New Port Mac-Houston road? Borough explores converting rail embankments to highway use

Matanuska-Susitna Borough officials are considering converting the embankment built for a rail extension to Port MacKenzie for use as a road. Borough manager Mike Brown briefed members of the borough assembly on the idea at the assembly’s Tuesday meeting.

It’s basically an acknowledgment that the rail spur connecting the existing Alaska Railroad to the port will likely never be finished.

"It could become a quick highway route from the port to the Parks Highway near Houston, where the rail spur was linked with existing track," Brown said.

“We have to use what we have,” Brown said. “The embankment is in good shape, better than a lot of the roads in the borough. It was well designed and built.”

About $190 million is needed to finish the proposed 32-mile spur, and $180 million has been spent so far. Assembly member Stephanie Nowers agreed with Brown’s assessment.

“We have a 30-year track record on this project, and we can see it just isn’t going to happen,” she said.

However, there are issues to be resolved before the rail embankment becomes a road, Brown said. State grants paid for most of the construction so far, and the Legislature may have to approve its designation as a dual-purpose transportation project. Terms of the grants now limit its use to rail.

Also, bridges along the existing right-of-way are single-lane and designed for a railroad. Single-land bridges could be used if the road is for industrial-use only but for public use double-lane bridges are needed. That will require state permission and funding.

Also, three miles of the rail right-of-way are within the city of Houston, which does not have road maintenance powers. Some mechanism will be needed for the state, or the borough, to fund maintenance along that segment.

Finally, the right-of-way crosses certain Alaska Native corporation lands. The landowners have granted an easement but this may require use as a railroad. A new agreement with the landowners may be required to retain the easement.

Meanwhile, here are developments for Port MacKenzie, the assembly was told. A solicitation to sell a bulk commodity loading system that hasn’t been used for years brought no offers, Managwr Brown told the assembly. That prompted discussions of what to do now, because part of the conveyor crosses the dock and is an impediment to its operations.

Dave Cruz, CEO of Cruz Construction, has been acting as an informal advisor to the borough on the port and suggested removal of the conveyor section that crosses the dock. This being taken into consideration.

Brown told the assembly the borough is still looking for potential partners on the port to take advantage of private sector expertise the municipality doesn’t have. However, one thing the borough also brings some advantages as a public entity, he said, such as the ability to secure grants for further port development, and to offer tax and leasing incentives.

An idea now being explored is to establish an economic development zone at the port where special tax advantages might be offered, such as a possible expection from state corporate income tax for firms doing business the port.

That will take special action by the Legislature and it might not be an easy sell, Brown warned. The idea may be on the list among other items when a set of proposals for the 2023 legislative session is brought to the assembly this fall.

Cruz, in his advisor capacity, sees potential at the port, for gravel loading of barges, for example, and there is gravel on uplands around the port; for cargo loading relared to large development projects, such as those on the North Slope and for maintenance on barges That will require roll-on, roll-off ramp for the dock, however.

Certain improvements at the port like the roll-on ramp are needed for many potential uses, and the borough does have control of some funds that could be used for improvements, such as $2.1 million appropriated by the state this year to make up for money promised in previous years to help support port activities but never paid.

Assembly member Rob Yundt said the port is the biggest financial liability for the borough and the lack of a roll-on ramp a serious problem in finding customers. At the Tuesday meeting Yundt recalled one contract close to being signed, with one of the state’s biggest lumber companies, that was lost “because cargo could not be safely unloaded,” with no roll-off ramp.

Another opportunity is the participation of the port with the Port of Anchorage in renewable energy development, most likely a tidal power project but also possible solar and wind on nearby borough-owned uplands adjacent to the port. An agreement is in place with Anchorage to work on renewable energy, which is desired by Anchorage so it can market itself as a “green” net-zero emissions facility, an advantage with certain customers.