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I. INTRODUCTION

With the coming into force of the pilotage section (Part 7) of the Canada Marine Act in October 1998, the Pilotage Act was amended and required the Minister of Transport to further review five distinct subject issues with respect to the pilotage system. These specific issues were:

•  the pilot certification process for masters and officers;
•  the training and licensing requirements for pilots;
•  compulsory pilotage area designations;
•  dispute resolution mechanisms; and
•  the measures taken in respect of financial self-sufficiency and cost reduction.

Recent amendments to the Pilotage Act and the incorporation of appropriate provisions within collective agreements obviated the need to review the issue of dispute resolution mechanisms.

To ensure an impartial and unbiased assessment of the four remaining issues, the Minister requested the Canadian Transportation Agency (CTA) to undertake a comprehensive pilotage review and provide a report of its findings by September 1, 1999 at the latest. The CTA established the Pilotage Review Panel (Panel) whose role was to address deficiencies and long-standing issues and to formulate appropriate solutions in the form of recommendations for the Minister’s consideration. It was stressed that these recommendations should ensure the efficiency, viability and safety of the Canadian pilotage system and respond to the legitimate needs and expectations of all its users.

The review involved considerable research and extensive consultation with stakeholders from all segments of the Canadian marine industry, at both regional and national levels. Throughout there view, it was recognized that pilotage is regional by nature and, therefore, the solutions to some of the issues would also be regional while others would apply to all pilotage regions.

Following numerous studies and regional meetings over a period of several months, the Panel short-listed the salient points for each issue and introduced possible solutions for debate at the final national meeting in June 1999. This meeting was convened to finalize the solutions and provide recommendations which, it was hoped, would achieve a high degree of stakeholder consensus.

In its report to the Minister, the Panel identified twenty-one recommendations for improvements to Canada’s pilotage system. These recommendations and the responses by Transport Canada are contained in the Ministerial Review of Outstanding Pilotage Issues. That report was tabled in Parliament in November 1999.

Recommendation 1 of the Ministerial Review addresses one of the most important issues, namely, the designation of compulsory pilotage areas. This recommendation is directed at each of the four pilotage authorities and indicates that no records could be found demonstrating that the authorities had used a risk-based process in the past when reviewing the designation of compulsory pilotage areas. It was stressed that such designation should not be imposed indiscriminately but must be the result of appropriate research and evaluation of all the facts and of meaningful consultation with all stakeholders. Furthermore, if pilotage authorities expect users to accept the designation of an area, there must be clear justification that compulsory pilotage is warranted to enhance safety and protect the marine environment.

It should be noted that a proper risk-based methodology will be a prerequisite when designating or re-assessing compulsory pilotage areas. The Authorities have been tasked to assess those areas where there have been changes in factors which would justify a re-examination of compulsory area designation. In addition, Transport Canada supports the review of compulsory pilotage area designations on a five-year basis.

Similarly, Recommendation 2 of the Ministerial Review endorses a risk-based assessment in relation to the size and types of vessels that are subject to compulsory pilotage. This issue again highlights the need for risk-based decision-making.

Also under the subject of compulsory pilotage, Recommendation 3 supports the current practice of providing waivers from compulsory pilotage on a case-by-case basis while recognizing the need to maintain navigational safety and protect the environment. In the interest of greater transparency and accountability, the CTA Panel recommended that each authority should provide clear reasons when denying a request for a waiver.

Last but not least, Recommendation 4 acknowledges the need for a risk-based assessment with respect to double pilotage in designated pilotage areas within the Laurentian region. It would appear that no risk-based analysis had been conducted in the past to substantiate the decision to require double pilotage. As compulsory pilotage impinges upon the basic freedoms of mariners, it should only be imposed when necessary and to the extent warranted. This applies equally to the issue of double pilotage. If users are expected to accept the costs associated with double pilotage, then the authority must clearly demonstrate that two pilots are justified based on an analysis of the appropriateness of double pilotage as the means proposed to address the risks.

Based on Recommendation 1 of the Ministerial Review, each of the pilotage authorities was strongly urged to adopt a risk-based methodology so that it would be able to properly conduct risk-based assessments in the future.

Recognizing that each authority could conceivably adopt a different risk-based methodology to evaluate its particular issues, it was decided, in the interest of simplicity and consistency, to develop a national risk-based methodology that could be used by all.

In light of these recommendations, a Pilotage Steering Committee (PSC) was created. It was comprised of the CEOs from each of the pilotage authorities and Transport Canada representatives from the Marine Personnel Standards and Pilotage Branch. This Committee was set up to supervise the development of a comprehensive risk-based methodology.

During early discussions, it became apparent to PSC members that there were various tools and methodologies available for risk management. After a careful review of the needs, issues and concerns of the various pilotage authorities, it was decided to adopt a risk management approach for pilotage that is compliant with the Canadian Standards Association Standard CAN/CSA-Q850.

This standard has already been adopted by many organizations, including other administrations, the private sector and also by the Civil Aviation Directorate of Transport Canada. It was recognized that the experience gained in the usage of Q850 within the Department could prove beneficial and that it could be readily adapted to meet pilotage needs.

This risk management approach provides an iterative process consisting of easy-to-follow steps which, when taken in sequence, provide for a consistent, transparent and well-documented decision- making process. It was anticipated that this methodology would be sufficiently flexible to adapt to the various pilotage issues.

A working group was tasked by the PSC to develop the standardized methodology for risk-based decision-making that would satisfy each authority’s specific regional and technical needs. This methodology is called the Pilotage Risk Management Methodology (PRMM).

The PRMM goes further than the standard risk assessment or risk analysis approach and follows a sound risk management approach. In the development of the PRMM, it was recognized that there is a need to understand how a potential loss might affect stakeholders differently and that considering risk solely in terms of probability and consequence is insufficient and may be quite misleading to the decision-maker. Of equal or greater importance is the perception of loss or how the loss is viewed or accepted by the affected stakeholders when compared to their individual needs, issues and concerns.

Furthermore, risk control strategies or risk reducing strategies should be evaluated in terms of the needs, issues and concerns of all affected stakeholders as well, particularly those stakeholders that can affect whether or not an activity proceeds. The PRMM stresses the importance of involving stakeholders from the outset and maintaining good documentation throughout all stages in the process.

The PRMM provides a solid foundation for analysis but is sufficiently flexible to meet the specific needs of each pilotage authority. During the development of the PRMM, a major component model was developed first and subsequently this framework was refined with input from the individual pilotage authorities.

In conclusion, Transport Canada intends to provide each pilotage authority with tools and aids to assist them in fulfilling the recommendations in the Ministerial Review. These include, inter alia, the use of this document and training courses to facilitate the conduct of future risk-based assessments in support of decisions to be made by the Pilotage Authorities.

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