Isle. The impetus for this project was the federal government's desire to cut costs and remove itself from subsidizing coastal ferry service to Labrador outports which was being provided by the federal Crown corporation Marine Atlantic. These federal cuts were completed in 1997, under the moniker Labrador Transportation Initiative, when an agreement was signed which saw the federal government transfer ownership and operation of two ferry vessels, along with C$340 million for extending Labrador's road network. A key component to this plan was $150 million to upgrade coastal Labrador marine services, including a newer high-capacity ferry for the St. Barbe-Blanc Sablon service across the Strait of Belle Isle. Phase II, Red Bay to Cartwright Junction Phase II of new construction, costing $130 million, began in 1999 and saw Route 510 extended over four years from its terminus in Red Bay northeast to the port of Cartwright. This section was paved as far as Cartwright Junction, the unpaved remainder (to Cartwright) being designated Highway 516. Phase III, Cartwright Junction to Happy Valley-Goose Bay Phase III is a section of Route 510 built for $130 million south of Lake Melville/Hamilton Inlet to connect Cartwright Junction ( south west of Cartwright) with Happy Valley-Goose Bay, completed sufficiently to open to traffic as a gravel road on 16 December 2009. During 2010, two permanent bridges, road surface work, signage, and guardrails were completed at a cost of $15 million. The road was then paved except for from Cartwright Junction westward to Paradise Heights (the divide between the basins of the Paradise River and the Eagle River). The remainder was completed in July 2022. Route 516 and supplementary routes Phase II involved completion of highway north to Cartwright from Red Bay, and was opened in 2002. Although the entire route was initially designated as Route 510, upon completion of Phase III, the northern from Cartwright Junction (to Cartwright) was designated as Route 516. Phase II also included other branch routes: Route 513 to St. Lewis Route 514 to Charlottetown and Pinsent Arm A segment of Quebec Route 138 extends from Old Fort, Quebec to the Newfoundland and Labrador border connecting with Route 510 near Blanc-Sablon on the eastern end of the Côte-Nord. A gap remains between Kegashka and Old Fort, through isolated communities accessible only by coastal ferry. On August 25, 2006, the Quebec government announced a 10-year project to connect the two segments by