Debates of June 6, 2019 (day 80)

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Question 777-18(3): 2019 Marine Transportation Services Shipping Season

Thank you, Mr. Speaker. I am going to ask questions to the Minister of Infrastructure on MTS, which I didn't get to ask yesterday. I am wondering if MTS is well-prepared for the 2019 shipping season. I know the previous speaker asked about MTS, but I am just wondering if the Minister could provide a brief update on how things are going with Marine Transportation Services for the 2019 shipping season. Thank you, Mr. Speaker.

Speaker: DEPUTY SPEAKER

Thank you. Minister of Infrastructure.

Thank you, Mr. Speaker. I am glad that we are getting these questions so we can update the residents of the Northwest Territories. Things are going well in Hay River. This is a busy time of year down at MTS getting everything ready and in the water. It is a highly regulated business. Transport Canada is down there. The insurance companies will be there going through our vessels and through all the inspections.

To update the House with what is going on there, the Kakisa has been inspected. That is the tug that we use around the harbour to move stuff around. That is in the water for the last couple of weeks. The Vic Ingraham is in the water, now going through its annual inspection with Transport Canada.

All six barges for the first northbound tow from Hay River are approved for loading. They have already been inspected and ready to be loaded. As I said, the first load of trucks are coming in with our fuel. They will be loading those up and getting ready for them to be able to leave here in the coming days. That is six barges. They are going to depart on June 14th. This is the tentative scheduled sailing date of those.

Of the three vessels that were wintered in Inuvik last year, two are up and running. One is already performing services for Imperial Oil in the Delta. Barges in Inuvik have been loaded with southbound freight. The vessel Edgar Kotokak and the Kelly Ovayuak are preparing to leave Inuvik southbound following behind the Canadian Coast Guard, Eckaloo. Thank you, Mr. Speaker.

I appreciate the update. It is good to know what is going on and how the logistics of preparation for shipping. I understand that our only rail line to the Northwest Territories is interrupted. If the rail line is interrupted, how will fuel come north, and what is the department doing about this?

As we have updated the House last week, we know the rail line is down with the bridge burning down at Steen River and a number of the rails are being warped. That work is being performed. As I have said, we are working with the trucking companies to bring petroleum products to Hay River. The department is in daily communication with our fuel supplier, Imperial Oil, regarding the impact of the recent interruption of rail services to the Northwest Territories. Imperial Oil is working closely with CN, with the trucking companies, and with their customers to maintain the supply of fuel into the territory. This is a priority for them as well as for us.

I recall last year when we were talking about the cancellation and possibly shipping by truck and what the cost would be, definitely more expensive. Will the change from shipping fuel by rail to trucking fuel cause a delay in the barge departures or deliveries in the Nunakput region this year?

At this time, Marine Transportation Services does not foresee any significant delay in the delivery of fuel to Hay River or delay in the sailing schedule. The department is working closely with the fuel supplier, with CN and the truckers, and has an alternate supply of sources and transportation plans in place. However, the situation is fluid and can change very quickly.

Speaker: DEPUTY SPEAKER

Thank you. Final oral question. Member for Nunakput.

Thank you, Mr. Speaker. I appreciate that. Last year, the ice definitely had a big impact on shipping. I understand that trucking fuel is more costly than transporting by rail. Can the Minister tell me what impacts this will have on fuel prices for the communities of the Northwest Territories? Thank you, Mr. Speaker.

Yes. It does cost more to truck the fuel versus moving it by rail. However, Imperial Oil has stepped up to the plate on this. They have told us that they will pay the extra costs for transporting the fuel. They will also move the fuel by truck and will manage the transportation. The Government of the Northwest Territories will only be paying for the original rail rates for the fuel supplied to the Government of the Northwest Territories for 2019 barge season. There is no impact on the price of fuel in the communities that are served by the Government of the Northwest Territories through the Petroleum Products Program. We owe a thanks of gratitude to Imperial Oil for stepping up to the plate for the residents. Thank you, Mr. Speaker.

Speaker: DEPUTY SPEAKER

Thank you. Oral questions. Member for Kam Lake.