ak-wa connection 2012 the independents 2003computer system that gives customers real-time tracing,...

EXPLORING THE ALASKA-WASHINGTON CONNECTION. 2012

goinside:: AFF builds new freight

facility in Alaska

:: Diverse transportation sector spurs trade

:: King Tut exhibit tops Seattle attractions

The Alaska-Washington Connection 3

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CONTENTS

4 The Alaska-Washington Connection

MARY MACKCHIEF FINANCIAL OFFICER

CLINT LASLEYGENERAL MANAGER

MARTI REEVESPECIAL PUBLICATIONS DIRECTOR

BONNIE YONKERBUSINESS TO BUSINESS

DIRECTOR OF MARKETING

TOM KEARNEYPRODUCTION DIRECTOR

ROSE RAGSDALEEDITOR (CONTRACT)

STEVEN MERRITTCOPY EDITOR

HEATHER YATESBOOKKEEPER

SHANE LASLEYIT CHIEF

DEE CASHMANCIRCULATION REPRESENTATIVE

P.O. Box 231647, Anchorage, AK 99523-1647Ph 907.522.9469 | Fax 907.522.9583Email: [email protected] page: www.petroleumnews.com

Alaska-Washington Connection is an annual publication of Business to Business Magazines,

a division of Anchorage-based PetroleumNewspapers of Alaska LLC, which publishes

the weekly newspaper Petroleum News,online at www.petroleumnews.com

Alaska-Washington ConnectionReleased Aug. 28, 2012

To order additional copies of this magazine, [email protected]

To advertise in the 2013 edition of this magazine, contact Bonnie Yonker at [email protected] or call her in Seattle at 425.483.9705.

Printed at Alaska Printing in Anchorage, AK.

OVERVIEW6 Making a Difference

IN BRIEF18 Alaska Airlines wins industry service award

33 Fort Knox, Pogo match funds for center

34 Opti Staffing launches talent network

FEATURES7 Diverse sector keeps Alaska cargo moving

Dynamic industry that supplies Alaska with consumer goods

and construction materials adapts, grows with customers’

changing needs

9 Freight-forwarder designs new digs

American Fast Freights builds 30,000-square-foot Anchorage

facility with customers, energy efficiency and environment in

mind.

11 Freight spurs 2012 growth for railroad

Key federal funding allows unique carrier to continue pro-

gram of service enhancements while major projects boost

business traffic

Cover: A Bowhead Transport Company barge loaded with cargo leaves theport of Seattle, Washington for its voyage north to the remote villages ofArctic Alaska. Photo courtesy of Bowhead Transport Company, a subsidiaryof Ukpeaġvik Iñupiat Corporation (UIC).

13


CONTENTS

13 Bowhead sails toward future growth

Transportation company marks 30 years of providing Alaska

North Slope communities with oceangoing commercial freight

services.

15 Lynden family moves mountains of goods

Diverse organization serves customers, environment and

community across shipping, logistics spectrum in AK-WA trade

17 Alaska Air makes new cargo connections

Air freight carrier expands nationwide network, prepares to

upgrade and enhance service as Washington-Alaska shipping

volumes soar

20 Hydro projects promise affordable energy

Decade-long development process for remote facilities on

Susitna, Allen rivers will include multi-year construction projects.

23 Mining makes a difference in Alaska

Industry provides thousands of high-wage jobs, millions in

local spending to make substantial impact on 120

Alaska communities

28 Villages feel impact of Pebble outreach

Mine project’s $4 million in grants aids Southwest Alaska

communities in securing more than $26 million in state and

federal funds

29 Providers market new high-tech services

Rapidly changing industry offers Alaska businesses

numerous opportunities to maximize the potential of

telecommunications advances

35 Seattle: 50 years since world’s fair

King Tut exhibition tops anniversary offerings that include new

Ferris wheel, star-studded lineup of performing and cultural arts

41 Things to do in Seattle: Dramatic arts

The Emerald City offers visitors a potpourri of live entertainment,

including some of the nation’s finest theatrical experiences

Don’t miss another golden opportunity!

To advertise in next year’s Alaska-WashingtonConnection please contact Bonnie Yonker,

Marketing Director at:

Phone: 425.483.9705Email: [email protected]

14

33

I N T R O D U C T I O N

By Rose RagsdaleAlaska-Washington Connection

elcome to the “The Alaska-Washington Connection –Making a Difference.”

The dynamic relationshipbetween Alaska and Washington bornwith the advent of the Alaska Gold Rushin 1896 continues to serve the increas-ingly complex needs of the Last Frontier.More than 116 years later, the economic,social and political ties between thesetwo regions are more critical than everto their mutual well-being. Public invest-ment in infrastructure and alternativeenergy projects along with strong oil, gasand mining sectors continue to fuelAlaska’s economy and by extension, theeconomy of the Pacific Northwest.

2012 marks the fifth consecutive yearthat Petroleum News has published anannual portrait of the dynamic andenduring business relationship betweenAlaska and Washington.

This edition features a look at some ofthe outstanding transportation compa-nies that serve in Alaska-Washingtontrade. It also showcases companies thatnot only overcome the major challengesthey face in an uncertain economy, butalso work to make a difference in thelives of their clients, employees andneighbors. PNW Equipment andAmerican Fast Freight, for example, areWashington-based businesses that strivefor excellence in the services they pro-

vide to Alaskans, while going out of theirway to give back to the Alaska communi-ties where they do business. UdelhovenOilfield Systems Services Inc. and OptiStaffing are Alaska-based enterprises thathave taken theiruncommon commit-ment to providing qual-ity services andexpanded their opera-tions to WashingtonState and beyond.

Reinforcing theconnection

This year, telecommunications andmining are driving forces in Alaska’seconomy, bringing not only jobs, capitalinvestment and tax revenue to the statebut also business and community devel-opment initiatives that are being felteven in the remotest corners of the state.

Alaska Communications, AT&T andFutaris are expanding and improvingtheir products and services in sync withthe latest advancements in communica-tions technology.

The state’s six producing mines, RedDog near Kotzebue, Fort Knox nearFairbanks, Pogo near Delta, Greens Creekand Kensington near Juneau and NixonFork near McGrath, along with advancedmine projects such as Pebble inSouthwest Alaska, Donlin Creek in west-ern Alaska and Livengood in the Interior

underscore the growing importance ofthe mining sector to Alaska. Numerousexploration ventures and mining sup-port companies, including Taiga

Ventures, ModularTransportable HousingInc., Calista Corp.,Udelhoven OilfieldSystems Services Inc.and NC Machinery, addto the mix, creatingthousands of high-pay-ing jobs and providingmuch-needed revenueand civic support to

local communities across the state. This activity is also an important life-

line for the Puget Sound and for numer-ous Alaska and Washington transporta-tion companies such as Lynden Inc.,Bowhead Transport Co., Alaska AirCargo, Alaska Railroad Corp., AmericanFast Freight, Pacific Alaska Freightwaysand TransGroup Logistics.

Other Alaska businesses, includingAspen Hotels, Opti Staffing Group,Kenworth Alaska and Seekins Ford inFairbanks, have unique ties toWashington State that enhance theirability to service the Alaska marketplace.

Most of these companies also providegoods or services to Alaska’s oil and gas,retail, tourism, fishing, and service sec-tors. Yet perhaps their most effective andunheralded contributions are the manyways in which they give back to theircommunities. ◆

Alaska-Washington Connection2012: Making a Difference

W“It also showcases companiesthat not only overcome the

major challenges they face inan uncertain economy, but also

work to make a difference inthe lives of their clients,

employees and neighbors.”

Turbine blades were trucked up to the site of Golden Valley ElectricAssociation’s Eva Creek Wind generation project after being offloadedfrom the Alaska Railroad in Ferry, Alaska The blades were manufactured inLittle Rock, Ark. and transported to Seattle by modified railcars. Photocourtesy Courtesy of Golden Valley Electric Association


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©The Valdez Museum and Historical Archive


ransportation companies operatingin the Alaska-Washington trade are asdiverse as the shipping needs of

their customers. The sector boasts carri-ers such as Lynden Inc., the AlaskaRailroad Corp., Pacific Alaska Freightways,Alaska Air Cargo and Bowhead Transportand specialists like American Fast Freight,TransGroup Inc., Pacific NorthwestEquipment Inc. and Kenworth Alaska.

Staying power

Seattle-based Pacific Alaska Freightwayshas provided freight transportation servicesto Anchorage, Fairbanks, Kenai, Kodiak andSoutheast Alaska business and consumersfor more than a half-century. Rex andDorothy Sears began PAF in a small office

Diverse sector keeps Alaska cargo moving

Dynamic industry that supplies Alaska with consumer goods and construction materialsadapts, grows with customers’ changing needs

TThis newly constructed parlor car is perched atop Alaska Marine Lines’ containers in the Seattleyard. The car is built to mimic the vintage 1890s rolling stock original to the historic White Pass &Yukon Route Railroad when it began carrying miners from Skagway to the Klondike gold fields. It isone of three that Alaska Marine Lines barged from the Seattle dock to Skagway this spring to beused on the historic railroad, which is now a tourist attraction. Provided courtesy of Lynden(Copyright Lynden Incorporated 2012)


in the Coleman Building in Seattle in 1961. The family owned cor-poration recently celebrated its 50th anniversary.

Initially a consolidation business known as Pacific AlaskaForwarders, the company served many of the wholesale plumbingand electrical suppliers in Alaska, utilizing break bulk barge andshipping companies. Pacific Alaska has grown over the years tooffer an array of shipping services to a wide customer base thatincludes major national retail accounts, commercial fishing com-panies, construction companies, and oil and gas industry suppli-ers, while remaining a leader in electrical and plumbing wholesaledistributors shipping programs. In 2007, the company changed itsname to Pacific Alaska Freightways to better reflect current ser-vices.

Today, Pacific Alaska owns and staffs itsterminals in Washington and Alaska, includinglocations in Alaska’s major fishing communi-ties. It also operates a fleet of trucks and trail-ers in both states and uses a state-of-the-artcomputer system that gives customers real-time tracing, rating and tracking abilitiesalong with computerized loading and mani-festing, assuring clear and concise documen-tation.

In January, Southern Alaska Forwarding ofKodiak completed a friendly merger with Pacific Alaska thatretained the entire Southern Alaska team but expanded the firm’sservices to Anchorage and the Lower 48.

Readers of Logistics Management voted Pacific AlaskaFreightways a “2011 Western LTL Quest for Quality Winner,” (PAFscored higher than any other Alaskan Carrier), along with LyndenTransport and several others, and praised the company for notonly developing a sustainable business model, but also for beingthe best in servicing its particular region. The industry term, “LTL,”refers to less than a full truckload of cargo.

Logistics heavy hitter

New to Alaska is TransGroup Worldwide Logistics, a fast-grow-ing global juggernaut with a single mission: To bring tomorrow’ssupply chain technologies and best practices to business clientstoday. Since its formation in 1986, the company has grown tomore than 90 stations spanning five continents with a staff of1,200-plus logistics professionals and a global network of morethan 150 “Worldwide Alliance Partners.”

TransGroup attributes its success to an emphasis onclient/provider partnerships, global reach, powerful logistics sys-tems and easy-to-use software tools with programming support.The company also cites as an important factor the involvement inthe supply chain of everyone at the company, from shippingclerks to suppliers to C-level executives.

Transgroup noted on its website that its customers have votedit among the world’s top 100 supply chain partners according toSCB Magazine as well as a “Great 100 Logistics Company” byInbound Logistics magazine for seven consecutive years.

The company recently entered the Alaska market by openingTransGroup-ANC, a full-service freight forwarder and logisticsprovider located on Postmark Drive near Ted Stevens AnchorageInternational Airport.

The station is managed by Vanessa Keyes, regional director -Alaska. Keyes is an industry veteran with more than 30 years ofexperience. She began her career in 1976 with NorthernAirfreight in Seattle, before transferring to Anchorage in 1983. Veryfamiliar with and experienced in handling the unique challenges

of moving freight into, out of and within the state, Keyes said sheis excited to be offering air, ocean, FTL (full truckload), LTL andproject-related services to Alaska customers through TransGroup.

Container gurus

PNW specializes in leasing shipping containers to businessesin Washington State, Oregon, Alaska and Hawaii with a focus onproviding equipment that meets the needs of common carriers aswell as the unique requirements of clients such as Boeing, WasteManagement and the military. Founded by Terrence R. Thomas IIin 1980, PNW got its start serving the Alaska-Washington tradewith the containerization of the barge industry.

“We built Northland Services’ first 20-foot-by-8-foot-by-9.5-foot‘High Cube’ containers for Jim Hagen, (theowner) back in 1980,” said Mathew PatrickThomas, vice president of PNW. “Those werethe first 20-foot High Cube containers in theworld. Jim wanted to be able to ship cannedsalmon two pallets high. Thus, the 20-footHigh Cube was born!”

Thirty-two years later, the family-ownedbusiness is still offering its services fromheadquarters in Kent, Wash., and refining thedesigns of its containers for the Alaska mar-

ket.“A typical container on the international scene may be used

four times a year, but Alaska containers turn twice a month,”Thomas said. “Because of the harsh environment, they have to bebuilt stronger to handle the extreme environment in which theyoperate. For example, we build our containers with beefed-upfork pockets and extra-high bottom rails to facilitate fork lift oper-ations in the snow.”The company has developed a variety of intermodal equipmentfor its clients’ use in Alaska-Washington commerce, including the6,800-gallon ISO tank (UN Portable tank) container for whichPNW has a patent pending.

“We built this UN Portable tank with fork pockets at the bot-tom. You won’t see this type of tank container anywhere else inthe world,” Thomas said.

PNW also provides custom-built containers to customers. “Wepride ourselves on being problem solvers for people,” he said.“With all the different pieces of gear that we operate, we can for-mulate a plan to satisfy the shipping needs of our clients. Wehaven’t been stumped yet!”

Thomas added that the big news at PNW these days is that hisbrother, Lt. Col. Terry Thomas III, home from active duty in theU.S. Marine Corps, has joined the team operating the family busi-ness.

Full-service dealer

Kenworth Alaska is Alaska’s premier full-service Kenworthtruck dealer. As part of the Kenworth Northwest dealerships,owned by the Cymbaluk family, Kenworth Northwest andKenworth Alaska have been serving the transportation needs ofthe Northwest and Alaska since 1967.

With five dealerships in Washington and two in Alaska –Anchorage and Fairbanks – Kenworth offers professionally staffedparts, service, new and used trucks, and lease and rental depart-ments with capabilities to handle all makes of trucks and trailers.The company also maintains good inventory of new and usedclass 6, 7 and 8 trucks at all times.

Adds Kenworh Alaska: “If we don’t have it, we can find it!” ◆

In January, Southern AlaskaForwarding of Kodiak completed

a friendly merger with PacificAlaska that retained the entire

Southern Alaska team butexpanded the firm’s services toAnchorage and the Lower 48.


merican Fast Freight broke groundin mid-June on a new freight facili-ty adjacent to its current Alaska

headquarters off West InternationalAirport Road in Anchorage.

Designed by Gary Peterson ofGPARCH Architects of Anchorage, thenew structure is expected to propel thefreight forwarder to the forefront of tem-perature-sensitive shipping in the Alaska-Washington trade.

After 30 years of providing oceanfreight forwarding and consolidating ser-vices in Alaska, American Fast Freight isready to make the most of this opportu-nity. From its main facility in Fife, Wash.,the company facilitates the shipping ofmillions of pounds of cargo, primarilyretail goods, to Alaska every week. It pro-vides similar services in Hawaii, Guamand Puerto Rico.

In addition, through its affiliate com-

panies, American Fast Freight’s servicesinclude project logistics, trucking, ware-housing and distribution, cold storage, airfreight, and household goods moving andstorage.

“We ship everything from flat steel tofood,” said American Fast Freight VicePresident of Operations Joel Boyd duringa recent interview. “But our primaryfocus is food.”

Boyd said the company’s Alaska opera-tions have grown steadily, especially dur-ing the past 10 years. In 2000, AmericanFast Freight doubled the size of itsAnchorage facility by expanding the20,000 square-foot warehouse it current-ly occupies.

The new Anchorage warehouse, cur-rently under construction, will providemore than 50 percent more space atnearly 30,000 square feet than the exist-ing.

American Fast Freight employs 350workers, 135 in Alaska with 65 employ-

ees based in Anchorage. It also operatesfull-service terminals in Fairbanks andKenai and household goods moving andstorage and warehouse distribution busi-nesses in Anchorage in addition to thecross-dock facility where the new ware-house is being built.

“Cool” design

Watterson Construction of Anchoragewill oversee the construction, for which$6 million is tentatively budgeted.

The new space, which is scheduledfor completion by early November, willfeature a high-pile storage chill/freezearea with product-receiving doors locat-ed directly in the coolers. With the freez-er and cooler built inside the warehouse,American Fast Freight will be the onlyfreight forwarder that offers this featurein both Washington and Alaska. The com-pany built a new 100,000-square-footwarehouse in Washington State in 2010.

“This feature makes AFF the only

Freight-forwarder designs new digsAmerican Fast Freights builds 30,000-square-foot Anchorage facility with customers,

energy efficiency and environment in mind.

A

American Fast Freight broke ground in May on a new 30,000-square-foot freight facility adjacent to its current facility in Anchorage thatis expected to be completed by November. This illustration showsthe design by Gary Peterson of GPARCH Architects which features ahigh-pile storage chill/freeze area with product-receiving doors locat-ed directly in the coolers. Photo courtesy of American Fast Freight


freight forwarder in the Alaska market which receives tempera-ture-sensitive product directly into its correct temperature envi-ronment on both sides of the water,” said Boyd.

Known as “cool-chain compliant,” the feature represents thevery highest quality industry standards, something for whichAmerican Fast Freight continually strives, according to companyspokeswoman Christina Hallock.

In fact, the American Institute of Baking (AIB) International,which audits the company’s freight-forwarding warehouses inFife and Anchorage annually has consis-tently awarded “Superior” ratings (thehighest possible) to both facilities forthe past six years, Hallock said.

Originally created in 1919 to applysciences to baking, AIB is now consid-ered the food industry’s premier audit-ing organization.

Increased efficiency

The new Anchorage warehouse alsowill feature a “90-foot clear span,” meaning it will have a com-pletely open floor built without the support poles typical ofmost industrial construction. American Fast Freight opted toeliminate the poles because they can often create obstacles forbusy forklift traffic.

“We will have increased efficiency by 75 percent by havinga clear-span roof,” Boyd said, observing that the company canonly use about 17,000 square feet of its (existing) warehousebecause of support poles.

The warehouse design also features 17 additional doors,bringing to 49 the total number of portals in the building

besides two drive-down ramps with doors and a covered backdock.

“With more doors, more space and no poles, we will havesignificant efficiency improvement,” Boyd said. “We are genuine-ly excited about expanding our capabilities to better supportthe needs of our customers.”

American Fast Freight expects to begin operations from thenew facility in November. The company will continue to utilizethe existing facility for extra storage and as a project freight-

staging area.It also will house certain other

facets of the business, including bypassmail, Boyd said.

Environment-friendly features

In keeping with a company-widemove to energy-saving and environ-ment-friendly operations, American FastFreight also incorporated skylights intothe roof design of the new Anchorage

warehouse and is installing high-efficiency, high-bay fluorescentlights and purchasing 7 new all-electric forklifts instead of onesfueled by propane.

Boyd said the company also upgraded the R-value in theoverall structure and is installing a black roof membranedesigned to absorb more heat from the sun. In addition, thecompany is switching to high-efficiency unit heaters, rather thatcontinuing to use the much less efficient radiant heat.

Lastly, American Fast Freight made extensive upgrades to itstruck fleet, purchasing five new 2012 model freightliners, andthree new line trucks designed to pull double trailers.

Employee-owned company

American Fast Freight is a relatively rare bird in the corpo-rate world, one of about 11,300 employee-owned enterprisesout of more than 6 million companies nationwide. Though itcannot respond to individual employee requests for support,the company makes a point of stepping up to make a differ-ence as a corporate citizen by giving back to the Alaska com-munities that it serves.

By sponsoring community benefits, organizing charitable dri-ves and other events, and providing in-kind services, the freightforwarder supports numerous organizations, including the FoodBank of Alaska and especially the Kenai Peninsula Food Bank;the Shriners’ Vidalia Onions program, Daffodil Day for theAmerican Cancer Society, the Associated General Contractors ofAlaska, Associated Builders and Contractors, Inc., Allied Builders,Girls Little League in Fairbanks, and many others in Alaska.

In Washington, American Fast Freight sponsors severalChristmas gift collection programs for children as well as fooddrives for FISH Food Banks of Pierce County, Humane Societyof Pierce and King Counties and others. In May, the companywon the “Silver Spoon Award” from the Emergency FoodNetwork “Silver Spoon Award” for its “substantial collectioneffort” that resulted from a friendly competition food drivebetween the freight forwarder and TOTE in 2011. Collectionsby both companies totaled 16,187 pounds and $2,608, theequivalent of 13,988 meals, or enough to feed a family of fourfor a little over three years. American Fast Freight collected10,477 pounds of food. ◆

“With more doors, more space and nopoles, we will have significant efficiencyimprovement. We are genuinely excited

about expanding our capabilities to bettersupport the needs of our customers.” – Joel

Boyd, vice president of operations,American Fast Freight

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fter posting solid growth in itsfreight business in 2011, the AlaskaRailroad Corp. is reporting contin-

ued growth this year. A vital player inAlaska-Washington commerce, the rail-road has served the passenger and freighttransportation needs of Alaskans since its470-mile-long track from Seward toFairbanks was completed in 1923.

In 2011, the railroad had another prof-itable year, reporting net income of $13.4million on revenue of $185.7 million inMarch. Freight train revenue, whichaccounts for 70 percent of the railroad’sbusiness, increased 12.7 percent last year,thanks to expanded coal exports and a 3percent volume increase in interline(barge-rail) railcar traffic from Seattle and

Canada. Passenger revenue also climbed 7.7

percent in 2011 as ridership grew from405,000 in 2010 to 413,000 in 2011. Inaddition, the railroad corporation’s realestate leasing and permitting businessprovided net income of $8.5 million.

Though it does not currently have adirect, land-based connection with otherrailroad lines on the North American net-work, the railroad is able to move cargoto Alaska from anywhere in the Lower 48and Canada via rail barges operated bythe Alaska Railroad-owned Alaska RailMarine, and the CN Rail-owned AquaTrain that sail regularly between the Portof Whittier and Seattle and Seattle’sHarbor Island in Puget Sound, and PrinceRupert, B.C., respectively.

“We can move pipe, for example, from

Texas across the United States to Seattlewhere it is transferred to our rail barge,”said Dale Wade, Alaska Railroad’s vicepresident of business development. “Wecan move very large and bulk, heavycommodities very efficiently and veryeconomically.”

Much of the freight traffic was tankcars moving petroleum products fromthe Flint Hills Refinery in North Pole tostorage tanks at Ship Creek in Anchoragefor distribution in Southcentral Alaska ahopper cars moving coal from UsibelliCoal Mines Inc.’s operations in Healy totidewater in Seward where it was loadedonto oceangoing barges for shipment toAsia and South America.

Key federal funding

The railroad expects to receive $31

Freight spurs 2012 growth for railroad

Key federal funding allows unique carrier to continue program of service enhancementswhile major projects boost business traffic

A

Left and top right: The Alaska Railroad purchased these new alu-minum hoppers last fall to haul coal. Here, they are movingthrough the railroad’s Anchorage yard. Bottom right: An AlaskaRailroad coal train moves through the Ship Creek area. Photocourtesy David Blazejewski / Courtesy of the Alaska Railroad

million annually in Federal TransitAuthority funding under provisions ofH.R. 4348, a new 28-month Highway Billthat the U.S. House of Representativesoverwhelmingly passed by a vote of 373to 52 June 29. The legislation is said to becritically important because it will fundfederal highway, transit and highway safe-ty programs nationwide through the endof fiscal year 2014.

“A great deal of thanks goes to Cong.(Don) Young and his staff for their hardwork to retain critical funding for theAlaska Railroad in the transportation bill,”Alaska Railroad President and CEO ChrisAadnesen said, after the bill passed theHouse.

The federal funding will cover the rail-

road’s debt payments and fund continuedtrack improvements, Wade said.

“We are focused on customer serviceand expanding business. We think greatthings are ahead for the State of Alaskaand the Alaska Railroad,” he observed.

Enhancements and upgrades

In early 2011, the railroad added 70new aluminum hopper cars, whichincreased capacity and efficiency.

“Our freight traffic is up another 4.8percent year to date,” Wade said in lateJune.

While owned by the State of Alaskasince 1985, the railroad receives no statefunds to support operations, and its prof-its are used to fund capital investments,

match federal dollars, and support workforce programs.

The railroad has focused recently onenhancing and improving its services byadding new sidings for greater flexibilityand efficiency of operations and byexpanding its welded rail program.

A 10,500-foot-long rail siding wasadded earlier this year to support a newgravel operation in Kashwitna, Alaska.

Rail sidings allow the Alaska Railroad,which operates only one 470-mile-longtrack between Seward and Fairbanks, topull one train aside and allow a fasterone to pass.

Welded rails allow faster, smootherrides as well as increased speeds. Thisbenefits the railroad’s passenger servicesin addition to its freight business.

Boost in freight shipments

Though Alaska is a relatively stablemarket with some peaks and valleys,Wade said the railroad’s business thisyear has benefited from orders to movespecialized equipment for several largeprojects.

These include Golden Valley ElectricAssociation’s $90 million EVA Creekwindmill generation project, whichrequired the railroad to transport compo-nents for 12 wind turbines, or 36 towerblades – each 148 feet long and coveringthree railcars – from Anchorage to Healy.

The railroad is also continuing to ful-fill its mandate to support statewide eco-nomic development with strong partner-ships that moved two major rail exten-sion projects from the environmentalphase into design and construction. In2011, the $188 million Northern RailExtension, supported by state and federalfunding, has begun construction onPhase One, a bridge over the TananaRiver at Salcha; and in SouthcentralAlaska, the $50 million-plus PortMacKenzie Rail Extension, funded by theState of Alaska, began final design, permit-ting, and land acquisition. Both projectshold tremendous potential for new com-merce.

“Maintaining a solid financial footingand investing intelligently in our infra-structure are key to keeping our promis-es to the people of Alaska,” Aadnesensaid. “This new year is no different. TheAlaska Railroad will continue to be fiscalstewards and to advance projects andprograms that benefit Alaskans.” ◆

The Alaska Railroad transported wind turbine blades and other components for 12 wind turbinesfrom Whittier to Anchorage June 21 for Golden Valley Electric Association’s $90 million EVA Creekwindmill generation project. Top: Specially constructed cars carrying the wind turbine parts movethrough the Whittier rail yard. Bottom: A train moves 36 tower blades – each 148 feet long and cov-ering three railcars – and other wind turbine parts along the track between Whittier and Anchorage.Photo courtesy David Blazejewski / Courtesy of the Alaska Railroad


owhead Transport Co. is celebrating its 30th year of pro-viding marine transportation services in the Alaska-Washington corridor and preparing for new opportunitiesin construction, oil exploration and infrastructure devel-

opment in the remote Arctic.The Alaska Native-owned company is based in Seattle,

though its business is focused thousands of miles to the northwhere it serves many of Alaska’s arctic communities. Bowheadcoordinates and carries out an annual sealift of freight toAlaska’s North Slope and is the only provider of regularlyscheduled barge services to and between the communities ofBarrow, Point Hope, Point Lay, Wainwright, Nuiqsut, PrudhoeBay and Kaktovik.

During the brief open-water season in the Arctic, the compa-ny also carries out a yearly backhaul of goods to the PugetSound and beyond.

The Alaska Native Claims Settlement Act and the creation ofthe North Slope Borough provided the impetus for the forma-tion of Bowhead in 1982 by Ukpeaġvik Iñupiat Corp. (UIC), theAlaska Native village corporation for Barrow. The transportationcompany was created in response to a need for scheduled com-mercial village freight services in Alaska’s Far North.

In a typical year, Bowhead can expect to haul 6,000 to10,000 short tons of freight northbound and another 5,000tons southbound. The company transports construction materi-als, heavy equipment and general cargo throughout the watersof the Chukchi and Beaufort seas.

“In a big year, we move 18,000-plus tons of freight,” saidBowhead General Manager Jim Dwight in a recent interview.

Bowhead barges lateral freight between the villages and callsat other locations on the Arctic Coast to meet the needs of gov-ernment agency, military and oil and gas industry clients.

Service and growth

In 2012 Bowhead’s parent , UIC, formed the UIC MarineServices division, a holding company for several subsidiariesincluding Bowhead Transport that provide marine transporta-tion and other support services in the Lower 48 and on theNorth Slope to both commercial and government entities.These include remote-site barge service to Arctic coastal vil-lages; operation of company-owned specialized vessels for shal-low draft lighterage work, providing crew members and cus-tomized vessels for research, training and maintenance for fed-eral clients.

Bowhead’s 2011 voyage north was precision-loaded anddeparted Seattle on schedule to make its North Slope deliveriesduring the open-water season between July and October.

The company provides special shareholder services includ-ing reduced rates and offers door-to-door freight service to thehomes and businesses of its customers in all of the North Slopevillages it serves.

“It might not seem like much, but actually, it is a great ser-vice for our customers to have their freight shipments consoli-dated in Seattle, and delivered to their door,” Dwight said.

Bowhead also won a contract in 2011 with CarlileTransportation to provide some of the marine transportationand logistics support for the North Slope Borough Barrow GasField Expansion Project. The services included lightering the

Bowhead sails toward future growthTransportation company marks 30 years of providing Alaska North Slope

communities with oceangoing commercial freight services.


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Bowhead Transport Co.’s Nunaniq ferries a load of cargo the lasthalf mile from the company’s line haul barge to the shore atBarrow. Photo courtesy of Bowhead Transport Co.

Kuukpik 5 drilling rig, along with pipe, andmud from the line haul barge at Barrow,and lightering more than 50,000 squarefeet of project equipment and componentsbetween Oliktok Point and Barrow withinthe project’s critical weather window.

Other 2011 highlights included a pro-posed plan for the backhaul and recyclingof scrap metal in Barrow, as well as provid-ing transportation services to Northlandfor contaminated dirt from the formerNortheast Cape Air Force Station at SaintLawrence Island for disposal in the Lower48.

In addition to its regularly scheduledbarge service to the Arctic, Bowhead madestops at Cape Lisburne; Tin City, located atthe mouth of Cape Creek on the BeringSea coast; and Nome to backhaul materialsunder contract.

Supporting new, ongoing projects

Bowhead marked its 30th year thisspring by moving into a new building, theWest Seattle Corporate Center located at4025 Delridge Way in Seattle, which is nearthe Port of Seattle just west of the SpokaneStreet Bridge.

The company is also paving the way fornew growth related to a resurgence of oilexploration activity on the North Slope.

“We likely will add additional 8(a) andcommercial companies to the divisionportfolio,” said Dwight. “And we are look-ing to add additional vessels over the next

few years.”Bowhead currently owns a small fleet

of lighterage vessels, and charters oceango-ing vessels as needed.

Dwight said a substantial amount of theinvestment the company plans in new ves-sels is related to the new oil explorationand production activity.

This year Bowhead won the contract tomove the drill rig from Barrow back toPrudhoe Bay. The company also will bargeequipment and materials for a $40 millionairport relocation project underway inKaktovik and final freight required to com-plete construction of the $85 million mul-tiyear Barrow Replacement Hospital pro-ject.

The existing Kaktovik airport is situatedon a gravel spit exposed to water on threesides northeast of Barter Island betweenthe Okpilak and Jago rivers on theBeaufort Sea and is periodically submergedby Arctic storms. A new flood-resistantfacility is being built in the center of BarterIsland at a site located above the 100-yearelevation that is consistent with theFederal Aviation Administration’s missionand design standards. The project includesa new 4,500-foot-by-100-foot runway, taxi-way, apron, access road, and airport light-ing system. A new access road, landfill andsewage lagoon also will be constructedand the existing landfill and sewage lagoonwill be closed and the land used for theapron area. The construction is planned in

two phases: the first to begin in fiscal 2012and the second in fiscal 2013.

Designed by RIM Architects ofAnchorage, the 100,000-square-foot hospi-tal in Barrow is the largest and most signifi-cant construction project in the Arcticcommunity in the past 30 years. A jointventure partnership of UIC Constructionand ASRC SKW Eskimos Inc. is managingthe project. Underway since August 2010,the construction is scheduled for comple-tion January 2013.

Bowhead will transport equipment andsupplies to, and from, several U.S. Air Forceremediation sites this year and next to sup-port contractors removing contaminatedmaterials for disposal outside of Alaska,Dwight said.

Making a difference

As an Alaska Native owned company,Bowhead makes a difference every day inNorth Slope communities by providing jobopportunities and job training for UICshareholders. Through UIC ShareholderServices, Bowhead also participates as oneof 40 different profit centers in providingtraining and apprenticeships for theregion’s young people.

Bowhead also provides underwritingsupport for Alaska Public Radio and in-kindfreight services for other nonprofit organi-zations that benefit UIC shareholdersacross the North Slope. ◆

Two Bowhead vessels work in tandemto offload cargo from the barge atBarrow. Photo courtesy of BowheadTransport Co.

The Greta Akpik, a Bowhead Transport Co. shallow draft landing craft, ferries cargo tothe beach at Kaktovik. Photo courtesy of Bowhead Transport Co.


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he Lynden family of companies isone of the premiere transportationspecialists providing services in

Alaska-Washington commerce. With thecombined capabilities of trucks, oceanbarges, rail barges, air freight, internation-al ocean forwarding, customs brokerage,remote site construction and multi-modallogistics services, Lynden meets numer-ous transportation needs of Alaska-Washington businesses.

Weathering the winter

The organization’s ability to thrive inextreme environments served the carrierwell during the recent record-settingwinter.

“Prudhoe Bay doesn’t get a lot ofsnow, maybe a foot or two a year, but the

little bit we do get doesn’t melt for sevenmonths,” said John Jansen, TerminalManager at Lynden Transport on theNorth Slope. “It just blows back and forthall winter causing extreme whiteout con-ditions, the strongest of which halts alloutdoor operations on the oilfield.”

The winter of 2011-2012 was so bru-tal that even ice road construction wasaffected.

“At 30 below zero, the water theypour to create the ice roads freezes sofast it becomes difficult to form a smoothsurface. It’s been too cold this winter tomake good ice,” Bering Marine CaptainJack Rasmussen said earlier this year.

“It’s also been tough on the hover-craft. We’ve had some 68-below days thatbecame 80-below with the wind chill.Our heaters and thermometers stopworking in the hangar,” he recalled

Though trucks were left running

around the clock, freezing braking sys-tems and valves, and stiff and tackygrease on the fifth wheels made hookingup trailers 20 to 30 times a day a particu-larly cumbersome, time-consuming andhazardous undertaking.

“It sometimes takes a blowtorch towarm up the landing gear cranks,”observed Jansen.

Conditions became so severe at timesthat the carrier’s oilfield customersenforced safety shutdowns for allhydraulic powered equipment used out-doors such as forklifts and loaders. Whenthat occurred, Lynden’s Prudhoe Bayteam adapted, organizing and strippingloads to build one-stop and two-stopdrops during the downtime that theycould quickly deliver whenever tempera-tures rose enough for operations toresume.

Lynden family moves mountains of goods

Diverse organization serves customers, environment and community across shipping,logistics spectrum in Alaska-Washington trade

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Teaming up on transport

Four Lynden companies – Alaska Marine Lines, CanadianLynden Transport, LTI, Inc. and Alaska Marine Trucking – com-bine their efforts to transport lead and zinc ore concentratefrom the Yukon Territory to Washington via Alaska before deliv-ering it to a smelter in southern British Columbia.

The ore is carried in 16-ton pots moved three at a time on aB-train chassis from the Yukon to Alaska at a total weight of170,000 pounds. In Washington and British Columbia they arecarried two at a time for a total weight of 105,000 pounds.

Canadian Lynden Transport in Whitehorse trucks the oreconcentrate 400 miles from the Bellekeno Mine in centralYukon to Skagway, Alaska, where it is loaded onto Alaska MarineLines barges by Alaska Marine Trucking. Once the barges reachSeattle, LTI Inc. picks up the huge ore pots and transports themto Trail, B.C.

“This has been an interesting project for us,” said LyndenRegional Manager Vance Jansen. “It’s a good example of the effi-ciencies that come from multiple Lynden companies workingtogether.” Lynden International also helps out by filing customsentries.

Other specialty assignments tackled recently by Lyndencompanies include transporting more than 160 loads of conta-minated soil via cat train and then trucked from Umiat, Alaskato Franklin Bluffs near Prudhoe Bay and then to Anchorage.

For two years prior to the project, Lynden also trucked the

custom-built “cat” train itself to Prudhoe Bay.

Protecting the environment

An industry leader in reducing their carbon footprint,Lynden has made recent design changes in its truck fleet thathave improved fuel economy by 23 percent.

“We were working ‘green’ before it became so popular,” saidLynden Inc. Chief Operating Officer Alex McKallor. “From innova-tive containers to equipment that requires less fuel and reducesharmful pollutants, we are constantly searching for ways to saveenergy and use resources efficiently. Our culture of innovationand efficiency is in harmony with our commitment to reducewaste and be a model of environmental stewardship.”

Lynden was the first transportation company in Alaska to gainSmartWay certification from the U.S. Environmental ProtectionAgency and to earn the state’s Green Star Award.

Helping the community

Thousands of cases of Girl Scout cookies arrive on pallets atAlaska Marine Lines’ warehouses in Seattle and Southeast Alaskaeach spring ready to be sorted for distribution to local troops.Alaska Marine Lines donates warehouse space, forklifts and volun-teers to the Girl Scouts project.

The project is just one of numerous ways that Lynden compa-nies lend a hand in the communities they serve throughout Alaskaand Washington. ◆


Lynden Inc. made recent design changes in its truck fleet that has improved fuel economy by 23 percent. Lynden’s Brown Line LLC, for example, introducedan aerodynamic tractor-trailer design with side skirts and roof fairings that improved fuel economy. The design, plus other changes such as driver training,reducing speeds and new engines and tires, has helped Brown Line cut fuel consumption and emissions by nearly 25 percent. Photo courtesy of Lynden Inc.


laska Air Cargo, which operates the most extensive aircargo operation of any passenger airline on the U.S. WestCoast, reports new growth and upgrades aimed at better

serving its customers, especially freight forwarders and businessshippers in the Alaska-Washington trade.

The operation is a division of Alaska Airlines, which traces itsroots back 80 years to 1932, when Linious “Mac” McGee ofMcGee Airways started flying his three-seat Stinson betweenAnchorage and Bristol Bay. A merger with Star Air Service in1934 created the largest airline in Alaska, which eventuallybecame Alaska Airlines.

Today, the combined team of Alaska Air Group CargoServices covers more than 85 cities from Puerto Vallarta,Mexico, to Barrow, Alaska, and between Boston and the HawaiiIslands and beyond.

Alaska Air Cargo, itself, transports more than 120 millionpounds of cargo annually, including seafood, mail and freight.Much of Alaska Airlines’ cargo operation supports moving goodsbetween the state of Alaska and the Lower 48 states.

Southbound, much of the product is fresh Alaska seafood.The airline transports more than 25 million pounds of freshAlaska seafood each year from fishing towns throughout Alaskato markets and restaurants across the country.

Northbound, the airline transports a range of products,including U.S. Postal Service mail, essential supplies for remoteAlaska communities and personal packages. Alaska Airlines oper-ates both all-cargo and combi (part cargo/part passenger) air-craft on these routes.

During the first half of 2012, shipping volumes on Alaska-Washington routes increased significantly.

“It’s shaping up to be a very good year for Alaska Air Cargo,”Managing Director Torque Zubeck said in late June.

“So far, volumes between Seattle and Alaska have been good.Salmon shipments are up in Alaska, and it looks like Shell Oil is

going to be drilling in the Chukchi Sea. A lot of activity is asso-ciated with that, and we’ve already seen volumes picking up.That’s a positive sign,” said Zubeck in an interview.

Alaska Air Cargo is also experiencing higher shipping vol-umes to the North Slope reflecting increased activity in theregion’s oilfields. “We’re seeing lots of cargo moving throughour warehouse to the North Slope, and we’ve even hadinquiries about our charter freight services,” Zubeck reported.

System-wide growth

Meanwhile, Alaska Airlines is continuing to add new destina-tions to its regularly scheduled routes across the United Statesand thereby opening up new opportunities for air cargo cus-tomers.

“Just this year, we added new service from Seattle to KansasCity in March and to Philadelphia in June, and in September, wewill begin new flights to San Antonio,” Zubeck said. Alaska alsorerouted its Seattle-Miami flights to Fort Lauderdale, a nearbydestination with an airport that should provide passengers andcargo customer in south Florida with more efficient transittimes.

“We’ve also been growing our Hawaii franchise,” Zubeck

Alaska Air makes new cargo connections

Air freight carrier expands nationwide network, prepares to upgrade and enhance service as Washington-Alaska shipping volumes soar


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Alaska Air Cargo has invested $100 million in improving its cargo fleet.This Boeing 737-400 combi aircraft, for example, is designed to trans-port both passengers and cargo. Photo courtesy of Alaska Air Group Inc.

said. Unlike many other airlines that offer service from primari-ly Los Angeles to Honolulu with connections to the otherislands, “we have flights to all four islands out of Seattle.”

“Our freight forwarders and other cargo customers likethat,” he said.

Alaska Airlines also recently added weekly seasonal flights,beginning in November, directly from Anchorage to Kona, theBig Island, to its regular Seattle-Honolulu service, along withother seasonal flights to Maui, including a weekly flight fromBellingham, Wash.

“We serve the smaller markets for people who need to shiphigh-priority items. For what folks need, it seems to be work-ing,” he observed.

Upgrades and improvements

As part of its commitment to serving Alaskans’ cargo andpassenger needs, the airline has invested $100 million to mod-ernize and increase the capacity of its cargo fleet. Alaska AirCargo retrofitted six Boeing 737-400 cargo aircraft to its fleet.These aircraft, one freighter and five combis, replaced the carri-er’s previous 737-200 cargo fleet.

Alaska Air Cargo recently installed a new ULD system inAnchorage, bringing to three the number of systems it uses toload and unload cargo at Ted Stevens Anchorage InternationalAirport. A “ULD,” also called an “Igloo,” is a standardized aircraftcontainer that can hold up to 6,000 pounds of cargo.

“The third ULD system increased our capacity to efficientlymove cargo on and off of our aircraft,” Zubeck said.

The airline is now planning to remodel and enhance itscargo-handling system in Seattle by merging separate customerservice counters for outbound and inbound cargo into onewith a single lobby.

“We believe it will be more efficient for our customers tohave a single pickup and drop-off location,” explained Zubeck.

Alaska Airlines also plans to re-evaluate its aircraft needs dur-ing the next six months. Currently, the airline operates 117 air-craft, of which about 20 percent, or some 23-24 airplanes, serve

Alaska destinations.“Hopefully by the middle of next year, we will introduce the

737-900ER, a larger aircraft that can carry 181 passengers andhas more cargo space,” Zubeck said.

The range of the larger airplane is well-suited for transconti-nental flights and Hawaii flights, he added. ◆

INBRIEFAlaska Airlines wins industry serviceaward

Air Transport World magazine has honored AlaskaAirlines with the Joseph S. Murphy Industry Service Awardfor its outstanding public and community service. TheSeattle-based carrier is the only North American airline tobe honored by the magazine and the first U.S. carrier towin the service award. “The Joseph S. Murphy Award hon-ors an individual or organization that makes the airlineindustry a better place,” said Geoffrey Thomas, the maga-zine’s chief editor. “Alaska Airlines, through its numerousenvironmental and corporate-giving initiatives, has benefit-ed the people and communities in which it serves, as wellas has brought credit to the industry as a whole.” The maga-zine cited Alaska Airlines’ industry service record and tech-nology and customer innovations, such as its work on satel-lite-based navigation procedures that are part of the FederalAviation Administration’s NextGen air traffic control sys-tem. Air Transport World also noted that Alaska’s employeesvolunteered more than 8,000 hours in 2010, and that Alaskagave $5.6 million to organizations including the Make-A-Wish Foundation, Angel Flight West, Special Olympics andShriners Hospital for Children. Other 2011 winners includeAir New Zealand (Airline of the Year), AirAsia (Value Airlineof the Year); QantasLink (Regional Airline of the Year); AllNippon Airways (Airline Technology Leadership); formerIATA DG Giovanni Bisignani (Decade of Excellence); EtihadAirways (Passenger Service); and Transaero Airlines. The WallStreet Journal also ranked Alaska Airlines No. 1 in opera-tional performance for 2011 in its annual “Middle Seat”scorecard.

Alaska Air Cargo retrofitted six Boeing 737-400 cargo aircraft to itsfleet, one freighter and five combis, to replace its previous 737-200cargo fleet. The interior of this airplane shows expanded cargo spaceflanked by passenger seats in the forward compartment. Photo cour-tesy of Alaska Air Group Inc.

This “ULD,” also called an “Igloo,” is a standardized aircraft containerthat can hold up to 6,000 pounds of cargo. It is being loaded onto anAlaska Air Cargo jet. Photo courtesy of Alaska Air Group Inc.



everal projects aimed at helpingAlaskans meet their goal of switchingto renewable energy sources for half

of their energy needs by 2025 are makingsignificant progress toward becoming real-ity.

The Susitna-Watana Hydroelectric andChikuminuk Lake Hydroelectric projectswould largely transform the energy-con-sumption landscape in the Alaska Railbeltand in remote Western Alaska, respectively,while the Eva Creek Wind Project willreduce diesel consumption in the Interiorand save Fairbanks power users millionsof dollars.

The Susitna-Watana project would belocated on the Susitna River about 90river miles north of Talkeetna nearCantwell in Matanuska-Susitna Borough,and the Chikuminuk Lake project wouldbe located at the northern end of WoodTikchik State Park in the Yukon DeltaNational Wildlife Refuge about 118 milessoutheast of the community of Bethel inthe Yukon-Kuskokwim region. The EvaCreek project, currently under construc-tion, is located in Ferry, Alaska, about 14miles from Healy.

Big goal for large project

As currently envisioned, the Susitna-Watana Hydroelectric project wouldinclude a roughly 700-foot-tall dam with a20,000 acre, 39-mile long reservoir. Thetype and final height of the dam construc-tion are still being evaluated as part ofengineering feasibility studies.

Preliminary studies have indicated thesurface powerhouse should have threegenerating units with an installed capacityof 600 megawatts. The powerhouse, damand related facilities would be linked bytransmission lines to the Railbelt Intertie.

The intertie, a 170-mile, 345kV trans-mission line that currently runs betweenWillow and Healy, allows Golden ValleyElectric Association of Fairbanks to pur-chase electricity produced less expensive-ly with lower cost energy such as natural

gas and hydroelectric from utilities inAnchorage and the Kenai Peninsula.Fairbanks consumers save an estimated $7million a year.

The Susitna-Watana project would pro-duce nearly 50 percent of the electricaldemand of railbelt communities, or anannual average of 2.6 gigawatt hours.Currently estimated to cost about $4.5 bil-lion, the project’s construction will takefive years and an operating license isobtained by 2017, it could produce poweras early as 2022.

In March, the Federal EnergyRegulatory Commission granted to theAlaska Energy Authority a preliminary per-mit to study the feasibility of the project,including studying its potential impact onthe environment.

Critical goal for smaller project

The hydroelectric project atChikuminuk Lake would be much smallerthan Susitna-Watana, with a 128-feet-highconcrete-faced rockfill dam at the AllenRiver discharge from the lake. The surfacepowerhouse would contain two generat-

ing units with combined capacity of 13.4MW with estimated annual energy pro-duction under average water conditions of88.7 GWh.

The facility, estimated to cost about$507 million, would provide most of theelectrical power required for Bethel andthe 13 surrounding communitiesof Akiachak, Akiak, Kwethluk, Tuluksak,Oscarville, Napakiak, Napaskiak,Atmautluak, Kasigluk, Nunapitchuk,Tuntutuliak, Eek and Quinhagak.

“This project has the potential to posi-tively change the cost and availability ofenergy in the Calista region for both fami-lies and businesses. Rural Alaska can nolonger sustain the diesel fuel required byantiquated power systems,” said NuvistaExecutive Director Elaine “Chicky” Brown.“Finding a regional alternative to dieselfuel for electricity would displace over 5million gallons of diesel per year bargedinto Bethel alone, and reduce 55,000 tonsof carbon dioxide.”

Nuvista Light and Electric Cooperative,which is spearheading the project is anon-profit member organization com-

Hydro projects promise affordable energy

Decade-long development process for remote facilities on Susitna, Allen rivers will include multi-year construction projects.

S CChikuminuk Lake

Bethel

Anchorage

Fairbanks

Bethel

VICINITY MAP

Transmission Line

Dillingham

0 25 50 75 100 miles

PROJECT LOCATIONExhibit 3.1Exhibit 3.1

ChikuminukChikuminuk LakeLakePROJECT LOCATION Chikuminuk Chikuminuk LakeLakeHydroelectric Hydroelectric Project Project

PROJECTPROJECT LOCATIONLOCATION

40 Years...Thanks to our customers and employees, we’ve been privileged to serve Alaska’s oil industry for over 40 years. Our goal is to build a company that provides a service or builds a project to the complete satisfaction of its customers.

We shall strive to be number one in reputation with our customers and our employees.

We must perform safely.

We must provide quality performance.

We must make a profit.

We shall share our successes and profits with our employees.

Work can be taken away from us in many ways, but our reputation is ours to lose.

Our reputation is the key that will open doors to new business in the future.

prised of Calista Corp., Association ofVillage Council Presidents, AVCP RuralHousing Authority, Yukon KuskokwimHealth Corp., Alaska Village ElectricCooperative, Middle Kuskokwim Electric,Chaninik Wind and Lower Yukon.

The cooperative’s mission is toimprove the energy economics in ruralAlaska by creating affordable and sustain-able energy generation and transmissioninfrastructure in the Yukon-Kuskokwimregion.

The Chikuminuk Lake project, thecooperative’s most ambitious project todate, got a boost from a $10 million appro-priation by the Alaska Legislature in 2011.The funding allows Nuvista to performdetailed field work in geotechnical, envi-ronmental, preliminary engineering, licens-ing, and public meetings related to thehydropower project, which could be thefirst of its kind anywhere in SouthwestAlaska.

Another $1.5 million in state fundingthis year will allow Nuvista to study ser-vices consolidation in the Yukon-Kuskokwim region. “We are looking atcluster community dynamics, how to con-nect the communities together with possi-ble roads and power interties and possiblybetter hospital service,” Brown said.

Unlike the railbelt where electricitycosts about 14 cents per kilowatt perhour, power costs in the Yukon-Kuskokwim are substantially higher, cur-rently averaging 50 cents to $1 per kwh.Providing hydroelectric power to all 14

communities has the potential to displaceup to 20 million gallons of diesel averag-ing $7-$12 per gallon annually.

In addition, hydropower would reduceor even eliminate the barging of dieselupriver, which is a significant environmen-

After nearly a decade of wind studies, Golden Valley Electric Association isbuilding the 25-megawatt Eva Creek Wind generation project this summer.The cooperative shipped blades and other components of 12 wind tur-bines to the project site near Ferry, Alaska by rail and truck. The turbines,measuring about 410 feet from base to blade, are being erected at the siteand construction is expected to be completed Aug. 31. The wind farm isscheduled to begin generating power in October. Photo courtesy ofGolden Valley Electric Association


MARINE CARGO TRANSPORTATION ̶BARGE SERVICES̶OILFIELD SERVICES & SUPPORT LOGISTICS SUPPORT̶VESSEL LEASING & OPERATIONS̶BOWHEAD.COM

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tal hazard that threatens all-important sub-sistence fishing in the Yukon andKuskokwim rivers.

In February Nuvista signed a contractwith Hatch Engineering for theChikuminuk Lake project, and the agree-ment requires the use of Alaska-based sub-contractors on the project. Nuvista alsofiled an application March 1with FERC fora preliminary permit. Since then, the coop-erative has met with federal agencies andland owners in early consultation regard-ing permits and other authorizations need-ed to conduct related studies within thepark and the refuge.

Excess power for Dillingham?

Brown said a sense of urgency aboutthe project has gripped local communi-ties. At one joint Nuvista/Calista publicmeeting in Bethel in March 2011, individu-als urged the cooperative “to stop talkingand do something about energy,” she said.

“When we returned for a public meet-ing in March this year, some elders saidthey were hoping to see the hydro projectcompleted in their lifetime,” she said.

The power project technically is forSouthwest Alaska, with the Yukon-Kuskokwim region designated as the pri-mary service area.

“If the project has greater-than-antici-pated capacity, however, we may also runpower to Dillingham,” Brown said. “Itdepends on whether we can get permis-sion to extend the transmission linethrough the wildlife refuge.”

Nuvista began its first field season ofproject studies with raptor surveys in May,and in June, conducted the first reconnais-sance tour of the proposed site with a fly-in, geotechnical mapping and other activi-ties planned across the summer.

“We need to determine if the walls ofAllen River can hold the dam, whichwould be located at the mouth of theriver above the waterfall,” Brown said.“Once we obtain FERC permits, we willhold scoping meetings and (begin otherwork.) It’s very similar to what theSusitna-Watana project is going through.”

Wind studies pay off

Golden Valley Electric Association isbuilding Eva Creek Wind this summer.After a six- to seven-week erectionprocess, the 12-turbine wind farm isexpected to be completed Aug. 31 and tocome online in October.

GVEA studied the project site in Ferrynearly a decade before giving the projecta green light. The utility says the Eva

Creek project will integrate well into itssystem, helping to reduce its dependenceon oil and meets the cooperative’srenewable energy pledge. And it won’traise rates.

In fact, assuming oil prices of $90 perbarrel, GVEA estimates that Eva Creekwill save members $13.6 million over thenext 20 years.

After importing the giant componentsfor the wind farm from Korea, Germanyand the Lower 48 during the spring andearly summer, turbines, measuring about410 feet from base to blade, are beingerected at the site.

A complete turbine is made up ofthree sections of tower, a hub, a nacelle(sticks off the backside of a hub andhouses the generating components likethe drive train, gearbox, etc.) along withthe three blades and inside components.

Together, the turbines will be capableof producing about 25 megawatts of elec-tricity, which translates to 77 million kilo-watt hours per year at an average cost of9.5 cents per kwh.

Eva Creek will meet GVEA’s goal ofhaving 20 percent of its system’s peakload generated by renewable resourcesby 2014. The cooperative’s 2011 peakload was 211.5 MW. ◆

By Rose RagsdaleFor Alaska-Washington Connection

laska’s producing mines and miner-al exploration and developmentprojects are making substantial and

growing contributions to the state econo-my and the welfare of many communi-ties. Mining, in fact, remains a bright spotin an uncertain economy.

Like a stone tossed into a pond, themining industry’s presence is generatinga ripple effect that is making a dramaticimpact on the lives and livelihoods ofgrowing numbers of Alaskans, especiallyresidents of rural communities locatednear mines and mine projects.

Mining impact

The direct effect of mining on thestate is impressive. In 2011, the industry

provided 4,500 direct mining jobs andanother 4,500 indirect jobs in Alaska,with total spending of $620 million ondirect and indirect payroll. Most wereyear-round jobs for residents of morethan 120 communities located in 26 outof 29 Alaska boroughs or census areasthroughout Alaska, half of which arelocated in rural Alaska where few otherjobs are available. Mining paid some ofAlaska’s highest wages, with annual aver-ages of about $100,000, which was morethan twice the state average for all sec-tors of the economy.

The sector also generated $148 mil-lion in state government revenuethrough rents, royalties, fees, and taxes -up 170 percent from 2010; $17 million inlocal government revenue through prop-erty taxes and payments in lieu of taxes;

and $172 million in payments to AlaskaNative corporations.

The mining industry also paid $70.1million in other state government-relatedrevenues, including $28 million to theAlaska Railroad Corp. – $21 million formoving coal and $7 million for movingsand and gravel; $41.1 million to theAlaska Industrial Development & ExportAuthority for the use of state-owned facil-ities (DeLong Mountain RegionalTransportation System and Skagway OreTerminal); and $1.0 million to the AlaskaMental Health Trust for rents and royaltypayments, and construction materialsales.

Mining companies spent $300 millionin 2011 on exploration in Alaska, up 13percent from 2010, with 30 projectsspent more than $1 million and another

Mining makes a difference in Alaska

Industry provides thousands of high-wage jobs, millions in local spending to make substantial impact on 120 Alaska communities

A

The ore at Constantine Metal Resources Ltd.’s Palmer Project at the north end of avolcanogenic massive sulfide belt that spans Southeast Alaska contains about 31 g/tsilver – along with 2 percent copper, 4.8 percent zinc, and 0.30 g/t gold. Photo cour-tesy Constantine Metal Resources Ltd.


COMMITTED TO SCIENCE8 years of research. 100 independent scientists. 20,000 pages of findings. $120+ million investment.

The Pebble Partnership’s environmental assessment is one of the most exhaustive studies ever completed in Alaska. Good science takes time.

The Environmental Baseline Document

is available at pebbleresearch.com

30 projects spending more than $100,000. The value of grossmineral production totaled $3.8 billion from Red Dog, GreensCreek, Fort Knox, Pogo, Kensington, and Usibelli Coal mines,placer mines, and rock, sand, and gravel operations. That’s anincrease of 16 percent from 2010. During the year, more than200 placer mines also produced 70,000 ounces of gold, as wellas platinum.

All of Alaska’s Native corporations benefited from miningindustry activity in the state through 7(i) and (j) royalty-sharingpayments as well as jobs for shareholders and business partner-ships.

For example, $169.9 million in net proceeds from Red DogMine operations went to NANA, the Alaska Native regional cor-poration for Northwest Alaska where the mine is located, whileanother $82.0 million was distributed to other Alaska Nativeregional and village corporations. In addition, 56 percent of the550 year-round jobs at the mine are filled by NANA sharehold-ers. Calista Corp. – the Alaska Native regional corporation forthe Yukon-Kuskokwim Region in western Alaska – receivedabout $2 million in 2011 in royalties and other revenue for min-eral agreements including lode exploration, placer gold produc-tion, and construction material sales. Calista shareholders,descendants and spouses predominantly fill the explorationcamp jobs at the Donlin Creek Gold Project.

Beyond impact

The impact of mining in Alaska goes beyond money spentand wages earned. Mines and mine projects make an impor-tance difference, especially in the many communities wherethey represent the only significant private-sector presence.

�

Hecla Mining Co.’s Greens Creek Mine located 18 miles southwestof Juneau recovered some 6.5 million ounces of silver in 2011, mak-ing it the top-producing silver mine in the United States. TheSoutheast Alaska mine is also the largest private employer inJuneau, and plays a significant role in the exceptional quality oflife in the capital city area.

HEC

LA M

ININ

G C

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Thus, the mining industry and its work-ers meet many of the civic and philan-thropic needs of their communities.

Greens Creek Mine, for example, is thelargest private employer in Juneau,Alaska’s state capital, and plays a signifi-cant role in the exceptional quality of lifein the Juneau area. Located about 18miles southwest of the city, the GreensCreek operation on Admiralty Island hasbeen a staple of the Juneau and Angooncommunities for 22 years. Greens Creek’s340 employees make a significant impacton their local community, not only as res-idents, but also through a variety of activ-ities and events where they volunteer.

Employees paid some $430,000 in localproperty taxes in 2010. The Juneauschool district received about $664,000in school funding due to the 192 chil-dren of Greens Creek employees whoattend local schools. In addition, GreensCreek employees donated about $15,000in personal donations to charity. Theemployees also volunteer about 4,000hours of their time annually to local char-ity groups, schools and community orga-nizations. During 2010, the mine, itself,contributed more than $29,000 to localphilanthropic efforts and provided$20,000 for local civic and youth pro-grams including the high school science

fair, local opera and musical productions,city museums and exhibits, youth sports,and scholarships to the University ofAlaska-Southeast, among others.

Alaska’s other five producing minesand at least one mine project, the PebbleProject, in Southwest Alaska play equallyimportant roles in their respective com-munities.

Mining support

Many Alaska Native corporations alsohave taken the opportunity to developbusinesses that serve the mining sector,including: NANA Regional Corp., CalistaCorp., The Kuskokwim Corp., CentralCouncil Tlinglit & Haida Indian Tribes ofAlaska, Goldbelt, Inc., Kake Tribal Corp.,Klukwan, Inc., Prince of Wales TribalEnterprise Consortium, IliamnaDevelopment Corporation, Pedro BayCorp., Alaska Peninsula Corp., KijikCorp., Igiugig Native Corp., Tenalian Inc.,and Tyonek Native Corp.

Pedro Bay, for example, formed a51/49 percent partnership withFairweather, LLC to create Clear StreamLLC, a venture that has provided medicalsupport services to the Pebble LimitedPartnership in February 2009. Pedro Bayis located on the Alaska Peninsula at thehead of Pedro Bay and the east end ofIliamna Lake, some 176 air miles south-west of Anchorage. Clear Stream hopes toexpand its medical services in the futureas well as add expediting, equipmentrentals, and warehouse management andprocurement to the roster of servicesthat it offers the mining sector.

Mining also plays a critical role in sus-taining Alaska-Washington commerce.Service companies, including most ofAlaska’s major transportation businesses,depend on the mining sector for bothdirect and indirect trade. Whether it’strucking ore concentrate from a mine ordelivering fresh eggs and produce to aproject site, the carriers that serve Alaskasupply mines and mine projects with thetransportation services they need.

Some businesses provide specialtyproducts and services on which manycompanies in the mining sector havecome to rely. They include Taiga Venturesof Fairbanks, which specializes in logisti-cal support for remote projects, andModular Transportable Housing Inc. ofYakima, Wash., which constructs modernwork camps in remote locations.

Other businesses such as Seekins Fordof Fairbanks, Kenworth Alaska and NCMachinery provide mining companies,


their vendors and employees with the automobiles, tractors andheavy equipment that they need to work in Alaska.

Mining outlook

Mining has the potential to make a tremendous contributionto the future of Alaska. Every region of the state has some formof mining potential, ranging from gravel operations to gold, sil-ver, copper, nickel, lead, zinc, platinum, tungsten, manganese,rare earth minerals, jade, limestone, and coal deposits.

But the future also holds uncertainty that could dimprospects for mining development. Challenges related to highcosts and environmental concerns must be overcome for theindustry to deliver on its amazing promise.

Further development of Alaska’s mineral resources wouldbring additional benefits in the form of more high-wage jobsand increased spending with local vendors as well as govern-ment and Alaska Native revenue from taxes and royalties. The

presence of responsible mining organizations also would dra-matically improve the quality of life for many Alaskans who willnever see the inside of a mine.

Geologists Joey Wilkins and Maarten de Moor canvas Full Metals MineralsLtd.’s Pyramid copper-gold property on the Alaska Peninsula. This geologi-cally active region of the “Ring of Fire” hosts a belt of young porphyriesand epithermal gold deposits. Photo courtesy Full Metals Minerals Ltd.


n its quest to development a massivecopper-gold-molybdenum depositlocated in the Bristol Bay Region of

Southwest Alaska, The Pebble LimitedPartnership has undertaken an extensivecommunity outreach program that is hav-ing a remarkable effect on the lives oflocal residents.

The partnership, a 50-50 co-venture ofNorthern Dynasty Minerals Ltd. andAngloAmerican plc, has invested millionsof dollars in developing the PebbleProject, including numerous educational,training and business development pro-grams in the region.

Perhaps the most remarkable of theseinitiatives is the Pebble Fund, a 5-year, $5million commitment to help develop sus-tainable communities in rural SouthwestAlaska. Though the mine companies havecontributed nearly $1 million to the fundannually since 2009, they have exertedvirtually zero influence over how themoney has been spent.

Managed by the Alaska CommunityFoundation, the Pebble Fund’s grants arereviewed and approved by a 10- to 12-member advisory board of Bristol Bay-area residents that considers applicationstwice yearly for grants ranging from$5,000 to $100,000.

As the fund’s five-year commitmentdraws to a close, Foundation CEOCandace Winkler said her organization isattempting to determine the extent of itsimpact on Bristol Bay communities.

“What’s been so powerful is that (themining companies) have given thosefunds and stepped back and let the com-munity decide how the funds are spent,”Winkler said. “And the advisory boardmembers have set aside the varying poli-tics of the individuals involved andfocused on the community’s needs. It’scertainly had an impact. We’ve seen someappreciation from the tribal groups andcommunities.”

DeWayne Constantine, chairman ofthe Pebble Fund advisory board, said thepanel “stringently” followed guidelinesestablished by the foundation, and eventhough about 75 percent of the applica-tions did not receive money, the fund hada substantial impact on the community.

Six-fold impact

“About $3.8 million or $3.9 millionfrom the Pebble Fund has enabled the vil-lages to secure or match more than $26million in state and federal funds for theirprojects,” Constantine said.

The grants helped to fund a variety ofcivic and community projects, everythingfrom restocking an elder food bank, torelocating a sewer line on a beach, to

purchasing an X-ray machine and a fire-fighting truck and equipment. Among themore unusual projects: Rebuilding andrenovating local churches, purchasingwind turbines to power a communitygreenhouse and installing an FM radiotower.

“Without the Pebble Fund, a lot ofthese communities couldn’t secure stateor federal funding for these projects,especially the smaller villages that haveno tax base,” said Constantine. “Even thesmall grants like for vehicle purchasesmake a big difference.”

The village of Kokhanok, for example,was able to buy a truck with a plow thatit uses to maintain its utility right-of-ways.

The fund’s impact was felt perhapsmost profoundly in these villages whereunemployment and underemployment isepidemic and local residents were hiredto operate the heavy and specializedequipment required to complete the vari-ous infrastructure projects. The PebbleFund also paid for the training that madeit possible for the locals to do the work.

“The first year, a lot of people thoughtthe Pebble Fund was bribing the commu-nities to support the Pebble Project,”Constantine said. “By the next year, thecommunities realized that they couldmaintain their stance against the (mine)project and still apply for grant money.” ◆

Villages feel impact ofPebble outreach

Mine project’s $4 million in grants aids Southwest Alaska communities in securing more than $26 million in state and federal funds

I

Chignik Lake Village Council is one of many Bristol Bay Region com-munities that benefited from more than $4.05 million in grantsawarded by the Pebble Fund since 2009 for local civic and charitableprojects. Photo courtesy of the Alaska Community Foundation

From band instruments to wrestling mats, Dillingham City Schools isanother recipient of grants from the Pebble Fund. The school districthas received some of the Fund’s largest awards, including money topurchase this computer lab for students. Photo courtesy of theAlaska Community Foundation



high-tech revolution is underway intelecommunications services, as anindustry that defines itself by

change is once again inundated byadvancements that Alaska providers arebringing to customers in cost-effectiveways.

Whether it’s high-speed Internet, net-work management, wireless network orIT services or design, engineering andconstruction of industry-specific solu-tions, telecommunications companiesthat serve the Alaska-Washington busi-ness community are working to identifyand offer the best in the industry to theirclients, while expanding with new ser-vices and into new markets.

Leveraging assets

Alaska Communications recentlylaunched new home Internet, businessInternet and small- and medium-size busi-ness services.

From its Anchorage headquarters and33 retail and agent locations acrossAlaska, the company serves the fastest-growing segment of telecommunicationsusers – data dependent consumers andenterprises – and leverages its legacy as alocal telephone company to support itswireless and enterprise data network.

Alaska Communications, formerlyAlaska Communications Systems or ACS,has 887 employees and owns fully incor-porated infrastructure for the majortelecommunications platforms: wirelesscommunications, Internet networking,

and local and long distance phone ser-vice. Its wireless network covers 85 per-cent of the Alaska population with high-speed wireless data for more than 75 per-cent of Alaskans.

In addition to owning a statewide 3GCDMA network, the company offers busi-nesses fixed-data solutions delivered overa statewide Metro Ethernet and MPLSnetwork through data-hosting centersand submarine fiber networks connect-ing Alaska to the Lower 48 and throughprofessionals who provide managed ser-vices.

Calling the tough Alaska terrain its“digital playground,” AlaskaCommunications provides data network,WAN optimization, wireless and IT (End-to-End network management for busi-

Providers market new high-tech services

Rapidly changing industry offers Alaska businesses numerous opportunities to maximize the potential of telecommunications advances

A


nesses), and network management and “ConstantlyOnIt” (man-aged services and IT solutions to the end -user level) services.

The company recently augmented its professional servicesproduct line through an investment in and partnership withTekMate, a leading IT services firm in Alaska that, like AlaskaCommunications, also extends its services to the Lower 48.Alaska Communications also provides hosted services, disasterrecovery, HD video conferencing, and fleet management, whichis a GPS and cellular-based technology that enables a companyto monitor its fleet remotely from an online computer or evena smartphone. The provider has designed industry-specific solu-tions for health care, education, financial ser-vices and the wholesale and carrier sector.

The company recently launched a newbusiness Internet service with speeds up to15 megabits per second that delivers unlimit-ed business Internet access with no data lim-its or overage charges. With no caps onInternet use or overage fees, businesses canenjoy unlimited data transfer without worry-ing about unanticipated overage charges.

“The Internet drives small business, nowmore than ever before,” said Eric Lazo, AlaskaCommunications vice president of productand marketing. “We want our business cus-tomers to enjoy reliable high-speed Internet service so they canfocus their attention on connecting with customers withoutthe concerns that come from hidden fees or data caps.”

The service also features a secure, consistent connection anddoes not share a connection with other users. Data speeds arescalable up to 15 Mbps. The service comes with free on-sitesetup, built in Wi-Fi, on-site speed tests to assure connectionperformance, a domain and e-mail hosting unique to your com-pany, virtual private network accessibility to give employees theability to remotely connect to the office and technical support.

Alaska Communications is also marketing combined phone,fax and Internet services in packages designed for small busi-nesses with up to 10 employees.

Cloud coverage

AT&T is another provider that is helping to re-map thetelecommunications landscape in Alaska.

With a focus on strengthening its telecommunications infra-structure in Alaska, AT&T operates 15 company-owned retaillocations and employs 549 workers in the state. From 2009through 2011, AT&T invested more than $650 million in itsAlaska wireless and wireline networks.

In addition to about $10 million in local and state taxes thatit pays annually, the company spent more than $29 million ongoods and services purchased from suppliers based in Alaska in2011.

Since November, AT&T has launched several new businesssolutions and updates, focusing on its roster of cloud servicesas part of a strategy to meet the needs of a wide variety ofusers, including large and medium enterprises, developers, andInternet-centric businesses. Among the new services is AT&TSynaptic Compute as a ServiceSM with VMware vCloud®Datacenter Service, a virtual private cloud offer for mid-marketand large enterprises that allows VMware customers to extendtheir private clouds across and into AT&T’s network-basedcloud using AT&T’s industry leading virtual private network.The new enterprise-class cloud service combines technologies

from virtual private networking industry leader AT&T andcloud infrastructure software industry leader VMware.

Like AT&T’s other cloud offers, this new cloud capability isembedded directly into its network. This means computing andstorage services can be scaled, managed, routed and deliveredto business customers, down to virtually any fixed or mobiledevice, quickly and flexibly, on demand, with enterprise-gradesecurity and performance.

The benefits of this “virtual private cloud” include the flexi-bility and cost efficiencies of using private and public cloudsystems interchangeably and strategically. The service allows

users to rapidly provision and scale-computeresources. It also easily and flexibly shiftsworkloads between private clouds and AT&T’snetwork-based cloud. It also supports bursting,data center extensions, disaster recovery, andmobile application development and deploy-ment.

“Our new cloud offer with VMware canhelp customers simplify the way they orches-trate their cloud resources between privateand public clouds, allowing them to have thebest of both worlds,” said John Potter, vicepresident, As a Service Solutions, AT&TBusiness Solutions.

Concur, a leading cloud provider of integrated travel andexpense management solutions based in Redmond, Wash., uses“AT&T Synaptic Compute as a Service” for its disaster recoverycapabilities. The company, which has virtualized almost 80 per-cent of its IT environment over the past three years withVMware cloud infrastructure software, expects AT&T’s newSynaptic Compute as a Service to allow it rapid access to com-pute capability in the event of an outage in its primary net-work.

AT&T’s other cloud-based services include “AT&T CloudArchitect,” which allows developers and web-centric businessesto build an online business or run an application quickly withlow operating costs by providing quick and cost-efficientaccess to highly flexible, integrated computing and applicationdevelopment services; and “AT&T Unified CommunicationsServices,” a package of cloud-based solutions that bring the ben-efits of unified communications to businesses of all sizes as asimple, reliable, carrier-grade service that helps organizationscontrol costs and eliminate unpredictable expenditures.

New competitor

One of the most ambi-tious industry initiativesunderway in Alaska isthat of Futaris, formerlyAlaska Telecom Inc.

Calista Corp., the Alaska Native regional corporation for theYukon-Kuskokwim region of Alaska, purchased Alaska Telecom,a provider of technical telecommunications services in Alaska, 3½ years ago and gained 8(a) designation for the company.

With a new name that means “futuristic, optimistic and limit-less” and a new logo, Futaris aims to convey to customers itsdramatic transformation during the past 18 months.

“We kind of re-invented ourselves. We went from being aretailer to a carrier. We now compete with AT&T and (others),and we want to grow,” said Futaris President Daniel J. Boone, ina recent interview.

With a focus on strengtheningits telecommunications

infrastructure in Alaska, AT&Toperates 15 company-ownedretail locations and employs

549 workers in the state. From2009 through 2011, AT&Tinvested more than $650

million in its Alaska wirelessand wireline networks.

It’s true that Alaska’s a big place‚ but with Alaska Communications‚

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The company got its start more than30 years ago when Alaska developed itsoil fields. With microwave communica-tion towers, it offered a combination ofland and mobile radio communicationslinked by microwaveand satellite.

When Boonejoined the companyin 2011, he set out toidentify significanttechnology patternsand trends andunderstand what thecompany’s customerswant and provide those services.

“I look at where technology is takingus into the future and literally drag thefuture into the present. You have to benimble in this business,” he said. “Wewant to develop products that ride appli-cations on top of what we have. Our goalis to align, anticipate, and act.”

Futaris recently purchased Atcontact, asatellite company with two teleports inDenver and Anchorage. “We would buysatellite services from them, but we real-ized that we needed to turn the tables. Sowe also purchased Sequestered Solutions,a private cloud computing companybased in Anchorage.

Today, Futaris owns a global satellitecommunications system with coverage inmost parts of the world, including boththe North and South poles, and morethan 1,000 V-Sat locations in North

Dakota and Wyoming,primarily used by oiland gas customers; itssystem also has spreadto areas of Utah andTexas. The companyalso offers broadcasttelevision services inLatin America andFlorida, provides the

National Science Foundation with a feedto Antarctica, and has penetrated businessmarkets in Canada, especially among min-ing companies.

“We’re expanding our global coverage.We’ve upgraded the Colorado teleport byinstalling another 11-meter antenna point-ed at a different satellite. We’ve gottenpermits to install two more, and we’relooking at other regions in the worldwhere we want to offer our services,”Boone said.

Futaris also wants to expand its broad-cast TV coverage throughout in Lower 48,and already has direct connections toEquiStar and DirecTV.

For Alaska businesses, the companycontinues to offer engineering, design andintegration, construction and installation,and maintenance and service for all typesof telecommunications. Its new servicesinclude cloud computing and hosting aswell as specialized IT services such as cer-tifying medical clinics and doctor’s officesto keep them compliant with HIPPA laws,performing high-tech audits and doingvulnerability assessments on businesscomputer networks. Futaris also monitorsbusiness networks and collaborate withIT professionals to protect businessesfrom external intrusions, while offeringcyber-security training to business clients.

“We know you have a problem beforeyou know you have a problem,” saidBoone.

Futaris is also deploying advanced SIPsystem in Alaska, which will eliminate theneed for a traditional PBX, Boone said.“We now have intelligent phones that canrun applications that mimic small busi-ness communication systems, only itworks on the data side so it does not usewireless minutes. It is converting smartphones into the actual ‘follow-me’ officeenvironment.

“People are requiring more and moreof (their) smart phones,” he added. ◆

The company recently launched anew business Internet service with

speeds up to 15 megabits persecond that delivers unlimited

business Internet access with nodata limits or overage charges.

INBRIEFFort Knox, Pogo match funds for center

With less than 1 percent or $175,000 to raise to com-plete exhibits at the Morris Thompson Cultural and VisitorsCenter in Fairbanks, two Interior Alaska gold mining com-panies – Kinross Gold Corp. which owns the Fort KnoxMine and Sumitomo, which owns the Pogo Mine – joinedtogether to match, dollar for dollar, every gift to the centeruntil the goal is reached. Most of the center’s exhibitsopened in 2009; however one section was put on holduntil funding was secured. The additional funding was tocomplete a final section of exhibits, dubbed the “Gateway.”The new section tells the story of life in Interior Alaska, andmining is a part of that story, said Sumitomo Pogo MineExternal Affairs Manager Lorna Shaw. “Alaskans depend onthe land for every part of our lives – hiking, fishing, camp-ing, playing on our snowmachines – and making a living.”Volunteers from across Alaska helped to raise nearly $30million in federal ($16.7 million), state ($7.6 million), andprivate ($4.6 million) funds in order to complete the cen-ter with zero debt, making its operating costs affordable.Kinross Fort Knox and Sumitomo Pogo Mine also give gen-erously to education and youth programs in Interior Alaska,including recent pledges of $1 million each to theUniversity of Alaska Fairbanks’ School of MiningEngineering.

The Morris Thompson Cultural and Visitors Center located on the banks of the Chena River indowntown Fairbanks is a community centerpiece designed to celebrate Interior Alaska. Namedfor Interior Alaska Native leader Morris Thompson, the Center is committed to honoring hislegacy by promoting improved appreciation and understanding between Alaska Native andnon-Native communities. Photo courtesy of the Morris Thompson Cultural and Visitors Center

The lobby of the Morris Thompson Cultural and VisitorsCenter features exhibits that are designed to educateresidents and visitors about the natural and cultural his-tory of the Interior and to generate interest in explor-ing Fairbanks and Interior Alaska. Photo courtesy of theMorris Thompson Cultural and Visitors Center

INBRIEF


Opti Staffing launchestalent network

Opti Staffing Group recentlylaunched a new service thatenables job candidates to get up-to-date information on the latestopportunities via email or smartphone.

Weekly updates are sent to mem-bers of Opti Staffing’s “TalentNetwork” that align with the specif-ic information in which the jobseekers expressed interest whenthey signed up. “These are thetypes of innovative ideas that ourmembers continue to come upwith … this network will allowOpti Staffing Group to continue toprovide that ‘cut above’ service thatthey are known for,” said JohnSacerdote, CPC/CTS and Presidentof the National Association ofPersonnel Services.

The Talent Network is the latestinnovation offered by Anchorage-based Opti Staffing, which wasestablished in 1999 by a group ofindividuals seeking a better way todo business.

Since then, the company hasexpanded to five additional officesin Washington State, Oregon andChicago. Opti Staffing attributes itssuccess to its strategy of placing aconcentrated effort on developinggreat relationships with clients andcandidates.

Shelley Ross, Opti Staffing’s divi-sion sales manager, said the TalentNetwork “is proving to be anextremely powerful tool that givesour candidates the opportunity tostay proactive in their job searchand be exposed to all opportuni

ties” that the company offers.“This outstanding resource not onlyadds value to our candidate’s jobsearch, but also to Opti Staffing’sday-to-day recruiting and salesprocess,” Ross added.

To join the Talent Network, OptiStaffing invites candidates to signup athttp://www.jobs.net/jobs/OptiStaffing/en-us/.

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To advertise in Petroleum News call Susan Crane at 907-770-5592, or Bonnie Yonker at 425-483-9705. To subscribe visit petroleumNews.com, call 907-522-9469, or email [email protected].


eattle launched its celebration of the 50th anniversary of the1962 Seattle World’s Fair in April, but it’s not to late to get inon the fun. “The Next 50,’ Seattle Center’s six-month celebra-

tion looking back at the 1962 Seattle World’s Fair and ahead toSeattle’s next 50 years continues until Oct. 21, the date on whichthe fair closed 50 years ago. The center is sponsoring some contin-uing events including Century 21 Walking Tours that explore thelegacies of the World’s Fair. The tours are hosted by the Museumof History & Industry on first and third Saturdays and second andfourth Thursdays of each month through Oct. 20.

King Tut is here

A highlight of Seattle visitor attractions in 2012 is the much-anticipated exhibition, “Tutankhamun: The Golden King and theGreat Pharaohs,” that opened at Pacific Science Center in May for

its final showing inNorth America. Theexhibition, organizedby NationalGeographic and Arts& ExhibitionsInternational, withcooperation from theEgyptian SupremeCouncil ofAntiquities, is spon-sored locally by theSeattle Convention &Visitors Bureau. It fea-tures more than 100artifacts includingjewelry, furniture andstatuary as well as theboy king’s goldensandals from thetomb of King Tut andsites representingsome of the mostimportant rulersthroughout 2,000years of ancientEgyptian history.These include the

largest image of KingTut ever unearthed – a10-foot-statue of thepharaoh found at theremains of the funerarytemple of two of his

high officials. Most of these artifacts have never been on display inthe United States before this exhibition. For further informationand ticket details, please visit kingtut.org orpacificsciencecenter.org. The exhibition runs through Jan. 6, 2013.

Another lofty attraction

Since the 605-foot-tall Seattle Space Needle opened for theSeattle World’s Fair, the iconic symbol of the Emerald City hasreigned supreme as Seattle’s loftiest visitor attraction. When it wasbuilt in 1962, it was the tallest building west of the MississippiRiver. This summer, the Seattle Great Wheel has added its profileto the city’s skyline. The 175-foot diameter Ferris wheel opened tothe public on the waterfront in late June at Pier 57, which alreadyboasts a carousel, arcade, and collection of shops and restaurants.The wheel lifts riders in 42 enclosed gondolas about 200 feet intothe air, giving them a breathtaking view of Elliott Bay and the city.Developer Hal Griffith said he wanted to put such an attractionon Pier 57 to help offset the potential loss of area business thatcould result from the Alaskan Way Viaduct replacement project.Griffith owns Pier 57, which is near other downtown attractionssuch as the Pike Place Market and the Seattle Aquarium.

Theater delights

The performing arts scene is also celebrating the city’s mile-stone with various special events along with offerings for the2012-2013 regular season.

The Intiman Theatre is returning this year to celebrate its 40thbirthday with a new theatre festival that runs through August.Four plays are featured, “Romeo and Juliet,” by WilliamShakespeare; “Hedda Gabler”, by Henrik Ibsen; “Miracle,” by Dan

Seattle: 50 years since world’s fairKing Tut exhibition tops anniversary offerings that include new Ferris wheel,

star-studded lineup of performing and cultural arts


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The exhibition, “Tutankhamun: The GoldenKing and the Great Pharaohs,” that opened atPacific Science Center in Seattle in May featuresthe largest image of King Tut ever unearthed –a 10-foot-statue of the pharaoh found at theremains of the funerary temple of two of hishigh officials. Photo courtesy of the SeattleConvention and Visitors Bureau


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Savage, and “Dirty Story,” by John Patrick Shanley. For more infor-mation, visit www.intiman.org/plays-events/festival/.

Seattle Repertory Theatre is hosting a party and scavenger huntat noon, Aug. 18, to kick off its landmark 50th anniversary season.Registration is open for individuals or teams; participants are wel-come age 8-80. The largest nonprofit resident theater in the PacificNorthwest, Seattle Rep will feature both classical and contempo-rary productions in its 2012-2013 season, beginning with theworld premiere of “Pullman Porter Blues,” by Cheryl L. West, Sept.

27 – Oct. 28, 2012 and followed by Tennessee Williams’ “The GlassMenagerie,” Oct. 6 – Dec. 1, 2012 and the holiday season comedy,“Inspecting Carol” by Daniel Sullivan, Nov. 23 – Dec., 23, 2012. TheRep will kick off the New Year with the modern masterpiece,“American Buffalo,” by David Mamet, Jan. 11 – Feb. 3, 2013, fol-lowed by “Photograph 51,” a portrait of British scientist RosalindFranklin by Anna Ziegler, Feb. 1 – March 3, 2013, and the TonyAward-winning “War Horse,” adapted for the stage by NickStafford, Feb. 13-24, 2013. The season wraps up with the insightfulcomedy, “Good People” by David Lindsay-Abaire, March 8-31, 2013,and the riotous farce, “Boeing-Boeing,” by Marc Camoletti, adaptedby Beverley Cross, April 19 – May 19, 2013. For more information,visit www.seattlerep.org.

The historic 5th Avenue Theatre, ACT, and Pacific NorthwestBallet are also offering a wide variety of productions during 2012-2013 season. At 5th Avenue, “RENT,” led stellar lineup of Broadwayhits and golden classics, including “Memphis, The Addams Family,ELF – The Musical, The Music Man, Gray Gardens, Jersey Boys,” and“The Pirates of Penzance.”

ACT – A Contemporary Theatre began its season with “ThePinter Festival, a collection of four plays that runs through Aug. 26,followed by a fall lineup including “Uncle Ho to Uncle Sam, TheGreat Soul of Russia, Ramayana, The Construction Zone, AChristmas Carol” and others.

This season, Pacific Northwest Ballet will feature “Cinderella” inSeptember, “Nutcracker” in December and “Roméo et Juliette” inFebruary, “Hansel & Gretel” in March, “Swan Lake” in April as wellas world premieres, modern masterpieces and the director’schoice. ◆

Seattle Repertory Theatre will play host to “Theatre for Life,” a scavengerhunt scheduled for noon, Aug. 18, to kick off its landmark 50th anniversaryseason. Registration is open to individuals or teams; participants, age 8-80,are welcome. Courtesy of the Seattle Repertory Theatre

AACS 31Alaska Air Cargo 40Alaska Railroad 32American Fast Freight 34Aspen Management LLC 3AT&T 13

B-FBowhead Transportation Co. 22Calista Corp. 3Fairweather LLC 26Futaris (formerly Alaska Telecom) 39

G-MHecla Mining Co. 27Kenworth Alaska 36Lynden 2MTHousing 25Mining News 37

N-PNC Machinery Inc. 38Opti Staffing Group 17Pacific Alaska Freightways 7Pebble Partnership 24Petroleum News 5, 29, 34PNW Equipment 10

Q-ZSeekins Ford 15Taiga Ventures 35TransGroup Inc. 19Udelhoven 21

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Call today to discuss developing solutions customized to your unique needs and our unparalleled passion for customer care.

Futaris provides fully managed satellite communication networks. Our services include engineering, network design and implementation, construction, installation, and project and site management.

• Global Satellite Communications• Commercial and Wholesale Service Offerings• VSAT• VOIP Service• Land Mobile Radios (LMR) • Disaster Recovery Networks• Broadcast Services• 24 X 7 X 365 Network Operations Center (NOC)• Two Teleports

Over the years, Alaska Air Cargo has grown from a regional carrier to a nationwide cargo leader.

But there’s one thing that hasn’t changed: The Northwest is, and always will be, our home. From

the Bering Strait to Bellingham and Puget Sound to Prudhoe Bay, no one knows the Northwest

better than Alaska Air Cargo. We’ve got the experience and expertise to get your shipment

where you need it – around the region or around the nation.

Your northwestern neighbor.

L O C A L S H I P P I N G E X P E R T S I T H E # 1 O N - T I M E A I R L I N E I N N O R T H A M E R I C A * I *201

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