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Morrison–Knudsen

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Morrison–Knudsen
Company typePublic (until 1996)
IndustryCivil engineering and construction
Founded1912 in Boise, Idaho, United States
FounderHarry Morrison and Morris Knudsen
Defunct1996
FateFiled for bankruptcy; acquired by Washington Construction Group; brand became part of AECOM in 2014
SuccessorWashington Group International (later part of AECOM)
Headquarters
Boise
,
United States
Area served
Worldwide
Key people
William Agee (CEO, 1988–1995)
ProductsCivil engineering projects, construction, locomotive manufacturing (via MotivePower division)
Number of employees
Approximately 8,500 (at peak) (1998)
ParentWashington Construction Group (from 1996)

Morrison–Knudsen (MK), an American firm specializing in civil engineering and construction, was based in Boise, Idaho. The company made notable contributions to major infrastructure projects worldwide, including the Hoover Dam, San Francisco–Oakland Bay Bridge, and the Trans-Alaska Pipeline. Founded by Harry Morrison and Morris Knudsen, MK operated on a global scale, focusing on extensive construction and engineering endeavors. Its business structure featured divisions such as MotivePower (1972–96), which concentrated on manufacturing diesel locomotives. At its height, MK employed roughly 8,500 individuals and reported a net income of $1.86 billion in 1998. After filing for bankruptcy in 1996, MK was acquired by Washington Construction Group before its brand ultimately became part of AECOM in 2014.

Founders

The origins of MK date back to 1905 when Harry Morrison, serving as Chairman and President, met Morris Knudsen during the New York Canal project in southwestern Idaho. Morrison was a 20-year-old concrete superintendent working for the Reclamation Service, while Knudsen was a Danish immigrant and former Nebraska farmer equipped with horses and a fresno scraper.

Their initial collaboration involved a $14,000 pump plant project in Grand View, Idaho, in 1912. Although this early effort was not profitable, it provided essential experience. By 1914, MK had secured contracts for constructing the Three Mile Falls Diversion Dam near Umatilla, Oregon. The company concentrated on irrigation canals, logging roads, and railway construction, incorporating officially in 1923 with gross revenues exceeding $1 million. A pivotal achievement was their joint undertaking of the Hoover Dam (1932–35), which significantly elevated their industry standing.

World War II

During the Second World War, MK expanded its scope to include building airfields, storage facilities, and military bases throughout the Pacific region, along with shipbuilding operations on the U.S. West Coast. Notably, approximately 1,200 workers—including many from MK—were captured by Japanese forces on Midway and Wake Islands at the end of 1941. After the war ended, MK broadened its portfolio into various international construction markets, strengthening its global presence and influence.

Post-war projects

Throughout the Cold War era, MK secured numerous contracts both domestically and abroad, such as constructing locks on the St. Lawrence Seaway, building components of the Distant Early Warning (DEW) Line, Minuteman missile silos, NASA’s Kennedy Space Center facilities, and more than 100 major dam projects. In 1946, King Mohammad Zahir Shah of Afghanistan commissioned Morrison-Knudsen for extensive infrastructure developments including irrigation systems and a hydroelectric dam located in Helmand Province.

In the late 1950s, MK engineered the Lucin Cutoff railroad causeway across Utah’s Great Salt Lake. This structure enabled trains to operate at full speed and involved using approximately 65 million tons of rock and gravel. Additionally, MK constructed New Zealand’s Rimutaka Tunnel—the longest rail tunnel in the southern hemisphere at that time.

Following the devastating Christmas flood of 1964, MK rebuilt the Northwestern Pacific Railroad main line within 177 days by restoring 100 miles of track, 30 miles of access roads, and three bridges. During the late 1960s through early 1970s, MK also contributed to developing the Hamersley & Robe River as well as Mount Newman railways in Western Australia’s Pilbara region.

Between 1962 and 1972, MK was part of the RMK-BRJ consortium that supported U.S. military infrastructure projects during the Vietnam War alongside Raymond International, Brown & Root, and JA Jones Construction. Among their notable contributions was constructing 384 "tiger cage" cells at Côn Sơn Prison in 1971.

MK’s portfolio further included major rail initiatives such as extending Bay Area Rapid Transit (BART) and building Suriname’s Apoera-Bakhuys Railway (1976–1977), linked to the West Suriname Plan. These undertakings highlight MK’s prominent role in leading large-scale infrastructure projects across military, transportation, and energy sectors worldwide.

MK Rail

In 1972, Morrison–Knudsen launched a rail systems division that initially concentrated on locomotive refurbishment. This included work on four Delaware & Hudson ALCO PA units and Southern Pacific GE U25B locomotives, which were upgraded with Sulzer V-12 engines and designated as M-K TE70-4S. These locomotives operated between 1978 and 1987. The division manufactured locomotives under its own brand and later as the subsidiary MK Rail from 1994 to 1996, producing models such as the MK5000C and F40PHM-2C. During the 1990s, its Australian branch based in Whyalla undertook locomotive rebuild projects for Australian National and BHP.

MK Rail was spun off by Morrison–Knudsen in 1993 and became a publicly traded company in 1994. After Morrison–Knudsen filed for bankruptcy in 1996, MK Rail was rebranded as MotivePower. In 1999, MotivePower merged with Westinghouse Air Brake Company to form Wabtec, under which MotivePower continues to operate as a subsidiary.

MK Transit

During the 1980s, MK began refurbishing passenger railcars at the former Erie Railroad facility in Hornell, New York. The company overhauled numerous subway cars for New York City Transit (including R26 through R46 series), converted NJ Transit’s Arrow I cars into push-pull coaches, and serviced SEPTA’s Silverliner II and III models. In the following decade, MK maintained Metra Highliner EMUs, an Amtrak Turboliner RTL-II, MBTA commuter rail vehicles, and US Standard Light Rail Vehicles.

MK expanded into manufacturing new railcars by acquiring the former Pullman factory in Chicago in 1992. This facility produced CTA 3200 series cars as well as Metro-North M6 "Cosmopolitan" units between 1992 and 1994. After securing an order for 80 BART C2 cars, MK established an assembly plant in Pittsburg, California, in 1993. Additional notable projects included Metra gallery cars, Amtrak Viewliner I sleeping cars, and Caltrans California Cars produced from 1994 to 1996.

By 1995, MK Transit had accumulated over 60% of a $350 million net loss contributing to Morrison–Knudsen’s financial distress. To address this, Morrison–Knudsen formed Amerail (American Passenger Rail Car Company) to divest its transit division while fulfilling outstanding contracts. This new entity was financed by creditors led by Fidelity and Deposit Company of Baltimore and headquartered in Chicago.

Following completion of the BART C2 car order, the Pittsburg plant was transferred to Adtranz in December 1995. The facility then specialized in refurbishing older BART A and B cars. Meanwhile, Morrison–Knudsen lost a related rehabilitation contract to AEG Transportation Systems (later integrated into Adtranz). After unsuccessful efforts to secure new contracts through joint ventures, GEC-Alsthom acquired the Hornell site in July 1997. The Chicago manufacturing facility closed by mid-1998 after finishing Metra contracts.

Financial challenges

In 1991, Morrison–Knudsen secured a 49% ownership interest in the New Zealand-based construction company McConnell Dowell.

Throughout the 1990s, under the leadership of CEO William Agee, a Boise native appointed in 1988, Morrison–Knudsen ventured into high-risk, non-core sectors. The company recorded a substantial loss of $310 million during the 1994 fiscal year. After news of his resignation leaked prematurely, Agee departed ahead of schedule in 1995. The firm had been grappling with financial difficulties for several years before ultimately filing for bankruptcy that same year.

In 1996, Morrison–Knudsen was purchased by Washington Group for $380 million, initiating a major overhaul of its corporate structure and business operations.

Subsequent expansion

Following the 1996 acquisition, Morrison–Knudsen pursued growth through further acquisitions, elevating its status among leading American construction companies. In 1999, it acquired the government-services division of Westinghouse Electric Company, strengthening its foothold in science and technology service sectors.

The year 2000 saw MK broaden its market presence by acquiring Raytheon Engineers & Constructors, which included the engineering powerhouse Rust International based in Birmingham, Alabama. This transaction resulted in one of the industry’s largest enterprises.

Conclusion

After this acquisition, MK adopted the name Washington Group International (WGI) in July 2000. However, integration difficulties stemming from the Raytheon purchase contributed to WGI declaring bankruptcy in 2001, significantly eroding shareholder value. The company eventually emerged from bankruptcy and stabilized its operations.

In 2007, WGI was acquired by San Francisco’s URS Corporation, which was subsequently purchased by Los Angeles-based AECOM in 2014. By 2015, with downsizing efforts underway in Idaho, all remaining WGI positions in Boise had been eliminated.

Bibliography

  • "Idaho for the Curious", by Cort Conley, ©1982, ISBN 0-9603566-3-0, p. 403–404
  • "Whatever happened to SP's 'Popsicles'?" by David Lustig, Trains, May 2003, Vol. 63, Issue 5, p. 23
  • "The Wreck of Morrison Knudsen", Time, April 3, 1995
  • "Idaho company recovers", Seattle Times (AP), July 28, 2004

External links

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