Fine Gael Donegal North-East TD Joe McHugh has called on the Government to assist county councils in developing plans for a rail link through the northwest.
"A report by transport researcher Brian Guckian examined the tourist potential of running a railway from Sligo to Donegal and on to Letterkenny and Derry," Mr McHugh said in a statement at the weekend.
"This would join the north-west to a 'Round Ireland' rail route and would bring a €20 million annual tourism dividend to the region. Plans must be drawn up to link Letterkenny with a high-speed rail link to Derry's airport.
"The opportunity for greater cross-border co-operation on infrastructure brought about by the executive in the North should be seized. Each local authority should appoint a director of services or a senior official to work with the county manager to co-ordinate major cross-border infrastructure plans in the Border counties."
Mr McHugh said that a rail link between Derry and Sligo "would be evidence of what cross-border co-operation can bring in the new political environment".