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Weekly UpdatesEach year, the end of winter signals the start of construction season in Alaska. And while 2007 is shaping up to be a very good year with construction spending remaining heavy, it is also turning out to be a very fluid year, with potential projects such as the natural gas pipeline, the Knik Arm Crossing and the Gravina Island Bridge affecting overall plans for the season.
THE NATURAL GAS PIPELINE
The wild card in any discussion about Alaska's upcoming construction season is the natural gas pipeline. Until it is determined who will build it, where it will be built and even if it will be built, construction companies and private-sector investors may be holding off on making big project decisions.
"Until a decision is made on the natural gas pipeline, we'll see a slowdown in private investment," explained Dick Cattanach, executive director, Associated General Contractors of Alaska (AGC). "It probably won't affect projects in 2007 because those contracts have already been signed, but it will affect projects in the future. People will wait to see what happens because they don't want to be left holding the bag on an investment if the gas line issues aren't settled and the state misses its window of opportunity.
"Waiting a year may cost developers more because of inflation, but it will also help them determine whether or not to go forward," he added.
Still, some organizations, like Alaska's Department of Transportation (DOT), need to prepare now in case the gas pipeline project does go through. "The first thing we did was look at the critical components of Alaska's major transportation routes to determine what needs to be done," said John MacKinnon, deputy commissioner, Highways and Facilities, Alaska Department of Transportation. "We looked at all of the likely routes which will be used to transport materials for the pipeline, including the Richardson Highway, Parks Highway and Alaska Railroad."
Once the most likely transportation links were determined, DOT reviewed the condition of these roads and made plans to make needed replacements or repairs. "There were a number of bridges that needed work, including the Washington Creek Bridge on the Dalton Highway and the Shaw Creek Bridge on the Richardson Highway," said MacKinnon. "We are also redecking the Yukon River Bridge, which was built for the oil pipeline, though the gas line may or may not be on this same structure." Other bridges that are on DOT's agenda include a $30 million complete replacement of the Tanana River Bridge on the Alaska Highway and work on the Chilkat River Bridge on the Haines Highway.
To help reduce traffic issues on certain routes, DOT is also constructing passing lanes on the Richardson Highway between Fairbanks and Delta. "Freight carriers tend to move more slowly than regular traffic, and we don't want to see huge strings of cars waiting behind trucks," said MacKinnon. "By adding passing lanes, we'll improve safety and the flow of traffic." Put out to bid last fall, construction is expected to start on this $7.5 million project this spring.
HIGHWAY IMPROVEMENTS
As part of DOT's road review, the agency also decided to identify the weak links on the Parks Highway, which is the main freight route between Anchorage and Fairbanks. "Every spring, breakup occurs and the roads get soft," explained MacKinnon. "We have to impose lower weight limits on the roads, which causes problems for the transportation industry. They have to pull freight out of their containers to meet limits that may be 85 percent of the legal load."
Three years ago, DOT completed a 20-mile string between Healy and Anchorage, and two years ago they completed a 25-mile stretch between mileposts 326 and 351, between Anchorage and Fairbanks. This summer, construction will begin on an area outside Ester between mileposts 351 and 356, and DOT also expects to begin construction further down the Parks Highway towards Cantwell. "We're also looking for about $27 million in funding to do the area between Willow and the Kashwitna River," said MacKinnon, who estimates that it will take approximately $80 million to $90 million to completely eliminate weight restriction issues on the Parks Highway.
DOT also is continuing a major maintenance project on the Dalton Highway, which is now in the third year of an approximately six-year program. "The Dalton Highway was built about 30 years ago, and not much has been done to it since then," said MacKinnon. "A tremendous amount of freight travels that highway annually to resupply Prudhoe Bay and keep the oil pumping. Yet there's no surface material on the highway--it looks like a cobblestone road."
The Alaska legislature made a commitment to the project, providing between $6 million and $9 million a year to improve the highway's surface using crushed aggregate to make D-1 surface material. "We'll be mixing this with calcium chloride, which holds water on the road surface and helps to reduce dust," said MacKinnon.
POTENTIAL BRIDGE PROJECTS
Just as the natural gas pipeline could affect Alaska's upcoming construction season, so could the decision on whether to proceed on two proposed bridge projects-the Knik Arm Crossing between Anchorage and the MatSu borough, and the Gravina Island Bridge in Ketchikan.
As proposed, the Knik Arm Crossing Project is a two-mile long vehicular toll bridge that would link the Port of Anchorage area and the Port MacKenzie area. Estimated to cost between $400 million and $600 million, the bridge would be funded through a public-private partnership.
"The Knik Arm Crossing project represents a really new, innovative way for Alaska to improve its infrastructure," explained Mary Ann Pease, Community Outreach and Public/Private Partnership liaison. "While the state often receives federal and state money for projects like this, in this case, only $130 million will come from public funds. The rest of the money will be raised through private-sector investment, with investors receiving a return on investment based on toll revenue."
The project has recently reached several milestones on its way to becoming a reality. In March, the Anchorage Municipal Assembly voted to approve the inclusion of the Knik Arm Crossing project into the Long-Range Transportation Plan (LRTP), which was a critical step in furthering the planning process. The Federal Highway Administration is preparing an Environmental Impact Statement (EIS) to evaluate the crossing, which is the final step in the approval process prior to project implementation.
In March, the Knik Arm Bridge and Toll Authority (KABATA) also received two Statements of Qualifications (SOQ) in response to a Request for Qualifications (RFQ) seeking parties interested in partnering with KABATA to develop, design, build, finance, operate and maintain the proposed crossing. "At this point, we have determined that both consortiums are qualified to remain part of the process based on their design, engineering, construction, personal resources and financial capabilities," said Pease. "We will now consult with both parties before developing and issuing an RFP (Request for Proposals) in summer of 2007." Pease estimates that a concessionaire for the Knik Arm project will be selected at the end of 2007, with the contract awarded in winter 2007/spring 2008.
"As for the timeline, I believe that we could see the bridge opening at the end of 2010," said Pease. "This project will be a huge benefit in terms of regional connectivity, and in providing access to an alternate safety corridor between Anchorage and the region."
While work is moving ahead on the Knik Arm Crossing, things are progressing more slowly on the Gravina Island Access project. "Basically, DOT's official position on this project is that we will not move ahead with the bridge structure until someone identifies and comes up with the money to build it," said MacKinnon of the project which is expected to cost between $300 million to $400 million. While a number of alternatives have been offered, the preferred alternative for the project is a set of two spans crossing from Revillagigedo Island to Pennock Island, with a second bridge crossing to Gravina Island.
In 2005, Congress pulled back on these earmarked projects, and only $91 million of federal funds was left for the Gravina project in the state's FY07 capital budget. "There was still an earmark left for Gravina Island approach roads, which could not be used for anything else, so DOT has gone ahead and begun earthwork and road construction to expand access to lands on Gravina Island," said MacKinnon. In 2007, the state awarded Kiewit Pacific a $25.7 million contract to build the Gravina Island Highway, a 3.2-mile gravel road ending near the west channel. The project is expected to be completed in 2008.
MAJOR PORT IMPROVEMENTS
As part of a multi-year expansion started in 2005, the Port of Anchorage will be undergoing major construction in 2007. This year's plans include adding more than 21 acres of land to the facility, adding 9,500 linear feet of rail, and improving access and vehicle and pedestrian movement throughout the port.
"Probably the backbone of our project this year is improvements to Tidewater Road, which includes moving all of the above-ground utilities underground as well as upgrading them for future expansion," explained Donna Boltz, deputy director, Port of Anchorage. "Because this is a high-wind area, moving these utilities underground will help us resolve significant icing concerns."
Plans for the Tidewater Road area also include eliminating drainage problems, adding turning lanes, making road improvements, adding landscaping and constructing pedestrian sidewalks. "The goal of these projects is to improve traffic while also increasing access and safety," said Boltz. "We want to make it easier for everyone including customers, tenants and the military to travel through the port."
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