June - 2012 - Alask Business Monthly by Alaska Business

June 2012

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SHELL POISED FOR ALASKA PROSPECTS

Page 66

special sections

Transportation page 92 Building Alaska page 76 Finance, Insurance & Real Estate page 24

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June 2012 TA B L E DEPARTMENTS

CONTENTS

ABOUT THE COVER

From the Editor. . . . . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . . . . 8 Right Moves . . . . . . . . . . . . . . . . . . . 50 Market Squares . . . . . . . . . . . . . . . . 55 Alaska This Month . . . . . . . . . . . . . . 60 Events Calendar . . . . . . . . . . . . . . . . 63 Alaska Trends . . . . . . . . . . . . . . . . . 127 Ad Index . . . . . . . . . . . . . . . . . . . . . 130

FEATURES

Shell’s drill ship the Noble Discoverer is shown in Seattle, waiting to be towed to Alaska summer for exploration work in the Chukchi Sea (story begins on page 66). Photo courtesy of Shell Alaska.

ARTICLES Tourism 20 | Alaska Marine Highway System Critical transportation link also serves visitors By Nicole A. Bonham Colby

View from the Top

Small Business Photo courtesy of Alaska Pure Sea Salt

Oil & Gas 64 | Aurora Gas Holding its own in Cook Inlet By Vanessa Orr Oil & Gas 66 | Shell Poised for Alaska Prospects Plans include July through October drilling By Zaz Hollander Oil & Gas 70 | TAPS Turns 35 Alyeska Pipeline Service Co. honored By Susan Sommer

12 | Mr. Whitekeys Boss By Peg Stomierowski

Sterling Hwy

Seward Hwy

Local News

Environmental Services 44 | Decontaminating Alaska Cleaning up the 49th state By K.T. McKee

Regional Focus 1

Native Business 40 | 8(a) and Alaska Native Corporations Working as intended to help fulfill mandates By Paula Cottrell

Oil & Gas 72 | Cranked Up Exploration Is it enough to dent decline? By Mike Bradner

Photo courtesy Anchorage School District

36 | A Salt of the Sea Company By Will Swagel

Other Roads

Telecom & Tech 52 | Is Your IT Up to Speed? Finding the right technology to take your business into the future By Russell Girten

KPB Boundary

5 10 Miles

The information depicted hereon is for a graphical representation only of best available sources. We assume no responsibility for any errors on this map

14 | The Kenai Peninsula Borough Optimism high for region By Tracy Barbour ■ 4

Health & Medicine 56 | WISEWOMAN Wins Outstanding Rural Health Award SEARHC’s program for women’s health is one to model

126 | Carol Comeau’s Enduring Gift Endowment fund established for Alaska youth

www.akbizmag.com • Alaska Business Monthly • June 2012

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June 2012 OF

special section

Finance, Insurance & Real Estate

Building Alaska

24 | Wealth Management for Alaskans By Joette Storm 26 | SIDEBAR: Crowdfunding Fraud Federal JOBS Act preempts state review By Joette Storm

76 | Building Community in Chefornak Constructing a new school in the village By Nichelle Seely

CONTENTS

TA B L E

28 | Workplace Banking is a Triple Win Helping employees, employers and financial institutions By Belinda L. Sunderland 30 | Long Term Care Insurance Does it ensure long term care? By Mari Gallion

80 | A (Second-Growth) Cabin in the Woods Tongass pilot project explores value-added forest products By Dustin Solberg

84 | The 2012 Building Forecast Alaska’s construction spending By Gene Storm 88 | Linking Transportation to Resources Building new infrastructure for mining By Julie Stricker

32 | Commercial Real Estate Vacancies What’s really happening behind the scenes in Anchorage By Brandon J. Spoerhase

CORRECTIONS March: Vladivostok is in Primorskiy Krai, and you can’t drink Mead Treadwell. May: Larry Persily is not a jester. We apologize for our errors in geography and spelling. ■ 6

Transportation Photo courtesy of the City of Thorne Bay

special section

Photo by Gregg Cameron, Engineer, Akutan Airport / Courtesy of Kiewit

92 | Bigger Alaska Transportation Budget Spending tops $719 million By Gene Storm 96 | ADS-B Technologies Changing the face of aviation safety and surveillance By Ross Johnston

100 | Alaska Rural Ports Update Investing in improvements By Rindi White 105 | Hear That Whistle Moan Historic steam engine finds its way home By Dimitra Lavrakas 108 | Alaska Business Monthly’s 2012 Transportation Directory

www.akbizmag.com • Alaska Business Monthly • June 2012

FROM THE EDITOR

‘If you got it, we brought it’

Volume 28, Number 6 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

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

Susan Harrington Mari Gallion Tasha Anderson

David Geiger Linda Shogren Chris Arend Judy Patrick

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

Jim Martin Charles Bell Anne Campbell Bill Morris Tasha Anderson Mary Schreckenghost

501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503 (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., PO Box 241288, Anchorage, Alaska 99524; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2012, 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.

ves Thompson of the Alaska Trucking Association told me that a few months ago. It’s the motto for the Alaska transportation industry, and boy, does he ever know what he’s talking about! The association serves as the voice of the Alaska transportation industry—a multimodal and an intermodal endeavor. Case in point: On May 14, I drove my old white jeep with the weathered gray duct tape flapping off the side mirror to the historic train depot in downtown Anchorage, boarded an Alaska Railroad double-decker visitor railcar that took me out along Turnagain Arm of Cook Inlet and back to the Bill Sheffield Anchorage Railroad Depot at Ted Stevens Anchorage International Airport to watch six chefs compete in the “Great Alaska Seafood Cook Off " sponsored by the Alaska Seafood Marketing Institute. The crowd was enjoying wine from J. Lohr Vineyards and Winery of California, beer from Alaskan Brewing Co., wild Alaska seafood from the ocean, grilled Alaska Grown vegetables and a cornucopia of delicacies from afar. The chefs prepared fabulous wild Alaska seafood creations in their one-hour staggered windows and some big announcements were made. I kept thinking of that motto: “If you got it, we brought it.” I envisioned the intermodal and multimodal transportation methods and logistics it took just to put the Great Alaska Seafood Cook Off together, and I got it. Marilyn Romano, Alaska regional vice president for Alaska Airlines, announced the fall 2012 release of Salmon-Thirty-Salmon II, a Boeing 737-800 with a beautiful wild Alaska salmon painted from tail to nose onto the aircraft, which will carry Alaskans and all things Alaska via air—a huge component of the transportation industry in the state. Another component is marine transportation—and the sea was well represented. NOAA’s Steve Davis announced the release of the agency’s 15th annual “Status of Stocks: Report on the Status of U.S. Fisheries for 2011,” which includes the news that the Bering Sea snow crab stocks have been declared rebuilt and the Eastern Bering Sea walleye pollock biomass is at 80 percent of maximum sustainable yield—good news for Alaska fisheries. Davis also reminded everyone of last fall’s news that the Dutch Harbor-Unalaska port led the nation with the highest amount of fish landed for the 22nd year in a row in 2010. Several modes of transportation are used for all that wild Alaska seafood that finds it way to the far corners of the globe. Getting back to the festivities, the six judges, all chefs—Jose Souto of Westminster Kingsway College in London, Christine Keff from the Flying Fish in Seattle, Dan Enos from Oceanaire in Boston, Erik Slater from the Resurrection Roadhouse in Seward, Naomi Everett from the University of Alaska Anchorage Culinary School, and Alaskan Rob Kinneen of fresh49.com—could not have been there without several forms of transportation. Also true for the chefs: Aaron AplingGilman, Seven Glaciers, Girdwood; Mary Helms, Joint Base Elmendorf-Richardson, Anchorage; Kevin Lane, Alaska Culinary Academy, Seward; Kristi Skaflestad, Chipper Fish, Hoonah; Gil Turturici, The Chart Room, Kodiak; and Christopher Vane, Crush Wine Bistro, Anchorage. Vane won the competition with his white troll king salmon pinwheels and will represent Alaska at the "Great American Cook Off " in New Orleans Aug. 11. Even the guests were multimodal. Take Bill Sheffield for example, and what comes to mind—the port, the railroad, the airport—he’s a fine example of how well-connected Alaska’s transportation industry is. And the June issue is another fine example, with three special sections—Transportation; Building Alaska; and Finance, Insurance and Real Estate. We’ve put together another really great magazine. Enjoy! —Susan Harrington, Managing Editor

www.akbizmag.com • Alaska Business Monthly • June 2012

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INSIDE ALASKA BUSINESS

DOWL HKM

laska-based DOWL-HKM is celebrating 50 years in business this year, marking its half-century mark in Alaska. The company held an open house in May with all three of its presidents, Lew Dickinson, Mel Nichols and current President Stewart Osgood, in attendance. DOWL HKM started in Anchorage in 1962 and has grown to a firm with 18 offices in six western states. The firm has grown through organic growth and mergers but the overall goal of positively shaping the world with exemplary professional service, remains the same. DOWL HKM is an Alaska Nativeowned company (NANA Development Corp. owns 51 percent), and serves a wide range of clients, including private developers and land owners; federal, state and local governments; and architects, construction contractors and other engineering firms. DOWL HKM is headquartered in Anchorage, Alaska.

Sealaska

ealaska, Sealaska Heritage Institute and Sitka Tribe of Alaska are formalizing an alliance to work together for the management of the five cultural sites on Sealaska land. The agreement also includes additional sites that Sealaska may receive in the future that are in the traditional territory of the Sitka Tribe and clans. Sealaska received title to these “cemetery sites and historical places” under a provision of the 1971 Alaska Native Claims Settlement Act. Under this provision, Sealaska requested conveyance of 96 sites and over 80 have been conveyed

Compiled by Mari Gallion

to date, including the five sites near Sitka. Sealaska, SHI and STA went to Congress and agreed to give up valuable timbered economic lands in the Tongass National Forest to receive the sites for the benefit of the Natives in Southeast Alaska.

Alaska Exports Reach Record Highs

overnor Sean Parnell announced Alaska’s 2011 exports increased 26.1 percent to $5.2 billion, the highest annual export value ever. In 2011, the value of Alaska’s seafood exports grew 35.1 percent to $2.5 billion, and mineral ores increased 31.7 percent to $1.8 billion. Precious metals, primarily gold, were up 24.7 percent to $266.4 million. Forest products exports increased 1.9 percent to $119.3 million. Alaska Seafood Marketing Institute and Alaska Industrial Development and Export Authority are two organizations credited for fostering this increase. China topped the list of Alaska’s export markets with a $1.4 billion total. The 2011 exports to China comprised seafood at $836.1 million, mineral ores at $480.1 million, forest products at $57.5 million, fish meal at $47.4 million, $12 million in energy, and $5.9 million in other categories. Exports to Japan totaled $1.1 billion, to Korea $644 million, to Canada $583.9 million, to Germany $261.1 million, to Switzerland $252.9 million and to $205.6 million to Spain.

Mat-Su Animal Shelter

ore than 39 volunteers at the Animal Shelter for the Matanuska-

• Pile Sockets • Shoring • Rock Anchors • Tie-Backs • Cofferdams • Foundations • Drilling for Large Diameter Cassons ■ 8

Susitna Borough were honored for their dedication with the President’s Volunteer Service Award. More than 200 active volunteers donate a total of more than 800 hours a month to help care for the animals, raise public awareness, and provide comfort to the animals during their stay at the Shelter. The President’s Council on Service and Civic Participation was established in 2003 to recognize the valuable contributions volunteers are making in our communities and encourage and inspire more people to engage in volunteer service. The award recipients receive a congratulatory letter from the President of the United States.

Kendall Toyota/Scion of Anchorage and Lexus of Alaska

endall Toyota/Scion of Anchorage and Lexus of Alaska opened a brand new 80,000-square-foot facility in South Anchorage last month after 12 months of construction. The facility is more than double the size of the former location and believed to be the largest automobile dealership in Alaska. Centrally located and sitting on more than 12 acres, Kendall can now stock hundreds of Toyotas, Scions, Lexus’ and used vehicles all in one location. The new dealership employs more than 150 and is open seven days a week for both sales and service. “With the opening of this new facility we look forward to growing with our customers, providing superior customer service and continuing to support our community,” says Mike Morris, General Manager. The company plans several grand

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www.akbizmag.com • Alaska Business Monthly • June 2012

INSIDE ALASKA BUSINESS opening celebrations over the next several months. Kendall Auto Group is a family owned business representing 14 franchises in 16 locations and is one of the largest privately held auto dealership groups in the Pacific Northwest, with 2012 marking its 75th year of doing business in the Pacific Northwest.

Huna Heritage Foundation

ive master weavers from Hoonah traveled to Washington, D.C., to study hundreds of Tlingit and Haida woven artifacts in the Smithsonian Institution’s collections. Huna Heritage Foundation coordinated the trip in conjunction with the Smithsonian’s Recovering Voices program to augment a series of weaving workshops held in Hoonah last year. Huna Heritage Foundation, the National Park Service and the Smithsonian Institution funded the trip. The master weavers focused specifically on spruceroot woven basketry at the Smithsonian’s National Museum of the American Indian and National Museum of Natural History. The group had access to the entirety of the museums’ Tlingit, Haida and Pacific Northwest indigenous collections during their five days at the facilities.

Providence Family Medicine Center

rovidence Family Medicine Center earned national recognition as a Level 3 Physician Practice Connections PatientCentered Medical Home by the National

Compiled by Mari Gallion

Committee for Quality Assurance. PFMC is only the third clinical organization in Alaska to receive Recognition. The Patient-Centered Medical Home is a model of health care delivery that aims to improve the quality and efficiency of care. The standards emphasize the use of systematic, patient-centered, coordinated care that supports access, communication and patient involvement.

Alaskan NAPA Tech Wins Nationally Accredited Award

ranco Belk was recently honored with his second Technician of the Year award from The National Insitute for Automotive Service Excellence. Belk graduated from Chugiak High School and served in Vietnam after joining the U.S. Army. In 1984, Belk started Peters Creek Auto Repair, and later opened an Eagle River location which became Eagle River Automotive. Belk has been an Automotive Technician in Alaska for 50 years, and Eagle River Automotive has been BBB accredited since 2006. ASE has been honoring the best of the best in the automotive industry nationwide for over 30 years.

Anchorage Symphony

he Anchorage Symphony Orchestra is pleased to announce it has received funding for its first fully endowed chair through a contribution from Richard and Diane Block. Providing a permanent source of income, the Block donation endows the Assistant Principal Bass chair currently held by Matthew O’Connor.

Mr. Block credits the concept of creating an endowed chair program coming from his observations of university endowments. The ASO received its first gifts to the Endowment in 1997 and established a separate non-profit foundation and Board of Trustees to manage the fund the following year. The Endowment has since grown to over $800,000 with pledged gifts bringing the fund to approximately one million dollars.

Alaska School Nurses Association

isa M. Jackson, RN, BSN, MS, MSN, DNP, FNP, NP-C, NCSN, from the Anchorage School District, as the Alaska School Nurse of the Year for 2012. Dr. Jackson has been a nurse since 1980. She received her Family Nurse Practitioner degree in 2007. Last December, she graduated with a Doctorate of Nursing Practice. She has worked as a school nurse since 2000. She serves as Adjunct Faculty at the University of Alaska in the FNP Graduate Program, Preceptor for FNP students and Clinical Instructor for BSN students, has written various articles, and was selected for the Alaska Leadership Education in Neurodevelopmental and Related Disabilities program, which provides graduate-level interdisciplinary leadership training.

Alaska USA Receives Top Honors

laska USA Federal Credit Union has been recognized as the number one lending institution in 2011 for the U.S.

Pacific Pile & Marine, LP (PPM) is seasoned in projects containing complicated logistics, specialized equipment, environmental constraints and long lead time materials.

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INSIDE ALASKA BUSINESS Small Business Administration’s 504 loan program by Evergreen Business Capital. Alaska USA received awards for Top Community Lender in the state of Alaska and in the Pacific Northwest, and Alaska USA’s commercial loan officer Bob Warthen was recognized as the Top Lending Officer in the Pacific Northwest for loans processed through Evergreen Business Capital. Evergreen Business Capital, one of the Northwest’s leading SBA 504 Loan Program providers, presented the awards. It partners with lenders in Washington, Oregon, Alaska, and northern Idaho to provide loans that allow businesses to purchase commercial real estate and equipment.

Safety Council Recognizes Alaskans

he 2012 Governor’s Safety and Health Conference honored the following businesses and individuals for exemplary workplace safety and health management: The Alaska Avalanche Information Center, The North American Outdoor Institute, Granite Construction Company, Cornerstone General Contractors, CH2M Hill Engineering, and former director of safety and training for Westmark Alaska, “Safety Herb” Everett. The conference, which is sponsored by the Alaska Safety Advisory Council, focuses on emerging safety and health issues, and advanced safety needs that are unique to Alaska. Nominees must show a significant and measurable impact on the community, or must have made documented contributions or enhancements to the field of safety and health.

Compiled by Mari Gallion

Alaska Forum on the Environment

he Alaska Forum on the Environment presented its 2012 Outstanding Achievement Award to researchers who led the Aleutian Pribilof Islands Paralytic Shellfish Poisoning Project. The award was presented to researchers Bruce Wright, senior scientist with the Aleutian Pribilof Islands Association, and to Ray RaLonde, aquaculture specialist with the Alaska Sea Grant Marine Advisory Program at the University of Alaska Fairbanks School of Fisheries and Ocean Sciences during the 14th annual Alaska Forum on the Environment’s annual conference. The researchers conducted the first extensive community-based monitoring for harmful algal blooms and PSP in waters around the Aleutian and Pribilof Islands region in Alaska, and Bering Island in Russia. They developed methods for communities to monitor and track marine toxins in connection with climate change observations, and published their findings in near real time for residents and scientists.

USFWS Recognizes Outstanding Partners

he following businesses were recognized at the U.S. Fish and Wildlife Service Alaska Regional Director’s Awards for their effectiveness in conserving Alaska’s fish, wildlife, and habitats on behalf of all Alaskans: Great Land Trust, The Conservation Fund, Golden Valley Electric Association, Island Trails

Network of Kodiak, Eni Petroleum and the Watershed School of Fairbanks.

Alaska Airlines Launches Contest

laska Airlines Dream Suite Sweepstakes is a chance to win a trip to Disneyland Resort, including roundtrip airfare for up to four people on Alaska Airlines, four nights’ stay in a Disneyland Resort hotel—including a once-in-a-lifetime stay in the Disneyland Dream Suite—and four four-day Disneyland Resort Park Hopper tickets. The sweepstakes began in May and continues through Aug. 7, also includes three monthly vacation prizes awarded in early June, July and August. These monthly prizes include round-trip airfare for four on Alaska Airlines, a three-night stay in one of the Disneyland Resort hotels and four three-day Disneyland Resort Park Hopper tickets. “This is truly a magical opportunity for not just one, but four families to win a trip to Disneyland on Alaska Airlines. And one lucky winner will enjoy the grand prize once-in-a-lifetime stay at the VIP Disneyland Dream Suite,” said Joe Sprague, the airline’s vice president of marketing. To enter, participants must visit www. alaskaair.com/dreamsweeps and register for a chance to win. Entrants are allowed to enter each month throughout the sweepstakes for each of the monthly prizes. Entries that do not win the monthly prizes are counted cumulatively for the grand prize drawing, up to four entries per entrant. Winners of the monthly prizes are removed from the grand prize drawing and subsequent monthly prize drawings. 

• General Contracting • Marine Infrastructure • Design Build

Dutch Harbor - Unalaska, Alaska

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View from the Top

Compiled By Peg Stomierowski

Mr. Whitekeys Boss

r. Whitekeys came to Anchorage in the early 1970s. On his first day in town, he got hired to operate a jackhammer, which he’d never done. On his third day, he saw a newspaper ad for a piano player at Chilkoot Charlie’s. “I figured I could be every bit as good at playing the piano as I was at running a jackhammer,” he recalled, “and I got the job.”

Keys spent the ‘70s playing in Spenard-area bars and creating advertising campaigns for local merchants. His team’s highlight was Chilkoot’s motto, “We cheat the other guy and pass the savings on to you!” In 1980, he was handed the keys to a defunct hamburger restaurant that became Mr. Whitekeys’ Fly By Night Club. The nightspot was all about the entertainment business: “We became the only bar in Alaska that did not hire musicians to sell more alcohol—we sold alcohol to support the musicians,” he said. “When we closed in 2006,” he says, “the entire town believed I’d retired.” But he only wanted to get back into full-time entertaining. “Now, I get to play stupid songs for a few hours and go home when the show is over. I don’t have to degrease the kitchen or clean the bathrooms. The audience can make all the mess they want, and I don’t care!” VIEW FROM THE TOP It’s easy to be on top in Alaska because the bar isn’t all that high—you can be on top in Spenard and only be standing on the second rung of the ladder. I love the entrepreneurial spirit of the Last Frontier. You can succeed without having any kind of training or aptitude in any field. Where else can you buy a box of earring wires, gather a bucket of things that came out of a moose’s behind, and immediately find yourself in the fine jewelry business? BON TON ROULEZ The whole point of my job is to have a good time. I get to laugh my way through my working day. There really isn’t any lofty artistic motivation or complex business plan—I just get to combine the things I enjoy: blues, jazz, rock and roll, photography, a snotty joke and the opportunity to turn rudeness and bad taste into the fun things they used to be. MUSIC FIRST The Fly By Night Club was all about giving entertainment the chance to be center stage. Over the years, we got to hang out with blues pioneers Memphis Slim and Brownie McGhee, Kansas City jazz pianist Jay McShann, Zydeco musicians Queen Ida, Rockin’ Sidney and Cleveland Chenier, plus other giants like Mose Allison, Gatemouth Brown, Ben Sidran, The Red Clay Ramblers and Dr. John. It was like having the entire history of American music pass right through Spenard. PROGRESS ALASKAN STYLE The neighborhood has changed a lot since we opened the club in 1980, and the biggest change is probably that the audience doesn’t throw nearly as many beer bottles at the stage as they used to. © 2012 Chris Arend

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POLITICS & COMEDY The only reason any of us live in Alaska is because we can’t make it anywhere else—and our politicians are no exception. We just give Alaskans what they like most—vicious political satire set to a happy, toetapping beat!  www.akbizmag.com • Alaska Business Monthly • June 2012

Regional Focus

By Tracy Barbour

The Kenai Peninsula Borough Optimism high for region By Tracy Barbour

Scenic view of the Hope Highway along Turnagain Arm at sunrise on the Kenai Peninsula.

he Kenai Peninsula extends geographically from Southcentral Alaska between Cook Inlet and Prince William Sound; the Kenai Peninsula Borough stretches across Cook Inlet to the west from Beluga and Tyonek to Katmai and beyond. With its breathtaking glaciers, expansive parks, mountains, volcanoes and rivers, residents and visitors enjoy some of the best sightseeing, sport fishing and recreational activities in the state, which compliment the region’s abundant natural resources. Although this article details business aspects of the four largest communities—Kenai, Soldotna, Homer and Seward—every community in the region helps make it another one of Alaska’s best places to be.

Mixed Economy

The region has a mixed economy dominated by government, oil and gas, leisure and hospitality, health care, retail, fishing and construction. “We have a very diverse economy that helps us ride out the ups and downs,” Kenai Peninsula Borough Mayor Mike Navarre says. Lately, ■ 14

there have been more ups than downs. The borough is seeing positive trends, such as a strong commercial fishing season last year, a steady flow of visitors, and increasing oil and gas exploration. “We’re seeing a lot more activity with the resurgence of oil and gas exploration in Cook Inlet,” Navarre says. “There’s another rig that’s on its way here. For the first time in a long time, we will have two rigs that will be drilling in Cook Inlet.” There’s a great deal of support service stimulated by oil and gas exploration. The borough is also seeing more seismic work that will hopefully lead to further expansion of exploration and development. Navarre says he feels the borough has the industries in place to support the increased activity in oil and gas exploration, and he welcomes the growth. “We have a mature economy and a stable population base,” he says. “If we have additional oil and gas development, we’ll see an expanding economy and lots of opportunities.” Robert Favretto, president of the Alaska Industry Support Alliance Ke-

nai Chapter, is equally optimistic. The high price of oil, the big push for finding natural gas in Cook Inlet, and other resource development activities are having a significant impact on the region’s labor force, service companies, hotels and food service businesses. “I don’t think I’ve seen a brighter future because of oil, gas and mining,” says Favretto, who has lived in Kenai for 16 years.

Diverse Industries

A diversity of industries helps to enhance the overall health of the region, according to Alaska Department of Labor Economist Alyssa Shanks. She characterizes the economy of the borough as stable, saying, “Things look pretty good when you compare the borough to Alaska and the rest of the nation.” Health care has been leading economic growth on the peninsula for years—a trend that’s happening throughout the state and nation. Kenai is looking to build a surgery center that would compete with Soldotna’s Central Peninsula Hospital. “The older population is a con-

www.akbizmag.com • Alaska Business Monthly • June 2012

tributing factor in the continued growth of health care industry,” Shanks says. The peninsula has also experienced significant growth in education, retail, financial services, government and manufacturing. Seafood manufacturing, in particular, was a place of big growth last year, gaining about 300 jobs in the third quarter, according to Shanks. The commercial real estate market is gaining strength as well. Thanks to the increasing oil exploration activity, the market’s been stronger than it’s been in several years, according to Fred Braun of Freedom Realty. There’s plenty of commercial lease space, but things are getting tighter. “It’s the best thing I’ve seen here in years, and I’ve lived here 47 years,” Braun says. “It’s certainly a very strong outlook for 2012. What we are seeing is a lot of activity for upgrade and remodeling going on for commercial buildings.” In Kenai and Soldotna, it’s becoming a challenge for businesses to find available warehouse and shop space. While there is some professional office space available, many companies prefer to have their offices housed on the same site as their shop and warehouse. “I think we’ll see an increase in new construction for this year and next year,” Braun says. Higher education is another abundant resource in the region. Soldotna’s education infrastructure includes Kenai Peninsula College, another extension of the University of Alaska experiencing explosive growth. Consequently, the campus is building new student housing and a Career and Technical Center. Kenai Peninsula College also has a presence in Homer with Kachemak Bay Campus and in Seward’s Resurrection Bay Extension Site. These KPC locations offer twoyear Associate of Arts and Associate of Applied Science, as well as career and technical education programs. They also award four-year baccalaureate degrees through distance education programs. AVTEC – Alaska’s Institute of Technology is located in Seward.

City of Kenai

The most dominant industries to the city of Kenai are oil and gas, wholesale and retail trade, and construction, according to the Kenai Peninsula Eco

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www.akbizmag.com • Alaska Business Monthly • June 2012

15 ■

Sterling Hwy

Seward Hwy Other Roads KPB Boundary

5 10 Miles

The information depicted hereon is for a graphical representation only of best available sources. We assume no responsibility for any errors on this map

Kenai Peninsula Borough

accommodation and food services, professional services, construction, tourism, trade and transportation, finance/ insurance, government, and natural resources and mining. Soldotna Mayor Peter Micciche describes Soldotna as a pro-business city with a diverse economy. The city’s location is as a major benefit to its economy. Sitting at the intersection of three regional highways—the Sterling Highway, Kenai Spur Highway and Kalifornsky Beach Road—Soldotna is easily accessible in the region and ideally located for businesses, according to Micciche.

“What Soldotna has done extremely well is maintained the small-town flavor of our community while Soldotna Soldotna is the seat of the Kenai Penin- enjoying the benefits and services sula Borough and has about 4,100 resi- of outside larger retailers,” dents. Its economy is supported by retail, restaurant and other sales. In 2009, the sales category accounted for nearly two-thirds of the gross sales for the city, according to city’s 2011 annual report. Another major industry in Soldotna is the fast-growing education, health care and social services sector, which makes up more than 20 percent of the city’s employment. Other strong industries include art, entertainment, recreation, ■ 16

Peter Micciche , Soldotna Mayor

Soldotna is home to a number of large employers, including five of the top 10 borough employers—the KPB School District, Central Peninsula General Hospital, the KPB administration, Frontier Community Services, and Fred Meyers—are important anchors to Soldotna’s economic base. Micciche

says Soldotna strives to maintain a business environment that’s conducive to new investment. The city has a clear set of expectations for businesses, streamlined permitting and a favorable set of business-related ordinances that encourage new development on a competitive cost basis. That approach seems to be working. “What Soldotna has done extremely well is maintained the small-town flavor of our community while enjoying the benefits and services of outside larger retailers,” Micciche says. “Our long-time ‘mom and pops’ have learned to specialize, have adjusted and are flourishing while the city has welcomed retailers that are not typically head-to-head competition with existing businesses. The mix has been remarkably successful.” Recently, Soldotna announced the Storefront Improvement Program designed to rejuvenate the city’s commercial core by stimulating additional private investment in its local businesses through a series of grants to enhance traffic, property values and the overall appearance of the community by focusing on businesses located on the Kenai Spur and Sterling highways. Soldotna has also engaged in several other creative projects to support businesses, including the “Get into Your Neighbors Business” media campaign

www.akbizmag.com • Alaska Business Monthly • June 2012

Map courtesy of the Kenai Peninsula Borough

nomic Development District’s “2010 Kenai Peninsula Borough Comprehensive Economic Development Strategy,” a report produced in 2010 over the span of a year. The trade, transportation, and utilities industry employs the greatest number of Kenai residents, followed by natural resources and mining, educational and health services, local government, and leisure and hospitality. The most common professions for Kenai’s 6,600 or so residents are retail salespeople, teachers and instructors, “roustabouts” for oil and gas, and cashiers. In addition the oil and gas industry, the City of Kenai and nearby Nikiski’s most dominant industry, Kenai is experiencing steady retail growth. Over the past several years, the city has seen the construction of a new Aspen Hotel and Home Depot store. In 2010, a new 210,000-square-foot Wal-Mart opened on the Kenai Spur Highway, bringing hundreds of permanent jobs. According to KPEDD, Kenai has many other economic development opportunities on the horizon, which involve leveraging the expected increase in tourism, oil and gas exploration, natural resource development and the creation of industrial parks. One such project is construction of the ENSTAR Natural Gas Co. natural gas storage facility. The City of Kenai’s infrastructure includes a municipal airport serving the entire region. There’s also a Kenai Health Center with diagnostic imaging and lab services. The facility is a partnership between Central Peninsula Hospital, the Alaska Division of Public Health, the city of Kenai and the Kenai Peninsula Borough. In addition, Kenai is home to the Wildwood Correctional Center, which houses about 360 prisoners.

encouraging people to shop locally. Investing in such initiatives is vital to the sustainability of Soldotna, Micciche says. “We are able to keep property taxes amongst the lowest in the state due to the benefits of supporting the businesses that support Soldotna. They help pay the lion’s share of the cost of quality services, provide employment and define our community as one with well-rounded retail, service and entertainment choices.” Soldotna offers a variety of amenities to serve its residents and visitors. The city has a well-developed road system that connects it to Anchorage and other parts of the Kenai Peninsula, and an airport with a 5,000-foot paved runway. This year, Soldotna will be continuing extensive projects to improve and pave its roadways. Central Peninsula Hospital represents a critical piece of Soldotna’s infrastructure. The 50-bed, full-service hospital has more than 70 physicians and medical staff that offer a broad range of specialties to the area. The hospital recently completed a $50 million, 85,000-square-foot expansion and renovation project. A cancer treatment center is being built near the hospital. Micciche says Soldotna is constantly looking to improve its infrastructure. Over the last decade, the city has invested approximately $20 million in parks, water and sewer improvements, airport improvements, street paving, river habitat protection and elevated walkways along the river, including wheel chair access.

Homer

Homer’s diversified economy is dominated by retail and service businesses. Tourism, commercial fishing and timber are also important economic drivers. The trade, transportation and utilities industry employs more Homer residents than any other sector, according to KPEDD. Other major industries for the city include local government, construction, leisure and hospitality, and educational and health services. Homer’s largest employer is the Kenai Peninsula Borough School District—more residents are employed as teachers and instructors than any other profession. Many Homer residents also work at South Peninsula Hospital, South Peninsula Behavioral Health Services, Safeway and the City of Homer.

Homer has five lines of business that account for at least 10 percent of the city’s annual gross sales. The largest of these lines is sales, which contributes one-third of the city’s annual gross sales, or $118 million. Over the past decade, Homer has seen steady growth in this area. At the same time, utilities increased more than 11 percent in 2009 compared to 2008, and services has grown by nearly 60 percent since 2004. Homer has a variety of capital improvement and economic development projects in the works, ranging among roads and trails to buildings, fire fighting equipment, and port and harbor improvements. To enhance its overall economic health, the city plans to increase the contribution of construction and manufacturing, retail and services sectors; support the growth of the high-tech sector, including Internet-based businesses; increase the role of transportation and warehousing; and support agricultural expansion. In Homer, a harbor and docking facilities provide moorage for U.S. Coast Guard, Alaska Marine Highway and U.S. Fish and Wildlife vessels. The harbor and port system also serve recreational and commercial fishing boats from around the state. Sport fishing for halibut and salmon are significant contributors to Homer’s economy. According to KPEDD, Homer port operates 700 commercial and charter boats year-round, growing to 1,500 boats in the summer months. It is home to Alaska’s largest fleet of halibut sport fishing boats, and has the largest small boat harbor in the state. Homer is also where visitors will find the Islands and Ocean Visitors Center, the Center for Alaskan Coastal Studies, the Pratt Museum, the annual Kachemak Bay Shorebird Festival, Land’s End Resort, numerous galleries and a multitude of artists. Like much of the Kenai, it is an international destination.

Seward

Seward’s economy is driven mainly by waterfront enterprises, and includes sales, construction, tourism, wholesale trade and manufacturing, and commercial fishing. Each of these business lines contributed more than $14 million to the city’s annual gross sales in 2009, according to KPEDD. In 2009, the wholesale trade and tourism sectors experienced significant decreases.

www.akbizmag.com • Alaska Business Monthly • June 2012

17 ■

Kenai Peninsula Borough Demographics People QuickFacts Population, 2011 estimate Population, 2010 Population, percent change, 2000 to 2010 Population, 2000 Persons under 5 years, percent, 2010 Persons under 18 years, percent, 2010 Persons 65 years and over, percent, 2010 Female persons, percent, 2010 White persons, percent, 2010 (a) Black persons, percent, 2010 (a) American Indian and Alaska Native persons, percent, 2010 (a) Asian persons, percent, 2010 (a) Native Hawaiian and Other Pacific Islander, percent, 2010 (a) Persons reporting two or more races, percent, 2010 Persons of Hispanic or Latino origin, percent, 2010 (b) White persons not Hispanic, percent, 2010 Living in same house 1 year & over, 2006-2010 Foreign born persons, percent, 2006-2010 Language other than English spoken at home, pct age 5+, 2006-2010 High school graduates, percent of persons age 25+, 2006-2010 Bachelor’s degree or higher, pct of persons age 25+, 2006-2010 Veterans, 2006-2010 Mean travel time to work (minutes), workers age 16+, 2006-2010 Housing units, 2010 Homeownership rate, 2006-2010 Housing units in multi-unit structures, percent, 2006-2010 Median value of owner-occupied housing units, 2006-2010 Households, 2006-2010 Persons per household, 2006-2010 Per capita money income in past 12 months (2010 dollars) 2006-2010 Median household income 2006-2010 Persons below poverty level, percent, 2006-2010 Business QuickFacts Private nonfarm establishments, 2009 Private nonfarm employment, 2009 Private nonfarm employment, percent change 2000-2009 Nonemployer establishments, 2009 Total number of firms, 2007 Black-owned firms, percent, 2007 American Indian- and Alaska Native-owned firms, percent, 2007 Asian-owned firms, percent, 2007 Native Hawaiian and Other Pacific Islander-owned firms, percent, 2007 Hispanic-owned firms, percent, 2007 Women-owned firms, percent, 2007 Manufacturers shipments, 2007 ($1000) Merchant wholesaler sales, 2007 ($1000) Retail sales, 2007 ($1000) Retail sales per capita, 2007 Accommodation and food services sales, 2007 ($1000) Building permits, 2010 Federal spending, 2009 Geography QuickFacts Land area in square miles, 2010 Persons per square mile, 2010 FIPS Code Metropolitan or Micropolitan Statistical Area

Kenai Borough

Alaska

NA 55,400 11.5% 49,691 6.3% 23.7% 11.3% 47.6% 84.6% 0.5% 7.4% 1.1% 0.2% 5.6% 3.0% 82.8% 81.9% 3.3% 10.0% 92.1% 22.4% 5,622 18.4 30,578 72.7% 12.0% $193,000 22,303 2.35 $29,127 $57,454 9.5%

722,718 710,231 13.3% 626,932 7.6% 26.4% 7.7% 48.0% 66.7% 3.3% 14.8% 5.4% 1.0% 7.3% 5.5% 64.1% 78.6% 7.2% 16.5% 90.7% 27.0% 71,798 18.1 306,967 64.7% 24.6% $229,100 248,248 2.68 $30,726 $66,521 9.5%

Kenai Borough

Alaska

1,944 13,155 16.0% 6,009 8,698 F S 0.9% F S S D 193,745 666,923 $12,527 131,217 89 360,397

19,901 252,882 23.4% 51,137 68,728 1.5% 10.0% 3.1% 0.3% S 25.9% 8,204,030 4,563,605 9,303,387 $13,635 1,851,293 904 11,922,341

Kenai Borough

Alaska

16,075.33 3.4 122 None

570,640.95 1.2 2

(a) Includes persons reporting only one race. (b) Hispanics may be of any race, so also are included in applicable race categories. FN: Footnote on this item for this area in place of data NA: Not available D: Suppressed to avoid disclosure of confidential information X: Not applicable S: Suppressed; does not meet publication standards Z: Value greater than zero but less than half unit of measure shown F: Fewer than 100 firms Source: US Census Bureau State & County QuickFacts ■ 18

Wholesale trade dipped in annual gross sales by nearly $12 million, or nearly 40 percent. Tourism generated slightly more than $26 million—a 40 percent decrease in 2009—and contributed 14 percent to Seward’s annual gross sales, but has increased with the overall economy in years since. Another staple of Seward is the Spring Creek Correctional Center, a maximum-security facility for men, which employs a staff of 200 people and is located at Seward. Seward, with its deep, ice-free harbor, is an important transportation center for Alaska, where in 2010, more than 1 million metric tons of coal from the Usibelli Coal Mine arrived in Seward via the Alaska Railroad and were exported on ships bound for Asia and South America; it was a recordbreaking year. There is also a large commercial fishing fleet operating out of Seward, as well as a robust charter fishing and sightseeing fleet. A major new development is the Sikuliaq, a marine research vessel currently under construction at Wisconsin-based Marinette Marine Corp. The Sikuliaq will be a 261-foot research ship capable of transporting scientists to the icy waters of Alaska and the polar regions. When complete, it will be one of the most advanced university research vessels in the world and will be able to break ice up to 2.5 feet thick. The Sikuliaq will be home ported in Seward at the University of Alaska Fairbanks Seward Marine Center. The vessel will be ready for science operations and in Seward in 2014 and will impact the entire region. Seward is also home to the Alaska SeaLife Center, a one-of-a-kind facility providing public education, animal rehabilitation, conservation, marine research and enriching entertainment. The $56 million, 115,000-square-foot facility opened in 1998 and operates with about 100 full-time paid employees and the contributions of thousands of hours by scores of volunteers. In 2010, the center was host to 138,559 visitors and gave 2,055 behind the scenes tours—it may be the most important and popular facility in Alaska. The SeaLife Center was championed by the late Ted Stevens and the late Wally Hickel.  Writer Tracy Barbour owns a marketing company in Tennessee.

www.akbizmag.com • Alaska Business Monthly • June 2012

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B E N E F I T S

TOURISM

Alaska Marine Highway System

The Alaska Marine Highway System’s M/V Columbia moored at Berth 3 in Ketchikan.

Critical transportation link also serves visitors By Nicole A. Bonham Colby

or Alaskans who live in the rural outposts that dot the state’s coastline, the Alaska Marine Highway System remains a critical link to services and onward transportation. When tourist season arrives, the ferries also provide an unequaled draw for those independent travelers who wish to see the “inside” Alaska, but perhaps not from a large cruise ship deck. The challenge to satisfy both audiences falls to ferry system managers and planners, who strive each year to serve up an array of schedule options, full-featured vessels, and special rates and ridership campaigns. With the AMHS set to celebrate its 50th anniversary next year, ferry managers have rolled out a series of new customer-friendly services and upgrades, ranging from a real-time location-tracking website to a new point-of-sale system aboard its vessels. In turn, ferry planners also continue to manage the challenges of an aging fleet and simultaneously seek to minimize the system’s wide loss margin, as costs far outpace system revenue.

System Summary

For the uninitiated, the ferry system last year served 31 Alaska ports, pro■ 20

viding year-round service through the Southeast and Southwest regions of the state, as well as to Prince Rupert, British Columbia, and Bellingham, Wash., according to the system’s 2011 “Annual Traffic Volume Report.” From an operating standpoint, the system itself is split into two geographic components: Southeast, with seven vessels providing service from Bellingham to Yakutat; and Southwest, with four vessels serving passengers from Cordova to Dutch Harbor. Aside from its primary passenger service, the ferries serve as a critical freight link to residents and commercial operators across the state. In addition to mail and some household goods, container vans aboard the ferries carry freight both directions—perishable items like meat and dairy products from Washington state and elsewhere in the Lower 48 go north, while fresh Alaska seafood heads south. At its highest level, the Alaska Marine Highway System is designed to provide basic transportation to Alaska communities—and thereby to serve peripheral needs such as economic development, health care access and so-

cial services, according to the state. For some small communities, particularly those without scheduled commercial air service, the regular ferry becomes the focal point of community activity. That role was recently highlighted in a separate report analyzing system-wide status and viability, the “Alaska Marine Highway System Analysis,” released in fall 2011 by the Alaska University Transportation Center at the University of Alaska Fairbanks’ Institute of Northern Engineering. “The cost of living in rural communities served by AMHS is significantly reduced because of the relatively inexpensive cost of transporting goods on the AMHS and the opportunity for rural residents to travel to regional hubs for goods and services,” according to analysts. “The AMHS also provides infrastructure necessary for many businesses, contributing to local economic development.”

Traffic Patterns

One of the ongoing challenges to system planners is the differing sets of ferry service users. While the system is designed to serve the needs of Alas-

www.akbizmag.com • Alaska Business Monthly • June 2012

Image courtesy of Alaska DOT&PF, AMHS

The ferry system has debuted a new online tool to help folks check on ferry status: location of all ferries, arrivals and departure times. Click on a ferry to pull up its current status, then click on “More about this Vessel” for details about the vessel.

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kans—particularly those communities where the ferry link provides the When you donate to Children’s Miracle critical access to services—the summer Network Hospitals you help kids at influx of visitors aboard Alaska ferries The Children’s Hospital at Providence also serve an important revenue source. get the care they need. “We clearly recognize there are two dialaska.providence.org verse audiences and they have different objectives,” says Capt. Michael Neussl, deputy commissioner for Marine Operations for the Alaska Department of Transportation and Public Facilities.Anchorage Lo- Bus Monthly.indd 1 cals require convenient, efficient access back and forth between regional communities and commerce hubs. Tourists have more flexible schedules and want to stop in each community, he says. Planners deal with the challenge through creative scheduling—in essence, offering different schedules between summer and winter to compliment the respective season’s core traffic demographic. In winter, operations are minimized to half fleet due to reduced demand and to accommodate required maintenance. “The (vessels) that are running are optimized to serve local residents—back and forth,” Neussl says. During summer, it’s “all-ships, all-the-time to meet the demand and provide flexibility in the variety of routes for tourists.” The tourism component is a significant revenue source for the system—an important planning factor given that the ferry is a money-losing prospect for the state. With an approximate operating budget of $160 million, and revenue from all sources of $50 million, accord

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www.akbizmag.com • Alaska Business Monthly • June 2012

4/27/12 6:54 AM

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Services & Schedule

Three innovations greet ferry travelers in 2012 and the near future. First, new point-of-sale (cash management) systems are already installed on half the fleet, with the rest pending completion. Touch-screen technology replaces the old-fashioned paper method of charging credit cards for onboard purchases. The upgrade is more efficient and improves cardholder security, Neussl says. Second, a new reservation system is out for proposal currently. Neussl says he would like to see an online system similar to that of the airlines, where travelers can purchase their tickets online at their convenience and print the ticket for easy check-in. In remote communities without a staffed ferry office or with limited business hours, he would like to see a ticket kiosk. He points to Gustavus, where the purser is inundated with purchase requests in ■ 22

ing to Neussl, the ferry runs with a large infusion from the state. While managers may never close the gap to provide a self-supporting ferry system, they can make improvements in efficiency and management of traffic. In 1981, 281,632 passengers rode the ferries in Southeast, and 55,779 in Southwest, for 337,411 total ridership that year, according to the annual traffic report. A full 30 years later, the figures are not as different as one might expect. In 2011, 253,554 passengers rode Southeast ferries, and 81,224 in Southwest, totaling 334,778. The comparison shows a slight overall drop in ridership, a reduction in Southeast ridership, and corresponding jump in passengers aboard ferries in the Southwest region. Across those 30 years, Southeast ridership jumped as high as 372,680 in 1992; and 233,667 in 2005, according to the state report. Southwest ridership peaked with the 2011 figures, showing steady increases in recent years. In contrast to the reasonable static total ridership by passengers, vehicle traffic onboard Alaska ferries has jumped from 80,699 vehicles transported in 1981 to 114,100 30 years later. “I attribute that to the fact that people like to travel with their vehicles,” says Neussl. “Given the distances … they like to take their vehicle with them. It gives them a lot more freedom on the other end.”

The Alaska Marine Highway System’s M/V Malaspina is shown in dry dock in Ketchikan.

the short reservation window available. Finally, the ferry system rolled out an online location-tracking system, where travelers or friends and family may obtain real-time arrival and departure status information at: ferryalaska.com | Plan a Trip | System Map. Website visitors see the location of ferry vessels on a state map, and may click on the vessel name to obtain up-to-the-minute schedule details. Several new schedule changes also rolled out this year. Last year, the Malaspina was based in Skagway and returned from its Juneau run to “overnight” in Skagway. This year, the schedule is flipped to allow northbound travelers the opportunity to disembark in time to reach the Canadian border before it closes for the evening. Due to the dock space issues, the Le Conte will spend Sunday nights in Hoonah. The AMHS resumed direct Angoon to Sitka service with the fast-ferry Fairweather twice weekly. Two new ports are on the ferry schedule this year: Ouzinkie on Spruce Island, where a rebuilt dock now allows the ferry to stop on its normal route, which traveled by the community. Also, Old Harbor on Kodiak Island has two round-trip slots in Juneau and August.

Market Savvy

Within the state, ferry system marketers primarily target Alaskans who live in or near port communities, as well as residents of Anchorage and Fairbanks, according to the system’s 2012 “Marketing & Action Plan.” A strong secondary instate market is that of military personnel

who are moving to and from the state and its numerous military facilities. “In targeting locals we try to stay in the forefront with specials (and) promotions and reasons that residents should ride the ferry, such as visiting friends and family, day trips to communities for events and activities, wildlife viewing, recreational opportunities in areas not accessible by air,” says Danielle Adkins, marketing manager for the Alaska Marine Highway System. “We sell the ferry as not just transportation, but also as an opportunity to enjoy and sightsee along the route, which is also a National Scenic Byway.” The primary source of the system’s visitor market is affluent, independenttraveling couples age 45 to 65, and people who have queried the ferry system previously. The secondary market is the outdoor enthusiast, including younger adventure travelers who often travel sans vehicle and do not typically rent a cabin, as well as sportsmen, motorcyclists and birders. As part of its multimedia campaign, ferry system marketers include among its platforms the concept of digital marketing. “Sea News,” a monthly electronic newsletter distributed to 110,000 people in the ferry system’s database, is among the state’s digital marketing initiatives. Last year, more than 1.1 million copies were distributed via email.  Nicole A. Bonham Colby writes from Ketchikan.

www.akbizmag.com • Alaska Business Monthly • June 2012

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Finance, Insurance & Real Estate

Wealth Management for Alaskans W

By Joette Storm

ealth Management is Big Business in Alaska. Local investment and banking firms say their business has increased during the last few years as the population ages. Census figures indicate the number of Alaskans 65 and over increased 54 percent since 2000. With volatility in the stock market and the possibility of changes in tax policy, younger Alaskans realize they need guidance preparing for retirement and protecting their hard earned assets. More than 1,700 investment representatives are registered with the State, says Kevin Anselm, enforcement and securities chief for the Alaska Division of Banking and Securities. Roughly 78,000 stock brokers are registered to trade securities. Trust services in Alaska are available through regulated financial institutions, and include Alaska Trust Co. and Alaska USA Trust Co. which are chartered under Alaska law, says Anselm’s colleague, Katrina Mitchell, chief bank examiner for Alaska. Of the six banks headquartered here, Northrim and First National Bank Alaska have trust departments. “Trust business is super specialized and super regulated. It is best to seek a referral from your attorney or financial institution,” Mitchell says. There are so many choices in financial advisers, brokers and trust companies the average Alaskan may feel it is as challenging as scaling Mount McKinley. Maybe that is why a number of firms display scenes of mountains in their marketing material. Numerous firms market themselves specifically as “wealth managers.” However, “wealth management” is more a term of art than a legal category, Anselm says. An advisory firm may or may not be regulated, depending upon the services

■ 24

offered. Investment advisers, for example, are regulated under state and federal laws, depending upon the amount of money in question. But there is no specific regulation of wealth management, which covers a wide range of services. Anselm recommends doing business with someone you know and trust, who has a track record and is certified or licensed. “Don’t give money to someone you recently met at church or the PTA,” she advises. “Look on the state’s website for actions against brokers and advisers. The Financial Industry Regulatory Authority is another database for checking credentials and compliance.” Certifications and licenses are one measure of an advisor. There are Chartered Financial Consultants, Certified Financial Planners and Certified Financial Analysts who have studied with professional associations and passed examinations judging each individual’s knowledge of finance and regulations. Stock brokers must be registered with FINRA and licensed to sell stocks and bonds. Such certifications do not mean the person has earned a degree in finance or economics. Choices range from national firms like Wells Fargo Private Bank to homegrown businesses such as Alaska Permanent Capital Management. There are specialty firms such as Alaska Trust Co. and then there are others calling themselves generalists. Each type of business offers a style that differs with services, licenses and fees. Some operate on a percentage basis fee; others charge commission for each separate service or transaction. Alaska Permanent Capital Management was founded by Dave Rose, the first director of the Alaska Permanent Fund, and is now led by his son, Evan. The company manages and advises on $3 billion in assets for government

agencies, including the Permanent Fund, nonprofit organizations, foundations, utilities and corporations as well as individuals. APCU charges a fee based upon a percentage of assets managed. They do not sell insurance or other products, but do make referrals to other companies for those products. Laura Gerber Bruce, CFP, ChFC, vice president of client relations, differentiates the firm’s style as “high level strategizing to minimize taxes and maximize investment.” “We like to say it only matters what you keep. Management is not just about growing one’s wealth, it is protecting it as well, “ Gerber Bruce says. Because the term wealth management can be so intimidating to people, she prides herself on demystifying the process for her clients. APCM’s corporate standard is that every person who talks with clients is a CFA, CFP or has a minimum of 20 years of experience in investing. Most, like Gerber Bruce, who previously had a career in banking, may have degrees in finance.

Protect and Preserve

Protecting and preserving assets is a common thread among wealth managers. Doug Blattmachr, president and part owner of Alaska Trust Co., specializes in establishing trusts for clients who wish to protect assets and assure how their wealth is transferred. One of several Alaskans who worked to pass the Alaska Trust Act of 1997, Blattmachr is steeped in the intricacies of trust law. He began as a bank teller and has worked in every phase of the trust industry. Alaska Trust Co. does provide planning, but does not sell products on a commission basis. ATC’s fee is a percentage of assets managed. Other ser-

www.akbizmag.com • Alaska Business Monthly • June 2012

vices recommended, such as insurance or long term care, would have to be purchased from other companies and attorneys, for which the firm makes referrals. For example, an attorney would draw up the trust document and Alaska Trust Company would serve as the trustee. In implementing a client’s fi nancial plan, Blattmachr uses the Unified Management Account method, which frequently rebalances investments using mutual funds, stocks, or any other securities. “We seek advice from the best investment minds available and mix those styles,” Blattmachr says. His staff does the actual purchase based upon the analysis of the many managers consulted. They may override any adviser customizing investments to reflect the trust grantor’s values and preferences.

Full Package

In contrast, 160-year-old Wells Fargo Private Bank offers the full package of services and products from within its many divisions. TerriLee Bartlett, wealth adviser in the Wealth, Brokerage and Retirement Division, says services include business services, lending and investing, trust establishment and overall financial planning. Wells Fargo offers some proprietary products and may charge commissions. The company offers a team approach that will include professionals like JoEllen Weatherholt, CFP, a senior investment strategist, who came to Wells Fargo with the National Bank of Alaska merger, where she worked in lending and investing; and Jim Plymire, a trust and fiduciary specialist with a Certified Trust and Financial Advisor designation. Their skills and experience might take a client from initial investing at mid life to oversight of the individual’s care in a nursing home or other special needs care. “Our clients are individuals and businesses, rather than government or institutions, and typically in the $5 million bracket,” Weatherholt says. On the other end of the spectrum is independent adviser, Jim Thiele, who changed careers 30 years ago when he went from being a scientist to following his passion for investing. He trained to be a CFP at the College for Financial Planning and the Institute

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Crowdfunding Fraud: Federal JOBS Act preempts state review

hat’s in a name? When it comes to legislation, names may not tell the whole story. The Jumpstart Our Business Startups (JOBS) Act, is billed as a jobs creation law based upon “crowdfunding.” That’s the Internet-based method of raising capital for new start-up businesses. But the law’s title obscures an unintended consequence of the jumpstart legislation.

bombarded with all manner of offerings and sales pitches. Congress has just released every huckster, scam artist and small business owner and salesman onto the Internet,” he added

Pending Investor Crisis

tage, says Kevin Anselm, Enforcement and Securities Chief for the Alaska Division of Banking and Securities. “We view this as a pending crisis for investors,” Anselm says.

Vet, Vet, Vet and Vet Again

Buried in the law is a provision preempting states from reviewing crowdfunding offerings before they are sold to investors, North American Securities Administrators Association (NASAA) president, Jack E Herstein says. This leaves little scrutiny of the offerings until after any fraudulent sale. “The JOBS bill President Obama signed recently is based on faulty premises and will seriously hurt all investors by either eliminating or reducing transparency and investor protections. It will make securities law enforcement much more difficult,” said Herstein, who is also an assistant director of the Nebraska Department of Banking & Finance, Bureau of Securities. “Investors need to prepare themselves to be

State securities regulators have been the first line of defense for an investor considering giving money to a broker or investment adviser. Extensive employment, disciplinary and registration information about a stockbroker or investment adviser is available through most state securities regulators. One could ask for records and any complaints about a stockbroker from the Central Registration Depository (CRD). This computerized database contains licensing and registration information on more than 650,000 stockbrokers. In 2004, the Bush administration preempted numerous state consumer financial protection laws to promote what they termed, “financial innovation.” That resulted in many of the ill-considered practices in mortgage lending that led to the mortgage debacle,” according to NASAA. By removing state screening functions in the Jumpstart Startups act, Congress puts consumers at another disadvan-

When considering a prospect made over the Internet, an investor should search the names of all persons and companies connected to the investment being offered. The Internet offers anonymity, and scam artists take advantage of this. Do a search for the name of the person offering the investment and the companies involved in the investment. If there are few results, or their name doesn’t appear anywhere outside of the one investment program they’re offering, that’s a red flag that they may be using multiple aliases, or hiding behind a fake identity. The Alaska Division of Banking and Securities advises Alaskans to check out any firm or broker offering to invest their money on the state database: http:// commerce.alaska.gov/bsc/home.htm In addition to state databases there are a number of sources for checking credentials and complaints: www.nasaa.org/3736/savingsandinvesting/ www.advisorinfo.sec.gov

of Certified Financial Planners. He is affiliated with Financial Network Investment Corp., through which he is a registered representative and an advisory associate. FNIC is his support group for researching stocks and trends, Thiele says.“Most of my clients are friends,” he says, who characterizes his approach as not so much about managing material possessions. “I try to look at the broader definition of wealth—the client’s aspirations and dreams in the context of financial realities. Some of my clients live off the grid in what might be called the Alaska lifestyle.” Thiele personally selects the products or stocks he recommends to his clients, and either takes commissions or charges fees based upon client preference. All the firms emphasize personal attention to each client’s circumstances, assets and values. Each has its own

method of discussing options with clients to determine what advice to give. Gerber Bruce says her process begins with assessing the current tax situation, health, health care needs, insurance and obligations, as well as tolerance for risk, so that any investment choices are more about the client’s best interests rather than the suitability of a stock. Blattmachr doesn’t like standardized questionnaires. He prefers to have a conversation with his clients to draw out their wishes and individual needs for the future. With the resources of a diversified, coast-to-coat financial services company, Bartlett employs sophisticated tools to assess client needs and desires before making any recommendations. One example is the tactile approach to helping clients articulate their tolerance for risk, their short and long-term goals and circumstances. Clients select statements about giving to charity, support-

ing parents and children, or pursuing a dream from a deck of “discovery cards” used to rank their desires and priorities. “When couples do this independently, it highlights areas of agreement or differences and focuses the discussion on those aspects,” Bartlett says. “Everyone who wants to retire eventually and be able to care for themselves and their family needs wealth management,” Gerber Bruce says. Colleagues and competitors in the game all agree. Choosing the right adviser depends upon the size of one’s pocketbook, one’s dreams for the future, and how comfortable the individual is with the reputation of the firm, their fee structure and the expertise of the adviser. 

Not Such a Good Law

■ 26

Joette Storm is a writer living in Anchorage.

www.akbizmag.com • Alaska Business Monthly • June 2012

special section

Finance, Insurance & Real Estate

Workplace Banking is a Triple Win Helping employees, employers and financial institutions

By Belinda L Sunderland

nfortunately, employee benefits have become a victim of challenging economic times. Despite this, employers still strive to maintain morale and provide opportunities for their employees. Workplace banking programs can provide an excellent employee benefit at no additional cost to an employer. Some businesses have responded to the economic climate in recent years by cutting costs in areas that reduce workforce satisfaction, which, in turn, can hamper productivity. In spite of the economic environment, employee morale is still important to maintain. Employee benefits are one of the keys to drive a positive workforce to success, even in the face of the rising costs of living and potential industry downsizing. Maintaining positive employee perspective on benefits and related issues remains paramount, especially as companies increasingly compete for quality workers. These very same companies strive to make themselves even more attractive places to work by thinking outside of the box when it comes to benefits. For labor leaders, employer and industry groups, and wage earners alike, the subtle shift from monetary benefits to “soft” benefits has made the difference between being able to open the doors every day or closing up shop for good. Workplace banking is on the increase for a very good reason—it benefits employers and employees alike. Provided by many banks, onsite banking brings financial services directly into workplaces, serving employees right where they work. These programs typically offer savings and checking accounts, lending services, financial education and other value-added services and activities. They are flexible and scalable, capable of serving companies with only a handful of employees up to thousands in the workforce. ■ 28

Aleutian Example

The Port of Dutch Harbor is the largest commercial fishing port in the United States, landing 515.2 million pounds of fish and shellfish in 2010, according to the National Oceanic and Atmospheric Administration. The population of this small island can seasonally increase by as much as 6,000 people with the influx of transient workers. Once the major fishing seasons begin and the seasonal employees have reported to work, the plants run 24/7, with shifts scheduled 12-hour intervals, but more than likely are 14 to 18 hour days, for months at a time. The local KeyBank branch schedules onsite staff visits through the plants’ respective human resource departments and sets up in their galleys, break rooms and common areas. As the employees catch their meal breaks or a few minutes to grab a cup of coffee, the bank staff is available for customer service questions, opening accounts and providing information about its financial services.

How it Works

One such typical visit may have two branch employees visiting Westward Seafoods, one of the largest commercial seafood processors in the city, and set up in their galley during the lunch break and dinner break. This usually will catch the most traffic of day and night shifters. Bank employees take along brochures, applications, a small printer/scanner, and a wealth of knowledge about available fi nancial services. They typically will open about 25 to 50 accounts while there, answer customer service questions, and re-connect with returning customers. The smile, the handshake and the friendly voice all play a big part in making an impression on the shift workers. Employees unable to get away

to talk to bank employees while onsite will make the trip into town to the branch. For the first month of a typical fishing season, branch employees will visit each processor an average of twice a week

Employer Benefits

On the employer side of the equation, workplace banking programs increase employee direct deposit payroll participation. This electronic alternative to a paper paycheck reduces the ongoing payroll costs for employers. The American Payroll Association has reported the cost to issue a paper payroll check can be as much as $18 per check. Workplace banking programs are an attractive way to enhance a company’s image as an employer. They deliver value to employees in the form of increased convenience, helping to position employers as providing easy access to valuable financial services. Moreover, these programs operate at no cost to employers, creating a win-win-win situation—for the employee, employer and a win for the financial institution. While the benefits of workplace banking programs to employees vary among banks, they usually involve premiums and discounts, as well as enrollment incentives and/or premiums to employees for opening new accounts or participating in other activities, and are often competitive and aggressively promoted. They also typically offer no-fee or low-fee financial services, discounts on loans or closing costs, and fi nancial education services and individual counseling, including free one-on-one fi nancial checkups, on-site seminars and online financial education. These fi nancial education programs typically include information on protection from identity theft and other forms of fraud, financial and retirement planning, how to obtain

www.akbizmag.com • Alaska Business Monthly • June 2012

credit and maintain a good credit rating, and home ownership.

Additional Benefits

In the current recovery cycle, many consumers are seeking to simplify their finances, to get back to basics, increase savings and mend damaged credit. Financial education can be invaluable in facilitating this. Employers are recognizing that financially astute and knowledgeable employees are more comfortable and secure. This security breeds enhanced productivity and satisfaction in the workplace. Beyond these conventional financial services, some workplace banking programs offer fairly advanced and innovative services, such as providing the opportunity for employees to enroll in Health Savings Accounts, a health-care savings option that is rapidly growing in popularity. Used in conjunction with high-deductible health plans (HDHP), HSAs allow individuals to save pretax money for health-care costs in dedicated accounts that they own. Unlike some healthcare savings programs, employees can both roll over their HSAs to future years and move them to new employment situations. Some workplace banking services include an entry point for other financial services that help companies compete, including online business banking, payroll services and employee benefit plans such as a 401(k). By offering all these features and services in convenient on-the-job locations, workplace banking programs provide perks that cost employers nothing but are appreciated by employees. By providing this service, KeyBank epitomizes the small-town bank feel of maintaining a close relationship with their customers and a valuable partnership with the companies who welcome them into their work environment.  Author Belinda L. Sunderland is an Assistant Vice President and Branch Manager at Unalaska KeyCenter.

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special section

Finance, Insurance & Real Estate

Long Term Care Insurance Does it ensure long term care? By Mari Gallion

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lthough it is rarely appropriate to generalize, most will agree: Nobody wants to think about the day that they will no longer be able to care for themselves, their spouse, or other loved ones. But due to our aging population and limited local resources and care options, it is time for us all— elders and children alike—to come up with a viable plan for ourselves and loved ones. According U.S. Department of Health and Human Services secretary Kathleen Sibelius, the world’s population is “aging at an unprecedented rate. Within the next five years, the number of people (older than) 65 will outnumber children (younger than) the age of 5 for the first time in human history.” According to the U.S. Census Bureau, the life expectancy of an American resident has risen from 62.5 years to 78.2 years in the last five decades. As stated in a 2011 report by the Alaska Commission on Aging, the number of Alaskans over the age of 65 totaled 54,938 people, and is growing at a rate of 49.6 percent, more than four times the national average—this also makes seniors the fastest growing age sector in our state. Does Alaska have the resources to address the needs of our growing senior population? The outlook is grim: The state has a total of 662 beds in certified Medicare and Medicaid skilled nursing facilities, and if a person whose insurance covers skilled nursing finds themselves in need of care, there is no guarantee that the insurance company and the incapacitated individual will agree on whether skilled nursing is warranted in their situation. In the event that one’s insurance policy does indeed identify what they consider to be a “qualifying incident,” such as a medical

incident requiring three or more days in the hospital, the infirm individual may be put on a waiting list until a bed becomes available. Enter the option of assisted living: According to Jane Urbanovsky, certification and licensing chief of health care services at the Alaska Department of Health and Social Services, Alaska has a total of 600 assisted living facilities, with a total bed count of 3,523 (not all of which are designated for the elderly), 400 of which are located in Anchorage, Alaska’s most populated city—however, assisted living facilities vary widely in the services they provide. Based on staffing and nursing regulations, some assist with feeding, and some do not; some are authorized to administer medications, and some are not. And at a cost of $5,000 to $7,500 a month average (which does not include the cost of medical care), an immediate need for assisted living can flatten one’s life savings in no time. And what about in-home care? Is that any more affordable? At an average cost of $25 per hour, 40 hours of in-home care a week will run about $1,000 a week, $4,333 per month—and that’s just if a person can schedule their needs between 9 a.m. and 5 p.m. Twentyfour hour care will cost approximately $128,000 a year, and again, that doesn’t cover medications. So how can an aging Alaskan financially anticipate and address their future eldercare needs without losing their entire life savings? It seems there are two main options: The “everything” option, and the “nothing” option.

The Everything Option

The everything option is for people who have everything, and want to protect it. This option encompasses insuring

www.akbizmag.com • Alaska Business Monthly • June 2012

yourself for every imaginable scenario—after all, one never knows if they will or will not need assistance with feeding, dressing, or taking medication. According to advice provided by Long Term Care Insurance Tree (longtermcareinsurancetree.com), a long term care insurance policy should cover the following: 1. Home health care services, including skilled care or custodial care in-home by a licensed home health agency or informal caregivers. 2. Nursing home services in a licensed nursing facility. 3. Care in a licensed assisted living facility at 100 percent of your daily or monthly maximum (some group plans cover only 50 percent or 75 percent) 4. Care in licensed adult day-care facilities (covered with most all Long Term Care Insurance policies). However, this is not a viable option for many Alaskans. Based on scenarios provided by Long Term Care Insurance Tree, monthly insurance premiums for a 43-year-old person can be anywhere from $1,695 to $3,082. According to a report from the U.S. Census Bureau, the median household income for Alaskans in 2009 was $66,953. For an Alaskan family with the median household income, to insure only one family member with the minimum cost policy would take their annual household income down to $46,613. To insure only one family member with the maximum cost policy would reduce the family’s annual income to $29,969. Furthermore, the “maximum lifetime benefit” of any of these policies (the amount the insurance company will pay) is between $216,000 and $225,000. According to Long Term Care Insurance Tree, the low end of what a 60-year-old person would pay per month in long term care insurance premiums is $3,000. A person will have essentially paid their maximum benefit amount within six years, but will continue to pay these premiums until they have a qualifying incident. So what kind of person can truly benefit from embracing the “everything” option? According to Roy Wells, certified financial planner with Waddell Reed Financial Services, opting for long term care is the best option for people who have “considerable significant” fi

nancial resources. “If you have these resources you have accumulated and wish to protect them, opting for a long term care insurance policy protects your assets while putting you in charge of your health care environment.” Wells also stresses the importance of designating an heir with an interest in your estate to know what is covered by your insurance policy, to make sure there are no lapses in premium payments, and to keep the policy enforced in the event that you become incapacitated.

The Nothing Option

The “nothing” option is for those whose incomes do not justify paying the premiums of long term care insurance policies, or for those who have nothing to protect. Many Americans have been briefed on the process of “spending down” in order to qualify for Medicaid. According to Cheri Herman, long term care coordinator for the Alaska Division of Public Assistance, if an individual has fewer than $2,000 in countable assets at the time that they need medical care, they can often depend on their minimum needs being met. Although all public assistance programs have varying factors of eligibility, including income limits, resource limits, medical criteria and current living situation, a person considering the spend-down option may be relieved to find that a home with equity value of less than $525,000 is not considered a countable asset. Also according to Herman, if a person “(transfers) an asset for less than its market value within the past five years, there may be a penalty resulting in loss of Medicaid eligibility for a period of time.” That said, in order to assure that they won’t be turned down for care as they age, some people, before they turn 60, transfer assets to their adult children; reversing the roles of who asks who to pay for what, fully embracing the adage: “once a man, twice a child.” However, transferring assets is risky business: Even the most honest heir can lose an estate through divorce, their own medical crises, mismanagement, or simply falling upon hard times. According to L. McAllister, former teller for Chase Bank, tellers are trained on how to respond to customers who suddenly find that their money is depleted

by simply repeating the question, “Who else is on the account?”

Somewhere in the Middle

Thankfully, for married couples with two incomes (even if one is Social Security), the risky business of spending down in order to assure care is rarely necessary. “Medicaid has unique ‘spousal impoverishment’ rules designed to keep a spouse who is still living in the community from being impoverished when trying to support a spouse who is in need of long term care in a medical institution, nursing home, or through waiver services. Spousal impoverishment rules allow the couple to retain a certain amount of resources and income above the Adult Public Assistance-related Medicaid fi nancial limits and allocate those resources and income to the community spouse,” Herman writes in an email. According to Wells, another option for married or partnered couples who share resources is to have a pool of shared money designated for paying cash for long term care. This, he says, can be more economical than insuring two individuals because of the reduced likelihood that they will both need care at the same time. Regardless of whether an individual or family has everything or nothing, it seems that end of life is the big equalizer that has inspired many titles and adages: “No one gets out of here alive,” “you can’t take it with you,” and “nothing is certain but death and taxes.” Some may be familiar with the humorous Jim Harkins quote, “I want to die peacefully in my sleep like my grandfather, not screaming in terror like his passengers.” On a serious note, if we can put ourselves in the driver’s seat to identify the best option for ourselves and our families, we can ensure a little more peace and a bit less terror. 

www.akbizmag.com • Alaska Business Monthly • June 2012

Mari Gallion is associate editor at Alaska Business Monthly.

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special section

Finance, Insurance & Real Estate

Commercial Real Estate Vacancies What’s really happening behind the scenes in Anchorage.

By Brandon J. Spoerhase

Downtown Anchorage on a sunny day.

riving the streets of Anchorage it is somewhat understandable to see why murmurs of concern are heard about the commercial real estate market. For example, our city’s latest revitalization project, Glenn Square, has remained only partly occupied since construction. Vacancies are not just limited to northeast Anchorage—the downtown area currently has 236,000 square feet of vacant office space. However, that does not take into account two of the larger transitions taking place. The 71,691 square feet that will come available to the market if the Alaska Department of Health and Human Services moves out of 826 L Street,

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and secondly, the 55,180-square-foot office building located at the northwest corner of I Street and West Ninth Avenue that is being refurbished to be fully leased out to a national corporation. It is not difficult to spot apparent vacancies scattered in other areas of town. In midtown there are still 73,165 square feet of vacant space at the new office building at the southeast corner of Northern Lights and C Street—188 West Northern Lights. The impact of the recession and the inflated vacancy rates in the Lower 48, combined with reports in larger cities of vacancies in the excess of 15 percent, this has led many Alaskans to ask brokers and other commercial real

estate professionals what is happening in Anchorage. While a quick glance can distinguish a vacant building from one occupied, it can be a full-time job to recognize the trends and overall performance of commercial products in any given city. When analyzing the commercial real estate market, professionals focus primarily on three products: office, retail and industrial spaces. Alaskans have heard about a number of large scale projects that would result in substantial growth for Anchorage and Southcentral Alaska for years. These construction rumors have created high hopes for many sourdoughs and have resulted in new construction developments being

www.akbizmag.com • Alaska Business Monthly • June 2012

placed on hold in anticipation for future demand. In total, there are about 850,000 square feet of office space in the planning stages in all areas except East Anchorage. Currently, overall office vacancy is at 5.48 percent, which we expect to rise due to new construction coming on line this year. Office space defined by the Building Owners & Manager Association (BOMA) is broken down into three classifications pertaining to the quality of buildings: ■ Class A: These are the most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and definite market presence. ■ Class B: These buildings are competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good and systems are adequate, but the building does not compete with Class A at the same price. ■Class C: These buildings are competing for tenants requiring functional space at rents below average for the area.

Anchorage Adds to Classifications

In Anchorage, we further divide the class A office buildings into two categories: those built prior to the year 2000 and those built after 2000. The juxtaposition between the two is often seen primarily in efficiency, but also in amenities and architectural design. Often, additional refining descriptions are used by adding a plus or minus to the letter class. For example, a building might be described as “A-minus” or “Bplus.” In smaller markets, such as Anchorage, an upgrading of one category is often accepted in the market. For example, a Class A building in Anchorage may be considered a Class B building in markets similar to Seattle. Class A office vacancy is relatively healthy with a vacancy rate of 5.62 percent, whereas Class B office vacancy is at a rate of 5.03 percent. At press time, the Class A average rental rate was $2.44 per square foot, and the class B average rental rate was $1.89 per square foot. Presently, about 80 office buildings in Anchorage can be considered either Class A or Class B, excluding medical office buildings, which consist of ap

proximately 5.9 million square feet. With very few new large tenants moving into the Anchorage area we have seen the majority of new office leases brought by existing local tenants upgrading their locations to superior spaces with additional amenities with higher energy efficiency. A new tenant to Anchorage, Verizon Wireless is the latest leasor to open at 188 West Northern Lights, occupying 7,000 square feet of office space.

Industrial real estate is by far the tightest product. As a result, it is difficult to find quality clear span and clear height space. One of larger tenant office transitions was the much anticipated Alyeska Pipe Service Co. moving from their location in the BP Building at 900 East Benson to occupy 60,000 square feet at JL Properties’ latest office development at 3700 Centerpoint Drive: a 200,000-squarefoot, eight-story Class A office building “Centerpoint West.”

New Construction

New construction coming on line this year includes the 34,000-square-foot building located on A Street, south of the Midtown Wal-Mart, to be occupied by Dynamic and RE/MAX real estate companies. Dynamic will be moving out of the Northrim Bank building at 3111 C Street and RE/MAX will be leaving Abraham Gallo’s building at 110 West 38th Avenue. Anchorage Neighborhood Health Clinic will fully occupy its new 43,000-square-foot building, which will be ready for occupancy in August. New construction is seen at the old Peter’s Sushi location, now a 30,000-square-foot-building fully occupied by Alaska USA Federal Credit Union. A speculative 84,000-squarefoot Class A office building is planned at C Street and International Airport Road, to be developed by JL Properties. Retail has been the talk of the town, especially with the retail battle between Kimco-owned Glenn Square and the dominating Tikahtnu Commons owned by CIRI Land Development Co. and partner Browman Development Co. Tikahtnu Commons is almost com-

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pletely leased or pre-leased at this time. Sam’s Club has submitted their building plans to the city for a 140,000-squarefoot store, becoming the last large anchor tenant. Sam’s Club is moving from their 100,000 square foot store at 3651 Penland Parkway to the northeast pad site at Tikahtnu Commons. Two new buildings will be going up, one 17,000 square feet, and the other 8,000 square feet, to be available for smaller tenants. These buildings will be going up next to the existing McDonalds and Firetap restaurants in Tikahtnu Commons. National chain Massage Envy will also be opening a 3,200 square foot store this fall, with construction starting in May. Glenn Square is starting to get on its feet, signing seven leases in the last five months, and has responded to a proposal for a 40,000-plus-squarefoot tenant. Overall, retail is the softest product in the market with an 8 percent vacancy rate.

New Industrial Development Needed

Industrial real estate is by far the tightest product. As a result, it is difficult to

find quality clear span and clear height space. The vacancy rate of 3.53 percent for industrial properties is unique to Anchorage, with an average rental rate of $0.90 per square foot triple net. Triple net is defined where the building expenses, taxes and insurance are passed along to the tenant on a pro-rated basis of space occupied. Taking into consideration the logistics, construction costs and high cost of building commodities, new industrial construction does not pencil out until the rates are in the neighborhood of $1.50 per square foot triple net. A few cutting edge developers are drawing building plans for new industrial space at $1.10 per square foot triple net. They are able to consider development at this price because they are using prefab construction and are able to buy steel at a low price. The larger the building the more economical the square foot building price. A majority of the good quality concrete tilt up dock high industrial inventory is leased to long-time established tenants, or owned by owner users, leaving very little space available to new tenants coming into the market.

One of the most surprising hurdles for national tenants coming into the market to comprehend is that Anchorage’s total current industrial inventory of 17,000,000 square feet is less than some of other major cities’ single industrial parks. Alaska has grown to be a diverse place in the last 50 years since its statehood, attracting people with the promise of prosperity, adventure and isolation. The population has grown each year and shows no signs of stopping. Looking back on the last 20 years, the urbanization of the city has occurred largely due to the influx of corporate interest, but without compromising the allure of Alaskan small business success stories in the land of the midnight sun.  Brandon Spoerhase is a commercial licensee at Jack White Commercial in Anchorage.

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Finance, Insurance & Real Estate special section

Five Keys to Get a “Yes” for a Small Business Loan By Bond Stewart

“W

hat does it really take for a small business owner to get a loan from a bank today?” It’s one of the top questions our bankers hear—and I would like to share our answer to this question. According to the latest Wells Fargo/ Gallup Small Business Index—our quarterly survey of small business owners nationwide—cash flow and revenue are key concerns for small business owners. And more than one in three small business owners (34 percent) rated getting credit was “somewhat or very difficult.” Many business owners entered the Great Recession carrying high levels of debt. As consumer spending dropped, sales declined and those business owners had a harder time obtaining credit. While small businesses continue to face challenges in an uncertain economic environment, today a significant number of small businesses in Alaska and elsewhere are getting loans. At Wells Fargo, we saw a modest increase in loan demand in the first half of the year. The businesses that are applying for loans today are stronger than they were a year ago, and as stronger businesses come to Wells Fargo for loans, we are able to say “yes” to more small business owners. So to help even more small businesses join those who are hearing “yes,” we’d like to share with you the five things small business owners need to know when applying for a small business loan or line of credit. ■ FIRST Show that your business generates steady cash flow. Cash flow is

a key indicator of a business’ health and its future prospects. When you can show reliable cash flow for your business, your bank can see that you have the resources to pay for new loans. ■ SECOND Make sure your current debt load is manageable. Your bank wants to make sure your business has the ability to take on additional debt and is in a strong fi nancial position to manage its debt payments. ■ THIRD Maintain a good payment history. Before extending credit, a financial institution needs to be confident a business has the ability to repay. Your payment history provides an important record of your ability to responsibly pay down debt. Obtaining a debit or credit card is a good way to begin building a payment history for your business. Your bank can then become more familiar with you, your business and your payment history, which gives it more information to evaluate when the time comes to apply for additional financing. ■ FOURTH Demonstrate business acumen. Successful businesses reinvent themselves all the time. Your bank wants to see that you anticipate potential challenges and have the management skills to overcome obstacles and pursue growth opportunities. Have a business plan that addresses the major challenges your business may face.

■ FIFTH Build a solid relationship with your banker. A long-term relationship with your bank—both business and personal accounts— will give you the opportunity to show how you manage your finances as a creditworthy business owner. If your bank has a concern that makes it unable to approve your loan, contact the Alaska Small Business Development Center at 907-2747232 or info@aksbdc.org or the Small Business Administration (SBA) Alaska District Office at 907-271-4022 or 800-755-7034 for business development resources. Here’s one final tip, if debt, cash flow or payment history are the barriers to securing a loan for your business: take a good look at your business model. Can you identify new revenue streams for your business? Do you have opportunities to reduce expenses? Are you able to improve profitability through changes in product mix, pricing or staffing? Talk with your banker—he or she will help you consider all the alternatives that will improve your business and the likelihood of getting a “yes” on your next loan application. Also, visit Wells Fargo’s Business Insight Resource Center (www.wellsfargobusiness insights.com) to access additional videos and articles with more information on how to qualify for a loan.  Bond Stewart is Anchorage Business Banking manager for Wells Fargo.

www.akbizmag.com • Alaska Business Monthly • June 2012

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SMALL BUSINESS

By Will Swagel

aking salt from seawater is one of the oldest trades in the world. Like wine-making, the production of sea salt goes back to the earliest days of civilization. Evaporate some seawater and you’ve got salt, right? But that’s like saying squeeze some grapes and you’ve got wine. The salt that Jim and Darcy Michener finesse from the waters of Sitka Sound is composed of crunchy little crystals that pop brightly on the tongue. Their product, Alaska Pure Sea Salt, is a fine finishing salt, meant for sprinkling on food before eating, not during cooking. It sells for $16 or more for 8 ounces, 10 times the price even of premium supermarket brands. This is a market that demands both perfection and reliability of product. To meet those demands, the Micheners spent years tinkering before bringing out Alaska Pure Sea Salt. And to their delight, their efforts have resulted in a salt that achieves what a salt expert called “a high culinary calling.” “Their salt is badass,” said Mark Bitterman, author of the book “Salted” and a purveyor of specialty salts on both coasts and on the web. “I don’t want to say that it’s the best because there’s a lot of good stuff out there, but it’s one of the definitely awesome salts of North America.”

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A Salt of the Sea Company After more than 10 years of experimentation, Jim and Darcy Michener’s products have gotten rave revues from chefs and food writers. Alaska Pure Sea Salt manufactures three varieties of sea salt: regular, alder smoked and wild blueberry.

Less Than 1 Percent

Hundreds of millions of tons of salt are produced worldwide each year, but the bulk is for industrial and agricultural uses. Salt for eating represents only about 3 percent of the total. Most table salt is mined from mineral deposits or from salty marshes, where salt naturally accrues. Those salts are processed to have more uniform cube-shaped crystals, which may be bleached and may have an anti-caking agent to keep the salt from clogging up the shaker. Finishing sea salts such as Alaska Pure are less than 1 percent of the table salt market. They get a much more delicate treatment. The right combination of ingredients, time and temperature can coax out of the seawater perfect crystals of sodium chloride. A few flakes of Alaska Pure’s little pyramids feel crunchy, but melt on the tongue, releasing a clean saltiness, quite different from ordinary table salt. The salt is produced in a plain-looking building in Sitka with equipment that Jim designed and was custom-made in Sitka. The Micheners are protective about the particulars of their process and asked that even the smallest details

be kept under wraps. It’s no wonder they’re careful. The production of artisan salts in North America is a relatively new phenomenon and growing fast. “Americans, as it often is with food, we’re a little bit behind the curve,” said Bitterman, whose gourmet food website atthemeadow.com lists more than 20 American salts among its many offerings. “Salt is something that is made in every country in the world with every technology you can imagine and there are literally tens of thousands of people making incredible salt. I know of 1,200 artisan salts in Japan alone.” In the marketplace, said Bitterman, Alaska Pure Sea Salt benefits from Alaska’s reputation as a clean and pure source— the same as that enjoyed by Alaska’s fish and bottled water. But its main strength is the Micheners’ dedication. “Anybody can make salt—you just take seawater and evaporate it, but it takes some doing to get salt this good,” Bitterman says. “They took the time necessary to get a process down that really makes a good salt.”

The Accidental Salters

The Micheners didn’t intend to become salters, or salt-makers, and how they

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The Russian-flagged T/V Renda preparing to fuel in Dutch Harbor Jan. 3 for the historic voyage across the frozen Bering Sea to deliver 1.3 million gallons of winter fuel to Nome with an escort by the U.S. Coast Guard Cutter Healy, the Coast Guards only operational polar icebreaker.

was to keep the customer out of risk if the fuel didn’t arrive.” Smith and his people at Vitus Marine got busy with the logistics of the operation and started making contact with all the parties that would be involved in what was to become the history making first commercial winter delivery of petroleum through sea ice to Nome. “Sitnasuak and Vitus Marine inquired and appealed for support to Lt. Governor Meade Treadwell and the congressional delegation,” Smith says. “John Kotula of the Alaska Department of Environmental Conservation and USGC Captain Jason Fosdick were instrumental in providing regulatory oversight and prevention strategies. Bob King, legislative assistant for Sen. Mark Begich provided a lot of sup-

port as did Bob Walsh from Sen. Lisa Murkowski’s office.” Sitnasuak announced the contract Dec. 5 last year for Vitus Marine LLC to deliver, via the Renda, the rest of Nome’s winter fuel, approximately1.3 million gallons. “The Coast Guard has done an excellent job in working with us to execute an innovative and complex solution to the fuel crisis that currently faces the community of Nome,” said Sitnasuak Board Chairman Jason Evans when announcing the contract Dec. 5. “They are currently investigating the use of the Coast Guard icebreaker Healy to ensure the Russian tanker is able to make it through the ice to Nome. We really appreciate their assistance.”

US COAST GUARD TO THE RESCUE

The Healy happened to be on its way home from a seven-month scientific mission in the Arctic Ocean and extended its Alaska stay another month to make sure the Renda made it through the sea ice to Nome. The Seattle-based 420-foot polar icebreaker with 80 crewmembers onboard is the country’s largest, and only working, icebreaker. The Coast Guard agreed to help, with conditions: “The Healy’s participation is contingent upon the following four items: the Renda passes the Coast Guard port state control exam, there are no inordinate delays, the fuel transfer plans meet federal and state requirements and on scene weather conditions permit safe passage. If all these conditions are met the Healy will assist the Renda’s transit

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The Alaska Pure Sea Salt product line.

did is a good story. Jim, a charter captain and wilderness instructor, and Darcy, an optometry technician, met in Sitka in 1993 and got married six years later. They spent their honeymoon at one of the cabins in the Tongass National Forest that the USDA Forest Service rents to the public. These cabins are cozy affairs and come with sleeping lofts, stoves and a pile of cut firewood. The cabins are often near the beach, but there is no source of drinking water. And when you have to haul all your fresh water from town in jugs, you use seawater whenever you can—like for washing dishes. Honeymooners may get distracted and a pot of water the Micheners left on the woodstove evaporated, leaving a healthy residue of salt. “We got intrigued and started playing around,” Darcy says. “Jim got very interested in the science of it all and I got into the cooking and experimenting with local flavors. We experimented for years to get the perfect little pyramids,” she added, showing me a photograph of a small pile of salt that looks like the purest snow. Indeed, she said, the process reminds her of snowflakes falling, as the pyramids rise to the surface of the heated brine and then slowly sink back down. “We had to look at 100 different variables and change them one-by-one and then repeat the process,” Jim says. After years of getting better and better results, the Micheners obtained their business license in 2007 and produced small amounts of salt in their

home. They received a low interest economic development fund loan from the City of Sitka, which allowed them to finance their custom equipment, move to their larger facility, and ratchet up production. In 2011, they formed Alaska Pure Salt Company LLC; seen online at alaskapureseasalt.com.

Worth Their Salt

Along with becoming a self-taught salt scientist, Jim has become somewhat of a salt historian. “Salt was a method of currency for thousands of years,” he says. “Salt was more important than gold. You can live without gold, but you can’t live without salt. Roman soldiers were paid in salt.” Both the word salary and the expression, “worth your salt” are believed to be derived from that salty Roman paycheck. Romans sprinkled salt on their vegetables, or salad. The Roman Empire, the British Empire and the Chinese Imperial government all manipulated the price of salt to reward the populace or to finance wars or public works. People since prehistoric times have collected seawater in beachside ponds and let the brine evaporate in the sun. There are also artifacts of large pans made of a coarse ceramic material called briquetage used to hold brine over fires of wood or charcoal. Later, the pans were made of iron or lead. Bitterman said there are artisan salters using all these methods today, as well as the more modern ones. According to Bitterman, Alaska Pure Sea Salt is good enough to be competi-

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Pure Sea Salt is a fine finishing salt, meant to be sprinkled on already cooked food. Jim and Darcy Michener watch Chef Collette Nelson of Ludvig’s Bistro, as she sprinkles Wild Blueberry Sea Salt on a slice of Boca Negra chocolate tart.

tive in an international competition, but like other North American salts, it is unlikely to make a big impression in the overseas market. In Europe, he explains, there are salts which have been perfected over 1,000 years and companies more than 100 years old. But he

does think American foodies are catching on to the potential delights of their most commonly used seasoning. “As people become more educated and start to view salt again as a natural food that has distinctive and amazing properties of its own, we’ll see a continued

increase in the number of regional salts that are being produced,” Bitterman says. “We’re still at the beginning of this movement of reclaiming our salt.”  Will Swagel is an author living in Sitka.

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NATIVE BUSINESS

8(a) and Alaska Native Corporations Working as intended to help fulfill mandates By Paula Cottrell

Photo courtesy of Native American Contractors Association

laska Native 8(a) contracting practices have come under close examination as some members of Congress feel the special consideration given to Alaska Native Corporations (ANCs) provide a disadvantage to individually owned 8(a) companies. The SBA’s Section 8(a) program was designed to remedy discrimination by helping eligible small businesses compete in the American economy through business development, according to the U.S. Small Business Administration. In 1986, significant changes were made to the 8(a) program when Congress enacted legislation that allowed ANCs, Native Hawaiian Organizations, community development corporations and triballyowned firms to participate in the 8(a) program. These Native entities were not only allowed to participate in the 8(a) program, they were given two large advantages over other 8(a) companies as long as they could prove they were small disadvantaged companies: the ability to be awarded sole-source contracts without financial caps and the ability to operate more than one 8(a) company. ANC 8(a) subsidiaries are deemed small disadvantaged companies through an act Kevin Allis, executive director of the Native American Contractors Association of Congress.

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Opposition in Congress

Sen. Claire McCaskill of Missouri is the Chairman of the Subcommittee on Contracting Oversight, which held extensive hearings in July 2009 on contracting preferences for ANCs. Based on their investigation, McCaskill introduced Senate bill S. 3959 on Nov. 16, 2010, which sought to “eliminate the preferences and special rules for Alaska Native Corporations under the program under section 8(a) of the Small Business Act.” Those seeking 8(a) program reform through S. 3959 say they would like to see “fair competition restored to the program.” According to S. 3959, “This legislation will place ANCs on equal footing with other eligible 8(a) program participants. Under current 8(a) rules, ANCs are exempt from having to demonstrate social or economic disadvantage, are allowed to be managed by non-Native executives, and are exempt from solesource award limitations.” The bill eventually died, but was reintroduced Jan. 31, 2011, by McCaskill and Sen. Thomas Carper of Delaware as S. 236, where it was referred to the Committee on Small Business and Entrepreneurship. In the House of Representatives, Rep. Bennie G. Thompson of Mississippi created similar legislation Feb. 9, 2011, under H.R. 598 with six cosponsors: Rep. Corrine Brown of Florida, Rep. Henry Cuellar of Texas, Rep Barbara Lee of California, Rep. Gregory Meeks of New York, Rep. Jackie Speier of California and Rep. Chris Van Hollen of Maryland. This bill was referred to

www.akbizmag.com • Alaska Business Monthly • June 2012

Photo courtesy of Afognak Native Corp.

“ANCs perform a needed service for the federal government and bring the profits back to Alaska, infusing those profits into the local economy through Alaskan jobs, benefits to shareholders, donations to local nonprofits, investments into the new business sectors, contracts to local small businesses and taxes to the state and federal governments.” Sarah Lukin, Senior Vice President of Corporate Affairs, Afognak Native Corp. the Indian and Alaska Native Affairs House Subcommittee. Kevin Allis, executive director of the Native American Contractors Association says, “Sen. Claire McCaskill and her supporters want to scale the existing program back in large measure because she doesn’t understand the purpose and the needs of the 8(a) program in Alaska Native communities.”

ANCSA and the 8(a) Program

The development of Alaska Native communities through ANCs dates back to 1971 when the Alaska Native Claims Settlement Act was passed into law. This historic measure intended to resolve the long-standing issue of aboriginal land claims in Alaska while providing clear title for a land corridor for the development of the trans-Alaska oil pipeline. Additionally, ANCSA created a mechanism for economic development in Alaska, particularly in rural areas that provided an alternative method of commerce for Alaska Natives different from the reservation system that served to disenfranchise Native cultures across the lower 48 during the 19th century. “Native Corporations of today are tasked with providing benefits and services to the communities they serve in a fashion similar to the benefits and programs the federal government provides to non-Native individuals,” Allis says. “With the creation of ANCs and the Native 8(a) program, Alaska Natives have seen dramatic improvement in their ability to provide for their people. According to the 2010 ANCSA Regional Report, the Alaska Native high school

graduation rate has tripled, the Alaskan Native household income has risen by 50 percent and the proportion of Alaska Native people living below the poverty line has decreased by roughly 50 percent.” Updated ANC economic statistics were expected to be released by NACA in May 2012. Sarah Lukin, senior vice president of corporate affairs for Afognak Native Corp. says, “The 8(a) program is one of the few Indian economic development programs that is working as Congress intended. Utilizing the 8(a) program has provided ANCs economic opportunities that in turn help them to fulfi ll their Congressional mandate to care for the social, cultural and economic wellbeing of the Native communities in perpetuity.” “The 8(a) program in the purest sense is designed to assist small businesses in getting started and allowing them to develop through the nine-year program when they graduate to being an active and legitimate competitor in the U.S. economy,” Allis says. “Access to federal contracting is a way for ANCs to succeed and build capacity to care for their people and provide benefits over many generations.”

Defending the Benefits of 8(a) Programs

Some of the reasons the Native 8(a) program is working so well for ANCs— such as sole-source contracting—are the same reasons critics have used to scrutinize the program. “Opponents feel that American tax payers aren’t getting best value with sole-source contracts,” Allis says. “The federal

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government does not award contracts blindfolded. There is a negotiation and approval process that the awarding entity and the agency must go through prior to contract approval. By going through this exercise, taxpayers receive best value and avoid the costly process of competitive bidding.” While it is true that Native 8(a) corporations are not held to the solesource contracting limits of $4 million for services and $6.5 million for supplies and manufacturing, the misconception that Native 8(a) companies can receive sole-source contracts of unlimited value without a process in place to ensure best value to the American taxpayer is false, according to Lukin. “The National Defense Authorization Act for FY2010 included a provision which requires contracting officers to provide a formal written justification and obtain approval by the ‘head of agency’ before awarding a sole-source contract over $20 million to a Native 8(a). This law was implemented through federal regulation,” adds Lukin. On the surface, Native 8(a) companies may not resemble traditional individually owned 8(a) companies because they operate with larger parent companies, but they are held to the same small business size standards established and enforced by the SBA, according to Lukin. “ANCs need large sole source contracts to benefit all their tribal member shareholders, who represent hundreds and even thousands of individuals. These Native entities are unique and quite distinct from any other ‘minority’ group,” Allis says. “Many outsiders just don’t understand what we as ANCs are about and the number of people we are serving. ANCs must provide not only for current shareholders, but must also consider future generations, while individual 8(a) companies are generally providing for one family.” “Critics argue Native 8(a)s couldn’t possibly be doing the work and therefore must be fronts for large businesses. There are strict federal rules and regulations governing work performance for all 8(a) companies,” Lukin says. “A small business must perform at least 50 percent of the work on a service contract and at least 15 percent of the work on a construction contract. Period. Failure to comply will ■ 42

www.akbizmag.com • Alaska Business Monthly • June 2012

“The 8(a) program is one of the few Indian economic development programs that is working as Congress intended. Utilizing the 8(a) program has provided ANCs economic opportunities that in turn help them to fulfill their Congressional mandate to care for the social, cultural and economic wellbeing of the Native communities in perpetuity. Sarah Lukin, Senior Vice President of Corporate Affairs for Afognak Native Corp. lead to disciplinary action, up to and including removal from the 8(a) program.” And for the critics who say the 8(a) program benefits are not reaching the Native Community? “Let me be clear,” Lukin says. “A book could be written about the benefits provided to Native peoples as a result of the 8(a) program. In fact, if it was not for the dividends Afognak Native Corporation is able to distribute to our shareholders from profits we earn from government contracting and the 8(a) program, the majority of our shareholders would be living below the U.S. poverty line and as a result, may be forced to seek government assistance.” Benefits do not come in just the form of dividends. ANCs are able to provide jobs, scholarships, internships, appren-

ticeships, employment training, elder benefits, youth leadership programs, death benefits and community services, according to Lukin. “ANCs perform a needed service for the federal government and bring the profits back to Alaska, infusing those profits into the local economy through Alaskan jobs, benefits to shareholders, donations to local nonprofits, investments into the new business sectors, contracts to local small businesses and taxes to the state and federal governments.” Afognak Native Corp. has provided $2 million in scholarships and jobs training. “They are a good example of how everyone should strive to be better,” says Ron Perry, president of the National 8(a) Association. Investing in their future through education is

building a solid foundation for generations to come. “They are young, they are aggressive, they are college educated. They understand where they came from and they understand where they are going. It’s this next generation that we’ve waited 30 years to see,” adds Perry. “As an Alaska Native Corporation, it is our responsibility to empower our shareholders through access to tools, resources, and support, to be the very best in whatever they chose to be,” says Lukin. “Whether our shareholders choose to work for Afognak or pursue careers in other areas, it is a success.”  Paula Cottrell is a writer living in Anchorage.

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ENVIRONMENTAL SERVICES

Decontaminating Alaska Cleaning up the 49th State By K.T. McKee

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Photo courtesy of Emerald Alaska Inc.

he Cold War may be over, but the battle over cleaning up toxic waste and contaminated soils at hundreds of abandoned military sites in Alaska is hotter than ever for environmental services companies. Whether on the tip of the Aleutian chain at Atka or just north of Anchorage at the Native Village of Eklutna, the United States Department of Defense continues to budget money—$46 million this year alone for Alaska—to dig up and properly dispose of hundreds of rusting drums and other volatile remnants of strategic posts from World War II and the ‘50s. “Environmental clean-up is the name of the game right now,” Brice Environmental Services Corp. General Manager Craig Jones says when talking about Brice’s $5 million contract to clean up a former anti-aircraft artillery site near Eielson Air Force Base near Fairbanks. “The jobs are sometimes hard to get, but when you win the bid, it can be a windfall for your company.” Coordinated through the U.S. Army Corps of Engineers, the Formerly Used Defense Sites program identified more than 500 potentially contaminated sites throughout the state after the program was created in 1986, according to FUDS Program Manager Ken Andraschko and the Corps of Engineers website, which currently shows 299 site in Alaska. Sixty of those projects have been completed, Andraschko said. The FUDS work is estimated to continue until 2020. Additional contaminated properties fall under the Native American Lands Environmental Mitigation Program, which was created by Congress in 1992 after it was determined many Native lands were not being properly cleaned up under FUDS. NALEMP provides for a cooperative partnership between tribes, the gov-

Emerald Alaska Inc. crew working at the Port of Anchorage in response to a hydraulic oil spill onto the pack ice right along the dock face. Emerald crews used steam to melt the ice and liberate the oil from its surface. The resultant material was vacuumed up to an industrial high volume air moving vacuum truck Emerald operates for spill cleanup and other industrial cleaning operations. Recovered materials were treated and recycled at Emerald’s Viking Drive Facility in Anchorage.

ernment and the companies tasked with cleaning up the contamination. “The NALEMP program provides a unique opportunity to include tribes in the projects that affect their lands,” said Elijah Donat, senior project man-

ager of Chilkat Environmental LLC, a company based in Haines that works partly under NALEMP contracts. “The FUDS projects, on the other hand, don’t include anybody except the large contractors chosen for the jobs.

www.akbizmag.com • Alaska Business Monthly • June 2012

Photo courtesy of Chilkat Environmental LLC

Elijah Donat, of Chilkat Environmental LLC, at the Eklutna site, pushing a contaminated drum into a clean drum for disposal.

They have no incentives to build relationships in the community because they’ll never be there again after the job is done.” The Eklutna site is a perfect example of the challenges of identifying and mitigating contaminants left by military activity of the past, Donat said.

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“The Eklutna Army site went through a series of five assessments since the ‘60s and each assessment found it clean, so it was transferred to an Alaska Native Corporation,” says Donat, one of the original founders of Chilkat in 2007. “I went in through NALEMP and found hundreds of buried drums filled with

contaminants along the railroad tracks there. All it took was actually showing up and walking around.” Donat said he also discovered about 30 degraded Quonset huts on the 150 acres of property, and learned the military had bulldozed the state’s first Indian boarding school from the ‘20s after using it for military purposes. According to Donat, the main motivation for finally funding the clean-up was the fact that scientists feared contamination of the groundwater at Eklutna could actually spread to the Anchorage bowl. And although tests showed it wasn’t, Chilkat and the Native Village of Eklutna finally got the go-ahead to dig up 53 of an estimated 200 rusting drums full of hazardous solvents and fuels to protect the nearby residents. The Eklutna project has so far cost $1.5 million, Donat says. In April the company got the green light to install water monitoring wells to ensure any remaining contaminants in the soils don’t affect the residents’ drinking water. At the week-long Annual NALEMP meeting in Anchorage in April, Donat said he was happy to learn the program is get-

www.akbizmag.com • Alaska Business Monthly • June 2012

Photo courtesy of Emerald Alaska Inc.

ting $12 million this year, and that $8 million of that is going directly to the tribes. “Although the Department of Defense is cutting at all levels, the NALEMP program is not being cut,” said Donat, who earned his first Bachelor of Science at age 18, and was a director of the Native American Fish and Wildlife Society at 23. “Although it could use more funding, we’re not complaining because we’re just so happy it’s not getting cut.”

Continued Funding

The continuation of the FUDS and NALEMP funding is good news for other Alaska companies, too. Emerald Alaska Inc. may have its headquarters in Seattle, but its Anchorage, Palmer, Fairbanks, Kenai and Prudhoe Bay offices are continuously busy with Corps and oil field projects all over the state. The Alaska-founded company has grown from 13 employees eight years ago to 120 today. “We’ve been doing FUDS projects since 2000,” says Emerald President Blake Hillis, of Palmer. “There are about 80 sites around the state that potentially use our services. Last year we

Emerald Alaska Inc. employee decontaminating a water treatment pond at a Cook Inlet crude oil processing facility using an industrial power washer to remove oil contamination prior to a scheduled maintenance procedure on the pond’s liner system.

shipped 10,000 yards of PCB-contaminated soil out of Port Heiden. We have a very large map in our Anchorage office with pins stuck wherever we’ve been.” Hillis said his company is the only one in Alaska with processing facilities

for nonhazardous wastes, and is able to recycle petroleum and automotive fuels for re-use by clients. “We’ve been very innovative in what we’ve done and we have the best people working for us,” says Hillis, who works

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with both a son and a daughter. “I hire people who are smarter than I am. They make my life a lot easier.” Hillis said his company is bidding on an environmental restoration contract being put out by the Corps of Engineers this summer, but he realizes there is a lot of competition.

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Photo courtesy of Emerald Alaska Inc.

Decontaminating Dirt

Brice Environmental Services Corp. has been around for about 20 years and became part of Calista Corp. last August, Jones said, after Brice was awarded the Eielson Farm Road project through the FUDS program last April. The site just outside Eielson Air Force Base in Fairbanks involves excavating 40,000 tons of contaminated soil caused by leaking diesel tanks and heating oil pipes on the property. “It was a good one,” Jones said of the multi-million dollar project started last fall and anticipate completing this month. “The work we did last fall was the largest volume of contaminated soil remediated by the Alaska District in one field season ever.” Jones says he is proud of the company’s track record for safety, which earned it a multi-year “Celebrate Safety” award from the Corps. Neil Folcik, a Corps of Engineers project manager in Alaska, said the Eielson Farm Road project involved more work than originally anticipated. “A lot of fuel got spilled and went to the water table,” Folcik explained. “There were three or four acres of contaminated soil. We first estimated there were about 30,000 tons of soil, but added another 10,000 tons this year. The plume migrated a little. It was first mapped in 2006 and expanded by 20 percent in 2011.” Folcik said the project first involved removing rusted cars and debris that had accumulated there over the years on what became Alaska Mental Health Trust property. “We have an agreement with the Mental Health Trust that they won’t sell the property or give it back to the state while we’re actively cleaning it up,” Folcik said, adding that although the water table had been affected by the contamination, there was no risk to those living down gradient of the site. “It could be 30 years before drinking water there is back to acceptable standards,” he says.

Emerald Alaska Inc. removed more than 15,000 tons of low-level PCB contaminated soil accumulated from various sites on what is now Joint Base Elmendorf-Richardson (JBER). This project required several modes of transportation including railroad gondola cars (pictured) shipped by barge, intermodal bulk soil containers shipped by highway and steamship, and a deck loaded covered bulk barge filled at the Port of Anchorage by dump truck and hauled to the Port of Seattle for offloading. All of the contaminated soil was packaged and removed from Alaska during a 14-day period in late fall 2010 and disposed of at EPA Permitted facilities in the lower 48 States.

Site Logistics

When it comes to easily accessing clean-up sites, Eklutna and Eielson are a piece of cake compared to the Pribilof Islands and sites along the Aleutian Chain, Folcik says. “We’re spending millions just to get to the remote sites,” he says. “We’re chartering helicopters and barges to reach some spots.” Northeast Cape on St. Lawrence Island involved the removal of contaminated drums and infrastructure before the PCB-tainted soil could be cleaned up. The site is about 60 miles from Savoonga, and is being remediated by Bristol Environmental Corp.. “Our costliest project so far is at the Northeast Cape,” Andraschko said. “I’m guessing it’s in the $80 million range.” Andraschko had high praise for the NALEMP program. “It’s a wonderful program,” he said. “We recognize that FUDS can’t get everywhere. NALEMP fills in the gaps and takes care of some of the things

that FUDS can’t get to in a quick and timely fashion or where the risk perspective isn’t very high. The two programs complement each other.” Andraschko said the programs appear to be stable for at least the next five years. “Everything depends on Congress,” he said. “They’re typically funding it nationally at $150 million to $300 million a year since the ‘80s. But there’s still quite a lot of sites to take care of.” One of those more remote sites in the Aleutians at Atka had been used during WWII as an Air Force Station. It had a runway, hospital and radio communications station that had eventually deteriorated, along with a grease and oil pit buried 10 feet below the surface. The Aleutian Pribilof Islands Association contracted with Chilkat Environmental to investigate the oil and tar drum pit site there through NALEMP last fall because residents were dissatisfied with previous efforts to locate the pit.

www.akbizmag.com • Alaska Business Monthly • June 2012

The pit’s close proximity to a creek that flows into a nearby bay worried residents. The creek supports a salmon run that helps sustain their subsistence lifestyle, according to a 2008 environmental report. The population of about 100 is almost exclusively Aleut, whose ancestral occupation goes back at least 2,000 years. The U.S. Navy evacuated the residents in June 1942, forcibly, to internment camps where many died, and burned the village to the ground to prevent any use by the invading Japanese army, according to history. The site was abandoned by the military in late 1945 and the surviving Aleuts returned to the island. In 1986, the Army Corps of Engineers hired a contractor to demolish abandoned military buildings on Atka. “Building debris, thousands of drums, over 400,000 square feet of runway matting, and other materials were buried in at least five disposal sites in the area,” the report said. “No contamination sampling was performed at the time.” It wasn’t until 1998 that the Corps of Engineers performed a site investigation to identify numerous contaminant sources there. Bruce Wright, senior scientist of the Aleutian Pribilof Islands Association, said the Atka project is a perfect example of the cooperative nature of NALEMP with environmental mitigation companies and the Native communities they are serving. “Elijah went out there and listened to the elders, who told him they were looking too far south for the drum pit,” Wright said. “They told him he needed to move over 10 feet to find it. Sure enough, it was there. The drums were in really bad condition.” Wright said it’s common for folks to wonder why drums containing toxic chemicals would be buried and abandoned by the military after WWII. “People used to not treat these things as very toxic,” Wright said. “It wasn’t until the Exxon Valdez incident and research conducted on the water and wildlife there that there was a push for higher toxicity standards. We realized that was really dangerous stuff we were dealing with. It wasn’t as organic as mother’s cherry pie, after all.”  K.T. McKee is a writer living in Wasilla.

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RIGHT MOVES

Compiled by Mari Gallion

Alaska Business Monthly

First National Bank Alaska

Brent Kimball recently joined First National Bank Alaska as comptroller. Kimball has more than 25 years of banking experience and vast knowledge of bank operations, financial management and regulatory requirements.

Doyon Limited

Geiger

Anderson

Alaska Business Monthly welcomes David Geiger as art director and Tasha Anderson as survey coordinator and editorial assistant. Geiger earned his bachelor’s degree from Collins School of Graphic Design. Anderson recently graduated from University of Wyoming with her bachelor’s degree in English.

Doyon, Limited announced that Geraldine Simon will serve as the corporation’s new senior vice president of administration. Simon holds a Juris Doctorate from the Seattle University School of Law and is a member of the Alaska Bar Association, and a Bachelor of Arts degree from the University of Washington.

Solstice Advertising

Alaska Communications

Alaska Communications has appointed Andy Coon as vice president and general manager of consumer and small medium business sales. Prior to joining Alaska Communications in 2012, Coon served as region vice president of Xerox Coon Alaska, and spent 12 years in the telecommunications industry in several leadership roles in both Alaska Communications and GCI.

Wells Fargo Insurance

Eric Deeg has been named employee benefits program manager for Wells Fargo Insurance in Alaska. Deeg has 25 years of experience managing employee benefits and health insurance programs for organizations in Colorado, Deeg Montana, Washington and Alaska, including 10 years as a senior vice president for Brady & Co.

Davidson

Bartz

of Kenai. The Mission of the Cook Inlet RCAC is to represent the citizens of Cook Inlet in promoting environmentally safe marine transportation and oil facility operations in Cook Inlet. The Cook Inlet RCAC also announces the retirement of its original staff member, Assistant Executive Director Karen Delaney. After 21-plus years, Karen and her husband Tim will be moving full-time to Montana, where she will begin a new career at Salish Kootenai College in Pablo.

Visions Meeting and Event Management

Visions Meeting and Even t M anagemen t announces the hire of Tina Day as director. Day is a graduate of California State University earning a Bachelor of Arts in Communications. Day’s previous experience includes proprietor of Day a marketing consulting firm and deputy director of communications for Governor Frank Murkowski.

USTravel

Solstice Advertising is thrilled to announce the hiring of Paul Davidson as web technician, Davidson has spent 15 years working in the communications industry and has a strong background in creative technology. He holds a bachelor’s degree in English from the University of Colorado. New Solstice copywriter Jackie Bartz brings her creative writing and storytelling skills from the local broadcast arena. Bartz holds a bachelor’s degree in broadcast journalism from the University of Montana.

Cook Inlet RCAC

Cook Inlet Regional Citizens Advisory Council Executive Committee accepted the elections or appointments of five new or returning members of the council board to three-year terms on March 30, 2012. Board members installed at the 2012 Annual Meeting are: Gary Fandrei, Aquaculture Associations; Rob Lindsey, City of Kodiak; Paul Shadura, Commercial Fishing Organizations; Carla Stanley, City of Homer; and John Williams, City

Nerland

USTravel announces the hire of Elizabeth Nerland as marketing manager. Nerland earned her Bachelor of Science in Business Administration, Marketing and Bachelor of Arts in Corporate Communications from Duquesne University in Pittsburgh, PA.

McDowell Group

McDowell Group is pleased to announce it has hired Laurie Orell to serve as a project manager in the firm’s Anchorage office. Orell graduated from Smith College in 2000 with a bachelor’s degree in anthropology and Latin American studies. She earned a master’s degree in public health from Emory University in 2005.

OH MY! ■ 50

www.akbizmag.com • Alaska Business Monthly • June 2012

RIGHT MOVES

Compiled by Mari Gallion

Aleut Corp.

Campos

Lionel Campos was hired as Controller for the Aleut Corporation. He previously served for 6 years as Controller for Ahtna Inc. His specialties include the Service Contract Act, government contracting and audits.

of Appeals for the Ninth Circuit and the United States Supreme Court. Moore is a graduate of the University of Puget Sound School of Law and is admitted to practice in the Alaska state and federal courts, the U.S. Court of Appeals for the Ninth Circuit and the United States Supreme Court. Zoran received his J.D. from Gonzaga University School of Law. He is admitted to practice in Alaska’s state and federal courts.

BiNW

Denali Alaskan Federal Credit Union

Rodel Bulaong has been promoted to retail sales branch manager at Denali Alaskan Federal Credit Union’s Tikahtnu branch. In 2011 he completed Magellan’s Supervisory Skills course, a series of modules designed to educate supervisors on Bulaong different leadership philosophies and methods for managing employees.

Kenai Fjords Tours

Wille

Ron Wille has been promoted to assistant general manager of Kenai Fjords Tours. Wille has held the position of operations manager for Kenai Fjords Tours for the past 7 years. He will continue his role in operations, as well as expand his involvement in all aspects of the business.

Yukon Equipment, Inc.

Yukon Equipment, Inc. welcomes Darrell Carter as the new branch manager of the Fairbanks location. He brings with him over 23 years in the industry.

Thompson & Co.

Phelan

Hawkins

Joanne “Jodi” Partain Phelan has joined BiNW as the Alaska director of sales and professional services. Phelan brings over 25 years of experience in the Alaskan marketplace, most recently with AT&T Alascom. Tom Hawkins has joined BiNW as the Government Account Development Manager. Hawkins will lead the government team in an effort to exceed the expectations in every facet of our customer’s projects.

Enterprise Engineering, Inc.

Landye Bennett Blumenstein LLP

The law firm of Landye Bennett Blumstein LLP is pleased to announce that attorneys Joseph M. Moran, Bruce A. Moore and Adolf V. Zeman P.C. joined the firm’s Anchorage office. Moran received his Juris Doctorate. from the University of San Francisco School of Law and is admitted to practice in Alaska’s state and federal courts, the U.S. Court

and Lindsey Whitt as communications director. Morrison recently received his international master’s in business administration from Madrid’s Instituto de Empresa. Whitt most recently served as the director of marketing and public relations for the Port of Anchorage. She also has 10 years of local experience in public relations and strategic planning.

Frederick

EEI is excited to announce that Jesse K. Frederick, PE has become a principal of the firm. Frederick joined EEI in 2004, and has nine years of experience specializing in design and assessment of commercial and military fuel piping systems.

Municipality of Anchorage

Mayor Sullivan today named Joe Morrison as project manager for the 49th State Angel Fund

Stevens

Myers

Thompson & Co. Public Relations is pleased to announce the promotion of Tara Stevens to account manager and the addition of account coordinator Catalina Myers. Stevens graduated from the University of Idaho with a bachelor’s degree in advertising and creative writing. Myers graduated from Southern Oregon University with a bachelor’s degree in journalism and communications.

Anchorage School District

Six new principal assignments and one administrator position for the 2012-13 school year were approved by the administration and Anchorage School Board: Lucas Saltzman, Aquarian Charter School; Sue Forbes, Chugach Optional Elementary; Darrlee Vincek, Huffman Elementary; Brandon Locke, O’Malley Elementary; Carol Bartholomew, Polaris K-12; Greg Balcao, Rabbit Creek Elementary. Denise Green-Wilkinson, current principal of Polaris K-12, will serve as president of national Association of Secondary School Principals until July 2013. The new career and technology education director is Kristen Forrester.

www.akbizmag.com • Alaska Business Monthly • June 2012

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TELECOM & TECHNOLOGY

Is Your IT Up to Speed? Finding the right technology to take your business into the future

By Russell Girten

ith very few exceptions, management teams of Alaska’s businesses didn’t intend to become masters of information technology. Yet for many businesses, trapped under the weight of an ever-increasing set of technology demands, it seems as though the company is working to support the technology, instead of the technology supporting the company. While IT can have a strong role in enabling a business, it can also challenge the business. As Robert Carter, CIO of FedEx said recently, “You have to be a masochist to want to be an IT person,” especially when there are more customer-facing issues to tackle every day. Small and medium businesses spend a significant amount of money on IT. Justin Jaffe, research manager for Small and Medium-Sized Business Markets at IDC has recently stated, “Spending on IT by the 8 million small and medium-sized businesses in the United States will exceed $138 billion in 2012, accounting for approximately one-quarter of overall global SMB IT spending and more than 10 percent of all IT spending worldwide.” Because it is such a lucrative market, IT providers are paying more and more attention to these customers. The fact that smartphones are becoming more capable, notebook computers are becoming smaller, and tablet computers are more widespread than ever is having a dramatic impact on our ability to access the information we need to run our businesses. A recent study by The Business Journals of 1,400 business leaders from around the country indicates that about 30 percent of them are using tablets, more than triple that of 2011. This changing face of technology creates great opportunities for Alaska’s 275 IT service providers, as well as the businesses that need their support.

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What Makes Good IT?

To determine whether or not certain technology is appropriate for a business, it’s important to evaluate it along four dimensions: 1. Does this technology support the purpose of the business? It’s very easy to buy technology on the illusion of what technology can do for a business, and stumble on its actual usage. When evaluating whether or not technology is right for your business, ask whether it does one of three things: generate more revenue, reduce costs (especially in labor), or improve quality. If the technology doesn’t add to the business in one of those three ways, it is not a good investment. 2. Does my technology function when I need it? The promise of technology is to make our professional lives easier, but when it’s not available, it does just the opposite. If technology is out of service or not available when it’s needed, it should be replaced. 3. Is the amount of technology appropriate for the business? It’s very easy for business owners to become enamored with technology for its own sake. The problem with too much technology is the cost and training burden associated with it. In general, technology consumes 25 percent of its original purchase price each year for maintenance, support and training. Maintaining too much technology places an undue burden on already limited time and money. 4. Can the technology we use change as the business changes? Because it’s often seen as a “cost center” or just a requirement of doing business, some executives often neglect to base a technology buying decision on whether the technology will serve the business in the long term, opting for

what’s cheapest as opposed to what will last. Cost cutting can come in the form of spending too few dollars on technology, or too little time understanding its dynamic potential. As Dan Adams, CEO of New England Network Solutions says in Mass High Tech, “Often, business owners trust their consultant, employee, or brother-in-law to make their technology decisions when they should spend more time understanding and communicating their business needs. Their needs should drive the technology decisions, not the price. “ By understanding the business, choosing enough of the right technology, and only taking on what a business can support, technology can make a real difference in the operation of the business and allow employees to spend more time where it counts: with customers or clients.

What are My Choices?

Fortunately, over 250 firms in Alaska stand ready to help Alaska businesses solve issues involving process change and technology. The alternatives range from providing support for a portion of a company’s technology needs to consulting services to select the right technology, provide custom programming, improve technological efficiency or completely outsource a company’s technology needs. One of the most straightforward and risk-free arrangements is a retainerbased or for-fee professional services relationship with a technology provider. These relationships span from an hourly fee to a per-user cost to implement, maintain and retire all of the technology a business requires. TekMate, an Anchorage-based company that specializes in helping businesses make IT a proactive resource, has helped a number of companies reduce

www.akbizmag.com • Alaska Business Monthly • June 2012

cost and improve service levels for general-purpose and specialized technology, ranging from reservation systems to logistic systems to specialized medical equipment. These cost savings and service improvements make a tangible difference in a company’s bottom line. An approach that many companies take is the use of consulting services to help them solve specific business issues. Companies like Sockeye Business Solutions provide advice, counsel and implementation to help their clients become more efficient and focused, and develop better relationships with their customers. Custom development and integration houses, like PangoMedia, provide custom design and build of software to help companies solve specific business problems. One of the hottest topics in the IT field today is the use of “The Cloud.” “The Cloud” refers to technology built and maintained by a third party and located outside of the premises of the business. Typically, cloud arrangements make it easy to purchase services, and can help a business avoid a large, up-front investment, as well as help companies avoid the cost of maintaining a staff to support technology. Cloud49, based in Anchorage is an example. Regardless of the route a business takes to improve its use of technology, it’s critical that businesses clearly define who has the responsibility to bring the technologies, the business process and the people together into a coherent whole. Companies can potentially provide these services themselves, but often find value in bringing in experts who have significant past experience in bringing diverse technologies together. Some companies align with particular vendors or act as representatives for those vendors. For example, World Wide Technology prominently displays their relationship with Cisco on their website and in their promotional materials. Others, like Anchorage-based Network Business Systems are more understated in their relationships with technology providers. Finally, companies like Anchorage-based firms Design-PT and Resource Data Inc. provide integration services that are less vendor-centric, but still have vendor technologies in which they specialize. To select a viable integrator relationship, in addition to considering their

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www.akbizmag.com • Alaska Business Monthly • June 2012

53 ■

relevant past performance, it is also pertinent to ask the following questions: ■ Does the firm I am considering bring more structure if we need it, or use a similar project management structure to the one I use day to day? ■ Does the firm value our business relationship and share our objectives for the outcome of the project? ■ Does the company have a standard practice to establish solid project objectives with strict, measurable goals for the effort, and measure success by progress towards our business goal? It is important that the client and integrator have similar business values in order to create and maintain a relationship that benefits both.

What Kind of Technology Should I Use?

Although there is no “one size fits all” solution to a company’s technology needs, there are some technologies gaining popularity with Alaska’s business-savvy companies: ■ High speed wireless networking: More and more Alaska companies are outfitting their employees with mobile

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hot spots to improve productivity and reduce cycles, especially when selling or providing services to customers. ■ Bring your own devices: Ultra-portable computers, tablet computers and incredibly capable smartphones provide access to company data everywhere. Even better is the fact that employees often purchase them on their own. For ideas on how to establish a sound security policy for people who bring their own devices, there are several good guides available on line, including a policy template at telesoft.com. ■ Mobile Commerce: The long-anticipated age of mobile commerce is finally upon us. Great solutions exist to take credit and debit cards while on the go from Intuit (GoPayment) or Square. Many of these solutions integrate with point of sale systems or inventory systems, making bookkeeping and financial management easier than ever. ■ Know More About Your Business: Coming on the heels of the “bring your own device” is a trend toward making more business information available on tablets. One of the best available on the iPad and iPhone is

Roambi. This advanced business intelligence/data visualization software is easy to configure, has a version in the cloud, and has great customer support. Because of its ease of use, it allows even the most technophobic business veteran to access business performance information. With the cost of smartphones, tablets and ultrathin notebooks decreasing every day, as well as the increasing availability of low-cost services in the cloud, now is a great time to refresh any business technology infrastructure. If improved insight, improved performance and a simplified business environment is attractive, now is a great time to take a bold step into the future of IT, and bring yours up to speed. 

www.akbizmag.com • Alaska Business Monthly • June 2012

Russell Girten is Vice President Information Technology for Alaska Communications.

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HEALTH & MEDICINE

WISEWOMAN Wins Outstanding Rural Health Award

or its work improving the heart health of women in its region, the SouthEast Alaska Regional Health Consortium(SEARHC) WISEWOMAN Program received the Alaska Rural Health Award for Outstanding Rural Health Program during an April 25 luncheon at the Alaska Rural Health Conference in Anchorage. The Outstanding Rural Health Program award “recognizes a community, regional or statewide program involving one or more health professionals or entities that promotes or facilitates the development of rural health delivery systems,” according to the Alaska Rural Health Conference Steering Committee, which presents the awards. “Factors considered include coordination of services, networking, collaboration, innovation in development and implementation and lasting impact of the program on populations served.” The committee is made up of representatives from the sponsors of the biennial conference: Alaska Center for Rural Health; Alaska Department of Health and Social Services, DPH/HPSD; Alaska eHealth Network; Alaska Mental Health Trust Authority; Alaska Native Health Board; Alaska Native Tribal Health Consortium; Alaska Primary Care Association; Alaska State Hospital and Nursing Home Association; the Denali Commission; and the University of Alaska, Health Programs Development. “The SEARHC WISEWOMAN Program is grateful to be recognized by the Alaska Rural Health Conference as an Outstanding Rural Health Program,” said Litia Garrison, SEARHC Women’s Health Program Manager, upon accepting the award. “Since 2000, our WISEWOMAN Program has helped women ■ 56

SEARHC’s program for women’s health is one to model

Roberta Sue (Taa.soo) Kitka, a SEARHC WISEWOMAN Program participant. Roberta is Kaagwaantan (eagle/wolf clan) of the Box house in Sitka.

learn more about preventing heart disease and stroke, as well as supporting them to eat healthier, be more active and quit using tobacco. This award reflects the dedicated staff efforts, local partnerships and organizational support from SEARHC that led to the WISEWOMAN Program’s successes. We accept this award in honor of the many women of Southeast Alaska who have made positive, heart-healthy changes in their lives, improving their

health along with the health of their families and communities.” Marilyn Kasmar, APCA executive director, praised SEARHC for winning the award. “SEARHC has long been a member of the Alaska Primary Care Association, and the APCA has been proud to support SEARHC’s efforts in improving access to primary care to beneficiaries and non-beneficiaries in the communities SEARHC serves,” Kasmar said. “We are

www.akbizmag.com • Alaska Business Monthly • June 2012

very pleased to hear about this award as SEARHC’s demonstrated commitment to improving the health outcomes of the people of Southeast is legend.”

Reaching Out to Women

The SEARHC WISEWOMAN Program, or Yaa Kudzigéiyi Shaawát, is one of 21 WISEWOMAN (Well-Integrated Screening and Evaluation for Women Across the Nation) programs around the country sponsored by the U.S. Centers for Disease Control and Prevention. Through these 21 programs (two of which are in Alaska), WISEWOMAN provides screening for heart disease and stroke risk factors and lifestyle interventions for many low-income, uninsured, or under-insured women. The SEARHC program begins reaching out to women starting at age 30, and works with local and statewide partners to serve Alaska Native/American Indian and non-Native women in 16 Southeast Alaska communities. The program reaches out to women in Haines, Klukwan, Juneau, Douglas, Sitka, Kake, Angoon, Hoonah, Pelican, Yakutat, Klawock, Craig, Thorne Bay, Hydaburg, Kasaan, and Wrangell, with staff at four

SEARHC clinic locations: Haines, Juneau, Sitka and Klawock. Women in other communities are served by WISEWOMAN staff or other SEARHC staff, or by phone. “WISEWOMAN Women’s Health Program staff work to support comprehensive, value-added women’s health care services, even though the grant programs only cover the cost of certain annual health screening services and follow up,” Garrison says. “This is especially important for women who have inadequate or no resources for these preventive care services. During certain times of the year, staff travel out to SEARHC clinic communities to provide face to face, individualized healthy lifestyle counseling. They also work to follow up with women who have outstanding health care needs, particularly those with abnormal screening results.” The program provides screening for blood pressure, glucose, cholesterol and other lipids testing, as well as the opportunity to receive individualized healthy lifestyle counseling. The SEARHC WISEWOMAN Women’s Health Program also provides support for breast and cervical cancer screening as part of a comprehen-

sive approach to women’s health. More information about the SEARHC WISEWOMAN Program is available online at searhc.org/womenshealth. One participant described the WISEWOMAN program as a “lighthouse” or “beacon of health” that helps her stay on track with her health goals while she also balances the family, work and community roles that are her priorities.

Partnerships and Leadership Support

Local partnerships have contributed to WISEWOMAN’s success. For example, the SEARHC WISEWOMAN Program has entered into a unique partnership with the State of Alaska’s Breast and Cervical Health Check (BCHC) Program, Alaska Island Community Services Clinic, and Wrangell Medical Center, to provide cardiovascular screening services and healthy lifestyle support to women in Wrangell who access their women’s health screening services via BCHC. This has expanded the program’s depth and breadth. The SEARHC WISEWOMAN Program also regularly partners with community organizations to provide health events such as community “walks” for

www.akbizmag.com • Alaska Business Monthly • June 2012

57 ■

heart health; workshops on safe canning and food preservation, healthy eating; and community garden efforts, among others. Leadership support is another important factor in making the program a success. SEARHC leadership has provided ongoing support for the WISEWOMAN Program’s activities, including support for collecting the required CDC program evaluation data, and inclusion of primary prevention, screening and early detection goals in the SEARHC Strategic Plan. Garrison says that without SEARHC’s organizational support, the program would not have been able to start and continuously improve the work they do, including the development of recognized innovations that have been used to expand the program’s activities and reach.

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In 2007, SEARHC was awarded a grant from the U.S. Department of Health and Human Services, Health Resources and Services Administration, Maternal and Child Health Bureau to develop, implement and evaluate an innovative intervention called “WISE At Every Size (WAES).” Designed to be delivered within the framework of the WISEWOMAN Program, the overall purpose of SEARHC’s WISE at Every Size was to provide support to women to maintain a healthy weight, increase fitness and reduce other risks of chronic disease. Health At Every Size and Motivational Interviewing approaches were the foundation for this intervention project. WAES developed a curriculum of classes and gatherings that focused on improving fitness, nutrition, social support, self-esteem and body image. A WAES Instructor network, comprised of SEARHC staff and other community partners, was trained to deliver the WAES curriculum via an innovative distance learning vehicle: a video conferencing network that links the isolated communities of Southeast Alaska. More than 200 “WISEWOMEN” took part in the WAES intervention over the three years that the program was funded externally. WAES classes continue today in a number of SEARHC communities. These innovative implementation methods have worked. Preliminary

www.akbizmag.com • Alaska Business Monthly • June 2012

evaluation data from the WAES intervention have shown improvements in fitness measures, blood pressure and HDL (“good” cholesterol). In 2009, the Indian Health Service recognized the SEARHC WAES Program as a Diabetes Best Practice Program. As for the number of women the program serves, since July 2008, SEARHC WISEWOMAN has provided or facilitated over 3,500 WISEWOMAN CVD screenings to women in the region. Lasting impacts on the population served show the program is working. The most recent look at heart disease risk factor changes over time (2008) showed improvements in HDL (good cholesterol) and blood pressure, as well as improvements in reported physical activity and nutrition measures. Garrison says they will look at this type of broad evaluation data again in the coming year.

Modeling the Program

Garrison shared some of the ways other health care providers in both rural and urban Alaska can model this awardwinning program. ■ Integrating a patient-centered, healthy lifestyle counseling, clinic-based support system. ■ Using patient education techniques that “meet the woman where she is,” and encouraging small, step-wise changes in healthy behaviors. ■ Acting as a non-judgmental resource for women as their needs and readiness change over time ■ Recognizing your hard-working, family-centered women as “WISE” women and health “champions” in their homes and communities.

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As for the most significant aspect of the program, Garrison had this to say: “Heart disease and stroke together are the number one killer of women in Alaska and nationwide. Preventing heart disease and other chronic diseases such as cancer and diabetes requires innovative thinking at many different levels. Increasing awareness of heart disease and providing and facilitating a framework of support for leading healthy lives is WISEWOMAN’s hallmark.”  CM

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ALASKA THIS MONTH Compiled By Nancy Pounds

DINING

Photo courtesy of Simon and Seafort’s Saloon & Grill

Anchorage Eateries Offer Views

Diners at Simon and Seafort’s Saloon & Grill enjoy year-round Cook Inlet views.

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Be a Sponsor - $30 feeds a child one meal every day for one month. Volunteer - Help make and deliver breakfast, lunch or snacks to community programs. Donate - Non-perishable food items such as canned goods. Visit - Website for more info. Phone: (907) 297-5625 facebook: The Children’s Lunchbox www.thechildrenslunchbox.org The funding and success of this program is due to the generosity of corporations, organizations and MANY private donations! ■ 60

iners choosing restaurants for the ambiance and setting will find a pleasing array of choices on the Visit Anchorage website, which features a list of “Eight Spots in Anchorage to Dine with a View.” June’s long daylight hours extend the viewing season for these locales and many others. Simon & Seafort’s Saloon & Grill, located above the Tony Knowles Coastal Trail on L Street, opened in 1978 and seats about 300 people, according to its General Manager Robert Kilby. “We might have the best view in Anchorage,” Kilby says. “You can see the Alaska Range and Sleeping Lady. Also we have fantastic sunsets.” Snow Goose Restaurant and Brewery is another eatery on the list. The two-story restaurant is popular for its two outdoor decks, which overlook Cook Inlet and provide views of Mount McKinley on clear days. Inside, the street-level restaurant offers tall windows for viewing and can seat 110 people. The upstairs pub can seat about 100. Other restaurants that made the list are Seven Glaciers at Alyeska Ski Resort, the Fancy Moose Lounge at the Millennium Anchorage Hotel, Marx Brothers Café, The Crow’s Nest at the Hotel Captain Cook, and the Slippery Salmon Bar & Grill at the Ramada Anchorage Downtown. anchorage.net 

www.akbizmag.com • Alaska Business Monthly • June 2012

ALASKA THIS MONTH Compiled By Nancy Pounds

ENTERTAINMENT

Photos by Roy Neese/Visit Anchorage

Music in the Park

Performers’ melodies enliven downtown Anchorage each summer during weekday sessions of Music in the Park.

ree music strikes a chord with Alaskans on long summer days. This year’s Music in the Park at Peratrovich Park, Fourth Avenue and E Street in Anchorage, features various military bands, folk groups and other local musicians. The Anchorage Downtown Partnership coordinates the longtime summer event. Music in the Park is Tuesday through Friday throughout the summer from noon to 1 p.m. Performers on the outdoor stage fill the downtown corner with melodies amid savory scents from reindeer-sausage cart vendors while locals and visitors stroll by. “You can’t beat sunshine, live music and reindeer sausage,” says Cheri Spink, Anchorage Downtown Partnership’s events and development director. Groups perform Music for Little Ones each Tuesday from June 5 to Aug. 7, said Ruth Quinlan, Anchorage Downtown Partnership office manager. Two U.S. Air Force groups, Alaska Brass and Top Cover, will alternate Wednesday performances. Thursday and Friday concerts feature groups playing family friendly tunes and include area favorites such as the Button Box Gang, an accordion group. “It’s a good reason to sit outside in the sunshine,” Quinlan says. “People enjoy that it’s all local music.” Music in the Park began at least 25 years ago, Spink says. The Alaska State Council on the Arts was a previous event coordinator. anchoragedowntown.org 

wants your event to get noticed! Let us help get the word out by going to www.akbizmag.com and adding your special date to our event calendar.

www.akbizmag.com • Alaska Business Monthly • June 2012

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ALASKA THIS MONTH Compiled By Nancy Pounds

TRAVEL

Photo courtesy of the Downtown Association of Fairbanks

Fairbanks Celebrates Summer Solstice

SUMMER SOLSTICE Solstice is special in every community in Alaska. All are welcome to share the fun, and enjoy some unique events to celebrate! • Palmer - 6/13-14, 16-17, 7th Alaska Summer Solstice Flyball Tourneys. Alaska State Fairgrounds. flyballdogs.com/alaska/ • Sutton - 6/15 -17, Granite Creek Music Festival, E. Glenn Hwy bonniharter@gmail.com or charlieoverby@hotmail.com • Fairbanks - 6/20, Summer Folk Festival, downtown Fairbanks. http://downtownfairbanks.com/events/midnight-sun-festival/ 6/16, Yukon 800 Boat Race, Pike’s Landing start - 800 mile race on Chena,Tanana, Yukon Rivers. explorefairbanks.com/ events/detail/3806/yukon-800-boat-race • Valdez - 6/10-16, 20th Annual Last Frontier Theatre Conference Prince William Sound Community College. theatreconference.org/ • Moose Pass - 6/19 - 20, Alaska Summer Solstice Festival moosepass.net/solstice.html • Seldovia - 6/21 - 24, Summer Solstice & Music Festival seldarts@gmail.com Susan Mumma (907) 234-7614 • Juneau - 6/16 - 24, Admiralty Island Sailing Rally seasailing.usus/?q=node/186 6/23 - 24, Gold Rush Days. Savikko Park. traveljuneau.com/events/ • Haines- 6/16, 20th Kluane Chilkat Int’l Bike Relay info@kcibr.org

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The annual Midnight Sun Festival in Fairbanks draws revelers downtown for its noon to midnight entertainment to celebrate the summer solstice.

laskans at this year’s Midnight Sun Festival in Fairbanks are sure to be lively after weathering spells of forty-below temperatures last winter. The festival, set for Sunday, June 24, runs from noon to midnight in downtown Fairbanks. The Downtown Association of Fairbanks coordinates the event, which marks its 31st year. “The event is a community celebration surrounding the longest day of the year and the return of the sun,” says Kara Nash, events and marketing director for the Downtown Association of Fairbanks. “It is important to celebrate what makes Fairbanks so unique, and with 24-hour sunlight, it’s hard not to have a party.” Organizers close four streets to vehicle traffic, and the area is transformed into a street fair featuring music, food and activities. According to Nash, the event began as a summer solstice furniture sale and expanded in later years as other businesses touted coinciding sidewalk sales. It later added vendors and activities. Today, the Midnight Sun Festival features more than 190 booths and three stages with 33 live performances. Activities include gold-panning, skateboarding at the skate park, sidewalk chalk art, pony rides, extreme car racing and carnival rides. The Fairbanks Children’s Museum will handle part of the festival and offer a recyclable project with children, Nash says. Also, organizers will offer trash recycling for the first time at the festival. downtownfairbanks.com 

www.akbizmag.com • Alaska Business Monthly • June 2012

EVENTS CALENDAR AnchorAge 8-17 Downtown Soup Kitchen Slam’n Salm’n Fishing Derby Do a little good while fishing and support the Downtown Soup Kitchen. Prizes are awarded to derby winners. In Anchorage near the mouth of Ship Creek, 6 a.m. to 11 p.m. shipcreeksalmonderby.com 9 Potter Marsh Discovery Day Visit some of Alaska’s wildlife at one of Anchorage’s most popular wildlife viewing area. Activities include nature-related games and prizes, birding stations along the boardwalk, educational animals from the Alaska Zoo, and the release of a rehabilitated bald eagle. Potter Marsh, 11 a.m. to 4 p.m. anchorage.net 9-10 Three Barons Renaissance Fair Let the machinations of the Three Barons delight and entertain you at this weekend fair. Food and drink are readily available among locally made arts and craft, and entertainment is never too far off. Tozier Track off of Tudor, noon to 8 p.m. 3barons.org 16-17 Garden Fair & Garden Art Show Be inspired by both natural flora and artistic interpretation in this two day event. Alaska Botanical Garden, 11 a.m. alaskabg.org 23 Downtown Summer Solstice Festival and Hero Games The Hero Games are a day-long friendly competition between the police, troopers, each military branch and the fire department, and they include an obstacle course, a “rescue the cat” climb, litter carry, the bucket brigade and tricycle races. Anchorage Town Square. anchoragedowntown.org 23 Mayor’s Marathon and Half Marathon Join runners and walkers from throughout the world for these annual races. For those who don’t want to do the long distances, two other events are offered: a recreational five-miler and 1.6mile Youth Cup. Marathon starts at Bartlett High School, 8 a.m. mayorsmarathon.com

FAirbAnks 20 107th Midnight Sun Baseball Game On the longest day of the year, the Alaska Goldpanners play without any artificial light. Growden Memorial park, 10 p.m. goldpanners.com 22-24 Midnight Sun Cruise-In & Car Show Classic cars and plenty of light set the stage for the three-day event. On the 23rd, the Midnight Sun Car Show is held at the Wedgewood Resort, which includes nightly family activities, free hayrides, an antique steam car demonstration, and 100 year old electric car. fountainheadmuseum.com

hAines 11 Blue Highway Concert Founded in 1994, Grammy nominated Blue Highway is among the most influential groups in contemporary bluegrass. They have nine albums, and have topped the Bluegrass Unlimited radio charts. Chilkat Center for the Arts, 7 p.m. chilkatcenter.org

homer 8-12 Kachemak Bay Writers’ Conference The conference’s keynote speaker is Barry Lopez, author of Arctic Dreams, a National Book Award Winner and includes an opening keynote dinner, workshops, manuscript reviews, consultations, and free evening readings. Land’s End Resort. writersconference.homer.alaska.edu

9 Farmers’ Market The 9 th is the opening of the summer-season Farmers’ Market, which runs every Saturday until September. Enjoy meeting and supporting local farmers, artisans, artists, bakers, cooks, fishermen, and ranchers. Ocean Drive, 10 a.m. to 3 p.m. homerfarmersmarket.org

JuneAu 9 Juneau Symphony Summer Pops Concert The Juneau Symphony and the Thunder Mountain Big Band meet in a concert featuring the music of American jazz icon Duke Ellington. Juneau Douglas High School, 8 p.m. juneausymphony.org

ninilchik 22-24 The Great Alaska Horse Expo Helping to enhance the horse industry in Alaska, this event features demonstrations, seminars, and national and local clinicians. Kenai Peninsula State Fairgrounds. greatalaskahorseexpo.com

nome 23 Midnight Sun Parade The parade begins at the State Building on Front Street at 11 a.m. visitnomealaska.com

sewArd 8 World Oceans Day Join a special evening to celebrate our oceans and support the Alaska SeaLife Center. The evening will consist of an exhibit opening, mural dedication, sustainable seafood sampling, conservation project presentation, and an art auction. Alaska Sea Life Center, 6:30 p.m. alaskasealife.org

PAlmer 8-10 Colony Days Celebration This festival honors the 1935 colonists who founded the Palmer farming community. Invents include craft fairs, farmers’ markets, wagon rides, live entertainment, and a parade starting at 11 a.m. on the 9th. Downtown Palmer, 11:00 a.m. palmerchamber.org

sitkA 1-30 Sitka Summer Music Festival The festival spans the entire month of June and overflows over into July. Concerts are performed during day and evening, on boats and in forest glades, and cater to both the sophisticated and the young. Various times and locations. sitkamusicfestival.org

soldotnA 8-10 Kenai River Festival Initiated with the hope of spreading information about Alaska’s rivers and aquatic resources, this event has evolved into an all-out festival with music, food, and the Beer Garden. Soldotna Creek Park, events begin Friday, 5 p.m. www.kenaiwatershed.org

tAlkeetnA 6/3-8/29 How To Make Love Like An Alaskan... This sketch and improvisation comedy show is put on by Denali Drama. It is an ode to the absurdities of Alaskan love and romance. Sheldon Community Arts Hangar, Sunday through Wednesday, 6 p.m. denaliartscouncil.org

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OIL & GAS

Aurora Gas Holding its own in Cook Inlet

Photos courtesy of Aurora Gas LLC

By Vanessa Orr

Aurora well service Rig No. 11 drilling Three Mile Creek No. 3 on the west side of Cook Inlet.

hen Aurora Gas LLC first got its start in Cook Inlet in 1999, it was the smallest producer in the area, nestled among such giants as XTO, Unocal, Marathon, Forest Oil and ConocoPhillips—and while some smaller, lower-volume producers have since moved into the area as Aurora has steadily grown, the secret to its success remains the same. “It’s true that we’re no longer the only little guy: For quite some time, we were the smallest company in the Inlet,” says Ed Jones, president of Aurora Gas. “But I think one of the things that sets us apart, then and now, is we try to be a low-cost operator and producer. One of our biggest goals is to maintain our costs, and we’ve done a good job of it in capital, drilling and operations costs.” Aurora’s staff includes 10 people in Alaska, as well as several contractors that work full-time for the company. “We have a really good crew. Most of them have been with us a number of

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years,” Jones says. “Our people are all top-notch. They know what they’re doing.” In 2011, Aurora Gas invested about $10 million in Alaska. To date, the company has invested approximately $100 million in the state. Aurora Gas currently operates five fields on the west side of Cook Inlet between the Beluga gas field and Shirleyville, primarily focusing on shallow gas prospects in or near known oil and gas accumulations. The company is producing natural gas from 15 wells on the Kaloa, Lone Creek, Moquawkie, Th ree Mile Creek and Nicolai Creek gas fields, averaging 2 billion cubic feet a year. Aurora has produced more than 24 bcf from these fields since 2001 and expects the overall remaining reserves of the five fields to be approximately 11 bcf. Last year the company drilled two development wells, though Jones says they have no plans to do any development drilling this year. “Right now, we

are in the process of acquiring 3D seismic, and we will wait on those results to get processed before we begin drilling again,” he says. “There is the potential to drill several more wells in three of the five fields we operate.” 3D seismic is currently being shot over Aurora’s leases on the west side of Cook Inlet.

A Bumpy Winding Road

While the company is making steady progress, it did have to surmount some roadblocks during its first decade. After several years of active drilling in the Inlet, the company stopped drilling for two years starting in 2006 as the result of a lawsuit brought by Enstar Natural Gas Co. after Aurora suspended gas supplies to Enstar due to uneconomic gas prices. At the time, Kaiser Francis Oil Co., which owned 95 percent of Aurora Gas, also decided that it would no longer invest money in Cook Inlet. The 2008 settlement of the lawsuit and a rise in gas prices allowed Aurora

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to begin development operation technology, though our tions again in 2008. Kaiser resources are fairly routine,” Francis also agreed to again he says. “We pretty much use invest in Cook Inlet, enabling the technologies that have the company to find new marbeen around for years,” he kets for its gas. Today, much says. “However, we’ve used of the product Aurora Gas various newer techniques produces is sold to Fairbanks to recover reserves. For exNatural Gas. ample, we’ve used 3D seisEd Jones “We have contracts with mic and more is being shot, eight different purchasers for our gas. which is relatively new in the Cook InIn addition to Fairbanks Natural Gas, let Basin. Last year, we fracked a well some of our product goes to a couple and we also fracked a well the year beof other producers to use as fuel gas fore. We are still experimenting in that for their platforms; some goes into the regard. Fracking is not a panacea or a large commercial market in Anchorage, mainly asphalt paving plants; and some is distributed to Enstar for its daily ‘spot’ market program,” Jones says. In 2010, Aurora Gas was exploring the possibility of a new storage facility at its Nicolai Creek gas field on the west side of the inlet, a project currently on hold. “We received the regulatory approvals we needed from the Alaska Oil and Gas Conservation Commission, but we don’t yet have a storage lease, so we have suspended our efforts on this project at this time,” Jones says. “Our potential customers’ interest was diverted to Cook Inlet Natural Gas Storage Alaska, the gas storage project on the Kenai Peninsula, and we are waiting to see if that fulfi lls their needs,” he adds. “The Nicolai Creek gas storage facility is still a viable project, but we don’t want to do it by ourselves without an anchor client or co-owner.”

cure-all, but it is another technology that we are trying.” For the remainder of this year, Aurora will be focusing on their existing leases, performing maintenance and some workovers, and awaiting the results of the seismic data due later this summer. “We don’t often drill in wintertime, again as a way to keep costs down, but we do expect rig work to take place in early summer of 2013,” Jones says.  Vanessa Orr is a writer living in western Pennsylvania.

Fresh Fields

As the owner of 55,000 net acres in Alaska, the company does have some sizable land to explore, including some fee interests in approximately 20,000 acres. “Much of our acreage is leased from CIRI, and about two-thirds of our fee interests are at certain depths within those leases,” Jones explains. The company did do some exploratory drilling in 2006 on the Kenai Peninsula which resulted in a dry hole, though Jones adds there is still some acreage on the Peninsula that the company is interested in exploring. As for how to reach these resources, Jones says that the company tends to lean toward more proven methods. “We work to stay current with comple

www.akbizmag.com • Alaska Business Monthly • June 2012

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OIL & GAS

SHELL POISED FOR ALASKA PROSPECTS

Plans include July through October drilling

By Zaz Hollander

oyal Dutch Shell PLC is poised to drill for oil this summer in the Arctic Ocean off Alaska after spending nearly $4 billion and waiting out more than five years of delay. Calling the Alaska Outer Continental Shelf a potential “game changer,” corporate officials say they expect the oil below the frigid sea floor to justify the time, money and ongoing legal battles. “We think Alaska’s Arctic could be home to one of the most prolific hydro■ 66

carbon basins left in North America,” Shell Alaska spokesman Curtis Smith says. “We’ve got a high degree of confidence that these are commercial leases.” Shell plans to drill as many as five exploratory wells on OCS leases in the Beaufort and Chukchi seas starting in late July and ending in late October— the extent of open-water season. The company still needs several federal permits. Shell’s leases and permits have also drawn still-unresolved lawsuits

centered on the project’s risks to wildlife and the challenge of responding to an oil spill in the remote, ice-strewn waters of the Arctic—and, of course, Shell can’t know how those leases will play out until they drill them. The U.S. Geological Survey estimates there could be as much as 23.6 billion barrels of oil in the Arctic Ocean’s OCS reserves. In the best-case scenario, that translates to Shell and other lease holders adding 1.2 million barrels of oil to the

www.akbizmag.com • Alaska Business Monthly • June 2012

Scheduled barge service between Seattle and Port MacKenzie. Starting spring 2012 A full service project logistics and transportation company

4300 B Street, Suite 407 Anchorage, AK 99503 (907) 887-4252 or (907) 306-9314 Info@PacArctic.com www.PacArctic.com

Photo courtesy of Shell Alaska

Shell’s Arctic drill rig Kulluk in Seattle, awaiting transport to the Beaufort Sea.

currently declining volume carried by the Trans-Alaska Pipeline System, Smith says. Shell drilled a dozen wells in the Beaufort and four of five wells ever drilled in the Chukchi in the 1980s and early 1990s. Seismic images from 2006-2009 “match up nicely” with earlier drilling data, Smith says—but there’s only one way to know for sure. “There’s a saying,” the Shell spokesman says, “you can really like your prospects on paper but you can’t love them until you drill them.”

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Self-Sustaining Rigs

The waters of the Arctic present a daunting place to operate. Ice covers the area much of the year. Storms carry hurricane-force winds. Migrating bowhead whales sensitive to drilling activity move through its waters. Where the Lower 48 offers roads, ports and large harbors, Alaska’s remote North Slope has only airstrips and boat ramps with few roads. In response, Shell designed its OCS projects to be self-sustaining, Smith says. Provided Shell gets clearance to drill, crews will set the rig Kulluk in the Beaufort, some 18 miles north of Point Thomson and in 130 feet of water. The Noble Discoverer will sit roughly 70 miles offshore in the Chukchi in about 140 feet of water. The 266-foot Kulluk can withstand ice up to four feet thick and 18-foot waves in non-ice conditions while drilling, and waves of up to 40 feet if disconnected for a storm, according to a federal filing. The 514-foot Noble Discoverer, built in 1966 as a log carrier, was converted to a drilling rig 10 years later. Noble Drilling and Shell spent more than $175 million readying the Discoverer for Arctic operations, adding sponsons to strengthen the hull against ice and upgrading the exhaust system to comply with air standards for Arctic operators, according to Smith. The rig accommodates up to 140 people. Both rigs will be attended by a fleet of vessels for ice management, anchor handling, oil-spill response, refueling, resupply, drill mud/cuttings and wastewater transfer, and servicing of drill operations, according to a November 2011 Federal Register notice. Additional support vessels will be available, including an oil spill tanker stationed within 24 hours of the staging location. Shell expects the project to employ 1,200 people at land operations in Deadhorse and Barrow, and vessel staging in Dutch Harbor. The company has estimated thousands more jobs could spin off indirectly—everything from cooks and suppliers to helicopter pilots and contractors. If the leases prove commercially successful, an undersea pipeline would transport oil into TAPS. From the Beaufort wells, a line would come across at Point Thomson. Chukchi would be more complicated due to the several hundred miles between those wells and the existing pipeline system. ■ 68

Shell’s new ice management vessel, the Aiviq, built in Louisiana and now on its way to Seattle. Photo courtesy of Shell Alaska

Lessons from Macondo

The Deepwater Horizon rig disaster involving the 2010 Macondo well blowout and spill in the Gulf of Mexico prompted an industry-wide re-evaluation of spill prevention and response. The accident killed 11 men, injured 17 others and led to the release of some 5 million barrels of oil—but some observers say there are still no Arctic-specific government standards for oil-spill response. “There is nothing that is different in the regulations for the Arctic than what exists in temperate, warm, calm waters,” says Marilyn Heiman, director of the U.S. Arctic program for the Pew Environment Group in Seattle, which is not involved in the lawsuits related to Shell’s operations. “We do not have any standards for Arctic containment.” According to Smith, Shell voluntarily responded to the Macondo incident, adding a cap and containment system to its Arctic program very much like the one that finally ended the Gulf of Mexico blowout. “We don’t expect that kind of accident here, but we’re not tone deaf,” he says. The relatively shallow wells Shell plans in the Arctic present an entirely different risk profile, he says. The kind of pressure the company expects to find in the wells means the likelihood of a blowout is very low.

Too Much, Too Fast, Too Soon

Shell’s 2007-2009 exploration plan for the Arctic called for multiple wells and multiple rigs. Residents of the North Slope Borough responded with alarm. “The entire North Slope community was shocked by the initial submission of their drilling plan,” Jacob “Jake” Adams, the North Slope Borough’s chief administrative officer and a former mayor, wrote in an email. “It was too much for any of

the organizations on the North Slope to fathom what the impacts could be from a very ambitious offshore drilling plan.” Adams, a whaling captain in Barrow, says “the concern is there about how well Shell Oil will do in terms of protecting the subsistence resources and the environment.” He describes numerous community meetings about the “what-ifs” and how well Shell is prepared to respond to oil spills in broken ice. Confronted with the “too much, too fast, too soon” message from residents, Shell decided in 2007 to address North Slope stakeholder concerns in person, Smith says. Shell Alaska vice president Pete Slaiby led that effort. The company has held more than 450 meetings with stakeholders since. Those discussions led to changes in the way Shell submitted drilling plans to avoid conflict with subsistence whalers and other hunters, Adams says. Shell agreed to pull its Beaufort rig for the two-week fall whale hunt starting in late August at a cost of more than $100 million, according to Smith. A drill rig retrofit costing “tens of millions” was necessary to make sure drilling activities won’t release mud and cuttings in the path of migrating whales. Shell also agreed to partner with the North Slope Borough on a science agreement involving a pledge to pursue science that’s important to locals. Adams, who has a history of supporting oil and gas operations provided they protect subsistence lifestyles and the environment, says the community is now more comfortable with the exploration plans. “After litigation, pestering the federal government and discussions with Shell, the North Slope community feels prog-

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ress has been made to provide the best possible mitigation processes to protect our subsistence resources and the environment,” he says.

Court Challenges

Shell still needs federal approval on permits to drill from the U.S. Department of the Interior. It also needs letters of authorization and permits from the National Marine Fisheries Service for activities that might incidentally harass small numbers of Arctic marine mammals such as polar bears, seals or whales. But the company also needs to get clear of litigation that has dogged this project for years. Alaska Native groups as well as numerous environmental groups have filed legal and administrative appeals since Shell first purchased leases in 2005. In February, the Interior Department’s Bureau of Safety and Environmental Enforcement approved Shell’s oil-spill response plan for the Chukchi. The agency issued similar approval in late March for the Beaufort. That month, a half-dozen Greenpeace activists, including actress Lucy Law-

less (better known as “Xena the Warrior Princess”), boarded the Alaska-bound drilling rig Noble Discoverer before it left New Zealand. An Anchorage judge in March issued a temporary restraining order against activists who try similar operations against either drill rig. In March, the U.S. Environmental Protection Agency rejected challenges to Shell’s air quality permit for one of the drilling rigs. Last year, a successful appeal of earlier air permits centered on the nitrogen dioxide emissions in part led Shell to cancel its 2011 drilling plans. The company now has both air permits it needs for the Kulluk and Noble Discoverer, Smith says. As of late April, the government’s approvals of Shell’s Chukchi and Beaufort exploration plans have been appealed to the 9th Circuit Court of Appeals, with a decision expected before drilling is expected to start in July, said Erik Grafe, an Anchorage-based attorney with Earthjustice, which represents the appellants. The Chukchi air permit approval has been appealed to the 9th Circuit as well. In mid-April, a large coalition of national and Alaskan environmental groups as

well as Alaska Native organizations filed an appeal to the 9th Circuit challenging the federal government’s approval of Lease Sale 193, which opened the Chukchi to drilling. They cite the lack of scientific data about any dangers to bowhead whales and other Arctic species. According to Grafe, the appeal is not likely to be resolved before Shell’s planned drilling would commence. Shell contends that the court challenges won’t delay this summer’s plans. Interior Secretary Ken Salazar’s positive Record of Decision in October 2011 affirmed Lease Sale 193 and cleared the way for the Bureau of Ocean Energy Management’s ultimate conditional approval of Shell’s Chukchi Sea Exploration Plan, Smith said in an email. “We look forward to working that plan in July. We are prepared for all aspects of our plans, including our leases and our permits to be challenged in court,” he wrote. “The process that was followed to get us this far was extremely thorough, and we expect to see a positive outcome in court across the board.”  Zaz Hollander is a writer living in Palmer.

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OIL & GAS

Alyeska Pipeline Service Co. Honored By Susan Sommer

lyeska Pipeline Service Co., owner and operator of the Trans-Alaska Pipeline System, is rubbing shoulders with the likes of Starbucks, UPS and eBay since it received an award this year as one of the world’s most ethical companies. A consistent safety and environmental record, direct lines of communication between the workforce and leadership, sustainability initiatives and corporate citizenship helped Alyeska achieve this status. President Tom Barrett accepted the award, bestowed by the Ethisphere Institute, in March at the 2012 Global Ethics Summit in New York City. “The award recognizes that Alyeska has a strong ethics program, which is key to a successful business model, but programs and processes don’t matter if employees don’t follow and support them. The award really salutes the behavior of our personnel, our values and our commitment to ethical business standards,” Barrett says. Besides this latest award and the original effort of designing and building one of the world’s longest pipelines across remote lands, other milestones for Alyeska include establishing a world-class oil spill prevention and response system in Prince William Sound in 1989, reaching 1 million consecutive employee hours worked without a lost time accident in 1995, and increasing efficiency and oversight by moving the Pipeline Operations Control Center to Anchorage in 2008.

35 Years of Success

In June, the Trans-Alaska Pipeline System celebrates its 35th year of moving crude oil from Alaska’s North ■ 70

Slope to the ice-free port of Valdez, where tankers load the product for transport to market. Alyeska is a consortium: Owners are BP Pipelines Alaska, ConocoPhillips Transportation Alaska, ExxonMobil Pipeline Co., Unocal Pipeline Co. and Koch Alaska Pipeline Co. LLC. Headquartered in Anchorage, Alyeska also maintains operations in Fairbanks, Valdez and at various pump stations along the line. Alyeska Pipeline Service Co. was created in 1970 to construct, operate and maintain TAPS. The North Slope oilfields had already shown promise as sizeable reserves, but the Middle East oil embargo in 1973 spurred the federal government to expedite domestic production in Alaska. President Richard M. Nixon signed into law the Trans-Alaska Pipeline Authorization Act, which eliminated all legal barriers to construction of the pipeline, provided financial incentives and granted a right-of-way for building it. Tens of thousands of people flocked to Alaska between 1974 and 1977 to work on the pipeline. At the time, it was the largest privately financed construction project ever attempted, and cost more than $8 billion when complete. All along the 800-mile trans-Alaska oil pipeline route, populations swelled and economies flourished. The influx of high-paid pipeline workers eager to spend money drew Alaska quickly onto the world stage and introduced all the associated political, economic, environmental and social complexities of rapid growth. Crime increased, home and rental prices shot up, local stores ran out of supplies. On the flip side, employment opportunities and wages increased and infrastructure

evolved. The pipeline became a critical part of the national energy system and its 35 years of safe operations in Alaska has transformed the state’s economy. The 48-inch-diameter pipeline crosses three mountain ranges and more than 30 major rivers and streams. It was engineered to withstand earthquakes and shifting ground due to permafrost. A service road runs the length of the line. At the Valdez Marine Terminal, huge storage tanks can hold up to 9 million barrels of oil. Tanker loading berths have special vapor-control systems in place to keep air quality at acceptable levels. In recent years, Alyeska has focused on reducing physical infrastructure and simplifying operations and maintenance to provide more flexibility for future increases or decreases in throughput. Barrett has been at the company’s helm since early last year, but his experience as a leader goes back to his first career in the U.S. Coast Guard, where he attained the number two position of vice commandant. He also has served as deputy secretary of the United States Department of Transportation as well as deputy federal coordinator for the Alaska Natural Gas Transportation Projects. He has lived in Kodiak, Juneau and Anchorage.

TAPS Affects Alaskans and the Nation

About 10 percent of the United States’ domestic crude oil comes from the North Slope via TAPS. More than 16 billion barrels of oil have moved through the pipeline since it began pumping in 1977. At peak production, in 1988, more than 2 million barrels of oil flowed every day through the system. That amount has declined to less than 600,000 bar-

www.akbizmag.com • Alaska Business Monthly • June 2012

Photo courtesy of Ethisphere

Representatives from the Alyeska Pipeline Service Company honored at the 2012 World’s Most Ethical Companies event, hosted by the Ethisphere Institute, in New York City on March 15, 2012, are shown with two Ethisphere executives. Standing, from left, Tim Erblich, Executive Vice President with Ethisphere; Mel Williams, Business Practice Officer and Employee Concern Program Manager; Susan Parkes, Chief Compliance Officer and Vice President of Law and Compliance; Tom Barrett, President; Alex Brigham, Executive Director from Ethisphere; seated, from left, Tina Suellentrop, Compliance and Quality Assurance Manager; Barbara Harmon, Compliance Program Supervisor.

rels per day now. A 2011 Alyeska study on the impact of decreased throughput identified corrosion, ice formation, wax deposition and geotechnical concerns as risks. Decreased flow means oil takes longer to transit the system and cools significantly. Safe operation of the system down to 350,000 barrels a day, however, can be achieved if these issues are addressed. Data from Parnell’s office shows exploratory well drilling is at an all-time low for Alaska; the governor and others are working to increase oil production on the North Slope and keep Alaska on the map as a top-producing state for the nation. “If TAPS is the dipstick for Alaska’s economic engine,” Barrett says, “we’re reading at below the add oil line. We need more oil in the pipeline. Alyeska and its contractors are problem solvers who are committed to safety, integrity and sustaining the pipeline for years to come. We understand TAPS is Alaska’s lifeline, still delivering nearly 90 percent of the state’s operating budget. The best way to extend the life of TAPS is to increase flow down the line.” According to the Alaska Oil and Gas Association, the petroleum industry

as a whole provides about a third of the state’s jobs directly and in support positions. In 2010, Alaska’s oil and gas industry directly employed more than 4,800 workers, most of whom were residents. Today, Alyeska Pipeline Service Co. employs about 800 people statewide, plus another 1,000 through independent contractors. More than 300 people work in oil spill prevention and response in Prince William Sound, mostly through the company’s Ship Escort/Response Vessel System. Created just weeks after the Exxon Valdez oil spill, SERVS exists to prevent, prepare for and respond to spills. Alyeska spends over $60 million annually for this effort. One of the legacies of the pipeline most prized by Alaskans today is the Permanent Fund, a long-term state investment program funded by oil revenues. Eligible applicants receive a dividend payout each fall. The amount has ranged from a low of $331.29 per person in 1984, two years after the program launched, to a high of $2,069 in 2008. Businesses take advantage of fatter wallets each year with special

Permanent Fund Dividend sales. The realization of the Trans-Alaska Pipeline System also resulted in the formation of Alaska native corporations as part of the Alaska native Claims Settlement Act, increased tourism opportunities, the elimination of state income tax, and a higher standard of living for Alaskans in general. Energy development in Alaska has long been a hotly debated issue. The annual Alaska Oil and Gas Congress held each fall brings together industry professionals, including Alyeska Pipeline Service Co., as well as government agencies, Alaska Native groups, environmental firms and business owners; the conference addresses such topics as how to approach declining throughput in TAPS, the biggest challenge Alyeska faces today. Alyeska is planning a 35-day celebration beginning this month to commemorate their 35 years of safety, corporate citizenship and their positive impact on the state and its residents.  Susan Sommer is a freelance writer and editor living in Eagle River.

www.akbizmag.com • Alaska Business Monthly • June 2012

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OIL & GAS

CRANKED UP EXPLORATION

Photo courtesy of Offshore Systems

Furie jack up rig Spartan 151 and OSV Discovery on site Kitchen Lights Unit in Cook Inlet.

Is it enough to dent decline? By Mike Bradner

xploration for oil and gas in Alaska has really cranked up, but there are questions whether the pace is enough to dent the continued decline in production from the big oil producing fields on the North Slope, or to provide enough new natural gas to offset looming shortages in Southcentral Alaska. A lot of what is prompting the new drilling is the generous set of incentives put forward by the state that pays for as much as 60 percent of the explorers’ costs, or even more. In Cook Inlet, an offshore explorer is eligible for 100 percent of well costs, and a new incentive approved by the Legislature this spring

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will pay 80 percent of well costs in unexplored Interior Alaska basins. But there are other factors at work, too. High oil prices have attracted a new crop of independents to Cook Inlet, where they hope to find deep oil deposits in rocks previously unexplored. State taxes on oil are also much lower in the Inlet compared with the North Slope. On the slope, expiring lease deadlines have provided the prime motivation for at least one company, Repsol, to get busy and drill.

What’s the Drill?

Cook Inlet is going to be a busy place this year, with more exploration drill-

ing than the inlet has seen in decades. Most of the drilling is focused in finding oil, which commands high prices. Some gas will almost surely be found too, because oil and gas are often found together. There is some exploration focused just on gas, too. Projects being watched closely in Cook Inlet include the completion and testing of an offshore test well where Furie Alaska Operating, formerly Escopeta Oil, found gas last fall with a jack-up rig; new drilling of offshore exploration wells by Buccaneer Energy with a second jack-up rig to be in the inlet in June; the drilling of wells by Buccaneer near its new onshore Kenai

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Loop gas field to test for extensions of the known deposit, which is now producing; and the first wells to be drilled by Apache Corp., a major independent company that has aquired a large group of leases in the region. One other project being watched is a reported onshore gas discovery by NordAq, an Alaska-based independent company, on the Kenai Peninsula. NordAq’s well is within the Kenai National Wildlife Refuge on a lease where the subsurface mineral rights are owned by Cook Inlet Region Inc., the Alaska Native regional corporation based in Anchorage. NordAq must fully test its discovery but is meanwhile proceeding with permits for production facilities with the U.S. Fish and Wildlife Service, which manages the Kenai refuge. What is advantageous is that the NordAq discovery is near an existing gas pipeline, which means if the find is economical to produce the gas can be brought to market fairly quickly once permits are secured and facilities are built.

Slow Winter up North

Meanwhile, the winter season on the North Slope turned out to be slower than originally expected, but there was important progress on several projects. Repsol, the Spanish company, had set out an aggressive drilling schedule last fall but experienced a setback when there was a shallow gas “blowout” on one of its wells. There were no injuries or major damage, but the indcident was a setback for the company’s plan because it meant Repsol was unable to complete that well, which was a highpriority prospect in the Colville River delta. Repsol was able to finish one other well drilled southwest of the Kuparuk River field, however. Results of that have not been announced. One promising prospect is “Mustang,” an onshore discovery by Brooks Range Petroleum, an Alaska-based company, that is west of the Kuparuk River field. Brooks Range made the discovery last year, the winter season of 2010-2011, but ran out of time with the impending spring thaw before it could test the well. Further tests were done this last winter. Reports are that they went well, and Brooks Range has been in discussions recently with the Alaska Industrial De

velopment and Export Corp., the state development corporation, on helping finance a small processing facility. Mustang is very near an existing pipeline, a great help in its development. East of Prudhoe Bay Savant Resources, a small Denver-based company, is working in partnership with Arctic Slope Energy Services, a subsidiary of Arctic Slope Regional Corp., in a redevelopment of the small Badami field. BP is still the owner of Badami (it was first developed in the 1990s) and the two small companies are investing in redevelopment in a “farm-in” arrangement, where they will own the field after investing. BP encountered problems with difficult reservoir conditions when it first drilled Badami and the field has never produced up to the company’s expectations. Savant and ASRC are redrilling some of BP’s wells with horizontal production “legs,” or extensions, employing new technologies in an effort to get more oil out of thin reservoir sections. Savant and ASRC have also drilled a new exploration well in an effort to add new reserves.

Liberty and CD-5

One development project that is on the back burner for now is BP’s plan to develop the offshore Liberty oil field, which is in federally-owned waters northeast of the Prudhoe Bay field. It is about five miles offshore. BP had plans to drill Liberty with ultra long-distance “extended reach” wells from a large drilling rig onshore. Some of the wells would be as long as eight miles drilled laterally from the surface location of the drill rig, which is at the Endicott oil field. The project has been delayed, however, so that technical problems with the drilling can be resolved. The wells would set world records for extended-reach wells. While not really an exploration project (the oil at Liberty was discovered many years ago), the successful demonstration of ultra long-reach wells by BP to produce at Liberty will enhance the exploration for many offshore prospects that are near enough to shore to reach with wells drilled from a rig on shore. Another development project that is definitely on the way, and which has implications for boosting future explo-

ration, is ConocoPhillips’ and Anadarko Petroleum’s CD-5 production pad on the west side of a channel of the Colville River and the Alpine oil field. CD-5 is an oil accumulation discovered several years ago but its development was delayed because of a dispute with the U.S. Army Corps of Engineers over a bridge across the river channel. The dispute is now resolved, and the companies are proceeding with engineering work for the new drill pad. Although it is considered a “satellite” of the Alpine field (satellites are small accumulations near large fields), CD-5 is also on federal lands within the National Petroleum Reserve–Alaska and would be the first commercial production from NPR-A. Interestingly, the subsurface mineral rights in that area are owned by Arctic Slope Regional Corp., the Alaska Native development corporation for the region, so oil and gas royalties from CD-5 would go to ASRC and also be shared with other Native corporations through revenue-sharing provisions of the Alaska Native Claims Settlement Act. What is also important about CD-5, however, is that the bridge and road infrastructure to reach the pad will lead to an extended road and pipelines being built farther west in NPR-A as other known oil and gas accumulations are developed. This will enhance further exploration in the northeast part of the federal reserve because prospects that are too small or that appear marginal because of lack of infrastructure will be more attractive to explorers.

NPR-A’s Limited Attraction

Except for the northeast part of the NPR-A that is near the Alpine field and the southeast part of the reserve near Umiat, where Linc Energy is working to develop an old oil discovery, the huge federal reserve has limited attraction for companies that are exploring, at least for now. Geologists consider much of the huge reserve to have more potential for natural gas discoveries than oil, which means that until there is a gas pipeline and a way to move gas off the slope, there will be little interest from companies. The exception to this are lands in the northeast where ConocoPhillips, Anadarko and FEX LLC have made oil and gas discoveries, and particularly

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Repsol Q-4 on the North Slope.

lands near the coast that are rated as having very good potential for oil. Unfortunately, the coastal lands are largely off-limits to the explorers because the wetlands of the region are also intensively used in summer by migratory waterfowl. National environmental groups are waging a campaign to stop any drilling around Teshepuk Lake, a particularly important habitat area near the coast. So far the campaign has been successful.

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What will really open most of the NPR-A is if Shell and other companies make commercial oil and gas discoveries in the Chukchi Sea. If an oil pipeline and quite likely a gas pipeline are built to shore and across the NPR-A, to a connection with the Trans Alaska Pipeline System and an eventual gas pipeline from the Slope, the new infrastructure will make it possible to develop medium-sized and small oil and gas prospects across the petroleum reserve.

Point Thomson

Just as CD-5 will open the door to new infrastructure in NPR-A, the natural gas “cycling” and liquids production project at Point Thomson, which is near the Arctic National Wildlife Refuge border east of Prudhoe Bay, will result in a new pipeline built to that area. Once it is there, more exploration will result. Point Thomson is a large gas and condensate (a natural gas liquid) field, and

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there are small deposits of oil nearby and the likelihood of more. Also, Shell will be exploring its Beaufort Sea leases in the Camden Bay area to the northeast of Point Thomson. Having a pipeline available will make it possible for Shell to tie in with a pipeline to shore, assuming Shell makes a commercial discovery. The Point Thomson project is due to begin production in 2016 and will produce 10,000 barrels a day of liquid condensates that will be shipped to Prudhoe Bay and TAPS. The pipeline, however, is designed to handle 70,000 barrels per day. Having a pipeline and production facilities so close to ANWR would make it simpler to develop any oil found in the coastal plain of the refuge if exploration is ever allowed. The coastal plain is part of the refuge but was kept out of the wilderness sections of ANWR because of its oil and gas potential. Congress has yet to vote to allow exploration in the coastal plain.

Testing Shale

No discussion of the North Slope is complete without mentioning Great

Bear Petroleum and its plan to examine the possibility of producing oil from deeply-buried shale formations, similar to the way companies are producing oil from shale in North Dakota and Texas. Great Bear will drill its first two test wells in late spring, 2012. At this point there are important questions to be answered before it is known whether shale oil can be commercially produced. First is a technical question: Are the North Slope shales brittle enough to be fractured so that the oil can flow? The second is an economic question: Shale oil development will require many wells, roads, pads and support facilities. The slope is a highcost environment. Can Great Bear ultimately drill the wells and build the needed production facilities at an affordable cost? These are big unknowns.

Ironic Incentives

Overall, the dilemma explorers face is that if they are lucky enough to find something, the state’s tax system is so difficult that the deposit may be uneconomic to produce. The irony is the State of Alaska is providing very generous in-

centives to explore, on the “front end” of a project, even to the point of paying for most of the drilling. But the question of whether a discovery can be profitably developed and produced is more difficult, because in some oil prices ranges—today’s for example—the state actually takes most of the profit. This has led to a situation where industry investment in new oil projects has actually dropped in Alaska despite sky-high oil prices and the state’s generous front-end incentives. In contrast, in other oil-producing states like Texas, industry investment has tripled over the last four to five years. Gov. Sean Parnell and some legislators want to do something about this, and are investigating ways to lower the tax to make Alaska more attractive for long-term industry investment. Despite Legislation’s failure to accomplish that in the 2011 and 2012 sessions, the efforts continue, but have been a difficult struggle.  Mike Bradner is publisher of the Alaska Legislative Digest.

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special section

Building Alaska

Building Community in Chefornak Constructing a new school in the village

Photos courtesy Nichelle Seely

Story & photos by Nichelle Seely

ne hundred miles west of Bethel, tucked into a meandering curve of the Kuskokwim River and surrounded by rolling tundra plains is the village of Chefornak. It’s been a hard winter. Snow drifts as tall as the houses themselves hunch on the leeward side of every structure. The new school—the bottom of which used to be at the level of my head—is now at the level of my knees. It’s a striking indication of how deep the snow is. “I’ve almost forgotten we’re in the building business,” jokes Gideon Mahoney, foreman for Ukpeagvik Inupiat Corporation Construction. “Seems like we spend half our time pushing snow around.”

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The school is the reason I’m here. The calendar says it’s early March, but ground conditions seem more like late January. The weather is cold and unpredictable. I’ve already wasted hours in the Bethel airport, waiting for a window in the blizzard to catch the flight to Chefornak. I’m the architect in charge of construction administration for Bezek Durst Seiser Architects and Planners, the firm which designed this new combined Amaqigciq Elementary/Caputnguaq High School. With me is Kate McIntyre, project manager for the Lower Kuskokwim School District. The project is a combination addition and renovation, and the first phase is finished. We’ve come to inspect the addition, slightly larger than

www.akbizmag.com • Alaska Business Monthly • June 2012

Above: Aerial view of Chefornak’s new school under construction. Below: Empty, abandoned fuel drums on one side of the Kuskokwim River near Chefornak contrast skiffs on the opposite banks.

the existing school. It contains 10 new classrooms, a new main entry, and best of all (as far as the village is concerned), a brand new full-size gymnasium.

A Building’s Destiny

It might be hard to imagine for someone who has never visited rural Alaska, but this building is destined to be the life and center of the village of Chefornak. It’s the biggest structure by far in this little town of 418 people. The long-anticipated gymnasium will be much more than a sports arena (although that’s a big deal in a community where basketball is king and almost everyone plays or cheers on the sidelines). Weddings, funerals, and cultural events will be hosted here, the one location where the whole town can be contained. There’s a pull-down screen for movies, and a retractable stage for shows. The building is as flexible and accommodating as BDS could make it, just like the people who call the far reaches of Alaska their permanent home.

Remote Construction

Construction isn’t easy in the sprawling, roadless portions of the state. Chefornak has a tiny airport with a gravel strip and

A variety of equipment is used to maneuver around the community and building site.

a barge landing barely large enough for a single vessel. Crowded around the building site are stacks and rows of shipping containers, some almost covered in drifting snow. The construction camp is a set of modified connexes stacked like Legos, with enough beds to house 32 workers, a kitchen and dining hall, and shower and laundry facilities. There’s even a common room with a pool table, and a business office where Walt Parrish, site superintendent, spends a lot of his time. “It’s been a real rough winter,” he acknowledges. “Weather’s been brutal,

and our supply line gets tied up when the planes can’t fly in. It’s been a good project, and we like the community. But I’ll still be glad when spring comes!” I slither down a snowdrift and slide under the building, remembering when I could almost stand upright among the piles that support the classroom wing. Now, I’m crouched on my knees on the snow. There’s still plenty of scour, however—room for the wind to blow underneath and mitigate the drifting. The designers at BDS know that these oversize structures mean giant drifts in the

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winter, a huge problem in communities without sophisticated snow removal equipment, at the most a blade in front of a four-wheeler. Unchecked, the drift from a school could bury a neighboring structure, and we do our best to allow the wind enough space to do its work.

The Tricky Utilidor

While I’m under here I check the utilidor, the boxed-in chase beneath the school that contains all the piping and conduit—stuff that would be underground in a more urban area. But the shifting soils that heave and crack throughout the year are inhospitable to piping, and it’s best to steer clear of the active layer completely. This building site has always been soft and unmanageable, sloping down to a tundra lake. The piles specified by BBFM, our structural consultants, are more than just support members— they’re thermo helix piles, which include a passive refrigeration system that pulls heat from the surrounding soils. Not only does this protect the permafrost, it literally freezes the ground into a solid mass beneath the building, the next best thing to bedrock. Though the summer sun will thaw the top few inches, the piles are 40 feet deep and more, clenched in an unyielding frozen vise. My inspection continues—the utilidor is a tricky thing to build, hanging as it does off the substructure. BDS designed this one using structural insulated panels (SIPs), big sandwiches of OSB and foam insulation. We knew the SIPs would be awkward to handle down here, especially in the summer knee-deep in mud, but we thought it would be easier in the long run than using conventional framing and insulation. I’m surprised and impressed by the level of craftsmanship shown in this piece of the building where hardly anyone goes. Patrick Schuerch was the carpenter—I’d seen him toiling away down here in the mud on earlier visits. Schuerch is a native Alaskan who makes his home in Wasilla, and by the evidence I see, a builder who makes his corners smooth, his joints snug and every penetration sealed tight.

Renovating the Old School

Considering the difficulties, the team fielded by UICC has done excellent work. There are a few items to put on the punch list (as there always are), things ■ 78

Chefornak children are excited for their new school to be done.

to repair and finish. Done with the underside, I take advantage of a break in the snow squall to finish walking the perimeter, checking on siding and flashing details. Kate McIntyre meets me on the north side near the old school, where UICC will begin the renovation in the spring. All the teachers and students will be moving their worldly goods into the new building—they’ll be cramped like they are now for another year, but in 2013 the old school will be renovated, joined seamlessly to the new addition, and suddenly there will be twice as much space, double the classrooms, and brand new teaching technology. Four students are walking by on the boardwalk, squabbling over a bag of candy. They see Kate and me checking the siding, and run over to talk. Friendly and laughing, they want to know all the details. Who we are, what we’re doing— two strange white women standing in the snow. They want to see the school, they want to go inside, and they’re unbelievably excited about the new gymnasium.

Going Inside

The kids scamper off, and now it’s time for us to go inside. Gideon lets us in the back door, and I see the finished gym for the first time. The space is beautiful, high and light, with exposed ductwork and translucent panels. The stage is retracted into its aperture in the wall, surrounded by a pattern of wood veneer. Gideon sidles to a control box and suddenly the room is full of music—a classical symphony pours from the speakers. The sound system works, and so do the acoustics, even without all the fabric wall panels mounted. It’s all come together so well: planning, design and skilled ex-

ecution. The foreman is laughing at our surprise, but the music is delightful, and Kate spins around in a solitary waltz. If someone had told me back in architecture school that I would be rhapsodizing over pipe chases and gymnasiums, I would have laughed in disbelief. However, projects like these are of greater use to a community like Chefornak than any building in a more urban setting. UICC is owned by Ukpeagvik Inupiat Corp., and, like other Alaska Native Corporations, hires locals when possible. The project provides an influx of cash into the village economy and some work experience for enterprising locals. The process isn’t without difficulties: The subsistence, seasonal lifestyle of the villagers isn’t a perfect match for the schedule-driven, timetablebased construction industry. It isn’t easy to convince the workers that they can’t always take a few days off to go hunting or fishing and abandon a task on the critical path. On the other hand, a fisherman can’t control when the fish are running, or when the moose are near—he has to respond to that natural cycle to feed his family. The construction job is temporary, and the animals come when they come. Communication and cooperation are invaluable parts of the economic cycle.

Multi-Year Project

The school has been many years in the making. BDS and its team started design in 2008 and construction began in 2010. It took all summer to prepare the building site: two units of teacher housing were moved to make way for the addition, fuel-contaminated soil was scraped away, and the site was graded. A new boardroad was built to route village traffic around the construction zone. UICC

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employees and locals offloaded hundreds of containers of building supplies from spring and fall barges. Designers at BDS knew that much of it would be stored for months in unheated connexes and chose materials accordingly. STG (a subcontractor to UICC) placed the foundation in early 2011, when the ground had frozen solid enough to support the machinery and the piles. However, even the best-laid plans can go awry. Despite the low temperatures, the ground was still too soft and pliable to accept the piles for the two new 20,000-gallon fuel tanks the expanded school needed. With BDS coordinating, an on-site observer from Golder Associates and structural engineers from BBFM worked quickly alongside STG to come up with another solution. The pile design was abandoned and a gravel pad and pressure-treated wooden sleepers substituted. The gravel had been left over from the site preparation, so no additional material had to be flown in. In what could have been another near-disaster, the piles purchased for the building were found to be shorter than anticipated. Once again, the BDS design team scrambled. Engineers from BBFM recalculated the loads for each pile, adjusting the embedment depth where possible. I spent days coordinating the exchange of information as the installation continued. Where we couldn’t adjust the depth to accommodate the shortfall, STG welded extensions onto the remaining piles. Working together, the design and construction team were able to utilize on-site resources and prevent a costly delay in construction or materials replacement. The project continued on schedule. The new school has taken two years to build; the renovation will take one more. It hasn’t always been easy—design documents are never perfect, and neither is the process of bidding and procurement. In addition, difficult weather and less-thanideal site conditions can play a tremendous role. Still, as I inspect the finished product and note the care and craftsmanship, adding an occasional item to the punch list, I realize this is a project that BDS, UICC and LKSD can all be proud of, a gift that will serve the community of Chefornak for decades to come.  Nichelle Seely is an architect for Bezek Durst Seiser Architects and Planners.

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special section

Building Alaska

A cabin under construction in Gustavus using lumber from second-growth timber harvested from the Tongass National Forest.

Tongass pilot project explores value-added forest products

By Dustin Solberg

his summer, a crew of carpenters is at work on a cabin in a quiet Alaska town. It’s an Alaska dream cabin, with unique hand-crafted joinery and big windows offering stupendous views. It’s also something more: This home—and the wood of which it is built—is on the leading edge of an emerging economic opportunity: second-growth restoration forestry in Southeast Alaska. “The thing about this project, it demonstrates that there are ways to utilize second-growth. The possibilities are definitely there,” says Bill Thomason, who, with his wife, Carolyn, owns a small sawmill business called Woodcuts in the town of Thorne Bay on Prince of Wales Island. The Thomasons say the story of this home began long before they hammered the first nail. It begins in the Tongass National Forest at a place

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known as Winter Harbor on Prince of Wales Island. This is where the Thomasons and their crew cut the Sitka spruce logs over the course of three summers. They hauled them to his log yard, where the logs were piled neatly before they were milled into squared-off building timbers. The Thomasons then shipped by barge the materials for this 1,000-square-foot log cabin, custombuilt for a family on a quiet road in the town of Gustavus. The Thomasons have emerged as pioneers in the second-growth industry in the Tongass, though their interest is straightforward: creating business opportunity. “We don’t see ourselves as trailblazers,” he says. “We’re just doing what we need to do.” And that has them developing a specific niche: milling specialty products from young-growth trees in areas of the Tongass National Forest that were first

logged many decades ago. In addition to custom designed cabins, their product list includes flooring, trusses, beveled siding, molding—and all manner of requests.

Where the Log Cabin Begins

The Tongass is the nation’s largest national forest and it’s home to some of the nation’s biggest trees. Like a great cathedral, these forests can inspire. The Tongass National Forest is laced with salmon streams, and these waters, incredibly, produce almost one-third of the U.S. commercial wild salmon catch. The Tongass also produces prized wood: yellow cedar, western red cedar, western hemlock, and lastly, Sitka spruce, commonly used for lumber but also a strong and lightweight material that, in the era before aluminum, was used in airplane construction. Luthiers build guitars and other stringed instruments from clear-grained panels milled

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from Sitka spruce, and these choice trees are known as musicwood. Keeping these forests and streams healthy while sustaining a local timber industry requires a balanced approach to forestry. The timber industry has had a prominent role in the development of Southeast Alaska over the last halfcentury. Logging in old-growth forests brought jobs and more people to this remote region of Alaska, but early timber practices weren’t always sound. Until the Tongass Timber Reform Act of 1990, forests were often logged right to the edge of salmon streams. In 1990, 471 million board feet of timber was harvested on the Tongass. Present harvest averages around 35 million board feet per year. Now, an increasing focus on watershed health and second-growth forest management in the Tongass is leading to a more diverse use of the forest as well as jobs for local people and better fish and wildlife habitat.

A Test of Forest Economics

The Winter Harbor project yielded more than logs for a cabin. In fact, you might say this cabin began as an afterthought. Its logs are, after all, a useful byproduct of a wildlife habitat restoration project designed to bring sunlight—the all-important ingredient for life—back to the floor of this second-growth forest. For the Tongass, Winter Harbor served as a pilot project for a future second-growth management regime. With tens of thousands of acres of secondgrowth forest in the Tongass awaiting thinning in coming decades, it prompts questions about future restoration. What will a retooled industry look like? How to get products to market? The Winter Harbor project—by generating a value-added product from a forest thinning—helps the Tongass and the industry plan for the future, says Jason Anderson, who served as Thorne Bay district ranger during the Winter Harbor project. “By no means will there be a single model that works in any one place,” he says. “It’s going to take the kind of creativity and risk-taking that the Thomasons have taken.” In this instance, this approach allowed for a unique partnership: Thomasons’ business received marketable timber, and the U.S. Forest Service was able to test forest thinning methods. A unique contracting option, known in the For

Tools of the trade.

est Service as a “stewardship contract,” was key to making the project work. It allowed the Forest Service to specify certain conditions that increased the utility of the Winter Harbor project, such as testing the efficacy of mechanical harvesting equipment. Commonly used in tree thinning operations elsewhere in North America and beyond, such equipment could be important to a future industry seeking to compete in a global second-growth market. “The exciting story in the transition is the fact that there is an opportunity to improve wildlife habitat and grow a second-growth industry,” says Keith Rush, the Nature Conservancy’s conservation forester in Alaska. “The industry will need to be retooled to accommodate this, of course. You’re not only going to retool mills, but harvesting equipment, transportation equipment and markets as well. Everything will need to be retooled for the transition to work.

Habitat Limits of Second-Growth Forest

There are differences between secondgrowth forests and the old-growth forests they replace, and these include more than the size of the trees. “The regeneration in Southeast Alaska is prolific,” Rush says. “Trees grow back naturally. No replanting is required.”

And therein lies the challenge.

“The trees grow so thick, the crowns of the trees will intersect each other and

this stops sunlight from penetrating to the forest floor,” Rush says. Several thousand trees can spring up in the space of a single acre. (That’s nearly as large as a football field, not including the end zones.) In contrast, the open mosaic of an old-growth forest may have just 100 trees in the same space. So when a forester cruises a forest with an eye for restoring it, he’s thinking like a windstorm. Why a windstorm? In the wet forests of the Tongass, unlike the more arid forests of the American West, death comes not by fire, but by wind. “Mortality happens,” Rush says. “Clumps of trees will get blown over by wind. That’s the primary agent of change in Southeast.” The return of sunlight ushers in a cascade of healthy changes in the second-growth forests of the Tongass. It warms the forest soil, where a bank of dormant seeds lies in wait. Shrubs like blueberries and an array of wildflowers spring to life once light returns, creating food for Sitka black-tailed deer. The deer, in turn, are prey for the Alexander Archipelago wolf. Harvesting deer is an important part of subsistence tradition for local families. In short, restoring sunlight to the forest floor contributes to a dynamic food web in which each member has a role.

Change is in the Air

As these even-aged stands of forest mature, their dense canopies will gradually block out sunlight. In areas where a high percentage of the forest is in young-growth stands, species such as deer will find less forage. People will need to be involved in bringing back forest habitat, and this will yield timber for market. The time to start gearing up for the transition toward logging second-growth is now, Rush says. “In a couple decades, there will be thousands of acres of stands that will be a similar age to the Winter Harbor stand. You’ve got to get things figured out before then. The project that produced the logs for this cabin helps do that,” Rush says.

Tongass in Transition

The Tongass National Forest has already begun a transition toward logging and managing young-growth for-

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Mallet for dove-tailed joinery.

ests for a range of values. The agency is paying more attention to protecting and improving vital fish and wildlife habitat, and creating jobs via a more diversified and stable economy. The second-growth forest resource is key to this transition. “There certainly are uses out there and Bill and Carolyn’s project has proven that,” Anderson says. He considers it one sector among many in the region’s future economic landscape. “It’s going to take a diverse approach. And each diverse sector may be, in fact, rather small.” Efforts to create a more diverse and sustainable local economy are supported by local residents seeking jobs and a more stable economy. “Jobs need to be dependable so that people feel like they can buy a home and raise their families here,” says The Nature Conservancy’s Prince of Wales Island field representative, Michael Kampnich, a logger-turned-commercial fisherman who raised his family on Prince of Wales Island. “We have a real opportunity here. I believe the best days of the industry may still be in front of us.”  Writer Dustin Solberg manages communications for the Alaska Field Office of The Nature Conservancy (nature.org/alaska) from Cordova, Alaska. ■ 82

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Building Alaska

special section

Cornerstone General Contractors began site work this spring for the $80 million Seawolf Sports Arena on the UAA campus in Anchorage.

The 2012 Building Forecast Alaska’s construction spending by Gene Storm ■ 84

s the summer construction season unfolds across Alaska, activity on the ground takes shape almost as predictably as the spring blossoms coaxed to life by the changing season. In what has become the industry’s annual rite of spring, “Alaska’s Construction Spending—2012 Forecast” attaches numbers to that activity on the ground, providing the big picture of where the spending will occur. This year, the overall value of construction spending “on the street” will be $7.7 billion, an increase of 3 percent over 2011. The 2012 forecast is the ninth annual edition produced for the Construction Industry Progress Fund and the Associated General Contractors of Alaska. Scott Goldsmith and Mary Killoran of the Institute of Social and Economic Research at the University of Alaska Anchorage wrote the report. Northrim Bank was the underwriter. The forecast foresees increases in construction spending both in and out of the oil and gas sector. Oil and gas spending is pegged at $3.2 billion, an increase of 1 percent over 2011. Construction in other sectors will account for $4.6 billion, up 4 percent over 2011. Construction industry wage and salary employment, according to the report, will remain at stable at 15,800. That represents a decline from the peak of 18,300 recorded in 2005.

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The report examines private and public spending by category and identifies some winners and losers in terms of the dollars that will reach the street. The largest private sector increase will be in the utility category at 29 percent, a spending level of an estimated $794 million. The caveat is that public funds support some of the projects in this category, as is the case in some health category spending, which will increase by 7 percent to $325 million. The utility category includes spending on electric power generation, transmission and distribution, telecommunications, and natural gas transmission and distribution. Work on a new gasfired power plant shared by Anchorage Municipal Light and Power and Chugach Electric contributes to the increase as do expansion and upgrade projects at utilities along the Railbelt to the south. Work on the long-anticipated Fire Island wind farm in Cook Inlet will begin this year.

Mining is another category that will experience increased spending this year, up 11 percent over last year at $340 million. Driven by high metal prices worldwide, the mining industry

“We’re pleased with the work on the books for this year.” Joe Jolley Cornerstone Vice President will spend more on exploration and development as well as upgrading existing mines. This translates to developing some smaller prospects across Alaska, from Prince of Wales Island to the Northwest Arctic. Three private sector categories remaining flat without any projected growth in 2012 include other basic industries in rural Alaska, other commercial construction, and residential building. About $10 million in con-

struction investments for facilities to support tourism, the seafood industry and timber processing is on the books for the rural basic industry category. The other commercial category, where $120 million is on the spending docket, includes the construction of retail, office, private medical, hotel and warehouse space. At $400 million, the report projects spending on residential construction as unchanged from last year. The report makes note of the stability of the Alaska housing market. The crash in housing prices and the increase in foreclosures in many parts of the country did not occur here. On the public spending side of the ledger, the differences between increases and declines in construction dollars from category to category are more pronounced. A more constrained federal budget means a decline in federally funded construction projects. Large state capital budgets in recent years have offset the decline in federal dollars.

www.akbizmag.com • Alaska Business Monthly • June 2012

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The largest spending increases this year are for airports, ports and harbors, for education projects, and on highways. Construction dollars are decreasing for national defense spending in the state, projects for the Denali Commission, and other federal activities. A 21 percent increase for a total of $375 million on spending for airports, ports and harbors comes largely as the result of grants in the state capital budget for infrastructure. Federal funding

the lion’s share of construction dollars and will experience the largest spending decline. Funding for Corps of Engineers civil projects, although primarily benefiting local communities, is also on the decline. The only segment of defense spending that will not decline in 2012 is the money directed at environmental remediation at former defense sites. Federal spending at $207 million that falls into the “other” category will expe-

“We work with architects, builders and building owners.” John Boyt, President and CEO Replacement Glass Co. for the Federal Aviation Administration’s Airport Improvement Program equals last year’s spending levels. The port projects in Anchorage and Point MacKenzie also received state grants for part of their expansion costs. Alaska Department of Commerce grants also provided funds for port and harbor projects across the state. At $408 million, a 15 percent increase, education spending benefits largely because of the flow of dollars from the State of Alaska. That increase is attributable to a large state education general obligation bond package passed in 2010 and more money appropriated for education from the general fund. Construction bond packages passed in local communities around the state will put more money on the street this year. As with the education construction budgets, funding for highways and roads will increase due largely to grant funding from the state through the Department of Commerce. At $585 million, highway spending will be up 10 percent over last year. While the federal government remains the largest contributor of highway construction dollars, the funding level is the same this year as last. In coming years, however, construction dollars from the federal Highway Trust Fund could decline as the fund takes in less revenue from the federal fuel tax. Construction allocations for projects related to national defense in Alaska will be $460 million in this year, a decline of 17 percent. Military bases in Anchorage and Fairbanks account for ■ 86

rience a 27 percent decline from 2011, due in large part to budgetary restraints. In addition, most of the funds that came to the state through the American Recovery and Reinvestment Act were spent in prior budgets. The reduction in federal dollars available for projects cuts across segments including grants available to Alaska tribes, non-profit organizations and local governments. Federal agencies and departments doing business in Alaska will also spend fewer construction dollars this year. The largest cut will fall on the Denali Commission, a federal-state partnership created by Congress in 1998 to channel federal dollars to rural infrastructure projects. With a budget of $20 million, the Denali Commission will experience a 67 percent cut from last year.

A more focused view

While the 2012 forecast provides an overview of construction spending in the state, a more focused view reveals what that spending means for two vastly different Alaska businesses. Cornerstone General Contractors, Inc. has evolved as a major force in construction contracting since its founding in Alaska in 1993. At the small business level, Replacement Glass Company, established in 1970, feeds in part on the construction spending on the street. Over the years, Anchorage based Cornerstone has completed some notable projects, primarily in Southcentral Alaska. Two of the projects are part of the University of Alaska Anchorage campus. The UAA ConocoPhillips In-

tegrated Science Building and the UAA Health Sciences Building are included in the Cornerstone portfolio. Also part of the firm’s resume are the South Peninsula Hospital renovation and expansion in Homer, the Alaska Vocational Technical Institute project in Seward, and barracks construction at Joint Base Elmendorf Richardson in Anchorage. Joe Jolley, a Cornerstone vice president, in a display of cautious optimism says, “We’re pleased with the work on the books for this year.” It includes a $20 million partial remodel and hazardous materials abatement at the Boney Courthouse in downtown Anchorage, the construction of a new 196,000 square foot Seawolf Sports Arena on the UAA campus valued at $80 million, and renovation of the Anchorage School District’s Service High School. The building, originally constructed in 1971, will be remodeled with the proceeds of a $9.1 million school bond and a $21 million state grant. A new Kodiak library valued at $9 million is also on Cornerstone’s 2012 schedule. While the scope of project work does not amount to millions of dollars for the established Replacement Glass Co., the spending that flows into the construction pipeline is no less important. John Boyt, the company’s president and chief executive officer, describes his business as being 60 percent commercial work and the rest residential. The commercial work falls into service and new installations. “We work with architects, builders and building owners,” Boyt says, noting that they have completed projects and delivered product to communities across the state. Recent projects include work on a Carrs grocery store in Palmer and a new retail building in south Anchorage. For a small business like Boyt’s, or a larger player like Cornerstone, the uptick in construction spending in the 2012 forecast is good news. It means more money on the street where they do business, meeting payrolls and purchasing and selling goods and services while participating in Alaska’s construction industry.  Gene Storm, a writer living in Anchorage, has covered Alaska business 41 years.

www.akbizmag.com • Alaska Business Monthly • June 2012

special section

Building Alaska

Linking Transportation to Resources BARROW

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Communities and Place Names

STATE OF ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES NORTHERN REGION

Existing Roads

Sources: Communities: DNR Existing Roads: ADOT Quad Maps: alaskamapped.org

Manley to Tanana Road

Coordinate System: NAD 1983 Alaska Albers P:\Projects\D60060\GIS\ENG\Manley to Tanana.mxd

Jan 18, 2012

4:13:39 PM

WESTERN ALASKA ACCESS PLANNING STUDY

PROPOSED MANLEY TO TANANA ROAD DATE: January 18, 2012

Figure 1

User: charrington

Building new infrastructure for mining

By Julie Stricker

aps of Alaska are defined in large part by what they lack: lines. Aside from a single track bisecting the state from the North Slope to Anchorage and a handful of spokes to the east and south, Alaska is notable for its dearth of roads and railroads. In the next 10 years, however, that picture is likely to change. The state is spending millions of dollars to develop railroad extensions and all-season roads that would provide access to the state’s rich natural resources, which are now effectively stranded without heavyhaul transportation corridors. Communities along the way also would benefit from improved infrastructure, such as lower fuel bills and energy costs, and more job opportunities, according to Randall Ruaro, deputy chief of staff for Gov. Sean Parnell.

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Resource development is key to Parnell’s plans to boost the state’s economy. In the past decade, the value of Alaska’s minerals has risen sharply, topping out at $3.55 billion in 2011. “Go anywhere in the state, mining is happening,” said Dave Szumigala of Kinross Fort Knox during a workshop at the Arctic International Mining Symposium in Fairbanks in March. Just how rich are these resources? Studies undertaken by the University of Alaska Fairbanks in the past decade have resulted in a database of more than 7,200 mineral deposits, with thousands more just across the border in Canada’s Yukon. Dr. Paul Metz, a professor in the geological engineering department at UAF, says the mineral value along the proposed transportation corridors have “conservative estimates in the hundreds

of billions of dollars.” These deposits include natural gas in the National Petroleum Reserve-Alaska, copper in the Ambler district, limestone near Livengood, and gold and rare earth metals north of the Yukon River. Easy, reliable bulk transportation is a major part of turning prospects into working mines.

Road, Rail and Port Connections

The largest of these projects would link world-class mineral deposits with Alaska’s existing road and rail systems to port facilities in Anchorage, Port MacKenzie and potentially Nome and Kotzebue. The Port of Anchorage is in the midst of a major upgrade and expansion that will add two barge berths and two ship berths. The 50-year-old port has been called the single most important piece

www.akbizmag.com • Alaska Business Monthly • June 2012

Map courtesy of SOA DOT&PF Northern Region

! !

of infrastructure in Alaska. Ninety percent of all the merchandise, gasoline, heating oil and other supplies for the state comes in through the port. Although the project’s budget has ballooned to nearly $1 billion and it is several years behind schedule, Anchorage city officials are hopeful to get it back on track this summer. Across the Knik Arm, Port MacKenzie is also expanding. The deepwater dock more than doubled in size, from 6.5 acres to 14.7 acres, and is ideally situated to offload cargoes such as coal onto freighters bound for the Asian markets. A 32-mile rail extension is under construction to connect the main Alaska Railroad line with the port. It is one of several railroad extensions either under way or in the planning stages. As early as the 1880s, people have been advocating for a rail link between Alaska and the lower 48 states. Today, the Alaska Railroad has about 500 miles of track, extending from tidewater at Whittier and Seward north to the end of line in Fairbanks. The Alaska Canada Rail Link Project would add hundreds of miles of rail through Alaska, Yukon and British Columbia, providing access to billions of dollars worth of minerals and improved transportation opportunities for the region. Overall, the project will cost billions of dollars and only a few segments are being pursued at this time.

Valley Rail Extension

The most advanced segment is the 32mile rail extension from Houston to Port MacKenzie. The project is under construction and when completed will be the longest industrial rail loop in the state, according to Mat-Su Borough Public Affairs Director Patty Sullivan. “The aim is to have the most efficient bulk loading of resources from rail to shipping,” Sullivan says. The extension will link the main line of the railroad to the deepwater port at Point MacKenzie, creating a shorter route for minerals from Interior Alaska, such as Usibelli coal or Tolovana limestone, to shipping loading points. “It’s a tremendous benefit-cost ratio,” she says. “There are a thousand mineral occurrences along the railroad main line that, with this shorter link from Interior to tidewater, the economics could

improve enough to develop them into working mines.” So far, about 3 million cubic yards of dirt has been moved on the project, Sullivan said. “The place has been transformed in the past two years.” The project has received $92.5 million in funding to date, and if a funding request for $60 million goes through, the project will be about two-thirds along, Sullivan said. “We are trying to drive in that last ceremonial nail in 2015.” Although not tied directly to resource development, another major project, the Knik Arm Bridge will provide a vital link to the Point MacKenzie area and give Anchorage room to grow. The bridge will shorten the distance from the Port of Anchorage to Port MacKenzie from 83 miles to 5.2 miles. It is expected to open in 2017, although the project has been met with criticism and questions about its estimated billion-dollar price tag. “There’s very little space for industry in Anchorage,” says Shannon McCarthy, spokeswoman for the Knik Arm Bridge and Toll Authority. “I think what we’ll see is rapid expansion over at Port MacKenzie.” The Alaska Railroad is also looking at extensions to the north. The railroad is working on Phase 1 of an 80-mile extension from its terminus at Eielson Air Force Base to Delta Junction. The Northern Rail Extension will improve transportation options for the military and is one segment of the Alaska-Canada Rail Link Project. Construction of a bridge over the Tanana River near Salcha began in fall 2011. Still in the preliminary stages are plans for a 114-mile extension that would link Dunbar, 30 miles west of Fairbanks, north to the Yukon River. It would provide access to the “massive” Tolovana limestone deposit, which could provide a foundation for a cement industry in Alaska, according to Metz’s study. Total capital cost is estimated at $720 million.

Roads to Resources

Under the umbrella of “Roads to Resources,” the Alaska Department of Transportation and Public Facilities has defined four key transportation corridors leading to areas of great mineral wealth. The first of these, the Klondike Indus-

trial Use Highway in Southeast Alaska, is already in place, but upgrades are badly needed, according to Joe Buck, state Roads to Resources manager. The highway is a conduit for ore mined in the Yukon Territories and trucked to the terminal in Skagway. “Sections of pavement have reached their design life, pretty much its useful life,” Buck said. “We need to get it repaved. The Captain William Henry Moore Bridge needs to either be significantly upgraded or replaced.” Actual construction costs are “in the range” of $26 million to $32 million, depending on whether the bridge is rehabbed or replaced. The other three Roads to Resources are north of Fairbanks and would provide access to the Yukon River at Tanana, the Ambler Mining District, and petroleum deposits at Umiat in the NPR-A. The state is doing preliminary work on the road to Tanana, Buck said. The 54mile project would expand Tofty Road between Manley Hot Springs and Tanana, taking advantage of existing pioneer roads. The state is looking at upgrading about 15 miles of Tofty Road and pushing an 18-foot-wide dirt road north to a point a couple of miles upstream of the confluence of the Yukon and Tanana rivers. A full buildout of the road would cost about $69 million, Buck said, but they’re focusing on getting the pioneer road in as soon as possible at a significantly lower cost. It would stop short of the village of Tanana, which sits on the far side of the Yukon River. He said plans don’t include a bridge, but he said the state would work with the community on a ferry if the residents want one. Community input is a big part of the proposed road into the Ambler Mining District, which includes rich copper deposits at Arctic and Bornite owned by NANA Corp. and NovaCopper, a wholly owned subsidiary of NovaGold. “Ambler encompasses potentially the richest known copper-dominant polymetallic district in the world,” Rick Van Nieuwenhuyse, NovaCopper’s president and CEO, said in a news release.

Cultural Concerns

Many of the villages in the region follow a subsistence lifestyle and have kept strong ties to their traditions and cultures. Some residents are concerned

www.akbizmag.com • Alaska Business Monthly • June 2012

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that providing road access to the villages will erode those traditions. Seven potential routes to the Ambler Mining District have been outlined, including rail as well as roads. Three approach the region from the Dalton or Elliott highways, the others to the west. Some of the routes pass through culturally significant areas. “We’ve been working on a public outreach process for quite some time to work with the villages in the area,” Buck said. “We’ve been working with the borough, NANA and the villages to come up with a preferred alternative route.” The approach that looks most promising is a 220-mile link called the Brooks East Corridor, which originates on the Dalton Highway. Total construction cost for an all-season road would be about $430 million. “That’s the most direct and least expensive,” Buck said, noting that the villages will have significant input in the route that is chosen. “One of the big issues for the communities out there has to do with their culture and their way of life,” Buck said. “There’s a real concern that the roads will bring a

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lot more people into the region and it will affect their ability to hunt. These are all issues that are being looked into.”

Accessing Oilfields

In the NPR-A proposal, a road would extend from Lake Galbraith on the Dalton Highway close to 115 miles west to Umiat and provide access to the Foothills West area and its oil and gas potential. Several routes are being considered, but Buck said DOT&PF prefers the Galbraith route, while the Army Corps of Engineers is eyeing the Meltwater Route. The final cost could range from $200 million to $400 million, depending on which route is chosen. “The thing that’s really important, what it really is, is the access road for the Foothills West area,” Buck said. “We’re trying to open up as much area for oil and gas exploration.” Don’t expect to go for a road trip once the new routes are built. Buck said he expects them to be built in part with private funds or under a development consortium. Access is likely to be restricted for years, possibly decades, but Buck expects the roads to eventually open to the public.

“If they’re building a private road, they’re going to be closed for awhile,” he said. “One day the resource will play out. At that point they’re going to want to turn it over to the state because they’re not going to want to maintain it.” Buck said DOT&PF is also looking at improving the roads in former mining hotbeds such as Poorman and Ophir in the western Interior. He said small projects could help ongoing mining efforts in those areas. “A lot of the big projects that we read about in the news, those are the big dollar projects,” he said. “There’s a lot of small projects throughout the state that the Roads to Resources process might be able to help. If we can find out about those things maybe that’s an area that we can help. I call it the low-hanging fruit. If we can do some road improvements and some transportation improvements to help the industry right now, I’d love to help them.”  Julie Stricker is a writer living in Fairbanks.

www.akbizmag.com • Alaska Business Monthly • June 2012

B U S I N ES S

PR OF IL E

Sullivan’s Steakhouse

and-cut Steaks, Fresh Alaska Seafood, Remarkable Hospitality and Meticulous Execution are all things you will find at Sullivan’s Steakhouse in downtown Anchorage. A prominent figure in the Downtown Restaurant scene for over 12 years, Sullivan’s Steakhouse is one of 20 locations for this National brand and one of three concepts from Del Frisco’s Restaurant Group; Del Frisco’s Double Eagle Steakhouse and Del Frisco’s Grille complete the company portfolio. Todd Endres, General Manager, talks about what distinguishes Sullivan’s from the competition. “You can enjoy a complete evening at Sullivan’s,” says Endres. “Starting in our full-service bar with one of our famous “Knock-Out” martinis (made with hand-squeezed pineapples and Svedka clementine vodka), you can enjoy a delicious dinner in our comfortable dining room and complete the evening with your favorite dessert and listening to live music, which we offer seven nights a week.”

Fresh Alaskan Seafood

Calling Sullivan’s a “steakhouse” can also be misleading. “We spend a great deal of time on the seafood component of our menu,” says Endres. “An advantage to being in Alaska, we have access to great seafood products locally. We offer a wide range of fresh Alaskan caught wild seafood such as scallops, halibut, salmon and king crab legs.” It is not just their seafood that is purchased locally. Sullivan’s secures an abundance of their products from local vendors

Hand-cut Filet and Crab Cake

whenever possible, and takes great pride in hand-cutting their own steaks and fabricating their seafood each day. Under the direction of Executive Chef, Dennis Wingler, great attention to detail is taken in preparing a menu every day that is designed to suit all tastes. Each morning, an entire team arrives dedicated to prepping the day’s meals. “We are fortunate to have some of the best culinary talent in Anchorage. It is truly refreshing working in a place where all of sauces, soups and dressings are still house-made. Our exhibition kitchen allows the energy of the culinary staff to enter the dining area as each appetizer, side-dish and entrée is crafted to order. Finish your meal with one of our home-made desserts and your dining experience will be complete.” To ensure the daily selections are perfect for their guests, management at Sullivan’s performs quality control food testing each day at 5 p.m and tastes every item before service begins.” Sullivan’s wine list with over 350 selections is a Wine Spectator “Award of Excellence” winner and has the perfect bottle to complement your evening. It’s not just the hand-cut steaks, fresh seafood or house-made sides, salads and desserts that make Sullivan’s Steakhouse an extraordinary dining experience—it’s also the exceptional service. “At Sullivan’s, we practice swarming service,” boasts Endres.“You might have one principal server, but during the course of your dining experience you may be handled by up to five or six servers who will see to every detail and ensure that your food arrives PAID

ADVERT ISEM ENT

without delay, your water glasses are filled and your plates are promptly cleared.” Sullivan’s bar is worthy of attention and should be added to your list of “hot spots.” Full-service bar, creative bar menu and live music nightly make this a place to unwind after work, meet up with friends or enjoy the full dinner menu and a bottle of wine. Bar seating with some of the best bartenders and comfortable high-top tables can be arranged for larger groups. Do not be surprised if you see some of Alaska’s prominent figures enjoying the lively atmosphere or Hollywood actors “hobnobbing” with the locals while filming here in Alaska. With two private dining spaces available, Private Dining Coordinator, Danielle Richardson, is available to make your next dinner meeting, presentation or group celebration memorable. Sullivan’s larger private dining area is capable of seating up to 60 people and the smaller dining area can provide a more intimate setting with its 25-person seating capacity. Sullivan’s Steakhouse is celebrating summer by offering a great promotion called “Summer of 79” where two people can enjoy a fantastic three-course dining experience for $79. Located at the corner of 5th Avenue and C Street in the lower level of the 5th Avenue Mall, Sullivan’s Steakhouse offers complimentary validated parking for its guests.

For more information contact: Todd Endres, General Manager 320 West 5th Avenue (Fifth Avenue Mall) Anchorage, AK 99501 Phone: (907) 258-2882 www.sullivanssteakhouse.com sullivans.anchorage@dfrg.com

special section

Transportation

Photo by Gregg Cameron, Engineer, Akutan Airport / Courtesy of Kiewit

The Akutan Airport project on Akun island is a multi-year $54 million project with Kiewit as prime contractor.

Bigger Alaska Transportation Budget Spending tops $719 million

By Gene Storm

he Alaska Department of Transportation and Public Facilities will oversee almost $720 million in statewide transportation related construction spending in 2012. Of that total, more than $285 million is allocated for new projects that will be advertised by July 1 of this year, with another $433 million in spending on carryover projects from 2011. These were among the numbers shared with a sold out audience at the Seattle Chamber of Commerce in April at the business group’s Alaska Construction Season forum. Rob Campbell, DOT&PF’s Central Region director, told the group that transportation

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related construction in Alaska has been largely dependent upon federal program spending. “Historically, approximately 90 percent of Alaska’s surface transportation spending comes from federal programs,” Campbell said. He noted, however, that cuts in Federal Highway Administration grants could profoundly affect the dollars flowing to Alaska beginning as early as next year. A Government Accountability Office (GAO) report released last October highlights the problem alluded to by Campbell. The GAO report noted that between 2005 and 2009, states received more dollars from the federal

government than were contributed to the Highway Trust Fund by the 18.4 cents per gallon fuel tax. “Every state received more funding for highway programs than they contributed to the Highway Account of the Highway Trust Fund,” according to the report. Higher-mileage vehicles and driver’s curtailing miles driven because of more expensive fuel prices are frequently cited for the decline in tax revenue. To meet funding demands that the Highway Trust Fund once covered, Congress has authorized the expenditure of $30 billion in general tax revenue since fiscal year 2008. That general fund spending is a target for congressional budget hawks.

www.akbizmag.com • Alaska Business Monthly • June 2012

Campbell told the Seattle audience that while continuing resolutions have produced the same level of federal funding as in previous years, the State of Alaska’s increased capital budgets have resulted in spending upticks. Highway spending will see a 10 percent increase this year while airports, ports and harbor projects are allocated an additional 21 percent. To illustrate his point, Campbell noted Alaska General Fund contributions to the overall transportation program are on the increase. State general fund expenditures have increased from $84.5 million in fiscal year 2009 to more than $274 million for this fiscal year. To further highlight the state’s increasing role in transportation spending, Campbell said the Alaska Legislature is considering a Transportation Endowment Fund. Projects are administered by DOT&PF through its three regional offices: Central, Northern and Southeast, located in Anchorage, Fairbanks and Juneau respectively. Each of these regions has its own transportation priorities and challenges as illustrated by the 2012 project schedules.

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Central

The Central Region, where more than $204 million in transportation infrastructure work is scheduled this year, is subdivided into four districts serving a majority of the state’s population. Those districts encompass Anchorage, the Kenai Peninsula and Kodiak, the Matanuska-Susitna Borough, and Southwest Alaska. The region is responsible for maintaining more than 4900 lane miles of roads, more than 900 lane miles of runways, 262 bridges and 108 airports. The Central Region also maintains and operates the Whittier Tunnel, the longest highway tunnel in North America at 2.5 miles. Two projects on tap for 2012, one new and one a carryover, illustrate the diversity of work under way in the region. In Anchorage, the heavily urban Seward Highway will get a major facelift between Dowling and Tudor roads in a $39.4 million project that will increase capacity from four to six lanes. Work, which will spread over two construction seasons, also includes improvements to the frontage roads on both sides of the highway to

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www.akbizmag.com • Alaska Business Monthly • June 2012

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This is the third construction season for the Akutan Airport project on Akun island. Photo by Gregg Cameron, Engineer, Akutan Airport / Courtesy of Kiewit

include pedestrian amenities and the replacement of four bridges. Anchorage-based Quality Asphalt Paving is the prime contractor. This will be the third construction season for the Akutan Airport on the remote, far-flung island of Akun in the Aleutian archipelago. The more than $54 million project is the work of prime contractor Kiewit Building Group Alaska, which literally established a beachhead on the island to begin work in March 2010. The airport phase of the project includes construction of a 4,500-foot paved runway, a taxiway, an apron and a three-bay sand storage building. Also included in the work is a hovercraft ramp and pad linked to the airport by a 3,000foot long access road. Seven nautical miles away in the village of Akutan, the project includes construction of a ramp, pad and hovercraft maintenance building. Runway paving and the construction of hovercraft facilities and storage buildings are on this year’s schedule.

Northern

The Northern Region encompasses 65 percent of Alaska’s land area and serves 21 percent of the state’s population with more than 3,400 miles of roads, 104 airports and 390 bridges that are its responsibility. That includes maintaining more than 1,500 lane miles of aviation surfaces or runways. The region’s maintenance responsibility includes all of the surfaces that parallel the TransAlaska oil pipeline, from the North Slope to the terminus city of Valdez. During 2012, the region will oversee work on 52 projects totaling $354 million in construction costs. In downtown Fairbanks, Illinois Street will get a ma■ 94

jor makeover in a $21.9 million project that will cover two construction seasons. HC Contractors Inc. of North Pole will straighten the alignment of the street while adding wider sidewalks for pedestrian and bicycle traffic. The project also includes major storm drain system, waterline and utility duct bank system work. More than $115 million in airport construction and rehabilitation projects are on the books in the region during 2012. A majority are carryover projects from last year with two new projects beginning this season. The list includes: ■ Alakanuk Airport Relocation Stage IV, $5.4 million, Ridge Contracting Inc. ■ Deadhorse Airport Rehab, $20.9 million, Quality Asphalt Paving ■ Fairbanks International Airport Apron Improvements, $4.8 million, Exclusive Paving ■ Kotzebue Airport—Safety Area Improvements Stage 1, $14.3 million, Knik Construction ■ Kotzebue Airport—Safety Area Improvements Stage 3, $20 million to $30 million estimated ■ Manley Airport Relocation, $9.7 million, ASRC Civil Construction LLC ■ Nome Runway Rehabilitation, $1 million to $2.5 million estimated ■ Northern Region Certificated Airport Compliance—Stage 2, $2 million, Alaska Interstate Construction LLC ■ Nulato Airport Improvements, $5.9 million, Brice Inc. ■ Wiley Post/Will Rogers Memorial Airport runway and apron repaving, $25.4 million, SKW/ Eskimos Inc.

Southeast

The Southeast Region maintains 1,300 lane miles of state highway, 115 bridges, 43 harbors and 33 seaplane floats. It also operates 10 airports in the region. There are 19 projects, valued at more than $95 million, in progress or beginning this year. In a carryover project from last year, Pacific Pile & Marine is working on extending the runway safety area at the Sitka Airport. The $24.5 million project extends Runway 29 by 280 feet into Middle Channel. The work at Sitka and several other airports in Alaska is in response to an FAA mandate that runway safety areas be extended to meet published standards. On Prince of Wales Island, a $12.9 million project will rehabilitate the Klawock to Hollis highway. The work entails overlaying new surface on existing pavement, removal and replacement of asphalt in fatigued areas, rebuilding the base and repaving those areas where slope settlement or failure have occurred. The project also includes paving the ferry terminal and seaplane facility parking lot in Hollis. From Barrow on the Chukchi Sea to tiny Hollis on Prince of Wales Island and many points in between, DOT&PF construction projects in 2012 are addressing transportation priorities—be they on the road, the airport or by sea. How the funding for such projects will be met in coming years, particularly in terms of federal dollars, remains an open question.  Gene Storm, a writer living in Anchorage, has covered Alaska business 41 years.

www.akbizmag.com • Alaska Business Monthly • June 2012

ALASKA IS OUR HOME

Carlile operates across the United States and Canada but our roots are planted firmly in Alaska – and that’s why we’re strong supporters of responsible resource development. Hard work and a dedication to growing our oil and gas, mining, fishing and construction industries has been at the core of Carlile’s business model since inception, ensuring these industries are backed by a transportation company that appreciates all our great state has to offer.

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special section

Transportation

ADS-B Technologies Changing the face of aviation safety and surveillance By Ross Johnston

True Over-the-Horizon Surveillance Technology Always AVAILABLE, Always in RANGE

Aircraft sends and receives information with Ground Station

Ground Station sends individual Aircraft and FAA Traffic Control Information to Satellite and receives Aircraft position from Satellite

Globalstar Satellites

Aircraft gets traffic and other information from Satellite and sends back position

Weather and Air Traffic Control data is sent between Ground Station and FAA System

Ground Station

ADS-B Link Augmentation System (ALAS™) allows aircraft to see each other and the FAA to track them whether over land or sea, within radar range or not and even on the opposite side of a mountain

kip Nelson, the founder of ADS-B Technologies, reclines at his desk, his hands folded beneath his chin. He has that old grizzled Alaska pilot look. A gray thick mustache sits beneath his nose like those in countless pictures of Alaska Bush pilots. However, his profile belies his experience as a NASA astronaut candidate and as a US Navy Fighter Pilot. It is his Bush pilot experience, though, that has inspired his company’s pioneering work in space-based aviation surveillance and tracking. ADS-B Technologies has developed the world’s only working prototype that allows equipped planes to be ■ 96

tracked every second no matter where they are. It seems surprising that a small Alaska company will change the face of aviation safety and surveillance. But, when chatting with Nelson, the president of ADS-B Technologies, it is a natural conclusion due to the closing of a long dark chapter in Alaska’s aviation accident history. Back in the 1990s, Alaska had by far, by a factor four or five, the worst aviation accident record rate in North America. There was a major aviation accident every three days and a pilot died every nine days on average. Under Alaska Senator Stevens’ urg-

FAA System

ing, the aviation industry and the Federal Aviation Administration came together in the late 1990s and formed a group called the Aviation Coordination Council. They tried regulation and they tried safety training, but nothing worked. Nelson relates that they finally figured that there had to be a bouquet of technologies that would lower the accident rate.

Capstone & ADS-B

The council came up with a program called Capstone, and the core of Capstone was a new air traffic control technology called “Automatic Dependent

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Image courtesy of ADS-B Technologies

Aircraft let each other know exactly where they are

Surveillance Broadcast” or Nelson was vital to the creADS-B. Unlike radar, which ation of ADS-B. He flew the bounces energy off of an airfirst certified ADS-B plane plane and interprets the posiback in 2001, and was onetion on the return, in ADS-B time chairman of the Capstone the aircraft becomes an active project. He has since been inteparticipant. It gets its posigral to the deployment of ADStion from a GPS constellation, B across South Korea, China adds a lot of other data inand parts of Africa. Skip Nelson cluding the type of airplane, who it belongs to, its mission and its acGround Control in the Sky tual perceived heading out altitude air- Nelson says he decided several years speed. Then, every second it transmits ago to continue the technological develits information to the world. opment of ADS-B. He wanted to create Ground stations pick up the signal an augmentation to the ADS-B system and put it right on the surveillance screens of the control towers. This information can also be received by another airplane equipped with “ADS-B In,” and allowing airplanes to better coordinate within their shared airspace. ADS-B was deployed in most planes in Alaska back in 2003. As a result, the accident rate dropped by 57 percent almost overnight. Given its success in Alaska, the FAA made it mandatory for all aircraft in the United States by 2018. By 2020, ADS-B will be mandatory at all major airports worldwide.

that was the universal equivalent of the computer mouse, something that was patentable yet a common denominator within the ADS-B system. While ADS-B provides 100 times the surveillance of radar, Nelson set his eyes farther: He wanted to transmit the data beyond line of sight. With the current ADS-B system, if two planes are separated by a mountain and there are no ground stations to receive their transmissions, the planes are blind to each other and to ground control. ADSB Technologies came up with a way to not only transmit the ADS-B signal to a

Going Beyond Safety

The logic as to why the FAA wants to do this is apparent: ADS-B goes beyond safety. A radar tower costs $20 million to $25 million, whereas the ADS-B system will cost less than $20 million, will cover 100 times the area and provide all applicable information about an aircraft. ADS-B provides more surveillance, less expensively than radar and with a lot more data. ADS-B also increases efficiency. ADSB is good enough to decrease the physical separation between aircraft, which will get more aircraft through congested airspace. It’s a genesis of a system called Delegated Separation, a system in which an aircraft can travel just like a car on a super highway. Getting on and off the highway can be difficult sometimes, but once out there, a driver can drive 60 miles an hour a short distance behind another driver. The concept is similar with Delegated Separation—it will increase airspace efficiency to that of a highway rather than that of a city center with stop signs and traffic lights. Additionally, with ADS-B, the aviation industry saves an average of 200 gallons of jet fuel on every approach.

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ground antenna in the United States but to do it over the horizon as well. Nelson calls it ALAS, ADS-B Link Augmentation System. ADS-B Technologies partnered with Globalstar Inc. to transmit the signal to its satellite constellation. This would allow the data to send and receive without having to be received by a ground station. ADS-B Technologies used what Nelson calls “bent pipe” architecture, and turned Globalstar’s low earth orbit satellite constellation into a giant mirror. With a small augmentation to the existing ADS-B system, the signal reflects off the satellite constellation. The data is then relayed to other transceivers either on traffic control towers or other aircraft. With its system, ADS-B Technologies can give the position of an airplane in the middle of the Pacific Ocean, 50 feet off the water, in 0.4 seconds just as easily as it could give the position of an airplane in the middle of a canyon. So far, ADS-B Technologies has recorded many hours of successful flight data, mostly in Alaska, with locations such as the Matanuska Glacier, Lake Clark Pass, and the Gulf of Alaska.

Satellite Network

On Dec. 28, 2011, Globalstar launched six more satellites to its constellation from Baikonur Cosmodrome in Kazakhstan. Six additional satellites are built for launch this year and will complete the baseline next generation constellation. ADS-B Technologies should have more than 80 percent of the satellite coverage and performance necessary for a commercial introduction of space-based ADS-B by 2014, Nelson says. Besides better tracking, airplanes equipped with space-based ADS-B will no longer rely on a black box recovery system. After the crash of Air France Flight 447, it took two years to recover the black box, and the reason for the crash is still uncertain. If Air France Flight 447 had been equipped with ALAS in 2009, it would have broadcast its position, technical issues and flight recordings in real time. The reason for the crash would have been more immediate and more complete. Planes with similar deficiencies could have been immediately grounded. One key benefit ■ 98

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of ALAS is it turns “search and rescue” missions to “rescue” only. In November last year, the FAA announced its interest in providing overthe-horizon with the ADS-B implementation by 2018, the very same space-based technology ADS-B Technologies has developed. There are only two contenders for what is estimated to be an FAA award in the neighborhood of $1.1 billion sometime in the next six to 12 months.

A New Era in Remote Site Access

The Competition

The only contender besides ADS-B Technologies is Iridium, a satellite phone company headquartered in McLean, Va. Because of Iridium’s payload requirement, its concept differs from that of ADS-B Technologies. Iridium proposes to put the ADS-B radios in all 66 of their satellites as part of an FAA contract. Consequently, if Iridium is awarded the contract, the technology will be forever frozen in the sky. Once the transceivers are launched, service calls and upgrades will be next to impossible. Fifteen years of service life means that for the next 20 years, the FAA will be stuck with 2013 technology that cannot be fixed or improved. This differs substantially from the ADS-B Technologies solution that can evolve as needed because the satellites act as a mirror for the data, not as the locus of the technology. Conversely, ADS-B Technologies partner Globalstar is already adding to its constellation without an FAA grant. The company has launched 18 satellites in the last six months, with six more going up in spring 2012. ADS-B Technologies will be market-ready with ALAS by 2014. Nelson says if his company would 75 to 80 jobs in Anchorage if awarded the FAA contract. His long term goal is to make Alaska a technological hub. When people outside Alaska ask why the technology was developed and tested here, he simply responds that the conditions in Alaska are so harsh and diverse that if a technology can be proved in Alaska, it can be used anywhere. 

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Writer Ross Johnston owns a marketing company, Fine Point, in Anchorage.

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special section

Transportation

Alaska Rural Ports Update

Photo courtesy of J. Hildebrand

The Port of Nome is attracting attention as a possible site for an Arctic deep-draft port. City leaders would like to enhance the port so it can host larger vessels, such as cargo ships that travel over the pole. The causeway would need to be extended into deeper water and the breakwater, seen at the right, would need to be extended to meet the needs of larger ships, a project that city officials estimate could cost $150 million.

Investing in improvements

By Rindi White

laska has more miles of coastline than all other U.S. states combined. So it’s no surprise state and federal agencies spend millions of dollars each year investing in, improving and creating services for the boat-going public. The rural port projects slated for work this year range from the relatively small—$330,000 is planned for an Alaska Department of Transportation and Public Facilities project to install anodes on pilings in Petersburg to extend the life of the metal dock there—to projects that could change the path of maritime travel in Alaska.

Deep Draft Arctic Port

The State of Alaska and the U.S. Army Corps of Engineers-Alaska District are jointly conducting a $3 million study to determine where to locate one large-scale project: a deep draft port that will serve ■ 100

possible increases in Arctic sea travel and accommodate resource extraction. “Deep draft” is a term used to describe ports that can accommodate large vessels, such as big cargo ships. Typically it describes ports with more than 30 feet of clearance, or draft, below the water. In 2010, the U.S. Army Corps of Engineers held meetings around the state to discuss what navigational projects were needed at coastal communities throughout Alaska. Stephen Boardman, chief of the civil project management branch at the Corps’ Alaska District, says the study changed in 2011 at the request of Alaska Gov. Sean Parnell, who asked that the focus be narrowed to the need for an Arctic deep draft port. In examining the topic, Boardman says, a number of parameters needed to be agreed upon. What’s the Arctic? What is “deep”? And perhaps most important, who is going to use a deep draft port? “That’s the area we’re stumbling on right now,” Boardman says. “It’s premature for people to commit to a port. The (U.S.) Coast Guard has says on more than one occasion that they do not need

a port today. The (U.S.) Navy says we do not need a port today.” Other groups—mining industry officials, other government agencies, oil companies—either says if one is needed they would build it themselves or, perhaps, use whatever port is available, Boardman says. Large cargo shippers aren’t necessarily looking at using Arctic shipping routes yet, he says, adding that there’s no guarantee yet that the route will remain open, which makes it difficult to schedule shipments, a crucial factor for shippers. For now, the state and Corps are collecting data about potential port locations and likely users. This year, Boardman says, participants will begin going from community to community to collect more information. Eleven communities were identified as possible hosts for the port, he says. One challenge is whether the final location will have intermodal access. Can goods or materials made or mined in Alaska be shipped there by rail or truck?

Nome: A Top Contender

Nome is one of the top contenders. Mayor Denise Michels says the community

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already has a bustling harbor space and received $10 million from the Alaska Legislature this year to expand it, although that appropriation was awaiting the governor’s signature at press time. A recent surge in gold-mining interest means miners using suction dredges, machines that mine for gold under water, have flocked to Nome. The Alaska Department of Natural Resources allowed 33 dredge permits last year, Michels says, and 51 permits were issued this year. A few years ago there were only three dredges operating, she says. Dredge operators have filled up Nome’s harbor, Michels says. The city needs expansion and it needs it quickly. But Michels and the City Council are planning that expansion with an eye to the future. And the future is likely going to bring more Arctic shipping and offshore oil development, she says. “Our location is key. We’re right before the choke point—the Bering Strait—where all the traffic is going through already,” Michels says. City records show that in 1988, 30 vessels docked at Nome Harbor. Last year 304 vessels docked there. And,

with the ice cap shrinking, the city has seen more vessels using the Northwest Passage and stopping in Nome, she says. A couple years ago, four vessels stopped there on their way over the pole. Last year, seven stopped. To serve as a deep draft port, Michels says the city must extend the Nome Harbor causeway to deeper water. “We also need a breakwater for the outer causeway when we do extend it, to get those vessels in out of the weather,” she says. The city has requested $150 million from the state for a fully protected deep draft port. Other communities are vying to be Alaska’s next deep draft port but Michels says she believes Nome is the best spot for it. “We provide the short-term solution because we’re already established,” Michels says. “We see this as economic development for our nation, providing, finally, a deep draft port for Alaska and the U.S. and providing the support that is needed up here.”

Unalaska & Dutch Harbor

Unalaska Marine Center may be an even shorter-term solution, Unalaska

Let’s Keep

Mayor Shirley Marquardt says. While Nome is preparing for interest it sees on the horizon, Marquardt is fielding calls on a daily basis from oil industry and shipping officials interested in using Dutch Harbor as a staging area in the next year or two for work farther north. “We never really considered ourselves an Arctic port but we have been told now … ‘Yes, you are. The Bering Sea is part of the Arctic,’” Marquardt says. Unalaska Marine Center, the city’s bustling port, routinely hosts enormous container ships, cargo vessels and large factory fishing trawlers. More than 3,000 vessels a year visit or pass by Unalaska each year, Marquardt says. The port is already at deep draft levels and Marquardt says the city is considering dredging deeper. “We know that, with the advent of cargo being shipped over the pole, we are the only deep-water port with cargo facilities, cranes … in a huge area,” Marquardt says. “There is no question that we’re going to be a support service port for Arctic oil and drilling. We are deep draft, we are ice free year-round …” Boardman, with the Corps, says although Unalaska wasn’t initially con-

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5/2/12 4:27 PM

Photos courtesy of the City of Thorne Bay

The old Davidson Landing Harbor, prior to recent improvements (left), and the new ramp connecting Davidson Harbor users to the south side of Thorne Bay (right).

Providing Shelter in a Storm

A massive and rare collaboration between private industry, a federal agency and city government will culminate this year with the addition of an enormous mooring buoy in Dutch Harbor’s Broad Bay. Mooring buoys provide a spot for ■ 102

ailing ships to anchor to while a storm passes or repairs are made. Unalaska frequently serves as a port of refuge and has done so a number of times, but sometimes, providing refuge has endangered other port users, such as recently with the Hoegh Triton. The Triton is a 650-foot car carrier, a tall, looming ship that was recently in need of repair. A storm came up while it was docked, Marquardt says, and the mooring lines started popping off. The two tugs that regularly operate at the harbor were fighting a losing battle trying to keep the ship docked, she says. A third tugboat that happened to be available was called on, and with all three pushing for nearly a day, the ship stayed in place through the gale. The lesson, Marquardt says, was that a mooring buoy away from the dock is a better—and safer—place for a limping vessel to await repair. Unalaska received a $250,000 grant from the federal Denali Commission to design and engineer the buoy and buy some of the necessary supplies. Shell Oil officials agreed to donate three large anchors for the project. Unalaska bought 3,000 feet of chain—“each link is 110 pounds and is bigger around than your torso,” Marquardt says—which will be shipped up this year. Shell plans to deliver the anchors either in the spring or fall, she says, and the whole system will be hauled to Broad Bay for placement. Marquardt estimated the city’s cost for the project would have been about $10 million without help from Shell, Harvey Gulf International Marine and other participants. Instead, she says, “We’re getting it done for just over $300,000.”

According to Marquardt, the technical details for the project are mind boggling. “You could just put a fully-loaded battleship on it in a gale and walk away.”

Raising Hoonah’s Status

A project in Hoonah is raising the status of the city’s marine industrial center in a big way this summer. A 220-ton Marine Travelift was recently installed at Hoonah’s marine industrial center. But a key portion of the port improvement project, a wash-down pad, will be installed this year, completing a three-phase port improvement project. Hoonah harbormaster Arlen Skafles-

Photo courtesy of the City of Hoonah.

sidered “Arctic” and was therefore left out of the initial study, that opinion is being revised. “We’re going to have to consider it … because they will need a place to service vessels going north,” he says. Dutch Harbor is already home to welders and shipwrights, food and fuel suppliers and is familiar with the needs of a busy maritime industry. But the oil and gas industry has different needs than the fishing industry, which Unalaska is most familiar with. City leaders plan to hire a consultant to help them prepare for the tide that appears to be coming. “My goal is to gather as much information as possible before next fall so we have a better idea how this is going to affect our community,” Marquardt says. To do so, she has asked the city council to consider paying for her and a handful of other city representatives to visit oil-boom areas in Texas and Louisiana. City leaders requested $28 million from the state to fill in a pile-supported dock and create an upland storage area but that project wasn’t funded this year. While city leaders were looking for other ways to fund that project, they secured funding for another improvement that will be helpful whether Unalaska Marine Center is picked as Alaska’s Arctic port or not.

The Barren Islands, a 200-foot wood packer, was lifted out of the water with the City of Hoonah’s new Travelift at Hoonah Harbor last year for repairs. The community now boasts the largest Travelift in the area, a boon they hope will boost harbor use and increase city revenue.

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tad says the wash-down bay is key to wrapping up the port project. The Travelift was designed to allow local tour boats as well as other vessels to be lifted out of the water for cleaning and repairs. However, without the wash-down pad, users haven’t been flocking to use the lift. There have been a few users, he says—53 boats were lifted out of the water last year. The largest was a 200-ton wood packer called the Barren Islands. “We were the only lift in Southeast he could use to get lifted out of the water,” Skaflestad says. The wash-down bay will have a heated concrete pad sloped away from the harbor so debris and contaminated water is drained into a catch basin. A bathroom and small office are also part of the project, as are security lighting and fencing around the area. Electrical pedestals for stored boats are also being added, Skaflestad says. The $2 million project is being paid for with a $657,000 donation from the Denali Commission, $1.2 million from the State of Alaska, and $150,000 from the city budget. Skaflestad says the Hoonah harbor is booming—all its larger stalls, for vessels over 40 feet long are full and few smaller stalls are available. The harbor has a near-even mix of recreational and commercial users, he says. With the new lift, Skaflestad says the city hopes its maritime repair industry—welders and shipwrights—will expand to meet the new need and boost the local economy. The wash-down bay should be finished by September, Skaflestad says. A 6-week closure for construction is expected to begin in early July.

had little to offer in the way of moorage. “Before 2009 there was just an old floating dock out there for people to use. It wasn’t much bigger than maybe 30 by 40 feet with a little place to park a boat,” Benner says. The city has been working diligently to improve the harbor, both to take pressure off the city harbor on the north side and to improve access for south-side residents. “It provides better access for emergency services to the south side. And from an economic standpoint, having better mooring would actually encourage people to stay there or build and develop,” Benner says.

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Getting Across Thorne Bay

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Photo Credit: Frank Flavin

The city of Thorne Bay, near Ketchikan, is split by the bay it’s named for. City administrator Wayne Benner says about half the residents live on the north side, where the city’s main economic sector is, and half live on the south side, which boasts larger lots—one to five acres— and a more rural setting. But getting from one side to the other is not always easy. It’s about a 40-mile trip over sometimes shabby roads to drive around, Benner says. By boat, it takes about five minutes to reach the other side. But for many years, Davidson Harbor on the south side of the bay

The project is in its final phase of construction. When finished, Thorne Bay will have a boat launch ramp, approach and trailer parking at Davidson Landing, along with 700 feet of new walkways and mooring floats. It will increase the vessel capacity from 15 vessels up to 20 feet in length to room for 58 vessels up to 50 feet in length. Benner says the waiting list for slips on the south side is so long that the new harbor is already nearly full. He expects a mix of users, from local commercial fishermen to touring boats and skiffs operated by commuters.

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Photos courtesy of Wayne Benner

In the foreground is the main Thorne Bay harbor facility. INSET: Davidson Landing after significant improvements have been made. Work at Davidson Harbor, serving South Thorne Bay, will continue this year.

The Denali Commission is paying $455,000 for the expansion and Benner says the state kicked in another $250,000 last year, with another state grant on the horizon this year. That’s money well spent, considering improving the pioneer-grade gravel-and-pavement road that connects the two sides of Thorne Bay would cost more like $40 million, Benner says.

■ 104

More Projects

Other rural port projects scheduled for construction this year include: ■ Ketchikan Bar Harbor drive-down ramp design—$287,500 from the Denali Commission ■ Rehabilitation at the Wrangell city dock—$8.5 million, including nearly $1 million from the Denali Commission

■ False Pass utility construction, including electrical service suitable for fishing vessel repairs and operation—nearly $1 million from the Denali Commission ■ Small boat harbor repairs in Kasaan —$1.4 million from the state of Alaska ■ Installation of anodes in Petersburg harbor to extend the harbor life— $330,000 in state funding ■ Breakwater construction in Akutan, part of a $31 million project funded by the U.S. Army Corps of Engineers and the Aleutians East Borough to build a boat harbor there. ■ Installation of a floating breakwater in Juneau’s Douglas Harbor—$1.2 million in funding from the U.S. Army Corps of Engineers. From Nome to Hydaburg, communities will be working on projects this year to improve some of the more than 160 ports and harbors throughout rural Alaska. It may mean short disruptions in services for some port users, but in the long run, the communities will be offering more space or better services to patrons.  Rindi White is a writer living in Palmer.

www.akbizmag.com • Alaska Business Monthly • June 2012

Transportation special section

Hear That Whistle Moan

Easy Now! The railcar transporting Engine 557 connected in Whittier to the two Alaska Railroad engines bringing it on the last leg of the journey home.

Historic steam engine finds its way home

By Dimitra Lavrakas

team engines are just plain romantic. Conjuring up memories of exotic trips on the Orient Express or the Trans-Siberian Railroad, or a quick trip from London to Edinburgh on the now-retired steam engine the Flying Scotsman, the days of steam bring us back to a simpler era when we had the luxury of time to travel at leisure. And train fans are so enamored of those great hunks of steel that they’re referred to as “foamers.” Don’t worry—it’s an affectionate term for those dreamy fanatics who make it their life’s goal of boarding as many trains as possible. “They are so passionate about trains,” says Tim Sullivan, public relations director at the Alaska Railroad Corp.

Sullivan is spearheading the drive to put the railroad’s historic steam Engine No. 557 back on the tracks after its absence from the state.

The Engine’s Lineage

Baldwin Motor Works of Pennsylvania serial number 70480 was built for the U.S. Army Transportation Corps as U.S. No. 3523, eventually becoming No. 3557 after it arrived in Alaska in December 1944. She was one of the dozen S-160 locomotives dedicated to Alaska service in war time. One of the many S-160 locomotives built for the war effort, others were shipped to Europe and Africa. As military operations in the wake of World War II heated up in Alaska, there was an undeniable need to beef up the equipment.

Heavy locomotives were required to haul troops and equipment to key sites to support the various campaigns. That’s where the s-160 was introduced. Known as GI Consolidation or Gypsy Rose Lees, after the famous burlesque stripper, they were “stripped” down for action—in other words, customizable to what was required for use in their divergent destinations. For Alaska service, No. 557 was modified by mounting larger compound air compressors on the front pilot, steam coils were added to the cab to keep it warm in the harsh Alaska winters, and the cab roof was raised and widened to 10 feet so the crew could see back around the tender. A snowplow was attached to clear the tracks. After military service, the majority of these locomotives were transferred

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Engine 557 rolls past Sleeping Lady, almost home.

under the Marshal Plan to national railway systems on every continent except Australia and Antarctica. After the war, the 160,000-pound locomotive was put into passenger service, and was a star attraction as a ride to the Alaska State Fair in Palmer. Number 557 also bested the newfangled diesels when tracks flooded — with her higher carriage she could plow right through. But by 1959, her useful life in Alaska was coming to a close.

Locomotive No. 557 Goes South

The railroad’s last steam locomotive in active use, in 1964 No. 557 was also the last one ostensibly sold for scrap. But she really wasn’t. And this is where the story is not so much about the engine as it is about the men who love them. Monte Holm, the late founder of House of Poverty Museum and Moses Lake Steel Supply in Moses Lake, Wash., bought her from an Everett, Wash., steel dealer in the mid-1960s. Through the 1970s and most of the 1990s, Holm kept No. 557 in running condition at the museum. His love of trains began at the early age of 16 when he left home and took to the rails traveling throughout the country for six years during the Great Depression. “When you’re in a bread line, you’re outdoors most of the time,” Holm said ■ 106

in an interview with the Columbia Basin Herald in Washington state a month prior to his death in 2006. “Oh, it was cold. My poor frozen feet. I would get up, get something to eat and get back in line, and stand outdoors with those frozen feet. I decided when I stood in that breadline, ‘If I can ever afford it, I’m going to be good to people.’” And he was—always giving anyone he met a Werther’s Original hard candy, a gold hobo coin for luck, or a Symphony chocolate bar, according to the Moses Lake Steel Co.’s website. When he settled down in Moses Lake, he established his free museum to show all of those goons who had kicked him off trains that he owned his own rail line with 210 feet of track called the “Mon-Road.” Brothers Jim and Vic Jansen, owners of the land, sea and air transport company Lynden Transport, purchased Engine No. 557 from Holm’s heirs to ensure its return to Alaska. They graciously donated the locomotive to the Alaska Railroad. Lynden is no stranger to transporting locomotives and rail cars to and from Alaska on its 420-foot barges. And Vic, who lives in Moses Lake, managing one of Lyden’s companies LTI Inc. that specializes in the transport of bulk liquids and dry commodities in the Pacific Northwest and Western Canada, was no stranger to Holm, having been his friend for 30 years.

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Engine 557 parked in front of the historic Alaska Railroad Depot in Anchorage, home at last.

“Vic was one of my grandfather’s great friends,” says Steve Rimple, general manager of Moses Lake Steel Supply. “The Jansen family has known my family for a long time.” Rimple says his grandfater was very sick toward the end of his life, but that he had a private conversation with Vic about the locomotive and it’s future. “He left orders with us to take care of our families and to make sure the locomotive has the ablity to run and live again.” The gifting of the engine comes with conditions: She must be relocated to Anchorage (which happened in January), be rehabilitated and put back into service. The railroad has eight years to make this happen. In 2006, Wasatch Railroad Contractors in Cheyenne, Wyo., evaluated No. 557 and reported: “It is our opinion that the running gear of the locomotive is in excellent condition and that this locomotive has very few operating miles. The service that this locomotive has seen over the course of its 63 years has been minimal and light in nature. Further, WRC observes that the general condition of the major running gear components is nearly brand new. This is evidenced by the fact that many of the parts that make up the drive train have original machining marks that would be common from the factory of assembly.” The company deemed it to be “a very eligible candidate for restoration.”

Once back in service, several runs are being considered, Sullivan says. A likely one is pulling cars between Anchorage and Portage on one of the railroad’s most popular tourist excursions. Holm will be honored for saving the locomotive with a plaque on the front of the engine.

The Capital Campaign

It’s estimated that it will cost between $200,000 and $500,000 to bring No. 557 back into service, but mostly for cosmetic repairs as it is in very good condition, Sullivan says. The railroad alone cannot afford that large an expenditure, so it’s launching a campaign to raise the funds. No decision has been made as to what the vehicle for fundraising will be, Sullivan says. “Nothing is solidified yet,” he says. “We’ve talked to the Rasmuson Foundation, the Ted Stevens Foundation, Alaska Forward and a few others.” Rimple is looking forward to coming to Alaska when the train resumes service. “It was sad for my family when the engine left because it was a door closing on a part of our lives,” he says. “So when my children grow up we’ll go up to Alaska and ride on that engine my grandfather saved.”  Dimitra Lavrakas is a photojournalist living in Skagway.

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Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY

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1300 W. 56th Ave., Unit 14 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7012

AFF Logistics

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5103

Alaska Air Forwarding

4000 W. 50th Ave., Suite. 6 Anchorage, AK 99502 Phone: 907-248-4697 Fax: 907-248-9706

Alaska Air Transit

2331 Merrill Field Dr. Anchorage, AK 99501 Phone: 907-276-5422 Fax: 907-276-5400

Alaska Airlines

4750 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-7230 Fax: 907-266-7229

Alaska Airlines Air Cargo

4100 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 800-225-2752 Fax: 907-266-7816

■ 108

AK AK Estab. Estab. Empls. Empls. 1988

Cargo transportation provider offering scheduled cargo service to 21 locations in Alaska. ACE Logistics freight-forwarding and logistics provider. ACE Air Services offers aviation ground-handling for commercial and private carriers.

1993

Third-party warehousing and distribution company; short- and long-term storage; order processing, deliveries, and inventory reports; cold storage, chill to freeze; pick and pack individual orders; through bill of lading and single invoice; bypass mail service. A division of American Fast Freight, Inc.

1984

165

Truck, rail and ocean freight forwarding; heavyweight and over-dimensional freight movement; project logistics; arrange for permits, pilot cars, cranes and heavy haul equipment; aircraft and barge charters, warehousing and staging of finishing materials; on-site project management. A division of American Fast Freight, Inc.

1969

Air freight, trade shows, shipment consolidations, nationwide purchase order procurement service and international shipping.

1984

On demand air charters statewide & Canada in the Pilatus PC-12, offering turboprop speed, large cabin pressurized comfort, long range, large cargo door utility, and an excellent safety record. Alaska Air Transit features the newer increased weight capacity PC-12 Ò47Ó model, carrying up to 530-pounds more than standard PC12.

greg@aceaircargo.com www.aceaircargo.com Tom Verges, Ops. Mgr. youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Jeff Dornes, Co-Owner 4help@alaskaaircargo.com alaskaaircargo.com Daniel Owen, Pres. & Owner/Operator Charters@FlyAAT.com www.FlyAAT.com Marilyn Romano, Reg. VP, Alaska

1932

www.alaskaair.com Marilyn Romano, Reg. VP, Alaska www.alaskacargo.com

Services Business Activity

1932

1,700 Alaska Airlines and its sister carrier, Horizon Air, together provide passenger and cargo service to more than 90 cities in Alaska, Canada, Mexico, Hawaii and the Lower 48.

172

Goldstreak small package express, Petstreak animal express, priority and general air freight services. Full ULD and charter services also available.

www.akbizmag.com • Alaska Business Monthly • June 2012

109 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY AIR CARGO COMPANIES Company Company

Top Executive Top Executive

Alta Air Logistics

James Armstrong, Pres.

1407 W. 31st Ave., Suite 500 Anchorage, AK 99503 Phone: 907-771-5465 Fax: 907-771-5499

American Fast Freight Inc.

3501 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-452-7129 Fax: 907-451-7103

American Fast Freight Inc.

47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 Fax: 907-262-1925

American Fast Freight Inc.

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5100

American Fast Freight, Inc.

5025 Van Buren St. Anchorage, AK 99517 Phone: 907-248-5548 Fax: 907-243-7353

Best Rate Express LLC

PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Camai Enterprises LLC

5353 W. Rezanof Dr. Kodiak, AK 99615 Phone: 907-487-4926 Fax: 907-487-4931

Carlile Transportation Systems

1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301

Commodity Forwarders Inc.

4000 W. 50th, Suite 1 Anchorage, AK 99502 Phone: 907-243-1144 Fax: 907-243-1149

Deadhorse Aviation Center LLC

500 First St. Deadhorse, AK 99734 Phone: 907-346-3247 Fax: 907-349-1920

DHL Global Forwarding

2000 W. International Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

Egli Air Haul

PO Box 169 King Salmon, AK 99613 Phone: 907-246-3554 Fax: 907-246-3654

Era Alaska

4700 Old International Airport Road Anchorage, AK 99502 Phone: 907-266-8394 Fax: 907-266-8391

Era Helicopters LLC

6160 Carl Brady Dr., Hangar 2 Anchorage, AK 99502 Phone: 907-550-8600 Fax: 907-550-8608

Everts Air Cargo

PO Box 61680 Fairbanks, AK 99706 Phone: 907-450-2300 Fax: 907-450-2320

FedEx Express

6050 Rockwell Ave. Anchorage, AK 99502 Phone: 800-463-3339 Fax: 907-249-3178

■ 110

AK Estab. Estab. Empls. Empls. 2008

1984

165

Ocean freight forwarding, freight consolidation of all kinds, full loads, short- and longterm warehousing, temperature protected, bypass mail and air freight, specialized equipment, heavy haul, project logistics, intra-state trucking, Alcan express, barge, distribution, military shipments, household goods, and more.

1984

165

1984

165

1984

165

J.B. West Trucking & Co. Truck: flat, step, vans, reefers and heavy haul. Rail: containers and flat cars. Air: next-day, two-day and deferred service. Marine: steamship and barge service.

2000

Authorized agents for Northern Air Cargo, Transnorthern Air Cargo, ACE Air Cargo and Everts Air Cargo, with worldwide service.

1980

500

Full-service transportation company.

2003

Transporting perishable products worldwide. Provides logistical services for perishable products worldwide by providing transportation, documentation, warehouse and consulting services. Freezer storage in Anchorage.

1976

A multimodal aviation facility designed to meet the needs of both onshore and offshore oil and gas development on the North Slope. The DAC has a large hangar, office space, terminal, full-service medical facility, 24 bedrooms and a full dining facility. The DAC owns a gravel laydown yard with 10.4 acres of new gravel.

1970

Worldwide freight services featuring total Alaska coverage. Specializing in air cargo, trucking, express services, warehousing, storage solutions, supply chain and rail freight.

1982

Helicopter and airplane charter, aviation fuel sales and hanger space rental.

1948

840

Scheduled Passenger Service, Charter & Air Cargo Services to nearly 100 communities statewide.

1948

125

Alaska's original helicopter company, safely flying customers since 1948. Offering charter services, O&G, mining, and flightseeing in Juneau and Denali National Park.

1995

287

Freight and passenger transportation in Alaska with aircraft based in Deadhorse, Fairbanks and Anchorage, providing scheduled, flag-stop and charter flights.

logistics@shipalta.com www.shipalta.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Young Summers, Member/Owner yksummers@qwestoffice.net www.bestrateexpress.com Candace Ellison-Theis, CEO camaillc@yahoo.com Linda Leary, Pres.

Services Business Activity Freight forwarding and logistics. Specializing in all modes of transportation, consolidation, warehousing and project management.

pspittler@carlile.biz www.carlile.biz PJ Cranmer, Reg Ops Mgr Pac NW anc-customerservice@cfi-anc.com www.cfi-anc.com Sherron Perry, Mgr. info@deadhorseaviationcenter.com deadhorseaviationcenter.com John Witte, Reg. Mgr. jane.treadway@dhl.com www.dhl-dgf.com Sam Egli, Owner www.egliair.com Bob Hajdukovich, CEO sales@flyera.com www.flyera.com W. Randy Orr, VP alaskamarketing@erahelicopters.com www.erahelicopters.com Robert W. Everts, Owner/Pres. info@evertsair.com www.evertsair.com Dale Shaw, Managing Dir.

1973

1,148 Air cargo and express-package services.

www.fedex.com

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY AIR CARGO COMPANIES Company Company

Top Executive Top Executive

Great Circle Flight Services

Louis Jennings, Gen. Mgr.

6121 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1232 Fax: 907-245-1501

Group3 Aviation Alaska

2600 E. 5th Ave. Anchorage, AK 99501 Phone: 907-243-0147 Fax: 818-999-9384

Guardian Flight Inc.

4510 Old International Airport Rd., Ste. 101 Anchorage, AK 99502 Phone: 907-245-6230 Fax: 907-245-6231

AK Estab. Estab. Empls. Empls. 2005

GCFS provides personal and attentive concierge style FBO services to private and charter aircraft traveling to, from and throughout Alaska. Open 24/7/365.

2010

Offering FAA approved helicopter flight and ground training programs, helicopter flightseeing and helicopter air charters.

2000

120

dispatch@greatcircleflight.com www.greatcircleflight.com Claudia Herrera, Pres. group3@group3helicopters.com www.group3helicopters.com James Hunt, VP

Services Business Activity

www.facebook.com/guardianflight www.guardianflight.com

Alaska's premier air ambulance service. Guardian FlightÕs statewide network with bases and aircraft located in Anchorage, Fairbanks, Wasilla, Dutch Harbor, Kotzebue, Ketchikan, Sitka and Juneau, allows for the fastest response time in a medical emergency.

Homer Expediters

Jules Ravin , Owner/Operator

1986

Air cargo and express-package services, local delivery services, freight-transportation and air-forwarding services.

Kenai Aviation

Robert T Bielefeld, Owner

1961

Air Taxi

1997

Mineral Exploration, Survey, Research and Development, Slung Cargo, Video and Film Projects, Aerial Photography, Tours, Crew Transport, Heli Skiing, Short and Long Term Contracts.

1996

158

PO Box 3219 Homer, AK 99603 Phone: 907-235-5244 Fax: 907-235-5244 PO Box 46 Kenai, AK 99611 Phone: 907-283-4124 Fax: 907-283-5267

Last Frontier Air Ventures Ltd.

39901 N. Glenn Hwy. Sutton, AK 99674 Phone: 907-745-5701 Fax: 907-745-5711

Lynden Air Cargo

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-7248 Fax: 907-257-5124

kenaiav@yahoo.com David King, Pres. helicopter@LFAV.com www.LFAV.com Judy McKenzie, Pres.

Charter air cargo service. Scheduled air cargo and express package service.

charters@lac.lynden.com www.lac.lynden.com

Alaska’s Resource Carrier For 80 years Alaska Air Cargo has supported the state’s resource industries with a record of reliability and exceptional service. With local experts and frequent flights that span the state

THE #1 ON-TIME AIRLINE IN NORTH AMERICA*

Kennet has been providing top-notch customer service for Alaska Air Cargo since 1980.

www.akbizmag.com • Alaska Business Monthly • June 2012

*2010, 2011 FLIGHTSTATS.COM

– we can guarantee same- and next-day deliveries for your projects whether big or small.

111 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY AIR CARGO COMPANIES Company Company

Top Executive Top Executive

Lynden Expo Air

David Richardson, Pres.

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden International

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden Logistics

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744

Lynden Transport Inc.

3027 Rampart Dr. Anchorage, AK 99501 Phone: 907-276-4800 Fax: 907-257-5155

Maritime Helicopters

3520 FAA Rd. Homer, AK 99603 Phone: 907-235-7771 Fax: 907-235-7773

Northern Air Cargo

3900 Old International Airport Rd. Anchorage, AK 99502 Phone: 907-243-3331 Fax: 907-249-5191

PacArctic Logistics LLC

4300 B St., Suite 407 Anchorage, AK 99503 Phone: 907-887-4252 Fax: 907-562-5258

Pathfinder Aviation Inc.

PO Box 375 Homer, AK 99603 Phone: 907-226-2800 Fax: 907-226-2801

PenAir

6100 Boeing Ave. Anchorage, AK 99502 Phone: 907-771-2500 Fax: 907-771-2665

Rosie's Delivery Inc.

PO Box 112782 Anchorage, AK 99511 Phone: 907-345-4980 Fax: 907-345-8602

Ryan Air Inc.

6400 Carl Brady Dr. Anchorage, AK 99502 Phone: 907-562-2227 Fax: 907-563-8177

Security Aviation

6121 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-248-2677 Fax: 907-248-6911

Taquan Air

4085 Tongass Ave. Ketchikan, AK 99901 Phone: 9072258800 Fax: 9072284605

TGI Freight

PO Box 221049 Anchorage, AK 99522 Phone: 907-522-3088 Fax: 907-562-6295

TransGroup Worldwide Logistics

3501 Postmark Dr. Anchorage, AK 99502 Phone: 907-243-4345 Fax: 888-812-6295

TransNorthern Aviation

4510 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-245-1879 Fax: (907) 245-1878

■ 112

AK Estab. Estab. Empls. Empls.

Services Business Activity

1980

Trade show logistics.

1980

Air cargo and express-package services, nonscheduled and scheduled air transportation, air courier services, freight transportation services and local delivery services.

1984

Arrangement of freight transportation, information management and logistical services.

1954

146

Full-service, multi-mode freight transportation to, from and within Alaska.

1973

Maritime Helicopters supports marine, petroleum, and construction industries as well as State and federal Agencies. Maritime owns the Maritime Maid, an 86' vessel equipped for helicopter operations. We own and operate 6-passenger Bell 407, Bell Long Ranger and 4-passenger Bell Jet Ranger helicopters.

1956

325

The Northern Air Cargo family of companies offer scheduled and charter cargo services throughout Alaska, the Lower 48 and North America as well as aircraft maintenance and ground handling services.

2010

Full Service Logistics and Transportation. Scheduled Services from Seattle, WA to Port MacKenzie, AK

2001

Helicopter on-demand charter for mining, oil, tourism, surveying, filming, aerial applications, firefighting and various other services. Currently utilizing Bell 206 series helicopters and AMD/OAS-approved pilots and aircraft.

1955

500

Air transportation scheduled: passenger, mail, freight and charters. Thirty-five aircraft serving more than 45 communities

1971

Courier services throughout the Anchorage area and Mat-Su Valley, air-courier assignment to outlying Alaska cities, and low-cost air freight around the world.

1953

100

Air cargo, scheduled and charter operations, contract ground services and support.

1985

24/7 on-demand aircraft charter services: express package service, passenger, freight and medical transportation.

2000

Scheduled air carrier, passengers, mail, cargo, flightseeing, fly-out bear viewing, fly-out fishing.

1989

Local freight cartage, freight consolidation, logistics and hazardous material services.

2011

U.S. owned full service freight forwarder and global logistics Provider. We provide transportation, warehousing and specialized logistics solutions, coupled with software tailored to meet the specific needs of each individual customer - for every link in your supply chain. Areas Served: Worldwide

1995

TransNorthern operates Twin Turbine Metroliners and Beechcraft 99 aircraft as well as four Super DC-3Õs - all the aircraft are for passengers, cargo and combination charters on demand. They also provide weekday FedEx and UPS freight-delivery service to Kodiak, Kenai, and Homer, Alaska.

information@lynden.com www.laf.lynden.com David Richardson, Pres. lafmtg@laf.lynden.com www.laf.lynden.com Alex McKallor, Pres. information@lynden.com www.lynden.com Jim Beck, Pres. trananccs@lynden.com www.lynden.com/ltia/ Bob Fell, Dir. of Ops info@maritimehelicopters.com www.maritimehelicopters.com David W. Karp, Pres./CEO info@nac.aero www.nac.aero King Hufford, Pres. KHufford@PacArctic.com www.PacArctic.com Michael W. Fell, Pres. pathfinderaviation@alaska.net www.pathfinderaviation.com Danny Seybert, CEO missya@penair.com www.penair.com Julie A. Jackson, VP rosiesbilling@gmail.com rosiesdelivery.com Wilfred "Boyuck" Ryan, Pres. ryan@ryanalaska.com www.ryanalaska.com Stephen "Joe" Kapper, Pres. sales@securityaviaition.biz www.securityaviation.biz Brien Salazar, Pres./CEO taquanair.com Todd Clark, Pres. toddc@tgifreight.com www.tgifreight.com Vanessa Keyes, Reg. Dir./AK vanessak.anc@transgroup.com www.transgroup.com Andrea Larson, Gen. Mgr. charters@transnorthern.com www.transnorthern.com

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY LAND TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

AAA Moving & Storage

Greg Wakefield, Pres.

747 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-276-3506 Fax: 907-258-3986

ACE Air Cargo

5901 Lockheed Ave. Anchorage, AK 99502 Phone: 907-334-5100 Fax: 907-245-0243

AFF Distribution Services

1300 W. 56th Ave., Unit 14 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7012

AFF Logistics

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5103

Alaska Air Forwarding

4000 W. 50th Ave., Suite. 6 Anchorage, AK 99502 Phone: 907-248-4697 Fax: 907-248-9706

Alaska Marine Lines

100 Mt. Roberts St., Suite 200 Juneau, AK 99801 Phone: 907-586-3790 Fax: 907-463-3298

Alaska Railroad Corp.

PO Box 107500 Anchorage, AK 99510-7500 Phone: 907-265-2300 Fax: 907-265-2312

AK Estab. Empls. Empls. Estab. 1983

Arrangement of transportation of freight and cargo, local delivery services, local trucking with storage, special warehousing and storage, and household goods moving and storage. Specializing in military and government relocations.

1988

1993

1984

165

1969

Air freight, trade shows, shipment consolidations, nationwide purchase order procurement service and international shipping.

1980

Twice weekly barge service to Southeast Alaska and weekly barge service to Central Alaska. Charter and nonscheduled barge services.

1914

685

Freight, passenger and real estate services.

aaa-moving.com Mike Bergt, Pres. greg@aceaircargo.com www.aceaircargo.com Tom Verges, Ops. Mgr. youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Jeff Dornes, Co-Owner 4help@alaskaaircargo.com alaskaaircargo.com Kevin Anderson, Pres. www.amlcsc@lynden.com www.shipaml.com Christopher Aadnesen, Pres./CEO

Business Activity Services

corpinfo@akrr.com www.alaskarailroad.com

www.akbizmag.com • Alaska Business Monthly • June 2012

113 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY LAND TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

Alaska Terminals Inc.

Todd Halverson, Owner/Pres.

400 W. 70th Ave., Suite 3 Anchorage, AK 99518 Phone: 907-349-6657 Fax: 907-349-2045

Alaska Trucking Association

3443 Minnesota Dr. Anchorage, AK 99503 Phone: 907-276-1149 Fax: 907-274-1946

Alaska West Express

1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-339-5100 Fax: 907-339-5117

Alta Air Logistics

1407 W. 31st Ave., Suite 500 Anchorage, AK 99503 Phone: 907-771-5465 Fax: 907-771-5499

American Fast Freight Inc.

47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 Fax: 907-262-1925

American Fast Freight Inc.

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5100

American Fast Freight Inc.

3501 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-452-7129 Fax: 907-451-7103

American Fast Freight, Inc.

5025 Van Buren St. Anchorage, AK 99517 Phone: 907-248-5548 Fax: 907-243-7353

American Relocation Services

5491 Electron Dr., Unit 1 Anchorage, AK 99518 Phone: 907-248-2929 Fax: 907-561-4244

American Relocation Services

3411 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-456-3097 Fax: 907-456-3098

Best Rate Express LLC

PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Carlile Transportation Systems

1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301

Commodity Forwarders Inc.

4000 W. 50th, Suite 1 Anchorage, AK 99502 Phone: 907-243-1144 Fax: 907-243-1149

Crowley

201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

DHL Global Forwarding

2000 W. International Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

Homer Expediters

PO Box 3219 Homer, AK 99603 Phone: 907-235-5244 Fax: 907-235-5244

■ 114

AK Estab. Empls. Empls. Estab. 1981

An Atlas Van Lines agent, local, interstate and international household goods moving and storage. We specialize in government and corporate employee relocation of families to and from Alaska.

1958

Provides all the books and forms needed for operating a commercial vehicle within the state. Also provides DMV functions for titles and registration for commercial contractors and the general public.

1978

117

Alaska West Express provides truckload transportation throughout the United States and Canada, specializing in your shipment to and from Alaska, where we are the leader in transporting liquid- and dry-bulk products, hazardous and non-hazardous chemicals and petroleum products.

2008

1984

165

1984

165

1984

165

1984

165

1988

Commercial/residential relocations, moving and storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, service in and outside Alaska, certified moving consultants, budget service available. A division of American Fast Freight.

1988

J.B. West Trucking & Co. Truck: flat, step, vans, reefers and heavy haul. Rail: containers and flat cars. Air: next-day, two-day and deferred service. Marine: steamship and barge service.

1980

500

Full-service transportation company.

2003

1892

550

Fuel sales and distribution, marine services, tanker escort and spill response throughout Alaska.

1970

Worldwide freight services featuring total Alaska coverage. Specializing in air cargo, trucking, express services, warehousing, storage solutions, supply chain and rail freight.

1986

Air cargo and express-package services, local delivery services, freight-transportation and air-forwarding services.

dave@akterminals.com www.akterminals.com Aves Thompson, Exec. Dir. info@aktrucks.org www.aktrucks.org Dean C. McKenzie, Pres. information@lynden.com www.awe.lynden.com James Armstrong, Pres. logistics@shipalta.com www.shipalta.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Brady Purdue, Gen. Mgr. youtube.com/americanfastfreight www.americanfast.com Damian Naquin, Gen. Mgr. youtube.com/americanfastfreight www.americanfast.com Young Summers, Member/Owner yksummers@qwestoffice.net www.bestrateexpress.com Linda Leary, Pres.

Business Activity Services

Freight forwarding and logistics. Specializing in all modes of transportation, consolidation, warehousing and project management.

pspittler@carlile.biz www.carlile.biz PJ Cranmer, Reg Ops Mgr Pac NW anc-customerservice@cfi-anc.com www.cfi-anc.com Bob Cox, VP bob.cox@crowley.com www.crowley.com John Witte, Reg. Mgr. jane.treadway@dhl.com www.dhl-dgf.com Jules Ravin , Owner/Operator

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY LAND TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

Horizon Lines LLC

Marion Davis, VP & GM, AK Div.

1717 Tidewater Rd. Anchorage, AK 99501-1036 Phone: 907-274-2671 Fax: 907-263-5043

Lynden Expo Air

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden International

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden Logistics

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744

Lynden Transport Inc.

3027 Rampart Dr. Anchorage, AK 99501 Phone: 907-276-4800 Fax: 907-257-5155

Northland Services Inc.

PO Box 24527 Seattle, WA 98124 Phone: 206-763-3000 Fax: 206-767-5579

PacArctic Logistics LLC

4300 B St., Suite 407 Anchorage, AK 99503 Phone: 907-887-4252 Fax: 907-562-5258

AK Estab. Empls. Empls. Estab. 1964

285

Container ship service between Tacoma, WA, and Anchorage, Kodiak, and Dutch Harbor, AK. Linehaul trucking of containers to the Alaska Railbelt. Seasonal feeder barge service to Bristol Bay and the Pribilofs. Connecting service to water, air, and land carriers.

1980

Trade show logistics.

1980

Air cargo and express-package services, nonscheduled and scheduled air transportation, air courier services, freight transportation services and local delivery services.

1984

Arrangement of freight transportation, information management and logistical services.

1954

146

Full-service, multi-mode freight transportation to, from and within Alaska.

1977

150

Marine transportation services to and from Alaska.

2010

www.horizonlines.com David Richardson, Pres.

Business Activity Services

Full Service Logistics and Transportation. Scheduled Services from Seattle, WA to Port MacKenzie, AK

SPAN ALASKA

gives us the power to do more.

..... We needed a shipping partner that moves as fast and efficiently as we do. So we partnered with Span Alaska. Today our products are flying out the door, business is buzzing, and we’re enjoying the ride! – Jason Schweizer, Logistics Division Manager, Yamaha Motor Corporation

SHIPPING TO ALASKA? CALL. 1.800.257.7726 www.spanalaska.com

promises made, promises delivered

Josh Estes, General Manager, Performance Yamaha, Wasilla

www.akbizmag.com • Alaska Business Monthly • June 2012

115 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY LAND TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

Pacific Alaska Freightways Inc.

Ed Fitzgerald, CEO

431 E. 104th Ave. Anchorage, AK 99515 Phone: 907-336-2567 Fax: 907-336-1567

Richmond Steel Recycling

11760 Mitchell Rd. Richmond, BC V6V1V8 Canada Phone: 907-280-8180 Fax: 604-324-8617

Rosie's Delivery Inc.

PO Box 112782 Anchorage, AK 99511 Phone: 907-345-4980 Fax: 907-345-8602

Seldovia Bay Ferry

PO Drawer L Seldovia, AK 99663 Phone: 907-234-7898 Fax: 907-226-2230

Span Alaska Transportation, Inc.

PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

TGI Freight

PO Box 221049 Anchorage, AK 99522 Phone: 907-522-3088 Fax: 907-562-6295

Totem Ocean Trailer Express

2511 Tidewater Rd. Anchorage, AK 99501-1044 Phone: 907-276-5868 Fax: 907-278-0461

TrailerCraft | Freightliner of Alaska 1301 E. 64th Ave. Anchorage, AK 99518-1908 Phone: 907-563-3238 Fax: 907-562-6963

TransGroup Worldwide Logistics

3501 Postmark Dr. Anchorage, AK 99502 Phone: 907-243-4345 Fax: 888-812-6295

Waste Management

310 K St., Suite 200 Anchorage, AK 99501 Phone: 907-264-6784 Fax: 907-264-6602

Western Peterbilt Inc.

2756 Commercial Dr. Anchorage, AK 99501 Phone: 907-276-2020 Fax: 907-276-2164

AK Estab. Empls. Empls. Estab.

Business Activity Services

1961

Transports freight between the Lower 48 and Alaska. Trucking services in Alaska.

1970

Auto hulk shredding, mobile car crusher, industrial steel accounts including full-container service, mobile shears, dock facilities and confidential shredding/destruction.

1971

Courier services throughout the Anchorage area and Mat-Su Valley, air-courier assignment to outlying Alaska cities, and low-cost air freight around the world.

2010

Provide daily scheduled transportation between Homer and Seldovia May-September.

1978

Freight transportation services to and from Alaska, less-than-truckload and truckload. Steamship and barge service to Railbelt area of Alaska. Barge service to Juneau and Southeast Alaska. Overnight service from Anchorage to Fairbanks and the Kenai Peninsula.

1989

Local freight cartage, freight consolidation, logistics and hazardous material services.

1975

A privately held Alaska corporation and vessel-operating common carrier. Runs a fleet of roll-on/roll-off trailer ships between the ports of Tacoma, Wash., and Anchorage.

1969

Freightliner distributor, parts, sales and service for all transport equipment.

2011

1969

Hazardous and nonhazardous waste disposal, project management, complete logistical oversight, complete U.S. and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation and turnkey remedial services.

1987

Full-service Peterbilt dealership. Offer truck sales, rentals and leasing, and contract maintenance. Full parts and service department. Additional locations in Fairbanks and Prudhoe Bay.

www.pafak.com Harbinder Dhillon, Gen. Mgr. shirah.roth@simsmm.com www.simsmm.com Julie A. Jackson, VP rosiesbilling@gmail.com rosiesdelivery.com Crystal Collier, Pres./CEO Info@seldoviabayferry.com Seldoviabayferry.com Mike Landry, Pres. kathyL@spanalaska.com www.spanalaska.com Todd Clark, Pres. toddc@tgifreight.com www.tgifreight.com George Lowery, AK Dir. www.totemocean.com Lee McKenzie, Pres./Owner sales@trailercraft.com www.trailercraft.com Vanessa Keyes, Reg. Dir./AK vanessak.anc@transgroup.com www.transgroup.com Mike Holzschuh, Territory Mgr./N.Am. mholzschuh@wm.com www.wm.com Mitch Hatfield, Gen. Mgr. www.westernpeterbilt.com

MARINE TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

AFF Distribution Services

Tom Verges, Ops. Mgr.

1300 W. 56th Ave., Unit 14 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7012

AFF Logistics

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5103

Alaska Logistics LLC

PO Box 3512 Seattle, WA 98124 Phone: 206-767-2555 Fax: 206-767-5222

Alaska Marine Lines

100 Mt. Roberts St., Suite 200 Juneau, AK 99801 Phone: 907-586-3790 Fax: 907-463-3298

■ 116

AK Estab. Empls. Empls. Estab. 1993

1984

165

2003

Scheduled barge service from Seattle to Western and Central Alaska. Provides services to receive customers' freight, consolidate, manifest and track from origin to final destination. We also provide charters.

1980

Twice weekly barge service to Southeast Alaska and weekly barge service to Central Alaska. Charter and nonscheduled barge services.

youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Allyn Long, Owner/Gen. Mgr. info@alaska-logistics.com www.alaska-logistics.com Kevin Anderson, Pres. www.amlcsc@lynden.com www.shipaml.com

Business Activity Services

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY MARINE TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

Alaska Railroad Corp.

Christopher Aadnesen, Pres./CEO

PO Box 107500 Anchorage, AK 99510-7500 Phone: 907-265-2300 Fax: 907-265-2312

Alaska West Express

1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-339-5100 Fax: 907-339-5117

Alta Air Logistics

1407 W. 31st Ave., Suite 500 Anchorage, AK 99503 Phone: 907-771-5465 Fax: 907-771-5499

American Fast Freight Inc.

47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 Fax: 907-262-1925

American Fast Freight Inc.

3501 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-452-7129 Fax: 907-451-7103

American Fast Freight Inc.

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5100

American Fast Freight, Inc.

5025 Van Buren St. Anchorage, AK 99517 Phone: 907-248-5548 Fax: 907-243-7353

AK Estab. Empls. Empls. Estab.

Business Activity Services

1914

685

Freight, passenger and real estate services.

1978

117

2008

1984

165

1984

165

1984

165

1984

165

corpinfo@akrr.com www.alaskarailroad.com Dean C. McKenzie, Pres. information@lynden.com www.awe.lynden.com James Armstrong, Pres. logistics@shipalta.com www.shipalta.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com

Freight forwarding and logistics. Specializing in all modes of transportation, consolidation, warehousing and project management.

Serving Alaska with pride and environmental stewardship for more than 50 years.

Our strength comes from our people. Experience. Trust. Dedication. Commitment. These continue to be our most important assets. www.horizonlines.com

877.678.7447

www.akbizmag.com • Alaska Business Monthly • June 2012

117 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY MARINE TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

American Relocation Services

Damian Naquin, Gen. Mgr.

3411 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-456-3097 Fax: 907-456-3098

American Relocation Services

5491 Electron Dr., Unit 1 Anchorage, AK 99518 Phone: 907-248-2929 Fax: 907-561-4244

AK Estab. Empls. Empls. Estab. 1988

1988

youtube.com/americanfastfreight www.americanfast.com Brady Purdue, Gen. Mgr.

Business Activity Services

youtube.com/americanfastfreight www.americanfast.com

Anderson Tug & Barge Co.

Andy Anderson, Pres.

1978

Ship and barge assist, line handling and pilot boat.

Bering Marine

Rick Gray, Pres.

1985

Bering Marine Corporation provides highly specialized, contracted marine services to reach water-locked villages and other remote Alaska locations. Bering Marine gets building materials, equipment and gravel to some of Alaska's most isolated spots.

1997

Barge transportation from Seattle to Western Alaska and between Western Alaska villages. Gravel and rock supply to most Western Alaska villages. Reliable on time deliveries at reasonable rates. Our motto is "We do what we say we'll do!"

J.B. West Trucking & Co. Truck: flat, step, vans, reefers and heavy haul. Rail: containers and flat cars. Air: next-day, two-day and deferred service. Marine: steamship and barge service.

1982

Bowhead provides marine cargo transportation along the North Slope of Alaska. Utilizing specialized vessels, Bowhead also provides vessel and crew support for offshore oil exploration, development, and production activities.

1980

500

Full-service transportation company.

2003

1892

550

Fuel sales and distribution, marine services, tanker escort and spill response throughout Alaska.

2008

Marine support for all Alaskan construction projects. Eco friendly Tugs and Barges tow in rivers, hard to reach coastal delta areas, and Oceans. ABS Load line Vessels with double bottom fuel tanks.

1985

105

Fueling Alaska safely for over 25 years.

1970

Worldwide freight services featuring total Alaska coverage. Specializing in air cargo, trucking, express services, warehousing, storage solutions, supply chain and rail freight.

1889

Services: ship assist, escort, project cargo, liner, bunkering, heavy lift support; remote site planning and design; lightering, resupply and ocean towing services; and unique vessel design and services. Depending on season and projects, Alaska employees range from 10 to 75 or more.

1975

Pacific Coast Maritime, subsidiary of Harley Marine Services, operates out of Dutch Harbor, AK with a state of the art, 4,000 HP tractor tug and a 240Õ x 60' deck barge equipped with a Manitowoc 4100 Vicon Crane. Primary business functions include ship assist, general towing and deck cargo transportation.

1986

Air cargo and express-package services, local delivery services, freight-transportation and air-forwarding services.

PO Box 1315 Seward, AK 99664 Phone: 907-224-5506 Fax: 907-224-7446 6441 South Airpark Pl. Anchorage, AK 99502 Phone: 907-248-7646 Fax: 907-245-1744

Bering Pacific Services Co.

7801 Schoon, Suite B Anchorage, AK 99518 Phone: 907-222-7672 Fax: 907-222-7673

Best Rate Express LLC

PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Bowhead Transport Company

4025 Delridge Way SW, Suite 160 Seattle, WA 98106 Phone: 800-347-0049 Fax: 206-957-5261

Carlile Transportation Systems

1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301

Commodity Forwarders Inc.

4000 W. 50th, Suite 1 Anchorage, AK 99502 Phone: 907-243-1144 Fax: 907-243-1149

Crowley

201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Cruz Marine LLC

7000 E. Palmer-Wasilla Hwy. Palmer, AK 99645 Phone: 907-746-3144 Fax: 907-746-5557

Delta Western, Inc.

420 L Street, Suite 101 Anchorage, AK 99501 Phone: 800-478-2688 Fax: 206-213-0103

DHL Global Forwarding

2000 W. International Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

Foss Maritime Co.

1151 Fairview Ave. N. Seattle, WA 98119 Phone: 206-281-3800 Fax: 206-281-4702

Harley Marine Services

910 SW Spokane St. Seattle, WA 98134 Phone: 206-628-0051 Fax: 206-628-0293

Homer Expediters

PO Box 3219 Homer, AK 99603 Phone: 907-235-5244 Fax: 907-235-5244

■ 118

information@lynden.com www.bmc.lynden.com Mike Brazier, Mgr. mikeb@beringpacific.com www.beringpacific.com Young Summers, Member/Owner yksummers@qwestoffice.net www.bestrateexpress.com Jim Dwight, Gen. Mgr. info@bowhead.com www.bowhead.com Linda Leary, Pres. pspittler@carlile.biz www.carlile.biz PJ Cranmer, Reg Ops Mgr Pac NW anc-customerservice@cfi-anc.com www.cfi-anc.com Bob Cox, VP bob.cox@crowley.com www.crowley.com Kevin Weiff, Marine Dir. info@cruzmarine.com www.cruzmarine.com Amy Humphreys, Pres. www.deltawestern.com John Witte, Reg. Mgr. jane.treadway@dhl.com www.dhl-dgf.com Gary Faber, CEO info@foss.com www.foss.com Jim Weimer, GM, PCM www.harleymarine.com Jules Ravin , Owner/Operator

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY MARINE TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

Horizon Lines LLC

Marion Davis, VP & GM, AK Div.

1717 Tidewater Rd. Anchorage, AK 99501-1036 Phone: 907-274-2671 Fax: 907-263-5043

Lynden International

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden Logistics

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744

Lynden Transport Inc.

3027 Rampart Dr. Anchorage, AK 99501 Phone: 907-276-4800 Fax: 907-257-5155

Maritime Helicopters

3520 FAA Rd. Homer, AK 99603 Phone: 907-235-7771 Fax: 907-235-7773

David Richardson, Pres.

285

1980

Air cargo and express-package services, nonscheduled and scheduled air transportation, air courier services, freight transportation services and local delivery services.

1984

Arrangement of freight transportation, information management and logistical services.

1954

146

Full-service, multi-mode freight transportation to, from and within Alaska.

1973

1950

100

Stevedore, marine logistics and operated crane services. We are also providing state of the art driven foundations with our ABI Mobile Ram Machines.

1977

150

Marine transportation services to and from Alaska.

lafmtg@laf.lynden.com www.laf.lynden.com Alex McKallor, Pres.

Business Activity Services

1964

www.horizonlines.com

information@lynden.com www.lynden.com Jim Beck, Pres. trananccs@lynden.com www.lynden.com/ltia/ Bob Fell, Dir. of Ops info@maritimehelicopters.com www.maritimehelicopters.com

North Star Terminal & Stevedore Co. Jeff Bentz, Pres. 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-263-0120 Fax: 907-272-8927

sales@northstarak.com www.northstarak.com

Northland Services Inc.

Larry Stauffer, Pres./CEO

PO Box 24527 Seattle, WA 98124 Phone: 206-763-3000 Fax: 206-767-5579

AK Estab. Empls. Empls. Estab.

info@northlandservices.com www.northlandservices.com

a MeMber of the ukpeagvik iÑupiat corporation faMily of coMpanies

www.akbizmag.com • Alaska Business Monthly • June 2012

119 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY MARINE TRANSPORTATION COMPANIES Company Company

Top Executive Top Executive

AK Estab. Empls. Empls. Estab.

Business Activity Services

NTCL

Bill Duffy, Pres. 10104 103 Ave., Suite 1209 charters@ntcl.com Edmonton, AB T5J 0H8 Phone: (780) 441-3932 Fax: (780) 441-3934 www.ntcl.com

1934

Marine transportation, bulk cargo, dry deck cargo and related services. Fabrication services.

Offshore Systems Inc. (Dutch Harbor) Rick Wilson , Bus. Mgr.

1982

Since 1983, Offshore Systems, Inc. (OSI) has been the premiere fuel and dock facility in Western Alaska. 1,500 linear feet of dock space, around-the-clock stevedoring services, secure, dry warehousing and cold storage, and material handling equipment.

1982

OMSI oil and gas production platforms, back up oil spill response efforts, dock facility in Western Alaska with 1,500 linear feet dock space, stevedoring, warehousing, cold storage, material handling. Statewide service.

2010

Full Service Logistics and Transportation. Scheduled Services from Seattle, WA to Port MacKenzie, AK

1961

Transports freight between the Lower 48 and Alaska. Trucking services in Alaska.

1918

The Port of Tacoma is an economic engine for Washington, with activities connected to more than 43,000 family-wage jobs in Pierce County and 113,000 statewide. A strategic gateway to Asia and Alaska, the Port is also a major center for containers, automobiles, heavy equipment, bulk and breakbulk cargoes.

2010

Provide daily scheduled transportation between Homer and Seldovia May-September.

1978

1989

Local freight cartage, freight consolidation, logistics and hazardous material services.

1975

A privately held Alaska corporation and vessel-operating common carrier. Runs a fleet of roll-on/roll-off trailer ships between the ports of Tacoma, Wash., and Anchorage.

2011

2009

Vitus Marine LLC specializes in meeting the marine transportation and fuel distribution needs of Western Alaska maritime communities. Vitus currently provides fuel and freight delivery services across Western Alaska.

1969

1960

Tug and barge operator based in Seattle serving all of Alaska with one tug stationed in Petersburg

Mile 4 Captains Bay Rd. Dutch Harbor , AK 99692 Phone: 907-581-1827 Fax: 907-581-1630

www.offshoresystemsinc.com offshoresystemsinc.com

Offshore Systems, Inc. (Anchorage)

Rick Wilson, Bus. Mgr.

3301 C Street, Suite 201 Anchorage , AK 99503 USA Phone: 907-646-4680 Fax: 907-646-1430

PacArctic Logistics LLC

4300 B St., Suite 407 Anchorage, AK 99503 Phone: 907-887-4252 Fax: 907-562-5258

Pacific Alaska Freightways Inc.

431 E. 104th Ave. Anchorage, AK 99515 Phone: 907-336-2567 Fax: 907-336-1567

Port of Tacoma

PO Box 1837 Tacoma, WA 98401 Phone: 253-383-5841 Fax: 253-593-4534

Seldovia Bay Ferry

PO Drawer L Seldovia, AK 99663 Phone: 907-234-7898 Fax: 907-226-2230

Span Alaska Transportation, Inc.

PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

TGI Freight

PO Box 221049 Anchorage, AK 99522 Phone: 907-522-3088 Fax: 907-562-6295

Totem Ocean Trailer Express

2511 Tidewater Rd. Anchorage, AK 99501-1044 Phone: 907-276-5868 Fax: 907-278-0461

TransGroup Worldwide Logistics

3501 Postmark Dr. Anchorage, AK 99502 Phone: 907-243-4345 Fax: 888-812-6295

Vitus Marine

113 West Northern Lights Blvd., Suite 200 Anchorage, AK 99503 Phone: 907-278-6700 Fax: 907-278-6701

Waste Management

310 K St., Suite 200 Anchorage, AK 99501 Phone: 907-264-6784 Fax: 907-264-6602

Western Towboat Co.

617 NW 40th street Seattle, WA 98107 Phone: 2067899000 Fax: 2067899755

www.offshoresystemsinc.com King Hufford, Pres. KHufford@PacArctic.com www.PacArctic.com Ed Fitzgerald, CEO www.pafak.com John Wolfe, CEO www.facebook.com/portoftacoma www.portoftacoma.com Crystal Collier, Pres./CEO Info@seldoviabayferry.com Seldoviabayferry.com Mike Landry, Pres. kathyL@spanalaska.com www.spanalaska.com Todd Clark, Pres. toddc@tgifreight.com www.tgifreight.com George Lowery, AK Dir. www.totemocean.com Vanessa Keyes, Reg. Dir./AK vanessak.anc@transgroup.com www.transgroup.com Mark Smith, CEO stacey.smith@vitusmarine.com www.vitusmarine.com Mike Holzschuh, Territory Mgr./N.Am. mholzschuh@wm.com www.wm.com Bob Shrewsbury II, Pres. Westerntowboat@westerntowboat.co Www.westerntowboat.com

SHIPPING LOGISTICS COMPANIES Company Company

Top Executive Top Executive

ACE Air Cargo

Mike Bergt, Pres.

5901 Lockheed Ave. Anchorage, AK 99502 Phone: 907-334-5100 Fax: 907-245-0243

■ 120

greg@aceaircargo.com www.aceaircargo.com

AK Estab. Empls. Empls. Estab. 1988

Business Activity Services Cargo transportation provider offering scheduled cargo service to 21 locations in Alaska. ACE Logistics freight-forwarding and logistics provider. ACE Air Services offers aviation ground-handling for commercial and private carriers.

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY SHIPPING LOGISTICS COMPANIES Company Company

Top Executive Top Executive

AFF Distribution Services

Tom Verges, Ops. Mgr.

1300 W. 56th Ave., Unit 14 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7012

AFF Logistics

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5103

Alaska Air Transit

2331 Merrill Field Dr. Anchorage, AK 99501 Phone: 907-276-5422 Fax: 907-276-5400

Alaska Logistics LLC

PO Box 3512 Seattle, WA 98124 Phone: 206-767-2555 Fax: 206-767-5222

Alaska Marine Lines

100 Mt. Roberts St., Suite 200 Juneau, AK 99801 Phone: 907-586-3790 Fax: 907-463-3298

Alaska Railroad Corp.

PO Box 107500 Anchorage, AK 99510-7500 Phone: 907-265-2300 Fax: 907-265-2312

Alaska Traffic Co.

PO Box 3837 Seattle, WA 98124 Phone: 425-282-6610 Fax: 425-282-6611

AK Estab. Empls. Empls. Estab. 1993

1984

165

1984

2003

1980

Twice weekly barge service to Southeast Alaska and weekly barge service to Central Alaska. Charter and nonscheduled barge services.

1914

685

Freight, passenger and real estate services.

1956

youtube.com/americanfastfreight www.americanfast.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Daniel Owen, Pres. & Owner/Operator Charters@FlyAAT.com www.FlyAAT.com Allyn Long, Owner/Gen. Mgr. info@alaska-logistics.com www.alaska-logistics.com Kevin Anderson, Pres. www.amlcsc@lynden.com www.shipaml.com Christopher Aadnesen, Pres./CEO

Business Activity Services

corpinfo@akrr.com www.alaskarailroad.com Nick Lohman, VP/Gen. Mgr. info@alaskatraffic.com www.alaskatraffic.com

Arrangement of transportation of all types of cargo, freight-transportation services and logistics services. Scheduled LTL, TL and consolidation services via steamship and barge.

Where the road ends…

Our Work Begins

Cruz Marine LLC’s ABS Loadline Classed tugs are the only double hulled shallow draft tugs in Alaska and the Northwest. We can transport equipment, materials, and supplies to locations along the Arctic or western coasts of Alaska or inland waterways. Whether by land or water, we are a partner who can deliver what you need, when and where you need it.

Anywhere you need it. Any season of the year.

www.akbizmag.com • Alaska Business Monthly • June 2012

cruzconstruct.com Main Office (907) 746-3144 North Slope (907) 659-2866

121 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY SHIPPING LOGISTICS COMPANIES Company Company

Top Executive Top Executive

Alaska West Express

Dean C. McKenzie, Pres.

1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-339-5100 Fax: 907-339-5117

Alta Air Logistics

1407 W. 31st Ave., Suite 500 Anchorage, AK 99503 Phone: 907-771-5465 Fax: 907-771-5499

American Fast Freight Inc.

7400 45th St. Ct. E. Fife, WA 98424 Phone: 253-926-5000 Fax: 253-926-5100

American Fast Freight Inc.

3501 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-452-7129 Fax: 907-451-7103

American Fast Freight Inc.

47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646 Fax: 907-262-1925

American Fast Freight, Inc.

5025 Van Buren St. Anchorage, AK 99517 Phone: 907-248-5548 Fax: 907-243-7353

American Relocation Services

3411 Lathrop St., Suite L Fairbanks, AK 99701 Phone: 907-456-3097 Fax: 907-456-3098

American Relocation Services

5491 Electron Dr., Unit 1 Anchorage, AK 99518 Phone: 907-248-2929 Fax: 907-561-4244

Bering Marine

6441 South Airpark Pl. Anchorage, AK 99502 Phone: 907-248-7646 Fax: 907-245-1744

Bering Pacific Services Co.

7801 Schoon, Suite B Anchorage, AK 99518 Phone: 907-222-7672 Fax: 907-222-7673

Best Rate Express LLC

PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Carlile Transportation Systems

1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301

Commodity Forwarders Inc.

4000 W. 50th, Suite 1 Anchorage, AK 99502 Phone: 907-243-1144 Fax: 907-243-1149

Crowley

201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Deadhorse Aviation Center LLC

500 First St. Deadhorse, AK 99734 Phone: 907-346-3247 Fax: 907-349-1920

DHL Global Forwarding

2000 W. International Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

■ 122

AK Estab. Empls. Empls. Estab. 1978

117

2008

1984

165

1984

165

1984

165

1984

165

1988

1985

1997

J.B. West Trucking & Co. Truck: flat, step, vans, reefers and heavy haul. Rail: containers and flat cars. Air: next-day, two-day and deferred service. Marine: steamship and barge service.

1980

500

Full-service transportation company.

2003

1892

550

Fuel sales and distribution, marine services, tanker escort and spill response throughout Alaska.

1976

1970

Worldwide freight services featuring total Alaska coverage. Specializing in air cargo, trucking, express services, warehousing, storage solutions, supply chain and rail freight.

information@lynden.com www.awe.lynden.com James Armstrong, Pres. logistics@shipalta.com www.shipalta.com Tim Jacobson, CEO youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Terry Umatum, AK Mgr. Sales, Ops youtube.com/americanfastfreight www.americanfast.com Damian Naquin, Gen. Mgr. youtube.com/americanfastfreight www.americanfast.com Brady Purdue, Gen. Mgr. youtube.com/americanfastfreight www.americanfast.com Rick Gray, Pres. information@lynden.com www.bmc.lynden.com Mike Brazier, Mgr. mikeb@beringpacific.com www.beringpacific.com Young Summers, Member/Owner yksummers@qwestoffice.net www.bestrateexpress.com Linda Leary, Pres.

Business Activity Services Alaska West Express provides truckload transportation throughout the United States and Canada, specializing in your shipment to and from Alaska, where we are the leader in transporting liquid- and dry-bulk products, hazardous and non-hazardous chemicals and petroleum products. Freight forwarding and logistics. Specializing in all modes of transportation, consolidation, warehousing and project management.

pspittler@carlile.biz www.carlile.biz PJ Cranmer, Reg Ops Mgr Pac NW anc-customerservice@cfi-anc.com www.cfi-anc.com Bob Cox, VP bob.cox@crowley.com www.crowley.com Sherron Perry, Mgr. info@deadhorseaviationcenter.com deadhorseaviationcenter.com John Witte, Reg. Mgr. jane.treadway@dhl.com www.dhl-dgf.com

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY SHIPPING LOGISTICS COMPANIES Company Company

Top Executive Top Executive

Foss Maritime Co.

Gary Faber, CEO

1151 Fairview Ave. N. Seattle, WA 98119 Phone: 206-281-3800 Fax: 206-281-4702

Horizon Lines LLC

1717 Tidewater Rd. Anchorage, AK 99501-1036 Phone: 907-274-2671 Fax: 907-263-5043

Lynden Expo Air

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden International

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

Lynden Logistics

6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744

Lynden Transport Inc.

3027 Rampart Dr. Anchorage, AK 99501 Phone: 907-276-4800 Fax: 907-257-5155

Million Air Anchorage

6160 Carl Brady Dr. Anchorage, AK 99502 Phone: 907-550-8500 Fax: 907-550-8502

AK Estab. Empls. Empls. Estab. 1889

1964

285

1980

Trade show logistics.

1980

Air cargo and express-package services, nonscheduled and scheduled air transportation, air courier services, freight transportation services and local delivery services.

1984

Arrangement of freight transportation, information management and logistical services.

1954

146

Full-service, multi-mode freight transportation to, from and within Alaska.

1979

Corporate and general aviation, fixed based operation: Provide VIP services to private aircraft. Facilities consist of more than 10 acres of paved secure ramp space, four executive hangars and office space. FBO services, 24 hour operations.

info@foss.com www.foss.com Marion Davis, VP & GM, AK Div. www.horizonlines.com David Richardson, Pres.

Business Activity Services

www.akbizmag.com • Alaska Business Monthly • June 2012

123 ■

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY SHIPPING LOGISTICS COMPANIES Company Company

Top Executive Top Executive

Naniq Global Logistics

Mike Myatt, Ops Dir.

AK Estab. Empls. Empls. Estab.

Business Activity Services

2005

1950

100

Stevedore, marine logistics and operated crane services. We are also providing state of the art driven foundations with our ABI Mobile Ram Machines.

1956

325

The Northern Air Cargo family of companies offer scheduled and charter cargo services throughout Alaska, the Lower 48 and North America as well as aircraft maintenance and ground handling services.

Bill Duffy, Pres. 10104 103 Ave., Suite 1209 charters@ntcl.com Edmonton, AB T5J 0H8 Phone: (780) 441-3932 Fax: (780) 441-3934 www.ntcl.com

1934

Marine transportation, bulk cargo, dry deck cargo and related services. Fabrication services.

Olgoonik Logistics

1999

A global provider of a wide range of comprehensive, integrated program support in the areas of logistics, supply-chain management, warehousing, vehicle operations, facility maintenance, and planning for state and federal agencies.

2010

Full Service Logistics and Transportation. Scheduled Services from Seattle, WA to Port MacKenzie, AK

1961

Transports freight between the Lower 48 and Alaska. Trucking services in Alaska.

PO Box 240825 Anchorage, AK 99524 Phone: 907-345-6122 Fax: 907-345-6125

www.naniqglobal.com

North Star Terminal & Stevedore Co. Jeff Bentz, Pres. 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-263-0120 Fax: 907-272-8927

sales@northstarak.com www.northstarak.com

Northern Air Cargo

David W. Karp, Pres./CEO

3900 Old International Airport Rd. Anchorage, AK 99502 Phone: 907-243-3331 Fax: 907-249-5191

info@nac.aero www.nac.aero

NTCL

3201 C Street, Suite 700 Anchorage, AK 99503 Phone: 907-562-8706 Fax: 907-562-8751

PacArctic Logistics LLC

4300 B St., Suite 407 Anchorage, AK 99503 Phone: 907-887-4252 Fax: 907-562-5258

Pacific Alaska Freightways Inc.

431 E. 104th Ave. Anchorage, AK 99515 Phone: 907-336-2567 Fax: 907-336-1567

■ 124

Worldwide logistics, including ground, air, and ocean.

Fred Hoose, Gen. Mgr. olinfo@olgoonik.com www.olgooniklogistics.com King Hufford, Pres. KHufford@PacArctic.com www.PacArctic.com Ed Fitzgerald, CEO www.pafak.com

www.akbizmag.com • Alaska Business Monthly • June 2012

Alaska Business Monthly’s 2012 TRANSPORTATION DIRECTORY SHIPPING LOGISTICS COMPANIES AK Estab. Empls. Empls. Estab.

Company Company

Top Executive Top Executive

Pathfinder Aviation Inc.

Michael W. Fell, Pres.

PO Box 375 Homer, AK 99603 Phone: 907-226-2800 Fax: 907-226-2801

Rosie's Delivery Inc.

PO Box 112782 Anchorage, AK 99511 Phone: 907-345-4980 Fax: 907-345-8602

Span Alaska Transportation, Inc.

PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

TGI Freight

PO Box 221049 Anchorage, AK 99522 Phone: 907-522-3088 Fax: 907-562-6295

Totem Ocean Trailer Express

2511 Tidewater Rd. Anchorage, AK 99501-1044 Phone: 907-276-5868 Fax: 907-278-0461

TransGroup Worldwide Logistics

3501 Postmark Dr. Anchorage, AK 99502 Phone: 907-243-4345 Fax: 888-812-6295

Waste Management

310 K St., Suite 200 Anchorage, AK 99501 Phone: 907-264-6784 Fax: 907-264-6602

2001

1971

Courier services throughout the Anchorage area and Mat-Su Valley, air-courier assignment to outlying Alaska cities, and low-cost air freight around the world.

1978

1989

Local freight cartage, freight consolidation, logistics and hazardous material services.

1975

A privately held Alaska corporation and vessel-operating common carrier. Runs a fleet of roll-on/roll-off trailer ships between the ports of Tacoma, Wash., and Anchorage.

2011

1969

pathfinderaviation@alaska.net www.pathfinderaviation.com Julie A. Jackson, VP rosiesbilling@gmail.com rosiesdelivery.com Mike Landry, Pres. kathyL@spanalaska.com www.spanalaska.com Todd Clark, Pres.

Business Activity Services

toddc@tgifreight.com www.tgifreight.com George Lowery, AK Dir. www.totemocean.com Vanessa Keyes, Reg. Dir./AK vanessak.anc@transgroup.com www.transgroup.com Mike Holzschuh, Territory Mgr./N.Am. mholzschuh@wm.com www.wm.com

Transportation Solutions For Your Business!

Interior Alaska’s Fleet Headquarters SERVING ALASKA BUSINESS FOR 35 YEARS! Complete Line of Ford Vehicles in Stock

1625 Seekins Ford Dr. Fairbanks, Alaska 99701 (907) 459-4055

SEEKINS.com www.akbizmag.com • Alaska Business Monthly • June 2012

1000 Lake Colleen Rd. Prudhoe Bay, Alaska 99734 (907) 659-2770 125 ■

LOCAL NEWS

CAROL COMEAU’S ENDURING GIFT Endowment fund established for Alaska Youth Anchorage School District Superintendent Carol Comeau interacting with a Northstar Elementary (K-6) student prior to her May retirement. Photo courtesy of the Anchorage School District

he Carol Comeau Endowment Fund was recently established by The Alaska Community Foundation in honor of Comeau and her dedication to the youth of Alaska. Comeau retired in May after more than 40 years with the Anchorage School District. “I am very grateful to The Alaska Community Foundation for establishing this endowment fund in my honor,” Comeau says. “I know how important these small grants are to our teachers, and other educators, in enhancing their ability to provide enrichment activities for their students, as well as assisting needy students with necessities in emergencies.” The Carol Comeau Endowment Fund will benefit the Anchorage Schools Foundation, a component fund of The Alaska Community Foundation dedicated to supporting local schools. Comeau was a founding member of the Anchorage Schools Foundation Fund when it was established at ACF in 2006, and still serves on its advisory board. Find out more about the Anchorage Schools Foundation online, including how to donate at alaskaschoolsfoundation.org.

■ 126

“Donating to the Carol Comeau Fund is a way to recognize her hard work and perpetuate the strides she made working for education in Alaska,” said Candace Winkler, president and CEO of The Alaska Community Foundation. Donations to the Carol Comeau Fund will provide support for Anchorage students into perpetuity, distributing small grants to allow teachers, principals, nurses and counselors to support innovative educational projects and the emergency needs of students for food, clothing and toiletries. As Comeau is passionate about young children, the fund will also support initiatives that focus on early childhood education within the Anchorage School District. “The Anchorage Schools Foundation is guided by the idea that the people who work directly with students every day—teachers, nurses, and other school staff members—are often most in touch with the immediate needs of students,” explained Karin Wanamaker, chair of the schools foundation advisory board. “Nearly every penny

that’s donated to the fund is returned to Anchorage schools.” Grants range up to $500 and have recently been used to fund several projects, including: ■ The creation of coloring books to help English as a Second Language (ESL) students overcome fears of going to the nurses office. ■ An East High science class that built solar suitcases capable of powering a small clinic and sent them to Sudan and Liberia. ■ The purchase of a rice cooker for a classroom in which many students were coming to school hungry every day. ■ Purchasing glasses for a student whose family didn’t have the resources to replace them after they were broken. “Carol is so passionate about supporting education in Alaska that we wanted to recognize her efforts,” Winkler says, “while also giving others an opportunity to follow her lead and help support her goals for the district.” 

www.akbizmag.com • Alaska Business Monthly • June 2012

ALASKA TRENDS By Paul Davidson

Alaska Health Care Employment

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

he Alaska Department of Percent Change in Alaskan Healthcare Employment Labor and Workforce Devel2004-2011 opment keeps monthly sta7% tistics on several employment sectors; combined, these sectors make 6% up the total non-farm employment. Alaska’s health care employment, 5% with a yearly average growth of 3.52 percent between 2004 and Total 4% 2011, has seen three times greater increase than overall non-farm 3% employment (1.18 percent). Health Healthcare care makes up 9.58 percent of Alas2% ka employment with nearly twice as many jobs as natural resources1% based employment. Health care employment consists of roughly 89 0% percent resident employment rather than workers from out of state; -1% higher than many industries. 2004 2005 2006 2007 2008 2009 2010 2011 The chart shows annual health care employment growth starting at 5.86 percent in 2004, and declining until 2008, where it hits lation, Alaska’s future health care employment has a robust the lowest point in the data set, 1.09 percent. From its low in outlook. While the reason for the growth-rate decline from 2008, health care employment growth climbs to an above- 2004 to 2008 is unknown, it is interesting to note that health average rate in 2009, and remains above 4 percent for the re- care employment saw strong growth during the recession that mainder of the data-set. Due to an aging and growing popu- started in 2008 when overall employment decreased.  Source: State of Alaska Department of Labor and Workforce Development: labor.alaska.gov/research

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

www.akbizmag.com • Alaska Business Monthly • June 2012

127 ■

ALASKA TRENDS

Indicator

GENERAL Personal Income – Alaska Personal Income – United States Consumer Prices – Anchorage Consumer Prices – United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total EMPLOYMENT Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Sectorial Distribution – Alaska Total Nonfarm Goods Producing Services Providing Mining and Logging Mining Oil & Gas Construction Manufacturing Seafood Processing Trade/Transportation/Utilities Wholesale Trade Retail Trade Food & Beverage Stores General Merchandise Stores Trans/Warehouse/Utilities Air Transportation Truck Transportation Information Telecommunications Financial Activities Professional & Business Services Educational & Health Services Health Care Leisure & Hospitality Accommodation Food Services & Drinking Places Other Services Government Federal Government State Government State Education Local Government Local Education Tribal Government Labor Force Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Unemployment Rate Alaska Anchorage & Mat-Su

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Previous Report Period

Year Ago Period

Year Over Year Change

Units

Period

Latest Report Period

US $ US $ 1982-1984 = 100 1982-1984 = 100

4th Q11 4th Q11 2nd H11 2nd H11

33,342 13,137,224 202.58 226.28

33,043 13,033,756 200.28 223.60

31,760 12,701,052 195.455 218.576

4.98% 3.43% 3.64% 3.52%

Number Filed Number Filed Number Filed

February February February

77 57 10

56 40 5

77 52 17

0.00% 9.62% -41.18%

Thousands Thousands Thousands Thousands Thousands

February February February February February

334.75 186.33 43.15 34.63 35.61

334.07 186.84 42.21 34.54 35.04

330.04 184.34 42.72 34.81 33.66

1.43% 1.08% 1.00% -0.52% 5.78%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February February

317.2 39.0 278.2 16.1 15.8 13.5 11.5 11.4 8.5 59.5 6.0 33.4 6.2 9.5 20.1 5.3 3.0 6.3 4.1 14.7 27.2 46.1 32.2 28.3 5.8 18.6 10.6 85.5 16.0 26.4 8.6 43.1 25.6 3.7

309.2 36.8 272.4 15.4 15.3 12.8 11.6 9.8 7.0 59.6 5.9 33.9 6.1 9.8 19.8 5.5 3.1 6.3 4.1 14.5 25.8 45.5 31.8 27.9 5.7 18.2 10.6 82.2 15.9 24.1 6.5 42.2 25.2 3.7

315.8 39.7 276.1 15.3 15.1 12.9 12.2 12.2 8.7 60.6 5.9 34.0 6.0 9.9 20.7 5.4 3.2 6.4 4.2 15.2 25.6 43.5 31.2 28.3 6.2 18.5 11.4 85.1 16.4 26.3 8.6 42.4 25.4 3.5

0.44% -1.76% 0.76% 5.23% 4.64% 4.65% -5.74% -6.56% -2.30% -1.82% 1.69% -1.76% 3.33% -4.04% -2.90% -1.85% -6.25% -1.56% -2.38% -3.29% 6.25% 5.98% 3.21% 0.00% -6.45% 0.54% -7.02% 0.47% -2.44% 0.38% 0.00% 1.65% 0.79% 5.71%

Thousands Thousands Thousands Thousands Thousands

February February February February February February February February

363.89 200.00 46.54 37.96 39.37

361.76 200.32 45.59 37.83 38.80

360.52 199.02 46.16 38.26 37.70

0.94% 0.49% 0.83% -0.78% 4.42%

8 6.8

8 6.7

8.5 7.4

-5.88% -8.11%

Percent Percent

(revised)

www.akbizmag.com • Alaska Business Monthly • June 2012

ALASKA TRENDS Year Ago Period

Year Over Year Change

Units

Period

Latest Report Period

Percent Percent Percent Percent

February February February February

7.3 8.8 9.5 8.7

7.4 8.7 9.7 8.8

7.5 9 10.7 9.5

-2.67% -2.22% -11.21% -8.42%

Millions of Barrels Billions of Cubic Ft. $ per Barrel

16.88 9.03 119.65

18.36 10.07 111.79

17.11 11.55 96.79

-1.34% -21.84% 23.62%

Active Rigs Active Rigs $ Per Troy Oz. $ Per Troy Oz. Per Pound

February February February February February February February February February

10 1965 1,742.86 34.14 1.03

8 2003 1,656.11 30.77 0.99

7 1718 1,372.02 3077.85 1.23

42.86% 14.38% 27.03% -98.89% -16.49%

Millions of $ Millions of $ Millions of $

February February February

59.57 6.26 53.31

18.10 4.99 13.11

40.60 4.94 35.66

46.74% 26.90% 49.49%

Total Deeds

February

923

854

630

46.51%

VISITOR INDUSTRY Total Air Passenger Traffic – Anchorage Total Air Passenger Traffic – Fairbanks

Thousands Thousands

February February

NO DATA 59.70

NO DATA 62.13

297.13 64.88

NO DATA -7.99%

ALASKA PERMANENT FUND Equity Assets Net Income Net Income – Year to Date Marketable Debt Securities Real Estate Investments Preferred and Common Stock

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

February February February February February February February

41,256.90 41,873.10 201.6 1,111.3 21.4 25.00 813.1

40,076.90 40,710.90 85.4 1,341.2 123.6 37.80 1,044.9

39,654.10 40,336.30 330.4 $690.0 27.4 10.8 508.1

4.04% 3.81% -38.98% 61.06% -21.90% 131.48% 60.03%

BANKING (excludes interstate branches) Total Bank Assets – Alaska Cash & Balances Due Securities Net Loans and Leases Other Real Estate Owned Total Liabilities Total Bank Deposits – Alaska Noninterest-bearing deposits Interest-bearing deposits

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

4th Q11 4th Q11 4th Q11 4th Q11 4th Q11 4th Q11 4th Q11 4th Q11 4th Q11

2,088.25 46.12 151.97 1,119.55 6.26 1,827.29 1,783.65 550.20 1,233.44

2,105.62 49.64 156.23 1,097.05 7.05 1,847.06 1,800.05 543.72 1,256.33

2,078.40 29.07 156.42 1,150.21 15.06 1,832.10 1,786.15 470.20 1,315.95

0.47% 58.64% -2.84% -2.67% -58.41% -0.26% -0.14% 17.02% -6.27%

FOREIGN TRADE Value of the Dollar In Japanese Yen In Canadian Dollars In British Pounds In European Monetary Unit In Chinese Yuan

Yen Canadian $ Pounds Euro Yuan

February February February February February

78.39 1.00 0.63 0.76 6.30

76.96 1.02 0.64 0.78 6.31

82.61 0.99 0.62 0.73 6.58

-5.11% 0.99% 2.02% 3.22% -4.28%

Indicator

Fairbanks Southeast Gulf Coast United States PETROLEUM/MINING Crude Oil Production – Alaska Natural Gas Field Production – Alaska ANS West Cost Average Spot Price Hughes Rig Count Alaska United States Gold Prices Silver Prices Zinc Prices REAL ESTATE Anchorage Building Permit Valuations Total Residential Commercial Deeds of Trust Recorded Anchorage–Recording District

Previous Report Period (revised)

www.akbizmag.com • Alaska Business Monthly • June 2012

129 ■

Advertisers index Able Body Shop . . . . . . . . . . . . . . . . . . . .42 AES Alaska Executive Search. . . . . . . . .33 Alaska Air Cargo . . . . . . . . . . . . . . . . . .111 Alaska Air Transit . . . . . . . . . . . . . . . . . . .62 Alaska Aviation Heritage Museum. . . . . .61 Alaska Housing Finance Corporation AHFC. . . . . . . . . . . . . .131 Alaska Regional Hospital . . . . . . . . . . .101 Alaska Traffic Company . . . . . . . . . . . . .106 Alaska Trust Company. . . . . . . . . . . . . . .25 Alaska USA Federal Credit Union . . . . . .34 American Fast Freight . . . . . . . . . . . . . .124 American Hyperbaric Center. . . . . . . . .104 American Marine / PENCO . . . . . . . . . .127 Anchorage Sand & Gravel. . . . . . . . . . . .82 Arctic Office Products (Machines) . . . . . .42 Arctic Slope Telephone Association. . . . .53 AT&T Alaska. . . . . . . . . . . . . . . . . . . . . . .11 Avante Medical Center. . . . . . . . . . . . . . .58 Azimuth Adventure Photography. . . . . . .21 Bell Tech. . . . . . . . . . . . . . . . . . . . . . . . . .23 Bering Shai Rock & Gravel . . . . . . . . . . .79 Body Renewal Alaska . . . . . . . . . . . . . . .58 Bowhead Transport Company . . . . . . . .119

■ 130

Business Insurance Associates Inc. . . . .29 Calista Corporation #1. . . . . . . . . . . . . . .41 Calista Corporation #2. . . . . . . . . . . . . . .43 Canadian Mat Systems, Inc. . . . . . . . . . .74 Capture the Fun Alaska LLC . . . . . . . . . .55 Caring For Women. . . . . . . . . . . . . . . . . .59 Carlile Transportation Systems . . . . . . . .95 Central Environmental Inc. . . . . . . . . . . .45 The Children’s Lunchbox . . . . . . . . . . . . .60 Children’s Miracle Network . . . . . . . . . . .21 Chris Arend Photography. . . . . . . . . . . .130 City Electric Inc. . . . . . . . . . . . . . . . . . . . .85 Construction Machinery Industrial, LLC. . . . . . . . . . . . . . . . . . .2 Cruz Construction, Inc. . . . . . . . . . . . . .121 David Frazier & Associates . . . . . . . . . . .79 Delta Western. . . . . . . . . . . . . . . . . . . . . .99 Donlin Gold . . . . . . . . . . . . . . . . . . . . . . .29 Dowland-Bach Corp. . . . . . . . . . . . . . . . .65 ERA ALASKA. . . . . . . . . . . . . . . . . . . . . .93 ERA Helicopters. . . . . . . . . . . . . . . . . . . .99 Everts Air Cargo. . . . . . . . . . . . . . . . . . . .98 First National Bank Alaska. . . . . . . . . . . . .5 GCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37

GCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 GCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Great Originals. . . . . . . . . . . . . . . . . . . . .53 Green Star, Inc. . . . . . . . . . . . . . . . . . . . .55 Hilcorp Alaska . . . . . . . . . . . . . . . . . . . . .15 Holmes Weddle & Barcott . . . . . . . . . . . .47 Horizon Lines. . . . . . . . . . . . . . . . . . . . .117 Judy Patrick Photography . . . . . . . . . . . .43 Kendall Ford Wasilla. . . . . . . . . . . . . . . .123 Land’s End Resort . . . . . . . . . . . . . . . . . .17 Loon Point . . . . . . . . . . . . . . . . . . . . . . . .27 Lynden Inc. . . . . . . . . . . . . . . . . . . . . . .109 Medical Park Family Care, Inc. . . . . . . . .59 N C Machinery. . . . . . . . . . . . . . . . . . . . .87 New York Life . . . . . . . . . . . . . . . . . . . . . .13 North Star Behavioral Health. . . . . . . . . .57 Northern Air Cargo. . . . . . . . . . . . . . .50, 51 NTCL . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 Offshore Systems Inc. . . . . . . . . . . . . . . .69 PacArctic Logistics. . . . . . . . . . . . . . . . . .67 Pacific Alaska Freightways. . . . . . . . . . .107 Pacific Pile & Marine . . . . . . . . . . . .8, 9, 10 Paramount Supply . . . . . . . . . . . . . . . . . .55 Parker, Smith & Feek. . . . . . . . . . . . . . . .19

Pebble Partnership. . . . . . . . . . . . . . . . . .90 Pen Air . . . . . . . . . . . . . . . . . . . . . . . . . . .98 Personnel Plus. . . . . . . . . . . . . . . . . . . . .60 Polar Supply Co . . . . . . . . . . . . . . . . . . .46 Procomm Alaska . . . . . . . . . . . . . . . . . . .97 Rosie’s Delivery . . . . . . . . . . . . . . . . . . . .55 Ryan Air . . . . . . . . . . . . . . . . . . . . . . . . .113 Seekins Ford Lincoln Fleet . . . . . . . . . .125 Span Alaska Consolidators . . . . . . . . . .115 Spenard Builders Supply. . . . . . . . . . . . .77 Stellar Designs Inc. . . . . . . . . . . . . . . . . .55 Sullivan’s Steakhouse . . . . . . . . . . . . . . .91 The Growth Company . . . . . . . . . . . . . . .15 Totem Ocean Trailer Express. . . . . . . . .103 Unit Company . . . . . . . . . . . . . . . . . . . . .82 Vitus Marine LLC . . . . . . . . . . . . . . . . . . .55 Washington Crane & Hoist. . . . . . . . . . . .39 Waste Management . . . . . . . . . . . . . . . .49 Wells Fargo . . . . . . . . . . . . . . . . . . . . . .132 Workers Compensation Commission of Alaska Inc. . . . . . . . .42 XTO Energy . . . . . . . . . . . . . . . . . . . . . . .3 Yukon Equipment. . . . . . . . . . . . . . . . . . .83

www.akbizmag.com • Alaska Business Monthly • June 2012

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