The Baffin region contract is up for renewal at the end of this fiscal year. N3 Alliance -- a joint venture between NTCL, NorTran and Nunavut Sealink and Supply -- took over the job in 2000 ending the Canadian Coast Guard's 30-year reign in the Baffin region delivering dry cargo.

Currently, there is no government tender for dry cargo sealift delivery in the Kivalliq and Kitikmeot regions. However, with the massive changes the government made towards their fuel supply and delivery contracts, it's possible they may make changes to their dry cargo delivery service in these regions as well.

The government awarded $90 million in fuel supply and delivery contracts to Southern firms last month, contracts formerly held by NTCL. The company kept the fuel contract for the Kitikmeot region.

The decision forced the Inuit-owned company to re-evaluate its services in Nunavut. It is possible that some of their 420 employees, 30 per cent of whom are Inuit, will be laid off.

However, he said the company realized after last week's board meeting in Hay River, that they couldn't make a decision until they knew what direction the government was heading with the dry cargo sealift contract.

"We need to see and read and review the Government of Nunavut's tender or request for proposals before we can progress further," said NTCL manager Kirk Vander Ploeg.

"Will it include the Kivalliq region? Is it along the same lines as the original GN sealift or will it be restricted just to GN cargo? What do they want?" he asked.

The need for clarification relates back to the loss of the fuel delivery contract. Separate vessels are used to ship fuel and dry cargo to the Baffin region. NTCL used the same barges to deliver fuel and dry cargo into the Kitikmeot and Kivalliq regions. It allowed them to keep their costs low in the smaller areas. Until they see the scope of the new contract, Vander Ploeg said they are unable to evaluate whether it makes good business sense to go after the contract.

Shipping companies not bound by government contracts are free to deliver cargo in all three regions and can offer customers competitive prices. Non-government customers can ship goods via the government contractor, but they are required to pay government prices.

Public Works deputy minister Ross Mrazek said he expected to advertise the Baffin Dry cargo contract at the beginning of January. The contract will likely be awarded by the end of February.