Canada's North has a significant presence on the list of infrastructure proposals referred to the federal major projects office, coinciding with Ottawa's plans for substantial military investments in the Arctic. Prime Minister Mark Carney, during a March news conference in Yellowknife, highlighted a commitment of over $35 billion aimed at enhancing the military footprint across the Northwest Territories, Nunavut, and Yukon. He underscored the need to both sequence and augment construction capacity in the North.
Carney elaborated, stating the emphasis should be on ensuring that local northern communities benefit from construction projects and that logistics for equipment delivery are well-managed across vast geographies. The scale of infrastructure work, which includes roads, ports, hydro dams, military installations, and airstrips, presents challenges due to the limited skilled labor available in an already high-demand region.
Jim Landon, president of ATCO Frontec, expressed his astonishment at the magnitude of investment required in the North during his keynote address at the Arctic Energy Resource Symposium. He cautioned whether the federal government and southern construction firms truly comprehend the additional operational costs associated with working in the North. Landon pointed out a significant concern regarding the shortage of skilled tradespeople, which complicates recruitment, as many talented workers are already employed in other sectors.
Furthermore, Landon emphasized the importance of establishing partnerships with local Indigenous communities to ensure they share in the benefits of infrastructure development. This aspect has caught the attention of construction firms, as many are unfamiliar with the collaborative approach required north of the 60th parallel.
Fifteen proposals have been submitted to the federal major projects office, aimed at expediting approval for ventures considered critical to national interests. Approximately one-third of these proposals are located north of the 60th parallel, with three in the Northwest Territories and two in Nunavut. Notable projects include the Taltson Hydro Expansion in N.W.T., which seeks to double the territory's hydroelectric capacity, and proposed all-season roads aimed at enhancing both military and civilian infrastructure.
In Nunavut, the Grays Bay Road and Port project aims to create a 230-kilometer all-season road and an airstrip, facilitating overland connections to an Arctic deepwater port. This project is anticipated to generateapproximately 675 direct and spinoff jobs during construction and 257 during operation, according to West Kitikmeot Resources Corp., an Inuit-led company behind the initiative.
Heather Exner-Pirot, of the Macdonald-Laurier Institute, highlighted the difficulties faced in hiring Inuit labor for various projects in Nunavut, as multiple industries—governmental and private—compete for their skills. She suggested that hiring construction crews from the South, who would rotate through on a fly-in-fly-out basis, may be necessary to meet labor demands, albeit with a need for competitive compensation to attract workers.
Exner-Pirot also noted the logistical challenges of performing multiple infrastructure projects simultaneously in the North. There remain essential trades needed for non-megaproject work, such as building homes and schools, which require skilled workers. Planning will be crucial as unpredictable climates and inadequate transport infrastructure delay equipment deliveries.
In the Northwest Territories, the situation is somewhat different as the diamond mining sector declines, potentially freeing up a skilled workforce. However, what remains unclear is how to sustainably drive employment in the territory amid a shift towards new industries like critical minerals. Paul Gruner, CEO of Tlicho Investment Corp., emphasized a holistic approach to recruitment and economic refocus while preparing a capable workforce for upcoming infrastructure projects.
Gruner stated the importance of ensuring that local communities and Indigenous groups are not left behind as southern companies dominate project execution. Previous efforts, such as a recruitment drive for environmental remediation at Giant Mine, demonstrate potential pathways for employing local workers in various construction projects.
In conclusion, to effectively bridge the infrastructure gap in Canada's North, it will be vital to foster local engagement, maintain collaboration with Indigenous communities, and ensure a skilled workforce is prepared to meet the demands of significant upcoming projects.
