TC - Strategic Highway Infrastructure Program (SHIP) - FAQs

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Transport Canada > Strategic Highway Infrastructure Program > FAQs - Frequently Asked Questions

What is the Strategic Highway Infrastructure Program (SHIP)?

In April 2001, Transport Minister David Collenette announced that the Strategic Highway Infrastructure Program (SHIP) would provide $600 million over five years to improve Canada’s National Highway System. This program builds on a series of partnerships with the provinces and territories over the past 80 years.

SHIP will provide $500 million to improve Canada’s highways until March 2006. The Government of Canada will work with the provinces and territories to identify those parts of the national highway system that need immediate attention because of growing traffic and increasing trade. This will result in a safer and more efficient highway system for all Canadians.

SHIP will also provide $100 million to fund strategic initiatives that better integrate the transportation system. These include the deployment of Intelligent Transportation Systems across Canada, improvements to border crossings and better transportation planning.

What is the National Highway System?

The National Highway System (NHS) was defined by the Council of Transportation Ministers in 1988. It includes the Trans-Canada Highway and other major east-west and north-south highways. Spanning almost 25,000 kilometres, the NHS includes the most economically important interprovincial and international corridors within Canada. The NHS is the backbone of Canada’s highway network.

What are the objectives of SHIP?

Projects funded under SHIP will support one or more of Transport Canada's long term objectives:

improve the quality of life of Canadians by promoting safer and more environmentally sustainable transportation;
support trade, tourism and investment in Canada;
make the Canadian surface transportation system more reliable, efficient, competitive, integrated and sustainable; and
strengthen national unity by sustaining strategic infrastructure investments in all regions of the country to respond to local needs.

What are Intelligent Transportation Systems (ITS)?

Intelligent Transportation Systems (ITS) are a broad range of diverse technologies applied to transportation to make systems safer, more efficient, more reliable and more environmentally friendly, without necessarily having to physically alter existing infrastructure. The range of technologies involved includes sensor and control technologies, communications, and computer informatics.

These technologies are already having an effect on our transportation system to the benefit of businesses and the travelling public, and will continue to influence transportation in the future. For example, ITS can make the collection of tolls along roads and bridges quicker, especially for frequent travellers. And ITS can have a similar impact at border crossings, providing for more efficient information gathering and processing, which will ease congestion and reduce waits. In these and many other ways, ITS can improve traffic flows, and therefore also help to reduce greenhouse gas emissions.

For more information, visit the Intelligent Transportation Systems Web site.

How will funding be allocated to each province under the highways portion of SHIP?

An allocation formula has been developed to distribute the funds to the provinces and territories under SHIP. The formula consists of a minimum of $4 million per jurisdiction plus a share based on population. The federal share is matched 50/50 by the provinces and territories.

What construction projects are eligible for funding under the highways portion of SHIP?

To be eligible for federal funding all projects must meet the following requirements:

be on the National Highway System (as defined by the Council of Ministers Responsible for Transportation and Highway Safety) or, at the Ministers’ discretion, projects could be the construction of or improvements to links between segments of the NHS;
represent major capital projects involving rehabilitation or the addition of new capacity;
form part of major east-west or north-south highway trade routes;
be supported with a detailed justification;
meet all federal and provincial/territorial environmental requirements;
adhere, at a minimum, to the Transportation Association of Canada (TAC) engineering guidelines; and
adhere to the Strategic Framework Governing Public-Private Partnerships and Tolling Schemes under the Strategic Highway Infrastructure Program.

Note: Given its lack of highways, investments in the Territory of Nunavut will be directed at priority transportation infrastructure identified in the Nunavut Transportation Vision. The cost sharing ratio will reflect Nunavut’s fiscal situation.

What types of projects are eligible for funding under the strategic initiatives portion of SHIP? How are funds allocated?

SHIP is the first highway infrastructure program to provide $100 million in funding for strategic initiatives that improve connections between modes of transportation, promote more efficient trade between Canada and the United States, and develop and deploy new transportation technologies. Funding will be assigned to strategic projects of national importance, rather than by jurisdiction, and all projects will have to meet eligibility and selection criteria requirements. These initiatives include a mix of targeted projects and calls for proposals. Funds will be spent in three areas:

Intelligent Transportation Systems (ITS): ITS can help make Canada’s transportation system safer, more secure, efficient, productive, and environmentally friendly through applications such as advanced systems and technologies for public transit, traffic management, traveller information, cargo location and control, and commercial vehicle and fleet management. ITS projects received $30 million in funding under SHIP.

Border Crossings: Improving links between Canada and our most important trading partner - the United States - is another key element of SHIP. Approximately $65 million will be used for improvements at and near land border crossings. This means widening highways, constructing dedicated lanes for low-risk passengers and cargo, more secure traffic flows and new technologies at key border locations.

Transportation Planning/Modal Integration Studies: In order to encourage transportation planning, $5 million has been dedicated for initiatives such as feasibility studies, the development and dissemination of information management tools and new technologies, and studies designed to improve connections between modes of transportation. For example, Transport Canada, along with the governments of Ontario, Michigan and the United States, have launched a bi-national planning process to improve Canada’s busiest crossing point - between Windsor, Ontario, and Detroit, Michigan.

How are projects selected?

Projects are selected on the basis of how they support one or more of the following criteria:

safety improvements (projects that improve safety by reducing transportation accidents);
productivity (initiatives leading to productivity gains that reduce transportation costs for all economic sectors);
economic efficiency (initiatives that improve the reliability and overall operating performance of the transportation system);
environmental impacts (projects that have minimum environmental impacts); and
national interests (national projects aimed at sustaining transportation infrastructure or systems that are key components to the efficient east-west and north-south traffic flow).