGS: Sponsor: Rep. Mike Chenault, Finance Co-Chair SUPPORT NATIONAL ARRC required legislative approval to issue up to GUARDSMEN $2.9 billion in tax-exempt conduit revenue bonds to 13 finance Agrium’s Kenai Coal Gasification Project, associated railroad equipment and facilities, and a SIDINGS: rail spur to Mat-Su’s Port MacKenzie. Rail spur bond authorization sunsets in five years; coal gasifi- BRAKEMEN cation project bond authorization sunsets in eight. T14RAINING SB 103: Railroad Quarry Land Transfer to Eklutna Inc. WYE OF IT: Sponsors: Sen. Charlie Huggins, Resources Chair, and Reps. Bill Stoltz and Anna Fairclough HISTORY CHANNEL ARRC sought legislative approval to transfer its FEATURES ARRC entire interest in the 48-acre Eklutna Quarry site to 16 FACILITIES DEPARTMENT CARPENTER CHAD HARPEL HELPED TO REBUILD THE FLOWER BOXES IN FRONT OF Eklutna, Inc. in exchange for access to $2 million worth of stockpiled quarry rock material. This THE RAILROAD HQ BUILDING. HERE, HARPEL TRANS- CROSSINGS: agreement also paves the way for future land trade PLANTS SHRUBS AND SEEDLINGS INTO THE FINISHED negotiations. ARCHITECT’S SHIP PRODUCT. (PHOTO BY STEPHENIE WHEELER) CREEK VISION (See “Legislative Wrap-up...” on page 12) 17 ALLLL ABBOARDOARD SEPMT/AYO/JCTUNE2005 2007 M ILEPOSTS NEW HIRES — APRIL AND MAY April New Hires Christopher J. Cuff ...... Maintenance Peter R. Adams...... Transportation Celine S. Dammond ...... Passenger Operations 2 James L. Ballinger...... Transportation Dayne I. Ellanna...... Baggage Handler Jessica J. Bamford...... Passenger Operations Chen Feng ...... Passenger Operations Kyle D. Bergner ...... Transportation Janie R. Ferguson ...... Passenger Operations David A. Blazejewski ...... Transportation Aleks M. Fleener ...... Passenger Operations Terry L. Bookenberger, Jr...... Transportation Adrianne L. Grenier ...... Passenger Operations Chad Breeden...... Transportation Holly M. Halter...... Passenger Operations Joshua Cappel ...... Mechanical William M. Harbour ...... Passenger Operations Raphael L. Dreier...... Transportation Sarah E. Hauth ...... Passenger Operations Justin A. Earl...... Mechanical Katherine C. Hostetler ...... Passenger Operations Richard C. Eneboe ...... Maintenance William D. Hughes ...... Transportation Brent W. Ferguson...... Bridges & Buildings Amanda R. Immonen ...... Passenger Operations Raymond C. Floyd...... Transportation Nicholas C. Jacobs ...... Maintenance Thomas M. Gorman...... Maintenance Elizabeth W. Jacques ...... Passenger Operations Dustin T. Hattenburg...... Transportation Christopher A. Johnson ...... Maintenance Brian K. Joki...... Maintenance Nicole M. Kofoid...... Passenger Operations Elizabeth L. Jordan ...... Passenger Services Analeesha L. Koumal ...... Passenger Operations John Katkus ...... Transportation Kerry L. Kubly ...... Passenger Operations Joan C. Leopardi ...... Passenger Operations Gregory J. Lawton ...... Maintenance Timothy M. Lewandowski ...... Maintenance Danielle C. Lesko...... Passenger Operations David Martin ...... Transportation Anthony T. Lewis...... Passenger Operations Martha A. McNulty ...... PETS Megan M. Lindbergh...... Passenger Operations Grant Ojaniemi...... Mechanical Thor L. Lindstam ...... Maintenance Michael Palembas...... Transportation Jennifer S. Lorenz...... Passenger Operations Michael J. Philp ...... Facility Maintenance Royd P. Mashaney...... Facility Maintenance Raymond M. Pohl ...... Transportation Samantha R. Novak ...... Passenger Operations Shad E. Premus ...... Transportation Brian A. O'Dowd...... PETS William D. Ramey ...... Transportation Lena M. Page ...... Passenger Operations Eric J. Rangel ...... Transportation Dana C. Petrarca ...... Passenger Operations John P. Rice ...... Transportation Alicia R. Reando ...... Passenger Operations Randall P. Rice ...... Transportation Brad J. Ricci ...... Mechanical Ryan M. Rodriguez ...... Transportation Brian E. Sartor ...... Maintenance David U. Roemer...... Transportation Megan D. Sfraga ...... Passenger Operations Loretta S. Rowley ...... Passenger Services Ryan D. Smiley ...... PETS Vsevolod V. Seletskiy ...... Transportation Christina P. Smith ...... Passenger Operations Matthew J. Sharp ...... Transportation Brittney E. Spurlock...... Passenger Operations Gregory E. Sherman...... Transportation Kyle J. Stangl ...... Passenger Operations Travis W. Spurling ...... Transportation Scott B. Starbuck ...... Maintenance Richard W. Wilkison ...... Transportation Deanna R. Stewart ...... Passenger Operations Ryan S. Williams...... Mechanical Justin D. Stuller ...... Passenger Operations Jason F. Wilson ...... Maintenance Amy K. Styer ...... Passenger Operations Matthew R. Witwer ...... Transportation Donald M. Thomas ...... Information Services Landell Thomas ...... Maintenance May New Hires Brian L. Thompson ...... Signal Kristin B. Alexander...... Passenger Operations Daniel E. Tol...... Maintenance David L. Allen ...... Maintenance Scott Toombs ...... Mechanical Teresa S. Anderson ...... Passenger Operations Patrick A. Trometter...... Passenger Operations Zen M. Armitstead...... Passenger Operations Katelyn N. Tullius ...... Passenger Operations William H. Brown ...... Passenger Operations Walter D. Williams III ...... Passenger Operations Laura A. Bullen ...... Passenger Operations Justin T. Whitehead ...... Passenger Operations D’ana N. Castro...... Passenger Operations

M ILEPOSTS RETIREES IN APRIL AND MAY • Fireman/Engineer Gary Lund retired from the • Fireman/Engineer Daryl Kollander retired from the Transportation Department after 34 years of service. Transportation Department after 34 years of service. ALL ABOARD MAY/JUNE 2007 BIRTH ANNOUNCEMENTS • Track Repairer Jonathan Valinske and wife Kami welcomed son Geran, born April 15. • Signal Technician Inspector IV Gail Edwards and wife Leslie welcomed son Severin Joseph, born April 23. • Conductor/Brakeman/Engineer Landon Messelheiser and wife Lea welcomed son Cole Allen, born April 27. 3 M ILEPOSTS SERVICE AWARDS — APRIL AND MAY 1 Year Service Award (April) 10 Year Service Award (April) Brian Angus ...... Maintenance Michael Johnston ...... Maintenance Shirley Blancho ...... Real Estate Christopher Moore ...... Maintenance James Bruton ...... Maintenance Jeffrey Nelson ...... Mechanical Robert Clowers ...... Police & Security 10 Year Service Award (May) John Cusack IV...... Maintenance Antonelli Aron ...... Transportation Drew Dekeron ...... Information Services Roger Brown ...... Transportation Kirk Francies...... Maintenance Richard Teeples ...... Mechanical Tonya Grist ...... Passenger Services Patricia Hill ...... Passenger Services 15 Year Service Award (April) Kathy Kraft ...... Police & Security Steve Conlan ...... Mechanical Kristi Schneider ...... Passenger Sales & Marketing Ed Prusak ...... Mechanical Delbert Sellards...... Maintenance 15 Year Service Award (May) 1 Year Service Award (May) Ted Ashbridge...... Maintenance Kevin Arnold ...... Information Services 20 Year Service Award (April) Bradley Blattler ...... Maintenance Seth Branson ...... Transportation Matthew Brewster ...... Maintenance Michael Budd ...... Maintenance 20 Year Service Award (May) Danilo Corre...... Maintenance Gary Sutch ...... Bridges & Buildings Gale Dinsmore Jr ...... Transportation Gregory Wyatt...... Mechanical Ryan Farnum ...... Maintenance 25 Year Service Award (April) Joshua Foster ...... Transportation Bob Kooren ...... Mechanical Shawn Grimes...... Maintenance Mark Timblin...... Facility Maintenance Jim Hofer ...... Maintenance Emily Hoffman ...... Accounting William D. Hughes ...... Transportation Matthew Moore ...... Transportation BUDDING ARTIST Henry Morgan ...... Maintenance Rebecca Morris ...... Engineering Services Mark Nickles ...... Information Services Amanda Ojaniemi ...... Transportation Jay Olson ...... Maintenance Ethan Perry ...... Maintenance Richard Sabo ...... Transportation Benjamin Swanson ...... Transportation Larry Teague ...... Maintenance Robert Thomas ...... Information Services Brian Veatch...... Transportation David Watts ...... Maintenance Sean Wigley ...... Maintenance Theodore Woodward ...... Transportation 5 Year Service Award (April) Chris Craver ...... Bridges & Buildings Brandon Frazier ...... Project Management THE FAIRBANKS NORTH STAR BOROUGH RECENTLY PHOTO SUBMITTED Matthew Glover ...... Transportation HONORED HANNAH CORVEN, 6, DAUGHTER OF ARRC Bryan Montgomery ...... Bridges & Buildings BY BETH CORVEN. SAFETY COORDINATOR STEVE CORVEN AND WIFE Matthew Morrison ...... Maintenance BETH, FOR “EXCELLENCE FOR ORIGINALITY AND Kathleen Rogge...... Project Control CREATIVITY IN THE VISUAL ARTS.” SHE WAS THE ONLY 5 Year Service Award (May) RECIPIENT FROM UNIVERSITY PARK ELEMENTARY. Dean Nelson ...... Transportation ALL ABOARD MAY/JUNE 2007 M ILEPOSTS APRIL AND MAY SPOTLIGHT AWARDS The following individuals and groups were nominated Thanks to his design, employees will no longer be for a Spotlight Award during April and May 2007. exposed to the risk of hand injuries when releasing the passenger handbrake. 4 An Anchorage-based TOFC team recently transferred 3,000 tons of structural steel to Headquarters Building Receptionist and trucks from 130 railcars that arrived by Operations Clerk Lori Stebbins took security gondola from Seward. These loads required to heart when armored car guards arrived in a lot of extra work and the team pulled off a the front lobby mid-May to complete a pick- great recovery, again supporting the railroad’s up. She noticed that guard shoulder patches positive reputation for solid top-level rail serv- were different from the officers who normally call Tice. The following are members of this team: on the Railroad, and so she contacted ARRC Equipment Operator/Truck Driver Security to verify the officers were legitimate (EO/TD) Foreman Tony Sansone who before allowing the transaction to take place. supervised the effort, Van Load Operator (VLO) Warron Bainbridge, EO/TD Joe Human Resources Programs Manager Burton, VLO Larry Burton, EO/TD David Haag, Pat Winslow recently organized and EO/TD Bobby Hallman, EO/TD John Leis, VLO hosted a highly successful Drug & Alcohol Craig Schulz, EO/TD Leader Robert L. Smith, Jr., Round Table event. The event left a very positive and EO/TD Trainee Michael Zeznock. impression on drug and alcohol program administra- tors, Federal Railroad Administration representatives, Carman Richard Carter devised a passenger handbrake and a host of other participants from railroads around innovation that substantially increases employee safety. the country.

C ROSSINGS:NEWS Y OU C AN U SE RAILROAD, LYNDEN SHARE NATIONAL AWARD The Alaska Railroad and Alaska Railbelt Marine (ARM, ness like Lynden and Alaska Cargo Transport, now a a Lynden company) were presented the Argus Rail part of Northland, to help us find a solution.” Business 10th Annual Win-Win Award during the North American Rail Shippers Association (NRSA) Background on the Rail-Barge Service annual meeting in Washington, DC, May 25. The ARRC began offering rail-barge service to the award recognizes the successful revival of a rail-barge Lower 48 states in 1962, bolstered by development of freight service between Seattle and Whittier. the Trans Alaska Pipeline System in the 1970s. By the Argus Rail Business is an industry publication that 1990s, a changing marketplace and maturing oil indus- discusses various rail freight issues; readers include ship- try reduced demand for freight traffic, said Assistant VP pers who use rail. NRSA represents rail shippers on a MSS Patrick Flynn, who completed the award nomina- Tnational level. The win-win award honors the best rail- tion application. In addition, growing steamship service road-shipper partnerships in the industry. between Tacoma, WA, and Southcentral Alaska offered “By 1995 ARRC realized the Seattle-to-Alaska a lower-cost alternative for products that had tradition- market had changed so dramatically we had to funda- ally used rail-barge service, further depressing demand. mentally re-structure our barge business,” said VP The Alaska Railroad faced a choice — either find a Markets, Sales & Service (MSS) Steve Silverstein. way to revitalize and strengthen its rail-barge business “Since our ability to connect to the Lower 48, handle or abandon it. Because the barge option offered the our own equipment, and serve customers was a strategic only economical way to transport railroad rolling stock issue, we were lucky to find partners in the freight busi- to Alaska, ARRC decided to try to preserve the service. “The first step seemed counterintuitive — shed rail market share,” said Flynn. Instead of moving all traffic in railcars, the carrier leased deck space to Alaska Cargo Transport (ACT) and allowed many of its loads to be transferred to containers. Once in Whittier, containers were placed onto flatcars for transport to final destina- tions. The carrier then focused on commodities that were the most economically moved by rail. By increas- ing this business, ARRC was able to adjust its rate structure to expand its options. (See “Rail-Barge Link Award...” on page 5) ALL ABOARD MAY/JUNE 2007 C ROSSINGS: NEWS Y OU C AN U SE ARRC RENEWS SEVERAL FREIGHT CONTRACTS Seven out of every 10 dollars the Alaska Railroad gener- ARRC renewed a five-year contract with Usibelli ates in revenues comes from the freight business. When to haul coal from the Healy coal mine to fuel military freight is doing well, the company and the employees installation power plants at Clear AFS, Eielson AFB, 5 benefit. and Fort Wainwright. The three customers account for As Senior Freight Account Manager Rob Halpin nearly a half million tons of coal each year, with the puts it, “We realize stability in predictability.” demand highest in winter months. ARRC nearly lost For this reason, it should come as good news to Fort Wainwright as a customer a year ago when the every employee that our Marketing, Sales & Services power plant’s unloading facility broke. The post imme- (MSS) Division has been hard at it, maintaining long- diately switched to truck hauling until ARRC suggested standing core customers, as well as introducing poten- using Herzog unloading equipment to do the job. It Stial partners to the economic, logistical and environ- worked so well, that the customer rented the equip- mental benefits of rail transport. Literally months of ment for over a year and ARRC held onto the business. client education and negotiation have come to fruition “The Usibelli/Military Herzog operation would in the form of multi-year and annual contracts that go not have happened without the help and expertise of into effect in 2007. [Maintenance Assistant VP] Steve Pfeiffer,” said Long-time customer Alaska Steel signed a four-year Madsen. “Steve has a wonderful relationship with deal to have rail cars loaded with steel products barged Herzog from his BNSF days and really saved the day from Seattle to Alaska. This contract renews a business with this idea.” relationship that has been good for the railroad and Totem Ocean Trailer Express (TOTE) signed off Alaska Steel, representing the efficient movement of on a three-year deal to continue trailer service from the more than 120 steel-filled railcars per year. Port of Anchorage to Fairbanks. A steady customer for Overall gravel revenue is expected to remain fairly the past dozen years, TOTE consolidates the trans- steady, given recently-signed two-year contracts with portation needs of several trucking companies, and Central Paving Products, Anchorage Sand & Gravel, accounts for roughly half of the Railroad’s Trailer-on- and Quality Asphalt Paving. Gravel volume is expected Flat-Car (TOFC) business (Lynden Logistics accounts to be about 3 million tons, compared to a high of 4 for the other half). TOFC business transports nearly million tons in recent years. MSS is working closely 7,500 trailers per year, which are hauled north on four with Transportation and Mechanical departments to trains per week going from Anchorage to Fairbanks. lower expenses, making gravel operations as efficient as The recent one-year contract renewal with Spenard possible. Builders Supply (SBS) calls for the movement of nearly “Several factors are impacting gravel,” said Halpin. 700 flatcars laden with building supplies. According to “The total federal budget request was not approved, so Freight Services Coordinator Tim Williams, several fewer public works projects are funded. A shrinking freight trains per year carry SBS materials from the inventory of developable land in the Anchorage bowl Railroad’s dock in Seward to Anchorage, Birchwood reduces construction opportunities. With little con- and Fairbanks locations. struction activity in winter, significant gravel stockpiles One obstacle to crafting contracts spanning more exist in the spring, reducing demand. Even if there had than a year is the uncertainty of costs associated with been demand, a late spring precluded an early start to services of the Lower 48’s major freight railroads. None the construction season.” (See “Freight Contracts...” on page 6)

RAIL-BARGE LINK AWARD... (continued from page 4) rail-barge service is energy. Last fall, the Railroad moved ARRC also found a partner in Lynden’s new busi- 160-plus loads of pipe for BP’s pipeline replacement ness, Alaska Railbelt Marine. The two companies projects at Prudhoe Bay. Today, the railroad is well posi- designed and constructed three new barges, each having tioned to assist in whatever big project comes next, eight separate rail tracks and a 50-railcar capacity. So including construction of a natural gas pipeline. equipped, ARRC and ARM could offer regular service As business grew, Alaska Railbelt Marine adding out of Seattle. Barges now leave every Wednesday, creat- overhead racks to hold containers above the railcars, ing consistency in what was a sporadic schedule. increasing the company’s overall transport capacity, said Greater consistency and capacity also helped barge company President Mike Halko. Business has reduce transit turn times from 20 days to 14 days. Use grown so much that this spring Alaska Railbelt Marine of Whittier instead of Anchorage as the northern termi- put a fourth barge into service to assist during heavy nus also saves two days sailing time and cuts fuel costs. work loads and as a backup when another of the barges One of the industries spurring the growth of the is in dry-dock, Halko said. ALL ABOARD MAY/JUNE 2007 FREIGHT CONTRACTS... (continued from page 5) “ConocoPhillips can either negotiate with the Lower 48 will commit to a price structure beyond a year. This railroads directly, or have ARRC act as an agent, in limits the duration of contracts that involve Union order to get the pipe and chemicals to Seattle’s port. 6 Pacific (UP), Burlington Northern Santa Fe (BNSF), ConocoPhillips actually wanted a five-year contract and other railroads that are used to transport commodi- with us, but the four-year term coincides with the expi- ties to Seattle, where the Alaska Railbelt Marine barge ration of our contact with Alaska Rail Marine, the service takes over. Lynden company that operates the rail-barge service This was the case for ARRC’s one-year contract between Seattle and Whittier.” with BP, which renews the business of hauling pipe and Together, BP and ConocoPhillips account for chemicals from Lower 48 destinations (like Houston, about 40 percent of the annual barge service volume. STANDING L-R: TX) to Fairbanks, where materials are trucked to the And the barge business alone accounts for roughly $20 EMS APPRENTICE North Slope to support oil and gas operations. In addi- million in revenues each year. GRANT OJANIEMI, tion to this northbound transport (numbering 511 rail- “Rail Marine Operations Manager Kevin Meier and CARMAN STEVE cars in 2006), ARRC will backhaul about 160 carloads Interline Service Coordinator Tamara Schaut do a superb of corroded pipe back to the Lower 48 for recycling. BP job in maintaining the rail-barge-rail business success. STACEY, EMS JOHN replaced the old pipe with new corrosion-resistant pipe “It has everything to do with customer service,” said SCHNEIDER, following the corrosion-related oil spill in 2005. Madsen. “After the deal is signed, we have to perform CARMAN BRANDON “Our outstanding performance in transporting the to keep our customers happy and coming back.” DIANOSKI; CARMAN new pipe helped to establish a lasting relationship with Madsen negotiated the Usibelli/military coal, APPRENTICE JUSTIN both U.S. Steel and BP,” said Halpin. “These customers TOTE TOFC and ConocoPhillips contracts, while EARL, CARMAN BILL are coming back to the well, so to speak, expecting Halpin negotiated gravel, Alaska Steel, BP and Lynden RYAN, SHOP more excellent service.” TOFC contracts. Williams oversaw the SBS renewal. LABORER DAVE ARRC provides similar transportation services to “Thanks to the hard work of Lyle, Rob and Tim BURGLIN, CARMAN ConocoPhillips, which required a 287-railcar volume of every line of our freight business is up, except Flint APPRENTICE RYAN business last year. Fortunately, the Railroad managed a Hills,” said MSS Assistant VP Pat Flynn. “The tariff four-year renewal agreement with ConocoPhillips. “We dispute that has caused a decline in Flint Hills fuel WILLIAMS, were able to avoid the Lower 48 railroad pricing dilem- transport is beyond our control, but we’ve done all that CARMAN/WRITE- ma by taking this segment out of the contract terms,” we can to mitigate that decrease with increases in other UP/WORK LEADER said Senior Account Manager Lyle Madsen. areas.” TODD LEMAY, CARMAN/WRITE- UP/WORK LEADER S IGNALS: SPOTLIGHT ON S AFETY AND S ECURITY DON HARPOLE, CARMAN JOSH FAIRBANKS MECHANICAL MARKS 1000 DAYS CAPPEL, KNEELING The Fairbanks Mechanical Department marked 1,000 Yard Carshop on RIP 1. They are identified beside the L-R: BILL CARMAN days injury free on April 29. The department operates photo at left. Those not present for the photo include APPRENTICE VAN 24/7 with 22 employees working in the shop, yard, and EMS Mike Boodry, Carman Joe Budrecki, Carman various job sites in the field, from Broad Pass, north to Tim Conley, Carman Ernie Davis, Carman Apprentice NESS AND EMS Eielson AFB. They include three equipment mainte- Jackson Dianoski, Administrative Assistant Mary RANCE JONES. nance specialists (EMS), one EMS apprentice, 12 car- Dianoski, Carman Steve Greenough, Carman Geoffrey (PHOTO COURTESY men, five carmen apprentices, and one shop laborer. Kennon, Carman Gregg Poisson, Carman Brad Ricci, OF GEOFFREY A little more than half of the department gathered General Mechanical Supervisor Mike Smith, and KENNON) for a group photo on the south end of the Fairbanks Carman Apprentice Doug Wright. T “I believe housekeeping is a big player in this record,” observed Carman Geoffrey Kennon. “The employees take pride in their respective shops, keeping them clean and orderly. Tools are put away when not in use and where they belong for the next person to find.” But there’s more to it, said Kennon. “We have a number of new employees, and the experienced workers are taking the time to show them how to do the job, while being safe and productive at the same time.” Another factor, he said, is having the right tools for the job. “We have a number of specialty tools that cost a little bit, but the plus side is being able to do that job safely instead of improvising.” ALL ABOARD MAY/JUNE 2007 C ROSSINGS: NEWS Y OU C AN U SE NEW FATIGUE COUNTERMEASURES IN PLACE Co-Chairs Conductor Mike Weatherell and Trainmaster becoming overly tired. Based on research and discus- Randy Burington, and Engineer Steve Cain, have con- sion, committee members agree that there remain a cluded the work of the ARRC Fatigue Counter-measure number of other changes that maybe considered to help 7 Committee (FCC) initially formed in mid-March. After combat fatigue in the future. These include: analyzing information about workplace fatigue over • Installing full spectrum lighting in offices and shops nine weeks, the committee has crafted a number of • Using headsets as part of locomotive radio systems 2007 countermeasures specific to the Alaska Railroad. • Installing locomotive seats that facilitate better pos- AFETY Accomplishments to date include: ture and that recline for napping S Hotel Survey Card Program — Crew members who • Changing work station wall color GOALS Cmust stay overnight away from their residence are given • Providing nap rooms hotel survey cards on which to report facility problems • Using continuing education tools, such as posters • INJURY that interfere with sleep. The Alaska Railroad follows • Hiring on-site consultants to conduct training FREQUENCY up with contracted hotels to rectify such problems if possible. • Offering healthier foods in vending machines RATE • Assisting other departments with fatigue issues 10-Hour Rest for Extra Boards — By federal regula- < 2.25 tion, employees on-call to fill-in for regular employee • Shiftwork scheduling absences (known as “Extra Boards”) must be given a • Expanding the 10-hour rest period • SEVERITY minimum of eight hours rest between jobs. The • Lengthening call times for crews to be on duty RATE expanded 10-hour rest period for the extra boards at • Incorporating better tools for tracking to facilitate < 30.0 their respective home terminals has been widely accept- future fatigue-related research ed by the train, yard and engine (TY&E) crews. • TRAIN Relief Service Assignment (RSA) — Train crews can- TAKE A B REAK ACCIDENT not work over 12 hours and yard crews are often direct- ed to relieve a train crew that has reached the 12-hour WORD SEARCH #1 RATE limit (i.e. “dogcatch” a train). Yard crews asked to dog- Find the words listed below and circle them. Spelling < 1.25 catch a train often work overtime, increasing the poten- can go forward, backward, up, down, and diagonally. tial for fatigue, and escalating operational expenses. The Puzzle solution is on page 23. • VEHICLE RSA is a new job dedicated to replacing time-limited ACCIDENTS crews. RSA availability helps trainmasters to plan yard H W E W M R B L H Z G P X B M Y W H operations, and enhances communications between I H K S O L S T I C E E Y Z R S J K < 16 crew management and dispatch, and between crew K I W P M R A T S I L A N E D E R D management and trainmasters. Since the inception of I S W J J O M U V G L W V A J P R P RSA, ARRC has improved efficiency in the Anchorage N T R C R A O C H K O O N W G X C U Terminal. Yard crews remain in the yard where they are G L A C O A S T A L C L A S S I C W needed, and scheduling remains more consistent. X E I E B V E D H S L R D E Z V X E Educational Literature Mailed to Employees — The Q S L G F N E C I S E F D S A R L I committee obtained a booklet “Working Nights” that N T T K X P S D G S T I Z C T G T V provides concise solutions for managing fatigue. G O O R O Y R M E V U A A Y T A M D Published by Circadian Technologies Inc., an authority S P U T E E X R W G I T R G H J R N on sleep, the booklet was distributed to all ARRC B T R G I G V B R I I M G T G K A A employees in April. O P C C R A N U P O H S T F I G W R M X A E T A O E N O C N R A L N W G Software for Better TY&E Scheduling — The com- B L U I J Y V X S W S B S B Y P J G mittee discovered software designed to more efficiently G H O T V O J E Q S K D H N A Q C U plan TY&E operations. With greater information avail- E N L M L X R I L V A M Q T D V T L able to the dispatch center, crew management and crew R A F T I N G P V H K P G C R D U S dispatchers, TY&E employees benefit from more stable schedules that allow for better planning for sleep and OPIC UMMER ICK OFF off-time living. T : ARRC S K - • COASTAL CLASSIC • GOLDSTAR • RAILTOUR Napping Policy for TY&E — The committee suggested • DAYLIGHT • GRANDVIEW • RESERVATION a napping policy. ARRC is in the process of implement- • DENALI STAR • GRAVEL • SMOOTH START ing this suggestion with the forthcoming timetable and • DEPOT • HIKING • SOLSTICE operating circulars. • GIFTSHOP • PASSENGER • TOURGUIDE These actions are already making a difference in the • GLACIER • PROJECTS • VACATION DISCOVERY • RAFTING • WHISTLESTOP lives of Alaska Railroad workers most susceptible to ALL ABOARD MAY/JUNE 2007 S IGNALS: SPOTLIGHT ON S AFETY AND S ECURITY PAT GAMBLE: THOUGHTS ON SUMMER SAFETY As builders of a great railroad we focus a lot of atten- ... safety goes well beyond compliance tion on trying to recruit the finest people and then give 8 them the best equipment and best training we can. with regulations and procedures. Safety However, the equipment and training mean nothing if requires the foresight to anticipate a we injure any of our people as a result of senseless acci- dents. With the high summertime operating tempo problem and the strength of character comes an increased potential for risk, unless it is to step in and stop a risky activity thoughtfully managed in advance. Whose job is that? before an accident occurs. Operations? Maintenance-of-Way? Supervisors? AEvery railroader regardless of position, has a duty Each of us has been fully empowered to slow to watchdog safety. Safety is an integral component down, or to call “knock it off”, if something isn’t right. within our mission. Safety awareness has to be a natural Your gut feeling is really your experience talking. Go part of each and every activity we do, whether it is on with it! We will support you. I need your concerted or off the job. Each of us must be a part of the process effort to keep our safety culture way beyond just fanfare that seeks to identify and manage risk. For safety to be and slogans. What I need is for all of you to remain truly a part of our lives, we must realize that safety goes genuinely aware and personally concerned … think of well beyond compliance with regulations and proce- being safe as an obligation you owe to your family, your dures. Safety requires the foresight to anticipate a prob- teammates, and to yourselves. Have a great summer. lem and the strength of character to step in and stop a risky activity before an accident occurs.

I HEARD I T T HROUGH THE R AIL L INE CONDUCT CODES APPLY TO ALL EMPLOYEES HAVE A QUESTION: that mean that you and all the staff in the GOB building are no longer allowed to read newspapers anymore? Rules QUESTION? Are the ARRC Code of Conduct and are rules, but is this going too far? SEND IT VIA GCOR Rules for all Alaska Railroad And if not, do the rules apply to all employees, or only certain departments? SNAIL MAIL TO: Railroaders? Thank you. The Code of Conduct has several rules, “I HEARD IT — TNE Employees including a few like not being insubordi- THROUGH THE nate, quarrelsome, immoral, etc. GCOR RAIL LINE” Rule 1.10 states that unless permitted by ANSWER: P.O. BOX the Railroad, employees on duty must not Dear TNE Employees — 107500, Qplay games, read newspapers, magazines Good question … thanks for or other literature not related to their bringing it up. Let me clarify the ANCHORAGE, AK duties. I’ve been working here over 15 Railroad’s policy. Our GCOR 1.10 99510-7500 years and it’s the best job I’ve ever had. and our ARRC Code of Conduct During my lunch break, I’ve always read (#15) both refer to unauthorized INTERNAL MAIL the newspaper. If you didn’t play cards, time spent on reading or games. These rules make sense in that PHONE (X2589) you were taught to play by your crew; even managers played cards while on they are aimed at preventing gam- OR EMAIL TO: their breaks in the lunch room, mostly in bling, inappropriate literature being brought into the workplace, ASKPAT@ the mid-night when it was slow. Recently a manager got into an argument with an and recreating during work hours. AKRR.COM. employee and he didn’t like a statement that the employee Now, that said, managers may authorize appropriate made. So now, this manager gets angry and punishes the activity, as long as the privilege is not abused. If it is, entire group of employees by enforcing rules that even he the managers can shut it off to make a point. It sounds has broken in order to get back at the employee. We are no to me like this is what happened. I would expect any longer allowed to read any type of reading materials in the manager to strike a reasonable balance on this policy AOC. Not yet knowing about these changes, I had brought area, and employee cooperation is fundamental to strik- a newspaper to work and it was thrown away. I feel that ing that reasonable balance. both parties were wrong for the argument in the lunch room, and the supervisor is wrong to go “tit-for-tat” with an employee. So now that the rules are being enforced, does ALL ABOARD MAY/JUNE 2007 S IGNALS: SPOTLIGHT ON S AFETY AND S ECURITY EXERCISE TESTS LOCAL, STATE COORDINATION By Tim Allen 1 THE FAIRBANKS EXERCISE SCENE STAGED A FUEL ARRC Manager of Port & Homeland Security TRUCK AND TRAIN COLLISION. 2 LOCAL FIREFIGHT- The road to Alaska Shield / Northern Edge (AKS/NE) ERS PRACTICE A RESPONSE TO THE TOPPLED, LEAKING 9 2007 began June 25, 2006, with various federal, state FUEL TRUCK SCENARIO. 3 A RESPONDERS EXECUTES and local agencies committing to support the exercise. TRIAGE CARE. (PHOTOS BY TIM THOMPSON) There were numerous table-top exercises and long planning sessions in which the ARRC was represented. 1 There were four main objectives developed for the exercise: 1) Validate command, control and communi- Tcation plans and capabilities; 2) Validate mass care / medical surge plans; 3) Validate critical infrastructure protection plan; and 4) Determine private sector’s roles and capabilities. The basic scenario was focused on protecting all aspects of the energy sector, from North Slope oilfields to the Port of Anchorage tank storage yard. For the exercise, a group of terrorists planned to attack and destroy the energy sector including ARRC property targets. Some events clearly had a terrorism focus, while other events were simply accidents happening during heightened awareness. The ARRC was involved with several of these 2 events, to include activity on Elmendorf AFB and in the Port of Seward; however, the one involving interac- tion with the most agencies/jurisdiction was in Fairbanks on May 8. The scene: a south bound pas- senger train had just departed the depot with over 130 passengers and was about to cross the Charles Street crossing when a semi-truck pulling a load of diesel failed to stop and struck one of the rail passenger cars. The simulated collision resulted in the tanker turning on its side causing a fuel spill and the train derailing, with a majority of the passengers requiring immediate medical attention. Emergency response units from the City of Fairbanks, North Star Borough, and several volunteer fire departments responded. Ultimately, the Fairbanks Fire Chief became the Incident Commander. This was something new for the ARRC. The fact is there will be times when the ARRC needs to work with outside agencies to deal with an incident. This was one of those occasions. The exercise 3 gave ARRC the opportunity to work our Incident Command System (ICS) and work within the National Incident Management System (NIMS). The train crew in Fairbanks did an excellent job of initially reporting the situation to dispatch and emergency personnel. Within a few minutes of the incident, the Anchorage Operations Center was being staffed. Overall, the ARRC did an excellent job in documenting the event. However, over the next year we will be working on establishing protocol when working with other agen- cies. Special thanks to all who helped make Alaska Shield 2007 a successful exercise for the ARRC and State of Alaska. ALL ABOARD MAY/JUNE 2007 C ROSSINGS:NEWS Y OU C AN U SE ARRC EXPANDS HISTORIC DEPOT GIFT SHOP The Alaska Railroad tripled the size of the Historic shop set-up and take-down. With such benefits, the Ship Creek Depot Gift Shop this spring. Construction $50,000 ARRC-funded project promises to pay for 10 began in mid-April and was complete by mid-June. The itself in three years, says Simmons. Given less time to project was overseen by Manager, Guest Services John set up and close, the shop is open for business longer, Simmons, offering the customer service/sales perspec- and the larger secured area prevents loss from stealing. tive, and Facilities Director Paul Farnsworth, with the “This project would not be possible without the ARRC real estate point of view. hard work of Ann McIlhargie (Gift Shop Sales / The original 12-by-12-foot shop is located in the Inventory Technician) and the on-board sales staff, southeast corner of the depot’s passenger holding area. including Nancy Graham, Rose and Daniel Fretwell, TThe project extends the outer wall about 25 feet to the Nicole Kofoid and Kristin Alexander,” said Simmons. edge of the depot entrance. The open-air style expan- “Their dedication to increasing giftshop revenue and sion includes two doorways in the extended wall, each promoting the Alaska Railroad merchandise justifies the featuring tracked glass doors that slide together in the cost of gift shop expansion and improvements.” middle and lock. The existing cash register area remains ARRC has two stationary gift shops — in Ship the same, except that the west side display case is Creek and Denali Park depots — and onboard Denali replaced with a “barn door” entry for employees. Star and Coastal Classic trains. “We are investigating More merchandise can be stored in the expanded the feasibility of a Fairbanks gift shop,” said Simmons. shop area. Because displayed merchandise can be pulled “We have to determine if a north end shop can be into and out of a secure area, about an hour is saved in manageable, functional and profitable.”

C ROSSINGS:NEWS Y OU C AN U SE FAIRBANKS PUBLIC BUS STOPS AT RAIL DEPOT On May 29, the Alaska Railroad’s intermodal facility in Visitor Services Assistant Manager Karen Hautman Fairbanks got a little more intermodal with the advent encouraged stops at the rail depot. “Other than taxi and of a public bus system connection. Operated by the private vehicle, there is no means to get to and from the Fairbanks North Star Borough, the Metropolitan Area depot for residents or visitors,” said Hautman. “By Commuter System (MACS) includes six bus routes adding a bus stop in the morning, travelers can make PHOTO COURTESY around Fairbanks and North Pole. Two routes — Red their way from downtown to catch the train, and others and Blue — will stop at the depot in the morning, on can get to the depot to buy tickets or make reservations OF THE request, and on July 2, MACS will add an evening stop. in person if they wish.” FAIRBANKS “Both Red and Blue lines go past the two largest “Some of our summer riders are tourists who use NORTH STAR hostels in town,” said Dawn Albright, ARRC MACS to look around the communities. It’s a different OSupervisor of Fairbanks Passenger Operations. Most population and we wanted to know how we might bet- BOROUGH TRANSPORTATION area hotels provide transportation to air and rail termi- ter meet their needs,” said David Leone, Fairbanks nals, so the bus service focused on larger hostels on North Star Borough Public Transportation Coordinator. EPARTMENT D . College Road and University Avenue. “Last November we changed our bus routes significant- If a passenger aboard the ly. We hadn’t set up different summer vs. winter sched- bus requests, the Red Line ules before and so we wanted the input of the FCVB. will stop at the rail depot at They helped us understand visitor needs, including 7:28 or 8:05 a.m. and the accommodating the train schedule and providing closer Blue Line will stop at 7:33 access to major visitor attractions, such as the Riverboat and 7:58 a.m. Monday Discovery,” he said through Friday. The train In February, Leone also connected with Albright leaves the Fairbanks depot during a job fair. “Dawn has some concerns with the at 8:15 a.m. later morning drop off, and we appreciate that,” he On July 2, extended said. “We’ve already had several people use the service hours go into effect, and and I think with feedback, it will evolve over time to will improve the two morn- become even more useful.” ing stops at the depot, as well as provide an evening Indeed, Leone said he welcomes input from stop Monday through Friday that will accommodate Railroaders, valuing any observations and suggestions people arriving by train at 8:00 p.m. that may help MACS to provide a better service now as When the borough approached the Fairbanks well as for planning in future years. Leone can be Convention & Visitors Bureau for some guidance on reached at (907) 459-1196. what visitors may need from the bus system, FCVB ALL ABOARD MAY/JUNE 2007 S IDINGS:EMPLOYEE H APPENINGS EMPLOYEES CLEAN UP AND WELCOME PUBLIC 1 3 11 THE ANCHORAGE OPEN HOUSE WAS SATURDAY, MAY 5.

1 L-R: PATTI SCHUMACHER, JENNIFER CLARK, AND KIRSTEN SVEJNOHA HAND OUT ARRC HELIUM 4 BALLOONS.

2 TOUR GUIDE JANIE FERGUSON CHATS WITH A PASSENGER.

3 IN PREPARATION FOR THE OPEN HOUSE, MOW 2 SAFETY COORDINATOR 5 GENE LEWIS LED A SAFETY BRIEFING FOR THE TWO DOZEN OR SO RAILROADERS WHO CLEANED UP GROUNDS AROUND THE HEADQUARTERS AND DEPOT ON MAY 2.

4 AS IN YEARS W HAT P EOPLE S AY PAST, THE TRAIN HANKS FOR OPEN HOUSE REFLECTIVE MARKING RIDES DREW T , HUNDREDS OF RAIL Employees who receive letters, memos, cards, emails or May 1, 2007: Reflective Stripes FANS YOUNG AND other written appreciation for the Railroad as a whole I don’t remember when I started noticing it, but there OLD. are welcome to share the with rest of us. Please send has been a steady rise in the number of rail cars that have copies to Stephenie Wheeler at [email protected], fax reflective markings on their sides. As I have commented in 5 ANDY AND SUE 265-2365. the past, helping make trains more visible, especially those SCHIESTL MAN THE flat black tanker cars, is an excellent idea to improve safety DOOR PRIZE TABLE. May 16, 2007: Fairbanks Open House at crossings. As I sat at the crossing, I noticed that nearly I wanted to thank you for holding the Alaska every tanker car had a series of reflective stripes on their (PHOTOS BY Railroad Open House in Fairbanks last weekend (May sides. This time of year it’s hard to appreciate the impor- STEPHENIE E12). My husband, daughter and I had a wonderful time. tance of those stripes, but in dark of winter, approaching WHEELER) My daughter, who is 2, especially loved the balloons and an unlit crossing, it is significant. I commend the Alaska train ride. Thank you for holding such a great event. Railroad for making this modification. — Best Wishes, Lillian Misel (Fairbanks) — Toddy Boyce, Fairbanks North Star Borough ALL ABOARD MAY/JUNE 2007 12 RAILROADERS WALK FOR CHARITY CAUSES

NEARLY THREE DOZEN RAILROADERS AND FAMILY MEMBERS COMPRISED THE ALASKA RAILROAD CHEW-CHEWS TEAM IN THE MAY 4 VISITOR INDUSTRY CHARITY WALK AROUND DOWNTOWN ANCHORAGE. ACCORDING TO TEAM ORGANIZER SHEILA THROCKMORTON, THE CHEW-CHEWS GENERATED $1,085, WHICH INCLUDED THE CORPORATION’S $750 PAY- MENT OF RAILROADER ENTRY FEES. PARTICIPANTS PICTURED FROM LEFT TO RIGHT: BLAINE BERG, LINDA BERG, NANCY GRAHAM, CHRISTINA SMITH, SHEILA THROCKMORTON, CRYSTAL PICKETT, MEGAN OSTENDORF (FRONT), AAREN MCKENZIE (BACK), BRITTANY HALE (FRONT), TIM WILLIAMS (BACK), KAREN LEIS (FRONT), STORMY START (MIDDLE), SCOTT WINTHER (BACK), PATTY HILL, ROSEZETTA PROCTOR, ROBERT RUSSELL, STEPHENIE WHEELER, OUIDA MORRISON, SUSIE KIGER, TINA LALONDE, ISAAC LALONDE AND BRUCE LALONDE. OTHERS PARTICIPANTS WHO ARE NOT PICTURED: CAROLINA BONDOC, JENNIFER CLARK, BETH AND BILL ELLIOTT, EDIE HOUSE, PATRICIA HILL, STEPHANIE JOYNER, ANN MCILHARGIE, CINDY NIWA, LILLY PASIA, JUDY SHAPIRO, CHRISTINA SMITH, LORI STEBBINS, PAUL WHEELER, CRYSTAL WILSON AND PAM WINTERS. (PHOTO BY PAUL WHEELER)

LEGISLATIVE WRAP-UP... (continued from page 1) HB 151: Uniform Indemnification for Professional Services Contracts HB 109: Disclosures and Ethics/Bribery/Retirement Sponsor: Rep. Craig Johnson Sponsor: Rules Committee, by Governor request HB 151 requires uniform indemnification provisions in House Bill 109 strengthens Alaska Ethics law by: professional services contracts for all public agencies in • Requiring members of more executive branch the state. The bill makes each contract party financially boards (including ARRC) to file financial disclo- responsible for their own liabilities and distributes joint sures liability on a comparative fault basis. The bill does not • Prohibiting members of a governing board and change ARRC’s standard contract terms and conditions. executive officers of a state public corporation from engaging in lobbying activity for one year after HB 217: Cruise Ship Onboard Disclosures leaving the position Sponsor: Rep. Lindsey Holmes • Increasing requirements for public officials’ blind HB 217 addresses concerns of local businesses regard- trusts ing disclosure requirements for onshore activities, tour • Specifying when a financial interest in a business is promotion and shoreside retailers. The bill protects insignificant small business proprietary information while providing more information to passengers about shoreside activi- • Increasing restrictions on employment after leaving ties. HB 217 increases penalties for cruise line viola- service in the executive branch tions. • Barring political use of state aircraft except when the use is incidental Legislative success is aided by the Railroad’s positive • Requiring the governor, before granting executive reputation, which is the product of every employee who clemency, to disclose any personal interest and to helps maintain safety and integrity in Railroad opera- obtain an ethics determination from the attorney tions. Thank you! general ALL ABOARD MAY/JUNE 2007 S IDINGS:EMPLOYEE H APPENINGS RAILROAD SUPPORTS DEPLOYED GUARDSMEN Railroader and National Guardsman Sgt. First Class deployed to Afghanistan with his Air National Robert Kosusnik returned home June 1, after spending Guardunit, the 176th Mission Support stationed at a year in Afghanistan. Kosusnik was one of nearly 130 Kulis ANG Base. He has since returned to work at 13 members of the 207th Infantry Brigade who were the Railroad. deployed last year. Known as the Arctic Warriors, the • Conductor/Brakeman/Fireman/Engineer unit is based at Camp Denali on Fort Richardson. Christian Cederberg, Transportation Department BELOW LEFT: SGT. Kosusnik has been with the Railroad for nearly 15 was deployed to Iraq with his Army National Guard FIRST CLASS years, and colleagues recall him serving as in the Guard unit, the 3rd BN 297th Infantry stationed on Fort ROBERT for most of that time. He works in the Mechanical Richardson. Cederberg returned from Iraq in 2006, KOSUSNIK FALLS Department as a journeyman sheetmetal / pipefitter and has since received temporary orders to return Rhaving accomplished his apprenticeship at ARRC. INTO FORMATION possibly in fall 2007. While in Afghanistan, Kosusnik recalls long DURING THE • Locomotive Machinist Gerald Christensen, tedious hours, but “there was never a dull moment. Each OFFICIAL UNIT Mechanical Department is a member of the, day brought something new to contend with,” he said. WELCOME HOME Kosusnik oversaw accountability for the U.S. fuel Headquarters & Headquarters Company (HHC) CEREMONY HELD facility that served coalition forces. A contractor ran the 207th Group stationed on Fort Richardson. He is facility for the government, but Kosusnik made sure currently activated on military orders since June JUNE 4 ON FORT fuel purchases were property accounted for to prevent 2006 and is stationed at Fort Richardson. RICHARDSON. unauthorized use or stealing. • Brakeman Roy Degenstein, Transportation Kosusnik is understandably glad to be back and Department, was previously deployed to Iraq with BELOW RIGHT looking forward to returning to the Railroad, where a the Alaska Air National Guard unit, 176th Security L-R: MECHANICAL job awaits, said co-worker Don Freestone. Locomotive Forces, stationed at Kulis ANG Base. He has since MAINTENANCE returned to work at the Railroad. Operations Manager. Kosusnik estimates he’ll return to DIRECTOR DOUG the Mechanical Department sometime in July. • Electronics Mechanic Scott Langley, Telecom ENGEBRETSON, The Railroad remains committed to offering acti- Department, deployed to Iraq with his Alaska Army AND LOCOMOTIVE vated and deployed Guardsmen with the same or com- National Guard unity, 297th Infantry, stationed in parable jobs upon their return, as well as personal sup- Nome. He returned from Iraq in February 2007. OPERATIONS port by co-workers who help returnees reintegrate. • Brakeman Gerald Mullins, Transportation MANAGER DON Other Railroaders who have been deployed to serve Department, was deployed to Iraq with his Army FREESTONE, on active duty through service in the National Guard: National Guard unit, 3rd Battalion 297th Infantry, GREET THEIR • Conductor/Brakeman/Fireman/Engineer Roger stationed on Fort Richardson. He returned from Iraq RETURNING Brown, Transportation Department was previously in 2006, and has since received temporary orders to MECHANICAL return possibly in fall 2007. DEPARTMENT • Sean Wigley, Maintenance of Way, is a member of CO-WORKER. the Alaska Army National Guard Medical Command on Fort Richardson. He was activated on military (PHOTOS BY orders in August 2006 to attend training at Fort STEPHENIE Sam, Houston, TX. WHEELER) ALL ABOARD MAY/JUNE 2007 S IDINGS:EMPLOYEE H APPENINGS 19 BRAKEMEN GRADUATE TOUGH TRAINING Students entering the six-week Brakeman Training “The class is tough, and it’s not for everyone,” Course are hardly shoe-ins to graduate. On average just notes Adrie Setten, Director of Transportation. 14 six out of 10 pass muster while vying for the position of “In an interview, a candidate can sound excited brakeman on the Alaska Railroad. A brakeman is part about the job prospect, but there are several factors that of a three-person crew charged with building and mov- can become issues, and the training program brings ing trains. The brakeman works for the conductor in those to the forefront,” said Setten. “For example, a concert with an engineer. brakeman has to be comfortable with heights given requirements to climb on tall equipment. Some folks are simply intimidated by large equipment or they just don’t have the stamina to meet the physical demands of S the job. Others can’t handle the odd-hour schedules.” The first two weeks of brakemen training are led by an instructor from the National Academy of Railroad Sciences (NARS), which is affiliated with the Burlington Northern Santa Fe Railway Technical Training Center in Overland Park, Kansas. The NARS instructor explains key operating rules and safety proce- dures. The second two weeks find students in the field, learning hands-on from experienced Alaska Railroaders, including conductor Ken Smith, engineer Larry Carbaugh, and brakemen Ted Lombard, David Bang CLASS OF MAY 14 Each year ARRC offers one to three Brakeman and Bryce Pearson. The training takes place on equip- Training classes. For an optimum learning environ- ment that has been relocated to an isolated area on Fort BACK ROW, L-R: ment, classes are kept to about a dozen students. Last Richardson. Working in small groups, students learn GREG SHERMAN, year, there were three classes of 12; 18 of the 36 passed about switch operations, car composition, brake sys- JOHN KATKUS, and became brakemen. This year, 27 were interested tems, moving cars, the practical aspects of railroading RAY POHL, and two classes were formed. The first class graduated and more. Students rotate through several stations dur- CHRIS FLOYD AND nine students May 14, and the second class graduated ing 10- to 12-hour days. RANDY RICE another 10 May 29. (See “Brakemen Training...” on page 15)

FRONT ROW, L-R: DOUG OSBORN, S IDINGS:EMPLOYEE H APPENINGS ERIC WRANGELL OLLEGE STORY FEATURES STUDENT JOHN RICE AND C PETS RYAN RODRIGUEZ Editor’s Note: The following story excerpt is reprinted with railroads in the United States, where she managed rail- permission from The Ohio State University News in road projects and wrote project descriptions and specifi- (PHOTO BY Engineering magazine, Vol. 78, No. 3, 2006. cations. STEPHENIE Lammeier’s aunt and uncle, who reside in WHEELER) EXCERPT: Alaska, housed her for the duration of the Student Snapshot: internship. Her time spent in Alaska included Alaskan Internship Sparks many new opportunities: climbing moun- Career Interest for Civil tains, detonating explosives, becoming famil- Engineering Student iar with 600-ton machinery and driving along the westernmost U.S. highway. TBy Emily Burkhart, By far the best experience for Lammeier Communications Assistant, was positioning 5,000 pounds of dynamite in College of Engineering, a rock wall that needed to be cleared to make Ohio State University way for a road expansion in Curry, Alaska. Nicole Lammeier’s “What I Then she personally detonated the controlled NICOLLE LAMMEIER Did Last Summer” list is unlike explosion as she sought protection under an that of any of her classmates. excavator’s backhoe. Lammeier, a senior in civil engineering, spent last sum- Many days Lammeier would awake at 5 a.m. to mer more than 3,000 miles away from campus in drive some 300 miles to a destination for work. “I had Anchorage, Alaska. She worked more than 40 hours a the opportunity to travel around the lower half of the week for the Alaska Railroad, one of the last full-service (See “PETS Student...” on page 15) ALL ABOARD MAY/JUNE 2007 BRAKEMEN TRAINING... (continued from page 14) fundamental train mechanics (i.e., how air brakes “I’ve learned the value of patience when teaching work, etc.). If passed, the engineer apprentice spends six the newest employees the language of railroading and months OJT driving the train, followed by a three- to explaining why we operate in the manner we do,” said four-year commitment as an apprentice. A full-fledged 15 Smith. “Providing a solid base in safety education and engineer must score high on a final check ride. rule compliance establishes the kind of culture needed “Whether an engineer, conductor or brakeman, for a successful career at the ARRC.” members of an Alaska Railroad train crew should be The final two weeks is spent OJT-style with stu- proud of earning their post,” said Setten. “We maintain dents assigned to an operating crew, mirroring every- high standards. And, it all starts with making the cut in thing they do. The course ends with a final test. this course.” Passing the course is based 50% on academic test scores and 50% on performance in the field. Final standing in the class establishes seniority that will fol- low the new brakemen throughout their careers. Those with the highest seniority are given first opportunity to pick work schedules and work locations. The brakeman position is the starting point in a recognized progression of greater responsibility within a train crew. And, there are very clear steps to follow in the quest for upward mobility. Following the initial 6-week course, a brakeman must work for at least six months before becoming eli- gible to take a three-week NARS course in Kansas, which focuses primarily on rules and safety. If passed, a brakeman can pursue six months of OJT as a conduc- ABOVE: tor apprentice, learning to be responsible for the crew CLASS OF MAY 29 and for the safety of others working around the crew. The next step is to take on the duties of BACK ROW, L-R: hostler/conductor, responsible not only for the crew, TRAVIS SPURLING, but also for basic locomotive maintenance… fueling, MATT WITWER, fluids, cleaning, etc. A two- to three-year commitment CHAD BREEDEN, in this post is expected before progressing further. RICHARD The final position in the train crew progression is WILKISON, engineer. Pursuing this position starts with another DAVID ROEMER three-week course at NARS, learning more rules and AND VSEVOLOD SELEKSKIY.

PETS STUDENT... FRONT ROW, L-R: (continued from page 14) Greg Lotakis with a grin. “As with Nicole, most of KYLE BERGER, state with different projects and trips, so it was easy to these students really enjoy the diversity of our projects TERRY LEE be up that early and on the road because I was excited and, of course, the location. Thousands of visitors pay BOOKENBERGER, for what the day would bring. I didn’t know what I thousands of dollars each year to experience this state. JR., DUSTIN would see or do until I arrived on location,” she said. So our students are typically grateful to get paid to HETTENBURG AND Lammeier learned so much from the experience spend a summer in Alaska. They arrive motivated.” STEVE ANDERSON that she headed back to Alaska over winter break to According to Project Management Director Mark network with employers and look for new job opportu- Peterburs, during the last two weeks of May the PM BOTTOM: nities. “Ohio State gave me the eagerness to explore the department hires one to two students each year, world around me and not be frightened of new places depending on work load. Candidates must be attending CONDUCTOR/ or new things,” says Lammeier. “I’d like to see what it’s a four-year engineering program and be in their third BRAKEMAN KEN like to live in Alaska during the winter, with its long or fourth year. So far, PM students have been hired SMITH HELPS WITH hours of darkness; ultimately, it’s my goal to live and from Alaska, New York, Ohio and Texas. They have HANDS-ON work there.” been recruited via the ARRC web site, through univer- TRAINING. End excerpt. sities with railroad engineering programs, and at an annual AREMA (American Railway Engineering & (PHOTOS BY “Nicole was a great asset. She, like many of our Maintenance of Way Association) student fair event. STEPHENIE project management students, have been dynamic, WHEELER) energetic and smarter than us,” said Project Manager ALL ABOARD MAY/JUNE 2007 C ROSSINGS:NEWS Y OU C AN U SE HISTORY CHANNEL SERIES FEATURES ARRC The History Channel has been in Alaska since March The biggest challenge has been accommodating shooting footage, interviewing Alaskans and formulat- production requirements and ideas, without interfering 16 ing stories for a 13-part series called Tougher in Alaska. with the operation of the railroad,” said Thompson. The idea was born from an earlier special on the “Fortunately I got a lot of help from a number of key state that was undertaken by the same production crew railroaders… Pat Shake, Steve Pfieffer, Bruce Pryke, last year. Unfortunately, the footage on the Railroad Bruce Gough, Dwight West, Jack Galenas, Louie had to be edited out of the two-hour show due to an Bencardino, Dave Hamre, and of course the train overabundance of material. However, the production crews, to name a few. Their coordination was essential.” company used the exceptional railroad shots to sell the Being featured on the History Channel lends excel- notion of a longer multi-segment feature on Alaska. lent credibility to the telling of the railroad’s critical role THence, Tougher in Alaska. in shaping the state’s development, said Thompson. The crew is expected to wrap up taping by the end “Passenger operations has done very well in generating of 2007 with the first segment airing in January 2008. national and international coverage about our people The premier segment may be the one to feature the transportation services. Tougher in Alaska will offer Alaska Railroad. exceptional national and international exposure to the External Affairs Manager Tim Thompson has coor- other side of the railroad… the side that very few see.” dinated the crews’s access to important aspects of rail- “While passenger services has been the face of the road operations. These include the three-crew coal railroad, the History Channel will feature our bread hauling operations, installing continuously welded rail, and butter,” added Thompson. “The vast majority of tie gang activity, instilling a safety culture in mainte- the public have absolutely no idea what it takes to run a nance of way, and section crew functions in Nenana. railroad 365 days a year in a climate that can be gruel- The need to obtain some winter footage appears ing. The History Channel series will tell that story.” inevitable, although it is not yet scheduled.

ABOUT THE HISTORY CHANNEL SERIES HOST It wouldn’t be a tough show without a tough host and Geo Beach fits that description to a “T.” PHOTO OF SERIES Tougher in Alaska host Geo Beach, who stands HOST GEO BEACH 6’3” tall and weighs in at 235 pounds, has been liv- COURTESY OF THE ing large in Alaska for 25 years. He grew up on the HISTORY CHANNEL. New England coast and moved to Alaska on the darkest day of the year, Winter Solstice, in 1983. Since then he’s worked as an Alaskan firefighter and medic, logger, and commercial fisherman — includ- ing king crabbing on the Bering Sea in winter. He knows his way around oil spills and industri- al kitchens, construction sites and law enforcement. Like most Alaskans, Beach has endured plenty of big waves, winds and blizzards while working and living here. He’s also survived earthquakes, avalanches, floods, fires and volcanic eruptions. In fact, his house in Homer, Alaska, overlooks four steaming vol- canoes on the Kenai Peninsula. Beach is no stranger to broadcast media, either. He’s an award-winning writer, journalist and radio correspondent. His radio commentaries “Top of the Planet” and “World of Mouth” are broadcast by National Public Radio (NPR) and Public Radio International (PRI). In April 2007 he was recognized with a best columnist award from the Alaska Press Club for his “Top O’ The Planet” column in the Anchorage Daily News. ALL ABOARD MAY/JUNE 2007 T HE W YE OF I T: OUR C USTOMERS AND C OMMUNITIES ARCHITECT OFFERS VISION OF SHIP CREEK Young architectural visionary Paul R. Baril adopted Others were equally impressed. Anchorage as home when he moved here from Los Anchorage Planning Department Director Tom Angeles in 1992 at age 10. Fifteen years later, upon Nelson was delighted with how well Baril’s plans fit 17 completion of his post-secondary education, Baril with the city-approved zoning guidelines for the Ship returned to his hometown bearing gifts born of his col- Creek Area, as well as with the city’s proposed down- lege pursuits. On May 31, the budding architect town comprehensive plan. MAY 31 shared thoughtful, educated ideas for developing 27 Anchorage Downtown Partnership Director Becky PRESENTATION: acres of railroad property at the far west end of the Beck was gratified to learn of the project’s phased Anchorage yard. approach. And everyone was excited about the project’s 1 THE AERIAL “I want to thank Jim Kubitz and the Alaska public plaza as the stand-out feature showcasing Baril’s MAP INDICATES THE Y LOCATION OF THE Railroad for all the contributions in assisting me with talent and vision. my architectural graduate thesis project,” said Baril in a “I’ve personally seen the city pay millions for the PROPOSED 27-ACRE note regarding the presentation. “I have enjoyed work- same type of work,” said Assemblyman Allen Tesche. “I DEVELOPMENT ing on this project especially since it is located here in think the next step is to get developers together to lis- AREA, SITE 1 AND Anchorage and the overall goal of the project was to ten to these ideas. Ask them what is feasible, and what SITE 2. provide an example to enhance the Ship Creek District they would need to pursue the project.” and connect downtown to the waterfront.” “The quality is such that the next step is to market 2 THE PROPOSED Baril had attended the University of Alaska, before it,” agreed President/CEO Pat Gamble. DEVELOPMENT’S making the move to the University of Idaho, where he “I am excited to see what the Alaska Railroad will COMMON PUBLIC earned bachelors and masters degrees in architecture. do with all the development the Real Estate Division is “PLAZA” FEATURE While attending school, Baril interned with Porath planning, and I look forward to working together in WAS APPLAUDED BY Tatom Architects, Inc. (PTA) an Anchorage-based firm the future,” said Baril. EVERYONE VIEWING that he now continues to work with full-time. THE PRESENTATION. ARRC VP Real Estate Jim Kubitz introduced 1 Baril, noting that his professors had instructed thesis- 3 PAUL BARIL seeking students to assume that money was no object. DELIVERS HIS This comment drew laughter from those invited to lis- PRESENTATION ON ten, including Railroad executives and select Anchorage MAY 31. civic and business leaders. After the presentation, a live- ly round of questions and discussion demonstrated how (PROPOSAL IMAGES Baril’s work had inspired. COURTESY OF PAUL “What Paul is too modest to tell you is that his BARIL’S THESIS professors remarked that this thesis is equivalent to at PRESENTATION; least four thesis… the quality and quantity he produced PHOTO OF PAUL goes way beyond what was required,” said PTA BARIL BY Principal Bill Tatom. STEPHENIE WHEELER) 2 3 ALL ABOARD MAY/JUNE 2007 T HE W YE OF I T: OUR C USTOMERS AND C OMMUNITIES RESPONSE TO SEWARD COAL DUST SITUATION • Railroad cited for Seward coal dust It is important for the state, the • Regulators investigate Seward coal dust complaints 18 railroad and Usibelli Coal Mine to keep No doubt railroaders have seen the headlines this facility in operation so that regarding our coal operations in Seward this spring. Unfortunately, most stories did not include news of the opportunities to export bulk products railroad’s quick response and mitigating actions. There like coal will not be lost. THE STACKER- was a lot we did right. RECLAIMER Kelzenberg to the scene within a week to observe the EQUIPMENT First, A Little History situation first hand. They agreed that a good deal of the CThe export coal contract, supplying coal from problem seemed to stem from an extremely dry and MOVES COAL TO Usibelli Coal Mine (UCM) to the Republic of Korea, windy spring. In response, ARRC modified train sched- AND FROM THE has been in place for about 23 years. It is one of the ules and delayed unloading until winds diminished in STOCKPILE. very few export opportunities from South-central an effort to minimize dust emissions. (PHOTO BY CHRIS Alaska apart from fish. It has provided jobs and income Early on, the railroad also invited specialists from AREND) streams to UCM, Alaska Railroad and a Seward work- the Alaska State Department of Environmental force for that entire time. Conservation (ADEC) Water Quality and Air Quality With the blessing divisions to observe and to provide guidance. ARRC and support of the also called in its own air quality consultant to investi- state, city and railroad, gate the situation and to recommend some immediate the facility was built solutions. In addition, the railroad looked to city offi- and originally owned cials and to the public for ideas. by a Korean company In late March, the Alaska Railroad formed a called Suneel. Technical & Community Task Force to deal with the Subsequently it sold to dust control issue. The group includes the city, regula- Hyundai Merchant tory and community members, and is headed by ARRC Marine. With federal Assistant VP for Health, Safety and Environment grant dollars, the (HSE) Mark Mitchell, CIH, CSP. Alaska Railroad pur- Hired in February, Mitchell is a board certified chased the facility in industrial hygienist (CIH) and certified safety profes- 2003, but Hyundai remained the operator until January sional (CSP). Equipped with a bachelor’s degree in biol- 2007. ogy from Michigan Technological University and a After the latest facility operating agreement with teacher’s certificate from University of Wisconsin- Hyundai expired, ARRC settled on Aurora Energy Oshkosh, he taught high school science and math for Services, a subsidiary of UCM, as the new operator. six years prior to starting a career in environmental con- “It is important for the state, the railroad and sulting. After consulting, he went to work for BNSF UCM to keep this facility in operation so that opportu- Railway and provided environmental health, industrial nities to export bulk products like coal will not be lost,” hygiene and disability care management for 11 years said VP Markets, Sales & Services Steve Silverstein. before joining ARRC. “Unfortunately, this business has provided jobs over the Mitchell led the first task force meeting in Seward years but little in the way of margins that would allow a on March 28, before the first coal ship arrived. Halfway new and more effective facility to be built.” into filling the first coal ship in early April, it became He added, “We continue to assist UCM in the clear that additional measures were needed to control marketing of coal into the international arena and dust during ship loading as well as during train unload- recently added some contracts to deliver coal for Chile. ing. Farnsworth worked with facility employees to thaw If, in the future, a solid core of business can be devel- and operate fire hoses to dampen and suppress dust in oped, the Seward Coal Terminal will continue to bring the coal pile and along the conveyor leading to the revenue into the state and broaden our resource dock. It worked. Dust levels were far better during the exports.” last half of the ship loading. Before the second ship arrived in early May, Weird Weather Farnsworth directed the facility to bring more suppres- The Railroad first received a handful of complaints sion equipment online. Two additional spray bars were regarding coal dust on boats in the harbor in late connected to the hydrant water system; existing sprin- February. ARRC dispatched Transportation Director klers were thawed; and, the stacker/reclaimer spray arms Pat Shake, Facilities Director Paul Farnsworth, and were installed. Health-Safety-Environmental Specialist Matt (see Seward Coal Dust...” on page 19) ALL ABOARD MAY/JUNE 2007 SEWARD COAL... This year arid conditions at the mine, evaluate existing systems and compare the technology used at other coal terminals. “Either one can probably as well as in Seward, produced an come up with a solution, but we think their recommen- exceedingly dry, and thus dusty, dations combined will produce the best solution,” 19 noted Farnsworth. commodity. Farnsworth had suggested The Raring Corporation (TRC), based in Vancouver, WA. TRC designs, supplies (continued from page 18) and supports dust “This has not been necessary in the past due to control systems in Seward’s typically wet spring,” said Farnsworth. “If any- mining, wood, thing, coal buyers would have liked a less wet product. power, cement, steel, This year arid conditions at the mine, as well as in and other industries Seward, produced an exceedingly dry, and thus dusty, worldwide. TRC is commodity.” specifically experi- Also before the second ship arrived, the task force enced with rail oper- conducted a second meeting April 30 during which ations and coal min- ADEC representatives were on-hand to answer ques- ing/delivery opera- tions. About 20 participants further discussed concerns, tions. TRC will while ARRC explained future strategies. review the SLCF’s Even with ARRC’s mitigating efforts and status as water dust suppres- a new operator, ADEC issued a notice of violation sion system and make recommendations for improve- A SHIP LOADS COAL (NOV) in mid-April. “We intentionally invited both ments that will allow for winter operation of the spray. AT THE SEWARD Air Quality and Water Quality ADEC personnel to system. COAL LOADING visit our site when things were bad. I think that shows “I strongly suggested Jim Friedman of AMEC FACILITY DOCK. that we were operating in good faith, and ready to because I had worked with him in the past while with (PHOTO BY CHRIS accept whatever determination that would come from BNSF,” said Mitchell. “I know of his expertise first AREND) their observations,” said Mitchell. hand; he has extensive experience designing dust con- “There were no specific air contamination stan- trol systems for other coal operations in Canada.” dards that were tripped because there are none that AMEC will investigate the existing dust collection sys- apply to us,” said Mitchell. “Rather, ADEC referred to tem (bag houses), the ventilation system in the coal car the ‘King James law,’ i.e. thou shall be a good neighbor unloading facility and make recommendations for to thy fellow neighbors. By virtue of having coal dust improvements to these systems. from our processes ending up on the property of other Recommendations from these experts will be individuals, we were not living up to that standard. incorporated into ARRC’s response to the ADEC Hence, the issuance of the NOV.” NOV, which is due in August. “We left the last task force meeting with plans to Outside Expertise reconvene sometime during the summer, when we can ARRC’s HSE and Facilities departments are work- provide a comprehensive update of what we have ing to respond to ADEC’s concerns and to prevent a learned from the experts and our response to ADEC’s reoccurrence. To assist, ARRC hired outside experts to NOV,” said Mitchell.

S IDINGS: EMPLOYEE H APPENINGS EMPLOYEE PICNICS SLATED FOR MID-JULY Railroad Employee Picnic in Anchorage Thursday, July 12, 2007 3:00 - 6:00 p.m. Behind the Headquarters Building

Railroad Employee Picnic in Fairbanks Thursday, July 19, 2007 11:00 a.m. - 1:00 p.m. Fairbanks Intermodal Facility & Depot ALL ABOARD MAY/JUNE 2007 T HE W YE OF I T: OUR C USTOMERS AND C OMMUNITIES SHEFFIELD DEPOT BECOMES EVENT HOTSPOT Over the past two years, the Bill Sheffield Alaska Marketing Manager. “Brides love the stunning architec- Rail Depot has gone from a seasonally-used train sta- ture, great views, and flexible floor-plan, and our state- 20 tion to one of Anchorage’s most in-demand venues for of-the-art kitchen is a caterer’s dream come true.” prom, weddings and other special events. April Andrews, whose wedding was held at the 2007 began as the “Year of the Proms,” as the depot this past March wrote: “I selected the facility Sheffield Depot served as the site of this annual rite of because of the beauty and sophistication in the design passage for students from West Anchorage, Heritage and layout; my husband agreed with the selection Christian, Service High, Eagle River, Highland Tech because of the reasonable pricing and the ability of Charter Charter School, South Anchorage High choice when selecting vendors. The facility provided an School, and the Junior Reserve Officers' Training elegant yet romantic setting for both our wedding cere- O Corps. mony and reception. We couldn't have selected a bet- “It was per- ter facility of our special day…. Thank you!” fect... the best set While the upper floor of the depot provides a dra- up I’ve ever seen matic backdrop for wedding receptions, many couples for a dance,” said are opting to hold the nuptials in the building as well. Danielle The versatile design allows for ceremonies to be held on Manwaring, a the first floor with a traditional “chapel-style” set up, on graduating senior the upper floor with guests seated “cabaret-style” while who attended the enjoying stunning views, and even on the landing of Service High the grand staircase, with friends and family looking School Prom. “I down from above. liked how the “However they want to celebrate their special day, photo-taking area we’re happy to help make it work,” stated Susan was set up downstairs, and how the escalators moved Malekos, Facilities On-Site Coordinator. up to the dance floor upstairs. The decorations were Now that the word is out, wedding business is great. It was just really nice…” booming. According to Werner, “We’ve grown from “I just want to thank Renae and Susan for all their just a handful of events over the past few years, to wed- guidance and help,” said Danielle Clay, prom organiz- ding ceremonies and receptions scheduled every week- ing teacher at Eagle River High School. “Everything end from mid-June through the end of August during went very well and I have heard nothing but great summer 2007. Plus, there’s an average of two weddings things from students and staff today about how much a month booked at the depot well into 2008.” they liked the depot as a venue and really enjoyed In addition to the Bill Sheffield Depot, customers themselves. Thanks again.” may also rent the Anchorage Historic Depot, Fairbanks With such positive feedback, it’s no wonder that Depot, and Seward Inter-modal Facility for special Prom activity grew from one dance in the spring of events. For more information, contact Renae Werner at 2006 to seven in the early months of 2007. 265-3910 or visit AlaskaRailroad.com. If projected rental activity for the summer months BELOW LEFT: is any indication, wedding planners are just as enthused Brides love the stunning architecture, PROM-GOERS ENJOY about the depot’s elegant atmosphere. “From upscale great views, and flexible floor-plan, THE UPPER FLOOR blowouts to casual family affairs, the Sheffield Depot and our state-of-the-art kitchen is a AS A DANCE AREA. has become a popular location for wedding receptions (PHOTO COURTESY of all types and styles,” said Renae Werner, Facilities caterer’s dream come true. OF FIVE STAR ENTERTAINMENT)

BELOW RIGHT: THE UPPER FLOOR OFFERS SPACE FOR ELEGANT DECOR FOR MANY GALA EVENTS. (PHOTO COURTESY OF DEPOT MARKETING) ALL ABOARD MAY/JUNE 2007 C ROSSINGS:NEWS Y OU C AN U SE STRATEGIC PLAN INSIGHT: #4 MILESTONES President & CEO Pat Gamble encourages each employ- 4) ARRC Milestones; 5) Landscape (hot topics and ee to become familiar with the ARRC 5-year Strategic issues); and 6) 5-Year Strategic Program. Beginning Plan, a guiding document that condenses corporate his- with the Nov / Dec 2006 issue, All Aboard has pub- 21 tory, challenges and opportunities, mission, goals and lished the first three sections in concurrent issues, and specific objectives in 25 compact pages. the “Milestones” section follows in this issue. The full The Plan is comprised of six sections: 1) President’s strategic plan is posted on our internal web site. Hard Overview; 2) Corporate Foundation; 3) ARRC Today; copies are available from Bruce Carr, x2468. Alaska needs • Each year the Alaska Railroad takes stock of both its Complete the entire Reliability Excellence transi- a safe, Paccomplishments and unmet challenges. From this tion plan by 2009. annual analysis, the management team establishes a new • Set up an annual programmatic investment plan reliable, baseline of goals and objectives for both the short and for ARRC facility infrastructure, including yards flexible long terms. and marine facilities, to meet business, growth, railroad with ARRC Five Year Objectives employee, and community requirements. • Ensure ARRC attracts and retains excellent which the • Reduce employee injuries to no more than 2.0 per employees by being known as a premier Alaskan communities 200,000 man hours. employer and by continuously improving our • Eliminate 25% of at-grade road/railroad crossings. employee training working environment, remuner- and rail • Achieve and sustain an operating ratio of at least ation, and benefits. customers 0.98 by 2011 • Work to harmonize ARRC business and develop- can better • Generate and sustain company-wide cash flow, ment plans with railbelt community business and measured as net earnings plus depreciation, of $39 development efforts. partner to million per year by 2011. • Maximize return from existing business relation- meet today’s • Generate and sustain cash flow from real estate ships and seek out new profitable opportunities requirements, activities of $9 million per year by 2010. without sacrificing world class customer service. while • Fully implement Collision Avoidance System tech- • Build the bridge across the Tanana River. nology by 2008. • Extend the rail line to Delta Junction. planning • Reduce average running time for freight trains • Complete the accelerated Track Rehabilitation confidently between Anchorage and Fairbanks to consistently Program (TRP) plan by 2012. under 10 hours. for tomorrow.

2007 Corporate Goals Security • Complete the ARRC Security Plan Safety • Conduct the first live training exercise • Achieve the 2007 individual Safety goals, with emphasis on human factor incidents listed below General achieving “0” violations for: a) Blue flag violations, • Complete 2007 Capital Work Plan with less than b) Switch run throughs, and c) Runaway cars $1.5 million project carry over at year end • Implement CMMS Inventory Management for Financial Signals/Telecom & Facilities Maintenance • Complete year 2 of the Track Rehabilitation • Establish the Locomotive Power Management Program (TRP) plan as scheduled functions within the Mechanical Department • Generate $26.6 million in cash flow company- • Conclude the Ship Creek basin EPA consent wide with Real Estate activities contributing $7.6 decree. Engage FRA for reimbursement million to that total • Run Anchorage to Fairbanks 75% of the time • Enhance and expand the on-line financial metrics within 12 hours dashboard suite • Engineer startup of a Regional Transit Authority in • Implement an improved capital project monitor- Southcentral ing/reporting solution • Complete at least one major Ship Creek develop- • Continue implementation of the Real Estate acqui- ment project or initiative sition strategy, focusing on Whittier • Conclude the Eklutna Quarry and land swap agreements ALL ABOARD MAY/JUNE 2007 Five-Year Forecast — Capital Budget 2007 2008 2009 2010 2011 a(in millions) Budget Forecast Forecast Forecast Forecast TOTAL ARRC Internally 22 Generated $ 15.6 $ 18.9 $ 23.0 $ 28.6$ 32.0 $ 118.1 Revenue Bond Funded $ 31.1 $ 22.2 $ 25.9 $ 22.6$ 20.8 $ 122.6 A well- Federal Railroad balanced Administration 00000 $ 0 capital Federal Transit |investment Administration $ 35.1 $ 38.1 $ 40.5 $ 41.7$ 42.9 $ 198.3 program is Federal Highway absolutely Administration $ 1.7 $ 1.7 $ 1.7 —— $ 5.1 essential to Department of corporate Defense $ 16.0 $ 12.0 $ 12.0 —— $ 40.0 vitality and growth. Total $ 99.5 $ 92.9 $ 103.1 $ 92.9$ 95.7 $ 484.1

Major Capital Projects Timelines, 2006-2010+ 2006 2007 2008 2009 2010 Beyond 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1H 2H 1H 2H Bridge Program

Track Rehabilitation

Continuous Welded Rail

Collision Avoidance System

Fairbanks Freight Intermodal

Anchorage Carshop

Anchorage Locomotive Fuel/Svc Facility

Anchorage Capacity Improvements

Ship Creek Intermodal

Nenana Rail Realignment

Fort Wainwright Realignment

Passenger Equipment Acquisition

Northern Rail Extension

Fairbanks - North Pole Realignment

Wasilla Transportation Corridor

South Wasilla Track Realignment

Concept Engineering NEPA/Engineering Procurement Construction ALL ABOARD MAY/JUNE 2007 Five-Year Plan — Operating Budget

2007 (in millions) Budget 2008 Plan 2009 Plan 2010 Plan 2011 Plan 23 Operating Revenues $ 116.96 $ 120.09 $ 123.76 $ 127.03 $ 130.84

Operating Expenses (105.66) (105.54) (108.69) (110.02) (111.78)

Net Income — Operations 11.31 13.55 15.07 17.01 19.06

Net Income — Real Estate 7.64 8.07 8.52 8.99 9.49

Other Income 0.79 0.85 0.92 0.99 1.06 Net Income (before depreciation and interest) 19.74 22.47 24.51 26.99 29.61

Depreciation (15.07) (16.55) (17.47 (18.87) (20.43)

Interest Expense (1.56 (1.62) (1.62 (1.44) (1.61) Net Income (earned without Preventive Maintenance) 3.11 4.30 5.42 6.68 7.57 Preventive Maintenance Reimbursement 8.42 9.05 9.72 10.45 11.24

Net Income $ 11.53 $ 13.35 $ 15.14 $ 17.13 $ 18.81

Operating Ratio** 1.02 1.01 1.00 0.99 0.98

** Operating Ratio is Operating Expense divided by Operating Revenue. The Operating Expense number used to calculate Operating Ratio includes the portion of Depreciation attributable to Operations. The Operating Ratio shown is calculated without the Preventive Maintenance Reimbursement..

P UZZLE S OLUTION H W E W M R B L H Z G P X B M Y W H I H K S O L S T I C E E Y Z R S J K K I W P M R A T S I L A N E D E R D WORD SEARCH #1 I S W J J O M U V G L W V A J P R P N T R C R A O C H K O O N W G X C U G L A C O A S T A L C L A S S I C W “ARRC SUMMER KICK-OFF” X E I E B V E D H S L R D E Z V X E Q S L G F N E C I S E F D S A R L I N T T K X P S D G S T I Z C T G T V • COASTAL CLASSIC • GOLDSTAR •RAILTOUR G O O R O Y R M E V U A A Y T A M D • DAYLIGHT • GRANDVIEW • RESERVATION S P U T E E X R W G I T R G H J R N B T R G I G V B R I I M G T G K A A • DENALI STAR • GRAVEL • SMOOTH START O P C C R A N U P O H S T F I G W R • DEPOT • HIKING • SOLSTICE M X A E T A O E N O C N R A L N W G • GIFTSHOP • PASSENGER • TOURGUIDE B L U I J T V X S W S B S B Y P J G G H O T V O J E Q S K D H N A Q C U • GLACIER • PROJECTS • VACATION E N L M L X R I L V A M Q T D V T L DISCOVERY • RAFTING • WHISTLESTOP R A F T I N G P V H K P G C R D U S TheA nWWWWWWew Anch...o BraABYge DOOZERpera HITCHEStions Ce An WIDEter n ONear THEs co WAILWOADmpletio.n (P. (HOTOSphotoSUBMITTED by Tim T BYhoGmARYpsoWnING) , FAIRBANKS SPECIAL AGENT )

P HOTOS ON THE R AIL GREAT SHOT! TAKE A During an Interior Alaska afternoon in mid-April this little rented John Deere bulldozer was lifted onto SHOT! a work train just north of Nenana. The train was headed for the Standard Creek washout. The small size of the dozer and the quick, simple way it was loaded onto the train made this scenario interesting as it unfolded.

PHOTO SUBMISSIONS ARE ELIGIBLE FOR $200 DRAWING!! At the end of each calendar year, All Aboard will put the names of all employees who have submitted a photo during the year into a “hat” and draw one to receive a $200 gift certificate. To submit a photo, mail it to Stephenie Wheeler via company mail or email digital photo files to [email protected]. If using a digital camera, be sure photos are taken in the “fine” or “high resolution” setting. Low resolu-

Ation photos will be too blurry for the printed All Aboard newsletter.

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