Engineering economic analysis of a rail extension from Dunbar siding to Livengood, Alaska

Abstract

The Dunbar Siding to Livengood rail extension study is an economic prefeasibility investigation, and is conducted from two perspectives as a cost benefit analysis. The first perspective is, that of the Alaska Railroad Corporation (ARRC) in which the capital and operating costs of the proposed extension are recovered through the revenue stream resulting from the out-bound mineral freight loads, the in-bound re-supply freight loads, and the potential commuter passenger service to mining projects and communities in the Livengood area. The second perspective is that of the private sector in which a shipping sensitivity and employee transport analysis with respect to mining project developments. The large mineral resource base within the Dunbar-Livengood Corridor indicates an excellent freight potential with generous benefits for Alaska's economy of greater than $2 billion annually in gross revenues; whereas, resource and rail development are synergistic.