third quarter 2010 newsletter for alaska railroad ... · chris aadnesen’s resume reveals a man...

16
ALL ABOARD ALL ABOARD THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES CROSSINGS: NEWS YOU CAN USE NEW RAILROAD CEO IS ON THE JOB CROSSINGS: NEWS YOU CAN USE HERBICIDE HELPS CONTROL VEGETATION e Alaska Railroad Corporation (ARRC) Board of Directors voted unani- mously on Sept. 10 to hire Christopher Aadnesen (pronounced ahd-neh-sen) as the new President and Chief Executive Officer (CEO). While Aadnesen did attend the tenant and board meetings Sept. 15-16 in Fairbanks, his first official day on the job was Sept 23. e follow- ing week he spent getting acquainted with the railroad route and people via a road trip to operational hubs north and south of Anchorage. “I’m very impressed with the hard work accomplished over the last several years to im- prove infrastructure challenges,” he said. “I am most favorably impressed with the dedicated and hard- working people who work at the Alaska Railroad.” e Alaska Railroad (ARRC) applied a glypho- sate-based herbicide along about 30 miles of the track between Seward and Indian and within the Seward Yard in late July. is followed a year-long Alaska Department of Environmental Conserva- tion (ADEC) permit process, and two months of subsequent legal actions. To recap, in summer 2009, the railroad submit- ted a permit application to use AquaMaster (a glyphosate-based herbicide approved for use in and around water). e permit process included two months of public comment and four public hearings. ADEC, the agency with the expertise to sort through dueling scientific opinion, reviewed ARRC’s proposal for nearly a year and determined that this limited use of herbicide is both prudent and safe. Aadnesen said it is important to see the Alaska Railroad infrastructure in detail and to meet and talk to as many em- ployees as possible first, before formulat- ing any goals. “I have found it is best to understand the physical and human features of a railroad before considering ways to improve it,” he said. Who is Chris Aadnesen? Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly owned, and located in America and abroad. He most recently worked for HNTB Corpora- tion, a nationwide consulting firm providing exper- After ADEC’s 2010 permit approval in April, a 30-day comment period followed in May. On June 1, environmental groups appealed to the ADEC commissioner and requested 1) an immediate stay to prevent spraying; and 2) an adjudicatory hearing to decide if ADEC improperly issued the permit. e commissioner denied the immediate stay, with the exception of spraying near a handful of private wells. Opponents, represented by the Trustees for Alaska, appealed and in late July, the Alaska Supreme Court declined to overturn the commis- sioner’s decision, allowing the railroad to proceed with herbicide application. e railroad contracted with a licensed and ex- perienced contractor to apply the herbicide in select areas where water bodies were further than 100 feet away, as stipulated by the permit. Spraying occurred 03 03 05 05 05 05 07 07 08 08 09 09 10 10 11 11 13 13 15 15 16 16 MILEPOSTS: SPOTLIGHT AWARDS CROSSINGS: BOND DEBT RATINGS CROSSINGS: TENANT TOWN HALL MEETINGS CROSSINGS: NEW WHITTIER BARGE STERN CROSSINGS: RAILROAD SEEKS ERP PROPOSALS CROSSINGS: TRIENNIAL REVIEW RESULTS SIDINGS: UNITED WAY CAMPAIGN CROSSINGS: VELOCITY PART 3: TRANSPORTATION CROSSINGS LAND LEASE FOR WHALE MOVIE SIDINGS: SILVER WON AT NATIONAL GAMES CROSSINGS: PHOTOS GIVEN TO MUSEUM INSIDE... CHRISTOPHER AADNESEN (See “Herbicide Help” on page 4) (See “New CEO” on page 3)

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Page 1: THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD ... · Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly

ALL ABOARDALL ABOARDTHIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

CROSSINGS: NEWS YOU CAN USE

NEW RAILROAD CEO IS ON THE JOB

CROSSINGS: NEWS YOU CAN USE

HERBICIDE HELPS CONTROL VEGETATION

Th e Alaska Railroad Corporation

(ARRC) Board of Directors voted unani-

mously on Sept. 10 to hire Christopher

Aadnesen (pronounced ahd-neh-sen) as

the new President and Chief Executive

Offi cer (CEO). While Aadnesen did

attend the tenant and board meetings

Sept. 15-16 in Fairbanks, his fi rst offi cial

day on the job was Sept 23. Th e follow-

ing week he spent getting acquainted

with the railroad route and people via a

road trip to operational hubs north and

south of Anchorage.

“I’m very impressed with the hard

work accomplished over the last several years to im-

prove infrastructure challenges,” he said. “I am most

favorably impressed with the dedicated and hard-

working people who work at the Alaska Railroad.”

Th e Alaska Railroad (ARRC) applied a glypho-

sate-based herbicide along about 30 miles of the

track between Seward and Indian and within the

Seward Yard in late July. Th is followed a year-long

Alaska Department of Environmental Conserva-

tion (ADEC) permit process, and two months of

subsequent legal actions.

To recap, in summer 2009, the railroad submit-

ted a permit application to use AquaMaster (a

glyphosate-based herbicide approved for use in

and around water). Th e permit process included

two months of public comment and four public

hearings. ADEC, the agency with the expertise to

sort through dueling scientifi c opinion, reviewed

ARRC’s proposal for nearly a year and determined

that this limited use of herbicide is both prudent

and safe.

Aadnesen said it is important to see the

Alaska Railroad infrastructure in detail

and to meet and talk to as many em-

ployees as possible fi rst, before formulat-

ing any goals. “I have found it is best

to understand the physical and human

features of a railroad before considering

ways to improve it,” he said.

Who is Chris Aadnesen? Chris Aadnesen’s resume reveals a

man who is well-versed in the ways of

railroads large and small, privately and

publicly owned, and located in America

and abroad.

He most recently worked for HNTB Corpora-

tion, a nationwide consulting fi rm providing exper-

After ADEC’s 2010 permit approval in April, a

30-day comment period followed in May. On June

1, environmental groups appealed to the ADEC

commissioner and requested 1) an immediate stay

to prevent spraying; and 2) an adjudicatory hearing

to decide if ADEC improperly issued the permit.

Th e commissioner denied the immediate stay, with

the exception of spraying near a handful of private

wells. Opponents, represented by the Trustees

for Alaska, appealed and in late July, the Alaska

Supreme Court declined to overturn the commis-

sioner’s decision, allowing the railroad to proceed

with herbicide application.

Th e railroad contracted with a licensed and ex-

perienced contractor to apply the herbicide in select

areas where water bodies were further than 100 feet

away, as stipulated by the permit. Spraying occurred

0303

0505

0505

0707

0808

0909

1010

1111

1313

1515

1616

MILEPOSTS:SPOTLIGHT AWARDS

CROSSINGS:BOND DEBT RATINGS

CROSSINGS:TENANT TOWN HALL MEETINGS

CROSSINGS:NEW WHITTIER BARGE STERN

CROSSINGS:RAILROAD SEEKS ERP PROPOSALS

CROSSINGS:TRIENNIAL REVIEW RESULTS

SIDINGS:UNITED WAY CAMPAIGN

CROSSINGS:VELOCITY PART 3: TRANSPORTATION

CROSSINGS

LAND LEASE FOR WHALE MOVIE

SIDINGS:SILVER WON AT NATIONAL GAMES

CROSSINGS:PHOTOS GIVEN TO MUSEUM

INSIDE...

CHRISTOPHER AADNESEN

(See “Herbicide Help” on page 4)

(See “New CEO” on page 3)

Page 2: THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD ... · Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly

ALL ABOARDALL ABOARD

3RD QTR 2010

MILEPOSTS

SERVICE AWARDS: JULY - SEPTEMBER 20102 1 Year

Joseph Carlton . . . . . . . . . . . . Telecommunications

Earl Cole . . . . . . . . . . . . . . . . . . . . . Transportation

Jacob Craig . . . . . . . . . . . . . . . Maintenance of Way

Chad Garner . . . . . . . . . . . . . . . . . . Transportation

Lindsay Kucera . . . . . . . . . . . . . . Passenger Services

Mary Susan Lee. . . . . . . . . . . . . . . . . . . . . . . .Legal

Josephine Ramos . . . . . . . . . . Passenger Operations

Alicia Reando . . . . . . . . . . . . . . . Passenger Services

Timothy Vertrees. . . . . . . . . . . . . . . . . . Mechanical

5 Years Stormy Antonovich . . . . . . . . . Project Management

Richard Burgener . . . . . . . . . Passenger Operations

Yuliana Diryakhova . . . . . . . . . Supply Management

Peter Firmin . . . . . . . . . . . . . . . . . . . . . Mechanical

Terry Hunter . . . . . . . . . . . . . . . . . . . . . Mechanical

Kyle Jacobs . . . . . . . . . . . . . . . Maintenance of Way

Allen Kinne. . . . . . . . . . . . . . . . . . . . . . Mechanical

Forrest Long . . . . . . . . . . . . . . . . . . Transportation

David Macklin . . . . . . . . . . . . . . . . . . . Mechanical

Cynthia Matthias . . . . . . . . . . . . . . . . . Accounting

Bradley Porter III . . . . . . . . . . Maintenance of Way

Craig Stoker . . . . . . . . . . . . . . . . . . . . . Mechanical

Th omas Wagner . . . . . . . . . . . Maintenance of Way

Brian Webb . . . . . . . . . . . . . . . . . . . . . . Mechanical

Steven Wenk (2nd Qtr*) . . . . . . . . . Transportation

Benjamin Worley . . . . . . . . . . . . . . . . . Mechanical

10 Years Douglas Behan . . . . . . . . . . . . . . . . . . . . . Facilities

Travis Caraveau . . . . . . . . . . . . Maintenance of Way

John Elson. . . . . . . . . . . . . . . . Maintenance of Way

Richie Greenfi eld. . . . . . . . . . . . . . . . . . . . Facilities

Dan Ottenbreit . . . . . . . . . . . Engineering Services

Michael Reed . . . . . . . . . . . . . . . . . . . . Mechanical

15 Years Kevin Bergsrud . . . . . . . . . . . . . . . . Transportation

Scott Brown . . . . . . . . . . . . . . Maintenance of Way

Archie Card. . . . . . . . . . . . . . . . . . . . . . Mechanical

Katrina Martolano. . . . . . . . . . . . . . Transportation

Kathleen Schwalbe . . . . . . . . . . . . . . . . Accounting

20 Years Fred Burrell (2nd Qtr*) . . . . . . . . . . Transportation

25 Years Bob Gonzalez . . . . . . . . . . . . . Supply Management

Shawnessy Hughes . . Grant/Project Administration

Kris Kinney. . . . . . . . . . . . . . . Maintenance of Way

Brian LaForge . . . . . . . . . . . . . . . . . . . . . . . . Signal

Lloyd Th ompson. . . . . . . . . . . . . . . . . . Mechanical

30 Years Dave Kocher . . Technology & Telecommunications

35 Years Grant Gerhart . . . . . . . . . . . . . Maintenance of Way

Michael Maillet . . . . . . . . . . . . Maintenance of Way

Warren Redfearn . . . . . . . . . . . . . . . Transportation

40 Years Eugene Owens (2nd Qtr*) . . . . . . . Transportation

James Trueblood . . . . . . . . . . . . . . . . . . Mechanical

*Awards from April-May-June not noted last issue.

MILEPOSTS

HOME FRONT: BIRTHS JUNE - SEPTEMBER Conductor/Brakeman/Fireman Matthew Bax-

ter and wife Megan welcomed Madeline Grace

on June 16.

Track Repairer Patrick Lowe and wife Tammy

welcomed Caleb Patrick on June 21.

Track Repairer Matt Morrison and wife Mi-

chelle welcomed Preston Alexander on July 17.

MILEPOSTS

NEW HIRES: JULY - AUGUST - SEPTEMBERChristopher Aadnesen . . . . . . . . . . . . . . . Executive

John Bennett . . . . . . . . . . . . . . . . Police & Security

Emily DaLuz. . . . . . . . . . . . . . . . . . . . . Real Estate

Dominic Dionne. . . . . . . . . . Passenger Operations

Forest Knutsen . . . . . . . . . . . . . . . . . . . . . . . Signal

Odilio Kong . . . . . . . . . . . . . Passenger Operations

Matthew Ostrander. . . . . . . . Passenger Operations

Chad Solberg. . . . . . . . . . . . . . Information Services

Timothy Tullis. . . . . . . . . . . . . Information Services

Fredrick Wright. . . . . . . . . . . . . . . . . . . Mechanical

Conductor/Brakeman/Fireman Forrest Long

and wife Kristie welcomed daughter Brook

Ellen on July 19.

Bridge Leader Jason Hacker and wife Kathryn

welcomed Henry Albert on August 21.

Carman Joseph Budrecki III and wife Julie

welcomed Josie Paige on September 1.

Page 3: THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD ... · Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly

ALL ABOARDALL ABOARD

3RD QTR 2010

3MILEPOSTS

SPOTLIGHT AWARDS: AUGUST - SEPTEMBER Carman Russell Ivey potentially saved lives when

performing a pre-departure air test on the north-

bound Princess Denali Express passenger train on

July 3. When he noticed smoke and fl ames under

the engine/generator compartment of a Princess

coach, he did not hesitate to call the yard master

and declare a ground emergency. He helped extin-

guish the fi re even before the Anchorage Fire De-

partment arrived. Ivey’s timely response prevented

millions of dollars of damage to the Princess coach

and Alaska Railroad property, and helped to avoid a

catastrophe potentially impacting dozens of lives.

Warehouse Worker / Forklift Operator Robert

Walker achieved an important educational mile-

stone this year by earning a bachelor of business

administration degree from the University of Alaska

Anchorage. Th e courses he completed include skills

and knowledge that can be directly applied to daily

and long-term management of the Alaska Railroad’s

warehouse and its inventory. Walker has gleaned a

better understanding of how the warehouse operates

and the impact it has on the corporation. In eff ect,

his college studies have made Walker a more valu-

able member of the railroad team.

NEW CEO IS ON THE JOB

tise in fi nancing, engineering and design, construc-

tion, business operations, government relations and

community outreach. From offi ces in Austin, Texas

(2007-2010), Aadnesen led national freight rail ser-

vices for clients including all seven of the U.S. Class

One railroads along with several larger regional rail-

roads. One focus was positive train control (PTC),

which off ers experience that will come in handy as

the Alaska Railroad pursues its own PTC (Colli-

sion Avoidance) program. Aadnesen also worked for

HNTB from 2003-2004 as senior rail advisor for

the Trans-Texas Corridors Projects.

In between stints at HNTB, Aadnesen served

three years (2004-2007) as the CEO, managing

director and chairman of the management board for

Estonian Railways (ER). Like ARRC, ER provides

both passenger and freight services, is located in a

similar climate (same latitude as Anchorage) and

is owned by a government (privatized in 2001,

Estonian Railways was sold back to the country in a

year-long process overseen by Aadnesen).

In 1996, Aadnesen founded Capitol City

Group, a consulting fi rm in the Austin area. Ac-

tively participating in the company through 2009,

Aadnesen specialized in rail transportation and

logistics, management, strategic and business plan-

ning, and quality systems development.

From 1996 to 2000, Aadnesen held several ex-

ecutive positions within the Texas Mexican Railway

and TFM (the fi rst privatized Class One section of

the old Mexican National Railway), including chief

operating offi cer and executive vice president (VP).

He focused on improved safety, cost reduction and

operations effi ciency, customer service, and asset

maintenance and modernization. Aadnesen worked

directly to improve labor agreements and imple-

ment employee training and education programs.

Aadnesen was employed by the Union Pacifi c

(UP) Railroad, based in Nebraska, for more than

two decades (1973-1995), working with nearly ev-

ery discipline or department involved with railroad

management. He held a variety of management

positions with Western Pacifi c Railroad before it

was acquired by UP in 1982. Th en Aadnesen was

progressively promoted in positions overseeing

UP personnel services and employee development

programs, leading fi eld operations, and directing

transportation services.

Aadnesen established a solid career foundation

in higher education. He attended Brown University

in Rhode Island two years before heading west to

complete a bachelor’s degree in English and master

of business administration degree from the Univer-

sity of Utah. Subsequently, he completed two execu-

tive management programs, one from the Univer-

sity of Pittsburgh in Pennsylvania (1984) and one

from Harvard University in Massachusetts (1990).

Wherever Aadnesen has relocated, he has be-

come involved in local commerce and community

organizations. For example, within his previous

community (Georgetown, Texas) Aadnesen chaired

the local planning and zoning commission, served

on a local theatre board and wrote editorial articles

for the local newspaper. He is a past chairman and

remains a director on the board of the Georgetown

Rail Equipment Company. While in Europe, Aad-

nesen provided industry expertise as a member of

the board of the Community of European Railway

and Infrastructure Companies in Belgium (the only

non-European to do so), and was VP of Estonia’s

American Chamber of Commerce.

Aadnesen has grown children, and his wife Betty

will be joining him to reside in Anchorage. He

enjoys fl y fi shing, hunting, exploring historical sites

and playing guitar.

(continued from page 1)

I’m very im-pressed with the hard work accomplished over the last several years to improve infrastructure challenges. I am most favorably im-pressed with the dedicated and hard-working peo-ple who work at the Alaska Railroad.

PRESIDENT & CEOCHRIS AADNESEN

Page 4: THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD ... · Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly

ALL ABOARDALL ABOARD

3RD QTR 2010

4 (continued from page 1)

THIS PHOTO WAS TAKEN

ABOUT A MONTH AFTER

THE HERBICIDE WAS

SPRAYED ON THE TRACKS

JUST NORTH OF SEWARD,

ILLLUSTRATING THE

EFFECTIVE VEGETATION

CONTROL BETWEEN THE

RAILS AND TIES.

HERBICIDE HELP WITH VEGETATION

of the ADEC makes the fi nal agency decision. Th e

Trustees or the railroad can then appeal the decision

through the court system.

In the meantime, ADEC continues to monitor

the railroad’s use of AquaMaster via the currently-

approved permit. A month after the herbicide

was applied, Karin Hendrickson from the ADEC

Pesticide Program conducted a post-application

evaluation in and around Seward. “Th ere was a

clear line of demarcation along the edge of the spray

area,” noted Hendrickson. “Most vegetation within

the spray area was dead or browning, and vegetation

outside of the sprayed areas was green and showed

no signs of pesticide impact. In areas outside of the

spray area, woody plants that had been cut down

showed signs of re-growth. “

Th is observation underscores initial fi ndings of

an ongoing University of Alaska Fairbanks study on

herbicide use along the Alaska Railroad, notes En-

vironmental Operations Manager Matt Kelzenberg.

“Th e study has demonstrated that AquaMaster does

not migrate or linger in the soil.”

Th e two-year study fi rst focused on the rail-

road’s south end, and is now researching herbicide

behavior on the northern end. “Th e bulk of the

north end sampling is done with the last round in

early October. Th e lab testing is underway, but this

is a slow process,” said Kelzenberg. “We anticipate a

fi nal report on the south end by the end of this year;

and we hope to have some preliminary data from

the north end sampling and analysis soon.”

When north end study data is available, it will

be included in future herbicide permit applications.

In fact, Kelzenberg is currently preparing a permit

application for the Anchorage Yard and another

for the Fairbanks Yard, Healy Yard and the Eielson

branch. Th ese may be submitted to ADEC before

the end of the year.

July 25-27 when winds were calm and the rain had

stopped. Track employees were notifi ed with fl yers

posted at section houses, and through daily work

briefi ngs.

“Th e herbicide did an excellent job in getting

rid of weeds between the rails and ties, allowing

inspectors to easily see the track,” said Superinten-

dent of Maintenance of Way (MOW) Lloyd Tesch.

“From the standpoint of safe train operations, this

helped a lot.”

Even so, Tesch noted that many FRA viola-

tions have been issued due to vegetation within

the “toe path” where train and maintenance crews

walk alongside the track. Because the permit allows

herbicide only within the 8-foot tie-end-to-tie-end

corridor, MOW crews must still manually and

mechanically clear vegetation along the track bed

shoulder areas.

Th e timing of the 2010 herbicide application

was not ideal, since vegetation had grown consid-

erably during June and July, and conditions were

damp following days of rain. In 2011, the railroad

plans to spray earlier in the season and hopefully

following a relative dry spell. Yet the ability to use

the permit in 2011 is still unsettled because legal

actions are pending based on the opponents’ other

request for a hearing on whether the permit should

have been issued.

Th at request was granted in part.

Some of the issues presented by the environ-

mental groups are legal questions and will be

decided on the existing record. Briefs will be fi led

on those issues over the winter. In addition, an

adjudicatory hearing is set for April 5-15, 2011, on

two major factual questions underlying the permit:

1) Does herbicide application near water wells pose

an unreasonable adverse eff ect?

2) Does applying herbicides under the conditions

set in the permit pose a risk of adverse eff ect

and would that eff ect be

unreasonable?

Depending on the

answers, the permit may

be revoked or the per-

mit may be re-affi rmed.

Additional stipulations

could also be imposed

on the permit. Like the

immediate stay, the ad-

judicatory hearing is an

administration action in

that the commissioner

CONTRACTED HERBICIDE APPLICATION EXPERTS SPRAY AQUA-

MASTER WITHIN THE SEWARD YARD IN LATE JULY.

Page 5: THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD ... · Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly

ALL ABOARDALL ABOARD

3RD QTR 2010

5CROSSINGS: NEWS YOU CAN USE

BOND RATER REAFFIRMS “A” BOND RATING

CROSSINGS: NEWS YOU CAN USE

RAILROAD MEETS WITH LEASEHOLDERS

By Bill O’Leary, Chief Finance Offi cer

In its inaugural entry into the public debt

markets, the Alaska Railroad issued $165 million in

capital grant receipt bonds in 2006 and 2007. Th e

proceeds from these debt issuances were to be used

primarily to accelerate the corporation’s track re-

habilitation program, eff ectively rebuilding the rail

line from Anchorage to Fairbanks in a seven-year

period. Other uses of the funds include purchases

of passenger coaches, daylighting Moody Tunnel,

and the ongoing Collision Avoidance System (posi-

tive train control) project. Th e sources of repayment

of the bonds are the Federal Transit Administration

formula funds that the Alaska Railroad receives an-

nually in support of its passenger service.

Th e Alaska Railroad Real Estate Department

organized two Tenant Town Hall lunch meetings

in Anchorage and Fairbanks in mid-September to

provide a forum for face-to-face dialogue on issues

important to real estate customers. Members of

the ARRC Board Real Estate Committee (John

Binkley, Jack Burton and Jon Cook) and of the Real

Estate & Facilities Department were on-hand to

greet customers and answer their questions. About

40 people attended the Fairbanks event and about

50 attended the Anchorage event.

As noted at the events, real estate customers are

very important to the Alaska Railroad. During eco-

nomic downturns, real estate’s stable net income is

even more crucial to remaining self-suffi cient. Lease

revenues also help to fund capital projects that don’t

qualify for federal funding.

“Not surprisingly, many of our leaseholders

were interested in HB 357, the land sale law that

passed the legislature last session,” said VP Real Es-

tate Jim Kubitz, who moderated both forums. “Th e

law has raised expectations for the sale of railroad

land, and we spent quite a bit of time explaining

what the law means to our leaseholders. We ex-

plained that the process for land sale or transfer re-

mains relatively the same in that the railroad board

and legislature must still approve a proposed land

sale. Our board is currently working on a policy to

interpret the law’s language and to clarify land sale

criteria.” Railroad staff and board members present

assured both gatherings that they and the public at

large would have ample notice and opportunity to

comment on the board policy as it is developed.

When the debt was issued, the bonds received

excellent ratings from the three major bond rating

agencies. In late August, one of these agencies, Fitch

Ratings, met with the Alaska Railroad Finance

Department staff as part of its ongoing monitoring

of the debt. Discussions with Fitch were wide-

ranging, covering the key credit terms of the bonds,

the status of the projects funded, historical and pro-

jected grant funding, the Alaskan economy, and the

Alaska Railroad’s fi nancial condition, among other

items. Th e time with Fitch was well-spent, however,

as the rating agency reaffi rmed its “A” rating on the

ARRC debt.

ARRC anticipates spending the remaining

bond proceeds by 2012, when the accelerated track

program is completed.

Other topics included the cap and fl oor on

lease rents. Every fi ve years, a lease undergoes a new

appraisal to determine current market value of the

land. If land is appraised at a higher value, which

is typically the case, the leaseholder’s rent pay-

ment is adjusted up. Often land values can jump

signifi cantly over fi ve years, but a 35% cap limits

increases to no more than 35% higher than the

previous rent. Th is protects the leaseholder from

unexpectedly higher costs. While land values have

steadily increased over the past few decades, the past

few years have seen a leveling off and even a dip in

some geographic areas. Th e railroad recently passed

a board policy that allows lease rents to go down by

as much as 35% from the prior amount. Previously,

there was no provision to lower lease rents, even if

land values declined.

Leaseholders also discussed land appraiser selec-

tion process, responsibility for lease land improve-

ments such as sewer and water service, municipal

tax assessments, lease contract insurance and

immunity provisions, tenant representation on the

ARRC board of directors, and the appraisal appeal

process.

BILL O’LEARY

JIM KUBITZ

...many of our leaseholders were interested in HB357, the land sale law that passed the legislature last session.

Page 6: THIRD QUARTER 2010 NEWSLETTER FOR ALASKA RAILROAD ... · Chris Aadnesen’s resume reveals a man who is well-versed in the ways of railroads large and small, privately and publicly

ALL ABOARDALL ABOARD

3RD QTR 2010

6

DRIVING RAIN DIDN’T

KEEP GOVERNMENT HILL

ELEMENTARY SCHOOL

STUDENTS AND FAMILY

FROM ATTENDING THE

AUGUST 16 BACK-TO-

SCHOOL PICNIC HOSTED

BY THE RAILROAD AS

PART OF OUR SCHOOL

BUSINESS PARTNERSHIP.

ABOUT 750 HOTDOGS

WERE SERVED.

(PHOTOS BY STEPHENIE

WHEELER)

SIDINGS: EMPLOYEE HAPPENINGS

RAILROAD HOSTS GOVERNMENT HILL PICNIC

CROSSINGS: NEWS YOU CAN USE

RAILROAD TO SWITCH INSURANCE CARRIERTh e Alaska Railroad has selected Premera Blue

Cross Blue Shield of Alaska to take over employee

health plan administration. Aetna has been provid-

ing these services for 25 years.

Th e employees benefi t plan will stay the same.

However, there will be changes for all participants

with new forms, new ID cards, etc. Th e HR De-

partment will be working with Premera and with

Aetna to communicate changes to employees and to

assist employees and health care providers through

the transition.

In late July, the Railroad requested proposals

for health plan administration as well as servicing

for our Flexible Benefi ts Plans, COBRA and retiree

medical enrollment. Four companies submitted

proposals by the August 25 deadline. An ARRC

committee evaluated the proposals and selected

Premera Blue Cross Blue Shield of Alaska. Premera’s

administration of the railroad’s self-insured plan is

expected to yield savings in administrative costs,

while providing local (Anchorage) customer service

and a large network of preferred Alaska providers

with no balance billing.

A contract still needs to be fi nalized with Pre-

mera, but assuming there are no problems in that

regard, the railroad’s Human Resources, Informa-

tion Services and Accounting departments will start

a very intense three-month implementation. Th e

goal is to have Premera in place to service the plan

by the beginning of 2011.

A move to a new plan administrator will be

a big change. “While we appreciate the eff orts

of Aetna over that time, we are excited about the

opportunity to work with Premera,” said Pam

Barbeau, Benefi ts and Records Manager, in a recent

employee memo. Employees should keep an eye

out for more details in future correspondence and

newsletter articles.

Picnic Volunteers Benjamin Arhens

Bruce Carr

Louise Delano

(retired)

Doug Engebretson

Don Freestone

Jackie Frazier

Gary Haas

Dwight Harris

Phyllis Johnson

Wendy Lindskoog

Barbara & Robert

Kaleopaa

Mark Mitchell

Rossetta Proctor

Pat Shake

Keri Meszaros

Sandy Wanner

Stephenie Wheeler

PHYLLIS JOHNSON MANNED THE HOTDOG SERVING STATION.

DWIGHT HARRIS & ROSEZETTA PROCTOR. ROBERT KALEOPAA, BRUCE CARR, LOUISE DELANO & GARY HAAS.

DOUG ENGEBRETSON & ED HILLS.

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ALL ABOARDALL ABOARD

3RD QTR 2010

CROSSINGS: NEWS YOU CAN USE

WHITTIER BARGE DOCK RAMP IS REPLACEDTh e ramp for barge discharge of the Whittier

Barge Dock (slip) was recently replaced thanks to

a joint project between the Alaska Railroad and

Lynden. Th e front ramp was swapped for a ver-

sion that facilitates forklift “pass-pass” unloading.

Th is means a barge can now unload from the side

and front, speeding the discharge process. Th ose

familiar with the Whittier landscape will also notice

the absence of two towers that had stood on either

side of the slip since 1972. Th e towers employed

counterweights to raise and lower the barge slip to

correspond with the tide. Th ese were replaced by

modern hydraulic lifts.

Project contractor West Construction did an

admirable job working around the dock operating

schedule, said Jon Garner, Superintendent South

Terminals. Project construction stopped during

weekly Seattle and the 10-day Canadian barge

services, as well as during Whittier’s inclement

weather.

West Construction activity also boosted the

Whittier economy, noted Project Manager Bob

Hanson. For example, West used local subcontrac-

tors, including Passage Canal Marine to weld on the

apron and abutment, and Shoreside Petroleum to

fuel on-site generators and equipment. In addition,

local dining and lodging establishments served the

dozen or so West Construction workers throughout

the summer.

Barge slip modifi cations were completed in

early August and Garner photographed the fi rst

container fork-lifted off the stern on August 11.

Modernization has made the barge slip operation

safer and more effi cient, benefi ting the railroad,

barge business partners and freight customers,” said

Ted Woodward, Manager Marine Operations –

Whittier.

Garner explained how the new improvements

work. When the weekly barge docks, the bottom

half may be fi lled with about 50 freight-fi lled rail-

cars. Th ese are stored on eight short tracks etched

into the barge surface. Railcars disembark from two

short tracks at a time. Th e dock’s new hydraulic

lifts shift the barge sideways to line up the next two

tracks, repeating the process twice more to empty

all eight tracks. Once the railcars are staged in the

Whittier yard, the forklifts go to work unloading

containers, trailers and other material and equip-

ment from the dock’s side and front ramps.

In preparation for the stern replacement, the

barge dock ramp track was extended and a new end

ramp was constructructed as well as other track/

ground work accomplished in 2009 and 2010 at

a cost of $870,000, funded by the railroad. Th e

estimated $4 million cost of the dock stern replace-

ment is shared between the railroad and Lynden.

7

WHITTIER BARGE DOCK IN APRIL 2010. (PHOTO BY TED WOODWARD)

A BARGE DOCKS AT THE NEWLY UPGRADED WHITTIER SLIP. THE TOWERS

HAVE BEEN REPLACED BY SMALLER HYDRAULIC LIFTS. (STEPHENIE WHEELER)

HYDRAULIC LIFT. (STEPHENIE WHEELER)

THE FIRST TRAILER ROLLS OFF THE DOCK’S

NEW STERN. (PHOTO BY JON GARNER)

THE OLD BARGE LIFT

CONTROL TOWERS

ARE DISMANTLED TO

MAKE ROOM FOR NEW

HYDRAULIC LIFTS.

(PHOTO COURTESY OF

TED WOODWARD)

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ALL ABOARDALL ABOARD

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CROSSINGS: NEWS YOU CAN USE

RAILROAD SEEKS INTEGRATED INFO SYSTEMS

8 Th e Alaska Railroad Corporation (ARRC) is

soliciting proposals for an Enterprise Resource

Planning (ERP) Software, Implementation Services,

and Maintenance and Support. ERP is an informa-

tion services system that combines all the electronic

processing functions of the business into a single

product, eliminating the need to transfer data from

one product to another.

Many of the Alaska Railroad’s current sys-

tems were installed in the early 1990s and are not

Windows-based, which results in high training costs

and subpar functionality. Additionally, ARRC has

multiple systems that are connected to each other

by external integration. For example, the Axiom

project accounting system accesses data from the

Infi nium General Ledger, but is not really part of

it – the data is manually sent to Axiom each day.

Likewise, the purchase order-to-accounts payable

process is on two entirely diff erent systems. Th is

leads to problems. Th e confi guration of each system

has to match the other or data will be ignored.

Annual software upgrades are very diffi cult, since

changes on one system could interfere with the

operation of the other system.

An enterprise-wide, fully integrated ERP

system would simplify upgrades, increase reliabil-

ity, and streamline many processes that currently

bridge multiple systems. Specifi cally, ARRC seeks

to automate and integrate the following business

functions: Accounts Payable, Accounts Receivable,

Bank Reconcilement/Cash Reporting, Capital and

Operational Budgeting, Contract Management, De-

cision Support, Equipment Costing and Allocation,

Fixed Assets, General Ledger, Grant Management,

Human Resource Management, Inventory Man-

agement, Payroll, Project Accounting, Purchasing,

Report Writing, and Time Collection.

In July, ARRC’s partner in developing the re-

quest for proposal, Pacifi c Technologies Incorporat-

ed (PTI), provided an estimate to the ARRC Board

of Directors of approximately $7.4 million. Th e

RFP has been advertised and responses from poten-

tial vendors were due by the end of September.

Th e ERP process is led by a Steering Committee

that is chaired by Eileen Reilly, VP of Information,

Technology and Telecommunications. Th e commit-

tee consists of:

Doug Engebretson, Chief Mechanical Offi cer

Robert Gonzales, Purchasing Director

David Greenhalgh, Director, Passenger Opera-

tions and Transportation Services

Shawnessy Hughes, Director of Grants and

Project Administration

Susan Lindemuth, Director of Human

Resources

Michelle Maddox, Assistant Controller

Bill O’Leary, VP of Finance

Mark Peterburs, Director of Project

Management

Wendy Richerson, Controller

Jennifer Tesch, Budget Analyst, Operations

Drew Dekreon is the non-voting project man-

ager, responsible for keeping the project on-track.

Th e process for creating the RFP began with

interviewing all railroad stakeholders to determine

what they felt was needed or missing. Next, focus

groups comprised of key users from across the

corporation met in work sessions to analyze ARRC’s

business processes and to highlight the problems in

the current system. Th e goal was to create a vision

of what ARRC needs that is grounded in what

ARRC must do every day. Finally, “demonstration

scripts” were developed that off er a blueprint for

potential vendor meetings later. Th ese scripts are

designed to force potential vendors to show exactly

how their product will answer ARRC’s specifi c

needs.

Now that RFP responses are in, next steps

include:

1. An IT Review Committee will screen each pro-

posal to ensure it meets the minimum technical

standards.

2. PTI will be simultaneously giving a score to

each proposal based on responses to about 300

requirements specifi ed in the RFP. Scores will

assist the Evaluation Team in making a decision.

3. Th e Evaluation Team will review all proposals

that meet the minimum qualifi cations and settle

on three or four for closer examination. Cost is

not a factor at this stage.

4. Finalists will be invited to Anchorage in January

2011 to spend three days demonstrating their

product, explaining their plan for implementing

it, and answering any Evaluation Team ques-

tions.

5. A winner will be chosen by the end of January,

with negotiations to follow. If all goes well, the

18-month process of installing the new ERP

system will begin in April 2011.

EILEEN REILLY

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ALL ABOARDALL ABOARD

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9CROSSINGS: NEWS YOU CAN USE

ARRC EXCELS IN FTA TRIENNIAL REVIEWTh e Federal Transit Administration (FTA)

recently completed a Triennial Review of the Alaska

Railroad’s stewardship of FTA funds. Project and

Grant Administration Director Shawnessy Hughes

(SH) explained the results and their importance.

What is the Triennial Review?

SH: FTA inspectors physically visit the railroad

to confi rm we comply with FTA regulations that

govern procurement, equipment and facility main-

tenance, public information, regulatory compliance

and environmental mandates. It’s a pretty com-

prehensive look at whether we meet requirements

that apply to the development, construction, and

operation of capital improvements funded by FTA.

Th e Federal Railroad Administration (FRA) con-

ducts annual and periodic operations and rail safety

inspections, but FRA relies on the FTA review

to determine stewardship of FRA-funded capital

projects. So, the Triennial Review focuses on capital

improvements funded by FTA and FRA.

How many federal agency reviews have we had?

SH: Th e FTA Triennial Review takes place every

three years. Th e 2010 review marks our fourth, with

the fi rst one in 2001. FTA also conducts sub-section

reviews when a specifi c focus is needed. For exam-

ple, when ARRC received tens of millions of dollars

in “New Start” money in 2002/2003 to fund the

South Anchorage Double Track and Anchorage-to-

Wasilla Rail Realignment, this triggered sub-reviews

for Project Management Oversight and Financial

Management. In 2008, a Procurement Oversight

review was conducted in light of previous triennial

review fi ndings.

How did we do this time?

SH: We essentially got an A-plus on our grade.

FTA Inspector David Nordstrom participated in

our fi rst Triennial Review in 2001, and he was

back for the 2010 review. Mr. Nordstrom was so

pleased with everyone he met at the railroad. He

appreciated our candor, our eff orts to improve, and

especially noted the fact that everyone he spoke to

was aware of how our funding works and what proj-

ect improvements have been funded by FTA. He

recognized that we have been proactive in address-

ing defi ciencies, and those eff orts were certainly

refl ected in a positive review.

We’ve improved steadily over the years. In fact,

FTA has been so impressed with our Grant Admin-

istration procedures that these have been shared

with other regions and grantees nationwide.

How important is the Triennial Review?

SH: Th e Triennial Review is extremely impor-

tant, because it links directly to our FTA funding.

Last year alone, ARRC received nearly $37 million

in FTA formula funds (along with our required

match, this provided $40 million in funding for

capital projects). Th ese funds are allocated as a re-

sult of passenger ridership and passenger equipment

miles operated. As a participant in FTA formula

funds, ARRC stands to benefi t from millions of

dollars allocated each year for the foreseeable future,

provided that we continue to show we are good

stewards of the money. Performing poorly on a

Triennial Review would likely put future FTA fund-

ing at risk, and might also result in additional FTA

oversight. On the other hand, demonstrating that

we are good caretakers of federal funds supports our

receiving these funds. Due to the exceptional eff orts

of Railroaders company-wide, the results of this

2010 FTA Triennial Review help ensure the ARRC

will continue to receive FTA formula funding as

well as maintain positive and benefi cial relationships

with our funding agencies.

To what do you attribute our success?

SH: After the last Triennial Review in 2007,

[former President/CEO] Pat Gamble established

a “no-repeat fi nding” goal that really spurred the

company as a whole to look harder at ways to

fi x discrepancies. We began performing internal

reviews at that time. Two years ago, we instituted

internal audits that have resulted in major changes

to the way we document and do business. Th ese

eff orts have paid off big time.

Step one of the review is an FTA questionnaire

covering all of the items inspectors plan to evaluate

during the site visit. We hired a contractor to help

gather the answers and documentation to ad-

equately respond to the questionnaire. When FTA

received the completed questionnaire, our responses

were so complete that the site visit was shortened

from three to two days. What a great way to start

out a review!

Who helped with the preparation?

SH: Th ere were many railroaders company-wide

who helped ARRC make the grade, and I am grate-

ful to everyone for their eff orts. Of note:

Labor and Employment Senior Attorney Ann

Courtney and Deputy General Counsel Bill Hup-

prich were key, because their legal expertise crosses

so many aspects of how we do business. Th ey

looked at Buy American and lobbying practices.

Ann ensured compliance with Disadvantaged

Business Enterprise (DBE) and Title VI Non-Dis-

(See “Triennial Review” on page 10)

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ALL ABOARDALL ABOARD

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10We’ve relied heavily on Grant Management Of-

fi cer Kathleen Rogge for excellent technical grant-

writing, research and grant management. Grant

Program Analysts Earlene Aquino, Edie House, Bar-

bara Kaleopaa, and Lynda Stephens manage grants

on a day-to-day basis, keeping documentation to

ensure project controls.

Mark Peterburs and all of his project managers

really know their stuff when it comes to funding

sources and associated requirements. Th eir sup-

port is crucial. After capital assets are purchased or

constructed, we must properly maintain our equip-

ment and facilities. Everyone in Mechanical (heavy

equipment, locomotive and railcar maintenance), in

Facilities and in Vehicle Management are diligent in

protecting our assets.

Bob Gonzalez and his procurement group have

to be on the top of the list. Procurement has done

a phenomenal job in overhauling processes and

procedures to meet federal funding requirements.

Th rough participation on groups like the Joint

Terrorism Task Force, Chief Special Agent Dan

Frerich works with other agencies on transportation

security issues. Port security expert Tim Allen has

helped to ensure transportation security mandates

are met.

Mark Mitchell developed an exceptional system

safety program plan (SSPP), a one-stop-shopping

document that details and relates the railroad’s

many safety programs. Development of this

company-wide reference came recommended by the

FTA and was viewed very favorably by FRA.

criminatory rules. Ann is responsible for the Drug

Free Workplace program and Human Resource

Programs Manager Patt Winslow oversees the Drug

& Alcohol Program mandated by FRA and FHWA.

Ann, Ed Hills and John Simmons coordinated our

wheelchair lift preventive maintenance, location and

inspection practices.

Strategic Planning Director Bruce Carr dealt

with our project planning requirements, working

closely with AMATS and FMATS (Anchorage and

Fairbanks Metropolitan Area Transportation Sys-

tems) and STIP (Statewide Transportation Improve-

ments Program) processes. Communications Offi cer

Stephenie Wheeler exceeded public involvement

requirements associated with project construction

and environmental study processes.

Controller Wendy Richerson and her account-

ing team – including Maura Shea, Cindy Matthias

and Deanna Irwin-Gee – perform quarterly and an-

nual project reports and support the annual external

audits. Th ey oversee coding and help track how we

manage our fi xed assets in terms of depreciation and

funding sources.

Budget Management Offi cer Cindy Sholly and

Passenger Reservations Technician Kathleen Carlson

ensure we adequately track passenger traffi c statistics

required by the National Transportation Database,

an arm of FTA. Th ese numbers plug directly into

the formula for the FTA funding we receive.

TRIENNIAL REVIEW

SIDINGS: EMPLOYEE HAPPENINGS

UNITED WAY CAMPAIGN WELL UNDERWAYTh e Alaska Railroad’s employee United Way em-

ployee campaign is well underway having kicked off

September 7. Th e volunteer committee has come up

with a few new fund-raising activities and brought

back some favorites from years past.

Th e United Way Express train

is BACK! Brakeman/Conductor/

Engineer Dwight Harris is lead-

ing this eff ort to bring the giving

opportunity to railroaders working

all along the rail line. ARRC’s new

self-propelled Diesel Multiple Unit

will travel from Anchorage to Healy,

stopping along the way to talk to

track, signal and B&B crews in the

fi eld.

Th anks to the enthusiasm and

persistence of newcomer Emily

DaLuz, the UW Food Drive (end-

ing September 10) was a resounding

success! Railroader generosity broke a record with

655 pounds of food collected and delivered to the

Food Bank of Alaska (a United Way partner).

Th e wildly popular Dunk Tank was back for

an abbreviated encore. About $250

donations were collected before the

event closed due to extreme wind

conditions.

New this year is an in-house

bingo-rama with four numbers

called every day, starting October

4. Several games will be played

with the fi nal game a coverall worth

one-fourth of the cash collected.

Players can purchase cards for just

$5 per 3-game strip. Details are on

the intranet.

Employees who give are entered

into a drawing for dozens of great

prizes.

(continued from page 9)

2010 UW Team Shameron Ahiers

Katie Breci

Emily DaLuz

Nancy Davis

Dwight Harris

Keri Meszaros

Megan Ostendorf

Rosezetta Proctor

Patti Schumacher

Rob Walker

Stephenie Wheeler

RIGHT: DAVID

GREENHALGH VOLUN-

TEERED TO BE A DUNKEE

TO RAISE FUNDS.

(PHOTO BY STEPHENIE

WHEELER)

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ALL ABOARDALL ABOARD

3RD QTR 2010

11CROSSINGS: NEWS YOU CAN USE

VELOCITY PART 3: TRANSPORTATION FOCUSIn the last issue of All Aboard, this series covered

the Mechanical Department’s contribution to train

velocity, including locomotive power delivery, air

brake testing and equipping track maintenance

forces. In this issue, we look at the Transportation

Department’s role in ensuring on-time departures

and on-schedule train movement between termi-

nals.

On-Time DeparturesTh e railroad monitors Initial Terminal Depar-

ture (ITD), a measure of the time between the train

crew reporting for duty and the train leaving the

terminal. Th e goal is 35 minutes. Last year’s average

was 45 minutes. “Th rough teamwork and process

improvements we have consistently been averaging

less than 40 minutes from call to depart out of the

terminals. Th is is a remarkable achievement on the

part of our train crews that would be the envy of

any classifi cation yard in the country,” said David

Blazejewski, Transportation Superintendent.

Transportation’s key contributions to ITD are

to build the train on time and to deliver the train

crews on time. Building the train begins with an

accurate set of instructions, which, in turn, begins

with customer needs. Regular freight customers —

trailer-on-fl atcar (TOFC) wholesalers Lynden and

TOTE, Flint Hills Refi nery, Usibelli Coal Mine,

gravel producers — work with Transportation man-

agers and representatives to schedule cars and trains.

Th e Business Development Department brings in

other customers with special orders and some with

special needs.

In Anchorage, Transportation Support Tech-

nicians (TST) are the go-to people for freight

customer service. TOFC TST Sandy Wanner sup-

ports the wholesale trailer operations. “Sandy is in

daily contact with Lynden and TOTE, and directly

interfaces with the truck drivers,” explains Blazejew-

ski. Th e Operations Center customer service TSTs,

such as Sandy Linn and Becky Gould, connect with

other freight customers who call or fax transporta-

tion orders. TSTs coordinate closely with yard man-

agement to ensure customer orders are received and

tracked, and they report all railroad car movements,

ensuring the department has an accurate inven-

tory of every car’s location and status. In Fairbanks,

Freight Services Representative Katrina Martolano

performs a similar role.

Freight customer needs are discussed daily dur-

ing a 10:00 a.m. conference call involving the three

terminals (Anchorage, Fairbanks and Whittier), the

chief dispatcher, and locomotive manager to coordi-

nate call times, train sizes and power availability.

Th e on-duty Terminal Supervisor/Manager

works with Ops Center TSTs (Anchorage) or the

Operations Support Technicians (OST – Fairbanks)

to develop a train list that indicates the cargo being

hauled, railcars in use, and the order of railcars and

locomotives. Anchorage Terminal Manager Curt

Rudd says he relies on years of expe-

rience and reference materials that

dictate how diff erent types of cargo,

diff erent types of railcars, and diff er-

ent load shapes and sizes should be

arranged. For example, hazardous

material (hazmat) must be placed

specifi cally to minimize the risk of

damage and interaction with cargo

in nearby railcars. Th e length of

a railcar restricts its placement, as

do loads that are oversize or that

tend to shift. Blazejewski adds that

the terminal supervisor also has to

pay attention to train length, train

tonnage, motive power, head end

power requirements, DPU require-

ments, restricted loads, and other

constraints as well.

Th e train list serves as a set of

instructions for the yard train crews who piece the

train together. Hostlers fetch “fresh” locomotives

from the Mechanical shops to the staging area. Th e

yard engineer tows railcars into place in the correct

order, while the conductor hops on and off the

locomotive to couple cars together, hook up the air

brake hoses and to manually throw switches to open

sections of track for train maneuvering.

Fairbanks is easier than Anchorage, noted Con-

ductor/Brakeman Erik Forland. “Th e longest track

in the Anchorage yard is 4,000 feet, and our freight

trains are often more than 7,000 feet long. Th is

requires use of several tracks and more switching to

fi nally put the train together.”

Once a train is built, the TST or OST goes out

to the train to physically check that the train consist

matches the train list. Th en yard carmen (Mechani-

cal) will work with the yard train crew to perform

a fi nal train inspection. Th e carmen check the

air brake system, working with the engineer who

applies the brakes repeatedly as each car’s brakes

are tested. Th e conductor releases handbrakes and

double checks coupling devices. Finally, the crews

attach a telemetry device — a FRED — that tests

the entire train’s systems. If everything checks out,

the train is pulled to the end of the yard and one

yard train crew member will remain with the train

so that brakes do not have to be secured and so that

a face-to-face hand-off can be made with the road

crew to expedite departure.

FAIRBANKS TERMINAL

DIRECTOR AUSTIN

HILL AND OPERATIONS

SUPPORT TECHNI-

CIAN KARI HASCHKE

DISCUSS THE DAY’S

ACTIVITY IN THE FAIR-

BANKS YARD.

(PHOTO BY

STEPHENIE WHEELER)

(See “Velocity Part 3” on page 12)

Velocity Part 3:

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ALL ABOARDALL ABOARD

3RD QTR 2010

assisting the dispatchers

with calls, crew coordina-

tion, data input and other

tasks that relieve the load.

“Th e train dispatcher

has a giant juggling act

to coordinate traffi c to

minimize delays while also

allowing work trains and

track maintenance crews

to continue their work

with as little interruption

as possible,” said Blaze-

jewski. “Most importantly

the dispatcher is responsi-

ble for the safe movement

of all trains and track cars

operating on the main

track to ensure there are

never any confl icting

movements on the same

stretch of track.”

Train meets and crew

relief are two factors that impact the schedule of

trains traveling from one terminal to another.

Train meet decisions consider changing condi-

tions and priorities. For example, while relatively

short passenger trains fi t into every siding and are

able to stop and go quickly, they are also a priority

to keep on schedule because passengers have con-

nections. Yet if a passenger train is ahead of sched-

ule, it may make sense to direct the passenger train

into a siding to allow a freight train to move past.

“When trains do not pass as expected and

one or both trains are delayed, we have a domino

eff ect,” said Toppin. “A bad meet often aff ects the

progress of other trains for the next 12 to 36 hours.”

Th e goal is to ensure a train meet does not delay a

train more than 20 minutes. Last year, meet delays

averaged 22 minutes, and this year the average is on

target at 20 minutes.

Dispatchers constantly monitor activity on

the rail, including trains, hyrail vehicles, heavy

equipment and maintenance crews. Th ey are solely

responsible for issuing, updating and rescinding

main track authorities. Th e objective is to avoid

overlapping authorities that would cause confl icting

uses, such as train traffi c in an area where MOW

crews are working.

“Th e Alaska Railroad has a lot of experience

with long-time conductors and engineers,” said

Dispatcher Stephan Kester. “I trust them and rely

on their input.”

Dispatchers also determine when crew relief is

in order for those conductors and engineers. Ideally,

12

ABOVE: CONDUCTOR

ROY DEGENSTEIN

CHECKS HAND BRAKES.

BELOW: CONDUCTOR

RICK RAPUZZI THROWS

A SWITCH IN THE

ANCHORAGE YARD.

Getting the road train crew to the

train on-time is the other key element

to an on-time departure. “Th is summer,

we initiated an automatic call approach,

meaning we let the crews

know ahead of time when they

will be called, and where they

need to report,” said Fairbanks

Terminal Director Austin Hill.

“Th e risk is that the train may

not be ready, and the crew

reports too early. But for the

most part the train is on time,

and crews appreciate know-

ing their schedule in advance.

As winter draws closer, the

automatic call will not be used

because cold and inclement

weather make train start times

more unpredictable.”

If needed, a Crew Trans-

port driver will pick up train

crews from the hotel. Once they arrive at

the operations center, train crews receive

a safety and job briefi ng from OSTs

and/or Terminal Supervisors. Briefi ngs are typically

about 15 minutes, but can go longer with new gen-

eral orders or operating circulars, or track restric-

tions/changes, which must be covered. Operations

center TSTs (Anchorage) and OSTs (Fairbanks)

compile a bulletin package that includes the train

list, any hazmat documentation, track condition

reports, time slips and any other pertinent paper-

work. Th is is given to the train crew during the

briefi ng. When the briefi ng is complete,

Crew Transport will deliver the train

crew to the train. Once settled, the train

crew and Dispatch compare their respec-

tive bulletin packages, and if everything

checks out, Dispatch gives the train crew

a green light and the train departs.

Terminal Supervisors/Managers

oversee train activity within the non-

controlled yard track. As soon as the

train leaves the yard, it rolls onto track

controlled by Dispatch.

On-Schedule Train MovementSimilar to their air traffi c control-

ler counterparts, Dispatchers are rail

traffi c controllers, said Randy Toppin,

Assistant Chief Dispatcher. When it is

busy, two dispatchers will be on duty

with one covering Pittman south and the

other covering the region north of Pittman. A chief

dispatcher is also typically on duty during the day, (PHOTOS BY STEPHENIE

WHEELER)

VELOCITY PART 3: TRANSPORTATION(continued from page 11)

(See “Velocity Part 3” on page 13)

ENGINEER STEVE CORVEN CHECKS HIS

LOCOMOTIVE BEFORE DEPARTURE.

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ALL ABOARDALL ABOARD

3RD QTR 2010

mention miles of twisting mainline with speed re-

strictions of 25 to 35 mph as our tracks wind along

the banks of the Susitna and Indian Rivers and

myriad other creeks and streams. Th at challenge has

been met by removing all the controlled variables.”

Conclusion“Th e improvements in 2010 have

been nothing short of remarkable. Th e

numbers tell the story,” said Blazejew-

ski. “Our train crews have shown a

dedication to the mission that is unlike

anything I ever experienced while

working for the Class Ones. Th ey take

an immense amount of pride getting

their trains over the road on time and

it shows day in and day out.”

While train crews are important,

every department plays a part in the

success of getting trains over the road, said Blaze-

jewski. “Th ere has been no ‘silver bullet’ to address

the challenge of velocity. It has been a myriad of

little things and minor process changes and innova-

tions that have been paying these dividends.”

Next issue, the fi nal part in the Velocity series

takes a look at the contributions of Maintenance of

Way.

13a train arrives at its fi nal destination with one crew

within 12 hours. Federal regulations prevent train

crews from working past 12 hours, so if a train will

not meet the 12-hour limit, Dispatch arranges for a

crew switch along the way. Th e goal is to meet the

12-hour, one-crew limit 63% of the time, based on

a year-round average (75% winter and 50% sum-

mer). Th e average for the year so far is 70%.

During the nine years he has been a dispatcher

Kester has seen many changes. But one thing re-

mains constant. “Safety is the big thing. Our goal is

everyone goes home unhurt,” he said. “Effi ciency is

the other. We want to keep our commitments to the

customer, and operate at a profi t, so we are always

looking at ways to save time.”

Th e single biggest challenge to meeting the

velocity goal for the Anchorage-Fairbanks freights

is the length of the crew district, acknowledged

Blazejewski. “A 356-mile district is an extremely

long run. Very few districts are as long in the North

American rail network and those that are of similar

length are in double track, CTC, high speed 70

mph territory,” he noted. “To compare, our 356-

mile district is CTC equipped for just shy of 50

miles and only four miles of double track, not to

VELOCITY PART 3: TRANSPORTATION

CROSSINGS: NEWS YOU CAN USE

RAILROAD LEASES LAND TO WHALE MOVIETh e Alaska Railroad recently issued a special

land use permit that allows an area on Ship Creek

Point to serve as a primary fi lming location for a

major movie production this fall. Universal Pictures

and Working Title Productions have teamed up to

produce “Everybody Loves Whales,” which tells the

story of the three California gray whales stuck in

the Arctic ice near Barrow in 1988. Th e movie stars

Drew Barrymore as a Greenpeace worker who part-

ners with a local reporter played by John Krasinski

(Th e Offi ce).

“Finally, an Alaska story is being fi lmed in

Alaska,” said Alaska Film Offi ce Manager Dave

Worrell. “A couple of years ago, the legislature

passed an incentive that off ers tax credit for fi lming

expenses in Alaska. Movie production companies

are cost-conscious, especially in these economic

times. I think that incentive tipped the scales in our

favor.”

Much of the movie will be fi lmed in Anchorage,

although some fi lming will take place in Barrow.

Th e railroad’s small boat storage lot just happened

to fi t the movie company’s criteria for a fl at Anchor-

age location with the ocean in the background.

Stored boats have been relocated about a quarter

mile south to a temporary lot, making room for

a movie set that will replicate downtown Barrow,

among other scenes.

“Most boat owners with storage permits have

been very cooperative,” said ARRC VP Real Estate

Jim Kubitz. “We’ve been able to move the majority

of boats and equipment in about two weeks time.”

Filming at the site is scheduled for October and

November. After fi lming is complete, the site will

be restored and boats returned to their previous lot

locations.

Th e movie has also leased the west end of the

Historic Freight Shed on First Avenue to provide

meals to the crew members starting in the middle of

October until fi lming ends sometime in November.

Anchorage employees may notice catering trucks

stationed in the parking lot with tables set up in the

shed to serve breakfast and lunch to about 150 crew

members.

“Th e movie’s $30 million budget for in-state

spending is a welcome addition to the economy,”

said Worrell. “We hope this is the start of a series of

movies made in Alaska.”

(continued from page 12)

DISPATCHER STEPHAN

KESTER AT WORK

IN THE DISPATCH

CENTER.

(PHOTO BY

STEPHENIE WHEELER)

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ALL ABOARDALL ABOARD

3RD QTR 2010

14CROSSINGS: NEWS YOU CAN USE

2011 PRINT FEATURES MATANUSKA RIVER

2011 ALASKA RAILROAD PRINT RESERVATION FORM

Th e 2011 commemorative annual poster/print

will be available in early December. Sale-and-sign-

ing events are slated for December 4 at the Historic

Ship Creek Depot in Anchorage and December 18

at the Fairbanks Depot. Both Saturday events are

from 10:00 a.m. to 2:00 p.m.

As reported in the 2nd Quarter All Aboard, the

2011 artwork is a painting that depicts a freight

train crossing the Matanuska Bridge. Th e artist is

Douglas Girard from Palmer, Alaska.

Railroad employees each receive one free poster.

Employees can purchase additional posters at the

employee discount price of $25. Employees can also

purchase the higher-quality prints for $45 (cost to

public is $30 for posters and $55 for prints).

To reserve a 2011 signed and numbered print,

the form below must be completed and returned to

Stephenie Wheeler, Corporate Aff airs by Nov. 30.

Regardless of whether or not an employee has

reserved a print in the past, in order to keep a

preferred print number, employees must return a

reservation form by the deadline. Print reservation

numbers from previous years will NOT be hon-

ored. Numbers 1-25 are not available. Employees

who do not care what number is on the print, or

who are only purchasing posters, do not need to

return the form.

REMINDER on 2010 reserved prints: Pas-

senger Services still has several reserved 2010 prints

that have not been picked up yet. If you or some-

one you know reserves a specifi c number each year

and has not yet come by the ticket counter to pay

and pick up their print, please consider this your

fi nal reminder.

Th e Fairbanks Depot and Historic Ship Creek

Depot will hold any unclaimed prints until No-

vember 1st. After November 1, all unclaimed 2010

reserved prints will be put back into inventory at

that time.

DEADLINES: Pick up reserved 2010 prints by November 1, 2010

Reserve 2011 print numbers byNovember 30, 2010

Complete this form and return it by November 30, via:

Intercompany Mail: Stephenie Wheeler, Corporate Aff airs

OR Fax back to 265-2365

NAME

DEPARTMENT

RESERVE PRINT NUMBER: SECOND CHOICE NUMBER: THIRD CHOICE NUMBER:

PHONE

ANCHORAGE FAIRBANKS

A PHOTO OF THE

NEARLY-FINISHED

2011 PRINT

ARTWORK.

(COURTESY OF

DOUGLAS GIRARD)

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ALL ABOARDALL ABOARD

3RD QTR 2010

15SIDINGS: EMPLOYEE HAPPENINGS

RAILROADER SCORES NATIONAL SILVERFairbanks Equipment Operator / Truck Driver

Warren “Woody” Woodland scored some pioneer-

ing silver in Lincoln, Nebraska, while representing

Alaska in a national sports competition. Th e 2010

Special Olympics USA National Games were held

July 18-23 in the Lincoln area, and featured 13

sports competitions involving 3,000 athletes from

all 50 states.

Woodland competed as a partner with Spe-

cial Olympics athlete Alex Cain to win two silver

medals in Unifi ed bocce. Unifi ed Sports combines

Special Olympics athletes and partners without

intellectual disabilities to train, compete and play

together in a variety of sports.

“My involvement with Special Olympics allows

me to meet new people and to interact with people

who have diff erent skills,” said Woodland. “It’s a

way for me to give back and to have fun doing it.”

Special Olympics training and competition

occurs at the local level with community programs

that recruit athletes and volunteers to participate.

Woodland has volunteered as a local Special Olym-

pics basketball coach for four years, while Cain is

also an assistant swim coach. Th ey met through

Special Olympics coaching seminars, and three

years ago, they decided to compete in Unifi ed bocce

in addition to their coaching involvement.

Athletes and partners who compete in local

games can earn a spot at state-level competition.

Cain and Woodland had competed in Unifi ed

bocce during the 2009 local Special Olympics -

Fairbanks Area Summer Games, and then advanced

to the 2009 State Fall Games (golf and bocce). Th e

local and state wins qualifi ed the duo for 2010 na-

tional competition. Th is marked the fi rst time that

Alaska sent anyone to compete in bocce at this level.

Bocce competition took place at the University

of Nebraska Lincoln Cook Pavillion, where 18

bocce fi elds were set up to accommodate 220 ath-

letes playing doubles and four-person team compe-

tition. Woodland and Cain took second in Unifi ed

doubles and team competitions.

Like all committed athletes, advancement in

competition required more time and more dedi-

cation to stay on top of their game. After being

selected for national bocce competition, Woodland

and Cain practiced at least once a week for nearly a

year.

Alaska’s bocce head coach for nationals Mary

Bunten confi rmed that the duo worked very hard.

Yet, she says, “Th e number one rule for the Tanana

Valley Special Olympics is to always have fun. We

make each other laugh, even while helping one

another face more challenges.”

Woody insisted that Alex

be captain of their team,

so that Alex was the one to

make the decisions. “Th at

is in the spirit of Unifi ed

Sports,” explained Bunten.

“It is designed to give athletes

with higher abilities more of a

challenge.”

Bunten’s only lament is

that there are not more Cains

and Woodlands to go around.

“We are always looking for

coaches and volunteers,”

said Bunten. She encouraged

those interested to visit www.

specialolympicsalaska.org for

more information.

“It’s time to take a little

time off from bocce,” agreed

Woodland and Cain. But that

hardly means either one will

kick back entirely. While Cain continues to train

in bowling and to coach swimming, Woodland will

continue basketball coaching in the spring.

Special Olympics was founded in the mid-

1960s “to provide year-round sports training and

athletic competition in a variety of Olympic-type

sports for people with intellectual disabilities, giving

them continuing opportunities to develop physical

fi tness, demonstrate courage, experience joy and

participate in a sharing of gifts, skills and friendship

with their families, other Special Olympics ath-

letes and the community,” according to the Special

Olympics web site.

ALASKA’S UNIFIED

BOCCE TEAM AT

THE 2010 SPECIAL

OLYMPICS NATIONAL

GAMES:, L-R:

PARTNER WARREN

WOODLAND, COACH

MARY BUNTEN, AND

SPECIAL OLYMPICS

ATHLETE ALEX CAIN.

(PHOTOS BY

STEPHENIE WHEELER)

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THIRD QUARTER 2010

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. 500

ARRC GIVES PHOTO COLLECTION TO MUSEUM

In late September, the Alaska Railroad formally transferred

ownership of its historical photo collection to the Anchorage

Museum at Rasmuson Center. Th e collection consists primar-

ily of photographs, but also includes postcards, invitations,

brochures, commemorative buttons and pins, anniversary press

packet, reports, rail tickets, and video fi lm. Transfer is by a

deed of gift signed by the railroad, museum and state archi-

vist. Th e gift provides the formality required for the museum

to obtain grants and other funds to enhance future eff orts to

preserve, protect and display the collection.

Interest and rights to the collection are conveyed to the

museum with some stipulations. First, the collection must

remain in Anchorage. Th e railroad retains the right to review

the photographs at the museum, and to obtain reproductions.

Th e photos are to remain accessible to the public. Requests for

commercial use of the photos must still be approved by ARRC

Corporate Aff airs. Th e museum may convey some materials

that are better suited for the National Archives and Records

Administration (NARA). Last year, the railroad transferred

ownership of numerous documents and records from federal

ownership era (1914 to 1985) to the NARA Anchorage facility.

“Transferring ownership of our records and photos to

NARA and the museum off ers greater opportunity for these

organizations to seek grants and other funds that further eff orts

to preserve, protect and display the items for the public and

future generations. Our railroad history is in good hands,” said

VP Corporate Aff airs Wendy Lindskoog.

“Th e railroad collection has always been important to the

museum,” said Chief Curator Marilyn Knapp. “Th is collection

gets a huge amount of use. We consider it a heritage / legacy

collection because of the railroad’s signifi cance to state history.

Now that the museum owns the collection, more staff time will

be dedicated to expanding in-person and electronic access.”

MUSEUM CURATOR MARILYN KNAPP, LEFT, AND RAILROAD VP OF

CORPORATE AFFAIRS WENDY LINDSKOOG SIGN THE AGREEMENT.

(PHOTO BY STEPHENIE WHEELER)