NWT highway restrictions trigger price shock for some businesses

The NWT government has placed weight restrictions on trucks hauling goods and fuel up from Alberta, setting in motion price increases that some of the territory’s firms say are not sustainable.

Starting on Monday, the GNWT imposed what is known as a 75-percent load allowance on Highway 1 leading north from the Alberta border.

That means heavy goods vehicles can only carry 75 percent of their stated capacity.

The Department of Infrastructure says the move is necessary because “certain areas along NWT highways are experiencing soft surface conditions and the temporary restrictions will ensure safety, protect the infrastructure and reduce the need for costly repairs.”

How long the restrictions will last is not yet clear. The department – which declined an interview request but responded to written questions – said it will reassess the situation by the end of Friday this week and ease the restrictions if road conditions have improved.

Chris Reynolds, the boss of regional airline Air Tindi, said every day matters given the amount of fuel consumed by Yellowknife-based operators like his firm.

“On slow days, Air Tindi consumes 20,000 litres a day. You probably have 100,000 litres a day used at the airport,” Reynolds told Cabin Radio on Wednesday.

That fuel needs to come up the highway. The reduced load allowance means less fuel per truck, so logistics companies must send more vehicles or airlines must do without some fuel. Each option has a cost.

Major fuel providers say they were told of the change to load allowances on Friday last week, setting off about a 10-percent price increase and subsequent frenzy of communication with northern businesses who rely on their services.

“The government never reached out and never notified us. I’m more in the dark than you are,” said Reynolds.

“It’s very frustrating to try and run a business as complex as this and get surprised without any sort of communication. We can take bad news. We just need to hear about it as soon as it’s known to anybody.”

If the restrictions lift within a week, Reynolds said, the effect will be minimal. Operators like his will try to “eat the cost as long as they can,” he said, “but it’s not sustainable.”

“If it’s two months, then things get desperate,” he added.

Flights servicing tourists, mines and communities could cost more if the restrictions hold. Other industries that rely on road haulage, like grocery stores, are also understood to be affected.

One business owner, requesting anonymity as the territorial government is a major client, questioned whether more vehicles running at 75-percent capacity would necessarily be better for the roads – and environment – than fewer vehicles running at 100-percent capacity.

“We recognize there will be short-term challenges to commercial operations. However, our priority is to protect the safety of all users of our public highways and protect the integrity of our roads,” the Department of Infrastructure stated.

Some of the NWT’s highways are more susceptible to this kind of restriction than others.

The territory said Highway 1 leading up from the Alberta border “has historically not been subject to spring load restrictions but this year, very soft conditions were observed.”

“Portions of the road are in need of repairs,” the GNWT added, “which had been deferred in previous years due to floods and wildfires.”

Even so, the 75-percent restriction is widespread.

This week, NWT highways 2, 4, 5, 6, 7, 9 and 10 are all under the same reduced load allowance.