April 2, 1998
(Works, Services and Transportation)

Operator for Labrador Marine Services

Works, Services and Transportation Minister Lloyd Matthews today announced a new operator for the Labrador Marine Service. Today's announcement follows the withdrawal of Burry's Marine Division Limited from contract negotiations.

The new operator is 10663 Newfoundland Limited, a consortium of companies comprised of the Woodward Group, Crosbie's Shipping and Puddister's Shipping, with the Woodward Group being the lead partner in this venture. In instances where a successful bidder withdraws, the department's standard policy is to award the contract to the next lowest bidder after further evaluation.

"There will be no delays to marine services to and from Labrador and we anticipate a start date of June 9 from Lewisporte, ice permitting," said the minister. "Nor will this significantly impact on savings projected from operating the service. The majority of savings identified are the result of less overhead costs associated with operating the service from Marine Atlantic headquarters."

The contract is for the management and operation of the two vessels, the Sir Robert Bond and the Northern Ranger in addition to the two terminals in Lewisporte and Happy Valley-Goose Bay. The contractor will also be responsible for having a representative in each of the wharf ports along the Labrador coast. The contract is for a two year period with an option to extend to a third year.

"Representatives from the new operator, and representatives of the province will visit all ports of call prior to the season to hear the views and concerns of all Labradorians and to share plans for improving services," added Mr. Matthews.

Contact: Jill Sooley, (709) 729-3015
Mel Woodward Jr., (709) 896-2421