Rankin Inlet (Apr 02/03) - Kivalliq residents probably won't know if the new dry-cargo contract is a good deal until they receive their bills after the first sealift, said Ray Mercer.

The Kivalliq Chamber of Commerce president said he heard pretty much what he expected from government and shipping company reps concerning cargo originating from Montreal at the chamber's AGM from March 17-19 in Rankin Inlet.

And, he added, he doesn't doubt their sincerity.

However, he was surprised at their lack of homework in preparing comparative numbers.

"In comparing cargo rates between Winnipeg and Rankin versus Winnipeg to Rankin via Montreal, they failed to look at the cost between Thompson and Rankin," said Mercer.

"There's a tremendous difference in price."

Mercer said the estimate given on shipping a pickup truck from Winnipeg to Churchill on the train was about $2,900.

Last year, however, the cost to ship a pickup from Thompson to Churchill was about $450.

Mercer said it was another $900 to barge a F-150 pickup to Rankin, bringing the total to about $1,300.

"From Montreal to here, on a similar vehicle, is probably going to run about $2,500 and they (Nunavut government) tell us we can expect about a 31 per cent savings on our freight.

"I don't see the savings there, but, it is just one part of the whole deal."

Mercer said it's not just barge season people are concerned about.

Kivalliq residents also have goods shipped by rail to Churchill and then flown to their home community.

With the bulk of this year's cargo being shipped from Montreal, there's a fear the drop in train cargo will result in a rate hike for rail companies to recover some of that lost revenue.

"That's the type of rate hike that hits everybody, not just big companies, but your average person, as well."

Mercer said he's not surprised the expected outcry from Manitoba merchants over the loss of Kivalliq revenue hasn't materialized.

"Right now, the merchants are probably like us in that they're still in shock over the news.

"We're all going to have to make adjustments as to the way we do business.

"Transportation affects everything in the region in one way or another.

"There's just no way of getting around it."