(The Canadian Press circulated the following article on September 7.)
EDMONTON — The idea of a railway linking the Athabasca oilsands to the rest of Alberta “has substantial merit” and the project would likely cost $2.6 billion, a report issued Tuesday says.
“The proposed new transportation infrastructure will result in significant reduction in travel times, transportation cost savings and improved travel safety for all users,” according to the so-called business verification report on an integrated and sustainable transportation solution for northeast Alberta.
The $2.5-million study – paid for half by the oilsands industry and half by the Alberta government – envisages a new non-profit corporation, similar to Nav Canada, which operates the national air navigation system, to finance, build, operate and maintain the rail-and-road Athabasca transportation network.
The estimated total cost of $2.6 billion would be covered with $2.3 billion in long-term debt and $300 million from the Alberta government. Construction could start next year and be completed in 2008 or 2009.
The province’s minister of economic development, Mark Norris, stated that the government “looks forward to working with industry to further explore the merits of the proposed solution and how they might be implemented.”