Canada's North, the Yukon, Nunavut, and Northwest Territories together comprise 40 percent of Canada's land mass, contain two-thirds of Canada's marine coastline, share 14 percent of the total U.S./Canada border and interface with European interests in the Eastern Arctic. Despite this broad geographic reach, historically there has been limited Canadian political interest in the North.

Time has changed this. The North is now recognized as a treasure chest of non-renewable and renewable resources that will benefit all Canadians. Diamonds, precious gems and base metal mines already constructed, being constructed or proposed in the territories have created the momentum for a vibrant and healthy economy. The oil and gas sector is also the focus of intense activity and great potential in all three territories. Potentially two new pipelines could see natural gas flowing from the Mackenzie Delta and from Alaska's North Slope to southern markets within a decade. The launch of the framework for a Northern Strategy on December 14th, 2004 by the Prime Minister and three Northern Premiers was an implicit and direct recognition of this resource potential.

Time has also changed a long held perception that the North is geographically distant from large markets. In the current global economic context, however, the North is now being considered as a potential gateway to both Asia and Europe. Two projects, currently in the pre-planning stage, support this claim and offer economic advantages that should be explored further. The port of Skagway, although in U.S. waters, is of strategic significance in serving these markets. Equally, the proposed Alaska-Canada Rail Link provides a strategic link between North America and the Pacific Rim.

There are challenges to overcome to realize these economic opportunities. The North has a sensitive ecology, limited investment capital and transportation corridors, and an overall system that is underdeveloped or as in the case of Nunavut highways, non-existent. Resource development is stretching the North's existing underdeveloped transportation infrastructure to its limit. The lack of an effective and reliable multi-modal transportation system could eventually discourage investment by companies in future resource development and transportation gateway proposals.

Other challenges are also developing. In these times of shifting geopolitical landscapes, globalization, climate change, and energy concerns, the focus on Canada's North and issues around northern safety, security and sovereignty is greater than it has ever been.

The push for globalization has seen the Government of Canada sign new air liberalization agreements with other nations, resulting in increased polar and high latitude air traffic. Many of these new flights will use polar and high latitude routes through Canadian airspace and if required will use major airports in the North for emergency stops. The use of these airports raises major infrastructure, operating and liability issues.

The impact of climate change is already showing up in the North. With significant reductions in the Arctic ice pack now occurring, the Northwest Passage is coming under increased international pressure for use as a viable alternative to the southern marine routes.

Northern safety, security, and environmental integrity are dependent upon transportation infrastructure. Currently this infrastructure is completely inadequate to respond to environmental emergencies, natural disasters, non-environmental accidents, and increasing threats to Canada's sovereignty. In the three northern territories, only one road, the Dempster Highway, crosses the Arctic Circle. It does not, however, connect to the Arctic Ocean.

Greater recognition of the strategic importance of northern transportation infrastructure to the nation's economy, security and sovereignty is required. All Canadians will benefit from a North that is connected to the rest of Canada by an effective and efficient multi-modal transportation system. As such all Canadians must accept some responsibility for the costs associated with providing this system. With limited resources, the territories cannot realistically assume the financial burden of increased infrastructure alone.