THE MECHANICAL

DEPARTMENT’S LYNDSEY

RUHL MORPHED INTO

THE EASTER BUNNY

APRIL 7 TO BRING JOY

TO HUNDREDS OF

CHILDREN ABOARD THE

ALASKA RAILROAD’SPOPULAR EASTER TRAIN.RUHL IS PICTURED WITH

ARRC E-MARKETING

SPECIALIST KRISTI

SCHNEIDER’S 6-MONTH-OLD DAUGHTER SAGE.SEE “EASTER TRAIN...”ON PAGE 12. (PHOTO BY

STEPHENIE WHEELER)

’07 EASTER TRAIN DELIGHTS 500 LOCALS

IImagine you are at work, and you notice that the ceil-ing is leaking… or the faucet is dripping… the heaterisn’t heating… a fuse keeps blowing… a window panebreaks… the toilet is backing up…Who are you goingto call?

It used to be that one would need to track downthe right person, a sometimes frustrating exerciseinvolving phone tag and fix-it delays. Say “good-bye” tothe old phone-in system and “hello” to instant access toMaintenance Requests via any Alaska Railroad comput-er desktop. Beginning April 16, the Real EstateDivision’s Facilities Department instituted a new pro-gram that is evident by a computer screen icon —“FACILITIES MAINTENANCE REQUESTS.”

Here’s how the program works. Employees whospot a facilities problem that needs attention should jotdown the details, and then proceed to a Railroad com-puter. Locate the icon on the computer desktop anddouble click. Up comes a screen with a form asking

three questions. You type in answers to 1) Who are you?2) Where are you? 3) What is the problem?

Click “send” and the system automatically routesyour maintenance request to one of three people,depending on your location. If you are in one of nineadministrative or depot buildings in the AnchorageReserve, you’re request will reach Anabel Leigh. If youare located in a yard, section or remote facility south ofHurricane, your request will reach Chris Corbeil. And,if you are north of Hurricane, your request goes toMark Timblin in Fairbanks.

Anabel, Chris and/or Mark will create a work orderwithin the Railroad’s Computerized MaintenanceManagement System (CMMS). They will assign repairto either a Railroad Facilities crew or a contractedbuilding management and/or janitorial firm.

Now that the Facilities Department is incorporatedinto the Railroad’s CMMS, it’s easy to track whether a

(See “Facility Fixes” on page 11)

ALL ABOARDALL ABOARD

4

6

9

5

8

10

SIGNALS: TRANS

DEPT ESTABLISHES

SAFETY AWARDS

MARCH / APRIL

2007

INSIDE THIS ISSUE...

SIGNALS: HSESTUDIES WORKER

FATIGUE IMPACT

SIDINGS: SEWARD

VOICES — FRONT

LINE OPINIONS

CROSSINGS: HR POSTS ONLINE

“LEARNING DEPOT”

SIDINGS:COMMUTER RAIL

SURVEY RESULTS

I HEARD IT

THROUGH THE RAIL

LINE — ASK PAT

13CROSSINGS: WEED

KILLER PERMIT

DENIED; FIRST

“DINER TRAIN”

C R O S S I N G S : N E W S Y O U C A N U S E

FACILITY FIXES JUST A DOUBLE-CLICK AWAY

2AALLLL AABBOOAARRDD

SSEEPPTT//OOCCTT 22000055

2ALL ABOARD

MARCH/APRIL2007 M I L E P O S T S

NEW HIRES — FEBRUARY / MARCH

M I L E P O S T S

SERVICE AWARDS — FEBRUARY / MARCH

February New HiresMichele Gavin . . . . . . . . . . . . . . . . . Passenger ServicesRobert Izyadorek . . . . . . . . . . . . . . . . . . . . . MechanicalMichael McKevitt . . . . . . . . . . . . . . . . . . . . MechanicalPatricia Schumacher . . . . . . . . . . . . . Passenger ServicesTiffany Simpson . . . . . . . . . . . . . . . . Passenger ServicesKirsten Svejnoha . . . . . . . . . . . . . . . . Passenger Services

March New HiresAnnette Baker . . . . . . . . . . . . . . . . . . . . Train Dispatch Linda Berg. . . . . . . . . . . . . . . . . . . . . Passenger Services Rheynan Castro . . . . . . . . . . . . . . . . . . Crew ResourcesErin Cork. . . . . . . . . . . . . . . . . . . . . . . . Train Dispatch

Theodore Crouse. . . . . . . . . . . . . . . . . . . . MaintenanceWilliam Elliott. . . . . . . . . . . . . . . . . . Passenger Services Robert Hamann . . . . . . . . . . . . . . . . . . . . MaintenanceClyde Hughes . . . . . . . . . . . . . . . . . . . . Crew ResourcesKimberly Jackson-Matta . . . . . . . . . . Passenger Services Trena Lozano. . . . . . . . . . . . . . . . . . . Passenger Services Aaren Mackenzie . . . . . . . . . . . . . . . . Passenger Services Mark Mitchell . . . . . . Health, Safety & EnvironmentalCrystal Pickett . . . . . . . . . . . . . . . . . . Passenger Services George Strickler. . . . . . . . . . . . . . . . . . . . . MaintenanceRandel Toppin . . . . . . . . . . . . . . . . . . . . Train Dispatch Matthew Yanney . . . . . . . . . . . . . . . . . . . . . Mechanical

M I L E P O S T S

RETIREES IN JANUARY / FEBRUARY / MARCH• Fireman/Engineer Frank Dewey retired from the

Transportation Department after 31 years of service. • Fireman/Engineer Herff Keith, Jr. retired from the

Transportation Department after 34 years of service. • Fireman/Engineer Bill Hightower retired from the

Transportation Department after 33 years of service. • Trainmaster / Road Foreman Don Hill retired from

the Transportation Department after 22 years of serv-ice.

• Manager of MOW and Rail Welding Terry Hinmanretired from the Maintenance of Way Departmentafter 32 years of service.

• Chief Train Dispatcher Virginia Johnson Trainmasterretired from the Transportation Department after 30years of service.

• Train Dispatcher Dan Maloney retired from theTransportation Department after 14 years of service.

1 Year Service Award (February)Jennifer Reich . . . . . . . . . . . . . . . . . . Passenger Services

1 Year Service Award (March)Barbara Amy . . . . . . . . . . . . . . . . . . . . . . . . . . . FinanceDavid Burglin . . . . . . . . . . . . . . . . . . . . . . . MechanicalRandy Burington . . . . . . . . . . . . . . . . . . TransportationJennifer Clark . . . . . . . . . . . . . . . . Project ManagementTerry Potter . . . . . . . . . . . . . . . . . . Information ServicesKelly Reinhardt . . . . . . . . . . Operations Administration

5 Year Service Award (February)Don Graber. . . . . . . . . . . . . . . . . . . . . . . . MaintenanceRob Hahn . . . . . . . . . . . . . . . . . . . Engineering ServicesRance Jones . . . . . . . . . . . . . . . . . . . . . . . . . MechanicalJohn Waychoff . . . . . . . . . . . . . . . . . . Police & Security

5 Year Service Award (March)Darin Capps . . . . . . . . . . . . . . . . . . . . . . . MaintenanceNancy Davis . . . . . . . . . . . . . . . . . . . . . . . MaintenanceBart Langenberg-Miller . . . . . . . . . . . . . . . MaintenanceYukio Kaneshiro . . . . . . . . . . . . . . . . . . . TransportationTJ Sheffield . . . . . . . . . . . . . . . . . . Project Management

10 Year Service Award (February)Susan Schrader . . . . . . . . . . . . . Real Estate & FacilitiesAl Townsend . . . . . . . . . . . . . . . . . Information Services

10 Year Service Award (March)Lane Davis . . . . . . . . . . . . . . . . . . . . . . . Train DispatchDave Kampsen . . . . . . . . . . . . . . . Information Services

15 Year Service Award (February)Richard Carter . . . . . . . . . . . . . . . . . . . . . . . Mechanical

15 Year Service Award (March)Albert Fyfe. . . . . . . . . . . . . . . . . . . . . . . . . . MechanicalRobert Kosusnik . . . . . . . . . . . . . . . . . . . . . MechanicalBrad McAlpine . . . . . . . . . . . . . . . . . . . . TransportationGeorge Naser. . . . . . . . . . . . . . . . . . . . . . . Maintenance

20 Year Service Award (February)David Dianoski . . . . . . . . . . . . . . . . . . . . . . . . Signaling

25 Year Service Award (March)Marge Doughty . . . . . . . . . . . . . . . . . . Labor Relations

30 Year Service Award (February)Virginia Johnson . . . . . . . . . . . . . . . . . . Train Dispatch

30 Year Service Award (March)Janice Cox . . . . . . . . . . . . . . . . . . . . . . . Train Dispatch

TThe Alaskans for Litter Prevention and Recycling(ALPAR) presented the Alaska Railroad with ALPAR’s2006 Board of Directors Award, recognizing ARRC’scommitment to recycling efforts that benefit railbeltcommunities and support of litter clean-up effortsstatewide. The award was among 11 presented to busi-nesses, organizations and individuals across Alaska atALPAR’s annual awards banquet April 26.

In partnership with Alaska Marine Lines, theRailroad helped ALPAR move over 2,200 tons of recy-cled materials (mostly cardboard and paper) to Whittierand on to Seattle. The material is sold to mills in theNorthwest and remade into many new products, includ-ing new cardboard boxes. The Alaska Railroad firstpartnered with ALPAR in 2005, joining Horizon Lines,TOTE, Lynden and Northland Services. The backhaulof recyclables to Outside markets not only keeps recy-cling centers viable but also supports other ALPAR pro-grams, such as ALPAR Youth Litter Patrols, ChristmasTree Recycling, Community Drop Bins for cans, news-papers in Anchorage, and much more.

Additionally in 2006, The Alaska Railroad agreedto consider using recycled glass as locomotive tractionaid. After extensive testing Ernie Piper, Jay Boggess andDennis Bouwens determined that the glass would work

well as a substitute forimported high silica sand.“The Anchorage recyclingcommunity was thrilled.This new market forAnchorage’s recycled glassis helping us turn arounda very difficult recyclingoperation, making itviable,” says Mary Fisher,ALPAR’s executive direc-tor. “The Railroadshould be applauded forthis forward-thinkingeffort that benefits theenvironment and con-serves our landfill.”

ALPAR is a non-prof-it organization dedicated toincreasing economically-viable recycling and eliminatinglitter in Alaska. ALPAR distributes free, bright yellowclean up bags to over 200 Alaskan communities andorganizations each summer, funds Youth Litter Patrolsstatewide, and spearheads numerous efforts to helpmake recycling successful.

3ALL ABOARD

MARCH/APRIL2007

TThe following individuals and groups were nominatedto receive a Spotlight Award in the first quarter of 2007.

Carman Krista Aumick discovered a cracked wheelwhile inspecting a coal train returning to Seward.The damage was significant and Aumick ensuredcorrective action was taken. This great catchmay have prevented a broken wheel derailment,the most severe type of derailment often result-ing in major costs and damages.

Civil Engineer II Judi Shapiro recently com-pleted very difficult track design and layout proj-ects for two of the Railroad’s larger customers….Lynden’s Ship Creek operation and the FlintHills North Pole Refinery. Both projectsimprove customer service and operating efficiency, whilealso enhancing safety by reducing operation risks andemployee exposure.

Conductor/Brakeman Ian Frazier and FiremanEngineer Gary Davis discovered a railcar with exces-

sive flat spots on the 4012N export coal train during aroll-by inspection at Cantwell. The damage was

significant and the two men initiated correc-tive action. Removing the defective carreduced the possibility of a catastrophicevent.

Carman Greg Hernandez noticed a prob-lem with a truck bolster on an inbound

Whittier train car, and he immediately noti-fied the yard to ensure the car would be

removed from the consist for repair. Thismeticulous attention to detail reduced

the possibility of a catastrophic event.

M I L E P O S T S

JANUARY-TO-MARCH SPOTLIGHT AWARDS

C R O S S I N G S : N E W S Y O U C A N U S E

LITTER PREVENTION GROUP HONORS ARRC

BIRTH ANNOUNCEMENTS• Assistant Controller Michelle Maddox and husband Korey welcomed daughter Taylor Dawn, born March 11. • Carman Apprentice Brian Webb and wife Michelle welcomed son Bryce, born March 22.

JAY BOGGESS,SENIOR MANAGER

OF MOTIVE

POWER (LEFT),AND DENNIS

BOUWENS,POWER DESK

MANAGER,ACCEPT THE

ALPAR BOARD

OF DIRECTORS

AWARD FOR 2007ON BEHALF OF

THE ARRC.

4ALL ABOARD

MARCH/APRIL2007

SAFETY

COORDINATOR

STEVE CORVEN,LEFT, PRESENTS

LOCOMOTIVE

ENGINEER CHUCK

TENNEY WITH THE

TRANSPORTATION

DEPARTMENT

SAFETY EMPLOYEE

OF THE MONTH

AWARD ON

MARCH 25.CONDUCTOR

DON WRIGHT,RIGHT, HAD

NOMINATED

TENNEY.

TThe Alaska Railroad Transportation Department hasimplemented a department-level Safety Employee of theMonth program. The program’s first award went toLocomotive Engineer Chuck Tenney for his response toa passenger train incident on March 4.

The train’s locomotive lost power at MP 260 (GoldCreek area) and shut down, cutting the head-end powerthat provided heat and electricity for the passengercoaches. Tenney started the baggage car generator torestore heat and power until a locomotive replacementcould arrive. This action kept passengers comfortableduring the 3-hour wait in sub-zero temperatures.

Department Safety Coordinator Steve Corvenimplemented the employee-of-the-month program atthe request of Bruce Pryke, Safety Department Directorof Rules & Operating Practices. According to Corven,“The purpose is simply to recognize employee contribu-tions to safety and show that the company cares and isaware.”

Conductor Don Wright nominated Tenney toreceive the first program award, a $25 Home Depot giftcertificate and a recognition award certificate. A copy ofthe award is shown in the department’s display case inthe Anchorage Operations Center (AOC). The pro-gram is funded by the supervisor’s local cost center.

Department employees who are interested in nomi-nating a fellow railroader can pick up a nominationform in the AOC’s Briefing Room, or download theform from the Intranet’s Employee Recognition section.Completed forms should be returned to departmentsafety co-coordinators Corven and Ian Frazier by emailor intra-company mail. Award decisions are made col-lectively by Pryke, Corven and Frazier.

For more information, contact Corven or Frazier atextension 3014 (Anchorage) or 6016 (Fairbanks). TheTransportation Department’s safety team hopes thattheir safety recognition program inspires similar pro-grams in other railroad departments. Team membersnoted that they are more than willing to share informa-tion on how they set up, run and fund a department-level program.

S I G N A L S : S P O T L I G H T O N S A F E T Y A N D S E C U R I T Y

TRANSPORTATION PRESENTS SAFETY AWARD

IIn February, the Alaska Railroad, Eklutna, Inc. and theNative Village of Eklutna signed an agreement thatwould transfer the 48-acre parcel of land near EagleRiver (which includes a rock quarry) to Eklutna, Inc.The agreement would also enable ARRC to haul $2million worth of stockpiled rock material previouslymined from the quarry.

According to Alaska law, any full conveyance(exchange, sale, donation, etc.) of Railroad land must beapproved by the Alasks State Legislature. Introduced bySenator Charlie Huggins and Representatives BillStoltze and Anna Fairclough, new legislation wouldauthorize the land transfer.

The move ends a long-running dispute over theproperty’s use as a quarry. The land was originallyhomesteaded and then held by the Bureau of IndianAffairs (BIA) as a Native school reserve. The AlaskaRailroad was authorized to develop a rock quarry on sitein 1944. In 1955, the BIA transferred the land to theRailroad.

Later, Eklutna, Inc. claimed the quarry site underthe Alaska Native Claims Settlement Act (ANSCA). A

1987 ANSCA settlement agreement allowed ARRC tocontinue to mine the quarry, but the Native Village ofEklutna took legal action to protect the area, which hasvalid historical and cultural significance. Resulting courtdecisions made it increasingly difficult to mine and usethe rock resources.

ARRC is currently developing an alternative rockquarry at Curry. With another source of track mainte-nance material available, ARRC is in a better position toresolve the Eklutna Quarry controversy. If the legislationpasses into law, the railroad will transfer ownership ofthe quarry to Eklutna, Inc. In turn, Native support hasenabled ARRC to obtain a permit to remove the exist-ing rock inventory and to use the rock on its capitalprojects.

The bill, which is making its way through the leg-islative committee structure, will also pave the way forARRC and Eklutna, Inc. to work on future land negoti-ations that will be beneficial to both entities. Editor’s Note: The May/June issue of All Aboard willinclude a final summary of the status of Railroad-relatedlegislation that was pursued during the 2007 session.

C R O S S I N G S : N E W S Y O U C A N U S E

RAILROAD, EKLUTNA END QUARRY DISPUTE

5ALL ABOARD

MARCH/APRIL2007

TThe Alaska Railroad has gathered a team of employeesto take a critical look at fatigue and safety in the ARRCworkplace. The ARRC Fatigue CountermeasureCommittee (FCC) will take up the issue and providesome guidance and recommendations on how to com-bat problems caused by workers who are overly tired.

The five-member FCC is co-chaired by ConductorMike Weatherell and Trainmaster Randy Burington.Additional members include Conductor/Engineer BrettBrown, Engineer Steve Cain and Maintenance-of-Way(MOW) Safety Coordinator Gene Lewis. Their com-mittee work will be in line with current nationalresearch by analyzing fatigue as a factor that contributesto workplace accidents.

The Alaska Railroad’s team has been asked to lookat how fatigue affects ARRC safety and employee quali-ty of life. FCC members will review current policies todetermine if improvements can be made and if so, how.

Statistics point to communication as key toimproving safety. “The Engineering department imple-mented safety training that has resulted in historic lowsin accident-incident-injuries ratios,” said Lewis. "Weask our members to recognize their own limitations, andwe remind them that management has empoweredemployees to exercise good judgment about their ownpersonal ability to work safely. When fatigue threatensthis, we ask only that our members communicate theirconcerns to their supervisors.”

The FCC has been tasked to look at every aspectof fatigue in the workplace. Recognizing that no em-ployee is immune, the team will review all work groupsand divisions, to ensure no position is overlooked.

“Maintenance-of-Way has long recognized thepotential risks associated with fatigue,” Lewis added.“Alaska’s uniquely short construction season has histori-

cally required a certain level of overtime to complete themission, so it is important that we recognize and imple-ment effective fatigue countermeasures.”

The FCC is organized similar to the Central SafetyCommittee, and will involve a commitment fromemployees in the North and South districts. The hopeis that the team recommendations will address factorsspecifically affecting ARRC employees.

“Fatigue issues are not new to any railroad,” saidAssistant VP of MOW Steve Pffeifer. “Better methodsof recognizing and minimizing fatigue is the right thingto do for the safety and well being of all employees.”

The FCC is in the process of mailing out to allARRC employees and their families a helpful guidetitled “Working Nights.” This guide is intended to be afirst step in educating employees and their families onmanaging a schedule that deals with a 24/7 operationsuch as the ARRC. The guide stresses the importance ofmanaging fatigue outside of the workplace.

The FCC recently attended a training session deal-ing with the “science” of fatigue. Members were able toapply lessons learned to ARRC real world situations.

“Already we have provided recommendations, suchas instituting a longer minimum rest period for ExtraBoard crews,” noted Burington. “Crews have gained anextra two hours of rest between shifts and now have a10-hour minimum of rest between shifts instead of theusual eight hours. Additionally, we saw the addition ofa Relief Service Assignment train crew in Anchorage.Crew members now know their scheduled work hoursand days off in advance. This offers a more predictableschedule, thereby lowering the fatigue potential.”

Future FCC recommendations will be forwarded toVP Operations/COO Matt Glynn for review. Adoptedrecommendations are posted on the intranet.

S I G N A L S : S P O T L I G H T O N S A F E T Y A N D S E C U R I T Y

COMMITTEE STUDIES WORKPLACE FATIGUE

2007SAFETYGOALS

• INJURYFREQUENCYRATE< 2.25

• SEVERITYRATE< 30.0

• TRAINACCIDENTRATE< 1.25

• VEHICLEACCIDENTS< 16

TThe Alaska Railroad’s annual pre-summer safety cam-paign — Smooth Start — began April 8 and ends May19. It is designed to smoothly and safely transition theentire company to summer’s high operations tempo.Smooth Start is targeted against the Railroad’s historical“spike” in employee injuries typically experienced inMay and June.

The goal of the six-week Smooth Start program isto: 1) identify hazards as passenger, gravel, industry andtrack maintenance operations begin, and then correct,protect or abate the hazards to reduce risk; and 2) getemployees re-accustomed to the increased pace of opera-tions during the summer months.

While Smooth Start aims to increase awareness anddecrease injuries and accidents in the spring, maintain-ing a safe working environment throughout the year is

equally as important. Together, Railroaders can ensurewe attain the following safety goals by the end of 2007:• Injury Frequency Rate (incidents per 200,000 man-

hours) — goal is rate of 2.25 or less and 18 or fewerincidents during the year. As of April 9, seven inci-dents have occurred in 2007.

• Severity Rate (lost days per 200,000 man-hours) —goal is rate of 30.0 or less. As of April 9, there are101 lost days per 200,000 man-hours.

• Train Accident Rate (reportable accidents per mil-lion train miles) — goal is 1.25 or less. As of April 9,there are 0 reportable accidents.

• Vehicle Accidents — goal is 20% reduction over2006, or 16 or fewer accidents. As of April 9, sevenaccidents have occurred in 2007.

S I G N A L S : S P O T L I G H T O N S A F E T Y A N D S E C U R I T Y

SAFETY: FROM SMOOTH START TO ’07 END

6ALL ABOARD

MARCH/APRIL2007

IIn December 2006, All Aboard connected withRailroaders who had worked the busy summer monthsin Seward to ask for their perspective as front-lineemployees. We posed the same questions that had beenasked of Fairbanks employees last fall.

1. How did things go during summer season 2006?2. What are challenges or opportunities in 2007? 3. If you were King of the Railroad for a day...?

LOUIS BENCARDINO, SEWARD DOCK MANAGER

2006: The freight dock improvedover last year. We upgraded propertynorth of the freight dock some 16acres, and we’ve already leased someof that acreage out. 2007: Things keep happening inSeward. Look forward to doing aneven better job for the railroad, aswe continue to improve our docksand develop our real estate. King: I would widen the freight dock 130 feet andextend it 800 feet (the dock is currently 200 feet wideby 620 feet long), and blacktop the dock as well

JACK GOODWILL, SEASONAL SUPERVISOR OFPASSENGER SERVICES

2006: Every year, the railroadmakes more improvements. Forexample, about three years ago, therailroad had only one ticket windowin the depot. It became apparentthat we needed more, and theyinstalled another window. Everyyear, the train gets a little longer, sowe asked for an extension of the platform, so that theadditional cars wouldn’t be pulling up next to graveland dirt. Last year, we asked for a 100- to 200-footextension, and they paved 600 feet for us. Thatimprovement has been a big plus. We pull into Sewardat 11:05 a.m. and a few tour charters start their tours at11:30 a.m. That doesn’t give much wiggle room for ourpassengers to get to the tour on time. It’s a constantchallenge to meet the schedule. 2007: The Railroad puts an emphasis on safety andhealth. If there is a mishap, there’s an effort to find outwhat needs to be fixed to make sure it doesn’t happenagain, or at least to try to identify a solution. I believethis will continue to be the case in 2007. King: The train keeps getting bigger, and the ridershiphas outgrown the depot facility. We definitely need toexpand the depot. Sometimes there’s 200 to 300 peoplein a facility that has a total capacity for 60. This is notso bad on a sunny day. People don’t mind waiting out-side. But a good percentage of the time, it may be rain-

ing, and there’s no place to go. Also, there’s only tworestrooms. We need a bigger building and more rest-rooms.

BILL DONLEY, SEASONAL STATION AGENT

2006: A couple of hiccups, butoverall the season went smoothlycompared to prior years. As thenumber of passengers continue togo up, the challenge is to providethe service while still providing apersonal level of care. That’simportant to the customer. 2007: Our biggest challenge iswe’re going to have to deal with the increase in rider-ship. The marketing guys have been doing their job…now we need to catch up. King: I’d expand the depot. There are times we have todeal with about 300 people, but there’s seats for only40. Most people are understanding, but it’s not a goodsituation. We could make it better.

JOHN GAULE, SECTION FOREMAN

2006: From April through rest ofsummer, I am the foreman of asurfacing gang. The season startis always busy… we try to getmany track projects done beforethe passenger season starts inmid-May, so there are a lot oflong hours and overtime. Oncethe passenger season was under-way, I was sent to Healy for a couple of months wherevery different challenges exist. That track section hasproblems. It lies over a fault line, and the ground has atendency to shift and drop.2007: I always look forward to track renewal. Eachcoming year, we’ve done considerable track upgrades.Getting the 70-pound rail replaced with 115-pound railon the sidings provides greater use of the siding. Theheavier rail just wears better and longer. Seward has alot of potential as an ice free port with year-roundfreight access. The Railroad owns quite a bit of land andso there’s a real opportunity for development. King: I would increase our manpower on the tracks sowe could get more accomplished. As it is, we have atwo-man crew, and a heavy equipment operator – onthe Seward Section, which stretches from the yard toabout 40 miles (near Hunter). Most every section coulduse at least three repairers, so I’d increase our crew byone member. I’d also like to see more equipment… tieinserters, ballast regulators. There are only so manypieces of equipment and if one is being used on a proj-ect we have to wait.

(See “Seward Voices...” on page 7)

S I D I N G S : E M P L O Y E E H A P P E N I N G S

SEWARD VOICES: FRONT-LINE OPINIONS

RICK DAHLGREN, HEAVY EQUIPMENT OPERATOR

2006: This season was pretty typi-cal… busy, as we’ve got a lot ofprojects going on. I’ve seen a lot getdone. Some projects started off slowa few years ago, but everyone hasgained experience and the projectshave gained momentum, and I’vejust noticed many projects are beingcompleted. 2007: There are some rumors of the projects that lieahead, and they sound exciting. That’s a big part of whyI like my job. We have some really challenging, butrewarding projects going on. King: An awful lot of tourists come to see the country,the beauty, the pristine environment. I think we need todo as much as we can to ensure visitors get to see this.The Railroad gets this. Since 2000, I’ve seen a lot ofprogress and that is great. For example, in my job, after

we get done excavating, grating, etc. then we need toput as much effort into putting nature back to the wayit was, or as close as we can, with refilling, reseeding.The railroad is doing this for the most part, and asKing, I’d make sure this continued.

DOUG SCHILLING, TRACK REPAIRER

2006: We got a lot accom-plished…redoing bridges and lay-ing track, cutting back vegeta-tion. Things keep getting betterevery year. We get a little moreequipment (loaders, graters,tampers) so we do less track workby hand. 2007: I look forward to moreupgrades to our section’s track and sidings (70-poundrail replaced by 115-pound rail) — it’s a big plus. King: We’d just continue to get more equipment eachyear, and like John, I’d add another person to our crew.

7ALL ABOARD

MARCH/APRIL2007

AA project to build a 14-story building at 36th Avenueand C Street created a significant demand for steel con-struction materials to be shipped to Anchorage. TheRailroad’s Marketing & Sales Division jumped at theopportunity to help Steel Brothers and Hyundai Steelsupply the material needed to erect the JL Tower.Transportation and Maintenance divisions followed upto execute the significant sale.

On March 26, the Queen Asia docked in Seward,carrying a load of 1,000-plus bundles of steel girdersand beams. Northstar Stevedoring unloaded the ship’ssteel, and re-loaded it onto 126 rail cars headed for theAnchorage Rail Yard.

In Anchorage, the Trailors-on-Flat-Car (TOFC)group offloaded the rail cars, transferring the steel totruck trailors for the final move to the construction siteat 36th and C. Each railcar equaled 3-4 trailer loads.The railcar-to-truck-to-site transfer took place betweenMarch 28 and April 6. By all indications, this fairlycomplex, resource-intensive task went smoothly, thanksto a concerted effort among the three ARRC divisions.Transportation made three trips to Seward to retrieve all

the cars. A flurry of railcars moves through switches forloading and train building occurred safety and profes-sionally. Likewise, Maintenance crews ensured the trackswere well-prepared to accommodate each move. Finally,the TOFC group leased another large forklift to offloadthe steel in Anchorage and TOFC crews worked manyextra hours to ensure timely transfer to the constructionsite.

TOFC Foreman Tony Sansone remained at thefront line, keeping crews apprised of safety precautionsand operational expectations. TOFC crew involved withsteel offloading included Larry Burton, David Haag,Craig Schulz, Warron Bainbridge, John Leis, Joe Burtonand Michael Zeznock. Meanwhile, crew membersRobert L. Smith, Jr. and Bobby Hallman assisted withequipment tie down among other tasks.

“I am very proud of Tony and the crew for thecommitment to the ARRC and each other to make thismove happen safely,” said Track & EquipmentSupervisor ClayMurphy.

C R O S S I N G S : N E W S Y O U C A N U S E

ARRC MOVES STEEL SEWARD-ANCHORAGE

LEFT TO RIGHT:

IN SEWARD, STEEL

ABOARD THE SHIP

QUEEN ASIA IS

UNLOADED.

AT THE CON-STRUCTION SITE

IN ANCHORAGE,STEEL IS USED TO

ERECT THE JLTOWER PROJECT.

IN THE ARRCANCHORAGE RAIL

YARD, STEEL IS

UNLOADED FROM

RAIL CARS AND

RELOADED ONTO

TRUCK TRAILORS.

(PHOTOS

COURTESY OF

CLAY MURPHY)

SEWARD VOICES...

HHuman Resources recently consolidated informationon training opportunities intoone comprehensive and con-venient section on the ARRCemployee intranet. Dubbed theARRC Learning Depot, thenew tool allows employees to:

• Access the QuarterlyTraining Calendar

• Read Pat Gamble'sWelcome Letter

• Review Curricula for Core,Customer Service,Communications, Safety andManagement Training

• Obtain course descriptions • Access the Education

Assistance Policy and forms • Enroll in a course via email

This is just the beginning, according to PaulaDonson, ARRC Training & Development Manager.The Learning Depot is a work-in-progress, with plans to

continue to expand and develop contentover the next several months. Future addi-tional resources that may added include aLending Library, a Reading Room, and alink to employee training transcripts.

Check it out! Get to the HumanResources page by clicking on QUICKLINKS, then click on HUMANRESOURCES. On the HR page, scrolldown to the TRAINING heading inthe right-hand column, and under thisis a link to ARRC Learning Depot.

“The professional development ofall employees is an important concernto the Alaska Railroad,” saysPresident/CEO Pat Gamble in hiswelcome letter. “As we move forward

with our business plans and objectives, it iscritical to make sure that every worker has the rightskills and the right training to do their job.”

For more information, or to forward commentsabout the new online training access tool, contactDonson by calling 265-2531 or by emailing to donsonp@akrr.com.

8ALL ABOARD

MARCH/APRIL2007 C R O S S I N G S : N E W S Y O U C A N U S E

HR INITIATES ONLINE “LEARNING DEPOT”

Core: Ethics/HR

500.0

100150200250300350400450500

1000

Communication Supervisory Safety Developmental

NU

MBE

R O

F EM

PLO

YEES

TRA

INED

HUMAN RESOURCES-ADMINISTERED TRAINING — 2005 VS. 2006 COMPARATIVE1500

ON MARCH 23, A NEW LABOR CONTRACT

WAS SIGNED WITH THE CARMAN’S DIVISION

OF TRANSPORTATION COMMUNICATION

INTERNATIONAL UNION, FAR NORTH LODGE

6067 (TCU). THOSE SIGNING INCLUDE

ARRC PRESIDENT/CEO PAT GAMBLE, TCUCHIEF SPOKESPERSON GREG HERNANDEZ

(LEFT), AND TCU NEGOTIATOR RICHARD

SARAKUS (RIGHT). THE THREE-YEAR LABOR

AGREEMENT PROVIDES FOR NEW WAGE RATES

AND OPERATING RULE CHANGES.

ARRC AND TCU SIGN NEW LABOR CONTRACT

134

496

1565

38

240 257281

444

1,139

20062005

9ALL ABOARD

MARCH/APRIL2007

AActions speak louder than words. Nothing more true

than this statement. Two new assistant chief dispatchers,one new train dispatcher… not one internal employee. Idon’t know how many internal people were interested in thechief position, but I do know there were many candidatesfor the train dispatcher position, and some that, oddlyenough, didn’t get called for an interview – even thoughthey had been interviewed for the position before.

This corporation breeds apathy, as a symptom of itslack of leadership. If you want your decent employees to rotaway to the attitude of indifference, congratulations, you’vebeen on that track for a while, and succeeding, not veryadmirably — Anonymous Rail Fan

Dear Anonymous Rail Fan — Looks like somebody got up on the wrong side of

grumpy this morning. But since you buried a goodpoint in your venting, I’ll address it. I agree that“actions speak louder than words.” That is, in fact, thevery basis of what is called “competition.” In sports, theAll Stars have to compete head-to-head with the walk-ons for each team position. Most of the many decentemployees I know do not rot away or succumb to apa-thy while waiting for a handout, as you accuse them of.When they see what they want, they go after it. Theycompete. But in competition there is only one winner.

I have to disagree with your observation that theRailroad lacks leadership. I’m not talking about myselfas President/CEO or even our Board of Directors. I’mtalking about the men and women who hold positionsof formal and informal leadership throughout the cor-

poration. Based on our company’s performance in near-ly every area that can be measured, I can only concludethat the vast majority of our front-line leaders are verycapable individuals. Because we are an organization ofhuman beings, of course there are going to be a few insupervisory and management positions that need tohone their leadership skills, and they do that as theymove up.

That’s why, as a company we are investing morethan ever in training that will assist up-and-comingsupervisors and managers to become even more profi-cient at their essential assignment… toguide, motivate and encourage theemployees that fall under their super-vision. Last year alone, dozens ofemployees took the time to attendleadership-building courses, including: • What Every Supervisor Wants to

Know (40 people attended)• Communicating for Results (27)• Conflict Management (37)• Leadership that Works (27)• Interviewing & Selecting ARRC

Employees (95)• Running Productive Meetings (14)

I hope this response helps frame abetter opinion of our company.

I H E A R D I T T H R O U G H T H E R A I L L I N E

ARRC PROMOTES COMPETITION, LEADERSHIP

HAVE A

QUESTION? SEND IT VIA

SNAIL MAIL TO:“I HEARD IT

THROUGH THE

RAIL LINE” P.O. BOX

107500,ANCHORAGE, AK99510-7500

INTERNAL MAIL

PHONE (X2589)

OR EMAIL TO:ASKPAT@AKRR.COM.

TThe Alaska Railroad Corporation’s2006 Annual Report offers anaccount of a year that exceededexpectations and capped off awell-executed five-year plan.

The 2006 report’s theme —Engineered Success — could not bemore fitting. Certainly, the effortsof our dedicated workforce engi-neered positive returns in severalbusiness sectors. Passenger servicesgenerated record revenues, our netincome significantly outperformedbudget expectations and we againmarked our safest year ever. Theyear’s strong financial outcome sawour assets grow to $714 million…nearly double our $367 million assetbase in 2002 and a far cry from the$22.3 million purchase price in 1984.

The Alaska Railroad earned ahealthy $10.4 million in net income for2006 surpassing our budget forecast by$2.8 million. Gross revenues toppedout at $148.9 million with $138.5 mil-lion in expenses.

Headlining the list of financialhighlights was the Railroad’s entry intothe public debt market. For the firsttime, the Railroad issued tax exemptbonds, using funds to accelerate atrack and bridge rehabilitation pro-gram to increase safety, reduceexpenses, and enhance capacity andrailroad speed.

The annual report is posted onwww.AlaskaRailroad.com. Printedcopies will be available at the end of

April. All Alaska Railroad employees will receive acopy in the mail.

C R O S S I N G S : N E W S Y O U C A N U S E

ARRC RELEASES 2006 ANNUAL REPORT

10ALL ABOARD

MARCH/APRIL2007

BELOW: THIS PIE

CHART SHOWS

HOW SURVEY

RESPONDENTS

FELT ABOUT THE

IMPORTANCE OF

HAVING A CAR

AVAILABLE IN

ANCHORAGE

DURING THE

WEEK.

IIn the last issue of All Aboard, ARRC President & CEOPat Gamble tackled the topic of commuter rail service.As part of this editorial, employees were asked to com-plete a survey to help gauge interest in the possibility ofcommuter rail service primarily between Anchorage andthe Mat-Su Valley. Fifty-four (54) employees responded.

110 employees live in the Eagle River / Chugiak /Peters Creek area, and 20 of them turned in a survey.Three-quarters of these respondents noted they woulduse commuter rail. Of the 102 ARRC employees resid-ing in Wasilla, 13 responded, with 11 indicating theywould ride a commuter train to and from work. Of the48 employees living in Palmer, nearly a third (15employees) responded, with all wanting the opportunityto use commuter rail.

A sticking point for some was vehicle availabilityonce they got into Anchorage. This was very important(24%) and somewhat important (44%) to the majority.The need to facilitate day care was cited by severalrespondents. “I have kids in daycare in Palmer. In caseof an accident or illness, I would need to be able to getto them. Would there be multiple schedules?” wrote oneemployee. Another asked if there would be a secureplace to park a car for use in Anchorage.

“People can actually manage without vehicles;somehow it works everyday in major cities across thelower 48 and has for years,” observed one respondent.“Perhaps people will get creative, such as vehicle timesharing where they can reserve a vehicle only when theyneed to use it.”

Not surprisingly, the amount that employees wouldbe willing to pay for commuter rail differed somewhatbetween those living closer to Anchorage and those liv-ing farther away. Eagle River/Peters Creek respondentssaid they would pay from $3 to $10, with the medianbeing $5.40 per day. Mat-Su Valley residents’ pricesranged from $4 to $22 per day, with the median pricebeing $8.93 per round-trip. When added together, themedian for all respondents was $7.75 per day.

Two employees mentioned the current benefit thatallows employees to ride a regular train at no cost (space

available). They wondered if this might equate toemployees receiving discounted or even free travelaboard a commuter train.

Although the survey was directed primarily atemployees living between Eagle River and Wasilla orPalmer, five employees from Anchorage and one fromGirdwood responded as well. Two-thirds of theAnchorage resident respondents indicated they werethinking of a move to the Mat-Su Valley and commuterrail would be a big plus in making that decision.“Currently we live in Anchorage, but would think aboutmoving to the Valley if there were a commuter train,”wrote one employee on her survey.

Two Anchorage residents looked forward to com-muter rail service within the city. As one respondent putit, “I reside on the west side near the airport. I wouldvery much consider a Commuter Train as one of myforms of travel through and around Anchorage.Although People Mover covers most, if not all, of theAnchorage area, I can see a viable rail link betweendowntown and the west and or south side of Anchorageas a more direct form of travel that avoids all the trafficsnarls that currently exist and more to come in theyears ahead.”

There were other suggestions that came from sur-vey comments. “It would be absolutely wonderful tohave an espresso vendor that also sells fresh pastries,microwaved breakfast burritos and sandwiches, fruit andyogurt… a limited selection of quick breakfast foods…and perhaps copies of the daily newspapers,” said oneemployee who is considering a move to the Mat-Su.

This employee also suggested that, “It would behandy to have a shuttle to downtown restaurants forlunch that runs very frequently. Maybe at 11:05, 11:35,12:05, 12:35 from the Railroad and 11:50, 12:20,12:50, 1:20 from town square.”

Several employees noted that transportation to andfrom outlying buildings bears consideration. And twoemployees with experience in commuter rail operationsin other areas of the country both offered to assist inmaking commuter rail in Alaska a reality.

S I D I N G S : E M P L O Y E E H A P P E N I N G S

SURVEY: MANY WOULD USE COMMUTER RAIL

11ALL ABOARD

MARCH/APRIL2007

2.46

(continued from page 1)

work order is open or closed, and the histo-ry of repair. “We’ve never had this before.Recording and tracking repair histories willallow our department to more easily identifyfailures, recognize repetitive problems, schedule andprioritize work, and ultimately to improve our level ofservice,” explained said Facilities Program Manager PaulFarnsworth.

“Two exciting advantages come from our newfacilities maintenance program,” said Farnsworth. “First,is universal access. From an employee in Portage toRailroad President Pat Gamble, anyone can easilyrequest that a building problem be fixed.”

The second advantage is an effective preventivemaintenance (PM) program. “The railroad has neverdone PMs on railroad facilities. Regular building main-tenance — or preventive maintenance — helps conserveboth energy and materials over the life of the building.

It is essential to extending the life of a buildingor specific system. That minimizes costs in thelong term,” explained Farnsworth. “Also,with a solid PM program, we can identifyproblems ahead of time. The result is thatfewer trouble calls need to be placed by the

people working in our buildings.”Bottom Line: Facilities services is important

to the overall success of the Railroad. Operatingnewer buildings has become more complex due toadvanced technology. The Railroad also faces challengesposed by many aging buildings, some of which have his-torical or architectural significance.

It became clear that ARRC needed a team focusedsolely on facilities maintenance. Created as a supportdepartment in 2003, Facilities went to work developinga more streamlined process for building maintenance.

“The Facilities Team is excited about our challengesand looks forward to working with other departmentsto modernize the way the Railroad takes care of itsbuildings and infrastructure,” Farnsworth concluded.

FACILITY FIXES...

Paul Farnsworth joined ARRC as Facilities ProgramManager three years ago. He oversees all facets ofARRC’s facilities program, from property acquisition,building construction and demolition; to facility main-tenance and environmental compliance; to departmentbudgeting, planning and development. Previously, for14 years he managed construction and environmentalcompliance for Mapco/Williams, including develop-ment of a facility maintenance tracking system.Originally hailing from Arizona, Farnsworth is alicensed electrician and was a general contractor inAlaska and Arizona. He served on the AnchoragePlatting Board for six years.

Anabel Chavez Leigh became Manager of FacilitiesContracts in December 2006. As such, she managesadministrative buildlings in Anchorage, including HQ,AOC and depots. She oversees external contracts (jani-torial, landscaping, fire safety, etc.), utilities, andemployee relocation. Leigh joined the Railroad inDecember 2000 as an administrative/real estate techni-cian. In 2003, she became a facilities technician. Priorto ARRC, Leigh worked freelance in computer graphics,and managed an Anchorage restaurant. She is certifiedin facilities management through the Building OwnersManagement Institute, and pursued computer science atUAA for two years. Leigh arrived in Alaska in 1994.

Chris Corbeil is the Facility Maintenance Supervisor,and is responsible for the maintenance of railroad-owned buildings from Seward to Fairbanks. A certifiedjourneyman electrician, Corbeil comes to the positionwith six years experience as a member of the Railroad’sAnchorage-based Bridges & Buildings (B&B) crew.

Prior to joining the railroad, Corbeil was employedseven years by VECO working on the North Slope, and13 years for Alaska Village Electric working in BushAlaska. Born in California, Corbeil moved to Alaska 41years ago.

Michael Philp joined the Alaska Railroad as FacilitiesProject Engineer on April 16, 2007. As such, he pro-vides project management and engineering support forproperty improvement, facility remodel, construction,maintenance and development projects, as well as plan-ning and development of ARRC lands and facilities.Previously, Philps spent seven years as an engineer withSiemens Building Technologies. Philps moved with fam-ily from Everett, Washington to Alaska in 1992, and hespent his high school years and college summers inSeward. Philps earned a bachelor’s degree in mechanicalengineering from the University of Alaska Fairbanks.

Rosemary Redmond is a Facilities Technician whosupports the department’s facility management andmaintenance functions. Redmond came to the Railroadas a temporary hire in 2001. In September 2002, ARRChired her as an administrative assistant in the PETSdivision. She was promoted to a Project Managementsupport technician in January 2007; and Redmondaccepted the Facilities job in March 2007. Prior toARRC, Redmond worked as a paralegal and offeredadministrative/project management support for stateagencies and legal firms with an interest in real estate.Born and raised in Alaska, Redmond is an accomplishedartist, and has earned bachelor’s and master’s degrees infine arts.

MEET THE FACILITIES MAINTENANCE TEAM

ANABEL LEIGH

PAUL FARNSWORTH

CHRIS CORBEIL

MICHAEL PHILP

ROSEMARY REDMOND

12ALL ABOARD

MARCH/APRIL2007

(continued from page 1)Marking it’s seventh year, the typically sold-out Easter Trainmade a four-hour round-trip between the Ship Creek Depotand Girdwood on April 7. Along the way, two dozen volun-teers (primarily tour guides) kept 500-plus passengers busywith crafts, holiday cheer, and photo-opportunities with theEaster Bunny, played to uncanny perfection by LyndseyRuhl.

Lyndsey is one of several “battle-hardened” volunteersthat help out every year, said a grateful Passenger OperationsSupervisor Graham Houle, who organizes the event. “I canalways count on Robert Russell from PassengerServices and Rebecca Vickery from PETS aswell.”

It is a lot of work, said Houle. For example,no glue or scissors are allowed on board, so vol-unteers must prepare craft projects so they areready to go, and stuff them into baggies for easydistribution on the train.

“It’s worth it, though,” noted Houle. “Likethe December Holiday Train, the Easter Trainoffers a great public relations opportunity. It’s allabout giving the local Alaska residents an excep-tional experience aboard the Alaska Railroad.”

If passenger comments are any indication,that’s exactly what the 2007 Easter Train delivered(See top of right-hand column):

EASTER TRAIN... • The entire experience was great.The first time on a train for my sonand I, and we loved it.”

• Great Easter Bunny! Took lots ofnice pictures. Great raffles too!”

• It was great!! We'll definitely beback next year!”

• Family atmosphere! Great staff !!”FAR RIGHT: TOUR GUIDES

SAMANTHA

NOVAK AND

KERRY KUBLY

ENGAGE. (PHOTO BY

STEPHEHIE

WHEELER)

PHOTO BELOW

COURTESY OF

PASSENGER

SERVICES.

FRONT ROW, L-R (KNEELING): GRAHAM HOULE, SAMANTHA NOVAK, LENA PAGE, DANA PETRARCA, KC HOSTETLER,ZEN ARMITSTEAD, JANIE FERGUSON, NICOLE EDWARDS AND SARAH HAUTH. BACK ROW, L-R: TUCKER REMLEY, LIBBY

JACQUES, SEAN RUDD, ALICIA REANDO, KERRY KUBLY, WIL BROWN, BILLY HARBOUR, D’ANA CASTRO, THURSTON

GRAY, JENNIFER LORENZ, KYLE STANGL, ALEKS FLEENER, ANTHONY LEWIS, DEBBE EBBEN AND HEIDI LYON. EXCEPT

HOULE AND REMLEY, THESE EASTER TRAIN VOLUNTEERS ARE TOUR GUIDES — SOME ARE STUDENTS FROM THE TOUR

GUIDE CLASS GRADUATING APRIL 18 (SEASON’S HIRING NOT YET DETERMINED); OTHERS ARE BACK FOR A SECOND YEAR.

13ALL ABOARD

MARCH/APRIL2007

OC R O S S I N G S : N E W S Y O U C A N U S E

PREMIER DINER TRAIN: GOURMET ON RAILSOn Saturday, April 21, the Alaska Railroad and celebritychef Al Levinson teamed up to offer Alaska’s first gour-met-by-rail experience. The result — sumptuous cuisineand superb surroundings aboard the premier SpringDiner Train with Chef Al.

Passengers boarded ARRC’s custom-made first-classdouble-decker dome cars in Anchorage, beginning afour-and-one-half-hour cruise along to Willow (due toavalanche danger along Turnagain Arm, the originalPortage destination was changed to go north).

Known as Chef Al, Levinson is the owner of theKincaid Grill and executive chef of City Diner,Anchorage's hottest new restaurant. The renowned chef

first tempted Diner Train guests with an assortment oftantalizing hors d’oeuvres while riding atop the doubledecker. About an hour into the trip, the 74 guestsmoved to the dining car where they were first servedwith a delicious crab-and-shrimp cocktail appetizer.This was followed by a creamy onion soup. The mainentree was a marinated and slow roasted savory beefwith mashed potatoes. The evening’s dining experienceculminated with a pineapple upside down cake.

“The Alaska Railroad is always looking for new andinnovative trains that provide a truly Alaskan experi-ence,” said Susie Kiger, Director, Passenger Sales andMarketing. “In this case, we complemented a first-classmeal with first-class service.”

The Railroad is considering making the Diner Trainevent a new annual tradition.

LEFT PHOTO:CHEF AL (RIGHT)AND CHEF JENS

GREET DINER

TRAIN PASSEN-GERS AS THEY

COME ABOARD.

BELOW: SOUP IS

SERVED IN THE

DINING CAR.

(PHOTOS BY

STEPHENIE

WHEELER)

TThe Alaska Department of Environmental Conservation(DEC) denied ARRC’s permit application to use chemi-cal weed control as part of a comprehensive vegetationmanagement plan. DEC cited concerns over the select-ed herbicides in relation to use near water resources.

“The recent decision by DEC is a clear and con-cise document,” said President/CEO Pat Gamble. “Ittells us that we need to do more homework.”

Without the permit, the railroad faces the upcom-ing growing season with the same limited arsenal oftools to combat weeds, shrubs and trees that damage thetrack bed, which raises the risk of derailment and envi-ronmental impacts resulting from a derailment. Over-grown vegetation also endangers employees, byobstructing line of sight and covering trip-and-fall haz-ards on the ground.

“We had a compelling reason to seek a permit toenhance our vegetation management plan – safety…safety for our employees, customers and neighbors,” saidGamble. “That hasn’t changed. A serious vegetationproblem is still on the front burner.”

Gamble conceded that the permit process accom-plished what it was supposed to. “One thing we can alltake away from this long and in-depth application peri-od is that the system worked,” said Gamble.

“Based on sound scientific studies, they have statedwhich weed killer can and cannot be used, as well as theapplication challenges we need to address in a futurepermit application. That is their job and they did it,”Gamble continued. “It is now up to us to do our home-work again. We still need to kill weeds and will use anymethod allowed by law.”

C R O S S I N G S : N E W S Y O U C A N U S E

DEC DENIES CHEMICAL WEED KILL PERMIT

14ALL ABOARD

MARCH/APRIL2007

LLate last year, each employee was notified by mail thatan updated 5-year Strategic Plan was available forreview. President & CEO Pat Gamble has encouragedeach employee to become familiar with this guidingdocument, which condenses corporate history, chal-lenges and opportunities, mission, goals and specificobjectives in 25 compact pages.

The Strategic Plan is comprised of six sections: 1 President’s Overview (introduces Pat Gamble’s

intent for the Alaska Railroad)2 Corporate Foundation (history, governance,

businesses, workforce, finances)3 ARRC Today (quick facts, charts and statistics

on our operations)

4 ARRC Milestones (objectives, goals, forecasts,timelines, and budget)

5 Landscape (hot topics and issues)6 5-Year Strategic Program (specific initiatives,

project and programs) Beginning with the November / December 2006

issue, All Aboard began tackling each section of the planin concurrent issues. The President’s Overview andCorporate Foundation sections have been published,and the “ARRC Today” follows in this issue. The fullstrategic plan is posted on our internal web site (there isa link to the Strategic Plan on the home page) Hardcopies are available by contacting Bruce Carr, Directorof Strategic Planning, at 265-2468.

C R O S S I N G S : N E W S Y O U C A N U S E

STRATEGIC PLAN INSIGHT: #3 ARRC TODAY

Purchase Price (January 5, 1985)

Paid to federal government . . . . . . . . . . . . $ 22.3 m Start-up costs & contributed capital . . . . . $ 11.9 mTotal Investment-State of Alaska . . . . . . . . $ 34.2 m

Organization (following State purchase)

• Independent corporation owned by the State

• Managed by a seven-member board of directors appointed by the Governor

• Mandated to be self-sustaining, responsible forall of its own financial and legal obligations

Operating DataMiles of main line . . . . . . . . . . . . . . . . . . . . . . . . 467Miles of branch line . . . . . . . . . . . . . . . . . . . . . . . . 77Miles of yards and sidings . . . . . . . . . . . . . . . . . . 107Total miles of track . . . . . . . . . . . . . . . . . . . . . . . . 651Freight cars (owned & leased). . . . . . . . . . . . . . 1,643Passenger cars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Locomotives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Operating Statistics (Jan. 1 - Dec. 31, 2006)Passenger ridership . . . . . . . . . . 525,293 passengersFreight tonnage . . . . . . . . . . . . . . . 7.67 million tons

Financial Statistics (Jan. 1 - Dec. 31, 2006)Total Assets . . . . . . . . . . . . . . . . . . . . . . . . $ 714 m Total 2006 revenues . . . . . . . . . . . . . . . . . . $ 148.9 mTotal 2006 expenses . . . . . . . . . . . . . . . . . . $ 138.5 m2006 net income . . . . . . . . . . . . . . . . . . . . . $ 10.4 mBudgeted 2007 net income . . . . . . . . . . . . $ 11.5 m

Employees (December 31, 2006)Number of year-round employees . . . . . . . . . . . . 777Average years of service . . . . . . . . . . . . . . . . . . . . 10.6Average age . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.05Male . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636Female . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

Unions — Most employees belong to five unions:United Transportation Union . . . . . . . . . . . . . . . . 137Transportation Communication Union . . . . . . . . . 45International Association of Machinists . . . . . . . . 62American Federation of Govt Employees. . . . . . . 303American Train Dispatchers Department . . . . . . . 10

Alaska Railroad “Quick Facts”

Alaska Railroad Organizational Chart

Governor Sarah PalinState of Alaska

Alaska Railroad CorporationBoard of Directors

ARRC President/CEO Pat Gamble

VP Ops/Chief OperatingOfficer Matthew Glynn

VP Real Estate & FacilitiesJim Kubitz

VP Markets-Sales-ServicesSteve Silverstein

Executive VP CorporateAffairs J im Blasingame

VP Finance/Chief FinanceOfficer Bill O’Leary

VP Projects-Engineering-Tech-Signals Eileen Reilly

VP Legal/General CounselPhyllis Johnson

15ALL ABOARD

MARCH/APRIL2007STRATEGIC PLAN: ARRC TODAY

Bottom LineNet Income Comparison — 2006 vs. 2007

22000077 BBuuddggeett 22000066 AAccttuuaall(in millions of dollars)

Operating Revenue $ 116.96 $ 111.99 Operating Expense (119.89) (114.36)Net Income from Operations (2.93) (2.37)

Real Estate Income 11.98 11.82Real Estate Expense (5.17) (5.31)Net Income from Real Estate 6.81 6.51

Interest Income/Expense (0.77) (0.93)

Net Income Before Preventive Maintenance Reimbursement 3.11 3.21

Preventive Maintenance Reimbursement 8.42 7.24______ ____________ ______

Net Income $11.53 $ 10.45

Operating Ratio * 0.95 0.96

iinn mm

iilllliioo

nnss oo

ff ddooll

llaarrss

$$00..00

$$11..00

$$22..00

$$33..00

$$44..00

$$55..00

$$66..00

$$77..00

$$88..00

$$99..00

$$1100..00

$$1111..00

$$1122..00

$$1133..00

6.81

11.53

3.94

6.51

10.45

OperatingNet Income(includes PM and Interest)

Real EstateNet Income

Total NetIncome

22000077 BBUUDDGGEETT 22000066 AACCTTUUAALL

4.72

** Operating Ratio is Operating Expense divided by Operating Revenue, withOperating Expense reduced by Preventive Maintenance Reimbursement.

Safety

Freq

uen

cy =

In

cid

en

ts x

200,0

00 /

Man

ho

urs

00

11

22

33

44

55

66

77

88

99

1100

1111

1122

1997

11.63

1998

9.28

1999

7.92

2000

5.97

2001

7.01

2002

4.17

2003

3.64

2004

3.74

2005

3.67

2006

2.46

2007goal

2.25

Productivity

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Do

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$100

$120

$140

$160

$180

Revenue Per Employee

Total Revenue to Full Time Equivalent(FTE)Employee

ARRC Injury Frequency

AALLABOARD ALLABOARD

Alaska Railroad CorporationP.O. Box 107500

Anchorage, AK 99510-7500AlaskaRailroad.com

PRSRT STDU.S. POSTAGE PAID

ANCHORAGE, AK

PERMIT NO. 500

Alaska Railroad Train Engineer Larry Carbaugh snappedthis photo of Conductor Brett Brown and Brakeman DougPrice posing as human popsicles during a cold snap inFairbanks at the beginning of January. The three menwere working on the Fairbanks Airport Branch in tempera-tures that dropped to minus 50 (and a bit below that!) dur-ing that week.

“NOTHING was going right as NOTHING isdesigned to work in that kind of cold,” said Brown.“Everything, including us, was cold and stiff! To makematters worse, we couldn’t take as many warm-up breaks aswe would have liked because the frost that was developingon the outside (and inside) of our gear melted every timewe went inside. This made us more wet and cold when weheaded back out again.”

PHOTO SUBMISSIONS AREELIGIBLE FOR $200 DRAWING!!

At the end of each calendar year, All Aboard will put thenames of all employees who have submitted a photo during theyear into a “hat” and draw one to receive a $200 gift certificate.

To submit a photo, mail it to Stephenie Wheelervia company mail or email digital photofiles to wheelers@akrr.com. If using a dig-ital camera, be sure photos are taken inthe “fine” or “high resolution” setting. Lowresolution photos will be too blurry for theprinted All Aboard newsletter.

TThhee nneeww AAnncchhoorraaggee OOppeerraattiioonnss CCeenntteerr nneeaarrss ccoommpplleettiioonn.. ((pphhoottoo bbyy TTiimm TThhoommppssoonn))

P H O T O S O N T H E R A I L

GREAT SHOT!

RAILROADERS IN FAIRBANKS POSE AS HUMAN POPSICLES

DURING A COLD SNAP IN FAIRBANKS IN EARLY JANUARY. (PHOTO SUBMITTED BY LARRY CARBAUGH, TRAIN ENGINEER )

TAKE ASHOT!