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Joint venture
Co-op, Desgagnes form new company

Doug Ashbury
Northern News Services

Iqaluit (Jun 26/00) - One of Nunavut's largest retailers says majority ownership of a new joint shipping venture could bring a new wave of control.

Last week, Arctic Co-operatives Ltd. and Transport Desgagnes Inc. announced they had formed Nunavut Sealink and Supply Inc.

Future plans for the new company, to be Iqaluit-based, include local co-ops becoming Nunavut Sealink and Supply sales agents.

"It (the new company) will give the co-ops greater control and influence over their freight needs," the co-op said.

"This joint venture will help maintain competitive shipping rates while also expanding and further diversifying local co-op services," the co-op and Transport Desgagnes said in a joint statement.

The announcement comes as the Canadian Coast Guard is in the final year of a three-year sealift contract with the Nunavut Government. Transport Desgagnes, a subsidiary of Groupe Desgagnes, is one of two companies the Coast Guard has contracted with to carry out the annual sealift. The other is Nunavut Ocean Shipping, owned by Pangnirtung's Auyiuttuq Investment Corp. and Montreal's Crosbie Shipping.

The company's product supply and sea-freight services include warehousing, product sales, Maritime packaging, containerization, sale and repair of containers, transportation of all commodities and cargo insurance.

"The main idea behind the venture was to improve services to customers by integrating the various services required for the purchasing and shipping of goods in Nunavut," said Nunavut Sealink and Supply President Lucassie Arragutainaq.

"This partnership will also allow us to compete on small-and large-scale projects and increase our share in the marketplace," Arragutainaq, a resident of Sanikiluaq, adds.

Aboriginally-owned Arctic Co-ops was established in 1972. The co-ops provide a system of collective purchasing and distribution and are a significant marketer of Northern crafts.

Transport Desgagnes has been operating in the Arctic since 1967. The company ships general cargo to Nunavut and bulk fuel to Northern Quebec, St. Lawrence and Great Lakes regions, as well as international destinations.