Iqaluit (Mar 31/03) - Arctic Co-operatives estimates it will save about 30 per cent on its sealift bill to re-supply stores in the Kivalliq region this summer.

That is what the Nunavut government also projects it will save overall with the newly signed dry cargo sealift contracts for Baffin and Kivalliq.

Nunavut Eastern Arctic Shipping (NEAS) will carry cargo to 11 communities in Baffin.

Nunavut Sealink and Supply (NSSI) will service Iqaluit and 10 communities in the Kivalliq.

The new deals impact the most on communities and businesses in the Kivalliq, previously serviced by Northern Transportation Company Ltd. (NTCL) out of Churchill.

All cargo for Nunavut is now shipped out of Montreal.

Arctic Co-operatives spokesman Peter Groenen said the company has no problem at all with the change.

In addition to lower sealift costs, the Winnipeg-based firm projects significant savings moving locally purchased goods to Montreal rather than Churchill.

"That will add up to a lot," said Groenen.

Arctic Co-operatives Limited is a federation owned by 35 member co-ops in Nunavut and NWT.

The company owns 75 per cent of NSSI. But it will pay the same freight rate as the GN does for moving its cargo, said Groenen.

The company spends about $17 million a year resupplying co-ops in Baffin, Keewatin and Kivalliq.

Groenen said the co-op has met with NSSI and the GN and does not anticipate operating difficulties with the new sealift arrangement.

"We have been shipping to the Baffin through Montreal for years, so that isn't new for us at all.

"The biggest change is that we will now send Kivalliq-bound goods purchased in Winnipeg to the port of Montreal rather than Churchill. Operationally, the impact in doing that is minimal."

Arctic Co-operatives's Chris McCarvill said the company plans to mount an information Web site for the communities by Easter.

"All of the co-ops in the Kivalliq will also act as sealift information centres, and we are ramping that up now as well," she said.

NSSI will make a minimum of three trips into Iqaluit, Rankin Inlet and Arviat; two trips into Baker Lake, Chesterfield Inlet, Coral Harbour, and Sanikiluaq; and one trip into the Foxe Basin (Igloolik, Hall Beach, and Repulse Bay).

NSSI is charging $285.00 per revenue tonne to the Kivalliq, based on actual weight or 2.5 cubic metres of measurement, whichever gives the company the higher return.

NEAS is charging $292.20 per revenue tonne for communities in the high Arctic, and $249.20 in the south Baffin.