The “Dease Lake Extension” railway project, started in 1970 in northwestern British Columbia, was abandomed in 1977 after costs soared five times the original estimate to $360 million (over $1.5 billion today), inciting strong opposition from British Columbia Railway. By then, the rail grade had reached Dease Lake with only the first 84 km on the southern end operational and, with the end of the project, it became known as the “Railway to Nowhere.” Is it time perhaps to look at reactivating the Railway to Nowhere project and upgrade the railway to today’s national standards as far as Watson Lake, Yukon? This would immediately trigger the development and construction of the railway link through the Yukon and into Alaska to join up with the existing Alaska railway system. There is interest in this link at the federal level in both countries as well as the territorial level in the Yukon and Alaska. In 1973, Canada had agreed to share 50% of the costs of the three-section Dease Lake Extension with BC, but BC Rail management rejected the proposal. The first section of 117 kilometers from Odell, 30 km north of Prince George, to Fort St. James was completed in 1968 at a cost of $18.5 million. The next 130 km from Fort St. James to Leo Creek (south end of Takla Lake) was completed in 1973 after $23million was spent on construction. Construction on the third section, 540 km from Leo Creek to Dease Lake, began in 1970 and, by 1975, the railway was operational to Bulkley House (north end of Takla Lake), a distance of 84 kilometers. Track had been laid as far as Chipmunk Creek, 170 km north of Bulkley House, and the subgrade was completed on the remaining 286 kilometers to Dease Lake. Total capital expended on the last section was $160 million and required an additional $160 million to complete. The final leg of 240 km from Dease Lake to Lower Post (Watson Lake) was surveyed but no construction had commenced. Total dollars spent during construction was $360 million, or, in today’s equivalent, $2.5 billion. The railway is currently used to transport logs to mills in the Prince George area. A recent study, “Alaska-Canada Rail Link Economic Benefits,” published by the University of Alaska, indicates that, once constructed, BC alone could see an additional 29,000 to 34,000 direct, indirect, and induced full-time employees earning wages and salaries estimated between $2 billion and $2.5 billion, and generating income tax revenues estimated at about $200 million. New rail-tourism opportunities that encourage overnight stays, First Nations culture, and scenic side tours would be enormous. The entire resource sector would experience significant benefits with greater access to minerals, oil and gas and forest resources, more economical shipping options, and better options to energy sources. Using 2017 railroad engineering and construction cost benchmarks from Compass International, the estimated costs for upgrading the existing line from Odell to Dease Lake would be approximately $500 million and to complete construction from Dease Lake to Watson Lake Yukon would be an additional $300 million
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