ALL ABOARDALL ABOARDSECOND QUARTER 2014 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

020203030303070710101010111111111212

CROSSINGS:PRESIDENT’S MESSAGE

CROSSINGS:FINANCE

COLUMN

MILEPOSTS:EMPLOYEE RECOGNITION

CROSSINGS:EMPLOYEE PORTAL

PROGRESS

CROSSINGS:GOLDSTAR

CHANGES 2015

CROSSINGS:COUPON TO SHARE THE ADVENTURE

CROSSINGS:TECHNOLOGY

LEADERSHIP

CROSSINGS:FAIR TRAIN SERVICE

EXPANDS

CROSSINGS:POSITIVE TRAIN CONTROL UPDATE

INSIDE...CROSSINGS: TEAM APPROACH BODES WELL FOR ALASKA’S NEW LONGEST BRIDGE

NRE PHASE 1 WRAPS UP ON-TIME/BUDGETTh e Northern Rail Ex-

tension’s fi rst phase (NRE-1) — a levee and bridge over the Tanana River near Salcha — is wrapping up this summer. Th e mega project’s signifi cance is refl ected in the line-up of dignitaries attending a ribbon-cutting on site at noon August 5. Members of Alaska’s congressional delegation, the governor, several legislators and local elected offi cials are slated to be part of the ceremony, which will be followed by a community barbecue.

Th e crossing is remarkable. At 3,300 feet, the sturdy 19-pier bridge becomes Alaska’s lon-gest. Construction fi gures off er some clues to the structure’s enormity. Assembly involved more than 11,500 tons (23 million pounds) of steel, 12,000 cubic yards (CY) of concrete, 9,000 truckloads of riprap, and 600,000 CY of embankment.

THE TANANA RIVER BRIDGE AND LEVEE PROJECT NEARS

COMPLETION IN LATE JUNE. (PHOTO BY JUDY PATRICK)

(See “Oilfi eld Supplies Drive Barge Traffi c” on page 9)

13131414

SIDINGS:ENGAGEMENT FOCUS AREAS

SIGNALS

SAFETY & GOALS

FOR ENGAGEMENT

CROSSINGS: GROWTH IN OILFIELD EXPLORATION FUELS MORE RAIL-BARGE TRAFFIC

PETROLEUM STILL IMPORTANT TO RAILROADTh e half-year point has arrived, and as expected,

Alaska Railroad (ARR) fuel-hauling revenues are on a sharp decline since the Flint Hills Resources (FHR) facility in North Pole has stopped refi ning fuel (as of May). Th is might lead some to think that petroleum no longer contributes much to the Alaska Railroad’s bottom line. To the contrary, activity in the oil and gas industry continues to be very important to the Alaska Railroad’s freight business; and freight continues to account for nearly two-thirds of all our operating revenues.

Beginning June 2014, ARR no longer hauls refi ned petroleum product from the refi nery, south to Anchorage. However, as in the past, ARRC con-tinues to haul ultra-low sulfur diesel and unleaded gasoline north from Anchorage to the Interior. Once the FHR North Pole facility is retrofi tted to serve as a fuel storage terminal — likely by August or September — the railroad will begin hauling jet fuel north from Anchorage for the Fairbanks Air-port. Even with the refi nery closure, FHR remains ARRC’s largest individual customer.

(See “Tanana River Bridge & Levee Done” on page 8)

Perhaps more remarkable is the project’s on-time, on-budget completion — a rarity for projects of this size. Funding sources were quite clear that the $188 million budget —$104 from the Depart-ment of Defense and $84 million from the state — was not expandable.

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2PRESIDENT’S MESSAGE: ‘POP QUIZ’ ANSWERS TELL STORY OF RESILIENCY

HOW TO DEAL WITH THE SHIFTING SANDS By President & CEO Bill O’Leary

Pop Quiz Question #1: If you had to

describe the Alaska Railroad today in one or two

words, what would they be?

Realistically, I imagine that some of us might not be very complimentary. Th e past 5 years have been a very tough period of relentless change marked by declining customer volumes, dwindling funding sources, unfunded federal mandates, lead-ership changes and multiple layoff s. Th ese events have had a signifi cant impact on all of us.

But railroaders — especially Alaska Railroaders — are nothing if not resilient, and Alaska’s citizens and businesses need this railroad. Our 500-mile inter-city route is critical in a state that is woefully lacking in basic transportation infrastructure. Alas-kans need ARRC to be a strong and healthy entity, ready to uphold its mission to deliver safe, profi t-able, service-oriented transportation that fosters year-round economic development statewide.

Pop Quiz Question #2: So, how do we deal

with the shifting sands and get to that place?

Funny you should ask… We’ll soon complete and distribute our 2014-2015 Strategic Initiatives and our 5-Year Goals. Th ese documents provide a high-level sketch of where we want to take the corporation. Developed with our Board of Direc-tors, this strategic direction translates into annual corporate goals that cascade into departmental goals which measure and report on:

Revenue growth/diversifi cation: I’ve said it before and I’ll repeat: We are going to grow our way out of our current situation by aggres-sively courting new business, while providing superior customer service to existing custom-ers — whether freight, passenger or real estate.

Cost structure: revenue growth alone is not enough. We must drive costs down through greater effi ciency, modernization of benefi t programs, and smart capital investment.

Capital investment: invest wisely in capital maintenance and projects/initiatives that pro-vide a return on capital dollars, and that en-able us to provide exemplary customer service.

Safety/Engagement: drive employee engage-ment and safety improvements by addressing shortcomings in company culture.

Relationships: Foster and expand working relationships with key stakeholders/groups.

Accomplishing these objectives will take an aligned, coordinated eff ort by each employee, man-agement and represented. It will take ALL of us.

Pop Quiz Question #3: How will we mea-

sure success in meeting these goals?

Answer: When we can genuinely respond to the Pop Quiz Question #1 with phrases like “nimble, healthy, proactive, smart, data-driven, growing, lean, focused, engaged, great-place-to-work, innova-tive, aligned, empowered, effi cient and prepared.” We’ll get there. We will.

BILL O’LEARY

CROSSINGS: EMPLOYEE NEWSLETTER ONLINE ONLY BEGINNING 3RD QUARTER

ALL ABOARD GOES ELECTRONIC NEXT EDITIONTh is is the last issue of All Aboard that will be printed and distrib-

uted and mailed as a hard copy. Beginning with the third quarter issue released in early October, our long-tenured employee newsletter will be produced electronically only and posted on our internal Employee web site. An email to all employees will notify readers that the latest edition is available.

Employees, family members and retirees that wish to have a copy of the All Aboard newsletter delivered to their home email addresses, contact editor Stephenie Wheeler with your name and email address. All Aboard will not be delivered electronically to company email addresses, because the newsletter is already accessible on the Internal Web Site and bulk emailing with attachments can cause memory and network issues.

For more information or inquiries about printed copies, con-tact Wheeler at 265-2671 offi ce or (907) 382-3327 cell, or email WheelerS@akrr.com

Alaska Railroaders are nothing if not resilient, and Alaska’s citizens and businesses need this railroad.

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3

BARBARA AMY

CROSSINGS: CFO COLUMN

2013 AUDIT, REPORT; 2014 REVISED BUDGETBy Chief Financial Offi cer Barbara Amy

In late May, the world as we have long known it changed when Flint Hills Refi nery (FHR) converted from an operating refi nery to a fuel terminal opera-tion. By the end of the fi rst quarter of the year, we had revised the budget down to a net income of $7.1 million, which took into account the change in operating model for FHR as well as an increase in the outlook for volumes on the ARMs barge and in the TOFC business line due to continued strength in traffi c bound for the north slope, and an increase in expectations for passenger revenues as we got closer to the season.

We are currently putting the fi nishing touches on an operating forecast that includes our actual performance through May, which refl ected net income $4.3 million ahead of revised budget, and combines that with an updated budget for the rest of the year. While there are still some moving parts, at the end of the process, our expectation for 2014

net income will be signifi cantly better than the $7.1 million we were expecting a few months ago. Just to put that into perspective, it’s still down substan-tially from the $14.3 million in net income that ARRC generated in 2013, but it’s better than where we thought we’d be just a few months ago.

Just a few weeks from now, we get started on the 2015 operating and capital budget process and connect that process to our strategic planning such that our 2015 operating budget is a refl ection of the steps we expect to be taking next year toward achieving our strategic goals and fulfi lling our strategic vision. Th e budgeting process may not touch all employees directly, but many railroaders do participate in the planning for the coming year in addition to carrying their usual work load. My thanks go out in advance to all of you who adjust your busy schedules to make our budget process a worthwhile eff ort that yields a meaningful set of tools by which we gauge our progress. We could not do it without your help!

MILEPOSTS: RAILROADERS MARK SERVICE MILESTONES

SERVICE AWARDS: SECOND QUARTER1 Year Heather Alley . . . . . . . . . . . . . . . . . . . . AccountingTimothy Bates. . . . . . . . . . . . . Supply ManagementChad Beckley . . . . . . . . . . . . . . . . . TransportationDonald Hartley, Jr. . . . . . . . . . . . . . . . . MechanicalMitchel Hunt . . . . . . . . . . . . . Information ServicesJustin Mitchell. . . . . . . . . . . . .TelecommunicationsAndee Rodgers . . . . . . . . . . . . . . . . TransportationBrian Scheid . . . . . . . . . . . . . . TelecommunicationsJohn Schnering Jr. . . . . . . . . . . . . . . . . . MechanicalMichael Sollars . . . . . . . . . . . . Information Service

5 Years Scott Austin . . . . . . . . . . . . . . . . . . . . . MechanicalJack Goodwill . . . . . . . . . . . . . . . . . .Guest ServicesRonald Rifredi. . . . . . . . . . . . . . . . . . . . MechanicalJeonghee Scholtisek . . . . . . . . . . . . . Transportation

10 Years Lucas Bergstrom . . . . . . . . . . . . . . . . .MaintenanceCecilia Chan . . . . . . . . . . . . . . . . . . .Guest ServicesPatty Crawford . . . . . . . . . . . . . . . . TransportationPaul Farnsworth . . . . . . . . . . . . . . . . . . . . FacilitiesMichael Hoadley . . . . . . . . . . . . . . . . .MaintenanceWilliam Monbleau . . . . . . . . Bridges and BuildingsSteve Stacey . . . . . . . . . . . . . . . . . . . . . . MechanicalJoseph Streff II . . . . . . . . . . . . . . . . . .Maintenance

Alan Szewczyk. . . . . . . . . . . . . . . . . . . . MechanicalNathan Wilson . . . . . . . . . . . . Bridges & BuildingsWarren Woodland . . . . . . . . . . . . . . . . . Mechanical

15 Years Andrew Burgess. . . . . . . . . . . . . . . . TransportationMark Dustin . . . . . . . . . . . . . . . . . . TransportationDavid Greenhalgh . .Marketing & Customer ServiceJason Kerkove . . . . . . . . . . . . . . . . . . .MaintenanceBrian Sweatt . . . . . . . . . . . . . . . . . . TransportationMichael Tritz . . . . . . . . . . . . . . . . . . Transportation

20 Years Richard Bush. . . . . . . . . . . . . . . . . . . .MaintenanceDavid Harris . . . . . . . . . . . . . . . . . . TransportationDarren Rupe . . . . . . . . . . . . . . . . . . Transportation

25 Years Michael Weatherell . . . . . . . . . . . . . TransportationCheryl Sautel. . . . . . . . . . . . . . . . . . . . . . Executive

30 Years Dennis Bouwens . . . . . . . . . . . . . . . . . . MechanicalCliff ord Giles . . . . . . . . . . . . . . . . . . .MaintenanceIone Gobbi . . . . . . . . . . . . . . . . . . . Transportation

40 Years William Haggart . . . . . . . . . . . . . . . TransportationFrank Sheppard . . . . . . . . . . . . . . Transportation

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4MILEPOSTS: WAREHOUSE TEAM GARNERS KUDOS FOR ATTITUDE AND SERVICE

SPOTLIGHT AWARDS: 2ND QUARTER 2014Warehouse Workers Barry Neil, Sam Reynolds

and Erik Swanson; Receiving Warehouse Lead

Sam Johnson, and Warehouse Supervisor Ron

Lewis were recently recognized for their team’s reputation for stellar customer service and proven performance. Supply Management Director Bob

Gonzalez agreed with the fresh perspective of Neil, a relatively new addition to the Warehouse. In describing his co-workers, Neil noted how hard they work for every department, the patience shown while teaching the new guy, and a vast knowledge of railroad materials. Th is fi rst-hand praise is backed by numbers that tell a convincing story about the eff ectiveness of a motivated Warehouse team. Ex-amples include:

Warehouse activity reduced inventories by $3 million in 2013, a remarkable feat in a tough economic climate. Lower inventories translate to lower storage costs.

Th e Warehouse Surplus Sales program gener-ates well over $400,000 per year for materials ARRC would not otherwise use.

In 2013, the Warehouse facilitated more than $16,000 in donated surplus materials (such as used ties), thereby promoting public goodwill, while distributing unused materials. Th e fi rst used tie sale of the 2014 season (late May) generated $3,000 alone.

WAREHOUSE TEAM

MEMBERS ARE PRESENTED

WITH A SPOTLIGHT

AWARD. L-R: BARRY

NEIL, RON LEWIS, SAM

JOHNSON AND SAM REYN-

OLDS. NOT PICTURED:

ERIK SWANSON.

MILEPOSTS: RAILROADERS SALUTE 6 RETIREES AND WELCOME 6 BABIES

HOME FRONT: BIRTHS AND RETIREMENTSRetirements: Fond Farewells

Conductor/Brakeman Stanley “Ray” Sand-erford retired from the Transportation De-partment in April, after more than 39 years of service.

Operations Support Technician II Sally Jo Van Der Starre retired from the Transportation Department (Fairbanks) in April, after more than 25 years of service.

Carman Ed Prusak retired from the Mechani-cal Department in April, after more than 22 years of service.

Lead Transportation Support Technician Sandy Wanner retired from the Transportation Department in June, after more than 35 years of service.

Track Repairer Francis “Railroad Max” Rabideau retired from the Maintenance-of-Way Department in June, after 27 years of service.

District 2 Roadmaster Rocky Murrill retired from the Maintenance-of-Way Department in June, after more than 32 years of service.

Births: New Arrivals Manager, South Terminals Patrick Volmer and

wife Sandra welcomed daughter Grace born on March 26.

Conductor/Brakeman/Engineer Jason White and wife Amber welcomed son Jase born on March 27.

Conductor/Brakeman/Engineer Davy Registe and wife Toi welcomed son Zaden born on April 14.

PSA/Vendor Inventory Coordinator Erin Kehoe and husband Jon welcomed son Landon born on April 15.

Conductor/Brakeman/Engineer David Bang and wife Ellen Lentz welcomed twins Nathan and Guiniveve born on May 28.

Warehouse worker/Forklift Operator Samuel Reynolds and wife Megan welcomed son Cal-vin born on June 15.

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5MILEPOSTS: RAILROAD HIRING INCREASES TO PREPARE FOR SUMMER

WELCOME NEW HIRES: SECOND QUARTERWilliam Bailey. . . . . . . . . . . . . . . . . .Guest ServicesMartin Banks . . . . . . . . . . . . . . . . . TransportationJohn Bartan. . . . . . . . . . . . . . . . . . . TransportationKevin Bartlett . . . . . . . . . . . . . Information ServicesAndrea Brainerd . . . . . . . . . . . . . . . .Guest ServicesAlexander Braverman . . . . . . . . . . . .Guest ServicesKatie Browne . . . . . . . . . . . . . . . . . . . . AccountingDerek Burns . . . . . . . . . . . . . . . . . . TransportationClyde Calloway . . . . . . . . . . . . . . . . .Guest ServicesRobert Campbell. . . . . . . . . . . . . . . TransportationAmelia Carpenter . . . . . . . . . . . . . . TransportationTimothy Castro. . . . . . . . . . . . . . . . TransportationT.J. Connelly. . . . . . . . . . . . . . . . . . TransportationStephen Crowton . . . . . . . . . . . . . . .Guest ServicesTracy DeFrance . . . . . . . . . . . . . . . . TransportationRiel Desaulniers . . . . . . . . . . . . . . . .Guest ServicesRodney Ebersole . . . . . . . . . . . . . . . . . . MechanicalGabriel Esposito . . . . . . . . . . . Information ServicesRichard Faber . . . . . . . . . . . . . . . . . TransportationMarAngelo Fernandez . . . . . . . . . . . .Guest ServicesMarArgel Fernandez . . . . . . . . . . . . .Guest ServicesAaron Finkler . . . . . . . . . . . . . . . . . .Guest ServicesTommy Folan . . . . . . . . . . . . . . . . . .Guest ServicesJoshua Foreman-Kilpper . . . . . . . . . . .MaintenanceMichael Gerenday . . . . . . . . . . . . . . . .MaintenanceDanielle Hardie. . . . . . . . . . . . . . . . TransportationDonald Hickey . . . . . . . . . . . . . . . . .Guest ServicesShawnie Hall-Wright. . . . . . . . . . . . .Guest ServicesKia Hasson . . . . . . . . . . . . . . . . . . . .Guest ServicesRoberta Highstone . . . . . . . . . . . . . . . . . . . . .LegalTh omas Hutchman . . . . . . . . . . . . . TransportationKurt Jensen . . . . . . . . . . . . . . . . . . . TransportationRyan Johnson . . . . . . . . . . . . . . . . . . .MaintenanceDavid Kabella . . . . . . . . . . . . . Project ManagementOlivia Lada . . . . . . . . . . . . . . . . . . . .Guest ServicesJordan Land . . . . . . . . . . . . . . Information ServicesMichael Leon . . . . . . . . . . . . . . . . . TransportationRyan McBride . . . . . . . . . . . . . Information ServicesAriel Milton . . . . . . . . . . . . . . . . . . .Guest ServicesJason Nielsen. . . . . . . . . . . . . . . . Police & SecurityDavid Nugent . . . . . . . . . . . . . . . . . TransportationNelowa Nusunginya . . . . . . . . . . . . .Guest ServicesTh omas Osterman. . . . . . . . . . . . . . .Guest ServicesPatrick Parente . . . . . . . . . . . . . . . . . . . . . Facilities Charles Queeno . . . . . . . . . . . . . . . TransportationMarcus Quinn. . . . . . . . . . . . . . . . . TransportationDale Rageth . . . . . . . . . . . . . . . . . . TransportationSkylar Robbins . . . . . . . . . . . . . . . . . .MaintenanceJason Roe . . . . . . . . . . . . . . . . . . . . . .MaintenanceRachel Rotola . . . . . . . . . . . . . . . . . .Guest ServicesFey Saelee . . . . . . . . . . . . . . . . . . . . .Guest Services

Lincoln Sander . . . . . . . . . . . . . . . . TransportationMark Sansom . . . . . . . . . . . . . . . . . TransportationMichael Schroeder. . . . . . . . . . . . . . TransportationChristopher Southwell. . . . . . . . . . . TransportationSteven Taylor. . . . . . . . . . . . . . . . . . . .MaintenanceWilkie Th ompson . . . . . . . . . . . . . . TransportationSheri Th omson . . . . . . . . . . . . . . . . TransportationMalcolm Vance . . . . . . . . . . . . . . . . . .MaintenanceKelly Williams. . . . . . . . . . . . . . . . . . .MaintenanceAlanna Willman . . . . . . . . . . . . . . . .Guest ServicesKa Ying Xiong. . . . . . . . . . . . . . . . . .Guest ServicesYu Jian Zhao . . . . . . . . . . . . . . Information ServicesBrian Zine. . . . . . . . . . . . . . . . . . . . Transportation

During an impromptu reception at the Alaska Railroad (ARRC) headquarters in late June, John Combs posed with a cake featuring a Frank Keller photo of Combs’ locomotive-of-special interest, No. 3015. A mega rail fan, Combs is the author of awidely-referenced web site — www.alaskarails.org — which is chock full of interesting ARRC facts and photos. Many Alaska Railroaders have been known to reference the research on this site. In fact, Combs was in Alaska gathering more mate-rial for his web site, to visit fellow rail fans, and to attend the Engine 557 Restoration Company board meeting. He typically posts a detailed blog about his trips to Alaska. On the ‘What’s New’ page of alaskarails.org, Combs wrote (see right):

Railroaders welcome #1 fan

I just got back from two “jaw dropping awesome” weeks in Alaska! Living the dream! It will be months before I can get my trip journal on-line. If you just can’t wait then send me a Facebook friends request. I have some photos on Facebook already and plan on add-ing more this weekend. As far as regular website up-dates go I will try to get them online this weekend as well.

JOHN COMBS

JUNE 26, 2014

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6MILEPOSTS: RAILROADER EFFORTS RELATE TO CHUGACH FOREST WHISTLE STOPS

2 WIN FOREST SERVICE REGIONAL AWARDSTwo railroaders were honored with 2013 U.S.

Forest Service (USFS) Regional Forester’s Awards in early July. Alaska Regional Forester Beth Pendleton presented the awards at the USFS regional head-quarters in Anchorage.

ARRC Scheduling &

Logistics Program

Manager Don Worthley

was among fi ve people receiving the Meeting America’s Needs Award, which went to the team that designed and con-structed the Placer River Pedestrian Bridge located at the Spencer Whistle Stop in the Chugach Na-tional Forest. Measuring

280-feet, the bridge is the longest clear span, glue-laminated, timber truss bridge in North America. It provides public access to some of the most spec-tacular recreation landscapes in the National Forest System. Worthley also received Honorable Mention for his individual eff orts to implement the Chugach Forest Whistle Stop project, a joint USFS-ARRC venture. As the ARRC project manager, Worthley has been a tireless advocate for the project from its inception in 2004. Th e Whistle Stop is an excel-lent example of implementing the recent Leader’s Intent for Recreation (February 2014) — to deliver recreation opportunities through innovative fund-

ing and partnerships. Th is nomination focused on contributions and accomplishments in 2013, when Worthley played a key role in the success of two high-profi le American Recovery and Reinvestment Act (ARRA) projects: the Placer River Bridge and Grandview Whistle Stop.

ARRC Passenger Operations Manager Sarah

Streiffert was among 10 people receiving the Hector Gandara Memorial Award for their contributions to the “More than Just a Summer Job” Team. Th e group developed recreational opportunities and natural resource management career experiences for alumni of Chugach Children’s Forest programs as well as for participants in Youth Employment in Parks (YEP), a program of the Anchorage Parks and Recreation Department and the Anchorage Park Foundation (APF). YEP provides a meaningful “fi rst job” experience and career pathway in natural resources fi elds. Th anks to a partnership between the Chugach National Forest, Student Conservation Association (SCA), the Municipality of Anchorage, APF, Bureau of Land Management (BLM) and the Alaska Railroad, the youth participated as part of a new summer conservation crew led by seasoned SCA staff . Th e crew, made up of participants ages 17-20, took part in a 10-week work experience on municipal and federal public lands to improve the quality and availability of outdoor recreation experi-ences. Th is included work on the Chugach Forest Whistle Stop project.

WATCH FOR PEDESTRIANS WATCH FOR CLEARANCES

SIGNALS: SAFETY AND SECURITY NEWS, NOTES AND REMINDERS

Summer is in full swing — tourists, fi sherman and other resi-dents and visitors have increased the pedestrian traffi c in the Ship Creek area. Chief Special Agent John Bennett reminds railroaders to be mindful of driving around the Anchorage Historic Depot and along North C Street. “Pedestrians routinely step into the street and their focus is to capture that perfect photo, or they are talking on the cell phone and are not thinking about vehicle traffi c,” said Bennett. “With that in mind, expect the unexpect-ed, drive cautiously and anticipate that pedestrians may step out or cross the street in places other than the designated crosswalk. We want everyone to have a happy, safe summer!”

Manager of Operating Rules & Training John Brahaney provided a few “old school” rail operating safety cartoons that “apply today just as they did 80 years ago.” Th e one below pertains to remaining aware of clearances.

JOHN BENNETT JOHN BRAHANEY

TOP: DON WORTHLEY

ACCEPTS HIS AWARD FROM

ALASKA REGION FORESTER

BETH PENDLETON.

MIDDLE/BOTTOM:

A REGIONAL AWARD ALSO

WENT TO SARAH

STREIFFERT. (BRUCE

LALONDE ACCEPTED IN

HER ABSENCE).

(PHOTOS BY STEPHENIE

WHEELER)

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7CROSSINGS: DEPARTMENTS TO POPULATE NEW SITE STRUCTURE WITH DATA

EMPLOYEE WEBSITE RE-BUILD PROGRESSESTh e new structure and design for the Alaska

Railroad’s Employee Portal web site is created. With the help of the railroad’s contract ad agency Spawn Ideas (which provided “look and feel” ideas) and summer-hire IT interns, Corporate Aff airs (led by Stephenie Wheeler) and Information Technology (IT, led by Mitch Hunt) departments are progress-ing to the next phase of the portal rebuild project: populating the site with department data/informa-tion. How exciting is that?!

Over the past few months, Wheeler and Hunt met with each department to discuss the new portal organization, determine how their data and documents would fi t into this structure, and to identify the most current versions and to update as necessary. Beginning mid-July, Wheeler, Hunt and interns will visit each department, one by one, to populate the new site, adding pages and upload-ing documents. Th ey will also identify and train department staff responsible for updating specifi c areas of the web site. Th e goal is for the new site to be up and running THIS YEAR!

As part of the project, forms in particular are being migrated to a new common directory to facilitate quality and version control. Each depart-ment is asked to assess whether each of its forms is: a) necessary; b) conforms to ARRC document standards (correct margins, logo, fi le name, etc.); and c) is the most current version. Th e new direc-tory is located at U:FormsCleanup. As commonly

used forms are located in this directory, folders will be secured to ensure current master forms cannot be overwritten or deleted. Old forms and the old FORMS directory will eventually be deleted.

Departments are also asked to create and/or use a DEPARTMENT folder on the U: drive, to store commonly used reference fi les. Th is will make the web-populating eff orts go more smoothly, while en-suring a fresh start with the most current and useful information possible. Th e Employee Portal goal is to establish a fl agship communication tool that:

enables employees to easily and logically locate the information they need,

encourages dialogue fosters information sharingBefore the roll out, quick reference materi-

als will be created to familiarize employees with the site. For more information, contact Stephenie Wheeler, 265-2671; WheelerS@akrr.com.

WYE OF IT: DIALOG WITH CUSTOMERS AND COMMUNITIES

DISCUSSION GROUPS EXPAND TO FAIRBANKSFor the past two years, the Alaska Railroad has

hosted a successful Community Discussion Group in Seward. Th is June, the program expanded into Fairbanks. Made up 6-10 members of the public, discussion groups meet three to four times a year and are designed to foster conversations about local issues and events and how they relate to the Alaska Railroad. Th ey also off er a forum for railroaders to discuss our place in the community; explore new opportunities, changes or issues of interest to the community; and collaborating to prevent confl icts before they occur.

External Aff airs Manager Tim Sullivan orga-nizes, facilitates and attends these meetings, along with the local railroad employee who serves as a community liaison. Our Seward community liaison is Dock Operations Manager Christy Terry and our Fairbanks liaison is Freight Service Coordinator Katrina Martolano. Liaisons often advise Corporate

Aff airs of recent, ongoing or upcoming issues that should be addressed at the meetings. One or two members of the ARRC management or executive team also attend some of the meetings to provide details about ARRC projects and programs.

Th e fi rst Fairbanks meeting in June yielded discussion about railroad crossings and track safety, special theme trains in Fairbanks, and the upcom-ing ribbon cutting for the Tanana River Bridge. In Seward, discussion has focused on ARRC safety drills, potential dock expansion, and increased freight and cruise passenger traffi c.

“Expansion of the Community Discussion Group program is being considered for other com-munities as well,” said Sullivan. “Change being the one constant at the Alaska Railroad, these groups play an important part in the ARRC community outreach program as we aim to remain a good neighbor to all Alaskans.”

STEPHENIE WHEELER

MITCH HUNT

TIM SULLIVAN

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8

CLARK HOPP

BRIAN LINDAMOOD

MARK PETERBURS

Th ree railroad project managers (PM) led eff orts to meet schedules, contain costs and uphold qual-ity. Currently ARRC’s Director of Projects, Brian Lindamood oversaw NRE from concept through the Environmental Impact Study process and mid-way into design. Recently promoted to VP Engi-neering, Clark Hopp managed design completion and brought the project to the cusp of construction. Lindamood and Hopp remained resources to PM Mark Peterburs, who moved north to manage the construction phase.

“For the past few years during construction, Mark has been a railroad ambassador and liaison to the community during a period of relative disrup-tion,” noted Lindamood. “It was the right thing to do to have someone there on site to address and respond to resident concerns and questions.”

Lindamood, Hopp and Peterburs are all quick to acknowledge that the project was very much a team eff ort involving skilled and knowledgeable contractors at every step.

Given the project’s complexity, risk factors and infl exible budget, ARRC chose a Construc-tion Management General Contractor (CMGC) model of project management. “After we selected the general contractor, we secured offi ce space where we co-located ourselves with the engineering, construction management, permitting and public involvement contractors,” explained Lindamood. For the next year and a half, the PMs worked beside subject experts from Kiewit, HDR Alaska, Hanson Professional Services, Shannon & Wilson, and PDC surveying.

“With CMGC approach, the bridge designer could walk over and talk to the construction con-tractors about how they would implement certain design features,” explained Lindamood. “Th is ready access removed a lot of the guesswork; it provided exceptional pricing capability. Th e team provided value engineering on the fl y in some cases.”

“We also worked hard early on and through-out to ensure ongoing dialogue with regulatory agencies. Often their authorities overlapped, with sometimes confl icting thresholds. By getting everyone in the same room often, we were able to work those things out.” said Lindamood, expressing appreciation for participating agencies — State Fish & Game and Natural Resources, Corps of Engi-neers, and U.S. Fish & Wildlife. “Th rough ongoing dialogue, the agencies understood engineering and construction limitations, and the contractors under-stood agency concerns. It worked very well.”

Th e approach also facilitated an extensive team-driven risk analysis that greatly benefi tted cost negotiations. “We brainstormed all of the things

that could go wrong … from girders falling off a ship enroute, to construction site fl ooding. We listed all of the potential hazards, the likelihood of each, and their respective impact to schedule and cost,” said Lindamood. “With everything on the table, we asked the engineering fi rm, the construc-tion contractor and a third-party cost estimator to price the project. Because of the in-depth planning, estimates were within 1% of each other.”

Once a cost was decided, the parties negoti-ated risk ownership. “Everyone took a piece of the risk pie, and there were really no surprises,” said Lindamood. “Even when we had a hiccup here and there, no one panicked because we’d already accounted for these things, planning what we would do in various circumstances.”

To enhance cost management, ARRC also engaged a Project Advisory Committee comprised of three experts — engineering, construction and project costing — who had been involved in large bridge projects in Alaska. Quarterly, the committee reviewed construction and payment estimates and provided input to project and senior management, assessing how the project was going and the areas that may need more attention. “Like the extra front-end planning, this advisory group was an extra step, but it paid off by avoiding problem areas,” said Lindamood.

“We paid a premium for thorough project plan-ning and development, reliable cost management and responsive community relations. We realized the value on the back end with a project fi nished on time and on budget,” said Lindamood.

TANANA RIVER BRIDGE & LEVEE DONE ... (continued from page 1)

THE TANANA RIVER CROSSING PROJECT INCLUDES A LEVEE.

(PHOTO BY JUDY PATRICK)

(see “Tanana River bridge & levee done” on page 9)

ALL ABOARDALL ABOARD

2ND QTR 2014

9

OILFIELD SUPPIES DRIVE BARGE TRAFFIC... “Working closely with the Alaska Railroad,

Flint Hills Resources Alaska Terminal Group will continue to be a key supplier of fuels to Alaska’s interior and North Slope markets. FHR has ap-preciated the cooperative eff ort with the ARR as we have changed from shipping our products south to shipping gasoline, jet fuel and ultra-low sulfur diesel fuels north. Our goal in working with the ARR is to ship these products safely and effi ciently to meet the needs of our fuel customers,” said FHR External Aff airs Director Jeff Cook.

Forecasts for 2014 and 2015 project fuel vol-umes to be about a fi fth of the peak petroleum vol-umes hauled a decade ago. Yet reinvigorated North Slope oilfi eld exploration has spurred an uptick in ARRC’S barge-based freight business, off setting some of the fuel-hauling decline. In recent years, the railroad has been tapped to haul more pipe,

drilling supplies and other oilfi eld equipment. ARRC’s interline business — freight hauled to

Alaska via Alaska Rail Marine System (ARMS)— has grown by about 29% since 2010, driven largely by activity on the North Slope. Th e vast majority (85-90%) of freight hauled aboard ARMS rail-barges is oil & gas related. Th e growth in pipe in particular (a predominantly oilfi eld commodity) is telling. During the 12-month period between May 2012 and April 2013, 327 railcars hauled 22,728 tons of pipe. Th e following year, May 2013 to April 2014, 531 railcars hauled 35,907 tons of pipe — a 58% increase in tonnage and 62% more railcars.

Oil & gas also fi gure into short and long-term freight opportunities thanks to ARRC land assets and bulk commodity hauling experience. For example, rail is a viable interim energy solution for Interior Alaska as a safe and effi cient mode should liquifi ed natural gas from Cook Inlet move to Fair-banks. And, any of the huge gas pipeline project options would require railroad participation.

(continued from page 1)

TANANA RIVER BRIDGE & LEVEE DONE ... (continued from page 8)

THE TANANA RIVER

BRIDGE IS A STURDY

STRUCTURE DESIGNED

TO WITHSTAND THE

TREMENDOUS FORCES

OF THIS LARGE,

MEANDERING RIVER.

(PHOTO BY

JUDY PATRICK)

2009 2010 2011 2012 2013500

1,000

1,500

2,000

2,500

1,6681,583

1,890 1,8972,045

ALASKA RAIL MARINE SYSTEM (ARMS)

NORTHBOUND RAIL-BARGE TRAFFIC

Num

ber o

f Rai

lcar

s

2010-11 2011-12 2012-13 2013-14100

200

300

400

500

196

269

327

531OILFIELD-RELATED PIPE HAULED

BY RAIL-BARGE

ANNUALLY, MAY TO APRIL

Num

ber o

f Rai

lcar

s

ALL ABOARDALL ABOARD

2ND QTR 2014

10CROSSINGS: ALL-INCLUSIVE FIRST-CLASS SERVICE INCLUDES RAIL TRAVEL & MEALS

GOLDSTAR SERVICE CHANGES SET FOR 2015 Recently announced changes to the Alaska

Railroad’s fi rst-class rail travel services — to include all-inclusive food and beverage service in 2015 — spurred questions from several employees. VP Marketing & Customer Service Dale Wade provides some answers:

Q. What’s new with GoldStar in 2015? A. All-Inclusive GoldStar service is intended to

raise the bar and represent a premium service, similar to any other fi rst class service environ-ment. By including guaranteed access to elegant seated dining with rail travel aboard an exclusive luxury railcar, we can better plan for and deliver a fi rst-class experience.

Q. Why the change? A. Th e purpose is twofold:

In an increasingly competitive environment, we want to diff erentiate the Alaska Railroad’s premium service from luxury dome car expe-riences off ered by other companies.

As the popularity of GoldStar service contin-ues to grow, we can build on a solid service

reputation to increase customer value and convenience.

Q. Does “all-inclusive” mean all-you-can eat and drink?

A. No. Service does not include an open buff et or open bar. 2015 GoldStar pricing includes trans-portation aboard the GoldStar railcars, meal(s) served during the travel period, non-alcoholic beverages, and a limit of two (2) complimentary alcoholic beverages per trip. Additional alcoholic beverages are available for purchase, subject to state serving laws.

Q. How will dining options work? A. We are working with our onboard food-and-

beverage contractor, ESS, to design an auto-mated system that will load meal and beverage information onto a “hotel card” for use in the GoldStar cars, and Wilderness Café car. Diff er-ent cards would be issued to minors and adults. Th ese cards will also capture information related to customer preferences.

SIDINGS: EMPLOYEES CAN GIVE HALF-OFF RAIL TRAVEL COUPON TO ANYONE

BE THE HERO! SHARE THE ADVENTURE!Employees have a new opportunity to Be the

Hero for folks planning an Alaska vacation or outing thanks to a fabulous 50% off coupon valid for rail travel on any route during 2014. Coupons are only available through mid-August. Employees can pick some up coupons at any of the depot ticket coun-ters. In Anchorage, coupons are also available from:

AOC — Angie Lott HQ/GOB — Stephenie Wheeler Mechanical — Keri Meszaros Telecomm — Nancy Davis

Th is half-off deal is even better than the Em-ployee Friends & Family program. No name badge is required to book and coupons can be shared with family, friends, your doctor, hairdresser, neighbors … anyone you’d like. Th e fi ne print:

Coupons are valid for Adventure Class seats. Th ese can be upgraded to GoldStar for an additional cost within 48 hours of departure if space is available.

48-hour advanced booking is required. Must mention coupon code for special rate. Valid on new bookings only and cannot be

combined with other discounts. One coupon per booking, for a maximum of

six (6) adult travelers.

Only 1,200 coupons are available through August 15, so don’t delay. Grab a coupon and Share the Adventure!

ALL ABOARDALL ABOARD

2ND QTR 2014

11

CROSSINGS: TECHNOLOGY-BASED GROUPS TO GAIN LEADERSHIP RESOURCES

PTC/IT/TELECOM LEADERSHIP TRANSITIONBy early fall, the Alaska Railroad’s Information

Technology (IT) group will soon gain a new Chief Technology Offi cer (CTO) who will report to the President/CEO. Eileen Reilly will remain focused on Positive Train Control (PTC) as VP Advanced Train Control Systems, and Joe Carlton will remain a Director focused on Telecommunications. Th e move will ensure dedicated leadership for all three highly technical and mission-critical departments.

For years, Reilly has led Positive Train Control (PTC) and IT/Telecom departments in addition to handling a variety of other executive and national-level responsibilities. Her considerable and highly-regarded technology expertise has guided Alaska Railroad technology investments since 1996.

“Th e PTC project requires undivided attention and leadership; and there is no one better suited to the task than Eileen as an established frontrunner in PTC technology,” said President/CEO Bill O’Leary. “At state and national levels, industry and agency experts alike rely on her contributions to PTC development. We are fortunate to have Eileen at the helm. Th is project is too big to fail. We cannot overemphasize the importance of meeting critical project milestones within mandated deadlines and budgetary constraints. Failure to develop a func-tional PTC system in a timely manner will result

in sizable and damaging federal fi nes, as well as possible termination or reduction of our passenger service. Every day counts.”

Equally important, Technology underpins every aspect of modern railroading and is essential to our core business. Th e Alaska Railroad has many dated legacy programs that need corporate resources. Th e JD Edwards enterprise resource project requires ongoing development and optimization for the foreseeable future. Several other large and essential technology initiatives are in the works. IT also requires undivided attention and leadership.

Because IT and Telecommunications are closely linked, these two functions will report to the new CTO. Like PTC and IT, Telecom is a fi eld with growing complexity, and it, too, requires focused leadership. Fortunately, we have a skilled leader in Joe Carlton whose 18 years of telecom experience will serve this department well.

“IT is my area of expertise and I love what I do. While I would like nothing more than to continue leading IT and Telecom departments, I agree that my time and energy must be focused solely on PTC in order to see it through to successful comple-tion,” said Reilly. “Th e decision to ensure dedicated leadership for PTC, IT and Telecom is in the best interests of our corporation.”

WYE OF IT: RAILROAD PARTNERS WITH GREEN STAR TO OFFER CHEAP TRANSIT

ALL ABOARD THE GREEN LINE TO THE FAIRTh e railroad and Green Star have joined forces

to support expanded service between the Anchorage Historic Depot and the Alaska State Fair station in Palmer. Compared to 2013, the special service train features more railcars to double capacity from 260 to about 500. Per-day round-trips also increases from two to three. Service will run seven days, a three-day increase over 2013 thanks to service on both Fridays and Labor Day in addition to Satur-day-Sunday service on both weekends. Schedule at www.AlaskaRailroad.com > Special Event Trains.

Dubbed Th e Green Line, the fair train has the potential to replace 125 cars per day (assuming an average of 4 to a car) on the road. Th is equates to an estimated savings of 5,250 gallons of fuel and $3,125 in savings on gas PER DAY for train riders.

Round-trip fare is just $12/adult or $8/child — a whopping 80% less than 2012 rates (and the same as 2013). Th is is often less than the cost of gas and parking to travel by car. Plus, while passengers will be able to buy a ticket for a specifi c departure time leaving Anchorage, they are not restricted to

a particular train to return to Anchorage. Due to the already low ticket price and limited space, free employee travel and the Friends & Family 50% discount does not apply to the fair train. Even so, this is a rocking deal and employees are encouraged to consider this opportunity to showcase their com-pany while riding the train to the fair with friends and family.

Th e 2013 test of this expanded direct inter-community service was highly successful, and the railroad anticipates that increased ridership, along with sponsorships, will make the reduced rates feasible. ARRC is working with Green Star to fi nd sponsors. As of press time, six of the seven sponsors needed have committed.

THE GREEN LINE TRAIN

WILL OFFER PASSENGERS

DIRECT TRANSIT BETWEEN

THE ANCHORAGE

HISTORIC DEPOT AND

THE PALMER STATE FAIR

PARK-AND-RIDE FACILITY.

ALL ABOARDALL ABOARD

2ND QTR 2014

12

EILEEN REILLY

CROSSINGS: PROGRESS ON CRITICAL POSITIVE TRAIN CONTROL PROJECT

PTC UPDATE: FUNDS/TECHNICAL/PERSONNELTh e Alaska Railroad continues to focus more

talent, resources and funding on developing and implementing a Positive Train Control (PTC) sys-tem that will meet federal requirements.

Funding: Th e State approved a $15 million appropriation

during the spring legislative session to continue ongoing work into 2015.

Personnel: Due to the critical nature, timing and budget

constraints related to PTC, beginning in Septem-ber, VP Eileen Reilly will devote all of her energies to the project (see separate story). Anticipating his July 10 retirement, for the past few months Road Foreman of Engines (RFE) for PTC Jeff Rognes has been training RFE Connor Keogh and Motive Pow-er Manager Dennis Bouwens. Th e PTC team will expand by additional positions this year. Wabtec Railway Electronics (WRE) is the contractor for PTC Offi ce and Locomotive components, and Wabtec personnel are frequently working on-site.

Technical Progress:Th e PTC system includes several distinct seg-

ments, which are all seeing progress.

Offi ce Segment:

Computer Aided Dispatch (CAD) – Th e Wabtec CAD system was operational mid-January.

Back Offi ce Server (BOS) – Th e Wabtec BOS enables PTC communications between CAD and locomotives.

Independent Validation Service (IVS) allows for radio blocking and electronic delivery of

authorities. Requirement writing is underway.

Locomotive Onboard Equipment:

Wabtec Global Services (WGS) has installed equipment on 12 SD70MACs and 4 GP locomotives so far this year. Installation on the remaining fl eet (54 total, including 28 MACs, 23 GPs, 2 power cabs and the DMU) is scheduled for this year.

Communications:

Communication engineering requires long lead times for tower equipment and compo-nents, and the environmental process. Crews installed a tower in Moose Pass this summer and a joint ARRC-State upgrade to the Miami Lake site (south end) is underway. Kashwit-na-to-Talkeetna is another focus area.

Radio frequencies are being acquired, which includes Federal Communication Com-mission (FCC) licensing and construction approvals.

Wayside:

Engineers and project managers are work-ing on Centralized Traffi c Control (CTC) installation between Pittman and Kashwitna. Wayside design and procurement is underway for locations between Wolf and Talkeetna (outside original test corridor).

Work on remote site power options include existing utility power lines, and use of solid oxide fuel cells.

Implementation and Integration:

Th e groundwork for testing was laid with an early May survey that tested 1,000 critical features in the test corridor. Th is is the tip of the formal testing “iceberg,” given there are tens of thousands of testing procedures to go.

In June, the Federal Railroad Administration (FRA) sent PTC personnel to Alaska to review ARRC plans and progress. Per FRA, ARRC will revise its PTC Implementation Plan to refl ect the Offi ce Segment delay.

FRA released three PTC technical bulletins about PTC operation in revenue train service. Documentation requirements are more exten-sive than anticipated and ARRC’s PTC team is seeking additional contractor assistance.

Schedule:

Expected operations by Dec. 31, 2018.

DURING HIS JULY 10

RETIREMENT PARTY, JEFF

ROGNESS, CENTER, IS

PICTURED WITH CONNOR

KEOGH, LEFT AND DENNIS

BOUWENS, WHO HAVE

BEEN TRAINING ON THE

POSITIVE TRAIN CONTROL

PROJECT.

(PHOTO BY STEPHENIE

WHEELER)

ALL ABOARDALL ABOARD

2ND QTR 2014

13SIDINGS: ACCOUNTABILITY, COMMUNICATION, TRAINING, SOCIAL NETWORKING

ENGAGEMENT AREAS: OUR DEFINITIONSTh e Alaska Railroad’s Engagement Commit-

tee continues to make headway in the four focus areas for 2014 and 2015. Th ese areas were defi ned by railroaders during the 2013 Safety Audit and Cultural Survey. Focus Area Defi nitions below are drawn directly from employee comments, and they are referenced often as new and improved programs and approaches are developed.

Employees defi ne Accountability:Accountability means we acknowledge and

assume responsibility for our actions, decisions, services and policies. We report, explain and answer for our successes and failures. We don’t take short cuts and we follow the rules. We plan, share information and provide performance standards and feedback. We provide positive recognition for a job well done and constructive feedback when improvement is needed. We are consistent and fair in how we work with each other. We walk the talk on safety and performance and we follow through on commitments. (See the story on Engagement and Safety for accountability examples.)

Employees defi ne Training: Training means we teach people the skills they

need to do their jobs, to make meaningful deci-sions and to improve their own capability, capac-ity, productively and performance. We encourage professional growth and development. We foster good management and supervision with skill-build-ing and mentoring opportunities. (See the story on Engagement and Safety for training examples.)

Employees defi ne CommunicationCommunication means we keep each other

informed within our work groups, between depart-ments and at all employee levels of the corporation. We share ideas, opinions, and company news and we involve each other in decision-making and plan-ning. We strive for focused and effi cient meetings. We ensure job requirements and expectations are clear. We recognize good performance and provide performance feedback. We exchange feelings, in-

tentions, attitudes, expectations and perceptions in a respectful way. Recent progress includes:

All employees have a company email address that can be accessed 24/7.

Frequent executive management emailed updates on important issues.

Timely response to suggestions and com-ments via the CEO News web page.

Re-building the Employee Portal (inter-nal web site) to be a fl agship communi-cation tool.

Dialogue in the fi eld between senior managers and front-line workers.

See the story on Engagement and Safety for other communication examples.

Employees defi ne NetworkingWe take time to connect as a “railroad

family” through non-work social events and enhanced work activities. We gather to network, team-build and foster relation-ships across departments and functions. We promote trust between departments and func-tions to enhance productivity, performance, and the ability to make meaningful decisions on the job. We recognize work service and performance milestones with functions that promote cross-department connection. New eff orts include:At the corporate level:

We enhanced the 2014 spring clean-up eff orts with barbecues and fun activities.

We ask employee opinions through online surveys (naming the web Portal)

We plan to organize or support an annual employee event. Look for an upcoming survey that asks employees their preference between a summer picnic or year-end holiday party.

At the department level, some groups are: Facilitating team-building parties and picnic-

based events Encouraging cross department visits to under-

stand job challenges and opportunities.

FAIRBANKS CLEAN-UP,

TOP PHOTO: HERDER

WINKLEMAN FINDS AN

PARTNERLESS SHOE.

BOTTOM PHOTO: MIKE

BUDD SHOWS OFF THE

MUHAMMAD ALI POSTER

HE FOUND.

(PHOTOS BY KATRINA

MARTOLANO)

ANCHORAGE CLEAN-UP,

FAR LEFT: HQ GROUP

ROB WALKER, GREG GO-

EMER, BLAKE ADOLFAE,

JEANETTE GREENBAUM,

DOUG STEPHAN AND TIM

SULLIVAN. LEFT: IN THE

YARD MECHANICS KEVIN

STANTORF, BRANDON

WATKINS, AND RICHARD

DICKERT.

(PHOTOS BY BRUCE

GOUGH)

ALL ABOARDALL ABOARD

2ND QTR 2014

14SIGNALS: ENGAGEMENT FOCUS AREAS TAKE AIM AT COMPANY SAFETY CULTURE

SAFETY UPDATE: 2014 ENGAGEMENT GOALSBy Tom Covington, Safety Director

Th e Safety Department has implemented many recommendations from Th e 2013 Engagement Survey / Cultural Assessment. Th is includes new safety initiatives that are in line with ARRC’s 2014 Engagement Goals involving Accountability, Com-munication and Training. Here’s where we are at:

Accountability

1. Restructured Weekly Managers Safety Review Meeting: Managers at all levels (supervisors to VPs) are held accountable to take correc-tive actions following all safety incidents. Th e company-wide meeting focus has shifted from discussing open incidents to reporting what has been done to resolve incidents. Primarily Opera-tions supervisors from Anchorage to Fairbanks participate. However the lessons are valid for all departments.

2. Restructured Monthly Safety Issue Resolu-tion Process (SIRP): When a safety concern is identifi ed with an entry into the SIRP system, supervisors are held accountable to take cor-rective actions. Similar to the Managers Safety Review Meeting, the SIRP meeting has also shifted focus to reporting on SIRP solutions. If a SIRP remains unresolved, a 3-person committee comprised of union and non-rep volunteers is assigned to make progress and report back at the next SIRP meeting. A good example of this is the SIRP for the Whittier rescue basket. Initially, the issue was to redesign the rescue basket arm and improve the stand to make it safer to deploy. Th e stand base was enlarged, hand rails added and a new arm for the wench was designed by a third party and installed. During a training session to test the newly-designed system, participants discovered a fl aw in the arm design that hindered basket deployment. A sub- committee has been formed to determine and evaluate all feasible rescue options for the Whittier slip.

3. Establish a Formal Safety Inspection Program: Safety Department began formal OSHA-based workplace inspections railbelt-wide this year, evaluating working conditions and holding de-partments accountable to fi x all discrepancies. A work center supervisor and worker shadow dur-ing the inspection to learn the types of hazards that OSHA would look for: poor housekeeping, insuffi cient clearances, electrical issues, etc. Th is training is preparing departments to eventually take over responsibility for inspections – likely

within a year. By then, supervisors and workers should be correcting discrepancies long before they might be identifi ed in an inspection.

4. Enhance the Formal Hazard Identifi cation & Risk Assessment (HIRA) Program: Initiated in April, ARRC’s new HIRA program helps to identify hazards and risks, rate and prioritize them for risk management. HIRA involves a group tasked with evaluating a job, equipment, situation or operation in a series of steps: 1. Identify the hazards; 2. Identify the risks (what can happen); 3. Current controls (to prevent or mitigate the risk); 4. Rank the risk (1-5, likeli-hood of incident happening; 5. Rank the severity (1-5, if an incident happens, how bad might it be). 6. Score – function of risk and severity ranking. If high, then more controls are needed. HIRA occurs at several levels:

Executive level — typically high dollar value or catastrophic business impact associated with the risk. Example: Hurricane Bridge: 1. Hazard is aging bridge structure; 2. Risk of failure – potential for injury, death and long-term business interruption; 3. Controls include regular inspections and recent rein-forcements; 4. Rank likelihood of failure; 5. Severity ranking very high. 6. Do we need to invest more in controls?

Management level — department or com-pany operations and policies. Example: A management group formed to look closely at FRA fi ndings from the METRO North Com-muter Rail incidents to measure how ARRC measures up against identifi ed at-risk behav-iors. Th e HIRA process helped to identify areas that require more attention.

Employee level — workplace or job evalu-ation. Example: Th ree Mechanical work-ers evaluate their work center, looking for signifi cant shop hazards (i.e., machine guards, lighting, escape routes, fi re hazards, etc.). Th rough the HIRA process, they determine if employees are doing enough to protect worker safety.

Communication

1. Establish Quarterly Executive Safety Planning Meeting: Executive management (Chiefs, VPs, Directors) review past quarter’s safety perfor-mance / initiatives and regulatory audits to stay in-tune with what is going on in the fi eld.

(See “Safety Update & Engagement...” on page 15)

TOM COVINGTON

ALL ABOARDALL ABOARD

2ND QTR 2014

15Findings are often shared during employee/crew briefi ngs. Examples of items that may be addressed at this high-level meeting: bottom-up recommended changes to the corporate Safety Manual, which requires top-down approval; high-level safety statistics that identify risk areas; results of regulatory inspections; presentations of new safety programs and policies.

2. Expand Quarterly Crew Safety Meeting: District Operations meeting between senior managers [Chiefs, VPs, Directors) and employees featuring open dialogue about safety incidents and initiatives. Southcentral meeting in place. Planning for Central and Northern areas under-way.

3. New System Safety Program Plan: Union and non-represented employee eff ort underway to develop an overall safety umbrella to manage AR-RC’s multiple safety programs, thereby improv-ing inter-department communications. Initial meeting planned for August. While this is not yet federally-mandated, it soon will be; and ARRC agrees with the process and program. Final plan to be submitted to FRA.

4. New Safety Policy Statement: New corporate policy statement is under development. It puts safety above all else, including performance. When complete it will be posted in employee areas rail-belt wide and emphasized in all forms of employee communication (in person, news-letters, online, etc.). It will also be discussed via in-person meetings between CEO, COO, Safety Director and crews.

5. Operational Monitoring: Mandated by regula-tion, Transportation operational monitoring involves testing that either confi rms correct job performance or identifi es performance that needs improvement. Emphasis is on taking the oppor-tunities to engage employees with both positive and negative evaluations. For example, during the fi rst half of 2013, 7,780 operational tests were conducted, with just 44 failures, equating to 7,736 opportunities for positive feedback.

Training1. Enhance Employee Analysis & Assessment

Skills: Eff orts are underway to train employees to take an active role in lowering risks to personal and work center safety:

Work Center OSHA-based Inspection Train-ing — As noted above under Accountability, employees and supervisors are training on how

and what to look for during in-house OSHA-based work center inspections.

Job Hazard Analysis (JHA) Emphasis — Th is program involves employees assessing their individual jobs for risks. JHA has been in place for years and its importance is being emphasized as a proactive mea-sure for all railroad positions.

HIRA Program Training — Safety is developing templates/job aids, technique training, and job briefi ng tools that enhance employees’ risk assessment skills. Employee groups are being trained in the HIRA process (see Accountability items) and beginning this July these groups will be involved in quarterly workplace assessments.

3. Investigations Programs: Findings are shared with all employees as a means to educate and avoid the causes. Investigation occurs at two levels:

First Alert: Opportunity to Learn — Begin-ning late April 2014, the new incident and initial investigation “First Alert” program en-gages the supervisor and employee to describe what happened and determine, together, what actions are needed to prevent re-occurrence. Th is level starts with initial incident notifi ca-tion.

Formal Investigation — Initiated early June 2014, this new program involves Safety Department formal investigations to identify direct and underlying causes. Trigger points (Agency reportable and dollar threshold) are used to determine if this sec-ond phase of investigation is warranted. If so, Safety Director and all interested parties are represented in fact-gathering and recom-mendations.

4. Operational Monitoring: Supervisors have, and will continue to be, trained in how to evaluate and com-municate the positives and negatives with employees.

SAFETY UPDATE & ENGAGEMENT GOALS ... (continued from page 14)

IN-THE-FIELD

ENGAGEMENT

ABOVE: MOW LEAD

CLIFF GILES, LEFT, TALKS

TO CEO BILL O’LEARY

AND COO DOUG

ENGEBRETSON ABOUT

WAYS TO HELP MOW

EMPLOYEES DO THEIR JOBS

AND KEEP INFORMED.

BELOW, L-R: CEO

BILL O’LEARY, GENERAL

BRIDGE SUPERVISOR

AL PRICE AND COO

DOUG ENGEBRETSON

DISCUSS THE WORK ON

PORTAGE TUNNEL.

(PHOTOS BY TOM

COVINGTON)

GREAT SHOT! PHOTOS ON THE RAILEMPLOYEE PHOTO SUBMISSIONS ELIGIBLE FOR $200 DRAWING. STILL SEEKING PHOTOS FOR 2014!

All Aboard is always looking for photos of employ-ees and railroad operations to share in the newsletter. At year end we draw from the names of folks who submitted a photo. One lucky submitter receives $200 in gift certifi cates. To participate, submit photos to Stephenie Wheeler by email or company mail. Digital cameras should be set to “fi ne” or “high resolution” to ensure photos are suitable for print. Questions? Con-tact Wheeler at 265-2671 or WheelerS@akrr.com.

Th ese are a few more photos Bruce Gough took during the Anchorage Clean-up day in early May.

ROB WALKER AND BARB ROGERS “FIGHT” OVER A PRIZE EGG.

SECOND QUARTER 2014

ALL ABOARDALL ABOARDNEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

Alaska Railroad Corporation

P.O. Box 107500

Anchorage, AK 99510-7500

www.AlaskaRailroad.com

Printed on recycled paper

Member &Suppporter

PRSRT STDU.S. POSTAGE

PAIDANCHORAGE, AKPERMIT NO. 845

MECHANIC MIKE WILLIAMSON HELPS

TO CLEAN UP THE AREA AROUND THE

ANCHORAGE YARD SHOPS.

PURCHASING MANAGER LEE THOMPSON

CLEANS UP AROUND THE ANCHORAGE

HISTORIC FREIGHT SHED.