Port MacKenzie Project Re-Energized With Federal Funds

The Alaska Railroad Corporation has been awarded $249 million by The Federal Railroad Administration to complete the Port MacKenzie Rail Extension. The grant will partially fund 32 miles of new rail, connecting Port MacKenzie to the Railroad’s main line at Houston.

Completing the project is estimated to cost $311 million. The additional $62 million is expected to be met through in-kind contributions from the Mat-Su Borough and cash contributions from the Alaska Railroad and the Alaska Industrial Development and Export Authority (AIDEA).

Supporters say the rail extension will improve coordination between maritime shipping and rail transportation of goods.  Representatives of the U.S. Department of Transportation stated that, because of Alaska’s rich natural resources, they feel the state should have stronger infrastructure to move those resources. 

The state has already spent $180 million on the project. Construction on the rail extension began in 2012 but was halted in 2017 due to Alaska state budget shortfalls, incomplete infrastructure and lack of immediate industrial support. 

Railroad officials say they expect to restart work in May and say the rail link could be completed as early as 2029. Upon completion, the extension will be owned, operated and maintained by the Alaska Railroad as part of the state’s overall rail network.