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Marine Transportation Services to become a Crown corporation

Freight company will move to a corporate model beginning in April 2027, according to Department of Infrastructure
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The GNWT states the new governance structure would enhance MTSSA国际影视传媒 capacity to work with federal counterparts like Canadian Coast Guard and Transport Canada. It would also increase opportunities to work with the private sector. Photo courtesy of the Department of Infrastructure

Marine Transportation Services (MTS), which delivers freight to communities along the Mackenzie River and the Arctic Ocean coast, will become a Crown corporation on Apr. 1, 2027. The GNWT made the announcement on April 16.

After a public bidding process, the territorial government says it hired an advisory firm to review how MTS is run and governed.

"Based on a thorough analysis of the findings, the GNWT believes that operating MTS through a corporate structure is necessary for its long-term success as an essential service for NWT residents and businesses," it stated.

The Department of Infrastructure announced in March 2024 that it would be conducting an independent review into MTS' operations. It came after the NWT Association of Communities passed a motion during a meeting in Hay River in February 2024 asking for a firm SA国际影视传媒渆xperienced in the marine freight industrySA国际影视传媒 to look into such things as the suitability of vessels that are used for river and sea navigation, scheduling, the financial consequence to MTS when timely delivery of freight is not carried out and communications to communities, among other items.

The GNWT added that the new governance structure would enhance MTSSA国际影视传媒 capacity to work with federal counterparts like Canadian Coast Guard and Transport Canada. It would also increase opportunities to work with the private sector, it added.

Phase one of the transition calls for administrative steps, such as writing new legislation, transferring assets such as vessels and setting up qualifications for a board of directors, the GNWT explains.

"As part of the transition, a project team and working groups will be struck to provide input on policy development, legislative drafting and operational planning," stated the GNWT.

MTS has been operated by the GNWT since 2017 and will continue to serve NWT communities, according to the Department of Infrastructure.

"Residents are unlikely to see any negative impacts on operations nor customer experience throughout the transition period," it states.

MTS reported losses of $7.1 million in 2022-23 and $5.8 million in 2021-22, although the former did not include all of the $1.6 million in costs for flying cargo into Sachs Harbour at the time, which was made necessary by the cancellation of the final barge to the Beaufort Delta community due to high winds.

In the 2023SA国际影视传媒24 season, MTS managed to make successful deliveries to 11 communities: Lutselk始e, Tulita, Norman Wells, Fort Good Hope, Inuvik, Aklavik, Tuktoyaktuk, Paulatuk, Sachs Harbour, Ulukhaktok, and Kugluktuk in Nunavut. Barges were cancelled in May 202, though, due to extremely low water levels around the Rampart Rapids south of Fort Good Hope.

That meant shipments to Fort Good Hope, Akalvik, Kugluktuk, Sachs Harbour, Paulatuk and Ulukhaktuk would be dispatched from the Tuktoyaktuk terminal.

MTS shipped a total of 3,400 tonnes of cargo during the season. Additionally, it delivered 22.7 million litres of fuel to northern communities, along with 2.8 million litres of fuel to 12 North Warning Radar sites across Nunavut, the Northwest Territories, and Yukon.



About the Author: Devon Tredinnick

Devon Tredinnick is a reporter for SA国际影视传媒. Originally from Ottawa, he's also a recent journalism graduate from Carleton University.
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