Expanded Railroad Depot

The National Park Service (NPS) is considering improving the design of the current railroad depot, adjacent parking lots, and access roads in the Denali National Park and Preserve entrance area. The NPS is working with the Alaska Railroad Corporation (ARRC) to improve these facilities and help alleviate the existing parking problems, traffic congestion, and safety hazards. The cost of the proposed depot expansion and facility construction is estimated at $6.2 million. The market failures not included in the cost of this project include the disturbance of vegetation, alteration of the soil and topography, and the removal of wetlands. There will also be adverse affects on the air quality and a disturbance of cultural resources. The overall visitor experience will be diminished as a result of damage to park aesthetics, a reduction in safety, and an increase in visitation and utilization of the park system.

The most prominent sources of market failures under this proposed plan are the negative externalities that would result from the reduction in vegetation and wildlife habitat and the increased congestion that would disturb the current wildlife. Construction will affect wildlife, mostly due to an increase in noise and pollution levels, and it is anticipated that wildlife will leave the area during this time. Air quality would be reduced temporarily, further exacerbating the problem of departing wildlife.