By: Matthew Marcone
CEO of Generating for Seven Generations (G7G) Matt Vickers has been working for over eight years toward the goal of constructing a major rail line connecting Fort McMurray, Alberta to Valdez, Alaska.
Now with an Assembly of First Nations National Resolution, a written letter of support from Prime Minister Justin Trudeau, political support and several investors in the ambitious $25 billion project, that dream may be closer to becoming a reality.
The proposed 2,400km rail line could potentially carry 1.5 million barrels of oil to Alaska each day, as well as other commodities such as minerals, potash from Saskatchewan and common freight.
“It has been quite the experience to say the least,” said Vickers on the project’s development to date. “It took over three [years] to get all the First Nations on board to having the feasibility study done. We literally knocked on each door, some had council meetings, others just Chief and Council, but it’s all coming together.”
The primary route would pass through High Level and Rainbow Lake, then west to Fort Nelson, however Fort Nelson First Nation has not yet signed on to the project. An alternative route north through Alberta and then west through the Northwest Territories remains as a contingency plan.
Currently the Yukon Territory is 200,000 square miles but has no rail service. Combined with Alaska, these two territories have mineral and energy resources with in-place gross values, “estimated in the thousands of billions of dollars.”
“Yet the majority of this wealth will remain stranded in the absence of heavy-haul transportation corridors,” said Vickers. “We trusted and believed in selling it as the project to do. Rail can ship anything and everything.”
The idea of building an intercontinental rail line connecting Alaska had been around since at least the 1800s. In World War II, the US Army considered building a rail line to Alaska but instead chose to build the Alaska Highway.
Vickers said it is possible that the project could be completed within a decade.
“Our timeline is aggressively two years for an environmental review and approval, and approximately six years for construction,” said Vickers, adding that total construction costs are estimated at $25 billion, which would generate approximately $3-4 billion in revenue annually upon completion.
Vickers said some of the benefits of this project to Albertans are improving transportation of oil and minerals to offshore markets, higher royalty and tax revenues, long term employment opportunities and reduced greenhouse gases.
China is expected to be a major investor in the project, as Vickers visited the country last year and had “excellent discussions” with several state-owned enterprises.
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