Article Series
The Arctic Cold War Looming
The Uranium Merger Mania Pending
The Paradigm Behind Global Trade Protectionism
The Stealth Rally in Mining Mergers
Special Memorial Day Weekend Report
Special Report
The Paradigm Shift of Sky-High Oil
Deepwater Ports: A New Paradigm for Canadian Resources
By George Bell
Recently, the Canadian Government announced two new deepwater ports in the far north, one on Baffin Island and one at Resolute Bay - both in Nanisivik, one of the furthermost Northern points of the country.
Some may now be wondering why this event is important to the world, and what it means to Canada? As the Simon Fraser University (SFU) points out, “The time, cost, and distance of sailing from Europe to Asia would be significantly reduced.” What this means is the Canadian water way (open for longer periods each year with global warming melting more and more ice), could become a direct competitor with both Suez and Panama, while also producing up to $4 billion each year for the Canadian government.
Obviously, the implications are staggering. However, Canada must prove that the port is an “internal waterway”, otherwise the shipping lane would be regarded, “as an international sea route available for use by any sea-going nation”, according to SFU. In essence, the port would help solidify Canada’s artic sovereignty. Taking the matter seriously at a military level, Canada also plans on constructing a winter military training base at the port, in addition with building eight Polar Class 5 Arctic Offshore Patrol Ships. Clearly, Canada is making sure that the country has a strong military presence visible in the arctic.
Should the port be completed, Canada would find itself in a novel new position in regard to shipping resources throughout the world, and specifically Asia. Canada is boldly attempting to attract more Asian business as seen in the north American country’s 2006 establishment of the Asia-Pacific Gateway and Corridor Initiative, which attempts to dramatically connect the southern portions of the country with Westernmost ports. While the deepwater port at Nanisivik is separate from the Asia-Pacific Gateway and Corridor Initiative altogether, evidence shows Canada is working extremely hard to increase its trade presence with Asia. Case in point, Trade with China from Canada more than doubled from 1995 to 2005. What’s more, with the birth of China’s new Yangshan deep-water port development near Shanghai, trade between the two countries is expected to grow even more in the years to come.
But there’s even more to the story. Much of the world already knows that the Canadian artic is vastly weal resources, including uranium. And, by opening the deepwater ports to the world, by the middle of the next decade, Canada could have an entirely new image of global resource export leader. Fact is, with the Canadian artic rich in uranium, oil, natural gas, iron, and virtually every other resource, the country could soon dominate the global resource trade. And the world realizes this fact too.
Just one example is Mitsubishi, which, in 2006, implemented a strategic
partnership with Baffinland Iron Mines Corporation (based in Baffin Island);
clear evidence that Asia understands the incredible significance of the
new port.1 At the end of the day, the
new ports will open Canada up even more to trade resources with the world…
So much so, that should the ports be completed in the next decade, Canada
may just very well have redefined itself entirely in the world resources
export market.
1 Baffinland Iron Mining Corporation, 2006 Annual Report. Page 11. http://www.baffinland.com/financials/pdf/2006-ar.pdf
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