Go North

Canadian transportation policy has often failed to recognize the unique challenges and opportunities in Northern Canada.

Canada’s greatest transportation policy challenges relate to the North.

Deposits of oil, gas, and minerals are dispersed over the vast territory of Canada’s north. The decision to exploit these resources depends on numerous factors including the distance of the resources from world markets, the infrastructure in place, the environmental impact of mining and transporting the resources, and ultimately, the value that these resources bring to the people of the North.

But government transportation policy has in many cases failed to recognize the unique challenges the North faces. Ottawa has not recognized that government policy as it applies in the rest of the country does not necessarily fit the circumstances of the North.

The Van Horne Institute has been honoured over a number of years to work with northern residents, industries, and governments to present conferences in Yellowknife, Whitehorse, and Iqaluit, designed to identify northern transportation issues and opportunities.

If we start with the premise that development of northern policy must take into account the culture of the people, the vastness of the territory, the weather, the physical terrain, the difficulty in locating and harvesting resources, and the interaction between various levels of government, you have a real policy challenge, perhaps the toughest and greatest in this country.

The first challenge lies within governments. There are several federal departments with overlapping mandates. The Canadian Northern Economic Development Agency (CAN NOR) was recently developed to address policy challenges and to potentially coordinate the collective responses of the Government of Canada to the identified challenges. In addition, there are the important policy responsibilities of the Territories and the communities. Is there sufficient understanding that, simply put, the North is different?

The final report of the northern transportation research program developed by Transport Canada suggests, “Transport Canada’s mandate in the North is to develop transport policies and regulations that maintain a high level of safety, security, and sustainability in a transportation system that meets Canada’s economic, social, and environmental needs.”

Perhaps the focus needs to be shifted slightly to contemplate a policy regime that acknowledges and is responsive to northern Canada’s economic, social, and environmental needs – a related, but separate set.

For instance, take the deregulation of air services. At our conference in Iqaluit in September 2009, northern carriers argued that deregulation in Canada does not fit the reality of northern markets. Deregulation increased the level of competition on southern routes to such an extent that they are less able to provide an adequate level of service for remote communities. Serving northern communities is especially expensive because it requires specialized aircraft capable of hauling passengers and large quantities of freight, and of landing in communities with gravel runways.

Vast mineral resources extend across the northern territories, but will require significant expertise in logistics and infrastructure investment to be harvested. Traditionally, government has provided some infrastructure funding, leaving the private sector responsible for the major funding of any resource extraction process. Perhaps a different approach such as P3s should be looked at as an alternative to the traditional methods of financing such projects. To mine these resources, policy makers will also have to address big issues such as railway links between Canada and Alaska, including a potential link to Skagway and a deep water port at Bathurst Inlet.

A key first step must be the extension of existing and new surface linkages by road and rail. While there is very limited road connection between southern and northern Canada and even less road connectivity in the north, policy developers should address innovative ways of ensuring that north-south road networks are improved. A good example would be the proposed link between Manitoba and Nunavut with an all-weather road. Such a road would provide savings for freight and passenger traffic, but can only be accomplished at a significant cost. Innovative financial proposals from industry could create a prime example of how government and industry can work together to financially support northern infrastructure development.

The North is Canada’s greatest developing asset. But to profit from this asset, policy makers will have to acknowledged and grapple with the unique challenges it poses. We need to step back and analyze whether governments and industry are using the right tools – that is, tools developed in the North, for the North – to get the job done.