Among projects displayed was the northern rail extension, a rail line that would connect North Pole, just southeast of Fairbanks, to Delta Junction, just north of Fort Greely, providing an alternative for passengers and freight to the usual route via the Richardson Highway.

Following the formulation of an environmental impact statement by the Surface Transportation Board in April 2005, the STB authorized the construction of the rail extension last month.

The project will likely cost between $600 million and $800 million, and construction will be completed in four phases. Funding for the project will be piecemeal, said railroad spokeswoman Stephanie Wheeler.

Preliminary engineering and design, as well as environmental assessments mandated by the National Environmental Policy Act, were covered by a $12.5 million appropriation from the Department of Defense that was administered as a grant through the Federal Railroad Administration.

The Department of Defense appropriate $44.2 million in 2007 and $60 million in 2008 for the first phase of development, a crossing at the Tanana River.

Funding for the construction costs is likely to come from federal appropriations and revenue bonds that are secured by advance shipping contracts.

Renovations are planned for the ARRC's fleet of 53 trains. Three of the fleet's dining cars will see a new "fast-casual" dining experience, in which passengers can choose quick-fix meal items. The upgrades will cost $535,000, of which the Federal Transit Administration will pay 91 percent and the railroad will pay the remaining 9 percent.

Engine idle-reduction systems, which shut off a locomotive's engine after a period of disuse, will be installed on four locomotives in 2010. The engines also will be modified to bring them into Environmental Protection Agency compliance for lower emissions and increased fuel efficiency. These upgrades will see about $1.6 million in funding from the ARRC, and $700,000 in stimulus money via the EPA and Alaska State Clean Diesel Grant Program.

The railroad also plans to rehabilitate the track that connects Seward and Fairbanks. Planned upgrades for 2010 include replacing rail and eliminating joints, replacing wood ties and surfacing. ARRC will provide $9.7 million of the cost via the sale of revenue bonds backed by the FTA, $7.6 million in FTA grants, and $300,000 of internal ARRC funding.

The ARRC is also interested in launching whistle stop service in Chugach National Forest, a project that would provide passengers access to the forest's backcountry area and facilitate a bevy of outdoor activities. A site in Spencer, which lies just south of Portage, offers an old-world aesthetic that echoes the look and feel of a vintage railroad camp.

The second phase of whistle stop construction will involve the creation of a stop at Grandview, to be completed this year. Phase three will see sites at Luebner Lake and Bartlett Glacier, and phase four will involve a site at Trail Creek.

Altogether, these whistle stops will cost around $14 million.

The ARRC will see a budget of $42.1 million in federal funding this year, $14.3 million of which will support new spending for capital improvements, Wheeler said in an e-mail. Of the remainder, $16.7 million will go to repay bond debt, and $11.1 million will be used for preventative maintenance.

Overall, the Alaska Railroad is budgeting $43.1 million in new spending for capital improvements, $14.3 million of which will come from the federal dollars. $19.1 million will come from internal funds, and $9.7 million will come in from revenue from bond sales made in 2006 and 2007.

Sean Manget can be reached at

sean.manget@alaskajournal.com.