(The Canadian Press circulated the following story by Darcy Henton on March 18.)
EDMONTON — Alberta is studying a proposal to build a multibillion-dollar heavy rail line linking Edmonton to Alberta’s northern oilsands.
Premier Ralph Klein said Wednesday the province is looking at a proposal could involve his government, Canadian National and oilsands companies in a public-private partnership. “The project is proceeding,” he said. “It is in the examination stage. This isn’t pie in the sky.” The premier said that with oilsands projects worth an estimated $50 billion coming on stream, it may make sense to construct a new rail line to carry heavy equipment.
A rail line could save the province the huge cost of repairing or rebuilding highways to Fort McMurray. It would also make highway travel safer by moving the heavier, slower traffic onto the rails, he said.
Liberal energy critic Hugh MacDonald says if the rail project is approved, it would be Klein’s “last spike” before he retires.
New Democrat Brian Mason also scoffed at the idea.
“It sounds silly to me because it sounds like a massive investment for only occasional use,” he said.
“It doesn’t make sense to me unless there are very, very large volumes of solid products produced in Fort McMurray that had to come south.”
CN confirmed Wednesday that the company is looking at the proposal, but added it’s premature to say it’s involved as an investor or as a participant.
A company spokesman said a feasibility study is planned.
“CN has been part of basically a very initial review involving our short-line partners, as well as some of the oilsands companies,” said spokesman Mark Hallman.
The plan would likely involve the Athabasca Northern Railway Ltd. which runs northeast from Edmonton to Lynton, about 25 kilometres south of Fort McMurray.
Traffic on the present track is limited to speeds of 25 kilometres per hour and it can only handle ultra-heavy loads in winter.
He said that the proposal considers a public-private partnership involving both the railway and the road into the oilsands area.
Hallman noted that Highway 63 connecting Edmonton to Fort McMurray is only partially twinned and is heavily congested.
“I think the recognition here is that both forms of transportation in their present condition are basically inadequate for the planned growth of the oilsands production, and I think everybody can see that,” he said.
“This is an area with high economic activity which is, from the transportation perspective, not as well served as it should be or could be.”
Hallman said CN was at the table lending its railroad expertise to these discussions.
The company would potentially benefit from long-haul movement of heavy equipment or supplies in and outbound movement of sulphur or coke, he explained.