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11
STRUCTURE OF THE TRANSPORTATION INDUSTRY
Marine Transportation Industry
Canada's marine industry includes a fleet of Canadian flag
operators providing domestic and transborder shipping services.
International trade is served largely by foreign flag operators
calling at Canada's major ports. In recent years, there have been
major policy reforms in the marine sector, and 1999 was no exception.
The year was marked by a number of important events, as well as
progress on some significant legislative changes.
Major Marine Events in 1999
Legislative and Regulatory Changes and Initiatives
Amendment to the Canada Shipping Act (Bill S-4), 1998
Bill S-4, An Act to amend the Canada Shipping Act, was implemented
in Chapter 6 of the Statutes of Canada 1998. Provisions of Bill
S-4, which relate to claims for oil pollution damage, were
brought into force by an Order-in-Council on May 29, 1999. This
was 12 months from the date on which Canada deposited with the
International Maritime Organization its instrument of accession
to the 1992 Protocols to the 1969 International Convention on
Civil Liability for Oil Pollution Damage, and to the 1971 International
Convention on the Establishment of an International Fund for Compensation
for Oil Pollution Damage.
Review of the Carriage of Goods By Water Act (COGWA)
On December 10, 1999, pursuant to a legal requirement contained
in the Carriage of Goods by Water Act (1993), the Minister
of Transport submitted a Report to Parliament on the review of
the Act. The report concluded, based on consultations with industry
and provinces, that the Hague/Visby Rules should be retained in
the COGWA until the end of the next review period (January 1,
2005).
Shipping Conferences Exemption Act, 1987 (SCEA)
During 1999, Transport Canada initiated consultations with
stakeholders on the Shipping Conferences Exemption Act, 1987
(SCEA) to determine whether the legislation continues to support
Canada's goals of promoting international trade and ensuring Canadian
shippers have access to adequate international ocean shipping
services at reasonable cost.
SCEA exempts certain practices of shipping conferences from
the provisions of the Competition Act. A shipping conference
is an association of liner companies operating under an agreement
to provide service on common routes based upon agreed rates and
terms of service. Under SCEA, shipping conferences can set ocean
freight rates and services collectively, provided that the
rates are published in a tariff filed with the Canadian Transportation
Agency (CTA) and their conference agreement has been similarly
filed.
To promote intra-conference competition and provide shippers
with additional options, including pricing options, the Act incorporates
provisions for confidential "service contracts" and
independent action by individual conference members. The legislation
is consistent with that of Canada's major trading partners.
The Act also provides for the Minister of Transport to designate
a shippers group to represent the interests of shippers. The Canadian
Shippers' Council (CSC) has been so designated. Under the Act,
shipping conferences are required to meet with the designated
shippers group when requested to do so and are to provide information
for the satisfactory conduct of a meeting. It is normal practice
that the CSC meet with tariff filing conferences to discuss the
conferences' proposed business plans, as well as their rates,
surcharges and ancillary charges.
Canada Marine Act: Implementation Status
The Canada Marine Act (CMA), which received Royal Assent
on June 11, 1998, created a National Ports System made up of independently
managed Canada Port Authorities (CPAs). To date, 17 of the 18
ports designated to become CPAs have received their CPA status
and have established boards of directors. The implementation dates
were presented in Chapter 10,
Transportation Infrastructure.
A CPA for the Port of Hamilton, the last remaining designated
CPA, will be established when the letters patent process is completed.
In addition to these original 18 ports, applications for
CPA status from two other ports, Belledune and Oshawa were received.
Letters patent are under development for the Ports of Belledune
and Oshawa.
The Canada Ports Corporation (CPC) has been kept open during
the implementation phase of the National Ports System to
ensure that all ports have been either transferred to CPA status
or divested to local interests. Ridley Terminals, for its part,
will become a parent Crown corporation reporting to the Minister
of Transport, upon the winding up of the CPC. Over the longer
term, the government intends to divest itself of Ridley Terminals
when the time is appropriate.
The sections of the Canada Marine Act dealing with pilotage
and the commercialization of the St. Lawrence Seaway came into
force during 1998. For more details, see Chapter 10, Transportation
Infrastructure.
Ports Task Force
On June 22, 1999, the Minister of Transport announced the formation
of a Ports Task Force to move forward with Justice Willard Estey's
vision for a more commercially oriented, contract-based grain
handling and transportation system. Headed by the Deputy Minister
of Transport, the Task Force studied issues of strategic importance
to the ports of Churchill, Prince Rupert, Vancouver and Thunder
Bay, as well as to other stakeholders with marine interests affected
by the transportation and handling of grain.
The Task Force ran parallel with, and complemented, the work
of Mr. Arthur Kroeger, who was appointed by the Minister
of Transport to seek consensus among system participants on the
changes necessary to implement the grain transportation reform
framework set out by Justice Estey.
During cross-Canada meetings, stakeholders consistently stressed
the importance of retaining market discipline and commercial principles
in addressing port grain transportation and handling issues. In
general, they were reluctant to consider quotas, traffic commitments,
or measures that could distort the commercial basis of grain movement.
On the other hand, confronted with low international commodity
prices, many insisted on containing the various costs of doing
business, including the cost of federal marine services.
The Ports Task Force Report summarizes the positions of major
stakeholders and presents key findings on the issues raised. It
was provided to the Minister of Transport in late September 1999
and is now publicly available.
Industry Events
International
There were a number of important events in the international
marine sector in 1999.
- Three container lines (Zim, the China Ocean Shipping Company
and Norasia) made Vancouver their first port of call inbound
from the Far East. CN and CP Rail provide dedicated double-stack
rail services to move containers to inland destinations in Canada
and the US.
- The Port of Vancouver was hit by two work stoppages -- a
truckers' strike in the summer and a lockout of longshoremen
in November. Despite this, the port announced in early December
that it would still handle a record one million TEUs (Twenty-foot
Equivalent Units) in 1999.
- There was a surge of new entrants into the transpacific liner
trades, reflecting improved rates and traffic levels. These included
such lines as: Norasia, FESCO, the Mediterranean Shipping Company,
Trans-Pacific Line, Great Western Steamship Company and CMA/CGM.
In addition, two other lines, Zim and Evergreen, each added a
new string of vessels to their existing services.
- The US Ocean Shipping Reform Act of 1998 came into
force on May 1, 1999. It grants the right of confidential contracting
between individual conference lines and shippers.
- Transpacific Westbound Rate agreement (TWRA) and Asia North
America Eastbound Rate Agreement (ANERA) -- the main shipping
conferences on the US transpacific routes -- were dissolved
in the spring of 1999, partly in reaction to the new US
ocean shipping reform legislation. The Canada Westbound Rate
Agreement was also dissolved at this time.
- Maersk Inc. and Sea-Land Services Inc. announced their decision
to stay with New York/New Jersey as their main load centre port
on the east coast of North America. The ports of Halifax
and Baltimore were runners up in the competition.
- Following Sea-Land's departure from the joint service in April
1999, NYK (Nippon Yusen Kaisha) announced that it would join
the joint service offered by Maersk and P&O Nedlloyd
Ltd. between Montreal and Europe.
- The Wallenius and Wilhelmsen lines announced the formation
of a joint operating company to handle their car-carrying and
Ro-Ro shipping activities.
- Maersk acquired the international liner services of Sea-Land,
its current operating partner in worldwide liner operations.
Domestic
- Algoma Central Corporation increased the size of its tanker
fleet with the purchase of the main operating companies and certain
assets of the EnerChem Group, including three Canadian-registered
tankers.
- Canada Steamship Lines took delivery of the CSL Niagara,
the first vessel to receive a new forebody in a planned series
of three. The hull replacement program is expected to cost
about $100 million.
- Groupe Desgagnés registered a new oil tanker, constructed
in China, under the Canadian flag. This is the first brand
new ship to be added to the eastern Canadian bulk fleet
since the mid-1980s.
Marine Freight Transport Services
Domestic Services
From 1979 to 1999, the Canadian merchant fleet (defined here
as self-propelled vessels of 1000 gross tons and over) went from
3.3 million to 2.6 million deadweight tonnes, losing on average
one per cent of its carrying capacity each year. In terms of vessels,
the number of ships decreased from 260 to 174 over the period.
In terms of carrying capacity (deadweight), the peak was reached
in 1984 with 3.7 million deadweight tonnes and the low in 1997
at 2.4 million tonnes. Figure 11-7 shows the evolution of the
Canadian registered fleet from 1979 to 1999.
From 1979 to 1999, dry bulk carriers have formed the backbone
of the Canadian merchant fleet, although their share of total
deadweight tonnage went from 84 to 74 per cent over the period.
Their number decreased from 134 to 72 units over the period. At
the opposite, tankers' share of total deadweight tonnage moved
from 9 to 19 per cent, although their number diminished
from 36 to 21 vessels.
Table 11-9 reveals the transport capacity of the Canadian registered
fleet, by type of vessel.
Eastern Canada
Table 11-10 provides information on vessel type, gross registered
tonnage (GRT), area of operation and type of service for companies
operating Canadian-flag cargo vessels of 1,000 GRT or above in
eastern Canada. Algoma Central Corporation, Upper Lakes Group
and Canada Steamship Lines are the three largest operators in
the area. Algoma Central, with 28 per cent of eastern Canada's
fleet capacity, is the largest inland shipping company in Canada.
Traditionally, Algoma Central operated in the dry bulk trades.
In 1998, however, it bought five tankers from Imperial Oil Ltd.,
the Canadian subsidiary of Exxon Corp. In January 1999, Algoma
Central increased the size of its tanker fleet with the purchase
of the main operating companies and certain assets of the EnerChem
Group, including three Canadian registered tankers. The sale included
a part interest in two US-flag tankers as well.
Western Canada
Domestic marine freight services on the West Coast are provided
by a large fleet of tugs and barges. (Unfortunately, there is
no fleet list available by company that provides GRT for tugs
and barges.) While most of the operators concentrate on domestic
trade, some also trade internationally between Canadian and US
ports. The West Coast also has a significant fleet of ferry
vessels that provide links to coastal and island communities.
Three of the top tug and barge companies are owned by Montana
businessman Dennis Washington -- Seaspan International Ltd., C.H.
Cates & Sons Ltd. and Kingcome Navigation Company (formerly
owned by MacMillan Bloedel). Seaspan International Ltd. is the
largest Canadian tug and barge operator on the West Coast. Along
with tug and barge transportation, Seaspan's main areas of business
include log barging and ship docking.
Northern Canada
Northern Transportation Company Limited (NTCL) is the major
marine operator in northern Canada, an area that encompasses
the Mackenzie River Watershed and the Arctic coast and islands.
It handles bulk petroleum products and dry cargo for communities,
defence installations and gas exploration sites across the region.
Its operations cover the Mackenzie River, the Western Arctic,
Alaska and Great Slave Lake.
Since 1975, the company has also provided tug and barge operations
from the Port of Churchill to service communities in what is now
the Kivalliq region of Nunavut. Most recently, NTCL has added
tug and barge services to the Eastern Arctic via Valleyfield.
(Historically, most cargo to the Eastern Arctic moved from Montreal
on freighters as part of the Eastern Arctic sealift administered
by the Canadian Coast Guard.)
NTCL is a member of the NorTerra group of companies, a holding
company wholly owned by Aboriginals. NorTerra Inc. is managed
and owned equally by Inuvialuit Development Corporation, representing
the Inuvialuit of the Western Arctic, and Nunasi Corporation,
representing the Inuit of Nunavut.
According to Lloyd's List of Shipowners, Managers, and Managing
Agents, 1999-2000, NTCL owns 87 vessels, including 71 barges
(mainly tank barges that carry dry cargo on their decks) and 16
tugs, with a total fleet capacity of 71,449 GRT (Lloyd's does
not include vessels under 100 GRT). NTCL's tugs were constructed
between 1943 and 1973, and its barges between 1969 and 1975.
Other long-term operators in the Western Arctic include A.
Frame Contracting Ltd. and Cooper Barging Service Ltd. The former
operates a tug and several barges, and provides seasonal barge
service to communities on Lake Athabasca. The latter operates
a fleet of three tugs and six barges and provides resupply
services on the Mackenzie and Liard Rivers from its base at Fort
Simpson.
The Canadian Coast Guard has been managing the Arctic Sealift
Program to re-supply coastal communities in the Eastern Arctic
(Nunavut) since 1959. Operated on a cost-recovery basis, the service
co-ordinates the delivery of cargoes for federal departments,
the territorial government, the United States Air Force, municipalities,
and private businesses and citizens. The Coast Guard contracts
with commercial cargo vessels and tankers to transport dry cargo
from its main marshalling base in Montreal, as well as bulk fuel
from northern distribution points. Goods are moved out of Montreal
during the ice-free summer period to communities in the Eastern
Arctic (Nunavut). Coast Guard personnel hire space on ships, act
as booking agents, negotiate the lowest possible freight rates
with carriers, and monitor the movement of cargo until it is discharged
at its destination. The Sealift Program serves 26 communities
encompassing Foxe Basin, the High Arctic and South and East Baffin
Island. Each year, the program co-ordinates the movement of approximately
10,000 tons of cargo.
International Services
Bulk Shipping
Bulk shipping refers to the sector of the marine freight industry
that, in general, carries single cargoes in large volume ships.
Canadian shippers of bulk commodities such as grain, coal,
iron ore and potash rely on bulk shipping operators for the movement
of their cargo.
Bulk freight rates are normally set in the highly competitive
global open market. In general, the market is made up of time
charters (term contracts) and the "spot" market. The
terms of charter contracts typically range from one to five years,
depending on the volatility of prices. Longer contracts are common
during periods of greater predictability in transportation rates,
while shorter contracts usually prevail when prices are unstable.
The majority of Canada's exports and imports are moved under these
types of marine service arrangements.
The "spot" or "tramp" market is made up
of short-term contracts covering a specific number of voyages,
days or given quantity of cargo. Spot prices are set in open markets
and exchanges. Prices depend on supply and demand factors such
as vessel size, equipment, trade route and timeliness of the service
requirement.
Liner Shipping
Liner services are offered according to published schedules
and on specific trade routes with fixed itineraries. In general,
liner carriers handle containerized and/or break-bulk cargoes,
such as electronics, manufactured goods or frozen produce.
The international liner trade is dominated by large fleets
of specialized container vessels operating on major trade
routes around the world and is controlled to a large degree by
Pacific Rim and Western European interests. While Canada controls
a significant fleet, it is still relatively small. Over the past
few years, however, the Canadian presence has been increasing
through the acquisition of other foreign lines. (The vessels in
the Canadian-controlled international fleet operate under lower
cost foreign flags.)
Shipping lines calling at Canadian ports may choose to provide
conference or non-conference liner services. Ocean carriers
providing liner services on a common trade route often elect to
form a shipping conference and collectively agree on rates and/or
conditions of service. Under a conference agreement, carriers
are exempt from certain practices stipulated in the provisions
of the Competition Act. They are entitled to this exemption, however,
only if the conference has complied with the Shipping Conferences
Exemption Act, 1987 (SCEA).
Non-conference lines, also referred to as "independents,"
are not subject to SCEA and therefore not required to file agreements
or tariffs. They generally offer rates and services that are comparable
with conference operators and contribute to a competitive international
shipping industry.
Global traffic in containerized cargoes has expanded rapidly
over the past decade, rising from approximately 80 million
to 150 million containers (TEUs).Note 7 Much of the gain
has been associated with expansion of markets and industrial output
of the Asia-Pacific region. When measured in constant dollars,
freight rates for ocean container shipping either remained steady
or have declined during the last decade.Note 8
Services Available to Canadian Shippers
At the end of 1999, the Canadian Transportation Agency had
16 shipping conference agreements on file. Thirteen of these conferences
file a tariff with the agency, down from 19 conferences in 1998.
The majority operate from eastern Canada to Northern Europe and
the Mediterranean. Among the major lines serving Canada as
conference members are Atlantic Container Line, Canada Maritime
Ltd., Hapag-Lloyd Container Line, P&O Nedlloyd Ltd., Mitsui
O.S.K. Lines and the Orient Overseas Container Line.
Table 11-11 lists the 13 tariff-filing conferences serving
Canada in 1999. Eleven serve the east coast and six serve the
west coast. Six conferences serving the Canadian trades dissolved
during 1999, most notably the Canada Westbound Rate Agreement
(CWRA). The US Ocean Shipping Reform Act of 1998, which
came into effect on May 1, 1999, appears to have influenced the
decision by several conferences to withdraw from the North American
trades. The CWRA's successor on the route -- the Canada Westbound
Transpacific Stabilization Agreement -- is not a tariff-filing
conference and therefore not included in Table 11-11.
Shippers benefit not only from competition between conference
and non-conference carriers, but also from competition within
conferences through the independent action provision in the Shipping
Conferences Exemption Act, 1987. The provision permits individual
conference lines to offer a rate, or services, different from
that which is published as part of the conference tariff. In addition,
shipping conference rates paid by shippers can be negotiated and
signed as a confidential "service contract" between
a conference and a shipper. To comply with the Act, service contracts
must be filed with the Canadian Transportation Agency.
In 1999, the agency accepted filings for 95 service contracts
from seven conferences, down significantly from the 146 service
contracts filed in 1998. The contracts applied to both inbound
and outbound traffic and to origins/destinations on both the east
and west coasts of Canada. The majority, however, applied to the
east coast. The average duration of the contracts was one year.
Marine Passenger Transport Services
Ferry Services
Canada's ferry services vary widely in terms of ownership,
vessel type and operation. Owners range from small private operators
to provincial governments and federal Crown corporations. Vessel
types range from small cable ferries to large cruise-type vessels
and fast ferries. In addition, some ferries operate seasonally,
while others run year-round. Terminal and docking facilities are
also variously owned, leased and operated by ferry companies,
municipalities, provincial and federal governments, or other private
companies.
All major ferry operators in Canada belong to the Canadian
Ferry Operators Association (CFOA). As a group, these operators
employ approximately 7,650 persons.
Federal Subsidies to Ferry Operations
The 1995 National Marine Policy set out the federal government's
goal to make the marine sector more commercially oriented. This
initiative is consistent with the government's objective to make
Canada's transportation system as a whole more responsive to future
commercial challenges by reducing its involvement in the direct
delivery of transportation services and allowing the private sector
to provide some of them. As such, the government has been considering
various ways to cut costs and improve efficiency through new vessel
management and procurement practices, commercial operation
of vessels, and the streamlining of ferry services.
For example, several of Marine Atlantic's ferry services were
commercialized through arrangements with provincial governments
or the private sector. Additionally, on June 1, 1997,
Marine Atlantic's service between Borden, Prince Edward Island,
and Cape Tormentine, New Brunswick, ended with the opening of
the Confederation Bridge. The corporation, which will continue
to provide the constitutionally guaranteed ferry services
between Nova Scotia and Newfoundland, will see its subsidy level
drop from $122 million in 1993, to an estimated $28.6 million
in 1999.
Federally supported ferry services in Atlantic Canada are now
limited to those provided by Marine Atlantic, a federal Crown
corporation, and by three private-sector operators: Northumberland
Ferries Limited, Bay Ferries Limited and C.T.M.A. Traversier Ltée.
The federal government will also continue to provide an annual
subsidy to the Province of British Columbia for ferry services
in that province.
Cruise Ship Industry
Canada's cruise ship industry continued to grow and diversify
in 1999. The Alaskan luxury cruise market, using Vancouver as
a base port, continued its upward trend, as did the Canada/New
England market. Local Canadian operators also offer a multitude
of lock, harbour and river cruises, as well as excursions such
as those for whale watching. There is even a stern-wheeler offering
daily cruises out of New Westminster, British Columbia, on the
Fraser River.
In March 1999, amendments to Canada's Criminal Code
came into effect, easing restrictions on casino gambling aboard
cruise ships. International cruise lines are now able to operate
their on-board casinos until they are five nautical miles from
a Canadian port of call. Previously, vessels had to close casinos
as soon as they reached Canadian territorial waters.
Foreign-based companies dominate extended cruise operations
calling at Canada's east and west coast ports. There are two basic
categories of extended cruises: the luxury cruise, with a
vessel capacity of over 150 passengers; and the pocket cruise,
having fewer than 150 passengers.
After the Caribbean and Europe, Alaska is the third largest
cruise market in the world. Most luxury cruise vessels sailing
to Alaska use the Port of Vancouver as their home port (where
passengers embark and/or disembark). The US Passenger Vessel
Act prohibits foreign-flag vessels from carrying passengers
between US ports (i.e. embarking passengers at one US port and
disembarking them at another). Trips between Vancouver and Alaska
also fit conveniently into a seven-day time frame.
In eastern Canada, luxury cruise ships regularly travel along
the eastern seaboard and up the St. Lawrence River to Quebec City
and Montreal. They also sail out of New York to Halifax, Saint
John and other Atlantic ports. While many of these cruises have
traditionally travelled during the fall colour season, summer
visits are also becoming popular. Pocket cruises travel the St.
Lawrence River between Montreal or Quebec City, and Kingston or
Rochester.
The Atlantic Canada Cruise Association forecast a total economic
impact of $18.9 million in 1999, for the 19 ports in the four
Atlantic Provinces, up from $13.6 million in 1998. In recognition
of the increased vessel calls, the Halifax Port Authority opened
a dedicated cruise facility in early September, and St. John's,
Newfoundland, widened the entrance to its harbour to accommodate
larger vessels. Improvements at other ports are also being planned.
On the Great Lakes, the luxury cruise ship Columbus, which
first visited in 1997, has been joined by the French-owned Le
Levant and Cunard-Seabourn's Seabourn Pride. This could indicate
a resurgence in Great Lakes' cruising after a hiatus of over
two decades.
OVERVIEW OF MAJOR FERRY SERVICES AND CHANGES |
Marine Atlantic Inc. (MAI) -- Ownership:
A federal Crown corporation
Area of operation: Operates the constitutionally guaranteed
year-round ferry link between North Sydney, Nova Scotia, and
Port aux Basques, Newfoundland, and the seasonal alternative
between North Sydney, Nova Scotia, and Argentia, Newfoundland.
1999 events: The federal government conducted a major
review to examine the level of service provided by MAI. The review
found that its current capacity was insufficient to deal
with the forecasted growth in traffic, particularly for the peak
season. In December 1999, the Minister of Transport asked
MAI to negotiate the procurement of a vessel within the limits
set out in its 2000-2004 Corporate Plan, and to report back on
specific procurement options as soon as possible.
Coastal Transport Ltd.
Area of operation: Operates year-round passenger/vehicle
ferry service to the islands of Grand Manan and White Head, New
Brunswick, under contract with the Province of New Brunswick.
The ferry to Grand Manan leaves daily from Black's Harbour, New
Brunswick, while White Head Island ferry departs several
times a day from Grand Manan at Ingalls Head.
Northern Cruiser Ltd. (NCL)
Area of operation: Operated a single passenger/vehicle
ferry service between Blanc Sablon, Quebec, and St. Barbe, Newfoundland,
from May to January, under contract with the Province of
Newfoundland.
1999 events: The Province of Newfoundland called a tender
for this service and awarded the contract to a new operator starting
in January 2000.
Northumberland Ferries Limited (NFL)
Area of operation: Provides seasonal passenger/vehicle
ferry transportation (May 1 to December 20) between Caribou,
Nova Scotia, and Wood Islands, Prince Edward Island, under
contract with the federal government.
Bay Ferries Limited
Area of operation: Provides yearly passenger and vehicle
ferry service between Saint John, New Brunswick, and Digby, Nova
Scotia, and seasonal service (June 1 to mid-October) between
Yarmouth, Nova Scotia, and Bar Harbor, Maine, under contract
with the federal government.
C.T.M.A Traversier Ltée
Area of operation: Provides federally subsidized passenger/vehicle
ferry service between Cap-aux-Meules, Magdalen Islands, Quebec,
and Souris, Prince Edward Island, during the ice-free period
from early April until late January. C.T.M.A. also provides a
passenger/ cargo ferry service from Cap-aux-Meules to Montreal
from April to December and from Cap-aux-Meules to Matane during
the winter, under contract with the Province of Quebec.
Newfoundland and Labrador's Department of Works, Services
and Transportation
Area of operation: Provides all the intraprovincial
and coastal ferry services under contract with private operators.
The department has also responsibility for the Labrador
Coastal Service, which was formerly provided by Marine Atlantic
Inc.
La Société des traversiers du Québec
(STQ)
Area of operation: Subsidized by the Quebec transportation
ministry, STQ operates five year-round passenger/vehicle ferry
services across the St. Lawrence River within the Province
of Quebec. STQ also has responsibility for three other provincially
subsidized ferry services, which are operated by private
companies. These routes include Rivière-du-Loup to Saint-Siméon
(operated by CFOA member La Traverse Rivière-du-Loup/Saint-Siméon
Ltée), Montmagny to Île-aux-Grues, and Cap-aux-Meules
to Île-d'Entrée.
Quebec Ministry of Transportation
Area of operation: Subsidizes a private operator servicing
Isle Verte and a water taxi service in St. Augustin. The ministry
is also responsible for the adjudication of contracts for transporting
supplies to native communities in Northern Quebec.
Ontario Ministry of Transportation
Area of operation: Provides financial support to four
year-round ferry operations in eastern Ontario. The Province
of Ontario operates the Glenora, and the Wolfe Island to
Kingston ferries, while ferry services to Amherst and to Howe
islands are operated by their respective township authorities.
Owen Sound Transportation Company (OSTC)
Area of operation: Provides seasonal passenger/vehicle
ferry services on Lake Huron between Tobermory, Ontario, and
South Baymouth, on Manitoulin Island, from early May until
mid-October. OSTC also manages transportation services on Lake
Erie between Leamington/ Kingsville and Pelee Island, Ontario,
and Sandusky, Ohio, from April through December on behalf of
the Ontario Ministry of Transportation.
Manitoba Department of Highways and Transportation
Type of service: Operates seven passenger/vehicle
ferries, three motor vessels and four cable ferries.
Area of operation: Provides services on lakes and across
rivers in the province, including river ferries to Norway House,
Matheson Island and Cross Lake.
British Columbia Ferry Corporation (BC Ferries) -- Ownership:
Provincial Crown corporation
Area of operation: The British Columbia government
receives a federal grant for the provision of ferry services
in coastal waters. BC Ferries is the largest ferry operation
in North America, with a fleet of 40 vessels on 26 routes serving
43 marine terminals, as well as seven other sites.
1999 events: On November 6, 1999, BC Ferries' second fast
ferry, the PacifiCat Discovery, was officially commissioned.
The Discovery began scheduled service as the lead vessel out
of Horseshoe Bay on November 22, 1999. In January 2000, a dedicated
fast ferry service will be introduced between Departure Bay and
Horseshoe Bay with conventional vessels to provide only supplementary
service during peak travel times. The Discovery cost $10 million
less to build than the first PacifiCat and was completed eight
months faster.
British Columbia's Ministry of Transportation and Highways
Area of operation: Operates and maintains British
Columbia's inland ferry service and contracts with a private
operator for the provision of a tug and barge ferry service.
The ministry also subsidizes a private ferry service on one of
the province's interior lakes.
|
- Appendix 11-1 Railway Operators
by Region, 1999
- Appendix 11-2 Selected Urban
Transit Systems of Importance to Canada
Marine Transportation Industry
NOTES
7
Discussion Document on Regulatory Reform in International Maritime
Transport; Maritime Transport Committee of the OECD, May 1999.
8
Discussion Document on Regulatory Reform in International Maritime
Transport; Maritime Transport Committee of the OECD, May 1999,
page 48.
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