Wednesday, September 24, 2008

Canadian Arctic Railway

The Canadian Arctic Railway is a Canadian company committed to constructing a standard gauge heavy haul railway in the Canadian Arctic regions.
An Arctic Railway with connections to Alaska could have far-reaching positive economic benefits for British Columbia, Alberta, Alaska and the Canadian Arctic as a whole. It is proposed to establish a 15,000km to 25,000km standard gauge railway network, in the Canadian Arctic, to be completed in three phases over the next 25 to 35 years. The first phase proposes to acquire or negotiate operating rights over approximately 1,500km of existing railway in B.C., Alberta and the Yukon, as well as construct approximately 3,000km of new railway in B.C., the Yukon and Alaska. This phase could be completed within approximately 10 years and would include connections to Alaska. The second and third phases would extend the network into the rest of the Western Canadian Arctic and then the Eastern Canadian Arctic consecutively, at approximately 10-year intervals.
Presently work is being carried out to define a single route through the Yukon with a connection to Alaska. This route would require the construction of approximately 1800kms of new line and could be completed in 3 to 5 years depending on the approval process. Once startup funding is in place economic and environmental overviews of the total project will have to be carried out so efforts can be focused on the most appropriate startup route.
It is envisioned that the funding for the project definition would come primarily from the private sector. By the completion of the project definition for the first phase, construction permits will have been obtained, a formula for first nation involvement will have been finalized, the proposed existing lines will have been acquired and/or operating rights negotiated and construction of new lines would start.
The project definition will require the establishment of approximately a 100-person development team in Whitehorse, Yukon. Department heads have already been recruited to set scope and goals for the project definition phase. Recruiting for the full development team will commence on obtaining initial startup funding. It is also intended to negotiate rail acquisitions and/or operating rights over some existing railways or segments immediately upon obtaining startup funding.
Depending on the construction standard selected, railway lines in Arctic regions could be built for an average of between $500,000 & $600,000 per mile for developmental standard and between $2,000,000 & $3,000,000 per mile for mainline standard including bridges but not including any major tunnel work. If developmental standard were used at first, the route would have a planned upgrade program based on projected increases in traffic and revenues.
Not to be taken lightly, this would be a massive undertaking, with potential positive effects for the whole of the Canadian and American economies. It is envisioned at this stage to involve primarily private sector financing for acquisitions and new construction. We are pursuing involvement of the governments through potential issuance of land grants from unused or undeveloped government crown lands as well as assistance facilitating the environmental and aboriginal approval process.

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