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Doing Business in Canada: for Alaska companies Trade experts say partnering with firms across border will pave way for smooth Alaska-Canada operations Steve Sutherlin PNA Managing Editor
The U.S.-Canada border is not a barrier to Alaska companies hoping to grab a slice of the multi-billion dollar contracts which would flow from any decision to build natural gas pipelines from the North Slope or Canada’s Mackenzie Delta.
But the best bet for any Alaska contractors is to team up with a Canadian firm, according to Chuck Becker of the U.S. Dept. of Commerce.
While Alaska firms offer expertise in Arctic operations, Becker said, the principal benefit of partnering is that firms can bid for work on the entire length of the line.
“I believe that of the companies in Canada, several are perfectly capable of performing work in the Arctic, as much so as Alaskan companies,” Becker said.
“The opportunity is to participate comprehensively in Alaska and Canada; partnership will provide for that flexibility,” he said. Petroleum News, Alliance look to Canada Petroleum News • Alaska Editor Kay Cashman said PNA had launched a major subscription drive in Canada and was increasing its regular coverage of northern and western Canada.
“We identified the oil and gas leaseholders in western and northern Canada and went deep into each of those E&P companies with a subscription drive. At the same time, we tripled our coverage of the region by asking our Canadian correspondent Gary Park to increase the number of stories he writes for PNA and our news bulletin service,” Cashman said.
“We did this for two reasons: One, we want our Alaska service and supply company advertisers to get exposure in Canada. After all, they have more Arctic experience than most Canadian firms — unless those firms are doing business in Alaska, such as Nabors Alaska Drilling. Secondly, we want to keep our readers abreast on what’s happening across the border because for many it will mean business opportunities,” Cashman said.
Becker said the Alaska Support Industry Alliance obtained a list of key players in the Alberta energy industry from the U.S. Consulate in Alberta. The list will be available at the Pacific Rim Construction Oil and Mining Conference to be held at the Sullivan Arena in Anchorage Feb. 13-14.
“The Alliance has taken the initiative to work toward developing productive relationships with companies in Canada,” Becker said.
The U.S. Commercial Service promotes partnering as a way to avoid potential pitfalls awaiting U.S. contractors in Canada.
“Despite NAFTA, market entry to Canada may be impeded by local regulations, technical requirements, product standards and discriminatory processes favoring local contractors,” the service said.
“U.S. construction contractors may also be inhibited by the substantial up-front costs involved in bidding on Canadian projects or establishing a presence in this market,” it said
“To overcome these obstacles, U.S. construction contractors should consider partnering with Canadian contractors that are familiar with local market opportunities,” the service said.
NAFTA opens borders. somewhat The North American Free Trade Agreement contains provisions that allow certain architectural, construction and engineering workers to enter Canada and work.
“Through NAFTA we have an opportunity for labor force to cross borders,” Becker said.
However, Becker emphasized that local hire issues in the provinces will prevent entire crews from crossing the border. NAFTA exemptions apply to specialized workers such as supervisors and foremen.
“NAFTA is a legitimate document allowing (firms) to do business in Canada,” Becker said, adding that firms must be familiar with NAFTA provisions.
“Companies need also to guess which province the line is going through because they will be subject not just to national regulations, but to provincial regulations,” Becker said. Getting there “The movement of goods between Alaska and Canada is a relatively easy thing to do,” said Walter Raycvich, of Canadian Lynden Transport.
“As long as you’ve got a road, the system is in place,” he said.
Raycvich said that one of the effects of NAFTA is that there are no duties on North American manufactured goods traveling between the U.S. and Canada.
“You can trade freely in each country,” he said. “What becomes important is where can the goods be manufactured and what distance must they be shipped,” he said, adding, “That will affect the cost.”
“Alaska, particularly Fairbanks would probably be where the bulk of the pipe handling will be done — that would use a lot of land,” Raycvich said.
He recommended the use of a customs broker for border crossings.
“You can do it yourself but it’s really not worth it,” he said, “Let a broker look after filling out the NAFTA forms.”
Although there are no duties, shipments by road must clear customs at the border, while shipments by air must clear at the first place the airplane lands, he said. NWT ready to woo Alaska In addition, aboriginal and government leaders in the Northwest Territories have given strong signals that their door is open to Alaska’s pipeline contractors.
NWT Premier Stephen Kakfwi has offered Alaskans a share of the economic spinoffs from a pipeline as part of his uphill battle to convince Americans that a route down the Mackenzie Valley is the way to go.
During a lobbying swing through Washington, D.C. in October, Kakfwi promised jobs, contracts and investments to Alaska in a bid to persuade members of U.S. Congress, regulators and state officials that a pipeline through the NWT makes more economic sense that the favored Alaska Highway route through the southern Yukon.
He said NWT residents are more than ready to embrace a 1,100-mile pipeline to the Lower 48 and they’re eager to do it jointly with Alaskans.
“We want to be sure the Americans know there is more than one show in town,” Kakfwi said.
NWT Finance Minister Joe Handley said some aboriginal-owned businesses may even be willing to invest some land claims money to help Alaskan communities get access to the gas,
“Alaska and Canada want to have gas go south,” he said. “It’s better if we work co-operatively on the most efficient route.”
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