Alberta oilseeds receive rare gift – $ 22 billion US-backed export line to tidal waters via Alaska

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Hello!These may be his last weeks in office (at least according to public polls), but U.S. President Donald Trump just gave Alberta oil producers a gift.

Amid his increasingly deranged conspiracy theory tweets over the weekend, he released a more presidential tweet on Friday: “Based on the strong recommendation from @SenDanSullivan and @repdonyoung from the Great State of Alaska, I have the honor to inform you that I will be issuing a Presidential Permit for A2A transborder rail between Alaska and Canada. Congratulations to the people of Alaska and Canada! ”

Dan Sullivan is a US Senator serving from Alaska, and Don Young is a Congressman serving the Last US Frontier. The US president has been kind to Canadian oil once, having approved TC Energy Corp.’s Keystone XL pipeline project, which was rejected by former President Barack Obama. If it comes to fruition, the rail project could be another important opportunity for oil producers in Alberta who have struggled due to lack of pipeline capacity. However, rail lines are considered a more expensive means of transporting oil than pipelines.

The proposed 2,570 kilometer A2A railway aims to transport bulk goods such as oil, grain and ore in addition to containerized freight, and aims to develop “a new railway connecting the Alaska Railroad and the tidal waters of Alaska, north of Alberta.

The project is expected to cost $ 22 billion, of which $ 7 billion will be built in Alaska and $ 15 billion in Alberta, according to the company.

Construction will begin near Fairbanks, where the Alaska Railroad currently terminates, and move south and east through Alaska, to the Yukon, Northwest Territories and into Alberta.

The proposed route will link the North American rail network, via northern Alberta, to the existing Alaska rail network and the deep-water ports of Alaska.

“This is a world-class infrastructure project that will create more than 18,000 jobs for Canadian workers when they are needed most, provide a new, more efficient route for trans-Pacific transportation, and thereby connect the Alberta to Global Markets, ”A2ARail Founder and Chairman Sean McCoshen said in July, as he announced the commissioning of an engineering company to begin a detailed survey of land along the Alberta section of the proposed route of the railway.

“The new rail line will create new economic development opportunities for a wide range of businesses, communities and Indigenous communities in Canada and Alaska,” said the president. “We estimate that A2A Rail could unlock C $ 60 billion in additional cumulative GDP through 2040 and increase household income by 40% on average.”

The president of the company is Jean Paul Gladu, who was President and CEO of the Canadian Council for Indigenous Business from September 2012 to April 2020.

The Alaska – Alberta Railway Development Corporation (A2A Rail) is privately held and is funded by its McCoshen, which the company says spent more than US $ 100 million during the early stages of the project.

“As the project progresses, it is expected that A2A Rail will seek investments from infrastructure funds, sovereign groups and private investors. In addition, A2A Rail is investigating several grants and loan guarantees issued by the government in the United States and Canada to help provide the venture capital necessary for the development of the railway, ”according to the company’s website.

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