Resupplying the Canadian Arctic – a logistical nightmare: Commentary

Getting to Canada’s Arctic regions isn’t easy. Rail services terminate at sub-Arctic Churchill and Moosonee, although you can drive to Tuktoyaktuk in the Northwest Territories. However, getting to Tuk is not easy, or cheap; the route is more than 3,000 km from Edmonton, mostly on gravel via the Alaska and Dempster Highways and two ferry crossings.

The problem is that it is at the western limits of the Canadian Arctic, while much of the activity is in the east. This leaves marine and air transportation as the only viable options for communities, mines and exploration projects.

Air transportation is important, but costs an order of magnitude more than marine. It is also being challenged by the ageing out of the Boeing 737-200. This aircraft has been the Arctic workhorse for decades as it has a good payload and is one of the few jets capable of handling gravel runways. Gravel capability is important because there are only four paved runways in the far north of Canada: Kuujjuaq in Nunavik, Iqaluit and Rankin Inlet in Nunavut, and Inuvik in Northwest Territories.

Although air transport has the advantage of year-round access, seasonal marine resupply from the south is crucial to the existence of communities and mines. Typically a season lasts for only 150 days, but many locations have much shorter access periods. Baffinland, for example, has to ship everything within about a 90-day period.

The two primary dry cargo carriers are Nunavut Sealink and Supply (NSSI is part of the Desgagnes Group), and Nunavut Eastern Arctic Shipping (NEAS is part of Logistec). Both have resupply bases in the Montreal area that serve the 25 Nunavut communities, Agnico Eagle Mines (AEM) and Baffinland Iron Ore.

The same companies – but under different names – also serve the 14 Nunavik communities, as well as some needs for the mines at Deception Bay. The two mines in Nunavik that ship through Deception Bay are primarily served by a third Montreal-based shipping company, Fednav, using two highly specialized PC4 icebreaking bulk carries: Arvik 1 and Nunavik. These ships carry fuel and dry cargo inbound and concentrates outbound over an extended shipping season.

In the west, Marine Transportation Services (MTS is owned by the Government of the Northwest Territories) provides fuel and dry cargo service on the Mackenzie River to its remote river and maritime communities. However, their three maritime communities are currently resupplied via Tutoyaktuk.

Climate change has made the Mackenzie River non-navigable for tugs and barges at Rampart Rapids, preventing the traditional through-routing of barge tows from road and rail served Hay River on Great Slave Lake. MTS barges are double-hulled and carry fuel below deck, and dry cargo topside.

Fuel to Nunavik and Nunavut communities is shipped primarily by Coastal Shipping (part of the Labrador-based Woodward Group), and PetroNav, a Desgagnes subsidiary. PetroNav also serves Baffinland Iron Ore at Milne Inlet.

In 2024 NSSI undertook 18 community voyages using eight of their ten PC6 classed dry cargo ships. Additional voyages and ships served the mining industry, in all NSSI undertook 34 re-supply trips. NEAS used their fleet of six PC6 classed ships on 15 northbound voyages, which included mine and exploration sites. These voyages called at both Nunavut and Nunavik communities, often on the same trip. Total dry quantities shipped was probably about 250,000m³ to Nunavut, plus another 120,000m³ to Nunavik. Mine and exploration deliveries would have doubled this quantity.

In 2024, Coastal Shipping is estimated to have made 22 voyages with its fleet of 4 tankers to serve Nunavut communities, delivering a total of 220,000m³ of diesel, gasoline and jet fuel. Additional voyages served AEM, but did not all originate in the south, as the company chartered in large foreign flag tankers as mother ships. Three of these tankers were positioned for operations in the arctic; others were brought in to Newfoundland anchorages. The northern tankers carried a mix of fuel for mining activities and community use. Coastal Shipping also provides fuel for Canadian Coastguard Vessels in the north, and re-supplies North Warning System sites. It is not known how much fuel was delivered to Nunavik by PetroNav, but probably in the order of 100,000 square meters.

Community resupply delivery is complicated by there being only one community wharf in the north, at Iqaluit. All other dry cargo deliveries are lightered to the beach and delivered “above the high-water mark”. A concerted effort is being made to improve this by creating sealift ramps and laydown areas at each community. Nunavik communities already have ramps and laydown areas, while Nunavut has made a start at Pond Inlet and Kinngait (Cape Dorset).

Mine resupply is a combination of fixed and floating docks as well as beach landings.

Except in Iqaluit, and the mine docks in Deception Bay, fuel is delivered by a single 4 inch (10 centimeter) floater hose. The tanker may be anchored some way off shore, or tied up to shore manifolds, depending on water depth and proximity of shoals. Operations are at the mercy of ice and weather, and can take time.

Climate change is causing problems for both dry cargo and fuel delivery. Late season storms have become more prevalent, delaying end-of-season deliveries. Community deliveries are priced on a postage stamp basis – Nunavik is all one rate, and Nunavut communities are divided into five main areas, plus Iqaluit. While mining companies will have preferential rates based on their volumes, community costs will give an order of magnitude idea of what it costs to keep a mine running.

Representative costs in Canadian dollars for dry cargo shipments in 2024

Note that the rate for Paulatuk, in the NWT, is misleading, in that the shipper must position goods to Tuktoyaktuk. MTS may have preferred rates with a carrier, but indicative pricing for a one-freight-ton package, as part of an FTL load, is close to $1,000. In the north, one freight ton is 2.5 square meters, or one tonne.

Fuel-delivery costs aren’t in the public domain, so comparable numbers are not available. However, the 2024 retail price of gasoline in Nunavut communities (other than Iqaluit) was $1.76/liter; for motive diesel it was $1.86/litre. This compares with $2.88/liter for gasoline and $2.97/liter for motive diesel in Paulatuk. Nunavut fuel prices were actually lower than the average for Canada in 2024, where motor gasoline was $1.567/liter.

Christopher Wright is the former president of The Mariport Group Ltd, a marine and port consulting company that he formed in 1989. After retiring in 2013, Wright joined WorleyParsons Canada (now Advisian) as a marine logistics specialist.

He has written two books: “Arctic Cargo; A History of Marine Transportation in Canada’s North” (2016) and “Of Penguins and Polar Bears, a History of Coldwater Cruising” (2020).