By Justin Franz
A legislator in Alaska has introduced a bill that would call for the sale of the state-owned Alaska Railroad. House Bill 332 was introduced by Rep. Jesse Sumner (R-Wasilla) and if passed would require the governor to enter into an agreement to sell the railroad on or before February 15, 2025.
In a letter supporting the bill itself, Sumner wrote that a sale would “streamline governance and inject much-needed private sector expertise into the railroad’s operations.”
The bill was first introduced on February 20 and has been referred to the Transportation Committee. The bill first garnered media attention over the weekend. It’s unclear how likely it is that the bill would actually pass before the legislative session ends in the coming weeks, but it is certain to kick off a conversation about the railroad’s future.
“This legislation represents a critical turning point for our state, unlocking economic potential while ensuring protections for the interests of Alaskans,” Sumner wrote. “For years, the Alaska Railroad has served our communities, but it has not reached its full potential. Operating under state ownership, the railroad has faced limitations in terms of investment, innovation, and strategic expansion. This bill initiates a careful, responsible process to transfer the Alaska Railroad to a private buyer committed to the railroad’s success.”
The bill would require the buyer of the railroad to pay a fair market value for the operation and to promise to run it for at least 50 years.
The Alaska Railroad was built by the federal government and completed in 1923. Ownership was later transferred to the state. The railroad provides both freight and passenger service to rural parts of the state.
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