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Section ii – Analysis of program activities by strategic outcome

2.1   Strategic Outcome:  An efficient transportation system that contributes to Canada’s economic growth and trade objectives

Program Activity	Financial Resources ($ thousands)			Human Resources (Full-time Equivalents)
	Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
Policies, Programs and Infrastructure in support of a market-based framework	$101,459	$198,063	$123,998	643 FTEs	757 FTEs	114 FTEs

2.1.1    Program Activity:  Policies, Programs and Infrastructure in support of a market-based framework

This Program Activity includes the development of transportation policies, legislation, programs and infrastructure support allowing competition and market forces to guide the growth and development of an efficient national transportation system. It is through a strong and healthy marketplace that existing competitors and new entrants continue to innovate and provide new services, meeting current and future transportation needs of Canadians. Transport Canada also administers airport, port, highway, rail, transit, ferry and bridge contribution progams and performs stewardship functions for ports, airports and air navigation system sites, as part of its ongoing commitment to an efficient transportation system.

Achievements

The following are achievements under this Program Activity: Legislation, Air Services Agreements, Building Canada Plan, Gateways and Trade Corridors, Public Transit Capital Trust, Inter-City Passenger Rail Service, Transportation Infrastructure Projects, Port Divestiture, Airports Infrastructure and Innovation.

Legislation

Contributing activities under this Program Activity include establishing marketplace policies to govern the economic behaviour of transportation carriers. Transport Canada has been working on several fronts to support a strong and vigorous marketplace framework for our national transportation system.

During 2007-2008, the department amended the Canada Transportation Act through the following pieces of legislation:

• Bill C-3, International Bridges and Tunnels Act allows the federal government to make regulations regarding the efficiency, operations and use of international bridges and tunnels.
• Bill C-11, Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts, which contains amendments to the general, air and rail passenger provisions, railway noise and the grain revenue cap, received Royal Assent on June 22, 2007. The amendments to the Canada Transportation Act apply to air and rail modes. They enable consumers to receive clear, transparent information about air services provided in Canada, and authorize the Canadian Transportation Agency to make regulations respecting the advertising of air travel prices in Canada provided by Canadian and foreign airlines. The amendments also formally integrate the complaints function of the former Air Travel Complaints Commissioner into the everyday operations of the Agency.
• Bill C-8, Act to Amend the Canada Transportation Act (railway transportation) received Royal Assent on February 28, 2008. The amendments address shipper concerns about rail service and rates while providing regulatory stability to encourage investments in rail service that are required to keep Canadian exporters and importers competitive in international markets.
• The department also enhanced the provisions of the following legislation:
• Canada Marine Act (CMA). This will ensure that Canada’s national ports remain competitive and that they have increased borrowing authorities allowing greater flexibility to respond to investment opportunities. As a result, Canada Port Authorities (CPAs) are better positioned to capitalize on emerging opportunities and support international trade.
• Bill C-4, Amendments to the Pilotage Act. This Act provides both the governance structure under which an Authority must operate and the requirement for them to be financially autonomous.

Air Services Agreements

Another way that Transport Canada supports a market-based framework is through the modernization of economic regulation of the air industry. By the end of 2007, Canada had more than 70 bilateral air transport agreements or arrangements for international air services in place. In addition to concluding eight new or expanded bilateral air services agreements in 2007, negotiations were initiated towards the conclusion of a comprehensive air services agreement with the European Union, consistent with Canada’s ‘Blue Sky’ international air policy, and further to the announcement by the Prime Minister and EU leaders during the Canada-EU Summit in June 2007.

Building Canada Plan

Another key activity under this Program Activity involves the development and implementation of policy frameworks and funding programs to guide strategic investments in transportation infrastructure to enhance the efficiency and reliability of the national transportation system by reducing bottlenecks and congestion.

The Government of Canada’s Building Canada Plan (BCP), which was announced in November 2007 provides $33 billion for infrastructure investments between 2007 and 2014 through various funding mechanisms, including the Provincial/Territorial (P/T) Base Funding, the Gas Tax Fund (GTF), the GST rebate, the Building Canada Fund (BCF), the Gateways and Border Crossings Fund (GBCF), the Asia-Pacific Gateway and Corridor Initiative (APGCI) and Public-Private Partnership (P3) Fund.

Transport Canada is responsible for the management and implementation of the GBCF and the APGCI; PPP Canada Inc. has responsibility for the development and implementation of the P3 Fund; and Infrastructure Canada is responsible for the management and implementation of the P/T Base funding, the GTF and the BCF.

Throughout 2007-2008, Transport Canada worked closely with Infrastructure Canada on the development of the policy framework and program parameters for the BCF and P/T Base Funding, particularly for eligible transportation categories, as well as the Infrastructure Framework Agreements that govern the management and implementation of the Building Canada Plan. Transport Canada and Infrastructure Canada worked collaboratively with the provinces/territories to negotiate the Framework Agreements and to establish funding priorities under Building Canada. By the end of March 2008, seven bilateral Infrastructure Framework Agreements were signed with provincial/territorial governments. These agreements will ensure an integrated and coordinated approach to federal investments in infrastructure within each jurisdiction.

The resulting projects, in such areas as local roads, the core National Highway System, public transit, shortline railways, regional/local airports, and short sea shipping will improve the efficiency and reliability of Canada’s transportation system by expanding capacity that reduces bottlenecks and congestion and rehabilitating existing assets to improve their long-term sustainability. Some of the priority investments that have been announced include: $622 million from the BCF for the Toronto York-Spadina Subway Extension project; $64.2 million for capacity upgrades and safety improvements on the Trans-Canada Highway in the Kicking Horse Pass in British Columbia; and $25 million for the construction of the first phase of the 16-kilometre twinning project on Highway 104 outside Antigonish in Nova Scotia. For more information on Building Canada, visit:
http://www.buildingcanada-chantierscanada.gc.ca/index-eng.html.

Gateways and Trade Corridors

As part of Building Canada and modelled on the successful $1 billion Asia-Pacific Gateway and Corridor Initiative, Transport Canada announced the National Policy Framework on Strategic Gateways and Trade Corridors and developed the policy framework and program parameters for the new $2.1 billion Gateways and Border Crossings Fund. To ensure that federal funding from the GBCF is directed in a strategic and coherent manner, the National Policy Framework will help guide investment decisions, responding to unique geographic, trade and transportation opportunities in key regions. For additional information, visit: http://www.tc.gc.ca/GatewayConnects/NationalPolicyFramework/nationalpolicy.html.

Consistent with the National Policy Framework, in 2007, Transport Canada entered into Memoranda of Understanding (MOUs) with Ontario and Quebec for the development of an Ontario-Quebec Continental Gateway and Trade Corridor strategy, and with the Atlantic provinces for the development of an Atlantic Gateway strategy. The goal of these partnerships is to build upon world-class transportation systems that are key facilitators of international trade and economic growth and prosperity. The MOUs commit all parties to work collaboratively with the private sector and other stakeholders to identify key policy, regulatory, operational and marketing measures as well strategic infrastructure investments that will strengthen Canada’s competitive position in the rapidly evolving global marketplace. For more information, visit: http://www.continentalgateway.ca/index2.html and http://www.tc.gc.ca/GatewayConnects/Atlantic/AtlanticGateway.html.

To support these collaborative policy and infrastructure initiatives, the GBCF is a merit-based fund that will invest in nationally significant projects supporting international trade and integrated supply chains to facilitate the flow of goods and people between Canada and the rest of the world. As a demonstration of its commitment to the development of these gateway initiatives, the Government of Canada dedicated an initial $400 million for the new access road to the new Windsor-Detroit bridge crossing. The Canada-U.S.-Ontario-Michigan Border Transportation Partnership has continued to advance the development of a long-term strategy to improve the movement of people, goods and services across the busiest Canada-U.S. border crossing between Windsor and Detroit, and is in the final stage of the environmental assessment process. For additional information, visit http://www.continentalgateway.ca/windsor.html.

In addition to the development of these two new gateway and corridor initiatives, Transport Canada made significant progress in the implementation of the APGCI which was first announced by the Prime Minister in October 2006. By the end of fiscal year 2007-2008, the Government of Canada, in partnership with all four western provinces and various stakeholders, announced infrastructure projects worth over $2.3 billion, including federal contributions of over $800 million. These projects include road/rail grade separations and improved access to ports or inter-modal facilities to promote more efficient and seamless connections between the various modes of transportation. For descriptions of specific APGCI projects, see: http://www.tc.gc.ca/CanadasGateways/APGCI/projects.html.

Another notable achievement closely related to the APGCI, was the amalgamation of the three Canadian Port Authorities (CPAs) in the British Columbia Lower mainland: Fraser River, North Fraser and Vancouver. The new port is named the Vancouver Fraser Port Authority and re-branded as Port Metro Vancouver. Amalgamation is seen as a way for the CPAs to handle changing economic conditions and concomitant impacts on the transportation system thereby operating more efficiently.

Considerable efforts have been undertaken to advance international dimensions of the Gateway strategies. Transport Canada, together with the Department of Foreign Affairs and International Trade, organized stakeholder missions to the United States and a ministerial-level air services mission to China.

A range of efforts has also fostered cooperation with Canadian public and private organizations with their Chinese counterparts. Transport Canada and the Atlantic Canada Opportunities Agency organized a ministerial-led Atlantic Gateway mission to India to develop opportunities for global commerce through Canada’s Atlantic Gateway. All of these initiatives are part of a long-term effort to increase trade.

Public Transit Capital Trust

Budget 2008 committed $500 million in funding support for capital investments in public transit under the Public Transit Capital Trust 2008, as a means to reduce traffic congestion and greenhouse gas and other emissions. To implement this Trust, Transport Canada worked expeditiously with all the provinces and territories to ensure that plans for specific investments in public transit were announced publicly by March 31, 2008.

Inter-City Passenger Rail Service

The Government of Canada also demonstrated its continuing commitment to the revitalization of inter-city passenger rail services by announcing, in October 2007, a five-year $691.9 million funding commitment for VIA Rail Canada. This funding will improve the sustainability and reliability of passenger rail services in Canada and provide more frequent, faster, cleaner and safer services along the Quebec City-Windsor Corridor.

Transportation Infrastructure Projects

In 2007-2008, Transport Canada continued to implement infrastructure projects totaling $4.5 billion and leveraging $12 billion in infrastructure improvements under funding programs created prior to the BCP, such as the Canada Strategic Infrastructure Fund (CSIF), Border Infrastructure Fund (BIF), the Outaouais Road Agreement and the Strategic Highway Infrastructure Fund (SHIP).

• Under CSIF, Transport Canada has been delivering large-scale projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians.
• Border infrastructure is critical to Canada’s growing economic and trade relationship with the United States. Under the $600 million BIF, Transport Canada delivers projects that directly benefit Canadians by reducing congestion, enhancing infrastructure capacity, and enhancing safety and security at border crossings.
• The Outaouais Road Agreement contributes to highway improvements in the province of Quebec to enhance overall efficiency, promote safety, and encourage regional and industrial development and tourism.
• SHIP was created to renew and enhance Canada's highway infrastructure, focusing on projects of national scope.

Port Divestiture

The Port Divestiture Program (PDP) serves to increase the efficiency of the transportation system while also reducing costs to taxpayers.

By transferring the ownership of ports to local interests, the new owners are able to make operational decisions in a manner more responsive to local needs with lower costs and better service, thus improving the efficiency of the transportation system. Since the inception of the program, 472 (85 per cent) of the eligible ports have been divested at a saving of $531 million to Canadian taxpayers. The program was extended until 2012 to facilitate the further divestiture of the remaining regional/local and remote ports.

The evaluation and audit results of the Port Divestiture Program concluded that the program was consistent with the department’s overall strategic outcomes. For more information on port divestiture, visit: http://www.tc.gc.ca/programs/ports/transferinventory.htm.

Airport Infrastructure

An agreement on airport rent was reached with the Greater Toronto Airports Authority. This was the last step in implementing the Airport Rent Policy, which aims for a balance between a fair return to taxpayers and the financial viability and competitiveness of the air industry.

The Airports Capital Assistance Program (ACAP) plays an important role in contributing to efficient transportation by providing funding assistance for projects at non-federal airports which maintain or increase safety, extend the life of airport assets, reduce operating costs and increase the use of environmentally sustainable practices. In 2007-2008, ACAP assisted 31 airports by financing 33 projects, all of which were directly related to air safety. Announcements under the program totaled more than $43.5 million.

Innovation

Innovative research and development projects included Intelligent Transportation Systems (ITS). In this past year, funding provided by the ITS component of the Strategic Highway Infrastructure Program permitted work to be undertaken on some 20 projects on ITS Research and Development. These projects included technology for improving the efficiency of commercial vehicle operations, a program of research studies at three University Centres of Excellence for developing ITS expertise and skills capacity, and projects relating to road weather forecasting, traveler information, and transit research initiatives. For more information, see:
http://www.its-sti.gc.ca/en/menu.htm.

Transport Canada took an innovative approach collaborating with the provinces and territories assessing the full costs of transportation in Canada. This multi-year, multi-phase project yielded a new analytical tool that provides policy-makers with a detailed valuation of the financial and social costs of all modes of transportation in Canada. A synthesis report entitled Estimates of the Full Costs of Transportation in Canada provides an overview of the project and its results. See the following website: http://www.tc.gc.ca/pol/EN/aca/fci/menu.htm.

The department played a lead role in the federal/provincial/territorial Skills Task Force. The Skills Task Force submitted a Compendium of Successful Skills Initiatives, a report on Trends and Patterns in Skills and Labour Shortages, and a Diagnostic of Transportation Skills Development Issues in Canada to the Council of Deputy Ministers Responsible for Transportation and Highway Safety. Both the Council and the department have distributed these reports to stakeholders to promote cooperation in implementing the recommendations of the reports.

Performance Measurement

Efficiency in the transportation system may be measured by total factor productivity, transportation prices, output and the financial performance of selected carriers or groups of carriers.

Transport Canada develops a total factor productivity indicator for each mode taking into consideration factors such as labour, fuel and capital expenditures. Total factor productivity (TFP) indicators are derived using data either collected by Transport Canada or provided by Statistics Canada or other reliable sources. The latest data show that, in 2006, Transport Canada’s TFP measure increased by 2.5 per cent in the rail freight industry (Class I) because of labour productivity gains, but decreased by 1.9 per cent in the airline industry due to factors such as rising fuel prices and aging fleets. However, TFP increased by 9.6 per cent in the previous year in the airline industry. TFP was up by 0.1 per cent for VIA Rail mainly the result of increased productivity of fuel, but down by 0.5 per cent for public transit due to capital and fuel productivity declines. Productivity estimates for the trucking and the marine sectors could not be developed due to data issues.

TFP in transport has largely outpaced business sector productivity over the past twenty years. Industry deregulation and technological advances have largely contributed to those gains. However, system congestion and urban sprawl threatens to undermine productivity gains achieved in Canada’s transport sector over the years. While business sector TFP has been virtually flat over that period of time, rail freight productivity has doubled while air carrier, intercity passenger rail and trucking productivity have increased by nearly 50 per cent over a 20-year period.

In its Transportation in Canada 2007 Annual Report (http://www.tc.gc.ca/pol/en/Report/anre2007/index.html), Transport Canada notes that rail freight prices increased by 3.5 per cent in 2006 compared to 2005. Other sectors also saw price increases: prices increased by 3.6 per cent for air, by 5.5 per cent at VIA Rail, and by 1.4 per cent for public transit. Increasing fuel costs continue to put pressure on prices charged to passengers and shippers. Despite the price increases, output (generally measured in terms of passenger-kilometres or tonne-kilometres) also mostly increased in 2006. Output increased by 3.6 per cent in the rail freight industry, 5.3 per cent in the air industry, 3.2 per cent for public transit. However, output declined by 1.3 per cent for VIA Rail.

The financial performance of selected carriers or groups of carriers is also being monitored by Transport Canada, which derives an operating ratio or a cost recovery ratio (in the case of publicly assisted carriers such as VIA Rail and transit authorities) for those transportation undertakings it monitors. This information is available from the statistical Addendum to the Annual Report, which may be consulted at http://www.tc.gc.ca/pol/en/report/anre2007/9_Addendum.html.

Benefits to Canadians

Working towards an efficient transportation system that contributes to Canada’s economic growth and trade objectives via policies, programs and infrastructure in support of a market-based framework has demonstrated tangible benefits to Canadians. Canada’s transportation system is on the move with improvements to its enabling legislative, regulatory framework, investments in gateways and corridors, support to transportation infrastructure, and partnership projects with external stakeholders.

Transport Canada works with other public and private organizations, academia and non-government organizations to increase the flexibility and performance of the Canadian transportation system and its support of innovation, research and development, technology applications and skills development initiatives.

Lessons Learned

Canada’s reliance on trade impacts directly on the nation’s prosperity and well-being; and the Government of Canada plays a key leadership role in the development of an integrated transportation network linking importers and exporters to key transportation gateways and corridors. As an exporting nation, Canada needs an integrated and efficient national transportation system that supports and promotes trade, especially for new and emerging markets. Transport Canada helps ensure seamless connections between the modes of transportation, in order to promote a competitive advantage for Canada in transportation relative to other countries.

2.2   Strategic Outcome:  A safe and secure transportation system that contributes to Canada’s social development and security objectives

Program Activity	Financial Resources ($ thousands)			Human Resources (Full-time Equivalents)
	Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system	$641,525	$663,420	$566,177	4,169 FTEs	3,999 FTEs	170 FTEs

2.2.1    Program Activity:  Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system

In an inter-dependent and often insecure world, Transport Canada delivers results towards ensuring a safe and secure transportation system that contributes to Canada’s social development and security objectives. 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.

The Program Activity linked to this Strategic Outcome covers policies, rule-making, monitoring and enforcement, and outreach in support of a safe and secure transportation system. Across all sectors and modes of transportation, Transport Canada supports a safe and secure transportation system through the development of national legislation, regulations and standards, and monitoring, testing, inspection, enforcement, education and developmental activities to promote safety and security.

Achievements

Transport Canada’s achievements under this Program Activity include: Safety and Security Management Systems, Legislative and Regulatory Harmonization, Security and Prosperity Partnership, Collaboration, Air Cargo Security, Passenger Protect Program, Transit-Secure and Marine Security.

Safety and Security Management Systems

In April 2007, the department adopted Moving Forward – Changing the Safety and Security Culture – A Strategic Direction for Safety and Security Management, which outlines more than a directional change but a true root and branch transformation that the department is embarking upon. The implementation of SMS/SeMS is a coordinated effort among the aviation, marine and rail safety and security groups. SMS and SeMS will move Transport Canada from an inspection role to a monitoring, auditing and oversight role. For more information on SMS/SeMS, please visit http://www.tc.gc.ca/tcss/StrategicPlan/menu.html.

The following illustrates how Transport Canada is putting SMS/SeMS into practice:

• According to its vision, Transport Canada is aiming to implement SMS in all regulated civil aviation organizations by 2010. Guidance material for large and small operators was published in 2007-2008. For more details, please visit the web site http://www.tc.gc.ca/CivilAviation/SMS/implementation.htm.
• Transport Canada worked with the marine industry to identify opportunities to utilize a Safety Management System philiosophy in the continued enhancement of the marine safety and security regime in Canada. In 2007-2008, Marine Safety initiated the development of a Domestic Safety Management (DSM) program. Under this regime, qualified persons or other organizations can be delegated certain statutory functions currently performed by Transport Canada Marine Safety Inspectors including inspections of ships and issuance of Canadian maritime documents.
• The Railway Safety Management Systems (RSMS) regulations that came into effect on March 31, 2001, require railway companies subject to the Railway Safety Act to implement and maintain safety management systems. Oversight of the implementation of SMS in the rail industry is carried out through the conduct of rail safety audits.
• The department conducted research projects in aviation, marine and rail security. This included a benchmarking exercise to assess the state of readiness of industry to move towards a SeMS approach. Twenty-one project partners were involved in the action research. SeMS education and awareness sessions and information gathering sessions were delivered across all sectors with internal and external stakeholders. The actions taken and progress made in 2007-2008 directly support the department’s expected result of "improved commitment by industry to adopt SeMS". Also, the international community has been very engaged in the SeMS project, which ensures that the concept is interoperable with international plans and practices.

Legislative and Regulatory Initiatives

Within this Program Activity, regulatory frameworks are developed and include the use of policies, guidelines, regulations, and standards to promote safety and security for Canadian and travellers in Canada, and for the transportation industry. The following are achievements with respect to legislative initiatives:

• On July 1, 2007, the Canada Shipping Act, 2001(CSA 2001) replaced the Canada Shipping Act (CSA) as the principal legislation governing safety in marine transportation and recreational boating, as well as protection of the marine environment. Eleven regulations came into effect at the same time as the new Act.
• In December 2006, the Minister of Transport, Infrastructure and Communities announced the review of the Railway Safety Act (RSA). In March 2008, the Panel’s report, Stronger Ties: A Shared Commitment to Railway Safety, was publicly released. The first steps in implementing the more than 50 recommendations to improve rail safety are underway with the creation of a new rail safety consultative body, the Advisory Council on Railway Safety (ACRS). See
  http://www.tc.gc.ca/tcss/RSA_Review-examen_LSF/FinalReport/chapter1.htm.

Regulatory Harmonization

Transport Canada, as a major regulatory department, is committed to implementing the Cabinet Directive on Streamlining Regulations. A higher level of regulatory efficiency will be achieved by the adoption and mutual recognition of international standards and the enforcement of regulations of other orders of government.

Transport Canada is working towards harmonization in the following areas:

• To reduce the risk of mid-air collisions between airplanes in Canadian airspace, Canadian commercial aircraft will be equipped with airborne collision avoidance systems that meet U.S. Federal Aviation Administration (FAA) requirements.
• The validity periods of most Canadian aviation medical certificates will meet the validity periods of similar International Civil Aviation Organization documents. This contributes to the harmonization of safety standards for the issuance of licenses and permits for Canadian pilots.
• Transport Canada renewed and updated the Alternative Security Arrangement with the U.S. Coast Guard, adding provisions to harmonize and facilitate small passenger vessel movements. These amendments will reduce risk to Canada’s transportation system, increase recognition of Canada’s leadership role in marine security, increase ability to provide proactive and responsive programs, further streamline and harmonize international marine security programs, and heighten public confidence in the safety and security of the transportation system.
• A Memorandum of Cooperation was concluded with the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and work continues to harmonize regulations for motor vehicle safety, promote greater international harmonization of technical requirements, coordinate regulatory research, and develop plans and conduct joint analyses to assist in the development of motor vehicle safety regulations.

Security Prosperity Partnership

Transportation security is a key component of the Security Prosperity Partnership (SPP). In 2007, Transport Canada continued to collaborate effectively with Canadian stakeholders, the United States and Mexico to develop and implement North American transportation security strategies, including aviation security, marine security, emergency preparedness and critical infrastructure protection.

• Progress was achieved on the harmonization of aviation security standards within North America through collaboration with the U.S. and Mexico on an initiative that will identify options for eliminating the re-screening of hold baggage – a key deliverable of the SPP.
• Under the SPP, Transport Canada specification tanks and containers, i.e. highway tanks, were accepted for use as equivalent to American tanks and containers in October 2007 by the U.S. Pipeline and Hazardous Materials Administration. This will create a level playing field for container manufacturers and shippers in both countries and is important for Canadian manufacturers in order to maintain their competitiveness.

Collaboration

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. This standard will harmonize Canadian requirements for the transportation of dangerous goods in portable tanks with international requirements.

In addition to regulatory harmonization for implementing safety and security objectives, Transport Canada collaborates with many stakeholders in industry, government, the research and development community and key domestic and international partners in the following ways:

• Securing an Open Society: Canada’s National Security Policy (April 2004) http://www.publicsafety.gc.ca/pol/ns/secpol04-eng.aspx.
• Improving intelligence and security information sharing with various transportation-related industry stakeholders and partners, nationally and regionally.
• Advancing transportation security plans for the 2010 Olympic Games in Vancouver-Whistler.

Air Cargo Security

Transport Canada designed and pilot tested various improvements to air cargo security in relation to both supply chain security and air cargo screening that are consistent with international best practices.

Communication products and information sessions are being developed to address a lower than expected level of stakeholder awareness and voluntary participation in air cargo security pilot projects. For more information regarding air cargo security, visit http://www.tc.gc.ca/vigilance/acs-sfa/aircargosecurity/home/index.shtml.

Passenger Protect Program

In June 2007, Transport Canada implemented the Passenger Protect Program. The program is designed to prevent passengers, who have been assessed to be an immediate threat to aviation security, from boarding aircraft. For more information on the Passenger Protect Program, visit http://www.passengerprotect.gc.ca/.

Transit-Secure

Rail and urban transit security in Canada was enhanced through investment in Transit-Secure, a three-year passenger rail and urban transit security contribution program, targeting high risk commuter rail and urban transit operators to accelerate the implementation of new and security measures. Under this program, 278 projects were approved for funding totaling $77 million.

Marine Security

The security at Canada’s ports and marine facilities has been significantly enhanced under the Marine Security Contribution Program (MSCP), a $115 million commitment to assist ports and other marine facilities with security enhancements. In 2007, the program received approval to expand participation to include domestic ferries for a two-year period.

Since implementation of the Marine Transportation Security Clearance Program (MTSCP) approximately 8,626 transportation security clearances have been processed thereby ensuring the integrity of major Canadian ports and marine facilities.

Transport Canada’s investment in marine security through Marine Security Operations Centres (MSOCs) promotes greater coordination among partners and provides security, law enforcement and first responder communities with enhanced knowledge of marine threats. MSOCs have been established on the Atlantic and Pacific coasts. In February 2008, the Government of Canada announced $74.5 million over 5 years with $20 million ongoing for the establishment of a permanent MSOC for the Great Lakes and St. Lawrence Seaway.

Performance Measurement

Understanding Transport Canada’s performance results in safety and security is determined by a number of factors. For instance, the department’s efforts to create a safe and secure transportation system is reflected by the degree to which Canadians perceive the overall safety of passenger transportation. A significant majority of Canadians, 96 per cent, have expressed confidence (moderate to high) that Canada’s air transportation system is safe. The same percentage of Canadians (96 per cent) also rate the marine and rail transportation system as moderate to very safe and secure. As for the road transportation system, 92 per cent of the public considers it to be moderately to very safe and secure. The following represents additional safety data which was drawn from the latest Transport Canada Annual Report and are indicators of Transport Canada’s impact on the safety and security of the transportation system.

For example in 2007:

• There were 7.1 per cent more aviation accidents (255) than in 2006 (238). The 2007 accident rate (preliminary data) was 5.8 per cent per 100,000 hours flown, which is almost identical to the 2006 rate of 5.7 but below the 2002-2006 five-year average of 6.2. There were 42 air fatalities in 2007 compared with 47 in 2006.
• There were 3.5 per cent fewer reported rail accidents (1,330) than in 2006 (1,378). There were also fewer rail fatalities, 86 compared with 94 in 2006.
• A record low was set for the fourth consecutive year in the number of Canadian vessel shipping accidents aboard ship (392). This figure represented a 9.4 per cent reduction from the 2002-2006 average.
• The latest available statistics for road casualty collisions (2006) show little change from 2005 (–2.2 per cent), while the number of fatalities decreased 0.4 per cent and injuries dropped 2.5 per cent.

Further information on the state of transportation in Canada may be found at http://www.tc.gc.ca/pol/en/report/anre2007/3_safety_security.html.

Benefits to Canadians

Working towards a safe and secure transportation system has demonstrated tangible benefits to Canadians. The overwhelming majority of Canadians have full confidence in their transportation system. This is a bench strength that drives future economic prosperity for Canada and its citizens. Canadians benefit further from the fact that safety is an integral component of all project submissions supported by the department.

Lessons Learned

One of the lessons learned by measuring the performance of this Program Activity is that safety and security are interdependent and intrinsic to other Strategic Outcomes and Program Activities. For example, safety is an integral component of all transportation infrastructure projects. Safety audits identify hazards within the existing transportation system or within potential construction. Given the interconnectedness of the transportation network, construction within Canada is designed to ensure safety of not just the project under consideration, but how it allieviates points of concern within the surrounding system.

As Transport Canada continues to promote awareness, engage the public and stakeholders, and grow its leadership capacity in the areas of safety and security management systems, this in turn influences our ability to provide proactive and responsive programs and mitigate risks to the transportation system. We are building capacity with our partners to deliver and action new safety and security regimes with a view to increasing, not merely maintaining, the safety and security of the travelling public and goods that move between modes of transportation. This is part of a larger cultural change which can only be realized over the long term.

2.3   Strategic Outcome:  An environmentally responsible transportation system that contributes to Canada’s sustainable development objectives

Program Activity	Financial Resources ($ thousands)			Human Resources (Full-time Equivalents)
	Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
Policies and Programs in support of sustainable development	$125,013	$242,318	$145,529	278	287	9 FTEs

2.3.1    Program Activity:  Policies and Programs in support of sustainable development

Transport Canada’s third Stategic Outcome is an environmentally responsible transportation system that contrubtes to Canada’s sustainable development objectives.

Under this Program Activity, the department is developing and implementing programs and policies to protect the natural environment and to achieve a more sustainable transportation system in Canada.

This Program Activity aims to enhance the use of sustainable transportation infrastucture in communities; improve fuel efficiency and reduce emissions of air pollutants and greenhouse gases from the movement of goods; and improve fuel efficiency and reduce emissions from the personal vehicle fleet.

Achievements

Achievements under this category include Regulations, Voluntary Agreements, EcoTransport Strategy, EcoMobility, EcoTechnology, EcoAuto, EcoFreight, and National Aerial Surveillance Program.

Regulations

The Government has committed to regulating fuel efficiency for new cars and light trucks that will be sold in Canada beginning with model-year 2011 vehicles. The Government announced, under a Notice of Intent, that it would regulate fuel efficiency under the Motor Vehicle Fuel Consumption Standards Act. The Government of Canada signed a Memorandum of Cooperation with the United States on April 26, 2007 to share information on fuel efficiency. Informal consultations on the development of the regulations were conducted throughout 2007 and formal consultations were conducted between January 17, 2008 and March 15, 2008.

The department will also ensure that international emissions standards, to be developed by the international organizations mandated to address emissions from the marine transportation and aviation sectors, are considered domestically. In the marine sector, the Government is adopting current international standards established by the International Maritime Organization (IMO) for controlling emissions of air pollutants from ships. In 2007-2008, Transport Canada commenced the drafting of regulations under the Canada Shipping Act, 2001 and is participating in the work of the IMO on greenhouse gases.

The Government is also supporting the development of international standards and recommended practices with the International Civil Aviation Organization (ICAO) concerning the emissions from aviation sources. In 2007-2008, Transport Canada participated in a newly created Group on International Aviation and Climate Change within ICAO.

Voluntary Agreements

Transport Canada is working with transportation associations on voluntary agreements and MOUs to further promote emissions reductions in transportation.

For example, a voluntary MOU was signed in May 2007 with the Railway Association of Canada, (RAC) to address emissions of criteria air contaminants (CAC) and greenhouse gases from railway locomotives operated by Canadian railway companies in Canada. The first annual report under the MOU is available at: http://www.tc.gc.ca/programs/environment/ecofreight/voluntaryagreementsrail-eng.htm.

Programs

Transport Canada plays a lead role in climate change and clean air mitigations as they relate to transportation. Under the ecoTransport Strategy, the department will provide over $100 million in funding towards new initiatives in clean transportation.

The $10 million ecomobility Program works with municipalities to help cut urban-passenger transportation emissions by encouraging commuters to choose public transit or other sustainable transportation options. This initiative will help develop programs, services and products that improve sustainable transportation options, such as transit, carpools, cycling and walking, in urban areas. For more information, see http://www.tc.gc.ca/programs/environment/ecomobility/menu-eng.htm.

The ecotechnology for Vehicles (eTV) Program tests and promotes advanced environmentally friendly vehicle technologies, while building partnerships with the automotive industry to address potential barriers to the introduction of new technologies in Canada. The program aims to accelerate the introduction of advanced vehicle technologies that reduce greenhouse gas emissions, pollutants and fuel consumption into the Canadian fleet of light-duty vehicles. The program showcased vehicles and technologies at events across the country providing over 20,500 Canadians with information on advanced environmental technology for vehicles. For further program information, visit: http://www.tc.gc.ca/eTV.

The ecoauto Rebate Program encourages Canadians to buy or enter into a long-term lease (12 months or more) for new fuel efficient vehicles by offering rebates ranging from $1,000 to $2,000 toward the purchase or lease of more fuel efficient vehicles that meet the required criteria. See http://www.tc.gc.ca/programs/environment/ecotransport/ecoauto.htm, for more information.

The ecofreight Program is aimed at reducing the environmental and health effects of freight transportation through accelerated adoption of emissions-reducing technology. There was strong demand for the Freight Technology Incentives Program and the Freight Technology Demonstration Fund from all modes and regions. For more information on these initiatives, visit http://www.ecoaction.gc.ca/ecofreight.

Aerial Surveillance

Transport Canada helps to protect the marine environment and the health of Canadians by reducing the pollution of water from marine transportation sources. The National Aerial Surveillance Program (NASP) is the primary tool for detecting ship-source pollution in waters under Canadian jurisdiction. The number of patrol hours has increased by 97 per cent from 1,307 hours in 2003-2004 to 2,578 hours in 2007-2008. Two of the three pollution patrol aircraft were modernized with state of the art surveillance equipment, which has resulted in a more efficient detection, investigation and evidence gathering capability. Further information on this and other Health of the Oceans Initiatives at Transport Canada is found at http://www.tc.gc.ca/mediaroom/releases/nat/2007/07-h185e.htm - bg.

Performance Measurement

Measuring progress towards a sustainable transportation system includes tracking trends in key areas, such as the level of greenhouse gas emissions of the transportation sector and the level of air pollutants produced by the transportation sector, among others. With respect to GHG emissions trends, transportation is the second largest source of greenhouse gas emissions in Canada representing 26 per cent of total GHG emissions. Of the total transportation emissions in 2006, on-road passenger emissions accounted for 46 per cent and on-road freight emissions accounted for 24 per cent.

GHG emissions from on-road passenger vehicles increased by roughly 17.6 megatonnes (Mt) or 25 per cent between 1990 and 2006, while emissions from on-road frieght vehicles increased by 17.2 Mt or 60 per cent during the same period. In comparison, between 1990 and 2006, domestic aviation and marine emissions increased by 2.0 Mt and 0.8 Mt respectively (31 per cent and 16 per cent respectively) while rail emissions have declined by about 1 Mt or 14 per cent.

While GHG emissions from the transportation sector continue generally to increase, air pollution emissions, such as fine particulate matter, sulphur oxides, nitrogen oxides and volatile organic compounds, have shown a steady decline due to regulatory initiatives and stock turnover.

Further data are available in the Transportation in Canada 2007 annual report available at http://www.tc.gc.ca/pol/en/report/anre2007/4_environment.html.

Benefits to Canadians

The work in this Program Activity has focused on developing and implementing programs and policies to protect the natural environment and create a more sustainable transportation system in Canada. As a result, Canadians will benefit from a transportation system that is less intensive in its emission of GHGs and air pollutants and one that is protected from discharges of transportation pollutants.

Lessons Learned

In order to better measure the benefits to Canadians of Transport Canada’s programs, the department has developed a clear articulation of expected results, how these will be achieved and how they will contribute to reducing air pollutant and GHG emissions. The results stemming from these programs will be measured through indicators such as the numbers and types of technologies that are purchased or installed throughout the system and the number of organizations engaged in emission-reducing activities.

A stronger measurement approach provides greater accuracy in the monitoring of sustainable transportation initiatives funded by the department’s programs and the extent to which they increase the uptake of energy efficient technologies and best practices in the transportation sector.

This approach will also facilitate a more transparent, accurate and timely reporting of the program’s results in the context of Canada’s Clean Air Agenda.

A lesson learned in defining a measurement approach is the importance of collecting adequate data across all transportation modes to support measurement methodologies.

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