The Alaska Railroad Corporation (ARRC) has a mission that resonates deeply with Alaskans: to provide safe, efficient, and economical transportation and real estate services that enhance economic opportunities within the state.
Despite operating successfully for decades and generating hundreds of millions in annual revenue, the ARRC has not constructed any significant new track since Alaska acquired it in 1985.
While the railroad has prioritized tourism and preserved its existing infrastructure, it has overlooked its responsibility to unlock Alaska’s substantial natural resource wealth for the benefit of its residents.
In 2025, President Trump issued an Executive Order titled “Unlocking Alaska’s Extraordinary Resource Potential,” which reaffirms a widely held belief: that the state’s oil, gas, critical minerals, timber, and coal are crucial not just for Alaska’s economy, but also for America’s national security and energy future.
The Executive Order mandates federal agencies to accelerate projects like the Point MacKenzie Rail Spur, a proposed 32-mile rail extension connecting the ARRC to Port MacKenzie—one of Alaska’s deepest-water ports and a future export hub for the resource sector.
Currently, 75% of the rail spur is already constructed, including essential embankments, bridges, and culverts, making the remaining work straightforward and ready for immediate execution.
Unfortunately, what is lacking is the collective will to complete this vital infrastructure project.
In 2022, the ARRC reported $250 million in revenue and $39 million in net income, all achieved without any operational subsidies from the state—a commendable feat, especially following the pandemic.
However, in pursuing this financial success, the railroad has focused heavily on maintaining its current operations and the tourism sector, neglecting the freight aspect of its business, which accounted for 44% of its revenue.
In 2024, the railroad moved nearly 1.5 million tons of gravel, supporting oilfield operations and barge connections to the Lower 48 states.
Nevertheless, when coal exports plummeted in 2011, ARRC dismantled the Seward Coal Terminal instead of seeking new freight corridors, which could have diversified its revenue streams.
The lesson is unequivocal: Alaska requires infrastructure that serves the genuine economy, not just tourists who come for sightseeing opportunities.
Port MacKenzie and the proposed rail spur connecting it are critical to the future economic sustainability of Alaska.
Situated just across Knik Arm from Anchorage, Port MacKenzie boasts deep waters, minimal congestion, and 9,000 acres of industrial land available for development.
Already, $184 million has been invested in the construction of the rail spur, which is 75% complete.
The estimated cost to finish the spur is debated; while the ARRC suggests a figure of $290 million, some experts advocate it could be wrapped up for between $100 to $150 million.
However, one fact is indisputable: the return on investment from this project will substantially outweigh its costs.
This rail spur is not a speculative endeavor but rather a strategic necessity.
Companies like Trilogy Metals have committed to shipping copper concentrates from the Ambler Mining District via Port MacKenzie.
In addition, timber exporters have an interest in using the spur to reduce transportation costs.
The $43 billion Alaska LNG project also stands to benefit, utilizing the spur for transporting construction materials, pipe, and heavy machinery.
Moreover, coal and fly ash exports could potentially resume through the more efficient port, reducing reliance on imports and generating jobs in Alaska.
The rail spur would also enhance military logistics in Alaska.
Fort Greely, Eielson Air Force Base, and Fort Wainwright depend on the ARRC for the transportation of munitions, Stryker vehicles, and various equipment.
Completing the spur would decrease transport distances and allow the Department of Defense to access more locations for Arctic defense operations.
In today’s geopolitical climate, having railway access to secure ports is a matter of national security.
Despite these critical considerations, the ARRC continues to direct attention toward projects such as the $137 million Seward passenger dock projected to open in 2026.
While tourism does play a crucial role, the revenue from this sector is limited and often seasonal, frequently relying on flat-fee contracts with cruise lines.
It should be noted that many tourists travel in privately operated dome cars under “pull” agreements, which means cruise companies pay the ARRC a fixed fee rather than fare-based revenue.
This can create a misleading impression of the economic impact of the railroad services.
The long-term prosperity of Alaska does not hinge on cruise ship tourism but rather on responsible resource management and development.
To move Alaska forward, it is essential to complete the Point MacKenzie Rail Spur.
This project represents a timely and cost-effective opportunity to yield tangible benefits for Alaska’s economy.
The spur aligns directly with Trump’s Executive Order, addresses vital freight requirements, bolsters national defense, and lays a foundation for job growth across mining, timber, energy, and construction sectors.
Furthermore, it reduces shipping distances by 32 miles compared to Anchorage and 140 miles compared to Seward, yielding a competitive advantage that Alaska cannot afford to overlook.
The ARRC must remember its purpose and responsibility.
As a state-owned organization supported by taxpayer investment, it is accountable to all Alaskans.
Citizens expect the ARRC to drive economic growth rather than simply maintain the status quo.
The time for half-hearted efforts has passed.
Completing the Point MacKenzie Rail Spur is essential, timely, and overdue.
It represents the key to unlocking the next chapter of Alaska’s resource economy.
Bureaucratic inertia and competing port interests must not obstruct this necessary project.
Now is the critical moment to act.
Kevin McCabe is the representative for House District 30, which encompasses Point MacKenzie, Big Lake, and the Parks Highway leading to Anderson.
image source from：https://www.adn.com/opinions/2025/06/05/opinion-the-alaska-railroad-needs-to-finish-the-point-mackenzie-extension/
