April 26, 1999
(Executive Council)

Red Bay to Cartwright Highway announced

Premier Brian Tobin, along with Ernie McLean, Minister Responsible for Labrador, and Lloyd Matthews, Minister of Works, Services and Transportation (Acting), announced at news conferences today in St. John's and Mary's Harbour that construction of the Red Bay to Cartwright Highway will commence in June of 1999. On hand for the announcement was Labrador MHA Yvonne Jones.

The construction of a road from Red Bay to Cartwright is a four-year project costing a total of $130 million, of which $36 million will be spent this year.

Tenders will be called in May and contracts will be awarded in June. The road will result in the creation of seasonal employment for 5,500 people.

Upgrading of the road from Churchill Falls to Happy Valley-Goose Bay will be completed in the 1999 construction year at a total cost of $60 million.

Under the 1997 Labrador Transportation Initiative, signed between the federal and provincial governments, an amount of $340 million was turned over to the province to improve Labrador's infrastructure including $150 million to improve Coastal Labrador Marine Services.

Premier Tobin said: "Every dollar under this compensation package is being used to build the highway and to maintain necessary ferry services in Labrador.

"This agreement makes it possible for the province to complete the Labrador West to Happy Valley-Goose Bay section and to complete the link between Red Bay and Cartwright. To connect Happy Valley-Goose Bay with the coastal communities, the province will need to provide additional funds."

Premier Tobin described the highway as a symbol of freedom and mobility for the people of Labrador, adding that it will open the Big Land to the world.

"Government recognizes that the people of Labrador and the companies that do business in Labrador need an improved transportation network. There is a clear need for a combination of road, air and marine services that will enhance travel throughout Labrador, making the movement of goods and services flow faster and more cost effectively. Government has the utmost respect for the unique beauty of Labrador and every effort will be undertaken to protect the pristine environment of Labrador."

The Minister Responsible for Labrador said the government listened to the people of Labrador when they clearly expressed a desire and a need for an all-weather highway.

Mr. McLean said: "Government made the highway a top priority. As we approach the new millennium, the challenge is to renew and sustain our infrastructure and make every means of travel safer and smarter."

Mr. Matthews, the acting minister of WST, said: "Transportation must be seen as a way to improve the quality of life of our people.

"Transportation is essential to our economic growth and stability -- the movement of people, goods and services to and from local, national and international markets is dependent upon an efficient transportation network and is the key to our economic competitiveness."

Ms. Jones said: "Transportation is a very significant issue for Labrador communities which rely heavily on a dependable transportation infrastructure for both personal travel and for the movement of goods to and from communities within Labrador and the rest of Canada.

"Historically, many Labrador communities have been isolated and without access to consistent and reliable transportation services for freight, mail and for personal travel. While isolation is still a factor today, there is a strong recognition and commitment by government that improvements need to be made in order to thrive and flourish into the next century."

Ford Rumbolt, speaking on behalf of the Combined Councils of Labrador, said: "Labrador is poised to benefit tremendously from the vast array of economic projects such as Voisey's Bay, mining activity in Labrador West, hydroelectric projects and the fishery to name a few.

"The success of all of these projects largely depends upon the efficient and effective flow of goods and services within Labrador, and to and from Labrador. To that end, we have made some real progress. With a new highway, an improved ferry service and the ongoing presence of air services provided by the private sector, Labrador will be poised to reap the benefits of existing and new industries."

Media contact: Heidi Bonnell, (709) 729-3960.

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BACKGROUNDER
LABRADOR TRANSPORTATION INITIATIVE

In April of 1997, the federal and provincial governments announced an agreement that transferred responsibility for Labrador Marine Services to the province. In exchange, the province received a $340 million cash settlement, and two ships valued at $25 million.

THE RED BAY TO CARTWRIGHT PROJECT

• More than $190 million to be invested in upgrading and expansion of the highway.

• The highway will provide the people of Labrador with the kind of road system needed to permit continued economic growth.

• It will open Labrador to new economic development opportunities in tourism, forestry, mining, the fishery and other areas.

• The next four years will see the completion of a new highway from Red Bay to Cartwright.

Construction Program

• Upgraded, to a high-standard gravel surface highway, the road from Churchill Falls to Happy Valley-Goose Bay.

• Three-year construction period began in 1997 and will be completed in 1999.

• Planning, design, and environmental assessment for the Red Bay to Cartwright Highway.

• Construction of the road from Red Bay to Cartwright at a total cost over four years of $130 million, with $36 million to be spent this year.

• Construction encompasses a total of six projects this year.

• Red Bay towards Lodge Bay - 18.5 km

• Lodge Bay towards Red Bay - 16.5 km

• Port Hope Simpson towards Mary's Harbour - 23 km

• Charlottetown Access Road - 20 km

• Cartwright towards Paradise:
  (a) km 0 - km 20
  (b) km 20 - km 40

Employment and Investment Benefits

• Upgrade of road from Churchill Falls to Happy Valley-Goose Bay

• Seasonal employment for 3,000 people.

• Investment of $60 million

• Red Bay to Cartwright.

• Seasonal employment for 5,600 people.

• Investment of $130 million.

General Economic Benefits

• New highway construction in each of the next four years.

• New highway construction jobs (over 8,600 seasonal jobs to be created).

• Improved road transportation system.

• Improved year-round distribution of goods for all of Labrador, including the north coast.

• Improved and expanded tourism opportunities (as was the case in Alaska).

• Improved access to existing/potential resource developments in mining, forestry.

General Social Benefits

• Greater interaction among Labrador residents in communities previously considered remote or isolated.

• Greater access to health, education, and recreation facilities in Labrador.

• Eliminates the sense of isolation within Labrador, between Labrador and Newfoundland, and with other parts of Canada.

• Reduced personal and business travel costs.

LABRADOR FERRY SERVICES

• Contract awarded to Coastal Labrador Marine Services Ltd., 10663 NFLD Ltd., for two years (1998/1999) with government option to extend the contract for an additional year.

• Contract calls for the operation/management of the government owned vessels, M/V "Northern Ranger", the M/V "Sir Robert Bond" and the Goose Bay and Lewisporte marine terminals as well as all other port facilities serving Coastal Labrador ferry services.

• Contract includes management of two chartered freight vessels, the M/V "Astron" and the M/V "Nada" during the 1999 operating season.

• "Cruising Labrador" component of the passenger/freight service offered on the M/V "Northern Ranger" provided under separate agreement between the Department of Tourism, Culture and Recreation and the VTTA (Viking Trail Tourism Association).

• Yearly government budget for Labrador Marine Services -- $14 to $15 million range.

• Rate freeze on all intra-provincial ferry services remains in effect.

• Minimum shipping rate broken down into two categories -- shipments 50 kilograms or less, $20; shipments over 50 kilograms remain at $35.

• Jockey charge for vehicles using the Sir Robert Bond will remain at $35.

• Local 1-800-NFLD call number to book a reservation on the Northern Ranger.

• Heavy equipment (exclusively for use by the Community Councils) will see a 50 per cent discount on the heavy equipment rate.

• Schedule for Sir Robert Bond and Northern Ranger same as last year.

• Sir Robert Bond departs Lewisporte June 9, ice permitting, and continues in the passenger mode until September 8, then continues to move freight with the close of the shipping season to Goose Bay. WST commitment to stop at Cartwright on the first trip up.

• Northern Ranger departs St. Anthony on July 1, calling all ports to Nain, again ice permitting. Northern Ranger makes last run for the season from St. Anthony on October 17.

• Cruising Labrador packages offered again this year.

• Northern Princess continues to provide ferry services from St. Barbe to Blanc Sablon.

• Service has capacity and flexibility in the schedule to accommodate a major influx of traffic, particularly heavy equipment and trucks, which may be associated with the construction of the Red Bay to Cartwright Highway.

1999 04 26                      11:35 a.m.