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Canadian Arctic Shipping Canadian Arctic Shipping: Issues and Perspectives Papers by: Adam Lajeunesse Will Russell A.E. Johnston INTERNATIONAL CENTRE FOR NORTHERN GOVERNANCE AND DEVELOPMENT Occasional Paper Series, Vol. 11-01 November 2011 Copyright © 2011 Adam Lajeunesse, Will Russell and A.E. Johnston International Centre for Northern Governance and Development University of Saskatchewan All rights reserved. No part of this publication may be reproduced in any form or by any means without the prior written permission of the publisher. In the case of photocopying or other forms of reprographic reproduction, please consult Access Copyright, the Canadian Copyright Licensing Agency, at 1–800–893–5777. Editing, design, and layout by Heather Exner-Pirot and Colleen Cameron. International Centre for Northern Governance and Development 117 Science Place University of Saskatchewan Saskatoon SK Canada S7N 5C8 Phone: (306) 966–1238 / Fax: (306) 966–7780 E-mail: [email protected] Website: www.usask.ca/icngd CONTENTS Executive Summary ................................................................................................................................. 2 A New Mediterranean? Arctic Shipping Prospects for the 21st Century, by Adam Lajeunesse ................................................................................................................................................... 4 Introduction ........................................................................................................................................................................................ 4 Thinning Ice ......................................................................................................................................................................................... 5 Challenges of Arctic Shipping ......................................................................................................................................................... 7 Opportunities for Arctic Shipping ................................................................................................................................................. 8 Preparing for a Shipping Influx ..................................................................................................................................................... 11 Shipping Safety and Emergency Response ................................................................................................................................ 14 Implications for Sovereignty.......................................................................................................................................................... 16 Canada’s Arctic Shipping Policy: Are We Missing the Boat?, by Will Russell ........................ 19 Introduction ...................................................................................................................................................................................... 19 Development of Open Registries .................................................................................................................................................. 20 Development of Flag State Responsibilities ......................................................................................................................... 21 Definition of an Open Registry................................................................................................................................................. 21 International Response to Open Registries .......................................................................................................................... 22 The Tonnage Tax System ............................................................................................................................................................... 22 Economics of Marine Transportation ..................................................................................................................................... 23 Fundamental Structure .............................................................................................................................................................. 23 Case Study - The United Kingdom ..............................................................................................................................................24 Development of the Tonnage Tax Regime within the United Kingdom .......................................................................24 Evaluation of the Tonnage Tax Regime ................................................................................................................................. 25 Canadian Context ............................................................................................................................................................................ 26 Canadian Transportation Policy post WWII ...................................................................................................................... 26 Policy Developments ................................................................................................................................................................... 27 Recent Initiatives ......................................................................................................................................................................... 27 Sea Change for Canada‟s Marine Sector? ............................................................................................................................... 28 Policy Considerations for the Canadian Arctic ........................................................................................................................ 29 Conclusion ......................................................................................................................................................................................... 30 2 References ........................................................................................................................................................................................... 31 Appendix I ......................................................................................................................................................................................... 34 Appendix II ........................................................................................................................................................................................ 34 Appendix III ...................................................................................................................................................................................... 35 Appendix IV ...................................................................................................................................................................................... 35 Appendix V ........................................................................................................................................................................................ 36 Is Canada Ready for Increased Arctic Cruise Tourism? Perspectives from the Federal Government, by A.E. Johnston ............................................................................................................ 37 Climate Change in the Canadian Arctic ..................................................................................................................................... 38 Eastern Arctic Cruise Tourism Trends ....................................................................................................................................... 41 Themes from the Stakeholder Interview .................................................................................................................................... 43 Dynamic Nature of Services ..................................................................................................................................................... 44 Adaptive Management .............................................................................................................................................................. 44 Sovereignty & Responsibility.................................................................................................................................................. 44 Industry Growth .......................................................................................................................................................................... 45 Working Relationship with Industry & Communication of Information .................................................................... 45 Discussion...................................................................................................................................................................................... 46 Conclusion ......................................................................................................................................................................................... 47 References ..........................................................................................................................................................................................49 3 n the fall of 2008, the International Centre for Northern Governance and Development (ICNGD) was established to further research, graduate training, and capacity building I around the issues
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