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The Alaska Railroad is owned by the state but operated like a business.  It receives no state funds for operating purposes.  It is dependent on the revenues generated by its freight, passenger, and real estate services to cover its operating expenses.  Its employees are not state employees; they are employed by the railroad. In 2013 the railroad carried 489,645 passengers.  Fifty-four per cent of them traveled on cruise company owned cars; 46 per cent used one of the company's scheduled passenger trains. In FY14 the Alaska Railroad Corporation (ARRC) had revenues (excluding grants) of $144 million and net income of $14.05 million.  Freight revenues accounted for 65 per cent of total revenues, whilst passengers generated 19 per cent and real estate generated 13 per cent.  Other revenues were three per cent. In FY14 wages and benefits were $70.5 million or 49 per cent of revenues. Comparatively Amtrak's wage and benefits took 68.5 per cent of its revenues in FY14. In FY13, which is the latest year for audited numbers, ARRC had operating revenues of $165 million (rounded), operating expenses of $161 million, and operating net income of $5 million (rounded up).  Net real estate income boosted corporate net income to $14 million.  Clearly, real estate services is the company's most profitable business line.  It also provides a significant amount of the company's cash flow for investment purposes. In FY13 the company received federal grants of $43 million for capital projects. It also gets state grants and loans for its capital projects.  In FY13 passenger revenues were $25.7 million and expenses were $9.3 million, resulting in a passenger operating profit of $16.4 million.  In FY12 the corresponding numbers were $24 million and $9.8 million, with an operating profit of $14.2 million.  In FY11 the passenger operating profit was $13.6 million.  ARRC does not allocate depreciation, interest, and other capital charges, so it is unknown whether passenger operations were profitable after allocation of these expenses.
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