June - 2013 - Alaska Business Monthly by Alaska Business

OIL INDUSTRY INVESTMENT | ANC’S 7I & 7J PROGRAMS | FINANCING COMMERCIAL REAL ESTATE

June 2013

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Alaska Develops Ports Page 96

Special Sections Building Alaska Transportation

Page 66 Page 80

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June 2013 TA BLE OF CONTENTS ABOUT THE COVER A Paciﬁc Pile & Marine crew working on Skagway’s Small Boat Harbor Surge Projection project for the Municipality of Skagway is one of the projects Will Swagel reports on in: Alaska Develops Ports Central to Local Economies (Page 96). It is part of the annual Transportation Special Section.

DEPARTMENTS From the Editor. . . . . . . . . . . . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . . . . . . . . . . 8 Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Right Moves . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Alaska This Month . . . . . . . . . . . . . . . . . . 121 Events Calendar . . . . . . . . . . . . . . . . . . . . . 124 Market Squares . . . . . . . . . . . . . . . . . . . . . 126 Alaska Trends. . . . . . . . . . . . . . . . . . . . . . . . 127 Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

Cover photo courtesy of Pacific Pile & Marine.

ARTICLES

HR MATTERS

11 | Finding the Right People Improving the efficiency of your hiring process By Kevin M. Dee

VIEW FROM THE TOP

12 | Jim Doyle, Owner/ President Weaver Brothers Inc. Compiled by Mari Gallion The M/V Taku, built in 1963, is one of the smaller ships in the ﬂeet.

COMMENTARY

14 | Three Poles: The Arctic, Antarctic, and Himalayas Connection Normative economic concepts for Alaska By Dr. Falk Huettmann & Dr. Ashok Roy

FISHERIES

18 | Making Waves Obama administration’s National Ocean Policy spawns apprehension in Alaska By Wesley Loy

ALASKA NATIVE CORPORATIONS

VISITOR INDUSTRY

FINANCIAL SERVICES

32 | Alaska Hotels Get Major Renovations Upgraded amenities charm tourists and locals alike By Susan Sommer

20 | Share and Share Alike Alaska Native Corporations pour proceeds into the future By Dimitra Lavrakas 26 | Enjoy Your Staycation Unique Alaskan experiences that require more than a long weekend to ‘do right’ By Mari Gallion

34 | Financing Commercial Real Estate in Alaska Seller’s market takes hold By Tracy Barbour

Corrections In the April issue, a WoodMaster Flex Fuel furnace shown on page 46 was misidentified as a Garn pellet and cordwood boiler system (shown on page 43). Photo courtesy of Karen Peterson

Alaska Business Monthly | June 2013

In the May issue, Shell Exploration & Production Company was inadvertently omitted from the annual Oil & Gas Directory. See below for listing.

EXPLORATION & PRODUCTION Company

Top Executive

Shell Exploration Pete Slaiby, VP Alaska & Production Co. 3601 C St., Suite 1000 Alaska@shell.com Anchorage, AK 99503 www.shell.com.us/alaska Phone: 907-770-3700 Fax: 907-646-7142

Estab. in Alaska Alaska Empls 1952

Business Activity

120 Integrated oil and gas company, international. Shell is an exploration company in Alaska’s Arctic OCS.

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Pam Wentz Vice President Johansen Branch Manager

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The building industry in Alaska faces challenges like no other in the country. From extreme weather to daunting logistics, it takes a special kind of focus, commitment and drive to build in the Last Frontier. ¶ When you’re on the go 16 hours a day, seven days a week, it’s easy to overlook details like cash management, payroll, working capital and expansion. And that’s where First National Bank Alaska can make a real diﬀerence. ¶ From a complete array of cash management tools and expertise, to fast, local decisions on loans, our friendly, experienced Alaska business specialists can help you activate a successful business strategy. Stop by one of our convenient local branches, or simply visit FNBAlaska.com.

June 2013 TA BLE OF CONTENTS special section

special section

??????????Alaska Building

?????????? Transportation

Photo courtesy of USACOE-Alaska

Loading dirt for an offsite disposal.

66 | US Army Corps of Engineers Projects Summer plans move forward despite decreased budget By Vanessa Orr

72 ARTICLES

Photo courtesy of Pacific Pile & Marine

Paciﬁc Pile & Marine at work in Skagway.

80 | STIP it Up! Planning transportation projects By Nicole A. Bonham Colby 86 | Pilot Bread and Alaska Transportation By Julie Stricker 90 | Come Fly with Me Seasonal air carriers add options and compete By Zaz Hollander

94 | Making Tracks Across Alaska Extending the Alaska Railroad’s reach By Rindi White 96 | Alaska Develops Ports Central to Local Economies By Will Swagel 102 | Alaska Business Monthly’s 2013 Transportation Directory

ARTICLES Photo courtesy of NAWIC Alaska Chapter

An Alaska NAWIC member teaches a Girl Scout about the construction industry.

72 | Building Confidence in Women Builds Alaska Celebrating 40 years By Margaret Sharpe 76 | South Anchorage Development Bustling King and C from Dimond to Klatt By Rindi White 6

Alaska Business Monthly | June 2013

TELECOM & TECHNOLOGY

40 | Is your IT In or Out? Alaska companies meet technical needs through in-house staff and IT consultants By Tracy Barbour

ENVIRONMENTAL SERVICES 44 | Tanks So Much Bulk fuel problems and solutions By Dimitra Lavrakas

OIL & GAS

50 | Keeping Oil and Gas Industry Jobs in Alaska New investment could bring even more opportunities for workers By Vanessa Orr

OIL & GAS

56 | Doyon Drills Frontier Basins NANA and Ahtna evaluating prospects By Mike Bradner

OIL & GAS

62 | Oil Industry Investment in Alaska Three major players in our past and future By Margaret Sharpe

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FROM THE EDITOR Follow us on and

Volume 29, 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. Senior 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 99503-2577 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com Advertising email: materials@akbizmag.com Pacific Northwest Advertising Sales 1-800-770-4373 ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2013, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specific permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www. thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfi lm: Alaska Business Monthly is available on microfi lm from University Microfi lms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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Mobile Agony and Ecstasy Upgrading mobile phones

y phone died a week into May. I knew it would happen, expected its demise last August under the unwritten rule of planned obsolescence when my two-year contract was up. I started checking out all the new phones when I started getting all the notices that I was eligible for a phone upgrade, and those started coming before my contract expired, in fact. However, I got caught up semantically. Upgrade meant better, I thought. I could only imagine better equated to a new and improved version of my phone, to which I was rather partial. In the cellular world I suppose I am a relatively late bloomer, having resisted until the end of summer 2010 even getting a mobile phone, and then before I became so enamored with it I had to first learn how it worked. My grandchildren eventually taught me how to use it, taking pity on me and, I suppose, despite their exasperation with my smartphone stupidity and impatience with my utter lack of intuitive technological competence. We received them all the same day; they got their phones out of the boxes and had made several calls and texts before I figured out how to turn mine on. With their expert tutelage I was soon able to make calls, text, and read the news with ease and aplomb. Not wanting another mobile learning curve, I had no desire to get a different phone when it was time to, though I started looking for a new improved version of the one I had because I thought it was something I had to do. Turns out I didn’t have to get a new phone when my contract expired or a new contract either for that matter. I kept paying my same rate and checking for a better phone for months. I read the tech blogs and learned my brand was coming out with a new model in October. New: yes. Better: not necessarily or comparatively. Jelly bean, ice cream sandwich, cutesy clever operating systems were batted around the blogs like investment advice from Warren Buffett. Eager to get upgraded I disappointedly discovered the makers of my phone’s new model had no plans to sweeten its operating system before releasing it in October or possibly November—rumors of a delayed release began filtering in. My old phone lasted me through the winter, the long and seemingly unending winter, through which I continued to check out new phones, read the blogs, and toy with the idea of a completely different operating system—maybe I should try all three: BlackBerry, Apple, Android. Still unable to make a decision I continued to use my old phone. Then, when it was time—a week into May—I knew exactly what I wanted after researching continuously online and in person for months. I went to my carrier and got a latest-greatest six hundred dollar smartphone for ninety-nine dollars because, luckily, I was still eligible for an upgrade and under no contract. Had I not spent so many hours researching and agonizing over the selection process I might not have gotten such a sweet new smartphone or saved five hundred dollars; and though I adore my new phone I can’t say what it is—I’m not one to kiss and tell. What I can tell you is the team at Alaska Business Monthly has put together another really great magazine once again. Enjoy! —Susan Harrington, Managing Editor June 2013 | Alaska Business Monthly

INSIDE ALASKA BUSINESS

Ahtna Incorporated

htna Incorporated has relocated their Anchorage office to 110 West Thirty-Eighth Avenue, Suite 100. The new location houses Ahtna Inc., their holding company Ahtna Netiye’ Inc., and several Alaska-based subsidiary companies. The company currently has more than 1,700 shareholders, the majority of whom are of Ahtna Athabascan descent, and employs more than 1,500 workers worldwide.

Alaska Communications

laska Communications was chosen by Kodiak Area Native Association to partner with Old Harbor Native Corporation, one of Kodiak Island’s largest Alaska Native Corporations, to provide broadband network to support telehealth services with the goal of improving healthcare for residents on the nation’s second-largest island, Kodiak Island. Alaska Communications will also provide ongoing support for this network. Kodiak Area Native Association is a nonprofit corporation providing health and social services for the Alaska Natives of the Koniag region. It services the City of Kodiak and six Alaska Native villages: Akhiok, Karluk, Old Harbor, Ouzinkie, Port Lions, and Larsen Bay.

A.T. Publishing Inc.

he Alaska Nurses Association has recently signed with Anchorage-based A.T. Publishing Inc. for the printing and publication of its bi-monthly statewide newsletter, “The Alaska Nurse.”

Compiled by Mari Gallion

“The Alaska Nurse” is distributed to every registered nurse and licensed practical nurse in the state of Alaska. The June 2013 edition will be the first from A.T. Publishing, keeping member dollars local rather than going to an out-of-state printer. “The Alaska Nurse,” which used to come out quarterly, will now have six editions published each year. A.T. Publishing Inc. is a family-owned and -operated business founded just prior to Alaska statehood. The company employs close to fifty employees, has four locations in Anchorage, and publishes the Eagle River Cache, Military Cache, and the Valley Cache newspapers.

Alaskans Own Community Supported Fishery

laskans Own Community Supported Fishery has come to Anchorage. Modeled after community supported agriculture programs that deliver fresh produce from local farmers, community supported fisheries offer deliveries of seafood from community-based fishermen. Alaskans Own began in Sitka in 2010, started delivering in Juneau the following year, and is the state’s first and only multi-species community supported fishery. Profits from the community supported fishery are returned to fishing communities through Alaska Sustainable Fisheries Trust programs. Subscribers can choose to receive four or six monthly deliveries and twenty or sixty pounds per season. The seasonal selection of seafood includes a

variety of carefully prepared individual portions of black cod, halibut, king and coho salmon, rockfish, and lingcod.

Bristol Bay Resource Solutions LLC

newly formed subsidiary of Bristol Bay Native Corporation, the Alaska Native regional corporation for the Bristol Bay area, Bristol Bay Resource Solutions LLC (BBRS) is a shared services company that brings together accounting, contracts administration, corporate communications, information technology, and human resources. BBRS officially began operations March 25. BBRS will provide services to the Bristol Bay Native Corporation subsidiaries in the construction and tourism industries, and is set to expand its customer base to outside clients in the future.

Alyeska Resort

lyeska Resort announces the construction for replacement of the existing Chair 6 with the installation of a new high-speed detachable quad. Construction and installation of the chairlift by Doppelmayr USA will continue through October 31 at an estimated cost of $6 million. The new Chair 6 will utilize the existing alignment, and the necessary ground work for the chairlift installation includes terrain re-grading for both top and bottom lift terminals, removal of existing lift towers, and extensive electrical and utility work, as well as overall summer road improvements in order to accommodate the heavy machinery need-

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

www.pacificpile.com I (907) 276-3878 276-3873 8

Alaska Business Monthly | June 2013

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

INSIDE ALASKA BUSINESS ed to install the new chairlift. The project also includes installing a new weather station at the top, upgrading utilities, and installing natural gas. Certain areas of the mountain will be closed intermittently to hiking, biking, and other traffic during the summer season.

Lynden

ynden, a family of freight transportation companies serving primarily Alaska and the Pacific Northwest, has entered into a purchase agreement to buy Northland Services Inc., a tug and barge carrier providing service between Seattle, Alaska, and Hawaii. The proposed transaction is subject to regulatory review and other terms that, if completed, would likely result in closing in late 2013. Lynden’s Alaska Marine Lines also provides tug and barge transportation services between Seattle and Southeast and Southcentral Alaska. Northland will be an independent operating company within the Lynden family of companies. The current Northland management team would stay in place.

Delta Western

he Port of Anchorage and Delta Western Inc. signed a twenty year land lease for a new bulk fuel facility on two and a half acres at the Port of Anchorage. This marks the first new long term lease at the Port of Anchorage in more than twenty years. The deal has been more than a year in the making and represents an increase in fuel services offered by the private sector at the Port. Delta Western Inc. plans to build a fa-

Compiled by Mari Gallion

cility with a capacity of 360,000 barrels of petroleum products. Delta Western Inc. has been serving Alaskans since 1985 as an independent distributor of petroleum products and lubricants, and offers direct delivery of fuel and lubricants to many Alaska towns and villages, marine vessels, airports, logging and mining facilities, and construction operations. The Port of Anchorage is an enterprise fund of the Municipality of Anchorage. Opened in 1961, the Port of Anchorage has served as Alaska’s major port of entry for more than fift y years. The Port of Anchorage serves as the first point of entry for 90 percent of the consumer goods for 85 percent of Alaska.

Zensor

he University of Alaska Anchorage launched its first ever startup company, Zensor. The company was established in February 2013 by University of Alaska Anchorage Vice Provost for Research and Graduate Studies Dr. Helena Wisniewski and faculty inventor Dr. John Lund, a University of Alaska Anchorage electrical engineering professor. Zensor LLC, a Seawolf Holdings company, offers a new generation of wireless sensors for use in remote monitoring, asset management, surveillance, and security. The long-lasting sensors—boasting a fifty-plus year lifespan—present several advantages over current competitors on the market: no batteries required, effective with a small power source, maintenance free, low cost, and more. The idea for Zensor came from Professor Lund’s observation of remote monitoring needs for the maintenance

and management of assets in the harsh Arctic environment. The small sensors are filled with tiny circuits that can be customized to detect humidity, water flow, temperature, tilt, sound, and a number of other useful criteria based on the customer’s needs.

Challenger Learning Center of Alaska

he Challenger Learning Center of Alaska was awarded a grant from the Rasmuson Foundation in the amount of $15,552 to fund technology upgrades. The upgrades will be to the sound, video, and presentation equipment in the Aurora Borealis room, the centers largest community space. The facility is a popular venue for events large and small; from weddings to city hall meetings. Challenger Learning Center of Alaska offers numerous facility rental options for groups upwards of two hundred. The community now has access to a facility that offers new and upcoming presentation equipment and will help the Challenger halt the decline in an important revenue stream, which enhances the education in science, technology, engineering, and mathematics state-wide; opening up career opportunities for the emerging workforce with sophisticated skills in the STEM-based disciplines.

Storyknife Retreat

uthor of the Kate Shugak series of mystery novels and Homer resident Dana Stabenow announces the launch of her campaign to raise $1 million to build Alaska’s only retreat for

Your Project, Our Responsibility. 24/7 Service

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

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

From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 June 2013 | Alaska Business Monthly

INSIDE ALASKA BUSINESS female writers, Storyknife Writers Retreat. Storyknife will be only the second residency of its kind in the world. To kick off the campaign Stabenow launched a crowd-sourced funding round on Storyknife’s website, storyknife.org, and on her fan sites. The organization is accepting donations of all denominations. The $1 million fundraising campaign is the first phase in a much larger effort to raise a total of $21 million to cover the costs of developing the property and ensuring its continuing legacy through a $20 million endowment. Located just outside Homer, the Storyknife Writers Retreat will boast six private cabins and a main house dotted around a six-acre property. Sustainability and supporting local economies will be an ongoing focus for the Retreat.

UIC BowheadCrowley LLC

owhead Transport Company LLC and Crowley Marine Services Inc. have formed a joint venture to provide marine services in Alaska’s Arctic. The new Alaska-based joint venture will operate under the name UIC BowheadCrowley LLC. Bowhead Transport is a wholly-owned subsidiary of Ukpeaġvik Iñupiat Corporation, the Alaska Native Village Corporation of Barrow, Alaska. Both companies have longstanding histories of providing services in the Arctic with Bowhead Transport Company providing common carriage service for thirty years to the coastal communities of Alaska and Crowley providing marine transportation, energy support, and petroleum distribution services for more than sixty years throughout the state.

Compiled by Mari Gallion

UIC Construction LLC

he North Slope Borough announces that UIC Construction LLC was awarded a $7.1 million contract to perform major renovations to the Kali K-12 School in Point Lay. The work will include replacement of worn interior exterior finishes, code-compliance upgrades, replacement of the existing swimming pool, and mechanical and electrical upgrades. Pre-construction work has begun on the 40,730-square-foot school, which will be completed in three phases, allowing school activities to continue throughout the entire renovation project. The scheduled completion date is October 31. The project will provide local employment opportunities for Ukpeaġvik Iñupiat Corporation shareholders.

Blue Mussel Aesthetics Medical Spa

lue Mussel Aesthetics Medical Spa, located at 800 Glacier Avenue, Suite 103 in Juneau, will be the first laser center to own the newly introduced Elite (+) system by Cynosure Inc. The Elite (+) is a high powered aesthetic laser workstation that combines two clinically proven wavelengths in one system for customized hair removal and anti-aging treatments on patients of any skin type. In addition to providing laser treatments, Blue Mussels Aesthetics provides a variety of aesthetic treatments.

Anchorage Media Group

First National Bank Alaska

irst National Bank Alaska been named one of America’s Top 100 Most Trustworthy Companies in an annual survey commissioned by Forbes. First National made the list for the second consecutive year and is the only Alaska business among the top 100. In order to identify America’s Top 100 companies, Forbes used the GMI Ratings system. The GMI ratings provided Forbes with quantitative and qualitative analysis, which looks beyond raw data of companies’ income statements and balance sheets. The GMI found that the Top 100 Most Trustworthy Companies demonstrated transparent and conservative accounting practices and solid corporate governance and management.

ne of Anchorage’s earliest radio stations, KHAR 590 AM, debuted CBS Sports Radio on May 1. This 24-hour, spoken word format features top national hosts including “sports smack-talk juggernaut” Jim Rome, one of the genre’s most listened to hosts. All programs air live, allowing local Alaskan callers to dial in and be heard nationwide. Sports Radio 590 AM is simulcast in Anchorage on 96.7 FM and will continue to feature local sporting events such as high school football, World Championship Sled Dog Races, and Glacier Pilots baseball. Sports radio is the fastest growing format in the United States having doubled its measured audience over the past five years. It targets male listeners aged eighteen to fift y-four, and offers advertisers the benefit of a foreground, topical and actively listened to radio format. 

• General Contracting • Marine Infrastructure • Design Build

Dutch Harbor - Unalaska, Alaska

www.pacificpile.com I (907) 276-3873 10

Alaska Business Monthly | June 2013

620B East Whitney Road I Anchorage, AK 99501 www.akbizmag.com

HR Matters

By Kevin M. Dee

Finding the Right People Improving the efﬁciency of your hiring process

ecently we received an email from friends who spend the winter working in Antarctica and the summer in Alaska running a seasonal guiding business. Their email read, “hope to see you before summer sucks us all in.” It really brought home the explosion of activity and wondrousness that is spring, summer, and fall for most Alaskans. There’s just so much to do and only twenty hours a day of sunlight to get it done. For many businesses this is a time of ramping up for the summer with new seasonal hires and the busiest time of the year by far. Hiring the right people that will help you get your job done and do credit to your company can be a mammoth task. There are several options for making seasonal hiring less chaotic and painful and improving the efficiency of your hiring process.

Is your process the best it could be? The first and most important thing to do is to map out the workflow process you currently use for seasonal hiring. Mapping out the sources of your seasonal hires identifies ways for you to leverage your recruiting activities. It will also help you identify chokepoints where you are inefficient in your processing of potential hires and in bringing people online. For example, if it takes you five days to process applications, and another seven days before interviews happen, and another ten days before an offer is made, this may be too slow. The amount of time taken from receiving an application until a person starts work is a critical metric for seasonal hiring. If it’s too slow, your workforce will not be ready when you need it most. By mapping out the hiring process visually, everyone can get on the same page as far as how much time it takes to process, interview, ofwww.akbizmag.com

Hiring the right people that will help you get your job done and do credit to your company can be a mammoth task. fer the job, and orient a new employee. Efficiencies and clear expectations can then be driven into the hiring process.

Finding the Right People Some managers take a Forrest Gump attitude toward seasonal hiring. They see applicants “like a box of chocolates, you never know what you’re gonna get.” This doesn’t have to be the case. Managers generally know the type of person they want working for them. With targeted recruiting that focuses on where similar people hang out, a better quality of applicant can be achieved. For example, a rural health clinic was having difficulty recruiting professional people that wanted to live in rural Alaska— despite having a higher pay scale than elsewhere. They were getting applicants, but none would stick around for the long term. A simple shift in advertising brought more qualified, “better fit” applicants. Instead of professional trade magazines, where they had had mixed success, they started recruiting in hunting and fishing and lifestyle magazines that represented Alaska’s lifestyle. Hire for Fit, Train for Skill Lots of people lie and exaggerate on their applications and/or resumes. It’s human nature for applicants to want to impress someone who may hire them. Judging who a person says they are as opposed to how they truly are is a difficult task. Background checks and screening for fit can mitigate the bad players showing up as employees. Background checks are becoming more the norm to weed out problem applicants, but it’s not enough.

Screening for fit in a cost-effective and efficient manner goes a long way to determine if a person will gel within your company. We have found that Hogan assessments can accurately and affordably determine a person’s personality and fit for a job through an online assessment with instant results (hoganassessments. com). Personality assessments are used in some of the largest companies in the world as a pre-hire tool that is added into the hiring process as one part of the screening. You can save yourself a lot of headaches by determining if a candidate will fit into your workgroup up front—rather than in the middle of an already incredibly busy summer.

Start to Finish When you are looking to hire, either seasonally or long term, it’s worth taking a look at the process from start to finish. It benefits your business and can set you up with employees who can get the job done.  Kevin M. Dee has a master’s degree from Vanderbilt University and is the president of KMD Services & Consulting. He has more than twenty-eight years of experience providing leadership development, organizational development, and human resources services in Alaska and internationally. Contact him at mail@kmdconsulting.biz. June 2013 | Alaska Business Monthly

View from the Top

Compiled by Mari Gallion

Jim Doyle, Owner & President Weaver Brothers Inc.

s a teenager, Jim Doyle immediately knew he wanted to be a truck driver when he saw a tractor trailer drive by while working on his father’s ranch in Whitehall, Montana. He had been driving the family car around the fields since he was eleven, and by age fifteen, he was driving his father’s two-ton truck ten miles into town to deliver sugar beets. He dreamed not only of driving trucks, but also owning his own trucking company. In 1957, Doyle left Montana for Alaska, with the intention of relocating to a place where he could realize his dreams of owning a trucking company. In 1962 he founded Doyle’s Fuel Service, which is still in business today. In the early sixties, he bought his first Kenworth, and named the truck “Dream Come True,” which is currently emblazoned on the driver’s side door. Doyle purchased Weaver Brothers in 1978. Today, Doyle continues to foster Weaver Brothers’ vision of providing the best transportation services in the state to customers in construction, energy, mining, retail and wholesale, warehouse, and government industries. ALASKA OR BUST: I have lived in Alaska for fift y-six years. I was in school and did a stint in the Navy before coming to Alaska. Moving to Alaska has given me unusual and unexpected success. My upbringing has provided me with special skills such as work ethic, family values, and honesty. Some important advice that I would offer for business owners is to be honest, be courteous, but most important—do what you like to do. GRADUAL GROWTH: The company has evolved over the years as it has grown from just me to 150 employees. Some new services being offered that weren’t offered before 1978 are a complete Winch Truck Division of two 200, 30 Cement Trailers, and 40 Petroleum Tankers. Since purchasing Weaver Brothers, I have expanded my equipment units from 25 to 780. KINDNESS RETURNS: Years ago, one of my employees got hurt in an airplane accident and I found out that my insurance carrier had not bought workers compensation insurance for me even though I had proof of a canceled check that I had purchased workers compensation insurance from the carrier. So, out of my pocket I had to start paying wages and hospital bills, and after a few months I was running out of 12

Alaska Business Monthly | June 2013

money, going broke, and felt that I couldn’t keep operating. At that time I went to my four employees, Clyde Smith, Dud Kirk, Bob Downs, and Dave McCloud, and told them that I didn’t believe I could keep operating and that they should look for other employment. A couple of days later they came to me, and unknown to me, they got together and decided amongst themselves that they could work two months for free if I thought it would help and I could keep in operation. As it turned out, I was able to keep operating and they didn’t have to wait for their money. But, the thing of it is, where are you going to find employees like that? Unreal. A STRONG TEAM: The key players in the business are the terminal managers. Jim Boatright is the terminal manager for the Kenai terminal, AB Brown is the terminal manager for the Anchorage terminal, and Tim Koerber is the terminal manager for the Fairbanks terminal. I also have family members who are currently working at Weaver Brothers. My son, Jimmy Doyle, is half owner and is the vice president. Jimmy’s wife Sharon Doyle is the Anchorage office manager. My daughter, Shari Doyle, is the Kenai office manager. I have one granddaughter who works in the Anchorage office. 

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COMMENTARY

Three Poles: The Arctic, Antarctic, and Himalayas Connection Normative economic concepts for Alaska Commentary by Dr. Falk Huettmann & Dr. Ashok Roy The views expressed herein are the authors’ own and not those of the University of Alaska.

“

he real voyage of discovery does not consist in seeking new landscapes, but in having new eyes.” —Marcel Proust

The Arctic, the Antarctic, and the Hindu Kush-Himalayas/Tibetan Plateau form a vortex of remote terrains consisting of rock, snow, glaciers, low temperatures, and ice. The icy deserts and vast wilderness of this trio of poles are similar in that they have a profound impact on the earth’s climate as they act as cooling chambers; are home to several unique species such as the Arctic polar bear, the Himalayan snow leopard, and the Antarctic emperor penguin; face similar ecological challenges; shelter the planet’s primary water and ice resources impacting oceans, coastlines, and water-tables; and are fragile, specialized ecosystems. While the Arctic is an ocean basin surrounded by continents, the Antarctic is a continent surrounded by ocean, and the Himalayas comprise the highest and youngest mountain belt. Above fifteen thousand feet altitude, the conditions in the subnival Himalayas resemble the Arctic and Antarctic polar regions. Microbial biomass levels in the dry areas of the Himalayas are as low as those of the Dry Valleys of the Antarctic, and they both 14

Alaska Business Monthly | June 2013

contain the same one of the dominant algal clades. Although at first glance the regions differ the time has come to view the three poles holistically as they also demonstrate remarkable similarities of microbial life in their arid soils. Oil and gas explorations across Alaska, Russia, Greenland, and Norway involve similar challenges, business concepts, and often the same companies—Royal Dutch Shell, BP, Exxon Mobil, Schlumberger. The geopolitical relevance of the Arctic is overwhelmingly economic in nature with around 22 percent of the earth’s remaining supplies of oil and gas. The Antarctic is a valuable region for research, and the Himalayas regions have significant political and military relevance. Moreover, the workforce skill sets required in cold, remote, and field science environments are similar for all three poles. For example, many workers move between work at Toolik Lake in the Arctic and the Antarctic depending on the season; scientists working in the Svalbard archipelago in the Arctic are regularly hired in New Zealand or Australia to work in the Antarctic. Another example of the interconnectedness of the poles is the impact of the Asian brown cloud on Alaska’s air quality. Additionally, the three poles are connected and important for many long-

route migratory birds: The Arctic tern flies twelve thousand miles from its Arctic breeding grounds to the Antarctic and back again each year; raptor migration takes place between the paleoArctic and the Himalayas. Commercial shipping and resource extraction also bind the Arctic and the Antarctic. In both of these poles advances in fishing technology have facilitated the exploitation of fishing in deeper waters than before with such species as the Antarctic toothfish, Antarctic cod, salmon, and whitefish. Interwww.akbizmag.com

A climber walks toward the sun on a Mount Everest expedition in Nepal near Lhotse Peak in the Himalyas. © Scott Darsney/ AlaskaStock.com

estingly, the Antarctic Treaty prohibits, at present, terrestrial extraction in the Antarctic. However, in the years ahead, much discussion is expected regarding the use and “mining” of Antarctica’s terrestrial resources. Due to the economic rise of China and India—who share the third pole—there is increasing trade with the Arctic and interest in the sea routes in the Arctic. One spinoff is the increase in cargo routes and air traffic through Anchorage connecting the United States with Asia. From a wider perspective, new pipelines and www.akbizmag.com

Additionally, another common thread that runs through the three poles is eco-tourism as a result of their biodiversity of flora and fauna, and vast geographic mass of snow-capped mountains and glaciers. The third pole, with its glacial melt, supports ten major river basins, including the Ganges, Indus, Brahmaputra, Mekong, Yangtse, Yellow River, and others. Only the North Pole region can impress equally with its polar bears, huge auk colonies, bowhead whales known to live more than 180 years, caribou conducting one of the largest animal migrations on Earth, and the world’s biggest national park in northeast Greenland. June 2013 | Alaska Business Monthly

LNG projects in Asia connect to markets and resources in the poles. The trans-Siberian railway connects, for example, eastern Siberia to China and Mongolia. As crude oil markets are international, Kazakhstan, with its huge oil reserves, is developing pipelines to meet demands in China. Due to the high mountain area where Nepal (with no petroleum resources) is located, they must have their oil imported from India. It is worth noting that the Tibetan Plateau alone at the third pole contains 36,800 glaciers and has the largest mass of cyrosperic components outside the Arctic and the Antarctic. Additionally, another common thread that runs through the three poles is eco-tourism as a result of their biodiversity of flora and fauna, and vast geographic mass of snow-capped mountains and glaciers. The third pole, with its glacial melt, supports ten major river basins, including the Ganges, Indus, Brahmaputra, Mekong, Yangtse, Yellow River, and others. Only the North Pole region can impress equally with its polar bears, huge auk colonies, bowhead whales known to live more than 180 years, caribou conducting one of the largest animal migrations on Earth, and the world’s biggest national park in northeast Greenland. Besides economic and cultural threads, complex geopolitical threads also intertwine the three poles. Some of the world’s conflict pressure points reside in the third pole (Tibet, the Maoist insurgency in Nepal, and political/military power equilibrium kept in balance by nations like India, China, Russia and the U.S.). One more commonality among the three poles is that many glaciers are now in retreat as a result of global warming with profound and lasting impacts on the hydrological regimes of the river basins as well as reduced flows. All three poles face significant threats from climate change. The American Meteorological Society forecasts a 90 percent probability that global temperatures will rise by thirteen degrees Fahrenheit in this century, with even greater increases at the poles. This will almost certainly trigger rising sea levels, extreme weather patterns, water shortages, and even conflicts. Already, drinking water is exported from Ne16

Alaska Business Monthly | June 2013

Apart from the commonality of natural resource exploitation among the three poles, is the common struggle with urbanization (Lhasa and Kathmandu in the third pole already have millions of inhabitants each). In contrast to the Arctic and Antarctic polar regions, the Himalayas have significant human population as well as several microclimatic zones within the different altitudinal ranges. pal (at the third pole) to South Korea, and over-populated (India, China) and often volatile nations (Bangladesh, Afghanistan, Myanmar) rely on freshwater supply from the third pole. Recent studies have confirmed that climate change is happening in the cryosphere (the Arctic, Himalayas, and Antarctic) faster and with more visible impact than anywhere else on earth. At the three poles, permafrost, ice, and glacial ice are melting, releasing greenhouse gases and making it increasingly difficult for many species to adapt for survival, such as walrus, Arctic fox, emperor penguin, and snow leopard to name a few. Apart from the commonality of natural resource exploitation among the three poles, is the common struggle with urbanization (Lhasa and Kathmandu in the third pole already have millions of inhabitants each). In contrast to the Arctic and Antarctic polar regions, the Himalayas have significant human population as well as several microclimatic zones within the different altitudinal ranges. The cultural dimensions, including hundreds of minorities, such as the Lachenpas, with their languages and dialects and three of world’s largest religions—Hinduism, Buddhism, Zen—of the third pole are more profound than that of the circumpolar north. However, new roads and hubs for ships and planes are being built and developed in Iceland and Kamchatka in the circumpolar north; and www.akbizmag.com

Antarctica now has regular flight services and airports with the discussion continuing to include the building of hotels. According to the United Nations Environment Programme/Global Resource Information Database-Arendal outlook, economic growth and industrial development are forecasted for the North Pole in the next fift y years and even include the sea floor. The challenges (biomass heating and cooking, agricultural burning) and similarities (cross-fertilization of technologies to decrease carbon emission from stoves used for heating in the Arctic and cooking in the Himalayas) between the Arctic and the Himalayas are strikingly similar despite their geographic differences. Thus far, the sweeping scale and scope of commonalities among the three poles have not been addressed in Alaska or, for that matter, more globally. We are at a crossroads on the path to a more holistic understanding of our common challenges and potential. It is our fervent hope that this article will help launch that conversation at a public policy level, on a more immediate basis,

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yielding new insights into the cold, dry limits to life on earth. William Blake wrote that a tree moves some men to tears, but for others is merely “a green thing that stands in the way.” Similarly, for many there are two poles; but for some there are three poles which are

so lovely, so inviting, and have so much in common in terms of their extreme physical ecosystems. The time has come to move this discussion on the spatial, temporal, and biological connections among the three poles from poetry to prose. 

Dr. Ashok K. Roy is the Vice President for Finance & Administration/ Chief Financial Officer for the University of Alaska system and Associate Professor of Business Administration at UAF. Dr. Roy has significant experience, at senior management levels, at three other large universities, local government, and in the private sector. Dr. Roy holds six university degrees and five professional certifications, and has authored seventy publications in academic and trade journals. In

recognition of his public service, the Governor of Tennessee bestowed on Dr. Roy the highest civilian award of the state, an honoriﬁc Colonel. Dr. Falk Huettmann is Associate Professor at the Institute of Arctic Biology in the Department of Biology & Wildlife at the University of Alaska in Fairbanks. Dr. Huettmann is a wildlife ecologist and the editor of “Protection of the Three Poles” published by Springer, Japan.

June 2013 | Alaska Business Monthly

FISHERIES

Making Waves

The U.S. Coast Guard is among twentyseven federal departments, agencies, and ofﬁces holding membership in the National Ocean Council.

Obama administration’s National Ocean Policy spawns apprehension in Alaska

U.S. Coast Guard

By Wesley Loy

laska is the only state that borders two oceans, the Pacific and the Arctic. It’s understandable, then, that Alaskans are keenly interested in an emerging Obama administration initiative known as the National Ocean Policy. While the policy has supporters, it also has generated a tide of skepticism from elected officials as well as industry players who fear it could mean new layers of bureaucracy as well as “zoning” of the oceans. Administration officials insist the policy is meant to better coordinate the many federal agencies and laws having some say over the seas. It will be good for business, they say. On April 16, the administration rolled out the final implementation plan for the National Ocean Policy. The plan was developed over two years, with extensive input from national, regional, and local stakeholders, officials say. To some degree, it appears the administration heeded concerns Alaskans raised. U.S. Senator Mark Begich, D-AK, had big problems with an earlier draft of the plan. The final version, he says, is shorter and more focused, and specifies that regional marine planning bodies called for under the plan will be inclusive but voluntary. That means Alaska or other states can opt out if they want, says Begich,

Alaska Business Monthly | June 2013

who chairs the Senate Commerce Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard. “We asked the Obama administration to go back to the drawing board to revise and simplify their top-down approach,” Begich says. “I appreciate the administration’s willingness to listen to my concerns and urge Alaskans to look closely at this revised plan to see if it works for them. If not, they now have options.” Other members of Congress, however, remain wary of the policy. The critics include U.S. Representative Doc Hastings, R-WA, chairman of the House Natural Resources Committee. “Over the past two years, the Obama Administration has repeatedly limited public transparency and frustrated attempts to obtain information about the cost, legal authority, activities, and staffing involved with developing and implementing regional ocean zoning plans and other parts of the National Ocean Policy,” Hastings wrote in an April 19 letter to administration officials. “The Administration’s final plan for implementing the National Ocean Policy ... continues this pattern of secrecy and reaffirms

the Administration’s sweeping, unilateral expansion of federal bureaucracy through increased regulation of economic and recreational activities affecting the oceans, even those occurring far inland.”

Landmark Executive Order The policy effort began in earnest with President Obama’s July 19, 2010, executive order on “stewardship of the ocean, our coasts, and the Great Lakes.” The order established a national policy on enhancing ocean sustainability and coastal economies, responding to climate change, and coordinating national security and foreign policy interests. It also provided for “the development of coastal and marine spatial plans.” To implement the new National Ocean Policy, the executive order established a National Ocean Council. The council’s twenty-seven members include the Commerce, Interior, Defense, and State departments, the National Oceanic and Atmospheric Administration, the Environmental Protection Agency, the Federal Energy Regulatory Commission, the U.S. Coast Guard, and the U.S. Army Corps of Engineers. (whitehouse. www.akbizmag.com

gov/administration/eop/oceans) It was the council that developed the implementation plan, a thirty-page document that lays out a broad strategy for ocean conservation, science, and economic development. The plan notes that “a growing population of ocean users is increasingly competing for ocean space both for established uses such as fishing, shipping, military activities, and conventional energy development, and for emerging uses such as renewable energy development and aquaculture. This competition creates conflicts between users and presents new challenges for decision-makers.” An appendix to the implementation plan lists dozens of specific actions the federal government intends to take in coming years. The document devotes considerable attention to the Arctic. The plan cites a dramatic decrease in sea ice, which could open Arctic routes for cargo ships and cruise liners. Federal agencies will work to improve Arctic communications systems “to allow vessels, aircraft, and shore stations to effectively communicate with each other and to receive information such as realtime weather and sea ice forecasts that will significantly decrease the risk of loss of life at sea or damage to property or the marine environment,” the plan says. Agencies also will work to “better quantify the rates of sea ice melt and regrowth,” and to update nautical charts. Among the numerous specific actions in the appendix is developing a plan to address logistical issues with a large-scale oil spill response in the Arctic during any season. Such issues include housing and feeding workers, staging and deploying equipment, and managing waste.

Range of Concerns Raised In drafting the implementation plan, the National Ocean Council heard from people in some of Alaska’s most important industries, including oil and gas and commercial fishing. The Alaska Oil and Gas Association (AOGA), whose membership includes BP, ExxonMobil, and Royal Dutch Shell, said in a March 28, 2012, comment letter that its primary concern was over coastal and marine spatial planning. Such planning, AOGA said, raises potential for “exclusionary zoning of Alaska’s www.akbizmag.com

oceans and coastline and additional layers of bureaucracy for project planning and development purposes, and thus, increased project delay, costs and uncertainty.” AOGA further said it was concerned the National Ocean Policy, particularly spatial planning, could be “used as a tool for litigation,” and could hinder efforts to develop the estimated 27 billion barrels of oil and 132 trillion cubic feet of natural gas on Alaska’s vast outer continental shelf. The Resource Development Council for Alaska, which represents the oil and gas, mining, fishing, tourism, and other industries, questioned how the National Ocean Policy could proceed without congressional authorization. Alaska Governor Sean Parnell, a Republican, also raised concerns with the National Ocean Policy. The state’s coastal and marine resources already are well-regulated and protected, and the Lower 48 drivers for marine spatial planning are “largely absent in Alaska,” wrote Alaska Fish and Game Commissioner Cora Campbell. The North Pacific Fishery Management Council is watching the National Ocean Policy closely, Executive Director Chris Oliver said in a recent interview. The Anchorage-based council, one of eight around the country, works with NOAA to manage fish harvests off Alaska worth billions of dollars. It has eleven voting members from Alaska, Washington, and Oregon, drawn from government, the seafood industry, and other sectors. One concern, Oliver said, is whether implementation of the National Ocean Policy might drain away NOAA resources, potentially to the detriment of fishery stock assessments. Another worry is whether the regional marine planning bodies established under the policy could somehow supersede the fishery management councils.

Voicing Support and Allaying Fears But the National Ocean Policy definitely has fans, including many environmental groups. “This plan provides a recipe for smart ocean management that could set our oceans on track to long-term health,” wrote Sarah Chasis, a senior attorney with the Natural Resources Defense Council. “With so many American jobs and communities

dependent on healthy ocean resources, it couldn’t come at a more critical time.” The implementation plan, she said, offers a list of specific actions the federal government will take on habitat protection, water quality, pollution, and other threats such as ocean acidification and rising sea levels. The Obama administration says its plan will, among other things, improve federal leasing and permitting processes to save time and money for oceanbased industries and taxpayers. The administration further says the policy does not create new regulations or direct agencies to divert funds from existing programs. As for regional marine planning bodies, these are not regulatory bodies and will have “no independent legal authority to regulate,” the plan says. Existing authorities will continue to regulate all activities. For example, fishery management will stay with the fishery management councils. The president’s top environmental adviser, Nancy Sutley, testified April 18 before a House Natural Resources subcommittee. She co-chairs the National Ocean Council. Sutley said the National Ocean Policy provides a framework for the twenty-seven federal departments, agencies, and offices involved with oceans to work better together and “avoid conflicts that often delay or derail projects that support the economy and coastal communities.” The policy is about “getting agencies out of their silos,” cutting red tape, and collaborating with regions and communities on their priorities, Sutley said, according to her written testimony. “It is not an attempt to zone the oceans or regulate inland activities,” she said. She emphasized that marine planning efforts are voluntary, saying marine planning bodies will be established only in regions that want them. Reportedly, marine planning bodies have begun to take shape in other parts of the country. None has formed in Alaska. Should a region choose not to participate in a planning body, the implementation plan says, federal agencies will “identify and address priority science, information, and ocean management issues.”  Wesley Loy is a journalist living in Anchorage. June 2013 | Alaska Business Monthly

ALASKA NATIVE CORPORATIONS

Mikki Foster and Kevin McNeal are two of the more than 573 NANA shareholders who work at Red Dog Mine. 20

Alaska Business Monthly | June 2013

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Share and Share Alike Alaska Native Corporations pour proceeds into the future By Dimitra Lavrakas

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he 1971 Alaska Native Claims Settlement Act (ANCSA) catapulted Alaska Natives squarely into the twentieth century world of business. The twelve regional corporations based in the state have made good use of the up to forty four million acres of land and the $963 million paid to them by developing their land, diversifying their corporate interests, and buoying up their people’s lives, language, and culture through significant programs their shareholders can access. Section 7 (i) of ANCSA directs that 70 percent of all revenues received by each regional corporation from the timber resources and subsurface estates are to be divided annually among all twelve regional corporations. The landless 13th Regional Corporation does not receive Section 7 (i) money because it has no resource money to share. “A great deal of litigation among the twelve regional corporations occurred over this section,” writes Paul Ongtooguk in his book The Annotated ANCSA: How the Alaska Native Claims Settlement Act Came About. “Legal fees costing millions of dollars were spent to decide what Section 7 (i) intended and how to implement it. “When the fruitlessness and expense of such legal action became apparent, Native corporation leaders held a series

June 2013 | Alaska Business Monthly

Brianna Cannon Corporate Communications Specialist Cook Inlet Region, Inc.

annon is originally from Carlsbad, New Mexico. “My father’s mother is Agnes Kiyutelluk Magby from Shishmaref — both are original CIRI shareholders,” Cannon says. Cook Inlet Region, Inc. helped with her education through “scholarships, grants, dividends … I knew in first grade that I wanted to go to college—that in order to succeed I’d have to do the work. Yet it was CIRI’s support through dividends and the CIRI Foundation’s scholarships and grants that made it financially possible. Their moral and professional support in believing in my potential and encouraging results helped motivate me and continues to motivate me. However, my belief in responsibility to provide and contribute is what sealed the deal each step of the way.” Cannon graduated in August 2012 from the University of Alaska Fairbanks (3.9 GPA) with a Bachelor of Arts in Rural Development with an Applied Concentration in Tribal and Local Government Administration. Her other education includes: a 2010 Foraker Leadership Summit, Anchorage, Alaska; a 2006 Associates of Arts & Certificate of Applied Ethics, University of Alaska Anchorage (3.38 GPA); and in 1999 a High School Diploma, Carlsbad Senior High School, Carlsbad New Mexico (3.23 GPA). She was hired by CIRI in July 2012 in a field related to her major. Cannon would recommend a similar path of education for other CIRI share holders. “I strongly encourage others to follow my path but one designed by them for their own unique needs that will be fulfilling to them and their family,” she says. “One step at a time, focused in a field of study you are passionate about and with balance. If the focus is only on you, it’s more difficult juggling work, school, and other responsibilities. When we realize the benefits of pursuing higher education, the responsibility that comes with dividends and/or scholarships, the investment many others are willing to make to develop our potential, we can achieve our goals for the benefit of ourselves, our family, and our Alaska Native and Alaska community, which in turn, directly benefits this generation and generations to come. “I am honored to be an Alaska Native CIRI shareholder, a CIRI Foundation recipient, a CIRI employee, and a college graduate. I look forward to pursuing a master’s degree fall 2013. “I am proud to be a part of the diverse group of CIRI shareholders. I myself am part Iñupiaq, Irish, Cherokee, and Scottish. There is strength in our diversity and respect for it. Being founded by a diverse group of people has directly translated in to respect for diversity, which contributes to CIRI’s continued success in promoting CIRI’s mission. This respect for diversity is reflected in CIRI’s diverse business portfolio, CIRI’s diverse employees and their skill sets, CIRI’s diverse shareholders, and the diverse family of CIRI nonprofits. I am proud of my company. “My bottom line: set a goal, make a plan, tap into the resources available, stay determined, and take responsibility. Many people are willing to invest in developing our potential. We have to harness it and do the work.” 

Alaska Business Monthly | June 2013

Oddly enough, the federal government had hit on the one cultural value that all Alaska Native cultures recognize and support: sharing. of meetings on how to carry out the Section 7 (i) requirements.” Oddly enough, the federal government had hit on the one cultural value that all Alaska Native cultures recognize and support: sharing. “A core Alaska Native value is known in Tlingit as Wooch.Yax, which represents balance and reciprocity,” says Nicole Hallingstad, vice president of communications and corporate secretary at Sealaska Corp. “It truly speaks to the basis of the 7(i) provision that we share the benefits of our timber and mineral natural resources with one another because some regions were more abundant than others. This also upholds our value of Haa Latseen, our strength, and definitely shows that we are stronger together than we are individually.”

Follow the Money “Sealaska has made more than $300 million in payments to the 7(i) pool,” Hallingstad says. “A portion of the 7(i) monies that Sealaska is allowed to retain, or receives back as its own pro-rata share of payments to regional corporations, goes directly to Sealaska tribal member shareholders as distributions. This is an important cash flow for shareholders in the Southeast region, those in the state of Alaska, and to the almost half of our shareholder base that lives outside of Alaska.” It is true form of trickle-down economics, where the money is redistributed and used by village corporations for vital projects in the communities. ANCSA’s 7(j) provision governs how those shared resource revenues are distributed from regional corporations to village corporations. “Sealaska has made just less than $59 million in 7(j) payments to Southeast village corporations,” Hallingstad says. “Those 7(j) payments are often passed on as dividends to village tribal member shareholders.” For Calista Corp., the main resource is mining and it has high hopes for www.akbizmag.com

Kristina Patrick Senior Director Shareholder Employment and Development NANA Development Corporation

Donlin Gold, which went into the permitting stage in 2012. “We did want to clarify that once the 7(i) is distributed to villages from the regional Alaska Native Corporation, they use the funds as they choose,” says Thom Leonard, communications manager for Calista Corp. “Additionally, infrastructure development like schools, sewage or pumped water to individual homes, airport maintenance and improvements, etc., is the responsibility of the state and federal governments.” For NANA Regional Corp., mining is also its main resource. “NANA is a significant distributor [of 7(i) revenue],” says Lance Miller, vice president of NANA natural resources. www.akbizmag.com

ristina Patrick was born and raised in Anchorage. Her mother, Maria Miller (Miller is her maiden name) “was born in Deering and raised in Kotzebue. My late father, Arthur Prentice, was from Virginia,” Patrick says. NANA and Aqqaluk Trust aided Patrick in various ways in gaining an education. She explains, “I was hired as a temporary administrative assistant in 1997 to help with the busy summer hiring season. I was approached about applying for an internship in legal for the Paralegal Program. The program included me working full-time learning onthe-job and going to school part-time at University of Alaska Anchorage in the Paralegal Program. I used funds from Aqqaluk Trust and NANA Development Corporation to pay for my education.” She graduated from University of Alaska Anchorage with a Paralegal Certificate and Associate of Arts in 2003 and 2004, respectively. “I have now transferred to Alaska Pacific University and am pursuing my BA in Business Management. NANA Development Corporation pays for my tuition,” Patrick says. Patrick also currently works for NANA, though in a different capacity. “After being transferred to legal, I worked there for eight years until I decided I needed a career change. I wanted to do something that allowed me to help people. I was hired as the shareholder development manager and am currently still in the department as the senior director of Shareholder Employment and Development. Because I was hired into an internship program, my education was directly related to the position. My current field of study at Alaska Pacific University is directly related to the work I currently do for NANA,” Patrick says. She would also encourage other NANA shareholders down the path of education. “I like to recommend others to take advantage of opportunities. The scholarships and internship I was provided gave me an opportunity for success—I’m glad I took it.” 

In FY 2012, NANA received $124.7 million in net proceeds from the Red Dog Mine and $76.4 million was distributed in 2012 to other Alaska Native regional corporations under 7(i). Last year, Red Dog Mine’s main pit ran out of ore and NANA is developing the rich Aqqaluk Deposit nearby.

The Money Goes Round and Round ANCSA 7(i) funds are used for supportive activities, like Sealaska’s safeguarding of its resources. “Sealaska also sets aside a portion of 7(i) money to an investment pool that

supports the management of Sealaska’s forest,” Hallingstad says. “We call this silviculture. Sealaska has invested approximately $17.6 million in silviculture work including basal pruning, pre-commercial thinning, and hand planting of trees. Our innovative forest management practices are based on solid science and result in healthy forest ecosystems on Sealaska’s lands.” Many corporations invest in the future though their young people. Kristina’s scholarship (see Kristina’s profile above) came from the Aqqaluk Trust, which NANA contributes to directly from Red Dog Mine proceeds. In June 2013 | Alaska Business Monthly

2012, NANA contributed $3.5 million to the Trust and the Trust awarded $780,000 in scholarships to 340 NANA shareholders, dependents, and descendants. “Sealaska holds up to $250,000 per year for scholarships prior to any 7(i) payments,” says Hallingstad. “Sealaska’s scholarship program is almost entirely funded by timber related activities and the 7(i) provisions. The Sealaska Heritage Institute administers this scholarship program, which began in 1981, and gives out an average of $570,000 to 375 students per year. Since 1997 more than $10.8 million has been distributed to Sealaska shareholders and their descendants in pursuit of their educations. “Since the internship program began in the early 1980s, more than 230 shareholders and descendants have received workplace training at Sealaska or its companies. Many former scholarship recipients and interns return to work at Sealaska and we count more than a dozen such shareholders and descendants among our current staff at Sealaska.” Calista has a very active paid internship program for shareholders and de-

“Since the internship program began in the early 1980s, more than 230 shareholders and descendants have received workplace training at Sealaska or its companies. Many former scholarship recipients and interns return to work at Sealaska and we count more than a dozen such shareholders and descendants among our current staff at Sealaska.” —Nicole Hallingstad Vice President of Communications and Corporate Secretary, Sealaska Corp.

scendants. In the last four years, Calista has donated more than $2.5 million to the Calista Heritage Foundation. “For 2012, more than 350 Calista shareholders and descendants received scholarships, which are managed by Calista Heritage Foundation,” says Leonard. “The total distributed for 2012 was $461,000.” Additonally, Calista is partnering with other organizations in the formation of training programs in anticipation of the Donlin Gold mining development and is testing a mentorship program to grow leaders from within and to ensure succession plans are in place, Leonard notes.

“The program has grown and expanded tremendously, from two internships in 2007 to twenty budgeted for 2013,” says Leonard. “The ten-week program includes an opportunity for up to twelve interns to gain valuable work experience with our subsidiaries in Huntsville, Alabama. “And we did want to note one former intern and former scholarship recipient, Andrew Guy, is our President/ CEO,” says Leonard.  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

st First Things Fir

First things first. At Fort Knox, our priorities are simple. Our people. Our community. Our environment. We invest in our people, so they are trained to do the best job possible. We support our community with charitable donations, volunteer hours and local purchases. We adhere to the toughest standards to protect water and air quality. These are our priorities. Because at Fort Knox, it’s about putting first things first.

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Alaska Business Monthly | June 2013

are simple. r top priorities At Fort Knox, ou www.akbizmag.com r environment. ble. r community. Ou e best job possi Our people. Ou trained to do th are they urs our people, so

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VISITOR INDUSTRY

Eldred Rock Lighthouse south of Haines is more than a century old and housed in an unusual octagonal building.

ometimes Alaskans are shocked to hear that their neighbor of twenty-five years has “never been to Talkeetna” or has “never seen a tidewater glacier,” despite having traveled all over Europe, Asia, or the Lower 48. Sure, seeing more of what we see on a daily basis—moose, trees, mountains, rivers, and buildings made of wood—might not sound like the best investment of time and money to some; but when we consider the numbers of people who prioritize to visit even the more accessible and commonplace sites in our great state, it leaves us with few excuses as to why we haven’t seen some of the more unique things that only Alaska has to offer. According to Sarah Leonard, president and chief operating officer of Alaska Tourism Industry Association, more than 1.8 million people from outside Alaska came to visit the state in 2011/2012. Most Alaskans, temporary and permanent, have experienced the “old 26

Alaska Business Monthly | June 2013

standard” can’t-miss activities that can be done in a day or over a weekend: whale watching, glacier and wildlife cruises, gold panning, taking a ride on the luxurious Alaska train. But some great in-state experiences require more than one or two days in order to enjoy to the fullest. Whether a sourdough or simply a temporary resident, everyone who lives in Alaska for more than three years can greatly enhance their Alaska experience by committing to seeing or doing all of the following.

Visit a Hot Springs According to the Alaska Public Lands Information Centers, Alaska is home to more than one hundred hot springs. Although some are easily accessible by road and other accessible options require backcountry savvy and dependable physical stamina for a safe and enjoyable trip, nothing beats the feeling of being warmed to the bones while surrounded by snow, ice, and possibly the

aurora, and it seems there is an option to match every personality. The hot springs that offer the easiest access for visitors from the population centers are located in the Interior. Families and luxury travelers will appreciate the accessibility and diversity in activities offered by Chena Hot Springs Resort. A quick fift y mile drive from Fairbanks, visitors do not have to stay the night in order to enjoy the amenities and activities, but the resort offers a wide array of accommodations options for those who do. According to their website, Chena Hot Springs Resort features an outdoor hot springs rock lake and outdoor hot tubs for guests sixteen and older, and kid-friendly pool and hot tubs indoors. Additional year-round amenities include hair salon, café, bar, Ice Museum, and a variety of seasonal activities depending on the time of year. There are accommodations options for budget travelers, but those on a strict budget are advised to bring their own food. www.akbizmag.com

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Photo courtesy of Kennicott Glacier Lodge

For a more rustic Interior hot springs experience, travelers can visit Manley Hot Springs. For five dollars, guests can sit in one of three concrete tubs inside a greenhouse amongst exotic plants and fruit trees. The site does not have accommodations, so guests are advised to contact Manley Roadhouseâ&#x20AC;&#x201D;word on the street is that it is the only game in town, but a good one, nonetheless. Tolovana Hot Springs may be an option for the physically fit, but it is not recommended for people who are not prepared for a backcountry hiking experience in potentially dangerous weather conditions. According to their website, there are several trails ranging from ten miles to fift y miles that someone can take to the hot springs, some of them only open in the winter. In the summertime, there is also the option of taking a canoe, and there is a private airstrip one mile from the hot springs for those who have access to a small plane and want to avoid the long trek out to the springs. Use of the airstrip requires a signed use agreement with Tolovana Hot Springs Ltd. (tolovanahotsprings.com).

The fourteen-story Mill Building was the centerpiece of the Kennecott Copper Mine while it was operating from 1911 to 1938.

Visit a Ghost Town There are various ghost towns all over Alaska, many of them so remote they are only accessible by boat or airplane. However, if you live in the Interior or Southcentral, five days can provide you with the right amount of time to take a

satisfying trip to McCarthyâ&#x20AC;&#x201D;Kennicott and step into the closest place you will ever get to the Twilight Zone. McCarthy-Kennicott is accessible by car via the McCarthy Road, a sixty-mile gravel road from Chitina, off the Richardson Highway. Travelers are advised

June 2013 | Alaska Business Monthly

Photo courtesy of Kennicott Glacier Lodge

The family-owned Kennicott Glacier Lodge opened in 1987 and now has thirty-ﬁve guest rooms and a restaurant.

into town over a small bridge, which reinforces the feeling of entering a strange land. Although there is a shuttle that brings people through McCarthy and up to the Kennecott Mine, many travelers find that bikes are a great way to see the town—but travelers less interested in a hardcore adventure can depend on package tours from Kennicott Glacier Lodge that include flights from Chitina (at the head of the McCarthy Road), intown transportation, lodging, food, and

to bring a spare tire and make sure their gas tanks are full before they get on the McCarthy Road—there are no services along the road. Only McCarthy residents with a special permit can bring their vehicles within the town. According to Christina Kirkwood, marketing director for Kennicott Glacier Lodge, those who drive to McCarthy-Kennicott must park their cars outside the town in one of various pay parking lots and bring their gear

tours that include glacier hikes and historic guided tours, and there will even be a new zipline this summer. As many Alaskans know, the Kennecott Mine was a misspelling due to a clerical error that was never corrected. According to Kirkwood, Kennicott was the site of a copper mine in the early 1900s that was one of the richest copper mines in the world at the time, so prolific it was backed by the Guggenheim brothers and J.P. Morgan. McCarthy was erected nearby to offer services not provided by the Kennecott Mining Company, hence, its proximity and the combined name. By 1938, the mine was abandoned, and remained a ruin until it was rediscovered in the 1970s. Remains of the Kennecott Mine demonstrate just how expansive it was. “There were heated sidewalks in some places,” Kirkwood says. “At the time, it was one of the most advanced cities in Alaska. This was a time when Anchorage was a bunch of tents down on Ship Creek. They had a full hospital, they had the first X-ray machine in Alaska, they had electricity, they had recreation halls where they showed movies, they had tennis courts, they had a school and a general store—so it was a pretty advanced town.” Other Alaska ghost towns accessible by road include Hyder, Chicken, Eagle,

Tourists off cruise ships and the Alaska Marine Highway System ferry crowd downtown Skagway on a sunny summer day. 28

Alaska Business Monthly | June 2013

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Ester Gold Camp, Helen Mine, Independence Mine (which is near Anchorage, Wasilla, and Palmer), and Dyea (in Southeast Alaska, accessible via a road from Skagway).

Take the Ferry The Alaska Marine Highway System is an amazing way for Alaskans to travel— but as with many Alaska adventures, the experience favors the prepared traveler: Unlike certain transportation systems (the European rail system, for example), travelers can never assume that there will be a ferry scheduled for the right place at the right time, so planning ahead is absolutely mandatory. Towels and blankets cost money to rent, use of personal computers is not recommended due to electrical output, cold storage is not available to travelers, and dining options—although plentiful on certain vessels—may not suit every dietary restriction or budget. Passengers can choose to travel with or without a car (many ports of call offer car rentals or can be easily explored on foot or by bicycle) and with or without pets (make sure your pet can handle the duration of the trip plus two or three hours, as pets cannot leave their containers while the boat is sailing). Passengers on longer trips have the option of camping on deck, or reserving a cabin or a stateroom well in advance. Despite the need for preparation, some vessels feature various activities on the ferry. According to their website, “Many vessels have theater areas that show films of general interest and documentaries on Alaska and the outdoors. Gift shops sell magazines, books, and Alaskan souvenirs. In addition, www.akbizmag.com

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June 2013 | Alaska Business Monthly

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some vessels have card rooms, reading rooms, small video game arcades, and/ or toddler play areas.” Valdez is an important port because travelers from Southcentral can take a ferry from Valdez to Cordova in order to access the multiple ferries that travel the Southeast region, and vice versa. Jeremy Miner, executive director of the Valdez Convention and Visitor’s Bureau, says the ferry system is “fabulous. “They do a great job of making the ferries extremely comfortable, they are well-maintained… it’s really nice to spread out and take a comfortable trip.” For those who would like to spend some time on dry land between ferry rides, Valdez has many options. “If you want a quicker ferry you can wait for it,” Miner says. “If you’re not in a time crunch, you can take a slower ferry.” For those who want to stay, “We’ve got three year-round hotels, we’ve got seven restaurants, and in the summertime we have an additional two hotels that open up,” Miner says. According to Miner, as with most coastal Alaskan towns, visitors should always be prepared for heavy rain.

All in One Travelers with enough time can plan to plan to knock off two or three bucket list items in one trip. Visitors from Southcentral can take a relatively quick ferry ride from Whittier to Valdez (a much longer ride from Southeast or the Aleutians, but still worth the investment), drive up and spend a couple of days in McCarthy-Kennicott, get back on the road and head north to an accessible hot springs, and can take the Parks Highway and hit Denali National Park on the way back home. Residents from Southcentral, the Interior, or Western Alaska should prioritize to see Southeast, as it is quite unique in history and scenery, and the towns are diverse in topography and character. Although a ferry ride into Southeast can be time-consuming, flying into Juneau and taking the ferry from town to town is an economical way to sample all of Southeast’s flavors. Skagway, easily accessible via the Alaska Marine Highway system, provides a great jumping-off point for several unique travel experiences: Visit the ghost town of Dyea, and do not miss the opwww.akbizmag.com

they are few and far-between in various sections along this route. Recreating in-state is good for the wallet, good for the local economy, and helps us to know what there is to appreciate nearby for the possibly temporary time that we are here. Best of all, we can

save money on airfare and have access to friends and neighbors who can give us insider tips on in-state travel.  Mari Gallion is Associate Editor at Alaska Business Monthly.

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portunity to drive back on the Klondike Highway through White Pass. Although not a hot springs, this area features hundreds of small pools—where glaciers once sat—that range in size from hot tub to swimming pool, and vary in color from baby blue to vibrant green: a perfect place to spend hiking, picnicking, and bathing on a bluebird sunny day. For those who prefer not to drive, there is also a White Pass and Yukon Route train trip, and there are various excursions and guided tours available from Skagway. A drive back to Anchorage will provide the opportunity to see Yukon Territory and taste the forbidden fruit of a Cuban cigar in Whitehorse. Be sure to ditch the cigars before the border crossing, make sure you have a current health certificate for any pets traveling with you, and have ample ID for any children and travel permission from absent parents (word on the street is that the Canadian border patrol can sometimes get a little bored). You can also stop into Chicken along this route to visit yet another ghost town and try gold panning. Be sure to make note of any accommodations on the Glenn and Richardson Highways, as

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June 2013 | Alaska Business Monthly

VISITOR INDUSTRY

Alaska Hotels Get Major Renovations Upgraded amenities charm tourists and locals alike By Susan Sommer

emember when having Wi-Fi access at a hotel seemed exciting? Or when the idea of using your hotel towels more than once felt almost as if you weren’t getting your money’s worth? The times and traveler expectations are changing, and Alaska’s hotels are meeting the challenge head-on. Amenities that just a few years ago seemed like luxuries or oddities are today expected among business as well as leisure travelers: free Wi-Fi, modern business centers, fitness equipment that doesn’t creek and groan along with our aging bodies, flat-screen TVs in each room, and energy efficient fi xtures and practices. Alaska’s hoteliers are also paying attention to the value-added aspects of a hotel stay such as culinary classes, spectacular views, or on-site gardens that provide fresh produce for the kitchen. Many hotel renovations are in full swing around the state or are just being completed for the 2013 visitor season and include updating the basics like carpet and bedding along with the more mutable aspects of the hospitality industry such as customer service, seamless technology, and educational offerings. Here is a region-by-region smorgasbord of what’s happening in Alaska’s hotel renovations:

Southcentral The Millennium Alaskan Hotel in Anchorage is undergoing a $5 million four-part renovation with the first phase almost completed. Phase I consists of a refresh of the restaurant, bar, and lobby including lighting, carpet, wall covering, new furniture, and more. According to Jack Bonney, public 32

Alaska Business Monthly | June 2013

relations manager for Visit Anchorage, “the lobby looks incredible and they now have a first-class neighborhood bistro restaurant.” Phase II began this spring, with new carpet in guestroom corridors, wall covering, lighting, and furniture. The Millennium also plans to remodel the deck overlooking Lake Hood, which is the busiest seaplane base in the world. Phase III will be the remodel of banquet facilities this summer. Bonney says that all three freshly renovated conference rooms will be done in time for the busy fall meeting season. Beginning this fall, the hotel will begin a complete remodel of all 248 guest rooms to include new bedding, carpet, wall covering, linen, air conditioning, televisions, cabinetry, and bathrooms. All of the upgrades are planned for completion by spring of 2014. In addition to its scenic location on the shore of Lake Hood, the Millennium is famous for being the Iditarod Trail Committee’s headquarters during the Iditarod Trail Sled Dog Race each winter. Besides minor renovations this year at Anchorage’s Dimond Center Hotel, plenty of planning is also on tap. This year’s upgrades include new paint in all 109 of the guest rooms, all new linens, and new telephone handsets in each room as part of a larger upgrade to the hotel’s entire phone system. Service centers in the conference rooms are being spruced up, and a digital reader board has been installed in the lobby. Slated to open in time for the summer 2014 season is a whole new expansion that includes the addition of thirty six guest rooms, a couple of which will feature a separate bedroom suite. New www.akbizmag.com

beds for the entire hotel will make for restful sleep in this favorite place for Alaskans visiting from rural areas to stay. Close to shopping, transportation and entertainment, the Dimond Center Hotel has an average occupancy rate of 91 percent. Tammy Griffin, regional general manager for The Hotel Group, says that three of the company’s eight Alaska properties are undergoing multimillion-dollar renovations. All are in Anchorage; work includes tile, carpet, furnishings, vanities, lighting, and equipment upgrades at Comfort Inn Ship Creek, Holiday Inn Express Anchorage, and Fairfield Inn & Suites. “The majority of the renovations are already completed and the properties are refreshed for a busy summer season,” Griffin says. Sheraton Anchorage Hotel & Spa has in recent years also added new services and upgrades to its facility, including its full service award-winning Ice Spa, twenty-four-hour fitness center, modern business center, and more. Other Southcentral hotels outside Anchorage are also part of this year’s renovation mix. The Kenai Fjords Wilderness Lodge, owned by CIRI Alaska Tourism Corp., has been getting a complete makeover and will be ready for guests this summer. The new 3,100-square-foot building sits at the top of the beach on Fox Island near Seward, with huge windows overlooking Resurrection Bay. Sightings of sea lions and humpback whales are not uncommon. Visitors can enjoy a roomy new dining area as well as a full bar and lounge. Cathy Martell, general manager, says, “Guests can also participate in a new culinary program this season. The lodge’s redesigned kitchen allows guests to interact with the island chef. Guests will enjoy gourmet Alaskan cuisine as part of their stay, and can take some ‘tips and tricks of the trade’ home to their own kitchen to share with family and friends.” The lodge’s eight waterfront cabins were renovated in 2012 with new furniture including custom beds, upgraded fixtures, and high-quality linens. CIRI Alaska Tourism Corp. is also working on a rewiring project at Talkeetna Alaskan Lodge to improve internet access for guests in their rooms www.akbizmag.com

and for conferences and meetings. And at the company’s Seward Windsong Lodge mini-refrigerators have been added to all guest rooms, and guests will enjoy new bedding, sheets, and pillows as well as reupholstered furniture. Tsaina Lodge, near Valdez, is a brand new twenty-four-room lodge nestled in Thompson Pass at the site of an old roadhouse and lodge in an area that has attracted skiers for years. Today, visitors come for world-class heli-skiing adventures during winter and fishing opportunities during summer. Guest rooms feature TempurPedic beds, and lodge amenities include a fireplace, fitness room, and a spa with massage and yoga. Gourmet dining is highlighted here, and the historic bar—including the actual bar, pool table, and wood stove—has been refurbished to accommodate contemporary clients.

Interior Several properties in Fairbanks are under renovation this year. Pike’s Waterfront Lodge, perched at the edge of the scenic Chena River in Fairbanks, has recently updated and expanded the exercise room with more equipment and an aromatherapy steam room. Guests can also now take advantage of a complementary business center that includes a boarding pass printer. New furniture graces the lobby. Recreation opportunities now include the Golden Tee Game Room (an indoor golf simulator), and this summer the lodge will offer a new bocce ball court. New historical signage and gardens are also in the works. The Fairbanks Princess Riverside Lodge received new carpet, wall treatments, and lighting in all guest hallways. Seventy guest rooms at the Westmark Fairbanks Hotel & Conference Center have new carpeting, wall treatments, lighting, and furniture. The Best Western Plus Pioneer Park Inn will have many improvements like granite countertops, new furniture, and a fully functioning pool. Chena Hot Springs Resort recently added a new four-thousand-square-foot meeting and event facility called the Activitorium. Besides being a great place for gatherings of all kinds, its unique clear plastic roof allows aurora viewing during

winter. A women’s locker room addition was finished last year, and this year the men’s locker room was remodeled.

Northwest Besides its existing cabins and guest rooms, the Akau Alaska Gold and Resort, just outside of Nome, completed two new sixteen by sixteen-foot cabins for the 2013 summer season. Additional guest housing at the resort is being planned. Visitors come here to sluice for gold, see wildlife, go fishing, and take ATV rides on the surrounding tundra. Southeast Downtown Juneau’s Goldbelt Hotel, built in 1974, is in the midst of a major renovation this summer. Goldbelt Sales manager Natasha Castillo says that all 104 rooms are being completely remodeled. They’ll have new paint and wallpaper, new beds and bedding and new furniture and lighting. Flat screen TVs will be installed in each room, along with refrigerators. All of the hotel’s hallways are getting new carpet, as is the lobby. One of three meeting rooms is being converted into a fitness room. The remaining conference rooms are being refreshed, too. Renovations are scheduled to be completed by mid-summer. Statewide Extended Stay Hotels of Alaska have been renamed Extended Stay America as part of the company’s nationwide rebranding campaign. All of its Alaska properties—two in Anchorage, and one each in Fairbanks and Juneau—are newly renovated. The upgrades have been all across the board, according to Regional Director of Sales Kymberly Flores. Besides all new paint, décor, carpet, furniture, bedding, and fitness equipment, each hotel has brand new signage to fit the rebranded name. In addition, all employees have been trained and certified to meet the company’s rigorous customer service expectations. Flores says the company won nationwide recognition for pulling off the fastest hotel rebranding and renovations in the industry.  Susan Sommer is a freelance writer and editor living in Eagle River. June 2013 | Alaska Business Monthly

FINANCIAL SERVICES

Wells Fargo Alaska commercial real estate lending specialists Patti Bozzo and Andy Petro (center) are ﬂanked by Volunteers of America Alaska President Elaine Dahlgren and Anchorage real estate developers John McGrew (left) and Glenn Gellert (right) inside a new Trailside Heights condo in Anchorage.

Financing Commercial Real Estate in Alaska Seller’s market takes hold By Tracy Barbour

nchorage developer Glenn Gellert of Trapline LLC does more than just develop housing; he helps create affordable homes. Gellert, along with co-developer John McGrew and Volunteers of America, recently opened the first phase of Trailside Heights in South Anchorage. The first stage of the affordable housing development features sixty-six two-

Alaska Business Monthly | June 2013

and three-bedroom townhome style units. Amenities include washer and dryer hookups, single-car garages, recreation areas, a business center, computer lab, clubhouse, meeting room, community room, exercise facility, and on-site management. Trailside Heights wouldn’t have been possible without a grant from the Rasmuson Foundation and loans from

Wells Fargo bank and Alaska Housing Finance Corporation (AHFC). Wells Fargo supplied Gellert with a muchneeded $16 million construction loan. “Wells Fargo was very accommodating because the appraisal came in at a particular amount that translated into a loan amount that was less than what we needed,” Gellert says. “But Wells Fargo adjusted its underwriting standards.” www.akbizmag.com

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AHFC provided two permastitutions. For example, Wells nent loans for the project: a first Fargo Manager Commercial loan at a market rate of 6.5 perReal Estate Group Alaska cent with a thirty-year amortiRegion Andrew Petro deals zation and a “soft” second loan with an array of projects. at a reduced interest rate of 1.5 The bank’s Anchorage real percent with a flexible payment estate department primarily plan. The monthly payment is handles large loans for invesbased on a percentage of the Brian Nerland tor-type real estate, while its available cash flow after all exbusiness banking locations penses have been paid. “Getting flexible outside Anchorage tend to deal with permanent loans is important to making more owner-occupied projects. Wells these deals work,” Gellert says. “Alaska Fargo’s financing includes development Housing is good at providing what devel- construction loans, “mini perms” (for opers need.” projects that are constructed, but not Gellert is also working with AHFC yet fully occupied), and term loans for and Wells Fargo on the financing for the purchases or refinances. second phase of the Trailside project. It Wells Fargo’s Anchorage location fiwill include twenty additional units and nances about fift y projects statewide is slated for completion in 2014. annually and about $100 million in loan production. Over the last twelve Financing Options and Sources months, the bank has financed 108 new Gellert is among the Alaskan borrowers commercial real estate loans in Alaska who are taking advantage of commer- totaling $159 million. “We value having cial real estate loans. Commercial real a local commercial real estate departestate generally constitutes any type of ment in the state,” Petro says. “We unproperty used for business or invest- derstand our environment.” ment purposes. It includes everything KeyBank also deals with a variety of from affordable housing, like Gellert’s commercial real estate financing situations. The most common scenario involves a business or nonprofit wanting Commercial real estate falls into to build or buy a location, according to three main categories: owner- Brian Nerland, president of KeyBank’s District. Sometimes the situation occupied, non-owner-occupied/ Alaska includes a non-owner occupied project investor (office, warehouse, and or a refinance. “We can leverage our remulti-tenant), and multi-family sources in our company to meet all types housing. Prospective borrow- of commercial real estate financing,” Nerland says. “We can do everything ers can seek financing for these from owner-occupied to assisting comtypes of properties from a vari- panies that want to access the capital ety of banks, credit unions, and markets with their real estate financing.” Like KeyBank, First National Bank other financial institutions. Alaska also typically processes owneroccupied, commercial real estate loans. Trailside project, to office buildings, re- First National provides bank-held real estail space, restaurants, and car washes. tate loans with terms up to twenty years, In Alaska, commercial properties also according to Vice President Commercial involve multi-family housing, ware- Lending Ed LaFleur. The length of the houses, hotels, medical facilities, mari- loan depends on the borrower’s business nas, and even cruise ship docks. plan, holding period for the subject propCommercial real estate falls into three erty, and a number of other factors. “We main categories: owner-occupied, non- currently have approximately $600 milowner-occupied/investor (office, ware- lion in non-residential/commercial real house, and multi-tenant), and multi- estate loans,” LaFleur says. family housing. Prospective borrowers In addition to offering traditional fican seek financing for these types of nancing options, First National, KeyBank, properties from a variety of banks, and Wells Fargo provide access to special credit unions, and other financial in- loan programs. These programs—which 36

Alaska Business Monthly | June 2013

“These reports can be timeconsuming and costly,” LaFleur says. “Commercial real estate loans take longer to consummate from the beginning of the process to the end of the process.” —Ed LaFleur Vice President Commercial Lending First National Bank Alaska

are especially beneficial to borrowers who can’t qualify for conventional loans—normally have longer terms, lower interest rates, and more creative financing options.

Important Qualifying Factors The qualifying requirements for a commercial real estate loan are much like those for standard business financing. Loan to value, repayment sources, and location are key issues. Depending on the type of business involved, the lender will require borrowers to provide financial statements, tax returns, and other documentation. The crucial factor for most commercial real estate financing transaction is the property. According to LaFleur, commercial real estate loans usually require more effort to value the real estate. Property appraisals can be very complex, with several valuation approaches used by the appraiser and lender. In addition, there are usually several other reports needed for environmental, structural, health, and safety reasons. “These reports can be time-consuming and costly,” LaFleur says. “Commercial real estate loans take longer to consummate from the beginning of the process to the end of the process.” If the borrower plans to lease space to individual commercial businesses, the income from rents will be a major consideration. The borrower will also be expected to have specialized, relevant knowledge. For example, one should be familiar with local zoning requirements to ensure tenants’ operations are allowed at that specific location. The borrower should also know how to employ commercial vendors for maintenance, repairs, insurance, and other needs—or retain a leasing company to handle these tasks. If financing is being sought for an www.akbizmag.com

owner-occupied property, other considerations come into play. “The owner will need business experience to make sure there is positive cash flow to service the subject debt,” LaFleur says. If it’s a hotel, restaurant, or special-use property, experience is a must.” There may also be some concern about leverage, if the borrower doesn’t have a good secondary source of repayment or minimum working capital for repairs or vacancies, LaFleur says. He adds: “The borrower needs to have a good equity position in the properties. If he’s leveraged to the maximum, he might not have anywhere to go if he loses a major tenant or has a couple of buildings go empty.” LaFleur advises borrowers to start the loan process early. It can take several weeks or months to complete appraisals, environmental and structural reports, as-built surveys, and loan underwriting approval. He also recommends getting and staying organized. “You need to make a calendar of events based on the information and timing forecast you get from everybody involved,” he says. “You do not want to miss your contingency and closing deadlines. You could possibly lose your earnest money and\or miss out on your purchase.” Earnest money can run $50,000 to $1 million, depending on the loan amount.

Special Financing Programs Alaska’s financial institutions also offer special financing programs for borrowers who can’t qualify for a traditional commercial real estate loan. A key source of financing is the Alaska Industrial Development and Export Authority (AIDEA). The public corporation’s loan participation program funds a variety of commercial real estate projects, including offices, warehouses, retail, tourism, hotels, health care facilities and even car washes. “The program offers the benefit of a long term, a reasonable interest rate and predictable payments,” says Chris Anderson, who is in charge of AIDEA’s commercial finance department. The program offers loan lengths up to twenty-five years, as well as variablerate loans termed at ninety days, one year, three years, and five years. AIDEA also funds business equipment such as furniture, fixtures, and other furnishings and refinances existing comwww.akbizmag.com

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June 2013 | Alaska Business Monthly

mercial real estate loans. The Anderson says the proprogram’s variable and fixed gram’s average loan amount interest rates, during the first is around $1.5 million, with week of April, ranged from a $25-million limit per trans5.03 percent to 6.07 percent. action. Depending on market Many AIDEA loan parconditions, AIDEA closes ten ticipation program borrowto forty loan participation ers are small mom-and-pop program transactions annubusinesses and owner-users. Andy Petro ally. As of the end of FebruThey typically have their own ary, it had 279 loans on the building and want to provide a place of books, representing a total portfolio of employment for their business. Some $444 million. also want to lease out a small amount of Anderson stresses that AIDEA’s their space for income. Other program commercial finance department has participants are sophisticated investors previous bankers and experienced who focus on buying and selling com- commercial real estate underwriters mercial real estate. who are well equipped to assist borRegardless of their type, the financ- rowers. “We have good relationships ing process is the same for all borrow- with all of the lenders throughout the ers: The loan undergoes origination state,” Anderson says. “We understand and underwriting with the lender. how they underwrite and approve. This Once approved, the loan gets submit- helps facilitate the lending process for ted to AIDEA, which independently borrowers.” underwrites and approves it through its In addition to AIDEA and AHFC, internal processes. Then AIDEA closes Alaska lenders also offer special fiand funds the loan. “By policy, we can nancing through the Small Business fund up to 90 percent for terming out Administration the Administration’s new construction or the purchase of an Certified Development Company 504 existing property,” Anderson says. loan program, which mainly provides

longer-term financing for owner-occupied commercial real estate. The U.S. Department of Agriculture and Bureau of Indian Affairs also offer loan participation and guarantee programs.

Money Available to Lend Alaska has a favorable economic environment to support commercial real estate projects. The real estate market is very stable, and interest rates are extremely low. “Based on those factors, it’s a great time to invest in commercial real estate,” says Petro of Wells Fargo. In addition, financial institutions have a great deal of liquidity and are looking for good real estate investments. “There’s never been a better time to lend,” Petro says. KeyBank’s Nerland agrees, describing the lending climate as very good. “It’s a great time to be acquiring, refinancing and, in some cases, building,” he says.  Former Alaskan Tracy Barbour writes from Tennessee.

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AGENDA

Compiled By Tasha Anderson stakeholders strive to meet their respective goals for commerce and society. Contact: Roger Marks 907-250-1197 rogmarks@gmail.com, usaee.org/USAEE /

June

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ASCE 10th International Symposium on Cold Regions Development: Planning for Sustainable Cold Regions June 3-5—Dena’ina Civic & Convention Center, Anchorage: The program will include technical tracks and a timely panel discussion about Climate Change. Social events include an ice breaker reception, awards luncheon, and conference banquet. Field trips to sites that demonstrate successful applications to cold regions engineering will also be scheduled. asce.org

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Institute of the North’s Week of the Arctic

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July 21-24—Hotel Captain Cook, Anchorage: The National Association of State Budget Officers, hosted by the Alaska Office of Management and Budget, meets to hear expert speakers on the economy, state revenues, healthcare reforms and more, as well as to network. Contact: Lauren Cummings 202-624-8434 lcummings@nasbo.org, nasbo.org

USAEE/IAEE North American Conference July 28-31—Hotel Captain Cook, Anchorage: The theme of the conference is Industry Meets Government: Impact on Energy Use and Development. This conference will address the issues, challenges, and opportunities of industry-government relations as the

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September 17-18—Anchorage: The Annual Alaska Oil and Gas Congress brings together oil and gas professionals from across the US, Canada and abroad and is dedicated to updates on projects, policy, opportunities and challenges in the oil and gas industry in Alaska. alaskaoilandgascongress.com

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September 23-28—Anchorage: The theme is “Today’s Visions Tomorrow’s Reality.” The conference includes training, workshops, lectures, and a firefighter competition. facebook.com/AlaskaFireConference

AAR Convention September 17-21—Hotel Captain Cook, Anchorage: The Alaska Association of Realtors Convention theme is “No Excuses” and will be hosted by the Valley Board of Realtors. alaskarealtors.com/2011-convention/

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October 24-26—Carlson Center, Fairbanks: 6th Annual gathering of Alaska Native peoples to discuss current news and events on a state, national and international level. This year’s theme is “Traditional Family Values,” with keynote speaker Nelson Angapak. 907-263-1307, nativefederation.org agrohall@nativefederation.org.

NWPPA/APA Alaska Electric Utility Conference & Tradeshow October 28-30—Dena’ina Civic & Convention Center, Anchorage: This is the largest conference and trade show for public power utilities in Alaska, held every other year. It provides opportunities to learn about the latest practices, innovations, and technology in the electric utility industry through education sessions, a trade show, and networking. Contact: Gail Patterson 360-816-1450 gail@nwppa.org, nwppa.org

November

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Alaska Miners Association Annual Convention and Trade Show

All-Alaska Medical Conference October 7-9—Westmark Hotel and Conference Center, Fairbanks: A continuing medical education conference put on by the Alaska Academy of Physicians Assistants, providing up to 25 CMEs. akapa.org

October 21-23—Carlson Center, Fairbanks: Sponsored by the First Alaskans Institute, the conference stimulates dialogue between young people and Elders, and encourages the maintenance of traditional Native values and practices in a modern world. Registration required. 907-677-1700 firstalaskans.org, info@firstalaskans.org

Alaska Federation of Natives Annual Convention

Alaska Business Monthly’s Top 49ers Luncheon October 2—Dena’ina Civic & Convention Center, Anchorage: Come honor the top ranked Alaska companies by revenue at our annual luncheon. Contact: Tasha Anderson 907-276-4373 surveys@akbizmag.com akbizmag.com

October 9-11—Anchorage Marriott Downtown, Anchorage: Events include keynote speakers and training sessions. Registration required. alaskahousing-homeless.org/conference

Native Knowledge: Respecting and Owning our Living Culture

October

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October 7-11—Princess Lodge, Fairbanks: This year’s theme is, “The Practice of Fisheries: Celebrating all who work toward sustainable fisheries in Alaska.” afs-alaska.org

Alaska Coalition on Housing and Homelessness Conference

Alaska Fire Conference

July NASBO Annual Meeting

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Alaska Oil and Gas Congress

ISOPE Arctic Materials Symposium June 30-July 5—Egan Civic & Convention Center, Anchorage: Special symposium organized to provide the scientific-industrial community an insight of new materials and technology development in the subject of Arctic Materials. arcus.org

August 12-18—The Institute has been convening Week of the Arctic since 2011 to help Alaskans understand the critical challenges and issues at stake in the Arctic. It culminates with the Robert O. Anderson Sustainable Arctic Award, which recognizes and individual or organization for long-time achievement in balancing development of Arctic resources with respect for the environment and local benefit. institutenorth.org

September

SBA Programs and Services Workshop June 19—Small Business Development Center: An introductory workshop to services provided by the Alaska Small Business Development Center. Free, pre-registration required. Check online for other ongoing workshop opportunities. aksbdc.org

Alaska Chapter of the American Fisheries Society Annual Meeting

August

Alaska Oil & Gas Infrastructure & Development Summit June 3-5—Hilton Anchorage, Anchorage: “Capitalize on new opportunities, new developments and new markets by meeting all the key stakeholders in one forum.” Includes pre-summit briefing: Alaska Offshore & Outer Continental Shelf Development: Prospects, Players, Plans and Predictions on June 3. Registration required. infocastinc.com mail@infocastevents.com

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Sheraton Hotel, Anchorage: Includes luncheons, banquets, keynote speakers and short courses. Registration required. alaskaminers.org

RDC’s Annual Conference: Alaska Resources November 20-21—Further information will be available in the fall. akrdc.org

June 2013 | Alaska Business Monthly

TELECOM & TECHNOLOGY

Is your IT In or Out? © Chris Arend Photography

Arctic IT Senior Account Executive of Network Infrastructure Mark Mathis illustrates on the white board at a training session.

Alaska companies meet technical needs through in-house staff and IT consultants By Tracy Barbour

s Alaska companies strive to keep up with the ever-changing demands of information technology, many of them are taking a mixed approach to meeting their technical needs. They’re handling certain information technology functions in-house, bringing in technical consultants to enhance internal resources and outsourcing entire tasks to IT support companies. Alaska Communications does all of the above. Information technology is vital to the operations of the Anchoragebased provider of high-speed wireless, mobile broadband, Internet, local, longdistance, and advanced broadband solutions. It prefers to keep key support sys40

Alaska Business Monthly | June 2013

tems related to billing, plant inventory, data warehouse, and overall architecture in-house. These systems are vital to the company’s ability to operate, serve customers, and remain competitive, according to Senior Vice President of Information Technology Aurora David. However, Alaska Communications hires consultants to augment its fift ymember IT staff and outsources some of its production support maintenance. The company, which has a total of 850 employees, is currently using TekMate to manage its service (help) desk. “They are well manned in terms of resources available to support a 24/7/365 service,” David says. “By allowing TekMate to

help us, it allows everyone to focus on what they know and do best.” TekMate is Alaska’s largest privatelyowned IT support company. Alaska Communications purchased 49 percent ownership of TekMate in 2010 to offer its customers managed IT solutions and services. Beacon Occupational Health and Safety Services is also using a varied IT strategy, according to Tony French, vice president of operations. The Anchorage company, which provides services to help companies meet their employees’ medical, safety, and training needs, has 275 employees. Two of its staffers provide part-time IT support for physical deskwww.akbizmag.com

top troubleshooting. They also maintain several applications that are unique to the company’s industry, such as SYSTOC software for occupational medicine. Otherwise, most of its remote desk top support, server support, and network administration has been outsourced. Beacon, coincidentally, partners with TekMate for remote desktop services. The outsourced solution provides access to a team of people who are familiar with the company’s network and systems. It also creates multiple layers of redundancy. “I’m paying a single amount to have multiple people who are trained,” French says. “I do not have to pay for an IT department’s continuing education.”

IT Support Services Alaska Communications and Beacon are among a significant segment of Alaska companies tapping IT support firms and technical consultants to enhance their in-house expertise and manpower. Local IT support companies offer a wide variety of services to satisfy their needs, including maintaining the operation of systems; networking computers, printers and scanners; desktop user support;

managing server performance; network security management; and data backup. External technical consultants can provide advice, assessment, research, and recommendations on how to resolve a specific problem within a specific timeframe. These technical experts can fill any number of roles, including network, server, and database administrator, program developer, business analyst, project manager, and system architect. In essence, IT consulting firms offer resources many Alaska companies may lack in house such as specialized skills, experience, and time, according to Nathaniel Gates, president of Cloud49. Internal IT people are typically generalists with a million and a half things to do, he says. “To draw on just the experience your internal team has is unreasonable,” he says. “Consultants provide time; they bring hours that are specialized and focus on finding a specific solution.” For David, using external IT resources for certain technical needs is pragmatic. She says: “With a wide variety of technology platforms to support, it is challenging and may not be economical to maintain internal, highly-skilled re-

sources in all these areas. The option of partnering with a service provider vendor that has commoditized this type of service becomes an ideal solution.” Gates agrees. Backup and disaster recovery is a commoditized task that is essential to every business. “It makes the most sense to outsource that to a third party that provides it in mass for a much lower cost,” he says. IT services generally fall into two categories: technical (hardware, computers, networking, etc.) and functional (the use of technology, strategy, etc.). Companies tend to be focused on the functional side of technology, keeping those services and resources internal. They’re more apt to outsource technical aspects, which are easier to farm out to a consultant.” Where we see the industry going, is that companies are willing to take a utility approach to technologies for the purpose of drastic cost savings,” Gates says. Local IT experts say help desk and production support maintenance are among the most common IT services being outsourced by Alaska companies. The trend is driven, in part, by the availability of technology to assist customers by phone

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June 2013 | Alaska Business Monthly

In-House Staff versus External Resources The decision to outsource or utilize in-house staff depends on the size and type of organization involved as well as the services required, according to Mark Mathis, a senior account executive with Arctic Information Technology. Professional services businesses like accountants and attorneys employ pretty standard technology. They’re more interested in outsourcing IT management and support, so they can focus more on their core business. Organizations with more specific technology needs, such as satellite mapping—or SYSTOC occupational medicine software, in Beacon’s case— typically keep specialized IT services in-house. That’s a logical approach, according to Mathis. “If there’s a very narrowly-defined need for a particular type of business, it may make sense to maintain staff to manage that particular technology,” Mathis says. However, outsourcing offers a variety of advantages for Alaska businesses. One of the biggest benefits, Mathis says, is cost savings. In many cases, it’s more cost-effective to employ an organization with the people and tools available to manage the IT environment, rather than employ an IT person in-house. “Often, training falls off because inhouse staff gets busy helping users,” he says. “When you have a team of people providing that service, they’re more apt to maintain their skill set.” Mathis adds that consultants typically stay up-to-date with relevant training and certifications, which, in turn, can translate into high-quality technical support. Gates says another important benefit of IT outsourcing is the ability to gain immediate access to specialized exper42

Alaska Business Monthly | June 2013

and the ability to remotely troubleshoot computers. In terms of individual technical consultants, software engineers or developers, project managers, and software testers are in high demand. Other trends playing out in Alaska are more requests to support predeployed hardware, calls for network documentation, and increasing interest in leveraging cloud-based solutions. Nationwide, there’s also a shift from offshore to onshore outsourcing.

Arctic IT President Steve Dike, center, with Mathis (left) and Consulting Manager Meara Boling.

tise. Unless there’s a very large organization, in-house IT people are forced to be generalists. And when a specific requirement arises, the IT staff may not have that particular expertise. On the other hand, an outsourced service can give companies an instant resolution. “They can engage with outsourcers and do a knowledge transfer,” Gates explains. “Often the scope is: We need you to lend your expertise and bring us up to speed, so that we can handle this on our own.” Sometimes, the goal of IT outsourcing isn’t to acquire a specific skill set. The company may require a developer to implement a new system, a network, or programming language. Outsourcing has one significant disadvantage, according to Gates. “As you outsource, you do lose the functional expertise and business knowledge,” he says. “It’s important to keep within your organization [some] people who understand the business drivers and function of IT.” This is especially true for a business that uses technology to differentiate itself from competitors, he adds. Jim Kostka of General Communications Inc. feels the advantages of outsourcing IT services for a small business far outweigh any disadvantage. “For the traditional small businesses, you’re going to get depth, but you don’t have to worry about a career ladder, and the costs associated with maintaining a technical employee,” says Kostka, GCI’s senior director of operations of service delivery.

Available IT Resources Alaska has a variety of IT support firms available to help businesses meet their technical needs. GCI, for example, offers on-site IT support to its business customers. This includes everything from providing bandwidth to delivering postinstallation support for their network. Customers can purchase services on an hourly basis as needed or through an ongoing maintenance agreement. “We want the customer to rely on GCI for everything related to communication,” says Eric Ochadleus, a supervisor with GCI Commercial Technical Services. GCI offers network monitoring and resolution services through its Commercial Network Control Center (CNCC). Customers can call in and report problems around the clock. The CNCC also addresses issues automatically. “A lot of the time, the customer may not know there was a problem until after we have notified them that we fixed it,” Ochadleus says. “As of last month [March], 83 percent of the issues that were called in were addressed and fixed by the CNCC.” GCI also enables businesses to leverage cloud services, which can help them avoid upgrading servers, licensing fees, and maintaining hardware. The company’s new data center offers battery and generator backup to give customers a safe and worry-free place to store their information. Arctic IT offers its customers a complete package of services called TotalCare. This flat-rate, managed solution www.akbizmag.com

minimizes potential financial risks, such as network outages and other issues, associated with the management of IT. The subscription service assumes the responsibility of managing the customers IT environment. A complete network that constantly monitors, maintains, and reports on key network assets, services, and functions, TotalCare also includes strategic planning and technical support during business as well as after-hours support. In addition, Arctic IT offers thought leadership to its customers. “We come in and review where they are; understand, define, and articulate where they want to be; and provide the solution or path to get from point A to point B. We also have the ability to provide the resources to effect that change,” Mathis says. He emphasizes that Arctic IT will be as specific or holistic as the customer wishes. That might involve working alone or with a team of other consultants. Whatever the case, Arctic IT has the expertise to cater to a broad range of needs, Mathis says. “Our consultants are very well trained and highly experienced,” he says. “Because of that, we’re able to achieve

resolution more quickly than IT generalists. I have the ability to pull resources in that have specialized knowledge.” Cloud49, which recently expanded to Austin, Texas, provides a wide variety of cloud-computing services for its clients. Its pay-as-you-go solutions are designed to help businesses run their IT environments more efficiently and cost effectively. The solutions that Cloud49 develops for clients generally depend on the scope of their needs. “A lot of time, it will be strategy—how to improve our business and operations leveraging technology,” Gates says. “Sometimes the business just wants someone to come in and architect a solution, where their existing staffing needs to be augmented.” Increasingly, Alaska companies want to “get into the cloud,” but don’t know how. Cloud49 can help by providing planning and implementation for cloud-based solutions. The company engages a network of partners to perform any IT work that clients require. It also offers a variety of technical resources and products. Alaska Communications, through its subsidiary TekMate, offers a collection of ConstantlyON IT services custom-

ized to fit customers’ needs. Available at a flat, monthly rate, the company’s solutions include full help desk support, 24/7/365 network monitoring, and vendor and asset management. David says ConstantlyON IT allows Alaska businesses to focus on what they do best—running their business—while letting IT experts focus on what they do best: IT. “Together with TekMate, we work to understand what drives a business and find IT solutions not just to meet their business needs, but to help grow their business and reduce costs,” she says. Their efforts are having a positive impact on Beacon Occupational Health and Safety Services, according to French. He says: “IT is an ever evolving project. As technology changes, it’s important to have people who are trying to learn, engage, and help us leverage technology, so we can better our business practices. We feel like we’re a valued client, and they’re definitely a valued partner for us.”  Former Alaskan Tracy Barbour writes from Tennessee.

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June 2013 | Alaska Business Monthly

ENVIRONMENTAL SERVICES

Tanks So Much

Bulk fuel problems and solutions By Dimitra Lavrakas

Alaska Business Monthly | June 2013

hey are a familiar a sight everywhere in Alaska—tank farms— those huge hunks of steel that hold a city’s or village’s lifeline to heat, light, and transportation. Like its depths, its care and maintenance area mystery to residents, but one that could one day impact their lives.

For instance, take Nome. In the fall of 2011, 1.6 million gallons of petroleum products that would keep the city running for the winter failed to arrive due to early ice conditions. In December 2011, Sitnasuak Native Corporation of Nome signed a contract with Vitus Marine LLC to deliver 1.5 www.akbizmag.com

Photos © Dimitra Lavrakas

Left: A helicopter takes off in front of an oil tank at the Port of Anchorage during a military deployment of equipment. Above: On the tundra, well outside of the city of Barrow sits its tank farm.

million gallons of petroleum products to Bonanza Fuel, a subsidiary of Sitnasuak. The contract called for the first-ever winter delivery of petroleum products via a double-hulled Ice Classed Russian tanker certified to travel through four feet of ice. The tanker Renda, under escort by the Unites States Coast Guard ice breaker Healy from Dutch Harbor, brought 1.4 million gallons of gasoline and ultra low sulfur diesel. But that delivery situation is only one of the hurdles that rural Alaska faces with its fuel supply.

A Very Short Turnaround The Alaska summer, while long on daylight, is short on time for fuel operations. Jason Evans, chairman of the board of Sitnasuak Native Corporation, is all too familiar with the scenario. “The biggest challenge is the short summer season in which most of the required maintenance and repairs need to be completed, and still maintaining an operating tank farm simultaneously,” says Evans. “This often requires cowww.akbizmag.com

ordinating summer barge deliveries in between major maintenance projects, such as internal cleaning and repairs, when tanks need to be empty. “The ground underneath tank farms are often built on permafrost, and with global warming melting the underlying permafrost, the ground is shifting and sinking, requiring unique solutions, including lifting up tanks and leveling the tanks themselves, similar to a house that needs to be re-leveled every couple of years. In addition, tanks farms are often near the ocean and salty air, which accelerates corrosion of pipelines and tank exteriors, which require constant repairs.”

Aging Tanks and What to Do with Them Custodians of tank farms also face the problem of corrosion, and Evans says that has become a significant factor. “The recent federal mandate requiring the use of ultra low sulfur diesel has actually accelerated the rate of corrosion in steel pipelines and tank interiors, compared to the former high

sulfur diesel and heating oil used in the past,” Evans says. “As a result, we have needed to increase the frequency of inspections, including the installation of protective liners on the inside of each storage tank, at an estimated cost of approximately $100,000 per tank.” Del Conrad, CEO of Rural Alaska Fuel Services, Inc. (RAFS), a nonprofit corporation organized to contract for the operation and maintenance of rural Alaskan bulk fuel storage facilities constructed with grants by the Denali Commission in nearly one hundred communities across the state. “Since about 2000, the Denali Commission built new tank farms in nearly half of Alaska’s off road communities,” says Cannon. “What they did not do was dispose of the old tanks that were decommissioned. By the end of 2011, many of these tanks had become health and safety, as well as environmental, issues. In some cases, hundreds of gallons of fuel remained in the tanks, risking a significant fuel spill if the tanks rusted through. “In other situations, kids playing on the tanks had fallen in, and in one vilJune 2013 | Alaska Business Monthly

The town of Wainwright’s tank farm is located near the shores of the Chukchi Sea.

lage it was reported that teenagers had gained access to a tank where they were out of the weather and out of sight, which made it a perfect place to create a ‘huffing station’ for glue and paint sniffing. “Our challenge was what to do with the scrap. Everyone wanted it hauled away for recycle, but the expense was prohibitive. Our solution was to leave some of the tank bottoms intact, creating a kind of ‘bucket,’ which we filled with scrap from other tanks. These “buckets” were then moved to the village landfill. If a backhaul ever becomes feasible or is grant financed, these ‘buckets’ can simply be picked up with a loader and put on the barge.”

Regulations Increase Costs Both Evans and Cannon say that new federal and state regulations have made

Alaska Business Monthly | June 2013

operating and maintaining fuel tank farms more burdensome and expensive. “The increasing level of federal and state regulations that tank farm owners and operators need to comply with continue to increase, especially since the recent number of oil spills on the North Slope over the past ten years due to corroding pipelines,” Evans says. “Annual inspections are required are determine the levels of corrosion and necessary repairs. Each regulatory requirement costs money to comply with, which requires tank farm operators to set aside sufficient repair and maintenance reserves. These all increase the cost of fuel to the tank farm customers.” Cannon concurs that what has changed over the last ten to fifteen years is the regulatory environment. “The Denali Commission was found-

ed because new federal regulations implemented in the 1990s would have required dozens of Alaska communities to replace their tank farms in order to meet the regulations,” Cannon says. “Senator Stevens was able to postpone enforcement in rural Alaska to give the Denali Commission time to respond. “The enforcement delay is over. For the last several years, the Coast Guard has resumed a regular inspection program. Depending on funding, their goal is to visit every rural tank farm every four to five years. “Beginning in 2012, the EPA resumed inspections and code enforcement. While the Denali Commission made a significant dent in our outdated bulk fuel facilities, there are still dozens of communities that have aging tank farms and may be unable to meet regulatory requirements.” Cannon says RAFS works with clients on regulatory issues, including training, non-destructive tank testing, spill exercises, pressure testing pipes, record keeping, etc. “No matter how sincere and dedicated a bulk fuel facility operator is about meeting his training and recordkeeping requirements, if his tank farm was built before things like spill containment and liners were mandated, he will still be non-compliant,” Cannon says. “New regulations will require regular tank inspections by an inspector certiwww.akbizmag.com

fied by the Steel Tank Institute. These inspections may require non-destructive testing [such as ultrasound] to determine deterioration of the tanks. “In many cases, this testing must be done from inside the tank, requiring that the tank first be emptied, then vented for several days, then cleaned, before the testing can be done. Costs are estimated at $5,000 to $6,000 per tank for a tank in the ten thousand gallon range.” Cannon added that “it s not unusual for a community to have twenty tanks or more in their fuel facility. While the need for testing is understandable, the cost may be beyond the means of many of our tank farm operators.”

Remediation and Disposal What to do with aging tanks and contaminated sites? This also presents a problem in rural communities with no road access or means of disposing of defunct tanks. “The required funds needed to comply with the overall cost of implementing and maintaining spill response and clean up capabilities are significant, which increases the overall cost of tank

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farm operations,” says Evans. “However, it is the tank farm operators’ responsibility to continue to keep their facilities in excellent operating and maintenance conditions, [and] to protect and preserve the significant capital investment needed to construct the tank farm.” RAFS keeps constant tabs on the tanks with experienced technicians and scheduled inspections and maintenance. “RAFS has attempted to address this problem by hiring a group of tank farm technicians with many years of experience,” says Cannon. “We send them regularly to our clients to provide training, maintenance support, and regulatory compliance. This consistency is helping to improve operations at our client facilities. “We have worked with several clients and in conjunction with the Department of Conservation to respond to fuel spills and in some cases, provide soil sampling and remediation services at legacy sites. “We also have developed a program to clean and demolish decommissioned tanks and remove them to the communities’ landfills pending an opportunity to have the scrap recycled.”

A Proposal for the Future Cannon sees the solution for rural tanks farms as becoming more regional. “Rural Alaskan communities already have the highest fuel and electric costs in the nation, while no one wants to see a fuel spill damage our environment, the cost of these regulations may be more than some communities can bear,” Cannon says. “In the long run, the only way to reduce energy costs in rural Alaska is to begin connecting communities with roads and wires. “Roads will allow us to concentrate tank farms in hub communities and deliver heating fuel by truck, reducing the administrative and operating costs per gallon for fuel storage. “Wires would allow communities to be interconnected on an electrical grid, allowing larger, more efficient generation, reduced operating and administrative costs, and broader application of alternative energy sources.”  Long-time Alaskan journalist Dimitra Lavrakas writes from the East Coast and Alaska.

June 2013 | Alaska Business Monthly

RIGHT MOVES Northrim Bank

Izer

Blury

Hays

Compiled by Mari Gallion expert, moved from the Wasilla financial center to become the Vice President Small Business and Consumer Loan Manager. Mhay Sy has become Vice President, Lending Quality Assurance Officer. She joined Northrim Bank in 2007 as the first member of the Loan Quality Assurance Group and has since established the Builder Ranking report, Commercial Real Estate stress test, and Large Borrowers report. Kelly McCormack has accepted the role of Assistant Vice President, Commercial Loan Officer IV. A life-long Alaskan and third generation banker, he joined Northrim in 2005. Missie Yost joined the bank as Vice President of Branch Administration Operations Manager. She comes to Northrim with twenty-eight years of banking experience. Todd Helverling accepted a position as a Small Business Loan Officer. Helverling has been in the banking industry since 1994 and holds a law degree from the University of Puget Sound School of Law.

Chugach Powder Guides

Alaska heli-ski operator Chugach Powder Guides announces Tait Wardlaw as its new General Manager. Wardlaw is a passionate skier and athlete who has spent his entire career in the ski industry.

Ukpeaġvik Iñupiat Corp. McCormack

Alaska Power Association

Crystal Enkvist, APR, received her Master of Public Administration from the University of Alaska Anchorage on May 4. Enkvist is Director of Member and Public Relations at Alaska Power Association.

Enkvist

Pet Emergency Treatment Inc.

Rose Ann Zumstein is Pet Emergency Treatment Inc.’s Veterinary Hospital AdministratorinAnchorage. Zu m s te i n at te n d e d California State University, Stanislaus, and has completed numerous leadership and management development programs. Zumstein

Century 21 Freedom Realty

Century 21 Freedom Realty, with offices in Soldotna and Kenai, welcomes Anna M. Johns as Broker. She owned and operated her company, Preferred Realty and Management, until joining Century 21 Freedom Realty March 22.

Yost

Ellen Izer was promoted to Senior Vice President, Human Resources. Izer has professional HR designations including SPHR and the American Payroll Association’s Certified Payroll Professional. Jay Blury has been promoted to Vice Presi- Helverling dent, Marketing and Communications Director. Born and raised in Fairbanks, he has worked in a growing marketing management capacity at Northrim Bank for seven years. Zachary Hays, a commercial fisheries lending

degree at the University of Wisconsin Law School and has been admitted to the Alaska Bar Association, the Federal District Court for the District of Alaska, and the Ninth Circuit Court of Appeals.

Credit Union 1

Harvey

Lauesen

Wes Harvey, CQM, CQA has been named Corporate Quality Programs Manager for Ukpeag·vik Iñupiat Corp. Harvey has more than twenty years of experience in the field of environmental and quality management and obtained his Bachelor of Science in Chemistry at the University of Kansas. Rachel. Lauesen has been named Staff Attorney at Ukpeagvik Iñupiat Corp. Lauesen earned her Law

Credit Union 1 announces the promotion of employee Josh Gildersleeve to the position of Administrative S e r v i c e s M a n a g e r. Gildersleeve has been employed by Credit Union 1 for more than twelve years.

Gildersleeve

OH MY! 48

Alaska Business Monthly | June 2013

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RIGHT MOVES Sealaska

Richard Rinehart Jr. has been selected to fill an open seat on the Sealaska board. Rinehart has a Master of Business Administration from Portland State University.

Thompson & Co. Public Relations

Thompson & Co. Public Relations welcomes Megan Metcalf and Emily Kurn as Account Coordinators. Metcalf holds a Bachelor of Arts in Journalism and Public Relations from the University of Alaska Anchorage. Kurn holds a Bachelor of Arts in Theatre Arts from Brandeis University in Boston, Massachusetts, and is pursuing a Master of Fine Arts in Creative Writing from the University of Alaska Anchorage.

Northwest Strategies

Northwest Strategies has promoted Amber Lee to Director of Advertising. Lee has a Bachelor of Liberal Arts from University of Alaska Southeast with an emphasis in communications and a Master of Fine Arts from University of Alaska Anchorage. Lee

RIM Design

Compiled by Mari Gallion in Interior Design from Savannah College of Art and Design and celebrates her tenth anniversary with RIM Design in August.

Bradley Reid + Associates

Ed Bennett has joined Bradley Reid + Associates, Inc. as a Copywriter and Editor. He holds a Bachelor of Arts in Communications and a Master of Business Administration with an emphasis in telecommunications management, b o t h f r o m A l a s k a Bennett Pacific University. He is accredited in public relations by the Public Relations Society of America.

World Trade Center Alaska

The Board of Directors of the World Trade Center Alaska announces the appointment of Gregory Galik to the position of Board Chairman. Galikâ&#x20AC;&#x2122;s appointment follows the resignation and completion of term by past Board Chairman, Rick Pollock. Galik

Doyon Foundation

Lierman

Schmidt

RIM Design announces that Natasha Schmidt and Megan Lierman have become Principals in the firm. Lierman holds a Bachelor of Arts in Interior Design from Seattle Pacific University and has been with RIM Design ten and a half years. Schmidt holds a cum laude Bachelor of Fine Art

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Doyon Foundation recently hired Malinda Chase as its new language revitalization program director. Chase has a Bachelor of Arts in American Studies from Wellesley College in Massachutes and a Master of Arts in Cross-Cultural Studies from the University Chase of Alaska Fairbanks.

Alaska Republican Party

Peter S. Goldberg, formerly Vice-Chair, became the Alaska Republican Party State Chairman.

Bristol Bay Resource Solutions LLC

Terri Bozkaya serves as President and CEO of Bristol Bay Resource Solutions, a newly-formed subsidiary of Bristol Bay Native Corp. Bozkaya has worked in executive administrative positions for more than twenty-five years and is an attorney licensed to Bozkaya practice in the states of Alaska, Tennessee, Virginia, and Washington.

Denali Alaskan Federal Credit Union

T.J. Alinen was promoted to Assistant Vice President of Human Resources at Denali Alaskan Federal Credit Union. Alinen is a graduate of Wayland Baptist University and holds a Master of Business Administration. He is also a certified Alinen Senior Professional in Human Resources through the Human Resources Certification Institute.

Fairbanks North Star Borough School District

Two new principals will lead elementary schools at the start of the 2013-2014 school year. The school district named Barbara Sperl Principal of Crawford Elementary and Mark Winford Principal of North Pole Elementary. Sperl is fourth grade teacher at Ticasuk Brown Elementary and brings seventeen years of educational experience to her new role at Crawford Elementary. Winford began his teaching career in 1998 in Oak Harbor, Washington, and serves today as the Assistant Principal of West Valley High School. He has been with the school district since 2008. ď &#x2019;

June 2013 | Alaska Business Monthly

OIL & GAS

Keeping A Oil and Gas Industry Jobs in Alaska

New investment could bring even more opportunities for workers By Vanessa Orr ccording to the University of Alaska Institute of Social and Economic Research, a third of Alaska jobs, or approximately 127,000 positions, are dependent in some way on oil production or spending of state oil revenue. Close to 20 percent more jobs, or 60,000 positions, can be traced to the spinoff benefits of oil wealth, resulting in half of Alaska’s jobs being traced to oil development. With numbers like this, it is no wonder that many people, from employers to job recruiters to politicians, are concerned about the future of oil and gas employment in Alaska. In 2010, the oil and gas industry in the state accounted for 44,800 jobs and just less than $2.65 billion in annual payroll to Alaska; this employment number increased by 2.4 percent in 2011, and preliminary reports by the Alaska Department of Labor and Workforce Development, Research and Analysis Section in January 2013, predicted a 4.6 percent in 2012 and a 2.9 percent increase in 2013. Still, oil and gas companies and the businesses that support them have reason to be concerned. Within a decade, it is predicted that there will be a major shortage of skilled workers in the energy field with approximately half of the industry’s skilled workers expected to retire. This upcoming workforce scarcity, as well as the desire of some workers to leave the state for jobs in the Lower 48 and overseas as oil production in Alaska trends downward, could signal big problems for a state dependent on oil revenues.

Where the Jobs Are Now Despite the fact that oil production has trended downward for the last twenty years, oil employment in Alaska has been on the rise, according to the January 2013 Alaska Economic Trends, 50

Alaska Business Monthly | June 2013

“Oil exploration by nature is attractive to entrepreneurs; those who are averse to ‘process thinking.’ We can’t afford to lose good talent or that entrepreneurial pedigree that has made Alaska so great.” —Crystal Nygard Managing Director Management Recruiters of Palmer

published by the Alaska Department of Labor and Workforce Development. This increase is credited to the need for more labor to find and extract harderto-reach oil as well as the drive to produce more oil while prices are high. Additional labor is also required for repair and maintenance of the state’s aging oil and gas facilities. While some workers do leave for jobs in the Lower 48 in Texas, North Dakota and Utah, as well as in the Gulf of Mexico or overseas, there hasn’t been a major exodus as feared. Still, losing talented workers does take a toll. “Oil explorawww.akbizmag.com

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tion by nature is attractive to entrepreneurs; those who are averse to ‘process thinking,’” says Crystal Nygard, managing director, Management Recruiters of Palmer. “We can’t afford to lose good talent or that entrepreneurial pedigree that has made Alaska so great.” Both oil and gas companies and their support industries are looking for skilled workers. “We are committed to providing jobs for Alaskans and actively recruit Alaskans for all of our open positions,” explains ConocoPhillips Alaska Director of Communications Natalie Lowman. “In the past five years, we have hired more than 350 new employees, only 27 of whom are non-residents. We currently employ more than 1,100 people in Alaska and 88 percent of those employees call Alaska home.” “Depending on the time of year, we employ between 200 and 500 people in the Alaska region,” says Mona McAleese, general manager and director of business development at ESS Labor Services, which provides support services for oil, gas, and mining companies, including camp and facility services and contract labor. “Because the oil field is getting

“Depending on the time of year, we employ between 200 and 500 people in the Alaska region.” —Mona McAleese General Manager and Director of Business Development ESS Labor Services

more technical, we’re seeing the number of blue-collar jobs remain stagnant or slightly increase, mainly in support of existing camps, facilities, and related pump stations. We’re seeing an increase in more technology-related jobs that require more education and training; these positions are increasing because the nature of jobs requiring these skills in increasing.” Nygard is also seeing an increase in the amount of white-collar positions, which she credits to Alaska’s regulatory culture. MRI Palmer is part of Management and Recruiters International, which specializes in executive recruiting. “There are a tremendous amount of regulations and permitting required before a company can even explore for

Mona McAleese

oil and gas,” she explains. “Even after a company does all that is required, there is still no certainty that blue-collar workers will come in to implement those plans because a company can invest substantial amounts of money and still not get a permit. I would say that the ratio is probably two to one when looking at white-collar versus blue-collar jobs.”

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Alaska Business Monthly | June 2013

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ASRC Energy Services, a subsidiary of Arctic Slope Regional Corporation, provides regulatory and technical services, engineering, fabrication and construction, operations and maintenance support services, response operations, pipeline construction, and drilling support for the oil and gas industry. According to President and CEO Jeff Kinneeveauk, the company has seen an increase in hiring in the past eighteen months in all areas. “Generally, we’ve experienced more demand for bluecollar jobs, such as insulators, pipe fitters, electricians, and mechanics. We provide everything from entry-level craftsmen to general laborers to drilling engineers; in the past three years, we’ve employed 3,400 people in Alaska and 5,000 nationwide.”

Preparing for the Jobs of the Future Even as oil production declines, there is talk of new projects, which could still include the TransCanada Pipeline, or a smaller pipeline to Southcentral Alaska. And with the Alaska Legislature’s April passage of SB21, which reduces taxes on the oil and gas industry, new investment in the state could also bring new jobs. “With the recent passage of the ACES tax reform, jobs in the oil and gas industry are expected to increase,” says Tobias Read, president and CEO, Swift Worldwide Resources. “In 2012, we placed between 75 and 100 contract employees; we are expecting an increase this year of between 100 and 150. The ACES tax overhaul increases profitability for oil and gas companies and thus investing in new projects will be more attractive. The result is new projects, a spike in the demand for skilled professionals, and increased salaries paid to these professionals.” According to Read, his company is looking for people to fill these positions with the mentality to “do whatever it takes.” “Experience is also very important and there is definitely a demand for employees with ten to twenty years of jobspecific oil and gas experience,” he says. “The tax overhaul will allow for investment here that is already going overseas or to the Midwest, and allow us to be more competitive in global market,” agrees Nygard. “I don’t know www.akbizmag.com

How Do You Develop Arctic Offshore Resources? Just Ask Golder. Golder Associates has been part of the offshore oil and gas industry in Alaska and the arctic for more than 30 years. We provide integrated services that include geotechnical-permafrost engineering, marine sciences, met-ocean data collection and analysis, along with a passion for sustainable solutions to arctic development. Engineering Earth’s Development, Preserving Earth’s Integrity.

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June 2013 | Alaska Business Monthly

“With the recent passage of the ACES tax reform, jobs in the oil and gas industry are expected to increase. In 2012, we placed between 75 and 100 contract employees; we are expecting an increase this year of between 100 and 150. The ACES tax overhaul increases profitability for oil and gas companies and thus investing in new projects will be more attractive. The result is new projects, a spike in the demand for skilled professionals, and increased salaries paid to these professionals.” —Tobias Read President and CEO, Swift Worldwide Resources

if it will spur as much job growth as projected, but it will bring capital and drive the conversation that Alaska is in the oil and gas business again.” Just days after the Alaska Legislature lowered taxes on the oil industry, ConocoPhillips announced plans to invest more heavily on the North Slope, including adding an additional rig to the Kuparuk field, partially funding a new drill site on the Kuparuk River Field, and beginning the regulatory and permitting stage at the Greater Moose’s Tooth unit in the National Petroleum Reserve-Alaska. “We applaud the Alaska Legislature for passing SB21 and give kudos to ConocoPhillips for stepping up to the plate,” adds Kinneeveauk of the changes already taking place in the industry. “We hope that this encourages other producers to follow their lead and increase investment.” To prepare future workers, ConocoPhillips invests heavily in employee training. “We currently employ more than one hundred University of Alaska graduates, and in 2011, ConocoPhillips provided internships to fourteen college students who are either studying in the University of Alaska system or are from Alaska but are studying at universities outside the state,” says Lowman. “Since 2000, ConocoPhillips has do-

“We applaud the Alaska Legislature for passing SB21 and give kudos to ConocoPhillips for stepping up to the plate. We hope that this encourages other producers to follow their lead and increase investment.” —Jeff Kinneeveauk President and CEO ASRC Energy Services 54

Alaska Business Monthly | June 2013

Jeff Kinneeveauk

Tobias Read

nated a total of more than $33 million to the University of Alaska system, and in 2011, we established a $500,000 engineering endowment for the University of Alaska Fairbanks College of Engineering and Mines to support education and research.” The company also provided $85,000 to Ilisagvik College in Barrow, $30,000 to the Alaska Native Science and Engineering Program, and $30,000 to the Alaska Process Industry Careers Consortium, an organization that works to prepare Alaskans for future careers in the oil and gas industry. Oil and gas companies are not alone in investing in the upcoming workforce, however. “Both the state of Alaska and ESS provide training for future workers; the state afforded a lot of money into training for up-and-coming positions, especially when it started talking about the possibility of a new pipeline,” McAleese says. “Apprenticeship programs and labor unions also invested a lot of money in training. In our company, we’re trying to grow our own as much as we can. We’re bringing people

through the ranks to grow into management or other positions.” ASRC Energy Services partners with companies in the energy industry to provide on-the-job training. “In our Nutaaq program, ASRC shareholders gain valuable experience by job shadowing. We also provide leadership training for our employees,” explains Kinneeveauk. “This goes back to our mission of hiring skilled people and ‘training attitude.’ We are focused on shareholder and employee growth, because we believe that our employees are our biggest asset.” As more oil and gas workers head for retirement and more projects get under way, it is especially important that all facets of the industry work together to prepare for the future. “We’d much rather be putting people to work here than exporting labor out of Alaska,” says Nygard. “We want to be an importer, not an exporter of jobs.”  Vanessa Orr is the former editor of the Capital City Weekly in Juneau. www.akbizmag.com

OIL & GAS

ÂŠ Steve Rowland, RECON, LLC

Doyon Limited completed a gravel road this past winter, where a Nabors drill rig will be moved this month to the Nunivak No. 2 exploration site about ten miles west of Nenana.

Doyon Drills Frontier Basins NANA and Ahtna evaluating prospects By Mike Bradner

ig oil and gas discoveries have been made in northern and southern Alaska, both on the North Slope and in Cook Inlet. What about the eight hundred miles in between? There are big sedimentary basins in the Interior that have had very little exploration. Are there possibilities? Alaska Native corporations who own land in these areas certainly think so. Doyon Limited, the Alaska Native re-

Alaska Business Monthly | June 2013

gional corporation based in Fairbanks, owns 12.5 million acres of surface and subsurface lands in Interior Alaska, including lands in the big Yukon Flats basin and in part of the Nenana basin. Doyon is now pushing ahead with an active oil and gas exploration drilling program in the Nenana Basin, although this is focused on about 400,000 acres of state lands Doyon has under lease. The corporation is also doing preliminary

exploration in the Yukon Flats region on lands it owns with village corporations.

Doyon Not Alone Doyon isnâ&#x20AC;&#x2122;t alone. In northwest Alaska NANA Regional Corp. is evaluating prospects in the Kotzebue Basin, where NANA owns lands. In the Copper Valley region near Glennallen, Ahtna, Inc., the Alaska Native regional corporation for that area, owns lands with oil and gas potential and www.akbizmag.com

has worked with private companies on exploration drilling. Doyon is the most active, however. The corporation will be drilling its second test well in the Nenana Basin in July. The basin is west of Fairbanks covering an area south of the city of Nenana to the Minto Flats region in the north. These are state-owned lands on which Doyon and several partners secured rights several years ago under a state Exploration License, which Doyon has now converted to conventional state oil and gas leases. The immediate focus is on a prospect area about ten miles west of Nenana, the site of Doyon’s planned Nunivak No. 2 well that will “spud” in July. An earlier well, Nunivak No. 1, was drilled a few miles to the east in 2009. It did not find commercial oil or gas, but the results were encouraging enough for Doyon to continue the effort. A gravel road to the new exploration site was completed this past winter and a drill rig will be moved to the site in June. The first few miles of road were built in 2009 to reach the first well site and then extended about seven more miles to the new drill location. The road itself is strategic new infrastructure for the area. Doyon is paying for it, although state exploration incentives will have the state pick up a big part of the tab. Once Doyon finishes its work, however, the road, which is also built on a city of Nenana right-of-way, will provide access to lands with very good agricultural potential. The city is also planning a bridge across the Nenana River to be built with state funds. That will give Doyon and others use of the road year-round—a big plus for Doyon if oil or gas is found.

Doyon Limited is also exploring for oil and gas in the Yukon Flats basin near Stevens Village north of Livengood on the Yukon River. © Doug Klak

Incentives Extended Meanwhile, special state incentives to encourage exploration in “frontier basins” like Nenana were kept in place and even extended when the Alaska Legislature reworked the state’s oil and gas production tax in its 2013 session. Special investment tax credits apply as well as a provision that caps the state production tax on oil at the same favorable rates as Cook Inlet oil production. A special incentive for frontier basins similar to the special Cook Inlet offshore incentive (the “jack-up rig” tax credit) was made available to frontier basins in 2012, and it can pay a majority of well and seismic costs. This particular tax credit www.akbizmag.com

June 2013 | Alaska Business Monthly

expires in 2016, but until then Doyon would be able to use it for up to two wells. Beyond 2016, however, a separate exploration tax credit that pays 40 percent of wells costs would be available until 2022.

Nabors Rigs Doyon will use a Nabors Alaska Drilling Company rig on Nunivak No. 2 on its new well. Doyon is in the oil and gas drilling business itself–Doyon Drilling Inc. owns seven rigs that work mostly on the North Slope–but a Nabors rig must be used on this project because none of the Doyon rigs are available. “All of our rigs are committed to other jobs,” says Jim Mery, Doyon’s vice president for lands and resources. The Nunivak No. 1 well drilled in 2009 did not find a commercial oil and gas deposit but its results were encouraging enough for Doyon to continue to explore the basin, where Doyon holds state oil and gas leases on about 400,000 acres. What was found at Nunivak No. 1 was a two-hundred-foot section of sandstone below seven thousand feet with traces of oil. Geochemical analysis also showed the presence of natural gas liquid compounds, another indicator. Geologic Formations Doyon believes that at the new drilling location the geology might be more favorable to oil formation. Also, while the seismic profiling shows the presence of structures in the rocks that could be reservoir traps for oil and gas, Doyon also hopes that there may be an impervious “cap” rock, like a shale, that could hold the oil and gas in the trap and prevent it from seeping out. Oil is more valuable than natural gas and what Nunivak No. 1 showed was that oil is there and that there is an active petroleum system operating in the basin. That was a big encouragement. Prior to the Nunivak No. 1 well most geologists, including Doyon’s and those in the state and federal governments, believed the Nenana Basin was more prone to natural gas formation than oil. That was because the big Interior sedimentary basins are believed to be formed by non-marine sediments. Natural gas can be formed in nonmarine sediments but most oil is formed by deposition over eons of sediments of marine origin. There are cases, however, 58

Alaska Business Monthly | June 2013

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Interestingly, Doyon also now believes there may be oil in the big Yukon Flats basin north of Fairbanks, where Doyon and village corporations own 1.4 million acres of land. Like the Nenana Basin, geologists have thought the Yukon Flats to be more prone to natural gas than oil. Doyon still believes there is gas, but the geochemical analysis now shows that oil may also be present. where oil and other liquids can be formed by non-marine sediments and even coals, which are extensive in the Nenana area. Doyon is betting that the Nenana and Yukon Flats may be one of these exceptions. Doyon’s geologic modeling and gravity and seismic surveys, have also shown the basin to be much deeper than previously thought. The “basement,” or where the potential hydrocarbon-bearing sedimentary rocks bottom out, is now known to be as deep as twenty-fivethousand feet, which is deep enough that the combined pressure and heat could have formed oil.

Discovering Oil and Gas Finding oil is good because it is worth a lot more than gas, but when oil is found gas is commonly discovered as well. That’s not always the case with gas, which is often found by itself. Meanwhile, in 2009 Doyon was still thinking natural gas and about what to do with gas if it was found. Fairbanks, which badly needs a less expensive alternative to fuel oil, its main energy source, is about sixty miles away from where Doyon is now exploring and could be served by pipeline if a gas find was large enough. Alternatively, gas could be piped a short distance to Nenana to a possible gas-fired power plant. Nenana is well-sited for this because it is on the main Railbelt power transmission line connecting Interior and Southcentral Alaska. If oil is found it will help the two Fairbanks-area refineries, one owned by Flint Hills Resources and the other by Petro Star. Both depend now on 60

Alaska Business Monthly | June 2013

www.akbizmag.com

the North Slope oil fields for crude oil supply, which are declining. Also, the oil could provide additional volumes for the Trans Alaska Pipeline System (TAPS), which has ample spare capacity. Interestingly, Doyon also now believes there may be oil in the big Yukon Flats basin north of Fairbanks, where Doyon and village corporations own 1.4 million acres of land. Like the Nenana Basin, geologists have thought the Yukon Flats to be more prone to natural gas than oil. Doyon still believes there is gas, but the geochemical analysis now shows that oil may also be present. Doyon has been working in the Yukon Flats for several years, including doing three-dimensional seismic work last winter. The region is crossed by the TAPS pipeline, which carries crude oil from the North Slope to Valdez. One area of focus for Doyon is near Stevens Village, which is very close to TAPS’ Pump Station 6.

Other Frontier Basins In two other frontier basins, near Kotzebue and in the Copper Valley, NANA plans more geologic work and modeling near Kotzebue, but Ahtna’s plans for its lands are uncertain. Kotzebue is remote and drilling would be challenged by difficult logistics and high costs. However, communities in the region depend on costly fuel oil for power generation and space heating, and the discovery of natural gas could be a big economic boost. In Ahtna’s Copper River basin the logistics would be simpler because the area is served by both the Glenn and Richardson highways. Valdez, at the southern end of the Richardson, has good port facilities. One positive indicator is that natural gas was discovered in that area in the 1960s and near where Ahtna drilled its recent well, in fact. That well encountered technical problems, however, caused by the presence of hot water at high pressures. Those geologic conditions, which are unusual, may be related to the presence of volcanoes and complex underground hydrothermal circulation systems, state geologists believe. Athna has not resumed work on the well, but gas is known to be there.  Mike Bradner is publisher of the Alaska Legislative Digest. www.akbizmag.com

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June 2013 | Alaska Business Monthly

OIL & GAS

Oil Industry Investment in Alaska Three major players in our past and future

A Prudhoe Bay worker at sunrise on the North Slope.

By Margaret Sharpe

nvestment in the oil and gas industry pays for Alaska in many ways. With a literal dividend paid out annually, Alaskans are de facto stockholders in the oil and gas industry. Though paperless members—aside from the annual Permanent Fund Dividend check—our holdings yield other benefits from oil and gas investment. According to the University of Alaska Anchorage Institute for Social and Economic Research, Alaska’s petroleum wealth, both money in the bank and petroleum in the ground, was valued at $160 billion in 2012. The oil and gas industry has accounted for about 126,000 jobs and continues to provide approximately 85 to 90 percent of the state’s annual revenues. Since the 1968 discovery of Prudhoe Bay, the largest oil reservoir in North America, the history of Alaska has been joined with oil and gas exploration. Just over a decade after the discovery, North Slope crude oil flowed along the eight hundred-mile-long trans-Alaska oil pipeline, shipping out of Valdez on August 1, 1977. Five years later, the first PFD checks were distributed in June 1982. Alaska’s Permanent Fund savings account balance today is more than $42 billion, in large part due to Prudhoe Bay. 62

Alaska Business Monthly | June 2013

©BP

Successful oil and gas development in Alaska has resulted from hard work and investment over the decades. There is little argument that the oil companies in Alaska have profited from extracting Alaska’s resources, but Alaska has profited in many ways through the economic and community contributions. Although companies and names have merged and changed over the years, three major players have been constant in Alaska since the 1968 discovery: BP Exploration Alaska, Conoco Phillips Alaska, and ExxonMobil, all coventurerers in Prudhoe Bay and the trans-Alaska oil pipeline.

BP Exploration (Alaska) Inc. BP has fift y years of history in the state. Today BP is one of Alaska’s largest private sector investors and taxpayers and ranks in the top ten for employers. BP operates the most fields and produces the most (gross) oil in Alaska. As operator of Prudhoe Bay, the company invests heavily in infrastructure: In 2008 they commissioned a $500 million sixteen-mile oil transit line system, and in 2011 the company allocated one-third of its capital budget to infrastructure renewal projects. A part of BP’s investment is making strides in oil field technology to maxi-

mize production. When development started at the Prudhoe Bay reserve, only 40 percent or less of the oil was expected to be recovered. Through using new technologies, BP has increased that estimate to more than 60 percent. BP’s enhanced oil recovery technologies have also doubled the production life of Prudhoe Bay field. Advanced drilling techniques—such as horizontal and multi-lateral drilling—mean many more wells can be drilled from a single surface location. For example, the BPoperated Endicott field has a surface footprint that is 70 percent smaller than the traditional North Slope development pad. BP wants to continue investing in new ways to extract the remaining, more challenging North Slope oil and gas. Another investment avenue is the community: “BP is one of the largest private sector investors in Alaska, and our investments extend beyond our business to the communities where we operate and where our employees and their families live,” says Dawn Patience, public affairs director for BP Exploration Alaska. “Our primary focus is support of education and workforce development. Over the past ten years BP has invested nearly $28 million to develop Alaska education www.akbizmag.com

and workforce programs.” In support of education, BP recognizes Alaska teachers of excellence annually. There have been more than five hundred Alaska teachers honored with this special award in eighteen years, including the 2013 BP Teacher of the Year for the Anchorage School District, Ben Colson, who teaches social studies at SAVE High school. “Over the past five years, BP has provided internships for 125 UA [University of Alaska] students and has extended full-time job offers to 143 students,” says Patience. “2012 was a banner year, where BP hosted fift y-five graduate summer interns and fourteen operator interns from the geosciences, business, and engineering fields. From the two college recruiting programs, the company hired eighty new full-time employees.” The company is propagating Alaska engineers with corrosion expertise through the UA system. “BP donated $1 million to develop a first-of-its-kind Asset Integrity and Corrosion Lab at UAA School of Engineering in Anchorage,” says Patience. Now corrosion testing

can be performed in state and will produce Alaska engineers with local corrosion expertise. “The lab will open this fall [2013] for research and engineering students,” she says. BP reaches beyond itself to work with local organizations as well, contributing $5.5 million in 2012 to support nonprofit and educational organizations in Alaska. “Our employees support more than seven hundred community and education organizations and more than 230 youth teams in forty-nine Alaska communities,” says Patience. “An additional $277,000 was given in 2012 through BP’s Fabric of America fund, a program in which BP donates $300 on behalf of individual employees who select eligible nonprofit organizations,” she says. The company supports the Alaska Native Science and Education Program’s (ANSEP) eight-week “summer bridge,” which prepares Alaska Native and rural students for their freshman year at UAA. The goal is to lead them on a path of employment in Alaska’s oil and gas industry. The UAA ANSEP program has graduated nearly 250 Alaska

Native engineers and scientists since BP helped to initiate the program fourteen years ago. BP also offers free meeting space for Alaska community-based nonprofits and education organizations. Their BP Energy Center functions as a training, meeting, and conference location for the local community. Since opening, more than one-hundred thousand visitors have passed through the center. Of course, BP provides jobs to Alaskans; BP’s focus on Alaska hire keeps it in the top ten list of employers in Alaska. “Each year we maintain a workforce that includes more than 80 percent Alaskans of our more than 2,300 employees statewide,” says Patience. The company works with a number of major contractors who also make hiring Alaskans a priority. “In the past five years, BP has hired 269 graduates comprising 146 operator interns and graduates and 123 engineering, geoscience, and business interns and graduates,” says Patience. “These new employees come from the Alaska Processing Technology degree programs at the University of Alaska’s

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June 2013 | Alaska Business Monthly

campuses in Anchorage, Fairbanks, and on the Kenai Peninsula.”

ConocoPhillips Alaska With over fifty-five years in exploration in Alaska, ConocoPhillips’ heritage companies—Richfield Oil Company, a predecessor of Arco, along with Phillips Petroleum Company—were early investors in the state and history makers in the discovery of the Prudhoe Bay field. ConocoPhillips is Alaska’s largest oil and gas producer with significant ownership interests in Prudhoe Bay and is operator at the Kuparuk and Alpine oil facilities. Through research, testing, and development of new drilling technology, ConocoPhillips has been able to reduce the surface footprint of a drill pad by almost six times and has increased production from Prudhoe Bay beyond predicted numbers. In cooperation with the U.S. Department of Energy and Japan Oil, Gas and Metals National Corporation, the company recently completed a field trial in gas-exchange technology on the North Slope; though still in the early stages of assessment, this brings the industry a step closer to potentially producing natural gas from methane hydrates. “ConocoPhillips is here for the longterm,” says Trond-Erik Johansen, president of ConocoPhillips Alaska, citing that the passage of the recent oil tax bill “should lead to more investment in oil producing projects.” The company wants to encourage and facilitate the production of additional oil and gas resources on the North Slope. ConocoPhillips is also a major contributor to the statewide community. “With grants reaching from the North Slope of Alaska to the coastal regions of the Southeast, we support Alaska’s universities, conservation projects, food banks, emergency shelters, art projects, and youth sports,” says Natalie Lowman, APR, director of communications at ConocoPhillips Alaska. In 2012, ConocoPhillips donated more than $6.4 million to almost three hundred nonprofits around the state and has a running total of $106 million to Alaska nonprofits since 2000. “Our employees worked over six thousand volunteer hours,” says Lowman. “And the many personal donations were matched by the company. ConocoPhil64

Alaska Business Monthly | June 2013

lips employees give charitable contributions and participate in community outreach and other volunteer activities, creating connections and building relationships throughout the state.” ConocoPhillips supports local training and educational programs that help prepare individuals for jobs in the oil industry. “We understand the importance of investing in Alaska; our industry’s future depends on a well-trained Alaska workforce,” says Lowman. “In 2011, we established a $500,000 Engineering Endowment for the University of Alaska Fairbanks College of Engineering and Mines to support education and research.” The company also provided $85,000 to Ilisagvik College in Barrow, $30,000 to ANSEP, and $30,000 to the Alaska Process Industry Careers Consortium, an organization that works to prepare Alaskans for future careers in the oil and gas industry. “We are also committed to supporting the people and organizations of Alaska’s Native communities,” says Lowman. ConocoPhillips supports public radio in Barrow and Kotzebue, ANSEP summer internships, First Alaskans’ Elders and Youth Conference, Alaska Federation of Natives, Koahnic Broadcasting Corporation, Ilisagvik College, and the Northwest Arctic Borough Magnet School. “In addition, we were honored to support many village cultural programs and community celebrations,” says Lowman. “We also continued to support Alpine Local Hire programs through internships and Career Quest, a program focused on providing job readiness skills for high school students at Trapper Creek School in Nuiqsut.” ConocoPhillips’ commitment to supporting Alaska businesses results in local jobs and boosts the overall economy. “In 2011, 86 percent of all dollars we spent for goods, services, and transportation went to Alaska-based companies,” says Lowman. ConocoPhillips invests in Alaska jobs, consistently providing internship and job opportunities to Alaskans. “We currently employ more than one hundred University of Alaska graduates,” says Lowman. In 2011, ConocoPhillips provided internships to fourteen Alaskan college students, who

were in the University of Alaska system or studying at universities outside the state. “We presently employ more than 1,100 people in Alaska, and 88 percent of those employees call Alaska home,” she says. “ConocoPhillips is committed to providing jobs for Alaskans and actively recruiting Alaskans for all of our open positions.”

ExxonMobil Corporation A pioneer in the industry and Arctic oil and gas exploration, ExxonMobil began initial exploration in Alaska over ninety years ago. They drilled their first well at Yakataga Beach in 1925 and have maintained a commitment to Arctic technology research and development ever since. As a co-discoverer of the Prudhoe Bay field, ExxonMobil has produced innovative exploration techniques used in Alaska and other Arctic regions. From ice-resistant platforms, manmade ice islands for winter exploration drilling, gravel islands for production, and extended-reach drilling technology for horizontal wells, ExxonMobil’s investment in enhanced oil recovery technologies and expertise has contributed to the success of Prudhoe Bay by increasing recoverable reserves—approximately 30 percent over initial estimates. The company is advancing plans for their Point Thomson natural gas project and received U. S. Army Corps of Engineers permit authorization for construction of infrastructure. As the largest holder of discovered gas resources on the North Slope and a working interest partner in various production facilities throughout the state, ExxonMobil continues to invest in new wells and programs that will enhance resource recovery, extend field life, and increase the volume of oil in the transAlaska oil pipeline. ExxonMobil’s investment doesn’t stop at the edge of an oilfield: “As a company with deep roots in Alaska, we view investment in education not simply as a responsibility, but as an essential component in building strong and healthy communities,” says Kimberley Fox, public affairs manager at ExxonMobil Alaska. “We also provide funding to more than forty nonprofit organizations in Alaska and, in particular, support programs that encourage students www.akbizmag.com

to take an active interest in careers in the fields of math and science,” she says. ExxonMobil is participating in a new initiative to fast-track U.S. fluency in science and math, which will grow Alaska talent for future hiring. They have implemented this Alaska-grown approach through funding programs like ANSEP; schools like Harold Kaveolook in Kaktovik, which supports pre-college education; and Ilisagvik College in Barrow, the only higher education facility available for North Slope communities. “We have a long track record in the state of leading educational initiatives and would be open to review new opportunities on a case-by-case basis,” says Fox. While ExxonMobil does not fund capital investment projects for infrastructure, the company invests in sustainable educational programs, such as ANSEP. ExxonMobil is a founding sponsor of the program’s Acceleration Academy, which is aimed at pre-college students and provides University of Alaska campus housing during the summer for students taking classes in biology, physics, trigonometry, chemistry, and engineering.

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As a member and supporter of many organizations in Alaska, Exxon assists organizations including Alaska Oil & Gas Association, Resource Development Council, Commonwealth North, Associated General Contractors, Alaska State Chamber of Commerce, Anchorage Chamber, Greater Fairbanks Chamber of Commerce, Kenai Chamber of Commerce, and Juneau Chamber of Commerce. Fox lists other organizations supported through funding by ExxonMobil, such as the Anchorage Museum, Campfire USA, Covenant House Alaska, American Red Cross of Alaska, Alaska SeaLife Center, the University of Alaska Pick-Click-Give program, United Way of Anchorage, and many others. “Not only do we make fi nancial contributions, but ExxonMobil also supports Alaskan communities in the form of various employee volunteer efforts,” she says. “Many of our employees serve as volunteers for such organizations as Junior Achievement, Habitat for Humanity, and the Salvation Army.” “We are also the longest-standing supporter and principal partner of the

Iditarod Sled Dog Race,” says Fox. ExxonMobil has been a continuous sponsor of the race since 1978, and is the sole sponsors of the Iditarod Education Program, which brings “the world’s most exciting and challenging sporting events into the classroom.” The program lessons are adaptable to any grade level and apply the fundamentals of math and science in a dynamic way that sparks enthusiasm and imagination for students. ExxonMobil also recognizes the importance of hiring Alaskans and contracting with Alaskan businesses who understand the unique aspects of North Slope development. The company invests in communities all across Alaska by using local suppliers and contractors. “One of our objectives—to the extent reasonably possible and consistent with applicable laws—is to maximize the number of local hires and identify the most qualified candidates from across the state,” says Fox.  Margaret Sharpe writes from Palmer.

June 2013 | Alaska Business Monthly

special section

Building Alaska

Photo courtesy of the U.S. Army Corps of Engineers – Alaska District

Manson Construction Co.’s suction dredge on duty at the Port of Anchorage during annual routine maintenance dredging near the dock face in September 2012. The dredge returns this summer with a $7.3 million contract to remove accumulated sediment to retain safe ship navigation.

U.S. Army Corps of Engineers Projects Summer plans move forward despite decreased budget By Vanessa Orr

t’s summertime, and that means construction season in Alaska. But this year there will be a little less building going on, especially at military bases around the state. Cuts in military construction spending nationwide by the U.S. Department of Defense are affecting the number of contracts awarded for work; stagnant spending in civil and environmental projects is also affecting the number of projects in fiscal year 2013. In December 2012, it was announced that the U.S. Army Corps of Engineers66

Alaska Business Monthly | June 2013

Alaska District would be facing drastic budget cuts to its military construction program. The budget for FY12 was $245 million for nine military construction projects: The FY13 budget is $18 million to fund two projects. “Specific military construction projects authorized by Congress have been on the decline recently; in FY13, we will only be working on two of these projects, both modified record fire ranges,” explains Mark Coburn, acting chief of the military branch of the Corp’s

Alaska District Programs and Project Management Division. “These projects, which will take place at Joint Base Elmendorf-Richardson and at Fort Wainwright, will include building a number of facilities and redesigning the small arms firing ranges.” The Elmendorf-Richardson project is budgeted at $7.9 million, and Wainwright is expected to come in around $10.4 million. “Depending on the bids we get, the projects could cost more or less than that,” Coburn says. “We’ve alwww.akbizmag.com

Trailboss Solutions LLC

BusinessPROFILE

Your one-call solution for construction, design and remodeling

hen Scott Allen, co-owner and general manager of Trailboss Solutions LLC, describes his company as a “one-call solution for all your construction, design and remodel needs,” he means it. Trailboss is a full-service contractor specializing in custom home construction, additions, remodels and interior design. The Anchorage-based company also offers everything from kitchen and bath design and remodel services, to building design services, commercial tenant improvements and even handles handyman/small projects. The firm serves Anchorage, Girdwood, Eagle River, Palmer, Wasilla and beyond. Much of Trailboss’ business encompasses residential projects such as custom homes, additions and remodels, kitchen and bath remodels, and interior design. The company provides clients with a detailed proposal and works closely with them from the initial design concept to project completion. It’s a process that Allen thoroughly enjoys. “We can take something that’s old and dated and walk away with something that’s beautiful and functional,” says Allen, who has more than 22 years of experience in the residential/commercial construction industry. “It’s a great feeling.” Trailboss often uses a “residential eye” to dramatically transform commercial spaces. The recent renovation of the 3,000-square-foot medical of office for the Diabetes and Lipid Clinic of Alaska is a prime example. The goal was to create an open, welcoming, nonsterile space. Mission accomplished: “When you walk in, it’s a warm and inviting environment,” Allen says. Trailboss has the expertise to handle all types of construction and remodel projects—and no job is too small. That includes handyman services, ranging from changing light fixtures to helping homeowners finish “do-it-yourself” projects. The segue www.akbizmag.com

to handyman services was a natural progression prompted by customer requests. Allen explains: “We decided that we would take care of our clients. It’s kind of morphed into a good part of the business.” Taking care of clients is “everything,” according to Allen. It involves making sure they receive excellent service, good value for their money and personalized attention. “Clients are not just a number,” Allen says. “We consider them part of the Trailboss family.” Allen has a passion for his work, and he takes it very personally. That translates into a positive experience for clients. “When you entrust your project to Trailboss, you receive unparalleled integrity, value and craftsmanship with experienced professionals to ensure your project is completed on time and on budget,” Allen says. Highly Recognized Those guiding principles have served the company well. Trailboss has grown each year since it was established in 2007. And thanks to the dedication of its 20-plus employees, the company has received statewide and national recognition. Trailboss has consistently P A I D

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

made Qualified Remodeler Magazine’s Top 500 list, ranking No. 269 in 2012, No. 395 in 2011 and No. 495 in 2010. The national award is based on installed remodeling dollar volume, industry certification, industry association membership, and community service, among other factors. Within the state, Trailboss has been published in Alaska Home Magazine every year since 2008. In addition, some of its kitchen projects have been featured in Alaska’s Best Kitchen Magazine. Trailboss Solutions is a member of the Anchorage Home Builders Association and National Kitchen and Bath Association, as well as an associate member of the National Association of Home Builders.

Scott Allen, General Manager 201 E. 3rd Ave. Anchorage, Alaska 99501 Phone: 907-646-1403 Fax: 907-646-1409 www.trailboss-solutions.com

June 2013 | Alaska Business Monthly

ready sent out RFPs and received proposals, but I am not at liberty to divulge who will be awarded the contracts yet.” At the time of this story, funds had not yet been released for these projects as a result of the Congressional sequester that began in March 2013. “Assuming that we get the financing in time, we’re hoping to start these projects early in the construction season; it should only be a one-season contract,” Coburn says. “It does have the potential to kick into a second year if the funds are not awarded early enough.” This is quite a change from construction seasons past, when the Corps had ten to fifteen projects under way. According to Coburn, the good news is that FY14 looks to be a better year, with two projects coming online at Fort Wainwright as part of the Aviation Task Force bed-down. “Aviation Task Force 3B is budgeted at $58 million and includes four separate contracts for a warm storage hangar, company operations facility, organizational vehicle parking lot, and the demolition of some existing hangars,” he explains. “Aviation Task Force Phase

Alaska Business Monthly | June 2013

4 consists of three contracts at a cost of $42 million for two separate battalion headquarters and a company operations facility. Assuming that these funds are not tied into any other sequestration acts, it should be a good year for Fort Wainwright.”

Civil Works Projects Just as the military construction budget isn’t faring particularly well in FY13, neither is the Corps’ civil works budget. “We have no projects in the president’s budget for construction; so right now, that number is zero,” says David Martinson, program and project manager, Civil Works, Alaska District, Corps of Engineers. “The work plan number is pre-decisional, so I am not able to release that yet.” There are a few projects already scheduled for FY13, including work in Sitka, Unalakleet, and Unalaska. Plans at the Sitka Boat Harbor include a $4.9 million project to extend the breakwater to provide additional protection. “Western Marine has been awarded the contract at the Sitka Boat Harbor to close the gap in 315 additional feet

of breakwater as a way to reduce energy coming into the harbor and reduce damage to vessels at Eliason and Thomsen boat harbors,” Martinson says. Construction will begin in June for the placement of rock. “In Unalakleet, West Construction was awarded a $7 million project in December 2012 for a shore protection project that includes 450 lineal feet of rock revetment,” Martinson continues, adding that the city is also undertaking a 350-foot segment of the project. The Corps has also awarded a contract to Pacific Pile & Marine to transport, construct, and install floating concrete modules for a floating breakwater at Unalaska Harbor at a cost of $11 million. The Alaska District also has dredging projects planned for this summer across the state. “The budget for dredging projects is $13.5 million statewide, which is quite a bit lower than last year,” explains Allen Churchill, chief of the Operations Branch and operations and maintenance program manager, Alaska District, Corps of Engineers. “One of the reasons for this is that we got funding for work in Petersburg and for two Ko-

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Photo courtesy of the U.S. Army Corps of Engineers – Alaska District

diak harbors as a result of special appropriations that Congress passed last year for low-use harbors. Approximately $30 million was appropriated and Alaska got $10 million of it, but there has been no mention of these funds for FY13.” The three non-annual dredging projects taking place in FY13 include a $4.6 million Phase I dredging of the Cook Inlet navigation channel; an almost $4 million contract for dredging of St. Paul and St. Herman harbors in Kodiak; and a $2.4 million contract for the dredging of a small boat harbor in Petersburg. The Cook Inlet project is set for midMay to the end of June, with the goal of restoring some of the channel’s capacity. “This is the first phase of a multiple-year maintenance program for the channel which was built in 1999 and finished in 2000,” explains Churchill. “This is the first time that we’ve gone back in to remove material shoaled in over the past thirteen years. The project won’t change ship traffic but will improve pilots’ timing coming across the Inlet and improve safety.” The dredging of St. Paul and St. Herman harbors in Kodiak is scheduled to

Three of fourteen concrete ﬂ oating breakwater modules are towed out of Concrete Technology Corporation’s graving dock in Tacoma, Washington. These modules are virtually complete and being turned over to the Prime Contractor, Paciﬁ c Pile & Marine. They were subsequently loaded onto a barge and delivered to Unalaska’s Carl E. Moses Harbor for installation. Delivery and installation were completed last summer, and this summer the anchor chains will be adjusted.

start in July and peak in the fall when the north small boat harbor in Petersburg will be dredged at a cost of $2.42 million. “The Petersburg project will take until next spring to complete because the project dovetails in with work that the city is doing on the waterfront includ-

ing building infrastructure and removing old docks and building new ones,” Churchill says. “Once they remove the old docks, we’ll go in and clean up.” In addition to these one-time projects, annual routine maintenance dredging projects include the Nome small boat

Integrated Design-Build Solutions for 35 years GENERAL CONTRACTING | INDUSTRIAL MECHANICAL | CONSTRUCTION MANAGEMENT Arctic & Remote Site Logistics • Water & Fuel Systems • Education • Government • Healthcare Commercial • Residential • Gaming • Pre-engineered Buildings www.akbizmag.com

June 2013 | Alaska Business Monthly

Photo courtesy of the U.S. Army Corps of Engineers – Alaska District

A bag ﬁlled with contaminated soil at the Northeast Cape Air Force Station formerly used defense site is removed to a staging area before being transported by barge for disposal in August of 2012.

harbor ($1 million); Dillingham harbor ($776,000); Homer’s small boat harbor entrance channel ($341,000) and Ninilchik harbor ($206,000). Dredging is also scheduled for the Port of Anchorage for $7.3 million. “The Port of Anchorage has typically been the biggest dredging project in the state and it still is, but quantities of dredging at the port have trended downward over the last three years,” Churchill says. “Some of the decrease in the budget over the years is due to this change in siltation patterns, but it is a delicate situation because we don’t know when that trend will change again,” he adds. “When there is more sediment than is budgeted for, like happened in 2003-04, there’s not enough money to pay the dredging companies, and the shipping companies become worried that they can’t stay at port long enough to get unloaded and reloaded for their outbound trip due to shallow depths during the tide cycle.”

Environmental Projects The Alaska District’s Formerly Used Defense Sites (FUDS) program has several environmental remediation proj70

Alaska Business Monthly | June 2013

ects planned for this year, according to Kenneth Andraschko, Alaska FUDS program manager. “Our 2013 FUDS total project budget is $44 million, about the same as last year,” he explains. “Last year, we got plus-up funding (additional Congressional appropriations) and we hope to see that this year as well. Last year, we ended up right around the $50 million mark, but we’re working with a $44 million base budget now.” This past winter, the field season for Umiat Test Well No. 9 was finished, with crews removing 2,440 cubic yards of contaminated soil at a cost of $15 million. The contaminated soil is now being transported to a landfill in Oregon. This coming winter, the Nuvagapak FUDS has a nearly $1 million project at Kogotpak to finish removing soil contaminated with lead and PCBs. Crews performed the removal action last summer and are currently demobilizing the site. Remediation work at the Northeast Cape Air Force station FUDS on St. Lawrence Island continues with an $8 million restoration project for the excavation of PCB and petroleum-contaminated soil. “This project has been going

on for about four years, and depending on the budget, we hope to knock out the vast majority of contamination this fiscal year,” says Andraschko. “We plan to mobilize a barge to St. Lawrence Island in late June or early July after the sea ice retreats. After setting up camp on the southeast side of St. Lawrence Island, crews will start excavating and stage the contaminants to be hauled out by the end of September to go to the Lower 48.” A contract is also planned for this summer to remove contaminated soil and other items at Fort Pierce, a former Army installation used to protect the former Sitka Naval Base; it is expected to be budgeted at more than $1 million. A project is also planned for the Amaknak site, a former Naval operations base in Dutch Harbor, to remove pipelines from an old World War II fueling complex. This project is anticipated to be awarded in late summer with work beginning in the fall at a cost of more than $1 million.  Vanessa Orr is the former editor of the Capital City Weekly in Juneau. www.akbizmag.com

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Several machines from Cruz Construction’s extensive Cat fleet hard at work in Grayling, AK.

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special section

Building Alaska

Building Confidence in Women Builds Alaska Celebrating 40 years in Alaska

Photo by Misty Dawn Crim

By Margaret Sharpe

National Association of Women in Construction Alaska Chapter ofﬁ cers, from left, Darla Hall, Immediate Past President; Cheri Lipps, Treasurer; Darcey Gelderman, Director; Tamie Taylor, President; Tia Quilter, Corresponding Secretary; Larissa Phillips, Director; Traci Johnson, Recording Secretary; Evie Clark, Vice President.

embership has its privileges: A true statement for the National Association of Women in Construction (NAWIC). For the Alaska chapter, those privileges extend beyond the membership. The core purpose of the association is to enhance the success of women in construction through education, networking, mentoring, leadership, and community involvement. For the past forty years, the byproduct has radiated throughout the industry and community. Tamie Taylor, director of operations at Bering Sea Group, has been a member since 1992 and served as board member, chapter president, and even national president in 2007/2008. “The purpose is to provide a comfortable atmosphere for women to be able to learn about the industry, and to become better employees and more-informed coworkers for the industry.” Taylor points out that the goal is not only about women, it’s about promoting the business of construction. “We want to enhance the success of women, but many

Alaska Business Monthly | June 2013

times we do that through helping the whole community, like our involvement in Habitat for Humanity and our scholarships for both men and women.” NAWIC veteran Joyce Frostad, member since 1978, was president of the Anchorage Chapter in 1982 when she worked for a mechanical contractor. She is currently the business manager, job cost controller, and corporate secretary/treasurer for Neeser Construction, Inc. “NAWIC is a wonderful organization for education, networking, and confidence building of its members. These qualities are invaluable to employers.” Frostad explains how NAWIC enhances relationships among construction companies. “The interpersonal involvement between members can be very beneficial to the business owners.” Frostad used to run a class called “Introduction to Construction,” which covered the basics—a boot camp of sorts— to initiate the members and prepare them for the terminology and physiology of the industry. “It was an entry-level overview

from blueprint reading to bidding, and estimating to insurance, bonding, and accounting. Many members’ employers were involved in teaching segments of this class.” People from every aspect of construction are invited to become involved by participating in various Alaska Chapter events, including presenting at the NAWIC monthly meetings. Does the accountant of an engineering firm really need to understand grade work at a construction site? For NAWIC, the answer is always yes. Knowledge can only improve one’s overall picture of the process and the end product. Seeing the big picture, even if your role is perceived as small, can help to shape the masterpiece. Members of NAWIC have a better understanding of their position in the business of construction. Evelyn Clark, owner of EPiC Writing , has been a member since 1981 when she started work at an architectural firm. “I didn’t really know what an architect did, so NAWIC was instrumental in www.akbizmag.com

Photo courtesy of NAWIC Alaska Chapter

Some of the members of the National Association of Women in Construction Alaska Chapter, back row, from left, Theresa Lawless, Karen Zemba, Jamie French, Tia Quilter, Jan Cawvey, Kathleen Castle, Leanne Boldenow, Holly White, Lynn Barrett. Front row, from left, Cindy Sand, Judy Montgomery, Evie Clark, Joan Vanucci and Traci Johnson.

introducing me to the entire industry.” At the time, Clark was a bookkeeper. “I needed to understand the various phases of construction so I could bill correctly for my employers.” Clark’s exposure to women in construction, being able to ask questions about unfamiliar terminology, and seeing the different facets of her industry were “a big benefit for me when I first joined.” Today Clark is a consultant and does proposal writing and technical editing for architects, engineers, and contractors using her skills developed through NAWIC and honed through years in the industry. “I wouldn’t have had the self-confidence to do that on my own if it hadn’t been for my associations built through NAWIC.” Seasoned professional but new to the construction business, Joan Vanucci joined NAWIC two years ago. She is office manager for Construction Specialties of Alaska LLC. “Membership helped me connect with other women in the industry.” The training available helped Vanucci get up to speed to maximize her effectiveness for her company. “We’re a small business, so listening to other’s stories, like certified payroll—there are so many rules and regulations, things to learn, the correct way to do things specific to construction—it really is a topto-bottom education system.” “The challenge NAWIC faces is getting women to know about the organization and getting them involved,” says Taylor. Members receive mentorship, guidance, educational opportunities, and camaraderie. “Truly, that’s how I became successful in the industry—by going to dif74

Alaska Business Monthly | June 2013

ferent events at NAWIC,” she says. “I was provided the opportunity to be a leader and to learn, to have professionals available to me to answer questions. With those leadership skills and trainings that they offered, I became successful. Then I had the basis of knowledge to be able to ask the next set of questions, and then I built on that knowledge. It was a stepladder in helping me learn the industry.” “I found out about NAWIC from UAA because they offer scholarships,” says new member Holly White, who works for Cook Inlet Housing Authority. “My work encourages employees to join organizations, so I decided to check out NAWIC and really liked their mission.” White is currently going through the Construction Management Degree Program at UAA. “I’ve been working as a Contract Administrator for a year now and love it.” Cindy Sands is the project administrator for Bristol Industries, LLC, and has been a NAWIC member for the past three years. Although she is mainly in an office setting, she explains that “some of our members are head recruiters for the operators/engineers, carpenters, and other unions. These ladies all had to learn to operate tools, do carpentry, and know how to run heavy equipment before they could be recruiters.” “We need Alaska to know that NAWIC is an opportunity for any woman in the industry. You don’t have to be a tradeswomen. You can be bookkeeper, an insurance salesperson, administrative support, a project manager, engineer, or owner,” says Taylor. “If you want to get involved in the industry, if you

want to learn a little bit more to give you that overall prospective of the industry, NAWIC is a great way to get that.” “Membership is from all areas of construction,” says Sands, “from office to field, upper management to beginners. Anybody, in any aspect—they will find a family with us.” NAWIC is a place for women in the industry to come together. The meeting atmosphere breaks down barriers that might prevent the “average Josephine” from approaching a superior in the workplace. At the meetings, peoples titles are secondary; the camaraderie between members is primary. “It’s funny,” says White, “when you get a CFO or someone out of the office environment, they’re approachable at this point. Everyone is on a level field, members helping members.” That free exchange of knowledge across the ranks is clearly what makes the members of NAWIC successful in their careers. “That’s what we really want everyone to know. To come together with women in construction so that we can learn from each other, share our experiences, which helps all of us develop and grow in the industry,” Sands says. “The cross-training gives exposure to all parts of construction,” White says. As one of the younger members in age and experience, she appreciates associating with women who are leaders and successful. “Having someone to look up to, camaraderie and community, it’s nice to have the positive female role.” NAWIC provides that positive example to non-members through community youth programs, such as Girls Scouts and STEM (science, technology, engineering, www.akbizmag.com

and mathematics). Showcasing successful women in the industry lets young girls know that construction is a viable option for them. Vanucci adds, “Our industry is not just the physical construction. Not just cement and bricks, there’s so many opportunities in that industry, like accounting, sales, advertising, office work, solicitor, fieldwork, and proposal writing.” Although the “W” in the acronym is for women, NAWIC promotes all Alaskans. Their scholarships and job bank (nawic-ak.org) are available for everyone. “We want to promote our industry, not solely women—all Alaskans and all the construction and engineering in Alaska,” says Sands. “For our job bank, we network with companies that are looking for employees. It’s a way to get word of construction jobs out to the community.” As NAWIC reaches its forty-year mark in Alaska, what does that durability mean to the members? For Taylor, “The fact that this chapter has been able to continue is great. We are thriving and still reaching out to the youth and to women in the industry to be mentors, to be leaders, and to help them be successful. The fact that we are still going strong after forty years is a phenomenal feat!” For Clark, the forty-year longevity is “Remarkable when you think about it. For me, it means thirty-one years of friendship and education.” According to Sands, the forty years are “important and exciting because Alaska is such a boom and bust state. To be able to maintain a group of women in this industry for forty years consistently shows the strength of the women, the strength to sustain their careers in the industry in Alaska, even through the booms and busts.” Long-standing member Frostad adds that this year’s anniversary “means forty years of providing education and mentoring to women in the industry, giving back to the industry through scholarships, and giving to the community through participation in various projects such as Habitat for Humanity.” For Alaska, it means forty years of improving, educating, and advancing the construction industry through building the confidence of the workers and building Alaska.  Margaret Sharpe writes from Palmer. www.akbizmag.com

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special section

Building Alaska

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Alaska Business Monthly | June 2013

Photo courtesy of CIRI

few blocks away from the hustle and bustle of Dimond Boulevard, King Street in south Anchorage is a mecca for industrial commerce. Nearby on C Street, land is being developed left and right, much of it for commercial business. The changes have caused a little tension between commercial and industrial uses in the area, and the Municipality of Anchorage Community Development office plans to conduct a study of industrial land in the South Anchorage area. Cruise down King Street and you can find a sampling of industrial companies that build Alaska in one way or another. Contech Engineered Solutions, a civil engineering company that works on storm water, drainage, and runoff solutions (their yard contains acres of glittering corrugated pipe), is at 100th Avenue. Charlie’s Produce is nearby with a warehouse and yard busy with the company’s distinctive box trucks delivering fresh produce, flowers, and plants around Southcentral. Many of the users have been there for years. Arctic Slope Regional Corporation’s fabrication shop is there, as are

The roundabout at C Street and Klatt is adjacent to the ﬁ rst of ﬁ ve buildings CIRI hopes to build on its land that stretches north more than forty acres.

Udelhoven Companies and Fairweather LLC. Arctic Slope Regional Corporation makes production modules for the North Slope, among other oilfield needs, at the fabrication shop. Udelhoven was founded in Alaska in 1970 to serve oilfield producers and general contractors. Fairweather was founded in 1976 to provide remote aviation weather observation services but today performs medical, aviation, logistics, weather forecasting, and other services for the oil and gas industry.

Among the oilfield service companies are many other run-of-the-mill users, the kind every community needs to keep running: a handful of auto repair shops, an industrial carpet cleaner, several home builders and commercial construction companies, plumbing and heating and ventilation supplier Keller Supply, Blinds Unlimited—all have shops large and small along King or its primary offshoot, Schoon Street. www.akbizmag.com

Commercial Hot Spot Commercial development is bustling in South Anchorage. Not long ago, South Anchorage was the hinterlands. Now there’s a Target at 100th Avenue and a Cabela’s under construction on the other end of the same lot. Just down C Street, another large lot owned by Cook Inlet Region Inc. (CIRI) is being readied for development, though CIRI Spokesman Jason Moore says the corporation doesn’t have specific plans for the land. Target opened a 170,000-square-foot store in 2009 and Cabela’s stated that its 100,000-square-foot superstore, the first in Alaska, should open in spring 2014. Both stores employ about two hundred people. More stores—and jobs—are on the way. Between Cabela’s and Target is space for several additional stores, and that type of high-end retail property generally has outparcels, or lots that are on the property but not connected to the anchor stores, available as well. Tim Potter, a senior member at Dowl/HKM, the engineering firm that worked with Target during development, couldn’t speculate what stores might build there.

“Arctic Tails was here, now King Street Brewery. A lot of different things are starting to pop up and I really like it. It feels like a little tiny town.” —Mikal Preston Owner, Studio 49.

Less Conventional Users Increasingly, the industrial corridor has become home to some less-conventional users. Arctic Tails—a dog daycare, training, and grooming facility— was until recently a tenant along King Street. And for the last five years, Studio 49, a dance studio, has operated from a King Street store. “Arctic Tails was here, now King Street Brewery. A lot of different things are starting to pop up and I really like it. It feels like a little tiny town,” says Studio 49 owner Mikal Preston. Teaching dance amid the auto repair shops and oilfield service companies works perfectly for Preston—she says it’s been a longtime dream to have a dance studio on King. Most of her customers live on the Hillside or in South Anchorage. She previously ran her stu-

dio from a Midtown store and the space she was able to afford was smaller and less convenient for her dancers. “There are no other dance studios on this road and the proximity of the things around it are really important,” she says. Parents can drop their children off for class, run to Costco, and maybe pick up supper on the way home. The other big bonus, she says, is space. Moving from Midtown to King Street, she more than doubled her square footage and is paying only $300 more for rent. Her previous studio was so small she sometimes had to rent other venues so the dancers could practice on a stage the size of the one they would be performing on. “Here, I can have fuller classes, more assistants, and more things going on,” she says.

Tight budget? Aggresive schedule? Limited skilled labor? Challenging energy codes?

PROBLEM SOLVED www.tekR.com www.akbizmag.com

800-315-9806 June 2013 | Alaska Business Monthly

Nearby, at 11000 C Street, CIRI built the first of what it hopes will be five buildings on a thirteen-acre tract. The first building provides 40,000 square feet of office space for Doyon Limited. Another nine-acre tract near the intersection of C Street and O’Malley Road is planned for development through the project’s second phase. Moore says another parcel, nearly twenty acres, is prepped for development on the other side of O’Malley Road. CIRI has no current plans to build at this time, he says.

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Alaska Business Monthly | June 2013

Growth Brings Tension, Need for Study The changes have caused tension between two land users: commercial and industrial. In its former role as the outskirts of Anchorage, a considerable amount of land in South Anchorage was zoned industrial. It made sense—it’s a warehouse area and is home to Anchorage Sand & Gravel’s concrete batch plant and oﬄoading facility for gravel hauled in from the Valley, among other industrial users. But as more and more people move to South Anchorage and more land has become accessible, some of the land zoned industrial, I-1 and I-2, has become commercial in use. And while Municipality of Anchorage Community Development employees say the zoning category currently allows a wide range of commercial as well as industrial uses, pairing the two doesn’t always work. “We don’t have a lot of I-2 around the bowl,” says Tom Davis, senior planner with the Municipality. “[It] maybe wouldn’t be compatible with a retail customer who may just want to go to the grocery store. [Some commercial uses] don’t mix well with the heavy trucks and noise.” Davis says a recent study shows the city needs more commercial land in South Anchorage. A 2012 commercial land study conducted by Municipalityhired specialists highlighted a significant need in that area. “It looks like the commercially zoned areas alone were not adequate to provide enough buildable lands for future commercial activities in South Anchorage,” Davis says. The largest deficit was in the C Street corridor between International Airport and Huffman roads. It also stretched west www.akbizmag.com

Natural Evolution of Land Uses? Potter says he doesn’t believe land should be set aside strictly for industrial uses. Let those uses migrate outside Anchorage, he says, and allow the industrial property to be used for highend commercial. “If you’re using the land for commercial instead, you’re creating a lot of jobs … real estate property taxes are going to go up and that helps offset the cost of running the city,” he says. An industrial business operating on a twenty-acre parcel might employ ten or twenty people, while a store like Target or Cabela’s operating on that same parcel will likely provide ten times that many jobs, he says. Commercial broker Chris Stephens says he agrees with Potter, that commercial property typically has a much higher value to the community than industrial land, but both are needed. “It’s appropriate for Anchorage to have industrial land, but low-value uses like assembly yards, lay-down yards—the land in Anchorage is getting too valuable for that,” Stephens says. “But not everything should go out of Anchorage.” www.akbizmag.com

Photo courtesy of CIRI

to encompass much of Dimond Boulevard and east to include land on Abbott Road. The Municipality recently finished rewriting its zoning code but Community Development Director Jerry Weaver says industrial uses in South Anchorage need further review. “Some of our industrial zoning is not properly located; it’s outdated,” Davis says. “With the Title 21 rewrite, we’ve changed the allowed uses to be more focused on industrial. So now we have to take a look at the I-2 land and see if those uses match.” Davis says there’s an apparent need to clearly define what the Municipality’s industrial needs are, and to decide whether some of the land now zoned for industrial uses should really be zoned for commercial uses. For now, Weaver says the area was “bubbled out” in Title 21 to allow existing uses to continue until the Municipality can study current and future needs in that part of town. Weaver says the study would be done when his department can spare the resources to tackle it. “I hope by the end of the year. If not, then next year,” he says.

An aerial view from the Klatt Road and C Street corner of South Anchorage.

Stephens says the market is creating shifts in a gradual fashion, pushing some industrial users out of the city, and that natural process should be allowed to continue. Title 21 should help that. But Anchorage needs to be conscious of the whole picture: what land it has available and how it’s used, he says. “Anchorage is just land-short,” Stephens says. “We have to have residential land, multifamily land—land of all

different types.” He believes it’s a good idea for the municipality to take another look at the industrial land and evaluate how industrial and commercial uses fit together in that section of town. “The two should work together,” he says.  Rindi White is a freelance journalist living in Palmer.

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special sections

Building Alaska & Transportation

STIP it UP! Planning transportation projects By Nicole A. Bonham Colby

nown colloquially as the “blueprint” or “forecast” for federaland state-funded transportation projects, the Statewide Transportation Improvement Program (STIP) drives the process for converting a mix of federal and state—and sometimes local—dollars into tangible development and maintenance of Alaska’s complex transportation system. Currently one year into the 2012-2015 edition of the four-year program plan, state transport officials are managing hundreds of STIP projects identified for program funding during the four-year span and currently in various stages of development. The list does not include those projects that are already in final construction phase or those funded entirely from prior-year STIPs. “Overall, the [current] STIP is fairly large—three hundred plus pages—

Alaska Business Monthly | June 2013

and I think there are around 290 to 300 projects listed—[identifying] the funding that will be in demand,” says Michael A. Vigue, division operations manager of the Alaska Department of Transportation & Public Facilities’ Division of Program Development. To the layperson, the published plan and its ongoing, dynamic amendments give an idea of the transportation-related construction that is ahead or in progress across the state. Current STIP projects identified for funding in the current four-year plan span the state from top to bottom: from extension of the existing Laura Madison Road in Barrow to construction of a sewage lagoon access road in Ambler, dock improvements at Akutan, and paving a two-lane road on Prince of Wales Island near Naukati.

Program Scope The program, designed as the state’s ongoing effort to develop, improve, and preserve its transport system, is required by federal statute for the state to use federal transport monies available through the Federal Highway Administration (FHWA) and Federal Transit Administration. The state receives some $485 million annually from the FHWA, says Vigue. The STIP does not encompass all transport projects. For example, it does not include projects that are fully funded by the state or those covered under the Federal Aviation Administration or Municipal Harbor Facility Grant monies. “The vast majority of the projects in the STIP are funded by the FHWA. That’s the largest funding program that we have,” says Vigue. “As far as the www.akbizmag.com

program goes, there are a lot of different funding categories and each of the categories has their own eligibilities.â&#x20AC;? Funding largely occurs at a ratio of 90 percent federal funds and 10 percent state funds. Spending categories reflected in the STIP include the National Highway System (NHS), which encompasses those routes designated as critical highways and ferry links providing access to population centers, borders, and public transit; the Community Transportation Program, which allows local governments, tribes, and others to partner with the state and federal governments to address local transportation-related needs; the Alaska Highway System, which spans a network of state highways, roads, and ferry links not otherwise part of the NHS; the Trails and Recreational Access for Alaska, encomwww.akbizmag.com

June 2013 | Alaska Business Monthly

Communities like Ketchikan, shown here, rely on state and federal transportation funding to maintain critical accessways such as the Tongass Highway, which is part of the federal National Highway System. The highway is a frequent recipient of STIP improvements. The current STIP includes funding for the Ketchikan ferry terminal improvements. © Kurtis R. Morin

passing bike and pedestrian paths and trails, preservation of historic sites and other recreation-style improvement; and, finally, a category called Mandatory Programs, which provides funding for specific federally-required transportation actions.

Moving Parts Part of the challenge of managing transportation projects from initial scoping to on-the-ground construction is adapting the project to change midstream, according to transportation planners. At any juncture of the project, new information and influences can pose a delay or even an alternative design. In the process of ensuring steady progress, planners also must be cognizant of federal funding requirements that require ongoing use of designated federal funds. “Basically the STIP is a planning document,” says Vigue. “It’s not an accounting document. It forecasts projects that are going to be completed with the money to be received from the federal [government]. Projects happen in phases. We have an initial phase where we start up a project. Phase II is where we do the environmental document and we do the design work for the proj82

Alaska Business Monthly | June 2013

ect. That’s where we start. The projects that you see in the STIP are in various stages of development...there are many projects already under design, but may show up in the STIP because they need right-of-way or construction money.” As an example, Vigue poses a hypothetical: “If you were living in Juneau and you saw a project in the STIP that had Phase IV in a particular year—say, Phase IV in FY13—you could anticipate that construction was imminent.” The program is dynamic and is subject to ongoing revision and review. “As you’re working through the process, things happen,” says Vigue. “ Say you are working on an environmental document and something results. So you have to change...Projects are moving through this federal process and sometimes they get hung up. Some move faster, some move slower.” The amendments are designed to keep the program efficient and to ensure full utilization of available federal funding. “You have to use [federal funds] in the year you receive it. If you don’t use it all, they take it and distribute it to other states,” Vigue says. It’s in the state’s best interest to use all federal funds allocated to the state every year. Such changes are incorporated in the plan via review and

amendment every two months, he says. “So the STIP is really a very dynamic document,” Vigue says. It’s not as though the department publishes the four-year plan its first year and then is done for the next four years, he says.

Moving Ahead for Progress The STIP is designed by its very nature to reflect administrative priorities as one of its many factors of consideration. In that light, the state’s plan must take into account directives from each federal administration to ensure that the state doesn’t risk penalties that would threaten its favorable funding ratio. Last year in July, U.S. President Barack Obama signed into law the Moving Ahead for Progress in the 21st Century Act, referred to informally as MAP-21 and considered by the administration to be the first long-term highway authorization enacted since 2005. The Act funds national surface-transportation programs at more than $105 billion for fiscal years 2013 and 2014. The concept was intended to streamline processes and implement performancebased metrics. According to Vigue, with MAP-21, Congress appears to have refocused the federal interest on the NHS, with www.akbizmag.com

some 58 percent of federal money now coming under the National Highway Performance Program. “I think they are looking at the road system that carries the most traffic, the most interstate commerce and is the most important for national defense,” he says. “That is where the majority of the money goes.” Congress also made it known that it expects the FHWA, together with states’ Departments of Transportation, to develop a set of performance measures for the NHS. Such metrics are currently under development via rulemaking procedure and soon will be out for public comment. Examples of NHS roadways in Alaska include its major highways, such as the Seward Highway, Richardson Highway, Parks Highway, and others; along with smaller inter-modal roadways such as Egan Drive in Juneau. “That’s where the majority of the traffic is and the majority of freight movement occurs, where commerce occurs,” says Vigue. Along with strengthening the NHS, MAP-21 also provided a reinforced focus on safety, specifically the Highway Safety Improvement Program. “Safety is a huge issue,” he says. “They felt more dedicated funding to safety was an important goal.”

and to accommodate increased truck traffic related to construction of the natural gas pipeline. Some $2.1 million in design and utility work was tagged for FY13, with another $14.2 million construction work for FY15. However, a STIP amendment released for public comment in May proposed to move that FY15 funding to FY13. Categorized under the Community Transportation Program partnership, the Livengood Creek Bridge is slated for replacement in the STIP, with $2.8 million in construction work slated for

FY13. The project will raise the grade and replace the bridge with culvert along the old Elliott Highway. As another bridge replacement for a NHS-designed roadway, the Brotherhood Bridge and Separated MultiUse Path to UAS, Stage I STIP project warranted funding of $21.5 million of design, right-of-way, and construction work in FY13 to replace the bridge, reconstruct the roadway, construct a new multi-use path, and reconstruct an existing equestrian path. The project will tie the approach roadway into the new

On The Ground Policy and programmatic framework aside, Alaska residents are likely more concerned with results of such planning. So what’s ahead for Alaska’s transportation system, based on the current STIP projects? Everything from bridge repairs to new passing lanes, sidewalks and dock reconstruction. Vigue highlighted a sampling of projects around the state that were approved in the 2012-2015 STIP. As part of the NHS, the Alaska Highway’s Tok River Bridge at Milepost 1309 is slated for replacement. According to the project description, the new bridge will be wider with vertical clearance restrictions eliminated. Design work of $375,000 was earmarked for the project in FY13 and construction funding of $11.9 million in FY14. As another NHS-related project, the STIP includes construction of six new passing lanes on the Parks Highway between Mileposts 163 and 305. The project is designed to improve safety www.akbizmag.com

June 2013 | Alaska Business Monthly

bridge, including improvements to the roadway’s intersection with Industrial Boulevard. The new multi-use path is to be located along the north side of Glacier Highway and Egan Drive from Riverside Drive to the west side of the entrance of Engineer’s Cut-Off. The equestrian path at issue lies between Industrial Boulevard and Engineer’s Cut-Off. In the Petersburg area, the roadway and sidewalks on Haugen Drive from Nordic Drive to Eighth Street are identified in the STIP for reconstruction. The sidewalk on the north side of Haugen Drive from Eighth Street to Twelfth Street will be extended, as well as the sidewalk on the south side of Haugen Drive from Eighth Street to the start of the bike path. The project also includes repairs to the road and bike path from Eighth Street to the airport, as necessary; and construction of a bike path from the terminus of the current path at the airport to Sandy Beach Road. Also, Haugen Drive will be resurfaced from the airport to Sandy Beach Road under the project. Lighting, turn lanes, improved drainage and intersections are included, as needed. The project is slated for $195,000 of design and rightof-way work in FY13 and another $3.5 million of construction and utilities work in FY14. Also in Southeast, $300,000 of design work was designated in FY13 and another $3 million in construction work during FY14 for improvements to the Ketchikan Ferry Terminal in the Ketchikan Gateway Borough. The project is designed to remedy structural and operational deficiencies at the Ketchikan terminal facility, to include replacing and refurbishing existing vessel mooring and berthing structures, a new mooring dolphin, new upland access, and building improvements. In the Mat-Su Borough, the STIP includes a project to rehabilitate a stretch of the Glenn Highway from King River, Milepost 66.5, to Cascade, Milepost 92, to preserve and extend the service life of the highway, to enhance safety, and to evaluate the need for passing and climbing lanes. The project is designated to receive $3 million for design work in FY13, with another $3 million for right-of-way work in FY14, another $1 million for right-of-way work in 84

Alaska Business Monthly | June 2013

FY15 and an estimate for future funds to complete the effort after 2015. Also in the Mat-Su Borough, the STIP reflects a project to widen the Parks Highway to four lanes between Wasilla and the Big Lake Cutoff and to include a bridge at the Wasilla railroad crossing. That massive project received $15 million for right-of-way work in FY13, is slated for another $14.5 million for construction and utilities work next year, and $53.8 million for construction and utilities work in FY15, with additional funds identified for subsequent years to completion. In Kodiak, the Kodiak ferry terminal and dock is listed for improvement as part of the existing STIP. The project is designed to reconstruct the Pier 1 dock facility, with $11.2 million slated in FY13 for construction and utilities work. In the Cordova area, the current STIP includes funding for construction of some four miles of road from Orca Cannery to the deep water port site at Shepard Point, with some $5 million of construction funding tagged for the current fiscal year. At Kake, some $400,000 is designed in the current STIP for design and right-of-way work in FY14 to rehabilitate the Silver Spike, Keku, and Boat Harbor Spur Roads from Church Street to Portage Bay Boat Harbor. An additional $3.2 million is slated for construction and utilities in FY15. The projects described are a fraction of those identified in the program for 2012-2015 funding.

Troubled Waters and Bridges As evidenced above and across the pages of the 2012-2015 STIP, bridge improvement is a primary concern of both present-day transportation planners and Congress. The rush-hour collapse in 2007 of the eight-lane, steel bridge that carried Interstate 35 across the Mississippi River in Minneapolis, Minnesota, triggered a firestorm of political scrutiny on the nation’s bridge system. That bridge collapse resulted in thirteen people dead and 145 people injured. “Since that time, bridges have received a lot of focus nationwide,” says Vigue. That includes new performance measures for bridges within each state. “It’s a performance measure that all of the state DOTs are watching closely,” www.akbizmag.com

he says. Part of that is due to potential funding penalties that could be incurred with any non-compliance. With the state department charged with using federal funding in the most efficient manner, such penalties could result in a funding ratio adjustment that would require a higher state match – am unfavorable possibility for any state. Further, in Alaska particularly, many of the state’s critical road systems don’t afford the luxury of alternate access and redundancy. As a result, “the bridges are pretty important,” says Vigue. “That’s a big focus for us. We are looking pretty diligently that bridge condition stays in good repair.” The department’s 2012 Alaska Bridge Report summarized the state’s inventory of bridges. The department is responsible for inspecting 983 bridges on publiclyowned roadways in the state, including 805 department bridges, 23 bridges owned by other state agencies, and 155 owned by cities and boroughs. Other bridges in the state are managed by their respective federal and railroad owners. Some 31 bridges designated as “structurally deficient” in the 2012 report are now identified for replacement or rehabilitation in the 2012-2015 STIP and in various states of progress.

AN ALASKA MINING PROJECT COMMITTED TO: LOCAL HIRE RESPONSIBLE DEVELOPMENT ENVIRONMENTAL INTEGRITY

From Here to There In a state whose geography and physical expanse challenges traditional transportation models, state planners are tasked with maximizing local, state, and federal dollars to achieve a consistently efficient, safe, and convenient method for Alaskans to transit their home territory. This ranges from the difficulty of maintaining roads through the rainforest in Southeast, to trail and bridge upkeep in the climatic extremes of the far North. In the words of Alaska Department of Transportation & Public Facilities then-Commissioner Marc Luiken in his introduction to the 20122015 STIP, the program “is really an investment guide more than a spending plan. The improvements that we construct today and plan for tomorrow must be managed as assets and preserved for future generations.”  Nicole A. Bonham Colby writes from Ketchikan. www.akbizmag.com

June 2013 | Alaska Business Monthly

special section

Transportation Totem Ocean Trailer Express has two weekly sailings between Anchorage and Tacoma, Washington. TOTE was the ﬁ rst cargo shipping line in the Paciﬁ c Northwest to use shore power while at berth. Photo courtesy of Port of Tacoma

Pilot Bread and Alaska Transportation By Julie Stricker

hristy Inman of Bethel likes pilot bread with peanut butter and jelly, but she’ll often eat the tasty crackers right out of the box. A man standing near Inman at her store, Corina’s Case Lot Groceries, says he likes to spread them with butter and put them in the microwave for ten seconds until the butter melts. The elders eat pilot bread with bacon fat. Salmon is another favorite topping, and pilot bread makes an excellent sandwich with moose burger. Some people top pilot bread with Crisco and sugar or ice cream and chocolate syrup.

Alaska Business Monthly | June 2013

Pilot bread is a beloved staple food in Alaska. The large round crackers have an extraordinarily long shelf life and can be found in stores and homes all over Alaska. There are several brands, but by far the most popular comes in a bright blue box imprinted with a cherubic boy wearing a jaunty sailor’s outfit. Sailor Boy Pilot Bread is made in only one place: an Interbake Foods LLC factory in Richmond, Virginia, which started making the crackers in 1919. Alaskans eat almost all of the pilot bread manufactured there, about three hundred

thousand boxes annually. Now consider the fact that 82 percent of Alaska communities lack road access. Getting it from the factory on the Atlantic coast to the table of an elder in rural Alaska is a logistical challenge that can include trucks and trains, boats, barges, and planes covering thousands of miles in the face of some of the world’s worst weather.

Pilot Bread’s Journey Here’s how it happens: After coming by rail and truck from a factory in Virginia www.akbizmag.com

to a port in Oregon, the first stop for a typical shipment of pilot bread is a onehundred-thousand-square-foot warehouse owned by the Alaska Commercial Company at the Port of Tacoma. “We are the number one supplier of pilot bread in the world,” says Walter Pickett, general manager and vice president of operations for the Alaska Commercial Company. The Puget Sound region has been the hub for Alaska commerce since the 1800s. Almost all goods destined for the Alaska market travel through Seattle or Tacoma, adding $4 billion to the regional economy and tens of thousands of jobs, according to a 2004 study. Seventy-five percent of all cargo that comes into Alaska via ship goes through the Port of Tacoma. At the Alaska Commercial Company warehouse a complex routing and handling system is in place to accomplish what on the surface is a seemingly simple delivery of pilot bread to a village store, says Bob Cain, vice president of logistics for Alaska Commercial Company “The story about our freight service in Alaska is pretty exciting and there are lots of parts to it,” Cain says. “We use all modes of transportation.” The keys are a schedule that minimizes the transit time it takes to get a product into the stores and a staff that has experience with the challenges of Alaska transportation. “Our total logistics are all built around serving rural Alaska in all its various modes: water, air freight, bypass mail, and barge,” Cain says. “It’s a pretty complex amount of processes and expertise that we employ in this very different and challenging environment. The only thing that parallels what we do is what our parent company does.”

lished in 1776 by Catherine the Great to oversee the Russian fur trade in Alaska. When the United States bought Alaska and took control of the territory in 1867, a group of investors in California bought the Russian company and renamed it the Alaska Commercial Company. Since its inception 146 years ago, the company has been sold and reorganized several times. In 1992, it was bought by The North West Company, Canada’s largest rural retailer. The North West Company goes back more than three centuries to the Hudson Bay Company fur trade. In the past twenty years, the Alaska Commercial Company has expanded to more than thirty communities in Alaska, each with its own logistical challenges. The company has stores in Southeast, across the Gulf of Alaska to the Aleutians, the Bering Sea, and all over Interior Alaska. “When you take the scope of who we provide goods and services for, it’s pretty amazing,” Cain says. “We pretty much go to the whole state. We also serve other retailers and private individuals in all these places. Our scope into rural Alaska and into Alaska is really from one end to the other, from north and south and east and west.”

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Centuries of MultiModal Transportation The Alaska Commercial Company is built on the roots of the Russian Trading Company, estab-

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• SNP • STG •CDB• SDP • DUT • ADK www.akbizmag.com

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One if by Truck Cain notes that of all the communities it serves, there is only one to which the Alaska Commercial Company can make deliveries by truck, and that’s only a few months of the year. But if you look on a map, the nearest road is dozens of miles away. That’s because you can only drive a truck to the community of Nuiqsut, a village in the middle of the North Slope, on a temporary ice road during the coldest, darkest part of the year. Access to communities in Southeast such as Craig, Klawock, and Yakutak is generally by barge. That’s how Ketchikan gets its pilot bread. The soggy, Southeast community celebrates pilot bread each May at the International Pilot Bread Festival, which includes a pilot bread recipe contest, a pilot bread limerick contest, a pilot bread skeet shooting contest, games, and more. Besides recipe contests and festivals, pilot bread is also tied directly to literacy in Alaska. Pickett, of the Alaska Commercial Company, notes that they partner with Interbake for an annual literacy campaign during which Alaska Commercial donates a portion of all Sailor Boy Pilot Bread sales, which goes to buy books for Alaska youth. Farther west, deliveries to remote communities such as Sand Point, King Cove, and St. Paul may use converted fish processing vessels. Ports and Airports The cornerstone of moving goods in Alaska is the Port of Anchorage. Ninety percent of what Alaskans wear, drive, and eat, including pilot bread, moves through the Port of Anchorage. Merchan-

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June 2013 | Alaska Business Monthly

Barge delivers freight to Togiak along the Western Alaska coast.

dise arrives twice a week from the Port of Tacoma in container ships owned by Totem Ocean Trailer Express and Horizon Lines. Those shipments arrive on Sundays and Tuesdays—so if you want the best selection at the grocery store, shop on a Monday or a Wednesday. Ninety percent of the fuel Alaskans use also comes through the Port of Anchorage, as does the bulk of the fuel used by aircraft at Ted Stevens Anchorage International Airport and military aircraft at Joint Base Elmendorf-Richardson. A 2011 study noted that a drawback to Alaska’s heavy reliance on the Port of Anchorage is that if traffic were disrupted, most retailers would have less than two weeks worth of merchandise on hand and would be in crisis mode swiftly if service was not restored. From the Port of Anchorage, goods are shipped by truck in the Anchorage area or a combination of truck and the Alaska Railroad to Fairbanks. The bulk of the items destined for rural Alaska are sent via the U.S. Postal Service’s bypass mail program.

Bypass Mail Seventy percent of bypass mail shipments originate in Anchorage, the other 30 percent in Fairbanks. The Anchorage airport is ranked as the 88

Alaska Business Monthly | June 2013

fourth-busiest cargo airport in the world, but most of the cargo that it handles is just passing through on its way to and from Asia and Europe. It also serves five million passengers annually. Larger carriers such as Era Alaska and Alaska Airlines are based here and carry freight to other hub communities around the state such as Bethel, Fairbanks, and Kotzebue. Bypass mail is a way for rural Alaskans to receive freight by air at reduced rates using private airlines. The Alaska Commercial Company is the single largest user of bypass mail in the state, Cain says. The Postal Service pays the airlines to deliver the goods, which can include groceries and other general merchandise, to stores in rural areas. It effectively bypasses the Postal Service’s network. It also costs the Postal Service more than $70 million annually, making it a popular target for budget hawks.

Corina’s Case Lot Groceries In Bethel, Christy Inman says four different airlines on a lottery system bring in bypass shipments to the Southwest hub six days per week. She and her husband own Corina’s Case Lot Groceries, which specializes in bulk sales of relatively nonperishable goods. It is one of four grocery stores in Bethel. From her store on the banks of the

Kuskokwim River, Inman sends shipments of items such as frozen food, dog food, twenty-pound bags of potatoes and two-pound boxes of Sailor Boy Pilot Bread upriver. Most goes by air as bypass mail, but in the winter residents of Aniak, Aniakchak, Stony River, Eek, and other communities will stop by after riding their snowmachines or fourwheelers down the frozen river to Bethel. In the summer, boats are plentiful. In the summer, Inman receives dry goods via barge. “We bring in our dog food and we bring in our rock salt. We bring in things that aren’t going to go bad,” she says. “That’s what we do in my store. No perishables.” Pilot bread is popular, but Inman notes that soda pop is by far their bestseller. In Interior Alaska, Fairbanks International Airport is the hub for merchandise. Angie Spears, a spokeswoman for the airport, says some freight is flown directly to Fairbanks from Seattle, while some arrives via train, truck, or barge. The Alaska Railroad is a key shipping link, bringing heavy, bulky items and containers containing groceries and general merchandise to the Interior from the ice-free port in Seward and the Port of Anchorage. The railroad was established in 1914 and is owned by the State of Alaska. The railroad receives no state funding for www.akbizmag.com

Direct Delivery Many residents order supplies directly from retailers in Anchorage and Fairbanks such as Fred Meyer, Costco, and Sam’s Club, which all have strong “Bush mail” services, Spears notes. Residents can go online and place their orders, which are packaged and sent to small air carriers for delivery. Many smaller carriers operate from the airport’s East Ramp, an important hub for the dozens of Interior villages with small populations and limited access. A box of pilot bread bound for a village on the Yukon River will likely land in Fairbanks before being transferred to a regional carrier, such as Wright Air Service. Wright has been in business since 1967 and serves seventeen Interior villages, the farthest north of which is Anaktuvuk Pass in the Brooks Range, says Office Manager Autumn Mabry. “We fly everything from caskets to game animals to furniture,” Mabry says. Wright has a fleet of Cessna Grand Caravans with a twenty-four-hundredpound weight allowance. Most of its deliveries are groceries sent as bypass mail, but it also ships items for individuals. Something that Matters It takes a large number of partnerships to get a box of pilot bread from Virginia to Venetie, says Alaska Commercial Company’s Cain. “We work with a lot of really great partners in serving Alaska,” he says, adding: “It would be a really long list. My fellow associates, me and everybody in the organization have that enterprising spirit to serve these rural people wonderfully well and with a lot of understanding of the geography, the weather, the nature of the people in the communities, and what’s important to them.” Sailor Boy Pilot Bread, for all its simplicity, is one of the things that matters to Alaskans.  Julie Stricker is a writer living near Fairbanks. www.akbizmag.com

operations, and though it receives federal and state funds for capital improvements, all of its expenses are paid from revenues generated from freight, passenger service, and real estate. It is a vital link for shipments of fuel and coal from the Interior to Southcentral and overseas.

Container barge off the coast of Barrow with bowhead whale skull in foreground.

Northland Services: Consider it done. Since 1977, Northland has provided reliable freight transportation between Seattle, Alaska and Hawaii. With more than 140 sailings annually, Northland delivers cargo to more destinations in the 49th and 50th states than any other marine carrier. Heavy equipment, construction materials, seafood or supplies to remote villages; you name it, Northland delivers. So next time, ship with confidence. Ship with Northland.

June 2013 | Alaska Business Monthly

special section

Transportation

Photo courtesy of Ted Stevens Anchorage International Airport

A JetBlue aircraft lands at Ted Stevens Anchorage International Airport on its inaugural 2012 ﬂ ight from Long Beach, California, to Alaska. JetBlue adds service to Seattle this year.

Come Fly With Me

Seasonal air carriers add options and compete

By Zaz Hollander

h, summer in Alaska: Long days. Bug dope. Soaring over the North Pole to Europe. Getting deals on trips to Seattle. A growing number of seasonal airlines fly routes to and from Alaska only in the summer, including Condor, the German carrier that ferries international travelers “over the top” to Europe from May through October. Other year-round carriers increase routes to include summer-only destinations. Alaska Airlines adds flights but also ramps up offerings to Alaskans. This year’s seasonal schedule continues an increase that started in 2012 at Anchorage and Fairbanks with new routes from existing carriers JetBlue Airways, Delta, United Airlines, and Alaska Airlines.

Alaska Business Monthly | June 2013

New this year at the state’s largest airport: a nonstop to San Francisco from Virgin America. Then there’s Icelandair, which starts flying nonstop from Anchorage to Reykjavik in May. From that hub, Icelandair offers connections to more than twenty places in Scandinavia, the United Kingdom, and continental Europe. But don’t thank Alaskans for most of this increased seasonal interest. “None of these additional flights have anything to do with Alaskans, just so there’s no mythology there about how great we are or how big of travelers,” says Scott McMurren, a travel marketing consultant who publishes the website alaskatravelgram.com. McMurren isn’t knocking Alaskans. He’s just making a point: given our rel-

atively small population, most of these carriers target people flying to—not from—our fine state. Just look at a JetBlue blog post on its Long Beach to Anchorage route: “Looking to beat the heat this summer? Grab a seat to the coolest destination in our network, Alaska ...”

Alaska Airlines: Ready for Competition JetBlue comes into Anchorage in mid-May with just one fl ight to Seattle. That single fl ight has “absolutely turned the market upside down,” McMurren says. “By comparison, on that day Alaska Airlines will offer seventeen fl ights between Anchorage and Seattle, two fl ights from Anchorage to Portland, one Anchorage to Los Anwww.akbizmag.com

Seattle to Anchorage is one of Alaska Air’s major markets, Corporate Spokesperson Marianne Lindsey says. Alaska offers in-state customers the Club 49 program, which now includes more than three hundred thousand members. The program offers two free bags, weekly fare sales, and travel-now certificates, along with the three free bags when flying in state. So, is this all in response to the other carriers invading Alaska’s turf come summer? “Note this is nothing new,” Lindsey says. “We’re no stranger to new competition and we always respond by continuing to provide value and consistent service.”

Fairbanks Sees Spike More than 2.4 million passengers deplaned in Anchorage last year. Nearly 500,000 deplaned in Fairbanks. Nearly 100,000 of those Anchorage passengers flew in on seasonal carriers. More than 51,000 came into Fairbanks—an increase of 11,000 compared to 2011. “We’re just seeing an increase in overall passengers,” says Angie Spear, division www.akbizmag.com

Alaskans Together Bringing

“ Get cargo in days instead of weeks.

“

geles, and two Anchorage to Chicago. It’s an empire.” Headquartered in Seattle, Alaska carries more passengers between the state of Alaska and the Lower 48 than any other airline. They fly to twenty airports within the state and have an average of 130 daily departures. Alaska Air is adding all sorts of perks and flights this summer, a corporate representative said. Among them: ■ New, 181-seat 737-900ER aircraft on “key flights” in the AnchorageSeattle market. ■ Expanded Anchorage-Los Angeles service that started in April that includes a daily daytime flight most of the year and an additional nighttime flight in summer. ■ A new nonstop route between Fairbanks and Portland from June through September. ■ Matching introductory fares on similar flight times offered by seasonal carriers. ■ Club 49 members get double miles on flights between May 17 and September 3.

Bringing Alaskans Together Some services are provided by other airlines in the Era Alaska family.

flyera.com

June 2013 | Alaska Business Monthly

The “tech-forward” airline’s decision

“We’re getting close to running out of room, at least if everybody to add Anchorage—as well as the Texas wants to show up at the same time. But clearly we’ve got lots of capital of Austin—to its roster was announced in February. capacity during the day.” “Austin and Anchorage present unique —John Parrott Manager, Ted Stevens Anchorage International Airport

operations manager for Fairbanks International Airport. “It’ll be intriguing to see Anchorage adding Icelandair and others, how that affects Fairbanks … how many tag on and come to Fairbanks.” At Fairbanks, United flies to Denver and this year is adding a route to Chicago. Alaska is adding the Portland route. Condor flies to Anchorage, and then Fairbanks. Denver-based Frontier offers nonstops to Denver most days of the week. Frontier is “really the price leader,” McMurren says. “They’re the ones who are making a difference on price.” Most of the seasonal carriers depart from Fairbanks as red-eye flights. That’s not a problem for the airport, Spears said. A new terminal completed nearly four summers ago offers an open layout with plenty of common-use passenger counters that can accommodate the new traffic. What the new flights—and the high passenger interest—show is that the Fairbanks air market has been underserved, Spears says. The average load factor in summer across the board average is 90 percent. That translates to full flights. “For us, when you see this new service added and the numbers are that high in the first season, that tells me that we haven’t had the services necessary to meet the demand,” she says.

Anchorage Gets Busy There’s a long list of new summer seasonal service coming to Ted Stevens Anchorage International Airport this year. Along with the existing carriers— Delta, Condor, Jet Blue, United—that already serve Anchorage, two new carriers are starting seasonal service this summer: Virgin America and Icelandair. The Anchorage airport can handle the increased activity but it’s “exacerbated the situation with the middle of the night,” says John Parrott, airport manager. By that, Parrott means that numerous flights already converge on the airport for red-eye arrivals. Virgin and JetBlue 92

Alaska Business Monthly | June 2013

are arriving at night this summer; Icelandair comes in mid-afternoon. “We’re getting close to running out of room, at least if everybody wants to show up at the same time,” Parrott says. “But clearly we’ve got lots of capacity during the day.” Most of the seasonal airlines target tourists even though between 150,000 and 200,000 Alaskans fly out of state every month—mostly to warmer places, he says. Most of the passengers arriving on the seasonal aircraft speak English, though German-speaking Europe is a significant part of the tourists debarking here. That’s Condor’s influence. It’s likely that Icelandair will bring more European travelers from other countries. Meanwhile, Anchorage is looking to a different potential market, China, and a growing number of middle-class residents starting to accumulate discretionary income. From what Parrott hears, Chinese travelers coming to the United States for the first time tend to hit New York City, Los Angeles, or Las Vegas. The next time they come, those three cities top the agenda again. “The third time they travel, they’re going to want to do something different,” Parrott says. The trick in getting new international airlines to look at Anchorage is getting past the relatively low outbound passenger traffic. A 757 like the aircraft Icelandair will fly on Anchorage routes can seat 185 passengers. The carrier can probably fill a quarter of those seats on the return flight to Reykjavik. “Most international carriers carry twice as many on an aircraft,” Parrott says.

Virgin America, JetBlue Virgin America will fly direct to San Francisco six days a week from early June to early September. Virgin bills itself as “the only domestic airline to offer WiFi on every flight, and with features like power outlets and personal touch-screen entertainment platforms at every seat.”

opportunities for us to expand our network into areas that demand and deserve increased flight options,” Virgin America President and CEO David Cush said in a statement. “Austin and San Francisco share strong cultural and business links, and the addition of Anchorage will allow us to offer seasonal service to one of the most popular outdoor destinations from our home in San Francisco.” JetBlue’s daily Seattle runs begin in mid-May and run through mid-October. The Seattle service means a price war commences for Anchorage travelers with a choice besides Alaska when it comes to the popular destination and connection point. “Because of their entry, you can fly to Seattle for the first time in seven or eight years for less than $200 roundtrip,” travel expert McMurren said in April, based on fares at that time. For the most updated fares, McMurren suggested his Website and Twitter feed. JetBlue didn’t mention its competitor when asked if pricing on the Seattle route factored into the decision to add Seattle. Instead, the New York-based airline credited the new route to the success of its Anchorage routes to Long Beach. The popularity of the 2012 California destination “has allowed us to continue expanding our footprint in Alaska between Anchorage and Seattle, and we’ll continue to look for additional opportunities to grow,” JetBlue spokesperson Allison Steinberg said in an email. Other existing seasonal carriers— United, Delta, and Jet Blue—add new routes this year. United will fly nonstop to Newark once a week on Saturdays in July and August. Delta added a Seattle flight, too, from June through August. Delta also added flights to Atlanta and LAX. Numerous seasonal carriers are returning to Anchorage this summer: Air Canada, with a direct flight to Vancouver, British Columbia; American Airlines to Dallas; Sun Country Airlines to Minneapolis; Frontier Airlines to Denver; JetBlue to Long Beach; Condor to Frankfurt; and Yakutia to Peteropavolosk/Kamchatka once a week. www.akbizmag.com

New seasonal carrier Icelandair starts direct flights to Reykjavik twice a week in mid-May.

Iceland and Beyond Alaskans who have already flown Icelandair from Seattle to Rejkavik describe a roomy single-aisle 757 aircraft with leather seats and great connections to the northern tier of Europe—Paris, London, Oslo, Stockholm, and St. Petersburg. The seven-hour flight makes for a relatively quick hop, not much more than the trip to Honolulu. It adds more options to the shortage of seasonal flights to Europe and shortens considerably the flying time for passengers who opt to take the crosscountry, cross-Atlantic route. Plus you get a free stopover in Iceland. The country at the confluence of the Atlantic and Arctic oceans is famous for its hot springs and spas. Icelandair says it is “committed to offering our passengers a refreshing Icelandic travel experience” that includes three cabins, those posh seats, and personal inflight entertainment centers for all passengers. The carrier’s entire fleet is scheduled for an onboard WiFi upgrade this fall. When asked what motivated Icelandair’s entry in Alaska, the airline sent an email statement. “Anchorage is an underserved market with convenient connections that will allow Icelandair to grow on the West Coast of North America,” Helgi Mar Bjorgvinsson, Icelandair’s senior vice president of marketing and sales, wrote. “Outbound travelers will have a refreshing alternative when traveling non-stop to Iceland with connections to more than twenty destinations in Europe while European travelers will be enticed by incredible wildlife, skiing, cruises, or the ability to experience the last frontier of Alaska.” The advent of Icelandair gives European passengers a new Alaska travel option beyond Condor. McMurren is of the opinion that the real driving force behind the new route is Europeans, not Alaskans. Is that true? “As with all of our routes we hope to see a steady flow of inbound and outbound traffic,” Bjorgvinsson wrote.  Zaz Hollander is a journalist living in Palmer. www.akbizmag.com

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special section

Transportation

Making Tracks Across Alaska

Alaska Railroad cargo train traveling along the Turnagain Arm of Cook Inlet.

Extending the Alaska Railroad’s reach By Rindi White

ewer rail gangs will be out working along the Alaska Railroad this summer, one visible sign the state-run railroad is conserving everywhere it can. Although the Alaska Railroad is facing a constricted budget, reduced federal funding, and reduced use by two key customers, a busy schedule of capital projects is planned this year. The Northern Rail Extension project will extend a road—the bed of what will one day be a rail line—to a military training ground near Salcha. The Port MacKenzie Rail project will extend a rail line from the main route near Houston south to the Mat-Su Borough’s port. The Railroad is also partnering with the U.S. Department of Agriculture Forest Service to build a second cabin as part of its whistle stop service in the Chugach National Forest between Seward and Portage and will be working to complete the Grandview whistle stop this year, one of five whistle stops along the route.

Accessing a Unique Area Alaska Railroad Corporation spokesman Tim Sullivan says the Northern Rail Extension is a four-phase project that will eventually go from North Pole 94

Alaska Business Monthly | June 2013

to Delta Junction, a distance of about eighty miles. When finished it will be open to all shippers and passengers, and is a key part of a much larger project. “This project is the first step in going all the way to the Canadian border,” Sullivan says. But in the first few phases, the focus is largely on working with the U.S. Department of Defense to allow greater access to a military training area. The Army and Air Force currently use Joint Pacific Area Range, one of the largest military training complexes in the nation at roughly a million acres, only in the winter because there is no bridge across the Tanana River at Salcha to reach it. With $104 million from the Department of Defense and $84 million from the state of Alaska, the railroad and its contractor, Kiewit, will bridge the Tanana River, build a levee to protect the bridge from seasonal flooding and complete thriteen miles of road. The project should be complete by summer 2014, Sullivan says. The one-lane road will extend from the Richardson Highway. A reminder of the project’s roots, a military staging area will be included immediately south of the river. Phases 2-4 are not yet funded, Sul-

livan says. The next phase will lay rail to Salcha at an estimated cost of $130 million. From there, a third phase will extend the route thirty miles, from the west side of the Tanana River crossing to the military’s Donnelly training area, and a fourth phase would extend the rail another thirty-eight miles from Donnelly to Delta Junction. All told, Sullivan says, the project is estimated to cost between $650 million and $800 million. Sullivan says the project would be an important link for the military in Alaska, connecting Fort Greely with the other military bases on the state’s rail system and to all the major ports in Alaska. An Alaska Railroad fact sheet lists a few other opportunities the project will open: it will provide a transportation alternative to the Richardson Highway and will provide opportunities for tourism and other economic development in communities along the rail line.

Running Rail to Port MacKenzie The Alaska Railroad is partnering with the Mat-Su Borough on a project to extend rail service about thirty-two miles, from the main Alaska Railroad line near Houston south to the boroughwww.akbizmag.com

owned Port MacKenzie. The project is expected to cost about $272.5 million. The borough has $171 million of that on hand, including a $25 million state grant from the legislature this year. The rail extension is aimed at opening up mineral development in Interior Alaska. According to a project fact sheet at the Mat-Su Borough website, “Minerals rely on low transportation costs. When the rail is in place Port MacKenzie will be 141 miles closer to the natural resources of the Interior than any other Alaska deepwater port.” The project is broken into six segments, each between four miles and eight-anda-half miles, with construction contracts let for each segment, a move that allows the borough to hire local construction firms for this otherwise massive undertaking. Construction on the new rail route is expected to wrap up by 2016. Three segments are under construction this summer and construction on a fourth is scheduled to begin late this summer. Right-of-way will be sought on the remaining segments, according to information presented by the borough at a public open house in April. Five bridges are slated to be installed this summer, including one over the Little Susitna River. The first tracks should also be laid along the route this summer, at Segment 6. That’s the final segment, connecting the line to the main Alaska Railroad line near Houston. A Mat-Su Borough spokeswoman said about two hundred construction jobs could be created in connection to the project this summer.

New Whistle Stop Under Way A joint effort between the Alaska Railroad and the Department of Agriculture Forest Service, the Chugach Whistle Stop service started in 2007 with a stop at Spencer Glacier. The project aims to increase Chugach National Forest use. According to information from the Forest Service, passengers can currently get off the Chugach Explorer train at Spencer Whistle Stop and take an approximate one mile narrated hike to Spencer Lake with a forest service ranger or camp along the way. Another trail leads to Spencer Glacier. The Spencer stop was the first of five stops planned for construction. The Grandview Whistle Stop, on track to be finished this year, is the second. When complete, the project will include a thirwww.akbizmag.com

ty-five-mile trail system between whistle stop locations, plus sheltered picnic areas, rest areas, and informational signs at each whistle stop. Sullivan says the Forest Service received grants to fund the project. “It’s something that will be good for Alaskans well into the future,” he says.

Projects Scaled Back Instead of replacing about fift y thousand railroad ties the corporation plans this year, as is its usual replacement schedule, Alaska Railroad officials say only about five thousand ties will be replaced this summer. The fift y-thousand-per-year replacement goal ensures the entire rail line is new every forty years, Sullivan says. The reduced number has a more pressing goal—safety. “This year we’ll go after trouble areas and make sure we have those ties replaced and that the tracks are safe for everyone involved,” Sullivan says. The railroad is dealing with declining federal funding and reduced use by some key clients—Flint Hills Resources, which was a chief supplier of jet fuel to Ted Stevens Anchorage International Airport and Usibelli Coal, the only coal mine operating in the state. North Pole refinery Flint Hills Resources last year shut down one of its crude oil refining units, citing economic pressures. According to information from the company spokesman at the time, the airport was able to buy cheaper jet fuel from Flint Hills’ competitors; the company’s higherthan-average production costs limited their ability to sell fuel competitively. The price of crude oil and energy costs at the Interior Alaska refinery were cited as the main issues for the closure. According to its website, Flint Hills’ North Pole refinery can process up to 220,000 barrels of crude oil each day. The crude is transformed into gasoline, jet fuel, heating oil, diesel, gasoil, and asphalt and marketed in Alaska. More than half the refinery’s production goes to meet aviation needs, primarily jet fuel. The decline of another Alaska resource—coal—has also affected the railroad budget, Sullivan says. Over the past twelve to eighteen months, Usibelli Coal in Healy has slowed production, a move linked to a softening international coal market, he says. “In 2011 we shipped 1.1 million tons of coal for export through Seward,”

Sullivan says. “We’re looking at somewhere between 500 and 600 thousand tons for this year.”

Unfunded Federal Mandate Coupled with an unfunded federal mandate to install Positive Train Control, a system that allows railroad officials to use GPS to override the actions of an engineer if they miss a signal, Sullivan says the railroad’s budget is tighter than usual. Positive Train Control, or PTC, is a required back-up system that was mandated for any railway that has passenger and freight cars on the same tracks. The mandate was handed down after a couple train accidents that, had the technology been available, might not have happened. In 2008 a Metrolink commuter train ran head-on into a freight train in Los Angeles, California. The National Transportation and Safety Board investigated the collision and found that the commuter train’s engineer was texting and ran through a red signal, causing an accident that killed twenty-five people and injured many more. Sullivan says the railroad has spent about $62.5 million to complete the PTC system, a large chunk of the $150 million the railroad expects to pour into the project. The railroad has asked the Alaska Legislature for funding help with the project and received just over $19 million this year. “That should fund us through the end of 2014,” he says. But it’s about $70 million short, Sullivan says. Railroad officials will have to return next year to ask for more funding. Railroad industry representatives across the nation are seeking to extend the deadline for compliance from 2015 to 2018. Even with an extension to 2018, legislative funding will be necessary to continue implementing PTC for the foreseeable future. Approximately $25 million for 2015 and $15 million each year for 2016, 2017, and 2018 is still needed, he says. “We’re hoping that in those two years, we’ll see a return of some of our traditional lines of business, or some new lines of business,” Sullivan says. Added income could allow the railroad to fund at least a portion of its costs internally in 2017 and 2018.  Rindi White is a freelance journalist living in Palmer. June 2013 | Alaska Business Monthly

special section

Transportation

Alaska Develops Ports Central to Local Economies By Will Swagel

Photo courtesy of Pacific Pile & Marine

Paciﬁc Pile & Marine at work on the Statter Harbor Moorage Improvements project for the City and Borough of Juneau.

laska has more miles of seacoast—6,640—than any other state in the United States. The number two state is Florida at 1,350 miles of seacoast. If you count in tidelands, Alaskans have direct access to the ocean from about 34,000 miles of coast. A lot of that coast is rocky and forbidding and some of it is frozen for a large part of the year. That said, it is no wonder that Alaskan towns have clustered in naturallyprotected places on the seacoast—or in inland places with river access to the ocean. Most of the freight into Alaska comes by ship and much of Alaska’s production of natural resources flows out that way. For Alaska Natives living along the coast, the sea is their main source of traditional foods. Rescue boats can venture into weather that keeps airplanes grounded. Richard Kochuten, the harbormaster of Sand Point, says the harbor in his Alaska Peninsula fishing town is “the goose that lays the golden egg.”

Alaska Business Monthly | June 2013

Capital Ports After retiring from the U.S. Coast Guard in Juneau, Carl Uchytil took the job as port director of the Capital City’s ports. The size of Juneau’s harbor system is impressive: four massive cruise ship docks downtown, a small boat harbor in Douglas, two boat harbors along Egan Drive, and a small boat harbor in Auke Bay, near where most of Juneau’s population now lives. “There’s $120 million in projects going through the harbor and dock system,” says Uchytil. Two of Juneau’s cruise ship docks are city-owned and those are scheduled for replacement. Uchytil says plans are to replace the present wharf-style arrangement with floating docks. Construction on the first floating dock is to begin in October 2014, to be completed by May of 2015. The second new dock will be built starting in October 2015, to be completed the following May. The timing is to avoid further complicating the Juneau waterfront in summer

when hundreds of thousands of visitors arrive by ship and flood the downtown waterfront. “You have to keep an eye on the needs of the harbor patrons and the tourism industry and build during an Alaskan winter,” Uchytil says. At Auke Bay, city officials held a ribbon-cutting ceremony May 15 on the $8.5 million dollar replacement of a portion of Don Statter Harbor. Pacific Pile & Marine, LP performed the work, which included removing and replacing wooden floats with concrete floats, replacing portions of the gangway, and replacing a portion of the headwalk. There were repairs to two floats and the breakwater where large rubber fenders and long through-rods will be replaced to extend the harbor’s functional life. Also at Statter Harbor, plans are to upgrade the boat launch and do extensive work on the associated uplands. With Juneau’s population now largely in the Mendenhall Valley, the Statter Harbor boat launch is the most heavily www.akbizmag.com

used of the city’s six launches. To deal with the congestion that can occur on a sunny Saturday morning, the city plans to extend the parking lot and to put in “make ready” and “tie down” areas for boat owners to do their pre- and postlaunch chores and keep the launching moving more smoothly. Port directors have to begin considering the launch ramps more these days, since there is a trend toward people trailering their boats instead of renting a slip. “There are 1,300 boat slips in the four municipal harbors,” Uchytil says. “But the city sells 2,000 trailer permits (per year).” In the works is a replacement of Aurora Harbor on the waterfront across from Juneau-Douglas High School. In October 2012, Juneau voters approved a $7 million bond issue and the city will match a $2 million grant from the state Municipal Harbor Grant Fund, for a total of $11 million, which will take care of half the needed upgrades. “It will be a total of $22 million to replace the entire harbor, which is well past its useful life,” Uchytil says. “We are going to bid (the first half) in early January 2014, award it in February, with the construction to be complete in May 2015.”

Yukon ‘Gold’ North of Juneau is Skagway, a small town with very big plans. The Gateway Project would transform the Port of Skagway to help capitalize on the burgeoning mining industry in the Canadian Yukon. With a twentyfour-hour, year-round road connection with Canada, Skagway Mayor Stan Sel-

mer says his hometown is the natural place for valuable Canadian metal ore and concentrates to be loaded on ships. “In 2008 Skagway formed a master plan based on what planners perceived as the potential mines that could open in the Yukon and also some in eastern Alaska that would have products that would need to get to market through a port,” Selmer says. “We had anticipated that Skagway could be that port and we still believe that.” The estimate for replacement of the dock—used for both cruise and cargo ships—as well as uplands and intermodal capabilities, ranges from $30 million to $80 million. The city presently has $16.5 million and Selmer says the project will be done in phases as funding is secured. A key part of the project will be to upgrade the ore terminal, which is owned and operated by the Alaska Industrial Development and Export Authority. Selmer says the cost of the renovation of the terminal and the purchase of a new more-efficient loader is estimated at $65 million, which he says the Authority already has on hand. Right now, tens of thousands of tons of Yukon copper concentrates are shipped through Skagway annually. The city is planning for huge increase in the next few years, with the potential for hundreds of thousands of tons of Canadian zinc, copper, lead, gold, silver, and iron ore brought down the highway. Skagway is also hoping to become the port for mines in eastern Alaska. Selmer hopes this could lead to more Skagway jobs and tax revenues.

“Certainly, we all have to be aware of the volatility of metal prices,” says Selmer, remembering the price crashes in the 1980s. Nonetheless, he’s confident in the Gateway Project, even in the face of the complicated negotiations that will have to occur between the Yukon government, the State of Alaska, the White Pass Railroad and the Municipality of Skagway— all which have interests in the facility. “In a year we will have a design that is in the direction we want to proceed,” he says.

Fish and Ferries In Hydaburg on Prince of Wales Island, the city harbor is to be replaced this summer. Hydaburg Mayor Tony Christianson is pleased that fortune and good planning are going to result in a facelift to what he called his town’s “number one asset.” “Mainly Hydaburg [residents] are gatherers and most of our food base is marine,” Christianson says. “The focus of our community is gathering marine resources and providing good food and nutrition for our kids.” Hydaburg Harbor also contains a small fleet of commercial salmon seiners and hosts some charter boats in the summertime for tourists wanting “to get off the beaten path.” The $3.6 million harbor project is to begin this summer, with the work to be done by Pacific Pile. The Hydaburg Cooperative Association, the federally-recognized tribe, is to help with some upland improvements that could raise the total price for the project to $4 million. Chistianson says the city got lucky by pushing for state harbor matching funds

Photo courtesy of Pacific Pile & Marine

Paciﬁc Pile & Marine will continue work on the Carl E. Moses Small Boat Harbor for the City of Unalaska this year. www.akbizmag.com

June 2013 | Alaska Business Monthly

Photo courtesy of Pacific Pile & Marine

es] are the only [economic] thing that’s been constant,” Christianson says. “The other industries are bang and bust— timber and mining and other resource extractive industries. The marine one has seemed to remain constant. I think access to the marine environment is integral to the survival of our community.” Work on Hydaburg Harbor is to commence after Pacific Pile finishes its work on the state ferry terminal in Wrangell. There, the company is to construct new mooring dolphins, fender panels, and a loading bridge, says Alaska Department of Transportation & Public FaciliPaciﬁc Pile & Marine working on the Carl E. Moses Small Boat Harbor for the ties spokesman Jeremy Woodrow. The City of Unalaska. $2.5 million price tag includes some last year when there was a state focus on of harbors throughout Alaska and gave upland development, Woodrow says. Wrangell is hoping to provide a home funding harbors. Their efforts resulted in a the new municipal owners money to matching grant of just under $2.2 million. offset maintenance costs. for other boats, says Harbormaster Christianson says he was pleasantly Greg Meissner. The city has two large “We knew we were up against the wall last year, so we threw all our eggs surprised when the low bid for the har- transient docks with a combined 1,500 into the harbor basket,” Christianson bor project came in about 10 to 15 per- feet of side-tie dock, completed in 2010. “We made it big like that so we can says of the lobbying effort. “We’re for- cent under estimates. This allows the tunate that ports and harbors was a pri- city to look at features that were dropped get the megayachts and the great big ority for the state last year.” from earlier designs because of costs, he packers,” Meissner says. “In the sumThe city’s portion of the project will says. Hydaburg has a good reason to in- mer, you can see the megayachts mingling with the seiners who work nearby be paid from funds the city put aside vest in access to marine resources. when the state relinquished ownership “The harbors and maritime [resourc- fisheries. In the fall, larger packers come in and tie up for the winter.” Wrangell is also offering upland storage, which is now storing about three hundred boats over the course of the year. The city is also buying a three-hundredton hoist, which can lift 660,000-pound boats to an on-land berth or repair yard. “It’ll be the biggest thing in the region,” Meissner says of the new hoist. “We’ll be lifting 120-foot packers out of the water and even crabbers like you see on ‘The Deadliest Catch.’”

The Northernmost Ice Free Port The Port of Seward is capitalizing on its ice-free status to attract large fishing boats and oil and gas industry vessels to the docks and upland storage of its Seward Marine Industrial Center (SMIC). The facility is located about six road miles from Seward and two miles from town across Resurrection Bay. Among the site’s features is deep-water moorage (to negative twenty-five feet mean lower low water). SMIC also has a 250-ton Marine TraveLift, run by the City of Seward, and a 5,000-ton Synchrolift, privately run by Seward Ship’s Drydock. The Synchrolift can handle boats the size 98

Alaska Business Monthly | June 2013

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The City of Seward is planning multi-million dollar improvements for its Seward Marine Industrial Center across Resurrection Bay from the city proper. Photo courtesy of the City of Seward

Your stuff will make it to port, even if you can’t.

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www.TotemOcean.com 800.426.0074 www.akbizmag.com

Meeting yours is everything else. June 2013 | Alaska Business Monthly

Arctic Port Study Recommends Nome-Port Clarence By Will Swagel

n the 1860’s American whaling vessels would seek refuge at Port Clarence, a natural harbor near Teller on Alaska’s northwest coast. An important new federal-state study has chosen the area between Port Clarence and Nome as the likeliest site of a new deep-water port that would provide refuge and supply for the increasing number of American and foreignflagged ships plying northern waters. “Diminishing sea ice and expanded natural resource extraction are happening now,” states the Forward in the Alaska Deep-Draft Arctic Port System Study, which was released in March. “From drilling in the Chukchi Sea, dredging for gold in Nome, to ore and gas concentrate tankers coming over the top from Europe, Alaska is experiencing more and more traffic past its shores.”

Limited Infrastructure The report notes that at present the U.S. Coast Guard response time is seven days by cutter from the nearest station in Kodiak to the northernmost portions of the state. There is also limited navigational infrastructure in northern waters and the National Oceanic and Atmospheric Administration and other federal agencies could use a more northerly base. To deal with this situation, a team of planners headed by the U.S. Army Corps of Engineers and the Alaska Department of Transportation & Public Facilities looked at fourteen sites on Alaska’s northern and western coasts—an area twice as long as the distance from the Canadian border to Florida on the U.S. East Coast. “All of the sites are in need of enhanced marine infrastructure, so how do you choose?” says Lorraine Cordova of the Army Corps of Engineers, and the planning team leader. “The biggest piece was proximity to mission—proximity to the offshore oil endeavors and to mining. Nome and 100

Alaska Business Monthly | June 2013

Port Clarence bubbled to the top.” The team also looked at such issues as access to airports, groceries, and supplies, and the depth of the harbor. Port Clarence has deep water (up to negative thirty-five feet) which can accommodate larger ships. Nome has a medium-depth harbor, but is seeking $77 million to develop a deep-draft port. There is a seventy-two mile road between Teller and Nome.

Recommendations The report’s recommendations include encouraging government funding and private sector investment and the conducting of a “feasibility analysis of Nome and Port Clarence using physical criteria and alignment with potential investors.” “We have narrowed that down to three (specific) sites,” Cordova says. “This summer we will be sending people out into the field and we hope to have a draft report by the end of the calendar year.” After that, she says, the report will begin gathering reviews from government agencies and public comment. “We want to have the finished report to the Secretary of the Army by 2014,” she says. If all goes well, the request for funding could be sent to Congress in 2015. Then the project could start as early as 2017, “if the stars were all aligned.” The report notes that the Bering Straits Native Corporation is in the process of seeking lands at the former U.S. Coast Guard Loran facility at Port Clarence and has been working with Crowley Maritime Corporation on a deep-water development plan. Bering Straits had been seeking the land as part of its allotment from the Alaska Native Claims Settlement Act of 1971. The complete Alaska Deep Draft Arctic Port System Study is online at www.poa.usace.army.mil/ Libra r y/ Repor t sa ndSt ud ies/ AlaskaRegionalPortsStudy. 

of the M/V Tustamena—a stout, oceangoing 296-foot long Alaska state ferry. About $30 million in improvements to SMIC are planned to construct a wave barrier to protect the basin from wave intrusion and damage. Additional moorage to accommodate sea-based vessels, improvements to shore-based infrastructure, and repair of existing facilities will push the cost higher. “Resurrection Bay is a great natural harbor, but at times, or in bad weather, we get a swell that comes in from the south and it causes the Seward Marine Industrial Center waterfront to not be a safe place to tie up your boat,” says Harbormaster Mack Funk. “What they are trying to do is get the basin enclosed and then add some docks.” Spurring SMIC’s development is the interest of the Coastal Village Regional Fund, which operates a fleet of factorytrawlers and catcher-processors, in wintering in Seward instead of Seattle. SMIC is also attracting oil service vessels, like Shell’s Noble Discoverer, as a place to overwinter. The presence of these large fishing and oil industry vessels are already encouraging Seward entrepreneurs to offer goods and services and for existing businesses to ramp up for the new customers. “This is not just an opportunity for Seward, but for the whole region and the state to take advantage of this,” says Ron Long, Seward’s assistant city manager, a former tugboat operator and a longtime SWIC proponent. “If the fleet is moving up, [local firms will] have to either make the investments for technological and education improvements to meet demand, or the current providers that are doing business with the fleet in Puget Sound will establish themselves in Alaska.” Long says that support vessels—such as net suppliers, and electronics supply and repair firms—already serve Bristol Bay and some remote and seasonal-only areas where there is not year-round support. “I think there’s going to be some synergy across the fleets and the fishing industry and then beyond into other maritime trades,” Long says.

Home of the Golden Goose Sand Point’s only harbor is Robert E. Galovin Small Boat Harbor and the main infrastructure there is thirty www.akbizmag.com

Alaskan author Will Swagel writes from Sitka. www.akbizmag.com

S T

MARINE TERMINAL i BARGE TRANSPORTATION BULK LOGISTICS i CARGO OPERATIONS 6701 Fox Avenue, South Seattle, WA 98108 Tel: 206-767-6000 Fax: 206-767-6015

email: info@seatacmarine.com

Kodiak Shipyard Welcomes You “ Kodiak is not a town with a

commercial fishing fleet, it’s a fishing fleet with a town. If you’ve got to haul out someplace, haul out in Kodiak. They’re the friendliest, most helpful people in the North Pacific.

“

years old. The harbor, which has about 140 slips, is the mainstay of this fishing community of about one thousand on the Alaska Peninsula. Late this summer, the entire harbor is slated to be replaced. “This summer’s rebuild has been in the works for about four years,” says Richard Kochuten Sr., who has been Sand Point’s harbormaster for more than ten years. “The city finally got financing for it this year.” Kochuten says Sand Point received a $5 million state matching grant. The city sold bonds for $2 million, got $1 million from the Aleutians East Borough, and took $2 million out of its savings to make the required $5 million match. In a March 2012 newsletter, City Administrator Paul Day wrote: “Both the city and borough receive their lion’s share of revenue from the very fisheries so dependent on safe and well-operated harbors. I would think that having the State of Alaska put up 50 percent of a $10 million project to improve our community and insure economic stability over the next twenty years is a no-brainer indeed.” Kochuten says it can be difficult to get builders to consider working in Sand Point, which is “outside the beaten path.” So he says he was pleased to contract with Pacific Pile, which had also done work in King Cove and False Pass. Kochuten says fishing is Sand Point’s economic mainstay and that Galovin Harbor is the center of economic activity. “The guys go to work in January and come home in the fall,” he says. “It’s a fishing community from the word go. The majority of the fishermen live in Sand Point.” Kochuten says marine traffic has been steady and that an upgraded facility will be greatly appreciated. “It’s a step in the right direction,” he says. The new harbor will have slightly larger slips to accommodate today’s new, bigger boats. Sand Point has a 150ton boat lift and upland boat storage area. There have been as many as eighty boats stored on shore at one time. “The harbor is the goose that laid the golden egg,” Kochuten says. “The harbor runs the machinery that makes the city work.” 

Big Modern Shipyard

— David Jentry, Owner F/V Alaska Spirit 100 feet 440 tons

Small Friendly Town To schedule your haul-out, contact our management team at mowen@city.kodiak.ak.us or call 907-486-8080. See our vendor list at www.kodiakshipyard.com June 2013 | Alaska Business Monthly

101

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013

TRANSPORTATION DIRECTORY Horizon Lines serves between Alaska and Tacoma, Washington, with two weekly ship calls at APM Terminals.

Photo courtesy of Port of Tacoma

AIR CARGO AK AK Estab. Estab. Empls. Empls.

Company Company

TopExecutive Executive Top

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

Mike Bergt, Pres.

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

Tom Verges, Ops. Mgr.

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

Tim Jacobson, CEO

Alaska Air Cargo 4100 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 800-225-2752 Fax: 907-266-7808

Marilyn Romano, Reg. VP, Alaska

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

Jeff Dornes, Co-Owner

Alaska Air Taxi LLC 4501 Aircraft Dr. Anchorage, AK 99502 Phone: 907-243-3944 Fax: 907-248-2993

Jack Barber, Owner

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

Daniel Owen, Pres. & Owner/Operator

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

Marilyn Romano, Reg. VP Alaska

Alaska Cargo Service PO Box 251 Dillingham, AK 99576-0251 Phone: 907-842-5491 Fax: 907-842-1540

Bo Darden, Owner

1976

Air cargo and express package services, air transportation nonscheduled, fuel available, local delivery services and air courier services.

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

Zach Jacobson, Alaska Sales Mgr.

1984

Ocean freight forwarding, freight consolidation, full loads, short- and long-term 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.

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

Zach Jacobson, AK Mgr. Sales, Ops

1984

120

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.

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

Tim Jacobson, CEO

1984

120

102

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

1984

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.

1932

148

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

1969

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

1987

Passenger & Cargo Air Charters - Direct charter flights to your community from Anchorage. We offer combination flights that move your crew and cargo at the same time saving you time and money! Variety of aircraft to fit your specific needs. Safety and experience with knowledgeable staff.

1984

Anchorage based air charters, serving Alaska, Canada, and the Lower 48. Aircraft include the fast, pressurized, increased weight capacity Pilatus PC-12/47, or a factory new Grand Caravan EX featuring increased power and an advanced ice protection system, and the proven workhorse Navajo Chieftain.

greg@aceaircargo.com aceaircargo.com

youtube.com/americanfastfreight americanfast.com

alaskacargo.com

4help@alaskaaircargo.com alaskaaircargo.com

info@alaskaairtaxi.com alaskaairtaxi.com

Charters@FlyAAT.com FlyAAT.com 1932

alaskaair.com

1,605 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.

youtube.com/americanfastfreight americanfast.com

youtube.com/americanfastfreight www.americanfast.com

youtube.com/americanfastfreight americanfast.com

Alaska Business Monthly | June 2013

Services Services

www.akbizmag.com

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY AIR CARGO Company Company

Top Executive Top Executive

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

Zach Jacobson, Alaska Sales Mgr.

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

Damian Naquin, Gen. Mgr.

Bald Mountain Air PO Box 3134 Homer, AK 99603 Phone: 907-235-7969 Fax: 907-235-6602

Gary Porter, Dir. of Ops

Bering Air Inc. PO Box 1650 Nome, AK 99762-1650 Phone: 907-443-5464 Fax: 907-443-5919

James Rowe, Pres.

Best Rate Express LLC PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Young Summers, Member

Bristow Alaska Inc 1915 Donald Ave. Fairbanks, AK 99701 Phone: 907-452-1197 Fax: 907-452-4539

Danny Holder, North America BU Dir.

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

Candace Ellison-Theis, CEO

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

Linda Leary, Pres.

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

PJ Cranmer, Reg. Ops Mgr. Pac. NW

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

Sherron Perry, Mgr.

DHL Global Forwarding 2000 W. Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

John Witte, Reg. Mgr.

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

Sam Egli, Owner

Era Alaska 4700 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-8394 Fax: 907-266-8391

Bob Hajdukovich, CEO

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

W. Randy Orr, VP

Evergreen Helicopters Inc. 1936 Merrill Field Dr. Anchorage, AK 99501-4113 Phone: 907-257-1500 Fax: 907-257-1554

Terry Pena, Dir. Ops Anch.

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

Robert W. Everts, Pres./CEO

104

AK AK Estab. Empls. Empls. Estab.

Services Services

1984

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.

1993

Single and multi-engine; 19 passenger, cargo and fuel delivery; VFR and IFR capable; turbine fleet for reliability; off-airport and arctic operations; FlightSafety trained crews; services on wheels, floats and skis; aerial scientific platforms; 100NM+ off shore survey capability.

1979

109

Air transportation services for scheduled and nonscheduled passenger and cargo. Freight service daily to scheduled destinations. Heavy and oversized cargo charters to all destinations. Air ambulance services, helicopter charter and rental services.

Best Rate Express, LLC.: 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.

1977

Helicopter transportation services.

2000

Authorized agents for Alaska Central Express, Northern Air Cargo, Transnorthern 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

120

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 2 large hangars, office space, terminal, full-service medical facility, 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

960

Offering scheduled passenger and cargo service to more than 100 communities statewide, Era Alaska's team of professionals on the ground and in the air has the history and experience to offer the highest level of customer satisfaction today and for the future.

1948

175

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

1961

Helicopter contract and charters covering the entire state of Alaska.

1995

250

An Alaskan owned and operated air carrier that provides scheduled freight service to 12 rural communities and charter service to anywhere in Alaska with suitable runway conditions. Cargo Charters, HAZMAT, bulk fuel, small package and oversize. Based in Anchorage and Fairbanks.

youtube.com/americanfastfreight americanfast.com

coordinator@baldmountainair.com baldmountainair.com

info@beringair.com beringair.com

yksummers@qwestoffice.net bestrateexpress.com

dave.scarbrough@bristowgroup.com bristowgroup.com

camaillc@yahoo.com

pspittler@carlile.biz carlile.biz

anc-customerservice@cfi-anc.com cfi-anc.com

info@deadhorseaviationcenter.com deadhorseaviationcenter.com

jane.treadway@dhl.com dhl-dgf.com

egliair.com

PR@flyera.com flyera.com

alaskamarketing@erahelicopters.com erahelicopters.com

evergreenaviation.com

info@evertsair.com evertsair.com

Alaska Business Monthly | June 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

Express Delivery Service Inc. 701 W. 41st Ave., Unit D Anchorage, AK 99503-6604 Phone: 907-562-7333 Fax: 907-561-7281

Ed Hoffman, Pres.

Grant Aviation 4451 Aircraft Dr. Anchorage, AK 99502 Phone: 888-359-4726 Fax: 907-248-7076

Bruce McGlasson, Pres.

Homer Expediters 990 SeaPlane Ct. Homer, AK 99603 Phone: 907-235-5244 Fax: 907-235-5244

AK AK Estab. Estab. Empls. Empls.

Services Services

1977

Air courier services, local and Valley delivery services, special warehousing and storage. Specializing in serving the medical community. Open 24/7/365.

1971

203

Statewide charter service in addition to providing scheduled passenger, cargo, mail and freight services to most villages throughout Alaska. Bethel hub air ambulance services, plus 32 aircraft fleet: Cessna 207, 208 Grand Caravans, Piper Chieftain Navajos and Beechcraft 200s.

Jules Ravin , Owner/Operator

1986

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

JetBlue Airways Corp. 27-01 Queens Pl. N. Long Island City, NY 11101 Phone: 800-538-2583 Fax: N/A

David Barger, Pres./CEO

1999

(Seasonal) South Terminal passenger operations at Ted Stevens Anchorage International Airport.

Kenai Aviation PO Box 46 Kenai, AK 99611 Phone: 907-283-4124 Fax: 907-283-5267

Robert T Bielefeld, Owner

1961

Air taxi.

Korean Air Cargo 4600 Postmark Dr., #NA146 Anchorage, AK 99502 Phone: 907-248-8113 Fax: 907-243-3910

Michael Lim, Mgr.

1972

International carrier.

Last Frontier Air Ventures Ltd. 39901 N. Glenn Hwy. Sutton, AK 99674 Phone: 907-745-5701 Fax: 907-745-5711

David King, Pres.

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.

LifeMed Alaska PO Box 190026 Anchorage, AK 99519-0026 Phone: 907-563-6633 Fax: 907-563-6636

Scott Kirby, CEO

2008

100

e.hoffman@expressdeliveryak.com

res@flygrant.com flygrant.com

@jetblue jetblue.com

kenaiav@yahoo.com

cargo.koreanair.com

helicopter@LFAV.com LFAV.com

info@thealaskapipelineproject.com lifemedalaska.com

Critical care air ambulance services, state certified, advanced life support and MEDEVAC services and CAMTS accredited.

Shipping Reliability During the past 80 years, Alaska Air Cargo has served the Last Frontier and beyond with a record of reliability and exceptional service. From Boston to Barrow or Kona to Kodiak – and all points in between – we offer nationwide service and unbeatable

*2010– 2012 FLIGHTSTATS.COM

frequency to more destinations in Alaska than any other major carrier.

THE #1 ON-TIME AIRLINE IN NORTH AMERICA*

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

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June 2013 | Alaska Business Monthly

105

ALASKA BUSINESS MONTHLY’S 2013 TRANSPORTATION DIRECTORY

AIR CARGO

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY AIR CARGO Company Company

Top TopExecutive Executive

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

Judy McKenzie, Pres.

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

David Richardson, Pres.

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

David Richardson, Pres.

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

Alex McKallor, Pres.

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

Paul Grimaldi, Pres.

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

Bob Fell, Dir. of Ops.

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

David W. Karp, Pres./CEO

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

King Hufford, Pres.

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

Ed Fitzgerald, CEO

Pathfinder Aviation Inc. PO Box 375 Homer, AK 99603 Phone: 907-226-2800 Fax: 907-226-2801

Michael W. Fell, Pres.

PenAir 6100 Boeing Ave. Anchorage, AK 99502 Phone: 907-771-2500 Fax: 907-771-2661

Danny Seybert, CEO

Prism Helicopters PO Box 872807 Wasilla, AK 99687 Phone: 907-376-3444 Fax: 907-373-0167

AK Estab. Empls. Empls. Estab.

Services Services

1996

173

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

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

148

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 Rangers and 4-passenger Bell Jet Ranger helicopters.

1956

350

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 barge service from Olympia, WA to Port MacKenzie, AK.

1961

Transports freight between the Lower 48 and Alaska. Trucking services in Alaska. Asset based, PAF terminals located in Tacoma, WA and Anchorage. Terminals in Fairbanks, Soldotna and Kodiak. Consolidation center in Chicago, Il.

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

Operating scheduled passenger service throughout Southwest Alaska and charter service throughout all of Alaska, Canada and the U.S.

Dave Zall, Dir. Ops

1998

Helicopter charter.

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

Wilfred "Boyuck" Ryan, Pres.

1953

100

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

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

Stephen "Joe" Kapper, Pres.

1985

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

Ted Stevens Anchorage Int'l Airport PO Box 196960 Anchorage, AK 99519-6960 Phone: 907-266-2119 Fax: 907-243-0663

John Parrott, Airport Mgr.

1951

390

World class cargo airport, largest passenger airport in Alaska and the world's busiest float-plane base.

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

Todd Clark, Pres.

1989

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

106

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

information@lynden.com laf.lynden.com

lafmtg@laf.lynden.com lynden.com/lint

information@lynden.com lynden.com

trananccs@lynden.com lynden.com/ltia/

info@maritimehelicopters.com maritimehelicopters.com

info@nac.aero nac.aero

KHufford@PacArctic.com PacArctic.com

Info@pafak.com pafak.com

pathfinderaviation@alaska.net pathfinderaviation.com

missya@penair.com penair.com

ryan@ryanalaska.com ryanalaska.com

sales@securityaviaition.biz securityaviation.biz

dot.aia.ancinfo@alaska.gov anchorageairport.com

toddc@tgifreight.com tgifreight.com

Alaska Business Monthly | June 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

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

Vanessa Keyes, Reg. Dir./AK

Warbelow's Air Ventures Inc. PO Box 60649 Fairbanks, AK 99706 Phone: 907-474-0518 Fax: 907-474-3821

Matt Atkinson

Wright Air Service PO Box 60142 Fairbanks, AK 99706 Phone: 907-474-0502 Fax: 907-474-0375

Bob Bursiel, Pres.

AK AK Estab. Estab. Empls. Empls. 1

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.

1989

Small regional airline.

1967

Scheduled passenger and freight charter service. Cessna Caravans, Piper Navajos, Cessna 206s, and Helio couriers.

info@warbelows.com warbelows.com

was@alaska.net wrightairservice.com

Company Company

Top Executive Top Executive

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

Mike Bergt, Pres.

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

Tom Verges, Ops. Mgr.

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

Tim Jacobson, CEO

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

Jeff Dornes, Co-Owner

AK AK Estab. Estab. Empls. Empls. 77

1993

1984

1969

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

youtube.com/americanfastfreight americanfast.com

4help@alaskaaircargo.com alaskaaircargo.com

 



Services Services

1988

greg@aceaircargo.com aceaircargo.com



www.akbizmag.com

2011

vanessak.anc@transgroup.com transgroup.com

LAND, RAIL & TRUCK



Services Services

  

Stay connected & sign up for email alerts at www.PenAir.com

June 2013 | Alaska Business Monthly

107

ALASKA BUSINESS MONTHLY’S 2013 TRANSPORTATION DIRECTORY

AIR CARGO

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY LAND, RAIL & TRUCK AK Estab. Empls. Empls. Estab.

Company Company

Top TopExecutive Executive

Alaska Cargo Service PO Box 251 Dillingham, AK 99576-0251 Phone: 907-842-5491 Fax: 907-842-1540

Bo Darden, Owner

1976

Air cargo and express package services, air transportation nonscheduled, fuel available, local delivery services and air courier services.

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

Kevin Anderson, Pres.

1980

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

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

Christopher Aadnesen, Pres./CEO

1914

614

Freight and passenger rail transportation and real estate leasing and permitting services.

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

Aves Thompson, Exec. Dir.

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.

Alaska Waste 6301 Rosewood St. Anchorage, AK 99518 Phone: 907-563-3717 Fax: 907-273-2797

Craig Gales, Sales Mgr.

2003

175

Providing residential and commercial refuse and recycling services. Offering curbside co-mingled recycling to households in Anchorage and Eagle River, office and dumpster recycling to commercial users. The roll-off containers can be used on industrial projects for C&D recycling.

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

Scott Hicks, Pres.

1978

129

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.

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

Zach Jacobson, Alaska Sales Mgr.

1984

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

Tim Jacobson, CEO

1984

120

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

Zach Jacobson, AK Mgr. Sales, Ops

1984

120

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

Zach Jacobson, Alaska Sales Mgr.

1984

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

Brady Purdue, Gen. Mgr.

1988

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

Damian Naquin, Gen. Mgr.

1988

Best Rate Express LLC PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Young Summers, Member

Best Rate Express, LLC.: 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.

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

Linda Leary, Pres.

Coastal Transportation 4025 13th Ave. W. Seattle, WA 98119 Phone: 800-544-2580 Fax: 206-283-9121

Alex Hofeling, Dir. of Marketing

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

PJ Cranmer, Reg. Ops Mgr. Pac. NW

108

amlcsc@lynden.com shipaml.com

Services Services

corpinfo@akrr.com alaskarailroad.com

info@aktrucks.org aktrucks.org

recycling@akwaste.com alaskawaste.com

information@lynden.com lynden.com/awe

youtube.com/americanfastfreight americanfast.com

youtube.com/americanfastfreight www.americanfast.com

youtube.com/americanfastfreight americanfast.com

yksummers@qwestoffice.net bestrateexpress.com 1980

500

Full-service transportation company.

pspittler@carlile.biz carlile.biz 0

A family owned U.S. flag marine transportation company. Coastal operates six vessels with scheduled year-round sailings between Seattle and ports throughout Western Alaska and the Aleutian Islands. Twenty-eight years in Western Alaska provides a level of expertise that is unmatched.

cs@coastaltransportation.com coastaltransportation.com

anc-customerservice@cfi-anc.com cfi-anc.com

Alaska Business Monthly | June 2013

2003

www.akbizmag.com

Company Company

TopExecutive Executive Top

Continental Van Lines Inc. 1031 E. First Ave. Anchorage, AK 99501 Phone: 907-279-2571 Fax: 907-276-7590

Leslie Carter, Alaska Mgr.

CPD Alaska LLC (Crowley) 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Bob Cox, VP

Crowley Solutions 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5464 Fax: 907-777-5550

Bruce Harland, VP

DHL Global Forwarding 2000 W. Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

John Witte, Reg. Mgr.

Express Delivery Service Inc. 701 W. 41st Ave., Unit D Anchorage, AK 99503-6604 Phone: 907-562-7333 Fax: 907-561-7281

Ed Hoffman, Pres.

Hi-Line Moving Services Inc. 4500 North Star Blvd. Great Falls, MT 59405 Phone: 800-769-1096 Fax: 406-268-8021

Lindstrom Gregory, Pres.

Homer Expediters 990 SeaPlane Ct. Homer, AK 99603 Phone: 907-235-5244 Fax: 907-235-5244 Horizon Lines LLC 1717 Tidewater Rd. Anchorage, AK 99501-1036 Phone: 907-274-2671 Fax: 907-263-5043

www.akbizmag.com

AK AK Estab. Estab. Empls. Empls.

Services Services

1952

Alaska's premier moving and storage company.

1892

500

CPD operates fuel terminals in 20 locations in the railbelt and western Alaska, providing home heating oil, jet fuel, diesel, gasoline and propane. During the summer, our barges make direct deliveries to over 200 western Alaska communities. Crowley proudly celebrates 60 years of service to Alaska.

1892

500

Crowley Solutions was formed in 2010 to provide increased support services to the oil and gas industry including turnkey project management solutions, ocean towing, heavy lift transportation services, spill response services, tanker escort and docking services in Valdez.

1970

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

1977

Air courier services, local and Valley delivery services, special warehousing and storage. Specializing in serving the medical community. Open 24/7/365.

1965

Hi-Line Moving Services is an internationally recognized transportation service provider for moving household goods all over the world for military members and for civilians. We coordinate a full spectrum of services in-house and for other carriers moving shipments into and out of Alaska.

Jules Ravin , Owner/Operator

1986

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

Marion Davis, VP & GM, AK Div.

1964

280

Container ship service between Tacoma, Wash., 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.

lcarter@continentalvan.com continentalvan.com

bob.cox@crowley.com cpdalaska.com

crowley.com

jane.treadway@dhl.com dhl-dgf.com

e.hoffman@expressdeliveryak.com

bsmith@hilinemoving.com hilinemoving.com

horizonlines.com

June 2013 | Alaska Business Monthly

109

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY

LAND, RAIL & TRUCK

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY LAND, RAIL & TRUCK Company Company

Top TopExecutive Executive

Kenworth Alaska 2838 Porcupine Dr. Anchorage, AK 99501 Phone: 907-279-0602 Fax: 907-258-6639

Marshall Cymbaluk, CEO/Mgr.

Kodiak Transfer Inc. 5152 Tom Stiles Rd., Bldg. A Kodiak, AK 99615 Phone: 907-487-9765 Fax: 907-487-2198

Kirk Rasmussen, Pres.

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

David Richardson, Pres.

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

David Richardson, Pres.

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

Alex McKallor, Pres.

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

Paul Grimaldi, Pres.

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

Larry Stauffer, Pres./CEO

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

King Hufford, Pres.

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

Ed Fitzgerald, CEO

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

Harbinder Dhillon, Gen. Mgr.

Samson Tug & Barge Co. 6361 First Ave. S. Seattle, WA 98108 Phone: 907-747-8559 Fax: 907-747-5370

George Baggen, Pres./CEO

Sourdough Express Inc. PO Box 73398 Fairbanks, AK 99707 Phone: 907-452-1181 Fax: 907-452-3331

Brian Skinner, Gen. Mgr.

Span Alaska Transportation Inc. PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

Mike Landry, Pres.

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

Todd Clark, Pres.

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

George Lowery, AK Dir.

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

Lee McKenzie, Pres./Owner

110

AK Estab. Empls. Empls. Estab.

Services Services

1974

Class six, seven and eight truck sales. Truck service and maintenance for all makes. Parts department for all makes of trucks.

1962

Local and nationwide trucking with storage.

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

148

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

1977

150

Marine transportation services to and from Alaska.

2010

Full service logistics and transportation. Scheduled barge service from Olympia, WA to Port MacKenzie, AK.

1961

1970

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

1937

Samson is Alaskan owned and offers the full range of barge freight and cargo hauling services to Alaska on a scheduled year-round basis. Samson transports cargo to Sitka, Cordova, Valdez, Fairbanks, Prudhoe Bay, Seward, Anchorage, the Kenai Peninsula, Kodiak, King Cove and Dutch Harbor.

1898

110

Freight-transportation services, heavy-hauling trucking, local delivery services, local trucking services, storage, oilfield hauling and container sales. Employee relocations worldwide.

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, WA, and Anchorage.

1969

Parts, sales and service for trucks, tractors, trailers and transport equipment.

sales@kenworthalaska.com kenworthalaska.com

Kodiaktransfer@Alaska.net kodiaktransfer.com

information@lynden.com laf.lynden.com

lafmtg@laf.lynden.com lynden.com/lint

information@lynden.com lynden.com

trananccs@lynden.com lynden.com/ltia/

info@northlandservices.com northlandservices.com

KHufford@PacArctic.com PacArctic.com

Info@pafak.com pafak.com

shirah.pierce@simsmm.com simsmm.com

sales@samsontug.com samsontug.com

sourdoughexpress.com

kathyL@spanalaska.com spanalaska.com

toddc@tgifreight.com tgifreight.com

totemocean.com

sales@trailercraft.com trailercraft.com

Alaska Business Monthly | June 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

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

Vanessa Keyes, Reg. Dir./AK

United Freight & Transport Inc. 1701 E. First Ave. Anchorage, AK 99501-1831 Phone: 907-272-5700 Fax: 907-272-4324

AK AK Estab. Estab. Empls. Empls.

Services Services

2011

Frank S. Monfrey, Gen. Mgr.

1985

Freight-transportation services.

Waste Management of Alaska Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 855-973-3949 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

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.

Weaver Brothers Inc. 2230 Spar Ave. Anchorage, AK 99501 Phone: 907-278-4526 Fax: 907-276-4316

Jim Doyle, Pres.

1962

153

Freight transportation services (bulk, dry and liquids), heavy hauling (flatbeds, lowboys and vans) and local trucking without storage.

vanessak.anc@transgroup.com transgroup.com

mholzschuh@wm.com wm.com

info@wbialaska.com wbialaska.com

TRANSPORTATION LOGISTICS Company Company

Top Executive Top Executive

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

Mike Bergt, Pres.

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

Tom Verges, Ops. Mgr.

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

Tim Jacobson, CEO

AK AK Estab. Estab. Empls. Empls. 1988

1993

1984

greg@aceaircargo.com aceaircargo.com

youtube.com/americanfastfreight americanfast.com

Services Services

You’re looking at the Freightliner 122SD hauling a barge across Alaska’s unforgiving landscape. With Detroit™ DD16® engine ratings up to 600 horsepower and torque ratings up to 2050 lb-ft, it can pull heavy, oversized loads with confidence. And the 122SD boasts frame rail RBMs up to five million inch-pounds per rail. That’s the kind of rugged durability needed to make it from Prudhoe Bay to Valdez, grossing 160,000 pounds. To learn more, visit FreightlinerTrucks.com/WorkSmart.

Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. www.freightlinertrucks.com. FTL/MC-A-1237. Specifications are subject to change without notice. Copyright © 2013. Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.

www.akbizmag.com

1301 EAST 64TH AVENUE ANCHORAGE, ALASKA 99518 907-563-3238 • FAX: 907- 561-4995 June 2013 | Alaska Business Monthly

111

ALASKA BUSINESS MONTHLY’S 2013 TRANSPORTATION DIRECTORY

LAND, RAIL & TRUCK

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY TRANSPORTATION LOGISTICS Company Company

Top TopExecutive Executive

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

Daniel Owen, Pres. & Owner/Operator

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

Kevin Anderson, Pres.

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

Christopher Aadnesen, Pres./CEO

Alaska Traffic Co. PO Box 3837 Seattle, WA 98124 Phone: 425-282-6610 Fax: 425-282-6611

Nick Lohman, VP/Gen. Mgr.

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

Scott Hicks, Pres.

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

Zach Jacobson, AK Mgr. Sales, Ops

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

Tim Jacobson, CEO

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

Zach Jacobson, Alaska Sales Mgr.

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

Zach Jacobson, Alaska Sales Mgr.

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

Brady Purdue, Gen. Mgr.

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

Damian Naquin, Gen. Mgr.

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

Rick Gray, Pres.

Bering Pacific Services Co. 7801 Schoon St., Suite B Anchorage, AK 99518 Phone: 907-222-7672 Fax: 907-222-7673

Mike Brazier, Mgr.

Best Rate Express LLC PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Young Summers, Member

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

Jim Dwight, Gen. Mgr.

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

Linda Leary, Pres.

112

AK Estab. Empls. Empls. Estab.

Services Services

1984

1980

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

1914

614

Freight and passenger rail transportation and real estate leasing and permitting services.

1956

1978

129

1984

120

1984

120

1984

1988

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!"

Best Rate Express, LLC.: 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.

Charters@FlyAAT.com FlyAAT.com

amlcsc@lynden.com shipaml.com

corpinfo@akrr.com alaskarailroad.com

info@alaskatraffic.com alaskatraffic.com

information@lynden.com lynden.com/awe

youtube.com/americanfastfreight www.americanfast.com

youtube.com/americanfastfreight americanfast.com

information@lynden.com bmc.lynden.com

mikeb@beringpacific.com beringpacific.com

yksummers@qwestoffice.net bestrateexpress.com

info@bowhead.com bowheadtransport.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.

pspittler@carlile.biz carlile.biz

Alaska Business Monthly | June 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

Coastal Transportation 4025 13th Ave. W. Seattle, WA 98119 Phone: 800-544-2580 Fax: 206-283-9121

Alex Hofeling, Dir. of Marketing

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

PJ Cranmer, Reg. Ops Mgr. Pac. NW

CPD Alaska LLC (Crowley) 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Bob Cox, VP

Crowley Solutions 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5464 Fax: 907-777-5550

Bruce Harland, VP

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

Sherron Perry, Mgr.

DHL Global Forwarding 2000 W. Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

John Witte, Reg. Mgr.

Evergreen Helicopters Inc. 1936 Merrill Field Dr. Anchorage, AK 99501-4113 Phone: 907-257-1500 Fax: 907-257-1554

Terry Pena, Dir. Ops Anch.

Express Delivery Service Inc. 701 W. 41st Ave., Unit D Anchorage, AK 99503-6604 Phone: 907-562-7333 Fax: 907-561-7281

Ed Hoffman, Pres.

www.akbizmag.com

AK AK Estab. Estab. Empls. Empls.

Services Services

2003

1892

500

1892

500

1976

120

1970

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

1961

Helicopter contract and charters covering the entire state of Alaska.

1977

Air courier services, local and Valley delivery services, special warehousing and storage. Specializing in serving the medical community. Open 24/7/365.

cs@coastaltransportation.com coastaltransportation.com

anc-customerservice@cfi-anc.com cfi-anc.com

bob.cox@crowley.com cpdalaska.com

crowley.com

info@deadhorseaviationcenter.com deadhorseaviationcenter.com

jane.treadway@dhl.com dhl-dgf.com

evergreenaviation.com

e.hoffman@expressdeliveryak.com

June 2013 | Alaska Business Monthly

113

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY

TRANSPORTATION LOGISTICS

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY TRANSPORTATION LOGISTICS Company Company

Top TopExecutive Executive

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

Gary Faber, COO

Grant Aviation 4451 Aircraft Dr. Anchorage, AK 99502 Phone: 888-359-4726 Fax: 907-248-7076

Bruce McGlasson, Pres.

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

Marion Davis, VP & GM, AK Div.

Kodiak Transfer Inc. 5152 Tom Stiles Rd., Bldg. A Kodiak, AK 99615 Phone: 907-487-9765 Fax: 907-487-2198

Kirk Rasmussen, Pres.

Last Frontier Air Ventures Ltd. 39901 N. Glenn Hwy. Sutton, AK 99674 Phone: 907-745-5701 Fax: 907-745-5711

David King, Pres.

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

David Richardson, Pres.

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

David Richardson, Pres.

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

Alex McKallor, Pres.

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

Paul Grimaldi, Pres.

Million Air Anchorage 6160 Carl Brady Dr. Anchorage, AK 99502 Phone: 907-550-8500 Fax: 907-550-8502

Randy Orr, Pres./Gen. Mgr.

Naniq Global Logistics PO Box 240825 Anchorage, AK 99524 Phone: 907-345-6122 Fax: 907-345-6125

Paull Gillett , COO

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

Jeff Bentz, Pres.

Olgoonik Logistics 3201 C St., Suite 700 Anchorage, AK 99503 Phone: 907-562-8706 Fax: 907-562-8751

Kurt Slocum, Gen. Mgr.

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

King Hufford, Pres.

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

Ed Fitzgerald, CEO

Pathfinder Aviation Inc. PO Box 375 Homer, AK 99603 Phone: 907-226-2800 Fax: 907-226-2801

Michael W. Fell, Pres.

114

AK Estab. Empls. Empls. Estab.

Services Services

1889

1971

203

1964

280

1962

Local and nationwide trucking with storage.

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.

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

148

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.

2005

Worldwide logistics, including ground, air, and ocean.

info@foss.com fossmaritime.com

res@flygrant.com flygrant.com

horizonlines.com

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.

Kodiaktransfer@Alaska.net kodiaktransfer.com

helicopter@LFAV.com LFAV.com

information@lynden.com laf.lynden.com

lafmtg@laf.lynden.com lynden.com/lint

information@lynden.com lynden.com

trananccs@lynden.com lynden.com/ltia/

tmichaud@millionair.com millionair.com/FBO/anc.aspx

paul.gillett@naniqglobal.com naniqglobal.com 1950

sales@northstarak.com northstarak.com

50,150 Stevedore, marine logistics and operated crane services. We are also providing state of the art driven foundations with our ABI Mobile Ram Machines.

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 barge service from Olympia, WA to Port MacKenzie, AK.

1961

2001

olinfo@olgoonik.com olgooniklogistics.com

KHufford@PacArctic.com PacArctic.com

Info@pafak.com pafak.com

pathfinderaviation@alaska.net pathfinderaviation.com

Alaska Business Monthly | June 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

Port of Anacortes 100 Commercial Ave. Anacortes , WA 98221 Phone: 360-299-1828 Fax: 360-293-9608

AK AK Estab. Estab. Empls. Empls. 0

Bulk load out of green pet coke and sulphur.

1961

The Port of Anchorage serves as the point of entry for 90% of the consumer goods for 85% of Alaska. It is open year around, has a five berth terminal and a dry barge berth providing facilities for the movement of containerized freight, iron and steel products, bulk petroleum and bulk cement.

1989

We are the southern terminus for the Alaska Marine Highway System at the Bellingham Cruise Terminal.

2009

Shipyard; Marine Travelift 180' x 42' vessels; Container cargo up to 30 tons.

1911

Port of Seattle provides: Access to the world's largest ocean carriers; Home port for the cruise industry serving Alaska & Alaska commercial fishing fleet; Local warehousing & cold-storage; Fast intermodal inland connections; Handles containerized, break bulk, roro & project cargo; air cargo hub.

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, bulk and breakbulk cargo.

1937

1898

110

Freight-transportation services, heavy-hauling trucking, local delivery services, local trucking services, storage, oilfield hauling and container sales. Employee relocations worldwide.

josh@portofanacortes.com

Port of Anchorage 2000 Anchorage Port Rd. Anchorage, AK 99501 Phone: 907-343-6200 Fax: 907-277-5636

Richard G. Wilson, Port Dir.

Port of Bellingham PO Box 1677 Bellingham, WA 98227 Phone: 360-676-2500 Fax: 360-671-6411

Rob Fix, Exec. Dir.

Port of Kodiak and Shipyard 403 Marine Way Kodiak, AK 99615 Phone: 907-486-8080 Fax: 977-486-8090

Marty Owen, Port Dir.

Port of Seattle PO Box 1209 Seattle, WA 98111 Phone: 206-787-3024 Fax: 206-787-3413

Tay Yoshitani, CEO

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

John Wolfe, CEO

Samson Tug & Barge Co. 6361 First Ave. S. Seattle, WA 98108 Phone: 907-747-8559 Fax: 907-747-5370

George Baggen, Pres./CEO

Sourdough Express Inc. PO Box 73398 Fairbanks, AK 99707 Phone: 907-452-1181 Fax: 907-452-3331

Brian Skinner, Gen. Mgr.

Services Services

wwport@muni.org muni.org/port

facebook.com/PortofBellingham portofbellingham.com

mowen@city.kodiak.ak.us KodiakShipYard.com

portseattle.org/Cargo

facebook.com/portoftacoma portoftacoma.com

sales@samsontug.com samsontug.com

sourdoughexpress.com

WHETHER SHIPPING A D-10 CAT TO KAKTOVIK OR SCIENCE KITS TO SCHOOLS ON THE ARCTIC COAST BOWHEAD CAN BARGE IT

SPECIALIZED VESSELS | ARCTIC EXPERTS [800] 347-0049 | 4025 DELRIDGE WAY SW, SUITE 160 | SEATTLE, WA 98106 | WWW.BOWHEADTRANSPORT.COM A

M E M B E R

www.akbizmag.com

O F

T H E

U K P E A G V I K

I Ă&#x2018; U P I AT

C O R P O R AT I O N

FA M I LY

O F

C O M PA N I E S

June 2013 | Alaska Business Monthly

115

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY

TRANSPORTATION LOGISTICS

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY TRANSPORTATION LOGISTICS Company Company

Top TopExecutive Executive

Span Alaska Transportation Inc. PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

Mike Landry, Pres.

Ted Stevens Anchorage Int'l Airport PO Box 196960 Anchorage, AK 99519-6960 Phone: 907-266-2119 Fax: 907-243-0663

John Parrott, Airport Mgr.

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

Todd Clark, Pres.

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

George Lowery, AK Dir.

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

Vanessa Keyes, Reg. Dir./AK

Waste Management of Alaska Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 855-973-3949 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

Services Services

1978

1951

390

World class cargo airport, largest passenger airport in Alaska and the world's busiest float-plane base.

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, WA, and Anchorage.

2011

1969

kathyL@spanalaska.com spanalaska.com

dot.aia.ancinfo@alaska.gov anchorageairport.com

toddc@tgifreight.com tgifreight.com

totemocean.com

vanessak.anc@transgroup.com transgroup.com

mholzschuh@wm.com wm.com

MARINE TRANSPORTATION Company Company

Top Executive Top Executive

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

Tom Verges, Ops. Mgr.

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

Tim Jacobson, CEO

Alaska Marine Highway System 7995 N. Tongass Hwy. Ketchikan, AK 99901 Phone: 800-642-0066 Fax: 907-225-6874

Capt. John Falvey

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

Kevin Anderson, Pres.

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

Christopher Aadnesen, Pres./CEO

Alaska Ship & Drydock 3801 Tongass Ave. Ketchikan, AK 99901 Phone: 907-228-5302 Fax: 907-247-7200

Adam Beck, Pres.

All American Marine 200 Harris Ave. Bellingham, WA 98225 Phone: 360-647-7602 Fax: 360-647-7607

Joe Hudspeth, VP Business Dev.

Allen Marine Inc. 1512 Sawmill Creek Rd. Sitka, AK 99835 Phone: 907-747-8100 Fax: 907-747-2689

Thomas Scheidt, VP

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

Zach Jacobson, AK Mgr. Sales, Ops

116

AK Estab. Empls. Empls. Estab.

AK AK Estab. Empls. Estab. Empls.

Services Services

1993

1984

youtube.com/americanfastfreight americanfast.com

youtube.com/americanfastfreight americanfast.com 1963

dot.ask.amhs@alaska.gov ferryalaska.com

1,030 Providing marine transportation for passengers and vehicles to over 30 Alaska coastal communities. No pre-set itineraries. Amenities available include staterooms, dining, movie theatres, arcades, and viewing lounges.

1980

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

1914

614

Freight and passenger rail transportation and real estate leasing and permitting services.

1994

157

Shipbuilding and repair; advanced manufacturing.

amlcsc@lynden.com shipaml.com

corpinfo@akrr.com alaskarailroad.com

info@akship.com akship.com 0

Custom aluminum boats.

1967

Commercial aluminum boat and structures manufacture.

1984

120

sales@allamericanmarine.com allamericanmarine.com

boats@allenmarine.com allenmarine.com

youtube.com/americanfastfreight www.americanfast.com

Alaska Business Monthly | June 2013

www.akbizmag.com

Company Company

TopExecutive Executive Top

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

Zach Jacobson, Alaska Sales Mgr.

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

Tim Jacobson, CEO

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

Zach Jacobson, Alaska Sales Mgr.

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

Brady Purdue, Gen. Mgr.

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

Damian Naquin, Gen. Mgr.

Anderson Tug & Barge Co. PO Box 1524 Seward, AK 99664 Phone: 907-224-5506 Fax: 907-224-7446

Brad Kroon, Gen. Mgr.

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

Rick Gray, Pres.

Bering Pacific Services Co. 7801 Schoon St., Suite B Anchorage, AK 99518 Phone: 907-222-7672 Fax: 907-222-7673

Mike Brazier, Mgr.

AK AK Estab. Estab. Empls. Empls.

Services Services

1984

120

1984

1988

1978

Ship and barge assist, line handling and pilot boat.

1985

1997

youtube.com/americanfastfreight americanfast.com

info@andersontug.com andersontug.com

information@lynden.com bmc.lynden.com

mikeb@beringpacific.com beringpacific.com

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 www.akbizmag.com

877.678.7447

June 2013 | Alaska Business Monthly

117

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY

MARINE TRANSPORTATION

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY MARINE TRANSPORTATION Company Company

Top TopExecutive Executive

Best Rate Express LLC PO Box 39193 Lakewood, WA 98496 Phone: 253-535-1000 Fax: 253-535-2060

Young Summers, Member

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

Jim Dwight, Gen. Mgr.

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

Linda Leary, Pres.

Coastal Transportation 4025 13th Ave. W. Seattle, WA 98119 Phone: 800-544-2580 Fax: 206-283-9121

Alex Hofeling, Dir. of Marketing

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

PJ Cranmer, Reg. Ops Mgr. Pac. NW

CPD Alaska LLC (Crowley) 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Bob Cox, VP

Crowley Solutions 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5464 Fax: 907-777-5550

Bruce Harland, VP

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

Kevin Weiss, Sr. Marine Dir.

Delta Western Inc. 420 L St., Suite 101 Anchorage, AK 99501 Phone: 800-478-2688 Fax: 206-213-0103

Kirk Payne, Pres.

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

Gary Faber, COO

Grant Aviation 4451 Aircraft Dr. Anchorage, AK 99502 Phone: 888-359-4726 Fax: 907-248-7076

Bruce McGlasson, Pres.

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

Jim Weimer, GM, PCM

Harvey Gulf International Marine LLC 3601 C St., Suite 1378 Anchorage, AK 99503 Phone: 504-348-2466 Fax: 504-348-8060

Shane J. Guidry, Chairman/CEO

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

Marion Davis, VP & GM, AK Div.

Kvichak Marine Industries 469 NW Bowdoin Pl. Seattle, WA 98107 Phone: 206-545-8485 Fax: 206-545-3504

Keith Whittemore, Pres.

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

David Richardson, Pres.

118

AK Estab. Empls. Empls. Estab.

Services Services

Best Rate Express, LLC.: 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

1980

500

Full-service transportation company.

yksummers@qwestoffice.net bestrateexpress.com

info@bowhead.com bowheadtransport.com

pspittler@carlile.biz carlile.biz 0

2003

1892

500

1892

500

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

Fueling Alaska safely for over 25 years.

1889

1971

203

1975

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

2010

Harvey Gulf International Marine LLC is a marine transportation company that specializes in towing drilling rigs and providing offshore supply and multi-purpose support vessels for deepwater and ultra-deepwater operations.

1964

280

cs@coastaltransportation.com coastaltransportation.com

anc-customerservice@cfi-anc.com cfi-anc.com

bob.cox@crowley.com cpdalaska.com

crowley.com

info@cruzmarine.com cruzmarine.com

deltawestern.com

info@foss.com fossmaritime.com

res@flygrant.com flygrant.com

harleymarine.com

harveygulf.com

horizonlines.com

Builder of aluminum commercial workboats.

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

sales@kvichak.com kvichak.com

lafmtg@laf.lynden.com lynden.com/lint

Alaska Business Monthly | June 2013

1980

www.akbizmag.com

Company Company

TopExecutive Executive Top

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

Alex McKallor, Pres.

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

Paul Grimaldi, Pres.

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

Bob Fell, Dir. of Ops.

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

Jeff Bentz, Pres.

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

Larry Stauffer, Pres./CEO

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

King Hufford, Pres.

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

Ed Fitzgerald, CEO

Samson Tug & Barge Co. 6361 First Ave. S. Seattle, WA 98108 Phone: 907-747-8559 Fax: 907-747-5370

George Baggen, Pres./CEO

www.akbizmag.com

AK AK Estab. Estab. Empls. Empls.

Services Services

1984

Arrangement of freight transportation, information management and logistical services.

1954

148

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

1973

information@lynden.com lynden.com

trananccs@lynden.com lynden.com/ltia/

info@maritimehelicopters.com maritimehelicopters.com 1950

sales@northstarak.com northstarak.com

50,150 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.

2010

Full service logistics and transportation. Scheduled barge service from Olympia, WA to Port MacKenzie, AK.

1961

1937

info@northlandservices.com northlandservices.com

KHufford@PacArctic.com PacArctic.com

Info@pafak.com pafak.com

sales@samsontug.com samsontug.com

June 2013 | Alaska Business Monthly

119

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 TRANSPORTATION DIRECTORY

MARINE TRANSPORTATION

ALASKA BUSINESS MONTHLYâ&#x20AC;&#x2122;S 2013 OIL & GAS DIRECTORY

MARINE TRANSPORTATION AK AK Estab. Estab. Empls. Empls.

Company Company

TopExecutive Executive Top

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

Crystal Collier, Pres./CEO

Sourdough Express Inc. PO Box 73398 Fairbanks, AK 99707 Phone: 907-452-1181 Fax: 907-452-3331

Brian Skinner, Gen. Mgr.

Span Alaska Transportation Inc. PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

Mike Landry, Pres.

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

George Lowery, AK Dir.

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

Vanessa Keyes, Reg. Dir./AK

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

Mark Smith, CEO

Waste Management of Alaska Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 855-973-3949 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

Western Towboat Co. 617 NW 40th St. Seattle, WA 98107 Phone: 206-789-9000 Fax: 206-789-9755

Bob Shrewsbury II, Pres.

Services Services

2010

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

1898

110

Freight-transportation services, heavy-hauling trucking, local delivery services, local trucking services, storage, oilfield hauling and container sales. Employee relocations worldwide.

1978

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, WA, 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 and the Pacific coast with 23 tugs and six barges.

Info@seldoviabayferry.com Seldoviabayferry.com

sourdoughexpress.com

kathyL@spanalaska.com spanalaska.com

totemocean.com

vanessak.anc@transgroup.com transgroup.com

stacey.smith@vitusmarine.com vitusmarine.com

mholzschuh@wm.com wm.com

Westerntowboat@westerntowboat.co westerntowboat.com

Fueling the Trident Cannery in Akutan, the City of King Cove and warming the home of Tom and Annie Hume. As Alaska residents, we know what it takes to keep the home fires burning, no matter how far away they are. So we developed a barge distribution network that allows us to provide reliable, costeffective fuel and freight delivery to homes and businesses even when rivers are running low. Now folks like the Humes can count on having the fuel they need, when they need it. And knowing that Delta Western will do whatever it takes to keep Fueling Alaska Safely.

For all of your quality fuel needs, call us toll-free at 800.478.2688

Reputation

Corporate Image Awareness

Market Leadership The reasons to advertise are abundant. Maybe you want to build a stronger corporate identity or establish leadership status. Or perhaps you are more product or service oriented and want to drive traffic to your business or website. Call me or send an email. I will help you reach the business audience in Alaska.

Charles Bell Vice President Sales (907) 230-8213 cbell@akbizmag.com ASK ABOUT PRINT & DIGITAL OPTIONS

120

Alaska Business Monthly | June 2013

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ALASKA THIS MONTH Compiled By Tasha Anderson

DINING

Photos by Tasha Anderson

Suite 100

“

an, I could’ve paid more for that,” is the sentiment that Kelly Nichols, co-owner of Suite 100 with his wife Heidi Nichols, would like you to have. Located at 1000 E. Dimond Boulevard in Anchorage, Suite 100 is well-suited to serve any of your evening dining needs, opening daily at 4 p.m. “We do a little bit of everything,” Heidi says. “We do high grade prime rib, steak, pasta, seafood, chicken. We’re heavy on the fresh seafood. We work really hard to make sure that the products we carry are very fresh.” Kelly adds, “I sold the hell out of king crab this week.” But neither owner would tell you to only come in for special occasions. Suite 100 is happy to be an any- or no-occasion restaurant. “We hope that you come in and if it’s Tuesday night and you want a salad and an appetizer, that’s great; if it’s your anniversary and you want to spend $40 for a rack of lamb, hopefully it’s just as great,” Kelly says. “There’s something for everybody here,” Heidi adds. Over their six years of operation, there have been a few changes. “We had a great chef when we started out, Chef Josh,” Kelly says. “He comes in for the anniversary and I try to find creative ways to pick up the tab without him knowing,” he laughs. “He did us a huge favor.” But, the great food and excellent service have remained consistent. “Now, six years later, it’s how our intent was when we started: we’re not trying to gouge people. Let’s over perform, do our best, and let the chips lay where they may. So far, we’re still at the table,” Kelly says. suite100restaurant.com 

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ALASKA THIS MONTH Compiled By Tasha Anderson

TRAVEL

Photo courtesy of St. Elias Alpine Guides

Historic Kennecott Tours

Fourteen story Kennecott Concentration Mill.

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Alaska Business Monthly | June 2013

t. Elias Alpine Guides offers a variety of uniquely Alaska opportunities, one of which is a guided tour through the historic Kennicott. When Kennecott copper mine closed in 1938, the town was abandoned. In 1998, the National Park Service acquired many of the buildings; since then there have been ongoing efforts to renovate and preserve them. “Right now our tours feature the power house, the ammonia refrigeration and leaching plants, and a couple of the bunk houses,” says Gaia Marrs, who owns St. Elias Alpine Guides with her husband, Wayne . “In the past, and hopefully in the future, they will also feature the Kennecott Concentration Mill, a fourteen story building.” The two-hour walking tours provide information about many aspects of the town and historic Kennicott life. “We give information about how the copper was discovered, how the railroad was built, what life was like in Kennicott, and how they generated power as well as details on the processing of the copper: how they got it down from the mines, how the mill building worked, and ammonia leaching.” Guides cater the tour to fit the interests of the guests, Marrs says, so it’s engaging for a family with young children, history buffs, or a group of engineers. Marrs has thirty years of experience with this and other guided tours in the area and has owned St. Elias Alpine Guides for the past ten. The company—in operation since 1978, before Wrangell-St. Elias was designated as a national park—also offers glacier hikes, ice climbing, and rafting in the area. steliasguides.com  www.akbizmag.com

ALASKA THIS MONTH Compiled By Tasha Anderson

ENTERTAINMENT

Photo courtesy of The Nome Nugget newspaper

Nome Polar Bear Swim: Midnight Sun and Freezing Water

Swimmers cringe at the Arctic water temperatures of the Bering Sea.

laskans hit the beach in Nome in a celebration of warmer weather much like those in more southern locations—though, of course, Alaskan swimmers need to watch out for ice. This doesn’t dissuade the Nome Polar Bear Swim participants every June as they plunge into the frigid Bering Sea. Leo Rasmussen, former mayor of Nome, was around for the Swim’s creation, though he didn’t participate right away: “I wasn’t one of them at first, but within a couple years I was one of those crazy people.” He credits an old group of friends with initiating Nome’s Polar Bear Swim, with Mike Murphy “putting it all together.” Rasmussen says, “I had some friends that were looking for something to add some spice to their lives.” They decided that leaping into frozen waters was just that spice, and started doing so in the 1975. Originally, the plunge was in May, but has been moved to June. “About twenty years ago the Rotary Club took it over, and after years of bleeding knees and elbows—but no serious injuries—changed it to the Saturday of the Midnight Sun festival,” Rasmussen says. The shift gives the Bering Sea a few more critical weeks of sunlight and warmth, reducing the number of sharp ice flows that swimmers encounter. This is important because to be a genuine participant in the Nome Polar Bear Swim, submersion is a must. He says, “You have to go in completely; no wading. We have patches that attest to your feat.” This year’s swim is scheduled for June 22. The swim may be rescheduled if the ocean ice hasn’t sufficiently broken up. For more information, call 907-443-2798.  www.akbizmag.com

June 2013 | Alaska Business Monthly

123

EVENTS CALENDAR ANCHORAGE 5/3-6/16

RED

Winner of a 2010 Tony Award, this intense and exciting play is about famous American abstract expressionist painter Mark Rothko as he paints the biggest commission in the history of modern art. RED captures the dynamic relationship between the artist and his creation. Cyrano’s, various times. cyranos.org

Festival of Flowers

This event features live music, VIP wine tasting and wine garden, photo booth, art fair, master gardeners, garden tours, and a flower gardening sale. Town Square Park. anchoragedowntown.org

1-9

Three Barons Renaissance Fair

Taking place the first two weekends in June, this annual fair includes vendors, food, live entertainment and music, auctions, and demonstrations. Tozier Track, 12 p.m. to 8 p.m. kandhgraphics.com/3B/red.html

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Potter Marsh Discovery Day

This family-friendly event on National Get Outdoors Day features nature-related games and prizes, invertebrate sampling, birding stations along the boardwalk, captive birds from Bird TLC, educational animals from the Alaska Zoo, kidfriendly archery range, and release of a rehabilitated wild bird. Potter Marsh Boardwalk, 11 a.m. to 4 p.m. adfg.alaska.gov

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Book Signing: Kris Farmen

Alaskan author Kris Farmen signs copies of his new novel Turn Again, a historical murder mystery set in Alaska’s Russian era. Anchorage Museum, 6 p.m. to 9 p.m. anchoragemuseum.org

Alaska Pride Festival

This year’s theme is “Our State of Pride” and events include the Pride Fest March and live entertainment on the festival stage. Delaney Park, various times. alaskapride.org

Moose’s Tooth Summer Solstice

The Moose’s Tooth present Primus, rock band from California, as the guest artist for this years Solstice Party. For those twenty-one and over. Moose’s Tooth Pub & Pizzeria, 6 p.m. beartooththeatre.net

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22 Downtown Summer Solstice Festival and Hero Games Events include live musical performances, pro skateboarders, chainsaw art test, and the Hero Games, which are a day-long friendly competition between the police, troopers, each military branch, and the fire department, including an obstacle course, a “rescue the cat” climb, litter carry, the bucket brigade, and tricycle races. Fourth Avenue and Town Square, Noon to Midnight. anchoragedowntown.org

Mayor’s Marathon and Half Marathon

The 26.2-mile marathon begins at Bartlett High School and travels through the eastern foothills and across Anchorage to the Delaney Park Strip finish line. The race is sanctioned by USA Track and Field and is recognized by the Boston Marathon as a qualifying event. Race start is 8 a.m. mayorsmarathon.com

EAGLE RIVER 29

Scottish Highland Games

Events include professional and local amateur Highland athletic competitions; piping, drumming, and dancing competitions; the international band Celtica, playing rock featuring bagpipes; and the Scotch tasting event. Eagle River Lions Park, various times. alaskascottish.org

FAIRBANKS 2

Wild Arts Walk

Friends of Creamer’s Field present this annual fundraising event. It includes the Design Alaska Wild Arts Walk Quick Draw, where six local artists create unique pieces in one hour, which are then auctioned. Admission includes light food and beverage. Creamer’s Field, 4 p.m. creamersfield.org

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Alaska Business Monthly | June 2013

Summer Folk Fest

Music styles include folk, old-timey, bluegrass, Cajun, French Canadian, Celtic, Tribal, swing, jazz, and others. Pioneer Park Theater, afternoon. alaskasbest.com

Midnight Sun Festival

The festival has more than 180 booths of arts, crafts, merchandise, information, and food. Events include skateboarding, face painting, xtreme car racing, padwww.akbizmag.com

Compiled By Alaska Business Monthly Staff dler’s river slalom race, break dancing, pony rides, vintage motors, BBQ cook-off, gold panning, break dancing, and celestial shopping. Downtown Fairbanks, First, Second, and Third avenues; Noon to Midnight. downtownfairbanks.com

JUNEAU 8

Juneau Symphony Gourmet Food Series

Join Juneau Symphony conductors for gourmet treats one week prior to each mainstage concert. June’s event features delicious barbeque from the Spinning Pig. Weather permitting, guests will dine and dance outside to the sounds of Motown. Juneau Yacht Club, 6 p.m. to 8 p.m. traveljuneau.com

Gold Rush Days

Juneau celebrates its heritage with two fun-filled days of events featuring logging and mining skills competitions, food, and fun activities for the whole family. Savikko Park, various times. traveljuneau.com

28-29

Festival of Fun Charity Carnival

The festival includes a pie eating contest, carnival games, prices, popcorn, cotton candy and lots of other carnival foods. The games are run by individual charities which receive the proceeds. Nugget Mall, 5:30 p.m. to 7:30 p.m. Friday and 10 a.m. to 5:30 p.m. Saturday. nuggetmalljuneau.com

Juneau Symphony Chamber Concert IV

The Juneau Symphony concludes chamber concert series with a program of music by Alexander Tutanov on piano and Franz Felkl on violin. UAS Egan Library, Saturday 8 p.m. And Sunday 6 p.m. juneausymphony.org

KENAI 7-9

Kenai River Festival

Sponsored by the Kenai Watershed Forum, this event celebrates the Kenai River through activities, such as the KWF Kid’s Zone, Run for the River 5K/10 mile race, Alaskan artisans market, Rock Out for the River, and a beer garden. Soldotna Creek Park, various times. kenaiwatershed.org

KETCHKIKAN 15

Sole-Stice Shoe Auction

This event includes a live and silent auction as well as a boutique, with a no-host bar and warm hor d’oeuvres. Sponsored by the PeaceHealth Ketchikan Medical Center, proceeds from this year’s event will be used to fund Rotary House, a series of condominiums that provide housing for those who travel into Ketchikan for medical purposes. Ted Ferry Civic Center, 5:30 p.m. peacehealth.org

KODIAK 8-9

Kodiak Coast Walk 2013

The Island Trails Network, based in Kodiak, is sponsoring a weekend of community marine debris clean up and removal from the beaches that are accessible from the Kodiak road system. Participants can register to clean a beach or beaches of their choice from an interactive Google map online. Island Trails Network will provide clean up kits, a handout with a safety briefing, and will receive the marine debris for recycling off-island. Various locations and times. islandtrails.org

MOOSE PASS 22-23

Moose Pass Summer Solstice Festival

Activities include live music, a raffle, auction, kids’ games, bake sale, food, and a beer garden. Downtown Moose Pass, various times. Find this event on Facebook.

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NOME 22

Midnight Sun Parade

Judges choose their favorite floats. Parade begins at the State Building on Front Street, 11 a.m. visitnomealaska.com

PALMER 7-9

Colony Days

This festival honors the colonists who founded the farming community. Events include a car rally, craft fairs, horse-drawn wagon rides, farmer’s market, kids games, carnival rides, bike rodeo, parade, and live entertainment. Downtown Palmer, various times. palmerchamber.org

SELDOVIA 20-23

Summer Solstice Music Festival

The music festival includes afternoon workshops and evening live performances of local and far-off artists. Susan B. English School, various times. seldoviamusicfestival.wordpress.com

SITKA 6/7-7/5

Sitka Summer Music Festival

This world class festival showcases classical chamber music by internationally acclaimed musicians. Evening concerts are performed at Harrigan Centennial Hall; other activities include brown bag lunch concert series, community concert and ice cream social, and crab feed. Various locations and times. sitkamusicfestival.org

SKAGWAY 22

Summer Solstice

Activities include live music performed by several bands, family games, volleyball, horseshoes, food vendors, and a beer garden. Skagway Softball Fields(Seventh Pasture ballpark), 5 p.m. to 1 a.m. skagwaychamber.org

TALKEETNA 8

Wickersham Wall Ascent of 1963

In the summer of 1963, seven young Harvard students made the first ascent of the direct north face, or Wickersham Wall, on Denali, a route that has never been repeated. This summer for it’s fiftieth anniversary, four members of this team will be in Talkeetna to give a one-night only slideshow presentation of the ascent. Sheldon Community Arts Hangar, 7:30 p.m. talkeetnachamber.org

9, 14 & 15 Tumblehouse, Eternal Cowboy and Mojo Bone Three separate groups are performing live in June, all at the Fairview Inn: Tumble house on June 9 at 9 p.m.; Eternal Cowboy June 14 at 10 p.m.; and Mojo Bone June 15 at 10 p.m. talkeetnachamber.org

WASILLA 15-16

Alaska 4x4 Meet and Greet

This event hosts more than two hundred off-road enthusiasts and is an opportunity to unify the off-road community, promote off-road safety and preparedness, and improve the accessibility of trails in Alaska. Includes an obstacle course, articulation ramp, rollover seminar, kids’ games, camping, auction, food, and prizes. Museum of Alaska Transportation and Industry, 10 a.m. to 10 p.m. Find this event on Facebook.

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Alaska Business Monthly | June 2013

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ALASKA TRENDS

By Paul Davidson

U.S. Manufacturing Productivity

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

2011

2008

2005

2002

1999

1996

1993

1990

1987

anufacturers from bakers to auto makSelect Manufacturing Metrics ers have been growing ever more productive with their 1987-2012 time over the past few decades. 140 The U.S. Bureau of Labor Statistics publishes data on manu120 facturing, including output, 100 hours worked, and productivity (output per hour). The data set 80 Output for the chart uses indexed values for 1987-2012 with 2005 as 60 Hours Worked the base year and the base level 40 at 100. The Bureau data shows Productivity trends of greater productivity 20 and fewer hours worked along 0 with volatile manufacturing output starting in 2000. Productivity sees relatively consistent improvement and shows a 127.43 percent improvement from 1987 to 2012. Hours worked stagnate hours worked is output with a 60 percent increase from for the fi rst half of the data set with the same level in 1987-2000. After 2000, output shows two major reduc2000 as in 1987. The level of hours worked then declines tions in 2001 and 2008, yet by 2012 it has returned to the roughly 30 percent to the level in 2012. Contrasting level of 2000. ď &#x2019; SOURCE: U.S. Bureau of Labor Statistics: www.bls.gov

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

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127

ALASKA TRENDS

Indicator

By Paul Davidson

Units

Period

Latest Report Period

Previous Report Period (revised)

Year Over Year Change

Year Ago Period

GENERAL Personal Income—Alaska US $ 4th Q12 34,863 34,279 33,043 Personal Income—United States US $ 4th Q12 13,659,468 13,401,314 13,033,756 Consumer Prices—Anchorage 1982-1984 = 100 2nd H12 206.62 205.22 202.58 Consumer Prices—United States 1982-1984 = 100 2nd H12 230.34 228.85 226.28 Bankruptcies Alaska Total Number Filed February 52 59 77 Anchorage Total Number Filed February 35 44 57 Fairbanks Total Number Filed February 12 8 10 EMPLOYMENT Alaska Thousands February 336.41 333.41 334.54 Anchorage & Mat-Su Thousands February 189.30 188.86 186.46 Fairbanks Thousands February 43.18 42.12 43.11 Southeast Thousands February 34.18 34.23 34.56 Gulf Coast Thousands February 35.01 34.50 35.17 Sectorial Distribution—Alaska Total Nonfarm Thousands February 321 314 317.2 Goods Producing Thousands February 42.9 40.1 39.0 Services Providing Thousands February 277.7 274.1 278.2 Mining and Logging Thousands February 17.1 16.6 16.1 Mining Thousands February 16.8 16.4 15.8 Oil & Gas Thousands February 13.9 13.6 13.5 Construction Thousands February 14.9 14.3 11.5 Manufacturing Thousands February 10.9 9.2 11.4 Seafood Processing Thousands February 9.1 7.2 8.5 Trade/Transportation/Utilities Thousands February 60.6 61.0 59.5 Wholesale Trade Thousands February 5.9 5.9 6.0 Retail Trade Thousands February 34.2 34.8 33.4 Food & Beverage Stores Thousands February 6.1 6.1 6.2 General Merchandise Stores Thousands February 9.6 9.8 9.5 Trans/Warehouse/Utilities Thousands February 20.5 20.3 20.1 Air Transportation Thousands February 5.4 5.5 5.3 Information Thousands February 6.1 6.0 6.3 Telecommunications Thousands February 3.9 3.9 4.1 Financial Activities Thousands February 13.0 12.9 14.7 Professional & Business Services Thousands February 27.8 27.0 27.2 Educational & Health Services Thousands February 47.0 47.4 46.1 Health Care Thousands February 33.4 33.4 32.2 Leisure & Hospitality Thousands February 28.5 27.8 28.3 Accommodation Thousands February 6.5 6.5 5.8 Food Services & Drinking Places Thousands February 18.2 17.6 18.6 Other Services Thousands February 11.3 11.2 10.6 Government Thousands February 83.0 81.2 85.5 Federal Government Thousands February 14.9 14.8 16.0 State Government Thousands February 25.4 24.5 26.4 State Education Thousands February 7.4 6.6 8.6 Local Government Thousands February 42.7 41.9 43.1 Local Education Thousands February 24.3 23.6 25.6 Tribal Government Thousands February 3.4 3.4 3.7 Labor Force Alaska Thousands February 362.40 361.09 363.36 Anchorage & Mat-Su Thousands February 201.12 201.49 199.97 Fairbanks Thousands February 46.12 45.32 46.47 Southeast Thousands February 37.18 37.41 37.85 Gulf Coast Thousands February 38.30 38.08 38.89 Unemployment Rate Alaska Percent February 7.2 7.7 8.1 Anchorage & Mat-Su Percent February 5.9 6.3 6.8 Fairbanks Percent February 6.4 7.1 7.4 128

Alaska Business Monthly | June 2013

5.51% 4.80% 1.99% 1.79% -32.47% -38.60% 20.00%

0.56% 1.52% 0.16% -1.11% -0.47% 1.07% 10.00% -0.18% 6.21% 6.33% 2.96% 29.57% -4.39% 7.06% 1.85% -1.67% 2.40% -1.61% 1.05% 1.99% 1.89% -3.17% -4.88% -11.56% 2.21% 1.95% 3.73% 0.71% 12.07% -2.15% 6.60% -2.92% -6.88% -3.79% -13.95% -0.93% -5.08% -8.11% -0.26% 0.58% -0.76% -1.77% -1.51% -11.11% -13.24% -13.51% www.akbizmag.com

ALASKA TRENDS

Indicator

Southeast Gulf Coast United States

By Paul Davidson

Units

Period

Latest Report Period

Previous Report Period (revised)

Percent Percent Percent

February February February

8.1 8.6 8.1

8.5 9.4 8.5

Year Ago Period

9 9.9 8.7

PETROLEUM/MINING Crude Oil Production—Alaska Millions of Barrels February 15.15 17.01 16.88 Natural Gas Field Production—Alaska Billions of Cubic Ft. February 9.13 9.40 9.03 ANS West Cost Average Spot Price $ per Barrel February 112.76 109.88 119.65 Hughes Rig Count Alaska Active Rigs February 9 9 10 United States Active Rigs February 1762 1756 1965 Gold Prices $ Per Troy Oz. February 1,629.14 1,671.42 1,742.86 Silver Prices $ Per Troy Oz. February 30.32 32.96 34.14 Zinc Prices Per Pound February 1.064505 1.016435 1.03

Year Over Year Change

-10.00% -13.13% -6.90%

-10.30% 1.14% -5.76% -10.00% -10.33% -6.52% -11.19% 3.46%

REAL ESTATE Anchorage Building Permit Valuations Total Millions of $ February 53.72 31.46 59.57 Residential Millions of $ February 8.73 10.98 6.26 Commercial Millions of $ February 44.99 20.48 53.31 Deeds of Trust Recorded Anchorage--Recording District Total Deeds February 857* 1195* 1004* *GeoNorth Fairbanks--Recording District Total Deeds February 87 275 262

27.26% -66.79%

VISITOR INDUSTRY Total Air Passenger Traffic—Anchorage Total Air Passenger Traffic—Fairbanks

Thousands Thousands

February February

287.87 65.81

323.70 66.68

299.21 59.70

-3.79% 10.25%

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

44,941.50 45,717.10 178.4 1,654.7 7.5 1.50 (16.5)

44,752.50 45,895.60 178.3 1,028.9 72.6 103.80 859.8

41,256.90 41,873.10 201.6 1,111.3 21.4 25.00 813.1

8.93% 9.18% -11.51% 48.90% -64.95% -94.00% -102.03%

-9.82% 39.37% -15.60%

BANKING (excludes interstate branches) Total Bank Assets—Alaska Millions of $ 3rd Q12 2,191.15 2,100.47 2,105.62 Cash & Balances Due Millions of $ 3rd Q12 61.20 56.74 49.64 Securities Millions of $ 3rd Q12 169.47 163.91 156.23 Net Loans and Leases Millions of $ 3rd Q12 1,137.65 1,129.26 1,097.05 Other Real Estate Owned Millions of $ 3rd Q12 8.01 8.21 7.05 Total Liabilities Millions of $ 3rd Q12 1,917.02 1,832.07 1,847.06 Total Bank Deposits—Alaska Millions of $ 3rd Q12 1,863.43 1,787.23 1,800.05 Noninterest-bearing deposits Millions of $ 3rd Q12 599.95 527.08 543.72 Interest- bearing deposits Millions of $ 3rd Q12 1,263.48 1,260.16 1,256.33

4.06% 23.30% 8.48% 3.70% 13.69% 3.79% 3.52% 10.34% 0.57%

FOREIGN TRADE Value of the Dollar In Japanese Yen Yen February 93.06 88.94 78.39 In Canadian Dollars Canadian $ February 1.01 0.99 1.00 In British Pounds Pounds February 0.64 0.63 0.63 In European Monetary Unit Euro February 0.75 0.75 0.76 In Chinese Yuan Yuan February 6.29 6.28 6.30

18.71% 0.95% 1.77% -1.20% -0.11%

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June 2013 | Alaska Business Monthly

129

ADVERTISERS INDEX Alaska Air Cargo .........................................105 Alaska Air Transit .......................................122 Alaska Airlines Visa ......................................37 Alaska Aviation Heritage Museum..123 Alaska Native Heritage Center ...........30 Alaska Public Media.....................................29 Alaska Rubber ................................................68 Alaska Ship & Drydock Co. .....................25 Alaska Traffic Company ...........................84 Alaska USA Federal Credit Union ......38 Alyeska Resort .................................................31 American Fast Freight................................81 American Marine / PENCO ..................127 Anchorage Sand & Gravel .......................78 Apache Alaska Corp. ...................................58 Arctic Office Products (Machines)...60 ASRC Builders .................................................79 AT&T ......................................................................13 Bowhead Innovative Products & Solutions ........................... 41 Bowhead Transport Co. ...........................115 Calista Corp./Yukon Equipment .........83 Carlile Transportation Systems ..............3

130

Childrens Miracle Network...................30 Chris Arend Photography.....................130 Construction Machinery Industrial LLC ...............................................2 Cook Inlet Tug & Barge Inc. ....................98 Cruz Construction Inc. ..............................52 Delta Leasing LLC..........................................65 Delta Western ............................................. 120 Donlin Gold .......................................................85 Dowland-Bach Corp. .................................. 57 Doyon Limited ..................................................55 EDC Inc. ................................................................75 Engineered Fire & Safety ..........................61 ERA ALASKA ................................................... 91 ERA Helicopters............................................. 93 First National Bank Alaska.........................5 GCI ...............................................................61, 131 Global Services Inc. ....................................60 Golder Associates ..........................................53 Great Originals Inc. ......................................85 Horizon Lines ..................................................117 Island Air Express........................................123 Judy Patrick Photography .......................43

Alaska Business Monthly | June 2013

Kinross Ft. Knox .............................................24 Lynden Inc. .....................................................103 N C Machinery .................................................71 Nortech Inc. ......................................................46 Northern Air Cargo ...........................48, 49 Northland Services ......................................89 Northwest Ironworkers Employers Assoc. ....................................53 NTCL .....................................................................58 Nu Flow Alaska ................................................75 Olgoonik Development Corp................47 Oxford Assaying & Refining Inc. ......124 PacArctic Logistics .......................................63 Pacific Alaska Freightways ......................16 Pacific Pile & Marine ......................8, 9, 10 Pacific Rim Media/ Smart Phone Creative...................... 126 Paramount Supply ..................................... 126 Parker, Smith & Feek ....................................35 Pen Air ..............................................................107 People Mover ..............................................122 Personnel Plus...............................................121 Port of Kodiak/Kodiak Shipyard ......101

Rotary District 5010 ................................121 Ryan Air ........................................................... 109 SeaTac Marine Services .........................101 Seward Chamber & CVB ........................119 Span Alaska Consolidators ....................113 Spenard Builders Supply ..........................73 Stellar Designs Inc. .....................................125 Swift Worldwide Resources ...................51 Ted Stevens International Airport ..... 93 tekR Inc. ............................................................... 77 Totem Ocean Trailer Express (TOTE) ........................................99 Trailboss Solutions................................67, 78 Trailercraft Inc. Freightliner of Alaska..........................111 True North Federal Credit Union .... 126 UIC Construction Services .....................69 Valdez CVB........................................................27 Vitus Marine LLC ........................................ 126 Washington Crane & Hoist......................17 Waste Management ...................................59 Wells Fargo .....................................................132 West-Mark Service Center.................. 126

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June 2013 | Alaska Business Monthly

131

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