fourth quarter 2012 newsletter for alaska railroad ...€¦ · erp system goes live at new year jd...

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ALL ABOARD ALL ABOARD FOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES 02 02 03 03 04 04 08 08 10 10 11 11 12 12 13 13 14 14 CROSSINGS: PRESIDENTS MESSAGE MILEPOSTS: PRESIDENTS AWARDS MILEPOSTS SPOTLIGHT, SERVICE & OTHER AWARDS CROSSINGS: HEALY DRILLS AND OPEN HOUSE SIGNALS: POSITIVE TRAIN CONTROL SIGNALS: 2012 SAFETY RECAP WYE OF IT: IDLE, EMISSIONS REDUCTIONS WYE OF IT: HOLIDAY MESSAGES CROSSINGS: NORTH POLE PROJECT FONSI INSIDE... CROSSINGS: NEWS YOU CAN USE WHY DOES ARRC NEED TO MAKE A PROFIT? CROSSINGS: NEWS YOU CAN USE ERP SYSTEM GOES LIVE AT NEW YEAR JD Edwards, the Alaska Railroad’s new Enter- prise Resource Planning (ERP) system, goes live January 1, 2013. It replaces many outdated software programs, including CMMS, Infinium, Axiom, Project Management and time collection processes. e project team held its final cutover and go-live planning meeting mid-December. On December 30, the team will ensure data correctly transferred from old systems to the new system. As railroaders go to work January 2, they will be using the ERP. To prepare, the project team stepped up com- munications in the last quarter and delved into money to cover our costs. ARRC has received state and federal grants to fund certain large state economic development projects that would otherwise be unaffordable, such as the Tanana River bridge and levee at Salcha (Phase 1 of the Northern Rail Extension). MYTH #2: ARRC can get by with a small net income for a few years. FACT: We spend cash from train operations and real estate on rail- road infrastructure. Repairing and replacing equipment, track, bridges and buildings costs tens of millions of dollars annually. A few projects qualify for federal grants, which are less available. Grants require a local match of 20%, using ARRC cash. A $3 million net income (current 2013 budget) is much too small to fund our ongo- ing annual capital needs. Making matters worse is Why does the Alaska Railroad (ARRC) need to make a profit? is can be a hard question to answer. Yet, people may ask as our 2013 budget woes are discussed inside and outside of the com- pany in the coming weeks. Below are some points to help employees dispel some myths and explain why the railroad needs a healthy net income. MYTH #1: As a state-owned agency, the railroad does not need to make a profit and can even lose money. FACT: When the federal government sold the Alaska Railroad to the state in 1985, lawmakers did not want the railroad to become a fiscal burden, so the Alaska Railroad Transfer Act directs ARRC to be self-sustaining, meaning we must make enough training during December. Dozens of time keepers and reporters attended orientation sessions early in the month. Procurement and train-the-trainer seminars followed. In the last half of December, general training sessions covered the basics of log-in, navigation, time entry and other tasks that affect nearly everyone. Employees unable to attend a training session can self-train with User Productivity Kits (UPK). ese self-paced online lessons provide demonstra- tions on the most common tasks. UPKs are avail- able on the Alaska Railroad employee portal. (See “Why Do We Need Net Income?” on page 6) RAILROAD NET INCOMEIS PLOWED BACK INTO RAILROAD INFRASTRUCTURE, SUCH AS TRACK. (PHOTO BY JUDY PATRICK) (See “ERP System Goes Live” on page 7) 14 14 15 15 CROSSINGS: STATE RAIL PLAN UPDATE SIDINGS: 2014 ART PRINT CONTEST

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Page 1: FOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD ...€¦ · ERP SYSTEM GOES LIVE AT NEW YEAR JD Edwards, the Alaska Railroad’s new Enter-prise Resource Planning (ERP) system,

ALL ABOARDALL ABOARDFOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

0202

0303

0404

0808

1010

1111

1212

1313

1414

CROSSINGS:PRESIDENT’S MESSAGE

MILEPOSTS:PRESIDENT’S AWARDS

MILEPOSTS

SPOTLIGHT, SERVICE & OTHER AWARDS

CROSSINGS:HEALY DRILLS AND OPEN HOUSE

SIGNALS:POSITIVE TRAIN CONTROL

SIGNALS:2012 SAFETY RECAP

WYE OF IT:IDLE, EMISSIONS REDUCTIONS

WYE OF IT:HOLIDAY MESSAGES

CROSSINGS:NORTH POLE PROJECT FONSI

INSIDE...CROSSINGS: NEWS YOU CAN USE

WHY DOES ARRC NEED TO MAKE A PROFIT?

CROSSINGS: NEWS YOU CAN USE

ERP SYSTEM GOES LIVE AT NEW YEARJD Edwards, the Alaska Railroad’s new Enter-

prise Resource Planning (ERP) system, goes live January 1, 2013. It replaces many outdated software programs, including CMMS, Infi nium, Axiom, Project Management and time collection processes.

Th e project team held its fi nal cutover and go-live planning meeting mid-December. On December 30, the team will ensure data correctly transferred from old systems to the new system. As railroaders go to work January 2, they will be using the ERP.

To prepare, the project team stepped up com-munications in the last quarter and delved into

money to cover our costs. ARRC has received state and federal grants to fund certain large state economic development projects that would otherwise be unaff ordable, such as the Tanana River bridge and levee at Salcha (Phase 1 of the Northern Rail Extension).

MYTH #2: ARRC can get by with a small net income for a few years. FACT: We spend cash from train operations and real estate on rail-road infrastructure. Repairing and replacing equipment, track, bridges and buildings costs tens of millions of dollars annually. A few projects qualify for federal grants, which are less available. Grants require a local match of 20%, using ARRC cash.

A $3 million net income (current 2013 budget) is much too small to fund our ongo-ing annual capital needs. Making matters worse is

Why does the Alaska Railroad (ARRC) need to make a profi t? Th is can be a hard question to answer. Yet, people may ask as our 2013 budget woes are discussed inside and outside of the com-pany in the coming weeks. Below are some points to help employees dispel some myths and explain why the railroad needs a healthy net income.

MYTH #1: As a state-owned agency, the railroad does not need to make a profi t and can even lose money.FACT: When the federal government sold the Alaska Railroad to the state in 1985, lawmakers did not want the railroad to become a fi scal burden, so the Alaska Railroad Transfer Act directs ARRC to be self-sustaining, meaning we must make enough

training during December. Dozens of time keepers and reporters attended orientation sessions early in the month. Procurement and train-the-trainer seminars followed. In the last half of December, general training sessions covered the basics of log-in, navigation, time entry and other tasks that aff ect nearly everyone.

Employees unable to attend a training session can self-train with User Productivity Kits (UPK). Th ese self-paced online lessons provide demonstra-tions on the most common tasks. UPKs are avail-able on the Alaska Railroad employee portal.

(See “Why Do We Need Net Income?” on page 6)

RAILROAD ‘NET INCOME’ IS PLOWED BACK

INTO RAILROAD INFRASTRUCTURE, SUCH

AS TRACK. (PHOTO BY JUDY PATRICK)

(See “ERP System Goes Live” on page 7)

1414

1515

CROSSINGS:STATE RAIL PLAN UPDATE

SIDINGS:2014 ART PRINT CONTEST

Page 2: FOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD ...€¦ · ERP SYSTEM GOES LIVE AT NEW YEAR JD Edwards, the Alaska Railroad’s new Enter-prise Resource Planning (ERP) system,

ALL ABOARDALL ABOARD

4TH QTR 2012

2PRESIDENT’S MESSAGE

BUDGET GAP: WHAT’S DIFFERENT THIS TIME?By Chris Aadnesen, President & CEO

Th e 2013 budget problem is diff erent from the one we faced in 2008-2009, when the nation’s economic downturn reduced business across the board. Five years ago, we were able to cut expenses to mirror revenue declines.

Th is time is far worse. Two key factors will af-fect our fi nances well into the future: Positive Train Control (PTC) and federal funding.

PTC is unavoidable and very expensive. We are compelled to spend many millions of dollars each year to fi nish a PTC system. PTC will cost a lot for any railroad to implement. Many stretches of our rail are in remote areas that have no signals or monitoring devices that could support PTC. We’ll have to start from scratch to equip hundreds of miles of this “dark territory”. Alaska’s environment is extreme, so anything we install must be rugged enough to withstand the elements.

Th e Rail Safety Act of 2008 says that railroads must have a PTC system in place by the end of 2015. Even though PTC technology is still a work in progress, the federal law does not provide fund-ing to develop it. Th e Alaska Railroad has been fortunate to use some federal grants to help pay for the PTC work we have done so far. Yet, that federal money is drying up, and much more work remains to complete this huge, complex project.

Th is brings me to factor number two: a serious decline in federal funding for capital projects. Since 2005, the Alaska Railroad has relied on Federal Transit Administration (FTA) formula funds to bring our track up to modern standards and to help fund facility and railcar upgrades that support passenger services. Annual FTA funding has been between roughly $36 million per year and required a 9% match. Next year, our FTA funding drops to $27 million with a hike in local match to 20%. Future FTA funding is fragile.

Earlier this year when Congress worked on a new surface transportation law, certain lawmakers tried to eliminate the Alaska Railroad’s share of FTA funding because we do not operate a traditional commuter rail service. Although we clearly qualify under the law with regularly scheduled passenger service, we will be challenged by the same sentiment when the surface transportation bill is reauthorized in two years.

Th e PTC and FTA factors are hard enough, but they come just as our freight train revenue is falling. With petroleum revenues cut in half and export coal revenues cut by nearly a third in 2013, we will be hard-pressed to break even. Th is means we will have very little money of our own to invest in capi-tal projects or to match scarce federal funding.

Th e Alaska Railroad must emerge a leaner, more effi cient organization. You know this. Dozens of you have faxed, emailed and mailed thoughtful ideas to reduce our costs. Every suggestion will be considered by one or more of the teams formed to tackle restructure, benefi t costs, revenue and fund-ing sources, asset use, vehicle and equipment fl eets, miscellaneous expenses, and communications.

Please know that I appreciate your eff orts.

CHRIS AADNESEN

Five years ago, we were able to cut expenses to mirror revenue declines. This time is far worse. Two key factors will affect our fi nances well into the future: Positive Train Control (PTC) and federal funding.

With petroleum revenues cut in half and export coal revenues cut by nearly a third in 2013, we will be hard-pressed to break even. This means we will have very little money of our own to invest in capital projects or to match scarce federal funding.

Dozens of you have faxed, emailed and mailed thoughtful ideas to reduce our costs. Every suggestion will be considered by one or more of the teams formed to tackle restructure, benefi t costs, revenue and fund-ing sources, asset use, vehicle and equipment fl eets, misc.expenses, and communication.

Page 3: FOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD ...€¦ · ERP SYSTEM GOES LIVE AT NEW YEAR JD Edwards, the Alaska Railroad’s new Enter-prise Resource Planning (ERP) system,

ALL ABOARDALL ABOARD

4TH QTR 2012

3MILEPOSTS: ANNUAL AWARDS

CEO PRESENTS 2012 PRESIDENT’S AWARDSPresident & CEO Chris Aadnesen presented

fi ve President’s Awards during a ceremony held December 18.

Michelle Maddox, Assistant Controller, Accounts

Payable & Payroll, was recognized in part for stel-lar performance earlier this year, when she quickly and skillfully processed retroactive pay for nearly 130 employees following the newly-ratifi ed United Transportation Union contract. She accomplished this special project even while tending to year-end accounting tasks and meeting the special duties associated with the ERP project implementation. Maddox also earns a reputation among subordinates as a fair, respectful and approachable supervisor. Nominations from all three of her subordinates speak highly of her expertise and work ethic, but more importantly, they highlight Maddox’ acces-sibility, consistent inclination to listen and address employee concerns, and her willingness to guide and teach in a respectful and helpful manner. Th e President’s Mentoring Award salutes an unfl appable professionalism along with a knack for motivating others.

Kevin Meier, Rail-Marine Operations Manager, excels in managing our rail-barge operation at the Port of Seattle, where he works far from ARRC sup-port systems. In the nearly 20 years he has worked for ARRC’s Seattle operation, he has developed important relationships that promote the success of this business line. Alaska Rail Marine Service (ARMS) volumes now comprise 27% of our annual freight revenues and 21% of our operating revenues and we expect it to remain a bright spot moving into 2013. Meier actively and diplomatically man-ages partnerships with three crucial business allies — Burlington Northern Santa Fe (BNSF), Union Pacifi c (UP) and Alaska Marine Lines (AML). He skillfully directs the activity of non-ARRC em-ployees on our dock, contract employees, as well as barge owner and operator AML. He resolves the diffi cult issues, demonstrating that uncompromised safety can and should go hand-in-hand with maxi-mized revenue and excellent customer service.

Willow Peyton, Business Systems Analyst II,

played a fundamental role in modifying the Op-erational Monitoring Database computer program to better meet the needs of end-users. During this year-long project, she demonstrated exceptional in-genuity and perseverance, grasping concepts of rail-roading well outside her normal areas of expertise. Peyton’s eff orts cut the data entry time in half, while also partially automating the ever-increasing man-datory record-keeping requirements for Engineer

and Conductor Certifi cation testing. Resulting data entry/retrieval time savings allow managers to spend more time pursuing other productive activi-ties. Database program revisions were made at no additional cost beyond Peyton’s time. Moreover, her eff ort eff ectively delayed the purchase of new and expensive tracking software. Peyton was nominated outside of her department, by the Transportation Department’s operating rules and training section.

Patrick Volmer, Conductor/Engineer recently

promoted to Transportation Field Manager II,

played a critical role as ARRC’s transportation logis-tics manager during construction of the Eva Creek Wind Farm project near Ferry. Living in Healy for six months, Volmer was personally involved with every railcar movement, working with train crews. Th is transportation service operated with half the resources originally planned, netting $1.6 million at an enviable 0.43 operating ratio. Th e eff ort moved more than 2,000 items on 600 railcars. Our trains hauled fuel, cement and equipment ranging from small four-wheelers, to huge turbine propellers, to the largest crane ever assembled in Alaska. Volmer also served as liaison between the general contrac-tor and a myriad of subcontractors. His leadership helped to pool the skill and knowledge from many railroad departments (Projects, Business Devel-opment, Engineering, TOFC, Mechanical and Transportation) and diverse vendors and suppliers. Appropriately, fi ve peers from a cross-section of departments nominated Volmer.

Stephenie Wheeler, Corporate Communica-

tions Offi cer, off ers a variety of skills often found in an entire public relations fi rm. She has done an outstanding job executing the railroad’s federal capital grant public involvement eff orts, setting new standards for other grant recipients throughout the state. She re-energized our Green Star program, resulting in the Alaska Railroad’s 2011 Green Star Super Nova Award, a premier honor recognizing environmental stewardship eff orts. Wheeler shares our company stories with employees, stakeholders and the public through three diff erent newsletters — all expertly written, photographed, designed and published in-house. She was also instrumental with the Railroad’s team eff ort to save our Federal Transit Administration funding. On any given day, she contributes to the company, employees and custom-ers through functions ranging from special event coordination, to in-kind donations, to incident command, to employee recognition, to public and stakeholder communications.

MICHELLE MADDOX

KEVIN MEIER

WILLOW PEYTON

PATRICK VOLMER

STEPHENIE WHEELER

Page 4: FOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD ...€¦ · ERP SYSTEM GOES LIVE AT NEW YEAR JD Edwards, the Alaska Railroad’s new Enter-prise Resource Planning (ERP) system,

ALL ABOARDALL ABOARD

4TH QTR 2012

4MILEPOSTS: APPRECIATION AWARDS

SPOTLIGHT AWARDS IN FINAL QUARTER 2012A number of railroaders were nominated for

Spotlight Awards during the last quarter of 2012. Th ey were presented during December.

Project Scheduling, Logistics, Estimating &

Materials Manager Blake Adolfae provides out-standing service to a number of customers while managing several customer track and crossing projects. Examples include: QAP’s Kashwitna gravel pit track construction; the U.S. Army’s crossings on Fort Wainwright; the Dept. of Transportation’s (DOT) multiple crossing rehab and safety projects; the City of Fairbanks’s new crossing; and develop-ment of future crossing safety projects in concert with DOT. Adolfae is known for ensuring projects go as planned, because he is thorough, thoughtful, inclusive and willing to communicate. Crossing surface and signal upgrades constitute major safety improvements that benefi t the public and railroad employees. Th e Alaska Railroad enjoys a particu-larly low rate of crossing incidents due to ongoing eff orts, such as Adolfae’s, to maintain at-grade crossings to standards. In the 1990s there were six train/highway collisions; since 2000 only one such collision has occurred.

Transportation Timekeeper Ione Gobbi con-sistently performs her job with exceptional com-mitment and care. Co-workers praise her job performance, including a willingness to work as many hours as it takes to get the job done — par-ticularly when fellow employees are depending on her for accurate and timely pay. Although she has a busy work schedule, colleagues notice her eff orts to develop solutions to operational and customer service challenges within her department. She actively seeks crew call and time-keeping system improvements that mutually benefi t colleagues and the company.

Guest Services Director Bruce LaLonde off ers outstanding leadership in the area of customer

service on and off the train this summer. His direct involvement enhanced the customer experience this year, as evidenced by record-high numbers for on-time departures, positive customer interactions and customer compliments. By improving the public impression and perceived value of our pas-senger services, the Alaska Railroad can reasonably increase rates in future years. For example, ARRC direct-controlled passenger revenues (excluding pull contracts) year-to-date through September totaled $13.5 million. A modest rate increase of 1% would yield $135,000 annually. Such an increase in revenue is only possible when customer service and satisfaction are high.

Seward Dock & Real Estate Manager Louis Ben-

cardino and Seward Dock Operations Manager

Christeffal Terry comprise a two-person team that represents the Alaska Railroad to the Seward com-munity. ARRC’s 24-hour, 7-day-a-week dock opera-tions mean the duo is on-call at odd hours, often performing tasks well beyond normal expectations. Th eir fl exibility and competence contribute to the Seward Dock reputation for user-friendly service that translates to growth. In the last two years alone, freight dock revenue increased 43% from 2010 ($654,629) to 2011 ($939,120); and 20% from 2011 to 2012 (forecast $1,131,380). Passenger-related revenue also rose, increasing 4% from 2010 ($1,093,169) to 2011 ($1,136,254); and another 6% from 2011 to 2012 (forecast $1,208,667). Th e company’s standing depends on Bencardino’s and Terry’s personal character and connections with the community. As former Seward police chief, City Council member and mayor, Bencardino is a civic icon and his can-do attitude has bolstered the relationship between ARRC and the city. As a long-time resident, current City Council member and former city employee Terry provides valuable insight into local government priorities.

25 Years

GARY SETTEN

TRANSPORTATION

35 Years

MIKE HULS

TRANSPORTATION

45 Years

KAREN MORRISSEY

REAL ESTATE

30 Years

STEVE CAIN

TRANSPORTATION

ROBERT YOST

TRANSPORTATION

SourdoughService Awards

BELOW, LONG-TIME

RAILROAD EMPLOEES

WERE HONORED DURING A

RECOGNITION CEREMONY

DECEMBER 18.

(PHOTOS BY

STEPHENIE WHEELER)

Page 5: FOURTH QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD ...€¦ · ERP SYSTEM GOES LIVE AT NEW YEAR JD Edwards, the Alaska Railroad’s new Enter-prise Resource Planning (ERP) system,

ALL ABOARDALL ABOARD

4TH QTR 2012

5MILEPOSTS

SERVICE AWARDS: OCTOBER - DECEMBER1 Year Calvin Gustafson. . . . . . . . . . . . . . . . . . MechanicalJason Knight . . . . . . . . . . . . . . . . . . . .MaintenanceShane Maloney . . . . . . . . . . . .Facility MaintenanceBrooke Miller . . . . . . . . . . . . . . . . . . .MaintenanceJacob Pennell. . . . . . . . . . . . . . . . . . . .MaintenanceLevi Perry . . . . . . . . . . . . . . . . . . . . . .MaintenanceJardan Ruiz . . . . . . . . . . . . . . . . . . . . .MaintenanceTerry Sadler, Jr. . . . . . . . . . . . . . . . . . . . MechanicalJake Th omson . . . . . . . . . . . . . . . . . . .MaintenanceJoseph Van Hyning . . . . . . . . . . . . . . .MaintenanceMichael Williamson . . . . . . . . . . . . . . . Mechanical

5 Years Earlene Aquino . . . . . . . . . . . . Project ManagementSigurdur Kristin Byron III. . . . . . . . . . . MechanicalRussell Ivey . . . . . . . . . . . . . . . . . . . . . . MechanicalEdwin “Tucker” Remley . . . . . . . . . .Guest ServicesMatthew Shaw . . . . . . . . . . . . . . . . TransportationKevin Walker. . . . . . . . . . . . . . . . . . . .Maintenance

10 Years Gary Haas . . . . . . . . . . . . . . . . . . . . . . . MechanicalJonah Himes . . . . . . . . . . . . . . . . . . . . . . . . . Signal

Yukio Kaneshiro . . . . . . . . . . . . . . . TransportationLester Lunceford . . . . . . . . . . . . . . . . . . Real EstateJohn Luxford. . . . . . . . . . . . . . . . . . . .MaintenanceWilliam Smith. . . . . . . . . . . . . . . . . . .MaintenanceLawrence Sullivan . . . . . . . . . . . . . . . . . MechanicalErick White. . . . . . . . . . . . . . . Engineering Services

15 Years Glen Biegel . . . . . . . . . . . . . . . Information ServicesMartha Conlan . . . . . . . . . . . . . . . . TransportationJohn Godbey. . . . . . . . . . . . . . . . . . TransportationKeri Mezaros . . . . Corporate Aff airs AdministrationJeff rey Nelson . . . . . . . . . . . . . . . . . . . . Mechanical

25 Years Douglas Schilling . . . . . . . . . . . . . . . .Maintenance

30 Years Gerald Christensen . . . . . . . . . . . . . . . . MechanicalRobert Yost . . . . . . . . . . . . . . . . . . . Transportation

35 Years Michael Huls. . . . . . . . . . . . . . . . . . . .Maintenance

45 Years Karen Morrissey . . . . . . . . . . . . . . . . Real Estate

MILEPOSTS

HOME FRONT: BIRTHS AND RETIREMENTSBirths: New Arrivals

Carman Trainee (Anchorage) John Waldren and wife Rosalyn welcomed son Johnny Michael Waldren III on September 19.

Conductor/Brakeman Mike Weatherell and wife Heather welcomed daughter Riley Lynn on December 3.

Retirements: Fond Farewells Heavy Equipment Mechanic Ted Ashbridge

retired from the Mechanical Department (Fair-banks) after more than 20 years of service.

MILEPOSTS

NEW HIRES: OCTOBER - DECEMBERConnie Carter . . . . . . . . . . . . . . . . . TransportationMichael Ervin . . . . . . . . . . . . . . . . . . . Mechanical

Christina Glover . . . . . . . . . . . . . . . . . . AccountingTh eresa MacLeod . . . . . . . . . . . .Human Resources

Facilities Maintenance Mechanic Stephen

Chiperno retired from the Facilities Depart-ment after more than 31 years of service.

Journeyman Mechanic Leader Gerald Chris-

tensen retired from the Mechanical Department after more than 30 years of service.

Journeyman Mechanic Charles “Chuck”

Loritz retired from the Mechanical Department after nearly 20 years of service.

Locomotive Electrician Charles Schmidt

retired from the Mechanical Department after nearly 31 years of service.

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4TH QTR 2012

6

ABOVE, LEFT: THE

FRONT COVER OF THE

2013 NARS

CALENDAR FEATURES

ARRC EMPLOYEE

FRANK KELLER’S

PHOTO.

RIGHT: FRANK

KELLER’S PHOTO IS SO

COMPELLING THAT IT IS

USED IN SOME ALASKA

RAILROAD MATERIALS,

SUCH AS THIS YEAR’S

REPORT TO THE STATE

RELEASED TO ALASKA

LEGISLATORS AND THE

GOVERNOR ON DEC. 1.

MILEPOSTS: EXTERNAL KUDOS

EMPLOYEE’S PHOTO EARNS CALENDAR COVERIn late November, Alaska Railroad (ARRC)

employee Frank Keller received word that his photo would be featured on the front cover of the 2013 calendar of the National Academy of Railroad Sciences (NARS), which provides employee train-ing and certifi cation to the North American rail industry. In early fall, NARS solicited photos from railroads that are members of the American Short Line and Regional Railroad Association (ASLRRA). Keller’s photo was among 12 photos selected out of nearly 100 images submitted by 35 ASLRRA members. Railroads represented by winning entries receive 20 complimentary calendars and one week of free NARS training.

Keller’s winning photo depicts a northbound coal train along Turnagain Arm. Keller is a Terminal Support Clerk who joined ARRC in May 2011.

“As a crew driver, I really did get to see quite a bit of the railroad,” said Keller, who has enjoyed photography as a hobby since 1978. “When I take pictures, I am looking at the overall scene, and whether or not it would be pleasing to the eye. Sometimes it’s just wildlife or a landscape, but I like to include a train when possible.”

“Th is is the third year NARS has produced a desk calendar, but 2012 was the fi rst year we held a photo contest,” said NARS photo contest coordina-tor Nicole Plute. Th e judging panel included career

railroaders and graphic artists who based their selections on composition, color, quality and industry representation.

At least 1,000 calendars were printed and were distributed to NARS customers and ASLRRA members in December. Based in Overland Park, Kansas, NARS is a collabora-tive partnership between Johnson County College and Burlington Northern Santa Fe (BNSF) Railway. NARS off ers training to locomotive engineers and other train crew, railcar and locomotive mechanics, railroad facility maintainers, railroad bridge inspectors and maintainers, signal and telecom techni-cians and railroad supervisors.

the federal mandate to install an expensive Positive Train Control (PTC) system by 2015. Th e PTC project alone will require tens of millions of dollars per year, for several years.

MYTH #3: Th e Alaska Railroad can defer capital projects and maintenance.FACT: We prioritize capital projects according to safety and effi ciency benefi ts. We cannot delay some capital work without aff ecting safety; track and bridge rehabilitation are prime examples. Other capital projects modernize buildings and technology to save time and resources, or improve customer service — this is vital for any business. Law or regulation requires still other capital projects — such as PTC.

A robust capital program is central to a safe, effi cient railroad. If we do not invest enough in our

buildings, bridges, track and equipment, these assets will deteriorate, particularly in Alaska’s extreme setting. Th e same facts apply to a homeowner who does not properly maintain a house (paint, insulate, roof repair etc.). Delaying maintenance causes damage that will cost much more to repair or replace in the end. Such damage causes safety and service levels to decline, which begins a cycle of fewer customers, and less revenues to invest in capital assets, and so on.

Th e bottom line is that the business of railroad-ing demands major capital investment and our “net income” pays for this. Breaking even or worse is not a viable option for the Alaska Railroad. In fact, the Alaska Railroad not only needs a net income, it needs a healthy net income in order to meet its mis-sion to serve customers and the state of Alaska.

WHY DO WE NEED NET INCOME? ... (continued from page 1)

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4TH QTR 2012

7

Other employee resources are in place. Most departments chose several employees to train more in-depth, so that they can help co-workers with basic questions. Th e company Help Desk added staffi ng to assist with ERP. Over the next few months, the project team will remain intact to ad-dress any complex issues and help fi ne-tune the core ERP as needed.

“More than 2500 companies are using this proven software, so we know it works well,” said Mike Schuh, ERP project Manager. Even so, it will take time for Railroad employees to learn the new system, and January will be a time of adjustment as railroaders get up to speed.

With the core system in place, the ERP project moves into Phase 2. Th is phase will replace and add several self-serve functions to the Human Resources Portal. Soon employees will be able to correct or change some information online, such as address or tax-withholding changes. Phase 2 will also add a Real Estate module to support the leasing and per-mitting business. Th is module will replace current systems, including GIS. Phase 2 should conclude by mid-2013.

“Th e new system will speed our timekeeping process in many areas,” said VP Engineering Tom Brooks. “It will also increase our ability to track costs back to source documents — a great help for our grant and reimbursable work processes.”

“Implementation of the JD Edwards ERP software will allow us to automate many previously

manual processes, enhancing corporate effi ciency,” said Alaska Railroad Chief Financial Offi cer Bill O’Leary. “Further, management reporting will be improved due to capturing important fi nancial data in one database, rather than dispersed over multiple systems as is the case currently. In these lean times, such effi ciency eff orts are critical.”

It is a tribute to the project team and to the company that the project remained on course, despite major challenges in 2012,” said Schuh. “Th e project is on-time and on-budget thanks to a great team eff ort since the kick-off in August 2011.”

VP Information Services, Technology & Signals Eileen Reilly echoed appreciation for the team. “Th e ERP eff ort has involved folks from just about every department and working group at the Alaska Rail-road. Th e project has required the team members to support their ‘day’ jobs while adding the extra eff ort needed to design, confi gure, communicate and test work fl ows,” said Reilly. “I want to thank the team for their eff orts to date and in advance for their sup-port of the conversion and stabilization to the new ERP system.”

Project Team:Executive Committee:

VP Engineering Tom Brooks VP Finance Bill O’Leary VP Info Sys-Technology-Signals Eileen Reilly

Project Manager: Mike Schuh

Team Leads:

Budget Director Barbara Amy Chief Mechanical Offi cer Doug Engebretson Purchasing Director Robert Gonzalez Grant Administration Director Shawnessy Leon Human Resources Director Susan Lindemuth Assistant Controller Michelle Maddox Controller Wendy Richerson Business Systems Manager Paul Willman.

ERP SYSTEM GOES LIVE ... (continued from page 1)

MIKE SCHUH

BLANKET PURCHASE ORDER TRAINING. (PHOTOS BY CATHY FROST) USER TRAINING MENTIONS UPK ONLINE LESSONS.

The ERP effort has involved folks from just about every department and working group at the Alaska Railroad.

EILEEN REILLY

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8WYE OF IT: CUSTOMERS AND COMMUNITIES

RAILROAD DRILLS AND DELIGHTS IN HEALY At the beginning of the fourth quarter, about

two dozen Alaska Railroad employees traveled to Healy to engage with local residents on three very diff erent levels with highly successful results. Th e Healy Rail Yard became the site of two emergency drills and a premier open house.

On October 5, the railroad kicked off its annual state-required Oil Discharge Prevention & Con-tingency Plan (C-Plan) exercise observed by the Alaska Department of Environmental Conservation (ADEC). Led by Environmental Operations Man-ager Matt Kelzenberg, the fi eld exercise provided a chance to test the pumps, hoses, fi ttings and other items in the railroad’s equipment response van. Th e Incident Management Team (IMT) call-out and control at the Anchorage Operations Center worked very well in support of the on-scene response.

Th e morning of October 6, the railroad con-ducted a federally-mandated annual Passenger Train Emergency Preparedness Plan (PTEPP) exercise, working with local emergency responders along the railbelt between Denali and Nenana. About 20 volunteers became familiar with the passenger train environmental, and practiced onboard medical response and passenger extraction.

Both drills met regulatory requirements, as-sessed response in a remote location, and tested the AMLR radios. AMLR is the primary communi-

cations system used by local and state emergency response agencies statewide.

Once the PTEPP wrapped up October 6, the railroad delighted nearly 200 Healy residents who attended the railroad’s fi rst small community open house, coordinated by External Aff airs Manager Tim Sullivan. At 11:00 a.m. the Healy Community Center quickly fi lled with families pouring in to enjoy a barbecue lunch and to visit tables set with railroad merchandise, prize drawings, give-aways, kids activities and information about the railroad, local GVEA wind farm project, Usibelli Coal Mine and Alaska State Parks. By 1:00 p.m. residents headed to the rail yard to enjoy free train rides that delighted all ages.

Th e three-for-one trip to Healy off ered excep-tional training and enhanced community relations. “It was an ambitious undertaking to accomplish both drills and an open house concurrently in a remote setting like Healy,” said David Greenhalgh, who oversaw the PTEPP drill, observed the C-Plan drill, and coordinated the Open House free train rides. “Th e combined trip turned out to be a very effi cient and eff ective way to fulfi ll regulatory re-quirements. ADEC was impressed. We have confi -dence that our equipment works. Th e residents were thrilled. It was a win-win-win on all three levels.”

(See Healy Open House photos on page 9)

Open House in Photos

1 RAILROAD MOBILE

EQUIPMENT. THE BLUE

CONTAINER SERVES AS A

BREAK ROOM. THE RED

CONTAINER CONTAINS

RESPONSE EQUIPMENT.

THE TANKER IS USED

TO SIMULATE A SPILL

RESPONSE.

2 THE C-PLAN DRILL

INCLUDES SIMULATED

PUMPING OF REMAINING

“FUEL” FROM A “DAM-

AGED” TANK CAR TO

ANOTHER TANK CAR FOR

SAFE REMOVAL.

3 LOCAL RESPONDERS

PRACTICE EXTRACTING

“INJURED” PASSENGERS

FROM A PASSENGER RAIL

CAR.

4 LOCAL RESPONDERS

PRACTICE EMERGENCY

MEDICAL PREPERATION

ABOARD A PASSENGER

CAR.

(PHOTOS BY STEPHENIE

WHEELER AND

TIM SULLIVAN)

1

3

2

4

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9HEALY OPEN HOUSE PHOTOS ... (continued from page 8)

Open House in Photos

1 CHILDREN ONBOARD

THE FREE-RIDE TRAIN

HAVE FUN WITH GVEA

WINDMILL GIVE-AWAYS.

2 GVEA OFFERS INFO

AS PART OF THE OPEN

HOUSE DISPLAYS IN THE

COMMUNITY CENTER.

3 BRUCE LALONDE

VOLUNTEERS AT THE KIDS

TATTOO TABLE.

4 FAIRBANKS TICKET

AGENT ALESIA SALMELA

MANS THE OPEN HOUSE

MINI GIFT SHOP, AND

HELPS RETIRED RAIL-

ROADER STEVE LOVE

WITH A PURCHASE.

5 HEALY STUDENTS TALK

TO ARRC CEO CHRIS

AADNESEN ABOUT THEIR

TRAIN ART AND DISPLAY.

6 DWIGHT WEST

MANS THE OPERATION

LIFESAVER TABLE IN THE

COMMUNITY CENTER.

7 HEALY STUDENTS POSE

IN FRONT OF THEIR

INFORMATIONAL DISPLAY

ABOUT THE RAILROAD.

8 DENNY BENSEL PASSES

OUT RAILROAD LOGO

BALLOONS.

(PHOTOS BY STEPHENIE

WHEELER)

1

3

2

4

5 6

7 8

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10SIGNALS: SPOTLIGHT ON SAFTEY AND SECURITY

POSITIVE TRAIN CONTROL: WHY AND WHENTh e huge expense of creating a positive train

control (PTC) system is a factor in the Alaska Rail-road’s fi nancial challenges. Th e railroad has spent more than $50 million on this project in previous years, and we need tens of millions of dollars more to complete it.

But why is PTC important? Why must we spend the money now, when we can least aff ord it?

PTC is a federal requirement for passenger railroads.

PTC is important because Congress requires U.S. railroads to have PTC if they provide pas-senger service. Th e PTC deadline is December 31, 2015. Th is mandate came by way of the Rail Safety Improvement Act of 2008. Th e timing of the law may have been triggered by the 2008 Southern California Metrolink train collision with a Union Pacifi c freight train, which killed 29 people and injured 100 others. However, a PTC federal man-date has been in the works much longer. In 1989, the National Transportation Safety Board (NTSB) placed PTC on its list of 10 most wanted recom-mendations. Th e Rail Safety Act of 1994 required a PTC demonstration project. Since then, the NTSB found that PTC could have prevented several high-profi le rail accidents, and the pressure to require PTC grew, until the law passed in 2008.

ARRC has been working on PTCsince the 1990s.

In the late-1990s, the Alaska Railroad was awarded research and development grants to explore a PTC system (known as Collision Avoidance). We learned a great deal from this eff ort, and we invested in essential equipment to support our ongoing operations and PTC. Th ese operational improvements include a Computer-aided Dispatch system to ensure no confl icting authorities are issued, new voice radios, upgrades to the commu-nications infrastructure at microwave sites and the installation of redundant systems for availability and signal systems.

No more federal funding is available.While the 2008 law requires PTC, Congress

did not allocate funds to support it. Technology for some mandatory PTC features is just being developed and has not been tested. We are among many railroads seeking solutions. Th e Alaska Rail-road runs through a much more remote geography and severe weather. Because a PTC system requires power to run equipment at switches and signals, the result is an even more costly system in Alaska.

The deadline is approaching.Although the rail industry has asked Congress

to extend the 2015 deadline since 2008, lawmakers have not acted. Th is does not bode well for an ex-tension. As the safety agency for all U.S. railroads, the Federal Railroad Administration (FRA) expects railroads to try to meet the deadline. Th e law says a railroad cannot operate a passenger service if it fails to install PTC. Getting an FRA exemption is highly unlikely. Th is reality means the Alaska Railroad must demonstrate a good faith eff ort in pursuing PTC and seeking sources to fund it. We are doing so with a team approach.

An ARRC team is working on PTC. Field testing begins next summer.

Because PTC touches every aspect of train operations, the PTC development team includes more than a dozen railroad employees from Signal, Maintenance of Way, Train Operations and Op-erating Rules, Mechanical, Communications and Information Technology departments. Known as an industry leader in PTC development, ARRC VP Eileen Reilly guides this team.

We are making progress. According to Project Manager Brian Lindamood, the team expects to start tests on the pilot corridor this fall. Testing will take at least 18 months and when test results are satisfactory, ARRC will ask the FRA to certify the PTC system for use in revenue service.

CTC TECHNICIAN

SHANNON JENSON

PREPARES TO INSERT A

SIGNAL MODULE INTO

PTC EQUIPMENT FOR

TESTING. MONITOR-

ING MANUAL SWITCH

LOCATIONS IN “DARK

TERRITORY” ALONG

THE ALASKA RAILROAD

IS AN REQUIRED PART

OF DEVELOPING AND

IMPLEMENTING A PTC

SYSTEM.

(PHOTO BY JUDY

PATRICK)

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11

MARK MITCHELL

DAN FRERICH

SIGNALS: SPOTLIGHT ON SAFTEY AND SECURITY

SAFETY: WHAT MUST CHANGE FOR 2013?By Mark Mitchell, Safety Director

We will not meet many of our safety goals this year. As 2012 concludes, we need to ask, “What must change in order to make the Alaska Railroad a safer place to work for every employee?”

While our company has adopted many changes that should lead to a safer environment, it is also true that change takes time. Individuals have con-trol over their thoughts and actions, but corpora-tions refl ect a group, which is slower to adapt and to collectively benefi t. Even so, we are seeing progress from major safety eff orts in play this year:

We continue to put ourselves under the micro-scope, noting any action that falls outside of safety expectations. To the good, we won’t let up on the challenge to improve. Th e down side is that we look worse on paper than previous years when the same tracking and accountability were not in practice. Yet reality is what it is.

We transformed typical safety meetings into Safety Field Teams that quarterly spend a day working beside employees from other depart-ments. Th is gives employees the freedom to open up about important safety issues in a new and eff ective way.

Th e Safety Issue Resolution Process (SIRP) con-tinues to be used to impressive eff ect. Log onto the SIRP portal and view the 337 SIRP issues addressed since 2007. We are closing out safety issues at an average rate of one every six days.

As of 2010, each department is responsible for crafting and implementing their own yearly Safety Action Plan. Departments now track and

measure their progress towards completing all of required safety training, topic by topic.

We continue a robust Hearing Conservation Program that is agressively protecting people.

We established six new safety programs and revamped several other established programs

Moving forward, what more can we do? More individuals must recognize their own “at-risk behav-ior” which lies at the heart of each incident. At-risk behaviors begin with a mindset that leads to injury or property damage. Some examples:

Assuming that work environment is stagnant, with nothing changing

Taking for granted that someone else has cov-ered an issue

Complacency Institutional ways of doing things: ”We’ve

always done it like that” Mind not in the game Eyes not on task “It won’t happen to me” mentality Ignoring signals that a situation is dangerous Poor preparation

If each employee aims for zero “at risk behav-iors,” the Alaska Railroad can collectively make 2013 safer than any other year on record. As each railroader adopts a goal to go home unhurt, the Alaska Railroad as a whole will start to keep pace. We can gain momentum one incident-free employ-ee at a time, until 2013 becomes a year of pride, instead of disappointment.

SIGNALS: SPOTLIGHT ON SAFTEY AND SECURITY

POLICE CHIEF: ON-THE-ROAD REMINDERSA rash of recent traffi c infractions suggests that

some railroaders are distracted, says Alaska Railroad Police & Security Chief Dad Frerich. “Whether driving a company vehicle or your own car, please take a moment to focus on the task,” he said. “Take a deep breath and clear your mind before starting the engine. ”

Frerich off ers these other on-the-road reminders: Put your phone down; no calling or texting or

checking email. Put your seatbelt on, and insist everyone in your

car does the same. Use your blinker; do not leave other drivers

guessing.

Slow down; the roads are slick. Look before backing, turning, crossing, chang-

ing lanes… everything. Leave enough space between your car and the

one ahead of you. Come to a complete stop.

As you get behind the wheel, take note of these common sense pointers. Th is is important at any time, but particularly now, when the stresses and demands of the holidays, winter work, budget and other tasks may be competing for your attention. Don’t ruin your holiday with a traffi c ticket, fi ne, accident or worse.

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12CROSSINGS: NEWS YOU CAN USE

IDLE REDUCTION FUELS CONSERVATION SUCCESSTh e very successful Locomotive Idle Reduction

Program (IRP) eff ort has become the fl agship of the Alaska Railroad’s Fuel Conservation Program. Since November 1, locomotives operating in Anchorage, Fairbanks and Seward rail yards are stored inside when not in use. Th is means the engines do not need to idle to stay warm, saving a LOT of fuel.

One 3,000-horsepower GP-40-2 locomotive burns about 44 gallons per hour when idling at temperatures below zero. Th e IRP aff ects three locomotives in Anchorage, seven in Fairbanks and two in Seward. During November, the fi rst month of IRP implementation, ARRC reduced fuel usage an estimated 40,000 gallons. Based on past opera-

tions, the railroad could save as much as 50,000 gallons of fuel in An-chorage and more than 100,000 gallons in Fair-banks over the course of the winter. With diesel costing more than $3 per gallon, fi nancial sav-ings could be well over half a million dollars.

Th e program has added cost benefi ts. A locomotive that idles

outside in sub-freezing temperatures requires more time and resources to maintain than a locomotive that keeps warm inside. Mechanics spend less time preparing the locomotives for yard service. Warm locomotives are also more reliable, so we need fewer engines prepped for backup. Again, this equate to less mechanical time.

Another bonus is lower emissions. Th is is espe-cially important in areas like Fairbanks, where ex-tremely cold temperatures cause inversions that trap pollution near the ground, causing poor air quality. Th e Fairbanks North Star Borough supports ARRC eff orts wholeheartedly, according to Borough Mayor Luke Hopkins. “As the borough continues to edu-cate the public about the importance of clean burn-ing during our winter months, I applaud the eff orts of the Alaska Railroad for doing its part to reduce pollution in the borough,” said Hopkins.

From the outset, the IRP inspired a team eff ort among several departments, including Maintenance of Way, Mechanical, Real Estate & Facilities and Transportation. Employees across the board got creative in the quest to free up space indoors. Facili-ties technicians helped modify space in the Fair-banks roundhouse to fi t more locomotives inside. Fairbanks Maintenance of Way crews came up with a more fl exible heated storage plan for their ballast regulators. Th e Fairbanks Mechanical Heavy Equip-ment shop consolidated activities in their work area without losing effi ciency. Anchorage Mechanical employees devised a plan to cold store locomo-tives not used during the winter. North and south, Transportation crews are diligent about getting their locomotives inside and shut down quickly.

“As we gather more information and history, we expect to further validate our numbers,” said David Greenhalgh, ARRC Director of Crew Management and Transportation Services. “Th e next phase will track the positive environmental impact from fewer emissions. Employee support for the program has been overwhelming and compliance is equally impressive.”

LOCOMOTIVES ARE

PARKED INSIDE THE

ANCHORAGE DIESEL

SHOP.

(PHOTO BY

DENNIS BOUWENS)

DAVE GREENHALGH

SIDINGS: EMPLOYEE HAPPENINGS

TEAMSTERS, RAILROAD SIGN NEW CONTRACT Th e International Brotherhood of Teamsters Local 959 and the Alaska Railroad signed a new three-year

labor agreement on October 4, 2012. PICTURED FROM LEFT TO RIGHT: VP TRANSPORTATION ME-CHANICAL PAT SHAKE, HEAVY EQUIPMENT OPERATIONS MAN-AGER ED HILLS, LOCOMOTIVE OPERATIONS MANAGER DON FREESTONE, LABOR RELATIONS DIRECTOR DEBRA ENGLISH, PRESIDENT/CEO CHRIS AADNESEN, UNION NEGOTIATIONS COORDINATOR RICK TRAINI, REFRIGERATION EQUIPMENT MECHANIC DAN KANE, UNION ORGANIZER DEREK MUSTO, HEAVY EQUIPMENT MECHANIC JEFF DEBROECK, LOCOMOTIVE ELECTRICIAN STEVE CONLAN, AND LOCOMOTIVE ELECTRICIAN DAN STOKES. CHIEF MECHANICAL OFFICER DOUG ENGE-BRETSON AND EQUIPMENT MAINTENANCE SPECIALIST JOHN SCHNEIDER NOT PICTURED. (PHOTO BY STEPHENIE WHEELER)

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13WYE OF IT: CUSTOMERS AND COMMUNITIES

SYMPTOMS OF “IRON HORSE DISEASE”Editor’s Note” Reprinted with permission from Pat Durand, President, Engine 557 Restoration Company

You most certainly have a terminal affl iction. All the symptoms are present in your actions, no blood test is required. It is rare, long lasting but rarely fatal. I will live with it, just as you will. Feraequineosis! Look it up in a Latin diction-ary. “Terminal affl iction originating in Great Britain and North America which has spread worldwide. Most sus-ceptible are males between the ages of 4 and 90. No known cure, for the problem originates in the cognitive portions of the brain and slowly spreads. Some cases require commit-ment full time.

Early attempts at a cure required breathing aspi-rated steam cylinder oil, which resulted in patients standing at track side waiting for a locomotive to go by. Unfortunately, these gatherings grew into photo lines of the curious, and the scourge contagion spread unrestrained in the days of steam railroading. Th ose lines diminished slightly when diesels came

into play, but those now addicted to the supposed cure, just retreated to out-of-the-way places like Cass, Durango, Alamosa, Union, Scranton, Felton and other locations where steam locomotives are operated just to meet the demand for a fi x.

Th e pejorative term foamers properly describes some of the more demented members of the affl icted group. It has become common practice for some misguided souls to seek employment with railroads in an attempt to be closer to the source of relief. Th e truly desperate volunteer on steam locomotive restoration projects. Model railroading has provided minimal relief

to others less committed. I do hope Iron Horse Disease will be the secondary contributing factor in my demise. I wish no less for you my friends.

In time, those affl icted will add Indian, Beluga Point and Portage as destinations where relief will only be a whiff away.

Best wishes for the new year! — Pat Durand

ENGINE 557 PARKED BY THE HISTORIC DEPOT

JANUARY 2012. (PHOTO BY DAVID BLAZEJEWSKI)

PAT DURAND

WYE OF IT: CUSTOMERS AND COMMUNITIES

HOLIDAY MESSAGE: CUSTOMER PERSPECTIVE Alaska Railroad received a holiday newsletter

from the patriarch of a family that traveled aboard a passenger train this summer. Jim Walton eloquent-ly expresses what many believe is most important — time spent and memories created. Undoubtedly Jim mailed his 4-page holiday newsletter to family near and far and to a circle of fast friends. But he also mailed a copy to the Alaska Railroad — in part to thank the railroad for helping to ensure an unforgettable celebration a marital milestone. And, perhaps to share a message of gratitude and hope — from his family to ours.

Th irty-nine members of Jim and Emma Lu Wal-ton’s extended family joined the Anchorage couple on a mid-June railroad excursion to celebrate their 60th wedding anniversary. For the joyous occa-sion, the family chartered the Denali Car, which is featured prominently in several of the two dozen photos included in Jim’s holiday correspondence. Emma Lou is a fi xture in most of those images for good reason. Jim’s bride of six decades passed away a few months after their anniversary and his holi-day post off ered a tribute to her memory and the time they spent together, as well as with children,

TOP: EMMA LU INSPECTS THE DENALI CAR SHORTLY BEFORE THE WALTONS

CHARTER THE RAILCAR.

RIGHT: JIM AND EMMA LU WALTON.

(PHOTOS COURTESY OF JIM WALTON)

“grands” and “great grands” as Jim refers to the youngest generations.

“We were very best friends. We liked each other. We were good to each other. We were good for each oth-er. I have nothing but good thoughts about our time together, no regrets,” wrote Jim. “Only wish she could have stuck around a little longer to help me enjoy the family and life. However, I am surely blessed with a large and loving family. I do not carry this burden alone.”

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14CROSSINGS: NEWS YOU CAN USE

FRA ISSUES NORTH POLE PROJECT FONSI On Friday, December 7, the Federal Railroad

Administration (FRA) issued a Finding of No Signifi cant Impact (FONSI) for the Environmen-tal Assessment (EA) of the North Pole Road/Rail Crossing Reduction project. Th is allows the project to move forward into the next phases — including land acquisition, fi nal design and permitting — as funding is identifi ed.

Th e project proposes to reduce the number of at-grade (same level) crossings along the Alaska Railroad (ARRC) Eielson Branch track from Rich-ardson Highway Milepost 9 to the Chena River Floodway. Th e FRA issued the FONSI after con-sidering the potential impacts of several alternatives in the EA and reviewing public comments solicited through public meetings and other outreach. Th e approved project would realign the track on the landward side of the Tanana River Flood Control Levee, close nine at-grade crossings through the City of North Pole, and relocate the existing cross-ing over the Richardson Highway, replacing it with a grade-separated crossing.

Th e EA was fi nanced by $1 million in Federal Highway Administration funds that were reallocat-ed by the Fairbanks Metropolitan Area Transporta-

tion System (FMATS) and the Alaska Department of Transportation & Public Facilities. Funding for next phases has not been identifi ed; however, the Alaska Railroad is seeking funding sources.

“Th is fi nding will allow us to work to secure funding for an important project not just for the people of North Pole and Interior Alaska but also for the state as a whole,” said Representative-Elect Doug Isaacson, who also served as North Pole mayor through the EA process, until October 2012. “Th is is one of several key projects that will further the economic development of the state of which the Alaska Railroad plays a signifi cant part. I look forward to working with my new colleagues in Juneau to provide the funding we’ll need to make the realignment a reality.”

Th e project represents the fi rst phase of a larger proposed project to realign the railroad tracks outside of the more urban areas of Fairbanks and North Pole.

Th e FONSI documents and attachments are available on the Alaska Railroad web site at www.AlaskaRailroad.com > Capital Projects > Fairbanks / Interior Projects.

CROSSINGS: NEWS YOU CAN USE

STATE RAIL PLAN UPDATE INITIAL MEETINGTh e Alaska Department of Transportation &

Public Facilities (ADOT&PF) recently moved the State Rail Plan update forward by selecting a prime contractor and holding an initial steering committee meeting November 28 at the Alaska Railroad headquarters.

As reported in All Aboard 2nd Qtr edition, ADOT&PF developed the original Alaska Rail Plan in 1985, when the state bought the Alaska Railroad from the federal government. ADOT&PF updated and amended the rail plan in 1990. Th e current update will try to answer questions such as: “What role does rail play in our state transportation system?” “How does rail freight aff ect our economy?” and “Where should expansion take place?”

Th e Steering Committee includes Alaska State Commissioners Dan Sullivan (Natural Resources), Susan Bell (Commerce), and Patrick Kemp (Transportation), along with railroad President/CEOs Christopher Aad-nesen (Alaska Railroad) and Eugene Hretzay (White Pass & Yukon). HDR Alaska is the prime contractor. Th e project manager is Murray Walsh with ADOT&PF.

Th e plan update will follow a process to include public comment and public meetings in Anchorage, Mat-Su, Fairbanks, Haines/Skagway and Nome. Th e Alaska Railroad will post meeting notices once meetings are scheduled.

Th e plan revision should be complete by year-end 2013.

ARRC BOARD MEMBERS

SUSAN BELL (COMMERCE

COMMISSIONER) AND

PATRICK KEMP (TRANS-

PORTATION COMMIS-

SIONER) ATTEND THE

STATE RAIL PLAN UPDATE

KICK-OFF MEETING ON

NOVEMBER 28.

(PHOTOS BY

STEPHENIE WHEELER)

WHITE PASS & YUKON RAIL-

ROAD CEO EUGENE HRETZAY.

ARRC CEO CHRIS AADNESEN

AND PROJECT MANAGER BRIAN

LINDAMOOD (RIGHT).

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15CROSSINGS: NEWS YOU CAN USE

RAILROAD SEEKS 2014 ART PRINT ARTIST Th e Alaska Railroad Corporation (ARRC) is

now soliciting submissions for its annual commem-orative artwork program. Th e artist selected will be commissioned to create artwork that is the basis for the 2014 Alaska Railroad offi cial print.

Due to a high volume of submissions in 2010, two artists were selected — one to complete the 2012 print artwork and one to complete the 2013 print artwork. Two artists may be selected this year, depending on the level of response to the call for artwork.

In order to be considered, artwork must include an Alaska Railroad theme. For this year, the Alaska Railroad is particularly interested in artwork that features either the Hurricane Turn Flag Stop service or the railroad’s role in the community of Nenana. Th e fl ag stop has long provided Alaskans with a unique service into some of the most remote areas along the rail belt, and Nenana was the site where President Warren G. Harding drove the golden spike to celebrate the railroad’s completion in 1923, nearly 90 years ago. While not mandatory, submis-sions that feature Hurricane Turn or Nenana will receive additional consideration this year.

ARRC retains all rights to the artwork. Once se-lected, the Alaska Railroad will produce 750 signed and numbered prints, 4,000 posters and several thousand lapel pins. Th e artist will receive $3,000, and will be given 10 artist proofs and 20 posters. In return, the artist must agree to participate in sale-and-signing events in Anchorage and in Fairbanks. Additional community locations may be added

depending on the print subject. Th e Alaska Railroad will pay for the artist’s travel expenses.

Artists may request access to Alaska Railroad property for artistic research by contacting ARRC Corporate Communications Offi cer Stephenie Wheeler at (907) 265-2671. A list-ing of previous ARRC art prints is available on the railroad’s web site at: http://www.alaskarailroad.com/corporate/Community/An-nualPrintContest.

Artist submissions should be presented as a single thumbnail sketch no larger than 11 x 17 inches. To provide some context, the sketch may be ac-companied by a few samples of the artist’s fi nished artwork. Submissions should be mailed or delivered in person to:

Liz Baker, Th ompson & Co. Public Relations 600 Barrow St., Suite 400, Anchorage 99501 Phone: (907) 561-4488 Drop off between 9 a.m. and 5 p.m. Monday

through Friday.

Deadline for submissions is Friday, Feb. 22, 2013. For more information, call ARRC Corporate Communications Offi cer Stephenie Wheeler at 265-2671.

SIDINGS: EMPLOYEE HAPPENINGS

UNITED WAY 2012 WRAPS UP SUCCESSFULLY Th e Alaska Railroad’s

Employee United Way Cam-paign wrapped up November 2, when employee names were drawn to win dozens of great prizes, ranging from airline miles to a fancy vase. Employees participating in the campaign were included in drawing as a thank you. Th is year, 170 employees pledged a total of $62,652. Th is is up more than $7,000 from last year’s campaign to-tal of $55,487 pledged from 158 employees.

FAR LEFT, CAMPAIGN

CO-CHAIR ROSEZETTA

PROCTOR KEEPS TRACK

OF PRIZES AND PRIZE

WINNERS.

LEFT: AS DAN FRERICH

READS A NAME THAT HE

PULLED FROM THE BOX,

CAMPAIGN CO-CHAIR

KEVIN BERGSRUD

PREPARES A PRIZE FOR

DELIVERY.

(PHOTOS BY

STEPHENIE WHEELER)

2013 ART PRINT

ARTWORK BY EAGLE

RIVER ARTIST SUSAN

WATKINS

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FOURTH QUARTER 2012

ALL ABOARDALL ABOARDNEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

Alaska Railroad Corporation

P.O. Box 107500

Anchorage, AK 99510-7500

www.AlaskaRailroad.com

Printed on recycled paper

Member &Suppporter

PRSRT STDU.S. POSTAGE

PAIDANCHORAGE, AKPERMIT NO. 845

GREAT SHOT! PHOTOS ON THE RAILALL ABOARD NAMES 2012 PHOTO CONTEST WINNER; SEEKING PHOTOS FOR 2013!

At the end of each calendar year, the All Aboard editor puts the names of all employees who submitted a photo during the year into a “hat” and draws one name to receive $200 in gift certifi cates. Engineering Technician Mike Grunwald is this year’s winner. Th e following employees submitted photos this year:

John Bennett, Avalanche Control (1st Qtr) David Blazejewski, Engine 557 arrival (1st Qtr and 4th Qtr);

Kashwitna gravel mine (2nd Qtr); Eva Creek wind turbines port unload and blade transport (2nd Qtr)

Dennis Bouwens, Diesel shop full of locomotives (4th Qtr)

Paul Fisher, locomotive in extreme Fair-banks cold (1st Qtr)

Cathy Frost, ERP training (4th Qtr) Mike Grunwald, southbound coal train

at Colorado Siding (3rd Qtr) Frank Keller, Northbound coal train

along Turnagain (4th Qtr) Bruce Pryke, Conductor course gradu-

ates (2nd Qtr) Christian Ryll, Eva Creek wind turbine

blade transport (2nd Qtr) Mike Schuh, ERP project team (1st Qtr) Tim Sullivan, Engine 557 transfer to

Wasilla (3rd Qtr)

Lloyd Tesch, Coal train moving through Grandview area (4th Qtr) Christy Terry, Louie Bencardino Award (1st Qtr) Tim Sullivan, C-Plan drill in Healy (4th Qtr) Adam Young, thermometer -53 in Fairbanks (1st Qtr)

To participate during 2013, employees should submit photos to Stephenie Wheeler via company mail or email digital photo fi les to [email protected]. If using a digital camera, be sure the camera is set to “fi ne” or “high resolution” to ensure your photo is suitable for print.

LLOYD TESCH SUBMITTED THIS WINTER PHOTO OF A COAL TRAIN MOVING THROUGH THE STEEP INCLINE IN

THE GRANDVIEW MOUNTAIN PASS AREA WHERE FREIGHT TRAINS USE DISTRIBUTED POWER.