Decision No. 466-W-1992

July 22, 1992

File No. M4255/L9

Docket No. 920271M

John R. Inglis carrying on business as Lake Athabasca Transport (hereinafter the applicant) has applied to the National Transportation Agency for a licence to operate the service set out in the title. The application was received on March 18, 1992.

Notice of the application was published on April 8, 1992 in the newspaper of the area concerned and copies of the notice were sent to carriers authorized to provide northern marine resupply services and to others believed to be interested. Interventions opposing the granting of the application were filed with the Agency by A. Frame Contracting Ltd. (hereinafter AFCL), Northern Transportation Company Limited and MacDonald Marine Transport Ltd. (hereinafter MacDonald Marine). The applicant replied to the interventions. Interventions in support of the application were filed by Mr. Jack Shields, M.P., Parliamentary Secretary to the Minister of Employment and Immigration and from Mr. Émile Girard, Chairman, Improvement District No. 18 North (Fort Chipewyan). In addition, a letter of support containing 19 signatures was submitted with the application.

The pleadings form part of the public files and may be consulted in the offices of the Agency by anyone who so desires. In addition, copies will be provided by the Secretary of the Agency on request.

The Agency has considered the application, the material in support thereof and the interventions referred to.

It is noted that the Athabasca region was served during the 1991 season by AFCL and by MacDonald Marine which provided maximum register tonnages of 2,655 tons and 240 tons respectively. Both AFCL and MacDonald Marine are authorized to serve, inter alia, all of the points proposed to be served by the applicant, with the exception of Moose Island Landing. Additionally, MacDonald Marine is not authorized to serve Fort Fitzgerald.

The applicant forecasts moving 890 tons of freight on the system in 1992. Of this traffic, 300 tons of construction material are forecasted to be moved from Fort Chipewyan to Moose Island Landing; however, the letter of support does not specifically indicate demand for the proposed service to Moose Island. Moreover, there is a winter road that links Fort Chipewyan to Moose Island. With respect to Fort Fitzgerald, the applicant neither provides a forecast of tonnage to this point, nor does it provide any evidence indicative of demand.

The letter and interventions of support suggest that there is a demand in the Athabasca region (Fort Chipewyan) for a marine resupply carrier which can haul smaller loads of cargo on an as required basis. In its application, the applicant submits that a large portion of the freight to be transported would be time-sensitive. Notwithstanding, the freight identified by the signatories of the letter of support consists of general cargo, fuel, foodstuff and heavy equipment. Furthermore, AFCL submits in its intervention that there is currently sufficient capacity available on the system to accommodate resupply requirements, including the time-sensitive transportation requirements referred to by the applicant.

AFCL indicates that tonnage to Fort Chipewyan constitutes 35 percent of its total tonnage. It further submits that overall tonnage has been declining since 1984; Fort Chipewyan accounted for the largest decline. On the other hand, the availability of a winter road connecting Fort McMurray with Fort Chipewyan and air services to and from Fort Chipewyan would put downward pressure on the demand for resupply services.

Both MacDonald Marine and AFCL state that the proposed tonnage forecast by the applicant would be diverted from their operations. AFCL maintains that the loss of approximately 1,000 tons forecast by the applicant would be substantial in terms of its operations. It also submits that if a further dilution of tonnage was to occur forcing licensed carriers to cease operations, the existing level of service would deteriorate since there would be insufficient equipment available to serve the other ports on the system.

The licensees operating on the Athabasca system from 1985-1991 were able to accommodate all traffic attributed to special projects in addition to the normal traffic demand. Moreover, there is no indication from the applicant or its supporters that special projects are anticipated to augment annual tonnages. Therefore, the Agency is of the view that the existing licensees would be able to accommodate the demand, even if special projects were initiated.

Following a thorough review of the supply of and demand for resupply services to the points requested, the Agency is of the view that there is no need for the resupply service proposed by the applicant.

Accordingly, the Agency is of the opinion that there is no need for the resupply service requested and that such a service would result in a significant decrease or instability in the level of resupply service provided to communities situated along the waters to which Part V of the National Transportation Act, 1987 applies. The application is hereby denied.