Borough gears up for rail construction

PALMER — The Mat-Su Borough predicts hundreds of construction jobs in the area as companies gear up for a summer’s worth of work on the Point MacKenzie Rail Extension.

The 32-mile project already has $116 million in state dollars and another $30 million in state bonds. The borough says it needs $126 million more to finish it. The goal is to spur development of Port MacKenzie through reduced shipping costs. The borough says four segments of the project will be under way this summer:

• Segment 1: This is the first five miles starting from the port. Bristol Construction began that work last summer, completing the earthmoving. This summer it will build the rail embankment.

• Segment 6: The segment is 1.8 miles long and includes the connection to the railroad’s mainline near Houston in a “Y” formation, allowing trains to use the tracks whether they come from Anchorage or Fairbanks. The contract was awarded to Granite Construction.

• Segment 3: Quality Asphalt and Paving won the contract for this 6.5-mile segment from Ayshire Road to Papoose Twins Road. Clearing the land of trees has already begun.

• Segment 4: This segment runs 7.4 miles from Papoose Twins Road to just past Horseshoe Lake. A contract hasn’t been awarded yet, but the borough expects work will get under way this summer. This is one of the segments to be funded with state bonds sold recently.

The borough said those first three segments add up to $88 million. The borough says it will mean 200 local construction jobs.

Meanwhile, a coalition of environmental groups has filed a pair of lawsuits against the project. One of those lawsuits was shot down at the federal appellate level last November. The other is still ongoing.

Most recently in that case, a federal judge in Anchorage denied a request to halt construction while the litigation progresses. A federal appeals court declined an expedited appeal of that decision and is currently considering a non-expedited appeal.

The lawsuit itself continues.

It revolves around permits the U.S. Army Corps of Engineers issued the borough for work it will need to do in wetland areas. The groups claim the borough will ruin fish habitat. The borough denies that, citing its sterling record when it comes to sustaining and rehabilitating fish habitat.

Contact reporter Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.