MOU signed for Alaska-Yukon rail study

Alaska Gov. Frank Murkowski has signed a memorandum of understanding with Yukon Premier Dennis Fentie to begin a feasibility study on a proposed Alaska-Canada rail corridor connection.

Murkowski said in an April 25 statement that the signing moves “the concept of an Alaska-Canada rail link forward by ensuring that a rail corridor is feasible. With our talks toward a natural gas pipeline progressing well, such a rail corridor clearly has an application.” Murkowski mentioned at the signing that the railway could be used to move gas liquids and said a railway would connect Alaska’s deepwater ports with the rest of the continent by rail, and also mentioned benefits for tourism. But the real opportunity at this time, he said, is to take advantage of synergies around the building of a gas pipeline.

The feasibility study will assess long-term social and economic benefits of a rail connection to Alaska, Yukon, northern British Columbia, Canada and the United States. Work is expected to begin in early May and be completed by June 30, 2006.

Funding will be shared equally, and will come from the federal governments. The governor’s office said Alaska will use about $2.5 million in federal funds appropriated specifically for rail corridor work.

The MOU outlines the formation, oversight and funding of the study, the Yukon said in a statement.

“By signing this memorandum, we intend to continue our momentum to ensure significant long-term and sustainable benefits to our regions,” Fentie said.

He also said that while the Yukon awaits the Canadian government’s formal commitment, “Yukon and Alaska have agreed to launch the feasibility study on our own.”

Fentie and Murkowski spent three days in Ottawa meeting with key decision-makers earlier in the year seeking support for the railway, and Fentie said they received a commitment from the Canadian government to participate in the study.

—Kristen Nelson