Monday, July 14, 2008

Conundrums.


Mealyman offers up this question: This is one other factor to consider that the Provincial Government seems to ignore. Thats the possible lengthening/completion of Route 138 on the Quebec Lower North Shore to join Route 510 in Southern Labrador. How would this affect freight from the island?

Route 138 would be a Quebec Government responsibility as we know. If it is ever finished it would be a boon to tourism IMO, it offers up so many possibilities for the motorized tourist.

As to shipping freight into Labrador, on the face of it you would think that shipping freight directly to Goose Bay by road from the south, then onto a ship northward bound would be a death knell for freight from the Island to Labrador.

But we already have that option with the western section of 510, Lab West to Goose Bay.
This has not reduced freight from the Island, nor has it reduced costs of goods for the coast.

The bulk of the freight still comes from the island into Labrador, especially the coast.

Why is this one may ask. Considering the extra miles by road and sea the freight has to travel via the Island you would think it cheaper to ship direct by road to Goose Bay, then on to the boat, a one time handling.

The reasons seem to be multi faceted.
One would be the larger population base on the Island, hence larger wholesaler operations.
Another is that the marine freight is subsidized.
Another is that many of the retailers on the coast have special financing [or did have] arrangements with wholesalers on the Island.
Another is wholesalers on the island offer free shipping on certain size orders.

Much of this still does not explain why goods brought from Goose Bay wholesalers on the whole cost way more than from the Island.

The shipping from Goose Bay would still be subsidized. There is less handling than freight from the Island.

Why is it that in winter certain frozen foods can be shipped by road from the Island to Goose Bay, put on a plane [full freight charges] for Nain and still cost less than buying the same product from Goose Bay wholesalers? Take into consideration that if the goods were purchased from Goose Bay wholesalers then they would qualify for a “food by mail” subsidy. The goods from the Island do not qualify.
Many questions, no answers.
Map courtesy of mealyman.
Update: I just came across this site, lots of information on the Trans Labrador Highway, route 510. Also gives one an idea of the difficulty getting to and from. In the drop down menu under travel info, the maps section is particularly helpful, alas it does not show the "ferry service" from Cartwright to Nain.

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