by Nancy Gardiner
Northern News Services

NNSL (Jan 27/97) - NTCL is now officially a fully-Northern company.

NorTerra Inc., which is jointly owned by the Inuvialuit Development Corp. and Nunasi Corp., has just completed paying off a bank loan on its purchase of NTCL, leaving the way open for new investment opportunities.

NorTerra is "actively looking into sound investment opportunities at the right price to provide some growth," said Murrie Hurley, career development and employment co-ordinator with NorTerra Inc.

"The debt reduction does lighten the load but in these times and with declining tonnages, we're continuing to ensure the company's efficiency and prices set for materials to move at the right price," said Hurley.

The final payment was made Dec. 5 to the Royal Bank of Canada in an Edmonton ceremony. The payment was made in advance of the original payment schedule, Hurley added.

Since the purchase, NorTerra has carried out several initiatives. A new head office was constructed in Hay River. And the company continually updates its vessel engines, radar and sonar equipment.

NorTerra also has interests in the housing industry through SRI Homes Inc. and the oil and gas industry through Valgro Ltd. Both companies are 100-per-cent owned by NorTerra Inc.

SRI Homes is attempting to break into the international market. It successfully bid on a contract to build and ship 800 housing units to Japan following an earthquake in that country.

Previously, NTCL was a federal Crown corporation. The Royal Bank of Canada financed the purchase in 1986.

Eddie Dillon, chairman of the board of directors, said "NTCL is an outstanding example of what aboriginal people can do when given the opportunity to participate in a business environment."

NTCL employs about 280 people during its peak season in operations, maintenance and vessel areas.

"Historically, with tonnage up, it employed up to 800 people. But with modernizing of crating and other efficiencies, that has changed," says Hurley.

In addition to marine services, NTCL has increased its market share of marine transportation services to Alaska. It also has a contract for fuel delivery to Eastern Arctic communities. But resupply of the communities is its main market now.

The company was purchased in anticipation of a decent financial return, career development and training opportunities for Inuvialuit and Inuit, says Hurley.

Although he wouldn't disclose profit figures, he did say the company continues to provide a financial return to its shareholders.

In a press release, Patrick Lyall, vice-chairman of the board of directors of NTCL, called the purchase "a natural step for Northern people to acquire NTCL as Northerners had watched the company grow for years and now they would know that it would continue to benefit Northerners for years to come."

Added Hurley: "NTCL was the first federal crown corporation to be privatized, as I understand it."

In recent years, NTCL has received the NWT Chamber of Commerce "Business of the Year" and Human Resources Development Canada "Employment Equity Certificate of Merit" awards.

The company has served the North for more than 60 years.