Ripple effects felt by Hay River businesses as NTCL declines

The potential bankruptcy of Northern Transportation Company Limitedis already having effects around its home base of Hay River, N.W.T.

The Northern sealift companyhas been serving the Western Arctic for almost 70 years,shippinggroceries and other goods by barge throughout the territory and western Nunavut. Nowbusinesses in Hay River are worried their fortunes are tied up with that of the company.

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"Every way you look at it, everybody's been affected," says Pat Williams, owner of Monster Recreational Products.

Williams spent 25 years working for NTCL as a marine engineer. Now, the company works for him, shipping quads and snowmobiles around the North.

He says his company has spent tens of thousands of dollars on trade shows and travel to build customer relationships in remote communities many of which are no longer served by NTCL.

"They've relied less and less on Hay River as a resupply," he says. "You can't rely on it."

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Grocery suppliers have also felt the loss, saysSteve Anderson, co-owner of Hay River'sSuper A.

"We've seen a deterioration in the barge order business from Super A foods," says Anderson.

"It's gone from over 100 orders a year down to 15 this year."

Both Anderson and Williams are working on ways to mitigate the damage, and Anderson hopes a new company will fill the void.

"I'm optimistic that something is going to happen, because it can't just come to an end," he says.

"How else are we going to supply these communities?"

The Town of Hay River itself faces a direct loss of close to $700,000 in back taxes if the company goes bankrupt. That's on top of future losses and spin-off businesses that would also see a drop in income.