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EXTRA Vol. 140, No. 11Canada Gazette Part I OTTAWA, THURSDAY, APRIL 20, 2006 Regulations Amending the Port Authorities Operations RegulationsStatutory authority Canada Marine Act Sponsoring department Department of Transport REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description The Regulations Amending the Port Authorities Operations Regulations are proposed pursuant to subsection 62(1) of the Canada Marine Act (CMA). The proposed Regulations would prohibit the Vancouver Port Authority and Fraser River Port Authority (the "Port Authorities") from allowing access to their respective ports to a truck or other road transportation equipment for the delivery, pick-up or movement of containers into or out of the port, unless the port authority has issued a written authorization, in the form of a license, to allow access and the holder of that license is in compliance with a minimum set of conditions. The Port Authorities already have significant power to set authorizations under the CMA, including for the purposes of licensing trucks and other road transportation equipment and to set conditions with respect to the licenses issued. The Regulations Amending the Port Authorities Operations Regulations are being proposed to create a legal obligation on the Port Authorities to establish a licensing system and to set minimum conditions in respect of the licenses issued. The proposed Regulations are also contemplated to reinforce the measures being implemented by the Port Authorities and to facilitate long-term stability in the operations of these ports. The minimum conditions to be specified in the license and which the license holder must comply with or ensure compliance with are in respect of — a reservation system to be established or adopted by the port authority; — the requirements of the port authority respecting the identification of trucks and other road transportation equipment and the tracking, monitoring, location and movement of these trucks and other road transportation equipment into, within and out of the port; and — any applicable law in respect of rates of remuneration that the owner-operator of a tractor covered by an authorization is to receive for the delivery, pick-up or movement of containers into or out of the port. In the summer of 2005, owner-operator truck drivers, who transport containers into and out of the ports of Vancouver and Fraser River, withdrew their services to protest an erosion of their earnings due to high fuel costs and inadequate compensation. Resulting actions by owner-operators included the blocking of access to terminal gates at the ports of Vancouver and Fraser River, thereby creating significant congestion at port terminals, affecting the operations of local and national shippers in the import and export of products and leading to a general and extraordinary disruption of the national transportation system. Orders in Council P.C. 2005-1356 and P.C. 2005-1365 were issued under section 47 of the Canada Transportation Act and enacted to stabilize the national transportation system and restore order at ports in the Lower Mainland of British Columbia while longstanding measures could be developed and put in place. In making these Orders in Council, the Government of Canada was cognizant of the importance of ensuring that the operations of the Port Authorities function unimpeded so as to maintain the reputation of Canada's West Coast ports as a reliable gateway to international trade. Subsequently, Orders in Council P.C. 2005-1892 and P.C. 2006-3 were issued in October 2005 and January 2006, respectively, to ensure continued stabilization of the national transportation system in response to an extraordinary disruption (occurring or imminent) other than a labour disruption. On October 26, 2005, the task force appointed by the Minister of Transport, in collaboration with the Minister of Labour and the Minister of Industry and jointly with the Province of British Columbia, to examine transportation and other industrial issues related to ports in the Lower Mainland of British Columbia (P.C. 2005-1366), released its final report. In undertaking its mandate, the task force conducted consultations with a number of affected parties, mostly within British Columbia, including truck owner-operators, brokers and trucking firms, ports and other stakeholders. The task force report contained a number of recommendations pertaining to potential actions by the provincial and federal governments and the Port Authorities. The Government of Canada has fully assessed the recommendations provided by the task force in determining the actions it would take as part of a long-term solution. The Orders in Council under section 47 of the Canada Transportation Act authorized the for-hire truck operators and owner-operators, shippers and brokers and the operators of the ports of Vancouver and Fraser River to enter into and adhere to the Memorandum of Agreement, dated July 29, 2005, in respect of rates, charges and terms and conditions as set out therein without the constraints imposed under the Competition Act that would have otherwise applied, and to adhere to any agreement in respect of a license granted by the Port Authorities. The Order also provided that the rates, charges and terms and conditions that were agreed to by the parties were mandatory conditions of the license authorizing the movement of containers into and out of the ports of Vancouver and Fraser River, as applicable. The Port Authorities were instructed by these Orders to ensure that an effective licensing program for accessing the properties of these ports for the purposes of the movement of containers is in place. It should be noted that, whereas the Orders in Council under section 47 of the Canada Transportation Act provided that the rates agreed to by the parties and set out in the Memorandum of Agreement were a mandatory condition of the license authorizing the movement of containers into and out of the ports of Vancouver and Fraser River, the proposed Regulations do not set out the requirement that the rates set out in the Memorandum of Agreement be adhered to in order to gain access to the ports. The intention of the proposed Regulations is to create a legal obligation on the Port Authorities to establish a licensing system and to set minimum conditions in respect of the licenses. The proposed Regulations are also contemplated to support the measures already being undertaken by the Port Authorities to implement licensing regimes that set out conditions of entry with the objective of improving operating efficiencies at the ports, reducing wait times and increasing the number of daily trips made by owner-operators. The Port Authorities have initiated the implementation or adoption of various measures designed to improve operating efficiencies and reduce port congestion without waiting for these proposed Regulations. The Vancouver Port Authority has announced changes to its truck licensing system that will require license holders to comply with specific conditions, including the conditions contemplated under the proposed Regulations, as part of the license agreement. These Regulations are consistent with and support these actions. The proposed Regulations would also require that the Port Authorities ensure, as a condition of the license, that the owner-operator truckers adhere to any applicable legislation in respect of rates of remuneration. The situation that occurred in the summer of 2005 regarding a disruption to the movement of containers into and out of ports in the Lower Mainland of British Columbia due to a dispute between owner-operator truck drivers and brokers/trucking firms is an area of shared federal-provincial responsibility. The proposed enactment of these Regulations by the federal government is being undertaken as an action consistent with the scope of federal jurisdiction in this matter. Alternatives There are no alternatives at this time. Orders in Council P.C. 2005-1356, P.C. 2005-1892 and P.C. 2006-3 under section 47 of the Canada Transportation Act have been issued in the past on the basis that an extraordinary disruption to the national transportation system was either occurring or imminent. There is no evidence to support that a further Order in Council would be required at this time. Benefits and costs The primary benefit of pursuing the proposed Regulations Amending the Port Authorities Operations Regulations is to reinforce the measures being implemented by the Vancouver Port Authority and Fraser River Port Authority and to facilitate long-term stability in the operations of these ports. It is not anticipated that there will be any costs to the Government of Canada as a result of the proposed Regulations Amending the Port Authorities Operations Regulations. Environmental impact There is no environmental impact. Consultation The Vancouver Port Authority, Fraser River Port Authority and Province of British Columbia were consulted regarding the proposed Regulations within the context of broader discussions aimed at putting in place a long-term strategy to ensure that future disruptions would not occur at the ports. The Vancouver Port Authority and Fraser River Port Authority were directly consulted regarding the proposed Regulations. Further, the task force appointed to examine transportation and other industrial issues related to ports in Vancouver conducted extensive consultations with stakeholders, including for-hire truck operators and owner-operators, shippers and brokers, the ports of Vancouver and Fraser River and industry associations. All stakeholders consulted have acknowledged that the overall stability and reliability of the national transportation system should be the principal focus in the short and long term. It is expected that the 30-day pre-publishing period in Part I of the Canada Gazette will elicit responses from owner-operator truck drivers, brokers and trucking firms, unions, industry associations, municipalities in the Lower Mainland of British Columbia, other Canada Port Authorities and other affected third parties. Compliance and enforcement Section 127 of the CMA provides that a person who contravenes a provision of the Act, other than section 107, or the regulations for which no penalty is otherwise provided under the CMA or under regulations made under paragraph 27(1)(a) is guilty of an offence and liable to a fine of not more than $5,000 in the case of an individual, and of not more than $50,000 in the case of a corporation. Contact Emile DiSanza, Director general, Marine Policy, ACF, Transport Canada, Place de Ville, Tower C, 25th Floor, Ottawa, Ontario K1A 0N5, weathen@tc.gc.ca (email). PROPOSED REGULATORY TEXT Notice is hereby given that the Governor in Council proposes, pursuant to subsection 62(1) (see footnote a) of the Canada Marine Act (see footnote b), to make the annexed Regulations Amending the Port Authorities Operations Regulations. Interested persons may make representations to the Minister of Transport, Infrastructure and Communities with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations shall be in writing and cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Neil Weatherdon, Policy Advisor, Ports Policy, Transport Canada, Place de Ville, Tower C, 330 Sparks Street, Ottawa, Ontario K1A 0N5 (Tel.: (613) 998-0693; fax: (613) 998-1845; e-mail: (weathen@tc.gc.ca). Persons making representations should identify any of those representations the disclosure of which should be refused under the Access Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act. Ottawa, April 19, 2006
DIANE LABELLE REGULATIONS AMENDING THE PORT AUTHORITIES OPERATIONS REGULATIONS AMENDMENT 1. The Port Authorities Operations Regulations (see footnote 1) is amended by adding the following after section 31: Movement of Containers into or out of the Vancouver Port and Fraser River Port 31.1 (1) The Vancouver Port Authority and the Fraser River Port Authority shall not permit access to their respective ports by a truck or other road transportation equipment for the delivery, pick-up or movement of containers into, within or out of the port unless they have issued a written authorization in the form of a license, in this regard and the holder of that authorization is in compliance with the minimum conditions referred to in subsection (2). (2) The written authorization referred to in subsection (1) shall specify as minimum conditions of the authorization that the holder comply with and ensure compliance with (a) an appointment or reservation system established or adopted by the port authority for the port; (b) the requirements established by the port authority respecting the identification of trucks and other road transportation equipment and the tracking, monitoring, location and movement of the trucks and other road transportation equipment into, within and out of the port; and (c) any applicable law in respect of rates of remuneration that the owner-operator of a tractor covered by an authorization is to receive for the delivery, pick-up or movement of containers into, within or out of the port. COMING INTO FORCE 2. These Regulations come into force on the day on which they are registered. S.C. 2001, c. 4, s. 143 S.C. 1998, c. 10 SOR/2000-55 |
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