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Beaten rural roads threaten economy – Alaska Highway News

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The tab to fix rural roads in the North Peace is quickly nearing $1 billion, but the region is having little luck securing an increase in provincial funding.

Jackie Kjos, who helms the rural roads task force for the Peace River Regional District, gave the board an update Thursday in which she shared few successes and listed the many challenges that threaten to cut off communities and shut down industry.

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“Our roads are way worse in 2020 than they were in 2018,” Kjos said.

The state of the roads have caused recent havoc for business, according to Kjos.

Canfor’s sawmill in Fort St. John came within three days of shutting down because of a rural road slide in the Graham and Upper Halfway area.

In Upper Cache, a large canola operation couldn’t ship out a time-sensitive load due to road bans, and a buffalo rancher spun out in an accident that killed half a dozen calves at $2,000 a head.

Road bans this year have lasted 104 days — the fourth longest stretch in 40 years, Kjos said.

“There’s real economic impacts that are hitting not just people in the rural area, but the communities that are supported,” Kjos said.

The good news is that the region’s $20 million budget for rural roads hasn’t been touched while others in the province have seen annual cuts of up to 20%.

The bad news is there are up to 400 kilometres of rural roads that need to be brought up to standard — at a cost of about $1 million per kilometre.

And that’s not including the cost to repair any slides. 

The cost to fix Farrell Creek hill alone is $100 million, while there are seven slides threatening the Upper Halfway road, Kjos said.

“Any one that can go at any time,” Kjos said. “There’s 900 people, 6,000 loads of Canfor’s wood back there. It is catastrophic what would happen if we lose one of those roads that are the only access like that.”

Key corridors like Beryl Prairie, Aitken Creek, and Golata Creek “have fallen apart,” Kjos said. 

Three-quarters of permitted extraordinary loads hauled in B.C. are in the northeast. And road conditions are expected to get worse as the province ramps up plans to reclaim dormant and orphan wells at a pace of up to 625 per year.

On top of it all, there has been a revolving door of district managers at the Ministry of Transportation — the Peace region is now on its fourth manager in three years. And the task force only gets a short lobbying window of five minutes when meeting with ministers and their deputies.

“We’ve been playing pretty nice,” Kjos said. “We might need to apply a little more pressure.”

The task force was relaunched in 2017 after it was first established in 1997 to lobby for more rural roads funding. In 1998, the region got $11 million; in 1999, $6.5 million; and later $103 million.

But times have changed, and getting any significant new dollars has been a hard sell, Kjos said.

“The economics were different at that time,” Kjos said. “We were pulling in between $1.6 to $1.8 billion a year in oil and gas, so it was quite easy to build a business case — very difficult in this environment to build a business case, even before COVID-19 came along.”

Tumbler Ridge Mayor Keith Bertrand suggested increasing enforcement to keep industry accountable for damaging the roads by overloading their trucks.

“I can tell you from personal experience, not all loads are 100%, and a lot of the deterioration of those roads is because of overweight loads,” Bertrand said.

Kjos said she was reluctant to step in between the ministry and its relationships with contractors and CVSE.

“It’s a bit of a double-edged sword,” Kjos said. “Our goals are no different than the ministry of transportation’s, in that we want a healthy industry but we want to protect the roads, so the person who lives on the road and drives a minivan can get to town.”

Kjos has prepared a 10-minute video on the state of local roads and their importance to the economy as part of her lobbying efforts. Bertrand suggested she also include pictures of a fracking convoy.

“Meeting it on the road, it’s quite intimidating, especially on a rural road,” he said. “That might be a challenging task, to get a capture of a convoy, but it’s a pretty impressive sight and I’m sure Victoria has no idea.”

Director Tony Zabinsky, a councillor from Fort St. John, noted his concerns about the region’s dwindling aggregate supply, largely being taken up by BC Hydro for the Site C dam.

“We’re finding that small gravel pits there are already being used to their full capacity,” Zabinsky said.

“It’s going to affect the rural roads and building these things. We can get aggregate, but it’s the cost. If we got to bring in aggregate from another region the trucking costs are going to be astronomical.”

Kjos said that is part of her workplan as local gravel supply is critical for the long-term. 

“We’re questioning where gravel is being allocated this year, in particular where we got some roads that you’re bottoming out with a four-wheel drive and it hasn’t made the list. There’s a few of those we’re concerned about,” she said.

Kjos did note that the task force has seen some success in getting more pullouts built, and that a meeting with Director Karen Goodings and residents helped to bring improvements to the Milligan-Peejay road, which was in “terrible shape’ in early 2019. A planned $100,000 spend for pothole repair turned into $4 million of pavement overlay, she noted.

“That was a gain of $3.9 million, which we were pretty happy on achieving,” Kjos said.

Goodings suggested a meeting with the premier would go a long way to highlight the region’s problems.

The board needs to get the province “to understand how important the roads are to economy of our area, and to make sure to get that message out that we’re in fact prepared to boost the economy if the province would be prepared to help us out with some funding,” Goodings said.

— with files from Matt Preprost and Tom Summer

Email Managing Editor Matt Preprost at tsummer@ahnfsj.ca

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S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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