Native trucking company has promising start

Page 2

Combining service in business with a commitment to economic development for northern Natives has given Northern Resources Trucking Ltd. a start that would make a sprinter envious.

The fledgling Saskatchewan hauler jumped out of the block with a three-year contract to do all the fuel hauling for the Key Lake uranium mine. And now it has added a three-year contract to provide all trucking services to Amok Ltd., for the uranium mine it operates at Cluff Lake in northwestern Saskatchewan.

Northern Resources Trucking (NRT) began less than a year ago and expects more than $5 million in revenues during its second year.

It began with a two-part mission and partners that were committed to success.

The mission was to provide transportation service to resource development projects in the northern part of the province and, in doing so, to provide a vehicle to enhance the business skills and employment opportunities for Native residents.

The partners are Kitsaki Development Corporation, the economic arm of the Lac La Ronge Indian band, and Trimac Transportation System, the largest bulk highway hauler in Canada. Chief Myles Venne is chairman of the board.

Traditionally, southern companies wanting to take part in northern business formed joint ventures with northern companies on a contract-specific basis. But when the contract expired, so did the joint venture. And so did the jobs and business for the northern partner.

NRT charges that, with a permanent company that provides stable jobs and allows for sharing of skills, resources and technology.

Rick Reynolds, Trimac regional manager, says the unique combination makes the company "better able to compete in terms of economics and in meeting the northern employment goals of its customers."

The provincial government, like most with northern business frontiers, is anxious to promote employment for Native and other regional residents and northern employers are sensitive to these concerns.

Bryan McInnes, purchasing manager for Key lake, says while provision of employment and northern business opportunities is an important criteria in contract bids, NRT won the contract in an open bid competition by being "the successful bidder on all counts."

The ability to provide service also led to the contract with Amok. Its mine at Cluff Lake was being served by another trucking company that encountered difficulties and had to withdraw. Amok needed mine supplies to continue production and NRT was on the job within two days.

Bob Rozon, controller and treasurer at Amok, said NRT "meets our requirements to northern participation, which is a key for us - we give preference to northern suppliers. They also had the capability and the equipment."

"They took over on an interim basis on very short notice and met all the require-ments we set for them. We then negotiated a three-year contract."

NRT doubled its work force to 52 to take on the Amok contract. More than half of the NRT staff are Natives handling mechanical, driving and office positions. The expansion included six leased operators who were with the previous carrier hauling on the 1,900 km round trip from Saskatoon to the Amok mine.

The project involves about ,500 loads per year of materials such as sulphuric acid, propane, petroleum, lime, general freight and mine production. The acid and propane are hauled from the Edmonton area.

Under the Key Lake contract, NRT hauls more than 3,000 loads a year to and from the mine site, about 830 km north of Saskatoon. NRT also hauls fuel, lime and other commodities into Key Lake and brings out mine production.

A gold mine at Star Lake, 500 km north of Saskatoon, is also served by NRT on

a three-year contract to haul two million litres of fuel annually - about a load a week.

Increasing the size of business, winning more contracts and increasing the number of jobs is a good business incentive for Kitsaki, says Dave McIlmoyl, executive director for the band. Although the band has a small geneal freight trucking company, NRT will be able to bid on large contracts, thus increasing job opportunities.

As the company grows it will also give band members a chance to train for management - an opportunity that just doesn't exist under contract-specific joint venture agreements.

NRT is committed to a training and development program, Reynolds said, and is dedicating funds for this purpose. "We want to increase the proportion of Native people staffing and running a successful trucking company."