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Falling freight volumes result in ARRC posting US$4m loss in 2016
ALASKA Railroad Corp. (ARRC) posted a US$4.4 million loss for the full year in 2016, compared with a profit of $10.9 million the previous year, according to the company's most recent financial statements.
The state-owned passenger and cargo railway saw freight revenues fall 16 per cent to $69.6 million as volumes of petroleum products and coal tumbled 23 per cent and 50 per cent, respectively, from the previous year.
Overall freight volumes fell 13.5 per cent to 3.71 million tonnes compared with 2015 levels, American Shipper reported.
"To say that 2016 proved to be a year full of challenges would be an understatement," ARRC said in its 2016 annual report. "Never has the Alaska Railroad Corporation ('ARRC') had to roll with as many punches that came its way during 2016.
"Beginning with the continued malaise in the energy markets that had a dampening effect on the entire Alaskan economy, ARRC went to great lengths to scale its freight operations down to match the unprecedented decline in this revenue stream."
Other "significant" challenges the railroad faced during the year included new pension accounting standards, which resulted in an additional $3.5 million in expenses above the initial 2016 budget, and a grant fund dispute between ARRC and the Municipality of Anchorage, which resulted in a $7.4 million revenue loss.
The state-owned passenger and cargo railway saw freight revenues fall 16 per cent to $69.6 million as volumes of petroleum products and coal tumbled 23 per cent and 50 per cent, respectively, from the previous year.
Overall freight volumes fell 13.5 per cent to 3.71 million tonnes compared with 2015 levels, American Shipper reported.
"To say that 2016 proved to be a year full of challenges would be an understatement," ARRC said in its 2016 annual report. "Never has the Alaska Railroad Corporation ('ARRC') had to roll with as many punches that came its way during 2016.
"Beginning with the continued malaise in the energy markets that had a dampening effect on the entire Alaskan economy, ARRC went to great lengths to scale its freight operations down to match the unprecedented decline in this revenue stream."
Other "significant" challenges the railroad faced during the year included new pension accounting standards, which resulted in an additional $3.5 million in expenses above the initial 2016 budget, and a grant fund dispute between ARRC and the Municipality of Anchorage, which resulted in a $7.4 million revenue loss.
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