A season in flux: projects on the horizon could affect construction plans

Alaska Business Monthly, June, 2007 by Vanessa Orr

Each 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.