Hay River (Mar 21/05) - The railway to Hay River is seeking funding to upgrade the line in advance of the Mackenzie Valley pipeline, according to Tim Husel, general manager of Mackenzie Northern Railway in Edmonton.

Husel estimates the cost will be between $30-$60 million, depending on the weight standard to which the line will be upgraded.

"It has to be done prior to the pipeline," Husel adds.

Currently, the line can handle 263,000 pounds per railcar up to High Level. From there to Hay River, the line can handle 220,000 pounds per railcar, except between Jan. 1 and March 31 when the ground is frozen and the weight limit rises to 263,000 pounds.

The new industry standard for railcars has risen to 286,000 pounds, Husel notes, although he adds there may not be any need to raise the standard to 286,000 pounds beyond High Level. That's because the standard for the transportation of dangerous good, such as fuel, remains at 263,000 pounds.

Husel notes, several years ago, the federal government made infrastructure money available, some of it for railways.

"The Mackenzie Northern Railway made application at that time to be considered for upgrade," he says, adding he believes Ottawa is "on side" for the request.

"The discussions are continuing at this time," he says, noting the Alberta government needs to be involved along with the private sector in an arrangement under which each side, along with the federal government, would provide one-third of the funding.

Husel says the Manning subdivision from Peace River to High Level is "pretty rough." A speed limit of 25-30 mph had to be dropped to 10-15 mph in some locations because of the condition of the line.

The 76 miles of line in the NWT to Hay River is in not as bad shape, he says.

"That line is holding up pretty good."

The Mackenzie Northern Railway operates 602 miles of line from Smith, Alta., about 120 miles north of Edmonton, to Hay River.

Currently, the railway spends about $2.5 million per year on maintaining the line.