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Please note that a correction was made to both the English and French version of the report (2.1.2 Gateways and Corridors, Performance Status and Summary). The word "increased" has been replaced with the word "contracted".

Minister's Message

The Honourable Chuck Strahl, P.C., M.P., Minister of Transport, Infrastructure and CommunitiesAs Canada’s new Minister of the Transport, Infrastructure and Communities (TIC) Portfolio, I am pleased to present the Departmental Performance Report for 2009-2010.

Canada entered the global economic crisis with balanced budgets, decreasing debt and taxes, a strong financial sector and robust economic policies. Transport Canada worked with our partners at all levels of government to help successfully implement Canada's Economic Action Plan (EAP), injecting nearly $500 million of stimulus money into the economy. The result is a more modern transportation infrastructure.

The department continues to pursue long-term policy, planning and strategic investments in transportation systems. Our Gateway approach helps Canada respond to evolving global trade opportunities for international commerce. Our work continues on the Asia-Pacific Gateway and Corridor Initiative; gateway strategies for the Atlantic and for Central Canada; and the new Windsor-Detroit bridge crossing, with our United States, Michigan and Ontario partners.

Our transportation safety record remains the envy of our partners worldwide. Our efforts to modernize and harmonize standards, policies, programs and regulations are improving safety across all modes. Foremost among these efforts is the implementation of Safety Management Systems, an innovative approach to managing safety issues before they become accidents by inspiring a stronger safety culture with operators and users.

From a security perspective, the government responded quickly after the December 25th, 2009 attempted terrorist bombing of a Northwest Airlines flight to Detroit. New regulations enhanced the security of the travelling public. The federal government provided $1.5 billion to CATSA and Transport Canada, with another $95.7 million to enhance air cargo security over 5 years. Transport Canada also worked closely with transportation infrastructure owners and operators and our international partners to enhance transportation safety and security across all transportation modes during the 2010 Olympic and Paralympic Winter Games in Vancouver and Whistler.

Transport Canada is actively contributing to a clean transportation system that helps preserve our environment, protects the health of Canadians and furthers our economic prosperity. Transport Canada continued to implement programs under the ecotransport strategy; supported the development of international standards and recommended practices for the aviation and marine modes. The department also protected the marine environment by reducing the pollution of water from transportation sources; and, exercised environmental stewardship of its lands and activities.

Our new Corporate Governance Structure enhances our decision-making and accountability. We support and value our employees through our commitment to Public Service Renewal and best management practices.

I am proud of this department’s achievements on behalf of Canadians.

The original version was signed by

The Honourable Chuck Strahl, P.C., M.P.
Minister of Transport, Infrastructure and Communities

Section I – Departmental Overview

1.1 Summary Information

1.1.1 Raison d’être

Transport Canada is responsible for the Government of Canada’s transportation policies and programs. The Canada Transportation Act requires that the department monitor the ongoing health of the national transportation system. As such, while not directly responsible for all aspects or modes of transportation, Transport Canada plays a leadership role in ensuring that all parts of the transportation system work together effectively.

Our Vision: A transportation system in Canada that is recognized worldwide as safe and secure, efficient and environmentally responsible.

The department’s vision of a sustainable transportation system is one that integrates and balances social, economic and environmental objectives. This vision is guided by the following principles:

  • highest possible safety and security of life and property – guided by performance-based standards and regulations when necessary;
  • efficient movement of people and goods to support economic prosperity and a sustainable quality of life – based on competitive markets and targeted use of regulation and government funding; and
  • respect for the environmental legacy of future generations of Canadians – guided by environmental assessment and planning processes in transportation decisions and selective use of regulation and government funding.

1.1.2 Responsibilities

Transport Canada employs 5,416 people at its headquarters and in five regional offices across the country and is part of the Transport, Infrastructure and Communities portfolio. Under this portfolio (Figure 1 below), the Minister of Transport, Infrastructure and Communities heads a complex organizational structure that includes Transport Canada, Infrastructure Canada, three agencies operating at arm’s length from the department, 16 Crown corporations (e.g. VIA Rail, Marine Atlantic Inc.) and over 40 shared-governance organizations (e.g. Port of Montreal, Vancouver International Airport). The Minister is responsible for administering over 60 statutes.

This portfolio brings together key organizations, policies and programs to provide an integrated focus on issues affecting Canada’s transportation system and public infrastructure, including the following:

  • Strong national policies to improve Canada’s economy, the environment, safety and security;
  • Legislation and smart regulations to protect the public interest;
  • Targeted and efficient programs in support of national objectives and results;
  • National leadership through extensive networks and partnerships with governments, experts and stakeholders; and
  • Knowledge, research and expertise to deliver innovative approaches.

Figure 1

Transport, Infrastructure and Communities Portfolio

View the text version of the portfolio overview.

1.2 Departmental Performance

The following provides key progress made in fiscal year 2009-2010 with respect to Accomplishments, Program Activity Architecture (PAA), Performance Measurement Framework, and Corporate Integrated Business Plan.

Key 2009-2010 Accomplishments

To support Canada’s Economic Action Plan (EAP), the department employed a focused two-pronged strategy of swift implementation and strong due diligence. Specific steps were taken to ensure that the EAP remained a high priority in the department and that there were no administrative bottlenecks to slow its implementation. As a result, all of the one-year initiatives that received funding for 2009-2010 were completed on time and on budget, and the EAP was delivered with top-quality oversight. Internal audits and assessments of the management controls were also undertaken. The audit findings confirm that the department is indeed well-positioned to continue implementation of the EAP in 2010-2011.

Transport Canada worked with many partners to develop and implement gateway strategies, invest in strategic infrastructure, as well as pursue partnerships in support of the innovation agenda. Progress has been made towards creating a more efficient, reliable and seamless transportation system in Canada. Several international air agreements were completed and steps were taken towards increasing foreign investment in Canadian air carriers. The department also continues to work in collaboration with territorial governments to identify the future transportation needs to support the growing demand in the North over the next 20 years.

Transport Canada also undertook a number of initiatives that contributed to Canada’s environmental objectives. To conserve the natural environment and contribute to a more sustainable transportation system, the department fostered the use of sustainable transportation approaches in communities across the country and encouraged improvements in fuel efficiency and in the reduction of air pollutants and greenhouse gas emissions from the movement of goods and people.

The department also contributed significantly to international dialogue on emissions standards and practices and worked to ensure that international standards within the marine and aviation sectors are considered domestically. Furthermore, the department partnered with industry to test and promote advanced vehicle technologies and contributed to the development of procedures and project agreements to govern environmental assessment and regulatory changes under the Canadian Environmental Assessment Act as an important contribution to the streamlining of federal major project regulatory approvals.

In June 2010, amendments to the Railway Safety Act were tabled in Parliament under Bill C-33, the Safer Railways Act. Nearly $5 million was invested in rail safety initiatives, such as hiring new inspectors to improve regulatory oversight, establishing a rail safety secretariat to improve communications and consultations, purchasing two new railway track assessment vehicles to monitor track safety and funding several research projects. The department also invested over $4 million in 57 grade crossing improvement projects across Canada. The federal review process for applications under the Navigable Waters Protection Program was streamlined through amendments to the Navigable Waters Protection Act (NWPA) and progress was made in advancing Safety Management Systems (SMS) in aviation and rail.

The attempted bombing of Northwest Airlines flight 253 on December 25th, 2009 and the 2010 Olympic and Paralympic Winter Games in Vancouver and Whistler again demonstrated the importance of maintaining and further enhancing the transportation sector’s capabilities to detect, prevent and respond to ongoing security threats. Transportation security is a priority for the department and in support of this, significant investments continue to be made. Most recently, Budget 2009 announced new funding of $355 million to the Canadian Air Transport Security Authority (CATSA) to strengthen and improve the efficiency of airport security screening operations and technology. Transport Canada continued to enhance the Air Cargo Security Program through the development of an enhanced regulatory regime, the assessment and introduction of new screening technology and the strengthening of the department’s relationship with the United States and key international partners.

Transport Canada has aligned its governance with its new PAA, resulting in improved strategic decision-making that also ensures inclusive and horizontal discussions and considerations of policy, programs, and regulatory and management issues.

Transport Canada’s portfolio governance was enhanced through improved coordination and management of the Minister’s portfolio, which now includes 16 Crown corporations, 3 agencies and 2 departments.

Program Activity Architecture (PAA)

The 2009-2010 Report on Plans and Priorities (RPP) detailed Transport Canada’s plans, priorities and expected results against the new Program Activity Architecture (2009-2010 PAA). The new PAA clearly reflects the department’s mandate and vision, and emphasizes the importance of the department’s security mandate as distinct from its safety mandate. The revised Strategic Outcomes and Program Activity Architecture (2009-2010 PAA descriptions) strengthen Transport Canada’s ability to allocate resources, monitor results and realign spending to the highest priority programs (see section 3.4 for PAA Crosswalk). In 2006-2007, the department had over 180 programs that were reduced to 150 in 2007-2008 and redesigned in 2009 to four Strategic Outcomes and 16 Program Activities.

In addition, the new PAA structure to implement the Management, Resources, and Results Structure (MRRS) Policy contributes to the broader Government of Canada outcome areas of strong economic growth, a fair and secure marketplace, an innovative knowledge-based economy, a clean and healthy environment and a safe and secure Canada (Figure 2 below).

Figure 2

Government of Canada Outcome Areas

Text version

Performance Measurement Framework

Transport Canada’s Performance Measurement Framework is under review, including its performance indicators and targets. Preparatory work to review and elaborate the Performance Measurement Framework for all levels of Transport Canada’s PAA commenced in December 2009, through a series of workshops with all Strategic Outcome (SO) planners and many program managers.

Revisions made to the Performance Measurement Framework in February 2011 will be reflected in the 2012-2013 RPP, the goal of which is to have a stable performance measurement framework for the next few years. It is important to note that the 2012-2013 Departmental Performance Report will be the first report to assess performance based on the revised and improved indicators and targets.

Corporate Integrated Business Plan

Transport Canada’s Corporate Integrated Business Plan (IBP) is underway and expected to be completed in Fall 2010. The IBP will link components between Internal Services and Programs that will enable the department to improve program delivery, make adjustments where required in order to meet strategic results, and improve monitoring and reporting on progress.

1.3 Operational and Management Priorities

The 2009-2010 Report on Plans and Priorities (RPP) identified four operational priorities [1] and two management priorities [2]. Transport Canada made significant progress on these priorities, as detailed below.

Operational Priorities
Advancing Trade and Competitiveness through the Transportation System
Type [3] Ongoing
Status Met annual commitment
Linkages to Strategic outcome and program activity/activities SO1 An Efficient Transportation System
PA 1.1 Transportation Marketplace Frameworks
PA 1.2 Gateways and Corridors
PA 1.3 Transportation Infrastructure

2009-2010 Accomplishments

Transportation Infrastructure:

  • Under the new streamlined federal approval process, a total of 19 projects worth close to $3.9 billion and over $1.2 billion in federal contributions were announced under the Building Canada Fund. As well, a total of 13 contribution agreements were signed.
  • Transport Canada has launched the Northern Transportation Systems Assessment to determine what transportation infrastructure would be required to support the growing demand in the North over the next 20 years.

Gateways and Corridors:

  • Significant progress was made on infrastructure investments and in deepening international partnerships under the Asia-Pacific Gateway and Corridor Initiative.
  • Transport Canada continued to work with the provinces on developing and implementing the Continental and Atlantic Gateways Strategies.
  • In 2009, Canadian and American environmental approvals were granted for the most important infrastructure project in the busiest trade corridor in North America, the new Detroit River International Crossing.

Transportation Marketplace Frameworks:

  • Transport Canada signed the Canada-European Union Air Transport Agreement in December 2009.
  • The Canada Transportation Act was amended to allow for increased foreign investment in the airline industry and regulations are currently being developed.
  • Federal financing was provided to Air Canada as part of a private sector-led loan consortium.

Work in progress

  • Discussions continue with the State of Michigan to determine the necessary agreements that will be required between the bi-national partners to ensure the fully coordinated implementation of the Windsor-Detroit crossing system.
  • The regulatory amendment process for increased foreign investment in the air sector is underway. The new provisions will be brought into force once regulations are adopted. The Canada Transportation Act will continue to require Canadian majority control of Canadian air carriers.
  • In collaboration with the governments of Yukon, the Northwest Territories and Nunavut, work is continuing on the Northern Transportation Systems Assessment.
Advancing the Clean Air Agenda Through New Transportation Emission Regulations
Type Ongoing
Status Met annual commitment
Linkages to Strategic outcome and program activity/activities SO2 A Clean Transportation System
PA 2.1 Clean Air Transportation

2009-2010 Accomplishments

  • Transport Canada supported Environment Canada in the development of light-duty motor vehicle emissions standards.
  • For the rail sector, the department continued to work toward the development of emissions regulations to align with U.S. regulations.
  • Canada acceded to Annex VI of the International Convention for the Prevention of Pollution from ships (MARPOL). The International Maritime Organization formally adopted the North American Emission Control Area proposal submitted by Canada, the United States and France. The Emission Control Area will come into force on August 1, 2012.
  • Transport Canada supported international efforts in the aviation and marine sectors to develop approaches, standards and recommended practices for reducing greenhouse gas and air pollutant emissions through the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO).

Work in progress

  • Transport Canada intends to initiate consultations with key stakeholders toward the development of emissions regulations for the rail sector.
Strengthening Transportation Safety
Type Ongoing
Status Met annual commitment
Linkages to Strategic outcome and program activity/activities SO3 A Safe Transportation System
PA 3.1 Aviation Safety
PA 3.2 Marine Safety
PA 3.3 Rail Safety
PA 3.4 Road Safety

2009-2010 Accomplishments

  • Amendments to the Railway Safety Act were tabled and new funding was obtained to increase oversight and enforcement capacity.
  • Transport Canada continued to advance and promote SMS requiring operators to adopt a stronger, systemic safety culture and more accountability.
  • The Navigable Waters Protection Act was amended to streamline the approval process, increase the provisions for inspection powers and enforcement, and better service the needs and expectations of Canadians.

Work in progress

  • The reform of the regulatory structure of the Canada Shipping Act, 2001, is ongoing. The work to adjust the remaining regulations (approximately 40), which were a carry over from the old Canada Shipping Act, will be completed in the next 5 years.
  • Canadian airports are at various phases in the implementation of aviation SMS with an expected completion date in 2012. Larger airports are in the fourth and final phase of implementation, while smaller airports are in the third of four phases of implementation.
  • Implementation of aviation SMS for small certificate holders has been delayed to provide additional time to refine procedures, training and guidance material based on inspector and industry stakeholder feedback.
  • A review of the full Motor Vehicle Safety Act to assess its efficiency and utility was postponed to allow other, more specific changes to the Act to occur.
  • Work continues with stakeholders and jurisdictional partners to develop national strategic plans for 2015 for aviation, rail, road and transportation of dangerous goods, including performance measurement frameworks.
Strengthening Transportation Security
Type Ongoing
Status Met annual commitment
Linkages to Strategic outcome and program activity/activities SO4 A Secure Transportation System
PA 4.1 Aviation Security

2009-2010 Accomplishments

  • Passenger and non-passenger screening was expanded and enhanced during the 2010 Olympic and Paralympic Winter Games and following the attempted bombing incident of Northwest Airlines flight 253 on Christmas Day 2009. As part of this expansion and enhancement, full-body scanning equipment was introduced.
  • Air cargo security measures were introduced as part of a phased approach to set up a secure supply chain for air cargo, which is comprised of a complex network of thousands of businesses and organizations with various responsibilities for the movement and security of air cargo. This includes shippers or originators, freight forwarders and ultimately, air carriers. The new measures included providing requirements for the screening of Improvised Explosive Devices in air cargo and developing the groundwork for Secure Supply Chain regulations.

Work in progress

  • Transport Canada will continue to enhance the security of the aviation system through ongoing programs, projects and initiatives such as the Air Cargo Security program, the CATSA Review and other aviation security programs. The department will continue to address areas of immediate concern and work proactively by anticipating issues likely to appear in the intermediate to long term. The effective screening of passengers has been and will remain a high priority, as will the development and application of technologies designed to mitigate certain threats and ensure the safety of the travelling public.
Management Priorities
Enhancing Portfolio Governance Through Integrated Management Strategies
Type [4] New Commitment
Status Met annual commitment
Linkages to Strategic outcome and program activity/activities All Strategic Outcomes and Program Activities

The Transport, Infrastructure and Communities portfolio is comprised of various entities, including Crown corporations, agencies and port and airport authorities (a portfolio overview is in section 1.1 of this document).

2009-2010 Accomplishments

  • Transport Canada launched a study to reinforce its coordination of the Minister’s portfolio, which includes 16 Crown corporations, 3 agencies and 2 departments.
  • Transport Canada undertook activities to support improved portfolio management, such as the preparation of letters of expectations to the Crown corporations, joint management meetings with Infrastructure Canada and the provision of some administrative services to the agencies.
  • Transport Canada provided weekly reports to the Minister’s Office outlining current and upcoming term expiries and vacancies for Governor in Council and ministerial appointees.
  • Transport Canada supported the strategic reviews for VIA Rail, CATSA and the National Capital Commission by ensuring there was consistency across the reviews and that the analysis was complete and comprehensive.

Work in progress

  • Complete portfolio coordination study and implement recommendations by the end of the 2010-2011 fiscal year.
  • Transport Canada will work with the Crown corporations to implement decisions relating to their strategic reviews. Strategic reviews are ongoing and reviews will be conducted for other parts of the portfolio.
Supporting Public Service Renewal and Improving People Management
Type New Commitment
Status Met annual commitment
Linkages to Strategic outcome and program activity/activities All Strategic Outcomes and Program Activities

2009-2010 Accomplishments

  • Transport Canada continued its strong support of the Clerk’s Public Service Renewal Action Plan. All commitments were met and some were exceeded (e.g. post-secondary recruitment exceeded the departmental target by engaging over 100 post-secondary graduates and exceeding employment equity targets).
  • Transport Canada’s Integrated Human Resources Plan includes a People Management Strategy that contains medium- to long-term initiatives that span over more than one planning period. All of the initiatives proposed in the Plan address particular human and knowledge capital gaps/needs. Progress was made in 2009-2010 in addressing these gaps (e.g. growth in key occupational groups and in the EX community).
  • A Workplace Identification Campaign was also completed to help the department more accurately reflect its workforce diversity profile. Given the above noted success, the Campaign results indicate that Transport Canada has sufficient representation in all four employment designated groups.

Work in progress

  • As the Integrated Human Resources Plan and related People Management Strategy are multi-year commitments, initiatives related to Leadership Development and Succession Management, Recruitment and Staffing, Organizational Design and Competencies, Employee Performance Management, Learning and Development, and Wellness, Official Languages and Diversity are ongoing. In 2010-2011, there will be a particular focus on establishing Integrated Business Planning, on completing the Civil Aviation reorganization project, on establishing a knowledge management strategy by promoting existing tools and practices, on renewing the Employee Performance Management program, on supporting managers through managers’ communities and on implementing approved recruitment and development programs.

1.4 Resources

To support its mandate, Transport Canada was assigned the following resources:

1.4.1 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
1,476 1,578 1,012

1.4.2 Human Resources (Full-Time Equivalents (FTEs))
Planned Actual Difference
5,314 5,416 (102)

1.5 Financial Information

1.5.1 Expenditure Profile

Figure 1.5.1 shows Transport Canada’s expenditures (planned, authorized and actuals) from 2006-2007 to 2009-2010. The increase in actual spending, from $702 million in 2006-2007 to $1,012 million in 2009-2010, is mostly attributed to the addition of major initiatives within the department over the same period, such as the Asia-Pacific Gateway and Corridor Initiative and the Gateways and Border Crossings Fund. Although an upward trend can be observed over the past four years, actual spending decreased in 2009-2010, primarily due to the completion of the ecoauto Rebate Program.

Further details on the content of the Multi-Year Summary table below can be found in sections 1.5.2 (breakdown by Vote), section II (breakdown by Program Activity) and section III (breakdown of the Economic Action Plan).

Multi-Year Summary

Text version

1.5.2 Voted and Statutory Items

This table indicates the voted items approved by Parliament through the Main Estimates with its supply bills. The statutory items are displayed for information purposes only.

($ millions)
Vote # or Statutory Item (S) [5] Truncated Vote or Statutory Wording 2007-2008
Vote 1 Operating expenditures 304 357 331 399
Vote 5 Capital expenditures 73 66 81 107
Vote 10 Grants and contributions 316 443 861 303
(S) Contributions to employee benefit plans 66 67 66 77
(S) Northumberland Strait Crossing subsidy payment under the Northumberland Strait Crossing Act 55 56 58 57
(S) Payments in respect of St. Lawrence Seaway agreements under the Canada Marine Act 19 44 48 65
(S) Payments to Canadian National Railway Company in respect of the termination of the collection of tools on the Victoria Bridge, Montreal and for rehabilitation work on the roadway portion of the Bridge 3 3 3 3
(S) Spending proceeds from the disposal of surplus Crown assets 0 3 0 0
Total [6] Department 836 1,040 1,448 1,012

Total expenditures decreased by $28 million between 2008-2009 and 2009-2010. The main reasons include a decrease in spending on Grants and Contributions by $140 million, which is mostly due to the sunsetting of various programs such as the ecoauto Rebate Program ($120 million) and the Passenger Rail and Transit-Secure Program ($59 million), as well as reduced spending under the Airports Capital Assistance Program ($24.8 million). These decreases are offset by increases in spending in the Gateways and Border Crossings Fund ($32.7 million) and the Port Divestiture Fund ($23.4 million).

Other offsets include the following:

  • An increase in operating expenditures of $42 million due to a decrease in offsetting vote-netted revenue of $16 million, mostly related to decreased airport authorities’ lease payments, and an increase in personnel costs as a result of an increase in the number of Full-Time Equivalents supporting the departmental mandate;
  • An increase in capital expenditures of $41 million due to the acquisition of land for the new Detroit River International Crossing ($29 million), and increases in various other capital projects; and
  • An increase in payments in respect of St. Lawrence Seaway agreements under the Canada Marine Act of $21 million due to lower than anticipated revenues as a result of a decline in traffic. The Government of Canada is obligated to cover any operating deficits for this entity.