Nunatsiavut Marine not being considered for Labrador ferry contract

The provincial government has drawn up a short-list of two companies to provide passenger, vehicle and freight services to Labrador, but Nunatsiavut Marine Inc., the aboriginal company that current provides the service to northern communities, is not one of them.

Sources say the Happy Valley-Goose Bay based Woodward Group of Companies, which currently operates the Strait of Belle Isle ferry service, and Oceanex, a St. John's based marine company that ships about half of all good to the the province, have made the short list.

Clint Davis, chair of the Nunatsiavut Group of Cos., confirmed Wednesday that the company will "not be given further consideration."

He said the company submitted a "competitive" bid, and was surprised to hear it would "not be moving forward in the process right now."

The three companies responded to a 2013 request for proposals (RFP) from the provincial government to provide marine services to Labrador over a 15-year period. 

The RFP calls for a single contractor to provide freight and passenger services for both the north coast of Labrador and the Labrador Straits.

Currently, two companies — Woodwards and Nunatsiavut Marine — have separate contracts, with Woodwards operating the Apollo, and Nunatsiavut Marine using the Northern Ranger.

Davis is disappointed there was no requirement for an aboriginal company in the bidding process since most of the communities on the north coast are aboriginal.

Nunatsiavut Marine Inc., is a division of the Nunatsiavut Group of Cos., which is the business arm of the Nunatsiavut Government. It was established in late 2005 through the provisions of the Labrador Inuit Land Claims Agreement.

The marine contract with the province represents about 20 per cent of revenues for the Nunatsiavut Group of Cos., which has annual revenues of roughly $30 million.

"If we were completely excluded from the contract it would be very difficult for us," said Davis.

MP frustrated over delays

Labrador MP Yvonne Jones discussed the issue during a meeting Wednesday with Transportation and Works Minister David Brazil.

She expressed frustration about delays in the process, and said there are "huge concerns" that a Labrador company owned by the Inuit people is not being considered.

The fact they are ruling out a Labrador company before they even get to a discussion phase and an assessment phase is wrong, and secondly, they cannot continue to waste time.- Yvonne Jones

"The fact they are ruling out a Labrador company before they even get to a discussion phase and an assessment phase is wrong, and secondly, they cannot continue to waste time," said Jones.

"They have to make this a priority and they have to get serious about awarding a contract and getting on with the job," she said.

Jones said it could be at late as 2018 before there are replacement vessels on the two services.

She said the needs of Labradorians are not being met under the current arrangement, and she questions the provincial government's commitment to the service.

"It's not fun to be cut off from services for days and weeks of the year," she said. 

Cost to provide service is 'considerable'

A statement released Wednesday by the Transportation department said the government is conducting a thorough review of the proposals with a view towards providing a service over the long-term that is affordable and sustainable.

The statement described the costs of the proposed service as "considerable," and explained that every expenditure is now under review as part of the budget process.

The province is facing a serious financial crunch because of plummeting revenues from natural resources.

Meanwhile, Clint Davis is still holding out hope that Nunatsiavut Marine can get back into consideration.

 "We get a sense ... that maybe they are looking at what the issue down the road. We're still hopeful," he said.