A potential $1.8-billion oilsands road and railway upgrade in resource-rich Northern Alberta is headed in the right direction but stops short of meeting the region’s transportation needs, says a key political player.

Fort McMurray Mayor Doug Faulkner welcomes the possibility of improving road and rail links between Edmonton and Fort McMurray, and to the adjacent oilsands projects, though he stresses more is required if the province wants to maximize the economic opportunities being generated by oilsands mega-projects.

With a total of $86 billion in oilsands development announced for the 1997-2011 timeframe, including $54 billion worth of projects expected to be completed by 2011, 17,000 jobs could be created, say Fort McMurray officials.

“Fort McMurray desperately needs more attention from the province because of the resource activity. This is where it is happening, this is the hand that feeds the province – a large economic engine that is contributing to the success of Alberta,” said Faulkner.

Doug Faulkner

“The railway idea, I think, is long overdue,” he added.

“That railway should have been rebuilt and restored a long time ago. So this is a good thing.”

So is talk of improving Highway 63, the main route between Edmonton and Fort McMurray, said Faulkner, referring to changes that could be implemented if a new $2.5-million Oil Sands Transportation Initiative turns in a report recommending these modifications.

The Athabasca Oil Sands Transportation Corp., recently formed to verify a business case study already undertaken by major industry partners in the oilsands region, will examine the benefits of improving and integrating all surface transportation links between the Edmonton Capital Region and the oilsands zone of Fort McMurray.

The project’s proponents hope this can be accomplished through a so-called P3, or public-private-partnership.

For Jim Gray, chairman of the Athabasca Oil Sands Transportation Corp., the new study means the group will be able to dig deeper and do more work than the initial case study.

The project also brings in Paul Giannelia as a director.

Giannelia is president of Calgary-based SC Infrastructure, and was the project manager on the Confederation Bridge that now links New Brunswick and Prince Edward Island.

Gray said improvements to be considered include a bypass around the western side of Fort McMurray.

There’s also the upgrade of rail facilities to increase heavy rail capacity between Edmonton and Fort McMurray.

In terms of possible new roads around Fort McMurray, Gray said all options will be considered.

“As for the movement of people, of course this opens up the opportunities in the future between Fort McMurray and the mines, and Fort McMurray and Edmonton, but it’s not one of the primary near-term objectives at this time,” said Gray.

However, Faulkner is concerned that this initiative is oil-industry driven and relates too much to oilsands freight requirements while ignoring other areas such as moving people.

He said if the study results in moves to straighten the rails and rebuild roadbeds as part of an improved north-south rail link, non-freight aspects should be considered at the same time.

With hundreds of buses transporting employees to the oilsands sites daily, the wear and tear on the roads because of the extra weight, along with the time factor – it takes longer to get to work because of more people, more projects and jobs further away from Fort McMurray – planning for the non-freight factor is important, said Faulkner.

“Many feel that they should look at rapid high-speed rail transit between the (oilsands) plants, Fort McMurray and Edmonton, in light of the fact that Edmonton’s downtown city centre airport could be shut down,” said Faulkner. “This would be a corrective and visionary step to take and I think the high-speed rail link should go to Calgary, too.”

A series of open houses, yet to be scheduled, will be conducted during April and early May for the public and any other interested parties.

The $2.5-million study pricetag will be cost-shared, with various oilsands industry partners contributing $1.25 million. The remaining portion will be covered by the provincial government.

The study is to be completed by July 15 and forwarded to the province for further consideration.

Assuming agreement can be reached on the P3 portion of the project, construction could begin in the spring of 2005, with completion scheduled for late fall 2008.