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Last year, Alaska Railroad Corp. (ARRC) generated more passenger revenue but less freight revenue. “Significantly lower volume” from Flint Hills Resources, the 651-mile regional’s largest customer, caused the drop in freight revenue, ARRC said.

Operating revenue totaled $132.7 million, up 2 percent compared with 2005. Freight revenue dropped 5 percent to $89.6 million and passenger revenue rose 9 percent to $21.3 million.

In addition, operating expenses rose 4 percent to $128.4 million, net income decreased 17 percent to $10.4 million and ARRC’s annual operating ratio worsened 2 points to 97.

Meanwhile, 2006 marked the end of ARRC’s five-year plan. The railroad capped it off by posting its safest-ever year at less than 2.5 injuries per 200,000 man hours worked — a 65 percent decrease compared with 2001. In addition, ARRC replaced five times more rail in 2006 than in 2001, while bridge rehabilitations and replacements increased 67 percent, tie replacements rose 33 percent and rail surfacing increased 24 percent. During the past five years, the railroad has spent more than $75 million to construct and refurbish facilities.