The National Academies Press

Currently Skimming:

Pages 37-42

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.

From page 38... ... 41 The Matanuska‐Susitna Borough (MSB) and the Alaska Railroad Corporation (ARRC) Read the entire page →
From page 39... ... 42 the deep draft dock with the existing Bulkhead Barge dock. The deep draft dock will be accessed by two new trestles and a second conveyor system to allow for efficient loading of import and export commodities simultaneously. Port MacKenzie specializes in moving heavy industrial and bulk materials through Alaska and beyond. The connection of new rail infrastructure to existing port terminal assets will make Port MacKenzie ideal for large industrial projects and value‐added export processing facilities. MSB is the lead agency in the project development and construction. Upon completion the rail line will be turned over to ARRC. Construction was divided up into six phases which begin in 2012 which includes eight rail segments. The first three segments (1, 3 and 6) were begun in March 2013 and awarded to three separate contractors. The project requires substantial cross drainage, 110 culverts will be installed along the entire route. Segments 2, 4 and 5 were begun in summer of 2013. Segments 7 and 8 were planned to begin in 2014 and 2015. The Matanuska‐Susitna Borough was allotted $116 million for funding for the rail extension project, in the form of state legislative appropriations. Further state appropriations of $126 million was requested in order to complete the project. A $30 million general obligation was approved for the project in November 2012. Stages 1, 3, 4 and 6 of the project have been funded. Nearly $60 million is reserved for segments 2 and 5, while $66.5 million will be kept for segments 7 and 8. The funding was expected to be approved in the 2013 legislative session but due to the downturn in the energy market the state has a $3.5 billion deficit and is unable to provide additional funding. Project Partners  The Matanuska‐Susitna Borough (MSB) Read the entire page →
From page 40... ... 43 Project Achievements A rail track has been two thirds completed but lacks funding to complete the project. State‐of‐ the‐art drainage systems have been designed and installed to preserve the environment and the asset life of the railroad. Environmentally sensitive facility design and construction methods have been used. Separate contractors were hired and assigned to separate construction segments, to allow maximum progress during the short construction season. Voter support was secured to pass a ballot initiative for state funding. This project has been identified and prioritized in the Alaska State Rail Plan. Project Results When complete, the new rail route connecting Port MacKenzie and Houston will boost mining operations in the region by cutting the distance between the port and the interior region by 141 miles (227 km) , which will reduce transportation costs. Low cost competitive transportation access is expected to result in a surge in mining activity along the rail line extension, especially in locations that were underserved by inadequate transportation access. The port will also be able to increase bulk exports upon completion of the new railway line. The rail loop of the port will be able to accommodate 110 rail cars upon completion, which will lead to a significant increase in cargo offloading efficiency. The port is currently only accessible by a 40‐mile (64.4 km) Read the entire page →
From page 41... ... 44 alternative funding sources to complete the project. Based on the project plan, the rail was the last part of the project to be completed. Given a revenue shortfall, no rail is in place and no secondary operations can be undertaken to generate revenue until the track is in place. Every year of funding delay increased the project cost by approximately 5 percent per year, according to the port director. Innovative Funding Measures This is an innovative project because MSB has taken the leadership, with a state owned railroad to develop a 32 mile segment of new railroad. The funding has come exclusively from the state through appropriations and a general obligation bond. In response to the economic downturn and the state budget deficit, MSB and the ARRC are looking into TIFIA loans that the state would execute; however, the state is not in a position to undertake this option. A second option includes private financing. The possibility of foreign direct investment has been examined. What was innovative in the project? MSB's and ARRC's partnership was innovative. MSB, a local unit of government, taking the lead in the project was also unique. A vision to extend a rail corridor, beyond port boundaries, to the Alaska Interior to boost shipping volumes and economic development was innovative given the economic conditions at the time. What measures were used to assess performance? Read the entire page →
From page 42... ... 45 Project Status and Timeline  In June 2007, MSB and ARRC signed a Memorandum of Agreement to pursue environmental work, engineering and alternative analysis in support of the Surface Transportation Board (STB) ‐led environmental document for a Port MacKenzie rail line extension.  Following an extensive environmental review process, the STB issued a record of decision in 2011 recommending the Mac East Variant (Mac Central) Read the entire page →

From page 38...

... 41 The Matanuska‐Susitna Borough (MSB) and the Alaska Railroad Corporation (ARRC)

Read the entire page →

From page 39...

... 42 the deep draft dock with the existing Bulkhead Barge dock. The deep draft dock will be accessed by two new trestles and a second conveyor system to allow for efficient loading of import and export commodities simultaneously. Port MacKenzie specializes in moving heavy industrial and bulk materials through Alaska and beyond. The connection of new rail infrastructure to existing port terminal assets will make Port MacKenzie ideal for large industrial projects and value‐added export processing facilities. MSB is the lead agency in the project development and construction. Upon completion the rail line will be turned over to ARRC. Construction was divided up into six phases which begin in 2012 which includes eight rail segments. The first three segments (1, 3 and 6) were begun in March 2013 and awarded to three separate contractors. The project requires substantial cross drainage, 110 culverts will be installed along the entire route. Segments 2, 4 and 5 were begun in summer of 2013. Segments 7 and 8 were planned to begin in 2014 and 2015. The Matanuska‐Susitna Borough was allotted $116 million for funding for the rail extension project, in the form of state legislative appropriations. Further state appropriations of $126 million was requested in order to complete the project. A $30 million general obligation was approved for the project in November 2012. Stages 1, 3, 4 and 6 of the project have been funded. Nearly $60 million is reserved for segments 2 and 5, while $66.5 million will be kept for segments 7 and 8. The funding was expected to be approved in the 2013 legislative session but due to the downturn in the energy market the state has a $3.5 billion deficit and is unable to provide additional funding. Project Partners  The Matanuska‐Susitna Borough (MSB)

Read the entire page →

From page 40...

... 43 Project Achievements A rail track has been two thirds completed but lacks funding to complete the project. State‐of‐ the‐art drainage systems have been designed and installed to preserve the environment and the asset life of the railroad. Environmentally sensitive facility design and construction methods have been used. Separate contractors were hired and assigned to separate construction segments, to allow maximum progress during the short construction season. Voter support was secured to pass a ballot initiative for state funding. This project has been identified and prioritized in the Alaska State Rail Plan. Project Results When complete, the new rail route connecting Port MacKenzie and Houston will boost mining operations in the region by cutting the distance between the port and the interior region by 141 miles (227 km) , which will reduce transportation costs. Low cost competitive transportation access is expected to result in a surge in mining activity along the rail line extension, especially in locations that were underserved by inadequate transportation access. The port will also be able to increase bulk exports upon completion of the new railway line. The rail loop of the port will be able to accommodate 110 rail cars upon completion, which will lead to a significant increase in cargo offloading efficiency. The port is currently only accessible by a 40‐mile (64.4 km)

Read the entire page →

From page 41...

... 44 alternative funding sources to complete the project. Based on the project plan, the rail was the last part of the project to be completed. Given a revenue shortfall, no rail is in place and no secondary operations can be undertaken to generate revenue until the track is in place. Every year of funding delay increased the project cost by approximately 5 percent per year, according to the port director. Innovative Funding Measures This is an innovative project because MSB has taken the leadership, with a state owned railroad to develop a 32 mile segment of new railroad. The funding has come exclusively from the state through appropriations and a general obligation bond. In response to the economic downturn and the state budget deficit, MSB and the ARRC are looking into TIFIA loans that the state would execute; however, the state is not in a position to undertake this option. A second option includes private financing. The possibility of foreign direct investment has been examined. What was innovative in the project? MSB's and ARRC's partnership was innovative. MSB, a local unit of government, taking the lead in the project was also unique. A vision to extend a rail corridor, beyond port boundaries, to the Alaska Interior to boost shipping volumes and economic development was innovative given the economic conditions at the time. What measures were used to assess performance?

Read the entire page →

From page 42...

... 45 Project Status and Timeline  In June 2007, MSB and ARRC signed a Memorandum of Agreement to pursue environmental work, engineering and alternative analysis in support of the Surface Transportation Board (STB) ‐led environmental document for a Port MacKenzie rail line extension.  Following an extensive environmental review process, the STB issued a record of decision in 2011 recommending the Mac East Variant (Mac Central)

Read the entire page →

Key Terms

← Previous Chapter Skim

Next Chapter Skim →

This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More information on Chapter Skim is available.