NWT Transportation System Developments: Capturing Opportunities Strengthening Connections Enhancing Innovations

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1 NWT Transportation System Developments: Capturing Opportunities Strengthening Connections Enhancing Innovations City of Yellowknife September 12, 2016

2 Transportation Strategy and Four-Year Action Plan NWT Transportation system developments are guided by Connecting Us the GNWT s 25-year Transportation Strategy Vision: Northerners connected to opportunities Three strategic priorities: Strengthening Connections Capturing Opportunities Embracing Innovation A four-year Action Plan identifies specific actions to be undertaken over the life of the 18 th Legislative Assembly Strategy supports 18 th Legislative Assembly mandate: Capture opportunities for investment in transportation infrastructure by securing funding to advance Mackenzie Valley Highway, Tlicho all-season road, and improve access into the Slave Geological Province Strengthen connections with private sector partners such as CN Rail Strengthen connections with public sector partners such as DFO and Coast Guard to maintain marine resupply facilities and safe marine operating conditions, including by dredging around the Port of Hay River. Improve access to government programs and services online by increasing accessibly of online driver and motor vehicles services 2

3 Inuvik-Tuktoyaktuk Highway Northern-most section of the Mackenzie Valley Highway Third winter of construction is complete North and South spreads met for the first time in April 7, individuals employed on the project last season 74% from Inuvik Region or other NWT communities Targeted to open to traffic by fall

4 Mackenzie Valley Highway Wrigley to Norman Wells Business case for $700 million submitted to Infrastructure Canada Federal government has indicated funding decisions will be made after engagement on CTA Review and Phase 2 of infrastructure funding P3 Business Case review underway Revised PDR resubmitted to Mackenzie Valley Environmental Impact Review Board (MVEIRB) for assessment TOR for DAR issued by MVEIRB in February 2015 Five project phases identified: 1. Environmental assessment 2. Construction of the Great Bear River 3. Tulita to Norman Wells 4. Sahtu/Dehcho Boundary to Tulita 5. Wrigley to Sahtu/Dehcho Boundary 4

5 Tłįchǫ All-Season Road DOT working with Tłįchǫ Government Funding application submitted to P3 Canada Project Description Report submitted to Wek eezhi Land and Water Board on March 31, 2016 On July 27, 2016 project was referred to Environmental Assessment by MVEIRB 5

6 Improved Access into the Slave Geological Province Mineral potential study and route options analysis are complete A route providing the greatest economic benefit and access to resources has been selected for the project Business case assessment for selected route is nearing completion Potential of linking to all-weather road and port in Nunavut working group with GN has been established to advance project in both jurisdictions Four phases have been identified in order of priority: 1. Environmental Assessment 2. Tibbitt Lake to Lockhart Lake 3. Lockhart to Lac de Gras (diamond mines) 4. Lac de Gras (diamond mines) to the NWT/Nunavut border 6

7 Energy Infrastructure Opportunities 60 Megawatt Taltson Hydro Expansion - $700 million readily expanded to provide zero emission power to Alberta or Saskatchewan Reduce 400,000T greenhouse gas emissions stabilize energy costs North of Megawatts of additional potential Reduce Diesel in off-grid communities -$150 million Wind, solar, hydro transmission, natural gas projects Reduce power generated greenhouse gas emissions 25% by

8 Canada Transportation Act Review Panel Report Purpose of review to look ahead and identify priorities and potential actions in transportation that support Canada s long-term economic well-being. Includes following recommendations: increasing the base level of funding in federal infrastructure for the three territories; investing $50 million per year over ten years to facilitate improvements to key northern airports; funding to support dredging at the Port of Hay River and marine infrastructure on the Mackenzie River and Arctic coast; investment in the development of new NWT road corridors, including the Mackenzie Valley Highway, Tlicho all-season road, and improved access into the Slave Geological Province. The federal government is undertaking comprehensive engagement on the report s findings, providing opportunity to support the implementation of these recommendations. 8

9 YZF Evolution Transition of the Yellowknife Airport to a financially self-sufficient model to enhance the traveller experience and act as a catalyst for promoting and enhancing business opportunities in the NWT 9

10 About YZF YZF handles 50,000 flights per year and over 500,000 passengers. Statistics Canada places YZF in the top 20 Canadian airports, with respect to passenger throughput. Yellowknife Airport compares with Prince George, London, and Charlottetown, which operate successfully as Airport Authorities. 10

11 Current Operating Environment YZF provides value to the NWT by being a safe and costeffectively managed Airport. The GNWT subsidizes the Airport operations in excess of $4 million per year, and provides capital funding as part of the GNWT Capital Plan. The Airport competes with hospitals, schools and all other GNWT programs for O&M and Capital funding. User fees and charges are much lower at YZF than at its peers. 11

12 Economic Impact of YZF 1000 people are employed directly through activity at the Yellowknife Airport. The Airport supports a total of 2000 jobs in a number of sectors. The Airport s total economic impact including supplier industries is $170 million in direct GDP. Each job associated with the Airport results in $374,000 in direct output. Activity at the Airport contributes over $45 million in various forms of taxes. Yellowknife Airport improves connectivity to Canada and the world, and could function as a catalyst to enhance business and tourism growth. YZF benefits industry, the City of Yellowknife and the territory as a whole, and has the potential to act as a catalyst to generate even greater economic benefits. 12

13 Domestic Landing Fees by Aircraft Type Nanaimo Comox Charlottetown Deer Lake Prince George London Yellowknife Greater Moncton Thunder Bay Fort McMurray 13

14 What have we heard? Increased business access Promote business opportunities Better use of space Upgrades and improvements Sense of place Efficient service More connections for residents and tourists Improved deicing capacity 14

15 Proposed Changes to YZF Establish a revolving fund to enable the Airport to become financially self-sustaining (Fall 2016). Increase aeronautical fees and introduce an Airport Improvement Fee (February 2017) With these changes, YZF can be more opportunistic and entrepreneurial by pursuing business development and economic growth opportunities. 15

16 Proposed Revenue Changes Implement an Airport Improvement Fee for all outgoing flights: $20 per Southbound Passenger $10 per Northbound Passenger Increase existing aeronautical fees (Landing Fees, General Terminal Fees) to bring to industry average for similar sized airports. The net impact to passengers is anticipated to be average of 3-4% on a southbound ticket and 1-2% on passengers travelling within the NWT. 16

17 Effects on Territorial Cost of Living Based on 2012 average expenditures, the average Yellowknife household spends: Annual Total Transportation Air Travel $124,105 $16,954 $2,718 The increase in airfare is equivalent to a: 3.4% increase in air travel expenditure 0.6% increase in transportation expenditure % increase in total household expenditure GDP will increase by $0.767 million as all revenue is being reinvested into the Airport Information supplied from StatNWT 17

18 What will YZF look like? Maintain aviation safety and security More efficient service Common-use terminals Improved security facilities with shorter wait times Air terminal renovations Job creation Expanded and improved business services Stronger connections Increased parking space and long-term parking options Central de-icing facility Commercial development opportunities Economic Advisory Committee 18