Alaska Business Monthly June 2016 by Alaska Business

PETROLEUM GEOLOGY | ALASKA & PACIFIC NORTHWEST | TRANSPORTATION | DAY TRIPS

June 2016

Digital Edition

HELICOPTER SUPPORT

for Oil & Gas Page 20

Tax Credits Bolster

MIDDLE EARTH Page 16

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June 2016 TAB LE

CONTENTS ABOUT THE COVER

DEPARTMENTS

Erickson Alaska Regional Manager Michael Williams (left) and Business Development Manager for Oil and Gas Dave Eagleston (right) departing from a Bell 412 after a flight over Cook Inlet. Following the company’s safety policy, both men are wearing dry suits. The company makes several trips a week to ferry workers and deliver supplies and groceries to Cook Inlet platforms and North Slope operations—all part of its oil and gas industry support services. Read the story by Tasha Anderson beginning on page 20.

From the Editor . . . . . . . . . . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . . . . . . . 93 Right Moves . . . . . . . . . . . . . . . . . . . . . . . . 96 Eat, Shop, Play, Stay . . . . . . . . . . . . . . . . . 98 Events Calendar . . . . . . . . . . . . . . . . . . . 101 Accolades . . . . . . . . . . . . . . . . . . . . . . . . . 102 Business Events . . . . . . . . . . . . . . . . . . . 104 Alaska Trends . . . . . . . . . . . . . . . . . . . . . 105 Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Cover Photo: © Judy Patrick Photography, Micah Ness photo. Courtesy of Erickson

ARTICLES

20 An Erickson helicopter on a platform in Cook Inlet. © Judy Patrick Photography, Micah Ness photo. Courtesy of Erickson

Oil & Gas

16 | Tax Credits Bolster Middle Earth Exploration in Alaska Doyon says Frontier Basins well has ‘1 in 2’ chance of gas, ‘1 in 4’ chance of oil By Heather A. Resz

Expanded in Digital Edition 20 | Helicopter Support Services for the Oil and Gas Industry By Tasha Anderson 4

Financial Services

28 | Business Plans Play Important but Varied Role in Commercial Lending Not always required—always necessary By Tracy Barbour

Visitors Industry

52 | Day Trips and Tours ‘Showing independent visitors Alaska’ By Tasha Anderson

special section Petroleum Geology 8 | Alaska North Slope Shale Resources Last Frontier has significant potential for unconventional oil extraction By Julie Stricker 12 | Chukchi Shelf Stratigraphy Core study reveals pre-Cenozoic bedrock By Julie Stricker

Alaska Business Monthly | June 2016 www.akbizmag.com

June 2016 TAB LE

CONTENTS

special section Alaska & Pacific Northwest Expanded in Digital Edition 34 | The Alaska Fishery and the Pacific Northwest A mutually beneficial endeavor By Susan Harrington

Expanded in Digital Edition 46 | The Northwest Seaport Alliance Shipping gateway to the Pacific Northwest By Tasha Anderson

42 | Enduring Business: Connecting Alaska and the Pacific Northwest By Susan Harrington

Phase 1 of the Quintillion project to connect the world via undersea and terrestrial fiber optic cable is underway in Alaska this summer.

special section Transportation 80 | New Trucking Facilities South Anchorage sees more expansion, investment By Rindi White

82 | Alaska Railroad Priorities By Julie Stricker

Icelandair provides seasonal service to Alaska.

Expanded in Digital Edition 56 | New Life for Seward’s Marine Industrial Center By Nancy Erickson Expanded in Digital Edition 62 | Vigor’s Alaska Shipyard Activities Grow Company develops workforce and infrastructure By Rindi White 70 | Seasonal Airlines Boost Visitors Plane-spotting results in more diverse tail fins By Julie Stricker 6

Expanded in Digital Edition 74 | Trucking Slows on the Dalton Highway Freight corridor is Alaska’s ‘road to the bank’ By Heather A. Resz

84 | STIP Priorities Federally funded transportation projects across Alaska By Tasha Anderson 86 | Alaska Business Monthly’s 2016 Transportation Directory

Correction In the May 2016 issue of Alaska Business Monthly we got the photo credit wrong for the interior shot of the Fort Wainwright 348 AAC Hangar. The photo is courtesy of Bettisworth North and was taken by Mike Volsky who was with the Army Corps of Engineers at the time and is now with the Department of Public Works at Fort Wainwright.

Alaska Business Monthly | June 2016 www.akbizmag.com

FROM THE EDITOR VOLUME 32, NUMBER 6 Published by Alaska Business Publishing Co. Anchorage, Alaska

Planting Seeds of Change:

EDITORIAL STAFF

Time to Grow a Garden

BUSINESS STAFF

udrey Hepburn said, “To plant a garden is to believe in tomorrow.” Alaskans all over the state might do well to grow a garden of fruits, vegetable, and herbs this summer; after all, with the climate changing more rapidly in Alaska than anywhere else on the planet we can all be productive gardeners. The food we grow could bolster our own health and personal budgets. According to the National Weather Service and NOAA (National Oceanic and Atmospheric Administration) every day this year Alaska has had above average temperatures—considerably. NOAA reported, “Alaska was record warm for January through March with a temperature [average] of 17.8 degrees Fahrenheit, 11.9 degrees Fahrenheit above average. Barrow, Bethel, Homer, Juneau, and King Salmon were record warm.” With temperatures heating up across the state and the onset of summer, it’s time to grow a garden. There are many methods of gardening that would work, including straw bale, square foot, raised bed, container, vertical, cold frame, windowsill, and greenhouse. A garden doesn’t have to be big to put food on the table. The University of Alaska Fairbanks Cooperative Extension Service has outreach statewide for seasoned and aspiring gardeners alike. They offer newsletters, articles, and topical publications along with workshops, classes, programs, audio recordings, and many gardening links on their website (uaf.edu/ces/). Businesses have already started gardening throughout Alaska. Many restaurants, lodges, resorts, and bed and breakfasts have on-site gardens that add beauty to the surroundings while providing fresh and delicious food for guests and patrons and boosting their bottom lines by saving on food purchases. Also, there are many towns in Alaska with community gardens where people can share garden plots. Take advantage of Alaska’s warming climate and plant some seeds of change this summer: “believe in tomorrow.” Gardening is a magnificent way to spend a bit of each day—and so is reading Alaska Business Monthly. The June issue has three special sections (Petroleum Geology, Alaska & Pacific Northwest, and Transportation), along with more fantastic articles and our monthly fixtures. The team has put together another really great magazine—enjoy!

Managing Editor Susan Harrington 257-2907 editor@akbizmag.com Associate Editor Tasha Anderson 257-2902 surveys@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com Senior Account Mgr. Bill Morris 257-2911 b_morris@akbizmag.com Account Mgr. Janis J. Plume 257-2917 janis@akbizmag.com Accountant Ana Lavagnino 257-2901 accounts@akbizmag.com Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com 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

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, ©2016, 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/Digital-Archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business Monthly is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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twitter.com/AKBusinessMonth Susan Harrington Managing Editor www.akbizmag.com

June 2016 | Alaska Business Monthly

special section

Petroleum Geology

Alaska North Slope Shale Resources Credit: Assessment of Potential Oil and Gas Resources in Source Rocks (Shale) of the Alaska North Slope 2012 — Overview of Geology and Results By David W. Houseknecht, USGS

Geologic cross section from the Brooks Range to the Beaufort shelf showing schematically the distribution of Shublik, Kingak, and Brookian source-rock systems and areas where source rocks are thermally immature, in the oil window, and in the gas window. Areas where each source rock is inferred to fall within the oil and gas windows were used to delineate the oil and gas assessment units.

Last Frontier has significant potential for unconventional oil extraction By Julie Stricker

n 2012, the United States Geological Service (USGS) released a report that looked at the potential for oil and gas in three kinds of shale deposits found on Alaska’s North Slope. The results were stunning. According to the study’s author, USGS Research Geologist David W. Houseknecht, the North Slope could contain up to 2 billion barrels of technically recoverable oil and 80 trillion cubic feet of natural gas. That ranks among the top source rock systems in the United States. The report came on the heels of successful shale oil and gas development in the Lower 48. In terms of shale oil, that’s second only to the Bakken Formation in Montana and North Dakota, as estimated by mean resource. The North Slope contains an estimated 940 million barrels of shale oil, compared with Bakken’s 3,645 million barrels of shale oil. In mean estimates of undiscovered gas, the North Slope is fourth on the list of the five top fields. Its 42,006 billion cubic feet of gas is about half the largest, the Marcellus shale formation on the East Coast with 81,374 billion cubic feet. The others are Haynesville in Louisiana and Texas and Eagle Ford in Texas. 8

The study area includes all of the onshore areas north of the Brooks Range and the adjacent state waters. Shale deposits were found over nearly all the region, but two areas show no potential for shale oil, according to the survey. They were located on the northern tip of the National Petroleum Reservation-Alaska near Barrow and east of Prudhoe Bay, an area that includes northern edge of Alaska National Wildlife Reserve, which is believed to hold conventional oil and gas reserves.

content, thermal maturity, the presence of brittle rock types, adequate depth, structural deformation, and pressure. Areas in which oil and gas are currently being produced from shale have a 100 percent assessment unit probability. By definition, any assessment unit not under production is typically estimated at less than 100 percent because production is not assured and little of the Alaska formations have been drilled directly.

Three Shale Varieties The three varieties of shale were identified as Brookian shale, created during the Cretaceous period between 145.5 million and 65.5 million years ago; Kingak shale, laid down during the Jurassic period 199.6 million and 145.4 million years ago; and even older Shublik Formation, formed during the Triassic period 251 million to 199 million years ago. These deposits generated the oil and gas that likely migrated to form the conventional oil and gas fields of Prudhoe Bay and Kuparuk, but no attempt has been made to produce oil or gas from the source rocks themselves. Limited oil production and gas tests from Shublik rocks are considered to be specific areas where the reservoirs allowed conventional accumulations of petroleum to occur. The study notes that units considered to have high probability for essential petroleum system elements from which oil and gas can be technically recovered from source rocks include the quality and thickness of the source rock, its organic matter

Overall, the study finds the Shublik deposits have the best set of the essential elements needed for the presence of oil and gas, with an assessment unit probability of 95 percent that it could be technically recovered. The Brookian deposits are less likely to have the source rocks and reservoir rocks occur together and exhibit a slightly lower probability, at 90 percent. The Kingak assessment unit geology lacks brittle reservoir deposits and has a technical production probability of only 40 percent, according to the study. Both the Shublik and Brookian source rocks include rocks such as limestone, chert, fine-grained sandstone, siltstone concretionary carbonate, and silicified tuff, which are brittle and often contain natural fractures, according to the USGS. The Kingak is mostly a clay shale that deforms plastically, which limits the probability of technically available resources. More gas and oil can flow up wells drilled through easily fractured shale. The source rocks occur at depths of less than three thousand feet in the northern

Shublik Best Oil Potential

Alaska Business Monthly | June 2016 www.akbizmag.com

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portions of the North Slope, diving to more than twenty thousand feet in the foothills of the Brooks Range. The relative thermal immaturity of the rocks in the northern part of the study area indicates a higher probability of oil, mostly within about fifty miles of the coast. The study indicates more dry gas may be located in the southern reaches of the region. Researchers also used maps of gammaray response in exploration logs to infer the presence of oil in Brookian shale. The gamma-ray response is a measure of low-level, natural radioactivity that is correlated with the organic content found in petroleum source rocks. The thickest Brookian formations are in the easternmost edges of the study area, near the Canning River. The Shublik has the best oil potential, particularly from Teshekpuk Lake eastward, as defined by its thermal maturity. The Shublik also has good gas potential throughout the North Slope. Estimates of technically recoverable natural gas liquids on the Slope from non-associated and associated gas are as high as 500 million barrels, most of which in contained in the Shublik. The Kingak has only a small oil and gas potential at this time, but much about the formation is unknown because so few wells have been drilled in the southwest por-

tion of the study area. However, the study infers the potential for oil and gas is better in north-central areas of the National Petroleum Reserve-Alaska, although the lack of brittle geology may limit the shale’s reservoir qualities.

Technically Recoverable

The inferred shale oil and gas resources on the North Slope are technically recoverable, which doesn’t mean it would be profitable to do so. Shale oil and gas are considered to be unconventional sources of energy. The oil and gas were generated in the source rocks, but never migrated to reservoirs. More expensive technology, hydraulic fracturing or fracking, is required to produce it. That process uses pressurized water, chemicals, and sand to open fissures in the source rock to allow the oil and gas to flow to the surface. It’s applicability in the North Slope’s extreme conditions is unknown. However, the study may help developers identify “sweet spots” that hold higher concentrations of oil, which have implications for a field’s footprint. For instance, in the assessments of Shublik shale oil, a minimum potential production area may be five million acres, up to a maximum of 7.5 million acres, with a mode of 7.3 million. The

minimum percent of the resource likely to be found in a sweet spot ranges from a minimum of 0.5 percent to a maximum of 40 percent, with a mode of 15 percent. That would indicate a mode development footprint of 1.1 million acres. If 160 acres are required per bore well, that comes out to 6,844 bore wells. Each one- to two-acre pad could hold three to eight bore wells, which pencils out to 855 to 4,560 acres required for the pads. Conventional oil fields on the Slope already recover great quantities of natural gas, but there’s currently no way to get it to market, so much of it is reinjected into the wells. It’s likely that once a market and transportation to that market are developed, conventional natural gas would be produced first before unconventional deposits. But several producers have their eyes on the potential for oil development. Independent producer Great Bear Petroleum leased 500,000 acres in 2010, announcing it would focus on shale oil. San Diegobased Royale Energy, Inc. and ConocoPhillips have both secured leases in areas that may be suited for unconventional energy. R Julie Stricker is a journalist living near Fairbanks.

Alaska Business Monthly | June 2016 www.akbizmag.com

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special section

Petroleum Geology

Chukchi Shelf Stratigraphy GSA GEOLOGIC TIME SCALE MESOZOIC

5E C5E 6 C6

SERRAVALLIAN

16.0

23.0

OLIGOCENE

7 C7 7A C7A 8 C8 C9

10 C10 11 12

C19

20 C20

45 21

RUPELIAN

37.8

41.2

LUTETIAN

180

47.8

C26

C27

28 C28

29 C29

30 C30

100

113

300

320

APTIAN EARLY

BARREMIAN HAUTERIVIAN

LATE

MIDDLE

126

KIMMERIDGIAN OXFORDIAN CALLOVIAN BATHONIAN BAJOCIAN AALENIAN

340

131 134 139 145 152

380

157 164 166 168 170 174

400

PLIENSBACHIAN

440 191

SINEMURIAN HETTANGIAN

199 201

220

460

THANETIAN SELANDIAN

59.2 61.6

230

240

DANIAN 66.0

250

209

480 LATE

500

ANISIAN EARLY

OLENEKIAN INDUAN

BASHKIRIAN

LATE

SERPUKHOVIAN

MIDDLE

VISEAN

237

520

241 247 250

252

TOURNAISIAN

LATE

PERIOD

EDIACARAN

1250

315 323

1500

331

347

1750

359

GIVETIAN EIFELIAN

MIDDLE

PRAGIAN

2000

LUDLOW WENLOCK LLANDOVERY

LATE MIDDLE EARLY

Epoch 3 Epoch 2

LUDFORDIAN GORSTIAN HOMERIAN SHEINWOODIAN TELYCHIAN AERONIAN RHUDDANIAN HIRNANTIAN

KATIAN SANDBIAN DARRIWILIAN DAPINGIAN

FLOIAN TREMADOCIAN AGE 10 JIANGSHANIAN PAIBIAN GUZHANGIAN DRUMIAN AGE 5 AGE 4

TERRENEUVIAN

540

AGE 3 AGE 2

408 411 419 423 426 427 430 433 439 441 444 445 453 458 467 470

850

1200

MESOPROTEROZOIC

ECTASIAN 1400

CALYMMIAN 1600

STATHERIAN 1800

OROSIRIAN PALEOPROTEROZOIC

2050

RHYACIAN 2250

2300

SIDERIAN 2500

2500

NEOARCHEAN 2750

2800

3000

3250

478 485 490 494 497 501 505 509 514

635

CRYOGENIAN

1000

EMSIAN

PRIDOLI

541

STENIAN

372 383 388 393

BDY. AGES (Ma)

TONIAN 1000

290 296 299 304 307

NEOPROTEROZOIC

750

FRASNIAN

FURONGIAN

228

LADINIAN

MOSCOVIAN

EARLY

260 265 269 272 279

FAMENNIAN

NORIAN

CARNIAN MIDDLE

LATE MIDDLE

SAKMARIAN ASSELIAN GZHELIAN KASIMOVIAN

LOCHKOVIAN

RHAETIAN

56.0

ERA

252 254

ARTINSKIAN

EARLY

420

183 EARLY

CHANGHSINGIAN WUCHIAPINGIAN CAPITANIAN WORDIAN ROADIAN KUNGURIAN

Cisuralian

360

TOARCIAN

200

210

PERMIAN

HIST

ANOM.

170

93.9

TITHONIAN

M29

280

ALBIAN

BERRIASIAN

160

190

YPRESIAN

C25

TURONIAN

83.6 86.3 89.8

Guadalupian

CENOMANIAN

M22

BARTONIAN

C23

SANTONIAN CONIACIAN

VALANGINIAN

M25

C24

LATE

M10

150

260

CAMPANIAN

M12 M14 M16 M18 M20

CHRON.

M0r M1 M3 M5

PRIABONIAN

PALEOCENE

The Geological Society of America

C21

22 C22

130

28.1

C17

C18

120

140

33.9

EOCENE

110

CHATTIAN

C13

15 C15 16 C16 17

C12

PALEOGENE

C11

34 C34

100

BURDIGALIAN

6C C6C

13.8

LANGHIAN

AQUITANIAN

6B C6B

11.6

20.4

6A C6A

EON

PROTEROZOIC

5C C5C 5D C5D

7.2

AGE (Ma)

3500

ARCHEAN

C5A

5B C5B

C33

Lopingian

72.1

PENNSYLVANIAN

MAASTRICHTIAN

32 C32

MISSISSIPPIAN

TORTONIAN

MIOCENE

C4 C4A

NEOGENE

5.3

AGE

PRECAMBRIAN PICKS (Ma)

66.0

30 C30 31 C31

CARBONIFEROUS

MESSINIAN

3A C3A 4A

ZANCLEAN

AGE PERIOD EPOCH (Ma)

DEVONIAN

0.01 1.8 2.6 3.6

AGE

PALEOZOIC PICKS (Ma)

ORDOVICIAN SILURIAN

PLIOCENE

CALABRIAN GELASIAN

PIACENZIAN

PERIOD EPOCH

CRETACEOUS

HOLOCENE

QUATERNARY PLEISTOCENE*

2A C2A

AGE

MAGNETIC POLARITY

JURASSIC

C1 C2

EPOCH

AGE (Ma)

TRIASSIC

1 2

PERIOD

PICKS (Ma)

RAPID POLARITY CHANGES

HIST.

ANOM.

CHRON.

MAGNETIC POLARITY

CAMBRIAN

CENOZOIC AGE (Ma)

v. 4.0

MESOARCHEAN 3200

PALEOARCHEAN 3600

3750

EOARCHEAN

521 529

FORTUNIAN

541

4000

HADEAN

*The Pleistocene is divided into four ages, but only two are shown here. What is shown as Calabrian is actually three ages—Calabrian from 1.8 to 0.78 Ma, Middle from 0.78 to 0.13 Ma, and Late from 0.13 to 0.01 Ma. Walker, J.D., Geissman, J.W., Bowring, S.A., and Babcock, L.E., compilers, 2012, Geologic Time Scale v. 4.0: Geological Society of America, doi: 10.1130/2012.CTS004R3C. ©2012 The Geological Society of America. The Cenozoic, Mesozoic, and Paleozoic are the Eras of the Phanerozoic Eon. Names of units and age boundaries follow the Gradstein et al. (2012) and Cohen et al. (2012) compilations. Age estimates and picks of boundaries are rounded to the nearest whole number (1 Ma) for the pre-Cenomanian, and rounded to one decimal place (100 ka) for the Cenomanian to Pleistocene interval. The numbered epochs and ages of the Cambrian are provisional. REFERENCES CITED Cohen, K.M., Finney, S., and Gibbard, P.L., 2012, International Chronostratigraphic Chart: International Commission on Stratigraphy, www.stratigraphy.org (last accessed May 2012). (Chart reproduced for the 34th International Geological Congress, Brisbane, Australia, 5–10 August 2012.) Gradstein, F.M, Ogg, J.G., Schmitz, M.D., et al., 2012, The Geologic Time Scale 2012: Boston, USA, Elsevier, DOI: 10.1016/B978-0-444-59425-9.00004-4.

Core study reveals pre-Cenozoic bedrock By Julie Stricker

ith the warming of the Arctic, more focus has been put on the potential for resource development off the northern coast of Alaska in the Chukchi Sea. In February 2016, USGS (US Geological Survey) released a report titled “Upper Cretaceous and Lower Jurassic Strata in Shallow Cores on the Chukchi Shelf, Arctic Alaska.” David W. Houseknecht, William H. Craddock, and Richard O. Lease conducted the study, which was backed in part by Statoil. They studied six cores taken during USGS exploration cruises between 1977 12

and 1985. The cores were extracted using either rotary or vibracore technologies. During later expeditions, USGS captured high-channel, high-resolution, shallow seismic-reflection data, which was correlated with the cores. Since then, several newer seismic studies of the area have been taken, adding more information to the physical layers recovered in the samples.

65 Million Years and Older

The sample area is in the Chukchi Sea off the northwest corner of the North Slope. The Chukchi Shelf is a major feature of

the area. Its waters are relatively shallow, about 160 feet deep. The cores were drilled to study the characteristics of the seafloor and the shallow subsurface layers of rock. Most of the cores were taken in a region called the Hannah Trough, a Jurassic rift basin believed to have high petroleum-charging potential. Three of the cores were sampled along the northern limit of the Cenozoic fold belt, another to the northwest. One core was taken on the western rim of the Hannah Trough, all in a formation called the Herald Arch foreland. A sixth was sampled to the west of the Wrangel-Herald Arch.

Alaska Business Monthly | June 2016 www.akbizmag.com

The locations from which the cores were taken were selected based on the geology revealed by single-channel, high-resolution seismic reflection data. Rotary cores were taken in 1983 and vibracores in 1985. The study analyzed them to determine the presence of fossils, potential for petroleum sources, thermal maturity, and dating. The study contained detailed descriptions of each core, compared with an image of the correlating shallow seismic data to determine the age of the layers. The cores sample pre-Cenozoic layers, 65 million years and older. The region is thought to contain large oil and gas prospects, but despite the importance of the strata in determining the geologic framework, little has been published regarding the pre-Cenozoic bedrock. Five of the cores contain layers about 86 million to 100 million years old, in the Late Cretaceous. According to seismic data, these were interrupted by subtle angular unconformities, the Paleogene midBrookian unconformity in one and the Pliocene-Pleistocene in four. An unconformity is a gap in the geologic record caused by erosion, variations in sea level, or crustal deformation. The Upper Cretaceous layers were likely deposited in freshwater coastal plain or shallow, muddy, near-shore marine environments. They are believed to be widespread, covering most of what is now Arctic Alaska. A sixth core contains Toarcian marine organisms from the Lower Jurassic, which opens a new window into the geology of the Herald Arch region.

Four General Rock Groups

The strata were buried and put under pressure to high levels of thermal maturity during the Early Cretaceous and uplifted during the Late Cretaceous. The uplift of the Herald thrust belt added sediment to the region during the Late Cretaceous. The study area is west of five exploration wells: Burger, Crackerjack, Diamond, Klondike, and Popcorn, which lie roughly north and east of the study area. The seafloor of the Chukchi Shelf shows similar rock layers as those found across the Alaska North Slope, but since it is offshore, no rock exposure is present. Only five widely spaced petroleum exploration wells have been drilled. Those wells, however, were positioned on higher features and did not penetrate some layers of rock inferred to be present based on seismic reflection data and from onshore wells. The stratigraphy shows four general groups of rocks: Brookian, Rift, Ellesmerian, and Franklinian, with several large www.akbizmag.com

June 2016 | Alaska Business Monthly

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unconformities. These subsets represent major tectonic horizons in the evolution of the region as it relates to the creation of petroleum. The Brookian layer is composed of several distinct shale layers. The Sagavanirktok Formation lies near the top in the upper Brookian layer, underlain by an unconformity at the start of the Cenozoic era, 65 million years ago. A layer of Upper Cretaceous shale is interrupted by the Cenomanian unconformity about 100 million years ago, underlain by the Nanushuk Formation and Torok Formation. The Brookian unconformity in the early Cretaceous overlies a pebble shale unit and gamma-ray zone. The Rift or Beaufortian is marked by the Jurassic unconformity, overlain by a layer of sandstone, the Kuparuk Formation and upper Kingak shale and lower Kingak shale. Starting about 200 million years ago, the Sag River formation, a layer of sandstone, forms the beginning of the Ellesmerian sequence. The Shublik shale layer and Sadlerochit Group, layers of sandstone and shale, are interrupted by the Permian unconformity, which divides the Ellesmerian into upper and lower sequences. Ellesmerian layers date from the late Devonian through the Triassic, a period from about 350 million to 200 million years ago. Limestone and dolomite form the lower strata. The basement rocks (Franklinian), as in most of northern Alaska, are composed of meta-sedimentary rocks dating to the Devonian period. They have little to no petroleum potential. Two layers of particular interest that were not seen in the cores are the Jurassicera lower Kingak Shale seen in outcroppings in the Brooks Range foothills and North Slope exploration drilling. Seismic data indicate Kingak Shale is present in high accommodation areas of the Chukchi Shelf such as Hanna Trough. Tephra found in the cores is likely from volcanic ashfall on land, likely from one event in the late Cretaceous era.

Herald Arch Foreland Cores

The cores taken in the Herald Arch Foreland indicate the presence of Upper Cretaceous strata across a broad portion of the Chukchi Shelf and indicate they are widely distributed across the western part of Arctic Alaska. It is likely, the study says, Upper Cretaceous strata were present across all of Arctic Alaska before it was eroded during the Late Cretaceious or Cenozoic eras. The Upper Cretaceous strata is also present beneath a significant unconformity in each of the core samples. One core is trun14

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Geologic Setting

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High

Accommodation

Low

upper

PPU Sagavanirktok Fm.

Nanushuk Fm.

lower

Upper Cretaceous CU

Torok Fm.

LCU

Kuparuk Fm.

lower Kingak Sh. Sag River Fm.

Permian 400

upper

Sadlerochit Group PU

Penn.

Lisburne Group

Miss.

300

Shublik Fm.

Triassic

200

End

tt ico

Acoustic basement

lower

Jurassic

upper Kingak Sh.

Beaufortian Rift

PSU-GRZ

Ellesmerian

100

Cretaceous

MBU

Brookian

Cenozoic

Gubik Fm.

Figure 2. Diagram showing generalized chronostratigraphy of Diagram showing generalized the Chukchi Shelf, Alaska, revised from Sherwood and others (2002) and Craddock andof Houseknecht chronostratigraphy the (2016). Column on right tectonostratigraphic sequences defined by Lerand Chukchishows Shelf, Alaska. Column on (1973) and Hubbard and others (1987). Strata highlighted by right shows tectonostratigraphic side brackets are main focus of this report. BU, Brookian unconformity; CU, Cenomanian unconformity; JU, Jurassic sequences defined by Lerand unconformity; LCU, Lower Cretaceous unconformity; MBU, (1973) and Hubbard and mid-Brookian unconformity; PPU,others Pliocene-Pleistocene PSU-GRZ, pebble shale unit and gamma-ray (1987). unconformity; Strata highlighted by zone; PU, Permian unconformity; TAB, top acoustic basement. side brackets areaftermain focus Unconformities Sherwood and others (2002), except for CU and PPU, which are after Craddock and Houseknecht of this report. BU, Brookian (2016). Geologic time scale from Walker and others (2013). Ma, unconformity; Cenomanian mega-annum CU, or millions of years ago; Miss., Mississippian; Penn., Pennsylvanian; Sh., shale; Fm., formation; Gp., group. unconformity; JU, Jurassic unconformity; LCU, Lower Cretaceous unconformity; MBU, mid-Brookian unconformity; PPU, Pliocene-Pleistocene unconformity; PSU-GRZ, pebble shale unit and gamma-ray zone; PU, Permian unconformity; TAB, top acoustic basement.

US Department of the Interior, US Geological Survey, “Upper Cretaceous and Lower Jurassic Strata in Shallow Cores on the Chukchi Shelf, Arctic Alaska” (Figure 2) EXPLANATION unconformity shale sandstone

TAB

conglomerate Franklinian

Julie Stricker is a journalist living near Fairbanks.

Ma 0

Devonian

cated by the mid-Brookian unconformity, a subtle angular unconformity. Upper Cretaceous strata beneath the unconformity dip one to two degrees to the north, while the Paleogene strata above are nearly horizontal. It documents regional deformation during the Late Cretaceous or Early Paleogene about 65 million years ago. In other cores Upper Cretaceous Strata are truncated by the Pliocene-Pleistocene unconformity. Upper Cretaceous strata are not found in the western part of the Arctic Slope, possibly due to Cretaceous to early Cenozoic uplift or later glacial erosion. The Herald Arch core that showed the presence of Lower Jurassic marine strata offered more information of the region’s geology. At the location the core was taken, Jurassic and older strata are missing in footwall, either because it wasn’t deposited there or because of erosion. The strata in the core are from the hanging wall of the Herald thrust fault. The strata must have been deposited to the south and relocated by the Herald thrust fault. Dark gray shale from the Lower Jurassic strata suggest it was likely source rock material. It likely reached thermal maturity in the Late Jurassic or Early Cretaceous. It is unknown if it was oil or gas-prone. Although the study did provide new information about the presence, spatial distribution, age, and depositional environments of the Upper Cretaceous strata on the Chukchi Shelf, they do not reveal the overall thickness of the strata or the relationship of the layers with the Nanushuk Formation. R

limestone and dolostone meta-sedimentary rocks

June 2016 | Alaska Business Monthly

OIL & GAS

Tax Credits Bolster Middle Earth Exploration in Alaska Doyon says Frontier Basins well has ‘1 in 2’ chance of gas, ‘1 in 4’ chance of oil By Heather A. Resz

Alaska Division of Oil and Gas “Frontier Basins Overview”

ll of the oil and gas liquids produced in Alaska come from Cook Inlet and North Slope fields. But that may be about to change. Separate drilling programs underway this summer by Doyon Limited and Ahtna, Inc. could produce the first oil and gas from Alaska’s vast and largely unexplored Frontier Basins. After working to “de-risk” the Nenana Basin for ten years, Doyon Limited President and CEO Aaron Schutt says the ten thousand vertical feet well, Toghotthele No. 1, planned on state land near Nenana this summer has a one in two chance of producing gas and a one in four chance for oil. Doyon holds about four hundred thousand acres of state oil and gas leases in the basin and forty thousand acres of subsurface rights received under the Alaska Native Claims Settlement Act. Data shows a tremendous amount of gas generated in that region, he said. As with all oil and gas wells, the million-dollar question is where to drill to bring the trapped resources to the surface, Schutt says. The trap contains a mean estimate of 70 million barrels of recoverable oil and 200 billion cubic feet of natural gas. “There could be plenty of gas for Fairbanks and the rest of the Interior in that one well location,” Schutt says. If Toghotthele No. 1 in the Nenana Basin is successful, Doyon says it could open the door to exploration in the larger Yukon Flats Basin. Ahtna is exploring forty-six thousand acres under its Tolsona Exploration License from the state in the Copper River Basin. This

“There could be plenty of gas for Fairbanks and the rest of the Interior in that one well location.”

—Aaron Schutt President and CEO, Doyon Limited

summer the company will drill a deep gas exploration well of four thousand to five thousand feet deep in the thick Nelchina sandstone near Glennallen, close to a pair of earlier wells that found gas and water together under high pressures, Ahtna says. Companies say their Frontier Basin oil and gas exploration projects are part of a larger, multi-faceted effort to reduce energy prices strangling Interior Alaska communities.

‘Greatest care should be exercised’

Over the past decade, Doyon was reimbursed between $62 million and $65 million through several state exploration credits—including the Frontier Basins Tax Credits Program approved by the Legislature in 2011, according to the company’s written testimony delivered to the House Resources Committee March 2. That investment could net hundreds of millions in returns to Doyon and the state. At $60 per barrel oil, the state would collect $525 million in oil royalties alone from the oil Doyon hopes to produce from the Toghotthele No. 1 well, writes Sarah Obed, vice president of external affairs for Doyon. Summer exploration plans were based on the “reasonable expectation” that the project would be eligible for the state’s tax credit program, now undergoing a rewrite in the Legislature, she writes. Doyon is one of several companies using state tax incentives to reduce the financial risk of investing hundreds of millions in the state’s remote sedimentary basins where there is no current production and little existing data. Although some oil exploration was completed in the 1960s, ’70s, and ’80s in Alaska’s Frontier Basins, most are largely unexplored. Sandwiched between the North Slope and Cook Inlet, in a vast region also known as “Middle Earth,” federal and state studies estimate Alaska’s Frontier Basins hold 234 million barrels of mean recoverable oil and 5,641 million cubic feet of gas. However, Doyon Senior Vice President for Lands and Natural Resources James Mery says new information from Doyon’s study of the area indicates those numbers could be much, much higher. Since approving Frontier Basin tax credits, the state has licensed

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help guide future work in the northern part of the basin, Schutt says. And when the river opens up, Doyon will begin ferrying its Arctic Fox drill rig and other equipment to the site, he says. It will take forty-five truckloads to move the whole rig across the Nenana River. Historically, Doyon has worked in the Nenana and Yukon Flats basins. Thus far, Doyon has conducted 2D seismic, gravity, magnetics, and lakebed geochemical surveys in the Yukon Flats Basin. But exploration work there is on hold while Doyon explores its state leases in the Nenana Basin, Schutt says. Previous wells found very thick, highly permeable rock with excellent reservoir potential, he says. “We just need to find a place where everything comes together and that oil and gas is pooled,” he says. Mery says drill holes on the shallow sides of the basin show immature coal and shale sources. “We see in our seismic these same rocks much deeper where there is more heat that can release both oil and gas, which can migrate to traps,” he says. “Much of the gas we have seen in earlier wells in thermogenic— comes from deeper sources where heat has pushed the gas, including propane, from the source rock.

Other Projects Licensed in the Frontier Basins  Usibelli Coal Mine, Inc. drilled one well in 2014 to a total depth of 1,279 feet in the Healy Basin gas-only. Results remain confidential under the terms of its exploration license, but the well is listed by the state as “plugged and abandoned.”  Cook Inlet Energy formerly held multiple leases in the Susitna Basin and southwest Cook Inlet exploration licenses, and it converted much of one exploration license to lease, but no wells were drilled. All of its non580,802 acres, leased 605,915 acres, issued seven exploration licenses, and converted exploration licenses to leases at Susitna II, Copper River, and Nenana, Alaska Division of Oil and Gas Director Corri Feige said during a presentation November 20, 2015, to the Senate Oil and Gas Tax Credit Working Group. “At a time when the public sector contraction of spending has the potential to plunge the state’s private sector into a recession, the greatest care should be exer-

producing assets were relinquished as part of bankruptcy reorganization filing accepted in February by the US Bankruptcy Court in Anchorage.  Cassandra Energy submitted an application in 2015 for an exploration license to work in the Gulf of Alaska, which is under review.  Samuel Cade and Daniel Donkel submitted an exploration license application to work in the HoustonWillow Basin, which is under review. R cised for any changes to the tax credit system,” the group wrote in its report released December 1, 2015.

Stay Tuned for More Doyon Oil and Gas News So far this season, Doyon has wrapped up its 2D seismic program in the northern part of the basin and built a couple of miles of road, a new drill pad, and work camp at the drill site near Nenana. That 2D data will be processed over the summer and will

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“The presence of propane is often an indicator of a petroleum system that includes oil.” New 3D data means this time Doyon has a better idea of the structures underground to pinpoint its well site, Schutt says. Doyon has worked with several partners on the project over the years but now holds a 100 percent equity stake in the field. “The state is our current partner through tax credits,” he says. “They are a big part of the exploration effort.” There are at least a dozen major fields in Alaska, Schutt says. But the economics are challenging and the work is very high risk. Work planned this season will employ more than 150 direct employees and more than 30 mostly-Alaskan organizations in the Nenana Basin. The regional corporation for Interior Alaska, Doyon Limited has more than nineteen thousand shareholders and 12.5 million acres of land. It is the largest private landowner in the state. “Stay tuned,” Schutt says. “We are likely to have other news as we process the 2D data this summer.”

Ahtna Plans Gas Exploration Well Near Glennallen Ahtna’s Frontier Basins work includes reprocessing 2D seismic data, acquiring new Tolsona 2D seismic data in the Copper River Basin, and permitting a new exploration well for 2016 near Glennallen. The company says it selected the drill site on state land after evaluating more than forty line miles of new 2D seismic data and processing more than eighty miles of existing data in the basin. The gravel pad and access road were constructed in early 2016, equipment was mobilized in March, and drilling was completed in April with well testing wrapped up by early May and demobilization and site cleanup expected to be complete by the end of June, Ahtna says. The Tolsona well is two miles east of a pair of gas exploration wells Ahtna sank with the Texas-based independent oil and gas company Rutter and Wilbanks between 2005 and 2007. This time Ahtna says it has prepared for the exceptionally high formation pressures and problems with water encroachment encountered at the two previous wells. Ahtna says it also is exploring the feasibility of a small-scale liquid natural gas, or LNG, facilities to ship fuel to other communities, similar to how LNG is trucked to Fairbanks now. A second proposal under consideration would construct a small gas-to-liquids plant that would convert natural gas to liquid fuels like diesel.

Alaska Business Monthly | June 2016 www.akbizmag.com

Alaska Division of Oil and Gas “Frontier Basins Overview”

The regional corporation for the Copper River area, Ahtna, Inc.’s 1,900 shareholders own about 1.77 million acres of land, which includes four mountain ranges, 540 miles of highway, and three thousand miles of secondary roads.

NANA Looking for Interested Partners

NANA is in the early stages of an exploration project in the twentyeight-thousand-square-mile Kotzebue Basin where Standard Oil Company of California—which later became Chevron—drilled two test wells in the 1970s about 80 miles apart. To begin, NANA reprocessed 400 miles of the 1,500 miles of vintage 2D seismic data shot in the Selawik Basin and completed a geological review of existing information and data from two dry exploration wells drilled in 1974 and 1975: Nimiuk No. 1 drilled to 6,311 feet and Cape Espenberg No. 1 drilled to 8,373 feet. Several companies have reviewed, or are currently evaluating, the data under signed confidentiality agreements with NANA, according to Lance Miller, vice president of NANA Natural Resources. NANA is in the early stages of data gathering, but thus far the geology suggests the basin may be more gas prone than oil prone, he says. Sustainable local energy would reduce energy costs—the number one barrier to development—and create opportunities to manufacture value added products, he says. “High energy costs are crippling to livelihood and business in the region,” Miller says. In some villages in the NANA region, fuel is nearly $10 a gallon, he says. A nearby fuel source also could provide cheaper fuel to Red Dog Mine, which is located on NANA land and currently ships in 18 million gallons of fuel a year.

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“If natural gas could help lower energy costs, that would be advantageous for the entire region,” Miller says. State tax credits are an incentive for companies to explore in an area that is extremely expensive, he says. NANA also is looking for other partners to help with funding and to bring oil and gas expertise to the team, Miller says. NANA represents more than 13,900 Inupiat shareholders in northwest Arctic communities and holds thirty-eight thousand square miles of land. R Heather Resz lives in Wasilla. She’s told Alaska’s stories for nearly twenty years.

June 2016 | Alaska Business Monthly

OIL & GAS

Helicopter Support Services for the Oil and Gas Industry

Alaska Business Monthly | June 2016 www.akbizmag.com

By Tasha Anderson

laska often presents challenges to industry; the solutions to those challenges can be as varied as the challenges themselves. In particular, transportation around the state of Alaska, especially to rural areas where much of Alaska’s resource extraction takes place, is generally a logistic puzzle; some solutions require the railroad, marine, and air transportation to move a single load. A significant piece of many of those puzzles is helicopter support. Helicopters are unique in that they don’t require any infrastructure—manmade or naturally occurring. They can take off or land just about anywhere. Even marine transportation requires naturally occurring bodies of water with certain depths or manufactured canals or ports. But a helicopter can pick itself up and put itself down just about anywhere; while they aren’t necessary for every oil and gas operation, there are certain areas in which they are the exact piece the puzzle needs.

Erickson

One of the companies providing these vital services to the Alaska oil and gas industry is Erickson, an Oregon-based company that has global operations. Worldwide they provide services for firefighting, timber harvesting, oil and gas, manufacturing, and utility construction, as well as services to government. According to the company, their oil and gas services started in Peru in 1998. In 2013, Erickson acquired Air Amazonia in Brazil, and expanded its South America operations. Erickson has been operating in Alaska since 2013; however, the company purchased all of Evergreen Helicopters Alaska assets at the time, took on some of Evergreens contracts (including flying residents to and from Little Diomede), and hired much of Evergreen’s workforce, which means the company retains and utilizes fifty-five years of legacy knowledge of working in the last Frontier. Erickson provides services state-wide. Their main hub is at Merrill Field in Anchorage, according to Business Development Manager-Alaska Chris Maynard, but they have remote centers across Alaska, including in Nome, Prudhoe Bay, and Kenai. “We don’t solely focus on oil and gas,” Maynard says, “but it happens to be one of our larger markets” in Alaska.

Erickson’s Sikorsky S-64 Aircrane on a North Slope project for ConocoPhillips. Photo by Ray Bahma | Courtesy of Erickson

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The Famous Sikorsky S-64 Aircrane Maynard says the company is known for the Erickson Aircrane, the Sikorsky S-64, which can lift “up to twenty-five thousand pounds.” Erickson bought the type certificate and manufacturing rights for the Sikorsky S-64 in 1992, “so we are the only manuJune 2016 | Alaska Business Monthly

An Erickson Bell 412 helicopter heading to a platform in Cook Inlet. 22

facturer of that aircraft, we can build it from the ground up, and we service that aircraft,” he says. Erickson has twenty of the heavy-lift cranes worldwide; Maynard says, “We have them strategically located around the globe, even if they’re not working, to cut down on transfer times.” He says that, at press time, the closest one to Alaska is in Canada. One of the huge perks of this system for the client is cost savings: “They don’t have to pay as much for mobilization,” Maynard says. One of the projects in Alaska the Aircrane has been used for in the oil and gas industry was in service to ConocoPhillips, which was completing some soil remediation on the North Slope. Maynard says Erickson has also hauled gravel and/or clean fill for oil and gas projects. Another way the sky crane could be utilized for the industry would be in case of

Alaska Business Monthly | June 2016 www.akbizmag.com

An Erickson Bell 412 helicopter on a platform in Cook Inlet. ÂŠ 2015 Judy Patrick Photography, Micah Ness photo. Courtesy of Erickson

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June 2016 | Alaska Business Monthly

another Dalton Highway incident. Maynard says that after last year’s flooding on the Dalton Highway, Erickson reached out to the state of Alaska with an unsolicited proposal for using the sky crane if the highway were to flood again—“what it would cost to get an Aircrane here and then how we would use it when the roads shut down,” he says. “Fixed wing is always more efficient than a helicopter if you can fly airport to airport; but if you had to haul gravel or get a dozer out of the way or move a container from one side of the washout to the other, that’s where big, heavy-lift helicopters come into play.” © 2015 Judy Patrick Photography, Micah Ness photo. Courtesy of Erickson

An Erickson Bell 412 helicopter over the Kenai/Nikiski area. 24

Crew Changes and Supply Runs

Maynard says that in Alaska, most of the oil and gas work is done in their light or mediumlift aircraft. “That’s where we really shine.”

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He says that the medium lift helicopters are generally used for oil and gas services. For example, “out of Prudhoe Bay we fly offshore to North Star Island when they don’t have the ice road and they have to use helicopters to get to and from the island,” Maynard says. In addition to Hilcorp, he says Erickson has performed work for “ConocoPhillips, BP, and ExxonMobil, all the major players,” and that the majority of their work on the North Slope is for the oil and gas industry. The company also does oil and gas support in Cook Inlet. “We fly three or four days a week on a regular basis,” Maynard says. “This is how the crew changes out from the Tyonek platform. We haul groceries, too,” he says, and other supplies as necessary. Generally, Erickson keeps eight mediumlift aircraft, (Bell 212s and 412s), operating www.akbizmag.com

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in Alaska in addition to its five light-weight aircraft, comprised of four helicopters (Bell 206s and Astars) and one fixed-wing. He says it’s the medium and light helicopters that are generally used for oil and gas services; for example, crew change outs, which happen year round. In the winter on the North Slope, the lack of light could be problematic, an issue Erickson addresses by training their pilots to fly with night vision goggles. “We do night vision goggle operations on the North Slope, which is helpful to our clients because that increases the amount of time that we can fly.” He says that all of the aircraft have floats if they’re working in an area that would require them, and Erickson also makes sure that crew and passengers wear dry suits when appropriate.

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Maynard says that Erickson is excited about expanding its Alaska services, both in oil and gas and into other industries. One option the company is considering is to provide medivac services to the North Slope. “Right now the medivac needs to come out of Anchorage to fly up to Deadhorse, so there’s a two or three hour wait time. We have a base of operations up there, we have a hangar, so we’re toying with the idea of placing one of our fixed wings there and cutting down that response time.” Erickson also provides emergency services: “We have a crew on standby, here in Alaska, 365 days a year, 24/7,” Maynard says. “We have the [Bell] 412s down in Kenai, we have the Bell 212 and Astars in Anchorage, we have a [Bell] 412 and 212 in Nome … so we have assets spread throughout the state to respond to any emergency. And even the Aircrane, that’s not here [in Alaska], if we got the call right now or in the middle of the night, we could have one here in forty-eight hours or less.” Maynard says that there are some yearround contracts for oil and gas support in Alaska—for example the Alyeska Pipeline Services Corporation has a contract for five helicopters to fly aerial surveillance 365 days a year; however, much of the work in Alaska is one-off opportunities. For Erickson, any opportunity is a good one, and Maynard says that, with the prediction of continued low oil prices, “it’s a prime opportunity to consolidate here in Alaska. There’s going to be people right-sizing in the market, maybe even exiting the market. We’re here to keep the light switch on; we’re here to weather the storm with our partners.” R

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Alaska Business Monthly | June 2016 www.akbizmag.com

FINANCIAL SERVICES

Business Plans Play Important but Varied Role in Commercial Lending Not always required—always necessary By Tracy Barbour

ffective planning is an integral part of operating a successful business. And when it comes to the commercial loan process, business plans play a vital—yet varied role—for borrowers. A business plan is essentially a communication tool, according to Wells Fargo Northern Alaska Business Banking Manager Jennifer Imus. It documents where a business is, where it’s going, and how it intends to get there. And this information can be extremely helpful to the commercial lending process. At Wells Fargo, the commercial loan application process involves the borrower sitting down and having an in-depth conversation with a banker. They discuss the business, how it plans to

“You don’t find a successful business person who does not have a plan—whether it’s documented or not.” —Jennifer Imus Northern Alaska Business Banking Manager Wells Fargo use the loan proceeds, and other pertinent details. An effective business plan can facilitate that conversation and provide a document to reference in the future to see if the plan met everyone’s expectations. Though a formal business plan is not a requirement from a lender documentation standpoint, there is real value in having one, according to Imus. “You don’t find a successful business person who does not have a plan—whether it’s documented or not,” she says. When creating a business plan, business owners have to be good at telling their unique story, says Lynn Klassert, who recently-retired as director and business advisor of Anchorage’s Small Business Development Center (SBDC), which is hosted by the University of Alaska Anchorage. There is no set format, but a business plan can include a variety of components: an executive summary, a company overview, a description of products/services, a marketing plan, financial statements, and an analysis of the company’s strengths, weaknesses, opportunities, and threats. However, borrowers can use various types of business plans to tell their story. Smaller ventures may only need a mini plan with up to ten pages. It provides an overview and answers to the “who, what, when, where, and how” questions. Business owners seeking investors or partners could use a presentation plan featuring six to ten PowerPoint slides with bullet points and graphs. Or they might opt for a longer working plan that 28

provides an extensive road map to show how the business operates. As another option, a what-if or worse-case-scenario can help business owners plan for contingencies, whether they are starting, purchasing, or expanding a business. This can help them think through possibilities like what if something goes wrong with the economy or what if regulations change and make the cost of business higher than expected. “We want them to contemplate all the little details in terms of putting things together,” Klassert says.

Client and Loan Terms Drive Lenders’ Need for Business Plans A business plan can be used to guide a company from year to year, and it should evolve as time passes. Yet it’s not uncommon for borrowers to not have an existing or updated business plan, says a Northrim Bank Commercial Loan Officer and Vice President Brad Kiefer. However, the role that business plans play often depends on the business requesting financing and the terms of the loan. Generally, a business plan is more important if a company is a startup versus an established entity. “If it is a mature company, I will ask for their historical financials,” Kiefer says. “If it is a startup, it is a dead stop until they have a business plan.” Kiefer adds, “If it’s a startup, it will be more important that they have something in place to show that they know their marketing, their margins, and how they will survive in the industry.” At KeyBank, the situation also dictates whether a business plan is required with a loan request. A plan is always a stipulation for startups applying for financing from the SBA (Small Business Administration), which requires a business plan. Plus, a business plan is an important thought exercise that can help borrowers seriously

“If it is a startup, it is a dead stop until they have a business plan. If it’s a startup, it will be more important that they have something in place to show that they know their marketing, their margins, and how they will survive in the industry.”

—Brad Kiefer Northrim Bank Commercial Loan Officer and Vice President

Alaska Business Monthly | June 2016 www.akbizmag.com

“If they provide us a wellexecuted business plan, it demonstrates to the bank that they are serious about the [loan] process.” —Bryan Powell, Commercial Banking Relationship Manager and Vice President, KeyBank Alaska consider their position and plan for future success, says Bryan Powell, a commercial banking relationship manager and vice president with KeyBank in Alaska. “If they provide us a well-executed business plan, it demonstrates to the bank that they are serious about the [loan] process,” Powell says. “If it’s not available, we will obtain much of that information from a discovery interview and their financials.” From a practical standpoint, a formal business plan expedites loan processing. A business plan can also make it easier for lenders to recommend a solution to meet the borrowers’ needs. A prime example is when a contractor approached KeyBank for a line of credit because it anticipated having a tighter cash flow in the future. Powell—who has worked in commercial banking for thirty years—reviewed the client’s business plan and noticed that the company was leasing a building where the rent escalated every year. “We suggested that they look into buying, and we ended up financing that building for them, which saved them hundreds of thousands of dollars a year,” Powell says.

He adds: “We have a lot of capabilities that we are able to bring to bear. When clients have a business plan, it helps us see what opportunities are there and how we can provide solutions.” Business plans are an important tool that can provide quick information about a startup or an established business that is new to the bank. However, KeyBank aims to build long-term, trustedadvisor connections with clients, so business plans are not a necessity. “When a request comes in from one of our long-term clients, we want to know that client so well that it will not need to provide a business plan,” Powell says. That’s essentially the situation with Chad Steadman, a commercial regional unit manager and vice president with FNBA (First National Bank Alaska). “The majority of mine, I don’t have a fullon business plan,” Steadman says. “I am dealing with existing customers looking at expansion and building purchases.” In fact, most of the business plans that Steadman deals with are not in a written format. Customers usually start with a verbal presentation and then provide financial details. “You can have 75 percent of your presentation be pitched to me,” Steadman says. “But when it comes down to it, the numbers are what we have to look at.” A verbal presentation is perfectly fine for an existing business with good substance behind it or a business owner with a history with the bank. “If you’re dealing with me and I’m familiar with you, I don’t need a back story,” Steadman says. Wells Fargo doesn’t receive many formal plans from its existing customers either. “More than 60 percent of our business clients started sitting across the desk of a personal banker,” Imus says. “We have a deep knowledge of where they have been and may just need to update where they’re going. If a new business is coming in the door, it’s certainly helpful to have a plan to reference.”

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June 2016 | Alaska Business Monthly

“If you’re asking for $500,000, there had better be good information to back up the request. Are they believable? Are they wellthought out. Do they make sense? First, you have to have a good idea, then you have to have something you can execute.”

—Chad Steadman Commercial Regional Unit Manager, Vice President, FNBA

For AIDEA (Alaska Industrial Development Export Authority), the necessity of a business plan often boils down to the type of financing requested, says External Affairs Officer Karsten Rodvik. AIDEA, whose goal is to advance economic growth diversification and job creation, offers direct loan and loan participation programs in partnership with the state’s commercial lending institutions. “Business plans are always recommended, but not necessarily a requirement for getting financing, especially if the financing request is straightforward.” Straightforward financing could include a situation involving a borrower with threeplus years in business, a proven record

of cash flow that can be used to repay the amount of financing requested, and an existing commercial real estate building as collateral for securing the financing. On the other hand, an extremely complex financing structure might be a new business concept with projections for the cash flow and anything other than real estate as collateral for the loan. For complex projects and those that require a greater loan amount, AIDEA typically requires a business plan that provides more details relating to the business and its loan repayment plan. So what happens when a borrower does not have a plan? AIDEA can respond in one of two ways. “If the financing is a loan participation, the borrower typically works

with one of Alaska’s financial institutions for support and direction,” Rodvik explains. “If the financing is for a complex project, we often will work with the borrower to get the assistance they need to complete an application package.”

Key Elements of a Business Plan

No matter what type of loan is being requested, AIDEA requires information that clearly lays out the plan for the business. Some of the key information AIDEA considers includes whether there is an experienced operator involved in the project or business, meaningful capital contribution by the borrower, significant percentage of design completed, if permits are completed or nearly completed, and signed purchase and/or sales agreements. At FNBA, size and risk will generally determine the complexity of the business plan needed from borrowers, Steadman says. “If you’re asking for $500,000, there had better be good information to back up the request,” he says. When reviewing business plans, Steadman looks for a good marketing approach that indicates how the business will meet the needs of the community. Then he evaluates the numbers. He says: “Are they believable? Are they well-thought out. Do they make sense?”

Alaska Business Monthly | June 2016 www.akbizmag.com

Steadman adds, “First, you have to have a good idea, then you have to have something you can execute.” In addition, the borrower’s business plan must support the loan request with the standard 5 Cs of credit: character: collateral, cash flow, capacity, and condition. “If they still don’t answer those 5 Cs, they’ve missed the point of the business plan,” he says. Powell of KeyBank feels that one of the most important elements of a business plan is the strengths, weaknesses, opportunities, and threats analysis. Financial projections are also critical because they indicate where the company will be one, two, or five years down the line. However, Powell emphasizes that the more long-term a projection is the more of a guess it becomes. “I think it’s good to look five years out, but that’s more like where you would like to be,” Powell says. “If it’s anything more than a year or two, it’s hard for us to have confidence in it.” When Kiefer examines business plans, he’s looks to see if the business owner knows their target market. He also wants to see if they know their industry and how it relates to Alaska versus the entire country. It’s also important that borrowers’ financial information show that they understand their business cycle and cash flow needs. Business owners must be able

to state how they are coming up with their revenue and net income. Kiefer says: “How are they coming up with their capital injection? Where the money is coming from: partners, stock shares, or gifts?” From Imus’ perspective, it’s important for borrowers to be able to articulate the assumptions that go into their financial forecasting and market assumptions. Even though a business plan is the owners best estimate, they need to tell their story with as much authenticity as possible. “What we don’t want to see is an attempt to draw a scenario of what the banker wants to see,” she says. “Even if it’s bad news, if you know the reality, it’s manageable.” The intricacies of a business plan should be determined by the complexity of the business, Imus says. Borrowers only need to include just enough details to be able to communicate what the expectations or goals are. “Sometimes there are elements of a business plan that are not applicable to the business,” she says.

Planning Resources

Although lenders have different approaches for using business plans, these planning documents can be important to the commercial lending process. That’s why many financial institutions and other organizations offer a wealth of advice, planning tools, and other

free resources to help companies create a formal business plan to support their goals. Take Wells Fargo, for example. Wells Fargo—which serves approximately three million small business owners nationwide—launched the Business Plan Center last year. The center, part of the Wells Fargo Works for Small Business platform, features a Business Plan Tool that gives users a step-by-step guide to developing a written business plan. It also includes a Competitive Intelligence Tool that provides business owners with key insight on competitors and the market for their businesses. Individuals can use the Business Plan Tool to completely develop and update a written plan. The tool includes a high-level summary of the business; an overview of the business history, structure, and management; current and planned products and services; a detailed marketing plan; and market and competitive analyses. It allows business owners to enter financial data, such as starting balances, fixed assets and liabilities, sales forecasts, and expenses. They can use the tool to generate a detailed cash flow statement, profit-and-loss statement, and balance sheet. Since its launch, the Business Plan Center has drawn nearly 1 million visits, according to Wells Fargo. In the first year of offering the center, Wells Fargo has helped

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June 2016 | Alaska Business Monthly

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ten thousand small businesses develop a formal business plan. The popularity of the Business Plan Center doesn’t surprise Imus, who feels that business planning resources are much needed in the business community. Recent research by Wells Fargo indicates the same. Only one in three business owners said they had a formal, written business plan, according to a 2015 national Wells Fargo/Gallup Small Business Index survey. Wells Fargo serves one in ten of America’s small businesses, and the Business Plan Center is consistent with its focus on providing education and information, according to Imus. “We’re so interested in maintaining and enhancing the health of our small business owners,” Imus says. “Anything we can do to support the financial health of the business community is a good investment.” When borrowers need more in-depth and hands-on guidance with business plans, financiers typically refer them to outside organizations that specialize in this area, such as the SBDC. The SBDC maintains a staff of highly-qualified business professionals, many of whom have business ownership experience and/or advanced degrees in business. Its business advisors are certified through the Alaska SBDC’s Professional Certification program. The SBDC—grant-funded through the SBA with a match from the state—offers a variety of free and confidential services. The center provides access to business advising, workshops on starting a business and writing a business plan, and valuable research tools. SBDC participants can also subscribe to databases like IBIS World, Profit Cents, and EuroMonitor, as well as specific local sources such as the Department of Labor. Business owners can visit the SBDC’s website and take advantage of a number of online tools organized by business stages: think, launch, grow, reinvent, and exit. For instance, site visitors can click on the Think tab and access everything from a business plan cheat sheet and business plan outline to a financial model and loan proposal. “We are here to help small businesses on their journey to sustainability,” Klassert says. In addition, SBA.gov offers free access to a wealth of business planning information. And for a nominal fee, business owners can use LivePlan software to generate a professional-looking business plan. Or those wanting a more hands-off approach can employ a private company to create an effective business plan to support their financing and other goals. R Freelance writer Tracy Barbour is a former Alaskan.

Alaska Business Monthly | June 2016 www.akbizmag.com

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special section

Alaska & Pacific Northwest

The Alaska Fishery and the Pacific Northwest

Alaska Business Monthly | June 2016 www.akbizmag.com

A mutually beneficial endeavor By Susan Harrington

ommercial activities with possibly the most mutually beneficial endeavors between Alaska and the Pacific Northwest are found in the relationship between the two regions in the commercial fishing industry in waters off Alaska. Some would even say the Pacific Northwest has a sort of colonial hold on the rich waters of Alaska that teem with the oceanâ&#x20AC;&#x2122;s bounty. Thousands of vessels participate in the Alaska fishery, and the majority of those vessels are homeported in Alaska; however, the majority of the larger boats and at-sea processors come from the Pacific Northwest states of Washington and Oregon. The Alaska fishery includes state waters three miles from shore plus federal waters reaching beyond that to two hundred miles out in an Exclusive Economic Zone.

The commercial fishing boat F/V Royal Pacific motoring by Dutch Harbor. The Holy Ascension of Our Lord Cathedral in Unalaska is in the background; it is the oldest Russian Orthodox Church in North America. ÂŠ Thomas Sbampato / Alaska Stock.com

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June 2016 | Alaska Business Monthly

SOURCE: NOAA Office of Science and Technology, National Marine Fisheries Service, Commercial Fisheries Statistics (st.nmfs.noaa.gov)

National Marine Fisheries Service 2014 Landings By Species For Washington Afs Species Price Smelts 57,659 Name Pounds Dollars pound Sole, Dover 566,190 Anchovy, Northern 247,705 57,045 0.23 Sole, English 148,864 Cod, Pacific 611,483 264,668 0.43 Sole, Petrale 596,763 Finfishes, Unc General 6,032 2,636 0.44 Sole, Rex 81,508 Flatfish 5,400 1,674 0.31 Sole, Rock 12,443 Flounder, Arrowtooth 141,740 17,322 0.12 Sturgeon, White 49,260 Flounder, Pacific, Sanddab 22,864 11,116 0.49 Thornyhead, Shortspine 149,565 Hagfishes 1,394,599 1,480,770 1.06 Trout, Rainbow 386,764 Hake, Pacific (Whiting) 49,653,858 5,430,658 0.11 Tuna, Albacore 18,039,392 Halibut, Pacific 1,283,908 6,983,511 5.44 Subtotal 125,216,214 Herring, Pacific 472,617 184,021 0.39 Clam, Butter 14,076 Jack Mackerel 434,605 58,871 0.14 Clam, Manila 1,170,256 Lingcod 189,499 177,165 0.93 Clam, Pacific Geoduck 2,033,185 Mackerel, Chub 1,177,803 155,526 0.13 Clam, Pacific Littleneck 22,605 Pollock, Walleye 4,107 843 0.21 Clam, Pacific Razor 123,802 Rockfish, Black 1,294 1,293 1 Clam, Pacific, Gaper 647 Rockfish, Canary 13,899 7,555 0.54 Clam, Softshell 935,920 Rockfish, Darkblotched 24,346 11,756 0.48 Clams Or Bivalves 7,497 Rockfish, Widow 230,591 107,460 0.47 Cockle, Nuttall 6,596 Rockfish, Yelloweye 6,026 4,868 0.81 Crab, Dungeness 19,323,759 Rockfish, Yellowtail 970,896 470,880 0.48 Crab, Snow/Tanner 1,322 Rockfishes 260,831 146,557 0.56 Mussel, Blue 579,282 Sablefish 2,345,147 7,101,127 3.03 Octopus 1,538 Salmon, Chinook 7,343,532 16,793,471 2.29 Oyster, Eastern 7,699 Salmon, Chum 11,517,794 9,291,740 0.81 Oyster, Pacific 9,274,363 Salmon, Coho 4,727,972 5,900,109 1.25 Sea Cucumber 669,024 Salmon, Pacific 80 184 2.3 Sea Urchins 368,119 Salmon, Pink 5,811 7,191 1.24 Shrimp, Brine 81,412 Salmon, Sockeye 4,164,284 6,230,153 1.5 Shrimp, Ocean 30,872,043 Sardine, Pacific 17,161,573 3,328,044 0.19 Shrimp, Penaeid 114,987 Sculpins 278 163 0.59 Shrimp, Spot 372,397 Shad, American 40,811 2,089 0.05 Squids 21,033 Shark, Spiny Dogfish 323,153 114,405 0.35 Subtotal 66,001,562 Skates 338,707 127,670 0.38 Grand Total 191,217,776 Smelt, Eulachon 4,561 5,349 1.17

32,679 240,184 52,178 650,099 28,208 4,361 161,607 127,688 780,713 21,177,447 87,733,054 26,029 20,958,743 59,138,267 83,142 559,558 4,174 637,415 36,855 19,931 80,463,076 2,640 6,829,725 1,147 61,670 47,312,939 2,581,271 357,730 81,733 16,470,396 205,099 2,942,753 10,521 238,784,814 326,517,868

0.57 0.42 0.35 1.09 0.35 0.35 3.28 0.85 2.02 1.17 1.85 17.91 29.09 3.68 4.52 6.45 0.68 4.92 3.02 4.16 2 11.79 0.75 8.01 5.1 3.86 0.97 1 0.53 1.78 7.9 0.5

According to data from the Alaska Department of Fish and Game Commercial Fisheries Entry Commission, the Permit Holder and Crew Member Active Permit counts for the last three years have been declining: in 2014 there were 14,065 resident and 4,419 nonresident, in 2015 there were 14,648 resident and 4,395 nonresident, and this year there are 14,002 resident and 4,177 nonresident. Where nonresidents live was not included in the report, but the vessel total of 9,950 was listed as 7,387 Alaska, 1,765 Washington state, 279 Oregon, and 369 Other States or Countries. Also, regarding the Active Permits report, the department noted: â&#x20AC;&#x153;In this report Active Permits are defined as follows: all permanent permits, regardless of whether they have been renewed, and interim-use and interimentry permits that have been issued. Excluded from Active Permits are any permits that have been cancelled and interim permits that have not been issued (renewed) for the given year.â&#x20AC;?

Outside Offices

Aside from vessels, permit holders, and crew, many government agencies and private organizations have offices in Alaska, Washington state, and Oregon related to the Alaska commercial fishing industry as well. Some of the purposes of these organizations include administration, management, policy promulgation, information gathering and dissemination, and promotion of the Alaska fishery 36

Alaska Business Monthly | June 2016 www.akbizmag.com

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Clam, Pacific Razor Clam, Pacific, Gaper Cockle, Nuttall Crab, Dungeness Crabs Mussel, California Octopus Oyster, Pacific Sea Urchins Shellfish Shrimp, Blue Mud Shrimp, Ghost Shrimp, Ocean Shrimp, Penaeid Squids Subtotal Grand Total

16,891 34,461 78,651 11,908,598 1,162 52 4,021 443,459 504,911 1,227 881 44,792 51,778,660 10,929 5,884 64,841,561 291,654,856

110,293 87,315 117,032 48,146,905 2,178 248 4,833 1,773,850 284,508 665 1,231 108,798 29,367,488 127,788 1,469 80,150,295 158,079,951

6.53 2.53 1.49 4.04 1.87 4.77 1.2 4 0.56 0.54 1.4 2.43 0.57 11.69 0.25

National Marine Fisheries Service 2014 Landings By Species For Alaska Afs Species Price Name Pounds Dollars pound Atka Mackerel 69,502,900 22,493,575 0.32 Cod, Pacific 716,593,813 153,274,859 0.21 Finfishes, Unc General 342,842 157,000 0.46 Flatfish 48,136,465 6,614,869 0.14 Flounder, Arrowtooth 109,341,051 9,240,230 0.08 Halibut, Greenland 3,080,159 1,437,410 0.47 Halibut, Pacific 21,615,888 106,674,407 4.93 Herring, Pacific 96,789,370 11,491,658 0.12 Lingcod 397,114 375,565 0.95 Pollock, Walleye 3,145,605,118 399,882,554 0.13 Rockfish, Pacific Ocean Perch 104,440,268 21,271,813 0.2 Rockfish, Widow 31,235 12,426 0.4 Rockfishes 28,850,933 7,028,134 0.24 Sablefish 25,678,834 86,499,054 3.37 Salmon, Chinook 6,546,763 23,556,673 3.6 Salmon, Chum 77,695,304 46,051,573 0.59 Salmon, Coho 43,106,195 47,138,695 1.09 Salmon, Pink 309,573,177 86,061,131 0.28 Salmon, Sockeye 246,396,264 343,214,175 1.39 Sculpins 339,520 6,736 0.02 Skates 21,669,200 3,238,762 0.15 Sole, Butter 1,987,106 265,036 0.13 Sole, Dover 381,815 33,418 0.09 Sole, English 103,185 15,606 0.15 Sole, Flathead 38,587,090 9,339,866 0.24 Sole, Rex 9,608,559 3,273,485 0.34 Sole, Rock 117,241,928 18,229,617 0.16 Sole, Yellowfin 335,451,850 52,030,008 0.16 Subtotal 5,579,093,946 1,458,908,335 Clam, Pacific Geoduck 706,007 2,891,088 4.09 Crab, Dungeness 5,349,054 16,037,591 3 Crab, King 16,654,062 85,535,158 5.14 Crab, Snow 53,796,368 115,365,728 2.14 Crab, Southern Tanner 9,306,963 20,874,508 2.24 Octopus 1,360,840 623,683 0.46 Scallops 295,650 3,544,505 11.99 Sea Cucumber 1,203,064 4,815,197 4 Shellfish 947,625 554,251 0.58 Shrimp, Penaeid 826,081 2,883,530 3.49 Squids 1,797,545 158,967 0.09 Subtotal 92,243,259 253,284,206 Grand Total 5,671,337,205 1,712,192,541 June 2016 | Alaska Business Monthly

SOURCE: NOAA Office of Science and Technology, National Marine Fisheries Service, Commercial Fisheries Statistics (st.nmfs.noaa.gov)

National Marine Fisheries Service 2014 Landings By Species For Oregon Afs Species Price Name Pounds Dollars pound Cabezon 33,914 118,786 3.5 Cod, Pacific 342,077 184,486 0.54 Finfishes, Unc General 491 354 0.72 Flounder, Arrowtooth 2,346,086 234,619 0.1 Flounder, Starry 20,918 7,723 0.37 Flounder,Pacific,Sanddab 282,948 156,888 0.55 Greenling, Kelp 33,953 153,877 4.53 Grenadiers 5,567 555 0.1 Hagfishes 1,778,181 1,513,950 0.85 Hake, Pacific (Whiting) 161,589,035 18,273,513 0.11 Halibut, Pacific 202,132 1,137,165 5.63 Jack Mackerel 1,392,939 146,577 0.11 Lingcod 480,362 572,961 1.19 Mackerel, Chub 2,507,784 324,625 0.13 Rockfish, Black 271,512 591,733 2.18 Rockfish, Black-And-Yellow 19 108 5.68 Rockfish, Blue 7,683 10,974 1.43 Rockfish, Brown 37 168 4.54 Rockfish, Canary 22,070 11,832 0.54 Rockfish, China 9,647 56,362 5.84 Rockfish, Copper 2,274 7,473 3.29 Rockfish, Darkblotched 163,453 76,560 0.47 Rockfish, Gopher 63 218 3.46 Rockfish, Grass 165 1,101 6.67 Rockfish, Olive 7 30 4.29 Rockfish, Pacific Ocean 63,781 29,636 0.46 Perch Rockfish, Shortbelly 39 15 0.38 Rockfish, Vermilion 5,017 8,598 1.71 Rockfish, Widow 1,192,040 528,171 0.44 Rockfish, Yelloweye 1,309 1,136 0.87 Rockfish, Yellowtail 1,998,411 1,022,675 0.51 Rockfishes 733,490 350,188 0.48 Sablefish 3,292,716 8,075,656 2.45 Salmon, Chinook 4,805,418 18,238,877 3.8 Salmon, Coho 1,534,649 1,826,514 1.19 Salmon, Sockeye 4,421 8,642 1.95 Sardine, Pacific 16,938,350 3,521,758 0.21 Sculpins 5 4 0.8 Shad, American 27,796 4,477 0.16 Shark, Spiny Dogfish 1,242 136 0.11 Skates 1,771,971 806,913 0.46 Smelt, Eulachon 15,392 21,558 1.4 Sole, Butter 56 20 0.36 Sole, Curlfin 185 56 0.3 Sole, Dover 9,016,557 4,219,552 0.47 Sole, English 267,186 85,856 0.32 Sole, Flathead 21,891 6,902 0.32 Sole, Petrale 3,299,072 3,650,224 1.11 Sole, Rex 665,631 258,173 0.39 Sole, Rock 969 304 0.31 Sole, Sand 33,824 30,468 0.9 Sturgeon, White 10,673 37,801 3.54 Thornyhead, Shortspine 821,722 548,849 0.67 Trout, Rainbow 28,888 40,580 1.4 Tuna, Albacore 8,767,043 11,022,587 1.26 Tuna, Bluefin Pacific 128 423 3.3 Wolf-Eel 106 269 2.54 Subtotal 226,813,295 77,929,656 Clam, Butter 6,982 15,694 2.25

and products harvested. One example is the Alaska Fisheries Information Network with staff in Anchorage, Seattle, and Portland. They are better known as AKFIN. The organization consolidates Alaska fisheries data for fisheries analysts, economists, and other requestors. It provides Alaska data to NOAA for the annual Fisheries of the United States statistical report, produces other products such as maps and reports, and maintains the akfin.org website.

Fishing Fleet

AKFIN also produced â&#x20AC;&#x153;Fishing Fleet Profiles 2012 Addendumâ&#x20AC;? in September 2013. The report is revealing, informative, and organized by each separate fleet with bar graphs and pie charts regarding vessel and catch information including year built, length, hailing port, catch by weight percentages, and total number of vessels with vessel names, plus brief notes on each fleet and the number of vessels total and how many were also counted in other Alaska fishery fleets, which are broken down into sixteen.

Landings and Value

The information that follows, unless otherwise noted, is from the National Marine Fisheries Service (September 2015) Fisher38

Alaska Business Monthly | June 2016 www.akbizmag.com

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A DV E R T I SE M E N T

–

ings accounted for 60 percent of the landings and 31 percent of the ex-vessel value, nationally. In the Pacific Northwest (Alaska, Washington, Oregon) Alaska accounted for 87 percent, Washington 8.5 percent, and Oregon 4.5 percent of the 6.5 billion pounds harvested. Ex-vessel values for the region totaled $2.2 billion, of which Alaska accounted for 77 percent, Washington 16 percent, and Oregon 7 percent. New England has the most lucrative fishery in the countryâ&#x20AC;&#x201D;commercial landings totaled 642.7 million pounds with an ex-vessel value of $1.2 billion. New England garnered 22 percent of the money with only

7 percent of the catch thanks to lobster and sea scallops. Back to the Pacific Northwest, Washington landings were 5.9 percent with a value of 6.6 percent and Oregon landings were 3 percent with 2.9 percent.

Plants and Jobs

The Alaska fishery has the most landed fish in the country; however, it does not have the most processing and wholesale plants or jobs, although there are thousands. Among Alaska, Washington, and Oregon there were 447 processing and wholesale plants employing 20,752 people. In the United States, there were 3,209 plants and 61,795 jobs. Alaska jobs numbered 10,629 in 161 plants. There were 8,450 jobs in 238 plants in Washington and 1,673 jobs in 48 plants in Oregon. Stacked against the rest of the country, Pacific Northwest processors and wholesalers account for 34 percent of the jobs and 14 percent of the plants. Alaska has more processing plants (150) and Washington has more wholesale plants (134). When looking at landing ports, Alaska tops the Pacific Northwest and the United States; the ports of Dutch Harbor, Kodiak, and the Aleutian Islands (other) rank one, two, and three for quantity overall and of the top fifty, thirteen are in Alaska. Walleye pollock from the Bering Sea puts Dutch Harbor on top. R

Alaska and Pacific Northwest Ports in US Top 50 Commercial Fishery Landings and Value in 2014 Quantity Million Value Port Lbs. Million $ Dutch Harbor 762 191 Kodiak 477 143 Aleutian Islands (other) 471 107 Alaska Peninsula (other) 170 87 Naknek 133 135 Newport, OR 124 53 Astoria, OR 122 43 Westport, WA 100 64 Sitka 89 71 Ketchikan 87 45 Cordova 85 63 Petersburg 65 51 Bristol Bay (other) 59 82 Seward 52 53 Coos Bay-Charleston, OR 29 34 Kenai 28 34 Ilwaco-Chinook, WA 27 25 Juneau 19 * Bellingham, WA * 29 Seattle, WA * 24 *Bellingham and Seattle ports listed in Top 50 for value only; Juneau listed for quantity only. 40

Alaska Business Monthly | June 2016 www.akbizmag.com

SOURCE: NMFS Fisheries of the United States, 2014, US Department of Commerce, NOAA

ies of the United States, 2014, US Department of Commerce, NOAA Current Fishery Statistics No. 2014, the latest data available. In 2014, Alaska commercial landings totaled 5.67 billion pounds for an ex-vessel value of $1.7 billion, all species combined, the most of all states. To compare, landings in Washington state totaled 555.3 million pounds valued at $358 million and Oregon landings were 291.6 million pounds valued at $157.7 million. To get an idea of how huge the Alaska fishery is, in 2014, national commercial landings totaled 9.5 billion pounds with an ex-vessel value of $5.4 billion. Alaska land-

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Alaska & Pacific Northwest

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Enduring Business: Connecting Alaska and the Pacific Northwest 42

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laska and the Pacific Northwest have enduring business connections. The two regions have enjoyed business connections for hundreds of years when taking into consideration early trade and travel among Alaska Natives and world explorers via land and sea. When accounting for air travel and telecommunications, the connections date to the early 1900s. Telewww.akbizmag.com

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graph lines were laid underwater between Sitka and Seattle in 1903. Twenty years later there were commercial air flights. These connections via air, land, sea, and telecommunications continue to prosper and grow even now. One need only look to Alaska Business Monthly’s annual Power List and monthly directories and listings to see the hundreds of companies and thousands of workers sharing commerce between Alaska and the Pacific Northwest.

Transportation

Probably the most visible connections are in the transportation industry, as goods are shipped via air, land, and sea to Alaska from ports in the Pacific Northwest. In the give and take and ebb and flow of annual commerce, commodities such as crude oil and mined ores as well as other cargo like hazardous waste and materials to be recycled are shipped out of Alaska mostly to the Pacific Northwest. Operations are based throughout both areas with many originating in Alaska. Seasonally the visitor industry adds to the transportation flow with air travelers, cruise passengers, and overland adventurers. State run operations as well as commercial enterprises are connected as well. One example is the Alaska Marine

Highway System’s presence in Bellingham, Washington.

Telecommunications

What is new and exciting, though, is a construction project underway that will offer wholesale telecommunications capacity on a network connecting the Arctic with the rest of the world. Quintillion’s creation of this new Arctic network is initially reliant on connections to the Pacific Northwest via existing undersea fiber optic cable. Alaska’s largest telecoms—GCI, AT&T, and Alaska Communications—all rely on undersea cables connecting Alaska to Washington state and Oregon. These undersea connections enable each of their networks the ability to offer their customers in business, education, and government, as well as private citizens, access to the Internet along with wireless and wired services, in addition to in-state terrestrial buried and overhead cables and lines, towers, and satellite connections.

Quintillion

Anchorage-based Quintillion is working on the first segment of a three phase plan to connect the world. Phase 1 is the Alaska phase and is expected to be completed by the end of the year in order to offer ser-

vices in early 2017 to Deadhorse, Barrow, Wainwright, Point Hope, Kotzebue, and Nome via undersea fiber optic cable from Prudhoe Bay to Nome. Also, the company is installing terrestrial cable between Fairbanks and Prudhoe Bay that will tie into existing connections with Anchorage and the Pacific Northwest—linking the Arctic to high speed broadband.

Future

Quintillion has plans for two more phases. As each phase is completed the system will be strengthened with redundancies and open new Arctic, domestic, and international markets. Phase 2 will continue west from Nome to Japan and connect Asia to the Arctic. It’s possible that more Alaska communities will be connected in Phase 2. Phase 3 links Canada to the United Kingdom by extending east from Prudhoe Bay through the Northwest Passage and will travel south of Greenland and across the Atlantic Ocean to its destination—London. Enduring business between Alaska and the Pacific Northwest is helping create vital links to the rest of the world. R Susan Harrington is the Managing Editor at Alaska Business Monthly.

Alaska Business Monthly | June 2016 www.akbizmag.com

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special section

Alaska & Pacific Northwest

The Northwest Seaport Alliance

Alaska Business Monthly | June 2016 www.akbizmag.com

Breakbulk cargo in The Northwest Seaport Alliance South Harbor. Photo courtesy of The Northwest Seaport Alliance

Shipping gateway to the Pacific Northwest By Tasha Anderson

fficially The Northwest Seaport Alliance (NWSA) was launched August 4, 2015, and has been in operation since. According to NWSA Communications Director Tara Mattina, many of the financial changes took place January 1. By either date, “It’s still fairly new,” she says. It’s not just NWSA that’s new, but even the idea of ports combining resources instead of competing for them. Mattina says it’s the first time this type of partnership has been formed in North America. More than that, there’s only one similar situation worldwide, that she knows of: the Copenhagen Malmö Port, “the logistics hub for the Baltic region,” a partnership between ports in two different countries—Copenhagen in Denmark and Malmö in Sweden. Mattina says the ports are located across from each other, and so a partnership just made sense.

“Each of the ports still owns their marine terminals. Instead of the two ports trying to woo one shipping company that’s trying to bring in larger ships and investing in both ports just to stay competitive, we as a gateway can say that one terminal is going to be the better fit and invest in that terminal first. Then we can invest in either harbor for further business opportunities to leverage the money, as well.”

—Tara Mattina Communications Director, NWSA

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A Foss tug maneuvers a cargo ship into a berth at Terminal 18, the largest container facility in the Pacific Northwest and part of the Northwest Seaport Alliance. Photo courtesy of The Northwest Seaport Alliance

Alaska Business Monthly | June 2016 www.akbizmag.com

TOTE Maritime ship Midnight Sun in Puget Sound. Photo courtesy of The Northwest Seaport Alliance

For Seattle and Tacoma, a similar partnership also seems to just make sense. The ports have competed with each other for many years. “This wasn’t good,” Mattina says. “We were trading customers back and forth to the detriment of the entire gateway. We were losing market share to Canada and Southern California.” The ports worked cooperatively to find a new business model.

How NWSA Works

Merging the two ports wasn’t an option, as it “would require changes in state law and other complications,” she says. “We came up with another business model that would allow us to participate as one gateway instead of two separate ports.” In essence, the ports have licensed their marine cargo facilities to NWSA to manage. “Each of the ports still owns their marine terminals,” Mattina says. One significant benefit of the partnership is how it allows for both ports to benefit from any development of infrastructure at either port. “Instead of the two ports trying to woo one shipping company that’s trying to bring in larger ships and investing in both ports just to stay competitive, we as a gateway can say that one terminal is going to be the better fit and invest in that terminal first. Then we can invest in either harbor for further business opportunities to leverage the money, as well.” She says that NWSA is a response to the shipping industry in general. “Competition in the shipping industry is more intense than ever before,” Mattina says. “Shipping lines have been losing money for several years. To find ways to save money and gain economics of scale, they’ve been forming their own alliances and sharing space on ever larger ships.” For example, Oceania LLC currently hauls in Tacoma: “They were outgrowing their terminal,” Mattina says. Instead of Tacoma doing anything at all to keep the line in place, NWSA asked Oceania what would best suit the shipper’s needs; it ended up being a terwww.akbizmag.com

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minal in Seattle. “We were able to keep the business in the Pacific Northwest. It didn’t matter if it was in Tacoma or Seattle because the two ports share the profit.” She explains that the Ports of Tacoma and Seattle invested 50/50 into NWSA and will share revenue from the partnership in a 50/50 split. NWSA is not a combination of all of the properties and operations of both ports. For example, in Seattle there’s an airport, cruise ship operations, industrial real estate, a fisherman’s terminal, and a grain silo that will still be managed by the Port of Seattle. At the Port of Tacoma, there’s a grain terminal and some industrial real estate remaining separate from the partnership. “The Port of Seattle is very large, and what’s left outside [NWSA] is very large; for the Port of Tacoma it’s smaller,” Mattina says.

Transitions

Mattina says NWSA is in a five-year transition period to become a stand-alone entity. “Right now the commercial and the operations teams are NWSA employees. Everybody else is either a Port of Seattle or Port of Tacoma employee providing service to the alliance through service agreements,” she explains. This transition period is just a matter of practicality, Mattina says. “It’ll take a while to iron out all the details.”

One consideration is that, while NWSA needs to determine what kind of staffing it needs, both ports individually are looking at their needs for whatever lines of business they will continue to manage. All in all, Mattina says the process has been “probably more complex than we thought, and we are seeing quite a bit of success quicker than I thought.” It’s the commissions of the two ports that make decisions on behalf of the Alliance, a total of ten publicly elected commissioners. In April they voted for significant investment into an international container terminal in the South Harbor. “It will allow us to simultaneously service two of the largest container ships in the world, two 18,000 TEU [twenty-foot equivalent units] ships will be able to land at the same time at that terminal.” The investment into the infrastructure included strengthening and realigning the berth to handle the bigger ships as well as ordering four new cranes—all told about $160 million worth of work, Mattina says.

Client-Driven Changes

So far, she says, the response from their clients has been positive. “The first reaction we got [from our clients] was: What took you so long? We already thought of

you as one gateway anyway.” There are still a few wrinkles that NWSA is addressing in that arena as well, mostly just disseminating information about what NWSA is, if points of contacts have or will change moving forward, etc. “We spent quite a bit of time, even before August, getting before our customers and potential customers to explain what it’s all about and how it can benefit them.” In fact, one of the steps NWSA has taken was setting up an Operation Service Center, which was “designed to give real time information to our customers and all parts of the supply chain.” Many of NWSA’s efforts have been guided by an Executive Advisory Council, which Mattina says is comprised of terminal operators, warehouse distribution centers, labor representatives, trucking companies, railroads, and anyone in the supply chain. “They’re all sitting at the table saying what information would be beneficial to them and letting us know what metrics we should be grading ourselves on; so all of this has been guided by our customers and stake holders,” Mattina says. R Tasha Anderson is an Associate Editor for Alaska Business Monthly.

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VISITORS INDUSTRY

CreditFlavin here Photography/Courtesy of Kenai Fjords Tours Frank

View of Resurrection Bay from Fox Island.

Day Trips and Tours ‘Showing independent visitors Alaska’ By Tasha Anderson

’m an Alaskan. I grew up here. When I was young I identified my favorite places as “that one with the big rock” or “we had to drive forever, and there was a bridge.” I’m a little better with names now, though I have to say that even today if anyone were to ask me to how get to Liberty Falls my answer would be, “I don’t know the name of the road, but I can take you there.” There’s a lot to do in Alaska, and getting close enough to climb on the rocks, wade in the water, or tell that out-of-state friend, “No, it’s a wild animal, you shouldn’t try to touch it” makes the experience all the more rich.

Independent Touring with Alaska.org For those who don’t happen to know the girl who knows the road to this really awesome place with a great rock, try Alaska.org. The site was built up by Bob Kaufman, and he created it specifically to address the issue of how to know what to do in Alaska. “Alaska is a really unfamiliar destination and it’s a complex destination. Because of that people say, ‘I’m just going to do a cruise.’” Alaska.org is meant to “show 52

independent visitors a better way to see Alaska,” Kaufman says. One of the challenges that people face in exploring Alaska independently is a combination of its vastness and lack of infrastructure. Kaufman says, “The train here will run once or maybe twice a day. Most people that live in New York, they hear about a train and they ask, ‘Do I take the 5:05 or the 5:20?’” The Alaska Railroad is a wonderful way to travel Alaska; just stopping by a station and thinking a train “will come by” isn’t going to pan out. Kaufman’s goal with Alaska.org was to create a place that has enough information and detail to be a useful tool without overly focusing on nuances or overwhelming travelers. He says short, day tours are an important part of touring in Alaska. “If I fly to Hawaii and stay at a resort there, I don’t have to purchase a single day tour to get the experience I paid for. I’ll get the sun; I’ll get the beach; I’ll get all the things I want to do on the water. If I go to Washington DC I can see the Capital and the Lincoln Monument. All you have to do is arrive and you’ll get 80 percent of the experience you want to have. In Alaska, with no day tours, you won’t see

Alaska Business Monthly | June 2016 www.akbizmag.com

a bear up close, you won’t see tidewater glaciers crash into the ocean, you won’t see our biggest mountains up close—you’ll see it all from a dozen miles away. You cannot experience Alaska without taking them; they give you that last link of transportation you need to see the sights you came here to see.” There’s no doubt such trips can be expensive, especially when compared to independent traveling in other parts of the country or internationally, but “nobody ever regrets it,” Kaufman says. “They remember it for the rest of their lives. They’re expensive, but they’re awesome.”

Chris Batin/Courtesy of Kenai Fjords Tours

Alaskan Expertise

Humpback whales bubblefeeding.

A significant chunk of that awesome comes from the fact that day trips around Alaska are most often guided by local Alaskans. One example is NOVA Alaska Guides, which offers rafting trips, primarily on the Matanuska River and Six Mile Creek, specializing in white water trips. Chuck Spaulding, owner and one of the company’s founding members, says the company initially started because they needed to practice: “We were young guys, and we had this equipment, and we needed to sharpen our skills on whitewater, so we were practicing a lot, particularly on the Matanuska River. It got expensive driving to the valley, so we’d

charge our friends for gas. Before we knew it, we were charging for day trips.” He says that the Matanuska River and Six Mile Creek are both about an hour and a half from Anchorage, one to the north and one south, making them ideal for a day trip for any visitors staying in Alaska’s largest city. Spaulding says that whitewater is rated on a scale from 1 to 6, and 6 is considered “unrunnable.” The Matanuska River varies from class 1 to 4: “On our website [novalaska.com] we try to do a good job of explaining what is suitable for different groups in terms of physical ability and comfort level.”

Matanuska River is fed by Matanuska Glacier, on which NOVA offers glacier hiking. They’ll combine glacier hiking with a float trip, creating a full-day outing, hiking in the morning and floating in the afternoon. He says that Six Mile is slightly different, as it’s made up three canyons: the first builds up to the second which builds up to the third, which is class 4 with sections of class 5 water, depending on water levels. Before starting a trip on Six Mile, NOVA will actually have rafters swim in the water after a safety briefing. “That demystifies

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ENHANCE YOUR TEAM’S PERSPECTIVE

the experience [of being in the water] and increases their confidence level to rescue themselves, and it’s also a test so we can verify their abilities,” Spaulding says. And, he continues, people really enjoy it.

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According to Kenai Fjords Tours (kenaifjords.com) Director of Marketing Dee Buchanon, their ship captains, who also narrate the tours, “do this because they absolutely love it.” She says that, on average, their captains have been navigating the waters Kenai Fjords National Park for twelve years. They are certified by the same process that National Park Rangers are certified. “Some [of our captains] are involved in ecology and are interested in ocean acidification … others are birders or involved in avian research … others are involved in ongoing marine research, so they add a lot to the commentary in addition to the certification they go through.” All of the cruises that Kenai Fjords Tours offer are in fact day cruises, Buchanon says. The longest cruise, the nine-hour Northwestern Fjord Tour, does take an entire day; Buchanon says this tour is particularly ideal for those interested in birding, as the ship gets up close to islands that house some of Alaska’s rare seabirds, allowing opportunities for quality photos and viewing. On the other end of the spectrum, their shortest tour offering is 3.5 hours; the Fox Island Dinner Cruise departs Seward at approximately 5 p.m. and travels to Fox Island, where guests are treated to a buffet style salmon and prime rib dinner. While many cruise experiences in Alaska are quite costly, this particular cruise is definitely on the affordable end of the spectrum, not costing much more than a fancy dinner out on the town. Kenai Fjords Tours offers many options in between, visiting different parts of Resurrection Bay or Kenai Fjords National Park to see various seabirds, marine life, and glaciers. Buchanon says that while the routes are approximately set, if there’s a report of a whale sighting or if sea lions have gathered in a particular spot, the cruises will adjust to give their guests the best chance possible to see the wildlife they’ve come to see. Many of their tours include lunch on Fox Island, and the Northwestern Fjord Tour includes breakfast and lunch served onboard. Kenai Fjords Tours works closely with guests to help with the logistics of traveling Alaska, offering a variety of shuttles and parking services to get guests to, or around, Seward. R Tasha Anderson is an Associate Editor for Alaska Business Monthly.

Alaska Business Monthly | June 2016 www.akbizmag.com

special section

Transportation

Photo by Nancy Erickson | Courtesy of the City of Seward

Operators on a Hitachi 1200 Excavator with a four-cubic-yard clamshell working around the clock in March to remove 115,000 cubic yards of material to provide a new channel from the north into the basin at Seward Marine Industrial Center.

New Life for Seward’s Marine Industrial Center

By Nancy Erickson

t’s been years in the making, but the Seward Marine Industrial Center (SMIC) is getting the long-awaited breakwater so desperately needed to compete as a deep water, ice-free, marine industrial port. Mammoth rock trucks rumble over roads that once saw little traffic, transferring rock from the City’s rock quarry to size-designated piles in preparation for placement in the new 960-foot breakwater. Hamilton Marine’s dredging crews are working 24/7 to remove 115,000 cubic yards of material that will provide a new channel into the basin from the north, according to Hamilton’s Project Assistant Andy Loertscher. Associated navigational aids and marker piles will also be added. Existing sewer and seafood outfalls from Polar Seafoods and Spring Creek Correctional Center will be relocated to accommodate the breakwater development. Hamilton Marine Construction LLC began work on the Phase One $15 million project late 56

last fall with a scheduled completion date of April 2017. The breakwater will extend from the existing cell wall on the southwest side of the basin and when completed will enclose roughly thirty-five acres of water, according to Seward Assistant City Manager Ron Long. Phase Two of the SMIC expansion project will see development and dredging of the SMIC basin to increase moorage and wharfage capacity, repair the damaged North Dock, and add utility and upland infrastructure. But the bigger story is not what the breakwater is but what its completion will mean to Seward and Alaska. According to Long, getting the breakwater in place is pivotal to developing the industrial center and a catalyst for economic growth and job stability. The few marine-related businesses that stood sentinel for years on the uplands that promised a thriving conglomeration of marine repair facilities are now being joined by other likeminded entrepreneurs as the City’s lease parcels are gobbled up.

Of the initial eighty-five acres of land available for development, thirty-six acres remain for purchase or lease, according to Seward Harbormaster Norm Regis. Other parcels are leased or privately owned.

History

The City of Seward had big plans in the mid1980s for the fifteen square mile parcel located on the Fourth of July Creek alluvial fan delta two miles across Resurrection Bay from Seward. In 1986 city voters approved a $30 million general obligation bond to purchase and construct infrastructure, of which a portion was eventually leased by Jim Pruitt and operated as Seward Ship’s Drydock. A partial cell wall was constructed as well as a 430-foot cargo dock north of the drydock. But the project ran out of money and its anticipated potential was never developed. Without a protective breakwater, aggressive wave action entering the Bay from the Gulf of Alaska proved too rough for vessels to safely tie up to the cargo dock.

Alaska Business Monthly | June 2016 www.akbizmag.com

ABOVE: A Hamilton Construction employee dumps a load of bedding material to an already existing pile in the Seward Marine Industrial Center yard in preparation for construction of a new breakwater. Ten separate classifications of rock weighing more than 270,000 tons are needed for the breakwater and beach armor. LEFT: An operator in a Volvo L220 Wheel Loader transfers a huge load of Secondary Armor Rock to a waiting truck for use in construction of the new breakwater. Photos by Nancy Erickson | Courtesy of the City of Seward

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June 2016 | Alaska Business Monthly

The Seward Marine Industrial Center’s open basin (as seen in August 2012) will be enclosed by a 960-foot breakwater upon completion of Phase One of the industrial center’s improvements. Photo by Alaska Aerial Technologies | Courtesy of the City of Seward

Courtesy of the City of Seward

SEWARD MARINE INDUSTRIAL CENTER IMPROVEMENTS PHASE 1 PROJECT SCOPE

THE SEWARD MARINE INDUSTRIAL CENTER (SMIC) IMPROVEMENTS IS A MULTI YEAR, PHASED PORT EXPANSION PROJECT, PROVIDING WAVE PROTECTION, UPGRADING EXISTING FACILITIES AND ULTIMATELY EXPANDING COMMERCIAL MOORAGE CAPACITY AND SUPPORT SERVICES.

PHASE 1 - BASE BID

NEW 1,041LF ROCK BREAKWATER ALONG THE WEST SIDE OF THE HARBOR AND DREDGING A NEW CHANNEL

PHASE 1 - ADDITIVE ALTERNATE A

REMOVE & REPLACE TURNING DOLPHIN&CATWALK AT THE SYNCRO-LIFT PIER

DATE: 6-13-2014

The project scope details Phase One improvements to the Seward Marine Industrial Center. Work on the project began late last fall and is scheduled for completion in April 2017. 58

Alaska Business Monthly | June 2016 www.akbizmag.com

Photo courtesy of Seward Harbormaster’s Office

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The City of Seward’s 330-foot Travelift hauls out a Crowley tug boat for repairs and maintenance in the Seward Marine Industrial Center yard.

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“Word gets out fast: ‘Don’t bring your boats here,’” Long says of the message filtered down to Seattle-based barge services, large workboats, and the Western Alaska Community Development Quota, or CDQ, fishing fleet the City was hoping to entice. “That’s why the breakwater is so crucial,” Long says. “It takes the fear factor out of going there. Vessels come and the workforce will follow.”

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Vigor Industrial’s eleven-acre full service shipyard is the “anchor tenant” at SMIC. Formerly Seward Ship’s Drydock, Vigor assumed the helm in 2014. Located on the south side of the basin, the facility consists of an 80-foot by 350-foot synchrolift rated to lift vessels up to 5,000 long tons and 300 feet long, upland rails, a lateral transfer cradle, and a dock on the north side. The Travelift pier north of Vigor is used exclusively by the City of Seward’s 330-ton boat haul-out crane. The machine can lift most vessels up to 100 feet long and is used to transport vessels to the environmentally friendly wash down pad and to the upland areas for maintenance, repairs, and storage. Lifts can be scheduled seven days a week. City harbor crew recently installed two guide piles to assist vessels in and out of the Travelift slipway. The safety ladder was relocated to the inside of the Travelift. Crews are also making use of the basin’s dredged material by filling in the uplands and improving drainage issues, Regis says. The East Dock, also known as the Inlet Salmon dock, is located on the east side of the basin and is a self-standing sheet pile bulkhead. The dock has a 132-foot face and is 107-feet wide and is capable of servicing vessels up to 100-feet in length. Polar Seawww.akbizmag.com

June 2016 | Alaska Business Monthly

On-Site Services—Seward Marine Industrial Center AVTEC Alaska Maritime Training Center |

Department Head: Terry Federer; 907-224-6195 — Alaska Maritime Training Center (AMTC) offers US Coast Guard and International Maritime Organization STCW approved and compliant maritime training at AVTEC facilities within the SMIC area. AMTC offers both Basic and Advanced Firefighting courses for shipboard fires and Proficiency in Survival Craft/Lifeboatman courses, as well as industry and vessel specific safety training customized to meet industry needs. This includes cold water survival and custom firefighting courses. Apprenticeship: AVTEC administration is in the beginning stages of discussing the viability and development of a marine repair apprenticeship program. They are first interviewing potential employers to discuss the need and whether such a program would be sustainable. Alaska Logistics | Seward Operations Manager Eric Day, SMIC yard, 907-224-7128, 907-224-2004; Owner: Allyn Long — Scheduled barge service from Seattle to various ports throughout Western Alaska since 2003. Seward is the first stop for its mainline barges heading West. Its location and facilities are ideal for freight originating in Central Alaska. Alaska Marine Coatings LLC | Owners: Mike and Tiffany Ritz; 907-382-0586 — Marine coating for workboats. The family-owned company prides itself in hiring, training, and employing local Alaskans. Catalyst Marine Engineering | Owner: Joe Tougas; 1806 Alameda St.; 907-224-2500 — Vessel support facility specializing in high quality ABS/ USCG marine welding, fabrication, machine shop, PPG paint dealer, and marine logistics. City of Seward | City Manager Jim Hunt; 907-224-3331 — Various parcels are available for sale or lease. The SMIC yard has forty-six stalls for storage and repair, seventeen of which have power, and five more are scheduled to be installed in spring 2016. A wash-down pad is available for vessels utilizing the 330-ton Travelift.

foods is the primary user of this facility. Major improvements to the 430-foot North Dock are part of Phase Two; however, repairs completed under Phase One will keep the dock functional at the west end until such time funding is secured for the second phase, according to Long.

Improvements to Seward’s Harbor The Seward Harbor and Alaska Railroad Dock are also receiving upgrades. Turnagain Marine Construction was the low bidder on a contract to replace the last four aging wooden floats in the Seward Harbor. Floats A, B, C, S, and a portion of G float were replaced with new wooden floats. New ramps were installed at B and S floats and new electrical service for B and C floats, according to Regis. Installation of the new Northeast fish cleaning station is scheduled to be completed by April of this year. Guest 60

Communications North | Owner: Pat Marrs,

204 Nash Road in SMIC, 907-224-8908 — The company focuses on the electronic needs of the maritime industry and provides services for the fishing fleet, cargo ships, oil tankers, cruise ships, and tour vessels. Polar Seafoods Inc. | Owner: Mike Shupe; located at SMIC dock; 907-224-8748 or 224-7066 — Fish processing facility. Fresh and frozen seafood and canned salmon. Raibow Fiberglass & Boat Repair LLC & Raibow Marine Supply LLC | Owner: Dave Phillips; located in SMIC yard and in Seward at 1712 Alameda, 907-224-3028 — Full service boat repair yard offering top quality work at a fair price. Services range from mechanical and cosmetic repair, structural fiberglass and fibercoating, shrink wrapping, and 150-boat capacity winter storage. Raibow has two yards in Seward and three yards at SMIC. The store at SMIC offers a variety of marine repair supplies. Phillips is currently working with AVTEC to develop a marine repair apprenticeship program. SewMar storage condos | Owners: Tom Tougas and Larry Harmon, Mile 7 Nash Road in SMIC; 907-224-4378 — Ten large storage condos for sale; units measure 48 feet by 20 feet and 48 feet by 24 feet. Shoreside Petroleum | Owner: Kurt and Diana Lindsey; 700 Port Ave., 224-8040 — Serving marine, construction, residential heating fuel, and marine service station. Shoreside has a small tank farm at SMIC and a fueling station on the North Dock and in the Seward Harbor. Spartan Rig 151 | An oil drilling rig owned by Spartan Offshore wintered over at SMIC, bringing in approximately $13,000 in moorage revenue. Plans are to return this fall if the rig isn’t operating this winter. Vigor Marine, SMIC full service ship yard | Located at Mile 7 Nash Road in SMIC, 907-224-3198 — SyncroLift: 350 feet long by 80 feet wide, 5,000 long ton capacity plus the City’s Travelift; their eleven-acre yard is ideal for all types of conversions and major repair work. R

handicap moorage will also be available. Due to increasing freight volume, the Alaska Railroad has issued a five-year Master Plan calling for additional moorage/ wharf capacity, new roads, and increased industrial space, according to Seward Port Manager Christy Terry. First on the list is upgrading the East Dock to accommodate fishing vessels seeking to unload their catch in Seward. The improvements include a seven thousandplus-square-foot paved area on the ocean end of the dock, new electrical power, and water service. Completion is scheduled for June 2016. R Nancy Erickson is a freelance writer living in Seward. This article was commissioned by the City of Seward. It is published in Alaska Business Monthly with permission.

Alaska Business Monthly | June 2016 www.akbizmag.com

special section

Transportation

Workers piece together panels of one of two Alaska Marine Highway System Alaska Class Ferry day boats at the Vigor Alaska Ship Assembly Hall in Ketchikan. Photos by Owen Kendig | Courtesy of Vigor Alaska

Company develops workforce and infrastructure By Rindi White

n ongoing public-private partnership between Vigor Industrial and the state of Alaska is paying off in jobs, long-term contracts, and development at the Ketchikan and Seward marinas. Vigor Alaska, a division of Pacific Northwest ship building and repair company Vigor Industrial, purchased Ketchikanbased Alaska Ship and Drydock in 2012. It also bought Seward Ship’s Drydock in 2014. Both sites are growing and thriving, says Vigor Alaska Director of Shipyard Development Doug Ward. “We’ve become an economic development project,” Ward says, referring to the

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partnership between Alaska Ship and Drydock in Ketchikan that formed after the collapse of the timber industry in Southeast in the 1990s. Ward has been with the company since 1994 and has seen it grow from 35 employees to nearly 250 people today, between the Ketchikan and Seward shipyards. Vigor Alaska services a broad range of clients, from cruise ships to Crowley Marine tugboats that shepherd oil tankers in and out of Prince William Sound to fishing vessels working all over the state. The state of Alaska’s Alaska Marine Highway System is the company’s largest volume customer. The company has a contract to perform all routine maintenance and repairs necessary to keep the Alaska Marine Highway System ferries running according to US Coast Guard specifications. In April, Vigor employees were hard at work making repairs to the M/V Tustumena, a ferry that serves Alaska communities from Homer to Kodiak and out to Dutch Harbor.

Photo by Owen Kendig | Courtesy of Vigor Alaska

Vigor’s Alaska Shipyard Activities Grow

A Vigor Alaska worker at the Ship Assembly Hall in Ketchikan. June 2016 | Alaska Business Monthly

Vigor Alaska’s partnership with the state of Alaska is paying off in Ketchikan.

“It’s the only vessel that serves the [Aleutian] chain,” says Alaska Department of Transportation and Public Facilities’ Spokesman Jeremy Woodrow. The Tustumena ended service for its annual overhaul on March 10 and was expected to be back in service by May 15, but workers found the metal decking in the car deck area of the fifty-two-year-old vessel was corroded. Like rotten wood on an outdoor deck, Woodrow says the corroded metal had to be cut out and replaced to ensure it was strong enough to safely carry vehicles. The additional work was expected to be complete May 27, Woodrow says. Ward says the job is a top priority for their crew. “For any of our customers, and the Ma64

rine Highway System in particular, whenever there is mission-critical work that is preventing one of our customers from completing its mission ... We pull out all the stops and try to get it back to work as quickly as possible,” Ward says.

Investing in Alaska’s Shipbuilding Industry Vigor is the only ship-builder in Alaska currently building new ships. It’s midway through a four-year contract to build two new ferries for the Alaska Marine Highway System, ships that will travel between Skagway and Juneau. The vessels are expected to be finished in the fall of 2018, though when they go into service will depend on current

service needs and available funding. The Alaska-Class ferry project was created during the administration of former Governor Sean Parnell. Woodrow says the goal was to use state funds for the project. “Then we could select the shipyard where we wanted these ferries to be built,” Woodrow says. Using federal funding requires a nation-wide bidding process, he says. Parnell wanted to be sure the funding stayed in Alaska. Vigor, which was Alaska Ship and Drydock at the time, was the only shipyard in the state large enough to handle the project. Woodrow says the state used a construction manager/general contractor method of construction for the project, in which

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SEATAC MARINE SERVICES

Courtesy of Vigor Alaska

the owner makes a preliminary design and then brings the contractor on board to finalize the design. As the two groups worked together, Woodrow says, Alaska Ship and Drydock helped identify ways to streamline the construction process to bring down the construction cost. The end result, he says, is a $120 million budget for the two vessels. Vigor purchased Alaska Ship and Drydock in March 2012 and the deal was signed later that year. Woodrow says the goal of building the ships in Alaska to create jobs and bring new industry techniques to the state has paid off in other ways, too. â&#x20AC;&#x153;There are lots of savings that come with having a local builder, especially with the www.akbizmag.com

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Photo by Owen Kendig | Courtesy of Vigor Alaska

Vigor Alaska worker Gerald Orton prepares to install a repaired prop on a fishing vessel.

Marine Highway System being based in Ketchikan,” he says. “Normally, if we have a construction project, we have an engineer on site the whole time of the project. If it’s in Portland [Oregon], we would pay for them to live there during the whole process. But they live in Ketchikan, so we don’t have to pay that.” Woodrow says it’s a bonus to have a workforce that is familiar with Marine Highway vessels, so they can more easily maintain the fleet. The ferries are being built using modular construction, with each panel already

fitted with pipes, electrical cable raceways, and other components already in place. Each ferry has twenty-three modules; as of a February update, six were in place. Construction was expected to ramp up during summer, Woodrow says, as winter is typically Vigor’s busy season. “By extending the contract, we were able to agree that they would not [have to] do as much work in the winter, then when their other contracts were back out on the water, their workforce would come back to the ferries. By extending that out, we’re also not paying as much overtime,” Woodrow says.

Using Cutting-Edge Tools to Hone Skills Ward says Vigor is using new technology to make the construction process go more smoothly. An employee working for Seattlebased naval architecture and marine engineering firm Glosten, a consultant on the construction project, designed an app to record in real time, using cell phones, changes that need to be made to the project design. In most construction projects, Ward says, if a problem emerges a redline is submitted for review. Then project drawings need to be changed with the new information incorporated. The process can take weeks, he says. The app Vigor is using al-

lows workers on any level of the job to record their comments on their phone, take pictures, and even draw directly on the photos to highlight the problem and submit it to Glosten’s engineering team, where the change can be made to the project plans. “It maintains visibility and everyone can watch how the problem resolves. That is a learning event,” Ward says. “We’re trying to make learning in the shipyard more of a continuous process.” Ward says the app can also be used to record near-misses at the shipyard. If a worker sees an unsafe practice that doesn’t result in an incident, he or she is required to report that. Reporting typically meant going to the company’s office, taking pictures of the incident, writing it out on paper, scanning the documents in, and then sending it to the appropriate person, who interprets the issue and transfers it to someone who can make a correction and change the unsafe practice. “Now, you can take a picture of the unsafe condition, note orally or visually, and hit send and watch for the direction to correct the unsafe condition, if [the worker] hasn’t already fixed it,” Ward says. Vigor also uses diagnostic planning tools to keep the project on schedule and on budget. “We’re using [the planning tools] to de-

Alaska Business Monthly | June 2016 www.akbizmag.com

termine which workstation is falling behind on the schedule and it tells us where to make more workforce investment,” he says. Using modular construction is another way the company has reduced cost and sped up production. Building vessels panel by panel, with electrical raceways and pipes already in place in each panel, saves seven hours over traditional construction methods, Ward says. “We’ll be able to break even—maybe even earn a profit on these state ferries,” he says.

Big Names Make Up Customer Base Vigor Alaska Senior Projects Manager Albert Turner says the company keeps busy by servicing vessels for some of the major forces in the state economy. The Fishing Company of Alaska, based out of Dutch Harbor, had three rigs overhauled this winter, he says, and Icicle Seafoods had an unplanned repair handled in the company’s Seward drydock. The company regularly services Alaska Marine Lines and Crowley tug and barge vessels, he says, and works on Holland America cruise ships throughout the summer. “Sometimes we have to travel on them too and do repairs,” he says. Vigor also services US Forest Service camp barges and other vessels, Turner says,

A welder welds fuel tanks for one of the Alaska Marine Highway System Alaska Class Ferry Day Boats Vigor is building. The four-year project is set to be complete in 2018. Photo by Owen Kendig | Courtesy of Vigor Alaska

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June 2016 | Alaska Business Monthly

on Prince of Wales Island, and Ketchikan. The company also works with several local barge operators and other contractors as well, he says.

Photo by Owen Kendig | Courtesy of Vigor Alaska

State Partnership Paying Off

A marine worker measuring against blueprints at the Vigor Alaska shipyard in Ketchikan.

and the company handles maintenance for the Alaska Inter-Island Ferry Authority, which offers daily service between Hollis,

The Ketchikan Shipyard, as it was originally called, was built by the Alaska Department of Transportation for $30 million in the 1980s in part to provide space for maintaining Alaska Marine Highway System vessels. The department transferred ownership to AIDEA (Alaska Industrial Development and Export Authority) in 1997, and an operating agreement between AIDEA, the city of Ketchikan, Ketchikan Public Utilities, and Ketchikan Gateway Borough was created, giving the operational control of the shipyard to Alaska Ship and Drydock. Alaska Ship and Drydock sold to Vigor in 2012, but the facilities are still owned by AIDEA. Ward says the relatively recent addition of a second drydock to the company has been vital to making the company succeed. The original company opened with a single floating 430-foot drydock. Ward says having a single drydock limited the company’s ability to grow. The company applied in 2006 for a $10 million grant to allow it to build the second

drydock, which was designed to service commercial vessels up to 225 feet long. It won the competitive grant, and the new drydock became a reality. Since that time, Ward says the company has grown rapidly. “The drydock is making us commercially viable. There have been tens of millions of dollars of new investment that have occurred as a result of the state’s investment in the drydock,” he says. The company has the largest drydock and the largest workforce of any shipbuilding or ship repair company in the state, Ward says. A new, state-of-the-art, seventy thousand-square-foot ship assembly hall was built in 2012, followed by construction of a $10 million module fabrication shop built adjacent to the assembly hall. Vigor is holding to the commitment Alaska Ship and Drydock made twenty years ago, Ward says. “We said we will build commercially viable infrastructure and also develop a competitive workforce,” Ward says. “Vigor is helping develop practices that are working. As the maritime industry evolves, so will our practices.” R Rindi White is a freelance journalist living in Palmer.

Alaska Business Monthly | June 2016 www.akbizmag.com

special section

Transportation

A Condor flight, direct from Frankfurt, Germany, is touching down on a naturally landscaped, fireweed-edged runway at Ted Stevens Anchorage International Airport.

Seasonal Airlines Boost Visitors Plane-spotting results in more diverse tail fins By Julie Stricker

or much of the year, plane-spotting at Alaska’s two largest airports can be a little repetitious. Only a handful of airlines fly in and out year-round. But when tourism season rolls around, the designs on the tail fins get a lot more diverse. In Anchorage, for instance, Alaska Air, Delta Airlines, United Air Lines, and American Airlines fly in to Ted Stevens Anchorage International Airport year-round. Usually in May, they’re joined by airlines such as JetBlue Airways and Sun Country Airlines, which fly to the West Coast and 70

Minneapolis. Air Canada, Condor, Icelandair, and Yakutia Airlines offer seasonal links to other countries, while China Airlines operates seasonal charters. The addition of new domestic airlines, such as JetBlue, has helped drive down ticket prices to some destinations. Its inaugural flight to Anchorage, for instance, included $149 one-way tickets from Anchorage to Long Beach, California. Starting with its May 2016 service, it offered $78 Anchorage-Seattle flights. It also had a flash sale offering $30 tickets between Anchorage and Seattle or Portland.

More Direct Routes to Alaska

The bulk of the seasonal passengers are tourists, which provide a huge economic impact to the city, says Julie Saupe, CEO of Visit Anchorage. Overall, visitors spend about $1.8 billion statewide, with $367 million of that being spent in Anchorage.

Roughly 40 percent of travelers to Anchorage arrive by air in the summer months. Saupe and her counterparts at Explore Fairbanks have worked hard over the past several years to entice new airlines to put Alaska cities on their routes. That gives more people a direct route to Alaska, and it can also provide new destinations for Alaskans. “Every airline brings along its own customer base, people who are loyal to it,” Saupe says. “Most airlines might also bring along a unique new direct gateway city.” Icelandair is starting direct seasonal service between Anchorage and Reykjavik-Keflavik. It’s an airline and destination Visit Anchorage has been aggressively pursuing for the past five or six years, Saupe says. It took many meetings with airline officials over the years as Visit Anchorage demonstrated the demand for the Alaska travel among Icelandair’s northern European markets.

Alaska Business Monthly | June 2016 www.akbizmag.com

The growth in the number of seasonal airlines is reflected in a growth in visitor volume. According to a study for the state of Alaska by McDowell Group in February 2016, visitor volume increased 7 percent between 2014 and 2015, 13 percent of which was attributable to a 13 percent growth in air volume. In Fairbanks, visitor traffic rose by 6 percent. Much of that was due to the seasonal return of Air North, which transports Holland America cruise tour passengers between Fairbanks and Dawson City.

Growing International Travelers

Condor Airlines, which offers seasonal service both in Anchorage and Fairbanks, makes up 66 percent of all international air travelers; Icelandair accounts for 27 percent. Fairbanks International Airport is the smallest city in the United States with nonstop flights to Europe, provided by Condor. While most seasonal airlines cater mostly to tourists, Condor flights between Fairbanks and Frankfurt, Germany, usually have a mix of tourists and locals, according to Deb Hickok, CEO of Explore Fairbanks. It took the community to bring Condor to Fairbanks, however. According to Explore Fairbanks, one of the key factors in the German airline’s decision to enter the

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Fairbanks market was the willingness of the owners of Chena Hot Springs Resort, Connie Parks-Karl and Bernie Karl, to underwrite guarantees for a number of seats on each flight, which included a package Alaska/Yukon tour. The flights got underway in 2001 and all guarantees were met until the September 11 terrorist attacks which resulted in the last three seasonal flights being canceled. The following year, sixteen tourism and airport-related businesses agreed to underwrite Condor’s service to Fairbanks. That time, and since then, the flights were successful. Overall, Condor has transported more than fourteen thousand passengers between Fairbanks and Europe. While Explore Fairbanks generally focuses on bringing passengers to Fairbanks with Condor, the organization also does some outbound marketing to fill the seats leaving Fairbanks. “That’s an exception to the rule of what we normally do,” Hickok says. Many of the seasonal flights to Fairbanks, which is served year-round by only by Alaska Air and Delta, operate in the winter instead of the summer season. Over the past decade winter tourism in Fairbanks has boomed because of its reputation as premier spot to view the aurora borealis, especially among Asian tourists.

The push started in winter 2000, when tourism industry leaders in Fairbanks set a goal to bring Japanese tourists on direct flights to Fairbanks to see the aurora. It takes a collaborative effort on the part of tourism officials, tour operators, airport officials, and community leaders to bring a new airline to Alaska, Hickok says. Fairbanks was already an aurora destination in the Japanese market, but tourists had to fly into Fairbanks via Los Angeles or Seattle, which didn’t give them much time to spend in Fairbanks. Explore Fairbanks approached Japan Air Lines and All Nippon Airways, and Japan Air Lines showed the most interest. Over the next years, they hammered out the details. “Our then-director of tourism went to Japan one year seven times,” she says. Finally, the flights were approved and more than 2,200 Japanese travelers visited Fairbanks during the winter of 2005-2006. Late summer flights brought another 2,150 Japanese visitors. “It has been very successful, and it’s had a ripple effect,” Hickok says. “[Japan Air Lines] sort of set the stage for us and that was a really hard-won flight. It really positioned us as an aurora destination in the Asian market. Now we have a much more dynamic market.”

June 2016 | Alaska Business Monthly

Each JetBlue aircraft has a unique name and tailfin. The carrier flies seasonally to Alaska. © JetBlue Airways

Charter Flights Increase

Charter flights from several international destinations target Anchorage and Fairbanks. “It’s actually getting more complicated,” Hickok says. “More and more airlines.” Japan Air Lines had some internal issues and dropped the Fairbanks flights. However, demand was still strong in Japan, and increasing in other parts of Asia, so Uzbekistan Airways partnered with Japanese tour operators in December 2015 to bring tourists from Tokyo, Osaka, and Nagoya to Fairbanks. China Airlines also launched charter flights from Taipei to Fairbanks in Decem-

ber 2015, bringing nearly nine hundred people in three flights to view the aurora. The direct flights took only nine hours. “Direct air access is an important component of our success as a destination, especially when working with a rapidly expanding Greater China market,” Hickok said in a news release announcing the flights. “These charters, combined with recent developments in year-round connectivity from Asia via both Alaska Airlines and Delta Airlines, boost Fairbanks’ accessibility to the China market.” Charter flights from Asia are also popular during the shoulder season in late

spring or early autumn. Those travelers have more time than most winter visitors, Hickok says. The airlines, tour operators, Visit Anchorage, Explore Fairbanks, and the Alaska Railroad all work together to make the logistics work out. Typically, Hickok says, a group will fly into Anchorage and the visitors will ride the train to Fairbanks. A second flight will drop off a group in Fairbanks and pick up the group that originated in Anchorage. The Fairbanks group rides the train to Anchorage and the process repeats itself. “They are very concentrated efforts, usually very collaborative efforts,” Hickok says. “I think that’s the key.” Explore Fairbanks’ Director of Tourism Scott McCrea says meetings with tour operators in Taiwan and mainland China focuses on the aurora. “The recognition is growing in that market that we are the best place on Earth to see the aurora,” McCrea says in a media release. “Even in conversations where there has been a language barrier, the word ‘aurora’ sparks immediate interest.” R

Julie Stricker is a journalist living near Fairbanks.

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Delivering Efficiency Through Connectivity

www.AnchorageAirport.com 72

Alaska Business Monthly | June 2016 www.akbizmag.com

special section

Transportation

Photos © Alaska Department of Transportation and Public Facilities

Trucks head south out of Deadhorse on the Dalton Highway June 5, 2015, after it reopened.

Trucking Slows on the Dalton Highway Freight corridor is Alaska’s ‘road to the bank’ By Heather A. Resz

ost Alaskans never drive on the 415-mile Dalton Highway, the supply line for the North Slope oil fields carved out of the wilderness by Alyeska Pipeline Service Company between April and September 1974. The Dalton Highway heads north from Mile 73 of the Elliot Highway, crossing the mighty Yukon River at Mile 56, the Arctic Circle at Mile 115, and passing the farthest north spruce at Mile 235 before reaching Atigun Pass at Mile 244 in the Brooks Range. Beyond the Continental Divide there, the highway stretches north toward the horizon across 170 flat, tree-less miles of tundra before terminating in Deadhorse, on the edge of the Arctic Ocean. Also known as the Haul Road, it is one of two roads in North America that extends above the Arctic Circle and is the sole ground transportation link to the North Slope oil patch. 74

Year-round shippers like Alaska West Express, Carlile Transportation, Lynden Transport, and Sourdough Express haul millions of pounds of freight for North Slope customers—everything from food and fuel to oil field modules and heavy equipment. Although the Dalton Highway provides access to Yukon Flats National Wildlife Refuge, Kanuti National Wildlife Refuge, Gates of the Arctic National Park, and the Arctic National Wildlife Refuge, Alaska Department of Transportation and Public Facilities maintains the road as a supply route for the oil fields. “A lot of folks don’t understand the significance of that road,” says Aves Thompson, executive director at Alaska Trucking Association. Deadhorse is the main oil field work camp for the North Slope. By state counts, a handful of people live there year-round—but the rest of the oil field’s thousands of employees arrive on jets from Anchorage and Fair-

banks to work their scheduled fourteen-day, or longer, shifts before flying home. Besides human power, everything else needed to produce more than 550,000 barrels of oil a day is shipped north hundreds of miles by rail and road. Cost and time considerations determine how each load is shipped north, Thompson says. Some loads are broken down in Fairbanks and consolidated into new loads and hauled the last 498 miles to Deadhorse by trucking companies such as Lynden, Carlile, and Sourdough. Other loads are oversized and must traverse the whole distance by road. Thompson says occasional flooding or snowstorms that close the Haul Road serve as good reminders that in Alaska, this is the “road to the bank.” “When they start flying fuel in, moving fuel across the tundra on rolligons, then you start to realize how important that freight

Alaska Business Monthly | June 2016 www.akbizmag.com

Dalton Highway traffic June 5, 2016.

Traffic resumes on the Dalton Highway on June 5, 2015.

The first trucks head south on the Dalton Highway, June 5 2015.

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June 2016 | Alaska Business Monthly

Dalton Highway flood response, June 4, 2015.

corridor really is,” he says.

‘If you got it, a truck brought it’

While some communities in rural Alaska are not accessible by road, for others, trucking is the primary supply line, including for the North Slope oil fields. “In our industry, we say, ‘If you got it, a truck brought it,’” Thompson says. Alaska Trucking Association represents nearly two hundred member companies, from motor carriers and private carriers to parts stores, truck dealers, and insurance companies. Most of the two hundred vehicles that travel the Dalton Highway daily are trucks, according to state Department of Transportation and Public Facilities numbers. An average of 71,918 vehicles with average Gross Vehicle Weights of 64,165 pounds passed the DOT Weigh in Motion site on the Fox Highway in the last three years. Tour buses and private vehicles have been allowed on the road since 1994, though mostly between May and September. Independent travelers on the Dalton Highway are advised to carry extra fuel as 76

the highway also features the continent’s longest section of roadway without fuel or other basic services, 239 miles. Along the Dalton Highway gas is only sold at the Yukon River Crossing at Mile 56; at Coldfoot at Mile 175; and in Deadhorse, Mile 414. The Dalton Highway is part of the DOT’s Northern Region, a 370,000-square mile swath of the state from Barrow to Cantwell and Nome to Valdez that includes about 3,500 miles of roads, of which 48 percent are paved, 52 percent are unpaved, and 70 percent are part of the National Highway System. Paul Friese, vice president of Alaska Sales for Lynden Transport, says improvements to the Dalton Highway from Mile 401 to Mile 414 last summer that raised the roadbed about seven feet have been enough to stave off so far this year the high water that closed the Dalton Highway twice in 2015. “That created quite a mess,” he says regarding a pair of flooding episodes that closed the road for twenty-eight days and cost $17 million to repair. On average, Lynden Transport and its sister company Alaska West Express haul more than 4 million pounds of freight in

ninety to one hundred trips along the Dalton Highway each week. DOT&PF spokesperson Meadow Bailey says $135 million in improvements begun last year will lift the last twenty miles of the Dalton Highway eight to ten feet in places. Last year crews raised the grade five to eight feet between Mile 397 and Mile 414. This summer crews will raise the section from Mile 397 to Mile 394, she says. DOT&PF crews began working in late January to prevent flooding this season, building a gravel berm five feet high and three miles long and digging fifteen miles of trenches in the ice on the east side of the road to facilitate the flow of water from the Sag River, Bailey says. “It’s been an ongoing effort to keep the overflow away from the road,” she says.

Haul Road Shipping Decreases

Carlile spokesperson Nance Larsen says the company generally sees about a 40 percent decrease in volume after the ice road closes each year. This year shipping is down roughly 70 percent, and the decline arrived earlier in the season, she says.

Alaska Business Monthly | June 2016 www.akbizmag.com

First trucks go south Mile 413 from Deadhorse on the Dalton Highway, June 5, 2015.

Photos © Alaska Department of Transportation and Public Facilities

“It’s directly related to the economy, the low price of oil per barrel, and reduced North Slope project volume from a critical industry that supports approximately one third of Alaska jobs,” Larsen says. “We have moved more fleet vehicles off the Slope in the past couple of months than we did all of last year.” Friese says the story is the same at Lynden. “Our Haul Road business is significantly off this year,” he says, noting that a large portion of the freight Lynden moved in April was southbound. Though Lynden doesn’t expect that pattern to hold, he says. “We are pulling equipment out for customers who shut down projects,” Friese says. “This is a one-time movement.” Less total freight also means fewer infield deliveries for Lynden drivers, he says. During peak times, as many as twenty drivers deliver freight to customers around the North Slope oil fields. These days, just a handful of Lynden drivers are still making in-field deliveries, Friese says. Lynden has helped supply Alaska since the 1950s when it pioneered scheduled serwww.akbizmag.com

June 2016 | Alaska Business Monthly

vice up the Alaska Highway to Fairbanks, before the road was paved.

‘Oil prices have gone down, and our prosperity with it’ Aves Thompson worked at DOT&PF in the 1980s during the last period of sustained low oil prices. But things are different for Alaska this time, he says. Oil production and prices are both down, yielding a $4.1 billion state operating budget deficit this year with shortfalls in the forecast continuing into the middle of the next decade. “When we have gotten to the precipice before, there has always been something to come along to save us,” Thompson says. “I don’t see the cavalry coming to save us this time.” So far, members haven’t begun idling staff, but that may be in the cards three, four months down the road, he says. “I don’t think we have the luxury of looking forward to $100 oil again,” Thompson says. “Oil prices have gone down, and our prosperity with it.” The future of Alaska’s oil industry was top of mind at the Alaska Trucking Association’s 58th Annual Meeting and Trade Show April 28, Thompson says. He says several legislators were invited to attend to “help us understand what the political climate is.” “We are hopeful that oil prices will turn

and that the Legislature and the governor can solve our budget crisis,” Thompson says. Usually, the group’s legislative priorities have something to do with funding for upgrades and maintenance to the Dalton Highway, he says. But not this year. Alaska Trucking Association’s legislative priorities this year are a sustainable financial future, a gas line, and lobbying for federal dollars to be used for national highway projects.

Safety is Job Number One

No doubt trucking companies, like all the other branches of the oil services support industry, are feeling the economic pinch of sustained low oil prices. But that doesn’t change their commitment to move even the most difficult loads safely, they say. “Safety is our number one commitment for customers and employees,” Larsen says. “We want everyone to go home safely.” Since joining the Carlile team in 2014 she says she’s begun collecting stories of some of the company’s most difficult, and satisfying, deliveries. “The heart of Carlile is safely moving things people say can’t be moved,” Larsen says. “It’s really incredible some of the things they’ve done.” She shared a story about a recent oversized load that was too big to fit through

some of the bridges along the route. Carlile’s team put their heads together and came up with a plan to get the job done that required designing new equipment and modifying some existing gear, she says. “It’s a testament to our drivers, mechanics, and engineers who figure out how that was going to move, and moved it safely through not only difficult road conditions but inclement weather, as well,” Larsen says. Friese says it’s a special class of driver who works on the Dalton Highway. Many, like Lynden Driver of the Year John Schank, have operated on the road for decades. “No one knows it better than John,” Friese says. Schank also was the driver picked to haul the Capitol Christmas Tree from Alaska to Washington, DC, in 2015. Friese says there is a lot of camaraderie among drivers on the Dalton Highway. They hold each other accountable for unsafe driving, he says. “They all watch out for each other,” Friese says. “They watch out for everybody.” R

Heather Resz lives in Wasilla. She’s told Alaska’s stories for nearly twenty years.

Alaska Business Monthly | June 2016 www.akbizmag.com

special section

Transportation

New Trucking Facilities

Photo by John Gomes | Courtesy of TrailerCraft/Freightlinier of Alaska

The new TrailerCraft/Freightliner of Alaska facility off C Street in South Anchorage is keeping busy with work in all fourteen bays doing double shifts.

South Anchorage sees more expansion, investment By Rindi White

hen size constraints of a business location block expansion and better service, perhaps it’s time to make an investment in the future. This spring, TrailerCraft/Freightliner of Alaska completed their new, thirty-fivethousand-square-foot facility located off C Street south of Dimond at 222 West 92nd Avenue in Anchorage, about three miles away from their former location at the intersection of New Seward Highway and Dowling Road. The new facility, including all new equipment and furnishings, came in at a cost of just under $10 million. The process took about four years of work, Owner Lee McKenzie says, but it’s already proving well worth the time and monetary investment. Much of that initial work was done in the planning phase. Construction of the facility took less than a year. McKenzie says he and his wife, Paulette McKenzie, a dealer principal with the company, selected MCN Construction, Inc. as their contractor and were very happy with the result. TrailerCraft/Freightliner of Alaska opened for business in the new facility on March 22. Since opening the doors, Lee McKenzie says 80

the service work has doubled in volume, with all fourteen bays being used on both shifts. “The key to this facility is it is built for the diversification of our business. One of our main goals and focus for the new facility was to pick up any efficiency available to better serve our customers,” McKenzie says.

Growing Pains

TrailerCraft/Freightliner of Alaska is a franchise commercial truck dealership with a lot of supporting businesses. They’re a dealer for Freightliner trucks, Western Star trucks, Sprinter vans, and Blue Bird buses. In addition, they are the Western and SnowEx snow plow distributors for the state. They also service what they sell and are able to service other brands. McKenzie says the company started as TrailerCraft, an after-market parts company, in 1969. The company has sold commercial trucks for nearly thirty years and has held the Blue Bird bus franchise since 1979. “The buses are utilized on the North Slope to transport workers to and from the oil fields and for transporting visitors through Denali National Park,” McKenzie says. Diversification is TrailerCraft’s underlying motto, and it’s helped the company succeed even in lean times. “We’re not reliant on the oil field. When that slows down, our tourism market is booming,” McKenzie says. Sprinter vans and Blue Bird buses are heavily used by the visitor industry, he says. Because more than 80 percent of all

diesel powered recreational vehicles are built on Freightliner chassis, the company sees a lot of traffic from RV customers getting tune-ups after traveling the Alaska Highway through Canada. In short, all that diversity was tough to manage on their former three-acre site, with a twenty-thousand-square-foot facility. The previous facility had a total of eight service bays. “We did a lot of outside repairs,” he says. McKenzie says they had fourteen conex shipping containers to store parts and supplies. “We couldn’t have done anything to expand,” he says. “Our shop was one of our biggest obstacles.” The new facility has fourteen bays, each of which has access to a 7.5-ton overhead crane. They have two 15,000-pound rotary lifts and the most advanced alignment machine in the state—the only one certified to work on Sprinter vans. The fourteen conex containers have been replaced by an eightthousand-square-foot parts warehouse, complete with pallet-rack shelving and highdensity bins so they can keep more parts on hand and easily available for repairs. “We’re able to do everything that we were able to do at our old facility, but we’re able to do it better now and more efficiently,” McKenzie says.

Building in New Efficiencies

MCN Construction, Inc. built TrailerCraft’s new facility with energy efficiency in mind.

Alaska Business Monthly | June 2016 www.akbizmag.com

The building envelope is insulated metal panels, installed horizontally or vertically depending on the design feature desired, MCN Owner Mark Nystuen says. The preinsulated panels have an R-value of 24. The roofing system, a heavy rubber over a rigid insulation, is also energy efficient. Inside the building, Nystuen says, the heating and ventilation system has programmable controls that adjust automatically when the building is not occupied. Light fixtures, both interior and exterior, are all LED, saving on electricity. Rooms are equipped with motion sensors to conserve energy when unoccupied. Parking lot lights are on photovoltaic cells, adding to the energy efficiency.

and parts availability,” Forbes says. “At that point, on the same day you have a problem you now know what you’re dealing with.” Without the express assessment service, questionable problems such as a flagged sensor might sit for hours until a mechanic can take time to diagnose the issue, losing a day of service immediately and sometimes a whole week while parts are ordered and time is made for repairs. Forbes says the express assessment service and the fact that the shop is open until midnight are two key reasons why Shred Alaska has been a loyal TrailerCraft/ Freightliner of Alaska customer for nine

years. TrailerCraft relies on Shred Alaska to do its document shredding and the partnership between the two businesses led Forbes to select TrailerCraft as its customer of the month in April 2016. “We drop a truck off at 2 in the afternoon, after having used it for the day, and they’re able to complete, in a quality manner, the service we need while we’re home having dinner and sleeping,” he says. “We’re on the road in the morning and we have no downtime.” R Rindi White is a freelance journalist living in Palmer.

Construction by Consensus

McKenzie has been working at TrailerCraft for more than thirty years. He got his start there sweeping floors while he was still a senior in high school. McKenzie and his wife bought the company in 2008. “The company mesmerized me. There was never a dull day,” he says. The partnership with Sprinter vans influenced some of the choices in building the new facility, McKenzie says. “The Mercedes clientele requires pretty high-end service. What we’ve done is we’ve adapted to that. Most dealerships will have some kind of a wash bay,” he says, so they added a self-contained twenty-foot by fiftyfoot wash bay. “We built it for us and for the need of taking care of our customers—and we’ve found it’s a profit center,” McKenzie says. The bay is booked solid. McKenzie and his wife traveled to various Freightliner dealerships in the Lower 48 in an effort to incorporate the most efficient designs. They brought their ideas to MCN, who, with architect Thomas Faulkenberry, translated them into a preliminary design. The McKenzies took the design process a step further and distributed it to their employees, asking them what they would change. “Some of their ideas were brilliant and some were way out there,” he says. The choices that made sense financially were incorporated into the final design.

Building a Sustainable Alaska pile foundation installation communication tower construction bulk fuel system installation wind turbine installation power generation construction civil construction

Servicing the Customer

One feature that’s proven important to customers is the Express Assessment bay. Robyn Forbes, owner of Shred Alaska, says the express assessment service is really helpful to his business. If a sensor light comes on in one of the company’s six shredding trucks or their three fleet vehicles, it could mean the start of a week of downtime. The express assessment speeds the process along. “They get a truck in immediately and have a two-hour turnaround with an estimate www.akbizmag.com

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special section

Transportation

ALASKA RAILROAD PRIORITIES

Photo © Judy Patrick Photography | Courtesy of Alaska Railroad

At Alaska Railroad’s Whittier barge slip, a freight train begins loading containers from the Alaska Rail-Marine Service barge that travels between the Port of Seattle and Whittier.

By Julie Stricker

t’s shaping up to be a relatively quiet year for the Alaska Railroad Corporation, in terms of large projects, but the railroad is looking ahead with plans to expand and diversify both its reach and its revenue sources. Although the railroad is owned by the state, it operates as a private business and receives no state money for operations, says spokesman Tim Sullivan. “We run our operation in a way to be self-sufficient,” he says. “What affects us are world markets for coal, for diesel prices, and those sorts of things.”

Tumultuous Years

The railroad is coming off a couple of tumultuous years. In May 2014, the Flint Hills Resources North Pole Refinery, a major railroad customer, shut down. All southbound petroleum transportation stopped, while some northbound shipments increased. Overall, the total volume is only about a fifth of peak, according to its 2014 annual report. Despite that, the railroad turned a higherthan-expected net income, $14.1 million, exceeding its original budget by $5.5 million. Starting in 2010, increased oil and gas exploration on the North Slope led to an uptick in the Alaska Railroad’s rail and barge sector. Nearly 90 percent of the freight hauled via the Alaska Marine Highway system is oil and gas related, the report states. From 2012 to 2014 shipments of pipe alone increased 62 percent. “That was great for us because we were moving a lot of equipment such as pipe and 82

drilling mud,” Sullivan says. In 2015, however, low prices for coal and oil threw another curve at the state-owned railroad; the current low oil prices and uncertainties in the exploration tax credits offered by the state resulted in a precipitous slowdown in freight. On top of that, in fall 2015, Usibelli Coal Mine announced it would halt coal exports for the remainder of the year. Usibelli, the only operating coal mine in Alaska, relies on the railroad to ship the coal from Healy to the loading docks in Seward. As of April, it was unclear when shipments might start anew, although Sullivan said “it is my understanding we will have ships in to Seward this summer.” Overall in 2015, the railroad hauled 4.29 million tons of freight, most of which was gravel, coal, and petroleum-related products. Amid the uncertainty, the railroad has tightened spending and looked for ways to expand and diversify its revenue stream, while maintaining a focus on safety, the annual report states.

Courting New Business

It courted new business in 2015, such as moving foam insulation for a highway project, shipping contaminated soil out of Interior Alaska for an environmental company, and hauling utility poles to an installation site. It also focused on its real estate holdings, increasing revenue 4 percent in 2015. Passenger revenue also increased, helped in part by incorporating a rail leg to the travel plans of Chinese tour companies and independent travelers. Overall, net earnings for 2015 totaled

$10.87 million. Its 2016 budget is $9.3 million. This summer, the railroad is looking forward to a strong tourism season, Sullivan says. Last year, 475,000 people rode the rails, which total 656 miles through southcentral Alaska to the Interior. “We’re hopeful that we’ll see a bump up on that,” he says. “That may be the only good thing we’re seeing from low prices is that we’re seeing a lot of people traveling.” In April, crews were taking advantage of the early thaw to get a jump on annual maintenance projects such as replacing ties and rails. Work is also ongoing in the Nenana River canyon just north of the entrance of Denali National Park and Preserve. “It’s a treacherous area,” Sullivan says. “We’re always doing maintenance there.” With the declines in freight traffic, the railroad is boosting its passenger business. The railroad offers six passenger trains with trips of various lengths, the most popular of which is the Denali Star train, which travels from Anchorage to Fairbanks with stops in Talkeetna and Denali National Park and Preserve daily in the summer. In the winter, the railroad’s weekly Aurora Winter Train runs between the two cities, although the railroad has expanded that route to include midweek runs, as well. The railroad has a fleet of forty-four passenger cars and is upgrading and refurbishing some before the season begins but has no plans to add any more at this time, Sullivan says. In 2015, it updated the branding on its trains and ramped up social media outreach to the community. More than five

Alaska Business Monthly | June 2016 www.akbizmag.com

thousand people turned out for the Fairbanks open house. During the Alaska State Fair, hundreds of people took advantage of $8 to $12 fares for a round trip ride between Anchorage and Palmer. In honor of the National Park Service’s centennial, the Alaska Railroad is rolling out an eight-day tour package this summer that includes visits to four national parks in Alaska. Travelers will travel the entire length of the main line, visiting Kenai Fjords National Park and Denali National Park and Preserve. Side trips will include bear watching at Lake Clark National Park and Preserve and a flight-seeing trip over the Arctic Circle en route to Gates of the Arctic National Park and Preserve.

Operations and Maintenance

In the long term, the railroad is looking at ways to expand operations. One of its priorities is the installation of the Positive Train Control system, which is mandated by the federal government. The system is designed to automatically stop trains to prevent accidents. Through a combination of bonds and grants, the Alaska Railroad expects to have the $37 million program fully funded before the 2018 deadline, the report states. In 2015 Alaska Railroad also became the first railroad in the nation to get approval to move liquefied natural gas in ISO

containers, an agreement that dovetails with Fairbanks and North Pole’s quest for cheaper, cleaner energy. In its draft Alaska State Rail Plan released earlier this year, the railroad notes that the economic downturn is pinching its ability to earn enough revenue to cover its operations and maintenance. It champions several extensions and improvements that will increase opportunities in the long term. The public comment period ended on March 31. Among the projects is the thirty-twomile Port MacKenzie rail spur, which would connect the port to the Alaska Railroad at Willow. The $303.5 million project has stalled, needing another $119.5 million in funding for completion. The railroad is in the process of developing a master plan for its Seward-based assets. Studies are continuing this year with the master plan expected to be released in 2017. The draft contained both long- and short-term project recommendations. The railroad recommends all National Highway System at-grade crossings be improved, as well as the construction of a Cantwell intermodal facility and relocating rail lines in Fairbanks and Nenana. It also backs extensions to Livengood, the Yukon River, and Greely Air Force Base in Delta, as well as an Alaska-Canada rail link.

In Anchorage, several at-grade crossings are highlighted for improvements, as well as upgrades to Ship Creek facilities. The Railroad recommends further research into rail commuter service between Palmer, Wasilla, and Anchorage, a proposal that has been discussed for thirty-five years. Improvements to the Fairbanks freight intermodal rail yard are sorely needed, as well. The existing rail yard does not have enough space to handle containers and trailer on flatcar traffic, creating bottlenecks. The draft recommends a comprehensive, long-term study to identify the problems and come up with potential solutions. Despite the economic uncertainty, the railroad’s assets continue to grow, totaling $1.11 billion at the end of 2015. In his statement in the 2015 report, Alaska Railroad President and CEO Bill O’Leary stated, “Combined with legendary experience, the railroad is well-equipped to serve many more patrons and partners—whether they be new and existing customers who wish to cultivate a business with a long-term land lease, affordably ship bulk cargo by rail, or safely travel between Southcentral and Interior regions.” R Julie Stricker is a journalist living near Fairbanks.

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special section

Transportation

STIP Priorities Federally funded transportation projects across Alaska By Tasha Anderson

ederal statues require that states have a four-year program for transportation system preservation and development in order to be able to use federal transportation funding. The Alaska Statewide Transportation Improvement Program, or STIP, fulfills that requirement. The current iteration is the 2016-2019 STIP. Below is a list of the largest projects with construction planned for FY16. As a note, the costs listed for each project are amounts for FY16 and may not be the total cost of the project.

Alaska Marine Highway System

Haines Ferry Terminal End Berth Facility—$19 million: The purpose of this project is to modify the existing Haines ferry terminal to accommodate end loading of AMHS ferry vessels. Funding is for construction. AMHS Tenakee Ferry Terminal Improvements—$10 million: Replace all existing mooring and transfer bridge structures. Funding is for construction.

Central Region

Wood River Bridge Approach Roads—$8.5 million: Construct road between Aleknagik (North Shore) with the Dillingham-Aleknagik Road. Funding is for construction and utilities. Anchorage – Glenn Highway/Muldoon Road Interchange—$48.5 million: Reconstruct interchange at Muldoon and Glenn Highway. Funding is for construction and utilities. Seward Highway: Dimond Boulevard to Dowling Road Rehabilitation—$77.8 million: Project will add lanes to the Seward Highway and connect Sandlewood Drive with Lore Road. Funding is for construction and utilities. MP 75-90 - Ingram Creek to Girdwood Road and Bridge Rehabilitation—$156.5 million: Rehabilitate pavement and rehabilitate or replace the following bridges: Placer River Overflow #0627, Placer River Main Cross # 0629, Portage Creek #0630 & 84

0631, 20 Mile River #0634, Peterson Creek #0636, Virgin Creek #0638, and Glacier Creek #0639. Project may include road realignment, grade separations at Portage Valley road and the Alyeska Highway, passing lanes, and pedestrian accommodations, including improved curb ramps to meet ADA standards as required according to the Alaska Preconstruction Manual. Funding is for construction and utilities. Downtown Streets Reconstruction & Rehab—$7.36 million: Realign, reconstruct and rehabilitate approximately 0.61 miles of major collector that includes three streets forming a loop in the downtown area of Dillingham - Main Street from City Hall to the intersection with D Street; D Street north to 2nd Street back to City Hall. Funding is for construction and utilities. MP 60-79 Skilak Lake Road to Sterling Rehabilitation and Passing Lanes—$70.5 million: Resurfacing, minor widening, and passing lanes as needed. Funding is for construction and utilities. Kalifornsky Beach Road MP 16-22.2, Paving Rehab & Signalization—$12.6 million: Repave approximately 6.2 miles of K-Beach Road from Sterling Hwy to Bridge Access Rd. Additional work will include signalization of Gaswell/K-Beach intersection and plumbing for a signal at Ciechanski/K-Beach intersection. Funding is for construction and utilities. Parks Highway MP 99 to 123.5 - Resurfacing—$35.8 million: Resurface the Parks Highway from MP 99 to 123.5. Project is one of the construction phases of the parent project Need ID 28291. Funding is for right of way, construction, and utilities. Knik Goose Bay Road Widening: Vine Road to Settlers Bay Drive—$34.4 million: Knik-Goose Bay Road Safety Corridor project development activities for safety corridor including the rehabilitation of Knik-Goosebay Road between Vine Road and Settlers Bay Drive. This is a state funded project, separate from, but coordinated with, the federally funded project on KnikGoosebay Road from Centaur Avenue to

Vine Road (project Need ID 24596). Funding is for construction and utilities. Parks Highway Bridge Replacement: Montana Creek and Sheep Creek—$25.49 million: Replace Bridge 215 at Montana Creek and Bridge 213 at Sheep Creek on the Parks Highway. The new bridges will have top widths to match the existing roadway width at the time of construction. Pedestrian facilities will be included if new bridge construction conflicts with existing pedestrian bridges. Funding is for design, right of way, construction, and utilities.

Northern Region

Dalton Highway MP 362-379 Reconstruction—$37.5 million: Reconstruction including widening, spot repair, and resurfacing of 17 miles of the Dalton Highway near Deadhorse (This is associated with NID 22481, 29450, 29451). Funding is for construction. MP 1309 Tok River Bridge Replacement—$12.28 million: Replace the Tok River Bridge #0506 at MP 1309 on the Alaska Highway. The new bridge will have additional width and eliminate vertical clearance restrictions. Funding is for design and construction. Richardson Highway MP 235 Ruby Creek Bridge Replacement—$11.3 million: Replace the Ruby Creek Bridge #0594 at MP 235. New bridge grade and minor road realignment will address current flooding and sediment deposition problems. Funding is for construction. Parks Highway Bridge Deck Rehabilitation—$15 million: Rehabilitate the bridge deck of four bridges on the Parks Highway. Nenana River at Rex (#216), Tanana River (#202) and North Slough Tanana River (#201). Funding is for construction. Taylor Highway MP 64-67 Rehabilitation (Mosquito Fork to Chicken Creek)—$12.5 million: Rehabilitate, restore, and resurface approximately 4 miles of the Taylor Highway and replace Chicken Creek Bridge #1140. This is associated with NID’s: 6173, 29431, and 29432. Funding is for construction.

Alaska Business Monthly | June 2016 www.akbizmag.com

Dalton Highway MP 209-222 Reconstruction (Owen Creek to Chandalar Shelf)—$20 million: Reconstruction, including widening, spot repairs, resurfacing, realignment, and replacement of Nutirwik Creek Bridge No. 1515. (Also associated with NID 22476 and NID 30286.) Funding is for construction. Parks Highway MP 163-174 Rehabilitation (excluding R/R crossing at MP 169) —$21 million: Rehabilitate the Parks Highway between MP 163-174, excluding the railroad crossing at MP 169. This grade separated crossing will take place under Need ID 22331. (Also associated with this project is NID 22331). Funding is for construction.

Southcoast Region

Haines Highway Reconstruction & Chilkat Bridge Replacement MP 2125.3—$35.95 million: Replace bridge #742. Possible realignment of road on either side. Widen road to 36 feet. Straighten curves to meet a 55 mph design speed. Provide a long-term solution to debris flow problems near MP 23 (same issue at MP 19). Enhancements planned along the Chilkat River. This is one of three construction projects that fall under the Haines Highway Reconstruction, MP3.5-25.3 Design project. See Need ID’s 2152, 26330, and 27829. Funding is for construction and utilities. Juneau - Glacier Hwy Improvements: Twin Lakes to Wal-mart—$10.33 million: Resurface and improve Glacier Hwy from Glacier Highway Access Road to Twin Lakes. Improvements include: resurface entire length of roadway and address drainage needs, add pedestrian facilities on the water side of street, improve curb ramps to meet ADA standards as required according to the Alaska Preconstruction Manual, stripe bike lanes, determine crosswalk locations, install bus pullouts as needed, adjust intersections and driveways as needed, and address lighting needs. Funding is for construction and utilities. Ketchikan: Front, Mill, and Stedman Streets Reconstruction—$8.58 million: Reconstruction of the Front, Mill, and Stedman Street portion of the Tongass Highway from Grant Street to Deermont Street for a total of approximately 0.6 miles. Rehabilitate/replace pavement, and reconstruct sub-base, sidewalks and drainage structures as needed. Reconstruct/improve the intersections with Dock, Mission and Stedman Streets, including pedestrian crossings, traffic calming measures and stormwater drainage improvements, and improved curb ramps to meet ADA standards as required according to the Alaska Preconstruction Manual. Funding is for construction. www.akbizmag.com

Ketchikan - North Tongass Bridge Improvements, First Waterfall Creek and Second Waterfall Creek—$10.35 million: Replace or rehabilitate First Waterfall Creek Bridge (#0414) and second Waterfall Creek Bridge (#0415) to meet current standards for loading, width, and railing. Funding is for design, right of way, and construction. Ketchikan - Tongass Ave and Water St Viaduct and Tunnel Improvements—$17.6 million: This project will resurface pavement and construct improvements along South Tongass Highway (locally referred to as Tongass Ave and Water St) between milepoints 19 (Hoadley Creek Bridge) and 2.0, including the South Tongass Highway Tunnel. Some segments of pavement in good condition may not be resurfaced. In addition to resurfacing and other routine improvements, project design should consider improvements to pedestrian and bike facilities, lane configurations, tunnel lighting, Hoadley Creek Bridge (#725)and Water St. Viaduct (#727). Funding is for construction and utilities. Chiniak Hwy Erosion Response—$7 million: The purpose of this project is to implement solutions to problems related to erosion along the Chiniak Highway. Funding is for right of way, construction, and utilities.

Discover

Alaska Peninsula Highway Bridges—$7.4 million: Rehabilitate and/or replace bridges along the Alaska Peninsula Highway including Leader Creek Bridge (bridge # 400), Pauls Creek Bridge (bridge # 402), and King Salmon Creek Bridge (bridge # 399). Improvements may include widening the structures. Construction may be supplemented by IRR bridge funds. Funding is for construction and utilities. Skagway - Replace Capt. W. H. Moore Bridge Region: Southcoast—$14 million: This project will replace the Captain William Henry Moore Bridge (#1304) at approximately milepoint 9.5 on the Klondike Highway between Skagway and the Canadian border. Repave and widen roadway approaches to bridge as necessary. Funding is for design, right of way, construction, and utilities. In addition to a PDF version of the current Alaska 2016-2019 STIP, there is a 20162019 STIP Tabular Search and STIP Project View Map available online at dot.alaska. gov/stwdplng/cip/stip/index.shtml. R Tasha Anderson is an Associate Editor at Alaska Business Monthly.

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DIRECTORY Traffic resumes on the Dalton Highway, June 5, 2015. ÂŠ Alaska Department of Transportation and Public Facilities

AIR CARRIERS Company

Top Executive

Air Land Transport 11100 Calaska Cir. Anchorage, AK 99515 Phone: 907-248-0362 Fax: 907-248-2695

John Snead, Pres.

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 Airlines 4750 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-7200 Fax: 907-266-7229

Marilyn Romano, Reg. VP AK

AMS Couriers 5001 Arctic Blvd., Unit 2 Anchorage, AK 99503 Phone: 907-278-2736 Fax: 907-258-4293

Jaime Fink, Mng. Shareholder

Arctic Prism Helicopters 1415 N. Local 302 Rd., Suite A Palmer, AK 99645 Phone: 907-745-5775 Fax: 907-745-5787

David King, Pres.

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

Gary Porter, VP

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 PO Box 34006 Prudhoe Bay, AK 99734 Phone: 907-685-1700 Fax: 907-685-1798

Tim Cudney, Dir.

Desert Air Transport 4001 Old Int'l Airport Rd. Unit #9 Anchorage, AK 99502 Phone: 907-243-4700 Fax: 907-243-4705

Dennis Gladwin, Pres.

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

Elliott Neal, VP AK

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

Robert W. Everts, Pres./CEO

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.

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

Dale Shaw, Managing Dir.

AIR CARRIERS

COMPANY

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WORLDWIDE\AK EMPLOYEES

Services

SERVICES

1976 1976

67 67

Air Land Transport has been serving Alaska's transportation needs since 1976. We provide LTL and Full Load trucking services to many destinations within the state. We have the knowledge, fleet, and personnel to deliver your freight efficiently and economically.

1969 1969

32 5

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

1932 1932

15,200 Alaska Airlines and its sister carrier, Horizon Air, together, provide passenger and cargo 1,825 service to more than 100 destinations in Alaska, Canada, Mexico, Hawaii, Costa Rica, and the Lower 48.

1964 1964

12 12

Specializes in Route and On-Demand Same-Day Deliveries in Alaska. Provides Transportation, Warehousing, and Logistics solutions for the Medical, Legal, Telecommunications, and Financial industries. Open 24/7/365.

1998 1998

10 10

Helicopter charter, Survey, Oil & Gas Support, Government Contracting.

1993 1993

20 20

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

2003 2003

650 15

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

2012 2012

8 8

The Deadhorse Aviation Center is Fairweather, LLC's multi-modal aviation facility designed to meet the needs of 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.

2000 2000

4 4

We transport cargo directly from Anchorage International Airport to more than 200 rural communities in Alaska.

1948 1948

1,000 Founded in Alaska in 1948, Era not only serves the oil and gas industry in Alaska, but 150 provides services for state and government business, executive charter services, flightseeing tours, environmental surveys, utility and construction work.

1995 1995

265 255

Everts Air Cargo is an Alaskan owned and operated air carrier that provides scheduled freight service to 12 rural communities in Alaska and charter service throughout Central and North America.

1977 1977

23 23

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

1973 1988

165,000 Air cargo and express-package services. 552

March 2016 | www.akbizmag.com

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

Bruce McGlasson, Pres.

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

Cathy Porter, Mgr. Aviation Svcs.

Island Air Express PO Box 1174 Craig, AK 99921 Phone: 888-387-8989 Fax: 888-529-8837

Scott Van Valin, Dir. Ops/Pres.

Last Frontier Air Ventures Ltd. 1415 N. Local 302 Rd., Suite C Palmer, AK 99645 Phone: 907-745-5701 Fax: 907-745-5711

David King, Pres.

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

Rick Zerkel, Pres.

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

John Kaloper, Pres.

Lynden Logistics 6400 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

Robert Fell, Dir. Ops

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: 800-446-4228 Fax: 907-334-5763

Danny Seybert, CEO

Ravn Alaska 4700 Old International Airport Rd. Anchorage, AK 99502 Phone: 907-266-8394 Fax: 907-266-8391

Bob Hajdukovich, CEO

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

Stephen "Joe" Kapper, Pres.

Taquan Air 4085 Tongass Ave. Ketchikan, AK 99901 Phone: 907-225-8800 Fax: 907-228-4605

Brien Salazar, Pres./CEO

TGI Freight 4001 Old International Airport Rd., Unit 7 Anchorage, AK 99502 Phone: 907-522-3088 Fax: 907-562-6295

Todd Clark, Pres.

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

Rich Wilson, Station Mgr.

United Parcel Service 6200 Lockheed Ave. Anchorage, AK 99502 Phone: 907-249-6242 Fax: 907-249-6240

Scott DePaepe, AK Div. Mgr.

Ward Air, Inc. 8991 Yandukin Dr. Juneau, AK 99801-8086 Phone: 907-789-9150 Fax: 907-789-7002

Ed Kiesel, Pres.

www.akbizmag.com | March 2016

TOP EXECUTIVE

FOUNDED/ESTAB. AK

info@flygrant.com flygrant.com

dispatch@greatcircleflight.com greatcircleflight.com

info@IslandAirX.com IslandAirX.com

helicopter@LFAV.com LFAV.com

charters@lynden.com lynden.com/lac

ancall@lynden.com lynden.com/lint

information@lynden.com lynden.com/llog

trananccs@lynden.com lynden.com/ltia

info@maritimehelicopters.com maritimehelicopters.com

pathfinderaviation@alaska.net pathfinderaviation.com

missy.roberts@penair.com penair.com

sales@flyravn.com flyravn.com

sales@securityaviaition.biz securityaviation.biz

reservations@taquanair.com taquanair.com

toddc@tgifreight.com tgifreight.com

karic.anc@transgroup.com transgroup.com

ups.com

Reservations@WardAir.com WardAir.com

WORLDWIDE\AK EMPLOYEES

Services

SERVICES

1971 1971

200 200

2005 2005

8 8

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

2008 2008

26 22

Island Air Express operates Cessna 208 and Cessna 206 aircraft throughout Southeast Alaska Ă? Providing the only scheduled IFR service between Craig/ Klawock and Ketchikan we deliver the most reliable, on time service available. Exclusive amphib and wheel plane charter service is also available.

1997 1997

10 10

Mineral exploration, survey, research and development, slung cargo, video and film projects, aerial photography, tours, crew transport, heli skiing, short and long term contracts.

1996 1996

165 164

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

1980 1980

221 46

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

1984 1984

11 3

Arrangement of freight transportation, information management and logistical services.

1954 1954

257 65

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

1973 1973

46 46

We support petroleum, construction & marine industries as well as federal/state agencies. Our fleet includes Bell 206L, 407 and twin-engine 412HP & BO-105 Eurocopters. Our 86Ă&#x2022; helipad equipped vessel supports remote marine-based operations. Bases in Homer-Fairbanks-Kenai-Kodiak-Dutch Harbor-Valdez.

2001 2001

55 55

Pathfinder Aviation, Inc. supports Petroleum, Mining, Survey, Film, and various other industries utilizing twin-engine Bell 212s & EC-135 & single engine Bell 206 series helicopters with OAS-approved pilots and aircraft. They operate field bases throughout Alaska with a main base in Homer.

1955 1955

550 450

Passenger Transportation throughout SW Alaska, with hubs in the lower 48 in Portland, OR and Boston, MA. Also specializing in Charters and Freight service.

1948 1948

900 900

Transportation; Scheduled passenger service, scheduled cargo and charter service.

1985 1985

25 25

24/7 on-demand air charter. Approved carrier for Corps of Engineers, State and Federal Agencies. Executive travel, crew changes, HAZMAT, "HOT" cargo and medical transports.

1977 39

85 85

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

1989 1989

9 9

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

2011 2011

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

1907 1985

1995 1995

A made-in-Alaska airline known for a strong track record of safety, community involvement and for being one of the friendliest airlines in Alaska. Provides scheduled and charter passenger, mail, freight and air ambulance services in the YK Delta, Bristol Bay and the Aleutians.

AIR CARRIERS

Top Executive

COMPANY

ALASKA BUSINESS MONTHLY | 2016 TRANSPORTATION DIRECTORY

Company

435,000 UPS is a global company with one of the most recognized and admired brands in the 505 world. We have become the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. 20 20

Air transportation nonscheduled.

LAND: RAIL & TRUCK

ALASKA BUSINESS MONTHLY | 2016 TRANSPORTATION DIRECTORY

LAND, RAIL & TRUCK

Company

Top Executive

AAA Moving & Storage 747 E. Ship Creek Ave. Anchorage, AK 99501 Phone: 907-276-3506

Greg Wakefield, Pres.

AFF Distribution Services 5491 Electron Dr. #8 Anchorage, AK 99518 Phone: 907-563-7094 Fax: 907-563-7094

Jared Lastufka, Ops Mgr.

Air Land Transport 11100 Calaska Cir. Anchorage, AK 99515 Phone: 907-248-0362 Fax: 907-248-2695

John Snead, Pres.

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 Railroad Corp. PO Box 107500 Anchorage, AK 99510-7500 Phone: 907-265-2300 Fax: 907-265-2443

Bill O'Leary, Pres./CEO

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

Todd Halverson, Owner/Pres.

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

Scott Hicks, Pres.

Alison's Relocations, Inc. 310 E. First Ave. Anchorage, AK 99501 Phone: 907-345-9934 Fax: 907-344-4504

Alison McDaniel, Pres.

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

Ron Moore, AK Sales Mgr.

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

Ron Moore, AK Sales Manager

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

Ron Moore, AK Sales Mgr.

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

Damian Naquin, GM

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

Damian Naquin, GM

American Relocation Services 2430 Beaver Lake Dr. Kodiak, AK 99615 Phone: 907-486-1015

Damian Naquin, GM

American Relocation Services 47693 Michelle Ave., Unit 7 Soldotna, AK 99669 Phone: 907-262-6646

Damian Naquin, GM

AMS Couriers 5001 Arctic Blvd., Unit 2 Anchorage, AK 99503 Phone: 907-278-2736 Fax: 907-258-4293

Jaime Fink, Mng. Shareholder

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

Young Summers, Member

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

John@aaa-moving.com aaa-moving.com

youtube.com/americanfastfreight americanfast.com

Dispatch@airlandak.com airlandak.com

4help@alaskaaircargo.com alaskaaircargo.com

corpinfo@akrr.com alaskarailroad.com

dave@akterminals.com akterminals.com

information@lynden.com lynden.com/awe

alisonsrelo@gci.net alisonsrelo.com

youtube.com/americanfastfreight americanfast.com

alaska@americanfast.com americanfast.com

youtube.com/americanfastfreight americanfast.com

youtube.com/americanfastfreight americanrelocationservices.com

info@amscouriers.com amscouriers.com

yksummers@qwestoffice.net bestrateexpress.com

WORLDWIDE\AK EMPLOYEES

Services

SERVICES

1983 1983

200 100

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

1988 1988

375 145

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.

1976 1976

67 67

1969 1969

32 5

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

1914 1914

719 717

Freight rail transportation, passenger rail transportation, and real estate land leasing and permitting. Year-round employees 575-585; Seasonal (summer) employees 125-135; Total employees 700-720.

1981 1981

90 40

As the Atlas Van Lines agent for Alaska, we perform local, interstate and international moving services for corporate, government and COD customers. Website: www.akterminals.com.

1978 1978

198 185

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

1997 1997

30 30

Full service household goods moving and storage company. Providing customized moving packages-residential, commercial and industrial offices, national and corporate accounts. Ocean and Over The Road freight forwarding. Palletized shipments to Full Trailer loads. Worldwide Service.

1984 1984

375 145

Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads & single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, barge, steamship, intra-state trucking, warehousing, distribution, military shipments, etc.

1984 1984

375 145

1984 1984

375 145

1988 1988

375 145

Commercial/residential relocation, moving & storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, certified moving consultants, budget service available. Also locations in Fairbanks, Soldotna & Kodiak.

1988 1988

375 145

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.

1988 1988

375 145

1988 1988

375 145

1964 1964

12 12

2004 0

0 0

Best Rate Express Transport: flat, step, vans, reefers and heavy haul. Rail: containers and flat cars. Air: next-day, two-day and deferred service. Marine: steamship and barge service. March 2016 | www.akbizmag.com

Black Gold Express 150 Eagle Ave. Fairbanks , AK 99701 Phone: 907-490-3222 Fax: 907-374-5133

Jeremy Huffman, CEO

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

Terry Howard, President

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

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

Leslie Carter, AK Mgr.

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

Bob Cox, Vice President

Deadhorse Aviation Center PO Box 34006 Prudhoe Bay, AK 99734 Phone: 907-685-1700 Fax: 907-685-1798

Tim Cudney, Dir.

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.

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

John Kaloper, Pres.

Lynden Logistics 6400 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.

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

Jeff Bentz, Pres.

PRL Logistics, Inc. 421 W. First Ave., Suite 250 Anchorage, AK 99501 Phone: 907-261-9440 Fax: 907-261-9441

Ron Hyde, Pres./CEO

Samson Tug & Barge Co. 329 Harbor Dr. Sitka, AK 99835 Phone: 1800-331-3522 Fax: 907-747-5370

George Baggen, Pres./CEO

Sourdough Express, Inc. 600 Driveways St. Fairbanks, AK 99701 Phone: 907-452-1181 Fax: 907-452-3331

Jeff Gregory, Pres./CEO

Span Alaska Transportation, Inc. 2040 E. 79th Ave. Anchorage, AK 99501 Phone: 253-395-7726 Fax: 253-395-7986

Tom Souply, Pres.

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

Rich Wilson, Station Mgr.

United Freight & Transport Inc. 1701 E. First Ave. Anchorage, AK 99501-1831 Phone: 907-272-5700 Fax: 907-272-4324 United Parcel Service 6200 Lockheed Ave. Anchorage, AK 99502 Phone: 907-249-6242 Fax: 907-249-6240 www.akbizmag.com | March 2016

TOP EXECUTIVE

FOUNDED/ESTAB. AK

info@blackgoldalaska.com blackgoldalaska.com

carlile.biz

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

lcarter@continentalvan.com continentalvan.com

bob.cox@crowley.com crowleyfuels.com

deadhorseaviation.com

e.hoffman@expressdeliveryak.com

ancall@lynden.com lynden.com/lint

information@lynden.com lynden.com/llog

trananccs@lynden.com lynden.com/ltia

scottv@northstarak.com northstarak.com

WORLDWIDE\AK EMPLOYEES

Services

SERVICES

1984 1984

45 45

From civil work to oilfields services, from interstate moves to heavy hauls, Black Gold Express has the experience and knowledge to handle all your transportation needs. In the most extreme conditions or in the most remote locations, Black Gold Express does all your heavy lifting.

1980 1980

600 420

Transportation and logistics company offering multi-model trucking as well as project logistic services across Alaska and North America.

2003 2003

650 15

1952 1952

100+ Alaska's premier moving and storage company. Moving locally, within Alaska and 30 worldwide.

1892 1953

5,000 CPD operates fuel terminals in 22 locations in the Railbelt, western AK and SE AK, 365 providing home heating oil, jet fuel, diesel, gasoline and propane. Our fuel barges make direct deliveries to over 200 western Alaska communities. Crowley proudly celebrates over 60 years of service to Alaska.

2012 2012

8 8

1977 1977

23 23

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

1980 1980

221 46

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

1984 1984

11 3

Arrangement of freight transportation, information management and logistical services.

1954 1954

257 65

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

1950 1950

25-50 Stevedore, marine logistics and operated crane services. We are also providing state of 25-50 the art driven foundations with our ABI Mobile Ram Machines. We are now DOT approved for bridge foundation work.

2002 2002

165 165

PRL is Alaska-Owned and Operated with a high commitment to Safety. From expediting to your most complex, remote logistics challenges, PRL provides scalable logistics solutions worldwide to meet your logistics needs and ensure project success. We specialize in Alaska, the Lower 48, and beyond.

1937 1937

160 80

Alaskan owned, we offer the full range of barge freight & cargo hauling services, transporting cargo to Sitka, Cordova, Valdez, Fairbanks, Prudhoe Bay, Seward, Anchorage, Kenai Peninsula, Kodiak, King Cove, Dutch Harbor, Juneau, Ketchikan, Petersburg, Wrangell, Prince of Whales Island & Metlakatla.

1898 1902

186 186

Freight-transportation services, moving and storage services. Steel Connex Container Sales/Lease.

1978 1978

250 125

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.

2011 2011

Frank S. Monfrey, GM

1985 1985

45 45

Freight-transportation services.

Scott DePaepe, AK Div. Mgr.

1907 1985

info@pacrimlog.com pacrimlog.com

sales@samsontug.com samsontug.com

sourdoughtransfer.com sourdoughexpress.com

billm@spanalaska.com spanalaska.com

karic.anc@transgroup.com transgroup.com

ups.com

LAND: RAIL & TRUCK

Top Executive

ALASKA BUSINESS MONTHLY | 2016 TRANSPORTATION DIRECTORY

Company

COMPANY

MARINE TRANSPORTATION

LAND: RAIL & TRUCK

ALASKA BUSINESS MONTHLY | 2016 TRANSPORTATION DIRECTORY 90

Company

Top Executive

Waste Management of Alaska, Inc. 1519 Ship Ave. Anchorage, AK 99501 Phone: 907-274-0477 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

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

Jim Doyle, Pres.

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

mholzschuh@wm.com wm.com

1971 1971

1946 1953

info@wbialaska.com wbialaska.com

WORLDWIDE\AK EMPLOYEES

135 135

Top Executive

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

John John Falvey, Captain

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

Kevin Anderson, Pres.

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

Todd Halverson, Owner/Pres.

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

Jerry McMullen, VP/GM

Alison's Relocations, Inc. 310 E. First Ave. Anchorage, AK 99501 Phone: 907-345-9934 Fax: 907-344-4504

Alison McDaniel, Pres.

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

Ron Moore, AK Sales Manager

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

Ron Moore, AK Sales Mgr.

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

Ben Stevens, GM

Bering Marine Corporation 6400 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-248-7646 Fax: 907-245-1744

Rick Gray, Pres.

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

Young Summers, Member

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

Luther Bartholomew, GM

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

Terry Howard, President

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

Jeff Allen, Business Dev. Mgr.

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

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

Bob Cox, Vice President

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

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

amlcsc@lynden.com lynden.com/aml

dave@akterminals.com akterminals.com

info@alaskatraffic.com alaskatraffic.com

alisonsrelo@gci.net alisonsrelo.com

alaska@americanfast.com americanfast.com

youtube.com/americanfastfreight americanfast.com

andersontug.com

information@lynden.com lynden.com/bmc

yksummers@qwestoffice.net bestrateexpress.com

info@bowhead.com bowheadtransport.com

carlile.biz

cs@coastaltransportation.com coastaltransportation.com

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

bob.cox@crowley.com crowleyfuels.com

1963 1963

SERVICES

Trucking, local drayage, linehaul, dry bulk, liquid bulk, fuel, chemical, hot oil, heavy haul, hazmat and specialty transport as well as Oil Field support.

MARINE TRANSPORTATION Company

Services

41,922 Hazardous and nonhazardous waste disposal, project management, complete logistical 16 oversight, complete US and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation, and turnkey remedial services.

WORLDWIDE\AK EMPLOYEES

Services

SERVICES

1,100 Providing marine transportation for passengers and vehicles to over 30 Alaska coastal 1,100 communities. No pre-set itineraries. Amenities available include staterooms, dining, movie theatres, and viewing lounges.

1980 1980

257 25

Alaska Marine Lines is a marine transportation company providing barge service to and from Alaska and Hawaii. We offer twice weekly service to Southeast Alaska and Central Alaska, seasonal service to Western Alaska, and bi-weekly service to Hawaii. Charter services are also available.

1981 1981

90 40

As the Atlas Van Lines agent for Alaska, we perform local, interstate and international moving services for corporate, government and COD customers. Website: www.akterminals.com.

1956 1956

18 2

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

1997 1997

30 30

1984 1984

375 145

1984 1984

375 145

1978 38

40 5

Ship and barge assist, line handling, and pilot boat.

1985 1985

25 25

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.

2004 0

0 0

Best Rate Express Transport: flat, step, vans, reefers and heavy haul. Rail: containers and flat cars. Air: next-day, two-day and deferred service. Marine: steamship and barge service.

1982 1982

20 6

Bowhead moves cargo between Seattle, Western Alaska and the North Slope with ocean, coastal, and very shallow draft vessels for remote operations. Bowhead provides terminal services, vessel and crew support, vessel chartering, and marine and cargo logistics.

1980 1980

600 420

Transportation and logistics company offering multi-model trucking as well as project logistic services across Alaska and North America.

1984 -

300 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.

2003 2003

650 15

1892 1953

Crowley Solutions, Inc. 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 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 JT Weiss, GM

Foss Maritime Company 188 W. Northern Lights Blvd., Suite 1020 Anchorage, AK 99503 Phone: 907-782-4950 Fax: 907-782-1185

Gary Faber, Sr. VP Marine Trans.

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

John Kaloper, Pres.

Lynden Logistics 6400 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

Robert Fell, Dir. Ops

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

Kenny Gill, VP, Alaska

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

Jeff Bentz, Pres.

Ocean Marine Services, Inc. PO Box 7070 Nikiski, AK 99635 Phone: 907-776-3685 Fax: 907-776-3681

Kelly McNeil, VP

Offshore Systems Kenai (Nikiski) PO Box 8505 Nikiski, AK 99635 Phone: 907-776-5551 Fax: 907-776-8836

Kelly McNeil, VP

Offshore Systems, Inc. PO Box 920427 Dutch Harbor , AK 99692 Phone: 907-581-1827 Fax: 907-581-1630

Jeff Savage, GM

Offshore Systems, Inc. 2410 E. 88th Ave. Anchorage, AK 99507 Phone: 800-733-6434 Fax: 907-646-1430

Jeff Savage, Gen. Mgr.

Olson Marine, Inc. PO Box 1417 Ward Cove, AK 99928 Phone: 907-247-1417 Fax: 907-247-1418

Rick Olson, Pres.

Samson Tug & Barge Co. 329 Harbor Dr. Sitka, AK 99835 Phone: 1800-331-3522 Fax: 907-747-5370

George Baggen, Pres./CEO

Sourdough Express, Inc. 600 Driveways St. Fairbanks, AK 99701 Phone: 907-452-1181 Fax: 907-452-3331

Jeff Gregory, Pres./CEO

Span Alaska Transportation, Inc. 2040 E. 79th Ave. Anchorage, AK 99501 Phone: 253-395-7726 Fax: 253-395-7986

Tom Souply, Pres.

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

Grace Greene, VP/AK GM

www.akbizmag.com | March 2016

TOP EXECUTIVE

FOUNDED/ESTAB. AK

crowley.com

info@cruzmarine.com cruzmarine.com

info@foss.com foss.com

ancall@lynden.com lynden.com/lint

information@lynden.com lynden.com/llog

trananccs@lynden.com lynden.com/ltia

info@maritimehelicopters.com maritimehelicopters.com

matson.com

scottv@northstarak.com northstarak.com

omsi-ak.com

offshoresystemsinc.com

olsonmarine.com

sales@samsontug.com samsontug.com

sourdoughtransfer.com sourdoughexpress.com

billm@spanalaska.com spanalaska.com

totemaritime.com

1892 1953

1989 1989

1889 1922

WORLDWIDE\AK EMPLOYEES

Services

SERVICES

5,500 Crowley Solutions was formed in 2010 to provide increased support services to the oil 450 and gas industry including turnkey project management solutions, ocean towing, heavy lift transportation services, spill response services, tank farm and fuel management services. 20 20

Shallow draft marine support for heavy civil construction and resource development based in Cook Inlet with services extending to the western and arctic coast of Alaska. Eco friendly tugs and ramp barges that have double hull fuel tanks and hospital grade silencers.

1,700 Foss Maritime offers marine services without equal across the globe, in remote ports & 20 in extreme environments. Our experienced crews specialize in pioneering cargo transport and project services using cutting edge technology, with a steadfast commitment to quality, safety & the environment.

1980 1980

221 46

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

1984 1984

11 3

Arrangement of freight transportation, information management and logistical services.

1954 1954

257 65

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

1973 1973

46 46

1882 1964

2,000 Containership service between Tacoma, WA, and Anchorage, Kodiak, and Dutch 245 Harbor, AK. Delivery services to the Alaska Railbelt. Connecting carrier service to other water, air, and land carriers.

1950 1950

1982 1982

50 50

OMSI owns and operates offshore supply vessels, landing crafts and research vessels in support of Cook Inlet oil and gas development.

1982 1982

25 25

Vessel support services to Cook Inlet Oil and Gas companies, full service dock facility, fuel, storage and material handling services.

1982 1982

65 50

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

1983 1983

115 100

Dock facilities in Nikiski, Dutch Harbor, and Adak servicing the oil and fishing industries. Services include dock space, warehousing, cold storage, stevedoring services, heavy equipment, and fuel.

2000 2000

30 30

Olson Marine, Inc. is a tug and barge company that offers their services in the Pacific Northwest to Western Alaska.

1937 1937

160 80

1898 1902

186 186

Freight-transportation services, moving and storage services. Steel Connex Container Sales/Lease.

1978 1978

250 125

1975 1975

180 35

TOTE Maritime Alaska's Roll-on/Roll-off (Ro/Ro) cargo ship operation provides fast, ontime service between the Port of Tacoma, Washington and the Port of Anchorage, Alaska.

MARINE TRANSPORTATION

Top Executive

ALASKA BUSINESS MONTHLY | 2016 TRANSPORTATION DIRECTORY

Company

COMPANY

PORTS & HARBORS

MARINE TRANSPORTATION

ALASKA BUSINESS MONTHLY | 2016 TRANSPORTATION DIRECTORY 92

Company COMPANY

Top Executive TOP EXECUTIVE

UIC Bowhead-Crowley LLC 4025 Delridge Way SW, Suite 160 Seattle, DC 98106 Phone: 206-957-5300 Fax: 206-957-5261

Bruce Harland, VP Contract Services

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

Adam Beck, Pres.

Vitus Energy LLC 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: 907-274-0477 Fax: 866-491-2008

Mike Holzschuh, Territory Mgr./N.Am.

FOUNDED/ESTAB. AK

Bruce.Harland@Crowley.com Crowley.com

2013 2013

1994 1994

info@akship.com vigoralaska

2009 2009

info@vitusmarine.com vitus-energy.com

mholzschuh@wm.com wm.com

1971 1971

WORLDWIDE\AK EMPLOYEES

Marine Cargo Transportation & Logistics Support, Vessel Operations, Chartering, Project Management, Ocean and Coastal Barge & Lighterage Services, Terminal Services, Oilfield Services & Logistics.

2,500 Vigor is the largest marine industrial service company in the AK/PNW Region focused on 185 shipbuilding and repair. Alaska operations include AIDEAĂ&#x2022;s Ketchikan Shipyard and the Seward Shipyard. Our mobile workforce travels throughout Alaska providing marine and shore side businesses rapid response. 57 57

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

PORTS & HARBORS Company

Top Executive

City of Homer Port & Harbor 4311 Freight Dock Rd. Homer, AK 99603 Phone: 907-235-3160 Fax: 907-235-3152

Bryan Hawkins, Port Dir.

City of Whittier Harbor PO Box 639 Whittier, AK 99693 Phone: 907-472-2327 Fax: 907-472-2472

Andy Dennis, Harbormaster

Hoonah Harbor PO Box 260 Hoonah, AK 99829 Phone: 907-945-3670 Fax: 907-945-3674

Sherry Mills, Harbormaster

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

Steve Ribuffo, 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 Bethel PO Box 1388 Bethel, AK 99559 Phone: 907-543-2310 Fax: 907-543-2311

Peter Williams, Port Dir.

Port of Dillingham PO Box 889 Dillingham, AK 99576 Phone: 907-842-1069

Jean Barrett, Port Dir.

Port of Dutch Harbor PO Box 610 Unalaska, AK 99685 Phone: 907-581-1254 Fax: 907-581-2519

Peggy McLaughlin, Port Dir.

Port of Sand Point Sant Point Boat Harbor Sand Point, AK 99661 Phone: 907-383-2331 Fax: 907-383-5611

Richard Kochuten Sr., Harbormaster

Port of Valdez PO Box 307 Valdez, AK 99686 Phone: 907-835-4564 Fax: 907-835-4479

Diane Kinney, Ports/Harbor Dir.

Port of Wrangell PO Box 531 Wrangell, AK 99929 Phone: 907-874-3736 Fax: 907-874-3197

Greg Meissner, Harbormaster

Port of Yakutat PO Box 160 Yakutat, AK 99689 Phone: 907-784-3491 Fax: 907-784-3281

John Erickson, Yakutat City Mgr.

Seward Boat Harbor PO Box 167 Seward, AK 99664 Phone: 907-224-3138 Fax: 907-224-7187

Norm Regis, Harbormaster

COMPANY

TOP EXECUTIVE

FOUNDED/ESTAB. AK

port@cityofhomer-ak.gov cityofhomer-ak.gov/port

harbor@whittieralaska.gov whittieralaska.gov

hoonahharbor@gmail.com

wwport@muni.org portofalaska.com

facebook.com/PortofBellingham portofbellingham.com

pwilliams@cityofbethel.net cityofbethel.org

harbor@dillinghamak.us

jdays@ci.unalaska.ak.us ci.unalaska.ak.us

sdpmoonak@yahoo.com

portofvaldez@ci.valdez.ak.us ci.valdez.ak.us/port

harbor@wrangell.com wrangell@wrangell.com

harbormaster@yakutatak.us

harbormaster@cityofseward.net cityofseward.net/harbor/

Services SERVICES

WORLDWIDE\AK EMPLOYEES

Services

SERVICES

1964 1964

17 17

Homer Port & Harbor has 24/7 harbor officers, & includes a small boat harbor with over 800 reserved stalls & 600+ linear transient moorage, two deep water ports, a commercial barge ramp, steel & wood tidal grids, a 5-lane load & launch ramp, & fish dock with eight cranes & ice delivery.

1970 1970

8 8

The Whittier Harbor is your Gateway to Prince William Sound. We are an ice-free port, open year round. There are 350 slips for both transient and permanent berth holders, to lengths of 54'. The Whittier Harbor is a full-service establishment that tries to meet the needs of all boaters.

1901 1901

3 3

We are a small boat harbor, with shore power for most of the 274 stalls, fresh water, a two-lane launch ramp; a tidal grid; a transient dock with no breakwater; and a 220ton Travelift haulout.

1961 1961

22 22

The Port of Anchorage (POA) provides critical transportation infrastructure not only to the citizens of Anchorage, but to a majority of the citizens of the State of Alaska both within and beyond the Railbelt.

1920 -

95 -

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

1940 1959

3 Operate freight dock and yard, petroleum dock and berths for mooring boats and barges 6 and a small boat harbor. seasonal, 3 full time

1961 55

4 4

Freight Dock which ships and receives all freight for the Nushagak drainage. Dillingham Small Boat harbor is home port for up to 500 Bristol Bay drift boats. Offers docking, potable water, public restrooms and showers. Boat repair and haul out are available in close proximity.

1867 1867

10 10

The Port of Dutch Harbor promotes the growth and health of the community of Unalaska through the planning, development, and management of marine related municipal properties and facilities to provide moorage and other marine services on a selfsupporting basis.

1988 1988

6 6

We are a fishing community that caters to a local fleet of vessels 32 to 60 feet.

1901 1901

4 4

Port services include a Container Terminal with a 700 ft. floating dock (1,200 ft. with dolphins), 21-acre storage yard, electricity for reefer units, water, and garbage service. The Port has Foreign-Trade Zone #108 with industrial land available for development. Wharf at the Kelsey Dock is 600 ft.

2008 2008

5 5

Ports and harbors.

1964 64

1 1

30 ton haul out trailer. Freshwater, 30 amp power.

1964 1964

11 11

We are a full service port with 50-ton and 330-ton Travelifts, a 5000-ton syncrolift, boat repair yards, potable water and power utilities, hardware stores, grocery stores, art galleries, restaurants, hotels and many other amenities to meet every need. March 2016 | www.akbizmag.com

Inside

Alaska Business June 2016 FOSTER CHILDREN early 2,700 Alaska children were in foster care in any given month of 2015â&#x20AC;&#x201D; 20 percent more than the monthly average in 2014. The number of Alaska children in foster care has been climbing since 2012, but by far the biggest increase was in 2015. Last year, more children of all races, all ages, and all regions of the state were in foster care. A new paper by Diwakar Vadapalli and Jessica Passini of ISER reports on trends among children in foster care from 2011 through 2015. They found particularly significant changes in 2015. Download the report at iser.uaa.alaska.edu.

AIDEA IDEA (the Alaska Industrial Development and Export Authority) Board approved a loan participation for an Anchorage project and a resolution for issuing tax-exempt bonds for a project in Fairbanks. The loan, to SHB LLC, is for $4,249,920 (90 percent) of a $4,722,133 loan brought to AIDEA by Denali Federal Credit Union. Denali Federal Credit Union originated the loan and is participating with $472,213. The purpose of this loan is for refinancing of a 42,695-squarefoot office and warehouse building located at 700 Bragaw Road in Anchorage. The building is leased to BP Exploration Alaska.

Compiled by Tasha Anderson The resolution concerning J.R. Cannone LLC authorizes AIDEA to issue up to $13 million in conduit revenue bonds for the acquisition of an existing adolescent treatment facility located at 3101 Lathrop Street in Fairbanks. Proceeds from the bonds will also be used to fund a debt service reserve account as security for the bonds, and to pay all or a portion of the costs associated with the issuance of the bonds. RBC Capital will serve as placement agent, and UMB Bank, National Association, will act as Trustee. aidea.org R&M CONSULTANTS, INC. &M Consultants, Inc. has added welding inspection to their line of services and is able to offer welding inspections inhouse. This will streamline the firmâ&#x20AC;&#x2122;s special inspection services and help clients save time and money by having a single person available to mobilize to a project to perform all needed inspection services, including welding inspections. rmconsult. com

PICK.CLICK.GIVE laskans have set a record for the average amount donated per person through Pick.Click.Give. to $108, up from a $100 average in 2015. That generosity led

to the second highest amount pledged in the programs history. As of April 1, According to the Alaska Department of Revenue, 29,543 Alaskans donated $3,192,725 from their 2016 PFDs. This was a slight decrease from the record amount of $3,329,575 in 2015. Overall, 5.5 percent of Alaskans who filed online for the PFD made donations through Pick.Click.Give. Last year, 6 percent of Alaskans participated in the program. pick.click.give.org MAT-SU BOROUGH n September 21, 2012, nearly half the town of Talkeetna evacuated due to rising river water from a relentless fall rainstorm. The night before, angry Montana Creek took a bite out of Yoder Road and turned its roadbed into a river. Some three and a half years later, in April the Mat-Su Borough received the good news of being awarded $336,640 in federal and state disaster relief funds. The Talkeetna revetment will receive a grant for $182,718. Yoder Road revetment will receive $153,922. matsugov.us

ANCHORAGE FIRE DEPARTMENT n an effort to meet the increasing need for Emergency Medical Services in the

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

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From critical lifts to platform support, PPM is sufficiently resourced to deliver a wide range of construction services. 620B East Whitney Road I Anchorage, AK 99501 June 2016 | Alaska Business Monthly

INSIDE ALASKA BUSINESS Anchorage area, the Anchorage Fire Department is expanding its ambulance resources from nine to eleven units, a 22 percent increase in service availability. This no-net-cost expansion of emergency service is necessary as the Anchorage area has experienced a 72 percent increase in emergent patient transports over the period from 2002-2015. The two new ambulances began service April 15. afd.muni.org ALASKA AIR GROUP laska Air Group, Inc., parent company of Alaska Airlines, and Virgin America, Inc. announced that their boards of directors have unanimously approved a definitive merger agreement, under which Alaska Air Group will acquire Virgin America for $57 per share in cash. Including existing Virgin America indebtedness and capitalized aircraft operating leases, the aggregate transaction value is approximately $4 billion. With an expanded West Coast presence, a larger customer base, and an enhanced platform for growth, Alaska Airlines will be positioned to provide more choices for customers, increase competition, and deliver attractive returns to investors. alaskaair.com

WILD SIDE SALMON LLC he Bristol Bay Development Fund (BBDF), a subsidiary of Bristol Bay Native Corporation, is pleased to announce its fifth investment in a Bristol Bay-based business. BBDF and Naknek Family Fisheries LLC, based out of Naknek, are forming a new 50/50 partnership called Wild Side Salmon LLC. Wild Side Salmon will continue to use the Naknek Family Fisheries brand. BBDF investment dollars will be used to upgrade the existing fish plant facility, build an employee bunkhouse, and provide operating capital. bbdf.net.

MUNICIPALITY OF ANCHORAGE new version of the Public Review Draft of the Anchorage Bowl Land Use Plan Map has been released on muni.org. The map is designed to accommodate forecasted population growth and the corresponding need for residential, commercial, and industrial lands over the next twenty years. On the new interactive or â&#x20AC;&#x153;zoomableâ&#x20AC;? version of the Anchorage Land Use Plan Map, a user may view individual parcels and see proposed types of land use for any area. muni.org

ALASKA AEROSPACE CORPORATION he Federal Aviation Administration Office of Commercial Space Transportation has approved the Alaska Aerospace Corporation Environmental Assessment for construction of medium lift launch facilities at the Pacific Spaceport Complex - Alaska. Notice of final approval was posted in the Federal Register on April 15. In January, Governor Bill Walker placed a hold on future development of the medium lift facility and the Alaska Aerospace Corporation returned $22 million of the state capital appropriation for that project. However, since the environmental process was in the public and agency review phase, the Federal Aviation Administration proceeded to complete the assessment. akaerospace.com

BRISTOL BAY NATIVE CORPORATION ristol Bay Native Corporation (BBNC) is pleased to announce their intent to purchase Katmailand, Inc. and its associated assets and operations located in Anchorage and King Salmon, as well as within Katmai National Park. BBNC anticipated acquisitions would be completed on

May 31. Katmailand operates Kulik Lodge, Brooks Lodge, and Grosvenor Lodge, along with their respective National Park Service concessions, and continues to offer the finest accommodations, outstanding sport fishing, and world famous bear viewing within Katmai National Park. bbnc.net SEARHC outhEast Alaska Regional Health Consortium (SEARHC) introduced its AfterHours Nurse Advice Line to Sitka in April. The free resource allows SEARHC patients to obtain healthcare information and triaging services when the local clinic is not open, making reliable health information provided by registered nurses just a phone call away. search.org

UIC TUKKUMAVIK SUITES he new UIC Tukkumavik Suites in Barrow officially opened for business in April. It is centrally located near shopping, restaurants, and other town amenities. With fifteen suites total, each unit is equipped with a full kitchen, dining room, living room, and bathroom with tub and shower. Guests have a choice between one or two bedrooms and one modern Americans with Disabilities Act compliant unit. Suites feature Internet WiFi access and cable TV in the living room and bedrooms. Onsite amenities include maid service, linens, towels, toiletries, and guest laundry facilities. uicguest.com

CONOCOPHILLIPS onocoPhillips Alaska, Inc. announced that funding has been approved for additional wells and associated on-pad infrastructure to increase production at the CD5 drill site. The additional wells and infrastructure will bring CD5 to its full design

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

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

Alaska Business Monthly | June 2016 www.akbizmag.com

Compiled by Tasha Anderson and permit capacity. The drill site, which began producing oil in October 2015, is part of the Alpine field and the first commercial oil development on Alaska Native lands within the boundaries of the National Petroleum Reserve-Alaska. The cost of the project is estimated at approximately $190 million, which includes construction, drilling, and well tie-ins. The company expects CD5 to meet its production target of sixteen thousand barrels of oil equivalent per day gross average for the year. conocophillips.com ML&P, CHUGACH he Regulatory Commission of Alaska approved the purchase of ConocoPhillips’ one-third working interest in the Beluga River Unit natural gas field by Municipal Light & Power and Chugach Electric Association. ML&P and Chugach announced the joint purchase in February, in a deal that is estimated to save the residents of Anchorage millions of dollars and supply a significant portion of the utilities’ gas needs over the next two decades. The final agreement transfers 70 percent ownership of the ConocoPhillips’ interest to ML&P and 30 percent to Chugach Electric. The total purchase price is $152 million. muni.org | chugachelectric.com

ALASKA DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT he Alaska Department of Labor and Workforce Development released projections for Alaska’s population through 2045. The projections and a detailed methodology are available at labor.alaska.gov/research/ pop/popproj.htm. Population projections by age and sex for all Alaska boroughs and census areas and for the Alaska Native population are included in this release. Projections

are based on the current population and historical trends in birth, death, and migration levels. labor.alaska.gov ALASKA PACIFIC MEDICAL CENTER enali OB-GYN at the Alaska Pacific Medical Center broke ground April 26. This project is the first new construction project under the Multi-Phase Development Agreement between Alaska Pacific University and U-Land LLC, an entity created for the purpose of developing Alaska Pacific University lands that includes Southcentral Foundation and Mark Pfeffer. The Center will be approximately 34,300 square feet and the core and shell of the building are anticipated to be completed by the end of 2016. pfefferdevelopment.com

EXXONMOBIL xxonMobil started production at its Point Thomson project in April, the first company-operated project on Alaska’s North Slope. Central pad facilities are designed to initially produce about five thousand barrels per day of condensate and 100 million standard cubic feet per day of recycled gas. The recycled gas is re-injected for future recovery. At full rate production, the facility is designed to produce up to ten thousand barrels per day of natural gas condensate and 200 million cubic feet of recycled gas. It is anticipated to reach that level when the west pad well is online in a few months. exxon.com

CARLILE arlile offloaded the first tankers of crude oil produced from BlueCrest Energy’s Cosmopolitan field on the Kenai Peninsula. This is the first commercial sale of oil from the field. Cosmopolitan’s crude will be re-

fined at the Tesoro refinery in Kenai, and Carlile expects to deliver two tankers per day to the refinery. Tesoro has operated the refinery since 1969 and is encouraged by the delivery of the first crude oil shipment from the Cosmopolitan Unit at Anchor Point operated by BlueCrest Energy. Carlile.biz MUSEUM OF THE NORTH new series of ethnobotany films produced by filmmaker Sarah Betcher explores traditional Alaskan indigenous uses of wild plants for food, medicine, and construction materials. The “Ties to Alaska’s Wild Plants” project was funded by a grant from the National Science Foundation to Betcher and principle investigator Steffi Ickert-Bond, the Herbarium curator at the University of Alaska Museum of the North. The films are archived on the museum’s website at uaf.edu/ museum/collections/herb/ethnobotany/.

GCI CI Alaska began offering the all-new Apple TV, which brings a revolutionary experience to the living room based on apps built for the television. Customers can enjoy the power of Apple TV with GCI’s Epic Life package or its broadband services. gci.com

ALASKA RAILROAD very year, the Alaska Railroad sees an increase in trespassing incidents on the train tracks when summer arrives. Trespassing is not only illegal, but it is the leading cause of rail-related deaths in America. The terrifying trend of more people trespassing on Alaska Railroad tracks has been seen in Railbelt communities from Seward to Anchorage to Fairbanks. The Alaska Railroad is urging local residents and visitors to stay off the train tracks. alaskarailroad.com R

• General Contracting • Marine Infrastructure • Design Build

Dutch Harbor - Unalaska, Alaska

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620B East Whitney Road I Anchorage, AK 99501 June 2016 | Alaska Business Monthly

RIGHT MOVES AT&T

AT&T announced that Shawn Uschmann has been named Director of External Affairs for AT&T Alaska. Uschmann will spearhead AT&T’s legislative and community affairs initiatives throughout the state and assist Uschmann with new technology deployment and infrastructure investment. Prior to his new role, Uschmann served as the AT&T Sales Director in Alaska. Uschmann attended the University of Massachusetts in Amherst, where he studied Economics.

DOWL

DOWL announced the addition of Robert (Nick) Enos, MS, CPG, to its mining and environmental staff. Enos is a senior geoscientist and environmental professional with more than twenty years of experience in the mineral industry, Enos primarily in environmental management, permitting, project management, project development, geotechnical and environmental studies, reclamation and closure planning, and National Environmental Policy Act (NEPA) planning.

USI

USI’s Anchorage office announced that Anna Kohler has been promoted to Sales Executive in its Commercial Insurance division. In her new capacity, Kohler will consult organizations on risk and insurance programs and will Kohler advise them as to the best coverage for potential risks unique to their business. Kohler has been with USI as an Account Manager since 2014.

Eklutna, Inc.

Eklutna, Inc. has announced three promotions and additions within the organization. In January Mary Duncan became the Chief Administrative Officer of Eklutna focusing on the administrative, human resources, risk management, contractual, and legal aspects of the corporation.

Duncan joined the Eklutna family in September 2014 as the accounting and office manager. Nick Francis was promoted to Chief Operating Officer of Eklutna and its subsidiaries to work closely with the CEO to oversee daily operations and planning aspects of Eklutna. He will also continue to oversee Eklutna Services LLC and other contracting divisions. Francis joined Eklutna in 2013 and before that was the senior project manager for the Norton Sound Regional Hospital in Nome for DOWL Engineers. Tonya Gamble joined the Eklutna family in June of 2015 as the Controller. Gamble comes to Eklutna with approximately twenty-six years of financial and business experience. She is responsible for the corporation’s financial department; she works with the executive team on financial strategic planning, business valuation, banking and assists with managing corporate assets. Steve Connelly joined Eklutna in March 2015 as the Director of Lands & Regulatory Affairs. Connelly’s responsibilities include managing corporate lands and natural resources, working with developers on permitting, right of way, and environmental issues. Connelly received a Master of Science in Resource Management and Policy from State University of New York and a Bachelors of Art in Economics from Villanova University, Pennsylvania. In January, Noel Aspiras was promoted as the Real Estate & Land Specialist for Eklutna, Inc.’s Land & Real Estate Departments. Aspiras’s focus is to assist the Land & Real Estate Departments managing projects and properties.

Recover Alaska

Tiffany Hall was selected as the new Executive Director of Recover Alaska, a multi-sector action group working to reduce the harm caused by excessive alcohol consumption in Alaska. Hall comes to Recover Alaska Hall with ten years of experience in the nonprofit sector in fundraising, program development, public relations, and most recently, government affairs at Providence Health & Services.

Arctic Slope Native Association

Arctic Slope Native Association is pleased to announce Dr. Barbara Medlin has been named

Chief of Staff for Physician Services at Simmonds Memorial Hospital for the second year in a row. Over the twenty-five years of her practice career, she has provided general medical care as a Family Practitioner, delivered more than five hundred babies, provided hospital care and nursing home care, and worked in Emergency Rooms and Urgent Care Clinics. Dr. Alanna Small has been named Deputy Chief of Staff for Physician Services. Small began her employment the hospital in 2015 as an internal medicine physician and has been integral in expanding inpatient services.

R&M Consultants, Inc.

Bill Preston, PLS, GISP, has been named as R&M Consultants, Inc.’s new Vice President of Geomatics. Preston will be responsible for management of the R&M’s Geomatics Department, which includes land surveying, right Preston of way services and geographic information systems. Preston has been with R&M since 2000 and offers more than fifteen years of experience in field and office work. Chris Black, PE, has been promoted to Senior Project Engineer. He is responsible for coordinating with clients and performing analysis and design tasks related to site development projects. Black has more than Black twenty-two years of construction and civil engineering experience. Black has a bachelor’s degree in Civil Engineering from the University of Alaska Anchorage.

Mat-Su Health Foundation

The Mat-Su Health Foundation welcomed Jim Beck and Vandana Ingle to its team. In addition, Desiré Shepler was promoted to director of a community initiative supported by the foundation called R.O.C.K. Mat-Su (Raising Our Children with Kindness). Beck joined the foundation staff as a program officer, and he is leading the Healthy Aging focus area. Beck is responsible for working with the program team to design and implement strategic initiatives to advance the foundation’s goals and vision.

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Alaska Business Monthly | June 2016 www.akbizmag.com

Compiled by Tasha Anderson Ingle was hired as a program associate to support the foundation’s program team in implementing grant programs and other strategies to further the organization’s mission. In her new role as director of R.O.C.K. Mat-Su, Shepler oversees a collaborative project working towards increasing family resilience and creating a culture that supports children and families, as well as reducing child maltreatment and number of Adverse Childhood Experiences Mat-Su Children experience. Prior to her promotion, Shepler was a program officer with the foundation. She holds a Master of Public Health degree from the University of Alaska Anchorage, as well as a bachelor’s degree, also from the University of Alaska Anchorage, and an associate’s degree from Mat-Su College.

Resource Data, Inc.

Resource Data, Inc. has hired Chris Martin as a System Engineer. He has nineteen years of experience managing and growing telecom and IT operations for software development companies, with additional experience in employee management, data center operations, and in general, the world of IT. Jesse Bernier was hired as a Project Manager/ Sr. Analyst. He has extensive experience working with clients for companies of all sizes. He is experienced in project management including planning, installation, bids, verifying projects to estimates and coordinating with other project managers and software architects. Bernier has his BA in Management Information Systems from the University of Alaska Anchorage. James Farmer has been hired as a System Engineer. Farmer’s professional experience includes systems administration experience providing IT support and consulting services to clients. Farmer provided technical assistance and support on a contract basis to the Tesoro Refinery in Nikiski. His experience also includes troubleshooting of computer systems, networks, printers, and providing user support. Resource Data hired Tim Marvin as a Sr. Systems Engineer. Marvin received an Associate of Applied Technologies & Networking from College America in Fort Collins, Colorado. He has multiple technical proficiencies in servers, applications, operating systems, storage and

networking. He has also trained technical staff and users on system and network operations.

Residential Mortgage

Residential Mortgage is proud to announce the hiring of Gwen Greenup, Wasilla Branch Manager, and Susan Fitzgerald-Brinegar, Mortgage Loan Officer. Greenup joins Residential Mortgage with ten years of experience in mortgage lending, most recently working at Alaska USA Mortgage Company. She is a US Coast Guard veteran. She volunteers with the Valley Board of Realtors. Greenup Fitzgerald-Brinegar joins the Residential Mortgage team with four years of experience as a loan originator after a career in real estate. She has been in Alaska more than twenty years and is an active volunteer with Beta Sigma Phi, the Valley Board of FitzgeraldRealtors, The Children’s Place, Brinegar and Homeless Connect.

McCool Carlson Green

Scott Brodt, Garrett Burtner, and Jason Gamache have joined McCool Carlson Green’s leadership. Brodt, a licensed architect and LEED Accredited Professional, has more than thirty-five years of experience in Alaska design and construction. His current projects include UAA’s Bookstore Renovation, US Army Corps of Engineers Warm Storage Hangar at Fort Wainwright, and Eielson Air Force Base’s Bowling Center and F-35 Training Facilities. Burtner is a licensed architect and practicing artist. With more than years at McCool Carlson Green he has helped the firm evolve into Alaska’s premier educational design firm. He is currently working on Anchorage School District’s Airport Heights Elementary School, Sitka’s Harrigan Centennial Hall, and Master Planning Wake Island with the US Army Corps of Engineers. Gamache is a licensed architect in Alaska, Hawaii, and recently licensed in the State of Washington. A LEED Accredited Professional, he combines innovative building solutions with a commitment to long-term community vitality.

Gamache has managed a wide variety of projects around the state, including major renovation and additions. He is currently working on a new hangar for Alaska Airlines and Anchorage’s first Living Building Challenge project for RurAL CAP.

Chugach Alaska Corporation

Chugach Alaska Corporation has hired Josie Hickel as its new Senior Vice President of Energy And Resources. Hickel will be responsible for driving growth within Chugach’s energy services business line, as well as Hickel directing our land and natural resource management and development efforts. Hickel holds a bachelor’s degree in business management from American Intercontinental University.

Stantec

Stantec announced that Becca Carroll, PE, has joined the firm as Mechanical Engineering Manager in its Anchorage office. She has more than a dozen years of instate industry experience and is an associate of the firm. Carroll Carroll will provide senior design leadership for building projects, overseeing a team of five mechanical engineers and designers. She is a graduate of the Milwaukee School of Engineering, with a degree in architectural engineering with building mechanical systems specialty.

Alaska Business Monthly

Alaska Business Monthly is pleased to announce our newest employee, Emily Olsen, who has been hired as a Customer Service Representative. Her duties at Alaska Business Monthly will include managing subscriptions, Olsen distribution, DataJoe survey collection, and general office and customer support. Previous to Alaska Business Monthly Olsen worked at CH2M as a Reprographics Specialist and Project Coordinator. She graduated from Brigham Young University. R

Nail guns. Air compressors. Generators. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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June 2016 | Alaska Business Monthly

ALASKA GROWN

EAT

SHOP 

By Tasha Anderson

PLAY

STAY

eighborhoods throughout the state have farmers markets during the summer with local, independent farms selling fresh produce. The agriculture industry in Alaska developed the Alaska Grown logo, which highlights Alaska farm products, which range from vegetables, meat, milk, eggs, and honey to furs and wool products.

According to the Alaska Department of Natural Resources Division of Agriculture, “Our policy is to allow use of the logo on quality local products that meet the established grade standards for the top two grades for the particular item… [And] all food products will be 100 percent locally grown except in the case of processed food items which require some condiments, spices, etc. Processed products will have at least 75 percent content of items grown in Alaska.” R

Alaska Business Monthly | June 2016 www.akbizmag.com

SHOP

PLAY 

By Tasha Anderson

STAY

CRUISES

EAT

laska is a vast, rural frontier: one of the difficulties in exploring the state are the many areas lacking roads or even trails. Luckily, Alaska’s ocean coastline provides an excellent venue for taking in Alaska’s on- and offshore flora and fauna, making any Alaska cruise an excellent opportunity to see the state in safety and comfort. R

Humback whale watching from a cruise ship, Icy Straits in Southeast Alaska.

www.akbizmag.com

June 2016 | Alaska Business Monthly

SEWARD

EAT

SHOP

PLAY

STAY 

By Tasha Anderson

eward is a small city surrounded by pristine Alaska wilderness; it’s ideal for travelers to cater their accommodations to their preferences. There are many hotels right in city, but there are also several lodging options, from camping to cabins to hotels, just outside of the city proper, allowing guests access to city amenities while enjoying a wilderness experience. R

Seward and Resurrection Bay.

FISH

EAT 

By Tasha Anderson

SHOP

PLAY

STAY

t would be a shame to travel Alaska without taking advantage of locally caught and prepared fish and seafood. Alaska’s wild fish are known worldwide for both their quality and sustainability; Alaska’s fresh fish are always a good bet, and with Alaska’s endless miles of lakes, rivers, and coastline, incredible dishes featuring fresh caught fish, crab, and other seafood are featured in restaurants throughout the state. R A bowl of cioppino made with wild Alaska fish and seafood. © Jim Lavrakas/AlaskaStock.com

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Alaska Business Monthly | June 2016 www.akbizmag.com

SHOP

Anchorage JUNE

JUNE

Fin, Feather or Fur Food Festival

This cook-off competition gives cooking teams a chance to show off their culinary skills and is sponsored by the Alaska chapter of the American Association of Drilling Engineers. Proceeds benefit scholarship programs and local food charities. Unique Machine, 2:30 p.m. to 7 p.m. Contact Samir Patil, spatil@petroak.com, or Mike Yore, michael.yore@weatherford. com, for more information.

Anchorage Mayor’s Marathon & Half Marathon

Three Barons Renaissance Fair

4-5 & This annual 11-12 renaissance fair offers

entertainment, live music, local vendors, and great food. 3400 Tudor Road. 3barons.org

JUNE

Slam’n Salm’n Derby

This king salmon derby is an annual fundraiser for the Downtown Soup Kitchen. Tickets to participate are free. Derby headquarters are located across from the Ulu Factory at 211 West Ship Creek Avenue. shipcreeksalmonderby.com

JUNE

Alaska Pride Fest

in its 39th year, this 18-25 Now event brings together local businesses, organizations, allies, and the LGBT community throughout the beautiful state of Alaska to celebrate our diversity. The Equality Parade and PrideFestival take place June 25 on the Delaney Park Strip. alaskapride.org

Haines

Fairbanks JUNE

Great Alaskan Foodstock

17-19 Foodstock’s slogan is, “We play for food.” Entry to the rock, bluegrass, blues, folk, and funk country music festival is $5 or five cans of food; proceeds are donated to the Fairbanks Rescue Mission. Activities also include dancing, volleyballs, horseshoes, arts and crafts, and food vendors. Howling Dog Saloon in Fox. greatalaskanfoodstock.com JUNE

Midnight Sun Festival

Enjoy live entertainment, great food, and a variety of vendors. Noon to Midnight, Downtown Fairbanks. downtownfairbanks.com

JUNE

Midnight Sun Baseball Game

This is the 111th Midnight Sun Game, which takes place on the summer solstice and is played entirely without lights. 10:30 p.m., Growden Memorial Park. goldpanners.com

JUNE

Downtown Summer Solstice Festival & Hero Games

Anchorage celebrates the solstice with several events, including the Hero Games, a friendly competition between Alaska’s first responders charging through obstacle courses, bucket brigades, and different relays (law enforcement, each military branch, and the fire department participate); the Children’s Rainbow Factory, which includes puppet shows, a kayak pool, and giant sandbox; and a Teen Pro Skateboarding Demo, showcasing skateboard skills from professional skateboarders and local team members. Fourth Avenue and Town Square. anchoragedowntown.org www.akbizmag.com

10th Annual Fisherman’s Community Barbecue

The barbeque is a King Salmon dinner at Dalton City with music, dancing, and a beer garden to celebrate Southeast Alaska’s wild Salmon fisheries. Southeast Alaska Fairgrounds, 6 p.m. to 9 p.m. seakfair.org

Girdwood JUNE

Fiddlehead Festival

A celebration of the fiddlehead fern season and summer music in the mountains, this family-oriented outdoors event features live music, local arts and crafts booths, beer and wine garden, cooking demos, 5K Fun Run, kid’s activities, and more. Menu items will feature fiddleheads and Alyeska Resort’s talented chefs will host hands-on demonstrations and share techniques for cooking with fiddleheads. Alyeska Resort Hotel Pond Courtyard. alyeskaresort.com

4-5

Homer JUNE

Kachemak Bay Writers’ Conference

10-14 Sponsored by the Kachemak

greatest film scores of all time by composers John Williams, Hans Zimmer, Jerry Goldsmith, and others. Enjoy music from favorite film scores from James Bond to Pirates of the Caribbean. Juneau Douglas High School Auditorium, Saturday 8 p.m. and Sunday 3 p.m. juneauopera.org

Palmer JUNE

Colony Days Celebration

10-12 This festival is in honor of the 1935 Colonists who started the Palmer farming community. Events include a car rally, craft fairs, farmer’s market, kids games, bike rodeo, parade, and live entertainment. This year’s theme is “Mountains of fun in the peak of the season.” Downtown Palmer. palmerchamber.org

Bay Campus-Kenai Peninsula College-UAA, this highly acclaimed, nationally-recognized conference features workshops, craft talks, public readings, and panel presentations in literary fiction, poetry, nonfiction, and the business of writing. Pilitzer Prize Winner and former Poet Laureate of the United States Natasha Trethewey will be the keynote speaker. writersconference.homer.alaska.edu

Anchorage JUNE

STAY

SILA

in Canadian Arctic, 24-10 Set looking at the massive changes: In Inuit cosmology, “sila” is the primary component of everything that exists. In the play “SILA”, Arctic people and animals and spirits fight and mourn changes in climate and culture, and celebrate the transcendence of resilience, adaptation, and love. Cyrano’s, 7 p.m. Thursdays, Fridays, and Saturdays; 3 p.m. Sundays. cyranos.org

JUNE

Compiled by Tasha Anderson

Nearly four thousand runners and walkers will travel to run the scenic trails of Anchorage at the annual summertime Anchorage Mayor’s Marathon and Half Marathon. The event is timed to coincide with the summer solstice, when the longest day of the year brings twenty-two hours of functional daylight to the city. The event also has a four-person marathon relay, Coastal 5K and Buddy Half Marathon, where teams of two split up the half marathon course. mayorsmarathon.com JUN-JUL

Anchorage

PLAY 

Palmer

Juneau JUNE

Celebration

Sealaska Heritage Institute’s biennial celebration has become the largest cultural event in the state with events including a juried art show, Native artists gathering and market, costumed processions, dance performances, workshops, and lectures. sealaskaheritage.org

8-11

JUNE

A Tribute to the Film Score

11-12 The Juneau Symphony closes the season with a special tribute to movie music, playing the

JUNE

Alaska Scottish Highland Games

25-26 The games feature amateur Highland Athletes, piping, drumming, and dancing competitions, as well as live music, vendors, food, and a Scotch tasting. Alaska State Fairgrounds. alaskascottish.org R

June 2016 | Alaska Business Monthly

101

EVENTS CALENDAR JUNE 2016

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Accolades

Alutiiq Museum recognizes one volunteer a year for his or her outstanding contribution with their Volunteer of the Year award. The winner for 2015 is Anna Donaldson. As a volunteer, Donaldson works mainly with collections, cleaning, and labeling artifacts and caring for archives. She also assists with events, helping the museum to run programs like the First Friday Art Walk. She is now training to become a museum docent, a person who greets visitors, answers questions, and gives tours. alutiiqmuseum.com The American Polar Society has awarded University of Alaska Fairbanks professor Lawson Brigham its Honorary Member Polar Medal. Brigham received the medal during the society’s 80th Symposium recently at the Scripps Institution of Oceanography in La Jolla, California. A certificate from the society notes that the award was in “recognition of your contribution to polar science and exploration and your support of the society’s mission to encourage polar research and education and to preserve polar history.” uaf.edu The University of Alaska Fairbanks School of Management honored Bob Hajdukovich as its 40th Business Leader of the Year during a dinner and award ceremony in April. As a business leader, Hajdukovich demonstrates not only commitment to his employees and the success of his company but also to serving the people of Alaska. flyravn.com

Compiled by Tasha Anderson

Joe Usibelli Jr., President of Usibelli Coal Mine, is very pleased to announce the achievement of a significant milestone by completing Calendar Year 2015 with no lost time injuries. “The employees of UCM have dedicated themselves to safety awareness and communication. Every employee practices it every day, resulting in achieving a year and a half without any lost time accidents. It’s a true team effort and a milestone we’re all proud of.” usibelli.com In January, the Alaska Women’s Giving Circle has awarded five grants totaling $15,000 to programs that support women across the state. Recipients of this year’s grants are: Haven House, Inc, a faith-based organization providing peer recovery support services within a safe recovery focused environment for women returning home after incarceration, in support of their capital campaign; Girls Rock Camp, a nonprofit empowering a diverse group of girls through musical education and performance, to provide scholarships to camp participants; Facing Foster Care in Alaska (FFCA), a nonprofit dedicated to improving the foster care system, to support the travel costs of youth in foster care from across the state to attend a conference in Juneau; the purchase of running gear for Running Free Alaska, a nonprofit running program for female prison inmates at the Hiland Mountain Correctional Center; and the Disability Law Center, a nonprofit law firm providing legal advocacy for people Junior Achievement of Alaska won the first ever Pitch.Click.Give competition in January. A check for $1,000 and over $10,000 in marketing services was presented to Flora Teo, CEO of Junior Achievement. Pitch.Click.Give is a competition hosted by the American Marketing Association, Alaska Chapter, where marketing teams form around nonprofits to create Pick. Click.Give. campaigns for nonprofits in one evening. juniorachievement.org/web/ja-alaska

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with disabilities in Alaska, to support the purchase of technology to start the Tessandore Self-Advocacy Center. Christopher S. Pobieglo, CIC, CRIS, President of Business Insurance Associates, Inc., successfully completed his certification as a Certified Insurance Counselor with the National Alliance for Insurance Education & Research. The certification requires licensed insurance professionals to complete five twenty-hour classes and pass the exams within a five year window of time. Pobieglo recently passed the CRM exam for Principals of Risk Management to complete the certification. businessinsuranceassociates.com Tongass School of Arts and Sciences in Ketchikan became the only school in Alaska to receive a national HealthierUS School Challenge award for 2015. Tongass, as part of the Ketchikan school district, is one of a number of schools that have partnered with the Alaska Department of Health and Social Services’ Obesity Prevention and Control Program to improve nutrition and physical activity for its young students. kgbsd.org Elaine Kroll, a senior treasury specialist for Wells Fargo’s Alaska Commercial Banking Group, has earned the Certified Treasury Professional designation. The Certified Treasury Professional designation serves as a benchmark of competency in the finance profession and is recognized as the leading credential in corporate treasury worldwide. wellsfargo.com Students training at AVTEC—Alaska’s Institute of Technology— will soon benefit from new simulators and equipment donated by Superior Energy Services, Inc. The donated equipment and software, valued at more than $5 million, will upgrade AVTEC’s Alaska Maritime Training Center. In addition to the maritime, crane, and remote operations vehicle simulators, the company is also donating computers, LED displays, HVAC units, and office equipment to the school. avtec.edu Coffman Engineers is pleased to announce Jennifer Parkhurst and Andrew Yanoshek have obtained their Professional Engineering (PE) licenses in Alaska. Parkhurst is a mechanical engineer in the Anchorage office. Parkhurst has eight years of design work experience in commercial facilities such as office buildings, medical clinics, dormitories, and equipment maintenance buildings. Yanoshek is an electrical engineer in the Anchorage office. Yanoshek has five years of experience in electrical/instrumentation design for a wide variety of projects ranging from industrial, government, and commercial facilities. coffman.com Fourth quarter contributions of $445,171 pushed the total above $1 million given to Alaska communities in 2015 by First National Bank Alaska and its employees. The total includes charitable gifts, activity sponsorships, and in-kind donations of time and talent during the past year. The Homer and Ruth Moseley Sports Center at Alaska Pacific University is in the swim of things again, thanks in part to a $111,280 donation from First National Bank Alaska. Alaska Pacific University needed more than $100,000 to finish badly needed repairs to the pool deck, gymnasium floor, locker rooms, and other areas. That’s when First National dove in with the contribution to help complete the project. fnbalaska.com www.akbizmag.com

Laraine Derr has been selected by AARP, the nonprofit organization for people 50 and older, to receive the 2015 AARP Alaska Andrus Award for Community Service—the Association’s most prestigious and visible state volunteer award for community service. AARP Alaska selected Laraine as her remarkable service has greatly benefited the community, supported AARP’s vision and mission, and inspired other volunteers. aarp.org A $1 million gift from BP has doubled the amount raised so far to complete the fourth floor of the new engineering building at the University of Alaska Fairbanks. The fourth floor will house the UAF Alaska Center for Energy and Power, which develops and tests alternative energy systems. BP is a longtime supporter of the university and has contributed more than $30 million to the University of Alaska system. bp.com The University of Alaska Fairbanks has selected nine journalists for the inaugural cohort of the UAF Arctic Journalism Fellowship:  Catalina Arevalo, an environmental writer and multimedia communicator based in Madrid.  Ian Cheney, an independent filmmaker known for his work on the feature documentary “King Corn.”  Gloria Dickie, an environmental reporter and photographer based in Boulder, Colorado.  Suzanne Goldenberg, who has covered the environment for The Guardian from Washington, D.C., since 2009.  Sarah Keller, an independent journalist based in Bozeman, Montana.  Tim McDonnell, Mother Jones’ environment reporter and the associate producer of Climate Desk.  Hillary Rosner, an independent journalist who has been writing about environmental issues and the complex science behind them for more than a decade.  Zoë Schlanger, a staff reporter at Newsweek magazine covering the environment, science, human health and climate change.  Ryan Schuessler, a Chicago-based independent journalist. uaf.edu Rasmuson Foundation announced that in the fourth quarter of 2015 it made seven Tier 1 awards for a total of $138,665. Tier 1 grants made October through December are:  Alaska Native Tribal Health Consortium ($25,000) in Anchorage will purchase furniture and equipment for the Alaska Native Medical Center Family Birthing Services.  Citizens for the Education Advancement of Alaska’s Children in Anchorage ($5,000) will make technology upgrades to its Ed Connector, an interactive portal serving school districts statewide.  Nordic Journeys ($25,000) will purchase a vehicle to transport rural athletes, coaches and ski equipment to ski events in the Anchorage area. Nordic Journeys creates sustainable Nordic ski programs in communities statewide.  Fairbanks Youth Advocates ($21,571) will purchase furniture for its counseling offices and reception area.  Sheldon Museum and Cultural Center ($25,000) in Haines will install shelving for collections storage.  Perseverance Theatre ($25,000) of Juneau will use its grant for program infrastructure and performance costs associated with Vera Starbard’s new work, “Our Voices Will Be Heard.”  Craig Waverunners Swim Club ($12,094) in Craig will purchase sports and technology equipment. rasmuson.org R June 2016 | Alaska Business Monthly

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Business Events JUNE

JUN

2-5

Alaska Optometric Association Summer CE Conference

Land’s End Resort: The mission of the AKOA is to influence the future of eye care by ensuring the welfare of Alaskans and promoting the continued development of the profession of optometry. akoa.org

JUN

12-16

International Conference on Bear Research & Management

Dena’ina Center, Anchorage: An opportunity for bear professionals to present current research and management and conservation efforts. The theme is “Learning from our past to inform our future.” bearbiology.com

JUN

CSTE Annual Conference

Anchorage: The conference connects more than 1,400 public health epidemiologists from across the country and will include workshops, plenary sessions with leaders in the field of public health, oral breakout sessions, roundtable discussions, and poster presentations. csteconference.org/2016/

19-23

JUN

Arctic Ambitions V Conference

Sheraton Anchorage Hotel: This annual event uniquely focuses on business and investment opportunities flowing from developments in the Arctic. wtcak.org

23-24 JUN

20-24

AUG

JULY Alaska Business Week

Aleutian Life Forum

Unalaska: Aleutian Life Forum is a conference gathering of national, state, and regional scientists; industry stakeholders; community leaders; and local knowledge to promote resilient coastal communities. aleutianlifeforum.com

16-20 AUG

AML Annual Summer Conference

Anchorage: The AML Board of Directors, Alaska Conference of Mayors, Alaska Municipal Management Association, and Legislative meet to work on AML policies and platform and to conduct business for each group. akml.org

17-19 AUG

21-23

NTCA Northwest Regional Conference

Hilton Hotel, Anchorage: NTCA–The Rural Broadband Association is the premier association representing nearly nine hundred independent, community-based telecommunications companies that are leading innovation in rural and small-town America. ntca.org

AUG

23-25

SEPTEMBER

SEP

14-17

Alaska Association of REALTORS Convention

Centennial Hall, Juneau: The annual convention includes keynote and guest speakers and opportunities for ECE credits. alaskarealtors.com

SEP

Alaska Fire Conference

SEP

Alaska Oil & Gas Congress

Alaska Pacific University, Anchorage: Alaska Business Week is a one-week summer program teaching the basic principles of private sector business to Alaskan high school students. alaskachamber.com

Fairbanks: Includes training, workshops, lectures, and a firefighter competition. The 2015 theme is “Leading the Way.” alaskafireconference.com

AUGUST

The Congress includes critical market assessments, the latest information from key industry players, and information on key issues impacting Alaska’s energy future. alaskaoilandgascongress.com

16-23

AUG

11th Annual Renewable Energy Fair

Chena Hot Springs Resort: The Renewable Energy Fair is designed to educate the public on topics related to renewable energy and sustainability. This year’s theme, “Thinking Green and Keeping It Clean!” will be centered around a land-fill free environment. chenahotsprings.com

AUG

104

21-22

22-24

ICETECH 16

Hotel Captain Cook, Anchorage: The Arctic Section of the Society of Naval Architects and Marine Engineers together with Alaska’s Institute of the North is now well on the way to staging the premiere international conference on ships and structures in ice. icetech16.org

15-18

14-17

SEP

22-24

SEP

23 & 27

Alaska Superintendents Association Fall Conference

Wasilla: The pre-conference takes place September 21. alaskaacsa.org

Museums Alaska Annual Conference

Juneau: This year’s conference theme is “Mission Possible: Creating Opportunity.” museumsalaska.org

Alaska Writers Guild/SCBIW Annual Conference

BP Energy Center: Two full days of breakouts, keynotes, and panels, plus optional intensives, manuscript reviews, a juried illustrator portfolio display, and of course a Saturday children’s literature rack in association with the Society of Children’s Book Writers and Illustrators. alaskawritersguild.com

SEP

Alaska Snow Symposium

Dena’ina Center, Anchorage: A one-day trade show for the snow and ice management industry brought to Alaska by the Snowfighters Institute. alaskasnowsymposium.com

SEP

Alaska Business Monthly’s Top 49ers Luncheon

Dena’ina Center, Anchorage: Come to our annual luncheon honoring the top Alaska companies ranked by gross revenue. Contact: Ana Lavignino, 907-276-4373, accounts@akbizmag.com, akbizmag.com

2016 Alaska Chapter of ASA Annual Conference

Alaska Pacific University, Anchorage: The meeting features a workshop on “Bayesian Inference in Stan” by Daniel Lee, a research scientist from Columbia University. community.amstat.org/alaskachapter

Southcentral Foundation Alaska Conference

Anchorage: Southcentral Foundation’s mission is to work with the Native Community to achieve wellness through health and related services. southcentralfoundation.com

JUL

Compiled by Tasha Anderson

OCTOBER

OCT

3-6

ATIA Annual Convention & Trade Show

Anchorage: The Alaska Travel Industry Association is the leading nonprofit trade organization for the state’s tourism industry. alaskatia.org

OCT

11-12

Alaska Coalition on Housing and Homelessness Conference

Anchorage: Events include keynote speakers and training sessions. alaskahousing-homeless.org/conference

OCT

12-14

Alaska Chamber Policy Forum and Conference

Kenai: Open to the public, the Alaska Chamber’s Annual Conference is the state’s premier business conference. Traditionally held in the fall, the Conference draws 200-225 attendees and features keynote speakers, panel discussions and breakout sessions on issues of statewide concern to Alaska business. alaskachamber.com

OCT

20-22

Alaska Federation of Natives Annual Convention

Fairbanks: Annual gathering of Alaska Native peoples to discuss current news and events on a state, national and international level. This year’s theme is “50 Year: Reflect, Refresh, Renew.” nativefederation.org

OCT

AAHPA Annual Conference

Unalaska/Dutch Harbor: This is the annual conference of the Alaska Association of Harbormasters & Port Administrators. alaskaharbors.org

26-30

Alaska Business Monthly | June 2016 www.akbizmag.com

ALASKA TRENDS

By Khristian Viray

Increased Worldwide Air Travel is Evident in Alaska

orldwide, more people than ever are traveling by air. Airports Council International, a global association of large airports, noted a 6.1 percent rise in total passengers in 2015 over 2014. Out of the seven hundred plus registered airports in Alaska (a figure that includes remote landing strips), the two busiest are Ted Stevens Anchorage International Airport and Fairbanks International Airport. The global upward trend is evident in the passenger counts of the two airports. Ted Stevens alone served an approximate 5.5 million arrivals and departures in 2015, which is about 6.7 percent more passenger trips than 2014. Out of the total passengers, 2.7 million were enplanements. Ted Stevens employs 350 individuals directly and a further 15,577 jobs are tied to the airport in some way, about one in ten jobs in Anchorage. Based on 2015 data from Airports Council International, Anchorage has retained its power status in the air cargo world and currently ranks second in the United States and fourth in the world in metric tons of cargo processed. Fairbanks’ numbers have held steady, increasing by 2 percent in 2015 at around 1 million passenger arrivals and departures. It employs about one hundred people. Both airports should see further upticks for 2016 as the visitor industry expects a banner year. Tourism is predicted to grow by approximately 3 percent in 2016 according to the Alaska Travel Industry Association, and about half of the state’s visitors arrive by air, with cruise ships making up the balance. Data from both airports shows that passenger counts begin to increase in May and peak in July. The data combined the enplaned, deplaned, and in-transit passengers for each month.

Anchorage and Fairbanks Total Passenger Counts (In Thousands)

January February March April May June July August September October November December

Anchorage 2014 2015 332 344 299 312 374 401 319 352 450 472 554 619 664 710 632 674 446 459 382 389 345 365 347 395

Fairbanks 2014 2015 70 72 71 67 94 90 69 66 87 92 116 118 128 128 127 125 90 92 76 78 66 76 71 84

During the peak months of June, July, and August, total passenger counts increased in Anchorage by 8.2 percent in 2015 or about 150,000 more passengers than 2014, pointing to a strong year for the visitor industry. However, peak season numbers saw little movement in Fairbanks. As for 2016, available data indicates that travel to Alaska has already picked up. Between January and February 2016, Ted Stevens has served about 680,000 passenger trips, about 22,000 more trips than 2015 during the same time period and 46,000 more than 2014. During the same range, Fairbanks has served about 149,000 passenger trips, about 9,400 more than 2015. R

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

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ALASKA TRENDS

Indicator

By Khristian Viray

Units

GENERAL Per Capita Personal Income—Alaska US $ Per Capita Personal Income—United States US $ Consumer Prices—Anchorage 1982-1984 = 100 Consumer Prices—United States 1982-1984 = 100 Bankruptcies Alaska Total Number Filed Anchorage Total Number Filed Fairbanks Total Number Filed Labor Force in Alaska Thousands Unemployment Rate Alaska Percent United States Percent Employment Alaska Thousands Anchorage/Mat-Su Region Thousands Anchorage, Municipality Thousands Interior Region Thousands Fairbanks North Star Borough Thousands Southeast Thousands Juneau, City and Borough Thousands Northern Region Thousands Gulf Coast Thousands Southwest Region Thousands Sectorial Distribution—Alaska Total Nonfarm Thousands Goods-Producing Thousands Mining and Logging Thousands Mining Thousands Oil & Gas Thousands Construction Thousands Manufacturing Thousands Seafood Processing Thousands Service-Providing Thousands Trade, Transportation, Utilities Thousands Wholesale Trade Thousands Retail Trade Thousands Food & Beverage Stores Thousands General Merchandise Stores Thousands Trans/Warehouse/Utilities Thousands Air Transportation Thousands Information Thousands Telecommunications Thousands Financial Activities Thousands Professional & Business Svcs Thousands Educational & Health Services Thousands Health Care Thousands Leisure & Hospitality Thousands Accommodation Thousands Food Svcs & Drinking Places Thousands Other Services Thousands Government Thousands Federal Government Thousands State Government Thousands State Education Thousands Local Government Thousands Local Education Thousands Tribal Government Thousands PETROLEUM/MINING Crude Oil Production—Alaska 106

Millions of Barrels

Period

Latest Report Period

Previous Report Period (revised)

Year Ago Period

Year Over Year Change

4thQ15 4thQ15 2ndH15 2ndH15

55,936.0 48,208.0 216.7 237.7

55,818.0 47,929.0 217.1 236.2

54,863.0 46,730.0 216.8 237.0

2.0% 3.2% 0.0% 0.3%

March March March March

30.0 25.0 2.0 356.1

31.0 25.0 2.0 357.0

34.0 24.0 4.0 360.3

-11.8% 4.2% -50.0% -1.2%

March March

7.3 5.0

7.7 4.9

7.1 5.5

2.8% -9.1%

March March March March March March March March March March

329.9 187.9 147.4 47.2 42.2 32.4 15.8 9.8 34.1 18.3

329.5 188.2 147.6 47.0 42.1 32.0 15.8 10.0 33.7 18.5

333.9 190.1 149.1 47.8 42.9 32.5 16.1 10.5 34.3 18.6

-1.3% -1.0% -1.0% -1.7% -1.9% -1.5% -1.9% -4.6% -1.7% -0.5%

March March March March March March March March March March March March March March March March March March March March March March March March March March March March March March March March March

327.1 42.8 15.5 15.4 12.5 14.4 12.9 9.8 248.3 63.5 6.2 37.6 6.1 10.6 19.7 5.3 6.1 4.1 12.2 28.3 49.1 36.0 30.5 6.6 19.7 11.7 82.9 15.0 25.4 8.1 42.5 24.0 3.6

326.2 43.0 15.9 15.7 12.9 14.2 12.9 9.7 283.2 63.5 6.3 37.2 6.1 10.5 20.0 5.5 6.1 4.1 12.2 27.7 48.7 35.7 30.7 6.3 20.3 11.7 82.6 14.7 25.2 8.1 42.7 24.1 3.6

328.1 46.8 17.7 17.5 14.8 15.9 13.2 9.6 281.3 61.7 6.5 35.5 5.8 10.2 19.7 5.3 6.4 4.3 11.6 29.2 47.1 34.3 30.8 6.5 20.2 11.5 83.0 14.4 26.6 8.6 42.0 24.2 3.5

-0.6% -8.1% -10.2% -10.3% -12.8% -10.7% -2.3% 1.0% 0.7% 2.9% -3.1% 4.8% 5.2% 2.9% 1.5% 3.8% -4.7% -4.7% 5.2% -5.1% 3.4% 4.1% -0.3% -3.1% 0.5% 1.7% -0.5% 2.1% -5.3% -5.8% 1.7% -0.4% 2.9%

March

15.8

14.7

13.6

16.2%

Alaska Business Monthly | June 2016 www.akbizmag.com

ALASKA TRENDS

By Khristian Viray Latest Report Period

Previous Report Period (revised)

Year Ago Period

Year Over Year Change

Indicator

Units

Period

Natural Gas Field Production—Alaska ANS West Coast Average Spot Price Hughes Rig Count Alaska United States Gold Prices Silver Prices Zinc Prices

Billions of Cubic Ft. $ per Barrel

March March

7.6 38.1

7.6 31.1

7.6 52.2

-0.3% -27.0%

Active Rigs Active Rigs $ Per Troy Oz. $ Per Troy Oz. $ Per tonn

March March March March March

10.0 464.0 1,235.3 15.4 1,801.7

11.0 502.0 1,234.5 14.8 1,709.9

12.0 1,048.0 1183.10 16.6 2,028.7

-16.7% -55.7% 4.4% -7.2% -11.2%

Millions of $ Millions of $ Millions of $ Millions of $

March March March March

73.6 10.4 31.1 32.0

20.7 4.5 13.7 2.4

53.5 13.5 34.9 5.5

37.6% -23.0% -10.9%

Dollars Dollars Dollars

4thQ15 4thQ15 4thQ15

277,338.0 188,235.0 697,162.0

287,606.0 190,451.0 458,177.0

271,398.0 189,752.0 397,748.0

2.2% -0.8% 75.3%

Dollars Dollars

4thQ15 4thQ15

230,430.0 163,119.0

229,493.0 149,952.0

234,098.0 156,479.0

-1.6% 4.2%

Units Units Units

4thQ15 4thQ15 4thQ15

134.0 7.0 203.0

186.0 19.0 97.0

151.0 9.0 122.0

-11.3% -22.2% 66.4%

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

Thousands Thousands

March March

406.1 97.3

327.3 76.2

401.70 90.3

1.1% 7.8%

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

50,350.3 51,309.7 79.6 238.5 83.0 -51.6 -112.1

50,087.4 51,199.4 53.8 -1,724.7 45.2 -19.6 -1,301.3

53,587.4 54,604.4 247.9 1,198.5 -83.2 -19.7 1,055.4

-6.0% -6.0% -67.9% -80.1% 199.8% -161.9% -110.6%

BANKING (excludes interstate branches) Total Bank Assets—Alaska Cash & Balances Due Securities Net Loans and Leases Other Real Estate Owned Total Liabilities Total Bank Deposits—Alaska Noninterest-bearing deposits Interest- bearing deposits

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

4thQ15 4thQ15 4thQ15 4thQ15 4thQ15 4thQ15 4thQ15 4thQ15 4thQ15

6,240.2 230.2 145.1 3,024.5 22.5 5,420.3 4,275.3 1,895.6 2,379.7

6,340.2 378.4 148.2 2,970.6 20.4 5,515.1 4,717.2 2,097.1 2,620.1

3,994.74 207.48 154.35 2,313.63 10.57 3,506.48 3,340.30 1,000.84 2,327.83

56.2% 10.9% -6.0% 30.7% 112.9% 54.6% 28.0% 89.4% 2.2%

FOREIGN TRADE Value of the Dollar In Japanese Yen In Canadian Dollars In British Pounds In European Monetary Unit In Chinese Yuan

Yen Canadian $ Pounds Euro Yuan

March March March March March

113.1 1.3 0.7 0.9 6.5

113.6 1.3 0.7 0.9 6.5

119.3 1.26 0.67 0.91 6.1

-5.2% 1.6% 4.5% -3.3% 6.1%

REAL ESTATE Anchorage Building Permit Valuations Total Residential Commercial Government Average Loan in Housing Market Statewide Single-Family Condominium Multi-Family Refinance Average Loan Statewide Single-Family Condominium New Housing Built Statewide Single-Family Mobile Home Multi-Family

Notes: 1. Banking data has been updated to include Alaska State Banks and Alaska’s sole federally chartered, Alaska-based bank, First National Bank Alaska. 2. Information on housing is retrieved from AHFC website.

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June 2016 | Alaska Business Monthly

107

ADVERTISERS INDEX Alaska Logistics...............................................................50 Alaska Mergers & Acquisitions LLC........................... 83 Alaska Procurement Technical Assistance Center................................... 54 Alaska Railroad.................................................................59 Alaska Traffic Company............................................... 60 Alaska USA Federal Credit Union............................... 29 Alaska USA Insurance Brokers.....................................31 American Fast Freight.......................................................3 American Marine / Penco...........................................105 Anchorage Messenger Service.....................................59 Arctic Office Products...................................................30 AT&T......................................................................................9 C & R Pipe and Steel Inc.................................................14 Calista Corp. / STG..........................................................81 Carlile Transportation Systems............................. 27, 61 Ch2m...................................................................................73 CIRI Alaska Tourism........................................................ 54 Colonial Life ......................................................................32 Construction Machinery Industrial...............................2 Cornerstone Advisors.....................................................33 Cruz Construction Inc.....................................................15

ESS Labor Services..........................................................18 Everts Air Cargo - Tatonduk Outfitters.....................77 Explore Fairbanks............................................................53 First National Bank Alaska..............................................5 Foss Maritime.................................................................. 43 Fountainhead Hotels...................................................... 85 GCI.............................................................................26, 110 Great Originals Inc.......................................................... 83 Judy Patrick Photography.......................................... 108 Landye Bennett Blumstein LLP....................................14 Lynden Inc..........................................................................51 Matson Inc......................................................................... 11 Motive Power Marine.................................................... 78 N C Machinery..................................................................55 NCB......................................................................................32 North Star Behavioral Health.......................................18 Northern Air Cargo................................................. 96, 97 Olympic Tug & Barge......................................................65 Pacific Coast Maritime...................................................65 Pacific Pile & Marine........................................ 93, 94, 95 Parker Smith & Feek....................................................... 45 PenAir..................................................................................71

Personnel Plus................................................................. 99 Petrotechnical Resources Alaska (PRA)..................109 Port of Valdez.................................................................. 66 Prestige Care and Rehabilitation of Anchorage......39 PRL Logistics.....................................................................67 Ravn Alaska.......................................................................13 Ritchie Brothers Auctioneers.......................................17 Seatac Marine Service....................................................65 Seekins Ford Lincoln Mercury Fleet...........................19 Span Alaska Transportation Inc..................................44 Stellar Designs Inc.......................................................... 99 Ted Stevens International Airport.............................. 72 TOTE Maritime Alaska................................................... 69 Trailercraft Inc. / Freightliner of AK............................79 Tulalip Casino Resort......................................................41 Turnagain Marine Construction.................................. 43 Tutka LLC........................................................................... 26 UIC Bowhead Marine Services...................................68 Vigor Alaska...................................................................... 49 Washington Crane & Hoist..........................................10 Waste Management...................................................... 40 Yukon Equipment Inc..................................................... 25

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108

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