Arctic Ports: Local Community Development Issues

Abstract

Climate and economic forces are both transforming Arctic communities. Restructured governance of marine transportation and community development investment should work to promote economic growth and development within frameworks that accommodate sustainable resource use and community cultures. Marine ports are vital community links and components of this infrastructure. This chapter discusses historical lessons as well as Arctic community demands initiating from resource extraction, tourism, fishing, and culture for successful port development. Decisions over both port infrastructure and industry regulation are crucial to ensure sustainable economic development and social equality while avoiding overcapitalization. We find that Arctic fisheries are currently well regulated, whereas resource extraction has the most risk of creating negative social costs for communities. Arctic marine tourism is profitable and growing, but challenges include high demand elasticity for Arctic cruises as well as imbalances in what the local population can provide to meet the highly seasonal demand. Cooperation within and across Arctic nations will be required to meet these challenges and realize important goals of Arctic port development, including social equality, conservation of living marine resources and reduction of overcapitalization.