Partnership with Alaska Railroad will advance state’s development and future

In the last days of December, it’s customary to contemplate the prior year – and there’s no question that 2023 was a big one for the Alaska Railroad. On July 15, we celebrated 100 years since the completion of our main line; just as President Warren G. Harding traveled to Alaska in 1923 to drive in the golden spike, we were proud to host Gov. Mike Dunleavy, Sen. Dan Sullivan, Federal Railroad Administrator Amit Bose and many more stakeholders and supporters for a centennial celebration in Nenana. We welcomed thousands of Alaskans to our depots in Anchorage and Fairbanks for community open houses featuring free train rides. Those who couldn’t join us at those events can still enjoy a wonderful special exhibit at the Anchorage Museum, “All Aboard: 100 Years of the Alaska Railroad,” on display through Feb. 18. It’s been a great year, celebrating our history with people all across Alaska and around the world.

This milestone has also brought many opportunities for reflection, as we consider what the railroad has meant for Alaska’s past and how this critical infrastructure remains essential to the state’s success today.

The construction of the Alaska Railroad fast-tracked the economic development of Southcentral and Interior Alaska, as safe and reliable transportation unlocked the potential of the region. From the founding of Alaska’s largest city, to supporting critical projects such as the development of Prudhoe Bay and construction of the Trans-Alaska Pipeline, the Alaska Railroad has been a key driver of growth and progress in our state over the last century.

Recognizing the importance of the rail corridor, the state of Alaska bought the Alaska Railroad from the federal government in 1985, including ports in Seward, Whittier and Nenana and 36,000 acres of land for operations, development and leasing. Since then, we’ve remained committed to our mission of safety and service for the benefit of Alaska – and to fulfill that mission as a self-sustaining corporation. Profitability is critically important for our organization, as the maintenance of a 100-year old railroad is no small undertaking; 100% of earnings are plowed directly back into repairs and improvements of our tracks, bridges, facilities and rolling stock.

As our state has grown and changed over the last 100 years, so too have some of the challenges related to operating a railroad across 500-plus miles of Alaska. Our talented and dedicated workforce of over 600 year-round employees work hard to meet the demands of regulatory requirements, technological and safety improvements, right-of-way management and community interests.

Today, the Alaska Railroad remains a vital linchpin of the state’s limited transportation infrastructure. We’re proud to be the last full-service railroad in the nation, serving both freight and passenger customers. Our trains moved almost 4 million tons of freight last year, connecting groceries and consumer goods arriving to the Port of Alaska to customers in the Interior; delivering gravel for local road projects; supporting military training operations; transporting equipment and materials for ongoing North Slope development; and more. Weekly rail barges between Seattle and Whittier connect our tracks to the Lower 48 rail network, driving efficiencies in costs and operations, while cargo ships arriving to the port of Seward unload goods as the next step in the supply chain to Western Alaska.

On the passenger side, regularly scheduled trains connect destinations from Seward to Fairbanks, channeling dollars to local communities and keeping the equivalent of over 8,000 buses off of Alaska’s limited highway system. Our passenger dock in Seward serves as the gateway to Alaska for tens of thousands of cruise guests, an economic boost that extends across the state. And in recognition of Alaska’s unique needs, we also operate the last flagstop train service in the country, providing year-round access to the roadless community north of Talkeetna.

Whether freight or passenger, rail is the safest and most environmentally sustainable transportation option – and frequently the most cost-efficient. It’s part of why the Alaska Railroad remains so important to the state today, and why we will continue to have a central role to play in the years to come.

We see great potential in Port MacKenzie, both as an asset for future export industries, as well as providing security in redundancy for the most heavily populated part of the state. Multi-modal transportation infrastructure is key for the vitality of a port, an area where Port MacKenzie is currently lacking. The state has already made a significant investment in the 35-mile rail extension from Houston to the port, before funding stalled and construction came to a halt. Completing the project is too big for the Alaska Railroad to take on alone, but we believe it’s an important project for Alaska’s future.

Similarly, the Northern Rail Extension is not a new project; Phase 1 of four was completed in 2014, the construction of a 3,300-foot bridge over the Tanana River near Salcha. Full completion of the project would entail 89 new miles of track connecting North Pole down to Delta Junction, enhancing military access to training at the Joint Pacific Alaska Range Complex and potentially supporting future commercial opportunities in the Interior – something that would be good for industry without increasing the burden on the state’s limited highway system.

These are statewide economic development initiatives in both scope and benefit, and well beyond the Alaska Railroad’s ability to achieve alone. That’s why we’re looking for partnership across the state to advance these and other key projects. We’ve seen the impact of connecting our state’s rich natural resources with steel tracks to ports, and the opportunities that increased transportation infrastructure can bring to small Alaska communities. As we look to our next 100 years, we know the Alaska Railroad still has an important role to play in advancing Alaska’s future.

Bill O'Leary is the president and CEO of the Alaska Railroad and oversees daily management and operations of the corporation.