The oil truckers operating on Alaska's ice roads are experiencing a surge in demand, resulting in a backlash.
- In contrast to the Lower 48, where a significant freight recession has led to recent bankruptcies and layoffs, trucking is thriving in Alaska.
- The persistent scarcity of skilled drivers has led to a significant increase in compensation, allowing full-time truck drivers in Alaska to potentially earn up to $175,000 per year.
- Some lawmakers are expressing opposition to the rise in truck traffic resulting from increased oil production and gold mining.
While the Lower 48 has been hit with a significant freight recession, Alaska is experiencing the opposite.
The future of trucking in Alaska looks promising with the recent increase in North Slope oil production projects.
Since 2000, Alaska's trucking industry has likely improved, according to Jeremy Miller, vice president of operations at Anchorage-based Carlile Transportation Systems, who has been with the company since 1998.
The Biden administration approved the ConocoPhillips Willow Project last year, which had been delayed and mired in controversy over its potential environmental impact on pristine Arctic lands. Now that work has been greenlighted, construction of oil pads and camps has commenced. Willow is expected to generate 600 million barrels of oil total, or 180,000 barrels a day at its peak, according to .
The Pikka oil project by Australian company Santos is also being developed on the North Slope, 50 miles west of Deadhorse. Currently, infrastructure improvements are being constructed in preparation for operations to commence in 2026, which could result in the production of 150,000 barrels of oil per day, as stated by the company.
The Alaska Department of Natural Resources reports that the combined output of both projects will increase the state's oil production by 30% within a decade. As a result, all of the oil infrastructure will require ongoing trucking support.
Alaska West Express experienced its highest volume in 2015, but Matt Jolly, the company's president, anticipates that 2024 will surpass that number, leading to record-breaking shipments.
The Dalton Highway's terminus is connected to the oil fields through roads that can support heavy trucks and are made from flattening down ice without harming the tundra.
Alaska West specializes in transporting chemical and dry commodities in 5-axle tankers and bulkers with payloads up to 67,500 pounds. Jolly explains that they handle a range of products, including diesel, avgas, LVT, corrosion inhibitors, scale inhibitors, glycols, barium sulfate, and cement on the bulk side. Additionally, they transport heavy machinery, pipe spools, and oversized modules.
According to Joe Michel, president of the Alaska Trucking Association, the North Slope's multiple projects have resulted in an abundance of work for freight companies and a persistent shortage of drivers, making it a prosperous time for trucking companies in the region.
Someone will pick you up quickly if you are a qualified driver, Michel stated.
Miller states that an annual salary of $180,000 can be earned by drivers who are comfortable with long stretches of isolation and Arctic challenges. However, even drivers who prefer to haul locally in Anchorage and avoid nighttime trips can still earn an annual salary of $75,000.
The majority of North Slope oil infrastructure is transported via trucks that must travel the 414-mile Dalton Highway (Alaska Route 11).
The Dalton Highway drive is not for the faint of heart, as much of the "trucking season" involves driving in 24-hour pitch blackness, with constant dangers such as ice, fatigue, and meandering moose. Alaska's midnight sun in summer is replaced by noon darkness in winter, and drivers must navigate the fickle mostly gravel Dalton in the dark. There are no McDonald's or Wawa along the route, but hundreds of trucks travel it daily during the busy season.
A close-knit community developed among the drivers after Michel shared a "truckers code."
Michel stated that truckers are familiar with one another and that specific turns and hills on the Dalton have designated names. Additionally, northbound trucks carrying cargo receive preferential treatment. Truckers communicate using CB.
Michel remarked, "The camaraderie among them is very impressive as they look out for one another."
Most trucks traveling southbound on the Dalton Highway in the North Slope region are not carrying any cargo.
Jolly stated that a significant portion of business on the slope involves empty miles, with few opportunities for backhaul freight.
Jomo Stewart, president and CEO of Fairbanks Economic Development Corp., stated that a reflowering is occurring on the North Slope and that many of the projects require trucks for their completion.
The North Slope isn't the only place in Alaska experiencing a trucking boom. New mining activity in central Alaska is also putting more rigs on the road, rigs that eventually end up in Fairbanks. And all the trucks have some, including some of the most powerful names in Alaskan politics, saying "enough."
The Manh Choh gold mine in Tetlin, operated by Alaska, will begin transporting ore over 200 miles from Tetlin to the company's processing facility north of Fairbanks. Once fully operational, 95-foot, 16-axel rigs loaded with ore weighing 165,000 pounds will make their journeys. The trucks could make up to 60 trips a day back and forth. These massive trucks will pass through popular tourist towns and through Fairbanks.
The trucking sector has always been a strong logistics center, but it has recently become a source of controversy. These large trucks operate on a 24-hour cycle to meet the demands of the mill, according to Stewart. However, some reactions to this put the recovery of the trucking industry at risk.
According to Stewart, the greatest danger is a proposed legislation that mandates trucks weighing over 140,000 pounds to obtain a permit. The fee for the permit would be used for road maintenance, which opponents of ore trucking argue is necessary due to the wear on the roads.
Stewart fears legislation could have unintended consequences for truck-dependent Fairbanks.
"The increased economic activity brought about by trucks is appreciated by some, but the volume of trucks going through town is not well-liked by all," Stewart stated.
Both Senator Scott Kawasaki (D-Fairbanks) and Representative Ashley Carrick (D-Fairbanks) have presented legislation mandating the issuance of permits.
Kawasaki says curtailing trucking isn't the bill's intent.
Kawaski stated that the bill primarily addresses the maintenance problem, as per Alaska Department of Transportation research which indicates that $40 million will be required for road maintenance along the 200-plus miles of highway. Additionally, Kawaski mentioned that there is a provision for trucks transporting commodities like food and fuel, to prevent increased costs from being passed on to consumers.
Despite not being reached by press time, Kinross has pledged to prioritize road safety.
Our spokeswoman informed the Anchorage Daily News that we prioritize safety in our operations, and we always strive to maintain the highest standards possible.
Michel says that the proposed legislation goes too far.
Michel stated that the bill targets all aspects of trucking across the entire state of Alaska, instead of using a "scalpel" to focus on specific issues from one project.
He stated that the bill serves as a topic for dialogue to align truckers and the public.
Although Michel believes that nothing will be done with the bill in the remaining days of Alaska's current legislative session, he is concerned that the issue will resurface annually. He fears that requiring trucks to pay for permits may lead to an increase in the number of trucks on the road because some companies may opt to reduce their volume rather than pay for the permit.
Michel stated that the bill would result in increased traffic due to the persistence of demand.
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