EDMONTON, (April 7, 2005) — A much-hyped plan to build a rail link from Edmonton to the growing oilsands in Fort McMurray, Alta. has been thrown off track after some companies appeared to back away from the proposal.

The “integrated transportation solution” — as the proposal has been named — would expand shipping options by improving surface transportation links for the massive amounts of heavy machinery, equipment, and supplies to the rapidly growing oilsands region. Currently most goods are trucked into Fort McMurray and the oilsands along Hwy. 63, creating bottlenecks just north of Edmonton.

But now some of the region’s oilsands companies — who once strongly lobbying for the freight link — say the $2.6-billion cost of the project outweighs the benefits. Canadian Press reports Suncor President Steve Williams as saying freight levels won’t be able to justify the cost of a dedicated rail line.

The province has spent more than $1 million on a feasibility study since the proposal was announced over a year ago. After hinting in the early part of 2004 that it would help fund part of the project, the Klein government said earlier this year that there would be no public ownership of the rail line.

This week, Premier Ralph Klein said the province might be willing to participate in the rail project only by donating right-of-way along Highway 63.

Oilsands executives said they will now focus on the second part of the original proposal — to enhance road infrastructure by widening Hwy. 63; building a new ring-road around Fort McMurray; and perhaps even adding a bridge across the Athabasca river.