By Timothy Inklebarger
Associated Press Writer

JUNEAU - The governments of Alaska and Yukon Territory said April 25 they will jointly study the economic and social benefits of a proposed railroad to run through Alaska and Canada.

Gov. Frank Murkowski and Yukon Territory Premier Dennis Fentie signed a memorandum of understanding establishing their intent to start the roughly yearlong study, which is expected to begin in May.

The rail link would run through Alaska, Yukon, northern British Columbia and down to the contiguous United States.

The memorandum establishes the Alaska-Canada Rail Advisory Committee, made up of members of the Yukon and Alaska governments.

The two governments have agreed to split the estimated $5 million cost of the study, Murkowski said.

Murkowski said he envisions a corridor that would incorporate the railroad, fiber optic communication cables and a potential natural gas pipeline.

"With our talks toward a natural gas pipeline progressing well, such a rail corridor clearly has an application," Murkowski said in a statement.

Yukon Minister of Economic Development Jim Kenyon said the potential project would allow economic diversification in both countries.

"It gives us a better leg from Anchorage to Atlanta or Whitehorse to Halifax or any combination thereof," he said.

Murkowski said a railroad would help Alaskans transport minerals, coal, gas liquids and other resources and provide an opportunity to promote tourism.

"If we look historically back at the role of railroads and transportation and access across both Canada and the United States, you'll find that they were significant in advancing the quality of life of those residents of those affected communities," Murkowski said.