Port MacKenzie Rail Extension

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Port MacKenzie Rail Extension Project The Matanuska-Susitna Borough (MSB) and the Alaska Railroad Corporation (ARRC) jointly propose construction and operation of a new rail line to connect the Borough s Port MacKenzie to ARRC s rail system. The port lies about 30 miles southwest of Wasilla and about 5 miles due north of Anchorage, across Cook Inlet. The selected route involves 32 miles of new rail line extending from Port MacKenzie to the Alaska Railroad s mainline just south of Houston. Port MacKenzie has a deep draft dock (60 feet at low tide) that requires no dredging and can serve the world s largest ships (Panamax and Cape Class vessels). The port s 8,940 upland acres and 1,300 tide-land acres provide ample room to accommodate bulk resource storage, transport and processing facilities, as well as rail and terminal facilities for efficient train loading and unloading. The project includes an Environmental Impact Statement (EIS) as required by the National Environmental Policy Act (NEPA). The EIS and associated studies identified and analyzed feasible alignment alternatives, completed preliminary engineering design on alternatives, estimated construction costs, and determined the project s economic, financial and engineering feasibility. When complete, the new rail line would operate as part of the Alaska Railroad system. Project Benefits With the longest rail car loop in Alaska, the extension offers highly-efficient offloading of bulk resources from train to ship. For Interior shippers, the new rail link shortens the distance to tidewater. Increased rail freight activity, and development stimulated by the rail link, would benefit railbelt communities through increased employment, contributions to the state and community tax base, and overall economic health. October 2015 Segment 3 grade work north of W. Susitna Parkway mid-summer 2013.

With ample room for staging and assembling, Port MacKenzie is an ideal site for large construction projects, such as oilfield modules or pipeline assembly. Project & Timeline In June 2007, MSB and ARRC signed a Memorandum of Agreement to pursue environmental work, engineering and alternative analysis in support of the Surface Transportation Board (STB)-led environmental document for a Port MacKenzie rail line extension. Following an extensive environmental review process, the STB issued a record of decision in 2011 recommending the Mac East Variant (Mac Central) and Houston South route. 2011-2013: Construction bids awarded to Bristol Construction (Segments 1 and 4), Quality Asphalt Paving (Segment 3), and Granite Construction (Segment 6). June 4, 2013: Ground-breaking ceremony. 2014: Segments 1, 3 and 6 substantially complete. 2015: Segments 4 and 5 substantially complete. Late 2017: Anticipated completion, pending funding. Project Participants Matanuska-Susitna Borough (MSB) The local government that owns Port MacKenzie land and facility. The MSB is the project Sponsor and has raised funds through requests for State grants. The MSB co-manages the project and is responsible for public and government relations, and land use planning for the project. Alaska Railroad Corporation (ARRC) Self-sustaining corporation owned by State of Alaska. The ARRC is the project s Applicant, responsible for rail-related technical expertise, and for support of the EIS effort. ARRC co-manages the project. Surface Transportation Board (STB) STB is the lead federal agency on the project with the authority to approve construction of new rail lines (including extensions) in the United States. Because the project requires federal approval, an environmental document was prepared to meet NEPA requirements. The STB, through its Section of Environmental Analysis (SEA) was responsible for preparing the EIS. Cost and Funding The total project budget is $303.5 million. From 2008 to present, $184 million has been funded via state grants. An additional $119.5 million in funding is needed to complete design and construction of the project. For More Information Mat-Su Borough: Public Affairs Director Patty Sullivan at 907.745.9577 Alaska Railroad: Corporate Communications Officer Stephenie Wheeler at 907.265.2671 www.portmacrail.com Joint MSB-ARRC web site established in 2007 to facilitate the public process prior to STB application submittal. The web site continues to incorporate project status updates and visual information. Building a Segment 1 winter trail culvert crossing fall 2013. Seeding new embankment along Segment 6 in July 2013. Port MacKenzie Rail Extension Page 2

Cow Lake Hollywood Project Milepost and Segment Summary NANCY LAKE STATE Red Shirt Lake RECREATION AREA SEGMENT 6 (1.8 miles) K32 K30 K31 K27 K28 K29 SEGMENT 5 (3.5 miles) PARKS HWY LITTLE SUSITNA RECREATION K25 K26 Horsehoe Lake Big Lake Rd RIVER K24 Papoose Twin Lakes K22 K23 SEGMENT 4 (8.0 miles) Big Lake K21 W. Susitna Pkwy K20 K19 Knik Goose Ba K18 SEGMENT 3 (7.7 miles) K17 K16 K15 SUSITNA Point Mackenzie Rd FLATS K14 STATE GAME REFUGE K13 POINT MACKENZIE AGRICULTURE DISTRICT K12 K11 K10 K9 ") GOOSE BAY STATE GAME REFUGE Goose Creek Correctional Center PORT MACKENZIE RAIL EXTENSION PROJECT OCTOBER 2015 CONSTRUCTION STATUS SEGMENTS 1, 3, 4, 5 & 6 STATUS: Funded. Embankment completed. Rail installed on Segment 6. Communication Tower erected. SEGMENT 2 (7.1 miles) K8 K7 SEGMENT 2 STATUS: Partially Funded. All Right-of-Way (ROW) purchased. Condemnation of covenants on ROW underway. Funding Required. Embankment and rail construction. K6 K5 PORT MACKENZIE DISTRICT SEGMENT 7 STATUS: Funding Required. Placement of subballast; south communications tower; fiber optic cable; Terminal Reserve buildings; moose mitigation. Project 75% Complete October 2015 K4 SEGMENT 1 (4.9 miles) K3 K2 K1 PORT MACKENZIE SEGMENT 8 STATUS: Funding Required. Procurement and placement of ties and ballast, and installation of rail. 0 1 2 3 Miles E Port MacKenzie Rail Extension Page 3

Segment One Baker Farm Creek 3-span Bridge Lake Loop Trail Oversize Culvert Winter Crossing Length: 4.9 miles ~ 4 million cubic yards (CY) of earth moved Construct 3-span, 84-foot long bridge crossing over an unnamed stream at Baker Farm. Install 19-foot diameter 146-foot long steel multi-plate pipe to create winter crossing at Lake Loop Trail. Contractor: Bristol Construction Services Begin: construction began in spring 2012 Completion: substantially completed in fall 2014. Port MacKenzie Rail Extension Page 4

Segment Three Diamond Lake Outlet 5-span Girder/Steel Bridge Iditarod Trail 3-span Girder Bridge Length: 7.7 miles ~ 1.1 million CY of earth moved Construct three bridges: 5-span, pre-cast girder and steel beam bridge over Diamond Lake Outlet/Outfall. 3-span, pre-cast girder bridge over Historic Iditarod Trail. 3-span, pre-cast girder bridge over Iditarod Race Trail. Install 18-foot diameter 128-foot long steel multi-plate pipe to cross unnamed trail. Contractor: Quality Asphalt Paving (QAP) Begin: construction began spring 2013. Completion: substantially completed in summer 2014. Port MacKenzie Rail Extension Page 5

Segment Four Little Su Tributary 5-span Concrete Girder Bridge Length: 7.4 miles 1.0 million cubic yards (CY) of earth moved Construct three bridges: 5-span, concrete girder 140-foot bridge over Tributary to Little Susitna River. 5-span, concrete girder 140-foot bridge over Iron Dog Trail. 4-span, concrete girder 112-foot bridge over Houston Loop Trail. Closest residence is 970 feet. Contractor: Bristol Construction Services Begin: construction began winter 2013. Completion: substantially completed in fall 2015. Port MacKenzie Rail Extension Page 6

Segment Five Length: 3.5 miles 500,000 CY of earth moved One trail crossing and two at-grade road crossings Contractor: Quality Asphalt Paving (QAP) Begin: construction began summer 2015. Completion: substantially completed in fall 2015. Port MacKenzie Rail Extension Page 7

Segment Six 120-foot Single-Span Bridge over Little Susitna River Length: 1.8 miles new embankment and widen 2.9 miles of existing mainline embankment ~ 630,000 cubic yards (CY) of earth moved Construct single-span 118-foot long steel girder bridge over the Little Susitna River. Construct a Y rail connection and a new siding adjacent to the Alaska Railroad main line. Contractor: Granite Construction Begin: construction began spring 2013. Completion: substantially completed in summer 2014. Port MacKenzie Rail Extension Page 8