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Opinion: The Alaska Railroad needs to finish the Point MacKenzie extension

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Opinion: The Alaska Railroad needs to finish the Point MacKenzie extension


An aerial view of the Port MacKenzie rail extension leads in the Matanuska-Susitna Borough in June 2023. (Loren Holmes / ADN)

The Alaska Railroad Corp. has a clear mission: to provide safe, efficient and economical transportation and real estate services that support and grow economic opportunities for the State of Alaska. However, despite decades of operation and hundreds of millions in annual revenue, the ARRC has built no significant new track since Alaska purchased it in 1985. While the railroad thrives on tourism and maintains its infrastructure well, it has largely ignored its most critical responsibility — helping to unlock Alaska’s immense natural resource wealth for the benefit of Alaskans.

President Trump’s 2025 Executive order, Unlocking Alaska’s Extraordinary Resource Potential, underscores what many of us have known for years. Alaska’s oil, gas, critical minerals, timber and coal are not just important to our state economy; they are vital to America’s national security and pivotal to our energy future. The EO directs federal agencies to expedite projects like the Point MacKenzie Rail Spur, a 32-mile rail extension that would connect the Alaska Railroad to Port MacKenzie, one of the deepest-water ports in the state and a future export hub for our resource industries. With 75% of the project already built, including embankments, bridges and culverts, the remaining work is straightforward and shovel-ready. All that’s missing is the will to finish the job.

The ARRC made $250 million in revenue in 2022, generated $39 million in net income and did it all without a dime of operating subsidies from the state. That’s amazing and commendable, especially just a year after the pandemic. But in the process, the railroad has focused disproportionately on maintaining current operations and catering to the tourism industry. Freight, which made up 44% of revenue, remains ARRC’s core competency. It moved nearly 1.5 million tons of gravel in 2024 and continues to support oilfield operations and barge connections to the Lower 48. Yet when coal exports collapsed after 2011, the railroad chose to dismantle the Seward Coal Terminal instead of pursuing new freight corridors to diversify revenue. The lesson is simple: Alaska needs infrastructure that serves the real economy, and serves Alaskans — the owners — not just sightseeing tourists.

Port MacKenzie and the spur that would serve it are central to Alaskans’ future. Located just across Knik Arm from Anchorage, the port has a deep draft, no congestion and 9,000 acres of industrial land ready for development. The rail spur connecting it to Houston is already 75% built, with $184 million invested. The final cost to complete the spur is hotly debated. The ARRC cites a $290 million estimate, but some experts believe it can be done for closer to $100 to $150 million. Regardless, what’s clear is that the return on investment it delivers will far exceed the cost.

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This spur is not speculative. It is a strategic necessity. Companies like Trilogy Metals have already committed to shipping copper concentrates from the Ambler Mining District through Port MacKenzie. Timber exporters are eyeing the spur to reduce trucking costs. The $43 billion Alaska LNG project could use it to transport construction materials, pipe and heavy equipment. And coal and fly ash exports could resume through this more efficient port, reducing our dependence on imports and creating jobs in the process. The possibilities are endless.

The spur would also bolster Alaska’s military logistics. Fort Greely, Eielson Air Force Base and Fort Wainwright all rely on the ARRC to transport munitions, Stryker vehicles and other equipment. Completing the spur would shorten transport distances and give the Department of Defense another access point for Arctic defense. In today’s geopolitical environment, rail access to secure ports is a national security issue.

Despite this, the ARRC continues to prioritize projects like the $137 million Seward passenger dock, set to open in 2026. While tourism is important, the revenue it generates is limited, seasonal and often tied to flat-fee contracts with cruise lines. Many passengers travel in privately operated dome cars under “pull” agreements — where the cruise company pays ARRC a set fee to haul its cars — yet those riders may still be included in total passenger counts. This can give a misleading impression of the railroad’s fare-based revenue and economic impact. Alaska’s long-term prosperity lies not in cruise ships, but in our resources.

We need to finish what we started. Completing the Point MacKenzie Rail Spur is the fastest, most cost-effective way to deliver results for the Alaska economy. It aligns directly with Trump’s EO, addresses freight needs, supports national defense, and creates the foundation for job growth in mining, timber, energy and construction. It reduces shipping costs by 32 miles compared with Anchorage, and by 140 miles compared with Seward. That’s a competitive edge Alaska cannot afford to ignore.

The ARRC must remember who it works for. It is a state-owned corporation, funded by public investment, accountable to all Alaskans. Our citizens expect it to grow the economy, not just maintain what already exists. The time for half-measures is over. The Point MacKenzie Rail Spur is ready, relevant and overdue. It is the key to unlocking the next chapter of Alaska’s resource economy, and we must not let bureaucratic inertia or competing port politics stand in the way.

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Let’s finish the spur, open Port MacKenzie to full-scale development, and secure Alaska’s place as a global resource and strategic powerhouse. The time to act is now.

Kevin McCabe is the representative for House District 30, which encompasses Point MacKenzie, Big Lake and follows the Parks Highway all the way up to Anderson.

• • •

The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.





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Alaska

Trump Repeals Biden Land Protections in Alaska, Other States

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Trump Repeals Biden Land Protections in Alaska, Other States


President Donald Trump on Thursday signed several congressional measures designed to undo Biden administration land conservation policies restricting energy development in the Arctic National Wildlife Refuge and federal lands in three Western states.



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Alaska Hosts US Bomber Exercise Against ‘Threats to the Homeland’

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Alaska Hosts US Bomber Exercise Against ‘Threats to the Homeland’


The United States deployed two bombers to simulate strikes against “maritime threats” to the homeland in response to a growing Russian and Chinese presence near Alaska.

Newsweek has contacted China’s Foreign Ministry for comment by email. Russia’s defense and foreign ministries did not immediately respond to a request for comment.

Why It Matters

Russia and China have closely cooperated in military matters under their “partnership without limits,” including a joint naval maneuver in the north Pacific near Alaska’s Aleutian Islands involving 11 Russian and Chinese vessels in summer 2023.

Facing a growing Moscow-Beijing military partnership, along with increased Chinese activities in the Arctic, the U.S. has been reinforcing its military presence in Alaska by deploying warships and conducting war games with its northern neighbor, Canada.

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Bombers, capable of flying long distances and carrying large amounts of armaments, are a key instrument for the U.S. military to signal its strength. The American bomber force has recently conducted operations as a show of force aimed at Russia and China.

What To Know

According to a news release, the Alaskan Command executed simulated joint maritime strikes with Air Force B-52H bombers and the Coast Guard national security cutter USCGC Kimball in the Gulf of Alaska on Tuesday as part of Operation Tundra Merlin.

The bombers are assigned to the 2nd Bomb Wing out of Barksdale Air Force Base in Louisiana, while the Kimball is homeported in Honolulu. The 354th Fighter Wing at Eielson Air Force Base in Alaska also deployed four F-35A stealth fighters.

Other supporting units included two KC-135 aerial refueling aircraft and an HC-130 aircraft on standby to conduct personnel recovery missions, the news release said.

During the operation, the bombers received target information from the Kimball for standoff target acquisition and simulated weapons use, while the F-35A jets—tasked with escorting the bombers—enhanced mission security and operational effectiveness.

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According to an Air Force fact sheet, each B-52H bomber has a maximum payload of 70,000 pounds and is capable of carrying up to 20 standoff weapons—designed to be fired from outside enemy defenses—such as the Joint Air-to-Surface Standoff Missile.

The simulated strikes “demonstrated the capability of the [U.S. Northern Command] and its mission partners to deter maritime threats to the homeland,” the news release said.

Homeland defense is the Alaskan Command’s top priority, said its commander, U.S. Air Force Lieutenant General Robert Davis, adding that the ability to integrate with other commands and partners is key to safeguarding the U.S. northern approaches.

What People Are Saying

U.S. Air Force Lieutenant General Robert Davis, the commander of the Alaskan Command, said: “Operations in the Alaskan Theater of Operations are critically important to North American Homeland Defense. Operation Tundra Merlin demonstrates the Joint Force’s ability to seamlessly integrate capabilities from multiple combatant commands and mission partners to deter and defeat potential threats in the region.”

The Alaskan Command said: “Operation Tundra Merlin is a Homeland Defense focused joint operation designed to ensure the defense of U.S. territory and waters within the Alaskan Theater of Operations (AKTO). The operation includes integration with partners in the region with the shared goal of North American defense in the Western Arctic.”

What Happens Next

It remains to be seen whether Russia and China will conduct another joint air patrol near Alaska following a similar operation over the western Pacific earlier this week.

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Dunleavy says he plans to roll out fiscal plan ahead of Alaska lawmakers’ return to Juneau

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Dunleavy says he plans to roll out fiscal plan ahead of Alaska lawmakers’ return to Juneau


Gov. Mike Dunleavy says he will roll out a new plan to stabilize Alaska’s tumultuous state finances in the coming weeks ahead of next month’s legislative session. The upcoming session provides Dunleavy his last chance to address an issue that has vexed his seven years in office.

“(The) next three, four, five years are going to be tough,” Dunleavy told reporters Tuesday ahead of his annual holiday open house. “We’re going to have to make some tough decisions, and that’s why we will roll out, in a fiscal plan, solutions for the next five years.”

The state’s fiscal issues are structural. Since oil prices collapsed in the mid-2010s, Alaska has spent more money than it has taken in despite years of aggressive cost-cutting and a 2018 move to tap Permanent Fund earnings to fund state services.

Dunleavy said a boom in oil and gas drilling and growing interest in a natural gas pipeline from the North Slope to an export terminal will likely ease the fiscal pressure in the coming years. He said his plan would serve as a bridge.

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“I think the next five years, we’re going to have to be real careful, and we’re going to have to have in place things that will pay for government,” he said.

Dunleavy, a Republican, declined to reveal even the broad strokes of his plan, saying he plans to hold news conferences in the coming weeks to discuss it.

Prior efforts by Dunleavy and the Legislature to come to an agreement on a long-term fiscal plan have failed.

Dunleavy’s early plans for deep cuts led to an effort to recall him. He has also backed attempts to cap state spending and constitutionalize the Permanent Fund dividend.

A prior Dunleavy revenue commissioner floated a few tax proposals during talks with a legislative committee in 2021, but Dunleavy has since distanced himself from those ideas. Alaska is the only state with no state-level sales or income tax, and asked directly whether his plan would include a sales tax, he declined to say.

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“You’re just going to have to just wait a couple more weeks, and we’ll have that entire fiscal plan laid out, so you guys can take a look at it, and the people of Alaska can take a look at it,” he said.

In recent years, Dunleavy has proposed budgets with large deficits that require spending from savings. His most recent budget would have drained about half of the savings in the state’s $3 billion rainy-day fund, the Constitutional Budget Reserve, or CBR.

Still, Dunleavy says he wants to find a sustainable fiscal path forward for the state.

“We are determined to help solve this longstanding issue of, how do you deal with balancing the budget, and not just on the backs of the PFD or the CBR — what other methods are we going to employ to be able to do that?” he said.

Whether lawmakers will be receptive is an open question. Democrat-heavy bipartisan coalitions control both the state House and Senate, and even some minority Republicans crossed over to override Dunleavy’s vetoes repeatedly this year.

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Dunleavy’s budget proposal is likely to offer some clues about the governor’s fiscal plan. He has until Dec. 15 to unveil it.



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