The Alaska Railbelt: home to most of the state's population.

AuthorBarbour, Tracy
PositionREGIONAL REVIEW

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The Railbelt region of Alaska represents the entire area served by the renowned Alaska Railroad Corp. The Alaska Railroad connects ports and communities from Seward through Anchorage, Denali, and Fairbanks to North Pole, with spurs to Whittier and Palmer.

"The Railbelt," as the area is often called, is home to about 70 percent of Alaska's population. It encompasses three of the state's larger boroughs: Anchorage, Fairbanks North Star and the Matuska-Susitna. The Railbelt has experienced steady growth over the years, says Alaska Department of Labor economist Neal Fried. "It's growing faster than most of the rest of the state from an economic standpoint."

RAILROAD A UNIQUE AND POWERFUL ECONOMIC FORCE

The Alaska Railroad system constitutes more than just a railroad, according to Fried. Because of its unique role, it has a significant impact on the state's economy. The Alaska Railroad provides year-round service transporting adventure-seeking passengers and freight. Interestingly, the Alaska Railroad is one of the last railroads with "whistle stop" service. It's also one of North America's only railroads that provides both passenger and freight service.

About 70 percent of the Alaska Railroad's overall business is freight, with passengers 20 percent comprised of passengers and 10 percent made up of real estate. The railroad hauls millions of tons of freight annually, including building products to construct Alaska homes and businesses and materials for critical resource industries such as coal, petroleum products and gas. Each year, it carries nearly 500,000 passengers throughout the Railbelt. About 60 percent to 70 percent of those riders are out-of-town passengers traveling in cars owned by cruise ship companies.

The remaining passengers are either local residents visiting local family and friends, or independent travelers.

Although a State-owned entity, the Alaska Railroad is incorporated and operates like a private business. A seven-member board of directors governs the railroad's policy and direction. The Alaska Railroad Corp. receives no operating funds from the State. Instead, it generates revenue through freight, passenger and real estate services to provide for personnel, employee benefits, operations and maintenance expenses. The railroad, whose 800 or so workers are not State employees, also receives federal funding to supplement its capital program.

The Alaska Railroad is rich with historical relevance. It was...

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