8 MARINE TRANSPORTATION

MARINE PILOTAGE

In Canada, regional pilotage authorities direct and control navigation and/or ship handling of vessels through coastal and inland waterways in a safe and efficient manner. There are four such pilotage authorities in Canada: Atlantic (APA), Laurentian (LPA), Great Lakes (GLPA) and Pacific (PPA). Each responds to the particular requirements of marine traffic and to the geographic and climatic conditions of the waterways in its region.

The LPA, GLPA and PPA each experienced a surplus in 2006, resulting in a combined gain of about $3 million for the four pilotage authorities. Table 8-6 shows the financial results for the four pilotage authorities in 2006.

^{1 Extraordinary gain of $238,000 due to the insurable loss of a Pilot vessel. Return}

^{Source: Pilotage Authorities’ 2006 draft annual reports}

^{Source: Pilotage Authorities’ 2006 draft annual reports}

Using the average number of assignments per pilot as an indicator, overall, the efficiency of pilotage services in 2006 remains the same as that of 2005. The only exception was the APA, where the average number of assignments per pilot decreased in 2006. The variations between the authorities and from year to year are related to traffic levels. Assignments increased for the LPA and GLPA but decreased for the APA and PPA. Overall, there were slightly fewer assignments in 2006 than in 2005.

Table 8-7 shows the number of assignments for each pilotage authority and the total for all pilotage authorities in 2006. For information on other years, see Table A8-8 in the Addendum.

CANADIAN COAST GUARD

The Canadian Coast Guard (CCG) is a Special Operating Agency within Fisheries and Oceans Canada (DFO). The CCG is a key national institution that allows Canada to exert influence over its waters and coasts. It delivers on public expectations of clean, safe, secure, healthy and productive waters and coastlines. It achieves this mission through nine services (program subactivities), as follows.

Aids and Waterways Services supports approximately 17,000 short- and long-range aids and monitors the conditions of 75 commercial shipping channels. Key focuses of this service include delivering aids to navigation, waterways management, and marine safety information services to support marine safety, accessibility of waterways and environmental protection.

Marine Communications and Traffic Services monitors 450,000 vessel movements annually, provides marine distress/safety communications and coordination, conducts vessel screenings, regulates vessel traffic movement, and provides information systems and public correspondence on a 24/7 basis.

Icebreaking Services provides approximately 1,700 ice services each year. It provides icebreaking and related services (ice routing, harbour breakouts, route assistance, etc.) to facilitate the safe and expeditious movement of maritime traffic through and around ice-covered Canadian waters and to reduce the risk of flooding caused by ice jams on the St. Lawrence River.

Search and Rescue Services saves about 3,000 lives and assists in 2,000 maritime incidents each year. The primary goal of maritime SAR is to save lives at risk. The federal Search and Rescue system is led by the Canadian Minister of National Defence, who is responsible for ensuring a coordinated approach. The CCG provides and leads the maritime component of the federal Search and Rescue program, with the support of the Coast Guard Auxiliary.

Environmental Response Services responds to ship source pollution incidents and mystery oil spills. On average, it deals with over 1,200 reported incidents each year. As the lead federal agency for ship source spill response, the CCG delivers environmental incident preparedness and response services that protects the marine environment under Canadian jurisdiction and provides response assistance to other countries under international agreements. For North of 60°, the CCG is the sole response organization.

Maritime Security Services supports the Government of Canada’s national security objectives by contributing to security on Canadian waterways. This service includes support to the federal enforcement and intelligence communities through Coast Guard fleet and national marine communications activities. The CCG works closely with the security community as a member of the Transport Canada-led Interdepartmental Marine Security Working Group.

Coast Guard College Services has as its mission to increase the safety and protection of the national and international maritime transportation systems and environments by developing, disseminating and administrating maritime training, education and research programs on behalf of the Government of Canada. This service includes training junior officers for Coast Guard service by delivering high quality, up-to-date maritime training and services in a modern and progressive environment.

Fleet Services is responsible for managing, operating and maintaining the CCG Fleet (vessels and aircraft) for the delivery of civilian marine services in support of the Government of Canada’s maritime priorities. This includes the above-mentioned CCG programs as well as support to Science, Oceans and Fisheries Management (Conservation and Protection).

Contribution to other Government Objectives delivers civilian marine services (expertise, personnel and infrastructure: vessels and aircraft) on behalf of other government departments or in support to agencies and organizations in the achievement of the Government of Canada’s maritime priorities.

As a Special Operating Agency within DFO, the CCG delivers its programs and services through the federal government’s civilian fleet and a broadly distributed shore infrastructure. This infrastructure includes marine communications and traffic services centres, major bases, multi-tasked lifeboat stations, rescue centres with Canadian Forces, and aids to navigation. It also includes hundreds of other assets, such as radio towers, throughout the country. In addition, the CCG manages and operates the Canadian Coast Guard College, in Sydney, Nova Scotia.

The Coast Guard is a recognized symbol of Canadian sovereignty and maritime excellence. It is instrumental in saving lives, facilitating maritime commerce, responding effectively to pollution incidents, protecting the aquatic environment and supporting maritime security. CCG responds to maritime emergencies and disasters both in Canada and internationally; for example, Hurricane Katrina in 2005.

The Coast Guard has identified three broad areas –– Focus on Client Service, Focus on Efficiency and Effectiveness, and Focus on People –– as key organization priorities.

FINANCIAL PROFILE

Table 8-8 shows the Coast Guard’s financial results for the last four fiscal years. Results for 2006/07 reflect forecasted revenue and expenditures to fiscal year-end and will not be finalized until the end of the fiscal year.

^{1 2003/2004 figures do not include the Coast Guard College. 2004/2005 figures include amounts related to the Coast Guard College, which was transferred to the Coast Guard as of April 1, 2004. Return}

^{2 All gross and net expenditures reported do not include the Program Enablers’ allocation. Refer to Table 8-9 for a breakdown of the Coast Guard’s Revenues and Gross Expenditures by sub-activity. Return}

^{Source: Fisheries and Oceans Canada}

In June 1996, the CCG introduced the Marine Navigation Services Fee, which was targeted to collect $27.7 million annually, including administrative costs.

In 1998, the CCG introduced a transit-based Icebreaking Services Fee, which was targeted to collect $13.8 million annually, including administrative costs.

^{Note: AWS: Aids and Waterways Services; MCTS: Marine Communication and Traffic Services; ICE: Icebreaking Services; SAR: Search and Rescue Services; ER: Environmental Response Services; Fleet: Fleet Management Services.}

^{1 The gross expenditures and net planned spending reported do not include the Program Enablers’ allocation. Return}

^{Source: Fisheries and Oceans Canada}

The Maintenance Dredging Services Tonnage Fee, established in September 1997, was originally intended as an interim measure to cover the full costs that the CCG incurred in providing maintenance dredging services in the St. Lawrence Ship Channel.

The Coast Guard continues to work with representatives from the commercial marine transportation industry to arrive at a long-term arrangement on these revenues.

Table 8-9 breaks down the Coast Guard’s revenues and expenditures by its seven main sub-activities for fiscal year 2006/07. Both revenues and expenditures are forecasts only and will not be finalized until the end of the fiscal year.

ST. LAWRENCE SEAWAY

Cutting to the industrial heartland of North America, the St. Lawrence Seaway is a unique inland waterway, serving 15 major international ports and some 50 regional ports on both sides of the Canada–United States border.

The Seaway consists of two sections. The 300-kilometre Montreal–Lake Ontario (MLO) section runs from Montreal to Lake Ontario and has five locks in Canada and two in the United States. The 42-kilometre Welland Canal joins Lake Ontario to Lake Erie and has eight locks, all in Canada. Combined, the two sections gradually raise vessels 183.2 metres above sea level, the height of a 60-storey building. The locks and channels of the Seaway accommodate vessels up to 225.5 metres long, 23.8 metres wide and eight metres in draft.

The St. Lawrence Seaway Management Corporation (SLSMC) manages, operates and maintains the navigational aspects of the Canadian portion of the Seaway. A not-for-profit corporation, the SLSMC was established by Seaway users and other interested parties. It assumed management of the Canadian Seaway on October 1, 1998, under a long-term agreement with the federal government pursuant to the Canada Marine Act. The SLSMC charges tolls and generates other revenues to finance the operation and maintenance of the Seaway. When required, it also receives additional funds from the federal government to eliminate operating deficits.

In 2006, the Seaway handled an estimated 47.1 million tonnes, up 8.8 per cent over 2005. Grain ranked first among commodity shipments, with 11.5 million tonnes, up 17.6 per cent. Shipments of iron ore and coal were 11.0 and 3.7 million tonnes, respectively, both commodities up slightly over 2005. Overall, the Seaway experienced strong performance within its traditional bulk and general cargoes, which were complemented by a series of new cargoes, including shipments of aluminum ingots, and wind turbine parts. Table 8-10 shows cargo movements for 2005 and 2006 while Table 8-11 shows traffic by commodity for the same years. For a longer time series, see tables A8-9 and A8-10 in the Addendum.

^{1 Figures are estimated as of December 31, 2006. Return}

^{Source: St. Lawrence Seaway Management Corporation}

^{Note: Combined traffic in the two sections of the Seaway.}

^{1 Figures are estimated as of December 31, 2006. Return}

^{Source: St. Lawrence Seaway Management Corporation}

RATES AND TARIFFS

The SLSMC implemented a two per cent cargo toll and ship charge increase for the 2006 navigation season in both sections of the Canadian Seaway. This increase is in accordance with the management agreement between the SLSMC and the federal government, which stipulates annual tariff increases based on the lesser of the annual average percentage change in the Consumer Price Index or two per cent.

FINANCIAL PROFILE

In fiscal year 2005/06,¹ the Seaway generated $76 million in revenues from tolls and other sources, up from $74 million in 2004/05. Seaway operating expenses were $60.4 million, up slightly from $60.2 million. These expenses are related to the management and operation of the Seaway infrastructure, with salaries, wages and benefits accounting for most of this total. Expenditures for the asset renewal program –– representing the cost of maintenance and major repairs of locks, canals, bridges, buildings and other infrastructure assets –– increased from $32.1 million to $33.1 million.

Table 8-12 shows the financial performance of the St. Lawrence Seaway from 2003/04 to 2005/06.

^{1 April 1 to March 31. Return
2 Following contribution from Capital Trust Fund. Return}

^{Source: St. Lawrence Seaway Management Corporation}

¹ Tolls in fiscal year 2005/06 are for traffic in the 2005 navigation season. Return

Major Events in 2006

Infrastructure

Marine Politage

Industry Structure

Passenger Transportation

Freight Transportation