REPORT HIGHLIGHTS

TRANSPORTATION AND THE CANADIAN ECONOMY

• In 2002, the Canadian economy recovered from the slowdown of 2001, as the Gross Domestic Product (GDP) showed a 3.4 per cent real growth.
• The improved economic performance resulted from strong exports and consumer expenditures, particularly automobiles and housing.
• The U.S. demand for Canadian automobile products is one reason for the strong exports, while low interest rates were behind consumer demand for housing, which in turn boosted residential construction.
• The growth rate of the services sector (3.4 per cent) surpassed that of the goods sector (1.5 per cent).
• The value of the Canadian dollar in relation to the U.S. dollar fluctuated between US$0.62 and US$0.66 during 2002. Its average value over the year, however, was 2.5 per cent less than in 2001.
• The Consumer Price Index increased by 2.2 per cent in 2002, less than in 2001. While energy prices for the year were less than in 2001, users of transportation services paid 2.8 per cent more in 2002.
• In real terms, personal disposable income per capita increased by 1.5 per cent in 2002.
• While the population grew by one per cent, employment increased by 2.2 per cent (335,000 jobs).
• Alberta was the only province in 2002 to have lower economic growth than in 2001. Newfoundland and Labrador, on the other hand, experienced the strongest growth.
• The 2001 Census shows a relationship between the increasing proportion of Canadians living urban centres (10,000 people or more) and the top 27 census metropolitan areas (CMAs), as well as changes in the way Canadians commute to work.
• The population in Ontario's Golden Horseshoe, the Montreal area, British Columbia's Lower Mainland and the Calgary-Edmonton corridor grew by 7.6 per cent between 1996 and 2001. Elsewhere in Canada, the population increased by only 0.5 per cent.
• Between 1996 and 2001, the number of people within CMAs working in surrounding municipalities grew by
  63 per cent, while jobs in the core areas rose by eight per cent.
• Over the last 20 years, the number of workers commuting within the core of CMAs fell by 10 per cent, while those commuting between the core and the surrounding municipalities, and between surrounding municipalities, increased. There are now more people working in CMAs than living in them.
• Canadians travelled an average of 7.2 kilometres to get to work in 2001, an increase from 1996 census results.
• More than 70 per cent of all commuters in CMAs drove a motor vehicle to work. The largest metropolitan centres reported the highest proportion of people using public transportation and the lowest proportion driving to work.
• Tourism expenditures, including expenditures on transportation, fell in 2001. Of transportation expenditures related to tourism, air transportation experienced the largest drop. Both domestic and international travel was down for all modes in 2001 and international travel fell in 2002.
• With the exception of road and marine transportation, energy demand by transportation activities decreased in 2001.
• Productivity in transportation grew by 1.9 per cent in 2001, which minimized price increases to below inflation.
• Commercial transportation services accounted for four per cent of Canada's value-added GDP. In relation to provincial/territorial GDP, the most significant importance was observed in Manitoba, British Columbia and New Brunswick. Of the commercial transportation activity captured under the GDP, Ontario and Quebec accounted for close to 60 per cent, while Alberta and British Columbia accounted for almost 30 per cent.
• Investment in transportation represented 3.1 per cent of GDP in 2001.
• Overall transportation-related final demand accounted for almost 15 per cent of total expenditures in the economy in 2001.
  

GOVERNMENT SPENDING ON TRANSPORTATION

• In fiscal year 2001/02, transportation expenditures by all levels of government totalled $19.2 billion, $1.2 billion more than in 2000/01. All government levels contributed to this increase.
• Government fees and tax revenues from transport users totalled $13.8 billion, 1.3 per cent more than the previous year, of which 74 per cent came from road fuel taxes.
• In 2002/03, direct federal transport expenses are expected to be $1.7 billion, a 15 per cent increase over 2001/02. While the federal government continued to spend less on operations, it increased its expenditures on road and bridges, and on safety, security and policy.
• In 2002/03, total direct federal subsidies, grants and contributions are expected to drop to $784 million.
• Provincial, territorial and local governments spent $17.2 billion on transportation in 2001/02, with roughly 79 per cent going to roads and highways.
• Also in 2001/02, governments spent $14 billion on roads, while public spending on public transit services totalled $2.7 billion. Federal and provincial governments spent $1.9 billion on air, marine and rail transportation.

TRANSPORTATION SAFETY AND SECURITY

• Canada continued to improve upon its good transportation safety record in 2002. The number of accidents in each of the modes continued a downward trend, with record lows being recorded in aviation (the lowest annual total in 25 years) and in road (the fewest casualty collisions in more than five decades). The number of marine shipping accidents also registered its lowest annual total in the past 25 years, while reported rail accidents continued a notable five-year downward trend.
• Rail-related accidents declined by 7 per cent in 2002, while fatalities decreased by 3 per cent. Crossing and trespasser accidents continued to account for the greatest proportion of fatal accidents (99 per cent) and accidents involving serious injury (82 per cent) in 2002. Direction 2006, a strategic partnership initiative involving government and industry, has as its goal to reduce the number of crossing and trespasser accidents by 50 per cent by 2006.
• One of the most notable improvements with respect to the road safety record was the reduction in the number of road-related fatalities and injuries, down from the previous year by five and three per cent, respectively. Road Safety Vision 2010, a strategic partnership initiative, has established a target of reducing the number of road-related fatalities and serious injuries by 30 per cent by 2010.
• The number of marine accidents in 2002 fell by seven per cent, with 15 fatal accidents and 25 confirmed vessel losses reported. Small fishing vessels continued to account for approximately half the reported marine accidents, while small commercial vessels accounted for a further 12 per cent. Major regulatory reform initiatives were introduced in November 2001 with the passage of the Canada Shipping Act 2001. Part of this reform is aimed at improving safety in these areas.
• Accidents involving Canadian-registered aircraft continued to decline in 2002, with eight per cent fewer accidents than in 2001, five fewer fatal accidents and 14 fewer fatalities. Compared with the 1997 - 2001 five-year average, the number of accidents in 2002 declined by 20 per cent. As means of further improving aviation safety levels, Transport Canada is working with the aviation industry through initiatives such as Flight 2005 and the implementation of safety management systems through all sectors of the aviation industry.
• On an annual basis, there are more than 27 million shipments involving dangerous goods. In 2002, almost all these shipments arrived without incident at their destination, with the exception of 580 occurrences. Of this number, only two were caused by the dangerous good itself. The majority of deaths and injuries are caused by the accident or collision rather than contact with the dangerous good. Transport Canada is undertaking research in the area of tanks and pressurized cylinders, and highway tank vehicle safety standards, and it is working toward greater international harmonization.
• During 2002, public confidence in the security of the transportation system was restored to pre-September 2001 levels. Working with government, industry and other stakeholders, Transport Canada introduced new security initiatives in all modes and continued to implement security enhancements announced in 2001, following the September 11, 2001, terrorist attacks in the United States.
• In 2002, the Canadian Air Transport Security Authority (CATSA) assumed responsibility for key aviation security services, such as pre-board screening at 89 designated airports.
• Transport Canada initiated a number of aviation security enhancements in 2002.
• Transport Canada introduced initiatives to enhance marine security, including the St. Lawrence Seaway and Great Lakes Initiative, aimed at enhancing security screening procedures for ships in these waterways.