Providing freight services to remote arctic communities: Are there lessons for practitioners from services to Greenland and Canada's northeast?

Abstract: In addition to the public service obligations shipping companies must address in delivering maritime freight to remote communities, there is the overlay of an inhospitable climate, absent or poor infrastructure, and seasonality that makes serving Arctic communities extremely difficult for ship operators. As governments face financial difficulties, there is pressure placed on the existing procurement processes to expect more and more of ship operators while at the same time holding the line on operator subsidies, if they exist. This research article examines shipping services and management practices in Canada''s eastern Arctic (Nunavut population 33,000) and contrast them with those in Greenland (population 56,000). Greenland appears to benefit from more modern vessels provided by a single corporate entity (Royal Arctic Line) while Canadian operations suffer from lack of investment and a piecemeal approach. The article is based on interviews with the companies providing services and with relevant government agencies and departments, identifying the key issues and obstacles faced by ship operators and key changes they need in government procurement policies. It identifies areas for change that might deliver more cost effective services with incentives that might ensure such savings were passed onto the final consumer. [Copyright &y& Elsevier]