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Lloyd Matthews
Minister of Works, Services and Transportation
Address to The Combined Councils of Labrador

January 30, 1998


Introduction

Good afternoon. I want to thank the members of the Combined Councils of Labrador for inviting me to speak at this year's annual general meeting, and in particular, for dedicating an afternoon session to transportation issues.

Here in Labrador, transportation is a very significant issue for communities which rely 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.

In recent years the voice of Labradorians has been stronger than ever before. Labradorians are very aware of the unique challenges to transportation posed by the geography and by the climate of Labrador. Historically, many Labrador communities have been isolated and without access to consistent and reliable transportation services for freight, mail and for personal travel. In fact, the isolation of many Labrador communities have led to a lifestyle that defines much of the Labrador culture. For instance, the deep affection of the people on the Labrador coast for William Grenfell's medical trips to Labrador, is as much a part of the culture as the fishery. The stories of Grenfell told by the people of the coast are a testament to the kind of isolation many residents have experienced.

While isolation is still a factor today, there is a recognition by residents that improvements need to be made in order to thrive and flourish into the next century.

Today, the people of Labrador, and the companies that do business in Labrador, need an improved transportation network. Indeed, an effective transportation link goes hand in hand with the economic development opportunities throughout the region. There is a clear need for a combination of road, air and marine services which will enhance travel throughout Labrador, making the movement of goods and services flow faster and more cost effectively. We understand that need and we are working toward a long term plan to ensure you have the infrastructure in place to bring you forward into the next century.

Over the past several months, a lot of positive things have been happening in terms of designing, planning and implementing this improved and reliable system of transportation for the people and businesses of Labrador. I know that all of you are anxious to hear about what those plans are so allow me to take this opportunity to update you on the progress of the Labrador Transportation Initiative, and provide an overview of a recent study into transportation on the Labrador coast. Specifically, I will provide an update on the Trans Labrador Highway construction projects for 1998 and outline government's plans with respect to ferry services for the coming year.

Labrador Transportation Initiative

In April of last year, the province entered into an agreement with the federal government to assume all responsibility for marine services to Labrador, with the province receiving $340 million to provide transportation services. Arising out of this agreement, the province approved the Labrador Transportation Initiative, a $340 million fund earmarked exclusively for improving the transportation network to and within Labrador. There are essentially two components to the Labrador Transportation Initiative; the development and construction of the Trans Labrador Highway and the provision of marine services to Labrador.

SGE Report

Once the agreement was signed between the province and the federal government, we engaged a consultant to assess the full range of transportation needs of residents and business in Labrador. The SGE Group was asked to identify the strengths and weaknesses in the current transportation system. The consultants were also asked to identify present, as well as the future transportation needs for the region in light of the economic development opportunities occurring throughout Labrador, and in light of the development of the new Trans Labrador Highway over the next several years.

The consultants visited communities throughout Labrador and sought their views and concerns on air, road and marine transportation services. The input received from stakeholder groups and from the general public was instrumental in preparing the report. My department has now received this report and we are currently reviewing it with a view to developing a long term operational plan for the range of transportation needs of the Labrador region.

The SGE Report is an internal document to help guide us in developing a long term operational plan for providing transportation services to Labrador. It is our intention to share this long term plan with stakeholders and with the public once it has been finalized.

Trans Labrador Highway

Of course one the key areas of consideration of the SGE Group, was the development of the Trans Labrador Highway. It is certainly going to have an enormous impact on the way people travel and on the way goods are delivered to and from Labrador communities.

Construction of the Trans Labrador Highway is proceeding in three phases; the first of which involves upgrading the road between Happy Valley-Goose Bay and Churchill Falls to a high standard gravel road in three years. Phase II will see a road competed between Red Bay and Cartwright completed over the next six years. The total cost for completing these two construction projects is approximately $190 million. The third phase of the Trans Labrador Highway Project involves highway construction between Happy Valley-Goose Bay and Cartwright Junction.

Already, substantial progress has been made on phase I, Happy Valley-Goose Bay to Churchill Falls. During the last construction season, approximately 120 kilometres of road was completed from Happy Valley-Goose Bay, towards Churchill Falls. In addition, a new granular driving surface was placed on 57 kilometres of the highway in Labrador West, near Wabush.

In the coming year, we will continue work on Phase I with a number of highway improvement projects planned. We will complete the section started last year between Bob's Brook and Cache River, approximately 38 kilometres. We will also be doing some upgrading work on 80 kilometres of road between Wilson River and Churchill Falls. Also this year, from Churchill Falls, west towards Wabush, a new granular surface will be placed on about 42 kilometres of road. And finally this year, we want to begin constructing a road between Cartwright and Paradise River.

In 1998, $36 million will be spent in the construction of the Trans Labrador Highway. The tenders have been called and announcements on successful bidders will be made shortly. By 1999, the first phase for this particular section of the Trans Labrador Highway will be complete.

We know that in constructing this highway, we must take every effort to protect the pristine Labrador environment. We must ensure that we have the transportation infrastructure that meets the needs of people and businesses throughout Labrador, without compromising the environmental standards expected. In that sense we are currently carrying out environmental assessments for the coastal highway before finalizing the actual construction schedule. While we have every confidence that the coastal highway between Red Bay and Cartwright will be completed within the six year time frame, we are also ensuring we plan this and other projects with environmental stewardship.

Marine Services

I know all you are anxious to hear about what=s in store for the 1998 ferry operation in light of the recent federal/provincial agreement which gave responsibility for Labrador ferry services to the province. Although Marine Atlantic continued to operate the service on contract to the province, we are are now seeking a private operator to service Labrador. I am pleased to announce today that this tender will be called next weekend.

The tender will be for one operator to manage and operate the vessels, Sir Robert Bond and The Northern Ranger, in addition to the management and operation of the Lewisporte and Goose Bay terminals.

The contract will be for a two year period with an option by the province to extend the contract for a third year. The contract for the two freighters, M/V Astron and M/V Northern Cruiser will not expire until the end of 1998, at which time we will explore the options available to us. By the end of the operating season for 1998, we will have in place, a five year operational plan.

For the upcoming year, there will be a few positive changes in the marine services. I am pleased to tell you today that;

There will not be a rate increase this year, for the first time in approximately five years.

The minimum shipment rate will be broken down into two categories, shipments 50 kilograms or less will cost $20.00, shipments over 50 kilograms will remain at $35.00.

The jockey charge for vehicles using the Sir Robert Bond will be reduced from $45.00 to $35.00.

For the first time ever, the local residents will be able to call a new 1-800 number and book a reservation on the Northern Ranger. A deposit will be required, similar to the Sir Robert Bond in previous years. The number to call is 1-800-NFLD.

The freighters, the Astron and the Northern Cruiser will operate opposite one another. This will enable us to have a freighter leaving Lewisporte at least every ten days, weather permitting. A notice will go out to the major suppliers explaining this change.

Another important and very positive change is the fact that any heavy equipment moving on the coast exclusively for use by the Community Councils will see a 50 per cent discount on the heavy equipment rate.

The schedule for the Sir Robert Bond and the Northern Ranger will be status quo to last year.

The Sir Robert Bond will depart Lewisporte on June 9, ice permitting, and will continue in the passenger mode until September 8, at which time she will continue to move freight with the close of the shipping season to Goose Bay.

The Northern Ranger will depart St. Anthony on July 1, calling all ports to Nain, again ice permitting. The Northern Ranger will make the last run for the season from St. Anthony on October 17.

Cruising Labrador packages will be offered again this year. We expect that industry to remain at similar levels as last year, with approximately 145 passengers visiting the Labrador coast through these tourism packages.

The Northern Princess will continue to provide ferry services from St. Barbe to Blanc Sablon this year. Dredging is required at Blanc Sablon before the Prince Edward is able to make her trial run.

Once the contract has been awarded and an operator has been selected to deliver ferry services to Labrador, the operator, together with a representative from the province will visit all ports of call to meet with the Councils to hear your concerns and to ensure the new schedule sufficiently meets your needs.

Conclusion

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 those 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 through the establishment of the Labrador Transportation Initiative. 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 the existing and the new industries.


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