Meantime, the railroad has cancelled the bid for construction of an intermodal facility and depot in Fairbanks. Alaska Mechanical Inc. and American Mechanical Inc., the two companies to submit bids, both came in over the budgeted amount for the project. The bids came in at $11.9 million and $12.2 million. The railroad estimated the budget to be between $8 million and $10 million.

According to Flynn, the design for the project will be reworked in an effort to cut costs.

The project will be re-bid in two phases, said Diane Kennedy, contracts administrator for the railroad. The earthwork and site preparation will proceed this year and construction of the facility will be put off until next year.

The targeted completion for the project is summer 2005. Railroad officials still believe that the facility will be finished by then, said Flynn.

The new intermodal facililty will be built adjacent to the railroad yard near the intersection of the Johansen Expressway and Danby Road.

The facility will feature a state-of-the-art depot, additional bus parking and safer transfer areas for travelers making connections. Plans also include an 1,800-foot "balloon" track to allow easier train turn-arounds.

The entire project cost is estimated at $22.5 million, less than half of which has been funded. The Federal Transit Administration has supplied 80 percent of the funded amount with the railroad providing the other 20 percent.