Trump to Approve $22B Railway Between Alaska and Alberta
September 28, 2020
U.S. President Donald Trump says he will grant approval to a $22-billion freight rail project connecting Alaska and Alberta.
The president tweeted Friday that based on the recommendations of Alaska Senator Dan Sullivan and Congressman Don Young, he will be issuing a presidential permit approving the A2A Rail project.
The project would build a new rail line from Fort McMurray, Alta., through the Northwest Territories and Yukon to the Delta Junction in Alaska, where it will connect with existing rail and continue on to ports near Anchorage.
The 2,570-kilometre railway could move cargo like oil, potash and ore, container goods, or even passengers.
Christine Myatt, a spokesperson for Alberta Premier Jason Kenney, said in an emailed statement that the premier welcomed the approval.
Kent Fellows, an economist at the University of Calgary’s School of Public Policy, said while oil is likely the main driver for the project, it’s not the only advantage to bringing a rail line up north.
“Rail has some advantages and some drawbacks compared to pipelines,” he said.
“You can diversify a little bit … you don’t just have to haul crude oil. You can hold a lot of other commodities, too, as long as there’s a market for it. So market access is big, not just for crude oil.”
Fellows said as well as carrying Alberta or Yukon goods to international markets, the line could be used for imports, too.
“That’s the whole point of trade. It’s a two-way street.”
The next steps will include going through environmental impact assessments, and obtaining the correct regulatory approvals in both the U.S. and Canada.
In July, A2A Rail commissioned an engineering firm to begin surveying land along the Alberta segment of the proposed route. It said it planned to begin field activities like land clearing, fencing and access road preparation in the province in the next three to six months.
“The new rail line will create new economic development opportunities for a wide range of businesses, communities and Indigenous communities in Canada and Alaska,” A2A founder Sean McCoshen said in a release at the time.
A2A Rail has said that if built, the project will create more than 18,000 jobs for Canadian workers and bring in $60 billion to the country’s GDP through 2040.