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Transportation in Canada 2005 |
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REPORT HIGHLIGHTS
TRANSPORTATION AND THE ECONOMY
- In 2005, the Canadian economy continued to fare well,
with gross domestic product (GDP) growing by 2.9 per cent
in real terms.
- Consumer expenditures, business investment and
government spending all contributed to this economic
growth.
- During the course of the year, energy prices, interest
rates and the value of the Canadian dollar all rose.
- The Canadian dollar rose by an average of 7.4 per cent
against the U.S. dollar, reflecting a decline of the value
of the U.S. dollar and an increase in commodity prices.
- The value of the Canadian dollar fell in the first part of
the year, then rose to a 13-year high of US$0.863 at the
end of the year.
- The consumer price index (CPI) increased by 2.2 per cent
in 2005. Energy prices and homeownership replacement
costs rose by 9.7 and 5.2 per cent, respectively.
Transportation prices rose 4.1. per cent as gasoline
prices increased by 12.8 per cent.
- In real terms, personal disposable income per capita
increased by 1.5 per cent in 2005.
- Canada's population grew by 0.9 per cent, while
employment increased by 1.4 per cent.
- All provinces and territories experienced economic
growth in 2005, with western Canada faring better than
central and eastern Canada.
- Canada's trade with the United States increased by
four per cent. China surpassed Japan and Mexico as a
source of imports into Canada.
- Trucking accounted for 60 per cent of trade with the
United States, rail 17 per cent, pipeline 11 per cent,
air six per cent and marine three per cent.
- Almost 76 per cent of Canada–U.S. trade (in value
terms) carried by trucks took place at six border
crossing points: Windsor/Ambassador Bridge, Fort Erie,
Sarnia, and Lansdowne in Ontario, Lacolle in Quebec,
and Pacific Highway in British Columbia.
- In 2005, Canada's trade with countries other than the
United States totalled $233 billion. Imports were more
significant than exports and, in terms of both value and
volume, marine and air transportation were the two
dominant modes for this trade.
- Of Canada's top 20 trade partners in 2005, five countries
had a two-digit average annual growth rate in their trade
with Canada from 1995 to 2005.
- In 2005, China ranked second ($29.4 billion) and fourth
($7.1 billion) respectively in terms of Canada's total
imports and exports.
- Tourism expenditures, including expenditures on
transportation, were up in 2005. Air transportation
expenditures rose 13.5 per cent. Both interprovincial
and intraprovincial domestic travel were up in 2005.
- Transportation energy use increased by 3.5 per cent
in 2004. While pipelines used 6.5 per cent less energy,
marine and air used 10.9 and 9.7 per cent more,
respectively, in 2004 than in 2003. Rail used 1.7 per cent
more energy, compared with 3.5 per cent more used by
road transportation.
- In 2005, increases in energy prices affected carriers'
operating costs and transport service prices.
- Productivity gains in rail and air transportation in 2004
were due largely to labour productivity improvements.
Average price increases for most transportation
services were below inflation.
- In 2005, commercial transportation services accounted
for 4.2 per cent of Canada's value-added GDP.
- In 2004, the importance of transportation to
provincial/territorial GDP was most significant in Ontario
and Quebec. Together, these provinces contributed
58 per cent of commercial transportation activity
nationally under GDP.
- Investment in transportation accounted for 2.8 per cent
of Canada's GDP in 2005.
- Overall transportation-related final demand accounted
for 12.5 per cent.
GOVERNMENT SPENDING ON TRANSPORTATION
- In fiscal year 2004/05, all levels of government
combined spent $21.9 billion on transportation
expenditures net of transfers, $1.5 billion more than in
2003/04. Federal, provincial and local government
expenditures all increased. The largest increase was
$1.1 billion, spent by provincial/territorial governments.
- In 2004/05, all government levels collected $15.6 billion
in permit and licence fees and fuel taxes from transport
users, 1.5 per cent more than the previous year.
- In 2005/06, direct federal transport expenses are
expected to fall to $2 billion, a drop of 3.4 per cent from
2004/05. The federal government's two main categories
of transportation expenditures are a) operations and
b) safety, security and policy activities.
- In 2005/06, total direct federal subsidies, grants and
contributions are expected to grow to $129.4 million,
46.2 per cent more than in 2004/05.
- Provincial, territorial and local governments spent
$18.9 billion on transportation in 2004/05, roughly
6.6 per cent more than in 2003/04. About 80 per cent of
this went to highways and roads.
- In 2004/05, governments spent $15.7 billion on roads
and $2.7 billion on public transit services. Federal and
provincial governments spent $2.4 billion on air, marine
and rail transportation.
TRANSPORTATION SAFETY AND SECURITY
- A recent public opinion survey indicated that in the case
of all four transportation modes, over 95 per cent of
Canadians give transportation in Canada either a
moderately or a very safe and secure rating.
- In 2005, Transport Canada maintained its regulatory
and safety oversight responsibilities, implemented a
number of improvement initiatives, and continued to
implement Safety Management Systems in the air, rail
and marine industries. In 2005, there was an increase
in the number of aviation and rail transportation
accidents and a decrease in marine accidents. There
were fewer road and marine transportation fatalities;
however, there was an increase in both aviation and rail
transportation fatalities.
- Rail-related accidents increased from 1,138 in 2004
to 1,249 in 2005. Rail-related fatalities increased
from 101 to 103. Fatalities due to trespasser
accidents decreased from 68 to 63. Crossing
accidents at public automated crossings increased
from 117 to 161, while at public passive crossings
they increased from 65 to 73.
- In 2004 (latest data), there was a 3.6 per cent decrease
in road casualty collisions, a 1.3 per cent decrease in
road-related fatalities and a 4.5 per cent decrease
in road-related injuries.
- There were 405 Canadian vessel accidents in 2005,
down from 441 in 2004. As in previous years, the
majority of marine accidents were shipping
accidents. A total of 12 lives were reported lost
in 2005, down from 21 reported the year before and
below the previous five-year average of 15.4. A total
of 22 confirmed vessel losses were reported.
Fishing vessels accounted for 55 per cent of the
total reported marine accidents, while commercial
vessels accounted for 34 per cent.
- There were 245 Canadian-registered aircraft involved
in reported accidents, compared with 241 in 2004.
Of these, 107 involved commercially operated
aircraft, while the remaining 138 were associated
with recreational aviation. Of the five commuter
operations accidents reported in 2005, one was fatal.
Of the 55 accidents related to air taxi operations,
seven were fatal accidents causing 10 fatalities.
- In a context of approximately 30 million shipments of
dangerous goods a year, a total of 412 accidents in
the transportation of dangerous goods were
reported in 2005, up from 370 in 2004. Also in 2005,
seven fatalities and 41 injuries resulted from
accidents involving dangerous goods. Of these,
six injuries and no fatalities were directly associated
to the dangerous goods themselves.
- Transportation security continued to be strengthened in
Canada in 2005. Transport Canada continued to take
action with other federal departments, other countries
and international organizations, labour organizations,
industry and other stakeholders.
- Important aviation security initiatives in 2005
included legislative and regulatory enhancements,
programs such as the Aviation Transportation
Security Clearance, and international initiatives.
- The development of a national marine security
regime was pursued through regulatory enhancements,
inspection and enforcement, the Marine Security
Contribution Program, and the work of the
Interdepartmental Marine Security Working Group.
- Following the March 2004 train bombings in Madrid,
Spain, a rail and transit intelligence sharing network
was developed for Canada. In 2005, an Action Plan
was announced to address security priorities and to
enhance security for passenger rail, public transit
and ferry operations.
- In 2005, Transport Canada continued to work
with others on the development of a National
Critical Infrastructure Protection (CIP) Strategy.
Transport Canada continued to enhance its ability to
prepare for and respond to emergencies and crises.
- Transport Canada continued to share information
and best practices, increasing its capabilities to
respond in the event of an incident in relation to the
Chemical, Biological, Radiological, and Nuclear (CBRN)
Response Project for the transportation of
dangerous goods.
TRANSPORTATION AND THE ENVIRONMENT
- In 2003, 25.7 per cent of greenhouse gas (GHG)
emissions in Canada came from the transportation
sector: 74 per cent from road transportation, four per
cent from domestic aviation, three per cent from rail and
three per cent from marine. Off-road and pipelines
accounted for the remaining 16 per cent of total
transportation-related GHG emissions.
- Between 1990 and 2003, GHG emissions from on-road
passenger travel increased by roughly 14 per cent; from
on-road freight transport activity, they increased by
60 per cent. The passenger and freight transport
activities over the same period increased by 23 and
120 per cent, respectively. This indicates that activity
levels and GHG emissions had not tracked each other.
- Over the same period:
- aviation GHG emissions grew by 17 per cent;
- rail emissions dropped by about 17 per cent, despite a 30 per cent traffic growth; and
- marine emissions decreased by four per cent.
- In 2005, on-road and off-road diesel engines accounted
for roughly 70 per cent of transportation-related
PM2.5 emissions and 54 per cent of transport-related
NOx emissions. Gasoline engines accounted for
87 per cent of transportation-related VOC emissions.
Marine transportation accounted for 41 per cent of
transportation-related SOx emissions due to its use of a
mix of diesel and heavy fuel oil. Since 1990, overall
emissions of all these pollutants have declined.
- The voluntary Memorandum of Understanding between
Environment Canada and the Railway Association
of Canada on rail emission controls expired on
December 31, 2005.
- The use of glycol, a fluid used to de-ice aircraft surfaces
for safety purposes prior to flight departures, was
reviewed in 2005.
- On April 5, 2005, the Government of Canada and the
Canadian automobile industry signed an agreement
whereby the carmakers will voluntarily work to reduce
annual GHG emissions from light vehicles by 5.3 Mt
in 2010.
- With respect to federal transportation-related initiatives:
- As of December 2005, the Advanced Technology
Vehicles Program assessed 126 vehicles for their
fuel efficiency, emissions and safety performance,
including the Mercedes-Benz Smart Car. In addition,
7.1 million Canadians have been reached through
145 special events undertaken to showcase and raise
public awareness of advanced technology vehicles.
- Approximately $1.85 million were allocated in 2005
to 14 new demonstration projects under the Freight
Sustainability Demonstration Program, one of the
three components of the Freight Efficiency and
Technology Initiative.
- An agreement was signed in June 2005 with the
Air Transport Association of Canada to voluntarily
improve energy efficiency and so reduce GHG
emissions by an average of 1.1 per cent a year.
- In 2005, $2.2 million were allocated under the Freight
Incentive Program to ten projects aimed at
purchasing and installing efficiency-enhancing
modal transportation technologies and equipment.
- Halifax, Waterloo, Toronto/Hamilton, Whitehorse
and Vancouver received some support for their
innovative community-based projects encouraging
more sustainable transportation under the Moving
on Sustainable Transportation program.
- In 2005, a total of 27 projects were ongoing under
the Moving on Sustainable Transportation Program.
RAIL TRANSPORTATION
- The rail system network remained relatively stable in
2005. The only track discontinuances (89 kilometres)
were in Saskatchewan and Alberta made by Canadian
Pacific Railway (CPR).
- Approximately 341 kilometres of track were transferred
in 2005, and an additional 339 kilometres was the
object of a reversion back to CN.
- Of total rail revenues in 2004, 90 per cent were
generated by CN, CPR and VIA Rail.
- Class I railways consumed 2.1 billion litres of fuel in
2004, slightly more than in 2003 but less than in 1990.
- CN reported a five per cent increase in revenue
tonne-kilometres in 2004, while CPR's output increased
by almost 8.7 per cent.
- In 2005, rail car loadings increased five per cent to
reach 284 million tonnes. In western Canada, volumes
moved by rail increased five per cent to reach
157 million tonnes. In eastern Canada, volumes moved
increased by four per cent to reach 128 million tonnes.
- Shipments of coal and coke increased to 35 million
tonnes in 2005, chemicals decreased four per cent to
15.3 million tonnes, iron ore increased to 32 million
tonnes, and forest products increased slightly to
50 million tonnes. Grain shipments totalled almost
27 million tonnes, still below the volumes reported in the
1990s, while rail shipments of fertilizer materials held
steady in 2005 at 30.1 million tonnes, and automotive
products fell almost six per cent to 4.9 million tonnes.
- Export rail tonnage decreased 0.3 per cent in 2005 to
76.4 million tonnes.
- Forest products and chemicals were the largest
contributors to the rail export tonnage.
- The largest share of rail export volume to the United
States originated in Ontario (23 per cent).
- In 2005, import rail tonnage increased by 15 per cent to
24.6 million tonnes. Imports of metals increased
significantly. Automotive imports increased by
3.4 per cent.
- Fort Frances and Sarnia, both in Ontario, accounted for
20.2 and 16.2 per cent of rail-exported trade,
respectively. Forest products and chemicals were the
major commodities exported at these border crossings.
In terms of value, the leading border crossing points for
imports were Sarnia and Windsor, with automotive
products topping the commodities exported through
these locations.
- Class I railways moved 97.6 million tonnes of goods to
and from Canadian ports in 2004, up significantly from
the 83 million in 2003.
- British Columbia, Saskatchewan and Alberta
experienced increases in rail–marine exports in 2004.
Coal, forest products, grain, and fertilizer exports all
increased. Rail–marine imports increased by 10.9 per cent
in 2004, and Quebec and Ontario remained the two
major destinations for this traffic.
- Intercity rail passenger traffic increased slightly in 2004.
VIA Rail reported 2.6 per cent more passengers carried.
- The productivity of rail freight carriers increased by
2.8 per cent in 2004, while VIA Rail's productivity
increased by 3.2 per cent.
ROAD TRANSPORTATION
- In September 2005, the Council of Ministers
Responsible for Transportation and Highway Safety
adopted a criteria-based National Highway System
(NHS) made up of three categories of route types:
Core, Feeder, and Northern and Remote. As a result of
this decision, the NHS totalled 38,021 kilometres.
- On June 29, 2005, the date that the revised Motor
Vehicle Transport Act (MVTA) would come into force
was fixed by an Order published in the Canada Gazette Part II at January 1, 2006. On that same day, the Motor
Carrier Safety Fitness Certificate Regulations also
come into force, allowing the provinces and territories to
monitor the safety performance of all extra-provincial
motor carriers licensed in their jurisdictions. Revisions
to the Federal Hours of Service Regulations for extra-
provincial commercial vehicles (bus and truck) drivers
were published in the Canada Gazette Part II on June
29, 2005 and will come into force on January 1, 2007.
- Heavy trucks crossing the Canada–U.S. border
decreased about one per cent in 2004.
- TransForce Income Fund topped the list of for-hire
trucking companies in Canada for total number of
vehicles (tractors/trailers) in their fleet.
- Trucking firms carrying general freight accounted for
almost 60 per cent of total revenues of large for-hire
trucking firms in 2004, while the share of specialized
trucking firms increased marginally.
- According to the 2004 Canadian Vehicle Survey, there
are 17.7 million (in scope) light vehicles (i.e. gross weight
less than 4,500 kilograms) in Canada. This includes
10.1 million passenger cars and station wagons,
2.8 million vehicles listed as vans, 3.4 million pickup
trucks and 1.7 million sport utility vehicles (SUVs).
- Vans, SUVs and light trucks accounted for 45 per cent
of vehicle-kilometres in 2004. They were driven on average
more than cars and station wagons (17,000 versus
15,300 kilometres) and had a marginally higher vehicle
occupancy ratio (1.75 persons) compared with 1.57 for
cars and station wagons.
- In 2004, for the category of light vehicles, cars and
station wagons accounted for 154 billion vehicle
kilometres while vans and light trucks accounted for
128 billion.
- In 2004, there was an average of 555 vehicles
per 1,000 people in Canada.
- According to the Canadian Vehicle Survey, there were
600,000 (in scope) heavy trucks (gross weight of at least
4,500 kilograms) in Canada, of which 325,000 were
medium-sized, weighing between 4,500 and 15,000
kilograms. Almost 277,000 were Class 8 (heavy) trucks,
weighing more than 15,000 kilograms.
- Ontario (37 per cent), Alberta (25 per cent) and Quebec
(13 per cent) accounted for 75 per cent of the heavy
truck fleet.
- Heavy trucks accounted for 20 billion vehicle-kilometres
in 2004, compared with seven billion for medium-sized
trucks.
- Empty haul movements accounted for 14 per cent of
heavy truck vehicle-kilometres in 2004, compared with
about six per cent for medium-sized trucks.
- More than two thirds of all truck vehicle-kilometres were
driven intraprovincially.
- In 2004 and 2005, the exports from Canada shipped by
trucks totalled $186.7 billion and $188.8 billion,
respectively. The imports from the U.S. shipped by
trucks amounted to $162.6 billion in 2004 and
$164.5 billion in 2005.
- In domestic activities, construction materials are the top
commodities moved by trucks intraprovincially, followed
by agricultural products, primary metals, metal and
mineral products, and energy products.
- The main interprovincial trucking flow was the
Quebec–Ontario route (both directions) accounting for
$41 billion worth of commodities or 30 per cent of the
total interprovincial trade.
- Five commodity groups represented almost 80 per cent
of total exports in 2004 and in 2005: automobiles and
transport equipment, machinery and electrical
equipment, other manufacturing products, plastics and
chemical products, and base metals/articles of base
metal. The same five commodity groups represented
almost 88 per cent of imports.
- The busiest transborder trucking routes were
Ontario–U.S. central region, Ontario–U.S. south region,
and Ontario–U.S. northeast region, the three together
accounted for almost 80 per cent of the shipments.
- Heavy truck activity across the Canada–U.S. border fell
about one per cent in 2005 to 13.3 million two-way trips.
- The revenues of urban transit operators increased by
6.2 per cent in 2004. Overall, total transit output in
Canada increased by 2.7 per cent, while prices rose by
3.4 per cent.
- In 2004, total factor productivity of transit systems
decreased by 0.9 per cent.
MARINE TRANSPORTATION
- The National Marine and Industrial Council — an
industry–government forum — was established in 2004
to enhance dialogue between the federal government
and the marine industry, to promote linkages and
coordination on marine sector initiatives, and to provide
cohesiveness across a core group of federal
departments with mandates and interests in marine
transportation. The Council has held bi-annual
meetings since its establishment.
- By 2005 year-end, 87 regional/local and remote ports and
port facilities remained under Transport Canada's control.
- Total operating revenues of Canada Port Authorities
(CPA), which are financially self-sufficient ports critical
to domestic and international trade, reached $310 million
in 2004, up 3.4 per cent from 2003. Vancouver and
Montreal accounted for roughly 55 per cent of this total.
- Tonnage handled at CPA ports totalled 237 million tonnes
of cargo in 2004.
- In 2004, CPAs handled 52 per cent of total port traffic.
- Of all fishing harbours, 682 were managed by harbour
authorities at the end of 2005, while 322 were small
craft harbours managed by the Department of Fisheries
and Oceans Canada.
- Three of the four pilotage authorities experienced a
deficit in 2005, a loss of less than $4 million, somewhat
less than the one reported in 2004.
- The Canadian Coast Guard's net expenditures in
2004/05 were $502.9 million.
- The two main sections of the St. Lawrence Seaway —
the Montreal–Lake Ontario section and the Welland
Canal section — attracted an estimated 43 million tonnes
of traffic in the 2004 season, basically the same volume
as in 2004.
- In 2005, international cruise ship traffic decreased at
Vancouver as well as at the four Eastern Canada ports
served by cruise ships: Montreal, Quebec City, Halifax
and Saint John.
- In 2004, marine freight traffic was estimated at
387 million tonnes, up 3.2 per cent from 2003. This total
is made up of 69.4 million tonnes related to domestic
flows, 128.6 million tonnes to transborder traffic and
189 million tonnes of other international traffic.
- A total of $117.5 billion in trade was handled by marine
transportation services, $63.4 billion in imports and
$54.1 billion in exports.
- The value of Canadian international marine trade in
2004 was $117.5 billion, including shipments via
U.S. ports, a 9.3 per cent increase over 2003.
AIR TRANSPORTATION
- Jetsgo ceased operations on March 11, 2005.
- On May 9, 2005, a new rent policy was announced for
federally owned airports, providing close to $8 billion of
rent relief for Canada's airport authorities over the
course of existing leases.
- On November 10, 2005, the Government of Canada
and the United States further liberalized the 1995
Canada–U.S. Air Transport Agreement, liberalizing
access for air carriers to the other country's third
country markets.
- Effective March 1, 2005, the Air Travellers Security
Charge, introduced to fund the costs of the enhanced
air travel security system put in place after the
September 11, 2001, terrorist attacks, was further reduced
to $5 for one-way domestic travel, $8.50 for transborder
travel and $17 for other international air travel.
- Under the Multiple Designation Policy, the Minister of
Transport in 2005 announced that Air Transat was to
serve Greece, and Skyservice would serve Russia.
- In 2005, new air bilateral agreements were negotiated
with the People's Republic of China, Greece and India.
- Negotiations with France and Panama were inconclusive.
- In 2005, a total of 64 projects at 48 airports were
announced under the Airports Capital Assistance Program.
- Several large airports experienced increases in
passenger volume handled in 2004, yet operating
revenue performance for airport authorities was mixed, as
one third experienced declined revenues, and one third
experienced increases of more than 10 per cent.
- Air Canada, with its subsidiaries, remained Canada's
largest airline in 2005, with $9.5 billion in revenues
between October 1, 2004, and September 30, 2005, and
serving 12 points in Canada, 33 in the United States
and 59 internationally. The Air Canada family of
companies includes Jazz operating on less busy
domestic and transborder routes, Air Canada Vacations
offering tour packages, and Jetz offering premium
charter services to sport teams and businesses. Three
independent local service operators offered regional
services on behalf of Air Canada: Air Georgian,
Exploits Valley Air Services and Central Mountain Air.
- Low-cost, no-frills carriers offering domestic and
transborder services in 2005 included WestJet,
and CanJet.
- Canadian leisure carriers providing international
services to leisure destinations in 2005 included
Air Transat, Skyservice Airlines, and Harmony Airways.
- Airlines providing year-round scheduled and charter
services across northern Canada included First Air,
Canadian North and Air North. Aklak Air, Kenn Borek Air
and North-Wright Airways complement the other airlines
by offering flights to the most remote communities
in the Arctic.
- Twenty-five U.S. airlines served 20 Canadian cities,
and 43 foreign airlines provided services from Canada
to 57 international destinations in 39 countries.
- A number of all-cargo airlines provided jet service in
2005 on behalf of Canada Post, courier companies,
freight forwarders, consolidators and shippers:
Cargojet Canada, Kelowna Flightcraft and
Morningstar Air Express.
- At the end of 2005, more than 2,300 airline licences
were active, an indication of the wide number of airlines
operating in Canada.
- The business segment of air activity continued to grow
in 2005, mainly as a result of fractional ownership.
- Canada's air trade with countries other than the
United States increased significantly in 2004.
- The number of tonnes carried by Canadian air carriers
increased by five per cent in 2004.
- Air passenger traffic in 2005 set record levels at over
63 million passengers, six per cent more than in 2004.
Domestic traffic grew by four per cent, while the transborder
and international sectors grew by seven per cent.
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