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Web posted Sunday, January 27, 2008

Mat-Su chugs step closer to rail expansion

By Margaret Bauman
Alaska Journal of Commerce


  An Alaska Railroad engine sits at the Anchorage depot in this file photo. Alaska Railroad and Matanuska Susitna Borough officials announced they have selected a Virginia firm to conduct an environmental study to look at the proposed $300 million rail extension that would link to Port MacKenzie. File Photo/AJOC    
A Virginia firm has been selected by the Alaska Railroad Corp. and the Matanuska Susitna Borough to conduct an environmental study for the proposed Port MacKenzie rail extension project.

The proposed $300 million extension of the Alaska Railroad to Port MacKenzie within the Mat-Su Borough is still in the early planning stages.

The firm, identified as ICF International of Fairfax, Va., is a global professional services firm that partners with government and commercial clients on transportation, defense, emergency management and other issues. Borough spokeswoman Patty Sullivan said Jan. 18 that the borough was finalizing a contract with ICF.

Borough and railroad officials also have submitted to the federal Surface Transportation Board a preliminary environmental and alternatives report. The ultimate decision on whether to proceed with the project lies with the federal board, which would require under the National Environmental Policy Act an environmental impact statement on the proposed area, and then schedule a series of public hearings on the EIS.

Tim Thompson, spokesman for the Alaska Railroad, said he expected the board to make its decision on whether to approve the rail extension by late 2008 or early 2009. The railroad would float bonds for the project only if studies show a way to pay for the bonds. Thompson said at this point no conclusion has been reached on the financial viability of the project.

Thompson noted earlier that the railroad would not make any money on the deal. “The Alaska Railroad can actually bond, but we need a dedicated revenue stream; we need to know the money is out there to pay back the bond,” he said.

The project would involve construction of 30 to 45 miles of new rail line, and would cost roughly $4 million to $8 million per mile, according to Thompson.

Efforts to move the project along are so far being funded with $10 million in state funds for the environmental document and related studies. The precise route has not yet been chosen.

Joe Perkins, executive project manager for the borough, said a number of Alaska subcontractors would be involved in the EIS preparation. He identified the subcontractors as ENTRIX Inc., Steve Braund and Associates, Northern Land Use Research Inc., and USKH Inc.

ENTRIX is a full-service environmental consulting firm with offices in 21 states, including Alaska. ENTRIX will be substantially supporting the EIS administration and coordination effort, as well as analyzing water resources, biological resources, land use, creation, trails and other key areas.

Steve Braund and Associates, an Anchorage firm, will lead the analysis of cultural resources and coordinating the government-to-government consultation. The company has conducted socio-cultural and socio-economic research in more than 125 rural Alaska villages since 1973, and is participating in research projects throughout rural Alaska, Canada and Japan. SBA recently did a similar job for the Knik Arm Bridge and Toll Authority.

Northern Land Use Research, based in Fairbanks, is a cultural research and consulting firm. USKH is a full service, multi-disciplined design and consulting firm with offices in Anchorage and Wasilla. USKH will lead public involvement efforts, fisheries, wetlands and geology/soils portions of the EIS.

Margaret Bauman can be reached at margie.bauman@alaskajournal.com.

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