Port Mackenzie Rail Extension Project

Frequently Asked Questions

Now that the Matanuska-Susitna Borough (MSB) and the Alaska Railroad Corporation (ARRC) project team is taking on a background role during the formal environmental review process, we encourage you to participate and stay informed via the Surface Transportation Board’s Port MacKenzie Environmental Impact Statement Web site, www.stbportmacraileis.com, where you’ll find current project information, contact information, schedules and ways to comment during the formal environmental review process.

NOTE: The Frequently Asked Questions below were presented during the MSB and ARRC preliminary environmental and engineering analysis in 2007.
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Q. Why do we need an extension to Port MacKenzie?

A. The extension will provide bulk transport of goods and commodities between Port MacKenzie and Interior Alaska. This will achieve the Borough’s vision for the Port as a multi-modal economic engine for both the Matanuska-Susitna Borough and the State of Alaska and support the Alaska Railroad Corporation’s mission of fostering the development of Alaska’s economy by integrating railroad development with rail belt community development plans.

Q. Who is responsible for the project?

A. The Port MacKenzie Rail Extension Project will be owned and operated by the Alaska Railroad Corporation (ARRC). The Borough, as the owner and operator of Port MacKenzie, is the project sponsor. A Memorandum of Agreement has been signed between the two entities, establishing “co-management” in the study of this project. Because it involves construction of a new rail line, the project will require federal approval. The Surface Transportation Board (STB) is the federal agency responsible for completing an environmental document and for ultimately approving the new route.

Q. This project has been considered since the 1970s. What has changed?

A. Over the past 30 years, several entities have considered construction of a rail connection to a port in the Mat-Su Borough. Port MacKenzie is now a port with ocean-going commerce and a road, soon-to-be-paved, but still requires rail to expand its development. Marine ports don’t reach their full potential unless they are multi-modal.
The most recent and detailed of these studies was completed in 2003 (Matanuska-Susitna Borough Rail Corridor Study) which culminated in the recommendation of a route that would ultimately connect to the Alaska Railroad near Willow. The Mat-Su Borough has been the fastest growing area of the State for the past 16 years. Conditions have changed since the project was first considered. This growth along with new technical data make it critical to take a fresh look at the various alignments. The Borough and the Alaska Railroad are partners in this project. The Borough has asked the Alaska Railroad to prepare and submit an application to construct and operate a railroad between their rail system and Port MacKenzie. This is beyond a planning action and represents a specific request to construct the rail line. Attached to it will likely be explicit conditions under which such a railroad would be constructed. An application of this type requires an environmental document (either an Environmental Assessment or Environmental Impact Statement) as required by the National Environmental Policy Act or NEPA. The environmental document will be started sometime after January of 2008 and will be another way for you to comment. The environmental document is carried out by the federal Surface Transportation Board. Right now, we’re gathering as much information as possible in preparation for the application before the STB and the environmental document, which will follow.
Because of the finality associated with this action, the Borough and the ARRC felt it prudent to take a final review of all the studies and information previously assembled to ensure that the route proposed to the STB be the best possible.

Q. Where and when will there be public involvement opportunities?

A. There will be many opportunities to participate in the Port MacKenzie Rail Extension Project. ARRC and the Borough are currently gathering public comment, which will be considered prior to the formal application to the STB. The STB will also hold formal public scoping meetings to gather additional information on community concerns and issues regarding this project. The public’s involvement will be critical in identifying possible project impacts. Additional opportunities will include a web site and submission of comments to the project team.

Q. What are the benefits to the Borough? 

A. The rail extension could potentially open new markets for minerals and stimulate the creation of new jobs. The rail could also provide long-term benefits by lowering property taxes (through the infusion of statewide and local economic opportunities).

Q. Was the rail extension project included in the Borough’s Long Range Transportation Plan?

A. The rail extension from Port MacKenzie to the mainline was discussed at many of the public meetings held as part of the Borough’s Long Range Transportation Plan (LRTP) project. As a consequence it was added to the Official Streets and Highways Plan Map in the LRTP showing it as a future project. Communities undergoing local comprehensive planning processes may consider including discussion of the rail extension project as part of the planning effort.

Q. What happens to the existing rail line?

A. There will be no changes to the existing line between Anchorage and Fairbanks. The proposed extension will provide access to Port MacKenzie.

Q. What are some of the issues that will be considered?

A. The Surface Transportation Board, the lead federal agency responsible for conducting an environmental review of the Port MacKenzie Rail Extension Project, will study a number of issues and concerns including:

What other concerns or issues do YOU have about the project? Go to www.portmacrail.com to provide comments.

Q. How will the project be funded?

A. The State of Alaska appropriated $10 million during the 2007 legislative session to studies that will give a more thorough picture to the Surface Transportation Board. The studies will accompany an application for a license for constructing and operating the rail line. This includes alternative analysis, preliminary engineering, National Environmental Policy Act (NEPA) environmental documentation, and a financial feasibility study.The final design and construction of a rail extension to Port MacKenzie is estimated to cost $300 million (2007 dollars). The Matanuska-Susitna Borough and the Alaska Railroad will jointly conduct a financing study to assess options for funding the project. User fees could play a role.

Q. When will the project be completed?

A. The project sponsor (MSB) and applicant (ARRC) plan for rail extension operation by the year 2012. This will require a fast-paced timeline that assumes submission of the application to the STB in the beginning of 2008, STB completion of an environmental document by the middle of 2009, engineering and design in 2008-2009, and construction between 2010 and 2012. This is only an estimate, however, with the actual design and completion relying on the pace of the STB’s environmental process, as well as funding availability, and the land acquisition process and actual construction conditions.

Q. How will land be acquired?

A. Once a route has been defined and accepted, and funding identified, the railroad will obtain third-party assessments of land that is needed for the new right-of-way. The railroad will then negotiate with landowners based primarily on fair market value. While the railroad, as a public transportation entity, can evoke eminent domain to obtain land from an unwilling landowner, it has never had to do so. Rather, the railroad has strived for fair and comprehensive negotiations, or in some cases modifying design when no resolution can be obtained with a landowner. If all avenues were exhausted and it was necessary to evoke eminent domain and acquire land without landowner consent, ARRC would comply with the Uniform Relocation Act (URA), and the landowner would be compensated under the URA for the property loss.

 

 

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