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Alaska Railroad Corporation 1st Quarter, 2005 www.alaskarailroad.com (907) 265-2300 ISER OUTLINES ARRC ECONOMIC IMPACTS Recent research quantifies jobs, payroll attributed to ARRC Alaska Railroad Ongoing Projects: Fairbanks Intermodal Facility Collision Avoidance System Fish Passage Improvements Anchorage-to-Wasilla Track Realignment Anchorage Rail Capacity Study Whistle Noise Reduction System Anchorage Yard Ops Center Ship Creek Intermodal Center Improved Sidings & Signals Whittier Development Planning Seward Loading For updates or comments on these projects, visit the Alaska Railroad web site at www.AlaskaRailroad.com A new report by the University of Alaskas Institute for Social and Economic Research (ISER) reaffirms what many railroaders already know - the Alaska Railroad Corporation (ARRC) has a significant, positive impact on the states economy and the lives of Alaskans. In a nutshell, ARRC spending supports nearly 1,900 Alaskan jobs and pumps more than $83 million each year in payroll into the states economy. ISER s published report outlines ARRCs economic significance to Alaska by examining Railroad spending for the 2001-to-2003 time period. The review found that ARRC spends an average of $108 million each year in Alaska; this is split between payroll for Railroad employees (41%) and purchases from Alaska businesses (59%). The $108 million is roughly two-thirds of the total average annual ARRC expenditures for 2001, 2002 and 2003. In addition to an average of 800 ARRC employees, this in- state spending also supports approximately 1,100 non-Railroad Alaskan jobs ranging from health care services to restaurants to retail trade. In addition to fiscal value, the ISER report discusses other benefits that stem from the Railroads existence. For example, ARRC enables economic development by providing an efficient transportation link necessary for Alaska businesses. A report summary is included in this issue of Community Ties. The full ISER report is available on ISERs website at www .iser .uaa.alaska.edu . A

Alaska Railroad Corporation Collision Avoidance … such, ARRC will continue to send the newsletter to state legislators, city mayors, assembly, and city council members, along with

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Alaska Railroad Corporation1st Quarter, 2005

w w w. a l a s k a r a i l r o a d . c o m � ( 9 0 7 ) 2 6 5 - 2 3 0 0

ISER OUTLINES ARRC ECONOMIC IMPACTSRecent research quantifies jobs, payroll attributed to ARRC

Alaska Railroad Ongoing Projects:

Fairbanks Intermodal Facility

Collision Avoidance System

Fish Passage Improvements

Anchorage-to-Wasilla Track Realignment

Anchorage Rail Capacity Study

Whistle Noise Reduction System

Anchorage Yard Ops Center

Ship Creek Intermodal Center

Improved Sidings & Signals

Whittier Development Planning

Seward Loading

For updates or comments onthese projects, visit the AlaskaRailroad web site atwww.AlaskaRailroad.com

A new report by the University ofAlaska�s Institute for Social andEconomic Research (ISER)reaffirms what many railroadersalready know - the AlaskaRailroad Corporation (ARRC) hasa significant, positive impact onthe state�s economy and the livesof Alaskans. In a nutshell, ARRCspending supports nearly 1,900

Alaskan jobs and pumps more than $83million each year in payroll into the state�seconomy.

ISER �s published report outlines ARRC�s economic significance to Alaska by examining Railroad spending for the 2001-to-2003 time period. The review found that ARRC spends an average of $108 million each year in Alaska; this is split between payroll for Railroad employees (41%) and purchases from Alaska businesses (59%).

The $108 million is roughly two-thirds of the total average annual ARRC expenditures for 2001, 2002 and 2003. In addition to an

average of 800 ARRC employees, this in-state spending also supports approximately1,100 non-Railroad Alaskan jobs rangingfrom health care services to restaurants toretail trade.

In addition to fiscal value, the ISER reportdiscusses other benefits that stem from theRailroad�s existence. For example, ARRCenables economic development byproviding an efficient transportation linknecessary for Alaska businesses.

A report summary is included in this issueof Community Ties. The full ISER report isavailable on ISER�s website atwww.iser.uaa.alaska.edu.

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MOMENT IN HISTORY: TAKE ME OUT TO THE BALL GAME!By 1917, the Alaska Railroad construction was wellunderway, and construction crews had peaked at4,500 workers, many residing in an around theconstruction town of Anchorage. Pictured is a group

of baseball fans from Anchorage, who are heading tothe town of Potter Creek (later called Potter) alongTurnagain Arm by way of Alaska EngineeringCommission Railway cars. Baseball games were

frequently played in the town ofPotter Creek and at the AlaskaEngineering CommissionGrounds in Ship Creek. Gameswere later moved to �baseballfield,� in the new town site ofAnchorage. The AlaskaEngineering Commissionsponsored a number of differentsporting events and teams in theearly years of the AlaskaRailroad.

he Alaska Railroad�s 2004Annual Report is nowavailable on-line at therailroad�s web site �www.alaskarailroad.com.Printed copies are availableafter April 15 by contactingARRC�s Public Affairs OfficerTim Thompson, 265-2695.

The picture-packed documentfeatures a review of the AlaskaRailroad�s major accomplishments inpassenger and freight operations,capital improvements, communityinvestments, and financialperformance. With total revenues of$129.5 million and total expenses of$114.1 million, the Alaska Railroadnetted $15.4 million in 2004. Net income, which is all investedback into the railroad, provides the

critical component to ARRC�sefforts to modernize its trains,tracks and infrastructure throughcapital projects. More than $82million was spent in 2004 toupgrade bridges and therailbed, and to build severalnew facilities, including theFairbanks Intermodal Facilityand Anchorage OperationsCenter.

In addition to financial andinfrastructure milestones,the railroad�s safety resultswere right on par with2003�s record-setting levels. TheAlaska Railroad had fewer and lesssevere injuries, and our train incidentrate was substantially lower than thenational average.

2004 PRODUCES RECORD EARNINGSAlaska Railroad releases its 2004 Annual Report

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COMMUNITY TIES DISTRIBUTION IS UPDATED, REFINEDDo you want to remain on the newsletter mailing list?

The Alaska Railroad is updating and revising the mailing list for the Community Ties newsletter. It has beenfive years since the original mailing list was created, and since that time, ARRC realizes that some contactshave moved, changed jobs, or simply may not wish to receive the newsletter.

Community Ties was originally developed to keep community, civic, and government leaders abreast of rail-road developments. As such, ARRC will continue to send the newsletter to state legislators, city mayors,assembly, and city council members, along with key planning positions at the state and local level. Executivedirectors and officers of statewide business and trade organizations (RDC, ATIA, AOGA, AMA, ATA, AGC, etc.)railbelt convention & visitors bureaus, state and local chambers of commerce, railbelt school district superin-tendents / board officers, and community council presidents will also remain on the list. In addition,Community Ties will continue to be sent to all ARRC land lessees, business customers, and current key proj-ect contractors and vendors.

If you are receiving this newsletter, and you do not fall into one of the above-noted categories, but do want tocontinue receiving Community Ties, please:

� Check the �keep on mailing list� box on the back cover, showing your address, and fax to 265-2365.

� Or email your name and address to [email protected]

� Or call ARRC�s Stephenie Wheeler at 265-2671 with your name and mailing information

he Alaska Railroad took part in a recent movefor the 4th Battallion, 123rd Aviation Regiment -better known as the ArcticKnights � movingequipment from FortWainwright, nearFairbanks, to the Port ofAnchorage, where it wasthen shipped to Kuwait.

101 railcars were used to transportthe equipment from the B and Ccompanies of the 123rd.

Soldiers and equipment are beingdeployed to the Middle Eastmaking this the first time since World War II that thismany company units have been deployed from FortWainwright.

�Our railroad team proved we can be called on forimportant, time sensitive movements,� said Pat Gamble,

President and CEO.�The U.S. militaryplays an importantrole from its strategiclocation in Alaska.They need to knowthey can count on uswhen they get theword to move andmove quickly. Ourcrews can do a greatjob for the Army.�

With plans to move more equipment of this size � andpossibly bigger � in the near future, the U.S. Army hasproof that the railroad can and will meet the military�sshipping needs.

MILITARY ON THE MOVERailroad underscores reliability with transport of Interior�s Army battalion

TArmy rail cars hitch a ride on the Alaska Railroad.

he new AlaskaRailroad operationscenter was fullyfunctional March 1.Employees beganmoving in mid-February. The$9.54 million dollarproject was on

budget and took only 10months to complete.

The Operations Center willcoordinate and supportAnchorage yard operationsand railbelt train activities.The new facility is a 23,000square foot, three storybuilding, spacious enough toaccommodate approximately 200 crew andmanagement personnel for passenger and freightoperations. Unique features of the building include anobservation tower that oversees the rail yard for moreefficient train assembly and management.

The building, located at 825 Whitney Road, wasdesigned by Kumin Associates. The principalconstruction contractors included Alaska Mechanical,Inc., Architects Alaska, AMC Engineers and BBFMEngineers.

ANCHORAGE OPERATIONS CENTER OPENSRailroaders move into ARRC�s new nerve center for rail operations

TAlaska Railroad CorporationP.O. Box 107500Anchorage, Alaska 99510-7500

PRSRT STDU.S. POSTAGE PAID

ANCHORAGE, AK

PERMIT NO. 500

Yes, I want to continue to receive the Community Tiesnewsletter.Any corrections are noted below:

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INDICATE HERE IF YOU WISH TO REMAIN ON THE2005 COMMUNITY TIES MAILING LIST

The Anchorage Operations Center at 825 Whitney Rd nears completion in February 2005.

Alaska Railroad Corporation2nd Quarter, 2005

w w w. a l a s k a r a i l r o a d . c o m • ( 9 0 7 ) 2 6 5 - 2 3 0 0

SAFETY: RAILROAD MEASURES UPMidway through 2005, ARRC is on track to meet safety goals

Alaska Railroad Ongoing Projects:

Eielson Branch Realignment

Northern Rail Extension

Fairbanks Intermodal Facility

Collision Avoidance System

Fish Passage Improvements

Anchorage-to-Wasilla Track Realignment

Anchorage Rail Capacity Study

Whistle Noise Reduction System

Crossbuck Illumination Test

Ship Creek Intermodal Center

Improved Sidings & Signals

South Wasilla Rail Realignment

Seward Coal Loading Facility

For updates or comments onthese projects, visit the AlaskaRailroad web site atwww.AlaskaRailroad.com

ith the year half over, theAlaska Railroad is measuringup to its 2005 corporate safetygoals. Railroad employees areoperating more safely thanever, even as the work tempohas accelerated given new andexpanded services. Injuryfrequency is the lowest inhistory at mid-year – 1.68 per

200,000 man-hours; and total days lost dueto injuries remains below the 30.0 goal.Worker compensation costs continue todecline, due to one of the shortest lists ever

of injured, off-work employees. On theequipment side, ARRC is on track to reducevehicle and heavy equipment accidents by25 percent, and the ARRC train accidentrate is on par with the national average.

From mid-June to early Septemberpassenger and freight train activity are atpeak levels. At the same time, ARRC mustaccomplish the bulk of its trackmaintenance, facility construction andrepair. Not surprisingly, there has been atraditional spike in accidents during thebusy summer months.

Wsee “Safety...” on page 3

The Spirit of Fairbanks locomotive breaks through a giant ribbon during a May 26 celebration ofthe opening of the new Fairbanks Depot. See photo-story inside. (Photo by Al Grillo.)

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Hurricane Gulch is a 1920s marvel.

MOMENT IN HISTORYThis Aug. 15, 1921 photo showsthe Alaska Engineering Commis-sion Railway construction of theHurricane Gulch bridge, whichused 1500 tons of steel and cost$1.5 million.

“Confidence ran high during con-struction of the enormous hingedarch, buttressed as it was againstsolid rock on both sides. On-sitephotographs of the project atHurricane defy belief. Crews, liketrapeze artists suspended hun-dreds of feet in the air, renderedexacting performances as theymoved about the unconnectedscaffolding. Steam shovel opera-tors, with their frosted mustachesand multiple layers of thick cloth-ing, tirelessly dug excavations forthe approach spans, leavingsplotches of dirt on the carpet ofsnow in their wake. A four-toncable way transferred unwieldyconstruction materials back andforth across the gulch, anotheradaptation of measures once usedin Panama. American BridgeCompany crews began fabricationand cantilever erection of the 918-foot span on June 8, 1921.Sixty working days later, the firsttrain passed over it.

Editor’s note: Excerpted from thebook, “Get Mears,” by Anchorageauthor Katharine Carson Crittenden.

he Alaska Railroad is taking a closer look at two projects in Alaska’sInterior. About $14 million in funding from the U.S. DefenseDepartment made it possible to do design and study potentialenvironmental impacts associated with realigning the railroad trackaround Fort Wainwright and North Pole, as well as for extending thetrack from North Pole on down to Fort Greely / Delta Junction. Bothstudies got underway in late spring.

The realignment — known as the Eielson Branch Realignment —proposes to realign up to 16 miles of branch track around commercial,residential, and military areas between Fairbanks and North Pole, as well asupgrade another 3-4 miles along the project corridor. Several alternativesare being considered for realignment through Fort Wainwright and crossingthe Richardson Highway. Once south of the highway, the track will likely beon, or adjacent to, the flood dike along the Tanana River. The railroad hiredURS to carry out the Environmental Assessment (EA) work, which kicked offwith public and agency fact-finding meetings held in late June and early July.The railroad anticipates an EA document will be ready for public reviewearly next year, pending approval from the Federal Railroad Administration(FRA) and Federal Transit Administration (FTA), the lead federal agencies.

The extension — known as the Northern Rail Extension — would extend thetrack from Eielson AFB, about 80 miles southeast to Fort Greely, near DeltaJunction. This project is directed at meeting the growing training andmobility needs of military forces in Alaska. Extended rail would afford year-round access to the Tanana Flats and Donnelly military training areas, andconnect them to other military installations in Alaska, as well as to the Portof Anchorage . Due to the project’s extensive nature, an EnvironmentalImpact Statement (EIS) (as opposed to an EA) is being prepared. Because theproject involves new railroad construction, the Surface Transportation Board(STB) is preparing the EIS, while the FRA administers the funding. Theproject team anticipates a draft EIS will be ready in late 2006 with a final EISand Record of Decision completed by late 2007.

Fact sheets and additional information, including public meetings schedules,on both projects are available at www.alaskarailroad.com/projects.

INTERIOR STUDIES UNDERWAYRailroad considers rail realignment and extension

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New FRA Train Horn Rule in EffectBeginning in late June, the Federal Railroad Administration new trainhorn rule went into effect, requiring train engineers to sound the hornat least 15-20 seconds before a crossing and to continue sounding thehorn until the crossing is reached. More information is available atwww.fra.dot.gov, and on ARRC’s Whistle Noise Reduction System Testfact sheet at www.alaskarailroad.com/projects.

small crowd gathered at 1745 JohansenExpressway on May 26. At precisely 4:00 p.m.,everyone turned to stare east down the tracksas the Spirit of Fairbanks locomotive rolledtoward them. Inching forward, the train brokethrough a giant ceremonial ribbon stretched

across the tracks, celebrating another milestone in theRailroad’s quest to modernize its infrastructure. The newFairbanks Intermodal Facility and Depot was in fact open10 days prior to the depot dedication event, in time toservice the first of thousands of train passengers who willcome to the Interior this summer.

NEW FAIRBANKS INTERMODAL FACILITY OPENSWith historical roots, new depot offers a fresh gateway into Interior Alaska

SAFETY...

The new depot’s architecture is steeped intradition, harkening back to railroad stationsexisting at the turn of the century in Alaska.

ARRC Chair John Binkley, North PoleMayor Jeff Jacobsen, Fairbanks MayorSteve Thompson, ARRC Track InspectorClifford Giles and ARRC President/CEOPat Gamble cut the dedication ribbon.

The Tanana Valley Model Railroad Club, a cornerstone tenant of the old depot for years,has set up shop in the new depot.

As passengers disembark the train, they walk straightinto the spacious 12,500 square foot terminal.

Alaskan Made:From design, toengineering, toconstruction — thenew depot is theproduct of Alaskancraftsmanship.

The railroad has worked hard to buck thattrend. Over the past two years —especially last year — railroaders haveflattened out the traditional summer spike,

recording the two best years ARRC hasever had for safety — and, not coinciden-tally, the two most profitable years in ARRChistory.

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overnor Murkowskirecently appointedretired General JoeRalston of Anchorageand Orie Williams ofFairbanks to the Boardof Directors of theAlaska Railroad.

General Ralston served 37 years inthe Air Force, finishing hisdistinguished career as Commander, U.S. EuropeanCommand and the Supreme Allied Commander ofNATO. He previously served as Vice Chairman of theJoint Chiefs of Staff. Earlier in his career, General Ralstonheaded the Alaska Command and the Alaskan NORADRegion. Upon his retirement in 2003, he and his wifereturned to Anchorage. He currently serves as ViceChairman of The Cohen Group, an international

strategic business consulting firm.Ralston fills a seat designated for amember from the third judicialdistrict. His term expires October3, 2008.

Orie Williams is President/CEO ofDoyon, Limited. He is a Doyonshareholder and was previously amember of the Doyon Board ofDirectors. He serves on the Board

of Native American Contractors Association and recentlychaired the Advisory Board on Alcoholism and DrugAbuse. He has been involved with the Nenana TribalCouncil, the Bureau of Land Management LandManagers’ Task Force, and other civic and charitableorganizations. Williams fills a seat designated for amember from the fourth judicial district. His termexpires October 3, 2009.

ARRC BOARD WELCOMES TWO NEW MEMBERSGovernor appoints Anchorage and Fairbanks civic leaders to Railroad Board

GAlaska Railroad CorporationP.O. Box 107500Anchorage, Alaska 99510-7500

PRSRT STDU.S. POSTAGE PAID

ANCHORAGE, AK

PERMIT NO. 500

Please correct the following errors in your newsletter mailing list:Receiving more than one copyAddress wrongContact person changedName Misspelled

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General Joe Ralston Orie Williams

The notably taller new double decker dome cars provide a distinctive first-class experience,which began with the 2005 summer passenger season. (Photo by Tim Thompson)

Alaska Railroad Corporation3rd Quarter, 2005

w w w. a l a s k a r a i l r o a d . c o m • ( 9 0 7 ) 2 6 5 - 2 3 0 0

ARRC PASSENGER BUSINESS BOOMSGold Star first class service popularity exceeds expectations

Alaska Railroad Ongoing Projects:

Eielson Branch Realignment

Northern Rail Extension

Fairbanks Intermodal Facility

Collision Avoidance System

Fish Passage Improvements

Anchorage-to-Wasilla Track Realignment

Anchorage Rail Capacity Study

Whistle Noise Reduction System

Crossbuck Illumination Test

Ship Creek Intermodal Center

Improved Sidings & Signals

South Wasilla Rail Realignment

Seward Coal Loading Facility

For updates or comments onthese projects, visit the AlaskaRailroad web site atwww.AlaskaRailroad.com

he 2005 passenger rail season wasone of the railroad’s best in termsof passenger volume and revenue.Ridership on daily trains — theDenali Star (Anchorage-Fairbanks),Coastal Classic (Anchorage-Seward)and Glacier Discovery (Anchorage-Whittier-Spencer Glacier-Grandview)— increased by nearly 8,000segments over 2004. Revenue for

2005 from ARRC’s own railcar/packagesales was up about $1.7 million over 2004.

About half of the Alaska Railroad’s totalpassenger revenues come from pulling railcars belonging to cruise companies. Thesuccessful new Princess “Direct toWilderness” program is one example ofgrowth in this segment of the passengerbusiness. In total, passenger revenueincreased about $3 million over 2004.

The advent of the first class Gold Starservice aboard the ARRC’s new double-decker dome cars was partly responsible forthe boost in passenger revenues. The GoldStar service – offered as part of the DenaliStar — was clearly a popular option forindependent travelers who booked railpackages in particular. The railroad soldmore than 14,500 Gold Star upgrades,beating the budget by 2,000 segments.

With the summer passenger seasonwrapped up, the charter season begins inearnest. More than a dozen charters werescheduled in September and October,including a new “Blues Train” featuring anovernight stay in Seward. During the wintermonths, the railroad offers once-weeklypassenger service between Anchorage andFairbanks, and the once-monthly HurricaneTurn.

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Loop Track in service 1918-1951.

MOMENT IN HISTORYThis 1923 picture offers a view ofBartlett Glacier from under theloop trestle, a circular structurethat crossed the railroad overitself, and was built to overcomethe Kenai mountains’ steepgrades. The loop was a feature ofthe Grandview area, which, at analtitude of 1,060 feet, is the high-est point reached by the ARRC.

The name Grandview was givenby early Alaska pioneer NellieLawing (“Alaska Nellie”) becauseof the area’s grand view. Due toits beauty, Grandview has sincebeen favored by Nordic skiers, aswell as rail passengers whom therailroad accommodates with regu-lar stops for picture-taking.

During the railroad’s construction,the Alaska Engineering Commis-sion (AEC) was tasked with recon-ditioning the loop. Alaska Nellieoperated a roadhouse in the areato house and feed AEC railroadconstruction workers. Meals cost50 cents and overnight accommo-dations cost a dollar.

The loop was rendered safe fortravel in 1918 and continued tocarry passengers until 1951. Bythen, Bartlett Glacier had receded,and a more stable route was builton ground that had been coveredwith 75 to 100 feet of ice.

Sources: Alaska Museum of History & Art,ARRC VP Jim Blasingame, and KatharineCarson Crittenden’s book, Get Mears.

Several Alaska Railroad projects are moving into phases that callfor public awareness and input. In response, ARRC project teamshave organized recent meetings that offer one-on-one interactionwith citizens most likely to be interested.

Interior – ARRC’sproposed Northern RailExtension from Eielsonto Delta Junction is

expected to move into anenvironmental analysis andpreliminary engineering phase thatwill be overseen by the SurfaceTransportation Board (STB). In themeantime, the rail-road hasaccomplished some aerialphotography and preliminary land surveys to help delineate extension routealternatives. This activity has spurred interest from communities along theextension corridor. On September 19-20, the railroad visited Salcha, NorthPole and Delta Junction to talk with local government and privatelandowners who may be affected by various route alternatives. The meetingswere well-attended, allowing residents to ask questions, while the railroadgleaned valuable local insight.

Anchorage – The Ship Creek IntermodalTransportation Center project has movedinto the final design phase. In August, theARRC Board of Directors approved adesign concept that preserves the historicdepot as a centerpiece, and provides forsafer, smoother pedestrian traffic flowbetween downtown and Ship Creekrecreational opportunities. The projectteam organized an open house October6 to unveil the design via presentations. About 80 people attended thepresentations, asked questions of the project manager and architect, andviewed display boards and a scaled model.

Wasilla – The railroad invited Mat-Su Valley residents to a public meetingOctober 18 to discuss the findings of an environmental assessment (EA) ofthe railroad’s South Wasilla Track Realignment. The project would improvesafety and efficiency of railroad operations by straightening about four milesof mainline track in the southeast portion of Wasilla. About ______ residentsshowed up to discuss the findings of the EA, which describes the alternativesconsidered, and the related environmental, social and economic impacts ofthe proposed project. Public comment will be accepted through Nov. 2.

PROJECTS AND THE PUBLICARRC offers “face time” in Interior, Southcentral

SMore than 100 landowners attend meetings todiscuss route options with Northern RailExtension project manager Brett Flint (center).

Ship Creek Intermodal project managerDeb Allen discusses the scale model.

he ARRC received highmarks during its annual spilldrill Oct. 6. The Environ-mental Protection Agency(EPA) and Alaska Dept. ofEnvironmental Conserva-tion (ADEC) observed andparticipated in the drill,which is required by the ARRC’s spill

contingency plan.

The drill scenario involved a southbound fuel train thathit a broken rail and derailed at Billion Slough, just northof Talkeetna. The drill simulated two of the fuel carsfalling into Birch Creek, which runs into the SusitnaRiver. Tank car “damage” resulted in a simulated releaseof oil into the creek, requiring deployment of fast waterboom and oil collection systems to bring the situationunder control.

As with any real world situation, the drillpresented challenges that required flexibility.For example the late season’s extreme lowwater level forced relocation of the responsesite. EPA and ADEC feedback emphasizedthe ARRC response team’s adaptability, astrong mobilization effort, and productivecommunications between on-site and

command center responders.

“Teamwork between the agencies and the railroad wasthe best it has ever been,” added ARRC COO MattGlynn. “EPA and DEC responders were visibly pleasedand impressed with our new Anchorage OperationsCenter’s layout and technology, expertise of our IncidentManagement Team, and commitment the railroad hasobviously made to spill response capability. They alsooffered excellent suggestions and coaching, providingARRC with good direction and ideas for improvement.”

ARRC RESPONDS WELL TO SPILL DRILLRailroad receives high marks for teamwork, technology, commitment

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he Alaska Railroad is not alone. There’s anotherfreight-hauling railroad in Alaska, and it happensto start where ARRC terminates — Eielson AFB.

The medium that brings the ARRC and theEielson Railroad (ERR) together is coal. TheAlaska Railroad hauls about 185,000 tons of thestuff to Eielson to fuel the base’s Central Heatand Power Plant (CH&PP).

“I know the challenges the railroad faces and I knowthey are doing the best they can, given factors beyondtheir control,” said Bill Havard, CH&PP Operations andMaintenance Superintendent. ARRC Fairbanks TerminalSuperintendent Mike Olson lists a few of the challengesassociated with extreme cold: air brake limitationsdemand shorter trains; rail cars creak in protest as greasefrozen nearly solid falls short of its job as a lubricant;switches and air hoses get stiff; and ice fog makes thecold permeate, sapping the strength of train crews.

“Cold weather just slows the railroad down, and thefolks at Eielson understand that,” said Olson. Thatempathy undoubtedly stems from running their ownlittle railroad in support of the coal-fired power plant.ERR has 10 miles of track, two GP-40 locomotives, and ahandful of coal cars.

Eielson’s power plant is unique in the Air Force becausevery few military bases have their own rail system. “I doa lot of VIP tours of this plant,” said Havard. “Folks arereally interested, plus everyone just likes trains. I see full-bird colonels who pilot fighter jets get really excitedabout riding the train.”

Certainly getting coal to Eielson’s plant is critical to thebase populace, but how important is the coal movementto the Alaska Railroad? In a word, “very,” said Olson.“The coal contracts on this end of the line provide asolid, steady, year-round revenue flow. ARRC alsosupplies Ft. Wainwright and Fairbanks power plants.”

A TALE OF TWO RAILROADSCoal brings Alaska Railroad and Eielson Railroad together

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Fast water boom is deployed toconfine the simulated oil spill.

respassing along the railroadtracks might just be even riskierthan you’d think. In the case offugitive John Hale – AKA PapaPilgrim – entering railroadproperty ended up cutting shorthis time on the lam.

Hale had slipped awaybefore State Troopers could arresthim following a September 22indictment on 30 felony chargesincluding sexual assault andincest. Early afternoon onOctober 5 Hale was driving hisblue camper van on Eklutna ParkDrive in Eagle River, which dead-ends onto railroad property. Alaska Railroad Special AgentJohn Waychoff crossed paths with

Hale during a routine check of railroadproperty in the area. Although Hale hadgained some notoriety from his high-profile dispute with the National ParkService over access to his land insideWrangell-St. Elias National Park,Waychoff had not heard of Hale until hewas handed a flier with Hale’s photo

just hours before the encounter.

Recognizing Hale from the flierthat still lay on the dash of therailroad pickup, Waychoffmotioned for Hale to stop, andthen used the pickup to block theroad, preventing an escape. Afterhandcuffing Hale, Waychoffcalled the State Troopers to pickup their fugitive.

RAILROAD SPECIAL AGENT ARRESTS FUGITIVEIndicted “Papa Pilgrim” learns the perils of ARRC property trespass: capture!

TAlaska Railroad CorporationP.O. Box 107500Anchorage, Alaska 99510-7500

PRSRT STDU.S. POSTAGE PAID

ANCHORAGE, AK

PERMIT NO. 500

Please correct the following errors in your newsletter mailing list:Receiving more than one copyAddress wrongContact person changedName Misspelled

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Contact Corrections

Top: A handcuffed John Hale awaits Trooperson the tailgate of a railroad security pickup.Bottom: Agent Waychoff talks to Channel 2.

recently signed Memorandum ofUnderstanding (MOU) betweenthe Food Bank of Alaska, AlaskaDepartment of Corrections (DOC)and the Alaska Railroad (ARRC) isaimed at more effectivelysalvaging, processing anddistributing moose meat to lowerincome Alaska families andindividuals this winter. The MOU

covers moose killed along 68 miles of trackbetween Wasilla and Talkeetna.

Under terms of the agreement, AlaskaRailroad staff will move any salvageablemoose carcass to an accessible road-railcrossing within the Mat-Su Borough. TheRailroad will then notify the PointMackenzie Correctional Farm of the moosecarcass location. The correctional facilitywill dispatch an inmate work crew to pickup the carcass under the direct supervisionof correctional officers.

The officers and inmates will take thecarcass to the farm where it will beprepared and hung in the barn. Afterproper aging, inmate workers will processthe carcass in the farm’s kitchen, grindingthe meat into one-pound packages andstoring them in the freezer.

The Food Bank of Alaska will pick up thefrozen packs and distribute them to soupkitchens, pantries, senior centers andcharities through March 2006. Formal stateor federal inspection of facilities thatprocess game meat is not required.

ARRC is providing a small grant in supportof the program. Up to $1,000 per monthwill go to the DOC to underwrite the costof fuel and meat-processing ingredients.

The trial program will run from Novemberof 2005 to March of 2006.

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Photo Courtesy: DougLloyd, Wasilla AK

To see more of Dougsphotos vist his Websiteat: http://www.douglloy-dphotography.com/4436.html

Alaska Railroad Corporation4th Quarter, 2005

w w w. a l a s k a r a i l r o a d . c o m • ( 9 0 7 ) 2 6 5 - 2 3 0 0

MOOSE SALVAGE BENEFITS ALASKANSNew agreement between ARRC, Corrections and Food Bank

Alaska Railroad Ongoing Projects:

Eielson Branch Realignment

Northern Rail Extension

Track Integrity System

Collision Avoidance System

Fish Passage Improvements

Anchorage-to-Wasilla Track Realignment

Anchorage Rail Capacity Study

Whistle Noise Reduction System

Crossbuck Illumination Test

Ship Creek Intermodal Center

Improved Sidings & Signals

South Wasilla Rail Realignment

Seward Coal Loading Facility

For updates or comments onthese projects, visit the AlaskaRailroad web site atwww.AlaskaRailroad.com

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"Alaska Nellie" Lawing at her logcabin at Kenai Lake, 1941-1945.

MOMENT IN HISTORYFifty years ago Anchorage hosteda wintertime Alaska Nellie Weekwith railroad and city officials andrailbelt citizens paying tribute toone of the most remarkablewomen who ever worked for therailroad. Just a few months later inMay 1956, Nellie Neal Lawingpassed away.

The company she kept told a lotabout her robust character. Joiningher at her first Thanksgiving inAlaska – 1915 in Seward – werePioneer Smith, Post-hole Pete,Malamute Kid, Wild Bill,Snaggletooth Miller, and Tin CanGeorge. The menu includedmoose, mountain sheep, bear,wine, whiskey and champagne.

A true pioneer on her own inAlaska, Nellie was a cook undercontract to the Alaska EngineeringCommission as it supervised therailroad’s construction. She pro-vided meals and quarters for trav-elers and construction crews.

Alaska Nellie’s last contract withthe railroad covered meals andsleeping facilities at Curry, thenknown as Dead Horse Hill. Whenconstruction ended in 1923, and agovernment hotel replaced thepioneer camp at Curry, Nellie pur-chased a cabin on Kenai Lake andmade it her home.

Source: The Alaska Railroad: Praeger Libraryof U.S. Government Departments andAgencies, by Edwin M. Fitch, 1967.

he Alaska Railroad is organizing four open house events in Januaryto provide the public with an opportunity to review and commenton plans for capital improvements during 2006. Open houses willshowcase continuing and proposed projects in various stages –from conceptual planning to construction. Project managers will beon-hand to explain projects in more detail. The schedule is:

• Fairbanks – 4:00-6:30 p.m., Wednesday, January 11, atthe Railroad’s New Depot, 1745 Johansen Expressway.

• Seward – 9:00 a.m. to 2:00 p.m., Saturday, January 20, at ARRC’sPassenger Dock Terminal on Port Avenue. This will be held in conjunctionwith Seward’s Winter Festival.

• Anchorage – 4:00-6:30 p.m., Tuesday, January 24, at the Railroad’sHistoric Rail Depot, 411 West First Avenue.

• Wasilla – 4:00-6:30 p.m., Thursday, January 26 – Evangelo’s Restaurant,2530 E. Parks Highway.

People unable to attend may visit www.AlaskaRailroad.com for projectinformation. Comments may be emailed to [email protected] ormailed to Alaska Railroad Capital Projects, P.O. Box 107500, Anchorage, AK99510-7500. For more information, call Public Involvement OfficerStephenie Wheeler at 265-2671.

CAPITAL PROJECT OPEN HOUSESFour events offer forum for public participation

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laska Railroad employees super-surpassed the $75,000 goal foremployee pledges to United Way in 2005, raising exactly$98,343! That's 18% over last year.

“Just as the Alaska Railroad provides reliable and consistenttransportation and freight services to our community, it can becounted on as a strong and consistent partner in helping meetour community's health and social service needs,” said MicheleBrown, President of United Way of Anchorage.

“The Alaska Railroad staff rallies every year to help their neighbors throughthe United Way campaign,” Brown added. “The railroad stands out bymaking sure that each employee gets the opportunity to contribute in ameaningful way. Campaign coordinators and management alike stress aunified message: “it's not the amount of the gift, but the gift giving in itselfthat makes a meaningful difference. Thank you, Alaska Railroademployees!”

RAILROAD COMMUNITY GIVINGARRC employees surpass United Way goal

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he following are highlights of a very successfulyear. With the focus of a dedicated team ofemployees, and thoughtful financialstewardship, the Alaska Railroad was able to:

• complete and open a new AnchorageOperations Center

• complete and open a new FairbanksIntermodal Facility & Depot

• purchase two new double-decker dome cars; andintroduce new GoldStar first class service

• increase passenger revenue over last year by 15%

• support Princess in rolling out the "Direct to theWilderness" service, which connects cruiseshippassengers disembarking in Whittier with lodges nearTalkeetna and Denali, and visa versa.

• haul over 4 million tons of gravel (second highest inhistory of ARRC)

• support Usibelli in efforts to expand export coalprospects with spot market shipments

• 54% decrease in derailments since 2002

• fully fund the ARRC pension plan

• move U.S. Army Stryker forces and equipment

• implement the Track Watch security program

• score high marks for performance in oil spill responseexercises

• facilitate the opening of the new Bridge restaurant inShip Creek

• initiate an environmental study as the first step inextending the rail 80 miles from Eielson AFB

ARRC MARKS ANOTHER BANNER YEAR New facilities, new services, economic support are hallmarks of 2005

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he 2006 Alaska Railroadprint/poster is entitledLighting The Way byAnchorage artist KurtJacobsen.

“The Alaska Railroad isan important mode oftransportation for Alaska

in the winter as well as thesummer,” said Jacobson. “So thepainting shows how the railroad“Lights The Way” through asnowfall. The scene was created with acrylic paint oncanvas.

“I am overjoyed that my art was selected this year,”Jacobson added. “I have seen the previous artwork thathas been selected as the Alaska Railroad prints over thelast 20 years and have been impressed with the qualityof art and artists; I am thrilled to have one of my

creations included amongthem now.”

Born and raised in Alaska,Jacobson foundedSnowbound Art Studios in1998. His originals can befound in art galleries insouthcentral Alaska and atmajor art shows inAnchorage.

Prints, posters and pins goon sale at the Anchorage and Fairbanks depots in earlyJanuary. The posters sell for $25 and the prints for $50.Jacobsen will be on hand at poster signing eventsscheduled for 10:00 a.m. to 2:00 p.m. Saturday, January7, at the Historic Anchorage Depot, and 10:00 a.m. to2:00 p.m. Saturday, January 14, at the new FairbanksDepot.

2006 ARRC POSTER ‘LIGHTS THE WAY’Poster signing slated for January 7 in Anchorage and January 14 in Fairbanks

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o you know the significance of AlaskaRailroad milepost 248.5? If not, just ask oneof the tour guides aboard the AlaskaRailroad’s passenger cars, because they know.It’s their job.

Scouting for our 2006 season tour guides gotunderway this fall with open house events inFairbanks and Anchorage. Nearly 200 people

in Anchorage and more than 50 in Fairbanks attended.

The Alaska Railroad Tour Guide Program was created in1980 to provide workplace skills and exceptional jobs toAlaska’s young people. It is a school business partnershipthat is funded by the Alaska Railroad and local schooldistricts in Fairbanks, Anchorage and Seward. Thisprogram is considered one of the most successful schoolbusiness partnerships nationwide, and received anaward from the National Partners in Education.

“Tour guides are the ambassadors for the State of Alaskaand the Alaska Railroad,” said Graham Houle, ARRCPassenger Operations Supervisor and a former tourguide (pictured in front of the tour guide ‘elves’).“Ultimately, passengers will see more of the tour guidesthen any other employee on the Alaska Railroad. Theyare essentially the the face of the Alaska Railroad.”

That’s why high school juniors and seniors that areinterviewed and selected must complete a 10-weekelective course that teaches customer service skills,public speaking, CPR, First Aid, Alaska history,geography, economics, current issues and biology. More information on the Tour Guide Program isavailable on the Alaska Railroad’s website —www.alaskarailroad.com, employment link.

TOUR GUIDES: FACES OF THE RAILROADHigh school-based program teaches the art of being an ambassador

DAlaska Railroad CorporationP.O. Box 107500Anchorage, Alaska 99510-7500

PRSRT STDU.S. POSTAGE PAID

ANCHORAGE, AK

PERMIT NO. 500

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2005 summer season tour guides double as ‘elves’ on theDecember 3 Holiday Train from Anchorage to Seward. Theirtraining, summer experience and upbeat personalitieshelped to get the passengers into the holiday spirit