Alaska Business Monthly February 2014 by Alaska Business

THE ARCTIC ISSUE PETRO TECHNOLOGY & LOGISTICS, SHIPPING, CONSTRUCTION, PORTS & HARBORS

February 2014

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Parker Drilling’s Arctic Alaska Drilling Units Rigs No. 272 and No. 273 help BP move forward Page 98

Special Sections ■ Architects & Engineers Page 16 ■ World Trade Alaska Page 60

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Februar y 2014 TA BLE OF CONTENTS DEPARTMENTS From the Editor . . . . . . . . . . . . . . . . . . . . . 7 Right Moves . . . . . . . . . . . . . . . . . . . . .124 Inside Alaska Business . . . . . . . . . . 126 Alaska This Month. . . . . . . . . . . . . . . 129 Events Calendar . . . . . . . . . . . . . . . . . 133 What’s Next? . . . . . . . . . . . . . . . . . . . . 134 Alaska Trends. . . . . . . . . . . . . . . . . . . . 135 Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . 139

ABOUT THE COVER Rig No. 272, one of two Parker Drilling Arctic Alaska Drilling Units designed and engineered for BP to operate in the harsh climate and sensitive environment of Alaska’s North Slope oil ﬁelds (story by Julie Stricker begins on page 98). © Judy Patrick Photography

ARTICLES

VIEW FROM THE TOP © Chris Arend Photography

Photo courtesy of the Alaska Seafood Marketing Institute

8 | Angela Cernich, Owner Arctic Branding and Apparel Compiled by Mari Gallion

ICONIC ALASKANS

10 | Henry Springer Bound to bridges and birds By Shehla Anjum

A commercial ﬁsherman tossing an anchor into the Bering Sea.

TELECOM & TECHNOLOGY

LEGAL SPEAK

TRANSPORTATION

FINANCIAL SERVICES

FISHERIES

OIL & GAS

58 | Smartphone Apps in Business By Eliza Evans

74 | Arctic Shipping and Northern Harbors International port plans span more than a century for Nome By Will Swagel

86 | Alaska Seafood Industry Creates Jobs, Opportunities Facilitating growth in business, total economic output By Vanessa Orr

MINING

90 | Alaska Exports Copper through Skagway Yukon Territory Minto Mine booms with new finds By Dimitra Lavrakas

Henry Spring and a few birds. 4

Alaska Business Monthly | February 2014

93 | Read the Fine Print It can save you time, money, and grief! By Renea I. Saade

94 | Alaska Lenders Finding Good Borrowers Lending opportunities present growth for Alaska businesses By Tracy Barbour

98 | Parker Drilling’s Arctic Alaska Drilling Units Rigs No. 272 and No. 273 help BP move forward By Julie Stricker 102 | Shell’s Plan for 2014 Returning to the Chukchi Sea By Mike Bradner 108 | North Slope Exploration and Development Ramped up activity with passage of SB21 By Dimitra Lavrakas www.akbizmag.com

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Februar y 2014 TA BLE OF CONTENTS special section

Architects & Engineers

World Trade Alaska

DiscoverE.org

special section

16 | Engineers Week—Discover E 18 | Engineer of the Year Nominees Compiled by Colin Maynard, PE

48 | Innovations in Design ‘Working with and engaging owners’ By Rindi White 52 | Architects & Engineers Directory

24 | Sustainable Arctic Construction Challenges Inspire Creativity By Nichelle Seely

70 | Between Strait and Sea Ottawa’s Northwest Passage dilemma with implications for Alaska By Sourabh Gupta and Dr. Ashok K. Roy ©Lisa Abitbol

Using angles and radial curves throughout the design helps make the new Natural Pantry building feel fresh and visually interesting.

Alaska Business Monthly | February 2014

64 | Update on China in Alaska Dragon Decade roars with rapid growth By Greg Wolf

68 | US Cabotage Laws and Alaska’s LNG Trade The dawn of the Jones Act Waiver By Isaak Hurst

36 | Building on the Shores of the Arctic Ocean Conexes and metal stack it up By Dimitra Lavrakas

Photo courtesy of Neeser Construction Inc.

62 | Anchorage: Cosmopolitan Pacific Rim City International connections foster global relationships By Greg Wolf

66 | Southeast Asia Business Trends for Alaska Strategic locations and low wages boost trade potential By Alex Salov

30 | Arctic Construction Masterpiece Barrow Hospital By Dimitra Lavrakas

42 | Urban Water & Wastewater: Fairbanks Privatized utility partnerships serve Interior city well By Rindi White

60 | Business Opportunities in the Arctic Capitalizing on long-term advantages By Greg Wolf and Alex Salov

73 | Export Partners and Commodities Top 25 via Alaska

ARTICLES

OIL & GAS

112 | Arctic Logistics for the Oil and Gas Industry Transportation is challenging and complicated By Eliza Evans

120 | Innovations and Advancements in Arctic Technology Enhancing research, management, and operations By Judy Griffin www.akbizmag.com

2014 FROM THE EDITOR

Volume 30, Number 2 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF Managing Editor Editorial Assistant Art Director Art Production Photo Consultant Photo Contributor

Susan Harrington Tasha Anderson David Geiger Linda Shogren Chris Arend Judy Patrick

BUSINESS STAFF President VP Sales & Mktg. Senior Account Mgr. Account Mgr. Survey Administrator Accountant & Circulation

Jim Martin Charles Bell Anne Campbell Bill Morris Tasha Anderson Melinda Schwab

501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com Advertising email: materials@akbizmag.com Pacific Northwest Advertising Sales 1-800-770-4373 ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (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; Fax: (907) 279-2900, ©2014, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specific permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www. thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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Already A Better Year

ight out of the gate, 2014 is looking to be a better year than 2013. Not that I’m superstitious; I’m not (usually). However, the only traffic violation I ever received, and that was more than twenty years ago, was for going thirteen miles over the speed limit, thirteen minutes after midnight, on the thirteenth of the month. Bad luck with the number thirteen? You be the judge. As for 2014—I am hopeful and encouraged for Alaska. There is great promise for a better economy and a better future for our children and grandchildren. We are buoyed up, of course, by the positive changes coming forth in the oil and gas industry, the quintessential financier of the Alaska state government. Another big economic engine, but one that’s often overlooked, is the seafood industry. “Alaska Seafood Industry Creates Jobs, Opportunities: Facilitating growth in business, total economic output” is a most informative article by Vanessa Orr (page 86). A frequent freelancer to Alaska Business Monthly, Orr details how well the industry is doing by sharing interviews and information from the Deckers, a Southeast Alaska family that makes their living via commercial fishing; a fisheries guru, Northern Economics Vice President and Senior Economist Marcus Hartley; and a man who knows all about the Alaska seafood industry—Tyson Fick of the Alaska Seafood Marketing Institute. Learning about the literally tens of thousands of jobs and multiple billions of dollars infused into the economies of Alaska and the United States via Alaska’s fisheries will astound many. I know I was surprised to learn the Alaska seafood industry is the basis for employing more than one hundred thousand people across the United States—with billions in associated labor income and retail value. I did know that there are tens of thousands of Alaska jobs related to the industry and billions of dollars of wages and direct investments flowing back into the Alaska economy and that it is a multi-billion dollar industry in the state. I don’t want to be a spoiler for our readers this month though, so I’ll stop with the statistics. Suffice it to say that readers will find out what a huge and important sector of the state’s economy the seafood industry actually is. For export specifics, readers will want to peruse the “Export Partners and Commodities: Top 25 via Alaska” in the World Trade Special Section (page 73). The rest of the magazine is sure to inform and delight readers with excellent coverage of the Arctic in both special sections and woven throughout the February issue. The team at Alaska Business Monthly has put together another really great magazine. Enjoy! —Susan Harrington, Managing Editor February 2014 | Alaska Business Monthly

View from the Top

Compiled by Mari Gallion

Angela Cernich, Owner Arctic Branding and Apparel

orn in Anchorage and raised in Soldotna, which she affectionately refers to as “Slowdotna,” Angela Cernich (nee Jay) knows Alaska: its industry, its weather, and its people, including life-long friends from her youth. Raised by a slope-worker father and a stayat-home mother, ﬁ shing, hunting, and camping were a way of life. After a few stints of living out-ofstate, Cernich returned to make Anchorage her permanent home. In January of 2012, Cernich opened Arctic Branding and Apparel. © Chris Arend Photography

FIND A NICHE: Actually, Arctic Branding and Apparel was inspired by a client. I had been working in the promotional marketing industry for quite a few years. While working for another company, one of my clients mentioned “FRC” and asked me if we could carry it. Honestly, I didn’t even know what FRC stood for… but I didn’t waste any time finding out. Once I knew what Flame Resistant Clothing (FRC) was, I researched what it would take for my current boss and our company to move into the industry. Although my boss at the time was not interested in expanding into this industry, I was super excited about the possibilities. My enthusiasm wore off on my then-fiancé, who encouraged me to go out on my own. He was not only supportive emotionally, he also made the initial investment (along with my very best friend since elementary school—one I had known since we were nine) to start what became Arctic Branding and Apparel. BUSINESS PARTNERSHIPS: In September of 2012 we met with Big Bill, a manufacturer of fire retardant and work wear. Like us, they had researched the market in Alaska and determined a need. They were looking for a distribution partner, we were looking for a manufacturer, and we found that our values were in line. As we collaborated on solutions to the biggest challenges our clients faced, we came up with the concept of a large warehouse with product available at all times right here in Anchorage. 8

Alaska Business Monthly | February 2014

With Big Bill as a partner, we were able to commit to fair pricing with product availability for our customers. CHOOSING FRIENDS WISELY: My favorite idea from Big Bill is that of putting an X on the back of all high-visibility garments. The norm on the slope has always been just some high-visibility tape on the front and back. With the Big Bill garments, there is the hi-visibility tape on the front, but an X in the high-visibility taping on the back. This way, if you come across someone in the dark and see the X, you know that their back is to you and they may not see you. Thus, you will proceed with more caution. This seems like such a simple concept, but it’s one that was not currently utilized on the slope until we introduced Big Bill. All the end users and safety engineers agree that, as simple as this is, it is an idea that can save lives. POWER IN NOT KNOWING: I was told that there was no way I could break in to the FRC market because I didn’t know enough about safety. The truth is that you don’t have to know everything. You have to listen to your customers, surround yourself with manufacturers and vendors you trust, be willing to be honest that you don’t know when you don’t know, and then find out the answers! If your clients feel like you care about their needs, you listen to them, and you are willing to go that extra step to help overcome the challenges, they will give you the time to learn.  www.akbizmag.com

ICONIC ALASKANS

Henry Springer © Chris Arend Photography

Henry Springer with a few of his collected birds.

Bound to bridges and birds By Shehla Anjum

t was the books with the Wild West adventures of Apache chief Winnetou that inspired Heinrich “Henry” Springer as a schoolboy in Germany. They became a prelude to his life in Alaska, his home since 1960. German writer Karl May, who wrote those books and never set foot in the American West, created Winnetou, his German sidekick Old Shatterhand, and the places where they roamed. May only made it to the United States a few years before he died. Springer made it twice. First as a high school exchange student in Pennsylvania. Then returning, at age twenty-three in 1959, as an immigrant, and moving to the wilds of Alaska a few months later. He never left. Springer is known as an engineer, scientist, artist, carver, hunter, birder, taxidermist, and a one-term legislator—to which 10

he said "enough." His adventures took him around Alaska and, later, the world. Alaska’s engineering and construction industry knows him for his work on bridges and other projects; the state’s science community knows him for his study of birds and his collection of six thousand specimens. Springer excelled both in his engineering career and in his scientific studies and collections of birds and received accolades in both worlds. One that gladdens him was the 2008 dedication of Henry Springer Ornithology Laboratory at the Museum of the North at the University of Alaska Fairbanks. The plaque for the laboratory acknowledges how Springer’s “generous contributions of bird specimens, knowledge, and expertise… greatly advanced the field of ornithology in Alaska.”

Alaska Business Monthly | February 2014

Imagining America Springer, now seventy-seven, grew up in Donauwörth, a small manufacturing town in southern Germany, where factories churned out war equipment for Hitler’s army. His father, a professional soldier, served in that army and spent most of the war on the Russian front, visiting his family only twice during the six years of World War II. Life was tough during the war and for years afterward. With few toys and other distractions, children either read or played outdoors. “We became fascinated with nature and wildlife. All of us had birds as pets. We went looking for frogs and collected beetles and butterflies,” Springer says. That fascination with the outdoors and the books of Karl May ingrained a love of science in Springer and a dewww.akbizmag.com

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Corporate Council on the Environment Carl Johnson/CarlJohnsonphoto.Com

sire to see the country that epitomized wilderness to him. “I had an interest in biology since I was a child and I wanted to see America. I imagined America as a huge wilderness where bears and wolves roamed.” Springer got his chance in 1953. A few months after his high school graduation he set sail to spend a year in Pennsylvania under the Fulbright High School Exchange Program for German youths. Springer enrolled as a senior in high school and lived with a farm family near a small town. “I liked Pennsylvania. The people were free and had few social barriers between them. I decided that after college I would move to the United States,” he says. The Fulbright program required that he return home after a year. Springer went back, studied civil engineering at Munich State College, and received his degree in 1959. A methodical person, Springer researches his options and the possible outcomes carefully. He found out that civil engineers were in demand in the United States and on the critical occupations list for immigration. He applied for the visa during his last year in college. He graduated in February 1959 and boarded a boat to New York in November. The Springers, understandably, did not want their only son to leave. His father “didn’t understand America and couldn’t understand why I liked America or wanted to go there,” Springer says. “When I turned twenty-one, I told my Dad he had nothing to say anymore because I was the master of my destiny.” His father accepted his decision and eventually visited his son in Alaska. His mother tried a different ploy to keep him home. “I had to fight off girls because my mother figured that marriage was the best way to hold me. I really pitied those girls because they were set up and didn’t know it.” The US draft was in effect, however, and Springer’s visa required that he report to the draft board within fortyeight hours of arrival. Ever the planner, Springer immediately researched service options. He found that if he enlisted for three rather than the two years of draft he could choose the branch he wanted and become a citizen at the end of the service.

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February 2014 | Alaska Business Monthly

“I signed up for three years with the Army Engineers, asked for an assignment in Europe and hoped it would be Germany.” It was not to be. “The choices included Greenland, Alaska, and the Pacific.” Neither Greenland nor the Pacific interested him. And Alaska? “I knew nothing about it, except for Alaska Ice Cream, the first in Germany with a stick.” He decided to read up. “It was fascinating. I immediately liked the idea of going there.” Alaska’s interesting bird life, the Bering Sea, and its “pioneer-status” figured into the decision. Pennsylvania had seemed wild when he lived there. “But flying from Anchorage to Fairbanks to start my job with the Corps of Engineers, I realized Pennsylvania wasn’t that wild. I saw huge forests, swamps, and mountains; no roads, no towns, no smoke. I thought Alaska was just paradise,” he says. Alaska claimed Springer and held him. He worked for the Corps on road and bridge projects and also began his research on birds for the University of Alaska Fairbanks, which is continuing.

Building Bridges After three years with the Corps, he got his citizenship in 1964, and within a few months a job offer came from the Alaska Department of Highways, later the Department of Transportation and Public Facilities, or DOT. He mulled over the offer and accepted it. “I saw the highway department job as an amazing opportunity to work in a new state in a new department.” He also figured he could have a good career, unlike Germany where civil servants usually waited for someone’s death to get promoted. His DOT career was, by all account, successful. He liked construction and as a project engineer worked on the state’s more challenging bridges. “I found the job of building bridges fascinating. Alaska’s climate—geology, a river’s flows, ice—made each bridge an individual challenge. There is no script,” he says. From 1963 on, Springer managed bridge projects including those spanning Nenana Canyon and Hurricane Gulch on the Parks Highway. The Hurricane Gulch, the last link that connected the Parks Highway, was 12

Henry Springer shows off specimens in his butterfly and bug collection.

a complicated project and Springer did a fine job, says Bruce Campbell, former highways commissioner. Campbell says Springer was a good choice to manage complicated bridges. “His analytical mind and ability to find innovative solutions to complex problems were useful.” During the construction of the oil pipeline from Prudhoe, the state put Springer in charge of supervising the pipe haul and pipe distribution. Riley Snell, then a regional director for DOT, also praises Springer. “Henry

Alaska Business Monthly | February 2014

did tremendous work on many of our bridges and infrastructure that we all take for granted.” Snell is also impressed with another facet of Springer’s personality. “Henry works hard and he plays hard. He was always the life of the party and organized many barbeques for the crews and contractors on his projects.” Hard play sometimes landed Springer in trouble. In one memorable story from the Hurricane Bridge project, Springer made a bet with a DOT employee who www.akbizmag.com

had a motorcycle. “I teased him that he couldn’t ride his bike through the multiplate culvert, which was about ten-foot high and eight-foot wide. “I knew that at the end of culvert there was an eight-foot drop into a pool,” Springer says. The motorcycle went through. Springer, not to be outdone, decided to try the stunt—in his official Ford F150 truck. “I was ten sheets to the wind, nothing scared me.” The truck ended at the bottom of the pool. It cost Springer a lot to have the truck retrieved. And he earned a stern reprimand.

Life in Nome In 1975 Springer headed to Nome as transportation director of the western region and stayed there for fifteen years. Asked about his accomplishments in Nome, Springer laughs it off. “It depends on who you ask. But I have a good police blotter. It is what it is,” Springer says. Police blotter or not, Springer worked hard. He put together the region’s first ten-year capital plan that ensured villages understood the sequence of capital projects. He modernized many airstrips with

lighting and constructed longer runways that allowed large planes to bring in bulk goods. He improved roads and installed culverts and drainage systems. Robert Fagerstrom, former president of the Sitnasuak Native Corporation, commends Springer’s work in Nome. “He did a great job up here. He has charisma and, of the many people who come to Nome for work, I think he made the fastest transition and understood the Native way of life.” He read the pulse of the community correctly, says Fagerstrom. Nome gave Springer an opportunity to continue his bird studies and collections. “I was in charge of sixty airports in the region. I stumbled around airports in daytime and in the evening I went bird watching.” Dan Gibson, retired bird collection manager at UAF, knows about Springer’s bird collection and his work in Nome. “Henry was a big help to us; when he lived in Nome he collected and prepared a series of McKay’s Buntings and Aleutian Terns for our collections.” Springer’s series helped UAF scientists understand both birds. But they

especially appreciated the McKay’s Bunting, a rare species with a small population that breeds on only two islands in the Bering Sea.

Leading the Way In 1986 he took early retirement and on the urging of the local businessmen, mostly Republicans, he ran for the Alaska House of Representatives. He used his analytical skills. “I was very scientific. I figured out the statistics—gender, age groups, and voting records.” He realized the chances of winning on a Republican ticket were nil in a heavily Democrat district. So he ran as a Democrat. He called himself “Ookpik,” or snowy owl, used his extensive contacts, and visited 85 percent of the households in the district. And he won. In Juneau, from 1987 to 1989, Springer hated the atmosphere. “Three-quarters of what happened in Juneau went against my grain—the backstabbing, the phoniness, and not being forward and honest, it just ate at me.” He left after one term. “I had better things to do in my life.”

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February 2014 | Alaska Business Monthly

Henry Springer in his home ofﬁ ce.

His farewell speech became famous. “I told them I introduced no bills or offered any amendments. I just gave my expertise in the committees. But that was not all bad. I kept my breath fresh because I didn’t have to kiss anybody’s ass.” Springer then had two more jobs, both in the private sector. He served as executive director of Associated General Contractors from 1990 to 2000 and helped modernize the organization. He worked closely with the AGC executive committee to streamline the organization, reducing its board of directors by 50 percent and reaching out to specialty and subcontractors. “We increased our membership by 40 percent.” He began advocating for vocational education in the state. He realized this was not getting enough attention. “I made a real effort to work with educators and union representatives to expand career centers in Anchorage, Fairbanks, and Seward.” As a result the AGC set up the Education Trust Fund, which matches employers’ contributions with that from employees. Springer would like to see vocational education getting the same attention that it does in Germany, where it is the backbone of the educational system. The AGC board named Springer as one of its “hard-hats” for his service. “It is a recognition of service to the 14

construction industry and is quite an honor,” Springer says. His last job before retiring again in 2007 was as executive director of the Knik Arm Bridge and Toll Authority (KABATA). He fully supports the crossing and believes it will be built. The five years at KABATA too held many challenges. One dealt with the designation of Cook Inlet as a critical habitat for beluga whales that were declared endangered. Mary Ann Pease, who worked on public outreach for KABATA, says Springer used his problem solving skills to get the project moving when it had come to a standstill. “Henry got the different experts and decision makers together and persuaded them to take a scientific approach by looking at salmon migration and what had happened since the Native hunt of the belugas stopped.” He convinced federal agencies that by limiting the construction season, using observers, and other accommodations the bridge could be constructed without impacting the whales, Pease says. Springer maintains his optimism for the bridge. While still at KABATA he proposed a “public-private partnership,” or P3, to fund it. Under P3 private investors would pay for construction and operation. Tolls would pay off the loan and the capital investment. It was the first such proposal for Alaska, Pease says.

Alaska Business Monthly | February 2014

Sui Generis Nowadays Springer devotes his time to his collected birds, books, insects, and butterflies in his house that resembles a natural history museum. He continues to carve and paint, draw, and stuff birds. And he tends to his collection of six thousand birds, 80 percent of which he collected, prepared, and mounted himself. He also takes care of hundreds of preserved animal specimens, thirty thousand insects and butterflies. His library contains eighteen thousand books, mostly scientific. The vast collection spills into an adjacent house. His house also contains trophies from hunts in Mongolia, Kazakhstan, Kyrgyzstan, Africa, Australia, and Siberia. But Springer quickly corrects a misconception. “I am not a big game hunter. Hunts were a way to get into places to collect birds.” Throughout his career, Springer also found time to serve on several boards and commissions, both local and state. Those included serving as a commissioner on the Denali and the Anchorage Port Commissions. He chaired the state’s Board of Game. And while in Nome he sat on the Nome Utility Board. For Springer, the engineering was just a job. “It was something that I did and got paid for. Serving on those boards and commissions was my true service to Alaska,” he says. He is also happy to bequeath his bird collection to UAF, which will receive two-thirds, or about four thousand, of his birds. “I am proud that my work will help future generations of students and scholars.” His friends admire the multi-talented Springer with awe. “Henry is one of a kind, they broke the mold,” Campbell says. Gibson seconds that opinion, “Henry is unlike anyone I have ever met. He is sui generis in the original sense of the word. He is not just a unique person, or a unique species. He is a unique genus—a very special person.” Springer delights in his life. “I have no regrets. I don’t look back on my decisions.”  Shehla Anjum is an Anchoragebased writer. www.akbizmag.com

special section

Architects & Engineers

Logo and art elements courtesy of DiscoverE.org

ÂŠLisa Abitbol ÂŠLisa Abitbol/Drawing Hannah Burr for DiscoverE

special section

Architects & Engineers

Engineer of the Year Nominees Compiled by Colin Maynard, PE

Jeanne Bowie

Allan Lucht Jesse Gobeli

Peter Hildre

Jeanne Bowie, PE Nominated by the Institute of Transportation Engineers

eanne Bowie is a Senior Transportation Engineer with Kinney Engineering, LLC. She holds a Bachelor of Science in Physics from the University of Maryland College Park, a Master of Science in Civil Engineering from Brigham Young University, and a Doctorate in Civil Engineering from the University of Central Florida. She is licensed as a Professional Engineer in both Florida and Alaska and is certified as a Professional 18

Jennifer Brock

Bill Barron

Traffic Operations Engineer. Bowie’s project experience is primarily in the area of transportation operations and safety, and her research interests span a range of topics from developing new weigh-in-motion technology to studying drivers’ perceptions of roadside signs. Bowie has been an active participant in Institute of Transportation Engineers since 2001, serving in multiple capacities in the student chapters at both Brigham Young University and at University of Central Florida, serving as communications chair and then treasurer of the Central Florida

Chapter, and also participating on the Pedestrian-Bicycle Committee of the Anchorage Chapter. Bowie has also been an active member of American Society of Professional Engineers and is currently serving as the Anchorage Chapter Director. She is also a member of American Society of Civil Engineers. Bowie’s community service contributions include numerous presentations to elementary school students to encourage their interest in math, science, and engineering, as well as involvement in her children’s schools, teams, and clubs.

Alaska Business Monthly | February 2014

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Jesse Gobeli, PE Nominated by the Structural Engineers Association of Alaska

esse Gobeli is a licensed Civil and Structural Engineer in Alaska. He has a Bachelor of Science in Structural Engineering from the University of California, San Diego. Gobeli has nineteen years of experience on civil and structural engineering projects. He began his career with the US Navy Civil Engineer Corps, where his assignments included managing construction and renovation projects at communication facilities in Iceland and managing Navy Seabees working on military construction projects across Hawaii. Gobeli then worked in central Ohio, where he designed commercial and industrial buildings throughout the United States. He later worked as a structural engineer for the US Army Corps of Engineers-Alaska District before joining PND Engineers, Inc. in 2004. Gobeliâ&#x20AC;&#x2122;s experience includes building designs using structural steel, cold-

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formed steel framing, cast-in-place, precast and post-tensioned concrete, masonry, and wood. He has designed buildings and bridges throughout Alaska. Gobeli has also completed structural assessments of existing buildings in Southcentral, Western, and Northwest Alaska. He has designed structural retrofits for buildings found to be deficient to resist seismic and heavy snow loads common to many areas in Alaska. Gobeli is also a licensed Structural Engineer in California, Washington, Nevada, and Illinois and is active in the Structural Engineerâ&#x20AC;&#x2122;s Association of Alaska. He is a principal at PND. As president of the Structural Engineers Association of Alaska, Gobeli was instrumental in facilitating a collaborative effort with the University of Alaska Anchorage to develop much-needed snow design data for use in the State of Alaska. The research project, which is funded jointly by Structural Engineers Association of Alaska and interested donors, is expected to yield a ground

snow load map of the state, which will allow engineers and architects to better anticipate conditions local to a given project site.

Allan Lucht Nominated by the Society of American Military Engineers

llan Lucht is Deputy Director, 673rd Civil Engineer Group at Joint Base Elmendorf-Richardson, Alaska. The 673rd Civil Engineer Group is responsible for the construction, maintenance, repair, and natural and built asset management of the $15 billion infrastructure on eighty-four thousand acres and the readiness, emergency management, fire protection, and explosive ordnance disposal for more than sixteen thousand assigned military personnel, supporting three Air Force wings and two Army brigades. Lucht began his federal civilian career in August 1984 as a Civil Engi-

February 2014 | Alaska Business Monthly

neer Intern with the Directorate of Engineering and Housing at Fort Eustis, Virginia. In 1986 he transferred to Worms, Germany, as an engineer program manager, not knowing at the time the three-year tour would extend into eighteen years in Germany with follow-on assignments in Hanau and Grafenwoehr where, as Engineering Chief, he supervised planning, design, and project management of nearly $2 billion in construction. As engineer in charge, he lead organization of the Grafenwoehr Garrison, Corps of Engineers-Europe, and German Federal Construction Office-Bavaria to undertake “Efficient Basing-Grafenwoehr,” a $1 billion, five-year design-construction project to expand Grafenwoehr to consolidate an Army brigade from other installations in Germany. In 2004 he transferred to Fort Richardson as Director of Public Works to plan facilities to establish both 4/25 Airborne Brigade Combat Team and the 2nd Engineer Brigade, which more than doubled the population on Fort Richardson. He led integration of the Fort Richardson Directorate of Public Works and Elmendorf AFB 3rd Civil Engineer Squadron to form the 673rd Civil Engineer Group as part of Joint Base Elmendorf Richardson. He is a member and board member of Society of American Military Engineers. Lucht is a graduate of North Dakota State University (Construction Engineering) and is a licensed Professional Engineer in the State of North Carolina.

Peter Hildre, PE Nominated by the American Society of Civil Engineers

eter Hildre was born and raised in Juneau. He graduated from Juneau-Douglas High School in 1965. He earned a Bachelor of Science in Civil Engineering from Oregon State University in 1970 and a master’s degree in Engineering Science and Management from the University of Alaska Juneau in 1981. Hildre began his engineering career with Alaska Department of Transportation & Public Facilities (DOT&PF) in Juneau in 1970. In 1982, he joined Toner-Nordling & Associates where he was a Senior Engineer from 1982 to 20

Alaska Business Monthly | February 2014

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2007 and Principal from 1984 to 2007. In 2007, Toner-Nordling & Associates joined with DOWL HKM. With DOWL HKM, Hildre has been Manager of Civil Engineering in Juneau from 2007 through 2013. Hildre retired at the end of 2013 having served the community of Juneau and the rest of Southeast Alaska for forty-three years. In the 1970s, he was the Project Engineer for DOT&PF on the Egan Expressway project. While with DOT&PF, he also worked on traffic and lighting design, ROW, supervised the materials lab in Anchorage, and worked on other construction jobs utilizing main frame and Wang computers. One of the most challenging projects of Hildre’s career was Juneau’s downtown street reconstruction project, a renovation of Front, Seward, and South Franklin Streets in the mid-1980s. This major design and reconstruction had a construction cost of about $1.1 million—that’s about $2.3 million in today’s dollars and a sizeable chunk of change for a City and Borough of Juneau project. Front Street construction was started in ear-

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ly March 1985 and repaved by July 2 of that same year. In 2013, Hildre was the designer for several City and Borough of Juneau projects including Meander Way Reconstruction, Lemon Creek Road Reconstruction, Mendenhall Valley Snow Removal Site, and Third Street Reconstruction, totaling over $2.1 million in estimated construction costs. He also worked on designs for the City and Borough of Sitka, including Baranof Street reconstruction and utility improvements, Sitka Seawalk improvements, and road reconstruction near Sitka’s US Coast Guard Housing facilities.

Jennifer Brock, PhD Nominated by the Society of Women Engineers

r. Jennifer Brock is currently an Associate Professor of Mechanical Engineering at the University of Alaska Anchorage (UAA). She moved to Alaska from her native Ohio to take a position in UAA’s rapidly-expanding Mechanical Engi-

neering program when she finished her PhD in 2009. Brock’s favorite part of being an engineer is the opportunity to work on a broad range of projects. Since coming to Alaska, this has included investigations into the biomechanics of minor head trauma. This work, which she pursues with colleagues Drs. Anthony Paris and John Lund, was selected in 2012 to be part of UAA’s “Amazing Stories” campaign and resulted in a commercial that still appears on local TV. They have worked with a total of eight undergraduate research assistants on this project, six of whom have received undergraduate research funding, six of whom are listed as coauthors on papers, and three of whom have traveled to present their work at conferences. Brock’s favorite part of being a college professor is coming up with new ways to make course materials clear (and hopefully inspiring) to students. She was awarded the UAA Chancellor’s Award for Excellence in Teaching in 2011. She has aided a thorough overhaul of UAA’s mechanical engineering cur-

February 2014 | Alaska Business Monthly

riculum, as well as the establishment of its new Master’s program (which recently accepted its first students to begin in spring 2014), and led the implementation of a new protocol for assessing student achievement of learning outcomes. She serves as the faculty advisor for the UAA student chapter of Society of Women Engineers.

A vision for AlAskA for over 60 yeArs

Bill Barron Nominated by the Society of Petroleum Engineers

The new Dena’ina Wellness Center in Kenai, Alaska. Scheduled for completion summer 2014.

architectsalaska.com | 907.272.3567

ill Barron is the Director of the Division of Oil and Gas within the Department of Natural Resources for the State of Alaska. He entered into this public service role in 2011 after over thirty-five years of experience working in the private sector. Previously, Barron was a senior executive for the Energy and Chemical business group of CH2M Hill with responsibilities covering all of Alaska and expanding operations in Montana. Prior to working with CH2M Hill, he was a manager and engineer with Marathon Oil. His experience covers all aspects of the oil and gas industry including domestic and international locations with a strong focus on operations and reservoir engineering. He has been working Alaska oil and gas projects for more than twenty years. He currently serves on the Petroleum Engineering Industry Advisor Board for the University of Alaska Fairbanks, and is the chair for the Public Lands Committee of Interstate Oil and Gas Compact Commission. He holds a Bachelor of Petroleum Engineering from the University of Texas and has been a member of Society of Professional Engineers since 1977. He has served on several boards including the Eagle River Nature Center, the Industry Support Alliance, the Alaska Process Industry Careers Consortium, and the Great Alaska Council Boy Scouts of America. He co-holds three US patents and has authored several technical articles. He and his wife Jan are the proud parents of two young men. They also enjoy skiing and are both competitive triathletes.  Colin Maynard, PE, was selected Engineer of the Year in 2013.

Alaska Business Monthly | February 2014

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“Good move? I’d say it’s a great move.” People who know, know BDO.SM

Mikunda, Cottrell & Co. joins BDO Alaska’s largest CPA firm has combined its dedicated professionals and staff with the global resources of BDO USA. With local Alaska knowledge and resources around the world, we look forward to continuing to deliver exceptional service to the people and businesses of Alaska. Jim Hasle, Assurance Office Managing Partner 907.770.2275 jhasle@bdo.com BDO 3601 C Street, Suite 600, Anchorage, AK 99503 907.278.8878 Accountants and Consultants © 2013 BDO USA, LLP. All rights reserved.

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Kevin Van Nortwick, Tax Office Managing Partner 907.770.2221 kvannortwick@bdo.com

special section

Architects & Engineers

Sustainable Arctic Construction: Challenges Inspire Creativity Re-purposing a reindeer facility into a new necropsy lab in Nome By Nichelle Seely

Photos © Nichelle Seely

Above: The view of Norton Sound from the UAF Northwest Campus in Nome. Right: Entrance to the Science Building undergoing remodeling and repurposing.

’m crouched under a building, trying to sketch the location of water and wastewater lines as the winds rattles the paper in my hands and snow skitters around me. Using a pencil is clumsy with gloves, but the day is too cold not to wear them. A few yards away the waves in Norton Sound pound on the seawall—the beach is completely submerged beneath the storm surge. I’m in Nome, on the Northwest extension campus for the University of Alaska Fairbanks, where we are preparing to turn the tiny outdated science building into a cutting-edge necropsy lab, where classes of future scientists can be taught in the same space that necessary research will be carried out by the University staff and government scientists.

A Need, an Idea, and Money The project began, as it always does, with a need, an idea, and a grant of money. As we all know, federal funding is tight, but the grant writers of UAF rise to the challenge. As usual, there’s strings attached to the capital: we can’t 24

Alaska Business Monthly | February 2014

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Design for Everyone

Architecture • Planning • Roof Technology

Alaska Business Monthly | February 2014

expand the footprint of the existing building, we can’t tear it down and build a new one, we can only modify what’s already here. What’s here is a one-story weatherbeaten structure measuring twenty-five by forty feet—it looks like a little house. The building sits on a post-and-pad foundation, with individual “feet” that rest directly on the gravel. The northwest corner is visibly sunken. The paint is worn, and the mechanical hoods are rusted out. This petite edifice is one of a collection of small buildings that make up the UAF Northwest Campus. BDS Architects and our consulting engineers have been gradually helping the University in fixing them up as time and money become available. Most recently, we’ve converted the library into a distance learning and testing center. Before that, we put new roofs on three of the buildings, and before that, new foundations. We’ve connected all the buildings with a boardwalk and made interior improvements. The piecemeal upgrades are gradually changing the face of the campus, making it more relevant, high-tech, and better able to serve the needs of the users. This latest project is the most challenging one yet. Historically, the building we are about to remodel has been used to teach anatomy and reindeer husbandry. Inside, there’s a hodgepodge of equipment and shelving, anatomical charts, and even a teaching skeleton. The finishes are worn and need replaced—unfortunately, there’s always the question of hazardous material, asbestos, and lead embedded in the building materials. We’ll have to include a report with the bid documents to make sure potential contractors are aware. BDS has been instructed to re-design the space to accommodate the dual purposes of teaching and research. After many hours of meetings and consultation with university staff, facility managers, and laboratory experts, we’ve managed to cram in a fume hood for work with toxic chemicals; a drying oven to prepare tissue samples; freezers and refrigerators to store them; incubators to grow and maintain cultures; and an autoclave to sterilize equipment. The entire perimeter of the building is filled with equipment and cabinetry. The idea www.akbizmag.com

Exterior shot of the Science Building on the UAF Northwest Campus in Nome.

is that analysis of marine and bird life can be carried out right here in Nome, without needing to send specimens back to Fairbanks or elsewhere. And that’s not all. The design calls for student tables, enough for twenty seats. There’s also a necropsy table where a seal or a caribou or part of a walrus can be laid out and cut up. A microphone and camera are suspended overhead, so the dissection being done can be recorded for future review or broadcast live as part of the distance learning program.

Consulting with Researchers It’s exciting stuff—under the directorship of Bob Metcalf and with the aid of the mothership in Fairbanks, the little UAF Nome campus is leaping into the 21st century. It doesn’t hurt that there’s a brand new modern hospital in Nome and a need for trained medical staff. Some of the locals have already jumped in, and the campus recently graduated its first medical assistants. Other organizations are taking notice and are deeply interested in what is happening in this frozen corner of the world. Local government agencies such

as US Fish and Wildlife see opportunities to carry out their own research now that there’s going to be a lab to do it in. The recent avian deaths on Savoonga are an example. Gay Sheffield, the biologist who took charge of the dead bird samples sent in by residents, is one of the researchers consulted by the BDS design team. In fact, it was during a meeting with Sheffield and other researchers that another question came up: could the lab

be modified to accommodate another user group, namely the Korean Polar Research Institute (KOPRI)? South Korea became a permanent observer on the Arctic Council this year. They are serious about their position, desiring to become a leader in Arctic research. They own an icebreaker, the Araon, which was launched in 2010. The ship is outfitted as a research vessel to study geophysics, biology, and oceanography and has been active in

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Weathered Science Building prior to renovations in Nome. © Nichelle Seely

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Antarctica as well as the Bering Sea and Norton Sound. It would be to their advantage to have a place in Nome where they could do occasional work. Needless to say, I was fascinated. Imagine our little lab project becoming part of an international scientific effort—if only it were bigger, or if we were allowed to make it so. Practical questions soon arose—Korea uses a different electrical standard than the United States. We would need to incorporate adapters for their equipment. And what was their equipment likely to be? No one knew for sure, although educated guesses could be advanced. How could their needs be incorporated with the needs of the University? The KOPRI funding was on a different cycle, and no one knew if or how much monetary support the organization could or would provide to help. Maybe they could provide a mobile modular lab unit that could be carried on the icebreaker and staged in the parking lot behind the lab, then simply “plugged in” to the utility services. Without more information, we simply couldn’t make plans, and the lab project was already underway, with deadlines imposed by the

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grant. As much as we would have liked to accommodate KOPRI, as exciting as the potential collaboration was, the design team and University couldn’t delay without risking the original funding. The discussion around the South Koreans sparked all kinds of other practical queries. How do we keep chemical spills and decayed animal tissue out of the city wastewater system? How do we accommodate the ventilation needs of a small space where extreme odors from specimens and chemical agents would need to be evacuated? We specified special traps on the sinks which could be emptied and cleaned before any questionable material went into the city system. An emergency shower would protect human occupants from accidental splashes. We designed a mechanical mezzanine over the lab, raising the roof to accommodate the massive ventilation units. In addition, BDS worked to overhaul the building envelope. The thirty-yearold wood frame walls and roof simply weren’t enough to provide the kind of thermal efficiency we needed. The grant restrictions prevented us from simply tearing them down and building new

ones, so BDS utilized the same strategy we had used on the library retrofit. We designed an outside “jacket,” essentially an additional framed wall clamped around the existing building, filled with foam insulation and covered with new siding to match other campus buildings. We did the same for the roof, increasing the R-value to meet the exacting standards of UAF and stand against the bitter temperatures of a winter in Nome. Challenges inspire creativity: with many stops and starts and much thought and discussion, despite all the obstacles, the team of architects, engineers, researchers, and University staff crafted a building solution to meet most (if not all) of the projected needs. Now we’re in the production phase, drawing up plans and writing specifications in preparation for the day this project goes out for bid, and the UAF Northwest Campus gets a research lab which world players are already eyeing to use.  Anchorage-based Architect Nichelle Seely writes from across Alaska.

February 2014 | Alaska Business Monthly

special section

Architects & Engineers

Arctic Construction Masterpiece:

Barrow Hospital

During a snow storm, a snowmachiner whips by the new Samuel Simmonds Memorial Hospital. Photos © Dimitra Lavrakas

Bright light on the tundra took decades-long planning to bring crucial new services By Dimitra Lavrakas

t was an interview typical of Alaska: a busy executive, skilled in subsistence methods, instructing two young hunters on how to cut up a reindeer. No, not a caribou, a reindeer, a remnant of the old herds. Its two skinned legs lay on the table, and next to them sat Marie Carroll, taking time to talk about the evolution of the new Samuel Simmonds Hospital from a need to reality. “Where do I begin,” says Carroll, president and CEO of the Arctic Slope Native Association (ASNA) and the Samuel Simmonds Hospital. “The preparation began in the late ‘80s, when some leaders from the villages and Barrow talked about having a new hospital. What we had was so small. It was the size of a clinic and served the entire North Slope. It was like a cubbyhole of people and then add patients to that—it was really tight.” The North Slope Borough has six villages and the city of Barrow, with populations ranging in size from a few hundred to Barrow’s 4,400. 30

The reception desk is backlit by a multicolored glass wall that is reminiscent of the Northern Lights.

Light streams into the atrium of the new hospital through fl oor-to-ceiling and clerestory windows spreading light even on an overcast, snowy day.

Alaska Business Monthly | February 2014

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BusinessPROFILE

Committed to its clients, staff and community 276-person barracks designed by Design Alaska

stablished in 1957, Design Alaska is the largest full-service architectural and engineering firm in Interior Alaska. Being a onestop shop is central to the company’s competitive advantage, along with its arctic and subarctic design expertise. The Fairbanks firm has all the disciplines available to design most projects in-house, including registered professionals in architecture; civil, structural, mechanical, fire protection, electrical, and environmental engineering; landscape architecture; and surveying. This translates into a competitive edge on the cost and time to complete projects. “We work on many design-build projects, and the full-service nature of our organization is attractive to contractors,” says Vice President Jeff Putnam. “Our regular design clients also find this to be valuable.” The firm also offers planning, Leadership in Energy and Environmental Design (LEED) accredited professional, commissioning, construction administration, and materials testing services. Design Alaska has continued to thrive by constantly enhancing its services and being willing to work on a variety of projects. The firm has added LEED design and energy modeling/auditing, which are important to designing sustainable buildings and reducing operating costs. They have experience working nearly everywhere in Alaska, including the North Slope, west coast, Aleutian chain, Interior, and Mat-Su/ Anchorage areas.

“The secret to our success has been focusing on client needs, supporting our employees in their professional and personal needs, and strengthening the community through financial and volunteer support,” Putnam says. An avid champion of the arts, Design Alaska supports many local events, including the Design Alaska Holiday Concert, Fairbanks Summer Arts Festival, Opera Fairbanks, and Design Alaska Wild Arts Walk, as well as Fairbanks’ public radio station KUAC. Last year, Design Alaska helped KUAC raise an unprecedented $62,000 in a single hour during their fall fundraiser. Design Alaska has received numerous awards, including an honor award in the civic buildings category from the Design-Build Institute of America in 2012 for a 276-person barracks project at Ft. Wainwright. The fasttrack, design-build effort achieved a LEED Gold certification. In 2010, Design Alaska garnered the Institute of Electrical and Electronics Engineers’ outstanding support to the engineering community award at the Alaska and the Northwestern Region levels, beating out larger organizations like Google. Current Design Alaska projects include a first-ever, public/private partnership to design and construct a dining hall addition on the University Alaska Fairbanks campus, working with Stanley Consultants to evaluate potential replacement options for –

P A I D

A D V E R T I S E M E N T

–

©Ken Graham Photography

Design Alaska

UAF’s coal-fired heat and power plant, and an alcohol treatment facility in Bethel, Alaska. Recently, the firm provided mechanical engineering on the 100,000-square-foot Chief Andrew Isaac Health Center and completed a comprehensive renovation of UAF’s hockey locker rooms at the Carlson Center. “The locker room project turned out incredible and is a real tribute to the quality of that program,” Putnam says. During 2014, Design Alaska will usher in a new president, Chris Miller, who is currently vice president and head of mechanical engineering. However, the firm’s commitment to its clients and employees remains the same. “We believe Alaska is a great place to live and work, and we’ll continue to foster an environment where our employees can have a rewarding professional experience,” Putnam says.

Jeff Putnam, PE, PMP Vice President 601 College Rd. Fairbanks, Alaska 99701 Phone: 907-452-1241 Fax: 907-456-6883 designalaska.com

The aurora glass walls in the dental suite echoes the theme from the reception desk. © Dimitra Lavrakas

Alaska Business Monthly | February 2014

The old hospital was built in 1964, and was 2x4 construction. “That’s what we build our sheds with,” Carroll says. With funding based on its square footage, monetary support was limited, Carroll says. “The population grew, but we didn’t,” she says. “So with a bigger building, we’ll get more funding.” The new hospital is four times the size of the old one, and the staff is doubled. The hospital was a competitively bid, joint venture project between UIC Construction, LLC, a subsidiary of Ukpeaġvik Iñupiat Corporation, Barrow’s Native village corporation, and SKW/Eskimos Inc., a subsidiary of the borough’s Native regional corporation, Arctic Slope Regional Corporation. The $160 million hospital is a one hundred thousand square-foot, twostory, steel-framed building with a steel pile foundation and is fully sprinklered. Delivery of material out of Seattle was handled by another UIC subsidiary, Bowhead Transport Co., LLC, and included multiple-year shipments of building materials from Seattle to the Barrow construction site.

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The project is a leading example of how Native and village corporations’ diversification leads to partnerships that win bids, employs locals, and improve the quality of life in the community. Its namesake, Samuel Simmonds, was one of the founders of ASNA, a Presbyterian minister and ivory carver who specialized in carvings depicting daily life. He was also a reindeer herder early in his life and once recalled, “I rode about on a reindeer just like Santa Claus.”

Wrapped up in Red Tape “When I came on board in 1999, there was a ton of federal paperwork you have to go through to even get on the facility list for consideration,” Carroll says. She credits the late Joe Upickson, along with Herman Kigniak, Bernice Kayluk, Eben Hopson Jr., June Childress, Ida Angasan, and Carolyn Cannon for being the driving forces behind the project. “They had a board retreat, literally on my first day on the job,” she says. “And the number one priority was to build a new hospital—but how to start?” The hospital landed last on the Indian Health Service’s (IHS) list behind a huge $225 million project in Phoenix, Arizona, serving the Four Corners area that includes members of the Navajo, Jicarilla Apache, Southern Ute, Ute Mountain Ute, and Hopi tribes. “Because they had different tribes and couldn’t agree on the project, we moved up to first,” Carroll says. Senator Ted Stevens was instrumental getting money through the Denali Commission. “Part of the $15 million from the Denali Commission went to purchase the land, site preparation, and the foundation,” she says. “Then how do we get money out of IHS again? It was really tough.” Nationwide economic troubles had an effect too. “And then the economy crashed in the last year of funding, and we needed $60 million and the economy tanked,” she says. “I really have to give credit to [Senator] Lisa Murkowski and her staff and Senator Jack Reed [D, Rhode Island]. [Health and Human Services Secretary Kathleen] Sebelius came up too.” Former North Slope Mayor Edward Itta, the North Slope Borough Assembly, and Senator Mark Begich also came through with some money. And recently, Rossman Peetook, former North Slope Borough assemblywww.akbizmag.com

man, succinctly recalled the long drive to build the hospital, “It wasn’t overnight work. I’m glad I could help.”

A Beautiful Structure Built to Last “RIM Architects was the building designer and Architect of Record,” says RIM Principal/Architect Matt Vogel, who worked on it along with Project Manager/Architect Trent Mullins and Designer Molly Logelin. “Our vision for the design came from the need to provide the very best health care that could be provided at any hos-

pital in the United States. We hired HDR out of Omaha, Nebraska, as the medical planning consultant for the interior medical design aspects.” RIM Architects and RIM First People were also hired to meet with the villages served by ASNA to gain a deeper understanding of the communities, their cultural traditions, and their expectations and perceptions of healthcare delivery, Vogel adds. “The report developed by RIM First People was used in conjunction with the approved Program of Requirements

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Yulista Management Services, Inc. • Y-Tech Services, Inc. • Yulista Aviation, Inc. Brice Companies • Tunista Services, LLC • Tunista, Inc. • Tunista Construction, LLC Yukon Equipment, Inc. • Brice Environmental • E3 Environmental • Futaris Sequestered Solutions • Chiulista Services, Inc. • Solstice Advertising Calista Real Estate • Calista Heritage Foundation Statistics from Alaska Business Monthly October 2012

February 2014 | Alaska Business Monthly

during the planning and design processes,” Vogel says. The building stands out like a beacon next to a lagoon on the tundra in Browerville, a Barrow suburb, and seems to ﬂoat at night with the glow from the colored lights that encircle it. “We designed this building to fit within the neighborhood, to be inviting so that people would feel that this hospital is a place that the families can feel good to go to for their continued preventative care,” Vogel says. “We wanted all the people of Barrow and the outlying villages to know that this facility would support their healthcare needs.” Elements of the Arctic’s natural world are reﬂected in the themed aurora-like glass panels that unify the interior design from the front reception desk to the standalone walls in the dental suite, which has expansive views out its windows. “The building is an open and well-lit structure to make all users of this facility feel warm and welcome,” Vogel says. “We wanted the healthcare providers and medical staff to feel comfortable in the new hospital, as employee retention was also an important factor. We used lots of color

But first, the board had and lighting to support the to prove to IHS that certain build environment throughservices and equipment out the winter and summer would be cost effective and months.” save lives. The design is as tough as “We had to do presentait is appealing to the eye. It took a couple of years just tions and present statistics that showed how much to get materials barged and moved to the site, highmoney would be saved and lighting the fact that this how many lives saved,” says building is a very long way Carroll. “If someone had a from a normal supply route, Marie Carroll stroke, and there are difso its construction had to be ferent kinds of strokes, and resistant to the harsh elements the hos- they are treated differently. We showed we pital would be exposed to over the years. could save a life here by not waiting two “This building was designed for at to three hours ‘til they got to Anchorage. least the next fift y years,” Vogel says. Everything we did had to be reviewed by “The building is a steel structure with a IHS, and meetings sometimes were tense. high-insulated envelope. We had to work out the differences.” But the ASNA board agreed on one “The rooﬂines were simple, making the roof structure easy to maintain thing—to offer primary care. “Our board was the major driver in and deal with wind and drifting snows. Many of the systems and products used delivering health care,” Carroll says. “At were designed for ease of maintenance night, we close the front door and keep the ER open.” due to the hospital’s remote location.” As a Joint Commission on AccreditaFirst Class Health Care tion of Healthcare Organizations facility, For the first time ever, Barrow has health the hospital ranks among the top hospicare services like a CT scan machine. tals nationwide in quality of service and

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Alaska Business Monthly | February 2014

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For the ﬁrst time, Barrow residents can have a computed tomography scan (CT scan).

high standards of patient safety. The hospital offers an outpatient unit providing emergency, clinic, and urgent care and an inpatient unit offering care for newborn through elderly patients, including low-risk obstetrical services; case management; specialty clinics offering access to specialists by referral; “Screening for Life” breast and cervical cancer screening program with a mammogram machine at the Wellness Center; diabetes education; physical therapy; dental services; a laboratory; pharmacy; radiology; and of course, the CT scan machine. The board also decided on a singleoccupancy room because it’s been shown that patients heal faster when they have a space to themselves without worrying about the other patient. It was a long haul, and many residents donated their time for many years to make sure excellent health care could be had locally. “I tried to lead as best I could,” says Carroll. “But a lot of credit goes to a lot of people.”  Dimitra Lavrakas writes from the East Coast and Alaska.

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February 2014 | Alaska Business Monthly

special section

Architects & Engineers

Building on the Shores of the Arctic Ocean

A crane rises over the entrance of the new ASRC hotel in Browerville, a suburb of Barrow.

Conexes and metal stack it up By Dimitra Lavrakas

ocals call it the “Lego hotel.” Jokes aside, it’s intrigued adults and delighted children to witness the stacking of conex boxes to build Arctic Slope Regional Corporation’s (ASRC) new hotel in Barrow. While ATCO trailers, similar to conexes, are not uncommon as hotel rooms along the Alaska Highway, a large assemblage of the corrugated weathering steel containers is an arresting sight in the Alaska Arctic. But their sturdy construction will help them stand up to the elements that will pound them from the Arctic Ocean only a few yards away. Malcolm McLean, founder of SeaLand Service, Inc., developed the modern intermodal shipping containers. Calling it Container Express, it was abbreviated to ConEx and eventually boiled down to conex. The invention allowed goods to be 36

moved safely and securely from ship to trail to truck, or the opposite direction. Transportation for construction materials was provided by a chartered barge from Bowhead Transport, a subsidiary of Ukpeaġvik Iñupiat Corporation (UIC). UIC is Barrow’s village corporation. The modules and other freight were barged from Anchorage to Barrow in early fall 2013. “This is not new construction for the Arctic,” says Ty Hardt, director of communications for ASRC. “Due to the limited construction season on the North Slope, we felt the modular construction was the best approach to get the hotel completed quickly and on budget. Other Alaskan hotels that have used modular construction are the Aurora in Deadhorse and Grand Aleutian in Dutch Harbor/Unalaska.”

Alaska Business Monthly | February 2014

Built on History The new hotel isn’t on just any patch of dirt—it’s near a very important site of Barrow history. Right across the street the iconic bowhead whalebone arch and skull, a weathered walrus skin umiaq, and the ice cellar sit on the shores of the Chukchi Sea, and all are part of the Top of the World tour. Here, in 1885, Charles Dewitt Brower, the first non-Native whaler, set up his business, the Cape Smythe Whaling and Trading Co. The whaling station is now a bustling construction headquarters, while his home next door sits vacant. The area around the whaling station eventually became known as Browerville, a suburb of Barrow. Brower’s descendants have been, or are, mayors of the North Slope Borough, whaling captains, magistrates, and artisans. www.akbizmag.com

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The historic whaling station and home of Charles Brower in aptly named Browerville is the construction headquarters for the new Arctic Slope Regional Corporation’s hotel.

For many years, the station housed Brower Café, where one could often look out on the ocean and see what appeared to be a piece of ice of moving in a different direction. It was usually a polar bear.

Classy Hotel on the Shores of the Arctic Ocean The Top of the World Hotel’s new building is at 3060 Eben Hopson Street in Browerville and features seventy rooms; six Americans with Disabilities Act compliant rooms, ten deluxe rooms, two suites, and fift y-two standard rooms. The new Top of the World Hotel is expected to open in May. There will also be a gift shop, guest fitness room, guest launderette, two guest kitchens—on the second and third ﬂoors—three meeting and conference rooms, and a restaurant able

Alaska Business Monthly | February 2014

to seat one hundred, with banquet and catering services in the future. “The design/build team consisted of ASRC SKW Eskimos Inc., as contractor, Builders Choice Inc., which was the module fabricator and installer, and the team was Winchester Alaska,” says Hardt. “This reinvestment falls in line with the ASRC Strategic Plan in terms of strengthening existing assets as well as increasing opportunities for local economic development, particularly, tourism,” says ASRC President and CEO Rex Rock Sr. In August 2013, ASRC’s hotel in downtown Barrow was affected by a fire next door, which burned Pepe’s North of the Border Mexican Restaurant to the ground. Tundra Tours Inc., an ASRC subsidiary, has operated its visitor tours out of there for years but will now move its headquarters over to the new hotel www.akbizmag.com

In October 2013, a backhoe takes down the remnants of Pepe’s North of the Border Mexican Restaurant in Barrow, which burned to the ground in August damaging ASRC’s Top of the World Hotel next door. Pepe’s was started by Fran Tate in 1978, moving over to its current site three years later.

on the Browerville site and will offer its summer day tours of the area from there. “We want to meet the requests coming in from village visitors, the community, corporate business, tourists, and tour companies for additional options to host and offer, not only room accommodations, but also event venue, catering, Iñupiat cultural performances, and summer day tour packaging,” says Hardt. The Barrow community lost an institution when Pepe’s burnt down and is in need of a large venue for its meetings and gatherings. “This facility has been a long time coming,” says ASRC Chairman and Executive Vice President of Shareholder and Community Programs Crawford Patkotak. “The current hotel is forty years old and was in need of replacement. We look forward to serving the community with this new investment, as well as providing our guests with a nice, comfortable place to stay.”

A Community Centered Facility Walk up the serrated surface of the steel ramp to the City of Barrow’s recreation center, called Piuraagvik, and enter a world of play. Open daily, it offers a gym, weight room, locker rooms with showers and very hot saunas, racquetball courts, and a climbing wall. Local sport leagues and exercise classes are held here. But with Barrow’s population expected to expand, the building lacked the room to accommodate more users. The architect for the project is Bob Bezek with BDS Architects out of Anchorage, and the contractor is UIC Construction. “As a matter of note, the North Slope Borough projects a population increase of 30 percent to 45 percent by 2035, depending on oil and gas development,” says Bezek. For permanence and strength, steel was used. Using steel in the Arctic comes with unique challenges—particularly building on permafrost, where the weight and the warmth of a structure can make it sink willy-nilly into the tundra. “Using steel in the Arctic has become more common over the past decade,” says Bezek. “Steel allows more openness in structures for program ﬂexibility. The steel structure is founded on wood piling with thermal probes to assure that the sensitive permafrost foundation regime is www.akbizmag.com

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A crane stands ready to lift materials into the new addition of the Barrow recreation center. © Dimitra Lavrakas

preserved for the long-term performance of the structure. Preservation of permafrost is essential to a structure’s survival in the Arctic. Without this technology a structure would sink into the permafrost due to its weight and heat loss.” “Steel construction was used because of the size of the main space,” says Harsa-

ny, the City of Barrow’s contract project manager. “Steel spans larger distances than wood.” “There are several phases to this project,” says UIC Construction Superintendent Bill McCormick. “The first phase was constructed by SKW and restored the original building interior to

a new life cycle, inclusive of heating and fire prevention systems that will ultimately serve the entire facility—inclusive of the new addition building shell constructed by UIC Construction. “UIC Construction has performed Phase 2 (A and B). Phase A foundation was a wood pile installation with thermoprobes.” Thermoprobes are non-structural, high-capacity, two-phase thermosyphons that provide passive refrigeration to maintain, or create, permafrost. They allow heated structures to be constructed on lower quality permafrost. Structures in Barrow built before the introduction of thermaprobes can be seen sitting unevenly on the tundra. Thermosyphons use a two-phase working ﬂuid contained in a closed, sealed vessel that is partially buried and functions passively in the winter, at which time the ﬂuid is driven below ground, condenses, and then rises, and the cycle is repeated. “Phase 2 was a scaled B version of the original bid and consists of the new addition shell,” says McCormick. The City of Barrow and Barrow Mayor

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Alaska Business Monthly | February 2014

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Bob Harcharek are at this time requesting additional grant funds for the next and final phase, which would be the addition final roofing and under-building soﬃt, existing building matching siding, interior build-out, and finishes. “This addition building shell was important for the city and mayor to get constructed,” says Harsany. “With this completed it should be only a matter of time before the city and the mayor are able to find grant funds to complete this recreational facility for the residents of Barrow.” The shell will also allow work to continue no matter the weather outside— crucial when the weather outside is in the minus digits and the wind is howling. The city has had two grants to bring the project to its current level. The first grant was a National Petroleum ReserveAlaska grant, and the second was a grant from the Alaska State Legislature. “The new addition consists of a new spectator gym and four program areas,” says Bezek. “The program areas are designed to be multipurpose, meaning that activities can be shifted from space to space as activity directors choose.” Considerable storage space is

The much-used Barrow recreation center, known as Piuraagvik, is getting a new steel-framed addition.

being added which also assists program ﬂexibility. “The purpose of the new gym is to expand recreational opportunities for the community and better serve the public with more seating capacity for popular events. The four program areas will provide for a wide range of functions such as exercise equipment,

weight training, aerobics, ballet, and community potlucks associated with activity events.”  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

EXPANDED SOLUTIONS FOR THE RESOURCE INDUSTRY Two NANA companies are joining to provide more services, more experience, and more value for our resource industry customers. NANA Construction is now a part of GIS Oilfield Contractors. With project experience from the Gulf of Mexico to Alaska’s North Slope, and an industry-leading safety record, GIS can support your resource project from design through fabrication, installation, start-up, operations and maintenance.

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February 2014 | Alaska Business Monthly

special section

Architects & Engineers

Urban Water & Wastewater: Fairbanks

Photo courtesy of Robert Langlotz/Golden Heart Utilities

The new centrifuge (dewatering) building alongside the older sludge storage building.

Privatized utility partnerships serve Interior city well Part three in a series

By Rindi White

ater and wastewater are some of the most expensive utilities to provide, and also the most vital to keeping a community healthy. The American Council for an Energy-Efﬁcient Economy says municipal water and wastewater treatment systems “are among the most energy-intensive facilities owned and operated by local governments, accounting for about 35 percent of energy used by municipalities.” In Alaska, costs can be even higher than those national averages, especially in rural and remote communities where groundwater is brackish or soils unsuitable for building wastewater treatment facilities. But what’s happening with water and wastewater in Alaska’s urban areas? Are water utilities much different in Anchorage, Fairbanks, Juneau, and Mat-Su than Outside? What are the issues facing these utility providers? Over the course of several months, Alaska Business Monthly readers are learning about utilities in Alaska’s major population centers and ﬁnding out how each community is preparing for the future.

Alaska Business Monthly | February 2014

ow does tap water keep moving in a city where winter temperatures frequently dip to fify or sixty degrees below zero Fahrenheit and the average winter lows are fifteen to twenty degrees below? Is it possible to process septic waste at those low temperatures? Fairbanks, the second-largest city in Alaska, has to contend with these and other issues in providing water and wastewater treatment to the roughly fift y-five thousand people who live in the College Utilities and Golden Heart Utilities service area. Fairbanks is also one of few municipalities in the state where water and sewer services are privatized. Fairbanks Sewer www.akbizmag.com

Photos courtesy of Robert Langlotz/Golden Heart Utilities

Steve Harvey (foreman) makes a centrifuge adjustment on operation panel #2.

and Water owns Golden Heart, College Utilities, and the utilities’ administrative arm, Utility Services of Alaska. Fairbanks Sewer and Water, in turn, is owned by Corix, a privately held corporation based in Vancouver, BC, Canada, and Wauwatosa, Wisconsin. Corix is principally owned by the British Columbia Investment Management Corporation.

www.akbizmag.com

Privately Managed, Public Minded In the mid-1990s, the city of Fairbanks’s utility system was in a tough situation. Former mayor Jerry Cleworth, a council member at the time, says the all-enclosed wastewater treatment plant was seeing problems related to heavy condensation. Electrical systems were rusting, he says,

New centrifuge building as seen looking due east along main entrance to Wastewater Treatment Plant (WWTP).

and other problems were creeping up. The city asked voters to approve a bond to cover the cost of repairs, but the bond failed. “We were in a world of hurt,” he says. The city had two options, Cleworth says: hike utility rates to cover the costs, mak-

February 2014 | Alaska Business Monthly

Electric powered hot air blowers are used to force heated air into the base of the curing mounds to facilitate and accelerate the curing (composting) process. Photo courtesy of Robert Langlotz/ Golden Heart Utilities

ing Fairbanks utilities the highestpriced in the state, or tap into profits from other city-owned utilities to cover the repairs. For the short term, city leaders chose to subsidize by tapping revenue from the city-owned telephone utility. But it was a short-term solution, Cleworth says—deregulation spelled out the end of the telephone utility. City leaders asked voters for permission to sell its utilities. Corix later purchased the water utility. The wastewater treatment plant is leased, Cleworth says, so if an operator abandoned the utility it would revert to city ownership. The city receives about $400,000 a year in lease payments, money that pays for general operations and helps keep taxes low, Cleworth says.

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Alaska Business Monthly | February 2014

“They [Corix] have an option to buy but they chose not to because they like this public/private partnership. It gives them access to grants and state or federal funds. It’s kind of an unusual partnership,” he says. Golden Heart Utilities recently partnered with the city on a $4.6 million upgrade to the wastewater treatment plant; one of the largest recent projects the utility has undertaken. Tiffany Van Horn, vice president and director of administration for Golden Heart and College Utilities, says the municipality was eligible to receive federal funding for the wastewater project, so the city received the loan and passed the money to Golden Heart to do the work. City workers have also assisted by doing some engineering work for the utility, she says.

Water Process: Treat, Heat, and Distribute Golden Heart Utilities’ water service delivers treated water to about fifty thousand customers in the city of Fairbanks and at the University of Alaska Fairbanks. A number of other Fairbanksarea residents also receive Golden Heart Utilities water from privately operated fill stations. Golden Heart Utilities operates three wells—two in use—and generally uses about 3.5 million gallons each day. Golden Heart Utilities water plant operator Sam Fleury says a number of people who live in the hills around the city either have no wells or have wells with higher-than-safe levels of arsenic, a carcinogen. According to studies by the US Centers for Disease Control, US Geological Service, and the University, many domestic wells in the Fairbanks level contain some of the highest concentrations of arsenic in the nation. The higherthan-usual concentration is due in part to arsenic-rich rocks in the area, an issue compounded by the area’s goldmining history, which exposed more of the arsenic to runoff and streams and eventually to drinking water supplies. In addition to high arsenic levels, Fleury says for many residents of the hills around Fairbanks drilling a well is a gamble. Water—if present at all—might be one thousand feet below the surface. Filling stations have long been a part of Fairbanks’ water distribution system. Fleury says the city used to operate a www.akbizmag.com

public filling station, when the utility was municipality-owned. Now, private operators run filling stations. They’re more than a simple outdoor tap, Fleury says. One filling station, The Fill, on Chena Ridge Spur Road, has space for ten vehicles to get water and one spot for a commercial tanker to fill with water. On the main distribution system, Fleury says one of the primary concerns is keeping water lines from freezing. The utility buys about $75,000 worth of steam each month between November and April from neighboring Aurora Energy, a coal-burning power plant, he says. The steam is used to heat up treated water from thirty-nine degrees to between eighty and ninety degrees before it’s sent out into the distribution system. “They pipe steam to us, and we send back condensate,” Fleury says. Keeping the water on the move is another important tool in keeping pipes from freezing in the severe cold, Fleury says. The two utilities, Golden Heart and College, have twenty-three individual pumping stations dedicated to keeping water flowing through the distribution system. Van Horn says the relatively high number of lift stations is also necessary because Fairbanks is a very flat city. A gravity-flow system needs elevation changes—natural or provided through a lift station—to work. Keeping water from freezing isn’t the only hurdle to running an efficient water and wastewater utility in an Arctic climate. The other end of the system, wastewater treatment, also includes special measures that make treatment happen in subzero temperatures.

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An Inside Job: Treating Wastewater Golden Heart Utilities runs the largest fully enclosed wastewater treatment plant in Alaska. Set up to process 8 million gallons of waste a day, wastewater treatment plant foreman Steve Harvey says the plant processes about 4.5 million gallons daily in the winter and around 5.5 million gallons each day in the summer. The water comes from customers within Fairbanks city limits, the University, Fort Wainwright, and commercial septage waste haulers. Harvey says the collection system is pretty typical. About sixty lift stations www.akbizmag.com

February 2014 | Alaska Business Monthly

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Alaska Business Monthly | February 2014

are in operation around the Fairbanks bowl, directing wastewater to the treatment facility on Peger Road, a few hundred yards from the Tanana River. The wastewater gets screened for large trash. What makes it through the screens goes into an influent well, while the trash is pressed and hauled to the landfill. The wastewater in the well is sent to two aerobic aerators—large concrete cells that hold 750,000 gallons each—and oxygen is piped into it to allow breakdown of bacteria. Large compressors supply the oxygen to encourage the breakdown of waste. It’s one of the most expensive aspects of the process, Harvey says. Providing oxygen is key—too little and the bacteria break down very slowly. From there it goes into several large clarifiers, where the sludge settles out of the water. Depending on how much water is still present in the sludge, it is either sent to aerobic digesters for more settling or thickened and sent off to be composted. The clarified water is laundered, a process through which air is again inserted into the water, and sent into one of four chlorine contact basins for final treatment, Harvey says. It’s laundered once more and sent out to the Tanana River. The fact that the facility is enclosed means wastewater treatment happens year-round with few hiccups. A drawback to an enclosed system, however, is that repairs are more difficult than they might be in an outdoor facility. “We can’t get in and access our aerators or digesters because they’re completely enclosed. They fill up with material over time and it’s always kind of a mystery what’s going on in there,” Harvey says. Cleanouts or repairs require draining an aeration tank out and bringing in a crane to help open things up. It’s not an action to be done without a lot of planning. “It upsets our plant,” Harvey says. “It’s a biological process and we typically start violating our permit [if one aeration tank is offline]. The last time we did that, it seemed to take about a month to get back up and running.”

Partnering With the City to Add Efficiency As with most systems, cost and eﬃciency are linked. The recent plant upgrade www.akbizmag.com

Photo courtesy of Robert Langlotz/Golden Heart Utilities

A loader is stockpiling waste sludge into curing mounds.

allowed the utility to change to a new way of handling its sludge, ultimately making the process of removing water happen faster and more eﬃciently. The utility formerly used a large belt press, reminiscent of old wringer-type washing machines, which squeezed water out of the sludge. The new system removes water by using centrifugal force, spinning it in a nearly ten-foot long tube with a screw in the center. Solid wastes are collected at one end and liquid, or centrate, goes out the other end. “It’s a lot drier coming out of the centrifuge,” Harvey says of the sludge. About twice as dry, he says.

Compost: Using Waste to Grow Grass and Flowers Harvey says although the wastewater treatment plant has been enclosed for several decades, composting is a recent addition to the process. The sludge previously was sent to a drying bed system that, unfortunately “did not work, especially in the winter.” Operators experimented with dumping the sludge into outdoor lagoons instead and adding lime to help process it, but that didn’t work out either. “It was a nuisance around town—it stank,” he says. Charlie Knight, a former associate professor of agronomy at the University of Alaska Fairbanks, says he was on a committee in the 1990s that recommended composting the waste. “The initial concern was that we would have to insulate it during the winter,” he says. That didn’t turn out to be a problem. www.akbizmag.com

“They never have a problem keeping it hot enough to keep it composting over the winter,” he says. “I think it’s the best method of treatment for [the treatment plant].” Harvey says the compost crew has three asphalt pads with liners onto which the pressed and dried sludge is dumped and mixed with wood chips to provide airspace for bacteria to work. It’s turned as needed and re-stacked after it has transformed from sludge to compost. When temperatures warm, the compost is screened to recover the wood chips and the fine compost is tested to “ensure the absence of harmful pathogens,” according to Golden Heart Utilities’ website, and then sold to the public. According to Golden Heart Utilities, the federal Environmental Protection Agency has rated the compost as “Exceptional Quality,” the agency’s highest rating for compost. A report by the University’s Cooperative Extension Service also had high praise: “The finished compost has an earthy smell and makes an excellent soil amendment,” the report states. Knight says he regularly uses the compost on his ﬂower gardens. It’s also popular for use on lawns, he says. Harvey says a pickup load sells for $20 and it’s a sought-after item, selling out quickly each summer. “They’re not making any money on it. It’s kind of a public service,” he says of Golden Heart Utilities.  Rindi White is a freelance journalist living in Palmer. February 2014 | Alaska Business Monthly

special section

Architects & Engineers

Photo courtesy of Neeser Construction Inc.

Innovations in Design

‘Working with and engaging owners’

By Rindi White

resh. Clean. Inviting. That’s the way people frequently describe buildings designed by Spark Design, a trio of women behind a number of prominent buildings under construction in Anchorage. Take the new locally-owned Natural Pantry store, for example. Owners Rick and Vikki Solberg approached the landowner, Neeser Construction, and engaged with them on a design-build process with Neeser working as the developer and Spark Design as the architects. As a large natural foods grocery store, a boxy shape is almost inevitable. But the entrance and the exterior are livened up by simple curves, colorful finishes and a variety of textures. “Looking at the site plan, we have traffic coming up A Street and also along 36th [Avenue]. At that major vehicular intersection, the client wanted to create a focal point to draw the community in. At this location, the design incorporates a community garden, outdoor 48

Above: The new Natural Pantry is visually interesting.

©Josh Martinez Photography

Right: Spark Design founders from left, Deanna Wlad, Tara Gallagher, and Deanna Nafzger.

seating, and an indoor café area, where customers can purchase food and beverages,” says Tara Gallagher, one of the three founders of Spark Design. The circular entrance area, Spark cofounder Deanna Wlad says, was incorporated as a way to make the entrance inviting from the major intersection and to bring in as much natural daylight as possible. The covered canopy draws inspiration from a canopy of trees—a nod to nature and to healthy living.

Alaska Business Monthly | February 2014

“The canopy is the focal point for community activity,” Wlad says. “They plan to have community classes on living a healthy lifestyle and a community garden where fresh produce is donated to local homeless shelters.”

Overlapping Schedules The Natural Pantry project, which was expected to be completed in January with the oﬃcial grand opening later in the spring, is an example of Spark Design’s collaborawww.akbizmag.com

Alaska Printer’s Supply

BusinessPROFILE

Epson SureColor T5000 engineering plotter

Bruce Ross with 3D architectural models

3DSystems ProJet 460 Plus

Alaska’s Source for 2D Plotters and 3D Printers

orn as an offshoot of Sandy’s Photo Center in 1976 as a local supply option for the commercial offset printing industry, Alaska Printer’s Supply has, in its 37 years, evolved into the premiere Alaska distributor for that market. The company’s loyal customers trust APS to be available to help them stay current in the rapidly-changing world of printing technology and to provide them with affordable, reliable equipment by which to accomplish those goals. In addition, they offer experienced, certified technicians to service these purchases, thus enabling their clients to maximize production. Loyalty and trust remain the backbone of APS’s success. 3D PRINTING MACHINES The company is now distributing a variety of products for engineering and architectural offices. For example, APS sells 3D printing machines (also known as additive manufacturing machines) from 3DSystems that can transform a digital file into a three-dimensional solid object of virtually any shape. So now, instead of taking weeks to build a complex model of a structure, local architectural and engineering firms can produce mockups more quickly and easily. With 3D printing, they can create better prototypes of their upcoming projects, says Bruce

Ross, president of APS. “Our 3D machines have the unique ability to print in full color, so customers who buy our machines will be able to produce fantastic prototypes for public meetings and presentations,” Ross says. EXPANDED PORTFOLIO Alaska Printer’s Supply has also expanded its portfolio of products with Epson engineering plotters, which can create large-format paper prints for bid proposals and other presentations. With the enhancement of its products, the company is striving to establish itself as a major supplier to the engineering and architectural world. As an Alaska owned and operated business, Alaska Printer’s Supply maintains a long-term view of how it handles the sales process and is very careful about client relations. “Being in the relatively small community that we have here in Alaska, we feel that our integrity with our customers is paramount,” Ross says. “There aren’t any bridges that can be burned here in Alaska.” EMBRACING NEW TECHNOLOGY Being a local business, Ross says, is inherent to the success of Alaska Printer’s Supply. Innovation is also a key factor. The company has always been a leader in embracing new technology. In fact, –

P A I D

A D V E R T I S E M E N T

–

it was the second dealer in the United States to distribute Postscript laser imagesetters. APS was also an early dealer of products for the direct-to-plate revolution that hit the publishing industry in 2001. “I have always kept an eye forward to future developments in the printing and publishing industry,” Ross says. “We are not afraid of promoting the latest technology.” APS is a member of the prestigious American Dealer Group, a leading consortium of independently-owned suppliers in the graphic arts and printing trade for North America. Alaska Printer’s Supply remains true to its mission. The company is committed to providing Alaska businesses with the finest equipment and consumable products, as well as service for that equipment, to support their operations. The new 2D and 3D equipment lines allow Alaska Printer’s Supply to look forward to an exciting future.

Bruce Ross, President 907 E. Dowling Rd., Suite 30 Anchorage, AK 99518 Tel: 907-563-7060 Fax: 907-563-0897

alaskaprinterssupply.com

Courtesy of Spark Design LLC

Above: Southcentral Foundation Therapy Center. Courtesy of Spark Design LLC

Left: KTUU’s Northern Lights Media Center.

sponsive to our needs and to how things change.”

tive process. Glenn Kolberg, project superintendent for Neeser Construction, says the design firm places a strong emphasis on team collaboration. While traditional design-bid-build projects take a more stair-step approach in which the work proceeds in phases, design-build projects often have design and construction schedules that overlap. Owners, designers, and builders work together throughout the course of the project. “A lot of the projects Spark is working on with Neeser are design-build. You have to have an open-minded design team that works really well together for not only a unique-looking, beautiful building, but to meet budget constraints. And Spark Design is really good at providing materials and design solutions that work in those [creative] aspects while still meeting budget concerns,” Kolberg says. Spark Design is also working with Neeser Construction on the $22 million KTUU Northern Lights Media Center being built in Midtown Anchorage. Jerry Neeser, president of Neeser Construction, says he has been working with Gallagher, Wlad, and Deanna Nafzger, the third founder of the company, for more than fifteen years. The trio is Neeser’s top choice for privatesector development projects, he says. 50

“They’re good producers, good thinkers, and they understand design-build. They understand the cost and… they’re very good at working with and engaging owners,” Neeser says. “They walk the line very well between owners, agencies, and contractors.” Ed Zernia, construction project manager for Southcentral Foundation, a medical provider for Alaska Native and American Indian people living throughout Alaska, says his organization is working with Spark on a two phased, $20 million therapy center near Goose Lake Park at Elmore and Tudor Roads in Anchorage. Phase one of that project is anticipated to break ground in the summer of 2014. The design firm is also working on a number of small projects to assist Southcentral Foundation in reorganizing departments to accommodate growth and change within their more than 1 million square feet of medical oﬃce space. Zernia says he’s worked with Wlad, Gallagher, and Nafzger for several years and is routinely impressed with their ability to adapt to their clients’ needs. “[Southcentral Foundation is] a very dynamic company, always changing,” he says. “When we change our plans they just roll right with it. They are very re-

Alaska Business Monthly | February 2014

Small Means Involved, Agile Being able to roll with changes and adjust quickly is part of why Nafzger, Gallagher, and Wlad decided to form Spark Design. The three started their own architectural design firm in December 2011. Two years later the firm has six employees—the three founders plus three full-time staff. “We thought we had a unique way to serve our clients here in town and to provide really high-quality services,” Nafzger says. She and her partners wanted to take ownership of how they work with clients at all levels. “We evaluate each client and each project individually and tailor our approach to meet the client’s and the project’s needs. In that way we ensure we are providing as much value to our clients as possible,” Nafzger says. “We see ourselves as the medium that brings our clients’ vision to life.” “We educate our clients about current trends, as well as to opportunities and options. This allows the clients to set their own project goals and vision with our guidance,” Gallagher says. Spark takes the collaborative process to the next step by having a completely open studio, with no walled oﬃces. Meetings happen at the large “dining room table” in the middle of the space. Nafzger says everyone at Spark is encouraged to participate in all levels of design and project development. www.akbizmag.com

“The open studio design helps us learn from each other,” Gallagher says.

Connecting To Create Style The three women come from different backgrounds, but share a similar perspective in how design should happen: that is, it should reﬂect the client, not necessarily their own personal style. Nafzger is a Midwesterner who grew up inspecting the inner workings of large buildings with her father, an elevator mechanic, in St. Louis. She says she got into design because a thoughtful high school geometry teacher pointed out that she was skilled at math and loved the arts. “It always kind of stuck in the back of my head,” she says, and she eventually decided to attend University of Kansas in Lawrence, Kansas, where the design school focused on sustainability with an emphasis on design-build and collaborative architecture. Nafzger says her thought process was also shaped by a year studying abroad in Paris. Gallagher is a lifelong Alaskan, born in Valdez and raised there and in Anchorage. She learned about design each summer when she visited her grandfather, a custom homebuilder in Colorado. She studied at the University of Idaho in Moscow, Idaho, and completed her Master’s Degree at their Boise Campus. The master’s program has an intense focus on urban design. “What I took away from that focus is how to create places that make a person’s experience better—how to create environments that make people feel safe, that make people want to be somewhere,” Gallagher says. Wlad is from Alberta, Canada, and says she grew up in a family that was very hands-on: if you want to get something done, you do it, she says. She went to Montana State University and says she doesn’t feel she has a style, per se, but instead tries to connect emotionally with clients to understand not only what they want but also how they want to feel in their space. “Our work is client specific,” she says. “That’s why it’s so rewarding and essential that we connect with our clients— you can’t achieve a unified vision if you’re not connected to your clients.”  Rindi White is a freelance journalist living in Palmer. www.akbizmag.com

ALASKA’S ENVIRONMENTAL LABORATORY FOR A CLEAN FUTURE

SGS North America Inc. Environmental Services 200 West Potter Drive Anchorage, Alaska 99518 p. 907 562 2343 f. 907 562 0119 WWW.SGS.COM

SGS IS THE WORLD’S LEADING INSPECTION, VERIFICATION, TESTING AND CERTIFICATION COMPANY

WHEN YOU NEED TO BE SURE February 2014 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2014 ARCHITECTS & ENGINEERS DIRECTORY

ARCHITECTURE FIRMS Company Company

Top Executive Top Executive

Architects Alaska 900 W. Fifth Ave., Suite 403 Anchorage, AK 99501 Phone: 907-272-3567 Fax: 907-277-1732

Mark Kneedler, Pres.

Bettisworth North Architects & Planners 212 Front St., Suite 200 Fairbanks, AK 99701 Phone: 907-456-5780 Fax: 907-451-8522

Tracy Vanairsdale, Mng. Prin. Arch.

Bezek Durst Seiser 3330 C St., Suite 200 Anchorage, AK 99503 Phone: 907-562-6076 Fax: 907-562-6635

Daniel Seiser, Pres.

Blue Sky Studio 6771 Lauden Cir. Anchorage, AK 99502 Phone: 907-677-9078 Fax: 907-677-9079

Catherine Call, Owner

Design Alaska, Inc. 601 College Rd. Fairbanks, AK 99701 Phone: 907-452-1241 Fax: 907-456-6883

Jack Wilbur, Pres.

ECI/Hyer Inc. 101 W. Benson Blvd., Suite 306 Anchorage, AK 99503 Phone: 907-561-5543 Fax: 907-562-3213

Brian Meissner, Principal

AK AK Estab. Empls. Estab. Empls.

Services Services

1950

Architectural design, space planning, interior design, and master planning for commercial, industrial, residential, medical, religious and educational facilities statewide.

1976

Anchorage Office: 2600 Denali Street, Suite 710, Roy Rountree, AIA, Principal. Alaska architecture, landscape architecture, interior design and planning for healthcare, education, military, housing, libraries, museums, public safety, civic buildings, senior care, and commercial development.

1981

Master planning, space planning, concept development, design, interior design, grant assistance, project development, feasibility and development assistance.

2002

Architecture with a focus on residential and food service projects.

1957

Design Alaska provides architecture; civil, structural, mechanical, fire protection, electrical, and environmental engineering; landscape architecture; and surveying. The firm also offers planning, condition assessments, energy modeling, LEED, construction administration and commissioning.

1981

ECI/Hyer is an award-winning architecture, interior design, and planning firm based in Anchorage, Alaska. For over 30 years, our firm has been designing people places.

GParch Architects, Gary Peterson & Assoc. Gary Peterson, Pres. 207 E. Northern Lights Blvd., Suite 110 Anchorage, AK 99503 gparch.net Phone: 907-563-1942 Fax: 907-561-6847

1982

Architectural design.

Ivy & Co. Architects/Mark A. Ivy Corp. 3835 Spenard Rd. Anchorage, AK 99517 Phone: 907-563-5656 Fax: 907-563-5657

Mark Ivy, Principal Architect

1984

Innovative residential and commercial designs for the Alaska environment.

Jensen Yorba Lott Inc. 522 W. Tenth St. Juneau, AK 99801 Phone: 907-586-1070 Fax: 907-586-3959

Wayne Jensen, AIA/Pres.

1935

Planning, programing, design and construction administration for architecture, interior design, space planning and construction management.

Ke Mell Architects PO Box 21898 Juneau, AK 99802 Phone: 907-463-3942

Ke Mell, Owner

1987

Architecture, including design and construction documents, planning and consulting.

kpb architects 425 G St., Suite 800 Anchorage, AK 99501 Phone: 907-274-7443 Fax: 907-274-7407

Mike Prozeralik, Pres.

1981

Award winning full service cold climate/arctic design experts in architecture, planning, landscape architecture, interior design, design-build; Native, federal, housing, healthcare, K-12 schools, retail/commercial projects; client oriented pre-design and energy efficient renovation/expansion leader.

Kumin Associates Inc. 808 E St., Suite 200 Anchorage, AK 99501 Phone: 907-272-8833 Fax: 907-272-7733

Charles Banister, Principal

1977

Kumin Associates provides planning and architectural and interior design for urban, rural and remote facilities throughout Alaska and in Washington, Greenland, Antarctica, and the Russian Far East.

Larsen Consulting Group Inc. 3710 Woodland Dr., Suite 2100 Anchorage, AK 99517 Phone: 907-243-8985 Fax: 907-243-5629

Wallace Swanson, Pres./CEO

1993

Celebrating 20 years serving Alaskans in over 175 communities, LCG is a multidisciplined firm providing architecture, structural, civil and sanitation engineering, land surveying and mapping services. Our staff specializes in rural infrastructure projects successfully completing 1000+ projects.

Little Susitna Construction Co. 821 N St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300

Tammie Smith, Gen. Mgr.

1980

A General, mechanical and electrical contractor. Architects, civil, mechanical and electrical engineers, licensed in 12 states. Construction project management. Importer, exporter and global project consultation.

Livingston Slone Inc. 3900 Arctic Blvd., Suite 301 Anchorage, AK 99503 Phone: 907-550-7400 Fax: 907-561-4528

Don Slone, PE

1975

Architecture (all phases), civil engineering, construction administration.

Martha Hanlon Architects Inc. PO Box 72292 Fairbanks, AK 99707 Phone: 907-458-7225 Fax: 907-458-7226

Martha Hanlon, AIA/Pres.

1998

Architectural design and project planning.

Mayer Sattler-Smith LLC 1104 W. Seventh Ave. Anchorage, AK 99501 Phone: 907-277-7878 Fax: 907-277-7899

Klaus Mayer, Partner Petra Sattler-Smith, Partner

2001

Architecture. Find us on Facebook.

marketing@architectsalaska.com architectsalaska.com

info@bettisworthnorth.com bettisworthnorth.com

bds@bdsak.com bdsak.com

catherine@callbluesky.com callbluesky.com

mail@designalaska.com designalaska.com

contact@ecihyer.com ecihyer.com

ivyco@alaska.net ivyandco.com

jensenyorbalott.com

kemell@alaska.com

info@kpbarchitects.com kpbarchitects.com

kai@kuminalaska.com kuminalaska.com

holly@lcgak.com larsen-anc.com

littlesu@ak.net littlesu.com

lsi@livingstonslone.com livingstonslone.com

info@mh-architects.com mh-architects.com

mayersattler-smith.com

Alaska Business Monthly | February 2014

www.akbizmag.com

Company Company

Top Executive Top Executive

Michael L. Foster & Associates, Inc. 13135 Old Glenn Hwy., Suite 200 Eagle River, AK 99577 Phone: 907-696-6200 Fax: 907-696-6202

Michael Foster, PE/Owner

Nvision Architecture Inc. 1231 Gambell St., Suite 400 Anchorage, AK 99501 Phone: 907-349-1425 Fax: 907-349-1325

Bill Tatom, CEO

RIM Architects 645 G St., Suite 400 Anchorage, AK 99501 Phone: 907-258-7777 Fax: 907-279-8195

Larry Cash, Pres./CEO

RIM First People LLC 645 G St., Ste. 400 Anchorage, AK 99501 Phone: 907-644-7877 Fax: 907-279-8195

Michael Fredericks, Owner

Simpson Associates Inc. PO Box 240125 Anchorage, AK 99524 Phone: 907-562-0944 Fax: 907-562-3944

AK AK Estab. Estab. Empls. Empls.

Services Services

1998

Environmental planning documents (EA/EIS), and full-service A/E firm with design/build, construction management, and general contracting capabilities.

1997

Full-service architectural firm.

1986

Providing comprehensive architectural services since 1986, RIM Architects' Alaska office has a staff of 29, including 15 Registered Alaska Architects. Projects encompass commercial, civic and cultural, educational, healthcare, residential and federal. The firm also has offices in CA, HI and GU.

2002

Alaska Native-owned and operated company providing architectural and project management services. In addition the firm offers its specialization in participatory design, adding value to the client's project. Committed to incorporating the significance of the user in the design process.

Mark Simpson, Pres./Architect

1975

Architectural services and construction management.

UMIAQ 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-677-8220 Fax: 907-677-8286

Richard S. Reich, P.E. , Gen. Mgr.

1982

200

UMIAQ is a member of the Ukpeagvik Inupiat Corporation (UIC) family of companies. UMIAQ services include resource development, design, architecture, engineering, regulatory planning, stakeholder relations, surveying, logistics, onshore/offshore spill response, Arctic science support, etc.

USKH Inc. 2515 A St. Anchorage, AK 99503 Phone: 907-276-4245 Fax: 907-258-4653

Timothy Vig, Pres./Principal

1972

100

USKH is a full-service, multidiscipline architectural and engineering firm. We were named the No. 6 Best Multidiscipline Firm to Work For in the nation (2013). Our Vision: Making communities better places to live. We love what we do and it shows in our projects.

WHPacific Inc. 300 W. 31st Ave. Anchorage, AK 99503 Phone: 907-339-6500 Fax: 907-339-5327

Robert Macomber, Pres.

1981

Architecture and multidiscipline engineering planning and design; survey and mapping; planning, GIS, permitting and grant writing; environmental site assessments and natural resource services; geologists and environmental scientists; project management and construction administration services.

hlm@mlfaalaska.com mlfalaaska.com

admin@nvisionarch.com nvisionarchitecture.com

info@rim-ak.com rimarchitects.com

mfredericks@rimfirstpeople.com www.rimfirstpeople.com

info@uicumiaq.com uicumiaq.com

marketing@uskh.com uskh.com

info@whpacific.com whpacific.com

ENGINEERING FIRMS Company Company

Top Executive Top Executive

AMC Engineers 701 E. Tudor Rd., Suite 250 Anchorage, AK 99503-7457 Phone: 907-257-9100 Fax: 907-257-9191

Pat Cusick, Pres.

ASRC Energy Services Inc. 3900 C St., Suite 701 Anchorage, AK 99503 Phone: 907-339-6200 Fax: 907-339-6212

Jeff Kinneeveauk, Pres./CEO

BBFM Engineers Inc. 510 L St., Suite 200 Anchorage, AK 99501-1949 Phone: 907-274-2236 Fax: 907-274-2520

Dennis Berry, Pres.

Bezek Durst Seiser 3330 C St., Suite 200 Anchorage, AK 99503 Phone: 907-562-6076 Fax: 907-562-6635

Daniel Seiser, Pres.

Bratslavsky Consulting Engineers, Inc. 500 W. 27th Ave., Suite A Anchorage, AK 99503 Phone: 907-272-5264 Fax: 907-272-5214

Tanya Bratslavsky, Pres.

Bristol Engineering Services Corporation 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713

Travis Woods, Sr. Civil Engineer/CEO

CH2M HILL 949 E. 36th Ave., Suite 500 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-762-1600

Terry Bailey, Sr. VP, AK Reg. Mgr.

ChemTrack Alaska, Inc. 11711 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-2511 Fax: 907-522-3150

Carrie Lindow, Pres.

www.akbizmag.com

AK Estab. Estab. Empls. Empls. 1981

info@amc-engineers.com amc-engineers.com 1985

info@asrcenergy.com asrcenergy.com

Services Services AMC Engineers is an award winning firm that specializes in mechanical, electrical, control and telecommunications engineering services in support of institutional, industrial and commercial projects. AMC also provides related services such as commissioning, life cycle cost analysis, energy modeling, and assistance with LEED accreditation.

2,530 Since 1985, AES has offered a full range of services, from exploration, permitting, and field development to production optimization and decommissioning, as well as offshore oil response equipment and resources. Our family of companies allows us to prepare and transition client projects for the next stage of exploration, development, or design.

1996

Structural engineering design and construction administration for new buildings and additions to existing buildings, analysis of existing buildings, including seismic evaluations and condition surveys, design of tanks and modules, and design of bridges (i.e. walkways and small trail bridges). Specialize in cold climates: Alaska and Antarctica.

1981

Master planning, space planning, concept development, design, interior design, grant assistance, project development, feasibility and development assistance.

1985

Bratslavsky Consulting Engineers, Inc. is a multi-discipline engineering and project management company specializing in full design, value engineering, tenant improvements, facility condition and ADA assessments, permitting, energy upgrades and audits, construction management and inspections, QA/QC, and other services.

1994

Civil engineering, permitting and planning; total project management encompassing planning, design and construction.

cmaynard@bbfm.com bbfm.com

bds@bdsak.com bdsak.com

mail@bce-ak.com bce-ak.com

info@bristol-companies.com bristol-companies.com 1946

bclemenz@ch2m.com ch2m.com/alaska 1973

2,332 Alaska's premier oil and gas contractor, providing project development & technology, program management; integrated engineering, procurement, construction (EPC/EPCM), project delivery; field services. Specialized in engineering, construction, fabrication, infrastructure development, environmental, water, transportation, etc. 835

Please check out our Statement of Qualifications at chemtrack.net/about_us.htm.

info@chemtrack.net chemtrack.net

February 2014 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2014 ARCHITECTS & ENGINEERS DIRECTORY

ARCHITECTURE FIRMS

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2014 ARCHITECTS & ENGINEERS DIRECTORY

ENGINEERING FIRMS

AK AK Estab. Empls. Estab. Empls.

Company Company

Top Executive Top Executive

Combs Engineering 503 Charteris St. Sitka, AK 99835-7042 Phone: 907-747-5725

Chris Combs, PE

1994

Mechanical engineer providing HVAC and plumbing design services.

Cooper Consulting Engineers 8183 Threadneedle St. Juneau, AK 99801-9125 Phone: 907-789-3422

John Cooper, PE/Principal/Owner

1982

General civil consulting for residential and commercial clients.

DAT/EM Systems International 8240 Sandlewood Pl., Suite 101 Anchorage, AK 99507-3122 Phone: 907-522-3681 Fax: 907-522-3688

Jeff Yates, Gen. Mgr.

1987

DAT/EM Systems International is an Alaska-based developer of world-class photogrammetric software. Since 1987, DAT/EM has built human interface tools to efficiently extract and edit 3D vector features from stereo imagery and point clouds.

Del Norte Surveying Inc. PO Box 110553 Anchorage, AK 99511 Phone: 907-345-8003 Fax: 907-345-8002

Lisa Greer, Owner

1986

212

Professional land survey firm providing survey services to both the public and private sectors. Our clients have been the AK St DOT, Fish & Wildlife, National Park Service, MOA, FAA, Cook Inlet Housing, engineering firms, oil companies and misc. general contractors. DNS is certified as a woman and minority business.

Design Alaska, Inc. 601 College Rd. Fairbanks, AK 99701 Phone: 907-452-1241 Fax: 907-456-6883

Jack Wilbur, Pres.

1957

DOWL HKM 4041 B St. Anchorage, AK 99503 Phone: 907-562-2000 Fax: 907-563-3953

Stewart Osgood, Pres.

1962

167

A multi-disciplined consulting firm that has been providing civil engineering & related services for more than 50 years. We maintain in-house expertise in public involvement, master planning & project permitting, environmental services & permitting, civil engineering, geotechnical engineering, structural engineering, etc.

Doyon Anvil 509 W. Third Ave. Anchorage, AK 99501 Phone: 907-276-2747 Fax: 907-279-4088

Werner Plagge, Gen. Mgr.

1984

Full service consulting engineering for the Petro chemical industry.

EDC Inc. 213 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-276-7933 Fax: 907-276-4763

John Faschan, Pres.

1980

EDC provides mechanical and electrical engineering services for municipal, industrial and commercial facilities. One of EDC's major service areas is the design of rural water, wastewater and energy systems. EDC also designs roadway lighting and signalization for transportation projects.

EEIS Consulting Engineers 4400 Business Park Blvd., Suite B-100 Anchorage, AK 99503 Phone: 907-258-3231 Fax: 907-272-1288

Rick Button, Pres./Principal Engineer

1989

Architectural services, structural, civil, mechanical, mechanical process, electrical and instrumentation engineering. Projects include Man Camps, Office Buildings, Warehouses, Hangars and various projects for rig and productioin support.

EHS - Alaska Inc. 11901 Business Blvd., Suite 208 Eagle River, AK 99577 Phone: 907-694-1383 Fax: 907-694-1382

Robert French, Principal in Charge

1986

Hazardous building materials identification and project design. Code compliance and plans review. Industrial hygiene and worker safety, health and safety plans, air monitoring.

Electric Power Systems 3305 Arctic Blvd., Suite 201 Anchorage, AK 99503 Phone: 907-522-1953 Fax: 907-522-1182

David Burlingame , Pres.

1996

200

EPS provides substation, generation, controls, protection, system planning and analysis and distribution engineering for utility, industrial, and governmental clients. EPS holds a number of long term and alliance type contracts and relationships.

EMC Engineering LLC 4701 Business Park Blvd., Suite J-15 Anchorage, AK 99503 Phone: 907-644-3923

Ryan Bloom, Owner

2002

We provide construction administration, civil engineering, quality control management, materials testing and special inspection services.

Enterprise Engineering, Inc. 2525 Gambell St., Suite 200 Anchorage, AK 99503 Phone: 907-563-3835 Fax: 907-563-3817

Kevin Murphy, Pres.

1972

Established in 1972, EEI provides multidiscipline consulting engineering and specialty services to public and private clients throughout Alaska and worldwide. Our Anchorage office is home to a thriving team of 38 engineers, surveyors, designers, and support staff. With every project and every client we work together to bring clarity to the complex.

Environmental Management Inc. 206 E. Fireweed Ln., Suite 201 Anchorage, AK 99503 Phone: 907-272-9336 Fax: 907-272-4159

Larry Helgeson, Principal Eng.

1988

Environmental & civil engineering, compliance & consulting such as Phase I, Phase II, asbestos mngmt. & design, HUD lead paint activities, UST removals, biological sampling, SWPPPs, SPCCs, & related contamination remediation services & training. A team of dedicated professionals working to make Alaska cleaner and safer for tomorrow.

Franklin & Associates 225 E. Fireweed Ln., Suite 202 Anchorage, AK 99503-2080 Phone: 907-277-1631 Fax: 907-277-2939

Nelson Franklin, PE/Owner

1990

Engineering services, structural engineering.

Fred Walatka & Associates 3107 W. 29th Ave. Anchorage, AK 99517-1704 Phone: 907-248-1666 Fax: 907-243-2081

Fred Walatka, Owner

1967

We do plot plans, as builts, ALTA's, and lot staking.

Fugro 5761 Silverado Way, Suite O Anchorage, AK 99518 Phone: 907-561-3478 Fax: 907-561-5123

Deanne Hargrave, Ops Mgr.

1994

Offshore: marine geophysics and seafloor mapping, metocean services and geotechnical investigations. Onshore: aerial and satellite mapping, precise positioning, geotechnical investigations, and regulatory and environmental assessments.

Services Services

jcooper@gci.net

jyates@datem.com datem.com

lgreer@dnsalaska.com

mail@designalaska.com designalaska.com

jpayne@dowlhkm.com dowlhkm.com

doyonanvil.com

info@edc-alaska.com edc-alaska.com

eeis@alaska.net eeis.net

ehsak@ehs-alaska.com ehs-alaska.com

abadger@epsinc.com esgrp.net

info@emcalaska.com emcalaska.com

info@eeiteam.com eeiteam.com

lhelgeson@emi-alaska.com emi-alaska.com

walatkas@aol.com walatkas.com

dhargrave@fugro.com fugro.com

Alaska Business Monthly | February 2014

www.akbizmag.com

Company Company

Top Executive Top Executive

Golder Associates Inc. 2121 Abbott Rd., Suite 100 Anchorage, AK 99507 Phone: 907-344-6001 Fax: 907-344-6011

Mark Musial, Principal/Mgr.

Haight & Associates, Inc. 526 Main St. Juneau, AK 99801 Phone: 907-586-9788 Fax: 907-586-5774

Benjamin Haight, Pres./CEO

Hart Crowser 310 K St., Suite 243 Anchorage, AK 99501 Phone: 907-276-7475

Jason Stutes, AK Office Mgr.

Hasz Consulting LLC PO Box 1229 Delta Junction, AK 99737 Phone: 907-895-4770 Fax: 907-895-4346

John Hasz, Pres.

Hattenburg Dilley & Linnell 3335 Arctic Blvd., Suite 100 Anchorage, AK 99503 Phone: 907-564-2120

Scott Hattenburg, Principal/Pres.

HDR Alaska Inc. 2525 C St., Suite 305 Anchorage, AK 99503 Phone: 907-644-2000 Fax: 907-644-2022

Duane Hippe, Sr. VP/PE

Jacobs 4300 B St., Suite 600 Anchorage, AK 99503 Phone: 907-563-3322 Fax: 907-563-3320

Terry Heikkila, Dir. AK Ops

Langdon Engineering 318 W. Tenth Ave. Anchorage, AK 99501 Phone: 907-272-1789 Fax: 907-272-1790

Albert Swank Jr., PE/Owner

Lanning Engineering PO Box 470 Ester, AK 99725-0470 Phone: 907-460-1557 Fax: 907-479-7711

David Lanning, PE/Principal

Larsen Consulting Group Inc. 3710 Woodland Dr., Suite 2100 Anchorage, AK 99517 Phone: 907-243-8985 Fax: 907-243-5629

Wallace Swanson, Pres./CEO

Lifewater Engineering Company 1936 Donald Ave. Fairbanks, AK 99701 Phone: 907-458-7024

Bob Tsigonis, Pres./PE

Little Susitna Construction Co. 821 N St., Suite 207 Anchorage, AK 99501 Phone: 907-274-7571 Fax: 907-277-3300

Tammie Smith, Gen. Mgr.

Livingston Slone Inc. 3900 Arctic Blvd., Suite 301 Anchorage, AK 99503 Phone: 907-550-7400 Fax: 907-561-4528

Don Slone, PE

Lounsbury & Associates 5300 A St. Anchorage, AK 99518 Phone: 907-272-5451 Fax: 907-272-9065

Jim Sawhill, Pres.

MBA Consulting Engineers Inc. 3812 Spenard Rd., Suite 200 Anchorage, AK 99517 Phone: 907-274-2622 Fax: 907-274-0914

Bradley Sordahl, Principal

Michael Baker Jr. Inc. 1400 W. Benson Blvd., Suite 200 Anchorage, AK 99503 Phone: 907-273-1600 Fax: 907-273-1699

Jeffrey Baker, AK Office Principal

Michael L. Foster & Associates, Inc. 13135 Old Glenn Hwy., Suite 200 Eagle River, AK 99577 Phone: 907-696-6200 Fax: 907-696-6202

Michael Foster, PE/Owner

www.akbizmag.com

AK AK Estab. Empls. Estab. Empls.

Services Services

1980

Arctic and geotechnical engineering, groundwater resource development, environmental sciences and remedial investigation.

1980

Consulting electrical engineers serving Southeast Alaska since 1980.

1974

Providing natural resources; environmental and geotechnical engineering; and hydrogeology support. Includes NEPA services, environmental permitting, baseline surveys (biological and chemical), fisheries, Endangered Species Act compliance, wetlands, and shoreline and in-water restoration.

1993

Services in the fields of vibration analysis and manufacturing technology. Our state-ofthe-art analytical equipment and experienced field personnel enable us to solve the most difficult problems. HC has experience working in many countries throughout Europe, Asia and South America as well as an extensive customer base in the US.

2000

Hattenburg Dilley & Linnell, LLC is an Alaskan consulting firm specializing in civil, geotechnical, transportation, and arctic engineering, environmental and earth science, surveying, and construction management for government and industry.

1979

170

Engineering services cover civil and structural engineering for transportation, water/ wastewater, solid waste, federal, military, and oil & gas infrastructure. Specialty services in design-build. Engineering supported by full range of environmental/planning staff. AK offices supported by 8,600 HDR staff nationwide.

1947

Professional services supporting federal & energy clients. AK expertise includes environmental planning, permitting, compliance, investigation, remediation & emergency response; energy conservation (retro-commissioning); remote logistics; design; planning; risk & construction management.

1980

High technology nuclear physics research, nuclear medicine, biophysics, bioengineering, cryogenics, ultra high vacuum, thermal and other engineering and scientific areas to include high energy particle accelerators. Offices in Alaska and Washington State.

1991

Consulting civil and structural engineering.

1993

1998

Sewage treatment plant and drinking water treatment plant design, permitting, fabrication, training, and operation. Plants built to work in the most extreme environments and most remote places- but we do the easy ones too! Plastic tank fabrication.

1980

1975

Architecture (all phases), civil engineering, construction administration.

1949

Civil engineering, land surveying, planning, construction management. Servicing local and state government, oil and gas industry and more.

1989

MBA Consulting Engineers, Inc., established in 1989, is a full service mechanical and electrical consulting engineering firm specializing in arctic, subarctic and northern maritime design.

1942

Engineering - pipeline, H&H, geotechnical, mechanical, civil, structural; GIS and LiDAR mapping; design; NEPA and permitting.

1998

Environmental planning documents (EA/EIS), and full-service A/E firm with design/build, construction management, and general contracting capabilities.

golder.com

ben@haight-assoc.com haight-assoc.com

jason.stutes@hartcrowser.com hartcrowser.com

jrhasz@haszconsulting.com haszconsulting.com

info@hdlalaska.com hdlalaska.com

info@hdrinc.com hdrinc.com

jacobs.com

le-m@ak.net

lanningak@acsalaska.net

holly@lcgak.com larsen-anc.com

Bob@LifewaterEngineering.com LifewaterEngineering.com

littlesu@ak.net littlesu.com

lsi@livingstonslone.com livingstonslone.com

k.ayers@lounsburyinc.com lounsburyinc.com

mbaconsulting@alaska.com

mbakercorp.com

hlm@mlfaalaska.com mlfalaaska.com

February 2014 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2014 ARCHITECTS & ENGINEERS DIRECTORY

ENGINEERING FIRMS

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2014 ARCHITECTS & ENGINEERS DIRECTORY

ENGINEERING FIRMS Company Company

Top Executive Top Executive

Monrean Engineering & Associates PO Box 9343 Ketchikan, AK 99901-4343 Phone: 907-247-5920 Fax: 907-247-5918

Fred Monrean, PE

MWH 1835 S. Bragaw St., Suite 350 Anchorage, AK 99508 Phone: 907-248-8883 Fax: 907-248-8884

Chris Brown, Alaska Reg. Mgr.

NANA WorleyParsons PO Box 111100 Anchorage, AK 99511 Phone: 907-273-3900 Fax: 907-273-3990

Rock Hengen, Pres./Gen. Mgr.

NORTECH Inc. 2400 College Rd. Fairbanks, AK 99709-3754 Phone: 907-452-5688 Fax: 907-452-5694

John Hargesheimer, Pres.

Northern Land Use Research Alaska LLC 234 Front St. Fairbanks, AK 99701 Phone: 907-474-9684 Fax: 907-474-8370

Burr Neely, Gen. Mgr.

Northern Latitude Associates PO Box 61201 Fairbanks, AK 99706 Phone: 907-479-6370 Fax: 907-479-2270

Wayne Larson, PE/Pres.

Northern Mechanical Engineering PO Box 113076 Anchorage, AK 99511-3076 Phone: 907-243-7254 Fax: 907-243-8495

Jay Smith, PE/Pres.

O'Neill Surveying & Engineering PO Box 1849 Sitka, AK 99835 Phone: 907-747-6700 Fax: 907-747-7590

Patrick O'Neill, PE/RLS/Owner

PDC Inc. Engineers 1028 Aurora Dr. Fairbanks, AK 99709 Phone: 907-452-1414 Fax: 907-456-2707

Royce Conlon, Pres./Principal

PM&E Services LLC 123 E. 24th Ave. #11 Anchorage, AK 99503 Phone: 907-222-5059 Fax: 907-222-5489

Damien Stella, Principal

PND Engineers Inc. 1506 W. 36th Ave. Anchorage, AK 99503 Phone: 907-561-1011 Fax: 907-563-4220

John Pickering, Pres.

Polarconsult Alaska 1503 W. 33rd Ave., Suite 310 Anchorage, AK 99503-3638 Phone: 907-258-2420 Fax: 907-258-2419

Earle Ausman, Pres.

Price Gregory International 301 W. Northern Lights Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255

David Matthews, VP/AK Area Mgr.

R&M Consultants Inc. 9101 Vanguard Dr. Anchorage, AK 99507-4447 Phone: 907-522-1707 Fax: 907-522-3403

Len Story, COO

R&M Engineering Inc. 6205 Glacier Hwy. Juneau, AK 99801-7906 Phone: 907-780-6060 Fax: 907-780-4611

Michael Story, PE/Pres.

RA Kreig & Associates 201 Barrow St., No. 1 Anchorage, AK 99501-2429 Phone: 907-276-2025 Fax: 907-258-9614

Ray Kreig, Pres.

RBA Engineers, Inc. 301 E. Fireweed Ln., Suite 100 Anchorage, AK 99503 Phone: 907-276-3768 Fax: 907-276-4269

Manju Bhargava, Pres.

AK AK Estab. Empls. Estab. Empls.

Services Services

1997

Civil engineering, surveying, wastewater design, subdivisions, structural engineering, storm drainage design, foundation engineering, inspections, engineering reports, marine structures, permitting, etc.

1977

Water, wastewater, environmental remediation, permitting and power.

1997

500

Project delivery company focused on multi-discipline engineering and design, procurement and construction management services for the hydrocarbons, power, minerals and metals, and infrastructure and environmental.

1979

Environment energy, health and safety: A multidisciplined professional consulting firm with registered engineers and certified industrial hygienists on staff providing environmental, engineering, energy auditing industrial hygiene and health and safety professional services throughout Alaska.

1991

National Historic Preservation Act Section 106 assessments; identification, evaluation, mitigation services-prehistoric and historic archaeology, historic architecture, cultural landscapes, and subsistence investigations; documents to satisfy NEPA and permitting requirements. Statewide services-cultural resource regulatory compliance; consultation.

1977

Engineering services. On-site water and wastewater inspections and testing.

1991

Automotive engineering, accident reconstruction, failure analysis, machine design, stress analysis.

1997

O'Neill Surveying & Engineering is a land surveying and civil engineering company specializing in land development, but active in all aspects of land surveying as well as road and utility development and design.

1975

PDC is a 100% employee-owned multi-disciplined engineering firm with over 75 employees. We specialize in designing for the ever changing Arctic environment with expertise in Civil, Electrical, Environmental, Fire Protection, Mechanical, and Structural engineering; as well as Land Survey, Planning, and GIS services.

1999

Project management and civil engineering support to a broad range of clients from municipal utilities to commercial and light industrial facilities.

1979

General civil, structural, geotechnical, arctic, marine, and coastal engineering; survey; permitting; hydrology; inspection; Q/A; among others.

1978

Engineering and construction consulting: hydroelectric power plants, transmission lines, buildings, docks, fish plants, sewer, and water lines.

1974

200

Pipeline, power, heavy industrial construction, EPC and consulting services. Infrastructure construction services provider.

1969

125

Engineering, geomatics, Earth sciences, construction administration.

1968

R&M provides civil, structural, and geotechnical engineering as well as land surveying and materials testing and inspection in Southeast Alaska: Craig, Haines, Hoonah, Gustavus, Juneau, Ketchikan, Klawock, Sitka, Skagway, Wrangell and other Southeast Alaska communities.

1975

Civil engineering, terrain analysis, permafrost, airphoto interpretation, routing studies.

1977

Provides mechanical & electrical engineering services statewide inclusive of enhanced commissioning, specially for military construction. In 2014, the firm has embarked upon its 36th year with US Fish & Wildlife Nidway Fire Pump, ICCAA House of Worship, FTW & JBER Commissioning Projects, Flying Museum and Ketchikan Roadways Illumination.

fmonrean@kpunet.net

chris.brown@mwhglobal.com mwhglobal.com

info@nanaworleyparsons.com nanaworleyparsons.com

hargy@nortechengr.com nortechengr.com

nlur@northernlanduse.com northernlanduse.com

northernlatitude@acsalaska.net

nmeinc@earthlink.net

oneillengr@ak.net

pdceng.com

dstella@gci.net

pndengineers.com

polarak@gci.net www.polarconsult.net

dmatthews@pricegregory.com pricegregory.com

email@rmconsult.com rmconsult.com

rmengineering@rmjuneau.com rmjuneau.com

ray@kreig.com kreig.com

raj@rbaengineers.com RBAEngineers.com

Alaska Business Monthly | February 2014

www.akbizmag.com

Company Company

Top Executive Top Executive

Reid Middleton Inc. 4300 B St., Suite 302 Anchorage, AK 99503 Phone: 907-562-3439 Fax: 907-561-5319

Bob Galteland, Pres.

Rodney P. Kinney Associates Inc. 16515 Centerfield Dr., Suite 101 Eagle River, AK 99577 Phone: 907-694-2332 Fax: 907-694-1807

Rodney Kinney, Jr. PE/Pres.

RSA Engineering Inc. 2522 Arctic Blvd., Suite 200 Anchorage, AK 99503 Phone: 907-276-0521 Fax: 907-276-1751

Mack Bergstedt, Pres.

Schneider Structural Engineers 8811 Toloff St. Anchorage, AK 99507 Phone: 907-561-2135 Fax: 907-561-2136

Jeff Robertson, PE/Principal

Shannon & Wilson Inc. 2355 Hill Rd. Fairbanks, AK 99709-5326 Phone: 907-479-0600 Fax: 907-479-5691

Chris Darrah, Assc./Fbx Office Mgr.

Shannon & Wilson Inc. 5430 Fairbanks St., Suite 3 Anchorage, AK 99518-1263 Phone: 907-561-2120 Fax: 907-561-4483

Stafford Glashan, VP/Anch. Ofc. Mgr.

Steigers Corporation 310 K St., Suite 200 Anchorage, AK 99501 Phone: 800-935-6569 Fax: 303-500-3113

William Steigers, Chairman/CEO

Stephl Engineering LLC 3900 Arctic Blvd., Suite 204 Anchorage, AK 99503 Phone: 907-562-1468

Matt Stephl, PE

Sustainable Design Group 247 S. Alaska St. Palmer, AK 99645 Phone: 907-745-3500

Eric Morey, Principal

Thompson Engineering Inc. 721 Sesame St., Suite 2B Anchorage, AK 99503-6632 Phone: 907-562-1552 Fax: 907-562-1530

Craig Thompson, Pres.

UAF INE PO Box 755910 Fairbanks, AK 99775 Phone: 907-474-5457 Fax: 907-474-6686

Daniel White, Dir.

UMIAQ 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-677-8220 Fax: 907-677-8286

Richard S. Reich, P.E. , Gen. Mgr.

Uni-Group Engineers, Inc. 1000 O'Malley Rd., Suite 200 Anchorage, AK 99515 Phone: 907-345-3647 Fax: 907-345-3648

Jenwei T. Chien, Owner/PE

URS 700 G St., Suite 500 Anchorage, AK 99501 Phone: 907-562-3366 Fax: 907-562-1297

Joe Hegna, AK Ops Mgr./VP

USKH Inc. 2515 A St. Anchorage, AK 99503 Phone: 907-276-4245 Fax: 907-258-4653

Timothy Vig, Pres./Principal

VEI Consultants 1345 Rudakof Cir., Suite 201 Anchorage, AK 99508-6105 Phone: 907-337-3330 Fax: 907-338-5386

Vern Roelfs, Pres.

WHPacific Inc. 300 W. 31st Ave. Anchorage, AK 99503 Phone: 907-339-6500 Fax: 907-339-5327

Robert Macomber, Pres.

www.akbizmag.com

AK AK Estab. Empls. Estab. Empls.

Services Services

1953

We offer engineering, planning, and surveying through the disciplines of structural, civil, aviation, waterfront, and transportation to public and private sector clients throughout the Pacific Northwest and Alaska. Our Anchorage office has grown to be one of the most service-oriented structural engineering firms in Alaska.

1980

Rodney P. Kinney Associates, Inc. (RPKA) is both a family-owned and Native American civil engineering and surveying firm which was founded in 1980. The firm is operated by the three Kinney brothers who are tribal members of the Native Village of Savoonga. RPKA has the knowledge and expertise to assist with delivering transportation projects.

1983

Mechanical/electrical consulting engineering services. Notable projects: IDIQ A/E services & engineering for various NSF projects at Antarctica & New Zealand, UAA Valley Arts & Learning Center, Naknek Silver Bay Seafoods Development, Bethel Youth Facility Renovation, Pt. Lay Power Plant, and Cabela's Store.

2000

Engineering services.

1974

Shannon & Wilson is a nationally renowned engineering and applied earth sciences firm with offices in Anchorage, Fairbanks, and the Lower 48. Our services include geotechnical analysis and design; frozen ground engineering; environmental compliance, assessments, and remediation; earthquake analysis; and materials testing.

1974

2004

With over 31 years continuous experience in Alaska, providing environmental consulting and permitting services to the energy, mining, power sectors. Speciality in air quality permitting.

1996

Engineering firm specializing in trenchless technology engineering including horizontal directional drilling, cured in place pipe lining water sewer, closed circuit television inspection (CCTV), pipe condition assessment, sliplining, auger boring and structure rehabilitation.

2009

Sustainable Design Group, LLC (SDG) is a woman-owned and veteran-owned, small business, design firm offering full landscape architecture and land planning services, with a focus on Community and Economic Development specializing in environmental planning, site development and sustainable design.

1989

Electrical Power Engineering.

1982

The Institute of Northern Engineering provides research and engineering solutions for the world's cold regions and beyond. INE conducts research in all areas of engineering, including, but not limited to: civil and environmental, petroleum, mining, geological, electrical, computer and mechanical engineering.

1982

200

2002

Uni-Group Engineers, Inc. is a mechanical engineering practice. Since 2002, we have provided mechanical engineering design and construction administration services, and have grown to an excellent staff of 4 employees. As a small company, Uni-Group is highly efficient and exceptionally dedicated to providing quality services to our clients.

1904

175

URS Alaska is a team of over 175 engineers, scientists, planners, and support staff located primarily in offices in Anchorage and Fairbanks. URS provides "Arctic-smart" engineering and environmental services for the complete project life-cycle from permitting and design through production and closure.

1972

100

1981

610

Civil and environmental engineering, land surveying for local communities, governments and private clients.

1981

kandersen@reidmiddleton.com reidmiddleton.com

rpka@rpka.net rpka.net

mbergstedt@rsa-ak.com rsa-ak.com

jrobertson@sastructural.com sastructural.com

info-fairbanks@shanwil.com shannonwilson.com

info-anchorage@shanwil.com shannonwilson.com

wdsteigers@steigers.com steigers.com

mstephl@stephleng.com stephlengineering.com

info@sdg-ak.com sdg-ak.com

teco@gci.net

sboatwright@alaska.edu ine.uaf.edu

info@uicumiaq.com uicumiaq.com

charlie@unigroupengineers.com unigroupengineers.com

urscorp.com/

marketing@uskh.com uskh.com

vernr@veiconsultants.com veiconsultants.com

info@whpacific.com whpacific.com

February 2014 | Alaska Business Monthly

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2014 ARCHITECTS & ENGINEERS DIRECTORY

ARCHITECTURE FIRMS

TELECOM & TECHNOLOGY

Smartphone Apps in Business By Eliza Evans

ccording to the 2013 AT&T Small Business Technology Poll, 85 percent of small businesses use smartphones and 31 percent use mobile applications (apps) in their business operations. Almost half of the small businesses polled stated they could not survive—or that it would be a major challenge to survive—without these apps. According to Jenny Fremlin, PhD, Media Psychologist at Alaska Litho Media Services, “Not only do most people have smartphones, we have come to depend on them like no other technology.” Generally, business apps are used to solve a problem for the business or their customers. According to the 2013 AT&T Small Business Technology Poll, the top three reasons respondents reported using apps for their business operations were to save time, increase productivity, and reduce costs. Of the small businesses using apps in their business operations, the majority (74 percent) use apps for GPS navigation and mapping. Location-based service apps account for 43 percent of small business app usage. Around 30 percent use apps for document management, social media marketing, and mobile payments in the field.

Business Apps A wide range of apps save time, improve eﬃciency, and help businesses stay organized and current. There are apps that add value by improving customer service, apps that make money by selling intellectual property, and apps that help companies do business. There are apps that allow users to manage employees, projects, and expenses. Sales reps may use apps to track and submit orders as well as take and mange payments. Mobile shift planning apps assist in the scheduling of staff, instantly notify staff of shifts or shift changes, allow staff to access shift schedules at any time and from 58

“Not only do most people have smartphones, we have come to depend on them like no other technology. Mobile is all about living your life with technology supporting it in the background. As a media developer, my passion is to help make applications that positively integrate technology with our everyday lives.” —Jenny Fremlin Media Psychologist Alaska Litho Media Services

any location, allow remote employees to clock in from anywhere, and even set automatic alerts to remind staff of their work schedules. There are also a substantial number of apps to help with finding and hiring employees, including recruiting and networking apps. There are also a wide range of mobile apps to support field service or remote staff. These apps assist staff with managing schedules, tracking meetings and hours, accessing maps and driving directions, accessing company resources, sending regular status updates to supervisors, sending and receiving encrypted emails, taking and tracking payments by credit or debit card, developing invoices, and using word processing programs. Many of these apps also sync with desktop computers and/or use a cloud—virtual server space—to keep everything current. There are even apps designed to find apps.

The App Business In some cases, it makes sense for a business to develop its own app. This may be to meet a specific need, brand a product, or sell intellectual property. If a business lacks staff with the technical skills to develop apps, there is help. Alaska Litho, an employee-owned print

Alaska Business Monthly | February 2014

and media services company based in Juneau, is one of several businesses in Alaska that are now developing mobile apps. “Mobile is all about living your life with technology supporting it in the background,” says Fremlin. “As a media developer, my passion is to help make applications that positively integrate technology with our everyday lives.” Fremlin says, “There are basic services out there that allow you to build your own static app that serves as a business card or copy of a website. But what we do is different, because we understand how and why people use mobile apps. With my media psychology background, we work with clients to develop the purpose and goals of the app, driving into what needs it serves and how they are best met with a mobile app.” Alaska Litho has been operating in the state of Alaska for over sixty-five years. Adapting to new technology is part of staying current in today’s business world. Fremlin says, “We’ve been working mainly in education and travel, but we have some research and productivity projects coming up as well. Businesses are interested in everything from simple ways to access information, such as a convention program app to supplement the print version, to new www.akbizmag.com

“I would encourage anyone interested in having an app built to spend time formulating a solid plan for the app. They should have a clear understanding of what the purpose of the app is, what the app should be able to do, how it should function, and how it should look… Equally as critical to the concept and vision, if the app is intended to be a commercial endeavor for the client, they should spend just as much, if not more time, developing a marketing strategy for getting the word out about their app. Without a strategy, the app will get lost in the app store[s] and never gain the traction it needs to be financially successful.” —Andy Clary, Project Manager, GeoNorth

ways of organizing and displaying important information in a calendar.” One of Alaska Lithos recent projects is Postcards From Alaska. “There were already things being done with mobile apps that directly impact our clients and services, so we decided to create an app that would meet two goals,” Fremlin says. “First, connect us to a new audience: the 917,000 visitors who come through our town every summer. And second, show our new app development service to our current clients… Our app Postcards From Alaska is a simple concept that lets you use a photo from your phone on a real postcard that is printed and mailed from Juneau. It provides a personalized and memorable way to stay in touch.” More information can be found at postcardsfromalaska.com. According to Fremlin, “There’s a lot of excitement around mobile apps, and even some pressure to get one for your business whether you have an idea for an app or not… The goal I see for business apps is to help your audience find what they need as fast as possible so that they can get oﬄine with that knowledge, resource, or plan.”

App Development is a Busy Business GeoNorth is another local company that specializes in app development for both public use and private companies. GeoNorth Project Manager Andy Clary says, “We tend to attract those interested in productivity apps, apps that improve eﬃciency or make a business process available to mobile users where it wasn’t available before. The apps we write are often mobile versions of an existing desktop application.” www.akbizmag.com

For some business owners, developing an app unique to their company is an important business strategy. Businesses may develop apps to provide a service, offer special deals, connect with customers, provide updates, and so on. Research suggests the businesssavvy are not only using apps to improve operations and build their business, but many are developing their own apps for their staff or to sell as a product. But while some businesses use apps to generate a direct financial return, some use apps as tools to provide better customer service or increase customer loyalty. “Many [businesses] are using apps to promote their brand and engage customers through additional channels,” says Clary. Board Meeting Manager is one of the apps developed by GeoNorth. “This app allows businesses to conduct paperless meetings, create agendas, and archive and share documents and files related to board meetings,” says Clary. “All meeting content is synced to iPads safely and securely so each board member is sure to have the latest version of a document. There is also a reference library for commonly used documents. A board administrator is able to create and manage meetings and agendas all from a website that pushes content out to iPads.” Before developing an app, Clary has some advice for businesses. “I would encourage anyone interested in having an app built to spend time formulating a solid plan for the app,” says Clary. “They should have a clear understanding of what the purpose of the app is, what the app should be able to do, how it should function, and how it should

look… Equally as critical to the concept and vision, if the app is intended to be a commercial endeavor for the client, they should spend just as much, if not more time, developing a marketing strategy for getting the word out about their app. Without a strategy, the app will get lost in the app store[s] and never gain the traction it needs to be financially successful.”

The Electronic Wave of Now The use of mobile apps is growing dramatically. Online retail performance data from IBM’s Digital Analytics Benchmark survey found that in 2012, mobile traﬃc grew by more than 67 percent. On Black Friday 2012, 24 percent of consumers used a mobile device to visit a retailer’s site and on Cyber Monday, purchases from mobile devices accounted for 13 percent of online purchases. According to the Pew Research Center’s Pew Internet Project, 56 percent of American adults have a smartphone. With such widespread smartphone ownership, it is no wonder that there has been a dramatic upsurge in the development of smartphone apps. “We are moving away from desktop and laptop computers,” Fremlin says. “Mobile devices reach more people, lower the cost of access, and simplify the learning curve. This will impact all businesses. 2013 was a turning point. For the first time we saw more people using mobile devices to access the Internet than desktop and laptop computers combined. And although this was predicted, it happened even earlier than expected.”  Eliza Evans is an Alaskan author.

February 2014 | Alaska Business Monthly

special section

World Trade Alaska

Business Opportunities in the Arctic Capitalizing on long-term advantages By Greg Wolf and Alex Salov

rctic development is an increasingly popular topic around the world. It is a subject of many international forums and conferences. It has also attracted the attention of many non-Arctic nations including China, Japan, India, South Korea, and Singapore. These countries recently sought and attained permanent observer status to the Arctic Council, an intergovernmental forum for the Arctic nations. What’s driving this global interest in all things Arctic? One factor is the presence of vast supplies of natural resources. The melting Arctic ice gives access to abundant resources, including oil and gas, minerals, and metals. According to the US Geological Survey, one quarter of the world’s undiscovered, technically recoverable oil and gas resources may be found in the Arctic: oil, 90 billion barrels; natural gas, 1.7 trillion cubic feet; and natural gas liquids, 44 billion barrels. Exploration may discover even far greater reserves than currently estimated. Also, the parting of the ice opens wide areas for international shipping, commercial fishing, and tourism and creates opportunities for development of remote areas that are presently inaccessible due to transportation limitations. The maritime cargo movements through the Arctic shipping routes saw a significant increase during the last three years. Until recently the number of commercial ships transiting through the Arctic Ocean has been low because of existing ice. While in 2010 only four cargo ships transited through the Northern Sea Route (NSR), in 2011 there were thirtyfour ships, and 2012 saw forty-six vessels plying the route. The sailing season for the NSR starts in June and ends in November. Most of the vessels require an icebreaking escort. Rosatomﬂot, a 60

ties for investment banks, private equity firms, sovereign wealth funds, and other sources of large-scale capital. While the opportunities in the Arctic are, without doubt, potentially enormous, they are long-term in nature and will require many years, even decades, to play out. Alaska has a unique role to play as America’s Arctic state.

Russian company operating a ﬂeet of nuclear-powered icebreakers, provides escorts to the cargo ships.

Arctic Advantages Another reason for the focus on the Arctic is the opportunity for dramatically reduced shipping times for cargo ships. For example, a ship traveling from Norway to Japan will shave twenty-one days off the current transit time and achieve commensurate cost savings associated with a far shorter trip. Deep-water ports and other infrastructure development projects are yet another reason for an increased interest in the Arctic region. These projects will involve engineers, architects, construction companies, environmental consultants, and other development specialists. Arctic areas, now inaccessible, will require ports, roads, airports, telecommunications, water and sewer, and power generation. Alaska companies are well positioned to compete successfully for contracts in these fields. This infrastructure development will require enormous amounts of capital investment. One investment manager has estimated that resources and infrastructure development will require more than $100 billion over the next decade. Such capital requirement spells opportuni-

Alaska Business Monthly | February 2014

Annual Event Highlights Opportunity An upcoming event will provide an update on Arctic development and will highlight opportunities for Alaska companies. February 27-28, World Trade Center Alaska will be conducting Arctic Ambitions III Conference. It will concentrate on the theme of international trade and business opportunities that ﬂow from resource development in the Arctic. While policy and research inform the discussion, this conference focuses on global markets, international trade, logistics, and infrastructure build out. The previous two conferences brought together presenters from Canada, Finland, Norway, Russia, Korea, and Alaska. Government oﬃcials and business executives discussed their roles as development unfolds in the region. This year’s agenda includes a full day of presentations, both live and by videoconference, a keynote speech, and an evening networking reception. The following day will focus on the unique business model of the Alaska Native Corporations: their presentations will show how they have built a story of success in the Arctic and what they see for the future development of their own backyard. The conference will take place at the Hotel Alyeska in Girdwood, Alaska. For registration information visit wtcak. org or call 907-27-TRADE.  www.akbizmag.com

WE WERE BLAZING NEW TRAILS LONG BEFORE IT BECAME A FIGURE OF SPEECH. We share a pioneering spirit with all Alaskans. For over 100 years, we’ve been doing whatever it takes to help Alaskans connect, stay connected and push forward. So whatever your business network needs are, we’ll be there for you—now and in the future. After all, we’re one of you. Visit alaskacommunications.com/business or call 1-855-907-7007 to learn more.

special section

World Trade Alaska

Anchorage: Cosmopolitan Pacific Rim City International connections foster global relationships By Greg Wolf

hile many know Anchorage as Alaska’s largest community and center of commerce, it is also a culturally diverse, cosmopolitan Pacific Rim city with extensive international connections and relationships. Just over 40 percent of all Alaskans live in Anchorage. Of Alaska’s 730,000 residents, some 300,000 make their home in Anchorage. The demographics reveal a multi-cultural community with sizeable numbers of residents of American Indian or Alaskan Native (8.1 percent), Asian (8.7 percent), Black or African American (6.2 percent), Hispanic or Latino (8.2 percent), and Native Hawaiian or other Pacific Islander (2.2 percent) heritages, according to a recent US Census Bureau report. The same report indicates that in almost 17 percent of Anchorage households, a language other than English is also spoken. An estimated 16,000 people of Mexican descent live in Anchorage and between 5,000 and 6,000 Koreans reside in the city. This diversity is reflected in the city’s educational system. Minority students make up more than half of the student population in the Anchorage School District, and some ninety-three different languages are spoken at the homes of city students. The most common of these are Spanish, Hmong, Samoan, Tagalog, and Yup’ik.

Air Cargo Thriving Anchorage’s role as the “Air Crossroads of the World” held sway for several decades as international passenger flights between Asia, Europe, and North America transited through the Anchorage airport on a regular basis. One result of this was a highly successful Duty Free store at the airport that, at one point, ranked second highest in the world, trailing only Hong Kong based on sales per square foot. These days, most of those passenger flights now bypass Anchorage, with the advent of longer range aircraft and 62

the opening of the Russian airspace allowing the airlines to fly non-stop. While international passenger flights have dwindled, air cargo operations at the airport have thrived. Driven by its strategic location, Anchorage plays a major role for international air cargo carriers, especially those operating between Asia and North America. The Ted Stevens Anchorage International Airport is currently ranked among the top five in the world for cargo throughput and the second largest in the United States based on the landed weight of the cargo aircraft. It is an important stop on Trans-Pacific flights for refueling and to change crews. Both FedEx and UPS have established major clearance and sorting hubs at Anchorage. In addition to refueling, the Anchorage airport enjoys special cargo transfer rights that are not available elsewhere, further bolstering its attractiveness for cargo and logistics operations.

Bridging Language and Culture China became Alaska’s largest trading partner in 2011. Prospects for continued growth of exports to China and for Chinese investment in Alaskan natural resource projects are bright. Helping to bridge the language and cultural gaps between Alaska and the Middle Kingdom is the University of Alaska Anchorage’s Confucius Institute. The Institute was established at the campus in 2008, stemming from a partnership between the University and the Chinese government. The Institute offers Chinese language and culture classes both to the student body and to the community at large. The Anchorage campus is also home to a new center focused on Japan. Launched in 2012, the Montgomery Dickson Center for Japanese Language and Culture was borne out of a partnership between the University and the Japan Foundation for Global Partnership in order to create a lasting memorial for Monty Dickson.

Alaska Business Monthly | February 2014

Dickson was a University of Alaska Anchorage graduate who lost his life during the March 2011 tsunami in Japan. The Center is involved with enhancing the Japanese language program at the University, supporting professional development for Japan-related faculty, and fostering student exchanges and cultural events.

Foreign Governments and Multinational Corporations Anchorage is home to nearly twenty foreign government representatives. Japan, Korea, and Mexico have official consular offices in Anchorage staffed by career diplomats, while sixteen other countries have appointed local citizens as honorary consuls to represent their interests in Alaska. Among the countries with honorary consuls in Anchorage are the United Kingdom, Austria, France, the Czech Republic, Spain, Poland, Finland, and the Seychelles. Beginning in 1969 with the northern Japanese city of Chitose, Anchorage has reached out and established Sister City ties with six cities around the world. Tromso, Norway, followed Chitose, also in 1969, and in subsequent years relationships were formalized with Whitby, England; Darwin, Australia; Incheon, Korea; and most recently, in 1991, with Magadan, Russia. Many of the foreign multinational companies that do business in Alaska are headquartered in Anchorage. Energy companies such as BP, Shell, Statoil, and Eni are examples and a variety of other foreign companies also maintain offices, have established operations, or have made investments in the city. In an increasingly inter-connected world, Anchorage is positioning itself, through international outreach and promotion, to play a significant role where people and companies from around the world can feel welcome and prosper.  www.akbizmag.com

Prepare to Compete in Today’s New Job Market! Learn the Essential Ingredients for Alaska’s Economic Development! MASTER OF SCIENCE IN GLOBAL SUPPLY CHAIN MANAGEMENT • Solve complex problems • Identify efficiencies • Add value to your skill set A new cohort group of the Master of Science in Global Supply Chain Management, limited to 25 qualified participants, will begin in September 2014 and graduate in May 2016. Designed to meet the needs of working professionals, classes will meet four weekends per semester, with additional online and group activities.

Complete application files requested by March 28, 2014.

UAA’s Logistics Department offers a full spectrum of graduate, undergraduate and certificate programs designed in collaboration with industry to meet the real-life needs of domestic and international businesses. Visit us at http://logistics.alaska.edu For more information and admission requirements, please contact: CBPP Graduate Programs, Rasmuson Hall, Suite 304, (907) 786-4171, supplychain@uaa.alaska.edu, or CBPP Student Advising Center, Rasmuson Hall, Suite 203, (907) 786-4100, sac@uaa.alaska.edu

UAA is an EEO/AA employer and educational institution. UAA’s College of Business and Public Policy is accredited by the Association to Advance Collegiate Schools of Business International.

special section

World Trade Alaska

Update on China in Alaska Dragon Decade roars with rapid growth By Greg Wolf

Further Growth Ahead And, as large and significant of a customer that China is now for Alaska, there are ample reasons to believe that further growth lies ahead. For example, as new mineral and metal mining projects come online, or as existing mines expand, China will inevitably be there as a big customer. Should a liquefied natural gas (LNG) project be developed in Alaska, China could emerge as a significant 64

$1,439

(2000-2012 Full Year Comparison) USD Millions

$1,500

$922 Jan.-Sept. 2012

$923

2012

2011

2010

$586

$733 2008

2009

$716

$474 2006

2005

$154 2003

$241

$148 2002

2004

$102 2001

$103

$300

2000

$600

$337

$900

2007

$1,200

$1,150 est.

Alaska’s China Era Continues

Source: U.S. Census Bureau

Alaska Worldwide Exports 1994-2012

$3.0 $2.0 $1.0 $0.0

$3.47 Jan.-Sept. 2012

$4.0

$5.2 $4.5 est.

$5.0

USD Billions

$2.5 $2.8 $2.9 $2.7 $2.0 $2.6 $2.5 $2.5 $2.5 $2.7 $3.2 $3.5 $4.0 $4.0 $3.5 $3.3 $4.2

$6.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

he rise of China during the past thirty years as a major economic power has been felt around the world, including Alaska. As a Pacific Rim neighbor, blessed with an abundance of natural resources, the state is well positioned to benefit from China’s continuing growth and modernization. Alaska can supply not only much-needed resources, but increasingly can also offer a range of high-demand technical and professional services by companies operating in Alaska that have developed world-class expertise and capabilities. Alaska is also benefiting from the rise of air cargo traffic from China to the US mainland through the Anchorage airport, and statistics show that an increasing number of Chinese tourists are visiting the Great Land. As an investor, China is moving into Alaska and will become even more involved in years to come as it seeks supplies of natural resources and to play a role in Arctic development. Export growth has been staggering. Alaska’s exports to China rose from $103 million in 2000 to a record high of nearly $1.5 billion in 2011 in what we have coined as the Dragon Decade. China is now the state’s largest trading partner. This rapid growth as a market for Alaska exports is unprecedented—never before has a market grown so fast, to such a level, in such a short period of time. While in 2012 exports slipped somewhat to $1.3 billion, this was still the second highest on record.

Source: U.S. Census Bureau

buyer. These developments, and other such opportunities, portend continuing growth of the Alaska-China trade relationship for many years to come. At present, seafood is the largest export category to China. In 2012, at $760 million, seafood shipments represented 57 percent of the total Alaska exports to the country. Minerals, at $446 mil-

Alaska Business Monthly | February 2014

lion, are the second largest category, accounting for 33 percent, followed by forest products at 7 percent and fish meal at just over 2 percent. While a significant percentage of the seafood exported to China is processed there and then re-exported to other markets, a growing amount is being consumed in the country as incomes www.akbizmag.com

rise and consumers become increasingly aware of the many healthy attributes of Alaska’s wild caught harvest.

Know-How, Technology, and Tourism As noted, besides natural resource exports, Alaska firms are increasingly finding opportunities in China. These companies are exporting know-how and technology. For example, RIM Architects, a leading Anchorage-based architectural firm, was recently awarded the Governor’s North Star Award for International Excellence for their design work for hotel and resort projects in China. Another Alaska company, ADS-B Technologies, has been recognized for their sales of air traffic management systems to Chinese customers. Value-added manufacturers are also having success. Take Alaska Brands Group, a beverage bottling firm based in Anchorage; they’ve found customers in China for their premium bottled water products. With China now the world’s largest outbound tourism market, Alaska should experience strong growth in the number of Chinese visitors to the state. At present, it’s estimated that approximately three thousand Chinese travelers visit Alaska, primarily during the summer months. But, the commencement of direct flights to Alaska and the establishment of local, China-focused tour operators will hasten this growth. Last year witnessed the inaugural flight of a charter passenger service between the Northern Chinese city of Harbin and Anchorage. The company recently announced its intention to operate the service bi-weekly beginning in January this year. Investment in Alaska Chinese investment dollars are beginning to find their way to companies and projects in Alaska. One example is in the mining sector. In 2009, during the financial crisis, Vancouver-based Teck Resources, the operator of the Red Dog Mine in Northwest Alaska outside of Kotzebue, announced that it had sold a 17.5 percent interest in their company to China Investment Corporation, one of the country’s sovereign wealth funds, for $1.5 billion. The Red Dog mine is one of the world’s largest zinc producers and China is the world’s largest consumer of zinc. Chinese companies are also becoming active in the Alaska oil and gas sector. One company, for example, has acquired offshore oil and gas leases in the Chukchi Sea. While neither of these are direct investments in Alaska, they are clear signals that the Chinese have put Alaska on their map and are exploring opportunities to participate in the development of natural resource projects. Alaska and China are natural trading partners. As the relationship expands and deepens, Alaska businesses will reap the benefits of this partnership. Looking back at the Dragon Decade years from now, it may, indeed, be recognized as just the starting gate for a long era of prosperity.  Greg Wolf is the Executive Director of World Trade Center Alaska (wtcak.org). Contact him by phone 907 278-7234 or email (greg@ wtcak.org). World Trade Center Alaska has been serving Alaska's business community since 1987. www.akbizmag.com

Alaska’s Exports to China

(by Commodity), January-September 2012

Forest Products 6.6%

Fish Meal 2.4%

Other 0.3%

Minerals 19.3% Seafood 58.1%

Source: U.S. Census Bureau, SOA, Governor’s Ofﬁce of International Trade

Alaska’s Top Export Comodities January-September 2012

Forest Products 3% Precious Metals 2%

Fish Meal 1% Other 4%

Energy 7%

Minerals 28%

Seafood 55%

Source: U.S. Census Bureau

Alaska’s Total World Exports January-September 2012 (3.47 Billion)

Switzerland 2%

Singapore 1% Other 11%

Australia 2% Netherlands 3% Spain 4%

China 27%

Germany 7% Canada 28%

South Korea 15%

Japan 18%

Source: U.S. Census Bureau

February 2014 | Alaska Business Monthly

special section

World Trade Alaska

Southeast Asia Business Trends for Alaska Strategic locations and low wages boost trade potential By Alex Salov

laska’s major international trading partners are countries within the Pacific Rim, predominantly Asia. In fact, almost 70 percent of the state’s exports are shipped to China, Japan, and South Korea. The Southeast Asia region, while experiencing rapid economic and population growth, remains virtually undiscovered by Alaska companies. Many significant developments have occurred during the past several years in this region. These developments create numerous business opportunities and Alaska could experience a significant growth of trade with Southeast Asia if these opportunities are successfully pursued. The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten major Southeast Asian countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), Philippines, Singapore, and Vietnam. Several dynamics of this union make it an important player worldwide and an increasingly important destination for US exports. The total population of ASEAN is around 600 million people, which is 100 million more than the European Union. Average GDP growth rate was 6 percent in 2012 compared to 3 percent or less average of the developed countries around the world. In 2012, US exports to ASEAN were approximately $76 billion and, if considering it as a single country, it would be the fourth largest US trading partner after Canada, China, and Mexico. In comparison, US exports also totaled $76 billion to the remaining BRIC countries (Brazil, Russia, and India) in the same year. ASEAN is also one of the top US direct investment destinations—exceeding $159 billion in 2011.

Singapore is Export Hub Today, the most important market for US goods and services among ASEAN 66

nations is Singapore. It is the thirteenth largest US export market ($30.5 billion in 2012), the largest ASEAN market for US exports, and the hub for US exports to ASEAN: up to 60 percent of the exports are re-exported to other countries of the region. ASEAN members are diverse in their economic, political, and cultural aspects; however, there are several trends that most of them share: relatively young populations (availability of workforce), urbanization, emerging middle class (a result of constant GDP growth), rapid industrialization, and strong demand for infrastructure. Generally speaking, these trends make ASEAN members attractive export destinations for companies around the world, including Alaska.

Growing Urban Populations As mentioned above, the total population of ASEAN countries is around 600 million people. With 237 million, Indonesia is the largest of them. Fift y percent of Indonesians are under the age of thirty. Vietnam’s population is about 88.5 million people; 70 percent of them are under forty years old and 26 percent are fourteen years old or younger. Major cities of the region became powerful engines of economic growth for their nations due to the flow of investments and the industrialization that accompanied it. Singapore, Manila, Bangkok, Jakarta, and Kuala Lumpur are among world’s richest cities, and high percentages of national GDPs are generated there. The same holds true for the second-tier cities. The wages in the cities are, generally speaking, higher than in rural areas and there is a constant demand for workers. According to the US Department of Commerce, 1 million people move into cities in Viet-

Alaska Business Monthly | February 2014

nam every year, and 40 to 50 percent of the population will be urban by 2020. As disposable income grows, people who saw poverty as children are eager to attain similar goods and services as their Western counterparts. Internet and popular culture play an important role in this trend. American brands are very popular and franchising is suggested to be one of the best prospects for exports. Malaysia has set an ambitious goal to become a “high income nation” (World Bank term) by 2020 and more than double their GDP per capita. Thailand is implementing $133 billion 2020plan to improve national infrastructure, including rail-based mass transit, highways, and water transport network. Other ASEAN members are also eager to utilize their strategic locations and are heavily investing in ambitious projects. To list a few: ■Long Thanh International Airport in Vietnam is intended to become operational by 2020 and designed to serve 100 million people annually ■High speed railway link connecting Malaysia to Singapore ■Mekong River dam projects in Cambodia and Laos—the ambition to become “batteries” for Southeast Asia ■Water irrigation and infrastructure projects in Indonesia, Vietnam, and several other countries in the region ■Karawang International Airport and ﬁfteen more airports in Indonesia ■The Trans-Asian Railway (TAR), connecting Singapore to Northern Europe—a global project connecting more than twenty countries ■Greater Mekong Subregion Connectivity: pipeline of infrastructure projects between Myanmar, Thailand, Cambodia, Vietnam, Laos, and southern provinces of China www.akbizmag.com

The Low-Wages Factor China has been the flagship of Asia’s economic development for more than a decade. It’s been more than thirty years since the country started to implement a new economic model, which included some aspects of a capitalist economic system. Since then, China has grown significantly, becoming the second largest economy of the world in 2010 after the United States, surpassing Japan. One of the main competitive advantages of the Chinese economic model has always been the low-wages factor. The world’s light industry goods were mostly “made in China.” Currently, the picture is changing and China is not the cheapest place to produce garments and shoes anymore. In fact, many Chinese firms are outsourcing their manufacturing to Southeast Asia. This trend has been widely discussed by world’s major “think-tanks.” For example, Stratfor, a global intelligence company, coined a term “The Post-China 16” (PC16) that describes sixteen countries that might succeed China as the world’s low-cost, export-oriented economy. www.akbizmag.com

Monthly Minimum Wages in Southeast Asia (USD) Minimum Monthly Wages (USD) Comment Country Singapore $820 suggested minimum, no minimum wage requirement Malaysia $263 - $296 varies by state and industry Philippines $130 - $288 varies by region and industry China $140 - $257 (except Hong Kong) varies by province and district Thailand $173 - $235 varies by province Indonesia $85 - $226 varies by province Sri Lanka $61 - $140 varies by industry Myanmar (Burma) $59 - $118 varies by industry Vietnam $79 - $113 varies by location Laos $63 - $79 varies by industry Cambodia $31 - $64 varies by qualiﬁcation, additional allowances for garment, textile, footwear workers Bangladesh $19 - $37 varies by industry

Half of the countries included in the PC16 are located in Southeast Asia. These nations possess two of the major features that create opportunities for light industry producers around the globe and attract the flow of investments: low wages and strategic locations. Several countries in Southeast Asia can qualify to be low-end, low-cost manufacturing alternatives to China. However, some developments need to be completed to achieve that. Besides the ambitious infrastructure projects in Southeast Asia mentioned above, there is an abundance of smaller regional projects that will make Southeast Asian nations more accessible and create a stable environment for industrial growth. According to the Asian Development Bank, in order to fully address the development of roads, rail, power, water, and other crucial infrastructure needs, ASEAN nations will require approximately $60 billion yearly to spend in those areas.

Growth Spells Opportunity for Alaska Businesses Alaskan companies should keep a close eye on Southeast Asia for opportunities in infrastructure development, education and training, environmental technologies, and water treatment, among others. The growing economies can also become a lucrative market for Alaska seafood and other products. The recent

Source: U.S. Department of State, ASEAN Business News

Trade Agreements Two trade agreements should be noted because they play an increasingly important role in current and future development of Southeast Asia: the Trans-Pacific Partnership and the ASEAN-China Free Trade Area. The Trans-Pacific Partnership is a regional free trade agreement that is currently being negotiated between Pacific Rim nations, including the United States. It is designed to liberalize trade among the partnering countries and, if completed, it would ease market access, create regulatory coherence, and facilitate development of production and supply chains across the Pacific. It could also be an important development for Alaska, given the fact that most of our state’s trade is done with Asia. China is also an active player in the ASEAN region. In 2010 the ASEAN-China Free Trade Area was established. It is the world’s third largest free trade bloc after the European Union and NAFTA. With more than $400 billion in bilateral trade (exports and imports combined) in 2012, ASEAN might become China’s top trading partner in the near future. Currently, it is China’s third largest partner after the EU and the United States.

growth of China as a market for Alaska was based on similar trends that are happening in Southeast Asia now. Alaska is well suited to participate in the development of the region and can expect a significant growth in trade there. World Trade Center Alaska (WTCAK) has pioneered trade development work to open Southeast Asia opportunities for Alaska businesses. The Center conducted a business conference on India and Singapore in 2006 and led the first Alaska trade mission to the region in 2010. In addition, WTCAK, through its extensive network within the US Department of Commerce and World Trade Centers Association, produces market reports and generates business leads for Alaska companies interested in doing business in Southeast Asia.  Alex Salov is the Business Operations Manager at World Trade Center Alaska. He has a master’s degree in global supply chain management from University of Alaska Anchorage. Also, since 2005 he works as an adjunct instructor of Japanese Language at UAA.

February 2014 | Alaska Business Monthly

special section

World Trade Alaska

Liqueﬁed natural gas tanker passing Mount Redoubt in Cook Inlet.

US Cabotage Laws and Alaska’ LNG Trade The dawn of the Jones Act Waiver By Isaak Hurst

ove it or hate it, the Jones Act is the single most important piece of US maritime legislation to date. It provides many Alaskan fishermen with jobs on the water, delivers significant employment benefits to injured mariners, and protects Alaskan seaman from the vicissitudes of foreign flagged jurisdictions by limiting US trade to US owned and operated vessels. All in, the Jones Act generates over $100 billion in US revenue and provides over five hundred thousand jobs to Americans annually. However, the Jones Act is not without its critics, and many of the larger commercial maritime entities are wondering what future the Jones Act will have if Alaska needs to ship Liquefied Natural Gas (LNG) to US ports, rather than those exclusively in Asia. This article will examine the current LNG tanker market, US shipping laws, and the impact each will have on Alaska’s LNG trade.

The Global Supply of LNG Tankers—or Lack Thereof A vital element in Alaska’s LNG equation is the vessels needed to ship this cargo. Today there are around 375 plus LNG carriers operating globally. Compared to the global 68

oil tanker fleet, which has 5,757 vessels, the LNG fleet is nominal in size. However, in the scheme of maritime history, the LNG tanker is a new design. The first international shipment of LNG occurred in 1960 with a shipment from Algeria to the United Kingdom. By 1990, the world’s LNG fleet was nearly 100 vessels, and by the millennium, the feet had doubled. In 2008, the world’s LNG tanker fleet launched its 300th ship, and today there are over 375 tankers transporting LNG to all corners of the world. With a limited supply of ships and global LNG demand souring, these vessels can charter out for a whopping $157,000 per day—$cha-ching$. Time to get into the LNG carrier market—right? Easier said than done. These vessels are equipped with cryogenic storage tanks designed to keep the ship’s cargo at a frigid -260°F. The vessels all have sophisticated vapor capture systems, bespoke loading and off-loading arms, engines that burn the very fuel it’s transporting, and a super high-tech computer monitoring system that keeps all of the above running smoothly. Indeed, these are incredibly exotic vessels. All in, the average cost to build a mid-sized LNG carrier can between $151 million to $210 million. For

Alaska Business Monthly | February 2014

the luxury tanker—the Q-Max, which can store 250,000 metric tons of LNG—the building cost is closer to $300 million. As a result, LNG carriers are some of the most expensive ships in the world to build. The high demand for these vessels is compounded by the technical know-how to build one. Currently, there are only dozen of shipyards globally that have the expertise to build a modern LNG tanker. Unfortunately for Alaskans, none of these shipyards are located in the United States and US shipping laws require all vessels engaged in domestic trade be US owned and operated vessels. However, there are no US owned and operated LNG tankers—nor are any being built. Therefore, if any US state wants to import LNG (currently there are several large-scale proposals to build import terminals along the west coast), Alaska would be prohibited from shipping any of its LNG to those domestic ports since there is no US owned and operated LNG vessels. Needless to say: Houston—we have a problem.

The Jones Act and the Coastwise Trade Endorsement When Congress designed the Jones Act in the 1920’s, its intent was to protect and dewww.akbizmag.com

velop the American merchant marine industry—specifically those vessels engaged in coastwise trade. Under 46 USC §55102, to legally transport goods between two US ports, the vessel must be built in the United States, owned by US citizens, fly a US flag, and crewed by a US citizen. Vessels that satisfy these requirements qualify for a “coastwise endorsement” that allows them to freely trade between US mainland ports, Alaska, Hawaii, Puerto Rico, and the Virgin Islands. Vessels that do not have the coastwise endorsement are prohibited under § 55102 from engaging in domestic maritime trade and face serious financial consequences if they do. For example, in 2011, Escopeta Oil Co. was fined $15 million dollars for moving their Spartan 151 jack-up-rig from Texas to Canada to Cook Inlet via a Chinese owned and operated bulker—a clear violation of the Jones Act. Unsurprisingly, business entities engaged in domestic or international trade have a significant financial interest in complying with US shipping laws. That being said, what if there are no coastwise ships available?

Coastwise Trade Waivers In certain circumstances, the US Secretary of Homeland Security may issue a Jones Act waiver. These waivers are unique because they allow foreign-flagged vessels to engage in what would otherwise be restricted trade. However, waivers are not so easy to obtain. Under 46 USC §501, the US Maritime Administration (MARAD) may waive coastwise laws if it determines: (a) there is no qualified US-flagged vessel available, and (b) the waiver is “necessary in the interest of national defense.” As such, MARAD typically grants waivers only in extreme or catastrophic circumstances, such as hurricanes (Katrina and Sandy) or immediate energy shortages such the recent one in Nome, Alaska. In 2011, a severe November storm froze parts of the Bering Sea making a traditional tug and barge fuel delivery impossible. However, Alaska’s own Vitus Marine was able to secure a Jones Act wavier, which allowed it to legally charter a double-hulled, ice classed, Russian tanker in order to deliver 1.3 million gallons of home heating oil, unleaded gasoline, and diesel fuel to Nome and its residents. Vitus Marine’s subsequent success landed it a tremendous amount of distinction amongst Alaskans and the arctic shipping community www.akbizmag.com

as a whole. Typically, however, Jones Act waivers are not something US shipping companies will seek out. In the eyes of the common merchant mariner, Jones Act waivers personify the typical “legal loophole” argument that major companies can exploit at the expense of the common seaman. The US shipping industry views these waivers a direct threat to US maritime jobs and sovereignty since each waiver is allowing a foreign-flagged vessel and crew to do the jobs of a US vessel and crew. Moreover, for every Jones Act waiver issued, there is a tidal wave of political ramifications asking for an exact accounting as to why there were no US qualified vessels available. Politically speaking, this can be a lot of heat, which is why Alaska should be weary of mooring itself to a pipeline project that has such a high probability of relying on Jones Act waivers if the LNG market changes.

Conclusion The lack of US built, US owned, US flagged, and US crewed LNG carriers will be a real issue for Alaska LNG exports if the natural gas market in the United States develops, which it is expected to do. To be sure, without coastwise qualified LNG tankers, Alaska will be forced to sell its natural gas exclusively to Asia or, in the alternative, seek a Jones Act waiver for every shipment of Alaska LNG down to the Lower 48. Politically speaking, this last scenario is a loser. The Jones Act is too important to the economy of Alaska, and waivers translate into lost jobs for Alaskans and Alaska shipping companies. In short, Alaska must be sure this new pipeline project does not start a trend that erodes the legal foundation that supports the maritime jobs Alaskans already have.  Isaak Hurst is an attorney with the International Maritime Group, PLLC—a boutique law ﬁrm that provides legal services to Alaska’s maritime, oil and gas, mining, and international business communities. Hurst was born and raised in Alaska. Contact him at Isaak.Hurst@ InternationalMaritime.net. February 2014 | Alaska Business Monthly

special section

World Trade Alaska

The M/V Nordic Orion transported a load of coal from the west coast of Canada (Vancouver, BC) to Pori, Finland, through the Northwest Passage last fall. The M/V Nordic Orion is pictured above plying the waters of the Northern Sea Route, which it ﬁrst traversed in 2010.

Ottawa’s Northwest Passage dilemma with implications for Alaska By Sourabh Gupta and Dr. Ashok K. Roy All are architects of Fate, Working in these walls of Time; Some with massive deeds and great, Some with ornaments of rhyme. —Henry Wadsworth Longfellow (1807-1882)

uring the second half of September last fall, a Danish-owned ice-class bulk carrier, the Nordic Orion, became the first large commercial vessel to traverse the Northwest Passage since the US tanker SS Manhattan in 1969. Embarking from Vancouver in Canada in early September, sailing in waters abutting Alaska and thereafter transiting these Canadian Arctic waters, the Nordic Orion deposited its cargo of 73,500 tons of coking coal at the port of Pori in Finland. For the Danish owner of the vessel, Nordic Bulk Carriers, the voyage proved to be another feather in its cap. In 2010, Nor-

dic Bulk had become the first non-Russian company to sail the Northern Sea Route—spanning the Arctic coast of Russia—when it shipped iron ore from a port in Norway to China. By traversing the Northwest Passage rather than steam along the traditional Panama Canal route, the Nordic Orion was able to shorten the distance of its voyage by one thousand nautical miles, enabling it to accrue significant fuel savings as well as haul an increased load of cargo. Transportation time was cut by four to five days. It is not without irony that the fuel and time savings—and, thereby, the lower carbon emissions—is the product of global warming which has opened up the viability of this route to commercial traffic in the first place. As such warming continues apace, the Passage—and Alaska’s Arctic shoreline—can expect to witness a gradual increase in frequency of such transits.

Alaska Business Monthly | February 2014

The Northwest Passage has huge security and energy dimensions for Alaska. Despite the historic nature of the Nordic Orion transit, the Northwest Passage is not expected to challenge the Northern Sea Route as the new gateway for Arctic-based transit anytime soon—if ever. Although the Arctic sea ice has lost half its area and three quarters of its volume over the past three decades, the Northwest Passage still remains a perilous route that is navigable only by a few specialist vessels for approximately two months a year. By contrast, the Northern Sea Route is generally open to traffic from late-July through mid-November and witnessed as many as forty-six vessel passages in 2012, at least fift y-eight in 2013. The Russian infrastructure build-up along the route is also markedly superior. Russia currently has sixteen deep water ports along its Arctic coastline, a host www.akbizmag.com

of search-and-rescue stations, and is constructing an airbase on Kotelnyi Island in the Siberian Arctic; by contrast, Canada lacks a single port along the Northwest Passage. What the historic nature of the Nordic Orion transit is likely to challenge, however, is the Canadian government’s official contention that the water columns abutting Canada’s Arctic shoreline that constitute the navigable channel of the Northwest Passage is a part of the internal/inland waters of Canada. More to the point, that these waters and the Passage is not an international strait. The voyage of the Nordic Orion and future such transits in these gradually navigable waters is likely to belie this claim— in turn, placing limits on the exercise of Ottawa’s untrammeled sovereign jurisdiction in these waters and with connotations that extend all the way to the security of Canada’s maritime borders. For Alaska too, as the Arctic ice sheet gradually recedes and important commercial and maritime law related developments assume greater importance, questions related to the broader ownership of the Arctic will loom ever larger. Northwest Passage-bound transit and maritime delimitation disputes will be at the forefront of this list, given the as yet unsettled Alaska-Canada maritime boundary delimitation dispute in the Beaufort Sea (at the entry/egress point of the Northwest Passage). Alaska would be well-served by keeping its ear to the ground—or rather sea—as the debate on Canada’s fidelity to the provisions of the Law of the Sea gradually unfolds. The US Geological Survey has assessed that the Arctic accounts for 30 percent of the world’s undiscovered natural gas and 13 percent of its undiscovered oil. Because of this potential, China, as the world’s largest consumer and importer of energy resources, is arguing that under the United Nations Convention on the Law of the Sea (UNCLOS) the Arctic Ocean is a shipping commons in spite of its vast geographical distance from members of the Arctic Council (United States, Canada, Iceland, Russia, Denmark, Finland, Norway, and Sweden).

Law of the Sea and the Northwest Passage A coastal state’s internal or inland waters cover all water and waterways www.akbizmag.com

on the landward side of the baselines of its territorial sea. As per UNCLOS, a coastal state is entirely free to set laws and regulate use, including resource use, in these waters. Further, it can assert every attribute of sovereignty in these waters, including the denial of passage to foreign flagged vessels. Such vessels possess no automatic “innocent passage” rights—let alone “transit passage” rights—within internal/inland waters. By contrast, UNCLOS devotes considerable attention to the regime of straits used for international navigation, including provisions devoted to the rights of foreign flagged vessels in these waters. Foremost among the rights afforded to foreign vessels (and aircraft) in international straits is the unimpeded right of transit passage, implying that the adjacent strait state cannot bar or suspend such passage or engage in activities that may have the practical effect of doing so, including demands such as prior consent/authorization for passage through these waters. This obligation extends to the right of passage of foreign military vessels too, including submarines which are not obligated to surface and display their national colors while in transit. While the above functional element remains a core feature of UNCLOS’s straits passage regime, the Convention leaves it unclear as to what level of international navigation is required for a strait to be appropriately classified as an “international strait.” Intuitively, it would be usage of the strait, like the Nordic Orion transit and subsequent such usage, which will—or should— determine this classification. It is not hard to see the logical culmination point of Nordic Orion-type transits through the Northwest Passage, insofar as it relates to the Law of the Sea rulebook. As a pattern of iceclass bulk shipping across the Passage gradually builds, it will increasingly be deemed to have assumed the characteristics of an international strait as per interpretation of UNCLOS’s classification—in turn, leading to an even greater flow of international maritime traffic that might or might not seek Canadian consent to traverse these waters. Furthermore, military warships too would follow, including submarines February 2014 | Alaska Business Monthly

which would not have to surface or alert Ottawa of their presence during transit. Canada’s maritime security would be appreciably worse off. As mentioned previously, such right of innocent passage, passage that is non-prejudicial to the peace, good order, or security of the coastal state, as well as right of transit passage, is not available to foreign warships in the coastal state’s internal/inland waters, although they do retain innocent passage rights in the twelve nautical mile territorial sea that extends seawards from Canada’s archipelagic baseline. The Canadian government will almost certainly beg to differ. Ever since 1973, barely a few years removed from the SS Manhattan’s transit through the Northwest Passage, Canada has held that these waters constitute internal waters under historic title and thus fall under full Canadian sovereignty. In 1986, following a controversial transit of the US Coast Guard icebreaker CGS Polar Sea, Ottawa, further, drew straight baselines around the Arctic Archipelago—in effect, breathing legal life into its internal waters claim. Bending ever so slightly to Ottawa’s insistence, the United States in 1988 made the rarest of exceptions to its rigid navigational freedoms mantra and acknowledged that future such voyages by US government, or governmentchartered, vessels in these claimed internal waters would be undertaken with the consent of the Canadian government (without prejudice though to the US legal position vis-à-vis these Arctic waters). Further, by asserting visible acts of sovereignty on a recurring basis, Canada could stymie and resist any move to internationalize and classify the Passage as a strait in the years and decades ahead. The Canadian argument is not without merit. There are, however, serious deficiencies with both its internal waters claim and the accompanying historical title claim. The latter, particularly, is especially weak given that demonstrating the burden of proof to display Ottawa’s exclusive jurisdiction—and the acquiescence of foreign states—over these waters for a sufficiently continuous period of time is a tall order. The historic title claim itself dates back to only 1973. 72

The internal waters claim appears at first glance to be more robust. Given the geographic contiguity and peculiarity of the archipelago, the general direction of the coast, and the proximate economic and livelihood interests involved, a straight baseline drawn by Ottawa that encompasses the archipelago would appear on the surface to be more tenable. Without discounting the fact that Canada enjoys a significant measure of jurisdictional control over the Northwest Passage, it does however bear noting that as per Article 8 of UNCLOS, when straight baselines are drawn around waters which were not previously deemed to be internal/inland, the foreign navigational right of innocent passage remains. Canada drew straight baselines only in 1985. By signing and ratifying the Law of the Sea convention thereafter, which was opened for signature in 1982, Ottawa became duty bound to afford innocent passage rights, free of prior consent/authorization requirements, to foreign flag holders transiting the Northwest Passage. On the other hand, there is much to recommend in the Canadian government’s argument that the extremely shallow precedent of transit through the Northwest Passage ought not to raise the classification of the Passage to that of an international strait. All transits conducted so far have been either under strong Canadian protest or, as in the case of the Nordic Orion, under the regulatory oversight of Transport Canada and the Canadian Coast Guard. If usage of these waters is the yardstick to determine its classification, use of the Passage as a thoroughfare does not rise to the threshold of designating it as an international strait.

So Where Does Ottawa Go From Here It is plainly obvious that the Northwest Passage has had a shallow history of usage as a functionally important route for international maritime traffic. It is equally obvious that as climate change increasingly renders the navigation of the Northwest Passage more feasible, more vessels—commercial and, perhaps, military—will traverse these waters. Insurance, once hard to obtain for Arctic voyages, is already becoming more readily available, although mostly

Alaska Business Monthly | February 2014

in case of traffic navigating the Northern Sea Route. The increase in traffic through the route is expected to call into question Ottawa’s legal position in regards to the Passage and, by extension, to its larger fidelity to the law of the sea. As a signatory to UNCLOS and a practitioner of maritime law in good standing, Canada retains an interest in safely navigating its way along the horns of this internal waters/international straits dilemma. That Ottawa might perhaps have a more persuasive international maritime law based case to make against its powerful neighbor to its south with regard to the delimitation of the as yet disputed boundary in the Beaufort Sea should make its continuing adherence to the provisions of the law of the sea even more compelling. Building up its port and shipping related infrastructure as well as providing essential services to commercial shipping along the Northwest Passage might be a useful first step to promote and vindicate the exercise of Canada’s sovereignty over these gradually melting waters. Alaska has vital interests in this issue ranging from resource depletion, global warming, habitat loss, and international conflict to other strategic interests.  Sourabh Gupta is a Senior Research Associate at Samuels International Associates, Inc., a Washington, DC-based strategic, international trade, and political advisory ﬁrm. Dr. Ashok K. Roy is Vice President for Finance & Administration/ Chief Financial Ofﬁcer for the University System of Alaska and Associate Professor of Business Administration at the University of Alaska at Fairbanks. www.akbizmag.com

Architects & Engineers

special section

Export Partners and Commodities

Total U.S. Exports (Origin of Movement) via ALASKA Top 25 Countries Based on 2012 Dollar Value U.S. Exports by Origin State (Origin of Movement Series). Values in millions of dollars. Percent Change is from 2011 - 2012. Rank Country 2009 2010 2011 2012 2009 2010 2011 2012 Value Value Value Value % Share % Share % Share % Share --Total ALASKA Exports and % Share of U.S. Total 3,270 4,155 5,259 4,543 0.3 0.3 0.4 0.3 --Total, Top 25 Countries and % Share of State Total 3,197 4,083 5,111 4,470 97.8 98.3 97.2 98.4 1 China 586 921 1,477 1,354 17.9 22.2 28.1 29.8 2 Japan 992 1,218 1,086 780 30.3 29.3 20.6 17.2 3 South Korea 458 477 642 663 14 11.5 12.2 14.6 4 Canada 320 391 586 467 9.8 9.4 11.2 10.3 5 Germany 126 174 261 274 3.9 4.2 5 6 6 Spain 138 163 205 151 4.2 3.9 3.9 3.3 7 Singapore 74 8 11 124 2.3 0.2 0.2 2.7 8 Netherlands 88 115 173 121 2.7 2.8 3.3 2.7 9 Australia 21 66 96 108 0.6 1.6 1.8 2.4 10 Belgium 27 64 31 59 0.8 1.5 0.6 1.3 11 Switzerland 150 211 253 58 4.6 5.1 4.8 1.3 12 Finland 27 41 60 45 0.8 1 1.1 1 13 France 31 41 48 37 0.9 1 0.9 0.8 14 Portugal 17 33 31 32 0.5 0.8 0.6 0.7 15 Brazil 0 1 2 32 0 0 0 0.7 16 United Kingdom 16 29 18 24 0.5 0.7 0.3 0.5 17 Ukraine 5 9 18 21 0.1 0.2 0.3 0.5 18 Chile 15 23 21 21 0.5 0.6 0.4 0.5 19 Taiwan 12 23 20 17 0.4 0.6 0.4 0.4 20 Norway 15 17 15 15 0.4 0.4 0.3 0.3 21 Italy 46 21 10 14 1.4 0.5 0.2 0.3 22 Lithuania 1 5 11 13 0 0.1 0.2 0.3 23 Denmark 10 8 19 13 0.3 0.2 0.4 0.3 24 Hong Kong 22 12 13 13 0.7 0.3 0.2 0.3 25 Philippines 1 13 4 12 0 0.3 0.1 0.3 ‘(Z)’ indicates a percent change greater than 500. Updated 17 MAY 2013. www.akbizmag.com

% Change, 20011-2012 -13.6 -12.5 -8.4 -28.1 3.3 -20.4 5 -26.2 (Z) -29.8 12.3 88.1 -77.1 -25.1 -22.8 5.1 (Z) 35.5 17.9 -2.4 -16.4 2.7 32.8 19.5 -29.1 0.7 242.9

February 2014 | Alaska Business Monthly

SOURCE: U.S. Census Bureau

Total U.S. Exports (Origin of Movement) via ALASKA Top 25 6-digit HS Commodities Based on 2012 Dollar Value U.S. Exports by Origin State (Origin of Movement Series). Values in millions of dollars. Percent Change is from 2011 - 2012. Rank HS Description 2009 2010 2011 2012 2009 2010 2011 2012 % Change, Code Value Value Value Value % Share % Share % Share % Share 20011-2012 --- --Total ALASKA Exports and % Share of U.S. Total 3,270 4,155 5,259 4,543 0.3 0.3 0.4 0.3 -13.6 --- --Total, Top 25 Commodities and % Share of State Total 1,972 2,779 3,353 4,269 60.3 66.9 63.8 94 27.3 1 260800 Zinc Ores and Concentrates 610 877 972 796 18.7 21.1 18.5 17.5 -18.1 2 260700 Lead Ores and Concentrates 160 402 495 428 4.9 9.7 9.4 9.4 -13.5 3 30389 Fish, Frozen, Nesoi 0 0 0 378 0 0 0 8.3 0 4 30499 Fish Meat, Frozen, Nesoi 182 270 319 369 5.6 6.5 6.1 8.1 15.7 5 30363 Cod, Frozen 0 0 0 250 0 0 0 5.5 0 6 30390 Fish Livers and Roes, Frozen 0 0 0 215 0 0 0 4.7 0 7 30475 Alaska Pollock Fillets, Frozen 0 0 0 207 0 0 0 4.6 0 8 271019 Petrol Oil Bitum Mineral (Nt Crud) Etc Nt Bio 38 27 125 178 1.2 0.6 2.4 3.9 41.9 9 260300 Copper Ores and Concentrates 64 37 199 169 2 0.9 3.8 3.7 -14.9 10 440320 Coniferous Wood in the Rough, Not Treated 86 114 118 151 2.6 2.7 2.2 3.3 27.8 11 30312 Pacific Salmon, Frozen, Nesoi 0 0 0 147 0 0 0 3.2 0 12 271111 Natural Gas, Liquefied 257 366 210 145 7.8 8.8 4 3.2 -31.1 13 30614 Crabs, Including in Shell, Frozen 82 73 113 126 2.5 1.7 2.2 2.8 10.9 14 261690 Precious Metal Ores & Concentrates, Except Si 0 20 142 108 0 0.5 2.7 2.4 -24 15 30367 Alaska Pollock, Frozen 0 0 0 105 0 0 0 2.3 0 16 30311 Sockeye Salmon, Frozen 114 132 132 89 3.5 3.2 2.5 2 -32.4 17 30339 Flat Fish Nesoi Except Fillets, Livers, Roes 81 95 74 85 2.5 2.3 1.4 1.9 14.6 18 710812 Gold, Nonmonetary, Unwrought Nesoi 151 213 266 82 4.6 5.1 5.1 1.8 -69.3 19 880000 Civilian Aircraft, Engines, and Parts 29 49 33 73 0.9 1.2 0.6 1.6 119.8 20 230120 Flour Meal & Pellet of Fish Crustaceans Etc I 30 46 62 44 0.9 1.1 1.2 1 -29.3 21 270119 Coal Nesoi, Not Agglomerated 30 4 31 31 0.9 0.1 0.6 0.7 -0.7 22 30510 Flours, Meals & Pellts of Fish, For Human Con 20 18 22 26 0.6 0.4 0.4 0.6 19.4 23 30471 Cod Fillets, Frozen 0 0 0 25 0 0 0 0.5 0 24 30351 Herrings, Frozen 38 35 38 23 1.2 0.9 0.7 0.5 -39.7 25 30213 Pacific Salmon, Fresh or Chilled 0 0 0 20 0 0 0 0.4 0 ‘(Z)’ indicates a percent change greater than 500. Updated 17 MAY 2013.

SOURCE: NOAA

TRANSPORTATION

Arctic Shipping and Northern Harbors International port plans span more than a century for Nome By Will Swagel

t may come as a surprise to most Americans—and even to many Alaskans—that the Port of Nome is a very busy place. Between May and December, hundreds of vessels make port calls at Nome. And, driven by such geopolitical trends as high demand for gold and other minerals, commodities transshipment, increased oil exploration, and even international tourism, Nome officials are striving to keep port development ahead of demand. 74

“With the increase in northern shipping, we’re seeing [the Nome region] as the next economic hot spot,” says Denise Michels, Nome’s six-term mayor. “We’re trying to be proactive, instead of reactive.” The Port of Nome’s 2013 Strategic Development Plan calls for a number of projects, some of which are already completed or will be underway in 2014. Called for are the addition of more dock space for varying size vessels both at the Port and Small Boat Har-

Alaska Business Monthly | February 2014

bor, a deep water dock on an extended causeway, uplands development, and lobbying for using Nome as the Arctic staging area for oil spill mitigation or search-and-rescue. Nome has a vital role as a transshipment hub for the entire region, shipping fuel and cargo to towns and villages as far north as Barrow and all the way to Lower Yukon communities. Planners are hoping to dredge the outer harbor deeper to allow larger veswww.akbizmag.com

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Aerial view of the Port of Nome. Photo courtesy of Port of Nome

sels to be serviced at the biggest port north of Dutch Harbor. When Nome officials took their list of legislative priorities to Juneau last year, the cover of their presentation featured an image taken from an October 1907 issue of Nome’s Daily Gold Digger newspaper. The headline read: “Plan Mammoth Harbor for Snake River.” The Snake River winds through the Port and into Norton Sound.

“A big harbor was planned at the time for all the gold and silver mines,” says City Manager Josie Bahnke. “There have been plans for a hundred years to make Nome an international port.”

Alaska’s Most Northern Big Port Joy Baker is Nome’s long-time, plainspeaking harbormaster and was oversee-

Alaska Business Monthly | February 2014

ing Port traffic since 1990 as the city manager’s assistant, even before she got the Harbormaster title in 1997. Last year she was given yet another title, Projects Manager for Port and Harbor Development. Baker says that around 2006, she began to see a significant rise in Port activity. “It started to spike,” she says. “It wasn’t extravagant, but you could see the spikes were there.”

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SOURCE: NOAA

STRATEGICALLY POISED ON THE EDGE OF TOMORROW

LOOKING TO A BRIGHT ARCTIC FUTURE 78

Alaska Business Monthly | February 2014

WWW.BERINGSTRAITS.COM

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Nome saw 30 dockings in 1990. In 2012, 449 vessels (ships and barges) used the port. In 2012, 61 vessels anchored off the harbor, either waiting for dock space to open or because their vessel draft was too deep. Last year, the number of anchored vessels jumped to 150. “We have three different issues going on here in my mind,” says Baker. “We’re trying to meet the demand of our regional fleet and transshipments as a hub facility. And to accommodate that vessel demand—[allowing them] to get in and get their work done and get their materials and heavy equipment and gravel to projects and their cargo and fuel distributed to the communities. The second component is that we’re seeing more support vessels and more private vessels going over the top. We are getting some of the oil exploration research and development traffic. And then there is a third local component, which is the offshore gold rush.” She took a breath. “I see that we will continue to grow on all of those fronts.” From the air, the Port of Nome presents a dramatic footprint—two three thousand–foot long arms of causeway and breakwater—completed in 2006, along with a number of other harbor improvements—jut out into the Norton Sound. Along the east side of the causeway are two open cell sheet pile docks built to serve medium-sized ships and barges. City officials are working to build a third dock—the socalled Middle Dock—located between the two existing docks. Building the Middle Dock is high on the list, with demand on the existing docks described as “overwhelming.” “We need the third dock,” says Baker. “We needed it two years ago.” Baker says Nome already has more than half of the $9.4 million cost in hand, along with a design for the 240foot long Middle Dock—identical to the docks on either side. If the rest of the funds can be secured, construction could start in 2014, she says. Upland development will tie the Middle Dock into the two other docks through additional cargo staging areas.

A Packed Inner Harbor Closer to shore, beyond the causeway and breakwater, through a 150-foot www.akbizmag.com

February 2014 | Alaska Business Monthly

Joy Baker, Nome Harbormaster Photo courtesy of Port of Nome

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Alaska Business Monthly | February 2014

wide opening, scores of smaller boats avail themselves of a number of moorages in the inner harbor. In 2007 major improvements were made, but the work goes on. The inner harbor freezes about a month earlier than the outer moorages. The Port’s Strategic Development Plan lists an inner harbor fleet of approximately 25 fishing vessels; a variety of landing crafts, tugs, and barges working the region; sailboats; subsistence boats; and more than 128 gold dredges—ranging from homemade twenty-foot craft to eighty-foot barges with mounted excavators. Near the mouth of the Snake River, the Port is near completion of a high ramp dock and will be dredging a portion of the moorage basin in the inner harbor/river area. The project, pegged at $4 million, is expected to be in use this year. The high ramp dock will allow the safer and more efficient loading of cargo and heavy equipment—just the kind used by mining operations. Baker says an adjacent boat launch ramp was being used as a makeshift loading ramp, causing a bottleneck. “Now, the high ramp [dock] can be used to move cargo, equipment, and gravel, and the launch ramp can be an actual launch ramp.” The dredging will allow anchoring of lighter draft vessels, like recreational vessels and offshore gold dredges, which might otherwise have to raft against other vessels in places that could impede critical harbor cargo and fuel traffic. “When you have so many little guys, the big guys can have trouble maneuvering,” Baker says. Off the main channel is the Small Boat Harbor, which has a maximum depth of minus ten feet. There are about twenty commercial permit holders operating out of the Small Boat Harbor that fish for herring, red king crab, halibut, and salmon. There are also numerous smaller lighterage barges that transport fuel and cargo to and from coastal and Yukon villages. Then there is the New Gold Rush. Baker says that for many years, a small offshore fleet of thirty- to forty-foot long gold dredges operated out of the Small Boat Harbor. But with high gold www.akbizmag.com

“We’re the only port north of Dutch that can handle medium sized vessels. The larger vessels [anything drafting over twenty-two feet] still have to anchor out—but [their passengers or crew] can come in by small boats or helicopter.” —Denise Michels Mayor of Nome

prices, new lease sales in the area, new recreational mining permits being issued, and the popular Discovery Channel show “Bering Sea Gold” stoking interest in mining, the number of vessels has “skyrocketed” and their size is increasing. “There’s quite a few more [dredges] of all lengths, but a new component has attracted large craft up to 120 feet,” Baker says. “Now we have to raft up these larger vessels and that creates a problem for managing cargo and fuel out of the small boat harbor.” Another group of users of the Port of Nome may be counterintuitive to many—small cruise ships and private yachts. Baker says two German cruise ships regularly call at Nome as one of their Alaska ports, along with several other cruise lines that alternate years in Alaska. She says they have always seen the occasional sailboats at the port, but their numbers are increasing as well. Michels said a lot of what makes Nome valuable to visiting mariners can be found ashore. Nome offers restaurants, retail shops, hotels, internet, and postal and banking services. One can buy fresh vegetables year-round. Alaska Airlines flies in twice a day, a service made more reliable by Nome International Airport’s cross-wind runways. “We’re the only port north of Dutch that can handle medium sized vessels,” Michels says. “The larger vessels [anything drafting over twenty-two feet] still have to anchor out—but [their passengers or crew] can come in by small boats or helicopter.”

System Study Report is to be released for public review online at poa.usace. army.mil/Library/ReportsandStudies/ AlaskaRegionalPortsStudy.aspx. The report, a 50-50 cost share between the US Army Corps of Engineers and the

Alaska Department of Transportation, weighed fourteen possible sites for a deep water Arctic port along three thousand miles of Arctic coast, from the Kuskokwim River to the Canadian border.

Emergency and SAR It’s this wide range of services that make Nome officials confident that a state and federal plan to develop a northern deepwater port in the area will be good for the local economy. Next month a preliminary version of the Alaska Deep Draft Arctic Port www.akbizmag.com

February 2014 | Alaska Business Monthly

“What we’ve said is that all fourteen [of the sites studied] need enhanced infrastructure… The others haven’t been ruled out, but we are proceeding with this to get one project done and then the state could elect to move on to the next one… By the end of 2014, we will have a final [report] ready for the Assistant Secretary of the Army for the Corps of Engineers to sign and send on up to Congress.” —Lorraine Cordova US Army Corps of Engineers, Project Leader

The study builds on previous assessments such as the Northern Waters Task Force, the Arctic Marine Shipping Assessment, and the Institute of the North’s series of workshops.

With northern waters becoming more accessible, the traffic over the Northern Sea Route is increasing. Offshore oil exploration, new or expanded mining, and village development are

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Alaska Business Monthly | February 2014

all contributing to the increase in vessel traffic. With that traffic comes the possibility of an oil spill or the need for search and rescue. The nearest USCG vessel is a week away at Kodiak. Rescue aircraft is an eight hour flight away. The report will recommend that a deep water port be developed at Nome, or at two other points to the north—at Cape Riley or the old US Coast Guard (USCG) LORAN station on Point Spencer at Port Clarence. “We are looking at each of them as stand-alone alternatives and as a combination of one or more or all three,” says Michael Lukshin, a port and harbors engineer for DOT. Lorraine Cordova, project leader for the US Army Corps of Engineers, says field studies were conducted in June and scoping meetings were held in Nome, Teller, and Brevig Mission. More environmental work was performed later in the summer, as well. Economists are analyzing alternative plans for the three sites. “What we’ve said is that all fourteen [of the sites studied] need enhanced infrastructure,” Cordova says. “The others haven’t been ruled out, but we are proceeding with this to get one project done and then the state could elect to move on to the next one.” She notes that a 2010 survey of marine infrastructure needs identified more than one thousand projects. “By the end of 2014, we will have a final [report] ready for the Assistant Secretary of the Army for the Corps of Engineers to sign and send on up to Congress,” Cordova says.

Interest in Port Clarence North of Nome, the former USCG LORAN station at Port Clarence sits on land that the Bering Straits Native Corporation (BSNC) has been seeking since 1976 as part of its ANCSA allotments. Port Clarence had a historical importance as a port of refuge for www.akbizmag.com

19th Century whaling ships, but BSNC shareholders have cultural connections that far predate that, says Matt Ganley, BSNC’s vice president of resources and external affairs. When USCG decommissioned the LORAN station in 2010, BSNC stepped up efforts to acquire the property, hoping to preserve as much of the infrastructure as possible. The station had housing and ancillary buildings for twenty-four people. There is a 7,500foot airstrip, 4,500 feet of it paved. Port Clarence stays ice-free longer than ports farther north and already has deep water anchorages. Ganley says there has been a huge uptick in interest in developing an Arctic port in the last few years, “but before all that was circulating out there, we realized that [Point Spencer] was a significant property in the big picture for the region.” “If you look at a lands status map, all the way from Shishmaref through Norton Sound, the whole coastline is owned by village corporations and BSNC, the area’s regional corporation,” Ganley says. “From a property standpoint and

from a geographic standpoint, the regional corporation and the communities in the region have a lot in the game of what occurs in Arctic waters.” Ganley says BSNC seeks to develop disaster and search-and-rescue response capabilities at the site and staging support for oil and gas exploration in the Beaufort and Chukchi seas. Other possibilities include fuel and equipment storage. Despite the complexities of the land transfer at present, BSNC has developed preliminary build-out plans, completed a draft economic feasibility study, and has been consulting with industry and private firms, such as Crowley Maritime. “Along the coastline, people have been at risk for a long time,” Ganley says. “Hundreds of thousands of gallons of fuel are shipped through the Bering Straits and to the villages now. Fortunately, we have companies like Crowley Maritime, Northland Services, and others that know the area and are very good at what they do.” As Arctic ship traffic increases, so does the likelihood of less experienced and less careful shippers operating in

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the area. “We have been living with risks, but we really don’t even have the capacity to respond to those adequately,” Ganley says.

Regional Accord Nome’s Mayor Michels’ day job is director of transportation of Kawerak, Inc., a not-for-profit service organization, where she works for the development and implementation of strategies for transportation and public infrastructure in the Arctic. Her two jobs enjoy a lot of synergy, she says. “Last year, the City of Nome and Kawerak went to Washington, DC and provided federal priorities to lobby for,” she says. “Our interests lined up with each other.” Bahnke says Nome has supported BSNC’s pursuit of the Port Clarence LORAN site. Development in its neighborhood will only increase the demand for the supplies and services—like groceries and jet aircraft services—that only Nome can provide. “It’s only going to complement what our operations already are in Nome,” she says.

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Meeting yours is everything else. February 2014 | Alaska Business Monthly

SOURCE: NOAA

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Alaska Business Monthly | February 2014

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“I’ve had long discussions with Denise [Michels] on this, I think the region and the state can really benefit from the planned development of Port Clarence and Nome in a complementary way.” —Matt Ganley Vice President of Resources and External Affairs, BSNC

Harbormaster Baker says there could be a redirection of some of the fuel that is now being stored in Nome and redistributed to the Upper Arctic to be routed out of a fuel storage facility at Port Clarence. But instead of viewing such a development as competition, she sees that as a change that could help economic issues for everyone. “If they can save money for those upper Arctic coastal communities, like Kotzebue, Point Hope, Wales and Diomede—we’re all for that because fuel costs are already too high in our region,” she says. Fuel storage in Nome will still be at capacity for servicing the regional communities and the home-ported vessel fleets, as well as resupply for the regional and Arctic marine traffic. Nome officials have been advocating for the USCG to maintain a fast response vessel at Nome. But Port Clarence and Nome are not the only Arctic communities being considered. The USCG has spent the last three years testing three communities as possible forward operating bases: Nome in 2010, Barrow in 2011, and Kotzebue in 2012. BSNC’s Ganley says his company is hoping that being able to stage fuel and heavy equipment at Port Clarence could help industries develop in the region— mining in particular. “I’ve had long discussions with Denise [Michels] on this,” Ganley says. “I think the region and the state can really benefit from the planned development of Port Clarence and Nome in a complementary way.”  Alaskan author and journalist Will Swagel writes from Sitka. www.akbizmag.com

February 2014 | Alaska Business Monthly

FISHERIES

Alaska Seafood Industry Creates Jobs, Opportunities

Photo courtesy of the Alaska Seafood Marketing Institute

Opilio crab ﬁshing in the Bering Sea.

Facilitating growth in business, total economic output By Vanessa Orr

ulie Decker has been commercial fishing for nineteen years; her husband, Gig, has been a commercial fisherman for forty years, starting soon after he graduated college. Each summer, they take their two children, ages twelve and fourteen, out on their boat to gillnet for salmon. For the Deckers, fishing not only helps them earn a living, but provides a type of lifestyle that they couldn’t find anywhere else. “There are a lot of benefits—you work mainly for yourself and you have a flexible schedule to a degree,” explains Julie Decker, who also works as the development director for Alaska Fisheries Development Foundation, Inc. “As small boat commercial fishermen, we get to

have our family on board, which is really, really nice. It’s a great way to raise a family. And of course, you get to work outside in a beautiful environment— that’s a huge plus.” While happy to live a lifestyle that most people don’t get to experience, Decker adds that it can be a little more volatile than most jobs. “When the money is good, it’s good, but when it’s not, it’s not,” she adds. “It’s similar to farming in that you’ve got boom and bust seasons. Those who are the most successful these days are the people who diversify, working different fisheries at different times of the year. That way, if one fishery is bad because of returns, or gear conflicts, or even sea otters, they’re not relying on it 100 percent.”

Alaska Business Monthly | February 2014

Just as fishing helps to support the Decker family, the seafood industry helps support the state of Alaska and its residents. According to a report released in August of 2013, “Economic Value of the Alaska Seafood Industry,” published by the Alaska Seafood Marketing Institute (ASMI) in 2011, the industry directly employed 63,100 workers in the state, making it Alaska’s largest private sector employer. Roughly one in eight workers earned at least part of their annual income directly from the seafood industry, producing $4.6 billion worth of wholesale seafood and resulting in an estimated $1.7 billion in labor income. Jobs and income created as a result of business and personal spending conwww.akbizmag.com

Exporting Alaska’s Harvest In 2011, the combined value of Alaska seafood exports and the retail value of Alaska seafood sold in the United States totaled an estimated $6.4 billion. But one of the most important aspects of these exports is their ability to bring money back into Alaskan communities. “The seafood industry is an avenue for so many local jobs and incomes; in many areas, it is one of the only basic sector industries that generates a product that brings money in from outside,” explains Marcus Hartley, vice president and senior economist, Northern Economics. “This is important to the economic development and economic well-being of a region because you can’t do that well in an economy that just depends on providing things for yourself and your neighbors. You need to bring money in from the outside to prosper from an economic perspective. “For example, the state began to prosper when it began developing the oil industry; it’s the same with seafood and mining,” he adds. “Seafood doesn’t just help one location like Anchorage or Juneau, either; its benefits are felt throughout the entire state.” The benefits of the Alaska seafood industry can be seen in fishing villages across the Final Frontier. “You really see the dollars moving around the community when the fishermen come to town to buy fuel, groceries, and hardware,” says Decker, who lives in Wrangell. “Over the past five or so years, our town was able to build a Marine Service Cenwww.akbizmag.com

Photo courtesy of the Alaska Seafood Marketing Institute

nected to the Alaska seafood industry (the multiplier effect) raises these numbers even higher. Including multiplier effects, Alaska’s seafood industry is the basis for 77,400 jobs in the state, providing $2.2 billion of labor income and $6.8 billion in total economic output in 2011. “What’s pretty cool is that because this is a renewable resource, Alaska will continue to see billions of dollars in economic activity happening year after year as long as we continue to manage the fisheries,” says Tyson Fick, communications director, ASMI. “When Alaska became a state, sustainability was written into the State Constitution about the management of natural resources. In Alaska, fish come first.”

Longline cod ﬁshing in the Bering Sea.

ter that does haul outs for boats. Now we’re keeping more boats here and seeing activity year-round, which is very good for the community. Part of that has to do with the salmon industry coming back; things are more profitable, so people are beginning to invest more in their vessels.” According to Decker, these investments include everything from boat repairs to more efficient deck layouts, improvements in quality like better insulated holds, new energy efficient engines, energy efficient upgrades, and even completely new vessel construction. “This increased demand has created a shortage of these types of jobs

and businesses in order to fill the demand, which is being seen in places like Homer, Seward, Kodiak, Wrangell, and Ketchikan,” says Decker, who has been working with the University of Alaska, the Alaska Department of Labor, and others to create a “Maritime Workforce Development Plan for Alaska” as one step to help facilitate growth in these businesses. Community improvements are also being seen in the rural Alaskan communities along the Bering Sea as a result of the Community Development Quota (CDQ) Program, in which six groups representing sixty-five fishing communities are allocated a portion

February 2014 | Alaska Business Monthly

Photo courtesy of Julie Decker

The Decker family ﬁshes together every summer on F/V McCrea, from left, Helen, Julie, Sig, and Gig Decker.

of the groundfish and crab fisheries. The federal program, which was implemented in 1992, was part of an allocation that divided up Bering Sea Pollock fishing among shore-based and at-sea catchers and processors, as well as fishing communities that were no more than fift y miles from the Bering Sea and that otherwise had no access to the groundfish resources. Over time, this program expanded to include all federally managed fisheries in the Bering Sea and the Aleutians. “I think that if you asked anyone in these rural communities, they would say that they are better off now,” says Hartley of the CDQ program, which has boosted the economies of these areas and raised their standard of living. “There are a lot of people now engaged in the fishing industry that would not have been without the program. Jobs and scholarships have been made available. And those CDQ groups that didn’t originally have boats or the money to buy them have now earned enough from leasing their quotas to other fisherman and processors that they are able to buy their own harvesting vessels to take ownership of these resources. “The Coastal Village Regional Corporation is a great example,” he continues. “At one point, this CDQ group, which is made up of about fifteen to twenty communities in the Bethel area, owned 50 percent of the largest single fishing 88

company in the United States, and that all came about as a result of the CDQ program. They were also able to build a large salmon processing plant in Platinum, Alaska, that does all of the salmon processing for essentially the entire Bethel region.” In addition to jobs, the CDQ program has resulted in a number of other benefits for communities, including the development of fishing infrastructure; establishment of educational, training, and scholarship programs; and investments in research and development of new and existing fisheries. And not only do seafood exports help Alaskans, but they create jobs in other states as well. The Alaska seafood industry directly accounted for 94,000 workers who caught, processed, managed, sold, cooked, or served Alaska seafood in the United States, earning $2.8 billion in 2011. Including multiplier effects, Alaska’s seafood industry is the basis for 120,000 US jobs, employing more than 165,000 people across the nation, and creating $6.4 billion in labor income.

Building and Maintaining a Market One of the keys to the success of Alaska’s seafood industry is making sure that people know the benefits of Alaska products. While Alaska produces 95 percent of all salmon caught in the United States, wild Alaska salmon only represents about 23 percent of the total US salmon supply, with most of the nation’s salmon coming from foreign farms. “Our job is to help people understand that they should choose natural wild fish from Alaska, and luckily, we have a great story to tell from a great place,” says Fick. “There is a lot of interest in Alaska and in wild salmon, which is one of the healthiest forms of protein in addition to being delicious.” To this end, ASMI has programs in place for domestic food service, domestic retail, and public relations. The agency also has six international offices that serve twenty countries outside the United States, including an office that opened a year ago in Brazil. “We have a broad portfolio of fish—salmon, halibut, cod, black cod, crab—that we can provide throughout world,” says Fick. “And a lot of times, we have things to offer that other countries don’t. For

Alaska Business Monthly | February 2014

example, a lot of our fish was going to Spain, Portugal, Norway, and China and being turned into salt cod that was then shipped into Brazil. We wanted to respond to Brazil’s growing interest in direct imports and also wanted to introduce Brazil’s growing middle class to wild salmon as an alternative to the increasing amount of farmed salmon coming from Chile. “The market for farmed salmon continues to grow, which mean that less of the total supply of fish is being provided by Alaska,” he added. “In a global context, we are at about 12 to 14 percent of the market when you include farmed salmon, despite having the best salmon in quality from the most pristine waters.” Decker has seen the change that this marketing has made first-hand. “We came through a tough period in the late 1990s and early 2000s with salmon; the industry was not prepared for the competition that came from farmed salmon,” she explains. “We had to play catch up in quality, product development, and marketing. I think we’re in a pretty good place now; we’ve pretty much caught up and differentiated ourselves from farmed fish in a positive way. Prices have come up, there’s better overall quality, and the industry is in the process of developing a lot of different products. We’re no longer just putting it in a can and calling it good.” Last year, ASMI’s budget was approximately $22.5 million for marketing, which it uses to promote and maintain Alaska’s market niche. “We have to differentiate our product and continually improve quality—we can’t just catch more to make more money; it’s all based on biology,” says Fick. “Luckily, we have the best fish and fishermen in the world, so it’s a good story to tell.” “I think the future is bright,” adds Decker. “In every fishery, there will be bumps along the road—whether in the biology of the species, management structure, unforeseen environmental issues, or market pricing—but in general, things look good. But we always have to look at bettering ourselves and our industry, because the rest of the world is doing that.”  Vanessa Orr is the former editor of the Capital City Weekly in Juneau. www.akbizmag.com

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MINING

ALASKA EXPORTS COPPER THROUGH SKAGWAY Yukon Territory Minto Mine booms with new ﬁnds By Dimitra Lavrakas

hen the mighty Yukon River freezes up this winter, the trucks will roll again. They will rumble down the Klondike Highway that connects the Yukon with its historic seaport in Skagway in Southeast Alaska. Called the “Gateway to the Klondike” since the Klondike Gold Rush of 1898, Skagway’s deep-water port still sees ore from the Yukon shipped Outside, much like the gold of over a century ago. Vancouver-based Capstone Mining Corporation’s Minto Mine, just south of Carmacks and across the Yukon River in Canada’s Yukon Territory, has its concentrates trucked to Skagway and on to smelters in Asia for treatment and sale.

The company projects the Minto Mine will operate until 2022. “Minto operates year-round; however, the shipping schedule is seasonal and does vary,” says Cindy Burnett, vice president of investor relations and communications for Capstone Mining Corporation. “We cross the Yukon River in summer using a barge and in winter using an ice bridge, but during the shoulder freeze and thaw we cannot ship for about six weeks in the spring and six weeks in fall. During these periods we stockpile material on-site for shipping once we can get trucks in and out again.” The huge trucks are a familiar sight in Skagway, rolling down State Street to the city’s Ore Dock.

“During trucking season we average about five trucks a day through Skagway,” Burnett says. The White Pass & Yukon Route Railroad once transported ore from Yukon

The Paciﬁc Challenger at the Port of Skagway’s Ore Dock. © Dimitra Lavrakas

Alaska Business Monthly | February 2014

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mines to the port but had to suspended operations in 1982 when worldwide mineral prices took a dive and Yukon mines closed. Reopened in 1988 as a seasonal tourism operation, it has never returned to transporting ore, although in the last few years there has been some discussion on it but to no conclusion. In 1978, the South Klondike Highway opened. A spur off the Alaska Highway, it was only opened seasonally until 1986 to accommodate trucking of ore from the Yukon’s Faro Mine. But all roads still lead to Skagway’s deepwater port.

No Lack of Demand, or Supply It’s a goodly amount of product that comes though Skagway, says Burnett. “In 2012, we shipped just over 43,000 dry metric tonnes [dmt] of copper concentrate through Skagway,” she says. “In 2013, we have only reported through the first three quarters. As of September 30, we have shipped just under 30,000 dmt.” The Minto Mine began commercial production in October 2007. It is spread over a series of high-grade areas, interspersed with large deposits of low-grade

material. The highest-grade deposits are mined sequentially in a series of small pits supplemented with additional ore from underground, which began this year, according to the company. An active exploration program since start-up has met with considerable success. Successive pre-feasibility studies have been completed, labeled Phase I to IV. Each represents the addition of new reserves and mine life and will enter the permitting with exploration success. “The deposits included in the current life of the mine plan are Minto North; Minto South, which incorporates the deposits formerly known as Area 2/118, Copper Keel, and Wildfire; Minto East; and Ridgetop,” Burnett says. “The Minto Main pit was mined out in 2011.” Burnett points to the universal need for copper for essential uses in daily life as a safety net for the mine’s future operations. “All of the copper concentrate from Minto, since the start of operations in 2007, has gone to copper smelters and refiners in Asia, where it is refined into a pure metal product,” Burnet says. “Primary end uses for copper are electrical,

electronics and communications, construction, transportation, and industrial machinery and equipment. “Copper is the best non-precious metal conductor of electricity, it plays a key role in worldwide information and communications technologies, and is one of the materials of choice for plumbing, taps, valves, and fittings,” she says. The International Copper Study Group, based in Lisbon, Portugal, released its “World Copper Fact Book 2013” that stated, “Refined copper usage in 2012 reached 20.5 million tonnes. China was also the largest consumer of refined copper in 2012, with apparent usage of over 8.8 million tonnes.” Formally established as an autonomous inter-governmental organization in 1992, following a series of ad hoc meetings sponsored by the United Nations in the 1980s, the International Copper Study Group “serves to increase copper market transparency and promote international discussions and cooperation on issues related to copper.” The United States is the fourth-largest producer of copper in the world.

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February 2014 | Alaska Business Monthly

Storage Lease Extended In September, the Alaska Industrial Development and Export Authority extended Capstone’s storage lease at the Ore Dock to March 2023. “We are very pleased to extend this lease with Capstone Mining,” said AIDEA Executive Director Ted Leonard in a press release. “The company is an excellent tenant, partner, and corporate citizen. This is another sign that our partnership with industry and the community of Skagway continues to produce positive results.” AIDEA, a public corporation of the state, promotes, develops, and advances the general prosperity and economic welfare of the people of Alaska. Capstone was first tenant at AIDEA’s refurbished terminal when it began shipping copper concentrates through Skagway in 2007. At the time, AIDEA constructed twenty-five thousand square feet of storage capacity and a year later added ten thousand square feet to accommodate Capstone’s need for increased space. But time and use has degraded the facility, and it’s in need of some work.

Ore Dock Upgrades Seeing the mining industry in the Yukon blossoming again, AIDEA announced in July 2013 that its board had approved an expansion of the Skagway Ore Terminal. “Expansion of Skagway Ore Terminal is another sign of our commitment to grow the facility in partnership with the community and have it used in the long term as the Gateway to the Yukon,” said Leonard in a press release. “We are very pleased that because of the support of Governor Parnell and the Legislature, AIDEA has the financial tools to expand the capability of the terminal. New jobs and economic growth for Skagway will result.” The initial announcement pegged construction on the $7.5 million expansion project to begin last summer, with project completion expected in the first quarter of 2014. However, in late December, Karsten Rodvik, director of external affairs for AIDEA, said, “At this time, nothing is being done, but we expect to kick off the project this winter.” The Ore Dock serves a dual purpose in Skagway: it is used to dock cruise ships

during the day, with tourists walking under the ore loader to get into town, and at night, it’s used to shift ore onto the barge headed across the Pacific. According to the Municipality of Skagway’s Port Improvement Plan, Phase I aims to complete the existing ore storage facility by rehabilitating the feed conveyor and the feed reclamation conveyor, upgrading the dust control system, and modifying the power supply. Phase II would expand the port site by creating uplands with a new bulkhead structure to increase the Ore Dock’s capacity to serve ore vessels and cruise ships simultaneously. Phase III would see the old ore loader replaced with a new one built within a sheet pile bulkhead site. The loader would then be in a better location to do its job efficiently. And Skagway will remain what it has been for over a hundred years, the primary port for the Yukon Territory.  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

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Alaska Business Monthly | February 2014

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Legal Speak

By Renea I. Saade

Read the Fine Print It can save you time, money, and grief!

n average consumer encounters written contracts on a regular basis. Transactions over the internet typically require you to read and agree to the terms and conditions that govern the access to data being granted or to confirm that you are waiving certain rights to privacy. Every cell phone company and fitness facility requires their customers to sign lengthy written agreements that set forth the rules that govern the new relationship. Although laws have been passed to ensure that the font used in such agreements meets a minimum size requirement (so we can actually read it without a magnifying glass), the language is still often convoluted and so plagued by legal jargon that it can be difficult to determine what you agreed to do. Now that the holiday and year-end dust has settled, you may find yourself surrounded by new gym membership contracts, warranty agreements for new appliances, extended repair agreements for new electronic gadgets, or subscription agreements for new service and delivery orders. If you do, be sure to read the fine print in those contracts. In fact, you should closely read any contract before signing it. By taking the time to read at least the key terms and conditions, you can save yourself a great deal of time, money, and grief in the future. Key terms to look for include:

Promises: Often the devil is in the details—your rights and remedies will turn on exactly what words are used. It is easy to skim and take away what you believe is the reasonable interpretation and intent; however, the true meaning and effect of the sentence may be something very different. To ensure you fully understand what the deal is, carefully read the sentences that describe what the company promises to www.akbizmag.com

do or give you as well as any exclusions and expiration dates. Notice Requirements: If you need to invoke a warranty or repair promise or demand that the company comply with their obligations, you usually need to make the request in a particular way and send it to a specific address. Similarly, if you decide you want to cancel a membership or service, you usually must provide advance notice of your intent and send the cancellation notice in a particular format to a specific address. While companies must be reasonable in enforcing these notice requirements, it will save you a lot of time, energy, and frustration if you understand the requirements and comply with them the first time around. Understanding your notice requirements will also help you avoid paying for more services or fees than you need to. I am sure I am not the only person who has had to pay for an extra month of membership because I failed to cancel before the beginning of a billing cycle. Dispute Resolution: Most contracts contain language that sets a procedure and deadline for resolving disputes. Some require a face-to-face meeting or mediation before you can file a claim in court. And, some contracts indicate parties must arbitrate rather than go to court.

Reasonable Conclusions Hopefully, being more aware of your rights and obligations, you will be able to quickly sort out any issues with the company. But if your talks break down, there are many organizations, governmental agencies, legal concepts, and laws that protect consumers against unfair and deceptive business practices. You can file a complaint with the local Better Business Bureau, a state or local government consumer protection unit,

or a court of appropriate jurisdiction. Most states have consumer protection statutes such as “lemon” laws that impose legal obligations on the manufacturers and, in some cases, sellers of vehicles, and “unfair trade practices acts” applicable to most companies that engage in commerce. These laws allow consumers to collect punitive damages and attorneys’ fees if they prove that a company violated their legal obligations. In Alaska, we also have a common law concept known as the “implied covenant of good faith and fair dealing” that is inherent in every contractual relationship and provides the same type of recovery. Whether or not a company has violated this implied covenant is judged on a “reasonable person” basis. That is, would a reasonable person conclude that the company did not act in good faith or deal fairly with the consumer? Again, many disputes can be avoided if both sides enter into a transaction with the same expectations and a clear understanding of the key terms of the deal. Thus, while it certainly won’t be the most fun thing you do, reading those consumer contracts will be a good use of your time.  Renea I. Saade is a Partner with law ﬁrm Stoel Rives LLP. She assists companies with their contract disputes and employment law needs. She may be reached at risaade@stoel.com or 907-277-1900. Please note this article is provided for educational purposes and does not constitute legal advice.

February 2014 | Alaska Business Monthly

FINANCIAL SERVICES

Wells Fargo Alaska Commercial Banking Manager Sam Mazzeo, Peak Oilﬁeld Service Company President Michael O’Connor, Wells Fargo Principal Business Relationship Manager Chris Horton, and Bristol Bay Native Corporation CEO Jason Metrokin after the announcement of BBNC’s acquisition of Peak, with lead ﬁnancing provided by Wells Fargo.

Alaska Lenders O Finding Good Borrowers Lending opportunities present growth for Alaska businesses By Tracy Barbour 94

Alaska Business Monthly | February 2014

n October 31, Bristol Bay Native Corporation (BBNC) completed the largest, most technical transaction in its history. It acquired Peak Oilfield Service Co., thanks to commercial financing from Wells Fargo. The term loan supported a strategic acquisition for BBNC, which is owned by 9,400 Alaska Native shareholders in Southwest Alaska. BBNC has engaged in business in the oilfield service industry for a number of years and is a staunch advocate of responsible resource development. Peak—which provides field support services on the North Slope, Cook Inlet, and in North Dakota—has a strong safety culture that produces a loyal workforce and happy customers, according to BBNC President and CEO Jason Metrokin. www.akbizmag.com

“Peak Oilfield is a success story in Alaska, and we’re proud to have them as a part of the BBNC family,” he says. “Peak will significantly contribute to BBNC’s mission, Enriching Our Native Way of Life.” Metrokin praises Wells Fargo for making the transaction a success. “The collective team at Wells Fargo was highly engaged and very professional during our acquisition process,” Metrokin says. “The breadth of resources Wells Fargo brought to the table were uniquely qualified to meet our needs.” Alaska’s financial institutions offer the gamut of commercial loans, including real estate, working capital, equipment, and business acquisition and expansion financing. They also make bank portfolio loans, extend lines of credit, and work with other entities that facilitate financing, such as the Small Business Administration, Alaska Industrial Development and Export Authority, Bureau of Indian Affairs, US Department of Agriculture, and Alaska Housing Finance Corporation. Commercial loans not only help businesses thrive and expand, but they also have a broader impact on the state’s economy, according to Stacy Tomuro, a vice president with First National Bank Alaska’s Commercial Lending Division. For example, lending money to businesses that aren’t holding enough cash to buy goods and services from other Alaska businesses injects immediate cash into the economy. Financing equipment and real estate gives buyers more purchasing power if they only need to make a 20 to 25 percent down payment. Sellers, in turn, can reinvest the cash in Alaska’s economy.

Eager to Make Good Loans In general, the environment for commercial loans is very competitive now, and banks—coming out of the recent recession—are eager to grow loans again, according to Wells Fargo Alaska Commercial Banking Manager Sam Mazzeo. This has made for a very attractive environment for creditworthy borrowers. “In the last three years, the terms have become very competitive, as banks are looking for good borrowers, good projects, and good places to lend money,” he says. Wells Fargo has a broad array of commercial lenders that cover all types of commercial loans and lines of credit, www.akbizmag.com

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February 2014 | Alaska Business Monthly

Photo courtesy of Northrim Bank Photo courtesy of Wells Fargo

Vice President, Commercial Loan Unit Manager and In House Counsel Michael Martin of Northrim Bank

Photo courtesy of FNBA

Wells Fargo Alaska Commercial Banking Manager Sam Mazzeo

Stacy Tomuro, a vice president with First National Bank Alaska’s Commercial Lending Division 96

as well as equipment finance and asset-based lending specialists. For 2012 and 2013, the bank expected to make nearly $1 billion in commercial loans to Alaska businesses, Mazzeo says. “That kind of capital is critical to being able to support existing businesses, which, in turn, is the engine for employment and overall gross product for the state of Alaska,” Mazzeo says. Incidentally, Wells Fargo is expanding its business banking team in Alaska to include more specialists in equipment financing and SBA loan programs. Northrim Bank is also constantly searching for good lending opportunities. The bank’s business lending team is well equipped with local industry insight, solid business connections, and the ability to present creative financing options, says Vice President, Commercial Loan Unit Manager and In House Counsel Michael Martin. “We are engaged with our customers’ business, taking an innovative approach to their financial needs and objectives,” he says. In today’s economy, every business is unique, Martin says. Financing needs are complex and constantly evolving, which is why Northrim strives to offer flexible terms and out-of-the-box, nontraditional financing for a broad range of industries. A prime example is Sitnasuak Native Corporation (SNC) and its recent commercial loan with Northrim. The Nome-based company worked with the bank to secure long-term financing to acquire Fidelity Title Agency of Alaska (in Anchorage) and Mat-Su Title Agency (in Wasilla). “We are very interested in fixing our loan rates whenever possible, given the forecast for higher rates in the future,” says CFO Tom Delamater. “Consequently, we chose to take out a longterm swap contract for the duration of our loan. This effectively fixed our rate for the full term of the loan.” SNC looks long and hard at its balance sheet before taking on any debt, Delamater says. The company always wants to maintain a position of financial strength, so it never acquires more debt than it needs or can afford. That’s why Northrim’s creative financing was ideal for SNC. Delamater explains: “This particular loan replenished a portion of investment purchase price, enabling us to maintain the working capital required to meet near-term business goals. This

Alaska Business Monthly | February 2014

also puts our investment in the position to pay for a significant portion of the initial purchase price with cash flow from current and future cash flows.” SNC considered a number of institutions to meet its financing needs, but Northrim provided the best options. “They delivered,” Delamater says. “They are a great company to do business with.” Like Northrim, First National Bank Alaska has a community approach to lending that is focused on making good, high quality loans and keeping capital well above regulatory requirements. This ensures the bank has plenty of money to lend, regardless of how the local economy is doing, Tomuro says. “We take a lot of pride in always having enough money to lend and thank our customers for having the trust in us to be there when they need us most,” he says. First National is also proud of making Forbes magazine’s list of America’s Most Trustworthy Companies for the past two consecutive years.

Lending Trends There are a number of trends taking place in Alaska’s commercial lending industry. For instance, Mazzeo has noticed a considerable increase in merger and acquisition financing in the past few years. What’s driving the upturn? It could be related to baby boomers. “In general, baby boomers are retiring, so successful mom-and-pop businesses are looking for retirement strategies,” Mazzeo says. “If they’re not turning their business over to their children, they’re generally selling their business. The mid-size businesses in America are looking to acquire successful businesses that can generate sustainable cash flows.” At First National Bank Alaska, some of the most common requests are for working capital and real estate financing to support business growth, according to Tomuro. He’s also seeing more financing activity in oil field services, health care industries, community development, and multi-family housing. The increase in multi-family housing financing is understandable, given the tight rental market. National Cooperative Bank (NCB)— a unique lending source for memberowned entities—has seen a growth www.akbizmag.com

in financing for the retail industry, according to Anchorage-based Earl Carson, a vice president of NCB’s Commercial Banking Group. NCB offers commercial loans and lines of credit, real estate loans, and SBA loans for cooperatives and member-owned entities. The bank, which primarily does lines of credit, serves purchasing cooperatives, housing co-ops, Alaska and Native American enterprises, community health centers, and charter schools. NCB has provided financing for projects ranging from Class A office and retail space to Chester Park Cooperative senior housing in Anchorage.

Key Qualifying Factors Typical qualifying standards for commercial lending revolve around the Five C’s of credit: character, capacity, capital, condition, and collateral. “The guy should have some type of track record,” Carson says. However, that doesn’t mean potential borrowers with relatively short track records can’t secure financing if their credit history, assets, and other documentation justify it. Of course, financial

reports done by accountants hold more weight, especially if they’re audited. Carson says some people try to “phony up” documentation, which he ultimately detects. “I’m in the business of ferreting out who’s stretching the truth,” says Carson, who has worked in the industry for more than forty years. Tomuro of First National focuses on two overall qualifying factors: company management and fi nancial position. First and foremost, he strives to get to know the company by understanding what the business objectives are of its owners and management. Having good, quality management with a track record of good performance is very important to Tomuro because he sees banking as a partnership. “If I can’t reasonably meet the company’s current and future objectives, then I am not doing them a service just by lending to them on a transactional basis,” he says. In terms of financial position, Tomuro evaluates whether the company is sufficiently capitalized to be in a position to meet its objectives. Does it have enough working capital to support sta-

ble operations or enough cash to make a down payment when financing equipment or real estate? A company needs to try and keep its total debt to equity within reason, which will depend on the ownership structure, industry, and other factors. Tomuro adds, “A good lender will be able to identify this very quickly, so think carefully about how you finance company assets.” It boils down to management and relationships, Tomuro says. He adds, “In the long run, it’s about relationship banking.” Mazzeo expresses similar thoughts. He says it’s essential for companies to have a good relationship with a financial institution that can satisfy all of their needs. More specifically, they need a relationship with a commercial banker that understands their business and their goals. “They should establish that relationship ahead of time, so they’re not starting at ground zero when they need credit,” he says.  Former Alaskan Tracy Barbour writes from Tennessee.

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February 2014 | Alaska Business Monthly

OIL & GAS

Grady Fischer in the driller chair inside Parker Drilling Co.’s Rig No. 273 on the North Slope.

Parker Drilling’s Arctic Alaska Drilling Units Rigs No. 272 and No. 273 help BP move forward

By Julie Stricker

t was a typical winter day in February 2013 on Alaska’s North Slope when Parker Drilling’s Rig No. 272 started its inaugural journey from the Crazy Horse Pad in Deadhorse to its first drilling site. It was minus forty degrees Fahrenheit—not counting wind chill, which was a numbing minus sixty. Visibility was limited. The rig was moved over 98

the fragile tundra via an ice road, which blended in so well with the allwhite landscape that a crew of spotters was needed to walk alongside the rig to help the driver stay on route. The spotters were rotated out after ten minutes to limit their exposure to the frigid conditions. It takes a special brand of people, and specialized training, to work in

Alaska Business Monthly | February 2014

such extreme conditions, but as anyone knows who has tried to start a car left in a Fairbanks parking lot too long in midwinter, the design of the equipment used in arctic conditions is equally important. That’s why BP Alaska turned to Parker Drilling Co. for two state-of-theart drilling rigs, No. 272 and its sibling, No. 273. The initial cost of the two rigs was estimated at $385 million. www.akbizmag.com

The rigs were delivered to Alaska in 2011 and after some modifications went into production late in December 2012 and February 2013. Rigs No. 272 and No. 273 are called Arctic Alaska Drilling Units and were designed and engineered specifically for the harsh climate and sensitive environment of Alaska’s North Slope oil fields. Parker Drilling was founded in 1934 by G. C. Parker, who pioneered the use of diesel electric-powered drilling rigs. A decade later, its rigs were being used in Canada and Venezuela. It went public in 1969. Over its eighty-year history, Parker Drilling has worked around the globe, from the Peruvian jungle to Oklahoma, the former Soviet Union, China, and Turkmenistan, constantly working to refine and enhance the technology of its rigs. Parker Drilling also provides rental tools and project management services to the energy industry. Its rig fleet includes twenty-three land rigs and two offshore barge rigs, deployed around the world. “We have a legacy of successfully ramping up operations in some of the most remote areas of the globe, and we use this expertise to help our customers reduce operational risks and costs,” Dixon says.

Extreme Experience The choice of Texas-based Parker Drilling to design and build the rigs was based on the company’s decades of experience in extreme environments. “Parker has decades of experience in operating successfully in extreme climates and under the most challenging Arctic conditions, including helping our customers successfully achieve world records in extended reach drilling operations,” Parker Drilling spokeswoman Stephanie Dixon says. “Our unique expertise positions us well to create comprehensive, effective solutions from both an equipment and operations standpoint. We draw upon this experience constantly as we design our rigs and work to continually improve our processes.” www.akbizmag.com

Arctic Innovations The company has brought many innovations to Arctic drilling, such as new rig designs, drilling technology, and new systems to move the rigs to new sites. It also has set numerous records for deep and extended-reach drilling and maintains a strong focus on safety. Parker Drilling has a long history in Alaska’s oil fields. Parker introduced a winterized rig on wheels for a Prudhoe Bay operation in 1978 and in the early 1990s built the massive, environmentally sensitive Rig 245 specifically designed for Alaska’s North Slope. “The two Parker rigs modernized our fleet with new features that target increases in crew safety and efficiency in our drilling operations,” says BP Alaska spokeswoman Dawn Patience. “Adding the Parker Drilling rigs to our fleet advanced our efforts for light oil development at Prudhoe Bay and Milne Point. The new rigs are more high tech and the driller can control the activity

with a joystick and multiple computer monitors.” According to Parker Drilling, both rigs have a rated drilling depth of eighteen tousand feet, 1,800 horsepower draw-works (the rig’s primary hoisting machine), and two mud pumps rated 1,600 horsepower apiece. Safety for workers and the delicate Arctic environment is a key part of the rig’s design, Dixon says. “First and foremost is ensuring the safety and well-being of our team members, customers, and partners working in such harsh conditions,” Dixon says. “Ensuring the well-being of this important and sensitive ecological environment is also critical.” The rigs are engineered for safety in the North Slope’s harsh environment, with zero-discharge capabilities and a modular design that allows workers to transport the rig in three fully enclosed mobile units.

AADU Expertise “As Rig 272 goes to work, we continue to build upon Parker’s history of achievement in supporting Arctic exploration and development,” said Gary Rich, president and CEO of Parker Drilling in a media release. “From delivering drilling solutions in the world’s most extreme environments to improving efficiencies in more conventional settings, we are focused on bringing proven practices and innovative approaches that transform our clients’ ability to reach their objectives safely and reliably. “With both AADU rigs now operating, we expect to demonstrate a new level of safety and performance in this important region,” Rich said. “We look forward to working with BP and other operators to responsibly access the energy resources of the North Slope and are committed to leveraging the expertise we’ve gained through the AADU rig project to benefit our clients around the globe.” Parker Drilling’s eight decades in the global drilling market has given it insight into industry needs, Dixon says. “We are focused on helping our customers consistently reduce their operational risks and costs by providing innovative, efficient, and reliable solutions that help them realize their business objectives,” Dixon says. “This is at

February 2014 | Alaska Business Monthly

the core of our mission in all aspects of our work, whether we are operating and maintaining a rig, providing consultation to customers on potential new-builds, mobilizing equipment, providing rental equipment, or helping our customers achieve world records in extended reaching drilling operations.”

Augmenting BP’s Increased Investment In Alaska, the rigs augment BP’s importance to the state economy. BP is one of the largest oil producers in Alaska and BP-operated oilfields account for twothirds of total Alaska production, which fuels 90 percent of the state budget. In 2012, BP had a $1.8 billion operating budget in Alaska and employed 2,300 people, 81 percent of whom were Alaska residents. It paid $2.8 billion in taxes and royalties on a gross production rate of 477,000 barrels of oil equivalent, a net production rate of 142,000 barrels of oil equivalent. The new rigs bring BP’s total onshore rigs to seven, and the company plans to add two more by 2016. The rigs are ex-

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pected to add two hundred jobs on the North Slope and increase investment in Alaska over the next five years. While the rigs will boost BP’s output on the North Slope, planning for the rigs started in 2006, before Alaska increased taxes on oil production, says Patience. In 2006, before the tax increase dubbed “Alaska’s Clear and Equitable Share” (ACES), BP had eleven active rigs. With the addition of the Parker rigs, BP has seven rigs on the North Slope. In 2013, Alaska passed an oil tax reform bill aimed at spurring increased production. In reply, BP announced it would add two more rigs, one by 2015, a second in 2016. “The tax change put Alaska back in the game,” Patience says. In 2013, BP planned to complete rig workover or rate enhancing well work on one hundred-plus more wells than last year, Patience says. In 2014, BP plans another increase in rig workovers and rate-enhancing well work. “Ultimately we want to produce more oil,” Patience says. “With an improved tax structure in place, oil and gas projects can once again move forward,

Alaska Business Monthly | February 2014

making Alaska competitive in the midst of America’s energy renaissance. “Janet Weiss, BP Alaska president, recently announced that under the new tax reform law, BP plans to reinvest nearly ninety cents of every dollar we make here over the next five years in Alaska. This reinvestment rate represents an increase of 60 percent from previous years under ACES.” As for Parker Drilling, the successful deployment of Rigs 272 and 273 is an incentive to continue the work of the past eight decades. “We will continue to focus on safely delivering innovative solutions that reliable and efficiently reduce risks and costs for our customers,” Dixon says. “We are proud of our achievements in the Alaskan market and value the relationships and partnerships we have in the region. We stand ready to help our customers achieve their business goals safely and in an environmentally sound manner.”  Julie Stricker is a journalist living near Fairbanks.

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OIL & GAS

By Mike Bradner

Source: US Department of the Interior

Shell’s Plan for 2014

Returning to the Chukchi Sea

United States Continental Shelf Boundary (CSB) Areas around Alaska. Bathy/Topo data from National Geophysical Data Center ET0P02 Global 2 Minute Elevations, September 2001.

hell has hopes to return to the Arctic the summer of 2014 to finish two wells the company started in 2012. Shell was able to begin drilling on two exploration prospects that summer, “Burger” in the Chukchi Sea and “Sivulliq” in the Beaufort Sea, and had hoped to return in 2013 to finish those and drill more wells. That did not happen. The company’s plan was disrupted by the loss of the drillship Kulluk in a marine accident when the conical vessel went aground off Kodiak December 31, 2012, after being caught in a storm. 102

The Kulluk, which is owned by Shell, was damaged to the extent that it could return to the Arctic in 2013 or in 2014, the company said. Marine industry sources say the drillship is a total loss, in fact. Without the presence of a second drill vessel to lend support in an emergency to the company’s other drillship, the Noble Discoverer, Shell was unable to deploy for a 2013 Arctic drill season.

Pending New Rules The company is now aiming at scaledback program in 2014, focusing only on the Chukchi Sea. Shell has filed an

Alaska Business Monthly | February 2014

amended Plan of Exploration with the US Bureau of Ocean Energy Management, or BOEM, for its proposed 2014 program. The latest plan is for the Noble Discover, which had had extensive modifications, to return and be accompanied by a different drilling vessel for standby, the Polar Pioneer, a “harsh weather” semi-submersible offshore drill rig owned by Transocean Ltd. In December BOEM asked for clarifications of certain parts of Shell’s exploration plan. Once the plan is deemed “complete,” and the items questioned are clarified to the agency’s satisfaction, www.akbizmag.com

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it is then released for public comment. There are other uncertainties for Shell, however. One is a pending set of new federal rules for Arctic offshore drilling set to be released early in the new year by the Bureau of Offshore Safety, BOEM’s sister agency in the Interior Department. Shell will await those rules before making any decision to actually deploy its fleet and drill in 2014. Meanwhile, two other companies are preparing for drilling in the Chukchi Sea, ConocoPhillips and Statoil, are waiting to see what happens to Shell before making any commitments on drilling. Officially, ConocoPhillips still says it plans to drill in 2014. Statoil, the Norwegian company, has a schedule that calls for drilling in 2015. However, both companies have said that those plans could change. The same uncertainties that face Shell, such as the pending new offshore rules, affect them as well. The problems Shell encountered in 2012 are well documented. Although the company had successfully and safely drilled Chukchi Sea offshore wells in the early 1990s, the federal government’s regulatory regime has tightened since

then. Shell acquired its new leases beginning in 2005. After the 2010 Gulf of Mexico offshore blowout on BP’s Macondo well, the government’s offshore rules tightened even more, and now the special set of Arctic rules are still pending. One problem in 2012 was Shell’s inability to get a special offshore spill containment and storage system completed and certified in time to reach the Arctic that summer. Without the containment system nearby the government would allow Shell to drill only “top holes,” or the upper parts of wells that did not penetrate formations that could hold hydrocarbons. That was followed, in December, by the loss of the Kulluk. It is worth mentioning that the Kulluk accident resulted in no loss of life or injuries despite a rescue of the crew under difficult storm conditions. Also, Shell proved it could safely avoid dangerous ice in the Chukchi Sea when it pulled the Noble Discoverer drillship off the hole temporarily to allow a large ice formation to pass.

Improved and Ready If Shell proceeds with its 2014 program, it will do so with beefed-up capabili-

ties with improvements to its vessels and equipment and enhanced contractor management procedures to ensure performance, an area that was criticized in a US Interior Department review of Shell’s 2012 program. The company has also made organizational and planning improvements. What is also important is that the Arctic Containment System, a spill response system that includes an undersea well capping device and a specialized support barge at the surface, is now certified by the government and ready for deployment. Along with other spill response assets to be on hand, Shell will have the capability to respond to a worst-case undersea blowout. In its 2014 plan introduction, Shell said, “The planned 2014 operations may encounter many challenges. Vast distances, harsh weather and sea conditions, and sparse shore-based infrastructure represent some of the considerable obstacles that must be planned for and accommodated.” “Conversely, the open water season, long daylight periods, shallow water, dedicated oil spill response equipment, THE ULTIMATE ALASKA BUSINESS REFERENCE TOOL

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Alaska Business Monthly | February 2014

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ice management vessels, and Shell’s Ice and Weather Advisory Center mitigate many of these challenges,” the company said in the plan. The proposed operations plan is for the semi-submersible Polar Pioneer to be held in reserve in Dutch Harbor, ready to move into the Chukchi Sea if needed. The Arctic Containment System will be kept on standby in the vicinity of Kotzebue Sound, likewise ready to move if needed. A number of the vessels in Shell’s fleet will also have towing capabilities to provide a broad range of options for emergency towing, the company said.

Plenty of Support A total of twenty-nine vessels would be organized to support the program, including the two drill vessels, approximately the same number as in 2012. All but seven are listed in the exploration plan, with those seven to be identified later. Louisiana-based Edison Chouest, which assisted Shell in 2012, will provide three support vessels including the large tug Alviq, the spill response vessel Nanuq, and a third supply ves-

www.akbizmag.com

sel yet to be identified. Trans Viking, a Swedish firm that worked in 2012, will again supply the Tor Viking, an ice-class anchor-handling vessel. Arctia Offshore of Finland will provide the Nordica and Finnica, two polar-class ice-management vessels; Crowley will provide four vessels, the Arctic Endeavor spill barge, the Endeavor tug Point Oliktok, the tug Guardsman, and the barge Klamath, which is part of the spill response system; Foss Maritime will provide the tug Lauren Foss; and Harvey Gulf will provide the Sisuaq, a spill response vessel. Vessels in the fleet will also possess a number of helicopter decks and personnel-transfer related cranes to facilitate safe transfer of personnel between ships and to and from shore, the plan said. All vessels will meet maritime technical assurance standards set by the American Bureau of Shipping and Det Norske Veritas. The drillship Noble Discover, which encountered engine problems at the end of the 2012 season, has undergone a major upgrade program by its owner, Noble Corporation. The upgrades in-

cluded work on the hull as well as major ship systems. A Shell project team will verify that the Discoverer’s upgrades will bring it into full regulatory compliance with federal rules, the exploration plan said. Those will be verified by external audit teams both for the Discoverer and the Polar Pioneer semi-submersible. Another vessel that will accompany the fleet north is an Arctic oil storage tanker, a tank vessel that will be on standby in an ice-free area to store oil that is recovered if the spill occurs. The vessel will have sufficient capacity to store oil and water recovered for twenty days of a worst possible case blowout. A contingency plan is that a second tanker would arrive at day nineteen to continue storing recovered fluids if the blowout continues beyond twenty days. Two oil spill control devices that will be on hand in 2014 are Shell’s “capping stack” and its Arctic Containment System. The capping stack is a device that would be lowered if oil were spilling from a damaged subsea blow-out preventer. The device would allow fluids to be injected in to “kill” the blowout and

February 2014 | Alaska Business Monthly

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for the damaged well to be closed. If the leak continues, the device can control the oil flow and funnel it to an Arctic Containment System, which can receive and store oil at a flow up to twenty-five thousand barrels per day, a rate that exceeds the “worst case” spill calculated for the Burger prospect. If Shell’s plan is approved, vessels will begin mobilizing in February and those heading to the Chukchi Sea would depart Unalaska in late June or early July depending on ice conditions and approvals of government agencies. For air support, Shell would mobilize three S-92 twin-engine helicopters, two for transportation between vessels offshore from the primary air support base in Barrow with the third helicopter held in reserve for search and rescue. All three S-92s will be equipped with improved anti-icing systems and onboard radar. “These capabilities are anticipated to significantly improve the on-time departure rate of helicopters in 2014,” Shell said in the exploration plan. The air support operations from Barrow would involve about thirty-five shoreside staff, which can be accommodated in local hotels. A camp will also be operated in Barrow with a capacity for two hundred. The airport at Wainwright, southwest of Barrow on the Chukchi Sea coast, would be a secondary air support base to be used by the helicopters in the event of emergency and by fixed-wing aircraft moving materials, the plan said.

Chukchi Sea Potential Shell’s decision to focus on the Chukchi Sea and put its leases in the Beaufort Sea on the back burner, for now, has important implications for Alaska. The decision favoring the Chukchi was made because the potential of the region is very high, a justification for giving it priority. The Beaufort Sea is considered by government geologists to have moderate to good prospects for major discoveries, while in the Chukchi Sea the prospects for large finds are considered much better. Shell obviously wants to test its best and biggest prospects as quickly as possible. However, an important goal for Alaska is getting offshore oil ashore quickly and into the Trans Alaska Pipeline System (TAPS), which is seeing steady declines in the oil moving through it. 106

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It will take years—possibly fifteen or more—before any commercial-scale oil discoveries in the Chukchi Sea can be produced and flowing to market, at least through TAPS (the companies do have the option of at-sea loading to icebreaking tankers). In contrast, oil from any commercial discoveries in the Beaufort Sea could be brought ashore and shipped to TAPS much sooner. The immediate Beaufort Sea prospects are near Camden Bay and roughly sixteen to twenty-two miles north of Point Thomson, which is east of Prudhoe Bay. A shorter pipeline to shore will be needed than the seventy-mile pipeline to shore needed in the Chukchi Sea. Once ashore, Beaufort Sea oil can be shipped through existing pipelines to Prudhoe Bay and the TAPS Pump Station One. By 2016 the existing Badami pipeline, which extends now twenty-five miles east of Prudhoe Bay, will be connected to the planned Point Thomson pipeline that will be in construction in early 2014. In the case of the Chukchi Sea, two hundred miles of new pipeline will also be needed across the National Petroleum Reserve-Alaska. Securing permits and building that infrastructure will require huge investments and years of work. In the long term, however, substantial volumes of oil could flow from the Chukchi Sea. Getting new oil into TAPS is important for Alaska because production from the existing North Slope fields is declining and the oil throughput through TAPS is expected to be below five hundred thousand barrels per day next year. That is one fourth of its original design capacity and a rate at which the pipeline can experience operating problems. There is potential for new oil to be developed within the existing North Slope oil fields and potential for new onshore discoveries as well, but the increments are likely to be in small additions, enough to slow or even stop the decline in TAPS’ throughput but not to substantially increase it. At this point, it appears that only the offshore oil, where Shell is drilling, would be able to do that.  Mike Bradner is publisher of the Alaska Legislative Digest www.akbizmag.com

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OIL & GAS

North Slope Exploration and Development Ramped up activity with passage of SB21

Source: Alaska Department of Natural Resources, Division of Oil and Gas

By Dimitra Lavrakas

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he State of Alaska Department of Revenue reported in its Revenue Resources Book on December 5, 2013, that it forecasted a $2 billion drop in all oil and gas revenues for fiscal year 2014, which ends June 30, 2014. On the surface, that’s troubling because that revenue is what supports a big chunk of Alaska’s unrestricted general fund revenues. However, there are some who

are right now positively bullish on the North Slope’s oil and gas industry. Dave Lachance, vice president, reservoir development, for BP Exploration (Alaska), Inc., on November 20, the first day of the Alaska the Resource Development Council’s annual Alaska Resources Conference, said, “One number I want you to remember: 80 billion. Eighty billion barrels of discovered

hydrocarbons on the North Slope sits in two oil fields, Prudhoe Bay and Kuparuk. The thing to realize is you have two main fields, and a massive number. Elsewhere in the world, it’s a giant if it’s half a billion. If you added all of the [other] fields I’ve ever worked on in my thirty-five years, they wouldn’t add up to 80 billion barrels.” With that optimistic perspective, here’s a look at what oil companies have planned for the coming drilling season of 2014.

Kuparuk Still Brings Them Up In November, ConocoPhillips Alaska announced it would add another drill rig to Kuparuk River field on the North Slope. “This is the second rig that will be added to Kuparuk’s rig fleet since last spring when SB21, the More Alaska Production Act, was passed by the Legislature,” the company announced in a press release. “Nabors 9ES will begin drilling at Kuparuk in January. It joins Nabors 7ES, which has added production of 1,600 barrels of oil per day since it began working in late May.” Combined, the two rigs will employ about two hundred people directly and support hundreds of indirect jobs, says the company. Upon the passage of SB21 by the Alaska State Legislature last year, the company also announced plans to pursue two new projects on the North Slope. The two projects: Greater Mooses Tooth No. 1 in the National Petroleum Reserve-Alaska and Drill Site 2S in the Kuparuk River Unit. “These are the projects we want to move forward,” says Natalie Lowman, director of ConocoPhillips media relations in Alaska. Lowman says the company has to approve the funds for the projects to begin. ConocoPhillips Alaska President Trond-Erik Johansen said the newest rig would start producing in January, but it’s not as easy to extract oil from the massive field as it used to be. The easyto-get light crude reserves are now further away, leaving viscous and heavy oil. “The way we drill today, we could go further out on the flanks. We drill more convoluted well bores. We need more high-tech technology to go out there and do it,” Johansen told the Resource Development Council (RDC) at its November conference. “And, yes, it is more difficult. www.akbizmag.com

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So, it costs a lot of money, but under the current tax system we have now, after SB21 was passed, we can make this to go around and actually make economic sense. So, that’s why I’m doing it.” SB21, meant to spur continuing investment in Alaska’s oil and gas industry, passed last session, and took effect January 1, setting a base tax rate of 35 percent and providing a capped, per-barrel credit. In October, Janet Weiss, BP Alaska president, said at an Alaska Support Industry Alliance meeting in Fairbanks that the tax bill will make new developments and proj-

ects on the North Slope economic, with possibly thirty to forty new wells drilled in the next five years, bringing several hundred new jobs to the state. BP’s Lachance echoed Johansen’s sentiments. “In 2012, in Prudhoe Bay, we operated five drilling rigs, and by the end of 2016, we’ll be operating nine,” Lachance said at the RDC conference. “We intended to ramp up, but didn’t have the compliance with the partners in Prudhoe until passage of SB21.” “There’s a lot left to go on, not in light form, but others,” Lachance said. “Vis-

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cous oil is like dealing with syrup, it’s harder to get out of the ground. Heavy oil is like yogurt, and doesn’t want to flow; it needs help.” He said oil companies haven’t cracked how to develop heavy oil yet. “It comes with sand and the sand has to be taken out. It’s not that economic yet,” he said. “Thank goodness we don’t have the benchmark oil like in Canada, it doesn’t want to move at all.”

Developing Natural Gas One project in particular, the largediameter, natural gas pipeline that state has been wanting for such a long time, is actively being pursued by a consortium of companies. Governor Sean Parnell welcomed the news when TransCanada, BP, ConocoPhillips, and ExxonMobil announced in October that Nikiski was picked as the terminus of an all-Alaska natural gas pipeline. The companies are pursuing acquisition of property in the Nikiski area to site the liquefaction facilities associated with the Alaska LNG project, according to a press release. “This is real progress toward our administration’s goal of getting a natural gas pipeline to provide lower cost energy for Alaskans,” Parnell said. “This project is taking shape and the companies’ commitment will help bring Alaska’s gas to Alaskans and markets beyond. This presents a new opportunity for synergy and alignment among the producers and the project being pursued by the Alaska Gasline Development Corporation.” The project would cost between $45 billion and $65 billion, including the North Slope gas treatment plant, the eight hundred-mile pipeline, and the Nikiski liquefaction plant with LNG storage and a two-berth tanker terminal. It’s envisioned the plant would make 15 million to 18 million metric tons of LNG annually, or 2 billion to 2.4 billion cubic feet a day of gas. Also being considered is the idea that the State of Alaska stake a claim on North Slope gas and become a player in the field.  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

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OIL & GAS

Captain Mike Dawson on the landing craft Greta, in Barrow.

Arctic Logistics for the Oil and Gas Industry Transportation is challenging and complicated By Eliza Evans

n much of Alaska’s Arctic, the sun does not appear in the sky from late November until mid-January. As sunrise blends straight into sunset, a vague, dusky light seeps over the horizon for only a few hours a day. The moon orbits the sky in the winter, much as the sun orbits the sky in the summer. Near the ocean, the Arctic’s maritime climate includes wet, stormy winters, with annual snow and rainfall as high as forty-nine inches. The Arctic interior includes severe weather and frigid temperatures. North of the Brooks Range, 112

February temperatures average minus four degree fahrenheit with extreme lows frequently dropping below minus forty. South of the Brooks Range temperatures average minus fifteen to minus twenty degrees, with lows periodically reaching minus sixty.

Barriers to Transportation To say Alaska’s Arctic presents a challenging environment to transportation in the oil and gas industry is an understatement. Limited navigation infrastructure, temperature and climatic

Alaska Business Monthly | February 2014

extremes, permafrost, shallow draft constraints, a lack of sufficient docks, dynamic ice conditions, and environmental sensitivities require meticulous planning, ingenuity, high operating standards, and an array of equipment and technology. It is potentially dangerous work, especially given the extremely remote location. The Alaska Deep-Draft Arctic Port Study, conducted by the US Army Corps of Engineers and the Alaska State Department of Transportation and Public Facilities, states the US Coast Guard response time from the www.akbizmag.com

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414 miles of mostly gravel road. As it is the only public road that crosses this expanse, the volume of trucks hauling cargo can be higher than one might imagine for such a remote, gravel road. Weather creates many of the most intense challenges to transportation in Alaska’s Arctic. The Arctic also has a wide range of intense weather patterns, such as cyclones and anticyclones, Arctic oscillation, polar lows, and semipermanent highs and lows. Some of these weather patterns—like cyclones and anticyclones—occur in other regions of the world as well. Others—like the Arctic oscillation—are unique to the Arctic. Arctic sea ice creates barriers to travel by sea. According to data from the National Snow and Ice Center, Arctic sea ice expanded 865,000 million square miles in November 2013 alone. Barriers by air and land include whiteouts, which occur when the sky and snow are a uniform whiteness, making it difficult to impossible to see shadows or the horizon. Whiteouts eliminate the contrast between objects both near and far; depth-of-field and orientation is lost as visual references

Photo courtesy of Lynden Inc.

nearest station to the northern reaches of Alaska is seven days by cutter. Prudhoe Bay is home to the only dock in Alaska’s Arctic capable of serving the needs of the oil and gas industry. Winter temperatures reach as low as minus fifty-six degrees and an average of twenty inches of snow falls per year. Prudhoe Bay’s population of just over two thousand residents is employees of oil drilling or production and support companies. An eight hundred-mile pipeline transports crude oil from Prudhoe Bay to Valdez, where it is shipped via marine tankers to terminals throughout the United States. The primary means of public transportation to Alaska’s Arctic is by air; Deadhorse is approximately 626 air miles from Anchorage and has a stateowned gravel and asphalt airstrip which can be reached via commercial airlines. There is also a private gravel airstrip owned and maintained by ConocoPhillips Alaska, Inc. Deadhorse is at the northernmost reaches of the US road system. The Dalton Highway, locally referred to as the “Haul Road,” begins just north of Fairbanks and consists of

An ice berg ﬂoats near a tug and barge.

vanish, potentially causing the eye to lose all sense of perspective. Permanently frozen ground, or permafrost, is another consideration when conducting transportation in the Arctic. While the top few inches of soil may thaw in the summer, the soil below never thaws. This makes digging of any kind a challenge. It also creates a fragile environment for plants; the growing season is short and substantial time is needed for plants to recover from disturbances caused by human activity.

Increasing Marine Traffic in Alaska’s Arctic According to Arctic Response Technology’s website, “Today, onshore and

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Alaska Business Monthly | February 2014

offshore Arctic production accounts for 15 percent of world energy supply. By 2050, global energy demand is likely to double and it is forecast that between 60-70 percent of that demand will be met by fossil fuels also reports an increase in offshore oil exploration in the Arctic.” The Marine Exchange of Alaska reports that approximately five hundred vessels transit the Bering Strait annually. A March 2013 update to the Alaska Deep-Draft Arctic Port Study states that more than three thousand vessels use the Great Circle route through Unimak Pass annually. This study reports Alaska’s Arctic is seeing an increase in marine vessel traffic and oil and gas exploration activity. Given the challenges inherent in conducting transportation to and within Alaska’s Arctic, the logistics are complicated, to say the least. Jeanine St. John, Vice President of Lynden, says, “Unlike the Lower 48, Alaska has a remoteness that is really difficult for folks to comprehend who have never been here. The challenging weather, distances, geography, and diversity of Alaska are what makes Alaskans innovative… The key is to find options and plans that are safe, efficient, and contribute to the success of the customer. Being a resource rich state means we need to find ways to access resources, develop them, and get them to market. Transportation is always a key component that needs careful planning and consideration.” Anchorage-based Lynden has operated in Alaska since 1954 and is a family of transportation companies. The combined capabilities include truckload and less-than-truckload transportation, scheduled and charter barges, rail barges, intermodal bulk chemical hauls, scheduled and chartered air freighters, domestic and international air forwarding, international ocean forwarding, customs brokerage, trade show shipping, remote site construction, sanitary bulk commodities hauling, and multi-modal logistics. Advanced planning, according to St. John, is key to successful transportation operations in the Arctic. “Oversized loads, for example, require coordination and permitting,” she says. “Planning equipment, escorts, [and] constraints all contribute to good project www.akbizmag.com

A Lynden Air Cargo Hercules landing in the Arctic. Photo courtesy of Lynden Inc.

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Photo courtesy of Lynden Inc.

Lynden uses multiple modes of transportation to transport oil and gas industry components in the Arctic.

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management and the more advanced planning with the most accurate information results in lower costs. Preplanning can also help prevent schedule creep. Many times, the transportation is the final link in the chain, and changing modes at the last minute to a faster route may be more expensive. Evaluating transportation option costs early, against schedule delay costs, may assist project teams as well.” Today, there are multiple technological innovations that assist in the transportation process. Satellite phone and email also improve communication. Internet mapping and vessel locator and tracking systems help companies keep track of vehicles and vessels by providing real-time data and images of where vessels and vehicles are at any time. “Lynden utilizes global positioning satellites and electronic data interchange to accurately track the position of cargo and communicate critical information to operations and clients throughout the transportation process,” St. John says.

are used as make-shift docks or as an extension of lighterage vessel ramps. Rig mats—portable platforms capable of supporting drilling rigs and heavy machinery—are used for beach operations. Roll-On/Roll Off and Lift-On/ Lift-Off operations are often essential to move Arctic marine cargo. Roll-On/ Roll Off operations allow wheeled cargo, such as trucks and trailers, to drive on and off vessels. Lift-On/Lift-Off operations use cranes or loaders/forklifts to load and unload cargo. Bowhead’s General Manager Jim

Dwight says, “We receive cargo in Seattle by truck, rail, and from other vessels. Deliveries in the Arctic are made vessel to vessel, vessel to beach, vessel to dock. Some village deliveries require ocean barges delivering to landing craft, delivering to very shallow draft cargo lighterage vessels. Other than in Prudhoe Bay, and those are marginal, there are no docks, no marine infrastructure—just remote beaches.”  Eliza Evans is an Alaskan author.

Multiple Modes of Transportation Multiple modes of transportation are necessary when conducting operations in Alaska’s Arctic. “When projects are not on the road system, you have to consider fi xed and rotary aircraft, hovercraft, tugs and barges, tundra vehicles, landing craft—just about every mode available and possible depending on the location and constraints,” St. John says. “For offshore work, the shallow coasts, ice conditions, and distances are part of the equation for coming up with solutions.” Bowhead Transport Company, a subsidiary of Ukpeaġvik Iñupiat Corporation, the Alaska Native Village Corporation of Barrow, has operated vessels in the Arctic since 1982. As Bowhead frequently does not have the luxury of being able to dock its vessels, it must bring heavy equipment to the Alaska Arctic—such as loaders, dozers, landing craft and one hundred-ton cranes— for all cargo handling operations. In places where the water is too shallow for crafts capable of carrying heavy machinery to reach the beach, additional equipment, such as breasting barges, www.akbizmag.com

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BusinessPROFILE

Prudhoe Bay Dive Operations

American Marine International

Alaska OCS Icebreaker Nordica Dive Support

Cook Inlet Osprey Platform Dive Operations

Operational and safety performance excellence in the world’s most extreme conditions

merican Marine Corporation, dba American Marine International (AMI), was established in Hawaii in 1973 as a commercial diving company named American Divers. It has since grown into an international operation with more than 250 employees and three primary operating divisions, which include Alaska, Hawaii, and California. Today, AMI is a full-service marine contractor that performs not only commercial diving, but also marine heavy construction and ocean-going towing operations. In addition, the company provides marine logistical support for the offshore and deepwater oil and gas industry, including supporting offshore exploration and production operations, offshore facility maintenance, subsea pipeline and cable installation and repair, and marine vessel emergency repair and salvage. REMOTE AND EXTREME Although operating internationally, the majority of AMI’s work is conducted in remote areas and under extreme Arctic conditions in Alaska, the Beaufort Sea, and the Chukchi Sea. AMI has a successful track record of deploying and supporting highly competent teams of commercial divers, who are capable of working in the unique and challenging conditions of

the Arctic, including thirty-plus-foot tidal fluctuations, strong currents, and extreme cold and zero-visibility water conditions known as blackwater. Weather and ice conditions can and do change dramatically, with little warning, requiring effective operational risk management (ORM). Despite operating in such extreme conditions, AMI has achieved a sixyear perfect safety record, which includes a zero Total Recordable Incident Rate (TRIR) for 2008, 2009, 2010, 2011, 2012, and 2013. In addition, AMI has logged more than one million man-hours without a divingrelated injury or emergency condition—an unprecedented achievement in the commercial diving industry. ESTABLISHED EXCELLENCE AMI established and maintains a track record of operational and safety performance excellence in all aspects of its marine operations. The company’s Diving Safety Management System (DSMS) meets the regulatory standards set by the Occupational Safety and Health Administration (OSHA), BSEE Safety and Environmental Management Systems (SEMS), and U.S. Coast Guard. The AMI DSMS also meets the best practice standards established by the U.S.based Association of Dive Contrac–

P A I D

A D V E R T I S E M E N T

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tors International (ADCI), as well as the much more stringent European standards set by the International Oil and Gas Producers (OGP) and the International Marine Contractors’ Association (IMCA). AMI’s success is based on consistent demonstration of excellence in operations, as well as exceeding client expectations in safety, operational performance, and environmental stewardship. The company’s record of operational performance excellence— achieved with no harm to people or the environment—makes AMI the diving contractor of choice for oil and gas companies that require a higher risk management and performance in their ongoing commercial diving and marine support services. AMI looks forward to continuing its service to companies in Alaska and internationally, with operational and safety performance, excellence, and pride.

American Marine International Tom Ulrich, Vice President 6000 A Street Anchorage, Alaska 99518 Phone: 907-562-5420 Fax: 907-562-5426 amarinecorp.com

BusinessPROFILE

Pacific Environmental Corporation

Excellence in Operations

Photos by Kevin Smith Photography

or Pacific Environmental Corporation (PENCO), the term “Excellence in Operations” is more than a motto; it’s an absolute way of doing business. PENCO has built a reputation for providing skilled technicians who take safety seriously. “At PENCO, we put our best foot forward, and we pride ourselves on providing technicians who are highly qualified, respectful, and professional,” said Brent Porter, Alaska Area Manager. “Our clients get top performers who are team-oriented and who can succeed working in harsh conditions.” OFFERING A VARIETY OF SERVICES Established in 1985 as part of American Marine Services Group, PENCO is an emergency response contractor that specializes in oil field response, preventative booming, subsurface oil recovery, hazardous materials response, and tank cleaning. PENCO is one of the Pacific’s first commercial operators dedicated to oil spill cleanup, and it has been a participant in almost every major spill clean-up in the Pacific since 1985. The company is also distinguished by the expertise of its technicians, who have Health, Safety, and Environmental (HSE) and environmental compliance experience. This gives clients the confidence of knowing the company’s experts are fully equipped to assist them

with excellence in the field. Other solutions offered by PENCO include marine vessel services and support, hazardous waste disposal, bulk fuel filtering, waste oil disposal, and used oil processing and disposal. In addition to supporting the environmental industry for emergency spill response, the company also has technicians who can perform industrial services, such as painting, expediting, and roustabout support. From its Hawaii headquarters and Alaska regional office, PENCO maintains ongoing operations with clients on the North Slope. The company— which has operated an office in Alaska since 1994—also offers a variety of inspection and facility maintenance services tailored to meet the needs of the Alaska petroleum and energy industry. However, its client base extends beyond oil and gas related companies to include state and federal agencies, corporations in various industries, small businesses, and even homeowners. Today, PENCO stands as a cost-effective, one-stop source for environmental response, providing services that clients need to complete their projects. EMPLOYEES AND CLIENTS KEY TO SUCCESS The mission of PENCO is to be a leader in the spill response and environmental services field by providing safe, –

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trained, qualified, and compliant support to its valued clients and industry. That mission is being accomplished, as evidenced by its growing base of clients, customer satisfaction, and extensive services. The company performs and manages response activities from marine oil spills to tank cleaning. On a broader level, PENCO strives to employ well-conceived, professional solutions to meet a diverse range of environmental needs. PENCO’s success is closely tied to its employees and strong, long-lasting client relationships. Over the years, the company has engaged in strategic business relationships to remain competitive in the marketplace. “We have purposely avoided short-term and risky proposals so that we are able to focus on and develop long-term relationships with clients,” Porter said.

PACIFIC ENVIRONMENTAL CORPORATION (PENCO) Brent Porter, Alaska Area Manager 6000 A Street I Anchorage, Alaska 99518 Phone: 907-562-5420 I Fax: 907-562-5426 PRUDHOE BAY OFFICE Pouch 340079 I Prudhoe Bay, AK 99734 Phone: 907-659-9010 I Fax: 907-659-9012 penco.org

OIL & GAS

INNOVATIONS AND ADVANCEMENTS IN ARCTIC TECHNOLOGY

Photo courtesy of ConocoPhillips Alaska

The coiled tubing drilling rig, Nabors CDR2, that enabled ConocoPhillips to drill eight lateral wells from an existing well bore in the Kuparuk Field.

Enhancing research, management, and operations

By Judy Griffin

rom applications for mobile devices to aviation-borne remote sensing and drilling techniques that recover elusive compartmentalized pockets of oil, innovations and advancements in oil and gas industry technology are enhancing research, management, and operations. Leveraging achievements of yesterday while enabling decision makers to realize future visions, applications of new technology in the Alaska oil and gas industry offer opportunities for obtaining and managing data and realizing greater operating efficiencies. Exploration, discovery, and processing activities continue to advance to the step of technological advancements that expand capabilities and provide new tools. With extraction of easy oil in the rearview mirror, companies today are relying on the technological advancements 120

of the “digital oil field” to leverage resources. In its 2008 report “Unleashing Productivity: The Digital Oil Field Advantage,” management consulting firm Booz & Company explains, “Generally the digital oil field encompasses both the tools and the processes surrounding data and information management across the entire suite of upstream activities. More specifically, digital oil field technologies allow companies to capture more data, with greater frequency from all parts of the oil and gas value chain and analyze it in real or near-real time, thus optimizing reservoir, well, and facility performance.” In Alaska, as elsewhere, the benefits of modern information technology, automation, and communications are being harnessed to enhance operations. Wireless communication, collection of data from deployed sensors, and the abilities

Alaska Business Monthly | February 2014

to remotely analyze real-time data during drilling operations coupled with drilling innovations are reducing environmental impacts and risks to personnel, as well as improving management capabilities.

Customized Software Applications Deliver Data New software applications for cell phones, tablets, and laptops have enabled faster and easier retrieval of information from remote locations. Informed management in the oil and gas industry relies on up-to-date data on hydrology, habitat, and weather, as well as locations and conditions of roads, pads, pipelines, and facilities. “Decision makers need to know real time production and infrastructure status,” says Howard Earl, Director of Sales and Marketing for Resource Data, Inc. (RDI). “In addition, field crews need to www.akbizmag.com

Photo by Dan Wilkinson/Courtesy of Tulugaq LLC

The Fairweather/Tulugaq DA42 optionally-manned aircraft is being used to perform surveys and collect data in Alaska’s remote Arctic airspace.

be able to record information in disconnected environments and transfer it reliably to centralized databases so that analysts and engineers can evaluate it.” Founded in Anchorage in 1986, RDI provides software solutions for data management and mapping from three Alaska offices and four Lower 48 branch offices. The company builds custom tools for scientists, engineers, and analysts to record, import, view, map, measure, and analyze data. RDI President Jim Rogers says that among other advantages, improvements in software have led to more accurate engineering analysis, cost estimating, logistics planning, and environmental review that lead to “greater efficiency, better decisions, and an improved bottom line.” He adds, “Our clients count on our software solutions to improve their exploration, design, and development projects, as well as streamlining ongoing operations and maintenance.” Earl says RDI projects for oil and gas industry clients have included providing automated drilling rig data and mapping high-consequence areas for North Slope pipelines. Many solutions rely on geographic information system (GIS) mapping technology. For example, RDI developed a mobile mapping system combined with laser range finders to inventory thousands of vibration dampeners (hung on above-ground pipe segments to prevent oscillations) in less than a week. Earl explains that GIS technology also is being deployed on mainstream mobile devices, such as in a new application dewww.akbizmag.com

veloped by RDI to let users view infrastructure on the North Slope from an iPad. “We’ve developed map viewers for offshore weather and to display historical data on marine mammals and other biology,” says Cindy Eick, senior GIS project manager for RDI. “We’ve also done some cool stuff with streaming external data sources for near real-time display.”

Aerial Data Collection Options Expand Poised for future commercial applications of unmanned aerial vehicles (UAVs), Anchorage-based Tulugaq, LLC, has introduced an aircraft for remote-sensing data collection in Alaska that can be flown unmanned. Tulugaq is a subsidiary of resource industry support company Fairweather, LLC and a joint venture with the village Native corporations Olgoonik Corporation, of Wainwright, and Kaktovik Iñupiat Corporation, of Kaktovik. The company was created after Fairweather acquired Virtual Data Operations Support, LLC, which specializes in collecting realtime environmental and scientific data. A separate joint venture of Olgoonik Corporation and Fairweather Science, LLC, Olgoonik Fairweather, LLC operated the research vessel from which the first approved commercial flight of a UAV in the United States was completed in September for ConocoPhillips Alaska. The flight took place in remote Arctic airspace over the Chukchi Sea approximately 120 miles off the coast of Wainwright. Operated by Insitu, a sub-

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Multiple Mission Capabilities “The genius of this plane is that like a Lego, we can easily snap on sensors,” he notes. Because of the airplane design, no certificates of airworthiness are necessary to change out the sensors that fit into the receivers in the aircraft nose and belly. “Like apps for a cell phone, every year new and better sensors are introduced, and we can easily make modifications,” Wackowski explains. Tulugaq varies the sensors and cameras to meet the needs and budgets of its clients. Wackowski says Tulugaq can serve multiple clients when flying an area. For example, on a flight to document polar bear denning areas with 122

Above: Coiled tubing drilling advances a small drill bit about the size of a ﬁst. Right: The coiled tubing drill string used for drilling these types of horizontal wells is spooled off a reel. By contrast, traditional rotary-drilled wells rely on drill strings of straight iron pipe.

infrared technology, information on other species or geographical features needed by another party could be collected as well. “By splitting the mobilization costs, we can offer services at a reduced rate,” Wackowski adds. In December 2013, a Tulugaq team flew a mission to collect baseline survey data for Repsol and Pioneer Natural Resources on polar bear denning habitat in leased areas of the Colville River Delta on the North Slope. “The infrared capabilities enabled us to record the dens with GPS data even in the low-light conditions during that time of year,” explains Daniel Wilkinson, director of remote sensing for Tulugaq. Both Wilkinson and Wackowski bring military experience with UAV operation. Wackowski, who holds the current record for high-latitude unmanned aerial system flights deployed from an icebreaker, points out that the military has been using UAV technology for twenty years, and future commercial applications will remove pilots from the hazards of flying remote-sensing missions in the Arctic. “Alaska is an unforgiving and dangerous place to fly,” he adds. The DA42, which is larger than unmanned aircraft Tulugaq anticipates flying in future years, is enabling the company to build market share. “Right now we have the DA42 to bridge the gap. Although commercial use of UAVs is not currently authorized, we can show the exact footage that we’ll be able to capture with an unmanned operation,” says Wilkinson. The ownership of Tulugaq also leverages participation of two Native corporations that represent North Slope communities. Kevin Hand, president of

Alaska Business Monthly | February 2014

Photos courtesy of ConocoPhillips Alaska

sidiary of the Boeing Company, the UAV sent real-time video and telemetry to the ground control system on the vessel. The Federal Aviation Administration has been tasked by Congress with developing operational guidelines for UAV use by 2015, and Alaska is considered a top candidate for creation of a testing area in 2014. The Alaska oil and gas industry anticipates many opportunities from the availability of unmanned aircraft systems. A primary concern is reducing risk to personnel while gathering data from remote sites under low light and often unpredictable weather conditions. The flights also will permit monitoring of conditions at, and operations of, remote assets. The new Diamond Aircraft DA42 aircraft owned by Tulugaq is made of carbon composite material and is powered by twin lightweight turbo-diesel engines. Burning less fuel than comparably sized research planes is an advantage when flying long distances from airfields and reduces operating costs and environmental impact. Because efficient exhaust mufflers permit quiet operation, data-gathering flights at low altitudes avoid wildlife disturbance. The aircraft incorporates sophisticated multispectral remote-sensing imagery capabilities such as those relying on infrared identification of data or light detection and ranging measurement of distances, as well as the tools for capturing high-resolution optical images and live streaming of high-definition video. Steve Wackowski, operations manager of Tulugaq, estimates the airframe and sensors represent an investment of about $1.5 million.

the commercial division of Olgoonik, says the new joint venture provides opportunities “to expand the relationship Olgoonik has with Fairweather in these exciting new technologies and build on our successful five-year partnership conducting pioneering science in the Arctic.”

Drilling Enhancements Tap Elusive Pockets of Oil Employing innovative techniques developed in Alaska, ConocoPhillips Alaska recently drilled an octolateral well to extract oil with eight horizontal laterals from a single surface well bore. Coil tubing drilling technology implemented with realtime monitoring of the reservoir properties encountered enabled the company to tap formerly elusive pools of oil. During development of the Kuparuk Field in the 1980s and 1990s, the resource was found to be more compartmentalized than originally thought. Three-dimensional seismic interpretation revealed high density of intrareservoir faults that subdivide the reservoir. The complex and fragmented system of reservoir sands create uncertain flow connections that resulted in the failure of vertical wells to produce the anticipated reserves. Coiled tubing drilling technology, first used in the 1990s, today is enabling ConocoPhillips to access the remaining hard-to-reach oil in fragmented sections. Multiple horizontal wells are being developed from the existing vertical well bores, a practice that also www.akbizmag.com

minimizes the environmental footprint. “We are revitalizing well bores drilled in the 1980s, instead of plugging and abandoning them,” says Michael Braun, drillsite engineering supervisor. Lamar Gantt, coiled tubing drilling engineering supervisor, explains that drilling three to four lateral wells is typical. “Because this particular geographic area is very complex, six to eight laterals were required to develop the reserves,” he says. To find bypassed oil, geologists and geophysicists analyze data, interpreting faults to identify areas open to flow and locations where baffling restricts flow. The seismic surveys provide data with approximately twenty-foot vertical resolution, making it difficult to identify smaller faults. Data collected in 2011 is still being interpreted. The drilling process, which employs a “fit-for-purpose” rig built by Nabors Drilling under contract specifically for the Kuparuk field conditions, requires more than a little finesse. The reservoir sands are six thousand feet deep and ten to twenty feet thick, explains Gantt. During the drilling operation, geologists monitor the progress and conditions encountered twenty-four hours a day. The bottom-hole assembly transmits data through a cable to measure formation and drilling parameters. “The structural complexity doesn’t allow us to nail the trajectories,” explains Braun. “We have a plan, a very good plan, but when drilling in sands, we are performing real-time geosteering.” He compares the process of pushing coiled tubing that is two inches in diameter through a three-inch hole to “trying to push a wet noodle.” After the drilling is completed, a slotted liner is placed to protect the path from collapsing. Although drilling multilateral wells is generally more expensive than drilling traditional vertical wells, the process enables ConocoPhillips to hit more targets. Braun says the company is investing lots of computing time, man hours, and expense to understand and find opportunities in the reservoir conditions. He adds, “We are pushing technology to its limits.” 

TOTAL PROJECT SUPPORT

r EQUIPMENT RENTAL/PROJECT SUPPORT COMPANY r SUPPORTING THE NORTH SLOPE & COOK INLET r HEATERS, GENERATORS, VEHICLES, MANLIFTS, LIGHT PLANTS r CAMPS & CAMP SERVICES r FULL PROJECT LOGISTICS SERVICES & STAFFING

Magtec Alaska, LLC (907) 394-6350 Roger Wilson, Prudhoe Bay rwilson@magtecalaska.com Skeeter Creighton, Kenai (907) 394-6305 skeeter@magtecalaska.com

Judy Grifﬁn is a freelance writer in Anchorage. www.akbizmag.com

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RIGHT MOVES

Compiled by Mari Gallion

AT&T

AT&T has appointed Kerry Emery as Government Account Manager in the Business Integrated Solutions division in Anchorage. In her new role, she will be responsible for all government, education, and medical mobility accounts. Born Emery and raised in Wasilla, Emery has a Bachelor of Science degree from the University of North Dakota and most recently worked for AT&T as a Business Account Manager in the Small Business Mobility group.

Wells Fargo

RIM Architects

Bonham

Follows

Phillips

Denali Alaskan Federal Credit Union

The Federal Home Loan Bank of Seattle (Seattle Bank) announces Robert Teachworth, President a n d CEO of D e nali Alaskan Federal Credit Union, has been elected to the organization’s 2013 Board of Directors. He was elected to a four- Teachworth year term, commencing January 1, 2014, and ending December 31, 2017. He served as chair of the Credit Union League for eight years and holds two master’s degrees, in business administration and in global finance, from Alaska Pacific University.

ASRC Energy Services

ASRC Energy Services, Inc. announces the promotion of Steve Gasser as the General Manager for the company’s Fabrication and Construction division. Gasser is a graduate of the Rensselaer Polytechnic Institute where he earned a Master of Science in Gasser Engineering Science Management.

Sandefur serves South Anchorage small business customers from Wells Fargo’s Huffman store. Sandefur has helped Mat-Su customers succeed financially for two years as a teller and personal banker.

Harrington

Sandefur

Wells Fargo has named Jennifer Bonham, Clark Follows, David Harrington, Andrew Johannes, and Anna Sandefur as Small Business Specialists. Bonham serves small business customers in the Mat-Su from Wells Fargo’s Wasilla Main store. Johannes She graduated from the Career Academy for Business Management in 2004. Follows joins Wells Fargo as a small business specialist serving Anchorage customers from Wells Fargo’s Benson store. Follows earned a Master of Arts in Business Administration from the University of Alaska Anchorage. Harrington joins Wells Fargo as a small business specialist serving Anchorage customers from Wells Fargo’s Russian Jack store. He has fifteen years of consumer and real estate lending experience in Alaska. Johannes serves Anchorage small business customers from Wells Fargo’s Northern Lights and C Street store. Johannes holds a Bachelor of Science in Finance from Florida State University.

Zeimer

RIM Architects, LLC is pleased to announce that Krista Phillips, AIA, NCARB, a Principal of RIM’s Alaska office, has accepted a firm-wide position of Principal of Marketing and Human Resources. Phillips holds a Master of Architecture degree from the University of New South Wales in Sydney, Australia, and a Bachelor of Architecture degree from the University of Kentucky. David Zeimer, AIA, has achieved Project Management Professional (PMP) accreditation. Zeimer earned Bachelor of Architecture and Master of Science Degrees in Architecture from the University of Michigan and is a Registered Architect in Alaska.

USKH Inc.

Smythe

Karas

Dale Smythe, AIA, was named a Principal, while Daniel Karas, AIA, was named an Associate. Smythe graduated from Montana State University with a Bachelor of Arts in Environmental

SLED DOGS & SOFAS & MILK

OH MY!

WE’RE OFF TO RURAL ALASKA

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RIGHT MOVES

Compiled by Mari Gallion

Design and a Master of Architecture in 2001. Karas earned a Bachelor of Science in Architectural Studies from the University of Illinois in 1998 and a Master of Architecture from the University of Washington in 2004.

Executive Program at the University of Michigan, and the Strategic Human Resources Program at Cornell University, along with numerous other development classes.

Bering Straits Native Corporation

Grace Greene has joined Totem Ocean Trailer E xpress as G eneral Manager of the company’s Alaska operations. Greene received her bachelor’s degree in Oceanography from the United States Naval Academy and served in the US Marine Greene Corps as a helicopter pilot and Aircraft Commander.

Bering Straits Native Corporation has announced the promotion of BSNC shareholder Kevin Ivanoff to Senior Director, Information Technology. Ivanoff earned a Bachelor’s degree in Business Administrative Management from the University of Alaska Anchorage. He also holds Microsoft Certified Systems Engineer certification.

Philanthropy Northwest

Philanthropy Northwest, the regional network of philanthropic grantmakers, named Jef f Clarke as its CEO. Clarke, an active civic leader in Anchorage, currently serves on the Alaska Public Media board, is a volunteer advisor of the Clarke Scotty Gomez Foundation, and is a Anchorage Downtown Rotary Club member. He has a BA from Middlebury College, an MBA from FW Olin Graduate School of Business at Babson College, and an MA in Organizational Management from Fielding Graduate University.

NANA Development Corp.

S a n d y B e ite l We s t has joined NANA Development Corp. as Senior Vice President, Human Resources. West is a graduate of the University of Montana with a degree in finance and accounting and continued her profes- West sional development at the Kellogg Executive Master Business School at Northwestern University, the Human Resources

Totem Ocean Trailer Express

Anchorage Museum at Rasmuson Center

Alaska Communications

Alaska Communications announces the hire of Linda Leary as senior vice president, sales. Leary has more than twenty-five years of leadership and sales experience in the Leary state.

Moda Health

The Anchorage Museum Association Board of Directors has named Julie Decker as director of the Anchorage Museum at Rasmuson Center. Decker holds a PhD in contemporary art history, criticism, and management from Union Institute and Decker University and a master’s degree in arts administration from Golden Gate University.

Nuvista Light & Electric Cooperative, Inc.

Nuvista Light & Electric Cooperative, Inc. announces Tiffany Zulkosky as the new E xe cutive Dire c tor. Zulkosky grew up in Bethel and brings several ye a r s of hig h -l evel leadership experience, including her most recent Zulkosky

position as the west area director for the US Department of Agriculture Rural Development. She has also served as the rural director for US Senator Mark Begich, the mayor of Bethel, and was named as one of Alaska’s Top 40 Under 40 in 2012.

Moda Health has promoted two of its Alaska team members and added a new representative. Angela Fraser is now an Account Executive in Medical Customer Service, Lauren Young is now a Large Group Service Representative, and Bob Satterthwaite is joining as a Sales Representative. Fraser has a bachelor’s degree in geography from Portland State University. Young has worked with Moda Health for five years in the company’s Anchorage office, filling a variety of sales and service roles. Satterthwaite is a longtime Alaskan who’s worked in health insurance since 1988.

Office of Senator Lisa Murkowski

Senator Lisa Murkowski announces the promotion of Kate Williams to become her new Legislative Director in Washington, DC, to oversee her legislative efforts in the US Senate. Williams graduated from Juneau-Douglas High School, received an undergraduate degree from the University of North Carolina, and got her law degree from the University of San Diego. Taylor Thompson of Anchorage was promoted to the position of Press Secretary in Murkowski’s Capitol Hill office. Thompson attended Gonzaga University in Washington State where she received a Bachelor of Arts in Political Science. 

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INSIDE ALASKA BUSINESS

Alaska Rubber Group

he Alaska Rubber Group has acquired five additional locations, effectively doubling the size of its employee owned organization. The Alaska Rubber Group, with three locations in Alaska—Anchorage, Fairbanks, and Wasilla—has purchased five additional locations in Washington state. The five additional locations were formerly referred to as the Pacific Rubber Group, and they consist of stores throughout Washington state serving the entire Pacific Northwest region. Pacific Rubber, Inc. located in Seattle, TIMCO Inc. at the Port of Tacoma, North Sound Hose and Fittings in Everett, Central Hose and Fittings in Pasco, and Inland Pacific Hose and Fittings in Spokane comprise the Washington locations. The Alaska Rubber Group is the largest distributor of hydraulic and industrial hose, fittings, and rigging supplies in Alaska. This acquisition expands the market presence and distribution capabilities of its employee owned organization across the entire Pacific Northwest. President and CEO Janeece Higgins said about the acquisition: “We’re always exploring opportunities for growth, and it is exciting to see where this new addition to our group will take us. Some of the former owners of the Washington stores, Don and Drennon Adams, were the original founders of our Alaska locations. We all started with a very similar model. It’s kind of in our DNA. I have known some of the employees in the Washington stores for years, and the knowledge and experience they bring will help shape the future of the company. Everyone involved is critical to the team, and I look forward to their new ideas, hard work, and the growth that we will experience going forward.”

Compiled by Mari Gallion

Each location within the group will retain its original name. However, each will be branded as an Employee Owned Alaska Rubber Group Company. Alaska Rubber Group COO Mike Mortensen explained, “We definitely want to keep the local culture at each location intact. There’s a strong commitment within each store to customer service, and over the years each store has developed a loyal customer base. As we integrate these stores into the group, we’ll look to find efficiencies, win new customers with expanded offerings and skill sets, and capitalize on economies of scale as a much larger group. In addition to these obvious goals, we are bringing the energy and empowerment of employee ownership. In our experience, as employees begin to understand they have a stake in the company, significant growth is a natural byproduct. It’s a powerful model and this is just the beginning.”

CCI Industrial

CI Industrial Services, LLC has entered into an agreement with Alutiiq Oilfield Solutions, LLC to acquire certain assets including a major blasting, coating, and painting facility and related equipment in Deadhorse, Alaska. The transaction was completed on November 8, 2013. The fit-for-purpose facility enables CCI Industrial Services to perform larger jobs and work year round. CCI Industrial, a wholly-owned subsidiary of Bristol Bay Native Corporation, is an oilfield and industrial service provider with roughly 250 employees. CCI Industrial is engaged in a wide variety of activities on Alaska’s North Slope including coating, sandblasting and painting, tank cleaning, pipeline maintenance, hazardous materials handling, and spill response.

Alutiiq Oilfield Solutions, a whollyowned subsidiary of Afognak Native Corporation, is an oilfield service provider with operations in Alaska, Canada, and North Dakota specializing in temporary road and pad matting and structural composite products.

Jack White/ Vista Real Estate

rudential Jack White/Vista Real Estate announced that it has become an independent firm. The company is now operating as Jack White Real Estate and is affiliating with Leading Real Estate Companies of the World, the world’s largest network of leading independent real estate brokerages producing over one million transactions annually. Jack White Real Estate is a familyowned organization dating back to the 1950s with deep roots in Alaska. The company, with 250 top sales associates, has the leading market share in the state and covers metro Anchorage as well as Eagle River, Wasilla, and many more outlying areas, with annual home and commercial sales of $1,118,777,208. The company is owned by Naomi Louvier and also has mortgage and title insurance divisions. “We have always been independently owned and operated,” comments Louvier, “and our franchise relationship served us well in the past. However, the Internet and other business circumstances have changed over time, and today, we firmly believe that franchise fees can be re-deployed in the local market with much greater results to benefit our clients and associates. We wanted to take charge of our future in a way that wasn’t possible with any franchise affiliation.

Your Project, Our Responsibility. 24/7 Service Pacific Pile & Marine has a robust fleet of marine equipment including our recent addition of a 600-Ton 4600 Ringer.

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From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 www.akbizmag.com

INSIDE ALASKA BUSINESS

Compiled by Mari Gallion

he US Census Bureau recently awarded ASRC Federal InuTeq a contract to provide support critical for conducting the 2020 census. Under the Master Address File/Topologically Integrated Geographic Encoding and Referencing Database, or MTDB, Improvement Support contract, ASRC Federal InuTeq will provide quality control of data and continuous maintenance and updates to the database, which allows the Census Bureau to keep track of the lands and people of the United States. The Master Address File tracks current locations where US citizens live and work, while the Topologically Integrated Geographic Encoding and Referencing database supports the decennial census and other statistical programs and allows the census to map geographic features. Work on the five-year, approximately $7 million contract will be performed for the Census Bureau’s Geography Division in Suitland, Maryland.

ASRC joins Shell Alaska and the University of Alaska Fairbanks as Strategic Partners. “We believe that the Institute of the North brings attention and direction to Alaska’s Arctic, convening critical conversations about issues that are at the heart of what we’re doing at ASRC,” says Imm. “I’m excited to join a wonderful team who share our vision of responsible resource development, balanced against vibrant cultures and a sensitive environment.” The Institute of the North and UAF have signed an MOA that outlines a collaborative framework that aligns the University’s current and future Arctic programs and projects; utilizes the Institute’s role as a convener; builds UAF’s academic, research, and public service capacities; and leverages financial resources from both entities. Shell Alaska has been an active participant in and supporter of programs at the Institute that have highlighted arctic transportation infrastructure and energy issues. Specifically, this has meant a high level of engagement in the Arctic Maritime and Aviation Transportation Infrastructure Initiative—an eight-nation port and airport evaluation conducted under the auspices of the Arctic Council—and the Arctic Energy Summit, which took place in October in Iceland.

Institute of the North

Healy Clean Coal Plant

At the same time, we recognize the tremendous value of national and global connections and were fortunate enough to be invited to affiliate with Leading Real Estate Companies of the World.”

ASRC Federal InuTeq

he Arctic Slope Regional Corporation (ASRC) and the Institute of the North recently agreed to a strategic partnership addressing Arctic policy and infrastructure issues. In addition to a financial contribution to the Institute of the North, Teresa Imm, Vice President of Resources at ASRC, will join the Institute of the North board of directors.

he Alaska Industrial Development and Export Authority and Golden Valley Electric Association (GVEA) have closed the sale of the fifty-megawatt Healy Clean Coal Plant (HCCP) and transferred ownership of the plant to GVEA. The plant, now known as Healy Unit 2, is co-located with GVEA’s twentyfive-megawatt Healy Unit 1. Construc-

tion and testing of the experimental plant was completed in the 1990s with federal and state funding, including a grant from the US Department of Energy. HCCP has not been in operation since 2000. GVEA purchased the plant for $42 million, plus a reimbursement of $1.8 million for certain 2013 carrying costs. GVEA will spend an additional $37 million to update and enhance plant systems. GVEA also agreed to install advanced pollution controls as part of a consent decree with the US Environmental Protection Agency. GVEA plans to have the plant in operation by the second quarter of 2015. The plant is expected to help stabilize rates for GVEA’s 34,480 members. Power costs have fluctuated wildly over the past seven years as oil prices have risen, fallen, and risen again. At peak construction the plant will employ approximately ninety workers. The plant will also create a yet-to-bedetermined number of permanent, fulltime jobs in Healy.

Alaskan Brewing Co.

he 2013 Alaskan Barley Wine Ale has hit stores in the fifteen states where Alaskan Brewing distributes beer. A big, bold beer, the Alaskan Barley Wine has been brewed strong enough to keep folks warm even on the coldest Alaska winter days. Alaskan Barley Wine is a full-bodied ale, deep mahogany in color and brewed with an array of complementing malts to achieve its high original gravity. Multiple hop additions in the boil and dry hopping during fermentation provide contrast to the big malt character resulting in the smooth balance that distinguishes this specialty brew.

Your Project, Our Responsibility. 24/7 Service

Pacific Pile & Marine has a robust fleet of marine equipment including our recent addition of a 600-Ton 4600 Ringer.

www.pacificpile.com I (907) 276-3878 276-3873 www.akbizmag.com

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 February 2014 | Alaska Business Monthly

127

INSIDE ALASKA BUSINESS Alaskan Barley Wine has been produced in limited edition vintages each year since its introduction at the Great Alaska Beer and Barley Wine Festival in 2003. Now produced as part of the Alaskan Pilot Series, Alaskan Barley Wine (formerly Alaskan “Big Nugget” Barley Wine) has gained a strong following in Alaska and elsewhere. A multiple award-winning beer, the Alaskan Barley Wine has received medals in the World Beer Cup and most recently won a gold medal in the 2012 West Coast Brew Fest in the Strong Ale category.

REI

eginning in the spring of 2014, Alaskans can gear up for their outdoor adventures at a new REI location in Fairbanks, Alaska. The thirty thousand-square-foot store will be located at the southwest corner of Old Steese Highway and College Avenue. REI is the nation’s leading outdoor retailer with the top brands of camping, climbing, cycling, fitness, hiking, paddling, snow sports, and travel products. The new Fairbanks store will house a bike shop and ski and snowboard shop to offer expert assembly and repair services and host free in-store classes. With 132 stores and 5.1 million active members, REI is the nation’s largest consumer cooperative. Anyone may shop with REI, but members pay a onetime, twenty dollar fee to receive a share in profits through an annual member refund. Members also receive discounts on REI Outdoor School and in-store classes and REI Adventures trips. REI will hire approximately fifty new employees for its new Fairbanks store. Interested candidates can sign up on-

Compiled by Mari Gallion

line to be notified when REI begins accepting applications. Employees receive a variety of benefits, including generous product and service discounts, competitive pay, and retirement contributions. For sixteen consecutive years, REI has been recognized as one of FORTUNE magazine’s “100 Best Companies to Work For.” The company is currently number seventeen on the 2013 list.

Miranda Gold

iranda Gold Corporation is pleased to announce an agreement with Alaska Hardrock Inc. to lease the Willow Creek Project, seventy-five miles north of Anchorage. The project is accessed by well-maintained roads that can be used year round. The Willow Creek Project covers the majority of the Willow Creek mining district and contains seventy-five patented lode mining claims and sixty-two State of Alaska lode mining claims for a total of approximately 8,700 acres (3,520 hectares). The Willow Creek mining district is notable as the second largest historic lode gold producer in Alaska. Before 1950, the Willow Creek district alone had produced 5 percent of Alaska’s lode gold. Recorded gold production between 1911 and 1942 (when L-208 closed non-essential mining due to WWII) was 667,000 ounces at a grade of 1.2 oz Au/ton. Willow Creek gold is reported to be free milling with greater than 80 percent recovery by gravity alone and recoveries up to 95 percent reported from gravity and flotation processing. Miranda has signed a twenty-year lease with AHI for 100 percent control of the Willow Creek property. Under the terms of the lease, Miranda has made a $50,000 payment with a final $100,000 due after a

ninety day due diligence period. Thereafter, the lease is subject to annual payments of $150,000 or, if production is achieved, various net smelter royalties or revenues.

Ravn Alaska

ra Alaska, the brand that represents the family of airlines that includes Era Aviation, Hageland Aviation Services, and Frontier Flying Service, is rebranding as Ravn Alaska. The airlines under the Era Alaska umbrella will also undergo rebranding. The move is reflective of Ravn Alaska’s ongoing effort to meet its mission of unsurpassed safety, excellent customer service, reliable and on-time flights, and safe and efficient handling of baggage and cargo. The effort is intended to decrease confusion in the marketplace with the Era name and distinguish the airline from others in the aviation industry—a process nearly six months in the making. Era Aviation will become Corvus Airlines, and Hageland Aviation and Frontier Flying Service will operate under the brand name Ravn Connect. Wherever you see Era Alaska today, you will see Ravn Alaska in the near future. The company will continue to operate in its current structure. There has been no change in ownership, staff, or locations served. The rebranding of Era Alaska to Ravn Alaska will happen in phases and will take several months to fully complete. The website will transition from flyera.com to flyravn.com. Ravn Alaska is the largest regional air group based in the state, offering daily passenger and cargo services to nearly one hundred communities across Alaska. All flights operated on Bombardier Dash 8 aircraft feature full in-flight cabin service. 

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ALASKA THIS MONTH By Mari Gallion

trAvel

. The Nullagvik Hotel The front entrance of the Nullagvik Hotel in Kotzebue pays tribute to the traditions of the NANA region people as well as modern design and architecture. Photo courtesy of NANA Management Services, LLC

ullaġvik is Iñupiaq for “A place to sleep,” but guests will find much more than a place to sleep when they visit the Nullaġvik Hotel in Kotzebue, located thirty-three miles north of the Arctic Circle and home to three thousand Iñupiat people. Despite its presence in Kotzebue since 1975, the Nullaġvik of today is fully rebuilt with lots of modern amenities. The Nullaġvik Hotel currently features seventy-one guest rooms and seven suites with modern décor, flat screen cable TV, coffee makers, ironing boards, and wired and wireless Internet access. Also available is a meeting room, an observation room, and an exercise room. Visitors will not only get a place to sleep, but also a great place to eat at the Nullaġvik Hotel Restaurant. In addition to classic American fare, the menu also features traditional Iñupiat specialties that spotlight reindeer as an ingredient and other local, fresh, Alaska ingredients. Local activities and attractions include The Nullaġvik Kotzebue Tour, which gives guests a better picture of Kotzebue’s past and present; the Northwest Arctic Heritage Center, which serves as a visitor center; LaVonne’s Fish Camp, both an excursion and an educational experience; and rafting and camping opportunities. Kotzebue is surrounded by several national parks where guests can pick berries and explore the tundra. Parks and areas of interest include Cape Krusenstern National Monument, Noatak National Preserve, Selawik National Wildlife Refuge, and Kobuk Valley National Park. For more information and reservations, visit the Nullaġvik Hotel website. nullagvikhotel.com 

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ALASKA THIS MONTH By Mari Gallion

dining

Photo courtesy of Marx Bros. Café

Marx Brothers Restaurant

The Marx Bros. Café’s cultivated yet slightly rustic exterior prepares guests for its charming interior, sporting clean, white linens, fresh ﬂowers, and a charming ﬁreplace—and the food is even more meticulously prepared.

March 4 - 6, 2014 Dena’ina Center Downtown Anchorage

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or many Alaskans, the typically cold temperatures of February offer an opportunity to guiltlessly stay indoors, preferably next to a fire. And isn’t it nice when you can have someone else do everything for you—even the thinking—and know that everything will still be the best that it can be? If so, you can trust Marx Brothers Café to impress your guest on Valentine’s Day with their ever-changing prix fix menu in an elegant and uncommon setting for Anchorage. “Marx Brothers is located in a very unique small house,” says Van Hale, one of the partner owners of Marx Brothers. “We change our menus all the time and use fresh Alaska ingredients as much as we can,” which is why their special Valentine’s Day menu is not yet fi xed. Two seatings are available for Valentine’s Day—one early and one late. The restaurant seats only sixty people, so reservations are highly encouraged, if not completely necessary. For those not in the market to impress a Valentine’s Day date, Marx Brothers offers other opportunities to enjoy productive indoor time not only with elegant dinners five days a week, but also with their classes, including their very popular caesar salad class. Choose among food and wine class for $90; bubbles (champagne) and food class for $125; the relatively new wine and cheeses of the world class for $90; and the renowned caesar salad and wine class for $70. Classes start at noon on select days. Some uncommon items regularly offered on Marx Brothers’ dinner menu include seared foie gras, pheasant, swordfish, duck, and rack of lamb. marxcafe.com  www.akbizmag.com

ALASKA THIS MONTH By Mari Gallion

dining

Photos courtesy of Fat Ptarmigan

Fat Ptarmigan

Located in historic downtown Anchorage and featuring a brand new wood-ﬁred oven, Fat Ptarmigan mixes old with new in terms of décor and food, making a memorable experience out of both.

at Ptarmigan is the latest venue to capitalize on the fact that there’s nothing quite like a good, hot, wood-fired pizza on a cold winter’s day. It is unique not only for its rustic/modern interior with brick walls, subway tile, and reclaimed wood on the walls, but also for its location at 5th Avenue and E Street in what is currently known around town as the “solar panel building,” kitty corner from Town Square. “We use alder out of Homer,” says Guy Conley, chef and managing partner, of the wood used in the ovens, “and we focus on fresh, quality ingredients. Everything is handmade. Our sauces are made from scratch.” Guests at Fat Ptarmigan will also experience some unique menu offerings available exclusively at their venue, with creative pizzas that can be found nowhere else. “Hot Coppa is a good one,” Conley says. “We get all our charcuterie and specialty meats out of Zoe’s Meats in Seattle—it’s got spicy coppa, sausage, pepperoni, and roasted red peppers on it, with a spicy red sauce.” “We’re also doing a duck pizza with a duck confit, and it’s finished with an egg in the middle topped with some fresh arugula, red onions, and leaks as well. And then we have a Greek pizza for which we braise our lamb—and it has kalamata olives, fresh feta, and tzatziki sauce.” We have seventeen beers on tap, focusing primarily on Alaskan beer,” Conley says. Pizzas at fat Ptarmigan generally cost between eleven and twenty dollars. Various other menu items are available. fatptarmigan.com 

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ALASKA THIS MONTH By Tasha Anderson

entertAinment

The Duct Tape Ball Last year’s theme for the Duct Tape Ball was “Ductopoly and other Tacky Games” and featured a giant, duct tape Mr. Potato Head. Many outﬁts were made to ﬁt the theme, such as this duct-tape Monopoly dress. Photo by Frank Flavin Photography

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laskans love duct tape, giving to the community, and a good party, so it’s no great shock that those elements have all combined for the last fifteen years to form the Duct Tape Ball. Held on February 15 at the Anchorage Marriott starting at 6 p.m., the Duct Tape Ball includes a cocktail hour, dinner, entertainment, raffle, live and silent auctions, dancing, and live music—this year performed by PandaMonica. Event volunteer Nance Larsen says, “People make incredible gowns and costumes to the theme every year out of duct tape,” in addition to duct tape decorations and sculptures created entirely by volunteers at this duct tape celebration. “We make all of the decor out of duct tape provided by national sponsor Shurtech Duck Brand Duct Tape. We create everything from center pieces to large sculptures to the bars and murals out of duct tape. Our large sculptures are shipped to Shurtech post event to be featured at their national festival,” Larsen says. Every year, 100 percent of the net proceeds are donated to three Alaska charities, selected through an online application process. This year’s charities are Equine Assisted Therapy Alaska, Armed Services YMCA of Alaska, and Anchorage Rotary Club in support of Parks for All. In line this with year’s theme of “2014 Space Odyssey,” this is the Duct Tape Ball’s “final voyage.” Larsen says that “2014 will be the 15th and final year. We have had fifteen years of very successful fundraising with the help of the generosity off the community.” For more information about the event and this year’s charities, please visit the Duct Tape Ball website. ducttapeball.org  www.akbizmag.com

EVENTS CALENDAR

Compiled by Tasha Anderson

Anchorage 2/14-3/9

Homer

Jihad Jones and the Kalashnikov Babes

Jihad Jones is an Arab-American actor who is offered a career-making role as an insane, hostage-holding terrorist. He tries to convince himself that this “dream role” offer to work with the most respected director in the business is not a betrayal of his integrity as an actor and his Muslim culture. This is a hilarious satire spoofing Hollywood about a serious topic: ethnic stereotyping. Cyrano’s Off Center Playhouse, show begins at 3 p.m. or 7 p.m., depending on the date. cyranos.org

The Alaska Marine Gala

Proceeds from this “Blue Tie” event fund science education, marine research, and wildlife rescue at the Alaska SeaLife Center. The evening includes cocktails, a silent and live auction, dinner, awards, dancing, and live music. Dena’ina Civic and Convention Center, 6 p.m. alaskasealife.org

2/21-3/2 Fur Rondy Come join the seventy-seven-year tradition that includes winter sports, native art and culture, and many other events that celebrate life and the frontier spirit of Alaska in downtown Anchorage. Various times and locations. furrondy.net

Alaska Youth Orchestra Winter Concert

6-9

Homer Winter Carnival

The theme for this year’s carnival, “Dancing in the Street,” celebrates the City of Homer’s 50th anniversary. Events include a beer tasting, outhouse race, community dance, dessert auction, Mr. Homer pageant, and more. Various locations and times. homeralaska.org

Juneau 8-9

Wearable Arts Extravaganza

Presented by the Juneau Arts & Humanities Council, this celebration of wearable art includes a silent auction and performances that raise funds for scholarships, grants, and the Juneau Arts & Culture Center. This year’s theme is “Technicolor.” Centennial Hall, silent auction begins Saturday at 7 p.m. and Sunday at 2 p.m. jahc.org

Eaglecrest Winter Fireworks Spectacular

Participants can stay warm gathering around the bonfire while watching the Torchlight Parade and the fireworks lighting the sky. Eaglecrest Ski Area, 4 p.m. skijuneau.com

Sitka 6-8

Sitka Jazz Festival

The season kicks off with an extravaganza of music making: the two ensembles of the Alaska Youth Orchestras—the Youth Symphony and the Youth Philharmonic—will be joined by the Junior High Youth Symphony, both the orchestras and band. The finale of the concert will be the joining of four orchestras in a performance of Tchaikovsky’s Symphony No. 2 Finale. The concert will also include a guest appearance by the Alaska Dance Theatre. Alaska Center for the Performing Arts, 7 p.m. anchorageyouthsymphony.org

The three days of festival are full of several concerts by local and visiting students as well as local and visiting professional artists, as well as all day workshops Saturday. The Friday Student concert at 6 p.m. and Brown Bag concerts Thursday and Friday at Noon are free to the public. Various locations and times. sitkajazzfestival.com

2/28

14-15

Go Red for Women Conference and Luncheon

Women gather at this luncheon to fight against heart disease in women, hearing survivor stories, learning how heart disease can affect the family unit, and how to help stop heart disease. Den’aina Civic & Convention Center, 9 a.m. anchoragegoredluncheon.ahaevents.org

Talkeetna

Cordova 7-9

Complexities of Love

This is the Denali Art Council’s annual Valentine variety show, exhibiting local talents ranging from song and dance to multimedia presentations, all related to love in all its complexities. Sheldon Community Arts Hangar, 8 p.m. talkeetnachamber.org

Wasilla Iceworm Festival

2/14-3/9

Pollyanna

Events at the festival include the variety show/Miss Iceworm coronation, survival suit races, blessing of the fleet, parade, shaving permits, food fair, men’s basketball tournament, arts and crafts show, photo show, iceworm tail hunt, and ice cream feed. Various locations and times. cordovachamber.com

Valley Performing Arts presents Pollyanna, the classic story of the “greatest optimist of all time.” Valley Performing Arts, Friday and Saturdays at 8 p.m., Sundays at 2 p.m. valleyperformingarts.org

Fairbanks

This is an annual fundraising event benefitting and coordinated by the Mat-Su Sertoma Club, which promotes hearing health in the Valley and assists other non-profit organizations. Registered plungers dress up and wear costumes; prizes are awarded to those who have raise the most funds or have the best costume, in addition jumper raffle prizes. Wasilla Lake Resort; registration begins at 10 a.m., the plunge is at Noon. matsuhearing.org/polar-plunge

19-23

Winterfest

This outdoor festival celebrates both winter and the Denali National park year-round community. Events include ice and snow sculpting, dog sled rides, games and other activities, and a s’mores station. Denali National Park & Preserve, all day. denaliborough.govoffice.com

2/24-3/30

Mat-Su Plunge

BP Ice Art Championships

The ice competitions at this annual event attract more than one hundred ice artists and approximately forty-five thousand visitors from Alaska and across the world. The events include professional, amateur, and youth competitions and awards ceremonies. George Horner Ice Park, various times. icealaska.com

2/27-3/1

Festival of Native Arts

The Festival of Native Arts provides cultural education and sharing through Native dance, music, and traditional arts, continuing the student-led tradition that began in 1973 of bringing together artist, performers, and performance groups in a celebration of Native cultures. Davis Concert Hall, UAF Campus, various times. fna.community.uaf.edu

Motown Cabaret Fundraiser

Enjoy a night of Motown music, dancing, and cabaret-style refreshments at the Fairbanks Summer Arts Festival’s annual fundraiser. Alaska Centennial Center for the Arts, 7:30 p.m. fsaf.org www.akbizmag.com

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Whats Next? March in Alaska Business Monthly

BUILDING ALASKA

FEATURE ARTICLES

■ A new bridge across the Colville River ■ ANC’s: Economic impact ■ A $50 million subsea pipeline on communities ■ Financial Services: Project financing across Cook Inlet ■ North Slope water and in construction ■ Insurance: Business Insurance wastewater facility ■ Annual Construction Directory Must-Haves ■ Oil & Gas: Infrastructure develALASKA & PACIFIC opment on the North Slope ■ Oil & Gas: Oilfield fabrication NORTHWEST facilities are busy again ■ Alaska company expands south, ■ Services: Big changes in the auto Pacific NW company comes north body repair industry ■ A closer look at shared resources, goods, and services

■ Transportation: Rural passenger and cargo options ■ Visitor Industry: Corporate sponsors of the Iditarod

DEPARTMENTS

■ From the Editor ■ View from the Top ■ HR Matters ■ Agenda ■ Alaska Trends ■ Right Moves ■ Inside Alaska Business ■ Alaska This Month: Dining, Travel, Entertainment & Events Calendar

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ALASKA TRENDS

By Michael Malone

Alaska Government Employment: State and Local Jobs Outpace Federal Gains signiﬁcant over losses from 2001 through 2012

Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

Alaska Government Jobs 2001-2012

Federal State Local

45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

ince 2001, Alaska state and local government jobs gained in number while federal government jobs in Alaska fell slightly, according to data published by Alaska’s Department of Labor and Work Force Development (DOLWD). The department’s Research and Analysis (R&A) Section publishes monthly figures containing employment statistics by job sector and calculates an annual average for each. DOLWD’s R&A Section offers a number of Labor Market Information products and services. They deliver information to contracted customers, respond to individual information requests, make presentations, and collect information. Most of the data produced is available on the Internet and some are available in hard copy. This includes the size of the labor force (total number of people employed plus those seeking employment), the number and percent of workers unemployed, the number and percent of the workforce that were not Alaska residents, the number and percent of new hires, the number of layoffs, monthly estimate of payroll jobs by industry, quarterly employment and earnings by industry, short and long-term employment forecasts by industry, the number of new hires by industry, employment and wages by occupation, and the number of new hires by occupation. The chart shows that since 2001, Alaska state government

jobs increased from 22,900 to 26,100 in 2012. That represented an increase of nearly 14 percent. Alaska local government job employment increased from 38,800 to 41,700 during the same period, which reflected an increase of 7.5 percent. The chart also displays a slight drop in federal government employment in Alaska during the same time period, dipping from 16,800 jobs in 2001 to 16,300 jobs in 2012. Many states experienced a decline in their state and local government jobs during that time period. Those declines were chiefly associated with the adverse fallout from the recession of 2008, which also slowed the growth of their federal government jobs. Alaska’s strategic military installations helped buffer Alaska from experiencing any significant federal government job losses. 

SOURCE: Alaska Department of Labor and Work Force Development, Research and Analysis Section

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135

ALASKA TRENDS

Indicator

By Michael Malone

Units

Period

Latest Report Period

Previous Report Period (revised)

Year Over Year Change

Year Ago Period

GENERAL Personal Income—Alaska US $ 3rdQ13 36,923 36,557 36,123 Personal Income—United States US $ 3rdQ13 14,180,492 14,032,587 13,683,809 Consumer Prices—Anchorage 1982-1984 = 100 1st H13 210.85 206.62 205.22 Consumer Prices—United States 1982-1984 = 100 1st H13 232.37 230.34 228.85 Bankruptcies Alaska Total Number Filed October 45 41 69 Anchorage Total Number Filed October 22 21 53 Fairbanks Total Number Filed October 6 6 9 EMPLOYMENT Alaska Thousands October 331.80 331.90 343.03 Anchorage & Mat-Su Thousands October 178.60 184.40 191.64 Fairbanks Thousands October 39.90 41.70 44.84 Southeast Thousands October 35.75 40.50 36.60 Gulf Coast Thousands October 30.30 33.50 35.51 Sectorial Distribution—Alaska Total Nonfarm Thousands October 329.3 345.6 331.8 Goods Producing Thousands October 45.4 51.1 46.5 Services Providing Thousands October 282.0 294.5 285.3 Mining and Logging Thousands October 18.5 18.7 17.6 Mining Thousands October 17.9 18.1 17.1 Oil & Gas Thousands October 14.7 14.8 13.8 Construction Thousands October 19.3 20.1 19.2 Manufacturing Thousands October 7.6 12.3 9.7 Seafood Processing Thousands October 3.6 8.2 5.9 Trade/Transportation/Utilities Thousands October 62.3 66.6 63.2 Wholesale Trade Thousands October 5.7 6.0 6.1 Retail Trade Thousands October 35.8 36.8 35.8 Food & Beverage Stores Thousands October 6.3 6.3 6.3 General Merchandise Stores Thousands October 9.7 9.9 10.1 Trans/Warehouse/Utilities Thousands October 20.8 23.8 21.3 Air Transportation Thousands October 5.7 6.1 5.7 Information Thousands October 6.1 6.1 6.2 Telecommunications Thousands October 3.9 4.0 4.1 Financial Activities Thousands October 13.5 13.6 13.0 Professional & Business Svcs Thousands October 27.8 29.2 28.9 Educational & Health Services Thousands October 47.2 47.0 46.7 Health Care Thousands October 33.7 33.6 33.1 Leisure & Hospitality Thousands October 29.6 36.1 29.7 Accommodation Thousands October 6.6 9.5 7.3 Food Svcs & Drinking Places Thousands October 19.2 21.5 18.6 Other Services Thousands October 11.7 11.9 11.9 Government Thousands October 83.8 84.0 85.7 Federal Government Thousands October 14.5 15.1 15.7 State Government Thousands October 26.4 26.7 26.9 State Education Thousands October 8.6 8.4 8.7 Local Government Thousands October 42.9 42.2 43.7 Local Education Thousands October 23.7 23.0 26.0 Tribal Government Thousands October 3.3 3.4 4.1 Labor Force Alaska Thousands October 363.77 366.05 364.63 Anchorage & Mat-Su Thousands October 200.24 197.19 201.65 Fairbanks Thousands October 46.73 46.96 47.21 Southeast Thousands October 38.63 41.28 38.86 Gulf Coast Thousands October 38.63 40.20 38.25 Unemployment Rate Alaska Percent October 6.5 6.5 6.8 Anchorage & Mat-Su Percent October 5.1 4.8 5.1 Fairbanks Percent October 5.1 4.6 5.1 136

Alaska Business Monthly | February 2014

2.21% 3.63% 2.74% 1.54% -34.78% -58.49% -33.33%

-3.27% -6.80% -11.01% -2.33% -14.67% -0.75% -2.37% -1.16% 5.11% 4.68% 6.52% 0.52% -21.65% -38.98% -1.42% -6.56% 0.00% 0.00% -3.96% -2.35% 0.00% -1.61% -4.88% 3.85% -3.81% 1.07% 1.81% -0.34% -9.59% 3.23% -1.68% -2.22% -7.64% -1.86% -1.15% -1.83% -8.85% -19.51% -0.24% -0.70% -1.02% -0.59% 0.99% -4.41% 0.00% 0.00%

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ALASKA TRENDS

Indicator

By Michael Malone

Units

Period

Latest Report Period

Previous Report Period (revised)

Year Ago Period

Southeast Percent October 6 4.7 5.9 Gulf Coast Percent October 7.1 6 7.3 United States Percent October 7.3 7.2 7.9 PETROLEUM/MINING Crude Oil Production—Alaska Millions of Barrels October 16.14 15.33 16.95 Natural Gas Field Production—Alaska Billions of Cubic Ft. October 7.72 7.48 9.12 ANS West Cost Average Spot Price $ per Barrel October 104.82 110.48 107.30 Hughes Rig Count Alaska Active Rigs October 10 12 9 United States Active Rigs October 1744 1760 1834 Gold Prices $ Per Troy Oz. October 1316.18 1348.8 1,746.68 Silver Prices $ Per Troy Oz. October 21.92 22.56 33.18 Zinc Prices Per Pound October 0.94 0.93 0.96 REAL ESTATE Anchorage Building Permit Valuations Total Millions of $ October 29.71 36.46 24.96 Residential Millions of $ October 10.57 15.28 9.69 Commercial Millions of $ October 19.14 21.18 15.27 Deeds of Trust Recorded Anchorage—Recording District Total Deeds October 871 857 1462*GeoNorth Fairbanks—Recording District Total Deeds October 150 247 386 VISITOR INDUSTRY Total Air Passenger Traffic—Anchorage Thousands October 360.58 436.49 346.63 Total Air Passenger Traffic—Fairbanks Thousands October 75.12 89.52 71.46 ALASKA PERMANENT FUND Equity Millions of $ October 48,263 47,033.70 42,369.00 Assets Millions of $ October 49,163.50 47,906.20 42,994.90 Net Income Millions of $ October 125.5 297.9 127.5 Net Income—Year to Date Millions of $ October 1162.7 1411 34.8 Marketable Debt Securities Millions of $ October 77.1 80.6 33.7 Real Estate Investments Millions of $ October 34.6 29.7 35.90 Preferred and Common Stock Millions of $ October 852.7 1,165.10 (135.3) BANKING (excludes interstate branches) Total Bank Assets—Alaska Millions of $ 2ndQ13 2,186.18 2,163.28 2,100.47 Cash & Balances Due Millions of $ 2ndQ13 47.55 45.15 55.74 Securities Millions of $ 2ndQ13 133.58 135.91 163.91 Net Loans and Leases Millions of $ 2ndQ13 1,185.98 1,201.04 1,153.64 Other Real Estate Owned Millions of $ 2ndQ13 6.38 7.31 8.21 Total Liabilities Millions of $ 2ndQ13 1,907.74 1,894.70 1,832.07 Total Bank Deposits—Alaska Millions of $ 2ndQ13 1,852.29 1,837.36 1,787.23 Noninterest-bearing deposits Millions of $ 2ndQ13 588.36 567.54 527.08 Interest- bearing deposits Millions of $ 2ndQ13 1,263.92 1,269.82 1,260.16 FOREIGN TRADE Value of the Dollar In Japanese Yen Yen October 97.81 99.15 78.92 In Canadian Dollars Canadian $ October 1.04 1.04 0.99 In British Pounds Pounds October 0.62 0.63 0.62 In European Monetary Unit Euro October 0.73 0.75 0.77 In Chinese Yuan Yuan October 6.13 6.16 6.31 www.akbizmag.com

Year Over Year Change

1.69% -2.74% -7.59%

-4.76% -15.35% -2.31% 11.11% -4.91% -24.65% -33.94% -1.64%

19.02% 9.10% 25.32% -40.42% -61.14%

4.02% 5.12%

13.91% 14.35% -1.57% 3241.09% 128.78% -3.62% -730.23%

4.08% -14.69% -18.50% 2.80% -22.29% 4.13% 3.64% 11.63% 0.30%

23.94% 5.45% -0.31% -5.32% -2.78%

February 2014 | Alaska Business Monthly

137

Advertisers Index Alaska Air Cargo.....................................................79 Alaska Air Transit................................................129 Alaska Communication Systems (ACS)...................................................61 Alaska Dreams Inc.................................................35 Alaska GSHC 2014............................................130 Alaska Miners Assoc...........................................92 Alaska Native Village CEO Assoc. (ANVCA)...............................................................27 Alaska Printer’s Supply.....................................49 Alaska Rubber . .....................................................115 Alaska Seafood Marketing Institute (ASMI)..............................................89 Alaska Traffic Co....................................................71 Alaska USA Federal Credit Union...............97 American Fast Freight........................................75 American Marine................................................118 American Marine/PENCO.............................135 Anchorage Museum...........................................20 Anchorage Opera...............................................132 Architects Alaska..................................................22 Arctic Office Products (Machines).......100 Avis...............................................................................132 BDO............................................................................... 23 Bering Shai Marine LLC...................................116 Bering Straits Native Corp.............................78 Bezek Durst Seiser...............................................26 BP Exploration (Alaska)..................................110

138

Brand Energy & Infrastructure................... 25 Calista Corp. . ...........................................................33 Carlile Transportation Systems....................77 Chris Arend Photography.............................138 Clarion Suites | Quality Suites ...................131 Construction Machinery Industrial LLC......................................................2 Cornerstone Advisors........................................15 Cruz Construction Inc......................................40 CRW Engineering Group.................................34 Delta Leasing LLC................................................113 Design Alaska...........................................................31 Dino’s Donuts Inc...............................................134 Donlin Gold............................................................... 45 Dowland-Bach Corp......................................... 114 Doyon Limited........................................................111 EDC Inc........................................................................26 Fairweather LLC.......................................................9 First National Bank Alaska.................................5 Fountainhead Hotels/ Sophie Station Suites...................................91 GCI..................................................................104, 140 Golder Associates Inc.........................................39 Granite Construction......................................... 47 Great Originals Inc...............................................22 Harley Marine Services....................................85 Hawk Consultants LLC.................................... 121 Historic Anchorage Hotel.............................129

Alaska Business Monthly | February 2014

Island Air Express................................................131 Judy Patrick Photography.............................. 95 Lifewater Engineering Co................................28 Lounsbury and Associates...............................51 Lynden Inc. ............................................................101 MagTec Alaska LLC............................................123 Motion Flow Control Products Inc........106 Michael Baker Jr. Inc..........................................20 N C Machinery.........................................................37 NALCO Champion..............................................123 NANA Construction LLC..................................41 NCB................................................................................ 95 North Slope Telecom Inc............................... 121 Northern Air Cargo...............................124, 125 Northland Services..............................................82 NTCL ............................................................................85 Offshore Systems Inc......................................105 Olgoonik Development Corp.......................29 Olgoonik/Fairweather LCC........................103 Oxford Assaying & Refining Inc.................133 Pacific Alaska Freightways.............................69 Pacific Environmental Corp. (PENCO)...............................................119 Pacific Pile & Marine..................126, 127, 128 Pacific Rim Media/ Smart Phone Creative................................ 45 Paramount Supply..............................................134 Parker, Smith & Feek...............................................3

PDC Inc. Engineers..............................................38 Pen Air...........................................................................81 Personnel Plus.....................................................130 PND Engineers Inc............................................107 Procomm Alaska...................................................117 R&M Consultants..................................................32 RSA Engineering Inc...........................................44 Scan Office.................................................................21 Seekins Ford Lincoln Fleet...........................107 SGS...................................................................................51 Society of Marketing Professionals Alaska..................................134 Span Alaska Consolidators..............................13 Stellar Designs Inc..............................................134 The Nature Conservancy..................................11 Totem Ocean Trailer Express (TOTE).....83 Trailercraft Inc. Freightliner of Alaska....84 Tutka LLC....................................................................46 UAA College of Business & Public Policy..................................................63 UIC Bowhead-Crowley LLC...........................76 UMIAQ.........................................................................46 Usibelli Coal Mine Inc........................................44 Vigor Alaska.............................................................80 Washington Crane & Hoist.............................19 Waste Management .......................................106 Watterson Construction................................. 43 West-Mark Service Center.......................... 114

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AGENDA

Compiled By Tasha Anderson

February

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Alaska Forum on the Environment

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February 3-7—Dena’ina Civic & Convention Center, Anchorage: For 2014, the forum will provide expanded event content on issues surrounding coastal communities and general emergency response for remote communities. This will include tsunami impacts, marine debris, flooding, earthquakes, and coastal erosion. akforum.com

Anchorage AEYC Early Childhood Conference

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February 5-8—Join other early childhood community members to learn new strategies, hear about the latest research, try out a few practical techniques, and discover new tools and resources to help face any challenge. anchorageaeyc.org

Alaska Head Start Association Conference

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Top 40 Under 40

Annual Governor’s Safety & Health Conference March 4-6—Dena’ina Civic and Convention Center, Anchorage: The conference includes recognition of the recipients of the Governor’s Safety Award

www.akbizmag.com

May

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Business of Clean Energy in Alaska Conference

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April 7-13—Carlson Center, Fairbanks: “Growing Alaska: Can you dig it? Catch my drift?” is theme of the Alaska Miners Association 2014 conference. There will be technical sessions, short courses, a trade show, and field trips to local mines/ projects. alaskaminers.org

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Seismological Society of America Annual Meeting April 30- May 2, 2014—Anchorage: A stimulating exchange of research on a wide range of topics with colleagues from all

May 12-13, 2014—Sheraton Hotel, Anchorage: Meet more than two hundred human resources professionals, office managers and administrators, directors, and adult educators representing both public and private industry. This event will bring professionals from around the state to learn more about their responsibilities as HR Professionals. alaska.shrm.org

International HETL Conference May 31-June 2, 2014—Anchorage: The theme of this year’s conference for the Higher Education Teaching & Learning Portal is “Innovative Learning-Scapes: e-Scapes, play-Scapes and more.” The aim is to examine the impacts that social and mobile media and networks are having on learning environments in higher education. hetl.org

June

■

National Congress of American Indians (NCAI) Mid-Year Conference

Visit Anchorage Annual Seymour Awards Banquet April 11, 2013—Dena’ina Civic and Convention Center, Anchorage: A celebration of the industry’s successes of the past year. Special award presentations will be made to Visit Anchorage partners whose exceptional efforts have made these achievements possible. anchorage.net

May 1-2, 2014—Dena’ina Civic and Convention Center, Anchorage: The conference provides a venue for attendees to learn about and share information on the opportunities, benefits, and challenges of renewable energy and energy efficiency in Alaska and to network with those working in these fields. bceaconference.com

Alaska State HR Conference

April 4, 2014—Dena’ina Civic and Convention Center, Anchorage: Sponsored by the Alaska Journal of Commerce, this event is a recognition of the state’s top young professionals younger than the age of forty who have demonstrated professional excellence and a commitment to community. alaskajournal.com

AMA 24th Biennial Mining Conference

March

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March 12-14—Centennial Hall, Juneau: The Summit is an opportunity for Southeast leaders to discuss issues vital to the region including energy, resource development, transportation, tourism and economic development, and provides members a chance to meet with lawmakers. seconference.org

April

Arctic Ambitions III: Commercial Development of the Arctic February 28-29—The Hotel Alyeska, Girdwood: Arctic Ambitions III will concentrate on the theme of international trade and business opportunities that flow from resource development in the Arctic. While policy and research inform the discussion, the conference focuses on global markets, international trade and logistics. wtcak.org

March 5-8—Wedgewood Resort, Fairbanks: The theme of this year’s meeting of the Alaska Anthropological Association is “Anthropology and Art.” Workshops will be held March 5, and the conference will include artistic events. alaskaanthropology.org

Southeast Conference 2013 Mid-Session Summit

ASTE Annual Conference February 22-25—Hotel Captain Cook, Anchorage: This four day event kicks off with the annual Leadership Summit and three- to six-hour workshops. The last two days will feature Keynote speakers, the iDidaContest, and dozens of technology sessions. aste.org

March 6-7—Hotel Captain Cook, Anchorage: The Southwest Alaska Municipal Conference’s annual summit and membership meeting. swamc.org

AAA 2014 Annual Conference

Engineers Week

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over the world. Oral presentations, poster sessions, exhibits, field trips, business meetings, and social gatherings all provide participants the opportunity to meet and share with their peers. seismosoc.org

SWAMC Annual Economic Summit

February 6-8—This year’s theme is “Building Healthy Minds and Bodies.” There will be a one-day pre-conference session with training workshops on Wednesday, February 5. akheadstart.org February 16-22—Engineers Week celebrates the positive contributions engineers make to society and is a catalyst for outreach across the country to kids and adults alike. Various events and activities take place around the state, see website for more information. anc-aspe.org/eweek.html

of Excellence and the Governor’s Special Achievement Award and offers training, education, and the latest tools and technology for workplace safety and health. labor.alaska.gov/lss/asac.htm

June 8-11, 2014—Dena’ina Civic and Convention Center, Anchorage: The National Congress of American Indians, founded in 1944, is an American Indian and Alaska Native organization serving the broad interests of tribal governments and communities. ncai.org

July

■

US National Conference on Earthquake Engineering July 21-25, 2014—Dena’ina Civic and Convention Center, Anchorage: The conference, on the 50th Anniversary of the Great Alaska Earthquake and Tsunami, will provide an opportunity for researchers and practitioners to share the latest knowledge and techniques to mitigate the damaging effects of earthquakes and tsunamis. 10ncee.org

February 2014 | Alaska Business Monthly

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