That represents a 35 percent increase over 2001, according to the railroad's annual report released April 1. Total revenue for the year was $105.7 million. That was a $1.6 million drop from last year.

Several factors contributed to the revenue losses last year, including a decline of freight revenues, according to the report. Freight accounts for 72 percent of the railroad's revenues. The cessation of the contract between South Korea and the Usebelli Coal Mine meant a significant loss of freight for the company. In addition, the volume of shipments of petroleum products from the North Pole Refinery was less than anticipated.

While increased gravel shipments toward the end of the year helped counteract the losses, the railroad still saw an overall decline in revenues from 2001.

According to Pat Flynn, spokesman for the railroad, the single biggest cost-saving factor was the company's safety record. The railroad reduced the injury frequency rate by 63 percent over the past five years. The reduction of accidents meant less time lost, and reduced worker's compensation claims. The safety factor also helped earn the company the distinction of being one of the safest railroads in the country, according to the report.

Officials at the railroad had anticipated that the Sept. 11, 2001 terrorist attacks would have a negative impact on passenger travel in 2002. On the contrary, passenger revenues increased more than four percent last year.

In addition, real estate income for the railroad hit a record high in 2002, surpassing $11 million.

Expenditures on capital assets totaled $66.5 million last year, 86 percent of which was funded by grants from the federal government, according to the annual report.