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Three major players in the deal - Usibelli, Hyundai Merchant Marine and Korea East-West Power- celebrated the event this week in Seoul as the Alaska Railroad Corp. prepared to purchase the Seward coal terminal.
Coal began arriving from Healy in late September, said terminal foreman Tom Reese. Workers began loading the first shipment of 40,000 tons on Tuesday.
Usibelli spokesman Bill Brophy said the two-year contract is for 400,000 tons of coal each year.
But this week the railroad held a preliminary meeting with the buyer of the coal, Korea East-West Power, about possibly expanding that contract in the future, said Steve Silverstein, Alaska Railroad vice president of markets, sales and services.
The railroad's planned purchase of the Seward Coal Facility _ owned by Hyundai Merchant Marine and the Alaska Industrial Development and Export Authority _ helped clear the way for the contract.
The railroad doesn't officially own the $8 million facility yet, said railroad spokeswoman Wendy Lindskoog, although it plans to finish the deal when a round of environmental testing is completed.
In September, railroad officials said the sale hinged on Federal Railroad Administration grant approval.
U.S. Sen. Ted Stevens earmarked the $9.6 million grant in the 2003 omnibus appropriations bill for the purchase, with some of that money expected to go toward upgrading the facility.
Hyundai will lease the terminal from the railroad and operate it during the span of the contract.
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