The federal Transport minister has indicated Canada will join with the United States in studying a northern railway just in time for the national election.

Today, Yukon MP Larry Bagnell released a letter he received last Friday from Transport Minister Tony Valeri about the possibility of a northern railway. It would travel through Alaska and the Yukon down to connecting tracks in southern Canada.

'I recommend that Canada proceed with a design-development exercise, led by Transport Canada. This would involve the identification and review of options for organizing and managing a consultative study, including available resources, other needs and costs in an appropriate bi-national process,' Valeri wrote to Bagnell.

'I will bring this matter to the attention of my colleagues and the prime minister and suggest this be communicated promptly to the U.S. government and state of Alaska.'

Bagnell said it's his understanding this will get the ball rolling on the Canadian side.

Legislation was passed in the U.S. to start a joint feasibility study on building a northern rail link by former president Bill Clinton as one of his final acts in December 2000.

Since then, the U.S., Alaska and the Yukon have been awaiting a response from Ottawa.

Last year, then-Transport minister David Collenette indicated he thought the study was good idea but there had been no response because not everyone in Ottawa agreed with him.

Valeri's announcement does not come as a surprise since Premier Dennis Fentie was told in February by Prime Minister Paul Martin that Ottawa was planning to give this project the go-ahead.

The U.S. plan set aside $6 million US for three years to study the rail link.

Bagnell said Canada would talk to the U.S. about how to conduct the study.

'It wouldn't necessarily be done exactly as they proposed (in 2000),' said Bagnell.

He said it could take a few months to sort it out with the U.S. but added there would be nothing else new about the project during the election campaign.

The announcement comes just as Bagnell, a Liberal, begins his quest for re-election as the Yukon's MP.

Bagnell said he couldn't comment on the timing of the announcement, coinciding with the start of the election.

However, he doubted it was deliberate.

'It's certainly not timed to this election,' said Bagnell.

The MP guessed that ministers like Valeri were trying to tie up loose ends like this before the election was called and he believes that's what happened in this case.

Proponents of the project in Alaska have indicated a railway, a pipeline and communications lines could be put down together in the same area at the time.

'I have considered the U.S. proposal and recognize the broad range of related issues and potential opportunities. While the initiative was originally driven by the vision for a rail link,' wrote Valeri.