Alcan railroad

The AlCan Railroad : 

The AlCan Railroad Using our resources Solving our problems.

Alaska, Yukon, NWT, and AlbertaShared resources and problems : 

Alaska, Yukon, NWT, and AlbertaShared resources and problems Resources Oil Gas Fish Timber Tourism Coal Limestone Iron Precious Metals ….. ….. ….. ….. ….. ….. Problems High rural cost of goods High transportation costs High rural unemployment High energy costs Poor communications Financial Stagnation Poor Tax Base ….. ….. ….. ….. ….. …..

The Alcan Railroad : 

The Alcan Railroad Should not be confused with the Alaska Canada Rail Link. (Different Projects) Is Financially self sufficient. (Profitable) Needs broad Native Support Needs shipping commitments Needs US Federal Permission Needs Canadian Permission Needs State/Province Permission Needs Parks and Reserves Permission Needs Popular citizen support Is not environmentally perfect (still a green project) ….. ….. ….. ….. ….. …..

Ownership, Control, Construction : 

Ownership, Control, Construction As envisioned, the AlCan railroad will be owned by, built by, operated by, and employ to the maximum degree Indigenous peoples of Alaska and Canada. As envisioned, a board of directors made up of one selectee from each of the 13 regional native corporations of Alaska plus an equivalent representation of Canadian First Nations will oversee operations of the AlCan Railroad. ….. ….. ….. ….. ….. …..

The Intended Route : 

The Intended Route

Why this Route? : 

Why this Route? By staying East of the continental divide the railroad bed is much more economic to build due to less difficult terrain. Flatter terrain means less fuel use and fewer locomotives needed to move a given load. It incorporates major customers at the Makenzie Gas Project and Crest Iron Mine. It keeps hazardous loads well clear of major urban areas. It provides a much needed transportation corridor to many rural areas. ….. ….. ….. ….. ….. …..

General Description : 

General Description As envisioned, this railroad will be a 1600 mile two lane (4 rail) bi-directional railroad between Ft. McMurray Alberta and Prudhoe Bay Alaska. Each mile of this railroad will cost approximately 5 million dollars. 1600 X $5M = $8 Billion Basic Cost. ….. ….. ….. ….. ….. …..

Financial Foundation : 

Financial Foundation The financial foundation will be moving hot (135 degree C.) Bitumen in Vacuum insulated railcars from Ft. McMurray to Prudhoe Bay, and LNG from Prudhoe Bay back to Ft. McMurray in the same railcars yielding approximately 7.31 million dollars per day in transport fees to the railroad. That’s 2.67 billion in yearly revenue for an 8 Billion dollar Investment on this route alone. ..... ….. ….. ….. ….. …..

What is Bitumen? : 

What is Bitumen? Bitumen is the heaviest form of Crude Oil To be useful it must be upgraded to synthetic crude oil. Upgrading adds value to Bitumen Upgrading requires thinning oils called condensates and hydrogenation (usually from natural gas) Most of the world supply of Bitumen is in Alberta The cheapest route to move Bitumen from Alberta is through Alaska. Bitumen Transport market allows the TAP (Trans-Alaska Pipeline) to continue for many more decades. ….. ….. ….. ….. ….. ….. ..... ….. ….. ….. ….. …..

Details : 

Details 1000 Vacuum Insulated railcars leave Ft. McMurray each day with 535 bbls per car. 535K bbls total x $6 ea. = 3.21 million /Day 1000 VI railcars leave Prudhoe Bay each day with 4.1 million cubic feet of Nat. Gas. (as LNG) in each car. 4.1 Billion Cubic ft at $1 per K cu ft. = 4.1M Total railroad income per day = $7.31 M ….. ….. ….. ….. ….. …..

Alaska’s Energy Needs : 

Alaska’s Energy Needs The Alcan Railroad will meet Alaska’s energy needs by introduction of Intermodal Tanks. Intermodal tanks allow a forklift or crane to move 40,000 lbs of LNG quickly between rail, truck or barge and serve as storage tanks at the delivery point. ….. ….. ….. ….. ….. …..

Crest Mine : 

Crest Mine Chevron owns the Crest Iron Mine straddling Yukon and NWT border. This mine can easily produce 110,000 tons of Iron ore for domestic use or export each day for 350 years. That’s 1000 railcars each day with 110 tons of ore on board for 350 years from just one of their finds. They have other deposits as well in the area. ….. ….. ….. ….. ….. …..

Limestone : 

Limestone Alaska has numerous limestone deposits in the Billion Ton class. The 1.6 billion ton deposit North of Fairbanks could supply the cement or steel industry with 1000 railcar loads of Limestone per day, each railcar with 110 tons of Limestone for 40 years. The United States is a net importer of Cement. Mining of Alaska Limestone could make the U.S. a net exporter of Cement. ….. ….. ….. ….. ….. …..

Coal : 

Coal Alaska has at least 5 trillion tons of known coal reserves. If we produce 1000 railcars with 110 tons of coal in each car each day it will take 124,533 years to deplete it. Alaska has much more coal that has yet to be discovered. ….. ….. ….. ….. ….. …..

Intermodal Freight : 

Intermodal Freight The Alcan Railroad as envisioned would allow Ocean going freight from Europe to SE Asia to “shortcut” the panama canal via a railroad version of the Northwest passage. Saving up to 2 weeks transit time. 1000 railcars per day, each with 80 tons of containerized cargo could haul 30 million tons of Intermodal Freight each year. About 10% of the panama canal total. ….. ….. ….. ….. ….. …..

Passengers/Tourism : 

Passengers/Tourism With an average of 30 passengers per railcar, and 1000 railcars per day, the Alcan Railroad could easily bring 30,000 passengers or tourists to or through Alaska each day. (Although this level of passenger usage seems unlikely). ….. ….. ….. ….. ….. …..

Annual Expenses Assuming best case business : 

Annual Expenses Assuming best case business Fixed Asset Debt Service 918,000,000 Rolling Stock Debt Service 218,745,075 Fixed Asset Maint. 250,032,000 Rolling Stock Maint. 217,000,000 Operational 3,166,740,000 Facilities 59,624,000 Signals 32,628,000 Engineering Services 12,419,000 General and Administrative 77,700,000 Business Development 203,292,000 Total Estimated Expenses 5,156,180,000 ….. ….. ….. ….. ….. …..

Crude RR Income Potential : 

Crude RR Income Potential Description Day Year Bitumen 535,000 bbls X 6.00 3,210,000 1,171,650,000 Alberta Gas 4.1 Billion CuFt X .99 4,100,000 1,496,500,000 Alaska Gas ?? Unknown ??? Tourism ?? Unknown ??? Coal 110,000 tons/day X 12.00 1,320,000 481,800,000 Limestone 110,000 tons/day X 18.00 1,980,000 722,700,000 Iron 110,000 tons/day X 18.00 1,980,000 722,700,000 Cement 185,000 tons/day X 21.00 3,885,000 1,418,025,000 Sand/Clay etc 75,000 tons/day X 7.00 525,000 191,625,000 Steel 55,000 tons/day X 46.00 2,530,000 923,450,000 Intermodal Frt. 80,000 tons/day X 27.00 2,160,000 788,400,000 Total Potential Income …………………………… 21,690,000 7,916,850,000 Less Expenses 14,126,520 5,156,180,000 Income Potential 7,563,479 2,760,670,000 ….. ….. ….. ….. ….. …..

Benefit to Native Communities : 

Benefit to Native Communities Lowers cost of living for rural communities Improves employment opportunities Cheaper alternative than flying or driving May add billions in additional revenue to Native Corp. bottom line. Allows new development of other industries. Environmentally friendlier than alternatives Better control of public access wilderness resources ….. ….. ….. ….. ….. …..

Benefit to State/Province : 

Benefit to State/Province Brings additional employment (tax income) Pathway to new industries (tax income) Rapid Transport during Emergencies Environmentally less impact International transport corridor (tax income) Natural Resource development (tax income) Increased Tourism (tax income) ….. ….. ….. ….. ….. …..

The Bottom Line : 

The Bottom Line The Alcan RR is more beneficial to the Oil & Gas industry than a Gas Pipeline It will enhance the Mining Industry. Coal, Limestone, Iron, Zinc, Gold all benefit. It will encourage a Steel and Cement Industry which in turn will encourage manufacturing. It will encourage the Tourism Industry. It will provide for Alaska’s Energy Needs It will lower rural Cost of Living. It will provide much needed employment. We need to build this railroad now. ….. ….. ….. ….. ….. …..

Contact me : 

Contact me Dan Apted 907-952-1903 dan@alcanrr.com 907-277-9969 fax 1515 E. Tudor Rd. Suite 6 Anchorage, Alaska 99507 ….. ….. ….. ….. ….. …..