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Study makes case for Alberta-Alaska rail link to carry bitumen, minerals
A joint universities-corporate pre-feasibility study has injected fresh life into prospects of a railway to carry land-locked oil sands bitumen and petroleum products from Alberta to the Port of Valdez.
Although offering a way around opposition in Canada to bitumen export pipelines, the proposed 1,440-mile link comes at a breathtaking cost of C$28 billion to C$34 billion, with annual operating costs ranging from C$1.9 billion to C$3.5 billion based on oil sands volumes of 1 million to 1.5 million barrels per day.
The capital estimate does not include items such as full studies and design work, engineering and environmental assessments.
The study was headed by the University of Calgary’s Van Horne Institute and involved the University of Alaska, Michigan Tech Research Institute, Shirocca Consulting, Los Angeles-based AECOM and Vancouver-based G7 Generations.
It stemmed from an approach three years ago by G7 Generations and AECOM to the Alberta government with a funding request to investigate the feasibility of building the rail link, following up a 2006 study by the state of Alaska and Yukon government to connect the Alaska Railroad from its terminus at Delta Junction to the North American rail network at Fort Nelson, British Columbia.
The G7G/AECOM proposal also gave priority to engaging First Nations in the planning and design process in return for a 50 percent profit share/equity ownership, as well as employment opportunities.
The Alberta government’s Energy Department asked the Van Horne Institute to structure and manage the proposed study.
Mineral freight included The institute also recommended the inclusion of mineral freight potential which Alaska and the Yukon had identified as resources that could be carried by rail to Anchorage, Port MacKenzie or other Canadian and United States destinations.
Peter Wallis, president and chief executive officer of the Van Horne Institute, said further feasibility analysis and environmental approval and permitting would still be needed for what he described as a “national-building project.”
“Transportation is an enabler of any economy and this initiative will unlock the petroleum and mineral potential of the north in both Canada and the U.S. We hope that governments, First Nations and industry will take the time to consider all of the opportunities that this study identifies,” he said.
Safety ‘paramount’ Wallis said safety would be a “paramount factor” in building a railway, noting that a number of routes were evaluated and ultimately rejected because of their proximity to areas that are environmentally protected, support migratory, sensitive or endangered species or are important for wildlife and biodiversity.
He said 16 to 24 specialized trains would use the rail each day.
Wallis said some First Nations and other native groups indicated during a consultation process that they would support the project.
He suggested the project would most likely be privately funded, but expressed the hope that investors would be attracted by the potential to “unlock a huge amount of mineralization” within 30 miles on either side of the railway corridor.
For now, he said the participants are asking for “thoughtful consideration” of the study by those prepared to take a long-term view of the proposal.
- GARY PARK
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