1. Introduction

The mandate of this second report was once again interpreted broadly. The focus has been placed, as much as possible, on 1997 information.

This is the second annual report submitted by the Minister of Transport to Parliament on the state of transportation in Canada. The report covers the year 1997, within the limits of data availability. It responds to the requirements set out in section 52 of the Canada Transportation Act, which states that:

"Each year the Minister shall, before the end of May, lay before Parliament a report briefly reviewing the state of transportation in Canada in respect of the preceding year, including:

(a) the financial viability of each mode of transportation and its contribution to the Canadian economy and the development of the regions;

(b) the extent to which carriers and modes of transportation were provided resources, facilities and services at public expense;

(c) the extent to which carriers and modes of transportation received compensation, indirectly or directly, for the resources, facilities and services that were required to be provided as an imposed public duty; and

(d) any other transportation matters the Minister considers appropriate."

This mandate is interpreted in the broadest possible way, taking into account all significant aspects of the Canadian transportation system, pipelines being the only transportation activity not covered.

Structure of Report

The next two chapters of the report provide an overview of the importance of the transportation industry to the economy, both at the national and regional levels. This is followed by four chapters, which take a horizontal look at all modes, and deal respectively with government spending, infrastructure, safety and the environment. Five modal chapters - air, marine, rail, trucking and bus - complete the review of the state of transportation. In addition to pointing out the important legislative and regulatory changes introduced in 1997, these chapters present detailed information on the operations and finances of each mode.

Changes from 1996 Report

While the report follows a similar layout to that of its predecessor, there are some differences. Two important differences are the absence of separate chapters on private passenger vehicles and intermodal transport. In this report, the subject of private passenger vehicles is dealt with in the context of road transportation. Intermodal transport is more specifically addressed in three chapters of the report - Infrastructure, Marine and Rail. The chapters on safety and the environment have been moved closer to the front of the report, given their importance as broad policy objectives.

The first report on transportation in Canada discussed in detail the legislative and regulatory framework for each mode at the federal, provincial and municipal levels. Only the changes in legislation that occurred in the past year are reflected in this year's report. Also, the first edition highlighted many of the trends that have emerged in recent years throughout the modes. This served to set the stage for the examination of the state of transportation in the ensuing years.

Finally, every effort was made to focus on data from the preceding year in the coverage reported, data availability being the deciding factor in the end. When 1997 information was not available, the most recent information accessible was reported.