AlaskaRailroad.com

Alaska Railroad UpdatePresentation to the Alaska World Trade Center

October 6, 2011

by Chris Aadnesen, President/CEO

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405,135 passengers in 2010, compared to 470,786 in 2009 (14% decrease)

2011 Year-to-date0.3% increase

Alaska Railroad trainsup in ridership 8-10%,but cruise passengersdown 2-3% from 2010

Passenger Business

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Tour Guides Make a Difference Alaska Railroad resumed

popular Tour Guide Program after 1-year hiatus

Alaska’s home grown talent delights passengers with informative narrative and personal care

Through partnership with school districts, ARRC participates in tourism curriculum for high school students

About a dozen are hired each year to work onboard summer trains

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Alaska-owned docks at deep water, ice-free ports in Seward and Whittier

SEWARD – Bulk Ships and Container Barges

– Occasional ship containing offshore oilfield pipe

– 1,563 Containers/Platforms *

WHITTER – Rail and Container Barges

– 1,794 Railcars (CN Aquatrain and Alaska Railbelt Marine) *

– 5,300 Containers/Platforms *

(volumes As Of August 31, 2011)

Alaska Railroad Owned Ports

Three docks serve freight, cruise and coal ships

The Whittier Barge Slip stern was improved in 2010 with hydraulic lifts and a new unloading ramp.

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Port of Anchorage SupportTrailer on Flat Car Service – 5,328 Trailers *

Bulk and Container Barges *

– 500 Railcars of Scrap Metal and Cement

– 900 Containers

Support for Military Deployments

(volumes as of August 31, 2011)

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Port Mackenzie Railroad Extension 32.1 Miles of New Track

Estimate project construction cost $245 million

Construction Appropriations

– State of Alaska FY 2011 & 2012: $65 million

– Unsecured funding: $180 million

Awaiting Surface Transportation Board’s Record of Decision (ROD)

– Final EIS Published in March 2011

– No schedule for ROD

Awaiting US Army Corps of Engineers Permit

– Public Comment closed in July 2011

– Negotiating permit conditions/mitigation with USACE, EPA and USF&W

Segment 1 procurement advertised, but delayed awaiting STB and USACE

Segments 3 & 6 will be advertised early 2012 for construction in 2012-13

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Port Mackenzie Preferred Route

The Environmental Impact Study identified the Mac Central and Houston South segments as the preferred route

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Export Coal Partnered with Usibelli Coal Mine to

transport coal from Healy to Seward for export to Chile and pacific rim destinations

ARRC owns and manages Seward Coal Loading Facility

– Operated by Aurora Energy Services, subsidiary of Usibelli Coal Mine

Expect to export approximately 1.1 million metric tons in 2011

– Up from 953,000 metric tons in 2010

Increased capacity through purchase of 70 hopper cars in 2011

Planning for 4 trains a week for rest of year and into 2012

Coal Loading Facility in Seward

New aluminum hoppers have 6.5% more capacity

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Thank you for your interest!