Railroad announces plans to restructure

Alaska Railroad Corp. says it will eliminate 54 positions as part of a major corporate restructuring effort.

The corporation has experienced a $45 million negative swing in finances from 2011 until now.

Contributing factors include:

• a significant drop in revenue from key coal and petroleum freight customers,

• millions less in federal funding, along with an increase in required matching funds,

• and at least $15 million per year to implement a positive train control system as required by an unfunded federal mandate.

Because ARRC curbed hiring as the revenue picture became clear last year, 25 of the 54 eliminated positions are already vacant, thus lowering the number of actual layoffs to 29.

The 8 percent reduction in workforce represents an annual estimated savings of $4.5 million in wage, salary and benefit costs.