Tuesday, 8 July 2014

Canada’s Crippled Shipping Business Strategy

Shipping is essential to the world economy.  Without shipping, the ability to trade between continents, to transport huge quantities of raw materials, and to import and export affordable food and manufactured goods would come to a grinding halt.  Ships are the primary transportation tools of international trade because much of the world’s surface is covered by water and there are simply no comparable means of accessing other continents at the relatively low cost afforded by marine transportation. Immense tonnages of oil, primary commodities, and manufactured goods are carried by sea day in and day out, year after year, and over very long distances - safely, inexpensively and efficiently.  Indeed, there are about 50,000 merchant ships trading throughout the world, carrying every kind of cargo conceivable and manned by over a million seafarers of virtually every nationality. But instead of enormous perks obtained from shipping trade on local and international economy, the scopes of development on shipping to Canada and from there to other nations aligned through northern west and east line has not yet been materialized and this northern high nation, instead of having potential for becoming major player, still seems to be out of the race.

Expandability Limitations in North-West Corridor

The Canada’s geographical position on the northern sea hemisphere and its operational experience in the past to sail the arctic sea route puts it on higher bar but from last many decades, the Canada has not paid the due attention to its shipping business and trade architecture and the evidence to that is that the Canadian captains are using the way long outdated soviet era traditional maps for the operational voyages and sea lanes navigation.

In addition to that, Canada also tried to send the boat to Baffin Bay to encourage its sea shipping development on the exact race when Russia intend to boost and expand its already well established shipping and northern sea lane architecture and is heading front on its northern waters.

When Stephen Harper had his annual visit to north for honoring the military exercises, the arctic studies and research experts pointed on Canadian Prime Minister to stress his observation regarding the booming up-gradation of Russian shipping business apparatus which is being deployed with aim to grab mineral mining and resource hauling projects in northern Russian region. According to Michael Byres, an author of book “International Law and the Arctic” shared that he received an email from a Greek shipping company revealing the information on factual findings and development statistics that Russia is actually 50 years ahead of any Arctic country in terms of seizing on the opportunity through northern sea front.

Infrastructure Vulnerability

Cold pursuit and salvage stays situated in southern Ontario and relies on upon planes that were planned to have been supplanted long ago. Furthermore debate with the United States about outskirt issues and the status of the Northwest Passage include lawful instability and other legislative issues for shippers.
Just 61 tankers and freight boats entered the Canadian Arctic last season, a large portion of them identified with group resupply only. Crossing the Northwest Passage remains generally an objective for many expedition groups. Besides that, two crews are in rowboats for the purpose.

Shippers are paying charges, which helps settle expenses of the enhanced ocean course. Also the busier transportation hall is now beginning to invigorate improvement inland. Fluid characteristic gas offices on the coast are likewise slated.
"There's a reasonable connection between the Northern Sea Route as the global payload course and the concentrate on the monetary improvement of northern Russia," said Byers, who is a professor at the University of British Columbia.

Russia’s Role in Northern Sea Chapter

John Higginbotham, a senior fellow at the Centre for International Governance Innovation, an independent Canadian think-tank reveals the Russian headednessas part of the renaissance of Russia after the collapse of the Soviet Union. The opening of the Arctic, I think, Putin sees as one of his half-dozen highest priorities in terms of restoring Russian greatness. He says, he’s pretty familiar with what an active strategy to use transport to drive development looks like, and I don't see any sign of that in either the U.S.A. or Canada.
The North West Territory is arguably the most promising economic region in the Canadian Arctic in terms of public and private potential, scale of resources, variety of transport routes, well-functioning territorial government and close cooperation with neighbors, reveals the report prepared by John Higginbotham. But lack of infrastructure and marine corridor investment continue to inhibit development.

“At the moment we’re far behind where we should be in respect of charting of the Arctic Ocean, search-and-rescue, aids to navigation and other areas,” he said.
Professor Byers of British Colombia University said, “The Russians are building their Arctic door at this time, A 10-fold expand in shipping volumes in excess of four years says a lot to how farsighted the Russian government has been”.