Decision No. 223-W-1988

August 9, 1988

August 9, 1988

APPLICATION by Coastal Marine Ltd. for a licence pursuant to sections 225 and 226 of Part V of the National Transportation Act, 1987, S.C. 1987, c. 34, to provide a resupply service for the transport of goods, on an unscheduled basis, serving Inuvik, Aklavik, Tuktoyaktuk, Arctic Red River, McKinley Bay and Bar "C", Northwest Territories; and Herschel Point, Stokes Point, King Point and Shingle Point, Yukon Territory, using 234 gross tons.

DECISION: APPLICATION APPROVED WITH MODIFICATIONS.

File No. W2660.30


Coastal Marine Ltd. (hereinafter the applicant) is a company incorporated under the Companies Ordinance of the Northwest Territories, November 22, 1982.

Notice of the application for a licence was published by the applicant in the News/North on March 21, 1988 giving thirty (30) days for interested parties to intervene. A copy of the application and the Notice for Publication was also sent to interested parties. Pursuant to the said notice, an intervention dated April 6, 1988 was filed with the Agency by Northern Transportation Company Limited (hereinafter NTCL). The applicant replied to the intervention.

NTCL questions whether the applicant has provided resupply service to Aklavik, Arctic Red River and Shingle Point within the past five (5) years in order to qualify under sections 225 and 226. NTCL contends that the applicant has only provided transportation in support of industrial hydrocarbon exploration and development to MacKenzie points listed, and therefore the service does not require licensing.

NTCL objects to the locations McKinley Bay and Bar "C", Northwest Territories; and Stokes Point, King Point and Herschel Point, Yukon Territory being named as resupply points in any licence because these locations are not communities as defined by section 209 of the National Transportation Act, 1987. NTCL does not consider these places municipalities nor permanent settlements.

NTCL also objects to inclusion of any or all of Aklavik, Arctic Red River and Shingle Point in accordance with section 212 because these communities have been and will continue to be provided with substantial marine resupply service and there has been no need or request for additional service.

In its reply, the applicant states that its intention is merely to be able to serve its customers on the same basis as under the previous legislation; that the main portion of its business is from Inuvik to Tuktoyaktuk and return; that it has not been into Aklavik or Arctic Red River for years, and that it does charters, if and when required, into various other outlying locations.

The applicant also states that if it can continue these services with the same relative flexibility as before, it has no objection to the limitation of wording in its licence, however, it will not stand still for any reduction in its operating authorities.

The Agency notes that the statistics and annual reports filed by the applicant do not indicate that the applicant has carried resupply cargo to Aklavik, Arctic Red River, McKinley Bay and Bar "C", Northwest Territories; Herschel Point, Stokes Point, King Point and Shingle Point, Yukon Territory sometime during the last five (5) years. However, these documents indicate that the communities of Inuvik and Tuktoyaktuk have been resupplied by the applicant. Also, the Agency's records indicate that the applicant carried cargo which could be classified as community resupply between Inuvik and Tuktoyaktuk, Northwest Territories.

Finally, concerning NTCL's objection pursuant to section 212 stating that the communities of Aklavik, Arctic Red River and Shingle Point do not need an additional service, it should be noted that applications subject to sections 225 and 226 are not required to meet the conditions of section 212 for communities that the applicant has served within the last 5 years.

In light of the foregoing, the Agency concludes, pursuant to the relevant provisions of the National Transportation Act, 1987, and more particularly sections 225 and 226 thereof, that a licence be issued to Coastal Marine Ltd. to provide a resupply service for the transport of goods on an unscheduled basis using a maximum register tonnage of 234 tons between Inuvik and Tuktoyaktuk, only.

The Agency is of the opinion that the licence to be issued should be subject to the following conditions, respecting the quality and efficiency of resupply services that must be provided by the applicant:

The Licensee shall make available, at all times, for inspection by the Agency, or its representatives, any information respecting each and every shipment by origin and destination.

The Licensee is required to notify the Agency in writing ten (10) days prior to the coming into effect of any cancellation or material alteration in the insurance policies relating to its resupply service.

In addition since there is no year round service being provided for the transport of goods by land to the community of Tuktoyaktuk, the licence will be subject to the following condition:

The Licensee shall notify the Agency in writing one hundred and twenty (120) days prior to ceasing to provide the licensed resupply service to the community of Tuktoyaktuk.

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