The $16.44bn cross-border rail project will connect the US state of Alaska and Canadian province of Alberta. Credit: Olle August from Pixabay.

The US is set to approve the C$22bn ($16.44bn) cross-border rail project that will connect the state of Alaska and the Canadian province of Alberta.

This comes after the US President Donald Trump indicated that he will approve the Alaska-Alberta Railway (A2A Rail), which is expected to facilitate freight movement between the two countries.

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In a Twitter post, President Trump said that he will be issuing a presidential permit for the A2A Cross-Border Rail between Alaska and Canada, based on the recommendations of Alaska Senator Dan Sullivan and Congressman Don Young.

According to a CBC report, the 2,570km-long project involves the construction of a new rail line from Fort McMurray in Alberta to the Delta Junction in Alaska passing through the Northwest Territories and Yukon.

Once complete, the project will support the transportation of oil, potash, ore and other container goods. The line can also be used to enable cross-border passenger services.

In an emailed statement to the CBC, Christine Myatt, a spokeswoman of Alberta Premier Jason Kenney, said that the premier welcomed the decision.

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She was quoted as saying: “The Government of Alberta is glad to see the approval of the A2A rail project in the US. We support the development of trade corridors that can unlock new markets for Alberta’s products.”

The presidential approval is one of the many pre-requisites to begin the construction of the proposed A2A Rail project. The project now requires environmental clearances and other regulatory approvals in both countries.

In July, engineering firm HDR was contracted to carry out a detailed land survey along the Alberta segment of the proposed route.