ANCHORAGE, Alaska—
Next year could be a bit leaner for the Alaska Railroad due to lower production of coal and refined fuel in the state's Interior. The railroad is anticipating significant decreases in next year's capital budget because of freight reductions.
Flint Hills Refinery in North Pole says it is idling one of its two operating units, citing challenging economics and rising crude prices.
The Alaska Railroad transports jet fuel from Flint Hills, as well as coal from the Usibelli Coal Mine in Healy, but a weakened global coal market means a drop in Usibelli's exports.
As a result of those market changes, the railroad says it is expecting a $10 million drop in revenue compared to 2011.
Contact Clinton Bennett
