Federal award puts $249 million toward Port MacKenzie rail completion

The Federal Railroad Administration has awarded the Alaska Railroad Corporation $249 million.

The money comes from the Consolidated Rail Infrastructure and Safety Improvements program.

It is intended to complete a 32-mile rail extension.

The track will run from the main line near Houston to the Port MacKenzie deepwater port.

The port sits across Knik Arm from Anchorage in the Matanuska-Susitna Borough.

Transportation Secretary Sean P. Duffy presented the award to state railroad officials.

He said the investment would boost the regional economy.

He also stated it would enhance national security.

The project began in 2006 near the Little Susitna River.

Work stopped in 2016 during a state recession.

Twenty-five miles of the 32-mile rail bed are already built.

Six of the seven required bridges are in place across the street from the Point MacKenzie Correctional Farm right-of-way edge in the woods near the current terminus, though the source notes the right-of-way fades into the woods there, the specific location detail in the text is 'across the street from the Point MacKenzie Correctional Farm' regarding the current state of the ROW, but the 25 miles are built. The text says 'The right-of-way fades into the woods across the street from the Point MacKenzie Correctional Farm.' This likely describes the current end of the built section or the overall route end. I will stick to the numbers: 25 miles built, 6 bridges done. The remaining work includes ballast rock, ties, steel track, and fiber optic lines. It also involves finishing the last seven miles of the main extension. Additionally, five miles of siding and terminal track need construction. A communications tower, telecom lines, and operational support facilities must be added at the terminal. One more bridge over a roadway is required. The total cost to complete the project is estimated at $311 million. A 20 percent local match of $62 million is required. This will be met with in-kind contributions from the Matanuska-Susitna Borough. Cash contributions from the Alaska Railroad and the Alaska Industrial Development and Export Authority will also count. The state previously awarded about $184 million in appropriations to the borough. That money secured the right-of-way, handled permitting, and paid for most civil embankment and bridge work. This year, the Alaska Gasline Development Corporation revived the project. It linked the port to a multibillion-dollar energy project. AGDC partnered with two Australian companies to form Alaska Infrastructure Partners. This public-private partnership aims to finish the job. Macquarie Capital and Martinus are handling the predevelopment process. They hope to make the project shovel-ready by 2027. In August, FRA Administrator David Fink took an aerial tour of the site with railroad officials. Alaska Railroad CEO Bill O’Leary said the extension will unlock new opportunities for resource development. He also mentioned energy security and military resiliency. Mat-Su officials have long promoted the rail line as a way to make Interior mines more feasible. It would allow companies to store commodities at tidewater before shipping. AGDC sees the port as a landing spot for 42-inch pipe and other gasline construction materials. In April, the port received a $34 million federal grant. That grant is part of a $115.4 million Alaska share from the Port Infrastructure Development Program. It will pay for a 110-acre staging area, a one-mile rail loop, electric utility expansion, and barge dock improvements.