Legislature(2025 - 2026)BUTROVICH 205
03/11/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Port Mackenzie: Multimodal Infrastructure Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 11, 2025
1:46 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Mike Shower
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
PRESENTATION(S): PORT MACKENZIE: MULTIMODAL INFRASTRUCTURE
DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MEGHAN CLEMENS, Director
External Affairs
Alaska Railroad Corporation (ARRC)
Anchorage, Alaska
POSITION STATEMENT: Co-presented Port MacKenzie Multimodal
Infrastructure Development.
DAVID GRIFFIN, Port Operations Manager
Port MacKenzie
Matanuska-Susitna Borough
Anchorage, Alaska
POSITION STATEMENT: Co-presented Port MacKenzie Multimodal
Infrastructure Development.
ACTION NARRATIVE
1:46:55 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:46 p.m. Present at the call to
order were Senators Kiehl, Tobin, and Chair Bjorkman. Senator
Shower arrived thereafter.
^PRESENTATION(S): PORT MACKENZIE: MULTIMODAL INFRASTRUCTURE
DEVELOPMENT
PRESENTATION(S): PORT MACKENZIE: MULTIMODAL INFRASTRUCTURE
DEVELOPMENT
1:47:32 PM
CHAIR BJORKMAN announced the presentation Port MacKenzie
Multimodal Infrastructure Development.
1:48:38 PM
DAVID GRIFFIN, Port Operations Manager, Port MacKenzie,
Matanuska-Susitna Borough, Anchorage, Alaska, introduced himself
and gave a brief overview of the presentation structure. He said
that Port MacKenzie and the surrounding (borough-owned) port
district lands - is a multimodal gateway to Southcentral and
Interior Alaska. He described how the location attracts a wide
variety of maritime industry operators and business interests.
He noted that other ports in the region are experiencing (among
other things) congestion and issues related to aging
infrastructure and indicated that Port MacKenzie is an
alternative that can meet operators' needs. He said that Port
MacKenzie seen an increase in business from several new
operators and briefly described these. He discussed how Port
MacKenzie has been utilized by the military and offered
examples.
1:52:18 PM
MR. GRIFFIN shared about the Pile Sleeve Protection Project,
which is expected to add 25 years to the life of the dock. He
briefly discussed additional dock upgrades. He shared
information on the design process for the new barge haul-out
facility.
1:53:54 PM
MR. GRIFFIN advanced to slide 2, which shows a map of Alaska
with Cook Inlet circled in red. He noted that Port MacKenzie is
situated at the top of the circle.
1:54:10 PM
MR. GRIFFIN advanced to slide 3, which shows a map of the area.
Port MacKenzie, Port of Alaska, Knik Arm, Turnagain Arm, and
Upper Cook Inlet are labeled on the map. He explained that Port
MacKenzie is located at the base of the Knik Arm. The port is
subject to extreme tidal fluctuations (30 feet per tide cycle,
on average) as a result of its location. He noted that the water
is silty, cold, and can contain ice at times.
1:54:51 PM
MR. GRIFFIN advanced to slide 4, which shows a regional access
map indicating Port MacKenzie's current and proposed access. He
noted that Port MacKenzie is outlined in red (roughly 9,000
acres). He said that acreage surrounding the port is dedicated
to industrial use in support of the port. He noted that
additional land could be utilized for port expansion in the
future. He explained that Port MacKenzie is approximately 90
miles from Anchorage by road. He briefly described the path to
the port from Anchorage and the surrounding area. The road is
paved and the port has power. He noted the green hatch-line on
the map, which is the Port MacKenzie Rail Extension (PMRE). He
briefly discussed the status of PMRE. He noted the yellow hatch-
line, which is the West Susitna Access Route. He briefly
discussed the status and benefits of this route.
1:57:54 PM
MR. GRIFFIN advanced to slide 5, which shows a map of Port
MacKenzie current and proposed access. He explained the location
of Port MacKenzie in relation to Fairbanks. He stated that Port
MacKenzie is the only port that can service the export of bulk
commodities. He briefly discussed the ports in Anchorage,
Seward, and Whittier and emphasized that Port MacKenzie is the
natural fit for exporting natural resources.
1:59:51 PM
MR. GRIFFIN advanced to slide 6, a photo illustrating the 2-mile
distance between Port MacKenzie and the Port of Alaska. He He
stated that Port MacKenzie differs from the Port of Anchorage.
He explained that Port MacKenzie is an industrial port and was
originally planned as a bulk commodity export port. Wood chips
were previously shipped to Asia, where they were processed into
paper. He briefly discussed the surrounding maritime industry,
pointing out that skilled labor and equipment is nearby.
2:00:45 PM
MR. GRIFFIN advanced to slide 7, an image of containers being
loaded onto a Seatac Marine Services barge.
2:01:02 PM
MR. GRIFFIN advanced to slide 8, an image of Port MacKenzie with
the barge dock and deep draft dock labeled. He noted the small
size of the port, which was originally built in 2000 and
expanded in 2004 and 2010. He briefly discussed the various
aspects of the dock and their uses.
2:02:32 PM
MR. GRIFFIN advanced to slide 9, an image of a paved access
road, high mast lights, gravel pad, three-phase power, terminal
building, and dock. He noted that the port is utilized year-
round. He shared that the first ship to dock at Port MacKenzie
docked in winter 2005.
2:03:00 PM
MR. GRIFFIN advanced to slide 10, which describes the deep draft
dock and contains an image of the JP Azure. This is the largest
ship to dock at the port. The deep draft dock consists of
trestle, platform, catwalk, lighting, breasting dolphins,
mooring dolphins, motorized capstans, and quick release mooring
hooks.
2:03:27 PM
MR. GRIFFIN advanced to slide 11, an image of the barge dock.
The barge dock is 375' long to 20' at MLLW. He noted the large
pile of Peruvian salt in the image, which was part of a
Department of Transportation and Public Facilities (DOTPF)
winter maintenance contract. He briefly explained the process of
transporting this product, which is similar to a hub and spoke
model.
2:04:04 PM
MR. GRIFFIN advanced to slide 12, an image of a Cruz
Construction, Inc. barge and a bow ramp at high tide. He briefly
described the products transported Cruz Construction, Inc. and
the company's transport timeline.
2:04:34 PM
MR. GRIFFIN advanced to slide 13, an image of several vessels
(barge, cargo vessel, etc.) at the dock at high tide. He pointed
out that, in the image, all three berths were occupied by
different operators.
2:05:06 PM
MR. GRIFFIN advanced to slide 14, a map titled, Port MacKenzie
Area Overview - land status. He said that the area contains a
great deal of private property. He surmised that this is an
indicator that growth will continue. The map legend indicates
the following land ownership: Borough, Mental Health Trust,
Native Corporations, Public University, State, No Data (likely
State), and Private. The Port District boundary is outlined in
red. Proposed Knik Arm Bridge and Toll Authority (KABATA) Right-
of-way (ROW) and Port MacKenzie Rail Extension (PMRE) are also
indicated.
2:06:21 PM
MR. GRIFFIN advanced to slide 15, a map titled, Port MacKenzie
Area Overview - land status, zoomed in to show the land
ownership that falls within the area. He commented on the
potential opportunity in this area. He stated that the land is
zoned as industrial/commercial. He briefly discussed the map
focal points, noting the Chugach Electric substation.
2:07:30 PM
MR. GRIFFIN advanced to slides 16 and 17. Slide 16 shows the
Atlas and the Dalarna (June 2020) in port at high tide. This ish
is contrasted with Slide 17, which shows the Industrial Brio
(390' Long x 64' Wide, 25' Draft) at low tide. Slide 17 also
indicates deep draft dock piles that are exposed at low tide.
Tidal fluctuations average 30' or more per tide cycle. The
outgoing tide (ebb) speed is 5-7 knots. Incoming tide (flood)
average speed is 3-4 knots. He stated that the water is cold and
contains sediments.
2:08:16 PM
MR. GRIFFIN advanced to slide 18, an image of the Keoyang
Majesty, in dock on February 3, 2005. He said this is the first
ship to dock at Port MacKenzie. He noted that ships can
successfully be brough to port in the winter.
2:08:41 PM
MR. GRIFFIN advanced to slide 19, an image of dredging with a
symbol indicating that dredging is prohibited or unnecessary.
The text reads: dredging is not required at Port MacKenzie. He
explained that one of the reasons for this is the port's
location.
2:08:54 PM
MR. GRIFFIN advanced to slide 20, which shows a map of the Knik
Arm, Port MacKenzie and Cairn Point JBER. Port MacKenzie and
Cairn Point JBER form a naturally scoured channel. He noted that
the currents in this area are strong but manageable. He added
that an upcoming navigational assessment would provide updated
information about the currents. Yearly bathymetric studies are
also done.
2:09:32 PM
MR. GRIFFI advanced to slide 21, an image of the Pile Sleeve
Project, summer 2024. He explained that the sleeves are heavy
gauge steel that surround the pile and provide protection.
2:10:14 PM
MR. GRIFFIN advanced to slide 22, an additional image of the
Pile Sleeve Project. He said that this is a best management
practice.
2:10:22 PM
MR. GRIFFIN advanced to slide 23, an aerial image of Port
MacKenzie with planned barge dock updates outlined. He noted
that the barge haul-out facility would be located on the north
side of the barge dock. The ramp would be approximately 300 feet
long and 200 feet wide, with a 7 percent grade. The ramp would
be made of rock and would not contain any steel. He explained
that this would allow the port to haul barges out of the water
and store them over the winter. He briefly discussed the
benefits of this.
2:10:44 PM
MR. GRIFFIN advanced to slide 24, a photo of the John Wormlinger
barge.
2:11:16 PM
MR. GRIFFIN advanced to slide 25, an aerial view of Port
MacKenzie with various updates noted in red.
2:11:36 PM
MR. GRIFFIN advanced to slide 26, a map of Port MacKenzie
current and proposed access.
2:11:45 PM
MR. GRIFFIN advanced to slide 27, a conceptual image of the
proposed Knik Arm bridge project.
2:12:01 PM
MR. GRIFFIN advanced to slide 28, a conceptual image of the
proposed Knik Arm bridge project. He shared his understanding
that the state is composing a feasibility study for a tunnel
instead of a bridge and expressed interest in the findings. He
reiterated that the upland area surrounding the dock could
potentially be developed in the future.
2:12:33 PM
MR. GRIFFIN advanced to slide 29, a map depicting the West
Susitna Access Road. He briefly discussed this 100-mile road,
which would bring ore to the Port District. This would be
processed on-site or shipped elsewhere for processing.
2:13:00 PM
MR. GRIFFIN advanced to slide 30, images of construction.
2:13:05 PM
MR. GRIFFIN advanced to slide 31, an Alaska Industrial
Development and Export Authority (AIDEA) map of the West Susitna
Access project. He noted land status, mineral claims, and access
routes in the area. He noted the various land ownerships.
2:13:48 PM
MR. GRIFFIN advanced to slide 32, a map indicating the West
Susitna Access alternative.
2:13:59 PM
MR. GRIFFIN advanced to slide 33, a map of the Port MacKenzie
Rail Extension (PMRE). He said PMRE is approximately 32 miles
long and connects Houston, Alaska/Miller's Reach Road to Port
MacKenzie. He briefly discussed the area's topography and the
construction of the rail.
2:14:48 PM
MR. GRIFFIN advanced to slide 34, an aerial image of the Port
MacKenzie Rail Extension. The slide states that the extension is
18 miles to mainline.
2:15:00 PM
MR. GRIFFIN advanced to slide 35, a map of the Port MacKenzie
Rail Extension construction status. There are six segments.
Segment six begins in Houston (Y). This section has track and is
currently in use. He briefly discussed the following segments,
noting that the section from segment 6 to [W. Ayrshire Ave] is
completed (i.e. bridges and embankment are completed for
segments 3-5). Segment 2 is incomplete. Segment 1 is completed.
2:15:56 PM
MR. GRIFFIN advanced to slide 36, an image of the SW segment (5,
6) of the Port MacKenzie Rail Extension. The slide states that
it is 18 miles to Titan Plant.
2:16:14 PM
MR. GRIFFIN advanced to slide 37, showing a SW view of Segment 5
of the Port MacKenzie Rail Extension.
2:16:18 PM
MR. GRIFFIN advanced to slide 38, showing Port MacKenzie Rail
Extension Segment 4.
2:16:20 PM
MR. GRIFFIN advanced to slide 39, showing Port MacKenzie Rail
Extension Segment 3.
2:16:23 PM
MR. GRIFFIN advanced to slide 40, showing Port MacKenzie Rail
Exension Segment 2. He noted that this segment contains farmland
and stated that the section on the right is the cleared right-
of-way, where the embankment would be constructed.
2:16:41 PM
MR. GRIFFIN advanced to slide 41, showing Port MacKenzie Rail
Extension Segment 1/2. This is where segment 2 meets segment 1.
the image is looking north.
2:16:53 PM
MR. GRIFFIN advanced to slide 42, an image of Port MacKenzie
Rail Extension Segment 1 Rail Loop.
2:17:00 PM
MR. GRIFFIN advanced to slide 43, an aerial view of the Port
MacKenzie Rail Extension Rail Loop. The PMRE Rail Loop is on an
approximately 80 acre parcel and is approximately 1 mile long.
2:17:14 PM
MR. GRIFFIN advanced to slide 44, an aerial image of Port
MacKenzie.
2:17:18 PM
MR. GRIFFIN advanced to slide 45, a map of the Port MacKenzie
Current and Proposed Access, highlighting the Port MacKenzie
Rail Extension (under construction).
2:17:22 PM
MR. GRIFFIN advanced to slide 46, contact information.
2:17:29 PM
MEGHAN CLEMENS, Director, External Affairs, Alaska Railroad
Corporation (ARRC), Anchorage, Alaska, said ARRC has worked
closely with the ports and Mat-Su Borough on the PMRE project.
She noted that there are updates since the ARRC presented its
overview to the Senate Transportation Standing Committee. She
stated that ARRC would ultimately own and operate PMRE. She
emphasized the relevance to Port MacKenzie, the surrounding
area, and the state. She said this is reflected in the state's
investment in the project and noted that over $180 million has
been invested and a large amount of significant work has been
completed. She acknowledged that the project has been dormant
for the past 10 years as a result of budget constraints. She
stated that ARRC and the Mat-Su Borough have remained engaged in
seeking opportunities to advance the project; however,
construction has not yet resumed.
2:19:21 PM
MS. CLEMENS stated that in 2021, ARRC submitted a federal grant
application to build the extension from the mainline to the
Titan Plant. This would have allowed liquified natural gas
transport to the interior. However, this effort was not
successful. This market is no longer available. However, she
said that ARRC is looking into other grant opportunities and
potential customers.
2:19:52 PM
MS. CLEMENS briefly discussed the remaining work to be done on
PMRE. The majority of the embankment work is complete; however,
one section is incomplete. She surmised that grade repairs and
sub ballast repairs are needed after 10 years of dormancy. She
noted that the Y-section (in segment 6) and communications also
need work. Work is also needed near the port. An estimate done
at the end of 2023 determined that an additional $275-$300
million is required to complete the project. She acknowledged
that this is a large amount and indicated that ARRC would take
advantage of available grants for this project. She briefly
discussed the grants that ARRC would apply for. ARRC is
considering ways to meet match requirements. She said that ARRC
is considering ways to replicate the model used for the Seward
passenger dock replacement project for PMRE. She briefly
discussed the search for an anchor tenant and offered examples
to illustrate the volume needed. She said that ARRC has
partnered with Port MacKenzie, Representative McCabe, and the
Mat-Su Borough to reach out to customers and businesses to gauge
interest. A number of customers are interested in utilizing PMRE
for incidental moves. She indicated that this is not sufficient
to fund the rail.
2:24:53 PM
MS. CLEMENS said that a small number of customers indicated that
they would move current operations to Port MacKenzie if track
were already in place. This would provide one-third of the
needed volume. She indicated that this could potentially grow
with time. A small group of large projects are currently in the
conceptual/planning stage but could potentially provide the
volume needed. She stated that bonding would be difficult for
ARRC without an anchor tenant. ARRC will continue business
outreach and continue looking for customers.
2:26:20 PM
SENATOR KIEHL asked about past coal transport.
2:26:38 PM
MS. CLEMENS replied that the Usibelli coal mine in Healy, Alaska
sent coal to the dock in Seward. She stated that at the height
of the market, ARRC hauled over 1 million tons of coal. She
explained that changes in the global market for export coal
impacted the mine. The equipment used to handle coal at the dock
has been dismantled. She acknowledged that this is one example
of a high-volume customer that could meet the model.
2:27:47 PM
SENATOR SHOWER commented that there is a resurgence of coal
market. He shared his understanding that the coal mine would
need to purchase rail cars. He emphasized the importance of PMRE
for economic growth and state activity and acknowledged that
without funding, the project cannot proceed. With respect to the
anchor tenant, he asked about the business plan model. He asked
about US Coast Guard. He asked about tax impact for acreage. He
asked about the short line railroad potentially taking over the
project.
2:30:02 PM
MR. GRIFFIN replied that, with respect to an anchor tenant
and/or businesses, the Mat-Su Borough has shared this
information with ARRC. The Mat-Su Borough and ARRC have met
regularly over the past few months to discuss this. Port
MacKenzie has one agreement in place, with Central Alaska
Energy. He briefly discussed this agreement. He said the port
has struggled with the question of an anchor tenant. He noted
that a fuels company recently expressed interest and described
how they would utilize the port and rail extension. He noted
discussion about expanding cement import, which would utilize
the rail. However, there is nothing firm. He noted discussions
with the Ambler Mine and hydrogen fuel companies that have
expressed interest. He stated that the borough is considering
all long-term agreements. He opined that an increase in resource
production could provide business for the rail (both to and from
the port). He said one company is interested in drilling for
ammonia in the Houston, Alaska area. The rail would be used to
move the ammonia to the port for export. He reiterated that
there are many potential projects to consider; however, nothing
is firm.
2:34:12 PM
MR. GRIFFIN he that he has not spoken with the US Coast Guard
but would be welcome this discussion. He commented that there is
room for a base in the surrounding area.
2:34:48 PM
SENATOR SHOWER shared his understanding that the US Coast Guard
is interested in this.
2:35:05 PM
MS. CLEMENS echoed Mr. Griffin's appreciation for the ongoing
meetings and open communication between ARRC and the Mat-Su
Borough. She said that ARRC is working to capture interest and
keep the PMRE at the top of mind for potential clients and
stakeholders. She noted the economic benefits and resiliency and
emphasized that ARRC is considering all avenues that would lead
to completion of PMRE.
2:36:52 PM
MS. CLEMENS turned to the question about the Short Line and said
ARRC is open to opportunities to partner with others to complete
the rail extension. She briefly discussed the right-of-way and
said there is no obstacle to working with a private rail line.
She said that, in the case of a partnership, ARRC would seek to
understand any drastically different estimates in order to come
to a shared understanding of the proposed final infrastructure.
2:37:34 PM
SENATOR KIEHL asked about toll structure and fees.
2:37:47 PM
MR. GRIFFIN replied that there is a tariff. This is the third
version and was approved by the borough assembly. He said this
includes dockage and wharfage fees and briefly discussed these,
providing examples. He estimated that each ship at Port
MacKenzie pays $100,000. He contrasted this with barges, which
pay fewer dockage fees. He explained that Port MacKenzie is an
enterprise fund.
2:39:23 PM
SENATOR KIEHL asked whether the tariff structure factors in
depreciation.
2:39:32 PM
MR. GRIFFIN said Port MacKenzie works through the borough on
depreciation. He explained that setting up the port as an
enterprise fund was one way to factor in depreciation. He said
the port is self-supporting and not tax supported.
2:39:58 PM
SENATOR SHOWER asked whether Port MacKenzie/the Mat-Su Borough
has discussed potential funding with Alaska's congressional
delegation.
2:40:26 PM
MR. GRIFFIN replied yes. He opined that the rail plays a large
role in making Alaska more capable and said conversations have
focused on ways to fund the completion of PMRE.
2:41:17 PM
MS. CLEMENS concurred and added that ARRC has remained engaged
with the congressional delegation on this issue. She reiterated
that ARRC will continue to seek federal funding through grants.
2:41:45 PM
CHAIR BJORKMAN asked how materials move from the dock to the
rail yard in the uplands.
2:42:03 PM
MR. GRIFFIN returned to Slide 43, showing an aerial view of the
rail loop. He explained that materials would be moved to or from
the rail via chassis and driven to or from the dock. He briefly
described the distance between the railway and the dock. He
noted that it also depends on the type of cargo. He described
the different ways to transport various types of cargo.
2:44:52 PM
CHAIR BJORKMAN thanked the presenters.
2:45:13 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 2:45 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Port MacKenzie 3.11.2025.pdf |
STRA 3/11/2025 1:30:00 PM |
Port MacKenzie |