Alaska Business June 2020

BUDDING BUSINESSES | TRANSPORTATION | WORLD-CLASS WALKS JUNE 2020

TERRY HOWARD

CARLILE PRESIDENT

June 2020

$4.99

Eric Cole Sales Rep. Juneau Branch

Alvin Ott Product Support Fairbanks Branch

Mine site, Fairbanks, Alaska Volvo A60H and A40E Articulated Haulers and Volvo L220F Loader

Anchorage, Alaska 907.563.3822 800.478.3822 Fairbanks, Alaska 907.455.9600 Juneau, Alaska 907.780.4030 888.399.4030 Ketchikan, Alaska 907.247.2228 877.847.2228

RELIABILITY & POWER GET BOTH WITH VOLVO You can’t afford to wait for repairs or worry about your equipment failing in harsh conditions. That’s why you need a Volvo. Every machine delivers the power and reliability you need to take on any job in any working environment.

Find your new Volvo equipment at Construction Machinery Industrial, LLC.

cmiak.com

Our tomorrow is now.

It is time for the 2020 Census and we need to participate now. Our children are counting on us as it helps shape the future of our communities.

Census data is used for programs and grants that are important for all American Indians and Alaska Natives.

Complete the census online, by phone, or by mail.

2020CENSUS.GOV Paid for by U.S. Census Bureau

CONTENTS JUNE 2020 | VOLUME 37 | NUMBER 6 | AKBIZMAG.COM

FE AT UR E S 8 FINANCE

Banking Money How banks invest to strengthen their investment portfolio

By Tracy Barbour

14 A GRICULTURE

Budding Industry Battles Black Market Startup costs, complex permitting, and black market prices challenge legal marijuana business

By Isaac Stone Simonelli

20 PROFESSIONAL SERVICES Consider a Consultant

Professional consultants help companies maintain, improve, and grow operations

By Tracy Barbour

54 OIL & GAS

Data Driven Decisions Better tech, more information are a boon to oil field exploration

By Julie Stricker

58 MINING

Mining Economies A few jobs go a long way

By Isaac Stone Simonelli

72 TOURISM

World-Class Walks JodyO. Photos

Exploring the lesser known branches of Anchorage's trail system

By Amy Newman

ABOUT THE COVER

Planning, constructing, and maintaining utility lines

By Sam Davenport

Kerry Tasker

Lines Above and Lines Below

Casey Mapes

64 CONSTRUCTION

As the effects of COVID-19 linger long past periods of strict quarantine and hunker down efforts, transportation companies that quickly conformed to CDC recommendations and local mandates continue to adjust every step of the way to ensure Alaskans have what they need when they need it. Carlile President Terry Howard says: “The supply chain is uninterrupted, it's fully functional, it's efficient, it's safe, and it's working; behind the scenes we're taking all the necessary precautions to prevent the spread of COVID-19."

Cover by Monica Sterchi-Lowman • Photography by Kerry Tasker

Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2020 Alaska Business Publishing Co. All rights reserved. No part of this publication May be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & December issues. Send subscription orders and address changes to circulation@akbizmag.com.

To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.

4 | June 2020

Alaska Business www.akbizmag.com

CONTENTS JUNE 2020 | VOLUME 37 | NUMBER 6 | AKBIZMAG.COM

How Alaska’s transporters continue to deliver

By Tasha Anderson

Robert Stapleton | Alaskafoto

26 THE UNBROKEN SUPPLY CHAIN

Span Alaska

T R A N S P O R TAT I O N S P EC I A L S E C T I O N

40 HIGH FLYIN’ GOODS AND GROCERIES

Alaska’s aviation experts keep the Bush well-stocked

By Amy Newman

44 DESIGNATED DRIVING

Safety corridors made even safer with multiple projects statewide

34 ALASKA’S ACES

By Vanessa Orr

The aviation industry flies forward despite global pandemic

48 TRANSPORTATION DIRECTORY

By Vanessa Orr

QUICK READS 76 INSIDE ALASKA BUSINESS

78 RIGHT MOVES

80 ALASKA TRENDS

*Editor’s Note: Community Events and Business Events will not run this month as most events have been cancelled or postponed due to COVID-19. To see if a specific event has been cancelled, visit our COVID-19 resource page at akbizmag.com/covid-19/covid-19-updates/.

6 | June 2020

Alaska Business www.akbizmag.com

VOLUME 37, #6 EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate/Web Editor Tasha Anderson 257-2902 tanderson@akbizmag.com

Digital and Social Media Specialist Arie Henry 257-2910 ahenry@akbizmag.com

Art Director Monica Sterchi-Lowman 257-2916 design@akbizmag.com

Art Production Linda Shogren 257-2912 production@akbizmag.com

Photo Contributor Kerry Tasker

BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com

VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com

Senior Account Manager Janis J. Plume 257-2917 janis@akbizmag.com

Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com

Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com

Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com

CONTACT

Press releases: press@akbizmag.com

Postmaster: Send address changes to Alaska Business 501 W. Northern Lights Blvd. #100 Anchorage, AK 99503

AKBusinessMonth

FROM THE EDITOR

Protecting Alaska’s Supply Chain

W

hen COVID-19 cases started popping up in Alaska, many residents headed straight to the grocery store to stock up on the basics: rice, beans, flour, anything with bleach or disinfectant, and, of course, toilet paper. And those were just people in the state’s urban areas.

Rural residents were left wondering if they’d be able to feed, clothe, and care for their families as the world hunkered down to “flatten the curve.”

The run on stores for supplies is perhaps more understandable in Alaska than other states given that most of what we use and consume must be barged, shipped, driven, or flown here, and in early March not much was clear about the COVID-19 situation, including how the supply chain in Alaska would be affected by a worldwide pandemic. As it turns out, it hasn’t been.

Just as quickly as local retailers were cleaned out of the basics, Alaska’s transportation companies were hustling to get those shelves stocked again. As it became apparent that there was a good amount of panic buying going on, some of the state’s largest shippers reassured Alaskans that the necessities were on the way.

Lynden President Jon Burdick said in a release, “Keeping delivery routes open and supplies moving is our main focus and goal… We have dealt with earthquakes, oil spills, floods, and other obstacles. This situation is no different."

Matson also did its part to reassure consumers by putting out a statement that the company is taking “all appropriate steps to ensure the continuation of services, including the deployment of reserve vessels if necessary to continue meeting the needs of our customers.”

When the world is as scary as it’s been the past few months, it’s a giant relief to know that even way up here, in the Last Frontier, there are dozens of transportation companies working tirelessly to keep Alaskans safe, fed, clothed, and comfortable.

This month in our annual Transportation Special Section we highlight some of the businesses that are fulfilling Alaska’s needs—one shipment at a time.

Be well,

alaska-business-monthly AKBusinessMonth akbizmag

Kathryn Mackenzie Managing Editor, Alaska Business www.akbizmag.com

Alaska Business

June 2020 | 7

FINANCE

Banking Money How banks invest to strengthen their investment portfolio

By Tracy Barbour

A

laska banks employ a variety of approaches to build their own investment portfolio and maintain a healthy balance sheet. While their strategies and tactics may differ, their primary objective is the same: to diversify their investments, minimize risk, and generate income.

Historically, financial regulators limited the types of investments that banks can pursue because they are essentially investing depositors’ funds.

This helps to reduce risk and minimize the chance that banks are gambling away deposits on hedge funds or other higher-risk investments. Today many banks focus on fixed-income investments like government and corporate bonds, certificates of deposit, 8 | June 2020

and money market funds to earn a steady stream of revenue with less risk than stocks. However, regulatory restrictions have been loosening over the years to allow financial institutions to broaden their investments options.

For financial institutions, the investment portfolio represents an important asset for their operation. At most banks, the investment portfolio serves as a secondary source of both earnings and liquidity. And at some banks, it’s a primary generator of investment earnings.

Maintaining a Healthy Balance Sheet Having the right assortment of fixed income and other investments helps

banks maintain a healthy balance sheet, which is the financial statement that shows their assets, liabilities, and capital. A bank’s balance sheet differs considerably from that of a typical company. It often shows assets such as loans, securities, and a small percentage of cash, with liabilities being deposits and borrowings. However, the typical balance sheet might include assets like cash, accounts receivable, inventory, and property/equipment, with liabilities being accounts payable, accrued expenses, and loans.

The difference in balance sheets, of course, reflects how banks operate compared to businesses in other industries. A bank generates profits from managing the spread between

Alaska Business www.akbizmag.com

deposits paid to consumers and the rate it receives from their loans. Banks also earn revenue from fees they charge for their products and services, which include wealth management advice, checking account fees, overdraft fees, ATM fees, interest, and fees on credit cards. On the other hand, a nonfinancial company produces income by selling goods or services to another business or other customers.

“The investment portfolio is a big balancing game. You want it to complement your risk from your loan portfolio and, at the same time, provide additional income to the bank without taking on too much risk.”

MISSION POSSIBLE: AFFORDABLE ENERGY, CLEANER AIR

Jed Ballard, CFO, Northrim Bank

Northrim Bank’s Balance Sheet and Investing Northrim Bank has more than 400 employees, branches from Fairbanks to Southeast, and more than $1.6 billion in assets. Northrim’s balance sheet primarily lists loans and investments on the assets side and customer deposits as liabilities, according to CFO Jed Ballard. The loan portfolio has a relatively higher level of risk; therefore the bank uses its investment portfolio to mitigate and diversify that risk. “We have just under $300 million in our investment portfolio,” Ballard says.

“Loans represent just over a billion dollars of assets. About 20 percent of our earning assets are investments and about 70 percent are loans.” www.akbizmag.com

Employees at Fairbanks’ Aurora Energy power plant work to produce affordable energy in a safe, reliable and clean manner.

The plant relies on clean-burning coal from Usibelli Coal Mine. Residual heat from electric power generation is then captured and provides warmth to homes and businesses in Fairbanks.

Using recycled energy helps air quality by preventing the need to burn millions of gallons of fuel oil. Our quality of life depends on using energy that is both affordable and clean - and with coal, it’s “mission possible.”

USIBELLI.COM Alaska Business

June 2020 | 9

“Regulators consider our investment portfolio to be liquid.

They also will look at the bank’s line of credit as liquid. It is important for banks to demonstrate a regulatorily-accepted level of liquidity.”

Steve Lundgren, President/CEO Denali State Bank

Northrim also consolidates the assets of its wholly-owned subsidiary, Residential Mortgage, which has provided Alaskans with more than 60,000 loans since its 1998 inception.

The bank also holds cash assets to fund loans and pay depositors as well as generate interest.

Northrim has a loan-to-deposit ratio of 75 percent, which aligns well with its overall investment strategy. “If you have deposits to fund your loans, your cost of funds is lower, and it increases your ability to pay depositors, invest back into the people and infrastructure of the bank, and increase profitability,” Ballard says. “From an investment point of view, the investment portfolio is there to help with the liquidity of the bank and to diversify our balance sheet.”

The loan-to-deposit ratio, which is used to assess a bank’s liquidity, represents the total loans divided by the total deposits for the same period.

For example, a loan-to-deposit ratio of 100 percent means a bank loaned $1 to customers for every $1 received in deposits. Regulators such as the Office of the Comptroller of the Currency,

Most businesses overpay for workers’ compensation insurance.

ARE YOU READY? to take your construction company to the next level?

Does yours?

Bonding credit

Contact us to find out.

Bank financing

907-276-7667

Smart tax moves We have been trusted advisors to Alaskan contractors since 1994 helping grow their financial capacity to bid the work that builds Alaska.

Jim Meinel CPA, P.C. Construction Accountant 10 | June 2020

the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) do not set minimum or maximum loanto-deposit ratios for banks, although they do expect them to adhere to certain standards.

The composition of Northrim’s investment portfolio is relatively shortterm, with investments yielding variable interest rates. This lines up nicely with the loans on the bank’s balance sheet.

“We have relatively shorter-term loans with variable interest rates,” Ballard says.

“We believe that provides for a healthy balance sheet.”

Northrim’s investments are primarily in US government agency bonds and US Treasury securities. These are lower-yielding assets, but from a risk perspective they are very highly rated investments that are favored by banking regulators. Northrim also invests in corporate bonds and collateralized loan obligations, which adds some diversification in the investment portfolio and provides slightly higher yields. “The investment portfolio is a big balancing game,” Ballard says. “You

www.chialaska.com

CALL TODAY

Learn how a construction accountant can be a valuable addition to your team of advisors.

907-258-2727

Alaska Owned & Operated Since 1979

Alaska Business www.akbizmag.com

want it to complement your risk from your loan portfolio and, at the same time, provide additional income to the bank without taking on too much risk.”

Investing at Denali State Bank Denali State Bank operates five locations in interior Alaska and $295 million in assets. The bank, which is based in Fairbanks, has three main asset categories on its balance sheet: investment portfolio, loans, and properties. About 25 percent of Denali State Bank’s total assets consists of its investment portfolio, according to President and CEO Steve Lundgren.

“Usually what we can’t invest in loans, we invest in our investment portfolio,” he says.

As banks are in the business of making money, they seek to invest in assets that produce higher earnings. Loans are typically higher-earning assets than the investment portfolio, Lundgren says.

But rewards come with risk, and loans are generally considered higher risk.

However, banks typically want to have more of their assets in their higherearning loan portfolio.

The investment portfolio serves two purposes for Denali State Bank. It allows the bank to earn income on assets that it can’t invest in loans. It also supports the bank’s diversification strategy. “We want to have some diversification in our balance sheet of risk profiles, so the investment provides a lower-risk option,” Lundgren says.

It also provides a more liquid option, which is a regulatory requirement, according to Lundgren. “Regulators consider our investment portfolio to be liquid,” he explains. “They also will look at the bank’s line of credit as liquid. It is important for banks to demonstrate a regulatorily-accepted level of liquidity.”

In terms of its loan-to-deposit ratio, Denali State Bank is aiming for 80 percent, which Lundgren says is about average. “We will achieve that this year,” he says.

Due to regulatory guidance, Denali State Bank targets bond or fixed-income opportunities, rather than equities. “We invest in government agency bonds, mortgage-backed securities, municipal bonds, and other types of fixed income,” Lundgren says.

Diversification Is Paramount Diversification is a key investment strategy for Alaska’s banks. Like many financial institutions, Denali State Bank diversifies its balance sheet, even in its different portfolios. In its loan portfolio, for example, the bank has been on a course for the last few years to diversify more broadly. And it intentionally avoids credit risk in its investment portfolio.

“We like to have an investment portfolio that is backed by the government [instead of corporate bonds],” Lundgren says. “We don’t know where future risk is going to be, so we try to have a diversified portfolio.”

For Northrim Bank’s investment portfolio, diversification is evident in three categories. Ballard explains: “One is the type of investments. As you move from investment types, the yield goes up because the risk level increases.

Two: the duration. You don’t want all your investments to mature in two or three years. You want them to mature gradually over time in order to manage the overall liquidity of the company.

Three: You want a mix between fixed and variable with your investments. So

ANSWERS to the TOUGH QUESTIONS.

Alaska Business

ices

er v

lS

en t

m

www.akbizmag.com

rt Depa

Find answers to the tough questions on prevention, treatment and recovery. Get the Addiction in the Workplace Toolkit at workplaceaddiction.dhss.alaska.gov.

fA T E o L AS TA

KA

S

Need help navigating substance use concerns in your workforce?

of H

ealth and S

ia oc

June 2020 | 11

when interest rates move, you have some hedge. So it boils down to the risk tolerance, duration, and fixed/ variable rates.”

In addition to diversifying, managing risk is also essential for a healthy investment portfolio. Management should set risk limits consistent with the bank’s strategic plans and overall asset/liability management objectives, according to the FDIC. Specifically, limits should be placed on market risk, credit risk, liquidity risk, asset types, and maturities.

Leveraging Internal and External Resources Financial institutions apply various approaches to leverage investment opportunities and strengthen their financial position. Some rely on inhouses resources to identify and capitalize on appropriate investments.

Others use the services of third-party investment advisors to expand their investing capabilities. Still other banks combine both tactics, building their investment portfolio with internal and external resources.

When it comes to managing its investment portfolio, Northrim Bank uses a somewhat mixed approach.

Rather than maintain an investment professional in house, it works with an external expert to help identify suitable investments. “There are so many moving parts in the world of investing for banks,” Ballard says.

“The investment advisor’s experience and expertise in the industry helps the bank make thoughtful, educated investment decisions.”

The third-party investment advisor is an invaluable resource for Northrim Bank. There are so many potential investment opportunities available, along with the intricacies involved. And the advisor has the expertise to identify opportunities and bring them to the table for further discussion. Ballard says: “There are many ways a company or bank can manage its investment portfolio, and Northrim believes that based on our profile and operations that outsourcing is the best model for our company.”

Like Northrim, Denali State Bank takes a two-pronged approach to targeting fixed income and other opportunities for its investment portfolio. It relies 12 | June 2020

on external investment advisors and two professionally-trained internal investment experts. Lundgren explains: “We manage the portfolio ourselves.

We make all of our investment decisions internally, but we do engage outside experts to give us information on securities we are interested in buying and our existing portfolio, so we can make buy-sell decisions on securities we already own.”

For financial institutions, the investment portfolio represents an important asset for their operation.

At most banks, the investment portfolio serves as a secondary source of both earnings and liquidity. And at some banks, it’s a primary generator of investment earnings.

Denali State Bank uses a variety of third-party investment advisors, depending on the type of instrument involved. And most of these advisors that specialize in bank investments are located outside Alaska. For Lundgren, the key benefit of using an external investment advisor is having access to specialized knowledge. “This is their entire business,” he says. “It’s analyzing investments, so they have a real expertise in that area. We’re bankers, not investment experts. We try to outsource as much as we can to people who do whatever we need done on a

full-time basis because they have more resources available to them.”

Granted, it would be less expensive to handle all of the bank’s investment activities in house—but it wouldn’t be ideal. It would be difficult if not impossible to give the bank’s internal staff members all the experience that it can obtain from external sources. “I can’t put a price on that,” Lundgren says.

“I just can’t get that third-party expertise internally at a reasonable cost.”

Incidentally, banks are allowed to delegate their investment authority and have external investment advisors purchase and sell securities on their behalf. This type of arrangement is permitted as long as the bank’s management maintains responsibility for, oversight over, and understanding of the third-party advisor’s investment activities, according to the FDIC. But before delegating investment authority to a third party, “management should thoroughly evaluate the third party’s reputation, performance, creditworthiness, and regulatory background,” outlines the FDIC’s Division of Supervision and Consumer Protection Risk Management Manual of Examination Policies.

Alaska Banks Remain Strong Denali State Bank is faring well with its investment portfolio, according to Lundgren. The current yields are low because interest rates have fallen significantly. “We’re fortunate our existing investment portfolio that we have on the books is yielding much more than if we were to buy an investment in today’s market,” he says. “However, the lower yields are a temporary side effect of what is happening in the markets. Nothing lasts forever in the financial world.”

Having a strong investment portfolio and balance sheet is especially important during times of uncertainty, according to Ballard. “Alaskan banks have relatively strong balance sheets with good liquidity levels and capital ratios, which is critical as our economic environment is stressed by the current uncertainty,” he says.

He adds: “Northrim is a strong financial institution. It is important for us to help our customers get through this extraordinary time and then to thrive once this is behind us.”

Alaska Business www.akbizmag.com

CONNECTING THE WORLD TO ALASKA

FOR 40 YEARS!

Delivering freight to the Last Frontier has been our mission for 40 years. And no matter what it is or where it’s going, all of us at Carlile are fully committed to being the trusted, reliable shipping partner for Alaska’s projects and people.

Terry Howard, President

carlile.biz | 800.478.1853 | customerservice@carlile.biz

A G R I C U LT U R E

Budding Industry Battles Black Market Startup costs, complex permitting, and black market prices challenge legal marijuana business

A

robust licensing and permitting process offers protection from federal prosecution for the Alaska cannabis industry, but the time and expense of participating in that process has created a market in which licensed businesses are vulnerable to being undercut by black-market prices.

When Alaska legalized cannabis for recreational use in 2015, the industry was able to quickly secure two prominent segments of the market.

“We were able to wrest very many individuals from the black market when the legal industry started. These were people who just wanted the convenience and could afford the higher prices, the people who really 14 | June 2020

didn't like only being able to go to their guy and just have whatever bags he had that day,” Good Titrations COO Brandon Emmett says. “And then we created a smaller but new consumer group: those individuals who like substances but are also very law abiding.”

Emmett estimates that those two segments only make up about 60 to 70 percent of the consumer base in the state; the rest of the market is composed of people who are making purchases based completely on price.

“Those consumers are almost impossible to capture; the black market is significant competition,” Emmett says. “Essentially, there's 30 percent

anankkml | Envato Elements

By Isaac Stone Simonelli

Alaska Business www.akbizmag.com

of the consumers—I'm speaking as a concentrate manufacturer—that we just cannot capture because you can go on Facebook right now... you could go on to many of these cannabis forums and identify and ultimately purchase cartridges and hard concentrates that are roughly 50 percent the cost of what you could if you were to purchase one of my products in a legal facility.”

The Price of Starting Up One of the major hurdles Emmett and others faced getting their cannabisbased companies off the ground was the significant startup costs. “[Three years ago] if someone didn't have half a million dollars, they'd be crazy getting into this thing. If you wanted to get in now... I'd say unless you have a million dollars, don't even try,” Emmett says, speaking directly to the costs associated with the permitting process.

One key difference between Alaska and other states where recreational cannabis is legal is that all parties involved in the business must be state residents, which exacerbates the challenges of launching a cannabisbased business.

“In Alaska, the regulators wanted to limit the economic opportunity to the citizens of Alaska, so they imposed the Permanent Fund Residency requirements as a baseline requirement to hold a State of Alaska issued marijuana license,” explains Jana Weltzin, an attorney who specializes in Alaska and Arizona cannabis law. “This means that you need to be an Alaska resident for the entire calendar year preceding the date that you applied for the dividend and intend to stay here indefinitely. The basic nuts and bolts of licensing requirements, other than residency, remain fairly constant across the board: adequate security measures, ability to show you understand the complex set of regulations you must follow, adequate business plan, camera storage, ability to connect with the state tracking software system on a real-time basis, et cetera.”

While the intention was to preserve the industry for Alaskan entrepreneurs, the significant start-up costs associated with entering the market means that Alaskans who do not have enough capital within their social circle to start www.akbizmag.com

“We were able to wrest very many individuals from the black market when the legal industry started. These were people who just wanted the convenience and could afford the higher prices, the people who really didn't like only being able to go to their guy and just have whatever bags he had that day… And then we created a smaller but new consumer group: those individuals who like substances but are also very law abiding.”

Brandon Emmett, COO, Good Titrations

the business are unable to secure outof-state funding, according to Emmett.

“My counter-argument was, ‘No, you guys want it to be old, rich Alaskans only,’” Emmett says. “There's only a narrow sliver of individuals who are allowed to get in: only Alaskans and only those Alaskans with significant resources.”

Licensing Requirements Despite the challenges of acquiring a license, a robust licensing system can benefit the companies that are able to see it through.

“As cannabis production and sale is still illegal on a federal level, the federal government still can come down on any state program or state actor for the illegal production and trafficking of a Schedule 1 substance,” explains Weltzin. “The states and the industry understand this fact and understand that, if there is not a robust state regulatory scheme protecting and safeguarding from the federal priorities, the state and its licensees are at risk for federal prosecution.”

Acquiring a cannabis industry license in Alaska requires interested parties to secure and be in possession of the premises they plan to use to grow, process, sell, or test cannabis.

The building must meet all zoning requirements and be a certain distance Alaska Business

from sensitive use facilities such as schools, churches, and rehab centers.

“Then you need to initiate the license, run your local notice ad, do your public posting, complete all sections of the application, pay your licensing fee, submit your fingerprints, and submit all your application documents to the licensing office for review,” Weltzin says.

Part of this process also includes securing permission from local government bodies, such as a city council or a borough assembly. In cases such as Kodiak City, where the city and borough jurisdictions overlap, entrepreneurs are required to go before both bodies to garner permission to establish their business.

“Alaska businesses have sort of a Wild West history—maybe it is up to code, maybe it isn't, if it's not, whatever,” Emmett says. “Not so with the marijuana industry.”

Even if a business is not required to get approval from a local government, the Alaska Department of Commerce, Community, and Economic Development’s Marijuana Control Board requires a cannabis business to be up to code.

“Once the licensing staff deems your application complete, you will be scheduled for one of the four yearly Marijuana Control Board meetings, and June 2020 | 15

Cannabis growing at Top Hat Cannabis in Juneau.

Top Hat Cannabis

WE MEAN BUSINESS. Through the highs and lows, AEDC is a driving force on behalf of the Anchorage business community. We’re committed to listening to the needs of our members to help shape policy, advocate for business priorities and be a voice in economic conversations.

Learn more about our vision for Anchorage at aedcweb.com

16 | June 2020

Alaska Business www.akbizmag.com

“Operators pay lots of taxes. Cultivators pay state taxes, retailers pay city taxes, all of us pay federal taxes, so we pay into the economy in a big way with taxes alone.”

Lacy Wilcox, President, Alaska Marijuana Industry Association

then your license will be considered by the control board for approval,” Weltzin says. “If the Marijuana Control Board approves your license, then you need to build out the facility in a manner that matches the diagram you submit as part of your application and have it inspected by the enforcement division of the state's control office. If you pass that, you can start legally growing.”

However, before an interested party can begin growing they must also pass a federal background check and have approval from the Alaska State Fire Marshal.

The Tax Issue In addition to startup costs and wading through the robust permitting process, legal marijuana operations are challenged to compete with black market prices because of the state’s tax structure, Emmett says.

“We have some pretty egregious tax policy and just really overbearing regulation, not just on the state side but on the federal side, as well,” Emmett says.

For marijuana to be legally sold in Alaska it must be produced and processed in the state. Flower, commonly called bud, is taxed at a rate

of $800 a pound; immature flower is taxed at $400 a pound; and trim, the excess leaves cut off after a harvest, is taxed at $240 a pound.

“As new firms came into the market and competition increased, the laws of supply and demand drove prices down,” Emmett says. “We started to drive prices into this [pre-set] price floor— and you're crashing headlong into this tax burden which is immobile. So, it's not a percentage of cost of goods sold that's recalculated by the government quarterly or yearly. It's just a flat tax.”

The federal government still classifies marijuana as Schedule 1 drug as defined by the Controlled Substances Act, so Alaska marijuana companies face a significant burden due to federal tax Code 280, also known as the Eliot Ness tax, which was designed to capture revenue from illegal businesses. It prevents federally prohibited businesses from writing off anything other than the direct cost of goods sold.

“Operators pay lots of taxes.

Cultivators pay state taxes, retailers pay city taxes, all of us pay federal taxes, so we pay into the economy in a big

Time to sell your company?

30+ Years Experience • Value Assessment • Consultation • Marketing • Results Call Today!

907-261-7620 or 907-244-4194 fink@alaska.net Alaska Mergers & Acquisitions is affiliated with Remax Dynamic Properties, Inc.

www.akbizmag.com

Alaska Business

June 2020 | 17

“In Alaska, the regulators wanted to limit the economic opportunity to the citizens of Alaska, so they imposed the Permanent Fund Residency requirements as a baseline requirement to hold a State of Alaska issued marijuana license.”

Jana Weltzin, Attorney

way with taxes alone,” Alaska Marijuana Industry Association President Lacy Wilcox says.

When recreational marijuana was first legalized in the state, prices were as high as $6,000 a pound, making it easy for businesses to turn profits despite the hefty taxes, Emmett says.

However, since then competition has become fierce, despite the barriers to entry.

Industry Growth “As of April 10, 2020, there are 7,033 marijuana handler card holders; assuming that not all those with a card are currently employed—let’s just say for grins that half of them have jobs—that is 3,500 Alaskan jobs, and that helps the economy,” says Wilcox.

There are six different types of licenses issued by the Marijuana Control Board for businesses in the cannabis industry: retail marijuana store, standard cultivation facility, limited cultivation facility, marijuana product manufacturing facility, marijuana concentrate manufacturing facility, and testing facility.

Alaska's climate has forced nearly all of the about 200 growers in the state to operate indoors, Emmett says.

Their operations run similar to those of other indoor growers in the Lower 48.

However, one major difference is that the facilities can’t smell like marijuana, which requires very effective ventilation systems.

Many of these growers are giving their strains of weed an Alaska touch.

“You can name a strain anything you want, that is why you will see common worldwide strains blended and genetically fine-tuned then ‘Alaska18 | June 2020

fied.’ For example: Matanuska Tundra, [ATF], Glacier Berries, Alaska Thunder Grape, Purple Aurora, et cetera,” Wilcox says. “Call it what you want, but certainly, Alaska is known for its quality flower; we have had a long history with growing with relaxed home-grow laws in the state as long as I have been alive.”

MTF is an Alaska strain of legend, according to Emmett, who is doubtful that a pure version of the strain still exists today.

“It was a strain that was very popular in the ‘90s. And a lot of people think that it was stamped out… legend has it that there were some seeds that were brought back from Vietnam to Hawaii, and that became the Maui Wowie strain,” Emmett explains. “Then, a gentleman during the pipeline boom brought the Maui Wowie strain to Alaska and found a phenotype, found a cultivar, of that Maui Wowie strain that you could grow in greenhouses here and it would actually survive. And it was just incredible stuff.”

Emmett points out that it ’s still possible to buy seeds or bud labeled MTF. “There's very many people that think that the strain may have gone extinct or may have been hybridized with others to the point of nonexistence. But Alaska is definitely thought of throughout the world and cannabis circles as having produced one of the very best strains of all time,” Emmett says.

Another carryover from Alaska’s history is less beneficial to the cannabis industry.

“We are still combating the reefer madness stigma. It still exists. There's a small but very loud portion of the country, the community, that really

thinks that marijuana is the devil's lettuce,” Emmett says.

Cannabis law in Alaska continues to evolve even as one segment of the population pushes back against legal recreational use and another segment welcomes it.

“The main evolution has been the tinkering with the regulations to fit the real functions of how the cannabis industry and the regulations intertwine and work. The regulations were drafted with imaginations: how we think it would work; what we thought made sense; how we envisioned the regulated world of marijuana,” Weltzin says. “As with everything, real life is sometimes different than one imagines, and there are constant tweaks and modifications, which often have their own unintended consequences, that are being flushed out. We are also starting to see some consolidation between operators and mergers between companies.”

One such evolution is allowing marijuana use in retail cannabis shops; Alaska is the first state to do so, Emmett notes.

Alaska’s marijuana industry is still quite young, but changes in tax regime and regulations are the standard for every industry, no matter how well established. The construction industry contends with changing build standards, and the only sure thing about oil taxes is that someone wants to change them.

That said, this industry is in its early years and can grow to be a larger part of the state’s economy. Emmett says one of the best things lawmakers could do to support the marijuana industry is to review tax rates and policies to deincentivize the number of individuals choosing to operate illegally.

“As a business person and as an industry association leader, I have championed reducing that tax burden with the argument not just so people in the industry can make more money but so we can be competitive,” Emmett says. “If we lower the taxes, and we're able to out-compete the black market through economic principle and ultimately capture that extra 30 percent of revenue that's not coming into the industry, then we can not only have profitable marijuana businesses, but the state can capture just as much or more revenue.”

Alaska Business www.akbizmag.com

PROFESSIONAL SERVICES

Consider a Consultant Professional consultants help companies maintain, improve, and grow operations

By Tracy Barbour

A

nalytical Consulting Group uses a different approach to consulting with its clients in Alaska and the Lower 48. The Anchoragebased firm, which focuses on outsourced accounting and payroll services, doesn’t just tell companies what to do; it merges consulting with outsourcing services. “When you have someone that is employed in that position, we’re there as their mentor,” says President and CEO Matt Edman. “When they’re not there, we will do that job for them.”

Say, for example, a company’s CFO no longer wants to live in Alaska and unexpectedly resigns.

Analytical Consulting Group has the expertise to fill the void. “We’re going to learn everything about your business so that if anybody steps away, we can step in,” Edman says. “For most of our clients, we’re their business continuity plan.”

20 | June 2020

How Consultants Work Business consultants fill a broad role for clients, from conducting research about the company to organizing and executing assigned projects on their behalf. While these outside experts usually assist companies with areas like marketing, human resources, management, finance, and accounting, their work is often customized to match clients’ specific requirements. Regardless of the focus area, consultants strive to help clients improve their operations by assessing weaknesses, recommending, and sometimes implementing solutions, as Analytical Consulting Group often does.

Generally, consultants work with clients on strategy, planning, and problem solving while enhancing their business skills and knowledge.

There are five broad categories of consulting: Alaska Business www.akbizmag.com

operations, financial, human resources, strategy, and risk and compliance.

However, business consulting firms typically specialize in specific areas and industries.

Analytical Consulting Group, for instance, focuses on providing accounting and payroll software systems for enterprise resource planning, human capital management, time and labor, and productivity suites.

The company works in accounting, payroll, grants, software, project management, and business model assessment.

Analytical Consulting Group guides its clients—which are mainly involved in hospitality, construction, healthcare, and city administration—through the process of software selections, implementation, training, and long-term management if necessary.

Companies—regardless of size—need support services that range from simple software installation to accounting support, training, and collaboration in service management, according to Edman. As such, his company integrates all of these services and creates a customized experience that delivers solutions that are designed to best meet client goals.

As a unique aspect of consulting in Alaska, Analytical Consulting Group helps clients merge culture with compliance. “I’ve been doing consulting in Alaska for the last twenty years,” Edman says. “I understand the way of life and culture in Alaska.”

KMD Services & Consulting helps clients with leadership development, organizational development, management coaching, mediation, and change management. However, the firm’s consulting falls into three general categories: organizational development, empowering companies and teams to take their next steps; leadership development, developing individuals and groups to become better leaders; and human resources consulting and services, helping organizations understand and realize the human potential available to great workplaces.

“We are known for our facilitation and consulting in all these areas,” says President Kevin Dee. Theo Hunt of Theo M. Hunt Consulting also specializes in organizational development consulting.

In this role, Hunt provides services at www.akbizmag.com

“There’s no way you’ll ever truly be successful if you cut corners.”

Matt Edman, President/CEO, Analytical Consulting Group

the organizational, team/group, and individual levels. “On the organizational level, that may look like strategic planning, developing a continuous improvement culture, or supporting organization-wide change,” she says.

Alaska Business

“On the group or team level, that may look like project management, team building, program development, or process improvement. On the individual level, that may look like executive and leadership coaching.”

June 2020 | 21

“Sometimes companies and employees can’t see the forest for the trees and a consultant’s perspective and skills will help. Other times a consultant is a neutral player that companies use to understand how things are really going as employees, and managers will often tell a consultant things they do not feel willing to disclose to their team(s).”

Kevin Dee, President KMD Services & Consulting

A Day in the Life of a Consultant With such diversity in their services, business consultants engage in myriad tasks to meet their client’s needs. So, what’s a day in the life of a consultant like? For Hunt, each day is filled with a mix of activities that fluctuate based on client needs. “I tend to go from a coaching appointment, to a group facilitation, to a program design, to 22 | June 2020

planning an event, to researching a particular topic to make sure I have the evidence I need for coaching a client,” she says.

Essentially, Hunt dons different hats for different situations. Some days, for example, she might spend an hour and a half on a coaching session, followed by an afternoon of planning with a team to implement a new program. She says: “It’s never boring. I love it.”

Dee expresses similar sentiments about consulting, saying every day is “unique and exciting” in its own way.

He adds: “Whether working on a longterm project or meeting with clients or coaching individuals, I have never had a boring day. If there is a gap in the schedule, then it’s time to go fishing.”

For Edman, business consulting can be unpredictable, to say the least. He begins each day with a plan and good intentions but often ends up with something completely different. He says: “You plan ahead, but your client’s lack of planning creates emergencies for you.”

Edman spends about 60 percent of his time working directly with clients, with the rest of his time devoted to his business and employees. Much of his time is spent trying to stay on top of emails. His company, which services about 5,000 employees for its payroll clients, fields numerous support and other emails. “I get about 250 to 350 emails a day,” Edman says. “We’ve done a very good job of trying to get our clients to use electronic media opposed to calling.”

Reasons to Use a Consultant The reasons for calling in an outside expert vary among businesses. Many of them are motivated by a specific situation. “A lot of times, there’s some sort of triggering event or new learning, such as seeing something they want to implement or realizing it’s time to correct an operational pain point in operations, and they don’t have the internal resources or capabilities to handle it,” Hunt says.

“Or maybe they have the resources and capabilities but chose an external consultant because it would be more effective or easier.”

There’s no typical type of organization that employs a business consultant.

Companies that hire consultants are

for-profit, nonprofit, and government entities in various industries. But there are some similarities. Hunt says: “The companies normally have a burning need or pain point that keeps them up at night. Or they see an opportunity or have a desire to improve. Or maybe they want or need to do something new. Or they were awarded a new grant or received a donation. And they want an external consultant to help.”

Like Hunt, Dee consults with a variety of clients. He has assisted everyone from Fortune 500 companies, government agencies, and nonprofits to indigenous groups, religious organizations, and small mom-and-pop companies. And sometimes individuals enlist his help for workplace coaching sessions.

Many companies that hire business consultants are looking to grow or manage change, or they require other types of assistance. Sometimes companies that are struggling or near drowning opt to bring in a consultant— or have one forced on them—to either resuscitate the company or help it die the least painful death possible. “Those engagements can be intense and difficult,” Dee says. “But turnarounds, when successful, are very satisfying personally and professionally.”

He adds: “We bring thirty years of experience, tools, and best processes to bear in support of our clients. It’s a heck of a return on investment to get such support when you need it.”

Although organizations often engage a consultant to address a problem or internal void, that’s not always the case. Many companies capitalize on outside expertise when their operations are going smoothly.

At least, the “smart” ones do, Dee says. He goes on: “Sometimes companies and employees can’t see the forest for the trees and a consultant’s perspective and skills will help. Other times a consultant is a neutral player that companies use to understand how things are really going as employees, and managers will often tell a consultant things they do not feel willing to disclose to their team(s).”

Business consultants are also sought after to assist and empower organizations that want to evolve, whether through strategic planning, leadership development, or

Alaska Business www.akbizmag.com

“Our value proposition to clients is that we will learn who you are, come to an understanding of what you want and need, and then promise to deliver what we agree to in a way that everyone wins.”

Kevin Dee, President, KMD Services & Consulting

restructuring.

“Healthy companies realize they have to adapt, evolve, and get better all the time,” Dee says.

“We bring the tools and processes to empower organizations to do just that.”

Healthy companies are definitely more likely to engage a business consultant than employ a subject matter expert to work in house, Edman says. However, unhealthy companies are more likely to hire a high-earning specialist and try to make it work. That’s especially true in Alaska, largely because businesses are trying to stimulate their local economy or town. However, it may not be feasible to find the right employee locally. “When you’re dealing with a community of 200, you’re probably not going to find someone with the skill set that you’re getting a consultant for,” Edman says.

“Oftentimes, that’s when we get called in.”

Offering Tailored Recommendations When working with clients, consultants typically try to make personalized recommendations rather than give advice. Every client has their individual and unique needs 24 | June 2020

and stage of development, Dee says.

“Our goal is to empower them to not need us,” he says. “We do that through recommending things to consider, and they, in turn, make it their own.”

This process involves aspects that are highly tailored to meet clients’ needs.

“Our value proposition to clients is that we will learn who you are, come to an understanding of what you want and need, and then promise to deliver what we agree to in a way that everyone wins,” Dee says. “We strive for high engagement and exceeding expected outcomes. We have been in business for thirty-five years without ever advertising, which I believe says a lot for our reputation to meet the needs of each client.”

When helping clients, Hunt typically starts with where they are, involving people who know the most about the issue, being transparent, making it safe to have conversations, getting facts and research, and codesigning a solution. Part of the power of organizational development is to design a solution with the input of the people who will be implementing and operationalizing the solution. “This approach makes it easier to benefit from the solution,” she says.

Normally with business consulting, there are different players with different perspectives about the situation at hand. But the challenge for the consultant is to get all the voices that are part of the solution to be aligned with the solution. Often, more information is revealed during this discovery process. “That’s part of the puzzle,” Hunt says. “You really have to listen to what their needs are and understand the language they communicate in and co-design a solution with all that in mind.”

While each client has unique needs, there’s one recommendation Edman always stresses—compliance.

He informs clients that the compliant way of doing something may not be the easiest or most logical way, but it is important. It’s always better to be compliant because laws are in place to protect employees and employers.

Plus, non-compliance can result in penalties and interest that compound daily. “There’s no way you’ll ever truly be successful if you cut corners,”

Edman says. “Unless you have deep pockets, it’s going to be a very expensive ordeal.”

In all cases, Edman says the client needs to be the ultimate decision maker.

And although his company falls in the “gray zone” between outsourcing and consulting, most clients opt to follow his recommendations. “When clients come to us, we have a 98 percent adoption rate,” he says. “Very rarely does a client come to us for advice and go in another direction.”

Expert Advice As general guidance, Hunt advises businesses to invest in and involve their people. People want to do their best, and they want to be a part of the solution. “It’s lovely when you can feed their energies and desires and use all your resources as an organization,” she says.

Hunt also encourages making change and solutions visible in your environment, whether it’s making a mind map together as a team, a process map so everyone can see who the players are and what they do, or a key strategic planning board.

One of Edman’s key tips for companies is: Don’t resist using a consultant.

Consultants spend an incredible amount of time educating themselves, and ignoring their expertise is rarely in the best interest of a company. “Don’t resist hiring somebody, even if it’s just to help you review your internal policies,” he says.

He adds: “Also, make sure the person really is a subject-matter expert...

Do reference checks.

Don’t just trust that somebody is a consultant and knows what they are talking about. Make sure you know what you’re getting.”

Dee says businesses need to be smart enough to know what they don’t know and what they want. And when it comes to hiring a consultant, they should determine what they want versus what they need. “Understand what set of skills and experience would be a good fit for your company,” he says. “Most consultants will meet with you at no cost to see if what you want is in their wheelhouse of skills and abilities. You can ask for an hourly or a fixed amount once a scope of work is landed.”

Alaska Business www.akbizmag.com

Lifelines.

Much of our Alaska-bound cargo is lifesaving. Transplants.

Critical samples. Crucial medication. And no one is more dedicated in getting it to you — no matter where, and no matter the circumstances. We’re the largest scheduled cargo carrier in Alaska, serving 19 communities.* For more information or to book your shipment online, go to alaskaair.com/cargo. Or call us at 1-800-225-2752. *Some routes operate seasonally. Unalakleet service expected to begin June 2020 pending approval.

TRANSPORTATION

The Unbroken Supply Chain How Alaska’s transporters continue to deliver

Kerry Tasker

By Tasha Anderson

26 | June 2020

Alaska Business www.akbizmag.com

A

laskans have some experience both with isolation and sudden emergencies.

Earthquakes, volcanic eruptions, seasonal flooding, and wildfires seldom schedule their arrival. And while emerging technology and developing infrastructure have allowed Alaska to become more connected, as Alaskans we know we’re still at the end of the road—even more so for those living beyond the road in Alaska’s remote communities.

So while the sudden appearance of COVID-19 in our lives, quickly followed by orders to stop leaving our homes or socializing with anyone, was definitely not normal, at its root it wasn’t completely unfamiliar, and across the state Alaskans demonstrated once again their willingness to do what needs to be done to take care of each other.

In stark contrast to most of the goings-on in Alaska—marked by upheaval and change—the flow of goods and supplies into the Last Frontier hasn’t altered, at least in the eye of the casual consumer.

“The supply chain is fully functional: it’s uninterrupted, it is efficient, it is reliable,” says Terry Howard, president of Carlile Transportation.

A Culture of Safety—Upgraded What’s impressive is that Alaska does continue to receive essential goods, even as the entire transportation industry has needed to adjust their operations. It’s undoubtedly no small help that industry-wide Alaska’s transporters have emphasized a culture of safety for decades.

“Safety is one of Carlile’s core values… the safety of our team members, our vendors, our customers, and our industry partners in all the communities we work in,” Howard says. “We spend a tremendous amount of time on safety… so it’s not a tremendous shift for us to be safety-centric… it wasn’t like we really had to gear up and say, ‘Okay, we need to be more safe now.’”

“Keeping everybody safe within the TOTE network is our number one www.akbizmag.com

TRANSPORTATION

Editor's Note: This article was written in mid-April; as Alaska has tentatively reopened for business, the transportation companies that contributed to this article have adjusted, and will continue to adjust, their policies and proceedures accordingly.

“We’re not operating at 110 percent capacity and pulling our hair out. But we’re also not short-changing customers. So when people start to think, ‘Maybe I should buy twelve pallets of toilet paper,’ the supply chain is not strained; it is not overwhelmed.

More toilet paper is on the way.”

Terry Howard, President, Carlile Transportation

priority, as it has always been,” says Alex Hofeling, TOTE vice president and general manager for Alaska. TOTE is closely engaged with local and community authorities to ensure the protection of its workforce.

Bal Dreyfus, senior vice president, Alaska for Matson, says “Our first priority is the health and safety of our employees.”

Carlile, TOTE, and Matson all report taking immediate common-sense actions early in the COVID-19 crisis: following all recommendations of the CDC, increasing cleaning and disinfecting protocols, securing and distributing personal protection equipment, and enabling as many workers as possible to work remotely.

But “transportation” is a varied business, and there is no one-size-fitsall solution for coping with a pandemic.

Span Alaska’s President Tom Souply says, “We are especially focused on Alaska Business

June 2020 | 27

TRANSPORTATION

A Span Alaska employee cleans to comply with COVID-19 guidance.

Span Alaska

the 6-foot rule. For example, the only time we allow two dock workers in the same container is when freight cannot be moved safely by a single person. If [that is] required, both employees must wear masks.”

TOTE has implemented “special provisions to minimize ship-toshore interface” with its vessel crews to limit their exposure and has limited or eliminated physically transferring paperwork, instead allowing documentation to take place electronically. Matson “changed the way we process automobiles to avoid the exchange of paperwork” and now does all of that documentation electronically. Carlile has dropped the requirement for customers to sign a receipt. “The drivers will sign those for you, and you have a designated amount of time to contact us with any concerns about your shipment,” Howard explains.

Northern Air Cargo has installed an acrylic sneeze guard at its customer service counter, and, according to General Manager Gideon Garcia, “For our pilot group we have paired up our pilots and first officers so they’ll fly together for an entire month or two,” reducing the number of interactions between different employees.

And to the credit of these companies, 28 | June 2020

they recognized the threat that COVID-19 presented and acted quickly to address it. Garcia is familiar with the perils of exposing a group of people to a virus: earlier in his career, he worked in the cruise industry for many years. “We dealt with NLV (Noro-like viruses) on the cruise ships. I had a lot of experience with that, so I was able to bring [that experience] for our workforce.” He knew early on that Northern Air Cargo needed to secure its own supply line of cleaning and personal protection products and guided the company in acting quickly.

“We immediately stood up our Incident Command System, or ICS,” TOTE’s Hofeling says of their early response. “Really even before a lot of Alaska or the Lower 48 was talking about COVID-19, we stood up the ICS to make sure we could communicate using it.” As early as February the shipping company had systems in place to facilitate its office staff working remotely. “We made sure that we could quickly get everybody working from home without impacting the customer and the market,” he says.

The majority of Carlile’s administrative/office staff is working remotely, “which was something we’re not really used to doing,” Howard says.

“But obviously, given the circumstances, we had to adjust quickly.”

Souply says that all of Span Alaska’s employees that can work from home are doing so, and the company is imploring its employees to take their work home in more than one way. “We are encouraging employees to use the same rigorous approach to personal safety when they are away from work; we are asking our employees to be responsible and protect their teammates by practicing the same safe habits away from work we are asking them to practice at work.”

Outside the Organization Transportation is essentially a network, connecting people or goods to each other. So while internal policies and procedures to address safety are absolutely vital, keeping the supply chain solid in Alaska necessarily involves an endless number of other organizations including customers, industry partners, and sister companies.

How those other organizations are coping with COVID-19 is both part of the challenge and the solution.

“With the ‘hunker down’ order in Alaska, we are seeing more challenges to deliver freight,” Souply says. “With non-essential businesses closing, our

Alaska Business www.akbizmag.com

MEETING ALASKA’S DESIGN AND CONSTRUCTION CHALLENGES — Civil, Geotechnical & Transportation Engineering — Construction Administration — Environmental Services — Material Testing — Planning — Real Estate Services — Surveying & Mapping

Parks Highway, MP 44-52.3 (DOT&PF, Central Region)

ENGAGE | EMPOWER | EXCEED Parks Highway, MP 44-52.3 (DOT&PF, Central Region)

Anchorage | Mat-Su | Kenai | hdlalaska.com

T U G

A N D

B A R G E

SAMSON TUG & BARGE is a full-service marine transportation company that provides door-to-door freight shipping services.

Carlile President Terry Howard wears a fish face mask, setting a stylish example of safety.

Kerry Tasker

www.akbizmag.com

Alaskan-owned, Samson specializes in shipping seafood and seafood supplies to and from Alaska's largest fishing communities.

WWW.SAMSONTUG.COM • 1-800-331-3522 Alaska Business

June 2020 | 29

TRANSPORTATION

facilities are building up undeliverable shipments. Our sales and operations teams are working diligently, contacting these companies and setting up appointments for them to meet and take their shipments. Our customers have been fantastic, understanding they must support us and keep our operations fluid.”

“What we’re seeing is customers are calling and saying, ‘Please make sure you call before you come over,’ which is not a norm for a lot of customers,” says Carlile’s Howard. “We’re seeing some limited access, something as fundamental as—and this is kind of a sensitive subject—but a lot of the customers will no longer allow our drivers to use their restroom facilities, so you’re seeing a little more standoffish type behavior, but we fully support and understand their reasoning.”

Carlile has suspended some of its fees associated with notification prior to arrival and driver standby (when a driver is waiting at a delivery site) to work with the businesses it serves. “We’ve just had to be more transparent and more efficient with our communications with the customers,” Howard says.

Span Alaska and Carlile routinely deliver goods for customers that operate on a “ just in time” system, meaning those customers can’t support extended delays in receiving

TRANSPORTATION

had the most sensitivity and urgent response to COVID-19; what we’ve been experiencing there is that they have a more aggressive approach to limiting access to Prudhoe Bay.” Carlile has worked with oil field operators to ensure their employees meet strict requirements to continue working on the North Slope: a minimum 14-day quarantine for employees that have been out of state, daily testing, and being aware and respectful of newly limited access to certain facilities.

Collaboration is also ongoing amongst transportation companies. In addition to consistent communication with local authorities, TOTE is working with regional businesses and industry groups to evaluate, share, and implement best practices. TOTE also has a standing meeting with its sister companies to provide updates and discuss how to best support the communities they serve and each other.

“Even little things like sharing some of our cleaning supplies,” Hofeling says.

“We’re actually doing that right now: somebody’s got a pallet of cleaning supplies and we’re going to work with a sister company to bring it up and we’ll share it amongst each other.”

Palletized goods await delivery at a Carlile facility.

Kerry Tasker

shipments any more than Carlile and Span Alaska can afford to store shipments indefinitely. The flexibility both companies are demonstrating has been key to keeping the supply chain robust. As an example, Span Alaska works closely with Matson to identify shipments of food and other critical supplies in case space is short on Matson’s ships.

That flexibility is only possible if all parties are in close contact.

For Matson, “We are in constant communication,” says Dreyfus. “Most of our customers are long-time, loyal customers and we have very good, strong relations with them. We work with them, they work with us, and the combination has been fantastic.”

Northern Air Cargo delivers goods to many communities that rely on regular and routine transportation services and has similarly needed to communicate clearly and find workable 30 | June 2020

compromises with those communities.

“A good example is Unalakleet,” Garcia says. “The village of Unalakleet imposed some travel restrictions in an effort to reduce exposure for the local residents to members of the crew aboard the airplane. However, we still need assistance in unloading the airplane because it's heavy freight onboard and it's not the work of just one person, so we had to modify our loading operations to work with our local contractor who does the loading of the plane… And it's working out well.

We had to put some limitations on what we could bring back from Unalakleet, but the key thing is food and medicine and vital goods are going out there on their regular twice-a-week schedule, weather allowing.”

And it’s not just remote communities taking a hard line on outside contact.

According to Howard, “The Prudhoe Bay region seems to be the one that’s

Resolve and Responsibility Alaska relies heavily on supplies from Outside. Businesses in our local manufacturing and agricultural industries produce items of high quality, but those industries (though growing) are small, and many Alaskans would be faced with incredibly difficult circumstances if our supply lines were to falter. Our freight and cargo movers take that responsibility seriously.

“In our DNA we consider ourselves critical infrastructure to the state of Alaska, and that comes with a lot of responsibility, and it also comes with very robust business continuity plans so that we can continue to provide this critical transportation to the state,” says Hofeling. “Our core values and our standards have not changed… we're continuing to call on the Port of Alaska twice a week, and we do it safely. The Alaska supply chain, and TOTE, are very resilient and strong and we’ve got continuity plans to deal with any future changes that we may see.”

Matson’s Dreyfus agrees that more changes are to come. “The reality is

Alaska Business www.akbizmag.com

our role in the Alaska supply chain. Every employee at Span Alaska understands our connection with Alaska and understands that in many cases the ship arrivals and commerce on those ships are the weekly supplies for Alaskans. This is a

Transportation Infrastructure Transforming Challenges into Solutions Rely on PDC’s decades of Highways and Aviation experience for every facet of your next transportation project.

• Urban and rural roads • Large and small airports • Utility relocations • Master planning and

community engagement

• Railroad and freight infrastructure

• Drainage Improvements • Intermodal transportation facilities

• Bike paths and trails • ADA improvements

Anchorage

907.743.3200

Fairbanks

907.452.1414

WWW.PDCENG.COM Juneau

907.780.6060

Palmer

907.707.1215

COME GROW WITH US - View open positions at www.PDCENG.com/apply-to-pdc

take great pride with

Soldotna

907.420.0462

SEATAC MARINE SERVICES

critical time for Alaska and our team at Span will remain focused and committed to serving our customers and Alaska without disruption.”

Tom Souply, President, Span Alaska

COVID-19 is not over; we’re in the midst of it. It will change and as it changes we’ll learn more about it and find new ways that things should be done.”

“We get it: we’re in this together, we’re the lifeblood, we’ve got to make sure it works,” Dreyfus continues, adding www.akbizmag.com

MARINE TERMINAL  BARGE TRANSPORTATION BULK LOGISTICS  CARGO OPERATIONS 6701 Fox Avenue, South Seattle, WA 98108 Tel: 206-767-6000 Fax: 206-767-6015

email: info@seatacmarine.com Alaska Business

June 2020 | 31

TRANSPORTATION

“We understand and

TRANSPORTATION

“Keeping everybody safe within the TOTE network is our number one priority, as it has always been.”

Alex Hofeling, Vice President and General Manager Alaska TOTE

that since COVID-19 has emerged the international shipper hasn’t missed a single shipping in its network, which includes Alaska, Hawaii, Guam, China, and Japan. “Matson recognizes its responsibility as a lifeline to Alaska, and we’ve got the entire Matson team committed and focused on it… people should feel comfortable that we will continue to provide that service.”

Northern Air Cargo has a simple message for Alaska: “Bypass mail keeps coming in.” Alaska’s rural communities rely on the service, which at the best of times can be unpredictable because of weather. When Ravn grounded its planes and filed for bankruptcy in early April, the most immediate concern for many rural communities was their supply chain. Fortunately, other air carriers, including Ryan Air, were able to take over transporting freight to those communities. As Garcia says, “That is the supply line for rural Alaska, for food, for all the stores out there.” He continues, “Our staff understands this well—and have for the over sixty years of our operation—that we are a vital link to a population that doesn’t have many choices for transportation. If you can’t get there because of frozen rivers and lack of roads, then it’s got to go in by air.

Our staff recognizes that our customers are in a unique location and have a unique way of life and that we are a vital part of their livelihood.” He says bypass mail has even seen a modest increase, “due to local populations preparing for worst-case scenarios.”

Souply echoes that Span Alaska employees are committed to making sure Alaskans have the supplies they need. “We understand and take great 32 | June 2020

Span Alaska workers wear PPE and remain as far from each other as possible while loading and unloading containers as a precaution during the COVID-19 pandemic.

Span Alaska

pride with our role in the Alaska supply chain,” Souply says. “Every employee at Span Alaska understands our connection with Alaska and understands that in many cases the ship arrivals and commerce on those ships are the weekly supplies for Alaskans.

This is a critical time for Alaska and our team at Span will remain focused and committed to serving our customers and Alaska without disruption.”

The majority of Alaska’s freight enters the state through the Port of Alaska, “but then a high volume of that freight needs to get dispersed to outlying communities: to the Kenai Peninsula, to the Railbelt, to Prudhoe Bay, to the MatSu Valley,” Howard says. That’s standard operating procedure for Alaska, and despite many adjustments, Alaska’s transporters really are operating

business as usual—though with more masks, disinfectant, and space.

“For the most part, our operations are operating normally, to the extent that we’re still delivering on time, we’re still repairing trucks and trailers, we’re still paying our bills, and we’re still managing data on behalf of our customers. As an industry, we’re still fully functional,” Howard says. Furthermore, he explains Carlile’s resources aren’t unduly stressed under the pressure of COVID-19. “We’re not operating at 110 percent capacity and pulling our hair out,” he says. “But we’re also not short-changing customers. So when people start to think, ‘Maybe I should buy twelve pallets of toilet paper,’ the supply chain is not strained; it is not overwhelmed. More toilet paper is on the way.”

Alaska Business www.akbizmag.com

ALASKA’S TUG & BARGE COMPANY Cook Inlet Tug & Barge is truly Alaska’s tug and barge company. Capable of meeting the needs of freight, construction and oil and gas companies for all of Alaska, our fleet includes powerful harbor and ocean tugs, deck and fuel barges – and versatile shallow draft tugs for the rivers and regions along the western coast and into the Arctic far north. www.cookinlettug.com

Rob Stapleton | Alaskafoto

TRANSPORTATION

Alaska’s Aces

The aviation industry flies forward despite global pandemic

By Vanessa Orr

T

he importance of the aviation industry to Alaska can’t be understated; not only does it provide a huge number of jobs in the state—almost 8 percent of all employment—but it is also responsible for transporting much of the food, products, and other necessities that residents need in their daily lives.

The industry also transports tourists, who bring money into the state, as well

34 | June 2020

as much of the equipment needed to keep Alaska’s manufacturing and natural resource industries running. And with more than 82 percent of Alaska’s communities not connected to the road system, it is at times a literal lifeline for those living outside the handful of urban areas.

“The effects of the aviation industry ripple throughout the entire economy,” explains Bill Popp, president and

CEO of the Anchorage Economic Development Corporation. “One out of ten jobs in Anchorage is in aviation, and those workers buy food in stores and purchase goods in retail outlets, as well as pay for services like auto maintenance and home repair.

“This creates a very significant ripple effect, which has been one of the great diversifiers of our economy in the last thirty years,” he continues.

Alaska Business www.akbizmag.com

By the Numbers According to the study 2019 Economic Contribution of the Aviation Industry to Alaska’s Economy, the aviation industry generates nearly $3.8 billion in economic activity throughout the state’s airport system. It contributed more than 35,000 jobs to the state economy in 2017, including 26,000 jobs in the Alaska International Aviation System, which comprises Ted Stevens Anchorage International Airport (ANC) and Fairbanks International Airport.

According to the Alaska Department of Transportation & Public Facilities (DOT&PF), there are nearly 400 publicuse general aviation airports across the state, and the department owns and operates 239 airports. These facilities are home to about 8,800 registered aircraft and 8,300 pilots.

In addition, the FAA reports that the state is home to forty-six repair stations, three FAA-approved pilot schools,

1,748 student pilots, and 1,449 flight instructors. There are also 51 fixed-base operators and 101 heliports. Alaska also has 109 seaplane bases—the most in the country.

In Anchorage alone, the numbers are impressive.

“The aviation industry is responsible for approximately 22,000 jobs related to the airport; about 16,000 direct onsite jobs and 6,500 offsite,” says ANC Manager Jim Szczesniak. “ANC has an economic impact in Alaska of about $1.84 billion a year—$1 billion in direct economic impact with the salaries of employees pouring into the economy and an $840 million multiplier effect.”

ANC is the world’s fifth busiest air cargo airport, carrying a little less than half of all of the world’s cargo in the bellies of planes passing through.

“ANC specializes in freighter aircraft, and that’s currently a very strong market,” says Szczesniak, adding that the cargo market follows the gross domestic product (GDP). “As we see changes in the global economy, it affects the amount of freight traffic we see.”

“Places requiring medical supplies also want them immediately; they no longer have the luxury of waiting three weeks to have something shipped by boat…

Air carriers can get it there quickly, which is another strong reason why we’re seeing increased demand.”

Barge service to the North Slope Villages

Jim Szczesniak, Manager, ANC

Wainwright

Barrow

Point Lay Point Hope

Prudhoe Bay Kaktovik

Kotzebue

In cooperation with Bowhead Transport, Alaska Marine Lines is providing scheduled barge service to the North Slope Villages of Point Hope, Point Lay, Wainwright, Utqiagvik (Barrow), Prudhoe Bay and Kaktovik.

The stops are in addition to Alaska Marine Lines’ many other service locations including the major hubs of Naknek, Dillingham, Nome, Bethel and Kotzebue, and Dutch Harbor more than 65 villages along the coast of Western Alaska.

Nome

Cargo receiving deadline: Seattle – June 29 Anchorage – July 9 Bethel Dillingham Naknek

Fo r a d di ti o n a l i nfo r m a ti o n a n d s c h e d u l e s p l e a s e v i s i t w w w. s h i p a m l .c o m , e m a il w e s t e r n a kc s @ l y n d e n .c o m, o r c a ll 8 0 0 - 4 2 6 - 3113 . www.akbizmag.com

Alaska Business

June 2020 | 35

TRANSPORTATION

“This is especially important in times like these because it runs countercyclical to broader statewide and national recessions.”

TRANSPORTATION

The Good News Even with all of the changes going on in the world due to COVID-19, freight traffic remains up at Alaska airports.

“The Anchorage and Fairbanks transPacific routes for air cargo are doing well; while there was a slowdown in China over the last couple of months, they are currently trying to refill US markets, which means that the freight market is booming,” says DOT&PF Deputy Commissioner John Binder.

The Anchorage airport saw a surge in cargo flights beginning in March according to Popp, with air cargo numbers up roughly 16 percent to 18 percent. “We’ve seen very significant tonnage numbers in previous years, and it helps that we have a large number of international carriers on the Pacific Rim trade route between Asia and the United States,” he says. “Eighty percent of air cargo entering North America in 2019 from Asia landed at Anchorage first before going on to its final destination.”

Cathay Pacific, based in Hong Kong, is the largest freight carrier by landed weight, and other international carriers—Air China, China Southern,

36 | June 2020

Asiana Airlines, and Singapore Airlines— add to the mix.

“We are a strategic location for cargo flights coming from Asia to North America because they need to stop here to refuel,” says Szczesniak. “Because cargo is heavier, most planes only fill up halfway with gas, so they need to stop here before continuing.”

UPS and FedEx also both have bases at ANC, which adds to the amount of cargo coming through the airport. Of Anchorage’s $25.4 billion GDP in 2018, $4.1 billion came from transportation and warehousing, a substantial portion of which is airport-related passenger and cargo business.

“What’s really unique is that an airport with this level of passenger size anywhere else in the United States would be a smaller economic player, but because of our cargo traffic ANC has much more economic impact,” says Szczesniak.

He adds that the Lake Hood Airport, which ANC also manages, has an added annual economic impact of $42 million, with more than 71,709 operations taking place in 2018.

Freight shipments have been steadily increasing at ANC, despite the pandemic.

“It was slower during the Lunar New Year in Asia, when all of the Asian factories shut down and people weren’t at work,” explains Szczesniak. “Then they ended up closed for a lot longer because of COVID-19. But now that they are up and running, they’re working on making parts to restock inventories and to relieve the backlog. And all of these goods are coming in on freighters.

“Places requiring medical supplies also want them immediately; they no longer have the luxury of waiting three weeks to have something shipped by boat,” he adds. “Air carriers can get it there quickly, which is another strong reason why we’re seeing increased demand.”

Depending on how the COVID-19 situation develops, demand could stay high for a while.

“With the mixture of the disruption of manufacturing in Asia and increasing challenges in the supply chain, we may see this continue into summer and beyond,” says Popp. “The surface

Alaska Business www.akbizmag.com

TRANSPORTATION Cargolux, Europe’s largest all-cargo airline, is one of many international carriers that flies into Ted Stevens Anchorage International Airport.

ANC

transportation industry has seen a significant drop in the number of ocean-going container cargo ships transiting between Asia and West Coast ports, which means businesses may be switching supply chains if they can’t reserve space on ships. They may switch to air cargo if they can.”

“We’re definitely busy from a cargo freight perspective, and while we anticipate that it will be like this for a while, who knows how long it will last?”

says Szczesniak. “Once the inventory restructuring and critical medical needs are over, things could change. Since the industry is based on GDP, we’ll need to guard against a potential recession scenario globally.”

The Not-So-Good News The majority of the world is under stay-at-home orders with only essential travel permitted, and the tourism industry worldwide is

undergoing a massive slump—and that includes Alaska.

“We are seeing a huge decrease in passenger service; it’s approximately 90 percent down,” says Binder. “Airlines are indicating reduced flights and operations for the foreseeable future— at least through summer and fall.

“Already, many cruise markets have cancelled sailings, which is directly related to air passenger service, because most people either come in or leave

P

N

D

E NGINEERS, I NC.

A n c h o ra g e Juneau Pa l m e r Seattle Houston Po r t l a n d V a n c o u v e r, B .C .

We’re with you. The COVID-19 pandemic has thrown everyone a curveball, with consequences likely to be felt for many months. Home, work, and social lives have been upended, and the future is full of questions. What hasn’t changed is PND’s commitment to our clients and our community. We’ve never backed away from a challen and we’re drawing on the reliability, challenge, resilience, and innovation that have always been our hallmarks to ensure projects keep progressing, deadlines continue to be met, and our staff remains safe, available, and responsive.

We’re going to get through this. Together.

Civil • Planning • Surveying • Structural • Permitting • Marine Facilities • Geotechnical • Environmental Transportation • Coastal Engineering Hydrology • Contract Administration • Construction Engineering Support

www.akbizmag.com

Alaska Business

June 2020 | 37

TRANSPORTATION

“The Anchorage and Fairbanks trans-Pacific routes for air cargo are doing well; while there was a slowdown in China over the last couple of months, they are currently trying to refill US markets, which means that the freight market is booming.”

John Binder, Deputy Commissioner, DOT&PF

Alaska on an airline,” he continues. “It looks to be a challenging summer.”

Depending on how quickly the quarantine lifts nationwide, Binder says that some people with disposable income may still be willing to travel during the back end of the season, but the tourism portion of the aviation industry is facing big challenges ahead.

Popp agrees. “Up until COVID-19, passenger numbers were very solid, and we were predicting more than 5 million enplanements this year,” he says. “It was going to be a banner year for tourism up until the pandemic.”

Even when the virus finally runs its course, its effects will remain.

“We’re looking at a lost tourism season most likely,” says Popp. “We’re not going to see hundreds of thousands of cruise ship passengers coming in or leaving in cross-Gulf traffic. That is going to have a pretty substantive impact on passenger operations.”

At ANC, passenger traffic is down 85 percent through TSA checkpoints, compared to a 92 percent decrease nationally. “We’re working with carriers to maintain summer capacity so that 38 | June 2020

when travel restrictions are lifted, we can salvage what we can,” says Szczesniak. “We’re trying to make sure that the airport is ready to host the best tourism season that we can hope for, while at the same time continuing to protect Alaskans. We’re hoping for a treatment so that things can return to normal more quickly.”

In the meantime, the airport is doing what it can to help carriers.

“At our international airports in Anchorage and Fairbanks, we’re deferring rates and fees through June, hoping that we can span the gap between now and when airlines get federal resources if those become available,” says Binder.

“We know from a revenue perspective that when passenger carriers are down, you have to look at ways to reduce expenses,” says Szczesniak. “We are undertaking a number of energy conservation projects, including turning off escalators and the moving sidewalks, which take a huge amount of energy, as well as closing sections of the terminal to minimize expenses.”

For the airports themselves, help is on the way from federal sources.

In mid-April the US Department of Transportation announced that airports in Alaska will receive upwards of $124 million in federal aid, a portion of the $10 billion made available to airports nationwide as part of the CARES Act. The funds are to preserve operations and protect jobs, whether that’s through capital projects, payroll, or utilities and debt payment.

And for Alaska’s largest air carrier, in late-April Alaska Airlines and Horizon Air announced the finalization of an agreement with the US Treasury Department and accepted $992 million to be used to pay employee salaries, wages, and benefits. The payment took the form of a $725 million grant and $267 million loan. In total, the funds are intended to cover about 70 percent of the budget payrolls costs for the airlines through September.

Conditions for receiving the grant and loan include “no involuntary furloughs and no reductions to rates of pay or benefits through September 30, 2020; to continue suspension of dividends and share repurchases until September 30, 2021; limits on executive compensation through March 24,

2022; and to maintain the minimum levels of air service as required under a Department of Transportation rule,” according to Alaska Airlines.

Alaska Air Group’s CEO Brad Tilden said of the funds, “This support enables us to protect jobs and maintain critical transportation infrastructure while we work over the next few months to assess our business and make thoughtful decisions."

Unfortunately, federal assistance came too late to help RavnAir Alaska, which declared bankruptcy in April.

“When we became aware of the RavnAir shutdown, we held an emergency meeting of the Aviation Advisory Board, which represents different stakeholder groups,” says Binder. “Our primary concern was getting rural Alaska the essential things they needed as quickly as possible.”

The board was able to work with smaller carriers to continue moving this cargo, and Alaska Airlines reached an agreement with Ravn to use some of its facilities. The company also added flights to Cold Bay, Dillingham, King Salmon, and Deadhorse to provide more freight capacity.

“While everyone is aligned from a freight perspective, once passenger traffic picks up, that’s another discussion,” says Binder of the demise of the largest in-state carrier. “There is a lot of capacity gone with RavnAir’s closure, and we have to sort that out.”

Despite these setbacks, the industry is moving forward, and plans at ANC include more than $700 million in upcoming construction projects, which are expected to provide up to 1,500 new jobs. These include a $57 million, 98,000-square-foot domestic operations center for FedEx; an expansion of UPS’ existing facilities; a $200 million, 700,000-squarefoot cargo warehouse for Alaska Cargo and Cold Storage; a 500,000-square-foot cargo transfer facility for 6A-XL Aviation Alaska; and a 300,000-square-foot air cargo warehouse for 6A Aviation Inc. “Even in this environment, the fundamental proposition hasn’t changed—we’re still an important strategic location,” says Szczesniak.

“We’re working with the developers to continue with these plans, even if there may be some delays.”

Alaska Business www.akbizmag.com

®

Y o ur C ontrol Tow er A p p roach to Log is t i c s There are lots of ways to get from Point A to Point B, but there’s only one optimal way. For your business to maximize its profit, you need to avoid weather disruptions, labor shortages, price increases and countless other inefficiencies.

Odyssey creates custom-tailored, sustainable solutions across multiple transportation modes.

Let us help you navigate the ever-changing logistics landscape.

Download our whitepaper CONTROL TOWER APPROACH DRIVES VISIBILITY, AIDS PLANNING AND SUPPLY CHAIN RELIABILITY

LANXESS, a global specialty chemicals supplier, selected Odyssey Logistics & Technology to track multiple assets for four business units that provide products across 33 countries.

THE CHALLENGE References to control towers generally conjure up images of tall buildings lurking in the middle of airports, filled with air traffic controllers hovering over numerous radar screens to ensure every aircraft departs and arrives safely. While there may not be a physical “tower,” a supply chain and logistical control tower works in a similar fashion, providing visibility across multiple operations, assets and services. When LANXESS was challenged with managing a variety of assets across multiple partners and countries such as ocean containers, rail cars or ISO tanks, its team turned to Odyssey to help track these resources.

The core business for LANXESS is developing, manufacturing and marketing chemical intermediates, additives, specialty chemicals and plastics. The challenge was to integrate all assets across four LANXESS business units servicing 60 production sites worldwide so that the internal customer team can see where their products are at any given time.

doortodone.com/IT Learn how a control tower approach drives visibility and aids planning and supply chain reliability.

© 2020 Odyssey Logistics & Technology Corporation

Aviation experts keep the Bush well-stocked

By Amy Newman

Shopping from the Bush

Bailey’s Furniture

TRANSPORTATION

R

High Flyin’ Goods and Groceries

eality television has painted a somewhat distorted picture of life in Bush Alaska. Shows like Alaskan Bush People and Alaska: The Last Frontier depict families living life offthe-grid, chopping wood to build their cabins, and hunting and gathering to put food on the table.

But even the hardiest of those living in the Alaska Bush head to the store at least occasionally to stock their pantry and purchase clothes, furniture, and other personal items.

It just takes a bit more effort—and an airplane—to do what is an easy afternoon errand for the rest of Alaska.

“We’re a service provider,” says Clinton White, owner and operator of Anchorage-based Greatland Grocery & Supply, an online store that serves all of Alaska. “We market ourselves as a grocery store, but really we’re a supplier of goods that Bush communities need.”

Even for businesses that predominantly serve more traditional customers, Bush orders still comprise a significant portion of their sales.

“It’s amazing how much stuff goes out in the Bush,” says Ron Bailey, president of Bailey’s Furniture, which has showrooms in Anchorage, Fairbanks, Wasilla, and Soldotna. “I’d estimate that 10 to 15 percent of our sales are Bush orders.”

And what's delivered to Bush communities is as varied as the people who live and work there.

“I’ve hauled everything from sled dogs to CAT parts for bulldozers, caskets, even peregrine falcons several times,” says Eric Sieh, pilot and owner of the Kotzebue-based Arctic Backcountry Flying Service. “Just about most things you can think of, I may have flown it.”

40 | June 2020

Without any brick and mortar stores in the Alaska Bush, there are no quick trips to Fred Meyer for a dozen eggs or some last-minute shopping for Thanksgiving dinner. Instead, residents and businesses order groceries and personal items online through the store’s website; submit an order form via email, regular mail, phone, or fax; or shop in-store during a trip to one of Alaska’s hub cities.

For stores that offer online ordering, shopping isn’t much different than

Alaska Business www.akbizmag.com

www.akbizmag.com

about buying off the web—you don’t get to touch it or feel it,” Bailey says. “It’s always a little disconcerting, especially if it’s a mattress or upholstery. If it’s a dining room table, it doesn’t matter.”

T he forced closure of Bailey’s showrooms due to COVID -19 led employees to devise a 21 stcentur y solution to alleviate some of those concerns .

“I’ll go in and see our guys walking around on Facetime with a customer, showing them the different choices live,” Bailey says. “So, there are definitely different ways of purchasing and feeling good about your purchase if you’re not in the store.”

Preparing Goods for Delivery Ordering groceries and personal items for Bush delivery is the easy part.

Getting those items to their destination involves logistical considerations, not to mention added delivery costs, that don’t factor into the equation for those who can simply load purchases into a car and drive home.

Greatland Grocery has built the weight of every item into its ordering system so customers have a running

tally of the order’s total cost and weight in their virtual cart.

“We’ve been able to attribute unit weights to all the stuff that we offer, so it’s possible to automate what shipping costs are going to be,” White says.

“So, with that, we can offer air freight transactions if people want, we know what our USPS costs are going to be, and that makes it a bit more streamlined.”

Bailey’s provides the packaged weight and dimensions of every item it sells so Bush customers can accurately determine not just the shipping cost but whether the plane that will ultimately deliver the item can accommodate it.

“People in Anchorage, they want to know if it will fit on their wall,” Bailey says. “People in the Bush, they want to know that too, but they also want to know the shipping cost, so they get double dimensions.”

Whether an item is perishable also factors into how an order is packaged and delivered. Greatland Grocery’s system automatically categorizes goods as dry, frozen, or keep cool, White says. Fresh meat is frozen before shipping, and frozen and other perishable items are packed in lined

Designs that take you to new destinations stantec.com

Municipality of Anchorage 100th Avenue Extension

Alaska Business

June 2020 | 41

TRANSPORTATION

ordering through Amazon or a grocery store app.

“It works like any other e-commerce site that folks are familiar with,” White says. “You can browse the items and add them to your cart. Pretty much anything you’re going to find at any major store is processed through one easy online transaction.”

Order fulfillment varies by store.

Greatland Grocery doesn’t have a physical location, so employees shop to fulfill orders much the same as Alaskans who don’t live in the Bush.

“We use the same resources that every other customer does and source from different retailers in town,” White explains. “Sometimes it’s physically going to the stores, but more often it’s trying to use [the store’s] own electronic resources, like [Pickup] or things like that. The system that we’ve built with our service syncs with theirs. It takes an existing system that they already have but customizes it specifically for our market.”

Stores with a physical location have dedicated employees to fulfill Bush orders. Fred Meyer, which only accepts orders via phone, fax, mail, or email, has a team of Alaska Bush Personal Shoppers who pull items from the shelves and prepare them for delivery.

For in-store customers, the Bush delivery department packs and sends the order out for shipment.

Bailey’s handles Bush deliveries from its Anchorage and Fairbanks showrooms, with the majority of in-person orders coming from the Anchorage store.

“Anchorage is the hub for most of our ship out type stuff,” he explains. “I think people living in the Bush, they want to come to Anchorage anyway and they want to shop. And the biggest freight forwarders are based in Anchorage.”

While purchasing groceries is fairly straightforward—there’s no real risk of surprises when ordering a 10-pound package of ground beef or a gallon of milk—ordering household goods like furniture can be tricky. A customer’s number one priority when buying a bed or couch is whether it’s comfortable, something that’s hard to determine without being able to physically sit on or touch it before purchase.

“Our website is really good at visually showing the piece, but that’s one thing

TRANSPORTATION

“I’ve hauled everything from sled dogs to CAT parts for bulldozers, caskets, even peregrine falcons several times…

Just about most things you can think of, I may have flown it.”

Eric Sieh, Pilot/Owner Arctic Backcountry Flying Service

plastic totes that essentially turn them into a cooler.

Greatland Grocery ships via USPS, which means that certain items require special handling.

“Aerosol can’t go through USPS, and there are other small things like vanilla extract, alcohol, some cleaning chemicals, and things like that,” White says. “We do sell them and offer them, [but] if you needed to buy this cleaning product that can’t be shipped USPS by regulation, it’ll be automatically put in air freight.”

Because large item returns are more difficult from the Bush, Bailey’s takes extra measures to ensure that every item is free of defects before shipping.

“We unbox every single item, inspect it, and make sure all the parts are there and that there’s no damage,” Bailey says. “Then we re-box it, add additional packaging as necessary, and send it to the freight forwarder of [the customer’s] choice.”

Delivery Delivering items to Bush customers quickly is a priority.

“We know that the people out in the Bush want to get their stuff as quick as they can,” Bailey says. “We don’t hold on to it for two to three days; we just load it up and get it out to them. Honestly, we go to the airport every single day of the year.”

Greatland Grocery works to get its orders sourced and shipped the same 42 | June 2020

day whenever possible, White says, and usually gets them out within two days. For perishable orders submitted late in the week, White sometimes doesn’t fulfill the order until the following Monday to avoid having it sit at the post office an extra day, but he says that is rare.

According to Fred Meyer’s website, all of its Bush orders are shipped within 72 hours, with weekend orders shipped on Tuesday.

The majority of Bush deliveries are shipped air-freight via the carrier of the customer’s choice. Downline carriers typically deliver the shipment from the hub community to the Bush, although customers can request that a specific company deliver the goods all or part of the way instead.

“If you were in Anchorage, you could put 385 pounds of groceries on Alaska Airlines or Northern Air Cargo and tell them to call Arctic Backcountry when it gets to Kotzebue and he’ll move it to Noorvik,” Sieh says. “If people make a Bush order, and they specifically want me to do it, they can do it that way.”

Tony Bannock, office manager for Regal Air, says the charter company typically delivers groceries to remote lodges or directly to the customer’s cabin.

“People will ask us, ‘How far do you go?’ The answer is, if you write a big enough check, we’ll go anywhere because we charge by the hour,” he says with a laugh. “Most of our stuff is off-airport, so we can pretty much go anywhere in the state of Alaska.

But it’s usually about 100 miles around Anchorage, mostly to the west and northwest.”

Greatland Grocery ships most of its orders via USPS, which White says has worked well.

“I got to say, those guys are phenomenal,” he says. “We routinely have orders that go out to rural Alaska to the post office and someone’s collecting from their post office within eighteen hours.”

It’s not just individuals who rely on Bush delivery.

“I haul food for the Northwest Arctic Borough School District, so I hit ten villages a week,” Sieh says. “I deliver all the freeze and produce for all the schools when they’re in session. The Arctic Slope Regional Corporation’s up

in Kivalina, so I’ll fly parts in there.”

Bush pilots are especially vital when companies run the risk of operational interruptions if they don’t receive a certain piece of equipment or part quickly.

“Cruz Construction was up [in Kiana] building a runway, and I did a Goldstreak every night for two weeks straight,” Sieh says. “They need it; they’re doing a job—that’s kind of my specialty.”

When several trips are required to deliver an order, Bannock says Bush pilots carefully consider how to deliver the goods to ensure that if a delay occurs, customers don’t find themselves fully stocked with one essential and not another.

“A lodge owner will come in, especially for the spring ship, and they’ll literally buy $20,000 worth of paper towels, soda pop, beer, steaks, chicken, everything you can possibly think of,” he says. “You just kind of divvy it up [over several flights] so they got a little bit of everything to get them started.’”

Bush deliveries happen year-round, although their frequency may change seasonally.

“In the summer it’s every single day we’re hauling groceries somewhere,” Bannock says. “Somebody’s cabin, somebody’s fishing camp, somebody’s oil operations, somebody’s homestead. Every day we have a Costco box going somewhere. Once the summer season is over, a lot of the time we’ll do a huge couple of grocery hauls to the lodges that have pulled out but still have caretakers. We’ll do a Beaver load of groceries to keep them until December.”

The season also factors into how Bush pilots decide which items to deliver first.

“In the summertime, we try to get the produce and frozen stuff out first,” Bannock says. “That way it gets into their freezer and we’re not liable. In the wintertime, then we want to get the canned food and soda pop out because that stuff’s going to freeze.”

Although it sounds exciting, Bannock says the reality of Bush delivery is typically anything but.

“It’s really just like loading your truck up with groceries and taking them home, but you’re using airplanes,” he says. “It’s usually pretty boring, and that’s how we like it.”

Alaska Business www.akbizmag.com

PLANS CHANGE. DEADLINES DON’T. Important shipment? No need to worry. You can check the status from anywhere using Lynden’s new mobile app.

Download at www.lynden.com/mobile

TRANSPORTATION

Designated Driving Safety corridors made even safer with multiple projects statewide

By Vanessa Orr

S

ummertime is construction season in Alaska, and while no one can yet predict what the tourist season holds, Alaska’s highways are already heavily used, even before the influx of independent travelers.

There are some places where substantial traffic—and sometimes road conditions—make it more hazardous for drivers to traverse. As a result, Alaska’s Department of Transportation and Public Facilities (DOT&PF) has established Safety Corridors in areas with a higher than average incidence of fatal and serious injury crashes. DOT&PF is also responsible for overseeing the federal Highway Safety Improvement Program (HSIP), which identifies and funds a wide variety of highway safety projects with the goal of saving lives and reducing injuries.

Safety Corridors Alaska has four designated Safety Corridors, including the Seward Highway, Parks Highway, Knik/Goose Bay Road, and the Sterling Highway.

As a result of this designation, the Commissioners of Transportation & Public Facilities and Public Safety agree to provide funding for effective education, enforcement, and engineering, as well as support emergency response agencies for those sections of road.

“Back when these four highways were designated as Safety Corridors, they occupied the top four spots as the most serious crash areas in Alaska,” explains Scott Thomas, a traffic and safety engineer for DOT&PF’s Central Region Traffic, Safety, and Utilities Section. “Since the program started, three of them—Seward, Parks, and 44 | June 2020

Sterling—now rank 7, 8, and 9. But we can’t let up; these areas still need policing and media attention, as well as infrastructure improvements.”

This year, work will continue on the Seward Highway on the Bird to Indian Rehabilitation project, which includes paving 5 miles of road and widening sections to create left-turn lanes. The project, which is expected to take at least two seasons to complete, is budgeted at more than $30 million.

“We’re also working on three emergency rock fall projects, cutting back loose rocks in thirteen locations from Indian to Anchorage, and that’s expected to take multiple summers to complete,” says Thomas of the $20 million project. “It’s slow work because we have to close the road when we’re doing it, so it will also impact traffic.”

DOT&PF is continuing work on the $100 million Girdwood to Ingram Creek project on Turnagain Arm, widening the road and creating passing lanes.

On the Parks Highway, the $50 million Pittman Road to Big Lake Road project is expected to start in mid- to late summer. “It will take a couple of years to finish extending the four-lane divided highway, but when it’s completed, we will be able to decommission the safety corridor,” says Thomas. “It will basically be a whole new road.”

This past year was a bad one for travelers on Knik-Goose Bay Road, which recorded three fatal crashes with three fatalities. Safety Corridor improvements in 2021 will include the start of construction on a divided fourlane highway from Wasilla south to Settlers Bay. “We’ll be doing a few miles at a time,” says Thomas of the $150 million project

that is expected to take three to four years to complete. The work will be done in phases.

Plans to make the Sterling Highway a four-lane divided highway are also underway, though that project is awaiting funding, which may take five or more years to arrive. The design process is moving forward in the meantime and will not only include work on the highway itself but improvements to side streets to make it easier for drivers to get to a traffic signal, similar to work done on the Parks Highway and KnikGoose Bay Road.

“We’re working with the community and borough to find ways to connect blocks to make it safer to access the highway,” says Thomas, adding that this will also provide better emergency access for neighborhoods as well as safer routes for school busses.

Highway Safety Improvement Projects A number of highway safety improvement projects are either underway or are scheduled in 2021 and 2022 to improve the infrastructure in other high-risk areas. HSIP projects focus on areas within the state with safety hazards that meet federally approved criteria.

In the Northern Region, these include signal upgrades in the Fairbanks area and the construction of an interchange at the intersection of Airport Way, Steese Expressway, Gaffney Road, and the Richardson Highway.

The $25 million signal upgrade project in Fairbanks will include the installation of one signal head per lane and flashing yellow arrows at multiple locations in surrounding areas. The goal

Alaska Business www.akbizmag.com

DOT&PF

TRANSPORTATION

160

Seward, Parks begun 2006

Fatal Serious Injury

140

Fatal + Serious

120

(5 year rolling average)

Safety Corridors: Serious Crashes

Sterling, KGB begun 2009

100

80

60 Serous Crashes

40

20

includes roadside hardware, drainage improvements, intersection improvements, and replacing both curb ramps and sidewalks.

According to DOT&PF reports, this intersection consistently ranks among the top five in the Northern Region for most crashes. Because there is more traffic moving through the intersection than it was designed to accommodate, wait times are also the longest of any intersection in the Fairbanks area, with up to a four-

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

0 1981

of the project, which began in 2018 and is expected to finish in 2022, is to help drivers when weather conditions make it difficult to see the road’s striping.

Installing one signal head per driving lane will make it easier for drivers to line up in the correct location even when snow covers the striping. The new signal heads have retroreflective backplates that increase signal visibility, which has been shown to reduce crashes, and the signals feature flashing yellow arrows to improve compliance and safety for leftturning drivers.

According to Matt Walker, who is a state traffic and safety engineer and the design and construction standards team lead for DOT&PF, one of the unique aspects of this project is that ground penetrating radar was used to discover the locations of underground utilities before digging into the ground.

“This saved money by ensuring that the contractor knew where to dig without the danger of hitting hidden utilities,” he explains.

The Airport Way/Steese Highway Intersection Reconstruction, which is budgeted at $15 million,

minute wait during peak traffic.

“While the original plan for this project was to build a grade-separated interchange with a cost of approximately $40 million, in the interest of cost accountability and feasibility, the design consultant was able to find an at-grade solution that still provided a significant safety benefit with a much lower price tag,” says Walker.

The project, which is scheduled for 2022 or 2023, will increase capacity, decrease wait times, and minimize

Growing with Alaska.

Span Alaska’s new Anchorage Service Center (ASC) means even better service and more options for our customers statewide.

Our new facility increases our capacity, improves our security, offers customizable storage areas, and streamlines freight handling — all to enable faster, smoother, and more consistent delivery of your cargo to its final destination.

Stop by our new ASC and see what Span Alaska can do for you.

Or, to schedule a pickup or find the terminal nearest you, call 1-800-257-7726 or visit us at spanalaska.com. www.akbizmag.com

Serving Alaska since 1978 Alaska Business

June 2020 | 45

Do Safety Corridors Work?

According to DOT&PF’s Annual Safety Corridors Audit, which reported totals for all four corridors through May 31, 2017, while fatal crashes were up on the Seward Highway, overall, accident numbers were down.

Fatal crashes were up 23 percent between Mileposts 88 and 117 on the Seward Highway, with 2.4 crashes per year, but serious injury crashes were down 55 percent and serious crashes were down 38 percent.

On the Parks Highway, fatal crashes were down 37 percent; serious injury crashes and serious crashes were each down 38 percent.

Fatal crashes were down 18 percent on Knik-Goose Bay Road, with serious injury crashes and serious crashes down 24 and 23 percent respectively.

Fatal crashes on the Sterling Highway were down 34 percent, with serious injury crashes down 51 percent and serious crashes down 45 percent.

Overall, fatal and serious injury crashes were down by almost 46 percent since Safety Corridors were designated fifteen years ago, which Thomas credits to the coordination of engineering, enforcement, education, and EMS services.

An addendum to the audit also showed that the highways with Safety Corridors had a 23 percent greater reduction in crashes when tested against similar undesignated corridors.

46 | June 2020

(2015-2017 major injury crashes approximate un�l reports finalized)

DOT&PF

Traffic Safety Corridors Combined - Fatal & Major Injury Crashes: 1977-2017 45

Bureau of Hwy Patrol Begins 40

First Safety Corridors 2006

35 30 Number of Severe Crashes

25 20 15 10 5

Fatal Crashes

In fact, undesignated candidate highways showed increasing fatalities over the decade while the highways with Safety Corridors did not.

Another interesting observation in the addendum is the “ghost effect,” which shows that the four highways with Safety Corridors experienced a reduction in accidents along the entire road—not just in the safety corridor segments.

“In contrast, roads without Safety Corridors did not show as great a reduction over time or show a ghost effect,” says Thomas, adding that this carryover effect is credited to drivers changing behavior along the whole road as a result of the corridors.

DOT&PF estimates that as many as 350 serious crashes have been prevented along the full lengths of these four major highways over the past fifteen years.

Getting Drivers to Play It Safe While road conditions certainly play a factor in serious or fatal crashes, so do reckless drivers or those under the influence. According to DOT&PF, research shows that high-risk drivers are a significant contributing factor in making Alaska’s roads more dangerous.

To combat this issue, traffic offenses committed within designated Safety Corridors come with double fines from law enforcement, and passing within a no-passing zone also adds two additional points against a motorists’ license.

“There’s a small percentage of people

2010 2011 2012 2013 2014 2015 2016 2017

0 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TRANSPORTATION

vehicle conflicts at the intersection.

In the Southcoast Region, two HSIP projects are in the design stage and are slated to be advertised this fall.

In Sitka, pedestrian safety will be improved by a project at the intersection of Peterson Avenue and Halibut Point Road that will upgrade illumination, provide a pedestrian island, and remove adjacent structures that obstruct drivers’ lines of sight as they turn from Peterson onto Halibut Point Road.

Pedestrian safety will also be improved in Ketchikan at the intersection of Stedman Street and Deermount Street with a project that upgrades illumination and constructs a curb extension on the water side of Stedman Street.

“This project addresses the causes of two recent, fatal pedestrian crashes,” says Walker.

Major Injury Crashes

that just don’t care, and it doesn’t matter what we build—they have to meet a police officer and get a big fine before it makes a difference,” says Thomas.

“Thankfully, the larger percentage do care, leading to increased acceptance that it is okay to drive the speed limit and to not be reckless, which influences the outcomes.”

Fifty percent of the fines from these motorists fund DOT&PF highway safety programs, which can be used to fund additional levels of enforcement in Safety Corridors.

“While things have gotten better since we started, we wouldn’t have seen these results without driver support, police enforcement, and discussion in the media,” says Thomas. “The more people hear about these projects, the more they start reflecting on their actions and thinking about what they can do to make our highways safer.

“We can spend hundreds of millions of dollars, but if the drivers aren’t with us—if they don’t drive the speed limit and leave a little room between vehicles—it won’t change anything,” he adds. “We need people to choose to be cautious and enforcement to help remind those who don’t.”

While work is going on in the Safety Corridors and on other Alaska roads, drivers can find the most updated information, including road conditions and public access restrictions, on the State of Alaska Department of Transportation at 511.alaska.gov.

Detailed construction updates can be found at alaskanavigator.org.

Alaska Business www.akbizmag.com

TRANSPORTATION DIRECTORY

Transportation Directory 40-MILE AIR LEIF WILSON, OWNER

PO Box 539 Tok, AK 99780 40-mileair.com fortymi@aptalaska.net 907-883-5191 Air charters, scheduled flights, and hunting operation.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1959/1959 | 10/10

ACE AIR CARGO MIKE BERGT, PRES.

5901 Lockheed Ave. Anchorage, AK 99502 907-334-5100 On demand passenger charters throughout Alaska. Cargo transportation provider offering scheduled cargo service to twenty-one locations in Alaska. ACE Logistics freightforwarding and logistics provider.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1988/ 1988 | 150/150

ACE DELIVERY & MOVING HANK SCHAUB, GM

PO Box 221389 Anchorage, AK 99522 alaskanace.com alaskanace@gci.net 907-522-6684 Air cargo and express-package services, arrangement of transportation of freight, freight-transportation services, local delivery services, local trucking with storage, and third-party logistics. Residential and office moves.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1994/1994 | 12/12

ALASKA AIR CARGO TORQUE ZUBECK, MNG. DIR.

4700 Old International Airport Rd. Anchorage, AK 99502 alaskacargo.com cargo@alaskaair.com 800-225-2752 Goldstreak package express, Pet Connect Animal Travel, priority and general air freight services. Our modern fleet of 737-700 freighters serves 19 Alaska communities with connections to more than 100 destinations in the Lower 48, Hawaii, and beyond.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1932/1932 | 24,000/3,000

ALASKA AIR FORWARDING JEFF DORNES, CO-OWNER

4000 W. 50th Ave., Ste. 6 Anchorage, AK 99502 aln@alaskaaircargo.com 907-248-4697 Air freight, trade shows, shipment consolidations, nationwide purchase order procurement service, and international shipping.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1969/1969 | 40/5

ALASKA AIR TRANSIT DANIEL OWEN, PRES./OWNER/OPERATOR

2301 Merrill Field Dr. Anchorage, AK 99501 FlyAAT.com Charters@FlyAAT.com 907-276-5422 Anchorage based air charters through Alaska, Canada, and the Lower 48. Fleet includes fast, pressurized, Pilatus PC-12/47 and PC-12 NG, as well as factory new Grand Caravan EX aircraft with increased power and advanced ice protection system.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1984/ 1984 | 23/23

ALASKA AIRLINES BRAD TILDEN, CHMN./CEO AK AIR GROUP

3600 Old International Airport Rd. Anchorage, AK 99502 alaskaair.com 907-266-7200 Alaska Airlines and regional carrier Horizon Air provide passenger and cargo service to 115 destinations in Alaska, Canada, Mexico, Hawaii, and the Lower 48.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1932/1932 | 23,000/1,800

48 | June 2020

ALASKA LOGISTICS ALLYN LONG, OWNER/GM

PO Box 604 Seward, AK 99664 alaska-logistics.com julie@alaska-logistics.com 206-767-2555 Scheduled barge service from Seattle to Western and Central Alaska. Provides services to receive customers’ freight, consolidate, manifest, and track from origin to the final destination. We also provide charters.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2003/2003 | 50/15

ALASKA MARINE HIGHWAY SYSTEM JOHN FALVEY, GM

7559 N. Tongass Hwy. Ketchikan, AK 99901 ferryalaska.com dot.amhs.customer@alaska.gov 800-642-0066 Provider of marine transportation for passengers and vehicles to more than thirty Alaska coastal communities. No pre-set itineraries. Amenities available include staterooms, dining, movie theaters, and viewing lounges.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1963/1963 | 800/800

ALASKA MARINE LINES KEVIN ANDERSON, PRES.

660 Western Dr. Anchorage, AK 99501 lynden.com/aml information@lynden.com 907-339-5150 Alaska Marine Lines is a marine transportation company providing barge service between Seattle, Alaska, and Hawaii.

We offer regularly scheduled service to Southeast Alaska, Central Alaska, and Hawaii, and seasonal service to Western Alaska.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1980/1980 | 234/18

ALASKA RAILROAD CORPORATION BILL O’LEARY, PRES./CEO

PO Box 107500 Anchorage, AK 99510 alaskarailroad.com 907-265-2300 Freight rail transportation, passenger rail transportation, and real estate land leasing and permitting. Year-round employees 590-610; Seasonal (summer) employees 125-135; Total employees 700+.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1914/1914 | 725/723

ALASKA TERMINALS TODD HALVERSON, OWNER/PRES.

400 W. 70th Ave., Ste. 3 Anchorage, AK 99518 akterminals.com 907-349-6657 As the Atlas Van Lines agent for Alaska, we perform local, interstate, and international moving services for corporate, government, and private clients.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1981/1981 | 100/60

ALASKA TRAFFIC CO. ANDREW SCHWAEGLER, GM/VP

PO Box 3837 Seattle, WA 98124 alaskatraffic.com 425-282-6610 Arrangement of transportation of all types of cargo, freighttransportation services, and logistics services. Scheduled LTL, TL, and consolidation services via steamship and barge.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1956/1956 | 18/3

ALASKA TRUCKING ASSOCIATION JOE MICHEL, EXEC. DIR. 3443 Minnesota Dr. Anchorage, AK 99503 aktrucks.org info@aktrucks.org 907-276-1149

The authoritative voice in Alaska trucking: provides regulatory guidance, a bridge between industry and DOT, and a voice defending trucking in the State Capitol. ATA provides DMV expedited title and registration services to its members as well.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1958/1958 | 4/4

ALASKA WEST EXPRESS ERIC BADGER, PRES.

1048 Whitney Rd. Anchorage, AK 99501 lynden.com/awe information@lynden.com 907-339-5100 Alaska West Express provides oversized and bulk truckload transportation throughout the United States and Canada, specializing in shipments to, from, and within Alaska.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1978 | 179/164

ALISON’S RELOCATIONS ALISON MCDANIEL, PRES.

310 E. First Ave. Anchorage, AK 99501 alisonsrelo.com alisonsrelo@gci.net 907-345-9934 Full-service household goods moving and storage services.

Providing customized moving packages: DIY to full-service for residential, commercial, industrial offices, national and corporate accounts via ocean and over the road to all cities and states.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1997/1997 | 30/30

ALL AMERICAN MARINE RON WILLE, BUS. DEV. MGR.

1010 Hilton Ave. Bellingham, WA 98225 allamericanmarine.com sales@allamericanmarine.com 360-647-7602 All American Marine builds custom high-quality passenger, workboat, and research vessels. We specialize in innovative aluminum monohulls and catamarans with static and dynamic hydrofoils, as well as hybrid-electric and fuel-cell powered vessels.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1990/1990 | 75/1

ALL SEASONS ARGO & EQUIPMENT DEBORAH BONTEMS, OWNER

1300 E. 80th Ave. Anchorage, AK 99518 allseasonsargo.com argoak@alaska.net 907-277-6188 Argo UTV and ATV retail sales dealership, to include Argo vehicles, parts, and accessories, plus full mechanic servicing.

Top ranking awarded Argo dealer since 1998.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1998/1998 | 5/5

AMERICAN RELOCATION SERVICES KRISTINA BLACKADAR, COMMERCIAL SALES MGR. 5491 Electron Dr., Unit 1 Anchorage, AK 99518 americanrelocationservices.com KristinaBlackadar@OdysseyLogistics.com 907-561-5166 Commercial/residential relocation, moving and storage, temperature-controlled facilities, ocean freight forwarding, complete packing and crating services, free detailed estimates, military approved, certified moving consultants, budget service options.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1988/1988 | 80/55

AMS COURIERS JAIME FINK, MNG. SHAREHOLDER

5001 Arctic Blvd., Unit 2 Anchorage, AK 99503 amscouriers.com info@amscouriers.com 907-278-2736 Specializes in route, on-demand, and same-day deliveries in Alaska. Provides transportation, warehousing, and logistics solutions for the medical, legal, telecommunications, and

Alaska Business www.akbizmag.com

haulout, ice.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1964/1964 | 10/10

1922/1973 | 4/4

ASHBREEZ BOATWORKS CHAD MORSE, OWNER/CO-FOUNDER

CITY OF HOMER PORT & HARBOR BRYAN HAWKINS, PORT DIR.

3705 Arctic Blvd., #106 Anchorage, AK 99503 ashbreezboatworks.com ashbreez@alaska.net 907-529-1907 Services include major boat repair, new aluminum boat construction, fiberglass repair, systems installation, electrical work, outboard repowers, repainting, and refinishing and bottom painting. See our website for full details.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

4311 Freight Dock Rd. Homer, AK 99603 cityofhomer.ak.gov 907-235-3160 Homer Port & Harbor has 24/7 harbor officers and includes a small boat harbor with more than 870 reserved stalls and 6,000+ linear transient moorage. Two ocean piers, a commercial barge ramp, steel and wood tidal grids, a 5-lane load and launch ramp.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2011/2011 | 2/2

1964/1964 | 18/18

BALD MOUNTAIN AIR GARY PORTER, VP

CITY OF WHITTIER HARBOR DAVID BORG, HARBORMASTER

3758 FAA Rd., Ste. B Homer, AK 99603 907-235-7969 Single and multi-engine; nineteen passenger, cargo, and fuel delivery; VFR and IFR capable; turbine fleet for reliability; off-airport and Arctic operations; flight safety trained crews; services on wheels, floats, and skis; aerial scientific platforms.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1993/1993 | 20/20

BERING MARINE CORPORATION RICK GRAY, PRES.

6520 Kulis Dr. Anchorage, AK 99502 lynden.com/bmc information@lynden.com 907-248-7646 Bering Marine Corporation provides highly specialized marine services to reach water-locked villages and other remote Alaska locations. Our fleet of shallow-draft equipment supports construction of docks, roads, and airstrips in Alaska communities.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1985/1985 | 70/69

BOWHEAD TRANSPORT COMPANY CHRISTOPHER PALLE

6700 Arctic Spur Rd. Anchorage, AK 99518 bowheadtransport.com christopher.palle@bowhead.com 541-905-5204 Bowhead Transport Company is a subsidiary of UIC. Providing vessel charter services and commercial cargo transport between Seattle and Alaska, performed with our specialized vessels capable of shallow water operation and beach landings.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 7/7

CANADIAN NATIONAL RAILWAY/CN AQUATRAIN ADAM COOK, DIR. SUPPLY CHAIN SALES

11717 - 138th St. Thornton Operations Building - 1st Fl. Surrey, BC V3R 6T5 adam.cook@cn.ca 604-340-6388 CN Aqua Train-Access to domestic and international markets through the CN Tri-Coastal Network: Key services offered: carload, intermodal, international freight forwarding, warehousing/distribution/trans loading, customs brokerage, trucking.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1919/- | 24,000/-

CARLILE TRANSPORTATION TERRY HOWARD, PRES.

1800 E. First Ave. Anchorage, AK 99501 carlile.biz customerservice@carlile.biz 907-276-7797 Transportation and logistics company offering multi-model trucking as well as project logistics services across Alaska and North America.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1980/1980 | 432/320

CITY OF CRAIG HANS HJORT, HARBORMASTER

PO Box #725 Craig, AK 99921 craigak.com harbors@craigak.com 907-826-3404 Moorage, water, electricity, grids, restroom/showers, boat

www.akbizmag.com

PO Box 639 Whittier, AK 99693 whittieralaska.gov/whittier-harbor 907-472-2327 The Whittier Harbor is your Gateway to Prince William Sound.

We are an ice-free port, open year round. There are 350 slips for both transient and permanent berth holders, to lengths of 54 feet. We operate a 30-ton travel lift with limited space on the hard.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1969/1969 | 9/9

COMMODITY FORWARDERS PJ CRANMER, REG. MGR. PNW

4000 W. 50th, Ste. 1 Anchorage, AK 99502 cfiperishables.com anc-customerservice@cfiperishables.com 907-243-1144 Transporting perishable products worldwide. Provides logistical services for perishable products worldwide by providing transportation, documentation, warehouse, and consulting services. Freezer storage in Anchorage.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2003/2003 | 450/15

COOK INLET TUG & BARGE JEFF JOHNSON, PRES.

4510 Old International Airport Rd., Ste. 101 Anchorage, AK 99502 cookinlettug.com info@cookinlettug.com 907-277-7611 Cook Inlet Tug & Barge is a marine transportation company specializing in harbor services and fuel distribution, with focus on the Port of Anchorage and Cook Inlet, Seward, Southeast Alaska, Aleutian Islands, and Western Alaska.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1924/1924 | 70/70

DEADHORSE AVIATION CENTER TIM CUDNEY, DIR.

301 Calista Ct. Anchorage, AK 99518 deadhorseaviation.com 907-685-1700 Fairweather’s Deadhorse Aviation Center is strategically designed to provide North Slope operators with a state-of-theart Fixed Base Operation (FBO), providing logistics, lodging, and support activities in the Arctic.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2012/2012 | 6/6

DESERT AIR TRANSPORT JOEY BENETKA, CEO

4001 Old International Airport Rd., Unit #9 Anchorage, AK 99502 desertairalaska.com sales@desertairalaska.com 907-243-4700 Desert Air Transport provides large haul cargo capacity (6,500 lbs) into more than 200 destinations with rural airstrips (2,800foot min.), direct from Anchorage International.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 10/10

DIAMOND AIRPORT PARKING SARAH HOUCK, GM 5401 Northwood Dr. Anchorage, AK 99502 parkatanc.com sarah.houck@diamondparking.com 907-677-7275 Airport parking and self-storage.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1922/1980 | 1,000/60

Alaska Business

EDISON CHOUEST OFFSHORE GARY CHOUEST, PRES./CEO

301 Calista Ct. Anchorage, AK 99518 chouest.com 907-562-2111 ECO is recognized as the most diverse and dynamic marine transportation solution provider in the world, with world-class shipbuilding and innovative subsea solutions. ECO is a global provider of logistics services, port facilities, and vessel support.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1960/2007 | 12,000/110

EGLI AIR HAUL SAM EGLI, PRES.

PO Box 169 King Salmon, AK 99613 egliair.com egliair@bristolbay.com 907-246-3554 Helicopter and airplane charter, aviation fuel sales, aircraft maintenance, and hangar space rental. Specialized ops: external load work, airborne thermal imaging, and powerline work such as Ins-A-Wash and live-line/bare-hand powerline maintenance.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1979/1982 | 6/6

ELLIOTT BAY DESIGN GROUP BRIAN KING, PRES. 7559 N. Tongass Hwy., Ste. 118A Ketchikan, AK 99901 ebdg.com info@ebdg.com 907-821-2559 Marine engineering and naval architecture.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1988/2013 | 55/1

EVERTS AIR ALASKA ROBERT EVERTS, PRES./CEO

PO Box 61680 Fairbanks, AK 99706 EvertsAir.com Info@EvertsAir.com 907-450-2723 Everts Air Alaska is proud to serve the villages of Interior Alaska.

Our Caravan and Pilatus aircraft provide scheduled and charter passenger flights, as well as freight and mail transport.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1978 | 9/7

EVERTS AIR CARGO ROBERT W. EVERTS, PRES./CEO

PO Box 61680 Fairbanks, AK 99706 EvertsAir.com shoshaw@EvertsAir.com 907-450-2300 Everts Air Cargo provides scheduled cargo service within Alaska (using DC-6, DC-9 and MD-80 aircraft) and on demand air charter services to domestic and international destinations (using MD-80 aircraft).

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1995/1995 | 339/326

EXPRESS DELIVERY SERVICE EDWARD HOFFMAN, PRES.

701 W. 41st Ave., Unit D Anchorage, AK 99503 e.hoffman@expressdeliveryak.com 907-562-7333 Air courier services, local, and Mat-Su Valley delivery services, special warehousing and storage. Specializing in serving the medical community. Open 24/7/365.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1977/1977 | 20/20

FAIRCHILD FREIGHT JASON FAIRCHILD, PRES.

401 E. 100th Ave., Building B200 Anchorage, AK 99515 fairchildfreight.com Sales@fairchildfreight.com 907-331-3251 Fairchild Freight specializes in the transportation of consumer food commodities such as fruits, vegetables, meat, fish, and beverage products throughout North America.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2005/2005 | 190/12

FEDEX EXPRESS DALE SHAW, MNG. DIR. 6050 Rockwell Ave.

June 2020 | 49

TRANSPORTATION DIRECTORY

financial industries. Open 24/7/365.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

TRANSPORTATION DIRECTORY

Anchorage, AK 99502 fedex.com 800-463-3339 Air cargo and express-package services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1973/1988 | 400,000/740

GRANT AVIATION ROBERT KELLEY, PRES./CEO

6420 Kulis Dr. Anchorage, AK 99502 flygrant.com wecare@flygrant.com 888-359-4726 An Alaska airline known for a strong track record of safety and commitment to customer service. Provides scheduled and charter passenger, mail, freight and air ambulance services in the YK Delta, Bristol Bay, the Aleutian chain, St. George, and Kenai.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1971/1971 | 200/200

GUARDIAN FLIGHT JARED SHERMAN, VP OPS NORTHWEST

3474 Old International Airport Rd. Anchorage, AK 99502 amcnrep.com/riley-little riley.little@guardianflight.com 907-245-6230 Guardian Flight is the state’s largest air medical provider with more aircraft in more places than all other organizations in the state combined. Guardian Flight is part of the AirMedCare Network, a national alliance of air ambulance providers.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 1,000/175

ISLAND AIR EXPRESS SCOTT VAN VALIN, DIR. OPS/PRES.

PO Box 1174 Craig, AK 99921 IslandAirX.com info@islandairx.com 888-387-8989 Island Air Express operates Cessna 208 and Pilatus PC-12 aircraft throughout Southeast Alaska–providing the only scheduled IFR service between Craig/Klawock and Ketchikan, delivering the most reliable, on-time service available.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2008/2008 | 32/30

ISLAND AIR SERVICE ADAM LUTZ, PRES./CEO

1420 Airport Way Kodiak, AK 99615 flyadq.com info@flyadq.com 907-487-4596 Island Air Service is the premier commuter airline in Kodiak. We carry passengers, freight, US Mail, UPS shipments, and offer charter flights. We also specialize in bear viewing tours both in Kodiak and along the Katmai coast.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1984/1984 | 48/48

KENAI AVIATION OPERATIONS JOEL CALDWELL, DIR. OPS

101 North Willow St. Kenai, AK 99611 kenaiaviation.com contact@kenaiaviation.com 907-283-4124 Air taxi, charter, aircraft maintenance. Flight seeing and flight school.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1961/1961 | 10/10

LIFEMED ALASKA RUSS EDWARDS, CEO

PO Box 190026 Anchorage, AK 99519 lifemedalaska.com info@lifemedalaska.com 907-563-6633 Statewide air ambulance services with bases in Anchorage, Bethel, Fairbanks, Juneau, Palmer, Soldotna, Dutch Harbor, and Kodiak. Anchorage-based ALS ground ambulance services.

CAMTS accredited.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2008/2008 | 135/135

LYNDEN AIR CARGO RICK ZERKEL, PRES.

6441 S. Airpark Pl. Anchorage, AK 99502 lynden.com/lac information@lynden.com

50 | June 2020

907-243-7248 Lynden Air Cargo provides scheduled year-round service from Anchorage to Bethel, Nome, Kotzebue, and St. Mary’s and flag stop service to any Alaska community with a runway. We also offer worldwide charter services with our fleet of Hercules aircraft.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1996/1996 | 211/211

LYNDEN INTERNATIONAL JOHN KALOPER, PRES.

6441 S. Airpark Pl. Anchorage, AK 99502 lynden.com/lint information@lynden.com 907-243-6150 Domestic and international freight forwarding and customs services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1980/1980 | 224/55

LYNDEN LOGISTICS ALEX MCKALLOR, PRES.

6520 Kulis Dr. Anchorage, AK 99502 lynden.com/llog information@lynden.com 907-245-1544 Arrangement of freight transportation, information management, and logistical services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1984/1984 | 13/4

cargo airline. From groceries to medical supplies and lumber, customers across Alaska, including an array of industries such as oil, gas, mining and construction, depend on NAC. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1956/1956 | 356/298

NORTHSTAR TREKKING SHANNON HASTY, GM

1910 Renshaw Way Juneau, AK 99801 northstartrekking.com info@northstartrekking.com 907-790-4530 NorthStar Trekking is committed to providing outdoor adventures that are tailored to the interests and abilities of each guest, with safety as our foremost priority. NorthStar offers glacier trekking, dog sledding, and airboating.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1998/1998 | 100/100

OCEAN MARINE SERVICES KELLY MCNEIL, PRES.

PO Box 7070 Nikiski, AK 99635 omsi-ak.com 907-776-3685 A marine transportation and logistical support company with offshore supply vessels, research vessels, and a landing craft.

Area of operation is from the Beaufort Sea to the Gulf of Mexico.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 60/50

LYNDEN OILFIELD SERVICES ERIC BADGER, PRES.

1048 Whitney Rd. Anchorage, AK 99501 lynden.com/loil information@lynden.com 907-339-5100 Lynden Oilfield Services, a division of Alaska West Express, provides support for exploration, production, and service companies on the North Slope working to develop Alaska’s oil and gas resources.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2015/2015 | 30/30

ODYSSEY LOGISTICS KEITH HANCOCK, PRES. MULTI-MODAL GLOBAL SOLUTIONS

5025 Van Buren St. Anchorage, AK 99517 odysseylogistics.com Sales@odysseylogistics.com 907-248-5548 Ocean freight forwarding, freight consolidation of all kinds, LTL/LCL, full loads and single shipments, temperature protected, dry vans, specialized equipment, heavy haul, project logistics, intrastate trucking, warehousing, and distribution.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

LYNDEN TRANSPORT PAUL GRIMALDI, PRES.

3027 Rampart Dr. Anchorage, AK 99501 lynden.com/ltia information@lynden.com 907-276-4800 Lynden Transport has been the trusted leader for shipping freight to, from, and within Alaska since 1954.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1954/1954 | 251/125

MARITIME HELICOPTERS ROBERT FELL, DIR. OPS

3520 FAA Rd. Homer, AK 99603 maritimehelicopters.com info@maritimehelicopters.com 907-235-7771 We support oil, construction, and marine trades. Our fleet includes a Viking 400 Twin Otter, Bell 206L, 407 and twinengine 412HP and BO105 Eurocopters. Our 86-foothelipad equipped vessel supports remote marine operations. Bases throughout all of Alaska.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1973/1973 | 75/75

1984/1988 | 2,500/400

OFFSHORE SYSTEMS - KENAI KELLY MCNEIL, PRES.

PO Box 8505 Nikiski, AK 99635 osk-ak.com 907-776-5551 A full-service marine terminal facility supporting Cook Inlet oil and gas operators. Providing shore-side services for OSVs, landing crafts, tug and barge operators, dive support vessels and others. Nikiski Fuel provides bulk diesel fuel.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1983/1983 | 30/20

OLYMPIC TUG AND BARGE - A CENTERLINE LOGISTICS COMPANY MATHEW GODDEN, PRES./CEO

910 SW Spokane St. Seattle, WA 98134 centerlinelogistics.com chartering@centerlinelogistics.com 206-628-0051 Olympic Tug & Barge is a subsidiary company of Centerline Logistics, and provides petroleum transportation, rescue and general towing, and energy support services. Y ear Founded/Est. in Alaska | Worldwide/Alaska Employees:

MATSON BAL DREYFUS, SVP AK

1717 Tidewater Rd. Anchorage, AK 99501 Matson.com 907-274-2671 Containership cargo transportation service between Tacoma, WA, and Anchorage, Kodiak, and Dutch Harbor. Delivery services to the Alaska Railbelt. Connecting carrier service to other water, air, and land carriers. Freight consolidation services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1882/1964 | 2,000/500

NORTHERN AIR CARGO BETSY SEATON, PRES./CEO

4510 Old International Airport Rd. Anchorage, AK 99502 nac.aero 907-249-5163 Anchorage-based Northern Air Cargo is Alaska’s largest all-

1987/1987 | 700/50

PATHFINDER AVIATION ROGAN PARKER, CEO

1936 Merrill Field Dr. Anchorage, AK 99501 pathfinderaviation.com info@pathfinderaviation.com 907-257-1550 Pathfinder Aviation supports petroleum, utility, survey, and various other industries utilizing twin-engine Bell 212/412s, an EC135 and single engine AS350 B2 and B3, Bell 206 series helicopters with OAS-approved pilots and aircraft.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2001/2001 | 64/64

PETRO MARINE SERVICES KURT LINDSEY, PRES./CEO 1813 E. First Ave. Anchorage, AK 99501 petromarineservices.com info@petro49.com

Alaska Business www.akbizmag.com

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1956/1956 | 250/250

PILOT FREIGHT SERVICES PATRICK ALLEN, CEO

6200 Boeing Ave., Suite 350 Anchorage, AK 99502 transmarkdelivers.com/anchorage-ak ANC@pilotdelivers.com 907-406-0005 As the Pilot exclusive agent for Alaska, we are a full-service global transportation and logistics company with more than 75 locations throughout North America, western European operations, and administration offices in the Netherlands and Spain.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1990/2017 | 150/5

western Alaska by providing infrastructure for handling fuel, gravel, sand and rock, general freight, and seafood. The Port of Nome provides moorage for fishing, cruise, research, government, and more.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1985/1985 | 7/7

PORT OF SKAGWAY MATTHEW O’BOYLE, HARBORMASTER

PO Box 415 Skagway, AK 99840 907-983-2628 The Skagway Small Boat Harbor is a full service marina with moorage for pleasure and commercial vessels up to 140 feet.

Transient moorage is on a space available, first come, first served basis. There is a waiting list for annual moorage.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1898/1898 | 3/3

POWER AND TRANSMISSION DANIEL GORROD, PRES. 711 Van Horn Rd.

Fairbanks, AK 99701 powerandtransmission.com 907-456-2230 We sell bearings, seals, filters, air valves, compressors, brakes, exhaust, suspension, lights, fittings, wheel studs, and nuts for semi-trucks and trailers. We make hydraulic control cables. We sell cargo tie down chains and straps, tire chains.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1972/1972 | 7/7

REEVE AIR ALASKA MICHAEL REEVE, OWNER/MGR.

7511 Labrador Cir. Anchorage, AK 99502 reeveairalaska.com mreeve@reevecorp.com 907-250-4766 Reeve Air specializes in chartered air service to more than forty Alaska communities.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2006/2006 | 1/1

PORT MACKENZIE THERESE DOLAN, PORT OPS MGR.

350 E. Dahlia Ave. Palmer, AK 99645 matsugov.us/Port therese.dolan@matsugov.us 907-861-7799 Port MacKenzie is a premiere deep-water port capable of efficiently transporting bulk commodities and project cargoes in and out of Southcentral Alaska. We have 14 square miles of uplands available in the Port District for storage and manufacturing.

Believe in Alaska and Win For Life!

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2002/2002 | 2/2

PORT OF ALASKA STEVE RIBUFFO, PORT DIR.

2000 Anchorage Port Rd. Anchorage, AK 99501 PortOfAlaska.com PortOfAlaska@muni.org 907-343-6200 Port of Alaska in Anchorage handles half of all AK-inbound freight; half of which is delivered to final destinations outside of Anchorage. It benefits all Alaskans; DoD missions across the state, the Pacific Rim, and the Arctic; and natural disaster response.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

961/1961 | 21/21

PORT OF BELLINGHAM ROB FIX, EXEC. DIR.

PO Box 1677 Bellingham, WA 98227 portofbellingham.com 360-676-2500 We are the southern terminus for the Alaska Marine Highway System at the Bellingham Cruise Terminal.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

For nearly three decades, First National Bank Alaska has demonstrated their enduring belief in Alaska as ASAA’s valued partner and Title Sponsor.

The lives of nearly 300,000 student-athletes and activity participants have been enriched and energized thanks to First National’s vital support and the enthusiasm of hundreds of employee volunteers at ASAA’s major events.

1920/1988 | 120/0

PORT OF DILLINGHAM JEAN BARRETT, PORT DIR.

PO Box 889 Dillingham, AK 99576 dillinghamak.us harbor@dillinghamak.us 907-842-1069 Freight dock which ships and receives all freight for the Nushagak drainage. Dillingham small boat harbor is home port for up to 500 Bristol Bay drift boats. Offers docking, potable water, public restrooms, and showers.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1961/1961 | 6/6

PORT OF KING COVE CHARLES MACK, HARBORMASTER

Sportsmanship. Teamwork. Commitment. Loyalty. Respect.

These are just a few of life lessons and values that help our youth grow, succeed, and win for life!

Thank you, First National Bank Alaska.

We believe in you!

PO Box 37 King Cove, AK 99612 907-497-2237 Ports and harbors.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1970/1970 | 5/5

PORT OF NOME LUCAS STOTTS, HARBORMASTER

To join our team contact ASAA at 907-563-3723, or email: contactus@asaa.org

PO Box 281 Nome, AK 99762 nomealaska.org 907-443-6619 The Port of Nome serves as the regional shipping hub in

www.akbizmag.com

Alaska Business

June 2020 | 51

TRANSPORTATION DIRECTORY

907-562-5000 Serving the unique petroleum needs of a broad range of Alaska industries including fishing, home fuel sales, power generation, tourism, timber, transportation, construction, mining, and retail gasoline.

TRANSPORTATION DIRECTORY

RESOLVE MARINE SERVICES ALASKA TODD DUKE, MGR. AK OPS

6231 Airpark Pl. Anchorage, AK 99502 resolvemarine.com tduke@resolvemarine.com 907-243-0069 Marine salvage, emergency towing and vessel repair, commercial diving, oil spill response, and charter aviation for passengers and cargo.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1980/2013 | 500/50

ROSS AVIATION LAURA CHARON, GM

6160 Carl Brady Dr. Anchorage, AK 99502 907-550-8500 We’re Alaska’s 24 hour, full service FBO with fuel, aircraft support, crew resting facilities, and business services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2016/2016 | 35/35

RYAN AIR LEE RYAN, PRES.

6400 Carl Brady Dr. Anchorage, AK 99502 ryanalaska.com ben@ryanalaska.com 907-562-2227 From Platinum to Kobuk, from Gambell to Mt. Village, we know the challenges of transportation in Alaska. Ryan Air operates 20 aircraft out of seven hubs across Alaska to serve more than 70 villages.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1953/1953 | 130/130

SEA WIDE EXPRESS PHIL HINKLE, GM

11100 Calaska Cir. Anchorage, AK 99518 seawideexpress.com quotes@seawideexpress.com 844-732-9433 LTL, TL, volume, oversized, expedited transportation services in North America—to/from the domestic ocean markets. Alaska, Hawaii, Puerto Rico, Guam.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2015/2016 | 450/20

SEATAC MARINE WALTER SEAY, PRES.

6701 Fox Ave. S. Seattle, WA 98108 seatacmarine.com eric@seatacmarine.com 206-767-6000 Marine transportation, marine terminal bulk logistics, cargo operations, and barge transportation.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 15/1

SECURITY AVIATION STEPHEN “JOE” KAPPER, PRES.

6121 S. Airpark Pl. Anchorage, AK 99502 securityaviation.biz sales@securityaviation.biz 907-248-2677 24/7 on-demand air charter. Approved carrier for the US Corps of Engineers, state, and federal agencies. Executive travel, crew changes, HAZMAT, “HOT” cargo, and medical transports.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1985/1985 | 25/25

SEWARD BOAT HARBOR NORM REGIS, HARBORMASTER

PO Box 167 Seward, AK 99664 cityofseward.us harbormaster@cityofseward.net 907-224-3138 Ext 2 We are a full service port with 50-ton and 330-ton Travelifts, a 5,000-ton syncrolift, boat repair yards, potable water and power utilities, hardware stores, grocery stores, art galleries, restaurants, hotels, and many other amenities to meet every need.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1964/1964 | 12/12

SOURDOUGH EXPRESS JEFF GREGORY, PRES./CEO

600 Driveways St. Fairbanks, AK 99701 Sourdoughexpress.com jgregory@sourdoughexpress.com

52 | June 2020

907-452-1181 Freight-transportation services, logistics, moving, and storage services. Steel Conex container sales/lease.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1898/1902 | 160/160

SPAN ALASKA TRANSPORTATION TOM SOUPLY, PRES.

6128 Electron Dr. Anchorage, AK 99518 spanalaska.com billm@spanalaska.com 253-395-7726 Freight transportation services to and from Alaska, less-thantruckload and truckload. Steamship and barge service to Railbelt area of Alaska. Barge service to Juneau and Southeast Alaska. Overnight service from Anchorage to Fairbanks and the Kenai Peninsula.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1978 | 210/130

TED STEVENS ANCHORAGE INTERNATIONAL AIRPORT JIM SZCZESNIAK, AIRPORT MGR.

PO Box 196960 Anchorage, AK 99519 dot.state.ak.us/anc dot.aia.ancinfo@alaska.gov 907-266-2526 World class cargo airport, largest passenger airport in Alaska, and the world’s busiest float-plane base.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1951/1951 | 377/377

TGI FREIGHT TODD CLARK, PRES.

4001 Old International Airport Rd., Unit 7 Anchorage, AK 99502 tgifreight.com toddc@tgifreight.com 907-522-3088 Local freight cartage, freight consolidation, logistics, warehousing, and hazardous material services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1989/1989 | 7/7

THE NORTHWEST SEAPORT ALLIANCE JOHN WOLFE, CEO

PO Box 2985 Tacoma, WA 98401 nwseaportalliance.com info@nwseaportalliance.com 800-657-9808 The Northwest Seaport Alliance (NWSA) is a marine cargo operating partnership of the ports of Seattle and Tacoma. We are a critical link for trade between Alaska and the Lower 48 states; more than 80% of commerce crosses our docks.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2015/- | 50/-

TOTE MARITIME ALASKA GRACE GREENE, PRES. TOTE MARITIME AK

2511 Tidewater Rd. Anchorage, AK 99501 totemaritime.com quote@totemaritime.com 800-426-0074 TOTE Maritime Alaska’s Roll-on/Roll-off (Ro/Ro) cargo ship operation provides fast, on-time service between the Port of Tacoma, Washington, and the Port of Alaska.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1975/1975 | 150/35

TRANSGROUP GLOBAL LOGISTICS RICH WILSON, STATION MGR.

5631 Silverado Way, #G-101 Anchorage, AK 99518 transgroup.com richw.anc@transgroup.com 907-243-4345 US-owned full-service freight forwarder and global logistics provider. We provide transportation international and domestic lanes, warehousing, and specialized logistics solutions.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1987/2011 | 3,300/4

TRANSMARK CARTAGE SERVICES KEN MACCABEE, OPS SUPERVISOR

6200 Boeing Ave., Suite 350 Anchorage, AK 99502 tcsdelivers.com ANC@tcsdelivers.com 907-351-2328 TCS is your full service cartage company offering an array of services: white glove service, cargo screening, 53’, 24’, flatbed,

and vans, TSA/STA compliant, cold chain services, military deliveries.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1990/2017 | 150/4

UNITED FREIGHT & TRANSPORT FRANK S. MONFREY, GM 1701 E. First Ave. Anchorage, AK 99501 907-272-5700 Freight-transportation services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1985/1985 | 45/45

UNITED STATES POSTAL SERVICE RON HABERMAN, DISTRICT MGR.

3720 Barrow St. Anchorage, AK 99599 usps.com 800-ASK-USPS Mailing and delivery of letters, magazines, and parcels weighing up to seventy pounds.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1775/1915 | 635,000/1,500

VIGOR ALASKA BERGAN WIELER, GM

3801 Tongass Ave. Ketchikan, AK 99901 vigor.net marinesales@vigor.net 907-228-5302 Vigor is a values-driven, diversified industrial business. We repair ships and build projects in support of energy generation, our nation’s infrastructure, national defense, and the maritime industry.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1994/1994 | 2,300/150

WARD AIR ED KIESEL, PRES.

8991 Yandukin Dr. Juneau, AK 99801 WardAir.com Reservations@WardAir.com 907-789-9150 Air transportation nonscheduled.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1995/1995 | 22/22

WASTE MANAGEMENT NATIONAL SERVICES MIKE HOLZSCHUH, SR. TERRITORY MGR.

1519 Ship Ave. Anchorage, AK 99501 wm.com mholzschuh@wm.com 907-274-0477 Hazardous and nonhazardous waste disposal, project management, complete logistical oversight, complete US and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation, and turnkey remedial services.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1971/ 1971 | 43,000/5

WESTERN TOWBOAT CO. BOB SHREWSBURY II, PRES.

326 Mitkof Hwy. Petersburg, AK 99833 westerntowboat.com wtb@westerntowboat.com 206-789-9000 Tug and barge operator based in Seattle serving all of Alaska and the Pacific coast with twenty-three tugs and six barges.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1948/1958 | 185/6

WRANGELL MARINE SERVICE CENTER GREG MEISSNER, HARBOR DIR.

Box 531 Wrangell, AK 99929 wrangellmarineindustry.com harbor@wrangell.com 907-874-3736 Wrangell Marine Service Center is a full-service boat yard and storage area. It is comprised of haul out dock and washdown area, three lifts (300- and 150-ton lifts and 40-ton trailer), boat storage areas, self-work areas, and contractor facilities.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2005/2005 | 8/8

Alaska Business www.akbizmag.com

Tamara Grasse POSITION: Senior Account Executive LOCATION: Anchorage, Alaska DATE HIRED: December 29, 2003 NOTES: Known and trusted by customers for her ability to solve complex challenges. Long history of involvement with local charities. Devoted 19-year supporter of Covenant House Alaska and frequent patron of Covey CafĂŠ, its job training program.

Matson’s people are more than Alaska shipping experts. They are part of what makes our community unique. Visit Matson.com

OIL & GAS

Data Driven Decisions Better tech, more information are a boon to oil field exploration

By Julie Stricker

G

eologists knew more than a century ago there was oil on Alaska’s North Slope. A 1921 report to the US Geological Survey that discussed Alaska petroleum noted areas of the state had oil seeps that looked commercially promising, including “some indications of oil in the extreme northern part of Alaska, a region at present almost inaccessible.”

At that time, geologists relied on obvious signs of oil, such as seeps, to find potential oil fields. In the ‘20s, a method of using sound waves to define underground rock layers was developed.

Called 2D seismic surveys, they allowed geologists to see thin slices of the layers of rock underground. In the ‘80s, 3D surveys widened and sharpened that view. Today, 4D surveys are common.

Each advance resulted in more data points for a more accurate look at what was happening underground.

“It’s like you’re looking through your binoculars, but you don’t have them focused,” says Chris Nettels, president of GeoTek Alaska, who has worked in the oil industry for more than forty years. “You’re looking and you can see these blob shapes in general, but you can’t see what they are. And then all of a sudden, you start focusing and oh, that’s a bear!”

Over the years, geologists have been honing their focus. In the oil and gas industry, data is king. Nettels says a coworker once told him, “You’ve got to learn to drink from the firehose, Chris.

That data will always be available. Drink 54 | June 2020

from the firehose and take as much data as you can.”

Technology has been and remains a huge driver in gathering and processing data. During his career, Nettels has moved from floppy disks to thumb drives, from a room full of supercomputers to powerful laptops.

“You start to see things better through better data acquisition processing,” Nettels says. “Then you can do a better job interpreting because you’ve got better data sets. So it really comes down to visualization.

“No one today will drill wells without having seismic data, you'd just be a nut to do it,” he adds. “So that means today no one's going to do a wildcat exploratory well without having had shot seismic data first [to] know where to put that location for your best opportunity at finding oil.”

What Are They Looking For? Imagine the North Slope is a layer cake, with oil-bearing layers sandwiched between layers of impervious rock, he says. Each layer has a different density, which affects the speed of a seismic wave. But the Slope is also riddled with lots of minor faults, like cracks in the cake layers, which can separate the oil reservoirs.

“It can end up making that layer not homogenous or continuous in that cake,” Nettels says. “If you put a well between faults, you’ll only get that area of that layer within those faults

because it’s not draining across. Those can cause headaches for people drilling wells up in the Prudhoe Bay area, so they attempt to try to look at really fine detail.”

It’s not a static measurement.

Nettels says he’s been working with companies that are doing 4D modeling, which, along with the X, Y, and Z in 3D seismic surveys, includes a fourth dimension: time.

That consists of installing a grid of sensitive tiltmeters in an area in which a company is fracking—injecting liquids at high pressure to improve the flow of oil.

“When you start injecting stuff in the ground, you really don’t know where it’s going to go,” he says. “You don’t really have any control. So what they try to do is understand what’s happening to the frack by putting these tiltmeters out to see how much of the subsurface has been influenced away from the wellbore.”

The subsurface isn’t the only area of concern. Quantum Spatial specializes in taking exact pictures of the surface of oil fields and potential oil fields, according to Adam McCullough, Alaska program manager.

“Our office specifically has been around in Anchorage since the early ’60s,” he says. “We flew the first exploration aerial imagery up on the North Slope in 1968 right after the Prudhoe Bay exploration discovery.”

At the time, Quantum Spatial used analog film cameras to photograph areas of interest. The company

Alaska Business www.akbizmag.com

Geologic Materials Center

moved to digital photography in the ‘90s. Today, Quantum Spatial uses LIDAR, which stands for light detection and ranging.

“It’s a remote sensing technology that uses infrared light to take precise measurements of the Earth’s natural and built features,” McCullough says.

“A lot of the data that we capture goes into the general engineering planning to support the oil development.”

That includes information on the best places to put an ice or gravel road or drill pads and facilities.

“It’s also used for permitting, so they can understand the environmental impacts,” he says. “How many lakes are we going to impact? What’s the acreage for potential impact and how do you permit for all that?”

Quantum Spatial also offers bathymetric LIDAR, which uses a green wavelength laser instead of infrared.

The green wavelength is capable of penetrating and mapping the depths of lakes, streams, and oceans, McCullough says. Once the information is gathered and verified by a ground surveyor who gathers control data, all of the information is taken to the office for post-production, “where we mosaic all of these things into products like aerial imagery, orthomosaics, and topographic maps, contours, digital elevation models,” he says.

Processing all of the data gathered both aboveground and underground takes some beefy computational capabilities. Improvement in the ability to process data is one of the main reasons imaging is so much more accurate today, Nettels says. It’s also made gathering data easier, too.

Instead of changing film on a camera inside a black bag during a flight, digital photography is limited only by the data storage device it’s linked to. And data storage has improved significantly since the days of the floppy disk.

But even old photos have data value.

Quantum Spatial has taken aerial photos on the North Slope and along the Trans Alaska Pipeline System

www.akbizmag.com

• Sales • Ser vice • Par ts

Before

Transportation Tank & Trailer SERVICE CENTER

907-451-8265 (TANK) 800-692-5844 3050 Van Horn ~ Fairbanks, AK

After

Service – Contact Timothy Hanson Parts – Contact Tara Hogan • National Board “R” Stamp & DOT Inspections & Certifications • Leak Repairs, Rebarrels & Tank Change Outs • Bottom Loading, Vapor Recovery Conversions, Pumping Systems • Large Parts Inventory

PROJECT MANAGEMENT • PROCUREMENT • FABRICATION CONSTRUCTION •MAINTENANCE • COMMISSIONING

C O N S T R U C T O R S

Investing in Alaska’s Future

351 East 104th Ave, Anchorage, Alaska (907) 771-5800 DELTA CON STRUCTORS.NET Alaska Business

June 2020 | 55

“[LIDAR is] a remote sensing technology that uses infrared light to take precise measurements of the Earth’s natural and built features… A lot of the data that we capture goes into the general engineering planning to support the oil development.”

Adam McCullough, Alaska Program Manager, Quantum Spatial

nearly every year since the ‘60s, McCullough says.

“We still have the film and companies want access to it because they want to know what things have changed in the environment or if there’s an environmental concern like a contaminated site from years ago,” he says. “They want to know what was staged in that area, who was working there, that sort of thing. So it’s a really interesting way to kind of peer back in time and get a picture, a history of

56 | June 2020

what was going on on the ground back in the early days.”

Who Has the Data?

In general, the oil companies maintain their own proprietary databases, but they are required to submit certain data to the state. According to David LePain, a petroleum geologist with the Alaska Division of Geological & Geophysical Surveys (DGGS), data from exploration wells and producing oil and gas fields are submitted by petroleum companies

to the Alaska Oil and Gas Conservation Commission (AOGCC), including daily drilling reports, production data, wireline logs, and representative samples such as cuttings and core chips from wells drilled on state land.

The AOGCC archives the data and makes some of it available to the public.

Cuttings and core chips are sent to the Alaska Geological Materials Center (GMC), where they are archived and available to the public for study. The GMC is part of the DGGS. Work carried out by the DGGS Energy Resources section is largely "upstream" from oil and gas production, according to LePain. DGGS provides the geological framework that helps the petroleum industry explore for oil and gas. The division is mandated by state statute (AS 41.08.020) to determine the potential of Alaska land for production of metals, minerals, fuels, and geothermal resources.

The Energy Resources section studies the petroleum potential of sedimentary basins throughout the state, but has a strong focus on basins whose known geology suggest the

Alaska Business www.akbizmag.com

presence of functioning petroleum systems, he says.

“As such we focus most of our efforts in frontier areas of the North Slope and Cook Inlet basins, but we also have ongoing applied petroleum research programs in several Interior basins, most notably the Susitna and Nenana basins,” LePain says.

“Our work is heavily field-oriented (outcrop) and carried out through helicopter-supported summer field campaigns. The data that we collect are summarized and released to industry and the public in bedrock geological maps, technical reports, and presentations. Our reports and some of our presentations are available for free download from the DGGS website (dggs.alaska.gov).

When and where possible, we tie our field outcrop data sets to the subsurface by studying exploration cores, cuttings, and wireline log data. We work closely with the Alaska Division of Oil and Gas to integrate our outcrop observations with reservoir quality and seismic data sets.”

LePain notes that the Alaska Division

of Oil and Gas does not prospect but uses federal assessments to determine “undiscovered” potential.

The Energy Resources section collaborates extensively with the US Geological Survey (USGS). The USGS is tasked with assessing the undiscovered, but technically recoverable, oil and gas resources in sedimentary basins throughout Alaska.

DGGS staff routinely contribute data to the geological models that underpin these resource assessments, LePain says. USGS resource assessments are typically released to the public as digital information circulars available free from its website.

The websites for the various state divisions under the Alaska Department of Natural Resources and Department of Commerce are a motherlode of information. The public can even visit the GMC, which houses the actual cores and rock samples from around the state.

Over the past several years thousands of rock samples and cuttings have been examined by geologists from industry, government, and academia. Sediment

samples and palynology (study of pollen and other spores) slides were used by several companies to study how sediment layers relate to the location of oil and gas reservoirs.

According to an information sheet from the GMC, its rock collections “have played an important role in recent North Slope oil discoveries and development and will be critically important as future work continues.”

Over the years, most data-gathering methods haven't changed so much as they've just gotten better and improved, Nettels says.

“There's a lot of improvements in terms of acquisition,” he says. “When you go out and run a seismic survey for the first time, you go out and get the best data you can, but you find out that, well, if I'd done this or if I'd done that, I would get better data.

“There are still limitations to all this data. There are still unknowns,” Nettels says. “And the only way to check that out is to put a hole in the ground. And sometimes that can be expensive if it doesn't turn out the way you think it does.”

What’s Your Position?

By Janis Plume Senior Account Manager

I

t’s important to take a stand in life, to be steadfast in who you are. The same can be said for your business—and how you position it in the marketplace.

In a marketing sense, positioning is how your business, products, and services are perceived to be different from those of your competitors.

Here are three steps that will allow you to establish a strong marketing position:

1. Develop a Positioning Strategy— Analyze the characteristics of your business and those of your competitors. Be honest about your strengths and weaknesses as you determine how your business stacks up. Research your competitors to determine what they’re doing and identify how you do it better. What does your business offer that’s unique? How do you excel and what expertise do you have over your competition? How do you want your clients to think about and view your business? Formalize this strategy in writing and discuss it with your staff to make sure everyone is on the same page.

2. Write a Positioning Statement— After a long, hard look at your strategy (or several looks), distill it down to a concise statement that sums up your marketing position in a sentence. This should serve as a backbone for all your marketing communications.

3. Spread The Word— State your position consistently and frequently across your advertising and marketing. Regularly remind your customers how you stand out from your competitors.

Using your positioning statement in your ad materials can be as simple as a declarative headline or tagline. The key to ensuring your customers know your position is to frequently and consistently use your positioning statement in your marketing communications.

Janis Plume 907-257-2917 janis@akbizmag.com

Christine Merki 907-257-2911 cmerki@akbizmag.com

Charles Bell 907-257-2909 cbell@akbizmag.com

– SPO N S O R E D C O N T E N T–

www.akbizmag.com

Alaska Business

June 2020 | 57

MINING

Mining Economies A few jobs go a long way

mbaysan | iStock

By Isaac Stone Simonelli

58 | June 2020

Alaska Business www.akbizmag.com

T

he mining industry plays an important role in the economy of more than seventy communities throughout the state. Whether the mines produce zinc, lead, coal, gravel, silver, or gold, the direct and indirect financial impacts on the surrounding area are significant, according to a McDowell Group report commissioned by the Alaska Mining Association.

“The most important impacts are related first to the jobs and the wages that a mine creates,” McDowell Group Senior Vice President Jim Calvin says.

“Mines are fairly labor intensive; they will typically employ several hundred workers. And mines are also often among the largest employers in terms of headcount and total payroll over the course of a year.”

Alaska mines created $740 million in direct and indirect payroll in 2019, according to the report.

“Mining jobs are one of the more lucrative jobs in the state. It is basically second to only oil and gas,” says Sara Teel, a state economist focused on labor and workforce development. “They pay very well.

There’s just not as many of them.

The mining industry doesn’t have the same amount of jobs when compared to oil and gas or bigger industries like retail or tourism.”

Coming in at $112,800, the estimated average annual wage for those working in the mining industry is more than twice the state average of all other sectors of the economy.

“They are paid very well, and there's a number of reasons for it. I mean you will definitely have to be in a situation where you can work the kind of schedule that you would have to work in the industry: the two weeks on/two weeks off, something like that with rotations. Plus, you're going to be going to remote locations. And there's some danger inherent with mining, of course,” Teel says.

Jobs Snapshot The entire industry provided only 4,600 direct jobs in 2019, according to the McDowell report. The majority of these jobs were associated with metal mining.

Though the employment numbers for the metal mining industr y remain low in comparison www.akbizmag.com

“Mining jobs are one of the more lucrative jobs in the state. It is basically second to only oil and gas.”

Sara Teel, State Economist

to employment overall, there has been a steady increase in the number of jobs created.

“From 2008 to 2017, metal mining employment grew 36 percent and its wages rose 44 percent. This was in stark contrast to Alaska’s total employment, which grew just 2 percent while total wages rose 5 percent,” according to Teel’s report Metal Mining in Alaska: Small, high-value industry with a long history here is growing.

Despite this significant increase, metal mining only comprised 0.8 percent of Alaska jobs by 2017.

Employment in gold mining saw the most growth (45 percent) from 2008 to 2017 with the biggest bump coming between 2009 and 2012, according to Teel’s report. Other

metal mining jobs rose more steadily at a rate of 24 percent.

Alaska ranked fifth out of ninetyone global regions for mineral potential in 2017 and tenth for overall investment attractiveness by mining and exploration companies, according to the Fraser Institute’s Annual Survey of Mining Companies.

“The Department of Labor and Workforce Development projects metal mining employment will grow 18.4 percent from 2016 to 2026,” Teel’s report states.

Teel says that 62 percent of metal mining jobs were filled by Alaskans.

However, for specialized support jobs such as drilling and boring of machine tool headers, only 39 percent of employees are residents.

W E ’ R E P RO D U C I N G F O R J U N E AU Mining really matters to communities like Juneau, where Hecla Greens Creek is the #1 private employer, #1 highest wage payer and #1 property taxpayer.

We’re working hard for Juneau…and Alaska.

heclagreenscreek.com

Alaska Business

June 2020 | 59

“For example, Greens Creek employs 400 workers; however, the total employment footprint of the operation will be 800 workers or more—and that holds true statewide… A multiplier of two is relatively high because of the high wages paid in the industry, because of high property tax payments, and also the extensive purchases of goods and services in the region or elsewhere in Alaska.”

Jim Calvin, Senior Vice President McDowell Group

The majority of Alaskans working in the metal mining industry are men, with women accounting for 12 percent of the workforce, Teel reports. More than half (57 percent) of these Alaskans are 40 years old or younger.

“These demographics are common in the mining industry overall due to remote job sites, extreme conditions, and atypical work schedules,” according to Teel’s report.

Indirect (and Positive) Effects Another significant impact the mining industry has on a community and 60 | June 2020

region are indirect and induced effects from the mine and its employees purchasing goods and services within the community. These are known as multiplier effects, Calvin explains.

“McDowell Group conducts numerous studies where we take a deep dive into understanding multiplier effects,” Calvin says. “We gauge those effects by looking at how much money mining companies spend in the region in support of their operations, which could include buying electricity, fuel, professional services, or any number of other goods and services that create jobs via the multiplier effect. The same impact occurs when mining company employees spend their wages in the community.

These additional jobs and income are termed the multiplier effect.”

The mining industr y has a multiplier effect of about two in Alaska, which means for ever y job at a mine, there’s another job in the regional economy that exists because of the mining operation.

“For example, Greens Creek employs 400 workers; however, the total employment footprint of the operation will be 800 workers or more—and that holds true statewide,” Calvin says.

“A multiplier of two is relatively high because of the high wages paid in the industry, because of high property tax payments, and also the extensive purchases of goods and services in the region or elsewhere in Alaska.”

A typical multiplier effect in Alaska is about 1.5, Calvin says. The mining industry multiplier is second to only the oil and gas industry.

“The oil and gas industry has the largest multipliers in Alaska because of substantial subcontracting with professional services companies, construction companies, and transportation providers. And they also pay very high wages and generate a tremendous amount of taxes and royalties for state and local government,” Calvin says.

Despite a long timeline for mines to begin production, the multiplier effect begins to affect a community as soon as the mining company starts spending money in the region.

“For example, the Donlin [Gold] project has been in the exploration,

pre-development, and permitting phases for many years and through that process created jobs for local people and spent money in Alaska on a wide range of services and materials,” Calvin says. “As a result, significant multiplier effects are generated. When the mine is developed and goes into production, the total economic footprint will be much, much greater than it is during the pre-development phase. But nevertheless, there are still important multiplier effects right from day one, right when they first start spending money in Alaska.”

Beyond the direct employment and wages generated, as well as the multiplier effects within these communities, mines provide significant, stable revenue for local governments.

About $37 million was paid to local governments in 2019.

“One very important additional aspect is the tax payments that mines make. Mines are capital intensive operations, which means they have substantial investment in facilities and equipment. And, as a result, they can be among the largest property taxpayers in the community,” Calvin explains.

“For example, Greens Creek and Kensington are the top two property taxpayers in Juneau. In Fairbanks, Fort Knox mine has been the second-largest contributor of property taxes in the borough.”

Fort Knox paid $11 million in property tax in 2019 to the Fairbanks North Star Borough, according to the McDowell Group report. The City and Borough of Juneau received $1.8 million in property tax from Greens Creek and $1.3 million from Kensington.

“Though there’s not a property tax payment, the Red Dog mine is the single largest contributor by far to the Northwest Arctic Borough,” Calvin says.

The Red Dog mine paid nearly $15 million in lieu of taxes in addition to $8 million to the Village Improvement Fund.

Alaska mines also generate significant revenue for the state. McDowell Group estimates that the state earned $112 million in royalties, rents, fees, taxes, and other government-related revenues.

The majority of this revenue (some $57 million) was generated through mining license tax, rents, and royalties.

Alaska Business www.akbizmag.com

Donlin Gold is poised to be one of the largest, highest-grade, and most prospective open-pit gold deposits in the world. We believe that it should be developed responsibly – through a safe and healthy workplace, stewardship of the environment, and the preservation of traditional cultures.

novagold.com

“The team at Tectonic has a proven track record in finding resources and working closely with First Nations in the North…

We are pleased to deepen the partnership with Tectonic and look forward to working with them for many years to come."

Aaron Schutt, President/CEO, Doyon

Doyon Invests Mining operations also provide significant sources of income for Alaska Native corporations. In 2019, the industry paid about $242 million to Alaska Native corporations. Some of this money came directly through lease agreements, which can have provisions included to directly help shareholders.

One lease provision in Doyon resource extraction contracts, including those for mining operations, is focused on supporting Doyon shareholder and descendant education.

“A lot of those dollars end up at the Doyon Foundation,” Doyon President and CEO Aaron Schutt says.

“One of the things that Doyon has embraced since its inception is education,” Schutt says, noting that Doyon has a natural resource scholarship for shareholders and descendants who want to get a degree in geology, biology, or another science related to natural resources.

Starting last year, Doyon used money from lease agreements with mineral exploration company Tectonic Metals to fund educational programs that supported the first Alaska Native 62 | June 2020

Science and Engineering Program Middle School Academy for the Interior hosted at UAA. “They’ve been doing Middle School Academies for years,’’ Schutt says. “But this is the first one we helped fund and got students from Alaska Gateway School District, which is where Tectonic’s activity is in the eastern Interior. And then we got a few kids out of Galena, as well.”

Tectonic Metals President and CEO Tony Reda says that their lease agreement with Doyon includes a provision for a $25,000 annual payment to be made toward education.

Tectonic Metals acquired two projects, Seventymile and Northway, from Doyon in the summer of 2018.

“As part of that acquisition, we structured a lease agreement that covers all aspects of exploration, development, production, and royalties,” Reda says. “Also, as part of that acquisition, we met with some of the locals in and around the projects and discussed job opportunities. Instead of me going to them and saying, ‘This is what I can provide to you,’ we also ask them what's important to them.”

In April Doyon strengthened its ties with Tectonic Metals, paying $1.5 million to acquire about 22 percent ownership in Tectonic Metals on a partially diluted basis.

It makes Doyon the largest single shareholder of Tectonic Metals.

Schutt says of the partnership, “ The team at Tectonic has a proven track record in finding resources and working closely with First Nations in the North… We are pleased to deepen the partnership with Tectonic and look for ward to working with them for many years to come."

Schutt says that when mining and exploration projects are near a community such as Northway, there are more opportunities for locals in the form of labor support activities, helping in the camp, or assisting drilling operations.

“If it's remote, then those people can come from anywhere,” Schutt says. “Now we're going to encourage, whenever it's on Doyon land, that an explorer hires Doyon shareholders and people from the Interior, but it can be harder to facilitate that when it's distant from a community than when it's in a

community or near a community.”

Schutt says that these exploratory programs—a mine has yet to start operations on Doyon land for various reasons—do not have a significant impact on local communities.

“These programs are generally summer only. Even in the summer, a drill program might last a month or six weeks or eight weeks. Unless there's a discovery and there's a large sustained drilling program, it can be fairly minor in the big scheme,” Schutt says. “But we understand that it's really important for local people to have that local job in the community that doesn't otherwise exist. So, for individuals that can be hugely important, but when you kind of look at it from the 50,000-foot level, you go: wow, that's a fairly small economic impact.”

Because Tectonic's programs are smaller operations, they are creating about two to five job opportunities locally during the summer, Reda says.

“Then, long term, obviously as we see the scope of the program get larger, and longer, it obviously unfolds into more,” Reda says.

As a project clears exploration, development, and permitting hurdles, more and more money trickles into local communities. However, Schutt says there’s no guarantee the work that’s available for job seekers during one summer will be there next.

Even if a resource is proven and economical, it can take decades to come online.

“One important point about the mining industry that's unique is that the period of time required from discovery of a potential resource to mining operations can be ten or twenty years or even longer,” Calvin says. “And further, mining development requires very significant investment. It can cost $300 million to well over $1 billion dollars to bring a mine online. So, a good stable business environment is required to attract investors.”

Even so, long before a mine ever comes online, it provides thousands of Alaskans with some of the highest paying jobs in the state, making mining companies significant contributors to the economic health of the state and the communities in which they operate.

Alaska Business www.akbizmag.com

CONSTRUCTION

Lines Above Lines Below 64 | June 2020

Casey Mapes

and

Alaska Business www.akbizmag.com

The Cons of Underground

Planning, constructing, and maintaining utility lines

By Sam Davenport

T

he decision to bury a utility line depends on many factors, such as climate and population density. Alaska’s utilities decide how to provide services to a community based on its needs and characteristics.

Alaska Village Electric Cooperative (AVEC) has more power plants than all of Alaska’s other electric cooperatives combined. The nonprofit serves residents in fifty-eight locations across Alaska, from Kodiak Island to Yakutat and Minto, which is the only community in the cooperative’s network accessible by road. AVEC runs more than 150 diesel generators for more than 400,000 hours a year to provide services to its customers.

AVEC President and CEO Meera Kohler says that today the cooperative’s electric lines are almost entirely above ground. “When our systems were first built out—mostly in the ‘70s—underground was thought to be the wave of the future,” says Kohler.

“So our distribution systems were built underground. It became clear within a few years that wasn’t a practical option for rural subarctic Alaska with locations having a substantial amount of active permafrost.”

She continues: “Ground movement and shearing effectively shredded wires and it would be days, weeks, and sometimes months before faults could be found and wires fixed.”

Over time, almost all of AVEC’s underground distribution lines were converted to overhead. “We do have to build some underground lines— especially around airports—but that is typically not in permafrost impacted areas,” Kohler says. www.akbizmag.com

Matanuska Electric Association (MEA), which serves more than 51,000 members in the Mat-Su, Eagle River, and Chugiak areas, manages more than 4,5000 miles of power lines in Southcentral. MEA published Underground vs. Overhead Transmission Lines to explain the organization’s decision making process when choosing to install a line overhead or underground.

According to the briefing, opting to bury a transmission line can create various difficulties and additional

costs. “Unlike distribution power lines that deliver power to homes, highvoltage power lines are extremely expensive to build underground.

Underground construction of transmission lines often costs five to ten times more than overhead construction,” the briefing says.

Some of those costs are associated with how the utility chooses to bury a line. Underground transmission lines, which are almost five times larger than overhead lines, can be buried directly or in conduit. Construction is cheaper without installing conduit, but the line

Electric Power Constructors, Inc. Independent Licensed Electrical Construction, Maintenance, and Testing Firm Serving Alaska Since 2005.      

Complete Design-Build Services Underground Electrical Construction and Conversion Power Plant Construction and Upgrades Transmission and Distribution Line Construction Substation and Switchgear Construction Power Equipment Testing, Maintenance, and Repair

(907) 631-4702•bmiebs@epconstructors.com

Electric Power Systems, Inc. Multidisciplinary Consulting Engineering Firm Delivering Comprehensive Electric Power Systems Services Throughout Alaska and to National and International Clients Since 1995.       

Complete Conception to Completion Consulting Services Experts in Alaska’s Islanded Power Systems and Small Power Grids Power Generation to Final Distribution Planning, Studies, and Design Electrical, Mechanical, Civil, and Structural Engineers Proven Renewable and Traditional Power Systems Engineering Construction Administration and Project Management System Integration, Monitoring, and Automation

www.epsinc.com • (907) 646-1953•eps@epsinc.com Alaska Business

June 2020 | 65

Linemen at work in Savoonga.

AVEC

Building Alaska From The Ground Up A division of Fairbanks Materials Inc.

A division of Fairbanks Materials Inc.

1122 Bradway Road North Pole, AK 99705

855 Old Richardson Hwy Fairbanks, AK 99701

907-459-4820

907-459-4800

www.FairbanksMaterials.com 66 | June 2020

Alaska Business www.akbizmag.com

has a shorter operational life and is difficult to replace if damaged. Using conduit is more expensive, but gives the line a longer life and makes for easier replacement; however, even then utilities often install additional cable or redundant conduit, increasing construction costs but minimizing the need to go back and do additional construction.

“Insulated cables, underground surveying and excavation, splicing vaults, and concrete-encased conduits to protect lines from dig-ins contribute to higher costs,” the report says. And even with those additional precautions, “the lifespan of underground lines is thirty to thirty-five years, about half that of overhead lines.”

MEA’s briefing notes that generally underground options are too costly and result in increased rates.

“Underground line maintenance is more expensive… Since the lines are underground, additional digging and disruption occurs, especially since the lifetime of an underground line is only about half that of an overhead line,” the report says.

www.akbizmag.com

“Underground lines also complicate access for neighboring property owners for the lifetime of the line. In addition, construction and maintenance require breaking ground and will likely impact other utility infrastructure like pipes or fiber lines.”

Municipal Preferences For other utilities, community regulations play a role in determining how lines are installed.

In Anchorage some lines have been

underground for decades, and the trend is for overhead cables to be moved underground.

Municipal Light & Power (ML&P) provides electric services for some of Anchorage’s oldest neighborhoods, and its 20-square-mile service area covers a variance of buildings, from commercial to industry loads to university and medical customers.

Each construction season, ML&P replaces overhead distribution lines with underground lines—a

“I would say about 90 percent of our distribution lines—which is the lines that you see when you’re driving on the road that connect the businesses and houses—about 90 percent of our lines in the Copper Basin are overhead.”

Travis Million, CEO, Copper Valley Electric Association

Alaska Business

June 2020 | 67

“When our systems were first built out— mostly in the '70s—underground was thought to be the wave of the future. So our distribution systems were built underground.

It became clear within a few years that wasn’t a practical option for rural subarctic Alaska with locations having a substantial amount of active permafrost.”

Meera Kohler, President/CEO, AVEC

revenues to fund these projects.”

ML&P published the ML&P 5-Year Plan 2020-2024: For the Removal of Non-conforming Overhead Lines in Accordance with MOA Title 21.07.050,

requirement based on the Municipality of Anchorage’s Title 21 ordinance.

According to ML&P, the ordinance “requires utilities to annually spend 2 percent of their average city retail

MATERIAL FLOW

AND CONVEYOR SYSTEMS INC. ANCHORAGE

which provides some insight into the program, project selection, and proposed project timeline.

The utility has been putting in new distribution lines underground since the ‘60s and burying existing overhead lines since the early ‘80s, according to the plan. Some lines, like high-voltage transmission lines, can never be buried, and soil conditions may make line burial impossible, but the majority of ML&P’s lines are now underground.

“Above 68 percent of ML&P’s overhead distribution lines are already buried, more than in most cities. But the process will take decades,” its website says.

In the 2019/2020 season, ML&P completed the 3rd Avenue: Barrow Street to LaTouche Street project, which buried overhead power lines along 3rd Avenue from Barrow Street to LaTouche Street, converted the line to a higher kilovolt system, and was jointly constructed with the Municipality to allow for the installation of new lighting along 3rd Avenue.

Work is ongoing on the Mountain View Lions Park project, which will

HOME • SHOP • BUSINESS • WAREHOUSE PALLET JACKS

PLASTIC BINS

Toll Free 877-868-3569 Close Out Pricing Phone 907-868-4725 Fax 907-868-4726

6112 Petersburg St. Anchorage, AK 99507 Visit Our Website: www.akflow.com

CASTERS

100S IN-STOCK

100’S IN-STOCK

• Standard • Stainless • Galvanized Manual or Electric

SPECIAL PRICING

CANTILEVER RACKS

PROFESSIONAL GRADE HAND TRUCKS • CARTS

LOCKERS

HEAVY DUTY H.D. DOLLIES

Used and New

CONVEYORS

PLATFORM TRUCKS

TEARDROP PALLET RACKS

SELF DUMP HOPPERS

Thousands of Frames and Beams IN-STOCK 100 Models in 39,000 Sizes IN-STOCK Shipped in Midwest Warehouse 24 Hours • Power • Used • Gravity Conveyor • Rollers Available

IN-STOCK WOOD • STEEL NURSERIES

GARAGE • HOME BUSINESS

E-Z RECT AVAILABLE

1-877-868-3569

PACKAGING SUPPLIES

Stretch Film F.O.B. Anchorage Torque • Hand Grade • Machine Grade

SNAP TOGETHER SHELVING

BLOWOUT PRICING

USED ROLLER CONVEYORS 68 | June 2020

GENERAL DUTY TO HEAVY DUTY

Steel Banding Many Sizes

Clear and Tan Tape

36”W x 12”D x 84”H w/ 5 Shelves

And Much More...

Alaska Business www.akbizmag.com

Overhead lines provide power to residents and businesses in Utqiaġvik. oc8jas | iStock

The Solutions Company -

When experience meets ingenuity

• Safe, cost effective solutions to the most challenging projects • From the Arctic to the Gulf Coast • Full facility removal, asbestos, remediation, waste management, demolition and site work

Central Environmental Inc. CEI I The Solutions Company

Locations: Anchorage I Fairbanks I Las Vegas I Los Angeles 888-876-0125 I www.cei-alaska.com I #centralenvironmentalinc www.akbizmag.com

Alaska Business

June 2020 | 69

Underground transmission lines, which are almost five times larger than overhead lines, can be buried directly or in conduit. Construction is cheaper without installing conduit, but the line has a shorter operational life and is difficult to replace if damaged. Using conduit is more expensive, but gives the line a longer life and makes for easier replacement. underground power lines along McCarrey Street and Mountain View Drive, as “overhead lines are currently located in the park and overhead structures disrupt audience seating

70 | June 2020

arrangements of baseball games on the north field,” the report states.

According to published projections, four undergrounding projects are slated for completion in 2020.

Community by Community In the Interior, Copper Valley Electric Association (CVEA) provides electricity to approximately 8,000 Alaskans. CVEA's CEO Travis Million says the utility’s service territory is quite large—spanning 160 miles north and south and 100 miles east and west, about the size of West Virginia. CVEA has a number of power plants: the Cogeneration plant, the Glennallen diesel plant, the Valdez diesel plant, the Solomon Gulch hydroelectric facility, and the Allison Creek hydroelectric facility.

Million says that through energy created at Solomon Gulch and Allison Creek, CVEA was 74 percent hydroelectric for the entire year. “We serve the Copper Basin, which includes Glennallen and the surrounding communities, and then we’ve got a 106-mile-long transmission line that interconnects down to the community of Valdez, and we serve all of Valdez as well,” Million says.

Unlike other Alaska electric companies, CVEA is electrically isolated, meaning its grid isn’t connected to any others. “We generate all of our own electricity, we push it across our transmission lines, and then we distribute it to our members,” Million says.

Million says that Glennallen and Valdez have different approaches to distribution lines.

“I would say about 90 percent of our distribution lines—which is the lines that you see when you’re driving on the road that connect the businesses and houses—about 90 percent of our lines in the Copper Basin are overhead,” Million says.

In Valdez, Million says it’s almost the opposite: about 90 percent of lines in town are underground.

“Density is one of the drivers,” Million says. “If you’re in a more city-type environment, typically, you’ll want to go underground.”

Million says one of the main reasons why the majority of lines in the Glennallen region are above-ground is due to permafrost. “Permafrost can wreak major, major havoc on underground lines,” Million says. “The ground is completely frozen six months out of the year, so it makes it real tough

Alaska Business www.akbizmag.com

to dig up a line if you had to repair it or anything. So that’s why we typically try to keep our lines above ground in the Glennallen area.”

Permafrost in the Interior is challenging, but Million says the snow in Valdez can also challenge his team. “We’re dealing with anywhere from 10 feet to 30 feet of snow, depending on if you’re in the city or up in Thompson Pass,” Million says. “Even trying to find a piece of equipment under that much snow— it’s difficult.”

Overhead lines running along the Alaska Highway.

What Else Is Buried Of course electric companies aren’t the only ones working underground. Northern Utility Services is an underground utility contractor that provides water line repair and replacement, trenchless water and sewer installation, and low-impact excavation services, among others.

While Northern Utility Services operates in rural areas of the state, General Manager Darrin Bartz says it’s less than 5 percent of their projects, with the majority being on the road

Don’t be Left out Be sure your company listing is included in our industry directories and the annual Power List.

heckepics | iStock

system. One of the obstacles of operating in more populated areas is working around other utilities.

“Natural gas, power, comm lines— they’re all over out there… the infrastructure, depending on the folks that are doing it, has changed,” Bartz says. “Sometimes it’s not always updated. A water line or a comm line that should be in this area sometimes shows up not in that area. Of course, that’s a challenge.”

Bartz says that there are plenty of challenges working in a landscape like Alaska. “Sometimes we’re dealing with some allocation across rural Alaska permafrost where lines can’t be buried, or we dig in rock, we dig in peat and soil, as we call it,” Bartz says. “The material that we dig in is probably the most challenging… like running sand— with every scoop you take out you’ve got two more scoops coming down the hole at you.”

BUILDING ALASKA’S RESOURCE INDUSTRIES Our innovative solutions and experience in Alaska construction and maintenance are second to none. From the Kenai Peninsula to the farthest reaches of the North Slope, CONAM has been there and built that.

To request a survey for your industry or update company information, please contact Emily. (emily@akbizmag.com) Surveys are quick. Listings are free.

OIL & GAS CONSTRUCTION | MINING CONSTRUCTION | POWERPLANT CONSTRUCTION PIPELINE CONSTRUCTION | REMOTE VILLAGE INFRASTRUCTURE | TELECOMMUNICATIONS DESIGN BUILD & EPC | GENERAL CONTRACTING | PROFESSIONAL PLACEMENT

akbizmag.com www.akbizmag.com

Commitment to Safety & Quality Anchorage | Kenai | Deadhorse | www.conamco.com | 907-278-6600 Alaska Business

June 2020 | 71

JodyO. Photos

TOURISM

World-Class Walks Exploring the lesser known branches of Anchorage's trail system

By Amy Newman

72 | June 2020

Alaska Business www.akbizmag.com

N

obody anticipates summer quite like Alaskans. Months of darkness, mountains of snow, and freezing temperatures yield, seemingly overnight, to long, sunlit days and, with the kids out of school, time to travel to the Lower 48 and beyond for vacation.

Summer 2020, however, is shaping up to be more than just a little bit different.

As this article is being written, Alaskans are hunkered down at home.

Every resident or visitor who enters the state—whether by land, sea, or air—is subject to a mandatory 14-day home quarantine, causing many to cancel travel plans. The cruise ship industry, which brings more than 1 million visitors to the state each summer, has canceled excursions through at least June 30; airlines have reduced flights in and out of the state; and all but the most essential services are closed.

Which means the majority of Alaskans will be staying put this summer, and their only form of escape will be to venture out into our collective backyard—provided they remain the

socially acceptable 6 feet apart from everyone they meet, of course.

And with the number of tourists drastically reduced (if they come at all), locals will have the run of Anchorage—which makes it the perfect time for the city’s residents to become acquainted with all the municipality’s outdoor options.

“I don’t like the word ‘staycation,’ but I think this is a great opportunity for Alaskans to just regroup and remember just how spectacular our state is,” says Erin Kirkland, who runs the Alaska travel website AKontheGO. “I tell my kids all the time, ‘People save up their money for a lifetime to come here.’”

Whether we’re hunkered down well into summer or eventually able to travel freely, make it a point to skip Anchorage’s usual outdoor hotspots and explore the city’s equally spectacular but less traveled gems instead.

suggestions on social media to discover the best activities their destination of choice has to offer. Channel that same energy and enthusiasm into planning your local jaunts.

“I would encourage people to do their own research because there are so many different options,” says Wendy Sailors, development specialist at the Division of Outdoor Recreation at the Alaska Department of Natural Resources (DNR). “The research part is the fun part.”

The DNR website has downloadable maps and brochures for Chugach State Park and the Hillside and Turnagain Arm Trail systems, as well as the trails around Eklutna Lake and the Eagle River Nature Center, she says. The site also lists accessible trails for people who have mobility issues. On Facebook the department posts “Find Your Trail” every Wednesday, which highlights different trails across the state to explore, she adds.

The Anchorage Park Foundation website has an interactive map that pinpoints every one of the municipality’s 85 playgrounds and 226 parks, along

Before Heading Out, Head Online Before heading out on summer adventures Outside, most people scour the internet and crowdsource

We Deliver!

I

S

L

A

N

D

A

I

R

E

X

P

R

E

S

S

Private Aircraft Charter P I L A T U S

P C - 1 2

A I R C R A F T

4 Hours 3 Hours

Fairbanks Anchorage

2 Hours 1 Hour

Juneau

Calgary

Subscribe today to receive our monthly digital edition—sent straight to your inbox.

Vancouver Seattle Portland

www.akbizmag.com/subscribe APPLY PROMO CODE: DIGITAL20 www.akbizmag.com

Modern charter service throughout Alaska, the lower 48, and Canada.

8 8 8 • 3 8 7 • 8 9 8 9 Alaska Business

|

i s l a n d a i r x . c o m June 2020 | 73

with a map of its 250-mile trail system.

Downloadable trail maps are also available from the Visit Anchorage and municipality websites, all of which can help those looking for something off the beaten path.

“I would just encourage people to get on the websites and start exploring,” Kirkland says. “Stop going to your default locations and pick somewhere different. Make a commitment in the family to go somewhere different every week.”

Anchorage on Foot (or Wheels) Anchorage has more than 250 miles of multi-use trails—135 of which are paved—and greenbelts that link almost every neighborhood to open space, with the Ship Creek, Campbell Creek, Chester Creek, and Tony Knowles Coastal Trails serving as the backbone of the interconnected system. Yet many people don’t automatically think of the city’s trail system when heading out for a hike.

“It’s so easy to make the jump into the mountains because that’s what you think of as trails,” says Jack Bonney, community engagement director at Visit Anchorage. That reaction, he says, is a mistake. “There’s a lot of variety and a lot of options all over, not just out in the mountains but right here in town, that people may not realize are available.”

In town, Bonney recommends the newly rehabilitated Fish Creek Trail in Spenard. With an elevated platform that offers wetland and wildlife views, the trail runs east on Spenard Road along the northern edge of Northwood Park to Northwood Drive. The goal is to eventually connect the trail to the larger system.

The Ship Creek trail is the most underutilized of Anchorage’s four major trails, something that Diana Rhoades, director of community engagement at the Anchorage Park Foundation, says consistently surprises her.

“From downtown, it’s about five miles round trip,” she says. “You can go to the [William Jack Hernandez Sport] Fish Hatchery, which is really interesting and beautiful. It’s a free public facility that you can go in to learn more about salmon.”

Kincaid Park offers several options, including a new single-track trail for 74 | June 2020

cyclists and walkers that cuts through the park and “feels wild and jungly,” Rhoades says. Her favorite Kincaid hike is a 4.5-mile loop that begins at the Jodhpur Trailhead, goes down along the beach and up onto a ridge that leads back to the trailhead.

“You’re on the water, you’re up on the trail, and there are spectacular views,” she says.

“Those are smaller trailheads with less parking, but they access all the same trail systems. If you go to Glen Alps and take the Powerline Pass left, you can access a lot of the same trails that you can access from Prospect Heights, with Williwaw Lakes Trail kind of in the middle.

It’s an intricate system in both of those areas, so there are lots of options for all users.”

Wendy Sailors, Development Specialist DNR Division of Outdoor Recreation

Government Hill also has an “of fthe -beaten -track new walking trail ” that the Youth Employment in Parks Program helped build last summer, Rhoades says. Accessible from Suzan Nightingale McKay Memorial Park overlooking Knik Arm, on clear days the trail of fers unobstructed

views of Denali, Mt. Foraker, and Mt. Hunter.

Although the playground equipment, athletic fields, and picnic facilities at Anchorage’s parks are off-limits (as of late April), many of them are more than just the swings and slides. Abbott Loop Community Park, for example, provides access to a network of trails that merge into Far North Bicentennial Park and the Bureau of Land Management’s Campbell Tract, Kirkland says.

“We wandered around the forest,” she says of a recent visit she made with her children. “Kids love that kind of stuff.”

Bicyclists looking for a challenge can also “ride the moose,” a 33-mile loop that traverses Anchorage’s four major trails and, when looked at on a map, resembles—surprise!—a moose.

“It’s kind of cool,” Rhoades says.

“There are 1,500 moose out on the trails. Locals love the moose, visitors love the moose, people are always figuring out how to see a moose, and we have a moose. You can break them up into different parts of the trail to do it, or you can bike the moose in one swoop.”

Into the Hills Chugach State Park has approximately 280 miles of trails. But ask any Anchorage resident to name the most frequently visited and the answer will inevitably be Flattop at the Glen Alps Trailhead. Its popularity is not without good reason—the trail offers stunning views of Anchorage, Cook Inlet, and the Alaska Range, whether one’s trek ends at the mountain’s summit or the parking lot’s scenic overlook.

But because this summer is about avoiding the tried and true, make it a priority to explore some of the park’s other trails. The Glen Alps Trailhead connects to more than Flattop, including Powerline Pass, Williwaw, and Wolverine, some of which are accessible from Prospect Heights.

“The Powerline Pass side of Flattop, it’s really eye-opening how many connections there are back there that I don’t think gets as much attention because Flattop is the star of the show,” Bonney says.

Sailors says park rangers routinely suggest the Upper Huffman Trailhead, which takes the left-hand turn at Upper Huffman (as opposed to the right,

Alaska Business www.akbizmag.com

Scenery, Wildlife, and Alaska History A simple walk around any neighborhood in Anchorage offers at least a glimpse of the mountains or water and a chance to catch a moose www.akbizmag.com

Introducing

The Moose

munching flowers in someone’s front yard. But certain spots are specifically designed to maximize both.

For history buffs (and newly minted homeschooling parents looking to incorporate history lessons into their curriculum), a small footpath— “It’s one of those blink and you’ll miss it kind of things; if you don’t slow down, you’ll blow right by it,” Bonney says—leads off the Coastal Trail into Earthquake Park and the slide zone from the 1964 Good Friday earthquake.

Interpretative panels detail what happened that day and how the 9.2 magnitude quake changed the surrounding landscape.

“It really brings in to sharp relief, ‘This is why this tree and the ground it’s on look like this,’” he says. “It’s really eyeopening, even for somebody like me who’s been through this place more times than I can count.”

The Campbell Creek Estuary Natural Area is a secluded spot that gives visitors the opportunity to experience Anchorage from a different perspective and, for bird watchers, serves as a suitable alternative to Potter Marsh. A meadow loop trail has two platforms that overlook Campbell Creek and the Anchorage Coastal Wildlife Refuge, two spur trails, and Alaska Business

Anchorage Park Foundation

which leads to Glen Alps), the Basher Trailhead off Campbell Airstrip, or Upper O’Malley Trailhead.

“Those are smaller trailheads with less parking, but they access all the same trail systems,” she says. “If you go to Glen Alps and take the Powerline Pass left, you can access a lot of the same trails that you can access from Prospect Heights, with Williwaw Lakes Trail kind of in the middle. It’s an intricate system in both of those areas, so there are lots of options for all users.”

The 9.5-mile Turnagain Arm Trail, which has multiple access points at the Potter, McHugh Creek, Rainbow, and Windy Corner Trailheads, is another trail with many options, Sailors says.

“Some people park one car at Rainbow and one car at the Potter Trailhead, then go from point A to point B, and then drive back to the other car,” Sailors says. “It is up and down and rolling hills, and it gets up pretty high at one point. Some of the faster people can do it in around an hour, but it’s definitely a difficult trail; it’s fun though.”

Or leave the Glen Alps and Prospect Heights trails entirely to find spots (though it approaches blasphemy to suggest it) that feature views as good as, if not better than, Flattop.

“Arctic Valley, Bird Ridge, the Rabbit Lake trails, all of those guys are as gorgeous, or more gorgeous, than Flattop,” Bonney says. “They just don’t get the attention.”

Rhoades echoes Arctic Valley, which is 10 miles northeast of downtown Anchorage. The ascent is short but steep, but she says the views from the top rival Flattop.

“You get a whole view back into the Eagle River Valley, all these mountains,” she says. “You have really spectacular views and beautiful flowers. That’s one I highly recommend.”

The trail is even popular with fourlegged explorers.

“I saw three bears on the drive up one time,” she says. “That’s always a crowd-pleaser.”

a bird blind; Bonney says the Estuary offers a coastal perspective different from what people are used to seeing from the Tony Knowles Coastal Trail.

“The first time I went down there it opened up the perspective of there’s a whole plane down there that’s part of the Coastal Wildlife Refuge,” he says. “There’s the Kenai Islands, there’s Fire Island. It really reminds you how interconnected all these places are to one another.”

Kirkland agrees and names the Estuary her favorite spot in Anchorage.

“It’s just a lovely loop,” she says. “You can get out there and look out on the bluff and listen to the loons. All the migrating critters are still going to do their thing because they don’t know there’s a pandemic going on. And nobody is ever there. Nobody.”

Whether a downtown walking trail, a trip into the foothills, or somewhere in between, with just a bit of effort even the most dedicated adventurer can find something new to explore in Anchorage. “ That’s the funny thing for me,” Bonney says. “Even as someone who lives and breathes this day to day, it’s just amazing the number of different options and the nuances of those options.”

June 2020 | 75

INSIDE ALASKA BUSINESS Alaska Materials Alaska Materials, a wholesale supplier of construction, building, and specialty materials, announced a Master Distribution Agreement with Diamond Grid, which produces a surface stabilization and erosion control system that can be used for shed floors, camp paths, mine access roads, feed and water troughs, parking lots, golf courses, driveways, and more.

The agreement is exclusive to develop Alaska and provides an open door to further development in the Lower 48. alaskamaterials.com

cubic yards of high-quality hard rock.

Given the location of the quarry on Cook Inlet tidewater, IVC and BBNC believe Diamond Point offers a promising source of rock material for infrastructure projects in Anchorage, Kodiak, and the Alaska Peninsula.

Diamond Point will complete further tests of the rock material in the quarry with the goal of selling material this summer. bbnc.net | igiugig.com

Trilogy Metals Trilogy Metals reported the public release of the Final Environmental Impact Statement (EIS) for the Ambler Mining District Industrial Access Project in late March.

Following the US Bureau of Land Management releasing the EIS, the final step in the permitting process for the project is the issuance of the Record of Decision by the BLM and the issuance of the Clean Water Act Section 404 permit from the US Army Corp of Engineers. Trilogy Metals expects these two items to be issued concurrently within the next couple of months. trilogymetals.com

The Sitka Local Foods Network announced the winners of the third annual Sitka Food Business Innovation Contest. Andrew Jylkka, owner of Southeast Dough Company, won the Existing Business Category and Levi Adams, owner of Forage and Farm, won the start-up category; each business was awarded $1,500. sitkalocalfoodsnetwork.org

BBNC | IVC

Northrim Bank

Bristol Bay Native Corporation’s (BBNC) subsidiary Bristol Bay Resource Investments acquired a 15 percent stake in Diamond Point and its main asset, Diamond Point Quarry.

Iliaska Environmental, a wholly owned subsidiary of Igiugig Village Council (IVC), owns the remaining 85 percent.

Diamond Point Quarry is believed to contain 30 million to 40 million

Northrim Bank will open its newest branch, the Fairbanks West Community Branch located at 3637 Airport Way, Suite 110 during the third quarter of 2020. The new location in the Safeway University Avenue complex updates the bank’s “branch of the future” blueprint with a focus on customer interaction. The Fairbanks West Community Branch is

Sitka Local Foods Network

Sitka Local Foods Network

the seventeenth Northrim location in Alaska. northrim.com

Fugro | NOAA Fugro signed a 5-year Indefinite Delivery Indefinite Quantity contract with the US National Oceanic and Atmospheric Administration (NOAA) to provide shoreline mapping services in support of the agency’s Coastal Mapping Program. Issued through NOAA’s National Geodetic Survey (NGS), this multi-year contract is NGS’ second consecutive award to Fugro for services such as the provision of aerial imagery, topobathymetric lidar, and shoreline feature compilation.

NGS uses the data to update NOAA nautical charts, define US territorial limits, support coastal management activities, and perform inundation modeling. fugro.com | noaa.gov

Eielson AFB The first two F-35A Joint Strike Fighter aircraft arrived at Eielson Air Force Base in April. In total, fifty-four F35As and approximately 1,300 personnel will be based at Eielson by the end of 2021. The fifty-four aircraft represent two squadrons that will join the reactivated 356th Fighter Squadron, which will join the 18th Aggressor Squadron of F-16s and the 168th Air Refueling Wing currently assigned to Eielson.

The F-35A Joint Strike Fighter is a 5th Generation stealth aircraft designed to operate jointly between military services and allied countries as the quarterback of air combat. The F-35A is capable of air-to-air and airto-ground combat, electronic warfare, and delivering nuclear weapons. eielson.af.mil

ECONOMIC INDIC ATOR S ANS Crude Oil Production  446,368 barrels  -13% change from previous month

ANS West Coast Crude Oil Prices  $13.03 per barrel  40% change from previous month

Statewide Employment 345,010 Labor Force  5.6% Unemployment

4/30/2020 Source: Alaska Department of Natural Resources

5/1/2020 Source: Alaska Department of Natural Resources

3/1/2020. Adjusted seasonally.

Source: Alaska Department of Labor and Workforce Development

76 | June 2020

Alaska Business www.akbizmag.com

RIGHT MOVES Alaska USA  Bob Warthen has been selected to fill the position of Vice President, Commercial Services Administration, Business Warthen and Commercial Services.

Warthen is a skilled leader with more than twenty-five years of industry experience. He has been employed with Alaska USA since 2005, most recently as credit administration manager.

APU  Alaska Pacific University (APU) selected Valerie Nurr’araaluk Davidson as its next President. Davidson served as commissioner Davidson of the Alaska Department of Health & Social Services and then the lieutenant governor under thenGovernor Bill Walker. Prior to that, she worked for more than fifteen years as a national policymaker, focusing on matters affecting Indigenous health.

Davidson earned a juris doctorate with a certificate in Indian law from the University of New Mexico School of Law and a bachelor’s degree in education with a minor in bilingual education from the University of Alaska Southeast.

PDC Engineers PDC announced the addition of two new employees to its Juneau office: Jennifer Kemp and Evan Venechuk.  Kemp joins PDC as a CADD Engineering Technician. She is a 2002 graduate of Centralia College where

she earned her associate’s degree in technical arts.

Kemp has more than sixteen years of experience with civil 3D modeling, Kemp AutoCAD, GPS, and GIS technology. Most recently, Kemp worked as a crew chief on a survey crew as well as developing an initiative to locate utility and light poles using GPS and GIS technology.  Venechuk joins PDC as a Land Surveyor in Training. In this position, Venechuk will calculate boundary corner search/staking coordinates Venechuk and provide technical and CADD support for the Land Survey team. Venechuk has more than five years of surveying experience, as well as extensive experience in the mining industry in Alaska.

PND Engineers PND Engineers announced the following new hires.  Forrest Savel earned his bachelor's degree in civil engineering from UAF in Savel 2018. He has a background in construction, having worked previously as a summer laborer with the Alaska Department of Transportation & Public Facilities and as an intern with R&M Consultants. Most recently Savel worked full-time as a distribution designer for Chugach Electric Association.  Jake Randazzo brings fifteen years of experience in hands-on primary and secondary soil testing, data reduction, and soil lab operations.

He is also experienced in geotechnical investigations, pile driving analysis, wave equation analysis, pile driving inspection, Randazzo concrete testing, and other inspection work. Randazzo has an associate’s degree in process technology from Kenai Peninsula College; holds ACI, NICET, and Nuclear Gauge certifications; and has done field work all over Alaska, including the North Slope.

R&M  Lisa Morris recently joined R&M Consultants as a Graphic Designer in the firm’s marketing group. Morris will be Morris responsible for providing print and web/interactive graphic communications in support of R&M’s marketing, communications, and project initiatives. Morris has nineteen years of professional design experience in Alaska, with fifteen of those years spent serving the A/E/C industry. Morris has a bachelor’s in journalism and mass communications from the University of Oregon.  Mark D. Anderson also joined R&M as the firm’s Group Manager of Structural Engineering.

Anderson has forty years Anderson of Alaska experience in all aspects of structural engineering.

Since joining R&M, he has provided structural quality control and design input for the Port of Alaska Petroleum

RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO

78 | June 2020

Alaska Business www.akbizmag.com

Cement Terminal project. Anderson has a bachelor’s and master’s in civil engineering, both from the University of Idaho.

Northrim Bank Northrim Bank announced the promotion of several employees throughout the bank.  Amber Zins has been promoted to EVP–Chief Administrative Officer. Zins has been with Northrim Bank for twelve years, when she Zins was hired as the internal audit manager. For the past two years, she has been the human resources director. Zins holds a bachelor of business administration in accounting from UAF and is a Certified Public Accountant (CPA).  Cindy Fields has been promoted to SVP–Internal Audit Director. Fields joined Northrim in 2018 and has sixteen years of experience Fields in audit and regulatory compliance. She holds a bachelor’s degree from UAA and is a CPA and Certified Internal Auditor (CIA). Fields is the president of the Institute of Internal Auditors Alaska Chapter.  Joe Gelione was promoted to SVP– Commercial Loan Unit Manager. Gelione started at Northrim in 2017 and Gelione has more than thirty years of experience in the financial sector, working in banking in Alaska for more than twenty-five years. He holds a bachelor of business administration in finance from Stockton University. Gelione has served on the board of directors of Bean’s Café and Alaska Junior Theater.  Tammy Kosa was promoted to SVP–

www.akbizmag.com

Regional Market Manager, Fairbanks. Kosa has been with Northrim since 2004 and has more than twenty-six years of banking Kosa experience. She holds a bachelor’s degree in international business from UAF. She volunteers with Junior Achievement of Alaska.  Nicole Pintsch has been promoted to VP–Controller of Financial Reporting. Pintsch has been with Northrim since 2007 when the bank acquired Pintsch Alaska First Bank. She has been in the financial industry for fifteen years. Pintsch holds a bachelor of business administration in accounting from UAA. She volunteers with Junior Achievement of Alaska, Teach Children to Save, and Girls on the Run.  Terre Lefebvre was promoted to AVP–Merchant Relationship Manager.

Lefebvre joined Northrim in 2003 and has more Lefebvre than twenty-one years of experience in the financial industry.

She attended Roger Williams University.

Lefebvre has volunteered with Teach Children to Save, Anchorage City Wide Clean Up, and United Way’s Day of Caring.  Kiersten Russell has been promoted to Loan Officer II. Russell started at Northrim in 2014 and has held a number of positions throughout the Russell bank. She will complete her bachelor of business administration in accounting this spring from UAF. She also holds certificates for business and commercial lending. She is a member of the AGC Construction Leadership Council.  Elias Wilterding was promoted to Credit Administration Officer. Wilterding has

Alaska Business

been with Northrim since 2013 where he worked in the facilities department before moving to credit administration. He holds Wilterding a bachelor’s degree in economics from UAA.

Ahtna  Ahtna Global welcomed Morgan Miller into the business development department as an Anchorage-based Proposal Manager.

Miller provides nationwide proposal support to Ahtna’s capture teams. She began working in the engineering industry in 2014. Miller earned a bachelor’s in economics through UAA and is Foundation Level certified through the Association of Proposal Management Professionals.  Chemist Keather McLoone also joined the Ahtna Engineering Services team.

McLoone earned a bachelor’s in biology and in chemistry from the University Minnesota Duluth. She has twentyseven years of professional experience in environmental consulting, environmental regulatory oversight, and environmental laboratory analysis. Her twenty years of environmental experience in Alaska include sampling and oversight at numerous remote Alaska locations statewide.  Ahtna Environmental hired Greg Mamikunian as a Geologist based out of its Anchorage office. Mamikunian earned a bachelor’s in earth sciences at the University of California, San Diego, and a master’s in earth sciences from Scripps Institution of Oceanography at the University of California, San Diego.

Mamikunian also has experience with applied geophysics locating faults and other geologic features using gravity, magnetics, seismic refraction, and electromagnetics.

June 2020 | 79

ALASKA TRENDS

T

his year, celebrating the transportation industry in June seems particularly well-timed; despite a global pandemic, our transportation professionals have kept shelves stocked and people moving (whenever moving people couldn’t be avoided) while adhering to strict cleanliness and safety protocols. Through it all, Alaskans have been able to rely on an industry that takes its responsibilities to the communities it serves seriously.

It requires infrastructure, equipment, and expertise to “Keep Alaska Moving,” so for our June Alaska Trends we’re presenting a little more information about transportation in the Last Frontier. The facts presented here are sourced from Department Fast Facts: Prepared for Legislative Session 2020 by the Alaska Department of Transportation & Public Facilities.

THE ALASKA MARINE HIGHWAY CONSISTS OF

35 PORTS

THERE ARE 239

AIRPORTS

IN THE ALASKA AVIATION SYSTEM, MAKING IT THE LARGEST AVIATION SYSTEM IN NORTH AMERICA

12 FERRIES SERVE THE ALASKA MARINE HIGHWAY

THERE ARE 1,020 BRIDGES IN ALASKA INSPECTED BY THE DOT&PF

761 LANDING AREAS ARE RECORDED IN ALASKA (PUBLIC,

831 OWNED BY DOT&PF

26 OWNED BY OTHER STATE AGENCIES

163 OWNED BY CITIES & BOROUGHS

PRIVATE & MILITARY)

80 | June 2020

Alaska Business www.akbizmag.com

THE DOT&PF MAINTAINS

3,761 PAVED AND

1,873 UNPAVED CENTER LINE MILES OF ROADS & HIGHWAYS

7,949 ACTIVE PILOTS ARE REGISTERED IN ALASKA

109 SEAPLANE BASES ALASKA HAS THE LARGEST NUMBER OF SEAPLANE BASES IN THE UNITED STATES THE ALASKA MARINE HIGHWAY IS

3,500 ROUTE

82% OF ALASKA'S COMMUNITIES ARE NOT ACCESSIBLE

BY ROAD

MILES LONG

8,742 AIRCRAFT ARE REGISTERED IN ALASKA

www.akbizmag.com

Alaska Business

June 2020 | 81

ADVERTISERS INDEX Afognak Leasing LLC............................56 alutiiq.com

Cruz Companies....................................67 cruzconstruct.com

Parker Smith & Feek..............................23 psfinc.com

Air Land Transport.................................36 airlandak.com

Delta Constructors................................55 deltaconstructors.net

PDC Engineers Inc................................ 31 pdceng.com

Airport Equipment Rentals...........63, 83 airportequipmentrentals.com

Design Alaska........................................... 9 designalaska.com

PND Engineers Inc................................ 37 pndengineers.com

Alaska Air Cargo - Alaska Airlines.......25 alaskaair.com

Engineered Solutions Group...............65 epsinc.com

Samson Tug & Barge............................29 samsontug.com

Alaska Mergers & Acquisitions............ 17 fink@alaska.net

First National Bank Alaska – FNBA...... 5 fnbalaska.com

Seatac Marine Service.......................... 31 seatacmarine.com

Alaska Native Tribal Health Consortium - ANTHC......................... 84 anthc.org

Great Originals Inc................................ 17 greatoriginals.com

Span Alaska Transportation LLC.........45 spanalaska.com

HDL Consulting Engineers LLC..........29 hdlalaska.com

Stantec.....................................................41 stantec.com

Hecla Greens Creek Mining Co..........59 hecla-mining.com

State of Alaska DOHSS Substance

Alaska School Activities Association ASAA......................................................... 51 asaa.org Alaska Traffic Co....................................27 alaskatraffic.com Anchorage Economic Devel Corp. AEDC........................................................16 aedcweb.com Anchorage Sand & Gravel AS&G........................................................66 anchsand.com AT&T.........................................................19 att.com Carlile Transportation Systems........... 13 carlile.biz Central Environmental Inc. - CEI.......69 cei-alaska.com Conam Construction Co..................... 71 conamco.com Conrad-Houston Insurance Agency.....................................................10 chialaska.com

Island Air Express................................... 73 islandairx.com Jim Meinel CPA PC...............................10 meinelcpa.com Lynden Inc.......................................35, 43 lynden.com Material Flow & Conveyor

The Plans Room....................................70 theplansroom.com TOTE Maritime Alaska..........................47 totemaritime.com United States Census Bureau............... 3 census.gov

Systems Inc.............................................68 akflow.com

Usibelli Coal Mine................................... 9 usibelli.com

Matson Inc..............................................53 matson.com

West-Mark Service Center..................55 west-mark.com

New Horizons Telecom Inc................21 nhtiusa.com Northern Air Cargo........................78, 79 nac.aero

Subscribe and catch every issue!

Novagold Resources Inc......................61 novagold.com

Construction Machinery Industrial - CMI........................................ 2 cmiak.com

Odyssey Logistics &

Cook Inlet Tug & Barge Inc.................33 cookinlettug.com

Pacific Pile & Marine............................. 77 pacificpile.com

82 | June 2020

Misuse & Addiction Prevention.......... 11 workplaceaddiction.dhss.alaska.gov

Technology Corp..................................39 http://www.odysseylogistics.com akbizmag.com/subscribe

Alaska Business www.akbizmag.com

Ahtna Construction “Delta Clearwater”

907.456.2000

|

airportequipmentrentals.com

QUYANA ~ NA’ BASI ~ GUNALCHÉESH ~ THANK YOU

THANK YOU

HEALTH CARE PROFESSIONALS

Leading from the front lines, our staff protect the health and wellbeing of our people through dedication and compassionate care from the heart. Every day, our staff show up ready to address our ever-evolving health needs for our family, friends, and community.

Our healthy communities thank our health care heroes.

JOIN OUR TEAM AT ANTHC.ORG/CAREERS