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When the fire came, Alaskans stepped up to support the community of Tuluksak
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CONTENTS JUNE 2021 | VOLUME 37 | NUMBER 6 | AKBIZMAG.COM
FE AT UR E S 10 CONSTRUCTION
16 REAL ESTATE
Spring Dredging
Alaska Homeowners Cashing In
Manson’s ship-sized vacuum keeps the Port of Alaska open for operations
High demand, low supply creating chaotic residential real estate market
By Danny Kreilkamp
By Vanessa Orr
22 TOURISM
The COVID-19 Shuffle Small tourism finds big solutions By Tracy Barbour
72 OIL & GAS
Is Alaska Oil Measuring Up? How our oil industry compares to other oil-producing states By Julie Stricker
76 MINING
Copper Craze Green tech increases demand met by mining By Isaac Stone Simonelli
66 FISHERIES
Oceans of Opportunity Alaska seafood products reach far beyond state’s shores
Southeast Alaska Real Estate
Ahtna Environmental, Alaska Seafood MarketingInc. Institute
By Vanessa Orr
QUICK READS 8 FROM THE EDITOR
82 INSIDE ALASKA BUSINESS
86 ALASKA TRENDS
82 ECONOMIC INDICATORS
84 RIGHT MOVES
88 OFF THE CUFF
4 | June 2021
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We’ve always believed in Alaska. And for nearly a century, First National has helped Alaskans build strong, local businesses and communities. Together, we can build a brighter future. Like you, we’re here for the long haul.
CONTENTS JUNE 2021 | VOLUME 37 | NUMBER 6 | AKBIZMAG.COM
S P EC I A L S EC T I O N : T R A N S P O R TAT I O N 42 3,300-FOOT LIFELINES
36 ALASKA PROBLEMS REQUIRE ALASKA SOLUTIONS
Remote runway construction takes grit, group effort By Amy Newman
48 DRONES, ORBS, UAS
Whatever you call them, they’re taking off on St. Paul Island
Local businesses rally to address water crisis in Tuluksak
By Tasha Anderson
By Julie Stricker
Judy Patrick Photography | Donlin
54 TRANSPORTATION DIRECTORY
28 46 VILLAGES IN 10 DAYS
The stellar effort to get vaccines where they were needed most By Isaac Stone Simonelli
Alaska Airlines
ABOUT THE COVER When the water plant and washeteria in Tuluksak was destroyed by fire in January, the transportation industry didn’t wonder what the community would do—it figured out how to help. And because of the village’s remote location, a winter of heavy snows, and the immediate need, Alaska’s aviators in particular were able to fly in with much needed assistance. Ryan Air, Yute Commuter Service, Ravn Alaska, and DesertAir all worked to get water and other freight on the ground to provide relief for village residents. “The villages make up the entirety of our business,” says DesertAir President Joey Benetka, featured on the cover this month with one of the company’s 1944 Douglas DC-3s. “So when we recognized there was a need in the region… we wanted to offer a flight we know would be well-utilized and full to maximum capacity.” Read more about the business community’s efforts to aid Tuluksak in Alaska Problems Require Alaska Solutions. Cover Photo by Kerry Tasker
Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2021 Alaska Business Publishing Co. All rights reserved. No part of this publication June be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.
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FROM THE EDITOR
VOLUME 37, #6 EDITORIAL STAFF
Community Matters
Managing Editor Kathryn Mackenzie
W
Digital and Social Media Specialist Arie Henry
hen a fire destroyed the village of Tuluksak’s water purification plant and washeteria in mid-January, it took a community of businesses from all around the state to transport bottles of water and other vital necessities to the village until the YukonKuskokwim Health Corporation was able to restore continuous access to drinking water with a reverse osmosis water filtration system. When the pandemic continued to threaten villages throughout rural Alaska, the community stepped up again with groups from federal, state, and local organizations working together to coordinate efforts to roll the vaccine out to some of the state’s most remote locations. Using local knowledge and some serious logistics, this state’s community of businesses, healthcare providers, friends, and neighbors helped prevent a fragile healthcare system from being overwhelmed. And yes, this was a new challenge, a new virus, but Alaska has been working with tribal health organizations to distribute vaccinations to its remote communities for years, the community was already in place, and that allowed for more rapid vaccine distribution, points out Robert Onders, state liaison for the Alaska Native Tribal Health Consortium in this month’s article about rural vaccine distribution, “46 Villages in 10 Days.” This issue of Alaska Business features our annual transportation special section (complete with directory) and while these stories are about transportation and logistics, they're really about community and the power of people working together toward a common goal. We know that the place we call home is unique in ways we are still discovering and requires a lot of each of us to carve out a life here. And we also know that whatever it requires, it’s worth it, not just because of the natural beauty that surrounds us and abundant freedom to make of your life what you want, but because of the unmatched generosity of spirit of its residents. Because we live in a thriving community that knows that our lives here are intertwined and, simply put, we need each other to survive. It’s a beautiful thing to see business “rivals” such as DesertAir, Ryan Air, Yute Commuter Service, and Ravn Alaska working together toward one common goal of helping neighbors in need. Even multinational corporations and long-time, established competitors like PepsiCo and the Coca-Cola Bottling Company of Alaska recognize the notion of being stronger together and teamed up in partnership with Ravn Alaska to donate 6,000 pounds of water to Tuluksak. A community is much more than a location. Sure, there are neighborhoods and cities, towns and provinces everywhere you go, but what makes a community is the people. Alaska’s community is unbreakable and unstoppable because it doesn’t take a crisis for us to be there for each other, we just are. And we can thank the Alaska Native people whose values of showing respect to others, sharing what you have, taking care of others, and recognizing that all things are connected created the foundation upon which this state’s community was built. Thank you to everyone who participated in this month’s issue focused on the power of people getting things done together. Today, we’re stronger than ever, together.
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Erik Hill | Port of Alaska
CONSTRUCTION
P
Spring Dredging Manson’s ship-sized vacuum keeps the Port of Alaska open for operations By Danny Kreilkamp
10 | June 2021
ut simply, dredging is the excavation of unwanted materials from a marine environment. But this simple procedure is key to facilitating a variety of more complex processes. From building new docks to maintaining existing ones, dredging is a crucial piece to maritime success. And for the Port of Alaska, it’s no different.
‘A Complete and Total Dance’ The Port of Alaska is a critical piece of infrastructure not only for the state it serves but also in terms of national security. Recognized as a US Commercial Strategic Seaport by the Department of Defense, it’s the only tsunamiproof, inbound cargo port in all of Southcentral. In 2020 alone, the Port handled more than 4.5 million tons of fuel and cargo. And as Anchorage’s only designated foreign trade zone, it sees its share of traffic. The Port welcomes everything from fuel tankers to 100-plus passenger cruise ships, facilitating the steady flow of the state’s most important products. Coordinating the flow of this traffic is “a complete and total dance”
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according to Jim Jager, the Port’s director of business continuity and external affairs. And one party that the Port coordinates with on a regular basis is Manson Construction Co.— the company that held most of the Port’s maintenance dredging contracts in recent memory, and is again the winner of the latest. “This port up here is a primary marine cargo handling facility for the state,” says Jeremy Cook, a project manager with Manson. “It's a very important strategic place. They can't just have whoever's going to give them the best price come in here and try to do the work. It’s too critical to play around with. They really need a reputable company that can definitely come in and get the job done—because if not, you know, this is Alaska's lifeline.” While the docks belong to the Port of Alaska, Jager explains that because the contract involves federal waterways, the US Army Corps of Engineers is the party responsible for issuing the dredging contract. It is always a competitive process, but with Manson, the USACE has found an able and reliable contractor to serve its needs.
Typically, Manson’s dredge arrives in the Port of Alaska’s waters sometime in April after the ice has cleared up. “We have to have daily communication with Manson because the dredging all works around our operational schedule,” says Jager. “And during the summer, we’re actually out checking the port on a weekly basis for where the silt is in-filling.” “Particularly this year, with the Petroleum Cement Terminal construction going on… everybody has work they have to do, so we have to cooperate a lot,” he adds.
Digging Deeper While dredges are used to tackle an assortment of marine construction projects, the specific purpose of Manson’s contract in the Port of Alaska is for maintenance. As the natural process of sedimentation occurs, sand and silt gradually accumulate in the Port’s channels, creating issues for vessels that need access. “All the material that we remove is material that comes in—so we call it ‘in-
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“Dredging is an inexact science—it’s more art than science sometimes. While we average about a million cubic yards of material every year that is dredged out of our ship berths, that varies quite a bit.” Jim Jager Director of Business Continuity & External Affairs Port of Alaska
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Manning the 24-hour maintenance dredging operation is a team of four: two people on the tugboat Gladys M, which pushes the dredge Westport, and two people on the dredge itself. Port of Alaska
“This port up here is a primary marine cargo
It takes around 3 to 4 hours for the Westport to fill up with material before taking it to a designated dumping location one mile away. Port of Alaska
handling facility for the state. It's a very important strategic place. They can't just have whoever's going to give them the best price come in here and try to do the work. It’s too critical to play around with.” Jeremy Cook, Project Manager Manson Construction
12 | June 2021
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fill,’” Cook explains. “As material comes down from the rivers, the material starts to settle. And when it builds up, that material can obstruct the ships and needs to be removed.” Enter the Westport: a 180-foot, redand-white hopper dredge, and the brawn behind Manson’s maintenance dredging operation. Cook compares the machine to a giant vacuum, floating along the surface of the Cook Inlet. “So basically, the hopper is like the vacuum bag, and it’s where all the material goes. And the drag arm itself is like a vacuum, which is the suction part of it. So material sucks up through the pumps, through the pipes, and into the hopper.” Manning the 24-hour maintenance dredging operation is a team of four: two people on the tugboat Gladys M, which pushes the Westport, and two people on the dredge itself. “You have two pieces to this puzzle: the tugboat which controls where the dredge is and where the drag heads go. And then you have the people on the dredge that control the depth of the drag head.”
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It takes about three to four hours for the hopper to fill before it’s ready to be dumped, says Cook. “From there, we take it about a mile away and dump it out in a designated zone,” he continues. “It’s very, very deep and the currents are strong. So the jury is still out if that material ever even reaches the bottom.” Although the equipment has more or less remained the same through the years, Cook says that there have been some advances made in terms of the technology—particularly in data collection. “We have a survey boat that goes out and surveys the entire area where we dredge. They go back and forth on these lines collecting data, and the data collection device is basically measuring the distance from the boat down to the sea floor,” he says. Once the data is collected and the depths are identified, the information is then processed into an electronic map that guides the dredge operators. “Both pieces of equipment work together to achieve the required depth because the material in-fills in different spots,” says Cook.
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Alaska-specific Challenges On dredging challenges specific to the Port of Alaska in Anchorage, there was no hesitation in Cook’s response. “Definitely the tidal swings; 30-foot tidal swings create very strong currents. When you have such a mass amount of water coming in and out, it creates very strong currents that rip through the Port. So trying to operate the dredge with the fast currents is always a challenge.” Cook also points to the challenges of maneuvering in ice during the early part of dredging season and end of season issues like decreasing daylight and colder temperatures. Jager adds that the issue of tidal swings is also the reason that Anchorage lacks a harbor—something he’s keen to differentiate between a port. “A harbor is basically a parking lot where you keep a boat; a port is basically a place where cargo or people moves back and forth,” he explains. “So we don’t have a harbor here because of our 30-foot tides and the silting. For years people have said, ‘Why doesn’t Anchorage have a small boat harbor?’ Well, it’s because
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Manson’s dredge in Anchorage’s Cook Inlet. Manson Construction Co.
we wouldn’t be able to keep it open because of all the dredging.” He continues: “In a harbor, you purposely slow the water down because you want the boats to be in a nice safe area… but if you’re purposely slowing the water down that’s where all the silt is going to drop out. Pretty soon your harbor won’t be wet—it’ll be a mound.”
Climate Considerations While the mechanics of dredging are relatively straightforward, the science behind the issues it seeks to address is another story. There’s a multitude of factors that influence the amount of material that’s ultimately dredged in any given year. “Dredging is an inexact science—it’s more art than science sometimes,” 14 | June 2021
says Jager. “While we average about a million cubic yards of material every year that is dredged out of our ship berths, that varies quite a bit.” Last year was a heavy dredging year, with Manson’s Westport removing somewhere in the region of 1.2 million cubic yards of material in 2020. And part of the reason, Jager explains, is due to unpredictable weather patterns. “How much glacial melt you get, the rain you get up on the Matanuska drainage, or the Knik glacier drainage—that all impacts how much silt we get. “Everybody thinks of glaciers as these great big pieces of ice; they’re really giant earth grinding machines. They grind up lots of rock into fine
glacial silt that they dispose of by putting it into the river systems, then the river systems deposit it into Knik Arm, and then the tide moves it back and forth. And where the current slows it down—like where we dock our ships—that’s where the silt drops out.” The Port of Alaska is currently working with Pacific Pile & Marine on building a new Petroleum and Cement Terminal, as well as performing stabilization work on the port’s North End. Jager is hopeful that by removing some of the sheet pile and restoring the shoreline on the port’s north end, the amount of material that will have to be dredged will be reduced. But the question of exactly how much remains difficult to predict.
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BUILDING ALASKA’S RESOURCE INDUSTRIES Our innovative solutions and experience in Alaska construction and maintenance are second to none. From the Kenai Peninsula to the farthest reaches of the North Slope, CONAM has been there and built that. “Everybody says that it’s going to reduce the amount of dredging we have to do. Now if you ask them for specific estimates—they’re all over the place,” he says, adding that the predictions have generally fallen within a range of a quarter million cubic yards. “They all say it’ll be less, but because they’re all focused on slightly different pieces of it, they come up with different numbers,” says Jager. With something as complex as climate science, there’s always going to be a degree of uncertainty. As for an estimate of how much silt they’re expecting for 2021, Jager says this: “If you ask six different scientists, you’re going to get seven different answers.” www.akbizmag.com
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Alaska Homeowners Cashing In
R E A L E S TAT E
High demand, low supply creating chaotic residential real estate market By Vanessa Orr
T
he word “unprecedented” was tossed around a lot in 2020, and it can also be used to describe what’s been happening in the residential housing market since the pandemic hit. A mix of low interest rates, lack of inventory, and more time spent at home has resulted in a real estate boom unlike any other. According to Redfin, a national real estate brokerage, home prices nationwide were up 16.7 percent year-over-year in March. At the same time, the number of homes sold rose 13.4 percent and the number of homes for sale fell 52.5 percent. And Alaska’s not immune from this housing frenzy. “I’ve been in business for forty years, and I’ve never seen such a high demand for homes and lack of inventory,” says Connie Yoshimura, broker/owner of Berkshire Hathaway HomeServices Alaska Realty. “What we’re seeing here is very much like the housing market in the Lower 48 with multiple offer situations, bidding wars, and escalation clauses in purchase and sale agreements. And this is happening at all price points because of historic low interest rates.”
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The Perfect Storm
16 | June 2021
There are several reasons why the housing market has exploded. Low interest rates are allowing people to get more house for their money—and staying cooped up during the pandemic has made a lot of people realize that their space isn’t suitable for their current lifestyle. “Even if interest rates went up 1 point—and historically, they go up in smaller increments—at the end of the year, an interest rate of 4 percent is still an incredibly low rate,” says Yoshimura. “Rates like this bring more buyers into the marketplace.” It also causes a domino effect: when someone buys a condo, the condo owner may move to a single-family home, causing that homeowner to move into a larger, more luxurious home or a place with more land, or to divest and buy a second home or cabin.
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According to Karen Wright, past president of the Southeast Alaska Board of REALTORS and a realtor with Southeast Alaska Real Estate, because of low interest rates, what homebuyers can afford now is drastically different than what they’ll be able to afford when rates go back up. “If you’re paying 4.5 percent on a 30-year loan, your mortgage payment on a $490,000 home is $2,482 per month,” she explains. “Reduce that to 3.5 percent, and you’re paying $2,200 per month. You can put $10,000 more toward a home with that lower interest rate for the same monthly mortgage payment.” Matt Dimmick, founding member of Keller Williams Realty Alaska Group, adds that people are also saving more money as a result of COVID-19, giving them more investment opportunities. “With the pandemic, fewer people are traveling, which is pretty expensive to do from Alaska, and they aren’t going out to eat,” he says. “The lower interest rates are encouraging them to put that money into a piece of real estate, especially after being penned up in smaller dwellings dreaming about bigger homes.”
A tight housing market in Southeast has led to a spike in prices from $378,000 in 2016 to $490,000 in 2020. Southeast Alaska Real Estate
Supply and Demand There’s good news and bad news, depending on whether you’re buying or selling. The good news is that sellers are seeing an influx of interest in their properties; the bad news is for those trying to buy a home, there’s a lot of competition. There are a number of reasons why supply is low, depending on where in the state homebuyers are looking. In Anchorage, for example, three years of a statewide recession before the pandemic slowed the building of new homes, as did having viable land on which to build. “The recession resulted in fewer than 200 new single-family homes being built in Anchorage during the three- to four-year period prior to the pandemic, resulting in less than one month’s worth of inventory,” says Yoshimura. “We also have a shortage of residential land zoned for single-family homes; most of the land available now is difficult and expensive to develop, with wetlands and the need for off-site extensions for water, sewer, and roads.” www.akbizmag.com
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Rising costs combined with a shortage of materials as a result of the pandemic are also factors. “Because we are such a small housing market in relation to communities in the Lower 48, our supply chain was disrupted first,” says Yoshimura, adding that tariffs attached to soft lumber coming out of British Columbia exacerbate building issues. “We are more than twelve weeks away from getting new appliances and lighting fixtures because much of that comes from China.” “Contractors are building as fast as they can, but they’re facing supply problems as a result of the pandemic, as well as huge spikes in building material costs,” adds Dimmick. “In some cases, they’re having a hard time pricing new construction property, because by the time a home is finished, it can’t be built for the amount it cost to build. “In Anchorage, there is also a lack of quality buildable lots, which is causing a migration out to Wasilla where builders can find more land and create a more cost-effective property that way,” he continues.
Contractors are building as fast as they can to meet demand but are facing supply chain problems and spikes in material costs as a result of the pandemic. Southeast Alaska Real Estate
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More than 3,200 homes in Anchorage sold in 2020, the most in more than a decade and well above the annual average, according to the Alaska Multiple Listing Service (MLS). As of December 23, 2020, Anchorage had seen a 25 percent increase in total sales volume at $1.25 billion, not including condos and mobile homes. In 2016, the average time on the market was 51 days; in 2021 it was 42 days, an almost 20 percent decline. Even where there’s a lot of building going on, houses are still in short supply. “We’ve had quite a bit of construction going on over the past ten years, including new single-family homes, attached homes, large apartment complexes, and several new condo developments,” says Wright. “Yet when I went to the MLS to pull up how many residential housing units are available to purchase right now, including mobile homes, condos, and singlefamily homes, there are only thirty-five properties on the market—period. “Of the single-family homes, including townhomes, that can be purchased and moved into in the next sixty days, there are only seven
As of the end of 2020, Anchorage saw a 25 percent increase in total sales volume at $1.25 billion, not including condos and mobile homes. Southeast Alaska Real Estate
Nearly every home on the market in recent months has seen a bidding war and almost every seller has received multiple bids, realtors say. Southeast Alaska Real Estate
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In Anchorage, fewer than 200 new single-family homes have been built in the last few years, resulting in less than one month’s worth of inventory. Berkshire Hathaway HomeServices Alaska Realty
The rental market is also tightening up, with some homeowners considering renting their properties instead of selling their homes. Southeast Alaska Real Estate
properties available,” she continues. “The rest are under construction. That’s a pretty significant figure.” Wright compares this to the same month in 2016, when twenty-four homes were listed for sale, with only one being new construction. The average price then was $378,000 with a median price of $368,000, compared to 2020’s average price of $490,000 with a median price of $454,000. “In new construction, the prices just keep going up,” Wright adds. “Properties that are under construction 20 | June 2021
have jumped $20,000 since they were first listed, and they are not even built yet! A large part of this is the huge increase in the costs of building materials, which is being passed on to the consumer.” When homes do become available, there are often numerous buyers, which can result in escalating prices and bidding wars. “Because of such low inventory, we’re seeing multiple offers on homes, and homes selling within a day or two,” says Yoshimura. “For example, in Girdwood, which is a very difficult
area to get into, we recently had a listing that was appropriately priced and received offers $100,000 over the list price. That is a good indication of how anxious buyers are to get into that market.” “It’s been insane,” says Wright of the changes wrought by low supply. “For example, a brand-new property just came on the market today with the caveat that all offers would be reviewed on a certain date at a specific time. Five years ago, you weren’t told when sellers were looking at of fers, or when they would get back to everyone. “Almost every home I’ve seen on the market has had a bidding war, and almost every single seller has received multiple bids,” she adds. “Even showing the properties has been challenging because so many people want to see it that you have to schedule visits a halfhour apart.” In such a hot market, a lot of people are considering selling their homes to cash in. “While it has encouraged some people to take advantage of the price jump, it’s a double-edged sword,” says Dimmick. “They want to sell and stay in the area, but it’s hard to find a replacement property. “With people paying more than asking price, taking homes as-is, and even paying sellers’ closing costs, it’s very competitive to get a house for a buyer,” he adds. “Right now, that’s the most stressful part of being a buyers’ agent.” He adds that despite the fact that a home’s average days on the market has decreased, realtors are writing longer contracts because inspectors, appraisers, and title companies are so backed up. “At this point, we’re writing deals that used to be thirty days, that are now more like forty-five to sixty days because of the timing it takes to close unless it’s a cash deal,” Dimmick says.
The Condo and Rental Markets While single-family homes are flying off the market, the condo market has had a slower start—in Anchorage, for example, entry-level condo sales appreciated roughly 5 percent in the past three years. The rental market is tightening up, with some
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homeowners considering renting their properties instead of selling their homes. “The rental market is pretty tight, primarily because the affordability of homes is so high; it went up 6 percent last year, after an increase of 2 percent the year before,” says Dimmick. “A number of people are exploring the rental market, asking us about renting rather than selling,” he adds. “Right now, however, rental prices aren’t in line with the value of the property; rental prices are actually low for what the market is.” Yoshimura, who owns a duplex rental unit, has seen the desire for these properties firsthand. “It normally takes sixty days to rent the unit, and we rented it in seven days,” she says. “However, there is some rejection in the market; if you own a four-plex or six-plex built in the early 1980s during the height of the pipeline boom, and it is not remodeled with new flooring, bathrooms, and kitchens, you’re not going to get a good rate. To be competitive, these properties need to be well maintained and remodeled.”
Buyer (and Seller) Beware Yoshimura does have a word of caution for both buyers and sellers in this chaotic market. “When the market is this active, you have to worry about scammers,” she says. “Historically when there’s a hot market, buyers have been known to come in and make an offer on a piece of property, giving the seller earnest money. If they don’t get the property, they want to be reimbursed immediately, which can be thousands of dollars. But brokers need to be very careful not to disburse those funds until they know that the check has cleared. “People are in a rush, and the buyer wants to make an offer on another property but in all of this activity, it’s still important to follow the appropriate protocols and state statutes,” she adds. “I’ve seen a number of shor tcuts being taken—including drive-by appraisals and a lot of mortgage originator pop-ups—because everyone in the real estate industry is anxious to grab some of this activity. It’s smart to be cautious.” www.akbizmag.com
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Alaskan Tour Guides
TOURISM
F
The COVID-19 Shuffle Small tourism finds big solutions By Tracy Barbour
or more than two decades, Alaskan Tour Guides has offered multi-day trips in Alaska. In a typical year, the Wasilla-based business takes hundreds of guests on excursions, ranging from exciting sled dog kennel tours and wildlife viewing to sightseeing in breathtaking national and state parks. The company also customizes trips for families and other groups that want to create a unique travel adventure. “Primarily, our travel is along the road system between Homer and Fairbanks,” Owner Doreen Toller says. “We put together the whole vacation for folks, including lodging, transportation, tours, and meals.” When the COVID-19 pandemic hit last year, it completely disrupted everything for Alaskan Tour Guides. The company was 75 percent booked at the time—then it was forced to cancel all tours. COVID-19 created too many uncertainties about which businesses would be in operation and how they were going to operate. And Toller wanted to make sure customers received the best possible service. As a creative solution, Alaskan Tour Guides allowed customers to carry over their tours and receive discounts on some activities. “We charged a small cancel fee, and we allowed customers to use that fee as a credit when they rebooked,” says Toller, who is proud of her company’s frequent 5-star Tripadvisor reviews. “We basically did everything we could for the customer because of the unknowns with COVID.” The company’s strategy for this year is to not only sell tours but to also sell travelers on the idea that Alaskan Tour Guides is on top of the protocols for keeping them safe. Toller explains: “We bought the UV light wands and additional sanitizers. We are requiring our travelers to provide proof of vaccination or a negative COVID test within 72 hours of arriving. That’s for the comfort of travelers, who are loving that. We are trying to let people know we’re operating in a safe manner.”
Industry Experts Watch Businesses Evolve Alaskan Tour Guides’ response to the pandemic is consistent with what’s been happening with many other tourism-related, small businesses in the state. The COVID-19 crisis has kept Alaska's traditional visitor dollars literal oceans 22 | June 2021
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away, causing small businesses that typically rely on that money to find creative ways to keep their doors open— all while implementing optimal safety procedures and modifying how they cater to local and online customers. As a result, Alaska’s travel and tour industry experts have seen businesses evolve in interesting ways. Early last year when necessary travel restrictions went into place, everyone from tour directors to fishing guides to bed and breakfast owners were forced to react in crisis mode, according to Sarah Leonard, president and CEO of the Alaska Travel Industry Association (ATIA). Companies had to make quick decisions on issues like rebooking policies, staffing, and how to continue to pay bills with no cash coming in. “As we started to see limited opening capacity for food-service type businesses, the tour operator sector was still challenged by finding cash and support with no visitors and revenue coming through the doors,” Leonard says. “Even today, tourism business owners continue to try to navigate complex federal funding programs while adapting their business
Alaska’s travel associations shifted a large portion of their marketing resources to in-state campaigns encouraging residents to support their state by visiting places "in their own backyard." Alaskan Tour Guides
deliveries for people as they began to order groceries and plants early in the pandemic. And Stan Stephens Glacier and Wildlife Cruises in Valdez focused on making boat improvements last summer when the business normally would have been welcoming sightseeing and wildlife viewing guests.
operations to COVID-19 safety and health protocols in order to protect their teams and guests.” Juneau Food Tours, for example, revamped its in-person food tour to provide Alaska gift boxes for online purchase. Salmonberry Tours in Anchorage used its shuttles to provide
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ATIA and other destination marketing organizations in the state have also had to be resourceful in their pandemic response. From the beginning, Leonard says, ATIA’s small teams of employees worked tirelessly to gather and share the sometimes-overwhelming information coming at its industry— whether it was ever-changing health and travel mandates or the various and complicated funding applications and processes. “We heard daily from our tourism friends and association business members the struggles they were facing about how to keep their employees paid and businesses afloat while at the same time trying to keep ATIA’s doors open,” she says. As the leading statewide membership association and voice for Alaska’s travel and tourism industry, ATIA developed high level COVID-19 safety
protocols for tourism businesses based on government guidelines and best practices. It also hosted complimentary virtual webinars, providing information on funding and safety topics, and advocated at the state and federal levels for continued support for tourism across Alaska. “As businesses did begin to open, ATIA shifted its limited marketing resources last summer and focused on an in-state campaign encouraging Alaska residents to support their neighbors and communities by visiting places ‘in their own backyard’—perhaps places they had never been to in Alaska before. ATIA’s instate campaign, called Show Up for Alaska, will be renewed this summer, too,” Leonard says. Casey Ressler, marketing and communications manager at the MatSu Convention & Visitors Bureau, has Instate marketing and tourism has been critical for the survival of a significant number of Alaska’s small businesses. Tom Bol | Mat-Su CVB
24 | June 2021
also seen small businesses in his area evolving to survive. “Restaurants in the past that never thought of doing takeout have done 100 percent take-out,” Ressler says. “And we have some of the hotels with completely touchless check in.” As a new twist, some bureau members partnered together to form the Alaska Experience Company, which offers a collection of different adventures. The tours give families and other small groups convenient access to popular tour packages. “I think it illustrated that people want an option to book one thing and have everything included,” he says. During the pandemic, the Mat-Su Convention & Visitors Bureau has also undergone its own transition. The bureau’s four full-time employees were able to pivot on the fly and become more proactive. “One thing that was important to us was that we become a community asset, a resource for our members,” Ressler says. “We made more than 1,500 calls last year to our members, pointing them in the direction of grant applications and telling them how to safely reopen. Having that constant communication every day was super important to members.” The bureau also offered webinars that gave its members access to national experts on the federal relief bills and leading marketing experts with tips to help them move forward. “We went from 100 percent, ‘let’s market, market, market’ to being a resource,” Ressler says. “I’m proud of how we were able to meet that challenge.” The Mat-Su Convention & Visitors Bureau is now enhancing its advertising to target Alaskans. Instate marketing and tourism has been critical for the survival of a significant number of small businesses. “There is no question that Alaskans kept some of our small businesses open last summer,” Ressler says. “It was a little scary last year with tourism last summer. The importance of Alaskans was something that maybe we didn’t fully understand—maybe because we were focused on outside businesses.” The bureau is also intensifying its marketing efforts to woo independent travelers from outside Alaska through publications like AARP The Magazine. “All of us are identifying those travelers
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who have considered Alaska to be a bucket-list destination,” he says. “Alaska is still seen as that exotic destination.”
Proactive Stance Helps Mitigate COVID-19’s Impact In Kodiak, small businesses have also been creative, flexible, and proactive in their efforts to ride out the pandemic. Ultimately, this stance has benefited the community, according to Discover Kodiak Executive Director Aimee Williams. “Tourism was given an advance notice of the pandemic before it actually impacted that particular business sector,” she explains. “Decisions had to be made about whether or not to purchase insurance, make additional investments, and even to operate during 2020 or not. Several of the wilderness lodges around Kodiak Island did not see a way to make money in the 2020 season, so they opted to not open. Although this was a very hard decision, it was determined that they would lose less if they stayed closed until 2021.” In fact, Williams says, the City of Kodiak was at the forefront of realizing that its small businesses were going to
Small businesses like those lining the streets of Skagway have also been creative, flexible, and proactive in their efforts to ride out the pandemic. Frank Flavin | Skagway Convention & Visitors Bureau
need assistance to be able to survive the 2020 season. So the city used a generous portion of its Coronavirus Aid, Relief, and Economic Security (CARES) Act funding to set up a needsbased grant program to transfer money to businesses quickly. Kodiak formed a new nonprofit, the Kodiak Economic Development Corporation (KEDC), and used that entity to evaluate
applications and set grant amounts. KEDC is actually housed at Discover Kodiak’s location. “As the executive director of Discover Kodiak, I knew that we wouldn’t be doing much of our normal tourism-focused work, so we volunteered to be the face of the grant program,” Williams says. “We completed two rounds of grants spread out over a few months and distributed grant
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money to 339 different small businesses. With an additional $500,000 of CARES Act funding being contributed by the Kodiak Island Borough, KEDC helped disperse over $3.5 million to help our businesses weather the COVID storm.” Kodiak’s enterprises displayed their ingenuity in various ways. For instance, the Islander Bookshop joined forces with a community of independent bookstores. They used an online platform for customers to be able to order books, have them delivered by mail, and they still received a part of the profit. “This allowed the shop to be able to rethink their business plan and begin the lengthy process of creating their own online store,” Williams says. The Kodiak Island Brewing Co. added a beer garden to allow for social distancing. Ardingers Fine Furniture initiated Facebook live tours through its store to inform customers about new inventory and subsequently took phone orders and offered curbside pickup. And BearTown Market, a group of local artists that set up an art market for when cruise ship passengers are in town, found a unique way to adapt to the local impact of COVID-19. “Due to low tourism numbers, they created a subscription box so that local artists could maintain a portion of their incomes,” Williams says. “Since its inception, the subscription box has been popular, and Kodiak-created goods and art are being shipped all over the United States.”
Skagway, like many other places in Alaska, has a high concentration of tourism businesses and a strong reliance on cruise ship visitors. And for more than a year now, the community has been deeply impacted by restrictions on cruise ship travel and the Canadian/ US border closing to non-essential travel. “Our highway access is through Canada, so people can’t drive where we are located,” explains Cody Jennings, tourism director of the Municipality of Skagway Visitor Department. “And passengers aren’t arriving by cruise ships, so businesses didn’t really have the opportunity to be creative.” Still, some year-round businesses in the community of 1,000 residents tried to be as resourceful as possible. Some restaurants and retailers began offering curbside pickup and delivery. Businesses like Skagway Brewing Company and Grizzly's General & Skagway Radio Shack really stepped up to serve the community, Jennings says. “We’ve done whatever we can,” she says. Due to the pandemic, Skagway lost about 90 percent of its economy in one year, according to Jennings. To shore up the community, the municipality used a unique tactic to dispense its CARES Act funding. It distributed monthly checks—$1,000 per person—with the stipulation that recipients spend the money locally. “Our community leaders were very thoughtful about how to make that CARES Act money work for the community and residents,” she says.
Visitors enjoy magnificent views from a bluff overlooking the Matanuska Glacier. Tom Bol | Mat-Su CVB
26 | June 2021
“It kept our businesses and families afloat.” Jennings adds: “We haven’t seen the end of this. We have to go another whole year without a cruise ship— unless the CDC does something with their Conditional Sailing Order and the Canadian border opens.” In the meantime, Skagway is eager to stimulate local events to support the community. Consequently, the city is pursuing partnership and regional advertising opportunities with the Alaska Marine Highway System, airlines, water taxis, and other entities. And even though it has high vaccination rates and relatively few COVID-19 cases, the city is also working on a Safe Skagway Pledge. “We will invite all local businesses to participate by following CDC sanitation guidelines so that our visitors know we are taking this seriously and they can come and enjoy Alaska,” she says.
CARES Act Funding: A Lifeline for Businesses Federal CARES Act funding has been instrumental in helping many small businesses keep their doors open in Alaska. At Bear Trail Lodge in King Salmon, Co-owner Nanci Morris Lyon was in dire need of money to maintain her staff. She landed a $98,600 Paycheck Protection Program (PPP) loan and used all of it to pay staff members, some of whom have worked at the lodge for twenty-five years. “For a small company like mine, you have got to take care of your employees,” she says. “Our employees are very valuable to the company.” Morris Lyon kept employees engaged in a wide assortment of projects from sprucing up the lodge’s six cabins and two rooms to freshening up and expanding the guide barn. She says: “It certainly costs me more out [of] my pocket, but I had people who needed to work. It was in some ways lots of busy work, but in other ways that will save us time in the future.” Adjusting to COVID-19 conditions was a major challenge for Morris Lyon, who has operated the lodge since 1985 and owned it since 2009. The adjustments included disinfecting common areas more stringently; spraying waders with bleach after each wearing; and installing expensive
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air purifiers in the lodge and all guest rooms. “It was an incredibly stressful year, and I would wish never to have to do it again,” Morris Lyon says. In addition, Bear Trail Lodge, which normally hosts up to eighteen people per week, expanded its services beyond taking guests on fishing trips. It also began offering bear viewing trips and renting rooms to Alaska Airlines employees. “We had to get creative to help us all survive,” Morris Lyon says. Morris Lyon is grateful to Alaskans for their patronage, which helped keep the lodge in business last year. “They kept us alive,” she says. “Without them we would not have been able to make it through the season.” Alaskan Tour Guides also relied on PPP loan proceeds to pay its employees, which range from three to twelve during peak season. The company received two PPP loans—for $49,000 and $79,000—which it put to good use. Alaskan Tour Guides did whatever it could to keep its office open and staff working during the pandemic. It purchased extra laptops, so staff could work from home, and had some of its
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Like so many other small tourism businesses, Alaskan Tour Guides relied on PPP loan proceeds to pay its employees, which increase from three to twelve during peak season. Alaskan Tour Guides
seasonal drivers help out in the office. But with no revenue coming in from tours, the company took a major hit. “Last year was the first time in our history of being in business that we didn’t turn a profit; we had about a $150,000 loss,” Toller says. But since she and her husband, Bob, are prudent business owners, they have been able to weather the storm, Toller says. She adds: “While we did have a
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large financial loss in 2020, we are on track to having a once again profitable 2021—fingers crossed.” So far, so good. Trips are selling out quickly, and Toller is excited about the upcoming season. “We usually have about 600 guests with us annually from June to September, and we already have 450 on the books as of April 7. I don’t have very many seats left on these trips, so that’s promising.”
June 2021 | 27
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46 Villages in 10 Days The stellar effort to get vaccines where they were needed most
Alaska Airlines
By Isaac Stone Simonelli
28 | June 2021
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Project Togo In December, vaccines were rolled out to some of the most remote parts of the United States, providing vulnerable populations access to vaccination to help prevent a fragile healthcare system from being overwhelmed. In the Yukon-Kuskokwim Delta, the distribution was named Project Togo. While Balto led the pack the final miles to Nome in 1925 with lifesaving antitoxins to end a diphtheria outbreak, it was Togo who had done the heavy lifting.
“It was actually Togo who led the team most of the way, kind of the unsung hero of the Nome serum run,” Hodges says. Though the first Pfizer vaccines were rolled out to villages off the road system in December, planning started months earlier. “We wanted to lay the groundwork, as much as possible, so that the geography, distance, and sheer size of Alaska was not going to be something to hold us back,” says Alaska Department of Health and Social Services Commissioner Adam Crum, noting that the state started planning its vaccine distribution in August. “I think there was incredible effort to get vaccine availability early into rural communities,” says Dr. Robert Onders, the Alaska Native Medical Center administrator and liaison to the state for the Alaska Native Tribal Health Consortium. He explains there are three primary factors that allowed rural Alaska to successfully distribute vaccines during the pandemic: the federal government providing separate allocations of vaccines to tribal organizations,
“[Project Togo] was the most extraordinary project I have ever had the honor to be a part of. We got vaccine out to forty-six villages in something like ten days.” Ellen Hodges, Chief of Staff Yukon-Kuskokwim Health Corporation
Alaska Native tribal organizations coordinating efforts with the state of Alaska, and a reliance on local knowledge for distribution. “They actually moved vaccine around the state in such cool ways: by bush plane, by helicopter, by dog sled and
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A
ccording to Yukon-Kuskokwim Health Corporation (YKHC) Chief of Staff Dr. Ellen Hodges, the planning, coordination, communication, and dedication that made the vaccine rollout in rural Alaska a success story is striking. “That project was the most extraordinary project I have ever had the honor to be a part of. We got vaccine out to forty-six villages in something like ten days,” Hodges says. “Everybody kind of had to all be on the same page and all pull together in the same direction for this to be successful.”
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Alaska Airlines’ passenger and freighter fleets played a role in the safe movement of COVID-19 vaccines to remote locations throughout the state. Alaska Airlines
four wheeler,” Crum says. “It was just such an Alaskan thing to do … no matter where you're at, we're gonna find a way to get there.”
Effect on Alaska Natives Getting vaccines to these rural communities was important because they were home to particularly vulnerable populations with limited access to intensive care units. A study by the Centers for Disease Control and Prevention found that American Indians and Alaska Natives were 3.5 times more likely to contract COVID-19. “Alaska Natives shouldered a disproportionate burden of this disease. They were infected at higher rates, and when infected we're more likely to be hospitalized and more likely to die at much higher rates,” Hodges says. “So it was important to get that very vulnerable population vaccinated as soon as possible because of those additional risk factors.” Those risk factors are compounded by the lack of adequate housing and lack of quality water sources in some of Alaska’s rural communities, explains Onders. 30 | June 2021
“We wanted to lay the groundwork, as much as possible, so that the geography, distance, and sheer size of Alaska was not going to be something to hold us back.” Adam Crum, Commissioner Alaska Department of Health and Social Services
When briefing his team, Governor Mike Dunleavy made them aware of the impacts the 1918 pandemic had on the Alaska Native population, Crum says. “We knew that it was important to make sure that this population was both educated about the vaccine and had
easy access to it because this is one of the high-risk groups we want to make sure was protected,” Crum says.
Who Got the Shot “Alaska tribal health organizations were eligible to get a specific distribution through the Indian Health Service,” Onders says. Hodges says YKHC received vaccine allocations from both the state and Indian Health Service. However, these vaccines came with different guidelines for administration: all state-issued vaccines were to be used strictly within the state guidelines, while there was more flexibility for the use of Indian Health Service vaccines. “The state vaccine was only to be used for the categories that the state was on. So, if they were on tier one, group A—that's who would get the state vaccine,” Hodges says. For the Indian Health Service vaccine, the instructions for tribal health organizations were “to do the most good to the most people.” Additionally, “The rollout was not limited to Alaska Native people for the tribal allocation,” Onders says.
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“Alaska has been working with tribal health organizations to distribute childhood vaccinations to all these remote communities for years. I think that allowed for a more rapid distribution to these communities... people didn't have to learn a new process, a new supply chain.” Robert Onders, State Liaison, Alaska Native Tribal Health Consortium
[village public safety officer] or the state trooper or the fish and game representative got access to the shot, they made that available,” Crum says. “On the state side, we just respected whatever their decision making criteria was for getting that shot in arms.” Hodges says that YKHC was aware of the energy and thoughtfulness put into developing the Alaska
vaccine distribution tier system, so they followed that system—they were just able to move through it much more quickly.
Same Partners, New Product The coordination between tribal health organizations and the state is an extension of established reporting, ordering, and distribution systems.
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“They could create their own local allocation priorities.” “There was a huge push to get our healthcare workers and first responders vaccinated and then almost immediately pivoting to elders because we had such good vaccine supply,” Hodges says. The flexibility granted through the Indian Health Service allocations created a dynamic that allowed local health organizations to focus on the safety of entire communities, and Onders says this option was particularly important when delivering doses to difficult-to-access, rural communities with small populations. “If you're going to make the effort to go there and have a vaccine clinic, make it eligible to everyone at that time because you can get it done in that single instance,” Onders says. Exactly how that flexibility was used came down to each of the twenty-seven different tribal health organizations in the state. “Certain communities were able to do this broadly. You know, if it was important for that community in that village to make sure that the VPSO
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Keri Zimmer, Kodiak Station Manager unloads COVID-19 vaccine in Kodiak. Ingrid Barrentine | Alaska Airlines
“Alaska has been working with tribal health organizations to distribute childhood vaccinations to all these remote communities for years,” Onders says. “I think that allowed for a more rapid distribution to these
communities... people didn't have to learn a new process, a new supply chain.” But the vaccines themselves changed some processes; early on it became clear that the Pfizer vaccine came with challenging handling components.
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Aware that Pfizer was most likely to be the first vaccine approved, YKHC’s initial planning integrated the fact that it was a “fussy” vaccine, Hodges says. Pfizer needs to be kept at -70°F, must be used within five days once it has been brought up to room temperature, and can be damaged by too much jostling. “We're always getting vaccine out to rural areas, but this one was special,” Hodges says. Additionally, because of the risk of anaphylaxis, YKHC shifted their plans to ensure health providers and nurses traveled along with every dose during Project Togo.
Planes and Planning Once the initial load of vaccines arrived in Bethel, where YKHC is headquartered, they were loaded into charter planes. The distribution team had a list of villages the team was going to visit that day—some had twenty-five people who needed to be vaccinated, some only had one, Hodges says. Onsite community health aides contacted locals to determine exactly how many doses were needed in each village on each run, minimizing waste, Onders says. “We saw very little to no wastage, which is incredible as well,” Onders says. “I think it is about the connection
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chess,” Hodges says. “It was constant communication, constant planning to get the vaccines out in a timely fashion.” This coordination in some of the most unpredictable, roughest conditions in the United States was only possible because of the level of communication between all parties. “I can't say enough about our partners that helped out with this,” Hodges says, pointing to the extraordinary support of the state, Indian Health Service, airlines, pilots, and healthcare providers.
Early Success on a Long Road At the height of the outbreak, the Yukon-Kuskokwim Delta region had the highest case rates in the nation. “We have a very fragile healthcare system,” Hodges says. “It was real dicey there, especially in November and December, when we were at the height of our outbreak… We were very, very close to being overrun. Those numbers have come way down since the launch of Project Togo. By the end of April, approximately 65 percent of the eligible population
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was vaccinated in the YukonKuskokwim Delta region. Even better, some rural villages, such as Mekoryuk, were at a vaccination rate of nearly 100 percent. “Because we were so good at getting shots in arms in the vulnerable populations up front, our hospitalization numbers bear that out,” Crum says. “We have been at low levels of hospitalization now for months.” While the efforts of Project Togo and other vaccine distribution efforts in rural Alaska have been hailed an overwhelming success, healthcare providers say there is more work still to do. Tribal health organizations and the state are now focused on reaching out to individuals who are eligible for the vaccine but haven’t gotten it yet. “Our big push is trying to get that next group of people who are either ambivalent or don't want it because they are healthy and not in a highrisk group and to talk to them about what the benefits are and just give them the education necessary so they can make a personal choice,” Crum says.
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with the local people who know the supply chain and know how best to get things there in the time needed.” Locals in the village organized those getting vaccinated, meeting the plane on the tarmac. Patients were vaccinated in their trucks, on their four-wheelers, on their snowmachines, even in the plane itself, Hodges says. The plane and medical team leapfrogged from village to village, waiting about twenty minutes after the last dose was administered to ensure patients were safe. Unlike other tribal health organizations, which had teams make vaccine runs by dog sled, snowmachine, helicopter, and float plane, YKHC mostly stuck to charter flights in the beginning. “That's just the most expeditious way to get to as many villages as possible,” Hodges says, noting that some of the nearby villages were accessed by ice road. Bad winter weather often delayed flights, complicating the rollout. “Think of it as a continuously moving sort of game of three dimensional
Lynden Employees Go Above and Beyond Keep freight moving during the pandemic
D
espite the disruptions caused by the COVID-19 pandemic over the last year, Lynden kept crucial supplies moving— without interruption—to meet the needs of Alaskans. Managing the difficulties of this past year was a team effort that Lynden proudly attributes to its outstanding employees. The unprecedented trying times produced by COVID-19 have helped the company emerge stronger and wiser—and highlighted the essential nature of the transportation industry. The employees of Lynden’s family of transportation and logistics companies met—and exceeded—incredible demands. And their dedication, ingenuity, and hard work have been awe-inspiring. “Lynden people consistently rise to meet a challenge, and this year was no exception,” says Chairman Jim Jansen. “No transportation company in Alaska has a more essential
and critical responsibility than we do. Without our service throughout the last year, many Alaskans would not have received food and other essential items they needed to survive. Our employees can be proud of that and many other accomplishments.” Employees Made Key Adjustments Lynden employees adapted to a variety of changes during the past 12 months. They successfully navigated new work environments and technology; masks and social distancing; virtual meetings; and additional safety procedures to sanitize trucks and equipment. But the most significant achievement was the continuous service that employees provided customers. Incredibly, Lynden’s companies maintained normal business functions, with the critical supply chains to and from Alaska operating as usual.
“Serving our customers without failure became a key focus and goal as we entered the pandemic in 2020,” says President and CEO Jon Burdick. “It was an extraordinary year of Lynden employees adapting, meeting new challenges, and responding with a dedication to serving our customers reliably, safely, and efficiently.” For example, Lynden’s customer service teams employed remarkable resourcefulness and flexibility to meet clients’ needs, creating new workflows to accommodate remote workers. Service Center managers quickly addressed social distancing requirements and created safe spaces for customers and employees by sanitizing facilities and equipment. Many drivers, mechanics, flight crews, and other operations employees continued their daily responsibilities despite the uncertainty to ensure freight was delivered to the customers who needed it. In some cases, work rotations were extended to ensure safety protocols could be followed, requiring employees to stay away from home for longer periods than originally planned. Their sacrifices and dedication did not go unnoticed. “We had a flight crew working overseas for months longer than expected, people on the North Slope for over ten weeks at a time, and many employees throughout Alaska adjusting their schedules and routines to ensure the job got done,” says Gail Knapp, Vice President of Employee Relations. “We often say that Lynden’s people are the best, and that was certainly shown this past year.”
Covering All of Alaska The Lynden family of companies covers the entire state of Alaska, from Ketchikan to Kaktovik and everywhere in between. Barge service is a supply lifeline for many communities in Southeast and Western Alaska, and keeping that lifeline intact was paramount for Alaska Marine Lines. “There is no question that 2020 provided us with multiple opportunities to demonstrate that our employees can overcome adversity and, most importantly, that our customers can count on us,” says Kevin Anderson, President of Alaska Marine Lines, part of the Lynden family of companies. Barge service successfully continued throughout the year, without interruption, keeping Alaskans supplied. When a lack of Personal Protective Equipment (PPE) threatened the health and safety of frontline workers, Lynden and partners coordinated the purchase and transport of 78 pallets of PPE and chartered a FedEx plane from China to Anchorage. Employees who were waiting in Anchorage quickly unloaded the material and prepared it for next-morning delivery to the Alaska Department of Health and Social Services. Even while airlines were forced to cancel flights, thus reducing the amount of cargo capacity available, Lynden’s operations team was able to keep 80 percent of scheduled air cargo moving, working expediently and creatively to take care of customers and get shipments booked and on their way. Lynden coordinated and expedited the delivery of the COVID-19 vaccine and PPE from Anchorage to remote locations in Western Alaska. Lynden agents were waiting and hand-delivered them to hospitals in Bethel, Nome, Kotzebue, and Barrow for distribution to village
elders and frontline workers in those communities. “Alaska is our home, and we are so happy we could do our part to help our friends and neighbors,” says Jeanine St. John, Vice President for Lynden Logistics. “We look forward to positive things ahead in Alaska, and Lynden will be there ready to assist with the next challenge.” Reflecting on 2020 In retrospect, this past year was one of the most arduous periods for Lynden employees. But they remained undaunted, met the challenge, and performed exceptionally. Working together, they kept the supply chain moving and delivery routes open as Lynden has always done during difficult times. In short, employees came through with flying colors for their fellow Alaskans. As Jansen put it, “We’ve been keeping freight moving to Alaska since 1954, and we’re not planning to stop now.” “Looking back, it’s inspiring to reflect on the challenges our employees overcame,” Burdick says. “Our culture of safety shone through,
AlaskaBusiness Profile
and we had zero interruptions to our service. We look forward to working with our customers and serving the communities of Alaska as things get back to normal this year and beyond.”
Lynden companies provide transportation and logistics solutions in Alaska, Canada, the Pacific Northwest, Hawaii, and around the world. They serve the entire state of Alaska and offer a full range of transportation options across all modes – air, land, and sea – so customers can optimize time and money when shipping to, from, or within Alaska.
Lynden 6520 Kulis Drive Anchorage, AK 99502 907-245-1544 www.lynden.com
Alaska Problems Require Alaska Solutions Local businesses rally to address water crisis in Tuluksak By Julie Stricker
Judy Patrick Photography | Donlin
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O
n January 16, a fire destroyed the water plant and washeteria in the southwest Alaska village of Tuluksak. For the village of about 350 people, it was a devastating blow. The water plant was the only source of drinking water in the village, in which the primarily Yup’ik residents lack indoor plumbing and rely on honey buckets, not uncommon in the flat, swampy region. With COVID-19 raging through the region at the time— one-third of village residents had already tested positive—having enough water for even basic sanitation needs, as well as drinking water, was of the utmost importance. Tuluksak is located on the Tuluksak River, a tributary of the Kuskokwim River about 37 air miles upstream from Bethel, the regional hub. There are no roads to the village, except for a seasonal ice road on the river if conditions are good, so most freight must be flown or barged in. Winters in the region are harsh, and snowfall was especially heavy this winter, according to officials. The village was additionally hampered by the fact that the person responsible for keeping the runway plowed had been medevacked to Anchorage with COVID-19 complications.
36 | June 2021
Alaska Business www.akbizmag.com
Judy Patrick Photography | Donlin
Initially, residents hauled ice from the Kuskokwim River about a mile away, which wasn’t safe to drink, but could be used for other things. But the community’s drinking water supply diminished quickly. In true Alaska fashion, the business community and other organizations stepped in to help. The YukonKuskokwim Health Corporation (YKHC) met with the State of Alaska, Indian Health Service, and several federal agencies to discuss short and long-term solutions and funding, according to Brian Lefferts, director of the Office of Environmental Health and Engineering for YKHC. Three weeks after the fire, Alaska Governor Mike Dunleavy issued an emergency disaster declaration for the village. Lefferts says YKHC divided its response plan into four major phases. First was the need to secure a supply of drinking water. Second, a temporary reverse osmosis water treatment plant that would provide limited water supplies for the community. Third is bringing in a mobile water treatment plant with a much greater capacity than the reverse osmosis plant. Finally, rebuilding the village’s permanent water treatment infrastructure.
Phase I The immediate need was for drinking water. Several organizations, including an indigenous rapper for the pop rap group the Black Eyed Peas, stepped up with donations for water, but how to get the water and equipment to the village in the dead of winter posed the www.akbizmag.com
“I’m also really proud of the response from the YKHC, the federal government, nonprofits like the Rasmuson Foundation, community foundations—you just go down the list. There’s so many people that wanted to help us and stepped up to help out.” Brian Lefferts Director of the Office of Environmental Health and Engineering, YKHC
real problem. Tuluksak’s airstrip is gravel and 3,300 feet long, which means most large aircraft are unable to land there. However, Alaska’s small air cargo and commuter airlines are ideally suited Alaska Business
for those conditions. Carriers such as DesertAir, Ryan Air, Yute Commuter Service, and regional airline Ravn Alaska worked together to get water and freight to the community. Some smaller shipments also were delivered by truck via the Kuskokwim Ice Road. The effort attracted some unlikely partnerships. PepsiCo and the CocaCola Bottling Company of Alaska, major rivals in the beverage industry, teamed up in partnership with Ravn Alaska to donate 6,000 pounds of water to Tuluksak. Ravn, which serves Pepsi products on its flights, transported the pallets of water to Bethel. Then Ryan Air and Yute flew them the final leg to Tuluksak. The flights continued throughout the month of February. “Alaskans are stronger together,” said Rob McKinney, CEO of Ravn Alaska, in a news release. “As the new Ravn Alaska, we are more than just an air service. We’re Alaskans and committed to serving our communities in need.” Donlin Gold, which is developing a world-class gold deposit in the Yukon-Kuskokwim region, also was an early contributor. Officials from Donlin Gold contacted the Tuluksak Tribal Council when it learned about the fire and discovered that the main priority was drinking water, according to Kristina Woolston, external affairs manager for Donlin Gold. “Weather and poor runway conditions meant we could not fly water that same day from Anchorage, June 2021 | 37
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Shipments included everything from baby wipes and paper towels to sanitizing and cleaning supplies.
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“The villages make up the entirety of our business. If they weren’t there, we wouldn’t have anyone. So we need them to survive and they need us to survive, especially at a time when they have an issue or crisis… So when we recognized there was a need in the region, we reached out to Donlin Gold to combine our efforts to help out. Freight is expensive to send to rural Alaska, so we wanted to offer a flight we know would be well-utilized and full to maximum capacity.” Joey Benetka, President, DesertAir
38 | June 2021
so we sourced from the nearest hub community, Bethel, and purchased all of the local bottled water and put it on two chartered small planes that day,” Woolston says. The shipment also included supplies such as baby wipes, paper towels, and sanitizing and cleaning supplies. The deposit Donlin Gold is developing is located several dozen miles upstream on the Kuskokwim River from Tuluksak and holds an estimated 33 million ounces of gold, enough to generate an economy-changing mine that would employ thousands of people over twenty-seven-plus years. “Donlin Gold has been working in the [Yukon-Kuskokwim] region for nearly twenty-five years,” says Woolston. “Our commitment to be a good neighbor includes long-term partnerships as well as responding to timely needs, such as the Tuluksak water crisis.” On February 8, Donlin Gold teamed up with DesertAir to deliver more water and related supplies to the village. DesertAir is an air cargo company with roots in Utah—hence the name, says President Joey Benetka, who worked for the company for about ten years before buying it two years ago. “It’s memorable, that’s why we kept the name,” Benetka says, noting there are sand dunes in Alaska, and Fairbanks is considered a subarctic desert. It has a fleet of three 1944 Douglas DC-3s, which have a freight capacity of 6,500 pounds, oversize doors to accommodate large objects, and the ability to land on dirt and gravel runways as short as 2,800 feet. They’re a little bit older and take a little more work to maintain, Benetka says, but they’re one of the best-suited planes for rural Alaska. “The villages make up the entirety of our business,” Benetka says. “If they weren’t there, we wouldn’t have anyone. So we need them to survive and they need us to survive, especially at a time when they have an issue or crisis. “So when we recognized there was a need in the region, we reached out to Donlin Gold to combine our efforts to help out. Freight is expensive to send to rural Alaska, so we wanted to offer a flight we know would be well-utilized and full to maximum capacity.”
Donlin talked to Tuluksak tribal officials about what the community needed the most and came up with a list of supplies to help the village access non-potable water that residents could boil and use for washing dishes, laundry, cleaning, and other uses. The supplies filled a DesertAir DC-3: • Six 200-gallon Greer water tanks that can be filled at the river and transported in a truck bed or behind a four-wheeler or snowmachine to fill the large containers Donlin also provided. These are filled at the river and then used to bring water to individual homes. • Pumps, hoses, and a small generator to pump the water from the 200-gallon container to the inhome container • Ninety-five 32-gallon garbage cans (larger in-home water containers) • Fifty Rubbermaid totes (for bathing and clothes washing containers) • Fifty washboards (old school, to do laundry) • Fifty floor brushes (also for clothes washing) • Sanitation wipes, diapers, paper towels, cleaning supplies, masks, and any other sanitation items that would fit on the plane • Water in larger bio-friendly containers for drinking Donlin also contributed financial support so tribal officials could hire local residents to fill the 200-gallon tanks and deliver the water to homes, Woolston says. Middy Peter, chair of the Native Village of Tuluksak, says, “We, the community of Tuluksak, are very grateful for the enormous support that Donlin Gold and DesertAir have provided.” A week after that big shipment arrived in Tuluksak, Donlin Gold officials traveled via two trucks on the Kuskokwim Ice Road to the village to deliver a hundred 5-gallon water containers bought in Bethel. The company also underwrites the ice road for maintenance and safety. “The Donlin Gold crew traveled along the smooth ice road, 50 miles upriver,” Woolston says. “Tuluksak tribal office workers helped unload the water into their offices to prepare for distribution to each household in the community. The beauty of these containers is that they are refillable
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with purified water at Northern Lights Water for a small fee.” On the way back to Bethel, the trucks carried loads of empty water bottles, which were dropped off in Bethel for recycling. Woolston says Donlin is continuing to work with Tuluksak officials to address their long term needs.
Phase II and III By March, according to Lefferts, YKHC helped build a temporary water treatment facility in the Tuluksak School shop that can hold up to 1,000 gallons of water storage. “It provides water throughout the school so they can have school in session, provide lunches for kids, and is a source of potable water,” Lefferts says of the plant. “But it’s not a water treatment plant. It requires a ton of upkeep and maintenance, regular filter changes. It’s just not designed as a long-term sustainable solution.” Rebuilding the washeteria and water plant could take a couple of years, so in the interim, YKHC decided to bring in a mobile water treatment plant that could hold up to 10,000 gallons. That plan quickly ran into some hurdles. Lefferts says that while the plant is considered portable, it weighs about 55,000 pounds and is housed in a 24foot by 36-foot building and associated water storage tank. A proposal to move it upstream to the village via the Kuskokwim Ice Road also had to be dropped. “We’ve kind of had a weird weather year this year,” Lefferts says. “Record snowfall, which insulated the river and made it slow to freeze. We needed at least 30 inches of ice. Even before the fire, it was only 15 inches thick.”
“Weather and poor runway conditions meant we could not fly water that same day from Anchorage, so we sourced from the nearest hub community, Bethel, and purchased all of the local bottled water and put it on two chartered small planes that day.” Kristina Woolston External Affairs Manager, Donlin Gold
Plowing the ice road to encourage the ice to thicken looked promising until the weather warmed up, he says. That left a layer of water under the snow. “It just never thickened up enough to be safe to move the plant this year,” Lefferts says. “And we tried, all the way through the middle of April. We just recently gave up.” At one point, the Alaska Army National Guard considered using a
Chinook heavy-lift helicopter like the one it used to move the “Into the Wild” bus from its location off Stampede Trail last summer. But the water plant proved to be too heavy. So now, the plan is to barge the water plant up to Tuluksak this summer. The emergency declaration that is allowing the village to use water from the system set up at the school is good through July 31, which should be enough time to get the mobile plant set up and running, Lefferts says.
Phase IV Although final plans for rebuilding the water treatment infrastructure are far from finished, they got a boost when the US Environmental Protection Agency awarded Tuluksak $1.5 million under its Water Infrastructure Improvements for the Nation Act (WIIN) in late April. Combined with Indian Health Service funding, the WIIN grant will allow the village to fully fund replacement facilities. Actual construction may take a year or more. “We always wish we could do things faster,” Lefferts says. “It’s stressful, I’m sure, with weather delays and other things preventing water from getting there, or as you’re watching the water supply start to decrease while you’re waiting for the next supply to get in. We had a lot of terrible weather this winter. I don’t want to underplay how stressful that must have been. “I’m also really proud of the response from the YKHC, the federal government, nonprofits like the Rasmuson Foundation, community foundations—you just go down the list,” he says. “There’s so many people that wanted to help us and stepped up to help out.”
DesertAir and other regional airlines joined forces to help distribute water and freight to the community. Judy Patrick Photography | Donlin
40 | June 2021
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3,300-Foot Lifelines
Remote runway construction takes grit, group effort By Amy Newman
42 | June 2021
C
ertain things about life in Alaska are absolutes. Bears will emerge from their dens in the spring. Aurora watchers will chase the Northern Lights in winter. And aviation continues to be a literal lifeline to the 82 percent of communities that lie off Alaska’s road system. “I don’t think it ever hurts to reinforce that aviation is huge for Alaska,” says Angela Smith, aviation group manager for PDC Engineers. “If the planes stop flying in Alaska, it would be a very different world. They play a vital role in most Alaskans’ daily lives that they just don’t even think twice about it.” With more than 2.4 million square miles of airspace, six times more pilots, and sixteen times the number of aircraft (per capita) than the rest of the United States—huge is an understatement. This vast expanse is served by 700 FAA-regulated airports, 235 of which are rural facilities owned and maintained by the Alaska
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TR ANSP ORTATION SPECIAL SEC TION Knik Construction operates its own material quarries in Western Alaska to ensure it can supply remote projects with gravel, rock, sand, and other aggregate material. Knik Construction
Department of Transportation & Public Facilities (DOT&PF). Comprised of little more than a roughly 3,300-footlong runway, an apron, and a small terminal, rural airports ensure yearround access to residents and tourists and keep communities supplied with goods, equipment, and other everyday essentials. “In some places, people are relying on those [flights] not just to get out but to get stuff in,” says John Limb, senior associate at Stantec. “The groceries come in on the airplane, the medicine comes in on the airplane, the mail comes in on the airplane.” For rural airports, smaller doesn’t mean easier when it comes to designing and building facilities. With guidance and input from the FAA and DOT&PF, a team of surveyors and hydrologists; electrical, mechanical, and geotechnical engineers; environmental scientists and consultants; and construction crews with experience working in remote www.akbizmag.com
locations collaborate to create a safe, cost-effective, efficient facility that can serve the community long-term. And they do it while dealing with logistical challenges not found elsewhere. “We have to get the equipment there, you have to think of material sites and how to find gravel in an area and location and bring it on to the runways and think about how [airport] access roads might interact with the community,” says Ryan Cooper, an environmental scientist with Stantec. “So much of what we see is people just focusing on that miracle mile, the 3,000-feet of the runway, when we also need to think about the whole aspect of what the airport does.”
Designing the Ideal Airstrip Compared to airports in the Lower 48, even the state’s larger hub airports seem small. But in Alaska, whether an airport is considered a small, rural facility hinges largely on the type of aircraft it can accommodate. Alaska Business
“Most of these communities, when we talk rural [airstrips], are about 3,300foot gravel strips, with a little baby taxiway that connects the runway to the apron, and that’s it,” Limb says. “The aircraft is typically less than 12,500 pounds; that identifies the airport as what we call a small airport.” Funding for airport projects is limited. In 2020, the DOT received $239 million from the FAA to fund airport improvement programs across the state—which means consultants and designers must figure out how to design a safe, sustainable facility that doesn’t waste taxpayer dollars, Smith says. Sometimes the cost isn’t justified. “It’s just so doggone expensive to build because it’s [rural Alaska], so hard to get to,” she says. “There are ways to figure it out, but it just takes money, and sometimes it just doesn’t pencil out. And that sounds cold, but sometimes the amount of money to construct the facility and then maintain the facility June 2021 | 43
TR ANSP ORTATION SPECIAL SEC TION Knik Construction transports gravel and other aggregate materials needed for runway construction via truck and barge to remote project sites throughout Western Alaska. Knik Construction
for the required length of time doesn’t pencil out.” The most important aspect of an airport is, obviously, the airstrip. When designing one at a rural community, the priority is determining whether there’s sufficient space to safely orient the runway. “The minimum recommended runway length is 3,300 feet. It doesn’t have to be 3,300 feet, but most air carriers are going to want more,” Smith says. “Then you’ve got a safety area off each end of it, so you have to plan for at least 5,000 feet or more of length.” But that space must be in the proper location, or at least in a location that designers can mitigate potential hazards. The runway must be oriented to align with the prevailing wind direction, which is how pilots take off and land, Smith says. And the surrounding terrain, whether mountains, trees, or something else, must be free of obstructions. The type of aircraft that will use the runway also factors into its design, because it dictates which materials are most appropriate. “Runways are designed around a strength value, and most of the 44 | June 2021
runways in Western Alaska are gravel runways; they aren’t paved,” explains Dan Hall, president of Knik Construction. “Nome, Bethel, and Kotzebue are bigger hubs, and Alaska Airline planes run in there, so they are all paved. A place like Kasigluk, where a Caravan 207 is hauling people, freight, and mail, is going to have a gravel airfield.” Just as important as the design of the runway are the supporting pieces that enable it to operate safely. “There’s more than just surfacing the runway,” Hall says. “Lights, navigational aids, and equipment storage buildings are also usually part of the airport projects.” Radio communications and some form of weather reporting system, so pilots know the weather conditions before flying in or out, are also necessities, Smith adds.
Logistical Challenges Every project off Alaska’s road system faces unique challenges that require just as much planning and forethought to overcome as the design and construction of the project itself. “Our construction in Alaska is completely different than anywhere
else in the United States, just based on how big our state is and how little infrastructure is based on roads and access,” Hall says. “It’s more of a logistics project than a construction project.” Sourcing materials and transporting them to the project site at a reasonable cost is often the biggest hurdle. “I think the biggest challenge with any rural airport is what gravel materials are available locally and are they good enough to use for a runway,” Hall explains. “It makes costs extremely high if you have to import or bring in all the materials, especially in a Western Alaska scenario, where gravel is hard to find.” Limb agrees. “That’s usually the number one problem,” he says. “We have to ask, ‘Where are we going to get the materials from?’ That’s mining materials, finding materials, and being able to ship it to that airport to get the work done. The logistical component of that is just as difficult as doing the work itself.” In locations with no real gravel sources, like Western Alaska, materials have to be sourced and brought in from other areas, Limb explains. For communities located along a waterway, material and equipment can be shipped
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“Most of these communities, when we talk rural [airstrips], are about 3,300-foot
utilize half-width operations, which allows construction and take-offs and landings to happen on the runway simultaneously. It’s a necessary accommodation to traditional FAA rules regarding runway construction. “According to FAA rules, when you’re doing work on a runway you have to shut it down,” Limb explains. “That’s not happening here because oftentimes communities don’t have other viable means to get out of the community. You cannot shut them down when you want to redo the airport.”
gravel strips, with a
Half-width operations literally shut down one-half of the runway for the crew to work on it, which allows planes to take off and land from the other half, Limb says. Once construction is completed on one half, the process is repeated on the other.
Master Planning Airports are typically designed as part of a master plan, which Limb says is an environmental function that takes into consideration the socioeconomic impact of the project and how it will
Summer is here.
little baby taxiway that
Fly for Work.
connects the runway to the apron, and that’s it… The aircraft is typically less than 12,500 pounds; that identifies the airport as what we call a small
Fly for Play.
airport.”
Ravn Alaska.
John Limb, Senior Associate, Stantec
Figuring out how to work on the runway while not cutting the community off from the outside world during construction is another challenge. At larger airports, crews shut the runway down and divert aircraft to a taxiway or second runway. Neither of these is an option for a rural airport with a solitary runway and a shortened taxiway. “The question is, ‘How do you do both?’” Hall says of working on a runway while maintaining flight operations. “There is a disruption as we all know. You can’t rebuild a road without some kind of inconvenience to the public. The goal is to minimize that as much as you can, but it’s not always perfect.” Working overnight provides only a partial workaround, so crews often www.akbizmag.com
Call 800.866.8394 or visit RavnAlaska.com
Alaska Business
June 2021 | 45
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in via barge or shallow-draft landing craft, while hovercraft, helicopters, or even sleds are used for locations unreachable by marine transportation.
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meet the needs of the community and the surrounding areas. “There are quite a few different moving parts when we’re designing an airport, as you can imagine,” he says. “We’re often working through our client, which is the Alaska Department of Transportation. The FAA is involved because they’re the funding source; 95 percent of these projects are funded through the airport improvement program.” Data and input provided by surveyors and hydrologists, geotechnical and electrical engineers, environmental scientists, construction crews, and even the community are all part of the planning and design process. Provided a project scope is not too large, Smith says “the whole kit and caboodle” of transportation projects—which includes gathering site data, design and permitting, construction sequencing, site prep, and construction—typically takes two to five years. Construction is often done in phases over seasons, in part because of the practicalities involved in mining materials from local sources. “In many places, the best material comes from the rivers,” Cooper says. “The best time to do that, because of fish and low water, is during the winter. So oftentimes while it looks like a construction project is just [happening] during the summer, what’s actually happened is that in the fall, that equipment has been staged at the
“Runways are designed around a strength value, and most of the runways in Western Alaska are gravel runways; they aren’t paved. Nome, Bethel, and Kotzebue are bigger hubs, and Alaska Airline planes run in there, so they are all paved. A place like Kasigluk, where a Caravan 207 is hauling people, freight, and mail, is going to have a gravel airfield.” Dan Hall, President, Knik Construction
village, and over the winter they work to develop the materials.” With a limited pool of funds, there’s recently been more focus on maintaining and preserving existing facilities to extend their natural life. This means that the community’s capacity to care for the runways and associated airport facilities factors into the design plan. “We have to take maintenance and operations into consideration,” Cooper says. “At larger airports they have staff. At these little airports, they often have no full-time staff and they’ve contracted a part-time local person who they’ve given a grader and does some small amount of regrading. So a lot of the design and engineering has to incorporate what’s practical.” Planning also includes mapping out the most efficient way to deliver equipment and materials to the project site. “We’ve done some crazy stuff over the years where we’ve had to handle materials five or six times from the material’s source before it gets to the final resting stop at an airport somewhere,” Hall says. “Barging out of Platinum to Kipnuk, then trucking it to the stockpile site. Hauling it to the runway in the winter because you can’t get across the tundra in the summer. There are a lot of factors to consider when planning projects in remote Alaska. We often start years in advance to make sure the puzzle pieces all fit together.” Stantec was part of the team that relocated the Noatak Airport due to encroachment of the adjacent river and intrusion of safety areas on the runway. Stantec
46 | June 2021
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Whatever you call them, they’re taking off on St. Paul Island By Tasha Anderson
“
Todd Paris | University of Alaska Fairbanks
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Drones, Orbs, UAS
Flying cars could rewrite how the Air Force and civil society do logistics and transportation,” says Dr. Will Roper, Assistant Secretary of the Air Force for Acquisition, Technology & Logistics. It’s an interesting position to take, as many feel one of the most egregious unfulfilled predictions of the ‘50s and ‘60s is that the near future (what we happily call “now”) would feature skies cluttered with flying cars. And while we are accustomed to the sight of helicopters and drones, they don’t quite fit the vision of flying to the grocery store or jetting to the park. Agility Prime, a US Air Force program, is just the thing that will “help usher the ‘not yet’ into the ‘now,'” Roper says. Agility Prime is a non-traditional program created to accelerate the commercial market for advanced mobility vehicles, which it collectively refers to as orbs. “These vehicles are not drones, helicopters, airplanes, cars, trucks, motorcycles, SUVs—and some would adamantly say they are not flying cars. However, they might support similar missions.” Agility Prime envisions these orbs will have “particular utility” in medical evacuations, firefighting operations, civil and military disaster relief, search and rescue missions, and humanitarian relief operations. The program was launched in May 2020 during Agility Prime week, a virtual gathering that included diverse speakers, breakout sessions, and networking. Interest in expanding the role of aeronautic systems crosses industry and national borders. According to BIS Research in its Global Fixed-Wing VTOL Aircraft Market—Analysis and
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Alaska Business www.akbizmag.com
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Forecast from 2018 to 2028 report, “The global fixed-wing VTOL [vertical takeoff and landing] aircraft market is expected to witness significant growth over the forecast period 2018-2028 due to the rising demand across various end-users including commercial, military, and law enforcement… the global fixed-wing VTOL aircraft market generated $2,009.6 million in 2017 and is estimated to grow at a CAGR [compound annual growth rate] of 21.7 percent during 2018-2028.” What’s super exciting about the aeronautics industry is that it’s being developed, in part, right here in the Last Frontier. It only makes sense: nothing is more Alaskan than the need for affordable, small-scale transportation to remote areas that are difficult to access.
Alaska UAS Alaska has been a proving ground for aeronautics for some time. While drone technology may have been born elsewhere, in Alaska its capabilities have been put to the test. For example, in 2018 and 2019, NOAA Fisheries took advantage of industry partners with unmanned aircraft systems (UAS) and imaging technology expertise to re-conceive how to collect information that is essential for managing Alaska’s northern fur seal population, which had shown a “dramatic, unexplained” decline. According to the organization, “In 2016 pup production was the lowest recorded in 100 years.” Before utilizing UAS technology, NOAA Fisheries conducted surveys of northern fur seal pups by stationing fifteen to twenty-two people on the Pribilof Islands for up to three weeks; they would walk through the pup rookeries and clear out adult fur seals to allow for the safe handling and temporary marking of the seal pups. By looking at UAS technology, the organization hoped to reduce costs, the number of people on site, and the disturbance to the seals, taking an example from surveys of endangered Steller sea lions, which have utilized drone technology since 2014. However, counting fur seal pups from the air is a different task than Steller sea lions. “While Steller sea lions are fairly easy to count from photographic images because of www.akbizmag.com
Data from cameras mounted to unmanned aerial vehicles has changed the way organizations such as the US Fish and Wildlife Service gather information essential for managing and protecting vulnerable wildlife populations. Todd Paris | University of Alaska Fairbanks
their size and color, northern fur seals—especially pups—are hard to see since they blend in so well with the background,” said Katie Sweeney, the marine mammal scientist that led the study for the Alaska Fisheries Science Center’s Marine Mammal Laboratory. Instead of just traditional photography, the team also utilized thermal imaging, conducing aerial surveys with a thermal sensor and a high-resolution digital camera mounted to a hexacopter. As another example, Alyeska Pipeline Service Co. has been using drones (aerial and underwater) to survey TAPS for years, and was an integral part of UAS development. In 2019, a team of researchers from UAF flew a quadcopter over a three-mile section of the pipeline north of Fairbanks—this was the first FAA-approved beyond-line-of-sight drone flight in the United States. When out of sight, the drone relied on its own sensors for navigation.
SPxTR Complex It’s undeniable that drone technology is evolving, and the FAA Reauthorization Alaska Business
Act of 2018 reflected the changing needs of commercial users and UAS enthusiasts. One section of the Act, Section 44803, made it possible for UAS test ranges to get funding from sources other than the FAA and extended the authorization of test sites for an additional length of time. Before the act passed, the Aleut Community of St. Paul Island (ACSPI) was already testing and flying drones and training small drone operators. But with “the FAA Reauthorization Act signed in October 2018, our community is able to establish its own test range, allowing us to serve the flight test needs of the Department of Defense and industry as well,” said Amos Philemonoff, tribal council president for ACSPI, as part of the announcement that ACSPI was partnering with Sabrewing Aircraft Company to expand their aeronautics operations. UAS operations and training will be based out of the St. Paul eXperimental Test Range Complex, or SPxTR Complex, located on St. Paul Island, which is centered in the Bering Sea and is approximately 770 miles west June 2021 | 49
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of Anchorage. It’s the largest manned and unmanned aircraft test range in the region and one of the largest in North America. Sabrewing and ACSPI signed a $43 million agreement in February 2019 in which Sabrewing, a manufacturer of unmanned heavy-lift commercial cargo air vehicles, will provide a mix of up to ten aircraft for testing at the SPxTR Complex. In May 2020, at Agility Prime 2020, Sabrewing unveiled its prototype Rhaegal-A unmanned VTOL cargo aircraft, one of the aircraft that will be tested at SPxTR. Ed de Reyes, CEO of Sabrewing, said at the virtual event, “With the help of our partners, Sabrewing has been able to create something that’s unique and exists nowhere else on Earth.” The aircraft is being specifically designed with customers in mind. After several sessions of customer feedback, Sabrewing designed the Rhaegal with the capability to deliver cargo to remote locations; fly in weather too dangerous for human crews; use the same fuel tools currently used in commercial fleets; accommodate standard cargo
“[SPxTR is] the best large UAV test range that I’ve ever seen in the thirty-one years that I’ve been testing and certifying aircraft.” Ed de Reyes, CEO, Sabrewing
containers; enter service on date-ofpurchase; be easy to learn to fly; and complete its mission even if it loses communication with the ground. The Rhaegal-A is a half-size version of the Rhaegal-B, which will be the full-size commercial aircraft. De Reyes explained the Rhaegal-A is providing a “parallel development path” during the testing process, and even at half-size has a payload of up to 1 metric tons.
The full-size Rhaegal-B will have a vertical takeoff load of 5,400 pounds and a conventional take off payload of more than 10,000 pounds. Both the Rhaegal-A and Rhaegal-B are capable of flying at 22,000 feet at a speed of 250 miles per hour. Cargo is loaded through the nose of the craft, which has been designed to “kneel” to facilitate easier loading. The Rhaegal-B can carry four LD1, two LD2, or two LD3 containers, all fully loaded. The Rhaegal-A and Rhaegal-B will be able to land without any pad, including on soft snow or sand or in marshy areas. “The aircraft is designed to open new locations and deliver cargo where no fixed-wing or helicopter can go, and it’s also designed to land in locations where there is no pad or any other kind of structure,” de Reyes said. He also announced that the military variant of the Rhaegal-B will be named after the Aleuts, in honor of the partnership with ACSPI and its commitment to building community. Sabrewing will also provide test equipment, telemetry, and other equipment that will allow for operations
Student pilot Ghinali Seyrak prepares for a training flight in a Cessna Skyhawk at UAA's Aviation Technology campus on Merrill Field. Seyrak and students like her are helping address a lack of pilots in the state. University of Alaska Anchorage
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Alaska Business www.akbizmag.com
accepted for processing. “This stage represents a ’90 percent complete’ moment, and the most significant hurdle (that of the SBA accepting the application) has been met,” according to ACSPI’s 2020 newsletter. The organization anticipates that Awalix will be fully-formed in 2021 and can start accepting contracts.
Training ACSPI and Sabrewing are also creating a joint venture to provide UAS pilot training, maintenance and dispatcher training, and aircraft replacement and spare parts. ACSPI is already well-versed in technical training. It offers UAS training and curriculum to Alaska Native and Native Americans nationwide through a partnership with Advanced Aerial Education. Under the ACSPI/Sabrewing agreement, the joint venture will train remote operators, mechanics, and dispatchers for commercial customers who have bought or leased Sabrewing’s aircraft. Sabrewing and ACSPI are looking at various approaches: “We’ve been discussing the possibility of using
pilots trained by UAA to train new pilots to a commercial/instrument-pilot level of competency, after which we would them train them to operate our aircraft. This would help the new pilot to build hours towards an Air Transport Pilot rating—and also help alleviate the current pilot shortage as well. In discussions with the FAA, they’ve been very open to ways to train pilots to help reduce the shortage,” de Reyes says. In February ACSPI was one of seven nationwide winners of the US Department of Commerce’s STEM Talent Challenge. The organization was awarded $258,535 to design and implement training specifically for community members to meet the needs of the aeronautics industry it’s helping to develop on the island. ACSPI is matching those funds with $535,503, bringing the total for the project to $794,038. Dana Gartzke, Performing the Delgated Duties of the Assistant Secretary of Commerce for Economic Development, said in a release about the award, “This grant challenge invests in workers through work-andlearn programs and apprenticeships, and these individuals become the
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June 2021 | 51
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at SPxTR to benefit the company as well as other customers. It’s also supplying portable, remote operations and telemetry stations for aircraft testing. Sabrewing will use the SPxTR Complex to research and develop its aircraft designs as well as conduct FAA certifications for the vehicles. De Reyes says of the SPxTR Complex: “It’s the best large UAV test range that I’ve ever seen in the thirty-one years that I’ve been testing and certifying aircraft.” John Nevadmonsky, director of research, development, test, and evaluation for Sabrewing, says “The SPxTR Complex has the capacity of testing any aircraft over the Bering Sea—with more space and capability than any test range that I’m familiar with.” The ACSPI/Sabrewing partnership extends to jointly bidding on Department of Defense federal contracts. ACSPI has been developing Awalix, a wholly-owned subsidiary that is in the final stages of being certified in the 8(a) program. It was registered as an LLC in April 2020 and in December 2020 received notification from the US Small Business Administration that its 8(a) paperwork had been received and
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“We’ve been discussing the possibility of using pilots trained by UAA to train new pilots to a commercial/ instrument-pilot level of competency, after which we would them train them to operate our aircraft. This would help the new pilot to build hours towards an Air Transport Pilot rating—and also help alleviate the current pilot shortage as well. In discussions with the FAA, they’ve been very open to ways to train pilots to help reduce the shortage.” Ed de Reyes, CEO, Sabrewing
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An unmanned aerial vehicle launches to collect video of important wildlife data as part of a collaboration between the Alaska Center for Unmanned Aircraft Systems Integration and the US Fish and Wildlife Service. Todd Paris | University of Alaska Fairbanks
backbone of robust innovative and entrepreneurial economies.” According to ACSPI, its goal is to have test range and ground crew personnel for SPxTR trained by the Fall of 2021. “The test range positions will be high skill, high pay, and very technical positions with ample on-the-job training and support, while the ground crew will be targeted to entry level and skilled positions with additional on-the-job training and mentoring support.” Mentoring will be provided by Sabrewing employees as well as the organization’s current educational partners: Iļisaġvik College and the Bristol Bay Campus of UAF. “Our goal is to train and staff a full service and support staff for the test range and operations and to have these
individuals earn good pay, learn great skills, and create viable and sustained careers for themselves and their families,” ACSPI states. The development of industry and jobs are a boon for the residents of St. Paul, but UAS technology itself holds a lot of potential benefit for the community. For those living on St. Paul, getting on or off the island can be a matter of life or death. The efficient aerial movement of people and supplies isn’t a pleasant fantasy but a clear path to a safer, more connected community. But as we’ve seen time and time again, vital technology always moves to a consumer market—so it might not be long before we finally see those flying cars.
Alaska Business www.akbizmag.com
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Transportation Directory 40-MILE AIR
ALASKA AIR FORWARDING
ALASKA MARINE HIGHWAY
Leif Wilson, Owner PO Box 539 Tok, AK 99780 40-mileair.com 907-883-5191
Jeff Dornes, Co-Owner 4000 W. 50th Ave., Ste. 6 Anchorage, AK 99502 907-248-4697
SYSTEM
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Air freight, trade shows, shipment consolidations, nationwide purchase order procurement service, and international shipping.
1959/1959 | 15/15
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Air charters, scheduled flights, and hunting operation.
1969/1969 | 33/5
AIR LAND TRANSPORT Monique Snead, Pres. 11100 Calaska Cir. Anchorage, AK 99515 airlandak.com 907-248-0362 Air Land Transport has been serving Alaska’s transportation needs since 1976. We provide LTL and full-load trucking services to many destinations within the state. We have the knowledge, fleet, and personnel to deliver your freight efficiently.
Captain John Falvey, GM 7559 N. Tongass Hwy. Ketchikan, AK 99901 ferryalaska.com 800-642-0066 Provider of marine transportation for passengers and vehicles to more than thirty Alaska coastal communities. No pre-set itineraries. Amenities available include staterooms, dining, movie theaters, and
ALASKA AIR TRANSIT
viewing lounges.
Daniel Owen, Pres./Owner/Operator 2150 E. Fifth Ave. Anchorage, AK 99501 FlyAAT.com 907-276-5422
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1963/1963 | 540/~500
ALASKA MARINE LINES Kevin Anderson, Pres. 660 Western Dr. Anchorage, AK 99501 lynden.com/aml 907-339-5150
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Anchorage based air charters through Alaska, Canada, and the Lower 48. Fleet includes fast, pressurized, Pilatus PC-12/47 and PC-12 NG, as well as factory new Grand Caravan EX aircraft with increased power and advanced ice protection system.
Alaska Marine Lines is a marine
1976/1976 | 55/55
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
transportation company providing barge
1984/1984 | 27/27
service between Seattle, Alaska, and Hawaii. We offer regularly scheduled service to
ALASKA AIR CARGO 4700 Old International Airport Rd. Anchorage, AK 99502 alaskacargo.com 800-225-2752
Southeast Alaska, Central Alaska, and
ALASKA AIRLINES
Hawaii, and seasonal service to Western
Brad Tilden, Chmn./CEO AK Air Group 3600 Old International Airport Rd. Anchorage, AK 99502 alaskaair.com 907-266-7200
Alaska.
GoldStreak Package Express, Pet Connect Animal Travel, priority and general air freight services. Our modern fleet of 737-700 freighters serves 21 Alaska communities with connections to more than 100 destinations in the Lower 48, Hawaii, and beyond.
Alaska Airlines and regional carrier Horizon Air provide passenger and cargo service to 115 destinations in Alaska, Canada, Mexico, Hawaii, and the Lower 48.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1932/1932 | 300/120
1932/1932 | 23,000/1,825
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Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1980/1980 | 236/18
ALASKA PARK David Lucks, GM 5000 Spenard Rd. Anchorage, AK 99517 alaskapark.com 907-222-4002
Alaska Business www.akbizmag.com
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2013/2013 | 20/20
ALASKA RAILROAD CORPORATION Bill O’Leary, Pres./CEO PO Box 107500 Anchorage, AK 99510 alaskarailroad.com 907-265-2300 Freight rail transportation, passenger rail transportation, and real estate land leasing and permitting. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1914/1914 | 600/600
ALASKA TRAFFIC CO. Andrew Schwaegler, GM/VP PO Box 3837 Seattle, WA 98124 alaskatraffic.com 425-282-6610
SHIP BEYOND THE RAILS. FROM RAIL TO SEA TO ROAD, WE DO IT ALL.
The Alaska Railroad does more than you might expect. We ship freight to and from anywhere in North America. Even places without rail access. And we handle all the logistics along the way. So whatever it takes to get it there – barge, train, truck - you only need to deal with one point of contact and one invoice. Call for a free quote today: 800.321.6518 | AlaskaRailroad.com/freight
Arrangement of transportation of all types of cargo, freight-transportation services, and logistics services. Scheduled LTL, TL, and consolidation services via steamship and barge. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1956/1956 | 18/2
ALASKA TRUCKING ASSOCIATION Joe Michel, Exec. Dir. 3443 Minnesota Dr. Anchorage, AK 99503 aktrucks.org 907-276-1149 The authoritative voice in Alaska trucking: provides regulatory guidance, a bridge between industry and DOT, and a voice defending trucking in the State Capitol. ATA provides DMV expedited title and registration services to its members as well. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1958/1958 | 3/3
ALASKA WEST EXPRESS Eric Badger, Pres. 1048 Whitney Rd. Anchorage, AK 99501 lynden.com/awe 907-339-5100 www.akbizmag.com
Alaska Business
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Alaska Park is a full-service valet airport parking facility, serving Ted Stevens International Airport and the Coast Inn at Lake Hood. Open 24/7 we welcome you back to a warm, running car and a cool one in the summer.
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Alaska West Express provides oversized and bulk truckload transportation throughout the United States and Canada, specializing in shipments to, from, and within Alaska. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1978/1978 | 190/175
ALISON’S RELOCATIONS Alison McDaniel, Pres. 310 E. First Ave. Anchorage, AK 99501 alisonsrelo.com 907-345-9934 Full-service household goods moving and storage services. Providing customized moving packages: DIY to full-service for residential, commercial, industrial, national, and corporate accounts via ocean, air, and over the road globally.
americanrelocationservices.com 907-561-5166
beringair.com 907-443-5464
Commercial/residential relocation, moving and storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, certified moving consultants, budget service options.
Air transportation services for scheduled and nonscheduled passenger and cargo. Freight service daily to scheduled destinations. Heavy and oversized cargo charters to all destinations. Air ambulance services, helicopter charter, and rental services.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1988/1988 | 120/60
1979/1979 | 140/140
ANDERSON TUG & BARGE CO.
BERING MARINE CORPORATION
Jeff Johnson, Pres. PO Box 1524 Seward, AK 99664 andersontug.com 907-224-5506
Rick Gray, Pres. 6520 Kulis Dr. Anchorage, AK 99502 lynden.com/bmc 907-248-7646
Ship and barge assist, line handling, and pilot boat.
Bering Marine Corporation provides highly specialized marine services to reach water-locked villages and other remote Alaska locations. Our fleet of shallow-draft equipment supports construction of docks, roads, and airstrips in Alaska communities.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1997/1997 | 30/30
1978/1978 | 5/5
ALL AMERICAN MARINE
ARCTIC ON-DEMAND
Ron Wille, Pres./COO 1010 Hilton Ave. Bellingham, WA 98225 allamericanmarine.com 360-647-7602
Rebecca Clark, Mng. Dir. 4451 Aircraft Dr. Ste. 226 Anchorage, AK 99502 akaod.com 888-611-9770
All American Marine builds custom highquality passenger, workboat, and research vessels. We specialize in innovative aluminum monohulls and catamarans with static and dynamic hydrofoils, as well as hybrid-electric and fuel-cell powered vessels.
Helps clients find aircraft capacity and quickly compare quotes to streamline the process and optimize costs. Through proprietary bid-board technology, we find the best solutions for every air movement. Cargo/PAX Ad-hoc service.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2020/2020 | 3/3
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1987/1987 | 68/1
ALL SEASONS ARGO & EQUIPMENT Deborah Bontems, Owner 1300 E. 80th Ave. Anchorage, AK 99518 allseasonsargo.com 907-277-6188
ASHBREEZ BOATWORKS Chad Morse, Owner/Co-founder 3705 Arctic Blvd., #106 Anchorage, AK 99503 ashbreezboatworks.com 907-529-1907
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1985/1985 | 71/71
BEST RATE EXPRESS TRANSPORT Young Summers, Member PO Box 39193 Lakewood, WA 98496 bestrateexpress.com 253-973-7653 Best Rate Express Transport: flat, step, vans, reefers, and heavy haul. Rail: containers and flat cars. Air: next-day, two-day, and deferred service. Marine: steamship and barge service. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2004/2004 | 4/-
BLACK GOLD EXPRESS Jim Huffman, Pres. 1520 Sailor Ct. North Pole, AK 99705 blackgoldalaska.com 907-490-3222
Argo UTV and TUT Truck UTV retail sales dealership, to include UTV vehicles, parts, and accessories, plus full warranty certified mechanic servicing. Top ranking awarded Argo dealer since 1998.
Services include major boat repair, new aluminum boat construction, fiberglass repair, systems installation, electrical work, outboard repowers, repainting, and refinishing and bottom painting. See our website for full details.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
From civil work to oilfields services, from interstate moves to heavy hauls, Black Gold Express has the experience and knowledge to handle all your transportation needs.
1998/1998 | 4/4
2011/2011 | 2/2
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1984/1984 | 48/43
AMERICAN RELOCATION SERVICES
BERING AIR
Kristina Blackadar, Commercial Sales Mgr. 5491 Electron Dr., Unit 1 Anchorage, AK 99518
James Rowe, Pres. PO Box 1650 Nome, AK 99762
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BOWHEAD TRANSPORT COMPANY Christopher Palle, Bowhead Transport/Marine Cargo/Project Support Services
Alaska Business www.akbizmag.com
Bowhead Transport Company provides marine cargo/equipment transport, hotel ship/project support, and other specialized charter services performed with our unique vessels capable of shallow water operation and beach landings in remote Alaska regions. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1982/1982 | 12/12
Before
After
Sales • Ser vice • Par ts
BOYER TOWING Boyer Halvorsen, Pres. 7318 Fourth Ave. S. Seattle, WA 98108 boyertowing.com 907-225-2090 Contract charter service tugs to 5500 horsepower and barges to 14,000 tons, lighterage, cargo handling, stevedoring and terminal services in Seattle and Ketchikan. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1935/1959 | 90/25
Transportation Tank & Trailer SERVICE CENTER 3050 Van Horn ~ Fairbanks, AK
• National Board “R” Stamp & DOT Inspections & Certifications • Leak Repairs, Rebarrels & Tank Change Outs • Bottom Loading, Vapor Recovery Conversions, Pumping Systems • Large Parts Inventory
907-451-8265 (TANK) Service – Contact Timothy Hanson
800-692-5844 Parts – Contact Tara Hogan
BRICE MARINE Togi Letuligasenoa, GM PO Box 73534 Fairbanks, AK 99707 briceinc.com/marine 907-277-2002 Brice Marine owns and operates all ocean, coastwise, and shallow draft marine equipment designed specifically for delivery of cargo and materials in remote Alaska locations. The fleet includes two ATB sets and one conventional shallow draft. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1974/1974 | 10/10
CARLILE TRANSPORTATION Terry Howard, Pres. 1800 E. First Ave. Anchorage, AK 99501 carlile.biz 907-276-7797 Transportation and logistics company offering multi-model trucking as well as project logistics services across Alaska and North America. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1980/1980 | 378/277 www.akbizmag.com
General | Commercial | Design Build | Construction Management 6591 A Street, Suite 300 | Anchorage, Alaska 99518 907.562.2336 | davisconstructors.com Alaska Business
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6700 Arctic Spur Rd. Anchorage, AK 99518 bowheadtransport.com 541-905-5204
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CITY OF CRAIG
COASTAL HELICOPTERS
CORVUS AIRLINES DBA RAVN
Hans Hjort, Harbormaster PO Box #725 Craig, AK 99921 craigak.com 907-826-3404
Ethan Berto, Pres. 8995 Yandukin Dr. Juneau, AK 99801 coastalhelicopters.com 907-789-5600
ALASKA
Moorage, water, electricity, grids, restroom/
Helicopter on demand charter, contract,
Rob McKinney, CEO 4700 Old International Airport Rd. Anchorage, AK 99502 Ravnalaska.com 800-866-8394
showers, boat haulout, ice.
and tours.
Ravn Alaska offers scheduled passenger,
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
cargo and mail service to twelve
1922/1973 | 4/4
1988/1988 | 50/50
destinations throughout Alaska and growing. Our charter operations fly to any destination with acceptable landing conditions and
CITY OF HOMER PORT & HARBOR
COMMODITY FORWARDERS
Bryan Hawkins, Port Dir. 4311 Freight Dock Rd. Homer, AK 99603 cityofhomer-ak.gov/port 907-235-3160
PJ Cranmer, Reg. Mgr. PNW 4000 W. 50th, Ste. 1 Anchorage, AK 99502 cfiperishables.com 907-243-1144
Homer Port & Harbor has 24/7 harbor
Transporting perishable products
officers and includes a small boat harbor
worldwide. Provides logistical services for
with more than 870 reserved stalls and
perishable products worldwide by providing
more than 6,000 linear transient moorage.
transportation, documentation, warehouse,
Two ocean piers, a commercial barge ramp,
and consulting services. Freezer storage in
Tim Cudney, Dir. 301 Calista Ct. Anchorage, AK 99518 deadhorseaviation.com 907-685-1700
steel and wood tidal grids, a 5-lane load and
Anchorage.
Fairweather’s Deadhorse Aviation Center
launch ramp.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
is strategically designed to provide North
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2003/2003 | 750/6
Slope operators with a state-of-the-art Fixed
1964/1964 | 17/17
facilities. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1948/1948 | 364/364
DEADHORSE AVIATION CENTER
Base Operation (FBO), providing logistics, lodging and support activities in the Arctic.
CITY OF OUZINKIE Elijah Jackson, Mayor PO Box 109 Ouzinkie, AK 99644 907-680-2209 Piped water, piped sewer, electric, refuse collection, landfill, hydroelectric, health clinic, airport state contract, volunteer fire, library through tribal, roads, boat harbor. Municipal dock for ferry and larger vessels. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
CONTINENTAL VAN LINES Ken Wyman II, AK Mgr. 1031 E. First Ave. Anchorage, AK 99501 continentalvan.com/alaska 907-279-2571 Alaska’s premier moving and storage company. Moving locally, within Alaska and worldwide. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1952/1952 | 80/35
David Borg, Harbormaster PO Box 639 Whittier, AK 99693 whittieralaska.gov/whittier-harbor 907-472-2327 Ext 7
2012/2012 | 6/6
DESERTAIR Joey Benetka, CEO 4001 Old International Airport Rd., Unit #9 Anchorage, AK 99502 desertairalaska.com 907-243-4700 DesertAir provides large haul cargo capacity (6,500 lbs) into more than 200 destinations with rural airstrips (2,800-foot min.), direct
1967/1967 | 15/14
CITY OF WHITTIER HARBOR
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
from Anchorage International.
COOK INLET TUG & BARGE Jeff Johnson, Pres. 4510 Old International Airport Rd., Ste. 101 Anchorage, AK 99502 cookinlettug.com 907-277-7611 Cook Inlet Tug & Barge is a marine
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2000/2000 | 15/15
DIAMOND AIRPORT PARKING Dave Kopp, GM 5401 Northwood Dr. Anchorage, AK 99502 parkatanc.com 907-677-7275
The Whittier Harbor is your Gateway to
transportation company, specializing in
Prince William Sound. We are an ice-free
harbor services and fuel distribution, with
port, open year round. There are 350 slips
focus on the Port of Anchorage and Cook
Airport parking and self-storage.
for both transient and permanent berth
Inlet, Seward, Southeast Alaska, Aleutian
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
holders, to lengths of 54’. We operate a 15T
Islands, and Western Alaska, and Prudhoe
1922/1980 | 1,100/30
travel lift with limited space on the hard.
Bay.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1969/1969 | 8/8
1924/1924 | 72/72
58 | June 2021
EGLI AIR HAUL
Alaska Business www.akbizmag.com
Helicopter and airplane charter, aviation fuel sales, aircraft maintenance, and hangar space rental. Specialized ops: external load work, airborne thermal imaging, and powerline work such as Ins-A-Wash and Live-Line/Bare-Hand powerline maintenance. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1979/1982 | 7/7
EVERTS AIR ALASKA Robert Everts, Pres./CEO PO Box 61680 Fairbanks, AK 99706 EvertsAir.com 907-450-2723 Everts Air Alaska is proud to serve the villages of Interior Alaska and provide charter services throughout the state. Caravan and Pilatus aircraft are used to provide scheduled and charter passenger flights, as well as freight and mail transport. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1978/1978 | 16/13
EVERTS AIR CARGO Robert W. Everts, Pres./CEO PO Box 61680 Fairbanks, AK 99706 EvertsAir.com 907-450-2300 Everts Air Cargo provides scheduled cargo service within the State of Alaska (using C-46, DC-6 and MD-80 aircraft), and On Demand Air Charter Services to domestic and international destinations. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1995/1995 | 337/315
EXPRESS DELIVERY SERVICE Edward Hoffman, Pres. 701 W. 41st Ave., Unit D Anchorage, AK 99503 907-562-7333 Locally owned and operated courier services, local, Mat-Su Valley, statewide delivery services, special warehousing and storage. Specializing in serving the medical community since 1977. Open 24/7/365. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1977/1977 | 22/22 www.akbizmag.com
FEDEX EXPRESS Dale Shaw, Mng. Dir. 6050 Rockwell Ave. Anchorage, AK 99502 fedex.com 800-463-3339 Air cargo and express-package services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1973/1988 | 245,000/600
Craig, AK 99921 IslandAirX.com 888-387-8989 Island Air Express operates Cessna 208 and Pilatus PC-12 aircraft throughout Southeast Alaska. Providing the only scheduled IFR passenger and freight service between Prince of Wales Island and Ketchikan Island Air Express delivers. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
GRANT AVIATION Robert Kelley, Pres./CEO 6420 Kulis Dr. Anchorage, AK 99502 flygrant.com 888-359-4726 An Alaska airline known for a strong track record of safety and commitment to customer service. Provides scheduled and charter passenger, mail, freight and air ambulance services in the YK Delta, Bristol Bay, the Aleutian chain, St George, and Kenai.
2008/2008 | 30/28
ISLAND AIR SERVICE Adam Lutz, Pres./CEO 1420 Airport Way Kodiak, AK 99615 flyadq.com 907-487-4596
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Island Air Service is the premier commuter airline in Kodiak. We carry passengers, freight, US Mail, UPS shipments, and offer charter flights. We also specialize in bear viewing tours both in Kodiak and along the Katmai coast.
1971/1971 | 280/260
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1984/1984 | 43/43
GUARDIAN FLIGHT ALASKA Randy Lyman, Pres. Northwest 3474 Old International Airport Rd. Anchorage, AK 99502 alaska.guardianflight.com/membership 907-245-6230 Guardian Flight is the state’s largest air medical provider with more aircraft in more places than all other organizations in the state combined. Guardian Flight is part of the AirMedCare Network, a national alliance of air ambulance providers. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
KENAI AVIATION OPERATIONS Joel Caldwell, Dir. Ops 101 North Willow St. Kenai, AK 99611 kenaiaviation.com 907-283-4124 Air taxi, charter, aircraft maintenance. Flight seeing and flight school. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1961/1961 | 10/10
1997/2000 | 30,000/200
LYNDEN AIR CARGO
HOMER EXPEDITERS
Rick Zerkel, Pres. 6441 S. Airpark Pl. Anchorage, AK 99502 lynden.com/lac 907-243-7248
Jules Ravin, Owner/Operator PO Box 3219 Homer, AK 99603 907-235-5244 Air cargo and express-package services, local delivery services, freight-transportation and air-forwarding services. Serving Homer to Kenai and Soldotna areas.
Lynden Air Cargo provides scheduled yearround service from Anchorage to Bethel, Nome, Kotzebue, and St. Mary’s and flag stop service to any Alaska community with a runway. We also offer worldwide charter services with our fleet of Hercules aircraft.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1986/1986 | 1/1
1996/1996 | 219/219
ISLAND AIR EXPRESS
LYNDEN INTERNATIONAL
Scott Van Valin, Dir. Ops/Pres. PO Box 1174
John Kaloper, Pres. 6441 S. Airpark Pl.
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Sam Egli, Pres. PO Box 169 King Salmon, AK 99613 egliair.com 907-246-3554
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Anchorage, AK 99502 lynden.com/lint 907-243-6150 Domestic and international freight forwarding and customs services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1980/1980 | 222/57
LYNDEN LOGISTICS Alex McKallor, Pres. 6520 Kulis Dr. Anchorage, AK 99502 lynden.com/llog 907-245-1544 Arrangement of freight transportation, information management, and logistical services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1984/1984 | 13/4
equipped vessel supports remote marine operations. Bases throughout all of Alaska.
odysseylogistics.com 907-248-5548
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads and single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, intrastate trucking, warehousing and distribution.
1973/1973 | 75/75
MATSON Bal Dreyfus, Sr. VP AK 1717 Tidewater Rd. Anchorage, AK 99501 Matson.com 1-877-678-SHIP (877-678-7447) Matson provides twice-weekly vessel service to Anchorage and Kodiak and weekly service to Dutch Harbor, linking domestic and international cargo with seamless rail and trucking connections to the Kenai Peninsula, Valdez, Fairbanks, and Prudhoe Bay. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
LYNDEN OILFIELD SERVICES Eric Badger, Pres. 1048 Whitney Rd. Anchorage, AK 99501 lynden.com/loil 907-339-5100 Lynden Oilfield Services, a division of Alaska West Express, provides support for exploration, production, and service companies on the North Slope working to develop Alaska’s oil and gas resources. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2015/2015 | 30/30
LYNDEN TRANSPORT Paul Grimaldi, Pres. 3027 Rampart Dr. Anchorage, AK 99501 lynden.com/ltia 907-276-4800 Lynden Transport has been the trusted leader for shipping freight to, from, and within Alaska since 1954. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1954/1954 | 242/149
MARITIME HELICOPTERS
1882/1964 | 2,000/594
NORTHERN AIR CARGO Betsy Seaton, Pres./CEO 4510 Old International Airport Rd. Anchorage, AK 99502 nac.aero 907-249-5163 Anchorage-based Northern Air Cargo is Alaska’s largest all-cargo airline. From groceries to medical supplies and lumber, customers across Alaska, including an array of industries such as oil, gas, mining, and construction depend on NAC. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1956/1956 | 429/321
OCEAN MARINE SERVICES Kelly McNeil, Pres. PO Box 7070 Nikiski, AK 99635 omsi-ak.com 907-776-3685 A marine transportation and logistical support company with offshore supply vessels, research vessels, and a landing craft. Area of operation is from the Beaufort Sea to the Gulf of Mexico.
Robert Fell, Dir. Ops 3520 FAA Rd. Homer, AK 99603 maritimehelicopters.com 907-235-7771
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
We support oil, construction, and marine trades. Our fleet includes a Viking 400 Twin Otter, Bell 206L, 407 and twin-engine 412HP & BO105 Eurocopters. Our 86’ helipad
Keith Hancock, Pres. Multi-Modal Global Solutions 5025 Van Buren St. Anchorage, AK 99517
60 | June 2021
1982/1982 | 40/30
ODYSSEY LOGISTICS
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1984/1988 | 2,500/300
OFFSHORE SYSTEMS—KENAI Kelly McNeil, Pres. PO Box 8505 Nikiski, AK 99635 osk-ak.com 907-776-5551 A full-service marine terminal facility supporting Cook Inlet oil and gas operators. Providing shore-side services for OSVs, landing crafts, tug and barge operators, dive support vessels, and others. Nikiski Fuel provides bulk diesel fuel. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1983/1983 | 20/20
OLYMPIC TUG AND BARGE - A CENTERLINE LOGISTICS COMPANY Mathew Godden, Pres./CEO 910 SW Spokane St. Seattle, WA 98134 centerlinelogistics.com 206-628-0051 Olympic Tug & Barge is a subsidiary company of Centerline Logistics and provides petroleum transportation, rescue and general towing, and energy support services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1987/1987 | 700/50
PACIFIC COAST MARITIME - A CENTERLINE LOGISTICS COMPANY Chris Iszler, Ops Mgr. PO Box 920086 Dutch Harbor, AK 99692 centerlinelogistics.com 206-628-0051 Pacific Coast Maritime, subsidiary of Centerline Logistics, operates out of Dutch Harbor, with two state of the art tractor tugs and a deck barge equipped with a Manitowoc 4100 Vicon Crane. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1975/1975 | 700/50
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Joshua Schwemley, AK Area Mgr. 6000 A St. Anchorage, AK 99518 penco.org 907-440-7385 Pacific Environmental Corporation (PENCO) specializes in land and marine spill response, environmental cleanup, and remediation. PENCO’s array of environmental services includes supplying teams of 40 Hour HAZWOPER trained spill response technicians. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1985/1994 | 145/80
PATHFINDER AVIATION Rogan Parker, CEO 1936 Merrill Field Dr. Anchorage, AK 99501 pathfinderaviation.com 907-257-1550 Pathfinder Aviation supports petroleum, utility, survey, and various other industries utilizing twin-engine Bell 212/412s, an EC135 and single engine AS350 B2 and B3, Bell 206 series helicopters with OAS-approved pilots and aircraft. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2001/2001 | 70/70
PETERSBURG PORT & HARBOR Glorianne Wollen, Harbormaster 223 Harbor Way Petersburg, AK 99833 907-772-4688 Petersburg port and harbor. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1910/1910 | 7/7
PILOT FREIGHT SERVICES
PORT OF DILLINGHAM
Patrick Allen, CEO 6200 Boeing Ave., Ste. 350 Anchorage, AK 99502 transmarkdelivers.com/anchorage-ak 907-406-0005
Jean Barrett, Port Dir. PO Box 889 Dillingham, AK 99576 dillinghamak.us 907-842-1069
As the Pilot exclusive agent for Alaska, we are a full-service global transportation and logistics company with more than 75 locations throughout North America, western European operations, and administration offices in the Netherlands and Spain.
Freight dock which ships and receives all freight for the Nushagak drainage. Dillingham small boat harbor is home port for up to 500 Bristol Bay drift boats. Offers docking, potable water, public restrooms, and showers. Boat repair and haul out. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1961/1961 | 5/5
1990/2017 | 150/4
PORT MACKENZIE Therese Dolan, Port Ops Mgr. 350 E. Dahlia Ave. Palmer, AK 99645 matsugov.us/Port 907-861-7799 Port MacKenzie is a premiere deep-water port capable of efficiently transporting bulk commodities and project cargoes in and out of South-central Alaska. We have fourteen square miles of uplands available in the Port District for storage and manufacturing. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2002/2002 | 2/2
PORT OF ALASKA Steve Ribuffo, Port Dir. 2000 Anchorage Port Rd. Anchorage, AK 99501 PortOfAlaska.com 907-343-6200 Port of Alaska in Anchorage handles half of all AK-inbound freight; half of which is delivered to final destinations outside of Anchorage. It benefits all Alaskans; DoD missions across Alaska, the Pacific Rim, and Arctic; and natural disaster response. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
PETRO MARINE SERVICES Kurt Lindsey, Pres./CEO 1813 E. First Ave. Anchorage, AK 99501 petromarineservices.com 907-562-5000
1961/1961 | 23/23
PORT OF BELLINGHAM
PORT OF HAINES Shawn Bell, Harbormaster PO Box 1209 Haines, AK 99827 907-766-6450 Barge, roll-on/roll-off ramp, 700 feet of alongside moorage, Panamax cruise ship dock, ice delivery by the ton, fuel services, and moorage for all size vessels and deep draft. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1998/1998 | 5/5
PORT OF KING COVE Charles Mack, Harbormaster PO Box 37 King Cove, AK 99612 907-497-2237 Ports and harbors. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1970/1970 | 5/5
PORT OF KODIAK AND SHIPYARD Michael Sarnowski, Dir. Port/Harbors 403 Marine Way Kodiak, AK 99615 city.kodiak.ak.us/ph 907-486-8080 Kodiak Shipyard is state-of-the-art and environmentally compliant with a 660 Ton Marine Travelift. Port facilities: three deep draft piers. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Serving the unique petroleum needs of a broad range of Alaska industries including fishing, home fuel sales, power generation, tourism, timber, transportation, construction, mining, and retail gasoline.
Rob Fix, Exec. Dir. PO Box 1677 Bellingham, WA 98227 portofbellingham.com 360-676-2500 We are the southern terminus for the Alaska Marine Highway System at the Bellingham Cruise Terminal.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1959/1959 | 215/215
1920/1988 | 100/-
Lucas Stotts, Harbormaster PO Box 281 Nome, AK 99762 nomealaska.org 907-443-6619
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Alaska Business
1958/1958 | 16/16
PORT OF NOME
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PACIFIC ENVIRONMENTAL CORP (PENCO)
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The Port of Nome is a refueling, staging and loading point for vessels transiting Arctic waters, while also serving as the regional shipping hub for the west coast of Alaska to move cargo, fuel, dry goods, rock, equipment, and bulk project materials. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1985/1985 | 5-8/5-8
powerandtransmission.com 907-456-2230 We sell bearings, seals, filters, air valves, compressors, brakes, exhaust, suspension, lights, fittings, wheel studs, and nuts for semi-trucks and trailers. We make hydraulic control cables. We sell cargo tie down chains and straps, tire chains. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
PORT OF PELICAN Walt Weller, Mayor PO Box 737 Pelican, AK 99832 cityofpelican.com 907-735-2202 The Pelican Harbor has 98 berths, which include permanent berthing spaces and transient moorage. Available dock services include electric, water, trash, fuel, and lubricants. Ice is also available. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1940/1940 | 5/5
PORT OF SKAGWAY Matthew O’Boyle, Harbormaster PO Box 415 Skagway, AK 99840 907-983-2628 The Skagway Small Boat Harbor is a full service marina with moorage for pleasure and commercial vessels up to 140 feet. Transient moorage is on a space available, first come, first served basis. There is a waiting list for annual moorage. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1898/1898 | 3/3
PORT OF VALDEZ Jeremy Talbott, Ports/Harbor Dir. PO Box 787 Valdez, AK 99686 valdezak.gov/port 907-835-4564 Port services include a Container Terminal with a 700 ft. floating dock (1,200 ft. with dolphins), 21-acre storage yard, electricity for reefer units, water, and garbage service. The Port has Foreign-Trade Zone #108 with industrial land available. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1901/1901 | 11/11
POWER AND TRANSMISSION Daniel Gorrod, Pres. 711 Van Horn Rd. Fairbanks, AK 99701 62 | June 2021
1972/1972 | 6/6
PRL LOGISTICS Ron Hyde, Pres./CEO PO Box 222029 Anchorage, AK 99522 PRLLogistics.com 907-261-9440 PRL is an Alaska-owned business delivering innovative, cost-efficient logistics solutions for people and materials. We have a strong HSSE excellence culture. Services include logistics planning, transportation services, camps, and field support. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2002/2002 | 50/40
RAMBLER AIR 4451 Aircraft Dr., Ste 226 Anchorage, AK 99502 ramblerair.com 844-775-5460 An Alaska based schedule commuter and charter airline, located at Lake Hood. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
vessel repair, commercial diving, oil spill response, and charter aviation for passengers and cargo. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1980/2013 | 500/60
ROTAK HELICOPTER SERVICES Ely Woods, Pres./GM 5014 Captain Hill Ct. Anchorage, AK 99502 rotakheli.com 907-302-4113 ROTAK Helicopter Services operates in some of the most challenging environments in the world. ROTAK offers aerial support for precision external loads. tower construction, mining exploration, powerline construction, oil and gas, and disaster relief. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2016/2016 | 29/20
RUST’S FLYING SERVICE Todd Rust, Owner/Dir. Ops PO Box 190867 Anchorage, AK 99519 flyrusts.com 907-243-1595 Family owned and operated since 1963, Rust’s Flying Service is located on Lake Hood in Anchorage and specializes in flight tours, bear viewing, fly-in fishing, and remote lodge support. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1963/1963 | 50/50
2020/2020 | 500+/50
SEATAC MARINE SERVICES REEVE AIR ALASKA Michael Reeve, Owner/Mgr. 7511 Labrador Cir. Anchorage, AK 99502 reeveairalaska.com 907-250-4766 Reeve Air specializes in chartered air service to more than forty Alaska communities. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2006/2006 | 2/2
Walter Seay, Pres. 6701 Fox Ave. S. Seattle, WA 98108 seatacmarine.com 206-767-6000 SeaTac Marine Services specializes in regular barge transportation from Seattle to Alaska. We work with heavy lift and odd shaped moves, break bulk and bulk cargoes, and commodities. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2000/2000 | 12/-
RESOLVE MARINE SERVICES ALASKA
SEAWIDE EXPRESS
AW McAffee, GM 6231 Airpark Pl. Anchorage, AK 99502 resolvemarine.com 907-243-0069
Phil Hinkle, GM SeaWide Express 11100 Calaska Cir. Anchorage, AK 99515 seawideexpress.com 404-942-1168
Marine salvage, emergency towing and
SeaWide Express was created to give
Alaska Business www.akbizmag.com
907-747-3439
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shippers between the continental US and Canada and Alaska a better choice, better service, and better rates. We handle all types of FAK shipments-consolidating partial loads and managing full containers too.
Harbor management development. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1960/1960 | 11/11
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2015/2015 | 21/5
SEAWIDE EXPRESS Phil Hinkle, GM 11100 Calaska Cir. Anchorage, AK 99515 seawideexpress.com 844-732-9433 LTL, TL, volume, oversized, expedited transportation services in North America— to/from the domestic ocean markets. Alaska, Hawaii, Puerto Rico, Guam. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2015/2016 | 480/40
SECURITY AVIATION Stephen “Joe” Kapper, Pres. 6121 S. Airpark Pl. Anchorage, AK 99502 securityaviation.biz 907-248-2677 24/7 on-demand air charter. Approved carrier for the Corps of Engineers, state, and federal agencies. Executive travel, crew changes, HAZMAT, “HOT” cargo, and medical transports. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
SOURDOUGH EXPRESS Jeff Gregory, Pres./CEO 600 Driveways St. Fairbanks, AK 99701 Sourdoughexpress.com 907-452-1181 Freight-transportation services, logistics, moving, and storage services. Steel Connex container sales/lease. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1898/1902 | 150/150
SPAN ALASKA TRANSPORTATION Michael Johnson, Pres. 6128 Electron Dr. Anchorage, AK 99518 spanalaska.com 253-395-7726 Freight transportation services to and from Alaska, less-than-truckload and truckload. Steamship and barge service to Railbelt area of Alaska. Barge service to Juneau and Southeast Alaska. Overnight service from Anchorage to Fairbanks and the Kenai Peninsula. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1978/1978 | 250/175
1985/1985 | 25/25
SEWARD BOAT HARBOR
TED STEVENS ANCHORAGE INTERNATIONAL AIRPORT
Norm Regis, Harbormaster PO Box 167 Seward, AK 99664 cityofseward.us 907-224-3138 Ext 2
Jim Szczesniak, Airport Mgr. PO Box 196960 Anchorage, AK 99519 ancairport.com 907-266-2526
We are a full service port with 50-ton & 330ton Travelifts, a 5,000-ton syncrolift, boat repair yards, potable water & power utilities, hardware stores, grocery stores, art galleries, restaurants, hotels, & many other amenities to meet every need.
World class cargo airport, largest passenger airport in Alaska, and the world’s busiest float-plane base.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1951/1951 | 377/377
1964/1964 | 14/14
TEMSCO HELICOPTERS
SITKA HARBORMASTER
1650 Maplesden Way Juneau, AK 99801 907-789-9501
Stan Eliason, Harbormaster 617 Katlian St. Sitka, AK 99835 cityofsitka.com/government/departments/ harbor/index.html
TEMSCO Helicopters’ services include precision long-line/external load operations, logging support, air support for mineral exploration—drill moves, fire control/ support—helitack, forestry, animal survey/
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tagging, government contracting. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1958/1958 | 75/75
transportation international and domestic lanes, warehousing, and specialized logistics solutions. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
TGI FREIGHT Todd Clark, Pres. 4001 Old International Airport Rd., Unit 7 Anchorage, AK 99502 tgifreight.com 907-522-3088 Local freight cartage, freight consolidation, logistics, warehousing, and hazardous material services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1989/1989 | 9/9
THE NORTHWEST SEAPORT ALLIANCE John Wolfe, CEO PO Box 2985 Tacoma, WA 98401 nwseaportalliance.com 800-657-9808 The Northwest Seaport Alliance (NWSA) is a marine cargo operating partnership of the ports of Seattle and Tacoma. We are a critical link for trade between Alaska and the lower 48 states; over 80% of commerce crosses our docks. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1987/2011 | 1,000+/3
TRANSMARK CARTAGE SERVICES Ken Maccabee, Ops Supervisor 6200 Boeing Ave., Ste. 350 Anchorage, AK 99502 tcsdelivers.com 907-351-2328
Hazardous and nonhazardous waste disposal, project management, complete logistical oversight, complete US and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation, and turnkey remedial services.
UNITED FREIGHT & TRANSPORT Frank S. Monfrey, GM 1701 E. First Ave. Anchorage, AK 99501 907-272-5700
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Freight-transportation services.
1971/1971 | 43,000/8
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1985/1985 | 45/45
VIGOR ALASKA
Vigor is a values-driven, diversified industrial business. We repair ships and build projects in support of energy generation, our nation’s infrastructure, national defense, and the maritime industry.
TOTE’s Roll-on/Roll-off (Ro/Ro) cargo ship provides twice-weekly, reliable service between Washington and the Port of Alaska. TOTE has served Alaska since 1975 and continues to invest in the people, assets, and community.
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
TRANSGROUP GLOBAL LOGISTICS Rich Wilson, Station Mgr. 8321 Dagan St. Anchorage, AK 99502 transgroup.com 907-243-4345 US-owned full-service freight forwarder and global logistics provider. We provide 64 | June 2021
WASTE MANAGEMENT NATIONAL SERVICES
1990/2017 | 150/4
Grace Greene, Pres. 2511 Tidewater Rd. Anchorage, AK 99501 totemaritime.com 907-265-7248
1975/1975 | 113/36
Air transportation nonscheduled. 1995/1995 | 16/16
Mike Holzschuh, Sr. Territory Mgr. 1519 Ship Ave. Anchorage, AK 99501 wm.com 907-274-0477
TOTE ALASKA
Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Ed Kiesel, Pres. 8991 Yandukin Dr. Juneau, AK 99801 WardAir.com 907-789-9150
TCS is your full service cartage company offering an array of services: white glove service, cargo screening, 53’, 24’, flatbed, and vans, TSA/STA compliant, cold chain services, military deliveries.
Bergan Wieler, GM Ketchikan Shipyard 3801 Tongass Ave. Ketchikan, AK 99901 vigor.net 907-225-7199
2015/- | 60/-
WARD AIR
WESTERN TOWBOAT CO. Bob Shrewsbury II, Pres. 326 Mitkof Hwy. Petersburg, AK 99833 westerntowboat.com 206-789-9000 Tug and barge operator based in Seattle serving all of Alaska and the Pacific coast with twenty-four tugs and six barges. Barge capacity up to 10,500 tons. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
1948/1958 | 180/25
1994/1994 | 2,200/95
WRANGELL MARINE SERVICE CENTER
VITUS ENERGY
Steve Miller, Port Dir. Box 531 Wrangell, AK 99929 wrangellmarineindustry.com 907-874-3736
Justin Charon, CEO 5300 A St. Anchorage, AK 99518 vitus-energy.com 907-278-6700 Vitus Marine specializes in meeting the marine transportation and fuel distribution needs of Western Alaska maritime communities. Vitus currently provides fuel and freight delivery services across Western Alaska. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
Wrangell Marine Service Center is a fullservice boat yard and storage area. It is comprised of haul out dock and washdown area, three lifts (300- and 150-ton lifts and 40-ton trailer), boat storage areas, self-work areas, and vendor facilities. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:
2005/2005 | 4/4
2009/2009 | 100/100 Alaska Business www.akbizmag.com
NEITHER
RAIN NOR SNOW NOR
“THE PLANE ISN’T FULL YET.”
When the schedule says “go,” we go. When you need fast, crucial, and — of course — safe shipping, you can count on our planes. Serving 21 Alaska communities with cargo service, including GoldStreak© Package Express.* For more information or to book your shipment online, go to alaskacargo.com. Or call us at 1-800-225-2752. * Some routes or destinations may operate seasonally.
FISHERIES
Oceans of Opportunity Alaska seafood products reach far beyond state’s shores By Vanessa Orr
66 | June 2021
E
ach year, between 5 billion and 6 billion pounds of wild seafood is harvested in Alaska. Seafood processing accounts for 70 percent of manufacturing employment, and in 2017-2018, the industry provided an average of $5.6 billion in economic activity to the state, directly employing more than 58,700 people. While there’s no doubt that this industry plays an enormous role supporting Alaskans, its overall impact, both in the United States and abroad, cannot be underestimated.
A Value-Added Resource Seafood processed in Alaska takes many forms, from the savory fillets found on plates at white-tableclothed restaurants to fish oil used as nutritional supplements. According to Jeremy Woodrow, executive director of Alaska Seafood Marketing Association (ASMI), most of the seafood produced in Alaska ends up as headed and gutted fish or fresh frozen fillets. “While you might traditionally think of canned salmon as a large portion of the industry, only 15 to 20 percent of the overall salmon product takes that form, compared to the 40 percent it used to represent,” says Woodrow. “While that number is still significant, canned salmon has pretty much been replaced by fillets.” One reason for this is that frozen fillets are considered a value-added product. Because it is more labor intensive than just removing the head and guts from a fish, processors
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Alaska Seafood Marketing Institute
can charge higher prices to retail and restaurant customers. “Any time you can add value to a product closer to the point of catch, it’s going to provide better value for that product down the supply chain, as well as a higher return on investment,” says Woodrow. “This is not only better for processors but it translates to better prices for fishermen and increased value in taxes to communities and the state.” Approximately 40 percent of the catch is sold as whole, gutted fish to US and international markets for further processing. This includes halibut, black cod, and salmon, as well as some larger volume species like sole, flounder, and Alaska pollock. “While the majority of fish are sold as food, we do have some oil and fishmeal produced in the state,” says Woodrow, adding that these products, which are part of the salmon, cod, and pollock fisheries, equal only 3 percent of the industry’s total volume. www.akbizmag.com
Seafood processing accounts for 70 percent of Alaska’s manufacturing employment, and in 2017-2018, the industry provided an average of $5.6 billion in economic activity to the state.
Alaska Seafood Marketing Institute
“When you can get more out of a fish, that translates to a greater value of the overall fish,” he adds of these offcuts, made up of the fish heads and carcasses that are ground up to make different feed products.
Who Is Eating Alaska’s Fish? While the United States is a huge seafood market, it pales in comparison to China, Japan, and some European nations for fish eaten per capita. And while many people cook fish at home, in the United States they tend to eat seafood at restaurants more frequently; prior to the pandemic, 70 percent of seafood sold was consumed at restaurants. “This is a huge, important number to share as we all know what happened in 2020,” says Woodrow. “The first thing to close as a result of the pandemic were restaurants; overnight, the fishing industry lost its number one supply chain and number one outlet for selling seafood.” One good outcome of the pandemic, however, has been a huge uptick in Alaska Business
the number of customers purchasing frozen and fresh seafood from retailers. “We saw incredible growth through ecommerce, with people ordering online from third-party producers like Amazon Fresh,” he says. “While there were a lot of low points in 2020, this was a highlight for the industry because more people in America were cooking at home than ever before. “Unfortunately, that comes with the caveat that this growth didn’t replace the volume of seafood purchased in the food service space; it was not a one-to-one switch,” he adds. “But we do hope that people got more comfortable cooking seafood and will seek it out because they are more confident now.” The United States represents the largest single market for Alaska seafood products, with about 25 percent to 30 percent of the catch staying in the states. The other 70 percent is exported, primarily for consumption in Japan and Europe and to a growing South American market. June 2021 | 67
“If Alaska was its own country, we’d be the eighth-largest seafood producing nation in the world, which is pretty impressive. In the scheme of all products, including aquaculture and wild capture, we represent 2 percent of the global market.” Jeremy Woodrow, Executive Director Alaska Seafood Marketing Association
“Fish sent to China is usually reprocessed and exported from there; it is the largest exporter of our products,” says Woodrow. “However, with the increase in tariff rates and the pandemic last year, it made it much more difficult to get Alaska products into that country.” In any given year, Alaska exports $3 billion worth of product to more than ninety-seven countries, accounting for more than $3 billion in sales, or twothirds of total value. “If Alaska was its own country, we’d be the eighth-largest seafood producing nation in the world, which is pretty impressive,” says Woodrow. “In the scheme of all products, including aquaculture and wild capture, we represent 2 percent of the global market.” Some of the state’s largest competitors for wild-caught fish include Japan and Russia; it competes with Norway in both wild-caught fish and aquaculture, and with farmed aquaculture from Chile and several countries in Asia. This includes farmed shrimp, which is the number one seafood consumed around the world.
Investing in Mariculture One growing area of interest is the mariculture industry, which the state hopes to develop to produce shellfish and aquatic plants for the longterm benefit of Alaska’s economy, environment, and communities. Since the Alaska Legislature passed the Aquatic Farm Act 1988, mariculture industry development has progressed slowly, and annual production now equals approximately $1 million. During this same period, however, other regions of the world saw tremendous growth in the areas of shellfish and seaweed mariculture. Former Governor Bill Walker established the Alaska Mariculture Task Force in 2014 to come up with recommendations as to how to support this burgeoning industry. The task force is made up of eleven representatives of various stakeholders, including communities, tribes, industry, hatcheries, the University of Alaska, the Alaska Department of Commerce, and the Alaska Department of Fish & Game. The Alaska Mariculture Development Plan, which was unveiled in 2018, established a goal to grow a $100
WILD, HEALTHY, AND SUSTAINABLE SEAFOOD Find jobs in Alaska’s seafood industry at jobs.alaska.gov/seafood
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million mariculture industry in twenty years. This includes the enhancement, restoration and farming of shellfish including oysters ($30 million), geoducks ($10 million), seaweeds ($15.7 million), mussels ($7.5 million), sea cucumbers ($6.5 million), and king crab ($5.7 million). The plan also includes a number of recommendations to establish a viable and sustainable mariculture industry, which includes securing and promoting investment in mariculture; establishing an Alaska Mariculture Development Council; maximizing innovation and growth through research; developing new mariculture markets and products; building public understanding and support for mariculture; promoting success through Alaska Native participation; aligning laws, regulations, and agency practices with stakeholder needs; securing seed supply through shellfish and seaweed hatcheries; and growing and developing the mariculture workforce.
Prior to the pandemic, 70 percent of seafood sold in the United States was consumed at restaurants. Alaska Seafood Marketing Institute
Picking Up After the Pandemic While seafood is one of the state’s most robust industries, it was not left unscathed during the pandemic.
A Story Well Told—Business Profiles in Alaska Business By Janis J. Plume, Senior Account Manager
E
very business, like every person, has a story to tell. The trick is to tell it well.
“Marketing is no longer about the stuff that you make, but about the stories you tell.” – Seth Godin, author, entrepreneur, marketer, and public speaker
The task of telling your story within the confines of a display ad is daunting. In the relatively small space of a display ad, you only get a headline and a few lines of copy to pitch your business— and you need to find the perfect photo on top of that! When you realize your business has a bigger story to tell, consider a Business Profile in Alaska Business. Whether your company is celebrating a significant anniversary, changing its brand, or introducing a new business division, we can help tell your story and tell it well with a Business Profile. Alaska Business has the resources to tell your story with a fresh perspective
from a writer with the well-honed skills to interview, organize and write your story. We can also help with a professional photographer if needed. The result is a professional and polished “advertorial” that will pique the interest of readers looking for in-depth information about your company. In addition to being published in the print edition of Alaska Business of your choice, we’ll provide you with placement in the digital edition, a print-ready PDF, reprints, and even a beautifully framed Business Profile to display in your front office— Valuable materials for your future marketing success! For over three decades, Alaska Business has helped scores of Alaskan businesses tell their story effectively and thoroughly with a Business Profile. Call me at (907) 227-8889, and let’s talk about the story you want to tell and how we can put you in front of key decisionmakers who should know more about your business.
Before joining Alaska Business, Janis was a ‘jack of all trades’ in Alaskan advertising for over two decades, working at some of Alaska’s best ad agencies. While he is pretty capable with a camera and loves photography and graphic art, he’s quick to say, “I’m not a graphic designer, and I don’t play one on TV.” He is, however, pretty handy at working one on one with clients seeking advertising solutions in Alaska Business. Janis is a product of the UAA JPC program and believes the pursuit of knowledge and professionalism are lifelong endeavors. When not helping advertisers, Janis celebrates his love for fish and music with a guitar in one hand and a fly rod in the other.
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907-257-2917 | janis@akbizmag.com
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Nearly half of Alaska’s catch is sold as whole, gutted fish to US and international markets for further processing. This includes halibut, black cod, and salmon, as well as some larger volume species like sole, flounder, and Alaska pollock. Alaska Seafood Marketing Institute
“At this point last year, there was doubt if the summer salmon season would even take place,” says Woodrow. “It’s scary to think back and realize that that might have become a reality.” According to The Economic Value of Alaska’s Seafood Industry, prepared by McKinley Research Group for ASMI in January 2020, even a 5 percent decline in commercial seafood value equates to $285 million less in instate economic activity. “Thankfully, a lot of stakeholders came together in the way that Alaskans do to make sure that the season could go on while still taking precautions to protect workers at processing companies and the fleets and residents in remote communities,” says Woodrow. “The processors spent hundreds of millions to keep plants open and have proper protective equipment; it was a huge cost to the industry to stay operational.” He adds that these costs will continue to accrue throughout 2021. “While the vaccine will certainly help, we’re not quite there yet,” Woodrow says. He adds that supply chain logistics have also been a big blow, with the cost of shipping containers alone increasing by 80 percent last fall. “We’re spending more money to operate plants and fisheries, and spending more money to ship fish as well,” says Woodrow, adding that current estimates of the 2020 season show a 20 to 25 percent reduction in the overall value of Alaska’s fisheries, which will mean a $500 million loss in income to Alaska’s commercial fishermen. 70 | June 2021
“It is estimated that 15 to 20 percent of restaurants across the country will not open after the pandemic; they are closed for good. There are a lot of challenges facing the industry moving forward, including how we redevelop the market.” Jeremy Woodrow, Executive Director Alaska Seafood Marketing Association
Restaurants have also been slow to return, which Woodrow predicts will cause even more industry changes. “It is estimated that 15 to 20 percent of restaurants across the country will not open after the pandemic; they are closed for good,” he says. “There are
a lot of challenges facing the industry moving forward, including how we redevelop the market.”
Emerging Trends As people began to adjust to the pandemic, they started finding new ways to enjoy Alaska seafood products, and it is hoped that this trend continues. “The United States was very far behind on the adoption and comfortability of using ecommerce compared to some other countries, but it caught up really fast in the last year as more people become comfortable getting hard goods and fresh groceries delivered to their doors,” he says. “We hope that these changing habits will continue even when people are vaccinated.” The need for food to be more convenient is also growing, with more people seeking out easy-to-prepare meals. “People want quick, easy, simple food that is still healthy, which is where Alaska seafood really excels,” says Woodrow. “We see a great opportunity to check that box.” While 2021 is going to be tough, Woodrow believes that Alaska’s seafood industry will survive—and maybe even thrive—with the changes in consumer habits. “There is light at the end of the tunnel; the consumer is buying more seafood to cook at home, and we’re hoping that when restaurants open, people will return to buying seafood there,” he says. “We’re looking forward to when that happens.”
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OIL & GAS
Is Alaska Oil Measuring Up? How our oil industry compares to other oilproducing states By Julie Stricker
F
or decades Alaska's economy has been defined by the oil and gas industry. Even though production peaked in the ‘80s and has been declining ever since, the industry is still the 49th State's largest economic driver in the private sector, says Kara Moriarty, president and CEO of Alaska Oil & Gas Association. The industry funds the bulk of the state budget, and Alaska residents get an annual dividend from the state's oil royalty revenue in the Alaska Permanent Fund. That's a more direct impact than any other oil-producing state, such as Texas, New Mexico, North Dakota, California, or Colorado, which all have much more diversified economies. Those five states also all have some combination of state income and sales taxes, which Alaska lacks. And while 6 of the top 100 largest oilfields are found in Alaska, according to the US Energy Information Administration (EIA), the state's remoteness and distance from markets, as well as its extreme climate, set it apart from other oil producers. There are also vast differences in transportation, costs, and technology between Alaska and the Lower 48 oil producing states.
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Logistics and Politics Darren Prokop, a professor of logistics in the College of Business and Public Policy at UAA, sums up the differences in Alaska and the Lower 48 oil states in two words: logistics and politics. In a 2020 column on FreightWaves. com, Prokop says the size of the oil and gas deposits in Alaska offer many opportunities. But that oil must be able to reach the market in order to generate revenues, and Alaska's oil industry has the longest domestic supply chain in the industry. Getting Alaska's oil to market requires "arguably the most intricate and costly example of crude oil logistics in the world," Prokop writes. It takes a combination of pipelines, ocean-going tankers, trucks, rail, and air travel to produce Alaska oil and get it to market. Prokop estimates that about a quarter of the cost of oil production in Alaska is due to transportation costs. Alaska has limited refining available, so four-fifths of the state's oil is offloaded into tankers at the transAlaska pipeline's terminal in Valdez and taken to refineries in Washington and California. The rest is refined instate, shipped to Hawaii, or exported, according to the EIA. In the Lower 48, oil reserves are closer to markets and there are multiple avenues of transportation to get it there. Alaska's North Slope is accessible only by the two-lane Dalton Highway, or Haul Road, and by air, except for a narrow summer window that allows for barge travel along the Beaufort Sea coast. North Slope workers typically work shifts of two weeks on, two weeks off and are sequestered in companyprovided housing on the North Slope. Most workers in the Lower 48 can commute from home. If they are housed at the site, they can generally drive their pickup trucks to the next town, if necessary. On the North Slope, temperatures can drop to -100°F with wind chill, and the area is also grizzly and polar bear habitat. Going for a long walk on the tundra in February generally isn't an option. But Alaska's Arctic region is also one of the fastest-warming regions on the globe. Climate change has shortened the window in which companies can build ice roads and www.akbizmag.com
do exploration work on the fragile landscape. None of those are issues in Texas or even North Dakota, though it has its own extreme winter weather. One of the biggest impacts on oil production in the past decade or so is technology. The Bakken shale formation that drove production in North Dakota and Wyoming was discovered in the ‘50s, but it wasn't until horizontal drilling and hydraulic fracturing techniques were developed that the fields became commercially feasible. Some of those techniques are now being used to boost production at Alaska sites.
had a six-month average of 445,000 barrels of oil. Oklahoma was at 440,000 and Colorado at 401,000. "Right now we make up about 4 to 5 percent of the total production in the United States," Moriarty adds. "It's a lot less than it certainly used to be." It's important to note that while Alaska's North Slope dominates the state's oil production, Cook Inlet is also an important source of natural gas, as well as oil. It's an important hub for in-state manufacturing and refining, as well as a source of jet fuel and gasoline in Southcentral Alaska, Moriarty says.
Global Impacts
"Right now, both North Dakota and New Mexico have quite a bit more production than we do. And then, of course, there's Texas, the ultimate behemoth of production." Kara Moriarty, President, AOGA
Declining Production Alaska's production topped out at about 2 million barrels of oil daily in the ‘80s, putting it nearly even with Texas. Alaska was the second largest producer for quite a while, Moriarty says, until the Bakken Formation in North Dakota came online. "Right now, both North Dakota and New Mexico have quite a bit more production than we do," Moriarty says. "And then, of course, there's Texas, the ultimate behemoth of production." Texas produces about 4.6 million barrels per day, while both North Dakota and New Mexico produce more than 1 million barrels per day. Alaska is on par with Colorado, Oklahoma, and California. Between August 2020 and January 2021, Alaska Alaska Business
The entire industry was hit hard in 2020 by a price war between Russia and Saudi Arabia, resulting in the benchmark price for crude oil falling well below zero in April. The global COVID-19 pandemic further impacted production. By the time production started recovering, the policy effects of the 2020 presidential election came into play, which could have a big impact on Alaska's oil future. If Alaska’s production continues on a downward trend, it won’t be for a lack of resource. "We have some amazing prospects," Moriarty says. "We know that there are several billion barrels of oil remaining in the existing legacy fields [on the North Slope]." Hilcorp Energy, a privately held exploration and production company, last year completed its $5.6 billion acquisition of BP's oil and gas interests in Alaska, including a 26 percent interest in the giant Prudhoe Bay field. It has built its business on taking over older assets and improving production by streamlining and updating technology. It has already doubled production at Milne Point since taking over operations on the field. Production at Prudhoe Bay also is picking up. According to the EIA, Alaska's production in April averaged about 480,000 barrels per day, which is above the previous six-month estimate. There are other signs of optimism on the North Slope, Moriarty says. "We know that Oil Search and Repsol are working toward a final investment decision later this year on the Pikka Unit, which once it reaches its full potential, June 2021 | 73
"At least we have a very reliable, environmentally safe pipeline that is safely transporting oil today and has the capacity to obviously transport more. Infrastructure on the North Slope constantly changes, evolves, and gets better and more efficient, cleaner and with less of a footprint every time there's a new development." Kara Moriarty, President, AOGA
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could be 100,000 barrels a day," she says. Prospects at Willow and in the National Petroleum Reserve-Alaska have similar production estimates. "So the prospects for Alaska remain promising, if policy allows us to continue to move forward with these projects," Moriarty says.
Federal Policy Changes The bulk of Alaska's oil and gas production is on federal land, while much of the development in Texas and North Dakota is on private land, which means federal policy can play a big role in what, and how, some prospects get developed. In 2018, ConocoPhillips Alaska president Joe Marushack touted a "North Slope Renaissance." But while the Trump Administration proved to be friendly to the oil and gas industry, approving major North Slope projects and opening more areas for drilling, so far the Biden Administration has been moving much more cautiously, rolling back many of the previous administration's policies. Moriarty says Senator Lisa Murkowski describes the state's current relationship with the Department of Interior as a landlord/ tenant relationship, but under Trump, it was more of a partnership. That could have a big impact on Alaska development, because the state's greatest near-term potential development is on federal lands, she says. In February, the federal government halted all work at ConocoPhillips' Willow development in NPR-A, one of Alaska's biggest proposed fields on the North Slope. "We know that the Department of the Interior is looking at a full review of oil and gas leasing and permitting on federal lands," Moriarty says. It is also looking at limiting carbon emissions and has issued a temporary moratorium on lease activity in the Arctic National Wildlife Refuge. "I think, so far, even though there hasn't been an absolute, immediate impact on production or permitting, the signals that the department is sending are certainly not very welcoming or in a partnership-type manner," Moriarty says. "We'll just have to wait—when this review is completed, which we're expecting sometime this summer—[to know]
what the new rules might be to really understand if we're ever going to get back to a partnership-type relationship with the Department of Interior." However, Moriarty says the differences in how Alaska's permitting process works compared to similar processes in the Lower 48 are likely to result in less of an impact on development than for states such as Wyoming, which have a relatively large percentage of development on federal lands, but which also have Bureau of Land Management permitting requirements.
Looking Ahead One advantage Alaska has is a robust infrastructure, centered on TAPS, Moriarty says. "If you look at the history of the pipeline, the reliability is extremely high," she says. "Alyeska [Pipeline Service Company] does an amazing job of making sure it's operational 24/7, 365 days a year." The Biden Administration has shut down development of the Keystone XL Pipeline and Moriarty notes the general lack of appetite for new pipelines Outside. "At least we have a very reliable, environmentally safe pipeline that is safely transporting oil today and has the capacity to obviously transport more," she says. "Infrastructure on the North Slope constantly changes, evolves, and gets better and more efficient, cleaner and with less of a footprint every time there's a new development." Even with recent downturns and the pandemic, the oil and gas industry is Alaska's largest economic driver in the private sector. Although there are fewer direct jobs than even five years ago, there's no other industry that generates the level of economic activity, Moriarty says. Twenty-five percent of all Alaska jobs are tied to oil and gas. "While there is a desire to continue to find more efficient and potentially cleaner sources of energy, there's still a need from an economic standpoint to continue to have a strong and vital oil and gas industry in Alaska," she says. "Frankly, demand will still remain high globally for at least the next thirty years for oil and gas. And that's good for Alaska because we have a lot of it here."
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Copper Craze Green tech increases demand met by mining By Isaac Stone Simonelli
76 | June 2021
P
resident Joe Biden’s ambitious goal to reduce America’s dependency on fossil fuels sets the stage for a dramatic increase in demand for the mineral resources necessary for green technology—especially copper. Green tech, paired with increased electrification of people’s lives and the urbanization of developing countries, is driving the long-term demand for copper, says Patrick Donnelly, vice president of corporate communications and development at Trilogy Metals. Trilogy Metals has teamed up with Australian-based South32 to create Ambler Metals, a company focused on bringing online two potential copper mines: the Bornite Deposit on NANA Tribal land and the Arctic Deposit on Alaska state land. “Certainly, mining has a bright future due to the need for metals for decarbonization, new energy infrastructure, alternative energy technologies, and EVs,” says Lance Miller, vice president of natural resources for NANA. “Society as a whole needs to appreciate the amount and diversity of metals required for our present lifestyle and the demand of metals required to achieve the goals for a lower carbon footprint.”
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Andreas Häuslbetz & Yukosourov | iStock
MINING
Copper has been at the heart of technological development for thousands of years, dating back to even before the bronze age. In the modern world, the metal’s conductive properties lend it an irreplaceable role in nearly all forms of technology, including batteries, windmills, hydropower plants, and solar farms. Miller points out that the standard combustible engine car requires about 49 pounds of copper, while an electric car needs more than 180 pounds. “The pressure on copper just to provide the building materials for the electrical systems that are required in our modern way of life is very significant,” says Mike Heatwole, vice president of public affairs with the Pebble Partnership. In the United States alone, the total amount of annually discarded cell phones contain almost 2,100 tonnes of copper, according to the Minerals Education Coalition. Annual copper use per capita worldwide sits at about 7 pounds, with Americans using closer to 12 pounds of copper per year. Experts expect annual per capita usage to continue to rise.
David Hammond, a mineral economist at Hammond International Group who works as a consultant for NANA, points out that even if copper use held steady—“no new technological demand or new uses”— annual copper consumption based on the growing world population would double by 2050. “Unless people stop having kids, I think we're gonna need a lot more copper,” Hammond says. However, the push for an increased reliance on green technology in the United States and elsewhere will further increase the demand for the metal. “There will be no Green New Deal and a major shift to renewable sources of energy without significant increases in domestic mining… period,” Miller says.
“The pressure on copper just to provide the building materials for the electrical systems that are required in our modern way of life is very significant.” Mike Heatwole, Public Affairs Officer The Pebble Partnership
Energy Critical Minerals While the United States is ramping up its need for copper, there is a global demand for the metal, as well as for nickel, lithium, manganese, cobalt, zinc, and other energy critical minerals. “Minerals in general, and copper specifically, are probably the most
important part of not only the United States’ but the world's desire to switch from carbon-based energy to more renewable sources,” Heatwole says. “I, frankly, believe that the national environmental community doesn't fully appreciate the supply considerations
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“Certainly, mining has a bright future due to the need for metals for decarbonization, new energy infrastructure, alternative energy technologies, and EVs. Society as a whole needs to appreciate the amount and diversity of metals required for our present lifestyle and the demand of metals required to achieve the goals for a lower carbon footprint.” Lance Miller, Vice President of Natural Resources, NANA
that need to be a part of the conversation about our desires to go green.” Alaska Miners Association Executive Director Deantha Skibinski doesn’t see the Biden Administration necessarily prioritizing streamlining the permitting process for mines, but she’s optimistic that conversations are already underway about the role the sector plays in the President’s vision. Skibinski is encouraged by statements about the importance of domestic
mineral resources made at the confirmation hearing of Department of Energy Secretary Jennifer Granholm. “We've got a long way to go, but the fact that conversation was had so early on by some of the decision makers is really encouraging for us,” Skibinski says. “They need to hear from the mining industry on what we need to help them meet their goals.” Skibinski explains that the country must bring more copper mines into
production to meet domestic demand and ensure mineral security. “We don't actually have an operating copper mine here right now, but we have massive deposits. We need the permitting to be reasonable,” Skibinski says. “Our regulatory system needs a lot of work to bring copper mines into production in Alaska.” Alaska’s geology is diverse—hosting a variety of copper deposits from the volcanogenic massive sulfide deposits
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at the Arctic Deposit to the sedimenthosted deposits at the Bornite Deposit and the porphyries at Pebble Mine, says Miller. “Alaska is underexplored and has potential for discovery of more mines,” he notes.
Permitting The three most well-known, copperrich deposits in the state are the Arctic Deposit, the Bornite Deposit, and Pebble Deposit. With a summer exploration budget of $27 million, Ambler Metals is set to have workers in camp by May to work on the Arctic and Bornite deposits, says Donnelly. The plan is to complete 14,600 meters of drilling. The company is set to start the permitting process for the Arctic Deposit this summer; Ambler metals expects permitting will take two to three years to complete, followed by another four years for operations, if approved, to begin. “It takes a long time to permit,” Donnelly says. “The US permit system is very, very rigorous; it's one of the most rigorous in the world.”
The Arctic project is expected to impact about 147 acres of wetlands, a significantly smaller footprint than most copper mines. “Copper mines tend to be very, very large but very, very low grade,” Donnelly says. The average head grades for a copper mine are about 0.6 percent, though those are significantly declining to as low as 0.3 percent in many established mines. “In the case of Arctic, it's got 4 percent copper equivalent,” Donnelly says, noting that about 2 percent of that is actually copper. The resources sit at about 5 percent copper equivalent, which ends up being about 4 percent when they’re converted to reserves. “There are only a few mines in the world that have the grade we have,” Donnelly says. The road to permitting has been particularly difficult for the Pebble Project. The US Army Corps of Engineers denied a federal permit for the project in November. However, that decision has been appealed, Heatwole says.
In the executive summary of the now-granted request for an appeal, the company wrote: “PLP bent over backwards to meet the District’s requests, including redesigning aspects of the Project to reduce impacts, developing costly and extensive data, agreeing to a new preferred alternative that was significantly different than what PLP had proposed, and developing detailed plans and mitigation measures in response to District requests. “Despite the robust, unprecedented scale of the plan, the District summarily rejected the CMP within days as ‘incomplete’ without giving PLP an opportunity to address the alleged gaps.” The project, proposed on State of Alaska land, contains significant deposits of copper, gold, molybdenum, silver, and rhenium. “It's one of those largest undeveloped copper opportunities in North America,” Heatwole says.
Ethical Mining Heatwole says the opposition to the project raises a significant question:
“We protect the environment because this is the land where we grew up.” – Evan Polty Jr. Lead Mechanic, Donlin Gold Born in Pilot Station and Resident of Russian Mission
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“Perhaps one way to educate is to have an ‘ingredient list,’ such as on food products. For example, before you use your cell phone or a car the user needs to agree they have read a list of all metals and the sources of the metals which have been used to make the product.” Lance Miller, Vice President of Natural Resources, NANA
Where do people want copper and other minerals to be mined? “Do you want it to come from first world jurisdictions, such as the United States, where we take very seriously our environmental ethos?” he asks. Heatwole says ethical sourcing of copper and other mineral resources goes beyond mitigating
environmental impacts to general safety and labor practices. “There are a lot of minerals coming into the world marketplace from countries that don't care about such things as child labor,” Heatwole says. “Look at cobalt coming from the Democratic Republic of the Congo.” Concerned groups have documented severe human rights issues in
Democratic Republic of the Congo mines for years, including violent clashes between miners and security personnel, child labor, and fatal accidents. Skibinski echoes Heatwole. “When you're looking at domestically sourcing some of these minerals, it's a huge advantage just from a security perspective,” Skibinski says. “But then you look at all of the other benefits like safety and environment.” Skibinski points out that US dependency on rare earth elements from China has already exposed significant security weaknesses, opening America up to being exploited in trade deals. Senator Lisa Murkowksi’s American Mineral Security Act, proposed in 2020, sought to tackle issues of mineral dependency. “The COVID-19 pandemic has brought renewed attention to the fact that our nation is heavily dependent on imports for a wide array of goods and technologies that are essential to our health, economy, and security,” Murkowski said in a 2020 news release on the bill.
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“We need to reverse our damaging dependence on China and other nations and rebuild domestic supply chains for everything from personal protective equipment to clean energy technologies.” While copper isn’t on America's list of thirty-five “critical minerals,” Skibinski says there simply isn’t enough of the metal produced in the United States. A domestic supply of copper provides geopolitical power and prevents countries, such as China, from forcing the United States to make unreasonable deals to ensure access to certain materials, Miller explains. With projected demand and population growth, there will be a significant shortfall in copper supply within the next five to ten years, Donnelly says.
Changing Public Perception As of April, copper was sitting at a ten-year price high of about $4 a pound. However, long-term trends in supply and demand for mineral products are vital to understanding the economic potential of a mine, which
can usually take up to a decade to bring online. “The prices now are rising, which could make properties that in the last several years have not looked that interesting yet could now be attractive and economic with the higher prices,” Miller says. But one of the more difficult aspects of getting the public onboard with copper extraction projects is educating them about the safety measures being put in place to ethically source the mineral and how vital the metal is to modern society. “The goal is to lift people out of poverty,” Heatwole says, noting that that happens through the creation of electrical grids and cheaper energy—both of which require “a lot” of copper. Consumers need to understand that “the metals are really the building blocks of our built infrastructure,” Heatwole says. Miller proposes one solution for consumer education: “Perhaps one way to educate is to have an ingredient list, such as on food products. For example, before you
use your cell phone or a car, the user needs to agree they have read a list of all metals and the sources of the metals which have been used to make the product.” Hammond says he doesn’t understand where those who oppose mining operations in the United States think the minerals necessary for green infrastructure are going to come from. The Mineral Education Coalition estimates that a baby born in the United States in 2020 will use about 950 pounds of copper, 502 pounds of zinc, and 871 pounds of lead in its lifetime. While Alaska's vast, rugged landscape and strict permitting processes will always make it difficult to bring mines online here, the state could be well positioned to provide vital mineral resources to the nation as it pushes toward greener infrastructure. “In order to have the goal of decarbonizing heavy industry and more alternative energy technologies, it will require mining a lot of, call them, energy critical metals,” Miller says.
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June 2021 | 81
INSIDE ALASKA BUSINESS Coast Guard Coast Guard Air Station Kodiak crews opened up a seasonal aviation support facility in Cordova in advance of summer fisheries. Air Station Kodiak aircrews transferred an MH-60 Jayhawk helicopter and equipment to Cordova to reduce the response time to the Gulf of Alaska in anticipation of historically increased maritime activity in that region during the summer. pacificarea.uscg.mil
Alaska Airlines | UNCF Alaska Airlines’ “Our Commitment” aircraft took to the skies in partnership with UNCF (United Negro College Fund), a symbol of the airline’s promise to create a place where everyone sees themselves and belongs. “As a company, we know we are not yet where we need to be when it comes to diversity, but we are inspired and guided by our value to do the right thing. With this aircraft, we are doing the right thing by amplifying the conversation around education, equity, and belonging— and taking it to the skies,” says Ben Minicucci, Alaska Airlines CEO. alaskaair.com | uncf.org
Royal Caribbean Group Royal Caribbean Group has pledged its support for the Shop Local Alaska Program, an initiative by the BuyAlaska Program and Voyij.com, an online marketplace exclusively for Alaska businesses. As small businesses in Alaska face another season crippled by the loss of 1.3 million visitors to the state by cruise lines, Royal Caribbean Group has agreed to raise awareness of Alaskan-owned businesses in port towns that are struggling to survive. royalcarribean.com
Alaska Mental Health Trust | DHSS The Alaska Mental Health Trust Authority recently awarded three grants, totaling $937,500, to Fairbanks organizations to support improvements to the community’s response to individuals experiencing a behavioral health crisis. These grants represent a significant step in efforts led by the Trust, in partnership with the Alaska Department of Health and Human Services (DHSS) and community partners, to improve systems that respond to Alaskans in crisis. As a part of this effort, the Trust and partners are working to implement the nationally recognized Crisis Now model, consisting of a continuum of services that are working in many communities to improve mental health crisis response, prevent suicide, and reduce reliance on law enforcement, emergency rooms, and jails when responding to crises. alaskamentalhealthtrust.org | dhss.alaska.gov
UAF UAF has created an online, 12-week professional certificate in sport business management in partnership with edX. Students can earn the certificate by completing three fourweek classes. Students can enroll and progress through the online courses on their own schedule. The certificate program introduces all aspects of the business side of sports, including event management, marketing, facilities, and analytics. uaf.edu
REAP | UA System Five Alaska communities, out of eleven remote communities across
the country, have been chosen for a US Department of Energy project to improve energy infrastructure and resilience. The five communities include Aleknagik, Ouzinkie, Wainwright, Dillingham, and the Alaska Longline Fishermen’s Association in Sitka. The US Department of Energy’s National Laboratories chose the communities as part of the Energy Transitions Initiative Partnership Project, in which the Renewable Energy Alaska Project (REAP) is a partner. The five communities will work with REAP and the University of Alaska to find technical solutions to entrenched, community-specific problems. These challenges range from efficient integration of renewable energy into microgrids to designing microgrid control systems. alaskarenewableenergy.org | dhss.alaska.gov
Crowley Crowley Engineering Services has completed the design of the first fully electric US tugboat with autonomous technology—providing operators a sustainable and highperforming solution for ship assist and harbor services in any port. The Crowley design, powered by the expertise of recently integrated subsidiary Jensen Maritime, leverages a large battery system and power saving technology to operate in a fully electric mode while producing zero air emissions or greenhouse gases. The 82-foot tug will provide 70 short tons of bollard pull, featuring an Azimuthing drive propulsion system with two 1,800 kW motors and a 6 MWh battery. crowley.com
ECONOMIC INDIC ATOR S ANS Crude Oil Production 480,279 barrels -1% change from previous month
ANS West Coast Crude Oil Prices $67.81 per barrel 5% change from previous month
Statewide Employment 348,617 Labor Force 6.6% Unemployment
5/3/21 Source: Alaska Department of Natural Resources
5/3/21 Source: Alaska Department of Natural Resources
3/1/21. Adjusted seasonally. Source: Alaska Department of Labor and Workforce Development
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RIGHT MOVES Tlingit & Haida The Central Council of the Tlingit and Haida Indian Tribes of Alaska promoted Royal Hill Jr. to Construction Project Manager for Hill Southeast General Contractors, the Tribe's new construction company. As the construction project manager, Hill is responsible for overseeing all construction projects, including inhouse renovation, new construction, and general maintenance projects for Tlingit & Haida and for-profit public bid projects. Hill attended Haskell University seeking a degree in business administration and received an accounting endorsement through UAS. He has more than twenty years of construction experience and has worked on many projects throughout Southeast, including twenty houses he helped build in Hoonah for the Tlingit Haida Regional Housing Authority.
Fidelity Title Agency Fidelity Title Agency of Alaska hired Paula Price as Escrow Officer. Price was most recently commercial escrow officer for First Price American Title serving residential and commercial customers. Price brings experience in both escrow and the real estate industry, while excelling in communication and customer service.
United Way United Way of Anchorage announced that Nancy Burke has joined the team as a
Special Assistant to President and CEO Clark Halvorson for housing and COVID-19 response programs. Burke brings a wealth of experience Burke in nonprofit, municipal, and state government services to assist in data collection, design, funding, and improvement of community and government systems serving people who are homeless or who experience a mental illness and disability. Burke has a master’s in social work focusing on family and mental health systems and has experience with clinical and housing service design needed for successful supportive housing programs for persons with severe disabling conditions. In her new role, she supports United Way’s Home for Good program on the clinical and housing components of the project as it continues in the first full year of a three-year Pay for Success financed program.
Peter Pan Seafood Kevin Larsen joined Peter Pan Seafood Company on the domestic and international sales team as Vice President of International Sales and Larsen Business Development. Larsen is a proven seafood sales leader with a diverse background in seafood sourcing and sales. Throughout his career he has worked up and down the West Coast, most recently at Bornstein Seafoods. In addition to extensive experience in domestic US sourcing and sales, Larsen brings extensive international
sales and experience, particularly in Europe, from his experience at Icicle Seafoods. Brody Pierson joined the Peter Pan Seafood Company team leading domestic and international sales for shelfstable products. Pierson Pierson brings extensive domestic canned sales and logistics experience to the team, having most recently served as domestic canned sales manager at Icicle Seafoods and OBI Seafoods. Additionally, Pierson has prior export and trading experience. Gayle Janzow has been named the Plant Manager for the Valdez plant. Janzow has more than twenty years of experience in seafood Janzow operations. She has spent time in production and processing, including value-added at Orca Bay Foods and in production technology at Marel. During college, she began working summers at Peter Pan on the can lines and now years later took the opportunity to return to Peter Pan.
Thrivalaska Tiara Davis has accepted the position of Executive Director of Thrivalaska. Davis brings nearly a decade of education and Davis counseling experience, including advocacy, career counseling, and program development. She is also an advocate of the diversity, equity and inclusion (DEI) model, and has led DEI
RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO
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efforts throughout her career which will be vital to Thrivalaska’s commitment to meeting the challenges of the families it serves.
ACDA Anchorage Community Development Authority (ACDA) has promoted Melinda Gant to Community Development & External Gant Affairs Director. During her twenty-one years with ACDA, Gant has worked on a number of large projects including the development of Glenn Square Shopping Center, Northpoint Bluff housing project in Government Hill, rebranding the Anchorage Parking Authority to EasyPark, and development of ACDA’s Parking Program of Best Practices. She’s been part of the creation of community and donation programs and led critical stakeholder meetings for both the parking and development departments. As the new director, Gant oversees redevelopment projects for ACDA, including the 6th Avenue project and 96 Flats and leasing for ACDA, as well as serving as the liaison for the Board of Directors and oversight of strategic planning.
Museums Alaska Museums Alaska has hired Dixie Clough as its Director. Clough now serves as the lead administrator for the Clough statewide organization that works to strengthen museums and cultural centers throughout Alaska. In this role, she manages Museums Alaska’s substantial
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grant program, oversees the organization’s programming and communications, and supports advocacy efforts. Clough holds a master’s in museum studies from George Washington University and has more than ten years of experience in both arts administration and museum practice. Her resume includes previous appointments with the American Alliance of Museums, the MuseWeb Foundation, and the Smithsonian Institution.
R&M Drey Antonio recently joined R&M Consultants as a Staff Engineer in the firm’s airport engineering group. He will assist with planning and Antonio design of civil engineering projects, with an emphasis in analysis and design for airport and other civil engineering-related work. His experience includes working as an engineering intern with the Municipality of Anchorage's Project Management and Engineering Department. In this role, he assisted in gathering ramp and sidewalk data for the City’s ADA compliance plan; completed an ArcGIS database catalog of all ADA ramps and sidewalks; inspected project sites and locations; and surveyed waterways and streams for environmental compliance. He has a bachelor’s in civil engineering from UAA and holds his Engineer-in-Training certificate.
Department of Public Safety Governor Dunleavy appointed James Cockrell as Commissioner for the Department of Public Safety. Cockrell has served several assignments with the Alaska State Troopers and the Alaska Wildlife
Alaska Business
Cockrell
Troopers, starting in 1983 and retiring as a Colonel in 2017. Most recently he was working for Marathon at the Kenai refinery as their site security supervisor.
Cold Climate Housing Research Center Mindy O'Neall has been named Executive Director of the Cold Climate Housing Research Center to lead the Alaska nonprofit in O’Neall promoting and advancing the development of healthy, durable, and sustainable shelter for Alaskans and circumpolar people. She is a communications, marketing, and media consultant with an extensive background in policy and organizational development.
BBSAK Big Brothers Big Sisters of Alaska (BBBSAK) has hired Jillian Lush as its CEO. Lush comes to BBBSAK after a decade of leading Sprout Lush Family Services in Homer, where the core mission is to promote the healthy development of children in partnership with families and community. Lush earned a master’s of social work from Washington University in St. Louis and participated as a Fellow in the Parent Infant Mental Health Post-Graduate Certificate Program, now housed at UC Davis. For the past several years, she has helped lead a team of six Homerarea nonprofits in building a network committed to leading with a traumainformed approach.
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ALASKA TRENDS It’s a bird, it’s a plane, it’s a… wait, what exactly is that? No, it’s not Superman. And sorry to disappoint, but it’s not a UFO either. We’re talking drones. Or for the purists: unmanned aerial vehicles (UAVs). Alaskans may have noticed an uptick in the little hovercrafts that just seem to be everywhere (including some places they probably shouldn’t be), and for good reason. Outside of personal use, there are a variety of applications for the devices from surveying to surveillance, farming to photography. And in the not-so-distant future—even delivery. The Department of Transportation classifies drone users into three different categories: · A recreational user is anyone who uses a drone solely for recreation. Anyone who flies a drone for monetary or business purposes is not a recreational user. · Federal, State, or Tribal government entities, including schools and universities, that use unmanned aircraft system/drone technology are considered public operators.
8%
of Americans own at least one drone.
15%
of Americans have flown a drone according to a 2020 survey of over 1000 participants.
·
A person or company using unmanned aircraft system/ drone technology for compensation or business purposes is considered to be a commercial operator. This includes any person or company using a drone in any way to advertise, promote, or demonstrate a product or service, even if the product or service itself does not include a drone. Indeed, drones are on the rise. But just how fast might surprise you. It’s estimated that nearly 1 in 10 Americans own a drone and 15 percent of the population have flown one. Further, the Federal Aviation Administration predicts that by 2023, the number of commercial drones in operation will triple: 835,000. And by the same year, experts are expecting there to be 350,000 licensed drone pilots. But there’s still rules! This month’s installment of Alaska Trends is here to keep you in the know and out of trouble.
1,563,263 UAS The FAA predicted there would be around 452,000 commercial UAS in use by 2022, but that number was reached in March of 2020.
As of March 10, 441,709 commercial and 1,117,900 recreational UAS had been registured, totaling 1,563,263 registured UAS in the US.
350,000 Pilots Experts claim that 350,000 UAS pilots will be registered by 2023.
Recreational vs. Commercial People assume that a commercial flight is done for financial compensation. Compensation or the lack of it is not what determines if the flight is recreational or commercial. Non-recreational purposes include things like taking photos to help sell a property or service, roof inspections, or taking pictures of a high school football game for the school's website. Goodwill or other non-monetary value is also be considered compensation. This would include things like a volunteer using their drone on behalf of a nonprofit. Recreational flight is simply flying for fun or personal enjoyment.
Sources: DOT&PF, UAF, FAA, and ACUASI
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Know the Difference Drone: Most commonly used term to refer to any unmanned aerial vehicle. UAV: Unmanned Aerial Vehicle (UAV) is an aircraft that can fly autonomously or remotely. UAS: An Unmanned Aerial System (UAS) is the totality of everything that makes a UAV work including its GPS module, ground control module, transmission systems, camera, all the software, and the person on the ground controlling the drone.
UAS and Salmon
Commercial Applications
UAS may not be used in any activity related to commercial salmon fishing in Alaska.
UAS are now applicable to a multitude of sectors including media, real estate, disaster response, mining, maritime, education, construction, tourism, utilities, agriculture, meteorology, aviation, and logistics.
Inspection UAF, the North Dakota DOT, and the Kansas DOT have conducted UAS flights beyond the pilot’s visual line of sight to inspect pipelines and powerlines.
UAF Leads 24 of the world's leading research institutions, and 100+ leading industry/ government partners including the Alaska Center for UAS Intergration and the University of Alaska Fairbanks, make up The Alliance for System Safety of UAS Research Excellence (ASSURE). ASSURE members lead 3 FAA UAS test sites, 4 FAA research centers, 7 airfields, and a fleet of 340 UAS.
Millions and Billions Every year that UAS integration into the National Air Space (NAS) is unavailable, the US loses more than $10 billion of potential economic impact. www.akbizmag.com
Dominate The demand for UAS over 55 lbs. is expected to surpass the number of active GA (General Aviation) aircrafts in less than 15 years.
Tripling the Market The FAA now expects there to be 835,000 commercial UAS by 2023, tripling the market in five years. Alaska Business
Privacy Alaska’s Constitution guarantees Alaskans the right to privacy. Article 1, Section 22 states, “The right of the people to privacy is recognized and shall not be infringed. The legislature shall implement this section.” The UAS Legislative Task Force reviews these protections particularly as they relate to unmanned aircraft systems as it pertains to the specific act of intrusion into another’s privacy, the prevention of intrusion into one’s own privacy, and/or the act of exposing elements of one’s privacy against an individual’s will. This concept is recognized as “the right to be left alone.” June 2021 | 87
AT A GLANCE What book is currently on your nightstand? Washington’s Crossing by David Hackett Fischer. What’s a charity or cause that you’re passionate about? Helping kids gain an understanding of the business world and how they can succeed— Junior Achievement. What’s the first thing you do when you get home after a long day at work? Depends on the day, but I’m either probably going to work out or begin cooking. My wife does the oven stuff and I do the grilling stuff. What vacation spot is on your bucket list? For Alaska, it’s Sitka. And globally, I think Spain. If you could domesticate a wild animal, what animal would it be?
Images ©Kerry Tasker
Porcupine, I think they seem pretty chill.
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OFF THE CUFF
Jim Szczesniak T
ed Stevens Anchorage International Airport’s new Airport Director only touched down in the
state a few short years ago. And with Anchorage International among the top five cargo airports in the world, Jim Szczesniak had his work cut out for him. Fortunately, things have worked out pretty well since then: for both the Chicago-native and one of Alaska’s leading drivers of business.
AB: What’s your favorite local restaurant? Szczesniak: Depends on my mood but usually either Marx Brothers or Club Paris. AB: Other than your current career, if you were a kid today, what would your dream job be? Szczesniak: NHL goalie (when I play hockey, I’m a goalie so that’s my thing). AB: What’s your favorite way to exercise? Szczesniak: Ice hockey.
“I’ve certainly been busy,” he laughs. The pandemic has caused a few bumpy rides for other industries, but air cargo has been something of a bright spot. Szczesniak and his team have been hard at work on developing, managing, and leading the airport that serves more than 5 million passengers each year. You gotta wonder how he still finds time to cheer on his Blackhawks.
Alaska Business: What do you do in your free time? Jim Szczesniak: I’ll do anything outdoorsy—hiking, skiing, fishing, boating, kayaking, whitewater rafting—anything that’s outside and seems like fun, I’m into it. AB: Is there a skill you’re currently developing or have always wanted to learn? Szczesniak: I live in Eagle River, so I see a lot of paragliders around and I’m definitely interested in learning how to paraglide.
AB: Dead or alive, who would you like to see perform live in concert? Szczesniak: Queen. I’m a huge Zeppelin fan but I’ve seen them, so I got to check that off the bucket list—the next one is Queen. AB: Are you superstitious? Szczesniak: Not particularly—I make my own luck. AB: What’s your best attribute and worst attribute? Szczesniak: My best attribute is my positive, get-thingsdone attitude. My worst attribute is probably when I slip into my Chicago language, which can be pretty “salty.”
AB: What’s the most daring thing you’ve ever done? Szczesniak: So my dad did the Running of the Bulls in Pamplona and I did the Running of the Reindeer in Alaska. Those reindeer get pretty close to ya. www.akbizmag.com
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ADVERTISERS INDEX 3-Tier Alaska Engineering & Surveying....18 3tieralaska.com tpeci.com
Donlin Gold..............................................79 donlingold.com
Shoreside Petroleum................................78 shoresidepetroleum.com
49th State Brewing Co. Denali Crow's Nest Cabins.......................23 denalicrowsnestcabins.com
First National Bank Alaska.......................... 5 fnbaalaska.com
Span Alaska Transportation LLC............... 31 spanalaska.com
Great Originals..........................................55 greatoriginals.com
Stellar Designs Inc....................................80 stellar-designs.com
JAG Alaska................................................ 51 jagalaska.com
The Plans Room....................................... 15 theplansroom.com
Jim Meinel CPA PC................................... 17 meinelcpa.com
TOTE Maritime Alaska............................... 71 totemaritime.com
AEDC – Anchorage Economic Development Corp...................................25 aedcweb.com Airport Equipment Rentals.......................91 airportequipmentrentals.com Alaska Air Cargo – Alaska Airlines............65 alaskacargo.com Alaska Mergers & Acquisitions, LLC.........80 fink@alaska.net Alaska Railroad..........................................55 AlaskaRailroad.com/freight Alaska Traffic Company............................63 alaskatraffic.com Arctic-On-Demand.................................. 21 akaod.com AT&T............................................................ 7 att.com/cybersecurity Carlile Transportation Systems................53 carlile.biz
Kloosterboer Dutch Harbor....................... 3 kloosterboer.us | alaskareefer.com Lynden......................................... 34, 35, 92 lynden.com
Westmark Hotels – HAP Alaska.................9 westmarkhotels.com
Matson Inc................................................41 Matson.com/Alaska
While there are many reasons to subscribe,
New Horizons Telecom Inc...................... 27 nhtiusa.com Northern Air Cargo............................ 84, 85 Nac.aero Odyssey Logistics & Technology Corp......................................47 odysseylogistics.com/alaska
Coastal Transportation Inc.......................32 coastaltransportation.com
Pacific Pile & Marine.................................83 pacificpile.com
Conam Construction Co.......................... 15 conamco.com
Pacific Seafood Processors Association............................68 jobs.alaska.gov/seafood
we’ll list just three: 1. Connect with Alaska Business Leaders
2. Gain Important Insight and Information
3. Enjoy Award-Winning Journalism and Design
Parker Smith & Feek.................................. 75 psfinc.com
CMI – Construction Machinery Industrial..................................................... 2 cmiak.com
PND Engineers Inc....................................81 pndengineers.com
Credit Union 1...........................................19 cu1.org
Ravn Alaska...............................................45 RavnAlaska.com
Davis Constructors & Engineers In.......... 57 davisconstructors.com
Schwabe Williamson & Wyatt...................39 schwabe.com/locations-anchorage-alaska
DesertAir...................................................33 DesertAirAlaska.com
SeaTac Marine Service..............................29 seatacmarine.com
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West-Mark Service Center........................ 57 West-mark.com
Material Flow & Conveyor Systems Inc............................................... 13 materialflow.com
Central Environmental inc........................ 11 cei-alaska.com
Conrad Houston Agency .........................68 chialaska.com
Usibelli Coal Mine..................................... 77 usibelli.com
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You Keep Alaska Moving! Thank you to Lynden employees around the state for keeping Alaska’s supply chains operating as usual, during a very unusual year. Your dedication, flexibility, and ingenuity was critical to ensuring fellow Alaskans had the essential supplies they needed, when they needed them. We look forward to a great year ahead and will continue to provide multi-modal transportation and logistics solutions across all of Alaska, from Ketchikan to Kaktovik!
