1. Infrastructure Opportunities and Challenges before the Arctic Sealift SUZANNE PAQUIN President & Chief Executive Officer Nunavut Eastern Arctic Shipping Inc. Delivered to: Northern Lights Conference 2010 Montreal 1www.neas.ca

2. 2 NEAS: People. Community. Service. Pioneers of Canada’s Arctic Trade marine transportation marshalling & packaging introduced containerization NEAS is NNI complaint Inuit majority owned, including Inuit ownership in vessels Our shareholders are our customers. Committed to socio-economic development of communities - its in our mandate. Offer training, employment, and promotion opportunities for local Inuit. Customer focused

3. Reality TV has nothing on the real extreme conditions of sealift operations in Canada’s Arctic…

4. Perspective on Arctic Extremes: climate, environment, geography, socio-economic need

5. An “Arctic Algorithm” for Basic Marine Infrastructure Algorithm /al-guh-ri-th'm/ noun a set of simple instructions that combine to accomplish a task.

6. Big Needs Need Realism “… build it and they will come” strategies don’t work for intermodal supply chains and infrastructure development. Benefits of single mega projects must be balanced against the greatest good for the great number in the short and medium term… Learn from unsuccessful examples in south of poor project planning driven by politics, not demand and priorities… We need to focus on customer demands, identify needs and set priorities.

7. Common Conditions Weather: Extreme climates, winds, currents, and short navigational season Communities: Remote, lack of marine infrastructure, no safe or secure work areas, customer dependence on marine transportation for re-supply. Mining: generally remote and distant from population centres. Government Contracting: Services are regulated monopolies by way of restrictive winner take all regional contract awards… limits customer choice, reduces competition and increases costs. Tides: many communities have high tides resulting in operational delays. Navigational Charts: Inadequate hydrographic navigational charts and data - Approximately 10% of the Canadian Arctic is adequately charted. Mooring Buoys and Navigational Aids: Deficiency exists – few Navaids and 1 Mooring Buoy in Nunavut. 7www.neas.ca

8. New Realities of the Arctic Sealift Shift towards multi purpose container vessels with lightering operations, as opposed to traditional tug and barge only operations. Solutions have to work for all users 8www.neas.ca

9. Each vessel has its own kit…

10. Marine Staging Areas 10www.neas.ca

11. Defined Staging Areas would improve cargo handling 11www.neas.ca

12. Need for “kid safe and secure” marine staging areas in each community… 12www.neas.ca

13. Outside Lighting & Fencing… a little will go a long way 13www.neas.ca

14. Improving the Arctic Sealift 1.Immediate need for safe and secure basic marine infrastructure in all local communities 2.Safe anchorage for vessels off coastal communities 3.Improved inter-governmental relations and increased focus on customers. 14www.neas.ca

15. Learning from Nunavik: identify, prioritize, execute 15www.neas.ca

16. 16 Examples from Nunavik KuujjuarapikInukjuaqTasiujaq

17. “The sooner the better...” 17www.neas.ca

18. Opportunities The federal government has money available right now for infrastructure development in Nunavut The sooner the better… we need to act now to make a difference in the next 10 years Nunavut just has to commit to an Infrastructure Initiative in the next Capital Plan, including a marine project for each community, Improve collaboration between levels of government, and this includes an INFRASTRUCTURE ADVISORY COMMITTEE Open, fair, transparent procurement process which respects customer choice and promoting competition 18www.neas.ca

19. Set Priorities and Develop a Kit Need Nunavut Advisory Committee Define the Focus Kid Safe and secure Marine Staging Area Cleared Beach areas Basic Access Ramp allowing access to Water around the tides Fencing Lighting ….. Prioritize Projects Community needs Prioritize communities Allocate $$ in Capital Budget 19www.neas.ca

20. 1 st Priority - IQALUIT Phase 1: THE CAUSEWAY 20www.neas.ca

21. Conclusion The Arctic Algorithm CUSTOMER FOCUS +IMPROVED INTERGOVERNMENTAL RELATIONS = COMMUNITY MARINE INFRASTRUCTURE 21www.neas.ca

22. 22 People. Community. Service.