8 MARINE TRANSPORTATION
MAJOR EVENTS IN 2004
LEGISLATIVE AND REGULATORY CHANGES AND INITIATIVES
CANADA SHIPPING ACT AND REGULATORY REFORM
UNDER THE CANADA SHIPPING ACT, 2001
Although the Canada Shipping Act, 2001 (CSA 2001)
received Royal Assent on November 1, 2001, the Act
does not actually come into force until the regulations
needed in support of it are in place.
These regulations are being dealt with in two phases. In
Phase 1, more than 50 existing regulations are being
reformed and streamlined into 17. In Phase 2, the
remaining regulations are being modernized to be
consistent with the requirements of the new Act. The CSA
2001 will come into force once the regulations being
developed in Phase 1 have been completed; this is
expected by the end of 2006. Until then, the existing
Canada Shipping Act (CSA) and its related regulations
remain in full force and effect.
The CSA is the principal piece of legislation governing
personal safety and environmental protection in Canada's
marine sector. It applies to Canadian vessels operating
anywhere and to foreign vessels operating in Canadian
waters. By way of two Orders in Council, one in
December 2003 and one in March 2004, the Governor in
Council, on the recommendation of the Prime Minister,
transferred CSA legislative and regulatory responsibilities
relating to pleasure craft safety, marine navigation
services, pollution prevention and response, and
navigable waters, from Fisheries and Oceans Canada to
Transport Canada.
With these added responsibilities, Transport Canada
conducted cross-country public consultations throughout
2004 on the regulations being developed in Phase 1.
These consultations took place primarily at the spring and
fall regional and national meetings of the Canadian
Marine Advisory Council (CMAC). Several of the
individual projects have also conducted outreach
sessions with stakeholders at various strategic locations
across Canada. By the end of 2004, the Regulatory
Reform Project's formal consultation phase had, for the
most part, concluded. There will still be a few individual
projects consulting in the spring of 2005, but most have
now finished formal consultations and are moving into the
legal drafting phase.
The 17 streamlined regulations to come out of Phase 1
include Administrative Monetary Penalties, Ballast Water,
Boating Restrictions, Cargo, Collision, Competency of
Operators of Pleasure Craft, Environmental Response,
Fire Safety, Fishing Vessel Safety, Heritage Wreck, Load
Lines, Marine Personnel, Pleasure Craft, Prevention of
Pollution from Vessels, Small Commercial Vessels,
Vessel Clearance, and Vessel Registration and Tonnage.
For more information on the CSA 2001 Regulatory Reform
Project, visit www.tc.gc.ca/marinesafety/menu.htm.
MARINE LIABILITY ACT
Compulsory insurance for commercial
passenger vessels
On August 8, 2001, the Government of Canada
enacted the Marine Liability Act (MLA) under Chapter 6 of
the Statutes of Canada. The MLA consolidated various
maritime liability regimes, including those for passengers,
goods and pollution.
In early 2003, Transport Canada began consultations
on the development of a compulsory insurance regime for
vessels that carry passengers for commercial or public
purposes, as per Section 39, Part 4 of the MLA. Transport
Canada announced its position on the development of a
compulsory insurance regime in August 2003 and is now
developing appropriate regulations.
Ship Source Pollution Prevention — Transport Canada,
Environment Canada and the Department of Fisheries
and Oceans are co-operating to address a variety of
issues related to the prevention of ship source pollution,
including: accelerating the phase-out of single-hulled
tankers; eliminating sub-standard ships; introducing a
"green ship" program for Canada; seeking higher
penalties from courts for ship-source pollution; optimizing
surveillance and enforcement efforts; and improving
shore waste reception facilities. New regulations under
the CSA 2001 will expand existing provisions for sewage
and air pollution, update provisions for garbage, and
introduce new requirements for anti-fouling systems and
ballast water discharges.
SUPPLEMENTARY FUND PROTOCOL
In May 2003, the International Maritime Organization
(IMO) adopted a Protocol to the 1992 International
Convention on the Establishment of an International Fund
for Compensation for Oil Pollution Damage, 1992 (1992
Fund Convention). The Protocol establishes a voluntary
Supplementary Fund, which provides a third layer of
compensation for claimants of oil pollution damages in
states that ratify the Protocol. Claimants are now entitled
to compensation up to $1.5 billion per incident, almost
four times the current $400 million maximum. As Canada
is a party to the 1992 Fund Convention, it is considering
adoption of the new Protocol based on national
consultations in 2005 to be followed by a Cabinet decision
on ratification. Currently, Transport Canada is preparing a
discussion paper for these consultations.
NATIONAL MARINE CONFERENCE
Transport Canada, with the help of the St. Lawrence
Economic Development Council, the St. Lawrence
Shipoperators Association and the Chamber of Maritime
Commerce, hosted its second National Marine
Conference in November 2004 in Montreal. The theme of
the conference was "Shortsea Shipping: The Marine
Contribution to Intermodal Transportation."
Shortsea shipping refers to the movement of cargo and
passengers by water over relatively short distances and
without crossing any oceans. Essentially, it is coastal and
inland shipping, but it can include crossborder trade with
the United States and Mexico.
The conference investigated how the marine mode can
better coordinate with other modes in order to stimulate
shortsea shipping opportunities in Canada. A wide range
of public and private decision-makers, as well as
transportation industry stakeholders, exchanged views on
how to better use and integrate shortsea shipping. These
included issues related to modal integration, market
feasibility, regional and international perspectives, and
public policy considerations.
SECOND JOINT MINISTERIAL CONFERENCE
OF THE PARIS AND TOKYO MEMORANDA
OF UNDERSTANDING (MOU) ON PORT
STATE CONTROL
The international conference took place on
November 2-3, 2004, in Vancouver, British Columbia. The
event marked the second time that Canada brought
together member countries of the Paris and Tokyo MOUs,
and MOU observer states and organizations, to focus on
issues related to port state control. The first such
conference was held in March, 1998.
The purpose of the conference was the signature by the
Paris and Tokyo MOU members and observers of a
Ministerial Declaration that detailed new measures to
be implemented by administrations in their continuing
efforts to eliminate sub-standard ships worldwide.
The Declaration focussed on the development and
implementation of standards to promote a wider safety
and security culture throughout the entire maritime
industry; to protect the global maritime environment; and
to safeguard crews with respect to their living and working
conditions on board ships.
STAKEHOLDER ENGAGEMENT
Transport Canada undertook several studies and
initiatives in 2004 to evaluate a comprehensive range of
issues, factors and trends driving marine competitiveness
and market challenges, both on the domestic and
international fronts. One of the major goals of these
studies was to promote a more efficient and effective
marine transportation system in Canada by strengthening
partnerships with marine industry stakeholders through
maintained and enhanced continuous dialogue and
information sharing.
NATIONAL MARINE AND INDUSTRIAL COUNCIL
An industry–government forum, the National Marine
and Industrial Council, was established to promote
awareness of the benefits of the Canada marine industry
as an economic generator, and to provide a venue for
discussing marine policy issues with leaders from the
marine industry and deputy ministers of departments that
have direct influence on the marine transportation sector.
The Council is made up of industry executives and
federal government senior officials. The deputy ministers
of Transport Canada, Industry Canada, Fisheries and
Oceans Canada, and International Trade Canada
represent the federal government. Industry
representatives include cargo shippers, domestic and
international shipowners, port operators and marine
service providers from across the country. The inaugural
meeting was held in May 2004 in Ottawa. A subsequent
meeting was held in September 2004 in Montreal.
MARINE ATLANTIC ADVISORY COMMITTEE
In November 2004, an advisory committee was formed
to study a wide range of issues and to identify long-term
strategies for stabilizing Marine Atlantic's ferry service
operations. The Committee held consultations with both
stakeholders and representatives from Marine Atlantic in
January 2005 and is expected to provide a final report to
the Minister of Transport.
MARINE INDUSTRY BENEFITS STUDY
Transport Canada, in partnership with Canada's major
marine industry associations, completed an evaluation of
the economic impact of marine transportation in Canada.
The Marine Industry Benefits Study investigated the
sector's contribution by drawing on economic models that
show the direct, indirect and induced impacts of its
significant contribution to the Canadian economy.
CANADA MARINE ACT REVIEW
Transport Canada used the results of these studies and
initiatives — along with other endeavours undertaken in
collaboration with industry and government partners — to
help support the Government of Canada's assessment of
future amendments to the Canada Marine Act (CMA). The
CMA streamlined marine legislation governing services
provided by the federal government in the marine sector,
allowed the establishment of Canada Port Authorities and
the continued divestiture of certain harbour beds and port facilities, and facilitated the commercialization of the
St. Lawrence Seaway. It also contained provisions for
further commercializing federal ferry services and for
pilotage operations.
Major Events in 2004
Infrastructure
Marine Pilotage
Industry Structure
Passenger Transportation
Freight Transportation
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