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Sometimes, all it takes is one man’s vision to realize the hopes and dreams of many. The Fort McKay Group of Companies, for instance, is located in Fort McMurray and has become the engine of employment that serves the nearby Fort McKay Band...

Written by Mark Golombek

he company provides a variety of services to the Canadian oil sands, from earthworks, environmental services, general site services and fleet mainte- Tnance to land leasing, logistics and fuel supply and hauling. We spoke with CEO Jim Carbery.

The Fort McKay Group of Companies was started in 1986 by Chief Jim Boucher in an effort to provide employment and business opportunities for his First Nations members. At a certain point, he found that his community was simply not progress- ing as much as desired. By the seventies and eighties, the fur industry was no longer viable and he did not want to see his people living in poverty. 3

“Any company working on this land would be held accountable for its actions with regard to the environment.” 4

Chief Boucher then made a decision to participate in the indus- trial development of the lands near his community. As he has been an active environmentalist throughout his career, he was also going to make sure that any company working on this land would be held accountable for its actions with regard to the environment. He wanted the best technology possible to deal with any environmental situations and the oil and gas compa- nies seemed to be the way to go.

Things were going reasonably well, until an oil company with a lease close to Fort McKay (Solvex) ceased operations around 1997. Fort McKay had invested heavily in the company, and the end result was a stagnation of the businesses around the community.

“Shortly after that, the Chief approached me in August of 1997 to come and manage their business,” explains Mr. Carbery. “I had been a Syncrude operations manager for close to fifteen years and had done some work in the Fort McKay community. The Chief knew me, so he asked that I manage the company.”

In 1997, Shell Albian Sands Incorporated was developing its lease and, through its Vice President Neil Camarta, it signed a deal with the community indicating that it was prepared to assist through employment and business development. At that point, there was about $2 million in debt, but that was soon paid off and, with the

“The amount of business that First Nations-owned companies are now doing in this region brings over $100 million per year to the community of seven hundred people.” 5 assistance of Neil Camarta and the agreement, a major contract was signed with Albion. From there things really took off!

“In 1997, we were doing about $4 million worth of business and then, through 2007, the company was doing about $110 million. A lot of that was a direct result of the Chief’s reputation. He was an honest straightforward man who did not interfere politically with the companies, which was really good.”

The Chief agreed to let Mr. Carbery run the companies as he saw fit; as far as Chief Boucher is concerned, if a problem arises, it is discussed and most of the time can be resolved without issue. His support and his credibility with the energy companies have been major contributing factors to the success of the group.

It was a combination of the leadership that Chief Boucher set and the initial support of Syncrude and Albian that allowed the com- munity to progress more quickly than similar communities in the region. The amount of business that First Nations-owned com- panies are now doing in this region brings hundreds of millions of dollars per year to the community of seven hundred people.

“There is no question that the oil companies played a positive part in this. Apart from the fact that I worked for Syncrude and also First Nations, there are very few guys that have worked on all sides of the fence, like myself. The energy companies in this region deserve some credit.”

The oil and gas industry can be high risk as it is dependent on fluctuating commodities prices and diversification is neces- sary in order to survive through the downturns in this volatile economy. To do this, the Fort McKay Group of Companies is branching from heavy equipment to also hauling goods from McMurray and Edmonton. Now it has the opportunity to win a multimillion dollar contract from Syncrude.

Says Mr. Carbery, “It was very clear to me and the GM that the smart thing for us to do was open a depot in Edmonton. This has been accomplished. Our reputation with Syncrude and other energy companies has enabled us to draw in other com- panies that want us to haul their goods and materials.”

It is crucial to have strong experienced leadership when it comes to running the logistics department and the Fort McKay Group of Com-

“Many other companies are now in talks with Fort McKay Group of Companies with regard to logistics contracts.” 6

panies is, “moving firmly and primarily to make sure that we have the right people in the management and supervisory positions.”

Many other companies are now in talks with Fort McKay Group of Companies with regard to logistics contracts. More time, effort and resources are being put into that facet of its opera- tions. But, it recognizes that it would not be wise to develop past its capacity and is being selective in the contracts it chooses.

In the beginning, Fort McKay Group of Companies was using its equipment to move dirt. It had no ability or experience when it came to building roads. The opportunity to build roads arose with Shell and Imperial Oil. Of course, engineers and superin- tendants were needed to get started because road building is more involved than digging and moving dirt.

“So we began that and have had our ups and downs, but we see that, by building this kind of capacity, we will be able to bid on municipal roads and oil company roads. It is in its infancy, but we are building up the capacity with the right kind of people.”

At the same time, the team realizes that different equipment is required to build these roads. This is a learning phase which has many challenges. Just to get some engineers on board, the company had to advertise for two to three months.

Finding the right people is as difficult as it has ever been, espe- cially considering the region. Right now Fort McMurray is the place to be for a lot of people working within the oil and gas industries. Energy companies are offering pretty good wages, benefits and bonuses, making it very difficult for a small con- tractor to compete for qualified personnel.

Many times, people will begin with a company like Fort McKay Group of Companies working in the equipment section. If they prove themselves, the energy companies snap them up. 7

“Fort McKay Group of Companies is completely owned by the Fort McKay First Nation.”

Employees will usually jump ship for the better wages and benefits. “If you want really good managers, you are going to pay at least $200,000 at a minimum. I believe that there are simply not enough qualified people out there. We are not as competitive with salary, bonuses and benefits.”

Fort McKay Group of Companies is completely owned by the Fort McKay First Nation. Through its training strategies, and with the backing of Chief Boucher in embracing the oil sands industry, it has supported the development of local entrepre- neurs. The community has prospered as a result.

One individual started nine years ago with a dozer and grew that into a company he recently sold. Another two local First Nations members who ran a water/sewer truck, seven years ago, now have twenty trucks. “There is also a lady who used to manage our busing contracts at Syncrude. She now runs her own shuttle bus service with ten vehicles. This story and others has turned the community into a healthier one.”

The local entrepreneurs are providing business and employ- ment opportunities to other local people. Jim Carbery, origi- nally from Ireland, has been in for fifty years and forty- eight of those years have been working with Aboriginal people in this region of Fort McMurray. He explains that the commu- nity is thriving now. Unemployment is virtually nonexistent.

“If you look at this community and the quality of houses, vehicles, “Local entrepreneurs are providing RVs, snowmobiles, etc., it all started because the chief had a vision business and employment and didn’t just think about his own interests, but provided oppor- opportunities to other local tunities for his own people. If you look across other Aboriginal com- people.” munities, there are not too many that have that kind of foresight.” Fort McKay Group of Companies

P.O. Box 5360 Fort McMurray, AB T9H 3G4 P: 780-828-2400 F: 780-742-0038 www.fortmckaygroup.com

www.finning.ca Project Project s Su pp orter www.edmkw.com www.manacwestern.ca www.hineshealth.ca

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