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This section identifies activities that Transport Canada will undertake
over the next three years to addressing priorities toward meeting its three
strategic outcomes.
In an era of swift-moving global supply chains, transportation systems
must connect us with a rapidly changing world. Indeed, transportation is at
the heart of an efficient and competitive economy. Real or perceived
impediments to a reliable supply chain, such as congestion and border
delays, can negatively influence private sector investment decisions and
impact entire industry sectors. As a country whose reliance on international
trade is so critical to our economic growth, transportation networks that
serve as gateways and corridors to foreign markets are especially important
to our competitiveness.
The pressures facing our transportation system are both new and
long-standing, which necessitates Transport Canada's continued effort to
develop policies, legislative frameworks and programs, that are based on
central principles of competition and market forces. Transport Canada's
expertise in policy and program development related to transportation
infrastructure and its consideration of the public interest is recognized
throughout the federal government. A high-quality, modern transportation
infrastructure that allows goods and people to move seamlessly and
efficiently, is essential to support the competitive advantage that Canadian
industry strives for. In this respect, the department must be strategic in
developing appropriate policies and funding programs on its own and in
partnerships with public and private sector partners to achieve the maximum
benefit for the nation as a whole.
The Department:
- Supports federally-dependent facilities (ports, airports and
ferries) as well as rail and ferry services to remote communities,
including the constitutionally mandated Nova Scotia to Newfoundland and
Labrador ferry services operated by Marine Atlantic Inc.;
- Administers the annual operating and capital subsidies to VIA Rail
Canada;
- Supports and provides oversight to numerous federal bridges (Jacques
Cartier, Champlain, etc.);
- Provides an annual grant to British Columbia and operating
contributions to ferry operators for coastal, passenger and freight
services; and
- Manages the Airports Capital Assistance Program (ACAP) that provides
funds to airports in need of safety, asset protection and operating cost
reduction assistance.
Keeping with its mandate of promoting market-based policies and programs,
Transport Canada continues to implement its divestiture program for airports
and ports. To date, this program has been very successful with some 94% of
airports and 85% of ports being divested.
The Department must work in partnership with public and private
stakeholders across all modes of transportation, as well as international
governments and coordinating bodies. This is the case, for example, in:
- Negotiating bilateral air transport agreements or arrangements for
international air services and representing the Government of Canada as
a member of the International Civil Aviation Organization (ICAO);
- Co-leading the Canada-U.S. Transportation Border Working Group with
the U.S. Federal Highways Administration;
- Coordinating its involvement in:
- International activities (including with multilateral bodies
such as the Asia Pacific Economic Cooperation and the International
Transportation Forum),
- Key bilateral relationships (for example with the United States
and China) and
- Ministerial and senior management involvement in international
activities.
An extensive program of monitoring and analysis of Canada's
transportation system provides feedback regarding the effectiveness of the
Government's policies, as well as essential information to support future
actions. While every effort is made to achieve the department's stated
objectives, results are ultimately influenced by factors, such as global
economic conditions, international crisis or the actions of other
governments - that are beyond its control. Subject to the Canada
Transportation Act,the department develops an Annual Report on the
state of Canada's transportation system, and the indicators below are used
where possible to track its progress in promoting an efficient
transportation system.
Indicators of progress
- Increased productivity of the transportation system
- Price and service levels
- Financial viability of the different components of the system
- Reduction of cost to taxpayer
- Benefits to industry and consumers from improved harmonization
Efficiency: Challenges and Opportunities
The rise of trading blocs such as the North American Free Trade Agreement
(NAFTA) and the European Union (EU) has underpinned a new integrated global
marketplace. Coupled with powerful forces generated by the emergence of new
economic powers such as China and India; the drive toward global marketplace
integration is changing the pattern of business, the distribution of
economic activity and the volume of world trade. Intensifying competition
within this global marketplace among global supply chains, major cities and
major integrated regional trading blocs has increased the pressure to
achieve scale and efficiency in the infrastructure that support major trade
flows. Other countries are recognizing the high stakes involved. Australia,
the Netherlands, the U.S., China and Korea are among the key global trading
nations refocusing their efforts on developing the transportation systems
that support trade. Canada must respond decisively to this new global
dynamic. In short, a more competitive and connected world means Canada must
view its policy, planning and investment tools through new lenses.
In this context, the logistics of moving people and material - quickly,
reliably and securely - are crucial determinants of competitiveness. The
human and physical capital to support these movements is increasingly
concentrated in a few geographic zones - "gateways" - connected to major
markets by "corridors". Efficient intermodal transportation gateways and
corridors are essential to Canada's continued success in international
commerce and its future prosperity. An integrative policy approach that
recognizes the interplay of trade, safety, security and other transportation
issues is essential for Canada to remain competitive in this evolving global
environment.
The air industry has always had a strong international as well as
domestic dimension. Competitiveness and access to opportunities are as
important as addressing the domestic public good through the availability of
services on reasonable terms. The federal role with respect to this largely
privatized sector of transportation is to ensure the public good through
implementation of appropriate economic policy and legislative frameworks,
while facilitating service opportunities in a rapidly changing global
environment. Issues to be addressed in the near-term include: introduction
of a legislative framework for airports to complement the new rent policy
announced in May 2005, monitoring and research in support of international
air policy development, implementing a new international air policy (Blue
Sky) airport competitiveness, airport financial viability and continued
refinement of the existing legislative framework for the sector.
Rail transportation contributes to national competitiveness through its
role in the development of strategic North American gateways and trade
corridors. The department is increasingly focusing attention, with others in
the public and private sectors, in examining challenges associated with
transportation capacity to meet ever-increasing trade growth. Particular
areas of attention include the west coast - our
Asia-Pacific Gateway -where the boom in trade with China is
creating significant congestion, and in south western Ontario where work is
underway to address short and longer-term challenges concerning congestion
and capacity at the Windsor-Detroit gateway. Providing passenger rail
services, including to those in remote areas of the country, is also a
continuing area of interest for the department.
Trucking is the common mode for most forms of freight integration. Most
freight is moved by truck at some point, and a significant amount of freight
moves only by truck. Trucking shares the highways, urban streets and border
crossings with all other traffic where volumes are highest. Consequently,
trucking is a major beneficiary of policies and investments that support
strategic gateways, efficient trade corridors and the modal transfer points
that are essential to make them work.
The future of our economy depends on efficient trade corridors that allow
all modes of transport to capitalize on Canada's competitive advantage as a
gateway between North American and other global markets. Ensuring the secure
and efficient flow of people and goods at border crossings and along
corridors requires both infrastructure improvements and a coordinated
approach to implementing enhanced border and transportation processes.
As mentioned under the priority "New Security Policies and Programs",
Transport Canada is actively participating in the Security and Prosperity
Partnership (SPP) of North America. In the area of security, the department
is engaged in SPP work in the critical areas of surface, air and marine
security issues, emergency preparedness and response, and border security
and infrastructure (including bridge security). On the prosperity side,
Transport Canada is working to improve aviation safety, to ensure safer,
faster and more efficient border crossings through the use of new or
enhanced mechanisms to support border planning, information sharing, and
communications (working with such projectsas the Border Information Flow
Architecture), to facilitate business aviation activity,and to enhance
shortsea shipping through implementation of a Memorandum of Cooperation.
Work under the SPP thus provides the opportunity to achieve key departmental
objectives within the context of North American growth, competitiveness and
quality of life.
The government's innovation strategy is focused on fostering innovation
and developing the necessary skills for this innovation capacity to grow.
Research and development supporting transportation innovation will continue
to be central to maintaining a competitive and productive transportation
system that is safe, secure and environmentally responsible. A steady flow
of new ideas is required to advance technologies and science that support
intermodal integration, improved infrastructure design, congestion
management, supply chain logistics and environmental initiatives; and more
public-private partnerships must be fostered to realize these objectives.
There is also a need for the transportation sector as a whole to focus on
skills development to ensure we have the people and the capacity to continue
to operate and improve the system.
Efficiency: Program Priorities
To promote an efficient transportation system that contributes to
Canada's economic growth and trade objectives, Transport Canada will focus
its efforts on key activities and initiatives that support the three program
priorities of a Market-based Policy Framework; Infrastructure, Gateways and
Trade Corridors; and Innovation.
Ensuring the continued improvement of transportation services by
providing rules that allow transportation undertakings to adapt, innovate,
remain competitive and serve the public -has been the
successful focus of federal transportation policy over the years. Experience
has demonstrated that competition and free market forces stimulate
performance. When government interventions are needed, they should be
targeted to situations where market forces are insufficient to achieve
desirable outcomes. While much has been accomplished to provide a
competitive marketplace and to better focus government actions, there still
remains room for improvements.
The Canada Transportation Act(CTA) provides the basic rules that
govern the economic behaviour of railways and airlines. Two earlier
proposals to amend the CTA were introduced in the House of Commons on
February 25, 2003, and March 24, 2005. Former Bills C-26 and C-44 died on
the order paper. The intention of these Bills was to ensure that
transportation services and capacity remain responsive within a stable
policy framework and encourage a climate supportive of strategic private
investment. The government is committed to proceeding, on a priority basis,
with most of the proposed amendments to the CTA that were contained in
former Bill C-44. The government has developed a legislative strategy to
ensure the expeditious passage of these important amendments by separating
the package into three Bills. To this end, Bill C-3, the International
Bridges and Tunnels Act and Bill C-11 amendments pertaining to general
provisions, air transportation, passenger rail, mergers and railway noise
were introduced in the House in Spring 2006. A third Bill, dealing with rail
freight provisions, will be introduced early in 2007.
In May 2006, the Government of Canada announced that it had decided to
retain ownership of its fleet of hopper cars. Transport Canada is
negotiating new operating and refurbishment agreements with the railways to
ensure the cars will continue to remain available for the movement of
western grain for the long-term.
On November 4, 2004, the government requested the assistance of the
Standing Committee on Transport (SCOT) to conduct a review to determine if
Canada should further liberalize its approach to the economic regulation of
the air industry. On May 19, 2005, the SCOT delivered an interim report with
recommendations. The government tabled its response to the recommendations
in the SCOT interim report in August 2005. In November 2006, the government
announced a new international air policy (Blue Sky), which calls for a
liberalized approach to Canada's bilateral air transportation negotiations
where it is in Canada's overall interest.
Canada had more than 70 bilateral air transport agreements or
arrangements for international air services in place at the end of 2005.
Having successfully concluded negotiations in 2006 to liberalize several
important agreements (United Kingdom and Portugal), priority in the coming
year will be given to agreements with which Canada can secure additional
economic opportunities. The expansion of Canada's air agreements is intended
to secure new operating rights for Canadian carriers as well as to provide
Canadian travellers and shippers with better and more economic travel
options. The department continues work with its partners to identify and
remove impediments to ensure that Canadian industry and consumers can take
advantage of new flexibilities.
Canada's Permanent Representative to the Council of the International
Civil Aviation Organization (ICAO) is accountable for all aspects of
relations between Canada and the 189 member states and the ICAO Secretariat.
Key priorities for the coming year will be to continuously advance the
agendas for safety, security and the environment; and to assist in the
transition related to a new president of the council and a re-elected
secretary general. Coordination will remain a critical element of developing
Canadian positions.
A significantly revised Canada Airports Act was introduced in
the new Parliament as C-20 in June 2006. The objectives of the new act
include provisions to strengthen governance, transparency and accountability
at the major Canadian airports - especially those operated by Airport
Authorities. Work is also underway to better understand the competitiveness
of Canada's National Airport System airports.
The Pilotage Act, enacted in 1972, is in need of modernization
in order to improve the governance to the Pilotage Authorities and to give
them a clear framework to become and to remain self-sufficient. In 2007-08,
Transport Canada will review options regarding the governance of Pilotage
Authorities.
The Aviation War Risk Liability Program was introduced in the aftermath
of September 11, 2001, to provide an indemnity for third party aviation war
risk liability that is no longer commercially available to air transport
companies. The program has been extended several times, most recently to the
end of 2007. The objective of the program is to ensure the continued
operation, viability and competitiveness of the Canadian aviation industry.
Over the course of 2007, the department will continue to monitor the
aviation insurance market, and make adjustments to the program as
appropriate.
Transport Canada has engaged in considerable consultation with
stakeholders on Maritime Law Reform following the release of a discussion
paper in May 2005. Stakeholders have expressed support for proposals to
update the Marine Liability Act to reflect new and evolving
international conventions on liability and compensation for marine
pollution; and to update other aspects of Canadian maritime law to keep pace
with modern commercial practice. Work is underway to develop proposed
legislative amendments to give effect to these stakeholder supported
proposals.
Creating the conditions that encourage investments in transportation and
directly investing in transportation infrastructure that serves the national
interest, supporting Canada's economic competitiveness and enhancing the
quality of life in our communities are key departmental priorities.
Budget 2006 committed $591 million for the Asia-Pacific Gateway and
Corridor Initiative (APGCI) to further develop Canada's Asia-Pacific Gateway
and Corridor. The primary objective of this initiative is to strengthen
Canada's competitive position in global commerce through further development
and exploitation of a strategic transportation network facilitating global
supply chains between North America and Asia. Specifically, the initiative
seeks to: boost Canada's commerce with the Asia-Pacific region; increase the
Gateway's share of North America bound container imports from Asia; and
improve the efficiency and reliability of the Gateway for Canadian and North
American exports.
The Minister for the Pacific Gateway (the Honourable David Emerson) and
the Minister of Transport, Infrastructure and Communities (the Honourable
Lawrence Cannon) are leading this initiative and are supported in this
effort by Transport Canada.
On October 11, 2006, Prime Minister Stephen Harper launched the APGCI and
announced that $321 million (of the $591 million), will be allocated to
immediate measures, which include major transportation projects such as Pitt
River/Mary Hill Interchange project, a Transportation Management Centre for
Intelligent Transportation Systems and the twinning of the Trans Canada
Highway in Banff National Park, Roberts Bank Railway Corridor Overpasses and
Underpasses and South Fraser Perimeter Road - Deltaport Connector.
While transportation infrastructure is at the core of this initiative,
the APGCI goes further to address other interconnected issues that impact
how well the Gateway works and how well Canada can compete in the world. The
initiative's competitiveness component focuses on security and border
efficiency, innovation, governance, trade promotion and policy renewal. The
APGCI is being implemented in partnership with several federal departments
and agencies, namely: Foreign Affairs and International Trade, Western
Economic Diversification Canada, Canada Border Services Agency and Parks
Canada Agency.
In Budget2006, the government made a strong commitment to providing
stable and predictable funding to the provinces, territories and
municipalities to help them meet their infrastructure needs. Budget 2006
announced $6.6 billion for provincial and municipal infrastructure over the
next five years. A key objective will be to cost-share improvements to the
core National Highway System (NHS) - including rehabilitation, bridges,
connectors to border crossings and intermodal facilities. Transport Canada
and Infrastructure Canada are jointly developing the policy and program
parameters for these funds. As per the Economic and Fiscal Update of
November 2006, it is envisioned that the $6.6 billion will include a fair
and transparent provincial/territorial allocation envelope to fund
improvements to the core NHS; large and small-scale provincial/territorial
and municipal projects such as transit and water. National infrastructure
funds accessible on a merit basis would also be created for Public Private
Partnerships and gateways and border crossings.
The Budget also commits to maintain the estimated $3.9 billion in current
funding over the next four years under existing infrastructure agreements
and maintaining the gas tax funding agreement under the New Deal for Cities
and Communities. Over the next four years, federal support for
infrastructure will reach $16.5 billion.
Transport Canada also works closely with Infrastructure Canada on
highways, transit and border projects being considered for funding under the
Canada Strategic Infrastructure Fund (CSIF) and the Border Infrastructure
Fund (BIF). Transport Canada provides technical input, analysis and advice
on the selection of transportation projects and joins with Infrastructure
Canada to negotiate and seek Treasury Board approval of the contribution
agreements with Transport Canada implementing the projects. Transport Canada
will be providing federal oversight to ensure that the Canadian public
receives value for money.
In 2007-08, the department will continue to manage and ensure the
compliance of transportation infrastructure projects being constructed by
our partners under the current funding programs. Transport Canada will
continue to work with other federal departments and our provincial,
territorial, municipal and private sector partners to develop and deliver
these programs effectively and efficiently in order to meet federal
objectives of cost-efficiency and ensure an acceptable level of return in
the economic, social and environmental benefits in relation to the
investment that is required (benefit-cost analysis).
Examples include:
- Studies and other preliminary work (phase 1) on Highway 30 to
explore the potential for a public-private partnership to complete this
section of highway, spanning 42 kilometres southwest of Montreal, in
Quebec ($10.5 million federal);
- Improvements to GO Transit's rail network in the extended Greater
Toronto Area ($385 million federal);
- Expansion and rehabilitation of Toronto's transit system ($350
million federal) in Ontario;
- Completion of the twinning of Trans-Canada Highway 1 between Regina
and Winnipeg (over $50 million federal between Saskatchewan and
Manitoba),
- Twinning of Highway 63 to Fort McMurray in Alberta ($150 million
federal);
- Construction of the new Kicking Horse Canyon Bridge on Trans-Canada
Highway 1 in the British Columbia Rockies ($63 million federal);
- Construction of a new international bridge and truck route (Route 1)
between New Brunswick and Maine ($30 million federal);
- Construction of the Canada Line light rail transit system, linking
central Richmond, Vancouver International Airport and downtown Vancouver
in British Columbia ($450 million federal); and
- National corridors for Canada in the Northwest Territories ($65
million federal).
Transport Canada will continue discussions for a number of announced
transportation projects, such as:
- Let's Get Windsor Essex Moving Strategy ($150 million federal);
- Highway rehabilitation projects on Route 1 of the Trans-Canada
highway in Newfoundland ($24 million federal);
- Construction of a four-lane divided highway (Route 175) between
Quebec City and Saguenay ($262.5 million federal);
- Rehabilitation of the Dorval interchange ($55 million federal); and
- Rebuilding of highway 185 ($85 million federal).
The November 2006 Economic and Fiscal Update stated that a core challenge
regarding the funding of modern infrastructure is to ensure that federal
spending has maximum impact. Taking advantage of innovative financing
sources through public-private partnerships (P3s) is one way to achieve
this. To that effect, Transport Canada will work with other federal
departments to establish a federal P3 Office that will facilitate a broader
use of and promote best practices for P3s in Canadian infrastructure
projects. Transport Canada will also encourage the development and use of P3
by requiring that they be given consideration in larger transportation
infrastructure investments that receive federal funding.
Transport Canada is currently reviewing the governance and operation of
the international bridges within its portfolio to address the challenges
associated with their ability to be self-sufficient over the long-term.
Transport Canada will continue to develop key protocols and/or appropriate
internal mechanisms to foster sound governance and good financial management
practices by bridge operators and the federal Crown corporations that manage
bridges. In April 2006, Transport Canada introduced legislation that would
provide the federal government with the authority to approve the
construction of new international bridges and tunnels, alterations to
existing bridges and tunnels, the sale or transfer of existing bridges and
tunnels, international bridges and tunnels over the St. Lawrence River; and
to implement regulations to ensure the safety, security, and efficient
operation of these critical components of the international transportation
system. Bill C-3 received Royal Assent on February 1, 2007.
In 2007, Transport Canada will focus on the development of regulations
related to safety and security, guidelines for approving the construction of
new international bridges and tunnels and altering existing structures, as
well as sales and transfers of these structures. As a
result, our research indicates that Canada will be the first country to
adopt bridge and tunnel security regulations.
Stakeholders and the public will be consulted in the course of the
regulation-making process. The department is currently examining options
related to managing its portfolio of international bridges with a view to
developing a long-term strategy.
Improving international traffic flows at the Windsor-Detroit gatewayis a
key government priority. In addition to the Let's Get Windsor-Essex Moving
Strategy, which is funding improvements to existing infrastructure in the
Windsor area, the department continues to participate in the
Canada-U.S.-Ontario-Michigan Border Transportation Partnership with the
purpose of developing a long-term strategy to improve the movement of
people, goods and services across the Windsor-Detroit gateway. Through a
coordinated environmental assessment (EA) study process, the partnership is
identifying the location for a new international bridge crossing, inspection
plazas and connecting roads leading from Highway 401 in Canada to the
Interstate Highway System in Michigan. The partnership is also looking at
various governance structures of the crossing and possible models for
private sector involvement on both sides. The challenges of building such
new infrastructure are significant:
- It requires a partnership between governments in two different
countries.
- It entails the construction of a crossing with customs plazas and
access roads on both sides of the border.
- It requires that the interests of various stakeholders be balanced.
This study is expected to be complete by the end of 2007, at which time
the partnership will have concluded consultations and developed a
preliminary design for the new border crossing. The Minister of Transport,
Infrastructure and Communities announced in November 2006 that the
Government of Canada intends to explore the opportunity to partner with the
private sector to design, build, finance, operate and maintain the new
crossing that is expected to be in operation in 2013.
In terms of passenger travel, VIA Rail is responsible for the safe and
efficient provision of inter-city passenger rail services in Canada. VIA
receives an annual operating subsidy of $169 million and also relies on
Government funding for its capital needs. In 2007, Transport Canada will
continue to work with VIA Rail to develop a strategy for ensuring the
sustainability of its operations, as well as to articulate a long-term
vision and strategy for intercity passenger rail services in Canada.
Transport Canada is planning legislative and regulatory amendments that
would provide the marine sector and Canada Port Authorities (CPAs) with
enhanced financial and competitive flexibility so that they can better
respond to economic opportunities and realize their potential as economic
generators.
The Canada Marine Act (CMA) established the first single,
comprehensive piece of legislation to govern many aspects of Canada's marine
sector. Following a review of the Act and extensive consultations,
amendments to the CMA were introduced in Parliament in June 2005. The Bill
died, however, on the order paper in November 2005. The department has
continued its open dialogue with stakeholders and has developed a new
two-track strategy to stimulate investment in key infrastructure and
national trade. In the short-term (2007), Transport Canada proposes to
modify CPAs Letters Patent, followed by a complementing set of amendments to
the CMA by 2008. Amendments to the Port Authorities Management Regulations,
which would set out the mechanics for two or more CPAs to amalgamate and
continue as one integrated CPA, are also planned for 2007.
Amalgamation of CPAs is seen as a way for them to handle changing
economic conditions and concomitant impacts on the transportation system;
especially in the British Columbia Lower Mainland. The department and port
authorities of Vancouver, Fraser River and North Fraser will be
collaboratively exploring the amalgamation of these three CPAs in an open
and transparent manner while meeting the Government of Canada's due
diligence requirements.
Transport Canada is working with the U.S. Department of Transportation,
the U.S. Army Corps of Engineers and the Canadian St. Lawrence Seaway
Management Corporation on a comprehensive study of the future infrastructure
needs of the St. Lawrence Seaway, including the engineering, economic and
environmental implications of those needs. The principal focus of the study
is to assess the long-term maintenance and capital needs to sustain and
optimize the existing Seaway infrastructure. A study report is expected to
be released in the Spring of 2007.
Ridley Terminals Inc. (RTI) is a parent Crown corporation, which operates
a bulk terminal on lands leased from the Prince Rupert Port Authority. This
terminal was created to provide a direct route for the shipment of northeast
British Columbia coal to Asian markets. RTI has experienced financial
difficulties relating largely to the fortunes of northeast British Columbia
coalmines and low volume of throughput at the terminal. In 2004, 2005 and
2006, the department provided financial support to RTI through contribution
agreements. RTI would have become insolvent and forced to discontinue
operations without continued Transport Canada funding. The operating and
capital contributions from Transport Canada have resulted in RTI remaining
operational and preserved as a going concern, giving access to the natural
resource suppliers located in Northeast BC to a cost-effective and reliable
bulk marine terminal service to ship their products. In addition, the
contributions have resulted in allowing RTI management the ability to pursue
opportunities for increased and diversified operations in an effort to
protect and safeguard the Crown's investment and allowing the Corporation to
continue its service to existing customers and effectively market the
terminal to new customers.
Based on increased demand in world coal markets and new developments in
the Canadian coal industry,Transport Canada expects that RTI will reach its
break-even throughput level and will likely become self-sufficient and have
financially viable operations in 2007, thus eliminating the requirement for
any future contributions.
Marine Atlantic Inc. (MAI) is a parent Crown corporation that fulfills
Canada's constitutional obligation to Newfoundland and Labrador (NL) to
provide year-round ferry service between North Sydney, Nova Scotia and Port
aux Basques, NL. MAI relies on Government funding for its capital and
operating needs. In the coming year, Transport Canada will continue to work
closely with MAI to develop a long-term strategy to address the
corporation's financial requirements. The strategy will consider important
elements for MAI's revitalization that include a renewed rate structure,
governance and future capital and fleet requirements.
Innovation is key to Transport Canada's objectives and, in particular, to
reconciling the three strategic outcomes (safety and security, efficiency,
and environmental responsibility) of the department's vision of a
sustainable transportation system. Innovation and skills development can
make the transportation sector stronger, more resilient, adaptable and
responsive to changing demands and pressures.
Transport Canada has launched an initiative aimed at measuring the full
costsof all transportation activities. Full costs include both economic
costs as well as social costs. This initiative will help to develop an
additional analytical tool to better guide decisions related to sustainable
transportation.
Transport Canada continues to improve the department's ability to
understand and respond to current and emerging challenges. Research and
development (R&D) positions the department to optimize the safety, security,
efficiency and environmental responsibility of Canada's transportation
system. A new lens for R&D activity includes the design, building and
maintenance of a smarter transportation system. This new focus will work to
inform and protect the Government's infrastructure investments over the long
term. R&D undertaken to support our safety and security mandate will be
complemented by and/or integrated into other research work to improve
transportation in gateways and corridors and the North, and to increase
accessibility as well as energy efficiency.
Collaborative work with R&D experts in industry, academia and government
will continue to be an important component of Transport Canada's R&D agenda
as the department seeks to encourage the development, demonstration and
commercialization of innovative technological solutions to Canada's
transportation challenges.
Transport Canada will continue to accelerate research, development,
deployment and integration of Intelligent Transportation Systems (ITS) in
support of national objectives (e.g., the Innovation Agenda, Asia Pacific
Gateway and Corridor Initiative, Let's Get Windsor-Essex Moving Strategy),
as well as departmental priorities such as safety, security and efficiency
of the transportation system. Priority activities include a review of the
current Intelligent Transportation Systems Plan for Canada, En route to
Intelligent Mobility. This will set the stage for future investments in
ITS, including increased integration of intelligent transportation systems
to generate greater efficiencies in the transportation network and an update
of the ITS Architecture for Canada, ensuring the Architecture is modernized
and strengthened to guide future investments. Work will continue on other
elements of the existing plan, including the completion of several R&D and
deployment projects.
A highly skilled workforce is necessary to optimize the performance of
Canada's transportation system and to ensure its continued competitiveness.
In 2007, Transport Canada will continue to work with
federal-provincial-territorial colleagues and other stakeholders to identify
ways to promote transportation-related skills development in both the
industry sector and in academia. Wherever possible, activities will be
aligned with the department's overall approach to innovation and policy
development, articulating a coordinated response to the skills development
challenges inherent in departmental initiatives such as the Asia-Pacific
Gateway and Corridor Initiative.
Transport Canada promotes the safety and security of Canada's
transportation system consisting of the air, marine, rail, and road modes of
transportation. A safe and secure system protects people from acts of
terrorism, accidents and exposure to dangerous goods, enables the efficient
flow of people and goods and protects the environment from pollution. It is
an essential element for a healthy population, a high quality of life and a
prosperous economy.
Policy development, rule-making, monitoring and enforcement and outreach
activities support the safety and security objective. Through its policy
development and rulemaking efforts for all the modes of transportation, the
department establishes and implements legislation, regulations, standards
and policies.
Monitoring and enforcement activities include issuing licences,
certificates, registrations and permits, monitoring compliance through
audits, inspections and surveillance, and taking appropriate enforcement
action in instances of non-compliance. In particular, the department's
inspectors monitor the system to make sure the rules are being followed,
and, if required, enforce the policies and rules.
Through its Intelligence and Assessments programs, the department works
in cooperation with Canadian intelligence gathering bodies to collect and
analyze information about current security threats. These reports and
assessments are shared with the various transportation-related industry
stakeholders and various air, marine, rail and urban transit operators and
authorities; as well as other government partners, as appropriate. The
department also develops and delivers security programs such as the Air
Cargo Security Pilot Program, the Passenger Protect Program, and the
Transportation Security Clearance Program.
Outreach activities involve efforts to promote, educate and increase
awareness of security issues and make users and industry aware of security
requirements. Transport Canada is the designated national civil aviation
security authority under the annex 17 of the Convention on International
Civil Aviation
(also known as Chicago Convention) and represents Canada in the
development of International Civil Aviation Organization (ICAO) standards.
The department also represents the Government of Canada abroad in
international transportation security matters, seeking to ensure
international cooperation by coordinating, liaising and supporting the
Government of Canada's foreign policyobjectives of promoting prosperity and
employment both at home and abroad, the protection of Canada's security and
the projection of Canadian values and culture.
Transport Canada is responsible for the security of the Canadian
transportation system and plays a lead role in the security of the
travelling public. The department dischargesthat responsibility through
activities such as establishing security rules and standards for
transportation facilities; screening air travellers and their baggage,
responding to security incidents and threats, restricting access to certain
parts of airports to authorized personnel only, training and qualifying
security screeners and securing aircargo and mail. Transport Canada also
regulates the Canadian Air Transport Security Authority (CATSA), a Crown
corporation responsible for the screening of passengers and their belongings
and certain other specific initiatives to improve air passenger and airport
security.
Transport Canada also establishes safety standards for rail
transportation, the manufacturing of motor vehicles and aircraft, the
navigation of commercial vessels through Canadian waters and the
transportation of dangerous goods. In addition, Transport Canada maintains a
small fleet of aircrafts for the non-military use of the Government of
Canada.
Transport Canada works in partnership with other governments, industry,
stakeholders and international organizations to develop the laws and rules
that promote the safety and security of the transportation system. The
department contributes to enhancing Canada's influence and reputation on the
international stage by leading and participating in activities at
international levels through organizations like the International Civil
Aviation Organization and the International Maritime Organization.
The Federal Railroad Administration, U.S. Department of Transportation,
and various chemical, railroad and tank car companies are developing a
Memorandum of Cooperation to increase all aspects of safety and security in
the transportation of certain dangerous goods by rail. Transport Canada, to
promote public safety in the transportation of dangerous goods (TDG), will
be entering into discussions with the participants in view of joining this
group to develop the next generation of railway tank cars.
Under the Security and Prosperity Partnership of North America (SPP)
initiative, Transport Canada has offered full acceptance of all containers
for dangerous goods built to U.S. specifications when they are equivalent to
a Canadian specification if reciprocally is granted. With a few exceptions
for some gas cylinders, Transport Canada currently permits unrestricted use
of containers for dangerous goods built to U.S. specifications and
registered with U.S. DOT, although U.S. DOT does not grant this
reciprocally. Mutual recognition of standards and certification processes
for the transportation of dangerous goods would reduce costs for
manufacturers and for cargo that relies on containers for dangerous goods.
Transport Canada works to ensure the safety of people in the movement of
dangerous goods. The Canadian Transport Emergency Centre (CANUTEC) is the
department's 24-hour response centre that assists fire departments and other
emergency responders in handling dangerous goods emergencies. CANUTEC is
currently involved in the production of the Emergency Response Guide 2008,
an international emergency response guide published jointly by Canada, the
United States and Mexico for distribution to the first responder community.
The Emergency Response Guide 2008 is expected to be printed in Fall 2007 and
distributed in January 2008. Previous versions have appeared in 18
languages.
An Audit concerning Transport Dangerous Goods Inspection practices was
conducted and a report containing various recommendations was released.
Documentation of follow-up and enforcement action will be examined in
2007-08 within the context of the Inspector Manual redevelopment, the
re-design of the Inspection Information System and the development of a
Quality Management System for inspection activities. The Inspector Manual
reflects Transport Canada's policies, procedures and guidelines for the
Inspector community.
Transport Canada TDG inspectors have various enforcement tools they use
to ensure compliance. An important factor in determining enforcement
response is the effectiveness of the response in securing future compliance.
Currently, an available enforcement tool, prosecution in court, is seen as
too severe for minor infractions. The provisions of the Contraventions
Act will allow Transport Canada TDG inspectors to implement an adequate
and fair ticketing scheme. It also allows offenders the opportunity of
avoiding a court appearance when cases are not contested. Finally, this
procedure reduces costs for the government, the courts and Canadians. It is
expected to be implemented during 2007-08.
Transport Canada puts into place regulatory, educational and promotional
programs that reduce the probability of an incident occurring and mitigates
the consequences if one does occur.
In partnership with the Department of National Defence (DND) and the
National Search and Rescue Secretariat (NSS), Transport Canada also supports
and facilitates search and rescue activities by providing regulations for
the carriage of emergency equipment to protect the survivors of accidents
and alerting devices to find them. Transport Canada receives funding from
the Search and Rescue New Initiatives Fund administered by the NSS to manage
programs that contribute to search and rescue in Canada. In addition,
Transport Canada annually contributes to support the Civil Air Search and
Rescue Association (CASARA) and the Canadian Beacon Registry Database.
In the event of investigations after an accident, Transport Canada
provides the required assistance to the Canadian Transportation Accident
Investigation and Safety Board of Canada. These investigations help the
department to better identify the causes of the accidents, further improve
the rules and policies and increase protection of the public as required.
A safe and secure transportation system contributes to the quality of
life for all Canadians and supports safe and secure communities, as outlined
in
Canada's Performance 2006.
Indicators of progress
- High level of public confidence in transportation safety and
security
- Reduction in accident/incident rates relative to the increase in
traffic
- Reduction in fatality rates relative to the accident/incident
rates
- Progress in effectively implementing safety management systems
and security management systems
Safety and Security: Challenges and Opportunities
Canada has one of the safest and most secure transportation systems in
the world. However, the continuing growth of new markets and the changing
dynamics of global trade represent immense challenges for the transportation
system. Bottlenecks are developing at key ports and there are concerns about
the ability of our rail and marine systems to meet current demands and
future growth. New technologies will affect the way planes, trains, vehicles
and vessels operate as well as their level of safety and security. These
changes are putting new pressures on the transportation system and
introducing new risks. Transport Canada continues to be challenged to ensure
that, while traffic in all modes is increasing, the levels of safety and
security are also continuously improving and that the department's policies
and rules adapt to these changes. Transport Canada will continue to work
closely with industry and other stakeholders to develop innovative
approaches to research, rule-making, outreach, monitoring and enforcement.
A fundamental role of the federal government is to help ensure the safety
and security of the nation's citizens, which is addressed in Securing an
Open Society: Canada's National Security - a long-term strategic
framework that provides a blueprint for action on national security issues,
including actions in the transportation sector. The policy recognizes that
everyone has a role to play in public safety and security. The policy also
recognizes the essential nature of collaboration, including the mechanisms
to ensure collaboration. Transportation security is addressed under the
National Security Policy
and is an essential component of a successful transportation system. Many of
the major terrorist attacks of the last 30 years have been linked to
transportation. Within this context, the Government of Canada has taken
major steps to enhance the security of the aviation and marine
transportation systems.
Every year, Canada Port Authorities generate more than $20 billion worth
of economic activity. They are responsible - directly or indirectly - for
more than a quarter of a million jobs and they handle $100 billion worth of
goods annually. Marine security has been a particular focus of attention.
Global movements of vessels, their cargo and their passengers, as well as
potential threats to marine infrastructure, have resulted in major
international security initiatives and associated securityenhancement
projects at Canadian ports and marine facilities.
The tragic events in Madrid and London in 2004 demonstrate that rail and
urban transit systems are not immune from terrorist attacks. The Government
of Canada is committed to protecting citizens and their communities.
Transport Canada has focused on establishing partnerships and building a
common understanding within the rail and urban transit community of
requirements as well as current and future priorities since 2004. As a
result of these discussions, Transport Canada is currently implementing a
two-year contribution program to address immediate high-risk security
priorities in Canada's major urban transit systems. At the same time, work
is ongoing with partners to identify future policy priorities.
The transportation sector is intricately linked across modes and
regulated by multiple levels of government. Transport Canada has taken on an
increasingly complex leadership role over recent years to support integrated
and coordinated security regimes. Transportation safety and security is an
essential requirement for a healthy population, a high quality of life and a
prosperous economy. The department's challenge is to find innovative and
cost-effective ways to identify and mitigate safety and security risks in
the transportation system without harming the environment or hindering
economic growth.
Safety and Security: Program Priorities
To promote a safe and secure transportation system that contributes to
Canada's social development and security objectives, Transport Canada will
continue to focus on the three program priorities of New Security Policies
and Programs, Smart Regulation and Safety and Security Management Systems.
In 2007-08, Transport Canada will continue working with other government
departments and key interested parties on ongoing initiatives, such as
continuing to implement aspects of Securing an Open Society: Canada's
National Security Policy, including a comprehensive Transportation
Security Action Plan.
The Transportation Security Action Plan identifies transportation
security priorities across all modes of transportation, which include formal
threat and risk assessments that will be integrated with departmental
policies, regulations and enforcement activities. This broad, multi-modal
strategy is being implemented to guide long range planning and priority
setting. This initiative will take stock of our progress in improving the
security of transportation in Canada, look ahead to future challenges and
set priorities for investing our security resources throughout the entire
transportation system.
As an efficient transportation system is closely intertwined with its
safety, Transport Canada continues to support programs instrumental in
improving aviation safety worldwide. Specifically, our continued
participation in the International Civil Aviation Organization Cooperative
Development of Operational Safety and Continuing Airworthiness Program will
enable designated areas of the world to improve their air transport safety
oversight capabilities. This program will provide financial and in-kind
assistance to developing states. Through the provision of international
technical cooperation, Transport Canada continues to advance its policy
objectives as well as open opportunities for Canada's aviation industry in
international markets.
Transport Canada will continue to implement transportation-related
aspects of the Canada-U.S. bilateral Smart Border Declaration and its
companion 30-point action plan. This includes participating on the working
group for the protection of critical infrastructure such as airports, ports,
bridges and tunnels. This working group serves as a forum for identifying
critical infrastructure of shared interest that crosses the border and for
sharing of information.
Building on the success of the Smart Border Declaration, Transport Canada
will develop and implement new transportation security policies and programs
under the Security and Prosperity Partnership (SPP), a trilateral initiative
among Canada, the U.S. and Mexico. The SPP is designed to further enhance
the security of North America and to promote the quality of life of
citizens. Transport Canada, in close collaboration with other government
departments, provinces and territories, Canadian stakeholders and the U.S.
and Mexico, will play a key role in developing and implementing North
American transportation security strategies addressing issues such as
aviation security, marine security, emergency preparedness and critical
infrastructure protection.
Transport Canada will also continue to coordinate the international
transportation security initiatives and programs to establish a common
approach to security initiatives, including the coordination of
Counter-Terrorism Capacity Building (CTCB) initiatives and the Group of
Experts on Aviation Safety, Security and Assistance (GEASA), among others.
Transport Canada will also continue to enhance Canada's influence and
reputation on the international stage by working with organizations such as
the International Civil Aviation Organization (ICAO), the European Civil
Aviation Conference, the International Maritime Organization (IMO), the
North Atlantic Treaty Organization (NATO) and other governments (e.g. the
United States' Department of Homeland Security). An example of Transport
Canada's significant international security achievements is the
collaborative effort being made under the Security and Prosperity
Partnership (SPP) of North America.
Transport Canada will also continue to focus on advancing security
technologies within the Canadian transportation system. To support the
harmonization of security standards, Transport Canada will continue to
collaborate with technical experts within Canada and internationally, to
identify gaps in security technology and to harmonize technical direction.
Transport Canada will support the Commission of Inquiry into the
Investigation of the Bombing of Air India Flight 182. In May 2006, the
government set up a Commission of Inquiry into the Investigation of the
Bombing of Air India Flight 182 for the specific purpose of evaluating any
deficiencies in the investigation and response to the incident and to make
recommendations to improve the Government of Canada's response to an act of
terrorism and issues of national security. In preparation for the hearings
and to meet the Commission's requests for information, Transport Canada and
other affected departments and agencies are identifying and reviewing
relevant documents and information in the context of national security. The
complexities and sensitivities of the subject matter require extensive legal
and interdepartmental consultation.
Transport Canada will continue to develop an integrated, multi-modal
transportation security regime to support the Vancouver-Whistler 2010
Olympic Games. This work will include developing a transportation concept of
operations to ensure that the aviation, marine, rail and urban transit
systems in the Games area of interest operate in a safe, secure and
efficient manner for the Games period. Transport Canada's planning for this
significant world event is being coordinated at both the headquarters and
regional levels.
To further advance air security, Transport Canada will continue working
with other government departments and key interested parties to expand the
Canadian air passenger assessment program. This Passenger Protect Program
provides an additional layer of aviation security by preventing individuals
who pose an immediate threat to air security from boarding aircrafts. As
well, the department will continue to implement a comprehensive program for
enhancing air cargo and airmail security.
Emergency Preparedness and counterterrorism capabilities continue to be a
focal point for the department in 2007-08. The department will lead, or
collaborate on, a number of high profile training exercises to assess
Canada's ability to act quickly, decisively and effectively in concert with
other partners in the event of a terrorist attack, a security-related threat
such as radiological contamination or other emergencies.
Transport Canada will also continue to collaborate with its stakeholders
to implement the Transportation Security Clearance Program. The objective of
this program is to prevent the uncontrolled entry into a restricted area of
a listed port or airport. The Seafarer's Identity Documents issued by
Transport Canada will be modernized to include a transportation security
clearance. This will strengthen marine security and will reduce the risk of
security threats to the transportation system.
Internationally, Transport Canada will enhance transportation security
and implement new security policies and programs to establish a common
approach to security. Efforts include initiatives to: improve aviation
security (including air cargo); establish comparable standards for screening
(e.g. of passengers and their luggage) and background checks; and improve
container security.
Transport Canada has developed a two-year contribution program targeted
towards the high volume passenger areas of commuter rail and urban transit,
with a focus on major urban transit systems and equipment. This program will
provide financial assistance to commuter rail and public transit operators
in designated major metropolitan areas to accelerate the implementation of
new and enhanced security measures. Over the coming year, Transport Canada
will work with partners on a Rail and Urban Transit Security Review,
established to engage other federal departments and agencies, provincial and
territorial governments, industry and key stakeholders in a review of rail
security issues, and to develop options for a more robust, risk-based
security regime in Canada. The review was expanded to consider high volume
urban transit security and its results of the review will be incorporated
into the Transportation Security Action Plan.
Marine security continues to be a high priority for Canada as a secure
marine transportation system supports vital trade corridors that connect
Canada to the world. Since 2001, the Government of Canada has invested
almost $930 million in marine security initiatives involving several
different departments and agencies. As part of this investment, the
InterdepartmentalMarine Security Working Group (IMSWG) was formed under the
leadership of Transport Canada to coordinate Government of Canada marine
security efforts.
Over the next three years, the IMSWG will continue to facilitate and
expand cooperation and coordination among its 17 member departments and
agencies to enhance information exchange and to improve interoperability
among members. It will also continue to identify federal government actions
in support of national and international marine security obligations,
enhance effectiveness in delivering marine security initiatives and
facilitate communication with other levels of government, the private
sector, and regional-based committees with interests in, or responsibilities
for, marine security. Through its facilitation efforts, the IMSWG seeks to
ensure that Canada's marine security initiatives are effective and
efficient; leveraging the resources and expertise of numerous departments
and agencies, without duplication of effort, towards one common goal: the
security of the marine transportation system. To support this goal, the
IMSWG will develop in 2007-08 a Horizontal Performance Framework for Marine
Security with associated performance measures.
The security at Canada's ports and marine facilities will be enhanced
under the Marine Security Contribution Program that began in 2004-05 as a
three-year, $115-million commitment to assist ports and other marine
facilities with security enhancements. In June 2006, the Government
announced that the program would be expanded to include domestic ferry
operators and would also be extended by two years for all facilities, other
than Canada Port Authorities. In 2007-08, the program will continue to fund
projects to strengthen security at Canada's ports and marine facilities.
The Department's contribution program for marine simulators ($7.2 million
federal) will assist the provinces to modernize marine training simulators.
The program directly supports and advances the departmental mandate and
strategic objective by financially contributing to the provision of
state-of-the-art marine simulator training equipment that will in turn
ensure the level of regulatory training and certification of seafarers, thus
contributing to the safety of the marine transportation system in Canadian
and international waters.
Effective marine security relies upon a compilation of sensor data and
information gathered from Departmental and open sources to create a marine
centric picture. The function of the Marine Security Operations Centres
(MSOC) is to enable departments and agencies to work collaboratively to
collect and analyze information in an effort to develop a solid awareness in
their area of responsibility with regard to transportation security in
general but marine security specifically. By bringing together civilian and
military interagency staff, the MSOC will provide a much clearer marine
picture of the identification, intent and movement of vessels, personnel and
cargo destined for, or already in, the maritime approaches to Canada.
Achieving an integrated environment where consistent and timely information
on vessels of interest to the Government of Canada can be quickly and
efficiently compiled in the MSOC, will be in place to inform the appropriate
decision makers. At present the core Departments, Canada Border Services
Agency, Canadian Coast Guard, Royal Canadian Mounted Police, Transport
Canada and the Department of National Defence are working collectively to
implement a concept of operations in order to develop an integrated marine
picture.
Transport Canada will work closely with stakeholders to implement the
Marine Transportation Security Clearance Program (MTSCP). The Marine
Transportation Security Regulations were amended on November 30, 2006, to
establish a risk-based program to ensure the security of persons at ports as
well as the prevention of unlawful acts of interference with marine
transportation, by ensuring that persons who have an ability to affect the
security of the marine transportation obtain a security clearance. Over the
coming year, operational guidelines and systems will be put in place to
implement the MTSCP at major ports as per Phase I of the above regulations.
A new Administrative and Monetary Penalties regime will also come into force
in December 2007 to expand the tools required to provide an effective
oversight and enforcement regime.
In 2007, TC proposes to initiate the regulatory process to develop
amendments to the Marine Transportation Security Regulations (MTSR) for both
Ships' Security Officers certification, and domestic ferry services.
Development will begin on the following important initiatives, as identified
by the International Maritime Organization (IMO) as coming to the fore of
international marine security. Internationally, Transport Canada will
enhance transportation security and implement new security policies and
programs to establish a common approach to security. Efforts include
initiatives to: improve aviation security (including air cargo);
establish comparable standards for screening (e.g. of passengers and their
luggage) and background checks; improve container security; and consider
security requirements of non-SOLAS vessels. In addition, over the next
three years, in collaboration with other government departments as well as
international partners, Transport Canada will create a compatible maritime
regulatory environment with a consistent approach to vessels and cargo
destined to and within North American waters.
In the coming year, Transport Canada, as a major regulatory department,
will continue to support the government's Smart Regulation Initiative. In
practical terms, this means regulations that are more focused on safety and
security results with targeted interventions, and with the flexibility to be
innovative in meeting outcomes.
A key initiative in Transport Canada will be to sign an agreement with
the automotive industry concerning the manufacturing and use of in-vehicle
telematics devices such as navigation, Internet access and cell phones. This
agreement will include a safety standard and the general principles and
process elements that will guide product design and evaluation. Producing
safer telematics devices will help reduce incidents of driver distraction
and collisions. The agreement will give industry more flexibility and
opportunities for innovation in product design and will not require the
department to issue new or adapt old regulations to respond to new
technological advances. Consultations on the terms of the agreement are
progressing well and should be completed in 2007.
In 2007, The State Operators Program, a new
performance-based regulatory framework, will be introduced. This program
will apply to any State Operator providing air services on behalf of Her
Majesty in Right of Canada or of a province or territory, and is designed to
address the unique and diverse operational realities of state operators. The
day-to-day management of the State Operators Program will be jointly
undertaken by the newly created Canadian State Air Operators Association
(CSAOA) and Transport Canada; and will be dependent upon a robust Safety
Management Systems structure. The CSAOA and Transport Canada Civil Aviation
have jointly developed the draft regulations, which are currently undergoing
technical review.
In 2007, Transport Canada will adapt and coordinate communications to
enhance the transparency of the Civil Aviation program by educating
travelers and industry on shared safety responsibilities. This will be
achieved byconducting a national awareness campaign for cabin safety issues
such as unruly passengers, flight attendant ratio and child restraint
systems.
As Transport Canada moves into fully implementing the Government
Directive on Regulating, the Civil Aviation Regulations Advisory
Council process will be of key importance as a means to keep stakeholders
informed of issues that could affect them. Inter and intra-departmental and
inter-branch sharing of information is essential to keep stakeholders
abreast of various issues. As a result of the new Government Directive
on Regulating, the Civil Aviation directorate will explore how its
current regulatory process can partner more effectively on issues such as
aviation occupational health and safety and the transportation of dangerous
goods.
Transport Canada will continue to develop responsive marine security
regulations, which will keep Canada in step with a continuously evolving
marine security regulatory environment. This approval has fostered rapid
implementation of new security measures while maintaining marine security
regimes by industry.
Transport Canada is working with the Canadian Standards Association (CSA)
to develop a new CSA Standard for the design, manufacture and use in Canada
of Portable Tanks based on the latest United Nations (UN) Recommendations on
the Transport of Dangerous Goods. CSA expects to publish the standard late
in 2007 for subsequent adoption in the TDG Regulations.
This standard will harmonize Canadian requirements for the Transport of
Dangerous Goods in portable tanks with international requirements. Such
requirements include rules for the design and manufacture of UN portable
tanks in Canada and their approval by Canada, as well as the selection and
use, inspection, test and repair, in Canada, of UN portable tanks regardless
of where they were approved and manufactured. This will help promote safe
and efficient domestic and international movement of dangerous goods in
portable tanks.
Canadian proposals concerning performance requirements of intermediate
bulk containers (IBCs) have been adopted in the UN Recommendations on the
Transport of Dangerous Goods. Development of the appropriate Canadian
Standards is underway to implement the requirements of the UN
Recommendations related to UN IBCs, standardized packaging, and cylinders.
This will help promote safe and efficient domestic and international
movement of dangerous goods in these various means of containment,
regardless of where they are designed, approved or manufactured.
Other key aspects of Transport Canada's regulatory strategy are the
creation of rules that align with the rules of other regulatory agencies,
both within Canada and internationally, and having meaningful consultations
with both industry and the public. Rigorous and thorough consultation
processes have helped to ensure that upcoming reforms associated with key
acts will result in rules that reflect the needs and concerns of both
industry and the public:
- The Aeronautics Act, 1985,will be amended
to address fatigue management, liability insurance, aviation companies
management systems, analysis and reporting of safety data, protection
for voluntary non-punitive reporting and new compliance, and enforcement
tools;
- The review of the Transportation of Dangerous Goods Act,
1992, continues. Amendments are expected to be
proposed in 2007;
- The review of the Railway Safety Act, 1985,
will be undertaken in 2007 and will provide an opportunity for the
federal government to identify and address all of the major deficiencies
with this act including limited enforcement powers, lack of baseline
safety requirements, problems with delegated powers, inconsistent rule
application, unclear engineering requirements and jurisdictional
limitations;
- The Canada Shipping Act, 2001,
will encompass up-to-date requirements of the International Maritime
Organization and International Labour Organization Maritime Labour
Conventions and bring clarity and consistency, more rapid adaptability
and general applicability of maritime instruments; and,
- The Motor Vehicle Safety Act,
1993, will include modernized provisions regarding
regulatory efficiency and harmonization, certification and enforcement,
and importation.
Safety management systems (SMS) and security management systems (SeMS)
are formalized frameworks for integrating safety and security into the daily
operations of a transportation entity. They involve establishing clear
responsibilities and authorities, setting clear goals and performance
targets, managing risks and threats and regularly conducting internal
inspections and evaluations. In the larger sense, this leads to a more
thorough identification and resolution of potential systematic safety or
security problems. Transport Canada believes that safety and security
management systems will further improve the safety and security of the
transportation system.
Working closely with industry, labour and other stakeholders, the
department will develop plans to implement SMS/SeMS where appropriate. The
implementation of safety management systems in aviation, rail and marine
organizations is the cornerstone for improving the safety, security and
economic performance of industry. In 2007-08, the department will continue
to actively implement this approach.
In September 2006, a Safety and Security Management Systems Working Group
was created with the mandate to foster a common understanding of SMS and
SeMS and develop a consistent approach within all program activities of the
Safety and Security Group in Transport Canada. The working group will
continue working on the development of a strategic plan: Moving Forward:
Changing the safety and security culture, in conjunction with Civil
Aviation, Rail Safety, Marine Safety, Marine Security, Road Safety,
Transportation of Dangerous Goods, Security and Emergency Preparedness, Rail
and Urban Transit Security, Aircraft Services and Strategies and Integration
directorates. This strategic plan will outline Transport Canada's vision and
strategic direction with respect to the regulatory oversight program for
safety and security over the next five years. The benefits of this working
group are enhanced communication and strengthened linkages between modes on
the application of SMS/SeMS and improved decision-making and collaboration
on related projects and applications.
As safety management systems offer the most promising means of preventing
civil aviation accidents, Transport Canada will continue to enhance the
Canadian Aviation Regulations (CARs); particularly relating to airports,
water aerodromes, and approved maintenance organizations. Transport Canada
will also put in place the infrastructure necessary to fully implement SMS,
such as the application of Fatigue Risk Management Systems on a trial basis
in selected organizations. Transport Canada Civil Aviation will continue
steps undertaken in 2006 to restructure itself and its services to adapt to
both a changing workforce and a changing regulatory environment. Externally,
implementing SMS in aviation organizations will require specialists in all
disciplines of the civil aviation directorate to interact with safety
partners in the aviation community through multi-disciplinary work teams. As
a result, a phased-in approach to organizational changes is underway. The
focus of the National Organization Transition Implementation Project for
2007 will be the detailed organizational structure design.
The railway safety management system regulations, which came into effect
on March 31, 2001, require railway companies subject to the Railway
Safety Act to implement and maintain safety management systems. A
stakeholder forum on the experiences to date on implementing SMS in the rail
industry will be held, and a review of the department's rail SMS regulations
and guidance material will be conducted in 2007-08.
Canada was one of the member countries of the International Maritime
Organization that was instrumental in implementing requirements for safety
management systems on all ships trading internationally. The systems were
mandated for Canadian international shipping through the Safety Management
Regulations, which introduced the International Safety Management (ISM) Code
in 1998 and expanded the scope of its application in 2002. Transport Canada
has had some success in promoting voluntary adoption of the ISM Code by
domestic shipping companies. The department has also developed guidance
material for small passenger vessels operating internationally for which a
full-blown ISM would not be feasible.
Transport Canada is examining ways to increase the implementation of such
systems and is assessing various shipping sectors for opportunities for
increased participation. Transport Canada will continue to work with the
marine industry over the coming years to identify opportunities to utilize
an SMS philosophy in the continued enhancement of the marine safety and
security regime in Canada.
The implementation of security management systems is a coordinated effort
amongst the aviation, marine and rail security groups. In 2007, the
department will continue conducting research, as well as consultations with
stakeholders to assess the state of industry's security readiness to
implement SeMS. In addition, in 2007, the department will concentrate its
activities on policy development and program design in order to have program
implementation well underway in 2009.
Although transportation provides many economic and social benefits, the
movement of people and goods can have significant environmental
consequences, which in turn have social and economic repercussions.
Effective sustainable transportation decision-making necessitates that the
environment be considered alongside economic and social factors.
Environmental impacts from transportation include air, water and noise
pollution, greenhouse gas emissions, and the loss of agricultural land and
wildlife habitat. These stresses are caused by various transportation
activities such as: construction of infrastructure; airport and port
operation; road system operation and maintenance; production, operation,
maintenance and disposal of vehicles; and consumption of energy.
Transport Canada will continue to promote a sustainable transportation
system through developing and implementing programs and policies in support
of sustainable development to protect the natural environment. As
sustainable transportation is a shared responsibility, the department will
work with its partners and stakeholders, including the general public, the
transportation industry, other federal government departments, provinces,
territories and municipalities as well as international organizations.
For 2007-08, an important area of focus will be on clean air and the
reduction greenhouse gas emissions. TheClean Air Regulatory Agenda will
enable the federal government to implement measures to reduce the emissions
of both air pollutants and greenhouse gases from the transportation sector.
To this end, the Government will take immediate action to address air
emissions from transportation sources. More specifically, Transport Canada
will develop new regulations that will limit emissions from new motor
vehicles and railways and ensure that international emissions standards for
marine transportation and aviation are applied domestically. In addition,
the Government has introduced new programs as part of its ecoTransport
Strategy, announced by the Government in February 2007.
Transport Canada tabled its fourth successive three-year Sustainable
Development Strategy on December 13, 2006. For this
strategy, Transport Canada chose to focus on three themes at the heart of
sustainable transportation: urban transportation; commercial freight
transportation and marine transportation. These themes allowed the
department to focus its efforts and to make a smaller number of meaningful
and results-oriented commitments. The 2007-2009 SDS action plan is
structured around seven strategic challenges, which were retained from the
2004-2006 strategy. Over the 2007-08 fiscal year, the department will
implement the commitments and targets that it set out for the 2007-09
strategy (see SDS Table 11 for details on 2007-08 commitments). A new
element of the 2007-2009 SDS is a commitment to establish an internal SDS
Fund of up to $1 million per year for the three years of the SDS. The Fund
will support innovative projects that make significant contributions to
sustainable transportation and approved projects will be considered SDS
commitments. Projects for the 2007-08 fiscal year will be selected in early
2007.
Transport Canada, in its Sustainable Development Strategy 2004-2006,
has included a key challenge involving the improvement of environmental
management on Transport Canada lands and in their operations. The department
has met this continuing challenge through its Environmental Management
System (EMS). The EMS helps the department better understand the nature of
the environmental impacts of transportation. It has led to the development
of programs in the areas of environmental assessment, site remediation,
environmental protection and real property management. In 2007-08, EMS will
continue to aid the department in facilitating an understanding and
management of the environmental impacts of transportation.
In 2007-08 Transport Canada will implement new programs under the
ecoTransport Strategy to reduce greenhouse gas and air pollutant emissions.
These programs will foster the implementation of clean technologies for
personal vehicles and freight carriers across all modes and expand the range
of sustainable transportation options for individual Canadians. The programs
will work with businesses, governments, industry associations and with
Canadian consumers to reduce the environment impact of the transportation
sector through demonstrations, pilot projects, showcasing of alternatives
and capacity building. More details on these programs are described below.
The following are high-level performance indicators that will be used to
track progress towards the department's sustainable transportation goals.
Indicators of progress
- Reduction of total greenhouse gas emissions per mode (road
gasoline, road diesel, aviation fuel, rail diesel and marine fuel)
- Average fuel efficiency for light duty vehicles, light trucks,
heavy duty trucks, locomotives and aircraft
- Reduction of freight greenhouse gas emissions by tonne-km for
light trucks, medium trucks, heavy trucks, locomotives and vessels
- Light duty vehicle air pollutant emissions per kilometre
- Decreases in total air pollutant for for-hire-trucking, marine,
rail and air
- Reduction of greenhouse gas emissions from Transport Canada
activities
- Number of Transport Canada contaminated sites that have
undergone remediation or risk management
Environmental Responsibility: Challenges and Opportunities
Multiple factors from passenger and freight transportation affect the
interplay with the environment, specifically in urban areas, where about 80
per cent of Canadians reside. Poor air quality is a growing dilemma as there
are numerous social, economic and environmental impacts that accompany it.
Greenhouse gas emissions reduction also remains a challenge for Canada and
the transportation sector in particular. In 2004, about 25 per cent of
greenhouse gas emissions in Canada came from the transportation sector;
about two-thirds of which are generated in urban areas. In 2002,
transportation accounted for about 53 per cent of all NOX
emissions, 59 per cent of carbon monoxide, 24 per cent of VOCs, 3 per cent
of sulphur oxides, and 5 per cent of particulate matter (PM2.5) -
the major constituents of urban smog.
Given the concentration in urban areas, a transportation system that is
efficient, safe, secure and environmentally responsible remains an integral
component of sustainable communities. Although the rapid rate of urban
growth has provided considerable economic and development opportunities with
respect to an increase in employment, neighbourhoods and physical
structures, the effects remain quite significant.
Freight transportation makes a significant contribution to the Canadian
economy both in terms of its actual share of economic activity and through
the enabling role that it plays in moving products to market. Growth in
trade and changes in patterns of freight activity, such as just-in-time
delivery models, are leading to significant increases in activity in all
modes. Overall, freight movement is expected to increase by 60 per cent
between 1990 and 2020 with the greatest growth in the air and trucking
sectors.
There is a continuing need to address systemic challenges and
opportunities to make certain that there is greater integration where
possible. Efforts to influence both transportation supply and demand will be
critical in terms of forging a more sustainable transportation system.
Future efforts will continue to focus on ensuring the efficiency of the
urban transportation system, relieving congestion and improving air quality.
Influencing the transportation choices Canadians make through initiatives
that support greater awareness and knowledge transfer is a key way in which
the government can make significant reductions in transportation emissions,
demands on infrastructure, and improvements to the health of Canadians
through alternative and active modal choices. Other important elements
include advancing new technologies in support of sustainable transportation
and investigating opportunities related to research and development for
sustainable transportation. The federal government will continue to promote
vehicle fuel economy and will work with the auto industry in the realization
of emissions reduction targets set forth in the voluntary
government/industry Memorandum of Understanding to reduce greenhouse gas
emissions.
Transport Canada will also continue to lead a centralized effort to
organize and improve the collection, dissemination and analysis of
sustainable transportation information in all modes. This includes the
development of new data and analytical tools to improve decision-making. The
current proposal will build upon Transport Canada's capacity to deliver
policy analysis and develop advice on environment and sustainable
development issues related to transportation. Specific objectives of this
proposal will include developing analytical frameworks and/or conduct
studies useful to develop these frameworks on critical environmental issues
to improve decision-making. The development of analytical tools will improve
assessment of climate change and clean air mitigation options, cost and
impact, including co-benefits such as congestion reduction benefits, when
suitable.
The fundamental challenge is to adopt a systemic approach to achieve a
sound integration of environmental issues into transportation policy. To
this end, Transport Canada will take an integrated and comprehensive
approach in developing and managing policies and programs to address
government-wide sustainable development and environmental issues as they
relate to the transportation sector. The department will work with its
partners and stakeholders to overcome the challenges outlined above.
Environmental Responsibility: Program Priorities
To promote an environmentally responsible transportation system that
contributes to Canada's sustainable development objectives, Transport Canada
will focus its efforts on key activities and initiatives that support the
three program priorities of Climate Change and Clean Air, Environmental
Assessment and Environmental Protection and Remediation.
The Government of Canada is committed to the development and
implementation of an Environmental Agenda for reducing greenhouse gases and
ensuring clean air, water, land and energy for Canadians. The Environmental
Agenda will be effective, realistic and will focus on achieving sustained
reductions in emissions in Canada while ensuring a strong economy. The
Government will develop solutions that have clear environmental and
associated health benefits to Canada and improve our ability to market new
technologies around the world.
The first part of this environmental agenda will be regulatory, policy
and program measures to address air pollution and greenhouse gas emissions.
The government's intent with respect to regulatory actions was announced in
October 2006 with the tabling of Canada's Clean Air Act.
Transport Canada plays a lead role on climate change and clean air policy
as it relates to transportation. It works with other government departments
and stakeholders to develop and analyze new policies and measures for
reducing emissions from the transportation sector.
The department has examined new opportunities for reducing air pollutants
and greenhouse gas emissions, in support of the government's Environmental
Agenda. In 2007-08, the department will introduce new initiatives and expand
existing programs as part of the ecoTransport Strategy. The Advanced
Technology Vehicle Program will end March 31, 2007. As part of the
ecoTransport strategy, the Minister announced on February 14, 2007 the new
ecoTechnology for Vehicles Program that will build on the lessons
learned from the ATVP. The ecoTechnology for Vehicles Program will expand
its work to evaluate and test a range of emerging environmentally friendly
technologies for use in light-duty vehicles. Showcasing the cleanest and
most efficient personal vehicles from around the world will raise awareness
and help provide Canadians with the facts they need on vehicle purchases in
the future. The program will work closely with the auto industry and will
look to addressing the reducing the barriers for introduction of a broader
range of technologies for possible introduction into the Canadian market.
The Freight Technology Demonstration Fund and the Freight Technology
Incentives programs will end March 31, 2007. On February 15, 2007, the
Minister announced six new
ecoFreight initiatives to reduce the environmental and health effects of
freight transportation through accelerated adoption of emissions-reducing
technology. The Marine Shore Power initiative will help reduce emissions
from ships in port. The
ecoMobility, announced on February 13, 2007, will help to increase the
availability of convenient sustainable transportation options for Canadians
interested in reducing personal car use.
On April 5, 2005, the Government of Canada and the Canadian automobile
industry signed an agreement to act on climate change. Under the agreement,
carmakers will voluntarily work to reduce annual greenhouse gas emissions
from light-duty vehicles by 5.3 Megatonnes (Mt) in 2010. The agreement
reached gives consumers fuel-saving choices, focuses on immediate action to
achieve greenhouse gas reductions and provides a cost-effective solution for
government, industry and consumers.
A joint government-industry monitoring committee has been established to
track the Canadian automotive industry's performance under this Memorandum
of Understanding (MOU). Transport Canada, Environment Canada and Natural
Resources Canada are represented on this committee. Emissions reductions
will be monitored year by year, with interim goals in the years leading up
to 2010. The annual reports from the committee will be available to the
public as well as the MOU.
The Government of Canada intends to regulate the fuel consumption of road
motor vehicles after the expiry of the Memorandum of Understanding between
the auto industry and the Government of Canada. The Minister of Transport,
Infrastructure and Communities, with the Minister of Natural Resources, will
develop regulations that will build on the voluntary commitment the auto
industry made collectively in 2005. These new regulations will be developed
and implemented under the
Motor Vehicle Fuel Consumption Standards Act, as amended by the
proposed
Canada's Clean Air Act,to take effect for the 2011 model year.
Transport Canada and Environment Canada will support a Memorandum of
Understanding that has been negotiated with the Railway Association of
Canada that ensures that the rail industry reduces its emissions of air
pollutants consistent with the United States Environmental Protection Agency
air pollutant standards; and continues to improve its greenhouse gas
emissions performance between 2006 and 2010. Transport Canada will develop
and implement new regulations under the
Railway Safety Act to take effect in 2011.
The Arctic is extremely vulnerable to climate change and its impacts.
Historically, the harsh environment has made resources difficult to access.
However, in the past half-century changing climate conditions, coupled with
technological advances and increased demand for resources, have increased
accessibility and the rate of development in the North. Needless to say,
climate change has become a major force shaping the future of the North.
While an increase in accessibility and marine activity will require greater
support and pose increased environmental risks, it will also lead to social
and economic development through increased investment, infrastructure and
improved access to goods, services, and supplies. Under the PAME (Protection
of the Arctic Marine Environment) working group, Canada (Transport Canada),
Finland and the United States will lead a three-year study called the
"Arctic Marine Shipping Assessment" to study current and future marine
activities in the Arctic and the related social, economic and environmental
impacts increased marine activities may have on Arctic residents. The final
report is to be presented to the 6th Arctic Council Ministerial
in Autumn 2008.
Transport Canada has partnered with municipal and regional governments to
demonstrate innovative and integrated approaches to reducing greenhouse gas
emissions from the urban passenger sector through the Urban Transportation
Showcase Program. These showcase demonstrations are encouraging modal shifts
away from single occupancy vehicles by offering residents a wider variety of
sustainable transportation options. The lessons from these demonstrations
and from other successful Canadian case studies are being disseminated to
encourage broader uptake of successful approaches. In 2007-08, the program
will continue to support existing demonstration projects and share the
lessons-learned and results through the programs Information Network.
Since 1999, Transport Canada's Moving on Sustainable Transportation
(MOST) program has funded innovative, smaller-scale projects to expand the
range of sustainable transportation options for Canadians. The program aims
to improve air quality and health, and realize other benefits by supporting
the work of non-profit organizations across Canada. In 2007-08 the
department will work to renew the program.
In January 2007, a joint MOU was signed by Transport Canada, Environment
Canada and Railway Association of Canada (RAC) to reduce Locomotive
Emissions and Greenhouse Gases. This MOU is to remain in effect until 2010
and regulations are to be introduced in 2011 under the provisions of the
Railway Safety Act. Transport Canada, in conjunction with Environment
Canada and RAC, plans to organize a government/industry workshop on
locomotive emissions during the currency of the MOU.
During 2006-07, the conduct of environmental assessments pursuant to the
Canadian Environmental Assessment Act for projects requiring a
Navigable Waters Protection Act approval continued to represent a
significant workload for both headquarters and regional personnel.
Environmental assessments are underway or completed for many projects;
including bridges, dams, liquefied natural gas facilities, mines,
aquaculture and pipelines.
In light of this workload, a Strategic Review of environmental assessment
resource requirements was undertaken in 2006 that included identification of
measures for increasing efficiency. In 2007-08, the department will continue
to review procedures, implement measures to improve efficiency and develop
guidance documents to deliver the environmental assessment program in the
most efficient manner without compromising the high quality of the
environmental assessments completed.
During 2007-08, the Director General level Environmental Assessment
Project Committee will implement an interim approach to scoping (which may
be in place until the Canadian Environmental Assessment Act can be
amended) and an interim approach for engaging with aboriginal peoples in the
environmental assessment of project (which will be in place until a time
when a federal government policy is implemented).
In addition, Strategic Environmental Assessment (SEA) allows decision
makers to contribute to the department's sustainable development objectives
by integrating environmental considerations in the development and analysis
of policy, plans and program initiatives. Environmental Affairs intends to
work closely with the Offices of Primary Interest in order to improve the
SEA process and compliance, through tools such as SEA training sessions and
a computer tracking system that also includes an earlier integration of SEA
in the decision-making process.
In 2007-08, Transport Canada will renew its commitment to the Partnership
for Air Transportation Noise and Emissions Reduction (PARTNER) Center of
Excellence, which is led by the U.S. Federal Aviation Administration (FAA)
and the National Aeronautics and Space Administration (NASA). PARTNER is a
long-term partnership of academia, industry and government established to
create a world-class consortium, closely aligned with national and
international needs to foster breakthrough technological, operational,
policy and workforce advances for the betterment of mobility, the economy
and the environment. The group conducts basic research and engineering
development to reduce uncertainties associated with aviation's environmental
impact and prototype solutions to mitigate these impacts. The knowledge and
capability gained from this research will provide critical information to
government, industry and community decision-makers to tackle environmental
impacts; which may represent the single greatest challenge to the continued
growth and prosperity of civil aerospace.
In 2007-08, Transport Canada will also continue to undertake work
detailed in its departmental Contaminated Sites Management Plan. The plan is
a Treasury Board requirement that outlines the department's five-year
strategy for managing its contaminated sites and identifying suspected
contaminated sites. In addition to funding from within the department, the
Federal Contaminated Sites Accelerated Action Plan Fund will be utilized to
initiate or accelerate assessment work and remediate high-risk sites.
Transport Canada keeps a watchful eye over ships transiting Canadian
waters through its National Aerial Surveillance Program (NASP). The NASP is
the primary tool for detecting ship-source pollution in waters under
Canadian jurisdiction. Evidence gathered by NASP crews is used by Transport
Canada and Environment Canada to enforce the provisions of all Canadian
legislation (including the
Canada Shipping Act and the Migratory Birds Convention Act)
applicable to illegal discharges from ships. Aerial surveillance is widely
adopted internationally, and is considered to be the most effective method
for the detection of oil spills.
Transport Canada has undertaken a number of initiatives to further
enhance its NASP. Transport Canada has secured additional funding to improve
the frequency of pollution patrols, which has resulted in the expansion of
pollution surveillance to areas not normally patrolled such as the Arctic.
Other initiatives include multitasking with other government departments to
ensure each surveillance hour is as productive as possible and upgrading its
mission specific surveillance equipment. In 2004-05, Transport Canada
contracted the first of two integrated suites of marine pollution
surveillance equipment to aid in protecting Canada's ocean resources. The
pollution surveillance aircraft flew its inaugural mission on November 29,
2006, with its newly equipped surveillance equipment. Transport Canada will
strive to continuously improve the effectiveness of the NASP. In the fall of
2007-08, the second system is scheduled to be operational with trained
crews. Transport Canada's goal is for Canada to be recognized as one of the
most capable nations in aerial marine reconnaissance.
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