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SECTION II - Analysis of PROGRAM activities by
Strategic Outcome

2.1 Analysis by Program Activity

This section focuses on the department's Program Activities and the key programs and initiatives that support each Program Activity and the attainment of Strategic Outcomes.

2.1.1 Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade

Financial Resources ($ thousands)
2008‑2009	2009‑2010	2010‑2011
521,681	640,304	612,404

 

Human Resources (Full time equivalents)
2008‑2009	2009‑2010	2010‑2011
721	689	677

The Transportation Policy Development and Infrastructure Program Activity encompasses the development of transportation policies, legislation, programs, technology and infrastructure support in such a manner that competition and market forces guide the growth and development of the national transportation system and a strong and healthy marketplace encourages existing competitors and new entrants to innovate and provide new services to meet the transportation needs of Canadians. Contributing activities under the policy element of this program activity include monitoring and analysis of the Canadian transportation system, annual reporting on the health of the system, R&D, economic studies and the development of new policies. Transport Canada also administers airport, port (not including Canada Port Authorities), highway and bridge subsidy programs and performs landlord and monitoring functions for the department for ports, airports and air navigation system sites. Under the infrastructure element of this program activity, Transport Canada negotiates the divestiture of ports, and seaway lands to local interests, and operates airports and ports until their transfer, as well as federally owned airports in the Regional/Local/Remote categories and remote ports.

An extensive program of monitoring and analysis of Canada's transportation system provides feedback regarding the effectiveness of the Government's policies, as well as essential information to support future actions. While every effort is made to achieve the department's stated objectives, results are ultimately influenced by factors such as global economic conditions, international crisis or the actions of other governments - that are beyond its control. Subject to the Canada Transportation Act, the department develops an annual brief overview of the state of transportation in Canada and every five years, produces a more comprehensive industry review.

In an era of swift-moving global supply chains, transportation systems must connect Canada with a rapidly changing world. Indeed, transportation is at the heart of an efficient and competitive economy. Real or perceived impediments to a reliable supply chain, such as congestion, labour issues and border delays, can negatively influence private sector investment decisions and impact entire industry sectors. As a country whose reliance on international trade is so critical to our economic growth, transportation networks that serve as gateways and corridors to foreign markets are especially important to our competitiveness.

The pressures facing our transportation system are both new and long-standing, which necessitates Transport Canada's continued effort to develop policies, legislative frameworks and programs that are based on central principles of competition and market forces. Transport Canada's expertise in policy and program development related to transportation infrastructure and its consideration of the public interest is recognized throughout the federal government. A high-quality, modern transportation infrastructure that allows goods and people to move seamlessly and efficiently, is essential to support the competitive advantage towards which Canadian industry strives. In this respect, the department must be strategic in developing appropriate policies and funding programs on its own and in collaboration with public and private sector partners to achieve the maximum benefit for the nation as a whole.

Keeping with its mandate of promoting market-based policies and programs, Transport Canada continues to implement its divestiture program for ports. This program has been very successful with 86 per cent of ports being divested to date. Acknowledging that it is unlikely that all of the remaining ports will be transferred, a more flexible approach to divestiture is being adopted. Ports will be operated and maintained responsibly until they are transferred, and closure/demolition of sites will take place as conditions dictate.

The department must work in partnership with public and private stakeholders across all modes of transportation, as well as international governments and coordinating bodies. This is the case, for example, in:

• Negotiating bilateral air transport agreements or arrangements for international air services and representing the Government of Canada as a member of the International Civil Aviation Organization (ICAO);

• Co‑leading the Canada‑U.S. Transportation Border Working Group with the U.S. Federal Highways Administration;

• Representing Canadian transportation interests in bilateral and multilateral trade negotiations; and

• Coordinating its involvement in:

• International activities (including with multilateral bodies such as the Asia Pacific Economic Cooperation and the International Transportation Forum);

• Key bilateral relationships (for example with the United States, China, Caribbean and Latin America); and,

• Ministerial and senior management involvement in international activities.

Transport Canada is actively participating in the Security and Prosperity Partnership (SPP) of North America. In the area of security, the department is engaged in SPP work in the critical areas of:

• Surface, air, and marine, emergency preparedness and response; and,

• Border security and infrastructure.

On the prosperity side, Transport Canada is working to improve the safety and efficiency of the transportation system through efforts to ensure:

• The safe and efficient movement of people and goods;

• That the transportation system supports growing trade and economic expansion; safer, faster, and more efficient border crossings through the use of new or enhanced mechanisms to support border planning, information sharing, and communications; and

• That all modes of transportation are optimized to meet these needs.

In general, the indicators below are used to track progress in promoting an efficient transportation system.

Program Activity	Expected Results	Performance Indicators	Departmental Program Priorities
Transportation Policy Development and Infrastructure Programs	Long-term sustainable funding and accountability framework for transportation infrastructure Strengthened Canadian competitiveness in international markets Legislative and policy frameworks that support free market forces with government intervention targeted to situations where market forces are insufficient	Productivity of the transportation system Price and service levels Financial viability of the different components of the system	Market-based policy framework Infrastructure, gateways and trade corridors Innovation Climate change and clean air

2.1.1.1 Key Programs and Initiatives in support of the Program Activity Transportation Policy Development and Infrastructure Program

Ensuring the continued improvement of transportation services by providing rules that allow transportation undertakings to adapt, innovate, remain competitive and serve the public -has been the successful focus of federal transportation policy over the years. Experience has demonstrated that competition and free market forces stimulate performance and productivity improvements. When government interventions are needed, they should be targeted to situations where market forces are insufficient to achieve desirable outcomes. While much has been accomplished to provide a competitive marketplace and to better focus government actions, room for improvements remain.

The information that follows lists key programs and initiatives with expected results that together are focused towards the successful attainment of this program activity objectives.

Review of Railway Freight Service

On October 29, 2007, the government tabled Bill C-8, a Bill to strengthen the shipper protection provisions of the Canada Transportation Act (CTA). At the same time, the government announced that it would undertake a review of railway service shortly after Bill C-8 is passed. This review is expected to be completed during 2008-2009. The review will seek to identify commercial solutions to improve rail freight transportation services. It is recognized however, that possible regulatory or other changes may be recommended once the results of the review have been assessed.

International Air Agreements

The Department is implementing the Blue Sky Policy that was announced in November 2006 and that provides the current policy framework for international air negotiations.

On November 27, 2007, Canada engaged the European Union (EU) in negotiations towards a single comprehensive air services agreement which would include all of the EU's 27 Member States. Canada has an ambitious program to negotiate with a number of other priority markets, most notably in the Caribbean and Asia-Pacific region. Canada's air agreements are intended to secure operating rights for Canadian air carriers and to provide Canadian travellers and shippers with better and more economic travel options.

Canada's Permanent Representative to the Council of the International Civil Aviation Organization (ICAO) is accountable for all aspects of relations between Canada and the 189 member states and the ICAO Secretariat. Coordination will remain a critical element of advancing Canada's interests related to aviation and safety, security and the environment, with particular emphasis on the environment.

Canada Airports Act

A significantly revised Canada Airports Act was introduced in the new Parliament as C-20 in June 2006. The new Act includes provisions to strengthen governance, transparency and accountability at the major Canadian airports, especially those operated by Airport Authorities. Bill C-20 died on the order paper when Parliament was prorogued in the fall of 2007. It is expected that legislation will be re-introduced.

Building Canada Plan

Canada's New Government is making an historic infrastructure investment of $33 billion under the new Building Canada plan. Building Canada will invest in infrastructure to support a stronger economy, a cleaner environment and more prosperous communities. In short, a stronger, safer, and better Canada. This comprehensive long-term infrastructure plan provides a framework for the federal government to collaborate with provinces, territories and municipalities to take the necessary action to make a real difference in the everyday lives of Canadians - whether it's safer roads, shorter commutes to work, or cleaner water and air to help keep families healthy.

Building Canada includes the following comprehensive and integrated suite of infrastructure initiatives:

• Over 50 per cent of the plan will flow directly to municipalities for their infrastructure priorities, including the $11.8 billion Gas Tax Fund (extended to 2013-2014) and an estimated $5.8 billion through the Goods and Services Tax Rebate;

• A $2.275 billion Provincial/Territorial Base Funding Initiative to provide each jurisdiction with $25 million per year over seven years to support core infrastructure priorities;

• The $8.8 billion Building Canada Fund (BCF), to be distributed on a per capita basis for infrastructure priorities in provinces and territories. The BCF will make investments in clean water and sewage treatment infrastructure, the core National Highway System, public transit and green energy, among other categories. The BCF also has dedicated funding for projects in communities with populations of less than 100,000 - helping these smaller communities face their unique challenges.

• Three national targeted funds: the $2.1 billion Gateways and Border Crossings Fund (GBCF), the $1.25 billion Public-Private Partnerships Fund, and $1 billion for the Asia-Pacific Gateway and Corridor Initiative (APGCI).

Transport Canada is responsible for implementing of the GBCF and the APGCI, as detailed in the other sections. In addition, Transport Canada will work closely with Infrastructure Canada on implementing the transportation components of the BCF and the Provincial/Territorial Base Funding Initiative.

Six categories of eligible projects under these funds are within the transportation domain: National Highway System, Public Transit, Local Roads, Regional/Local Airports, Shortline Rail and Shortsea Shipping. By investing in such projects, the Government of Canada will provide tangible benefits to improve the lives of Canadians, while supporting the nation's most important economic and environmental goals.

More information on the BCF can be found at: http://www.buildingcanada-chantierscanada.gc.ca/index-eng.html

Public-Private Partnerships (P3s)

Taking advantage of innovative financing sources through public-private partnerships (P3s) is one of the priorities under the Building Canada Plan. In addition to creating the first ever federal funding program for innovative P3s, the Government of Canada is establishing a P3 Office. To that effect, Transport Canada will work with Finance Canada and Infrastructure Canada to establish a federal P3 Office that will facilitate the broader use of and promote best practices for P3s in Canadian infrastructure projects. Transport Canada will also encourage the development and use of P3s in the field of transportation by requiring that they be considered for projects that seek a federal contribution over $50 million, under the BCF and the GBCF.

Asia-Pacific Gateway and Corridor Initiative

By way of the last two federal budgets, the Government of Canada has committed over $1 billion for the APGCI. The objectives of this Initiative are to: boost Canada's commerce with the Asia‑Pacific region; increase the Gateway's share of North America‑bound container imports; and improve the efficiency and reliability of the Asia‑Pacific Gateway and Corridor for Canadian and North American exports.

The APGCI has combined strategic infrastructure, policy, governance and operational issues together into one integrated, multi-modal, public‑private strategy. Significant progress has been achieved in all areas of the APGCI, including infrastructure project selection, construction, policy development, technology application and international cooperation and marketing. During its first year, the federal government, together with all four provincial governments and other partners, announced APGCI infrastructure projects worth over $2.3 billion, including federal contributions of over $860 million.

Allocation of the remaining funds will be decided by early 2008. As the APGCI enters its second year, work will be focused on the Initiative's longer-term strategic directions: building a sustainable trade and transportation system for North America; optimizing the supply chain for secure Asia‑Pacific trade; and moving from volume to value in the Asia‑Pacific Gateway and Corridor.

More information on the Asia-Pacific Gateway and Corridor Initiative can be found at: http://www.tc.gc.ca/majorissues/APGCI/menu.htm

Gateways and Border Crossings Fund

Modern, efficient and reliable infrastructure is essential to ensure that Canada continues to reap the benefits of growing international trade. Developing our trade-related transportation systems is vitally important to our economy.

Guided by the National Policy Framework for Strategic Gateways and Trade Corridors, the GBCF will contribute to projects to improve the flow of goods between Canada and the rest of the world. This merit-based fund will enhance infrastructure at key locations such as major border crossings between Canada and the United States. As well, a minimum of $400 million from this Fund will be devoted to the construction of the new access road linking Highway 401 to the new bridge crossing between Windsor and Detroit, the busiest gateway for Canada-United States trade, and one of the most significant commercial trade corridors in the world. Funding under the GBCF will also support the development of the Ontario-Quebec Continental Gateway and Trade Corridor and the Atlantic Gateway.

These strategies will promote infrastructure and technology investments, such as Intelligent Transportation Systems, that enhance multimodal integration of major transportation systems, as well as their efficiency, safety, security, and sustainability. They will also address other, interconnected issues that impact on how well those systems work and how well Canada takes advantage of them over the longer term. As such, the GBCF will also help advance complementary policy, legislative, operational, research and trade promotion measures.

Ontario-Quebec Continental Gateway and Trade Corridor

Ontario and Quebec together represent around 60 per cent of Canada's exports and gross domestic product. It is of vital importance to the economic health of the country that Central Canada's transportation system continues to support the efficient and integrated movement of goods into international markets. It is also important that this gateway is aligned with the other two national gateway and corridor initiatives.

The National Policy Framework on Strategic Gateways and Trade Corridors released in 2007 provides the context for Transport Canada's engagement in the Ontario-Quebec Continental Gateway and Trade Corridor. In July 2007, the Minister of Transport, Infrastructure and Communities and the ministers of transportation for Quebec and Ontario signed in Montreal, a Memorandum of Understanding (MOU) for the development of the Gateway. The MOU commits all three parties to work, in partnership with the private sector, to develop a strategy to position the gateway to respond to global trade opportunities. The MOU envisages an intensive 24-month action plan to explore ways to optimize transportation infrastructure in the gateway to better meet current and future demands in transportation. Much of this effort will come to fruition in 2008-2009.

More information on the Ontario-Quebec Continental Gateway and Trade Corridor Initiative can be found at: http://www.tc.gc.ca/GatewayConnects/Ontario-Quebec/Ontario-Quebec.html

Towards an Atlantic Gateway Strategy

Significant opportunities exist in Atlantic Canada for attracting more international commerce activities because of its strategic geographical position with respect to North American markets and the significant transportation assets located in the region. From all accounts, the transportation capacity in the Atlantic region is significantly underutilized, pointing to an opportunity for greater trade promotion and economic development in the region.

To support the region's competitiveness and to further develop and exploit key transportation systems that support international trade activities in the Atlantic region, a MOU on the Atlantic Gateway was signed in Halifax on October 14, 2007, by the Ministers of Transport, Infrastructure and Communities and the Atlantic Canada Opportunities Agency (ACOA) and by the four Atlantic Provincial Ministers of Transportation and the Inter-Governmental Affairs Minister for Newfoundland and Labrador. The MOU affirms the commitment by all parties to work collaboratively to develop the Atlantic Gateway concept and formalizes the Atlantic Gateway Federal-Provincial Officials Committee (Officials Committee) as the primary forum for this collaboration. It also outlines the objectives for the development of an Atlantic Gateway strategy over the next 24 months including key priorities of private sector stakeholder engagement, marketing and analytical work required to map and assess the multi-modal transportation system in the region that supports international commerce activities.

The signing of this MOU followed the 2007 release of the National Policy Framework on Strategic Gateways and Trade Corridors, which articulates a systems-based approach to policy and investment issues.

More information on the Atlantic Gateway can be found at: http://www.tc.gc.ca/GatewayConnects/Atlantic/AtlanticGateway.html

Canada Strategic Infrastructure Fund and the Border Infrastructure Fund

Transport Canada also works closely with Infrastructure Canada on highways, transit and border projects considered for funding under the Canada Strategic Infrastructure Fund (CSIF) and the Border Infrastructure Fund(BIF). Transport Canada provides technical input, analysis and advice on the selection of transportation projects and joins with Infrastructure Canada to negotiate and seek Treasury Board approval of the contribution agreements with Transport Canada implementing the projects. Transport Canada will be providing federal oversight to ensure that the Canadian public receives value for money by ensuring that all federal expenditures are consistent with the objectives of the programs, compliant with federal legislation and that grants and contribution program requirements are followed.

In 2008-2009, the department will continue to manage and ensure the compliance of transportation infrastructure projects being constructed by our partners under the current funding programs. Transport Canada will continue to work with other federal departments and our provincial, territorial, municipal and private sector partners to develop and deliver these programs effectively and efficiently in order to meet federal objectives of cost-efficiency and ensure an acceptable level of return in the economic, social and environmental benefits in relation to the investment that is required (benefit-cost analysis).

Examples include:

• Studies and other preliminary work (phase 1) on Highway 30 to explore the potential for a public‑private partnership to complete this section of highway, spanning 42 kilometres southwest of Montreal, in Quebec ($10.5 million federal);

• Improvements to GO Transit's rail network in the extended Greater Toronto Area ($385 million federal);

• Expansion and rehabilitation of Toronto's transit system ($350 million federal) in Ontario;

• Completion of the twinning of Trans-Canada Highway 1 between Regina and Winnipeg (over $50 million federal between Saskatchewan and Manitoba),

• Twinning of Highway 63 to Fort McMurray in Alberta ($150 million federal);

• Construction of a new international bridge and truck route (Route 1) between New Brunswick and Maine ($30 million federal);

• Construction of the Canada Line light rail transit system, linking central Richmond, Vancouver International Airport and downtown Vancouver in British Columbia ($450 million federal); and,

• National corridors for Canada in the Northwest Territories ($65 million federal).

For more information, visit: http://www.infrastructure.gc.ca/ip-pi/index_e.shtml.

Transport Canada will work with stakeholders towards the signing of contribution agreements for transportation projects such as:

• FLOW - public transit and highway infrastructure projects in the Greater Toronto Area ($962 million federal);

• Let's Get Windsor Essex Moving Strategy ($150 million federal);

• Highway rehabilitation projects on Route 1 of the Trans‑Canada highway in Newfoundland ($24 million federal);

• Construction of a four‑lane divided highway (Route 175) between Quebec City and Saguenay ($262.5 million federal)

• Rehabilitation of the Dorval interchange ($55 million federal); and,

• Rebuilding of highway 185 ($85 million federal).

Domestic and International Bridges and Tunnels

Transport Canada continues to assess the current and long-term financial requirements of the domestic and international bridges and tunnels within the Department's own portfolio to ensure their long-term safety. To this end, Transport Canada is undertaking a number of measures to improve the way in which these assets are managed and to enhance the ability of the crown corporations that own and/or manage them, to do so more effectively. These initiatives include strengthening the existing governance models and ensuring sound financial management practices.

Through the recent coming into force of the International Bridges and Tunnels Act, Transport Canada is developing guidelines for the application to construct new international bridges and tunnels, to alter existing structures, and to change the operator, owner and control of international bridges and tunnels. Transport Canada officials will process these applications and consult with stakeholders in order to provide Governor in Council with a recommendation for approval.

Following the recent collapse of the Laval viaduct and the Minneapolis I-35W Mississippi River Bridge, Transport Canada began working closely with its federal stakeholders to ensure the continued safety of federal bridges. Transport Canada will continue to work closely with these departments, Crown corporations and shared governance regimes to share best practices in the area of bridge safety inspections and maintenance. Transport Canada will also begin development of regulations for the maintenance and repair, operations and use of international bridges and tunnels.

With the coming into force of the International Bridges and Tunnels Act earlier this past year, Transport Canada officials began developing regulations for the maintenance and repair as well as operations and use of international bridges and tunnels. Stakeholders, industry and governments are participating in the consultation process and in the development of the regulations.

Windsor-Detroit

Improving international traffic flows at the Windsor‑Detroit gatewayis a key government priority as confirmed at the North American Leaders Summit in Montebello, Quebec, in August 2007 by Prime Minister Harper and President Bush. In addition to the Let's Get Windsor‑Essex Moving Strategy, which is funding improvements to existing infrastructure in the Windsor area, the department continues to participate in the Canada‑U.S.‑Ontario‑Michigan Border Transportation Partnership with the purpose of developing a long‑term strategy to improve the movement of people, goods and services along the Windsor‑Detroit corridor. Through a coordinated environmental assessment study process, the partnership is identifying the location for a new international bridge crossing, inspection plazas and connecting roads leading from Highway 401 in Canada to the Interstate Highway System in Michigan. The partnership is also looking at various governance structures for the crossing and possible models for private sector involvement in the design, financing, construction and operation of the new crossing. The challenges of building such new infrastructure are significant:

• Requires a partnership between various levels of government in two countries;

• Entails the construction of a crossing with customs plaza and access roads on both sides of the border; and

• Requires balancing the interests of various stakeholders.

On November 26, 2007 Transport Canada signed a Memorandum of Cooperation with the U.S. Department of Transportation, to strengthen collaboration and coordinate the efforts of respective federal agencies to advance the development of an enhanced border crossing system for the Detroit-Windsor region. The bi-national partnership is currently in the final stage of the environmental assessment process. The technically preferred location for the new bridge, plazas and access roads will be announced in Spring 2008. As announced in Budget 2007, Transport Canada, together with Michigan and the U.S. Department of Transportation, intends to explore the opportunity to partner with the private sector to design, build, finance, operate and maintain the new crossing that is expected to be in operation in 2013.

Canada Marine Act Amendments

The Canada Marine Act (CMA) established the first single, comprehensive piece of legislation to govern many aspects of Canada's marine sector. Following a review of the Act and extensive consultations, the department developed a two-track strategy to stimulate investment in key transportation infrastructure. This new approach includes legislative amendments governing ports, in combination with several related policy measures. Amendments to the CMA were introduced into Parliament in November 2007 and are expected to be finalized in 2008. These amendments would allow Canada Port Authorities (CPAs) to apply for contribution funding related to infrastructure, environmental sustainability and the implementation of security measures, introduce a two-tiered approach to borrowing limits, facilitate port amalgamation, incorporate a more responsive governance and management framework and introduce an administrative monetary penalty regime. Policy initiatives to be pursued relate to a modernized national marine policy, streamlined borrowing limit process and amendments to Letters Patent to allow for a wider array of uses for lands that CPAs lease or licence to third parties.

Marine Atlantic Inc.

In 2008, Transport Canada will work with Marine Atlantic Inc. towards the development of the second phase of the long-term strategy to revitalize the corporation. The second phase comprises the finalization of the fleet renewal strategy and the development and articulation of a cost containment strategy to keep the service reliable and affordable.

Data Collection

Building on work started in 2002, Transport Canada further expanded the Electronic Collection of Air Transportation Statistics (ECATS) programme to Phase II to improve the quality, scope and timeliness of air transportation statistics in support of policy formulation, planning and decision-making. In 2008-2009, the department will further pursue the collection of cargo information and will begin to gather general aviation data collection.

Transport Canada continues to build on work carried through 2006 and 2007, as part of a National Roadside Survey (NRS) of trucking operations at key Canada/US border locations and at strategic points in the Quebec-Windsor corridor. In 2008-2009, new data products will be developed to support the gateway and corridor initiatives and inform the department on trucking activities across our land borders.

Full Costs of Transportation in Canada

In 2007-2008, Transport Canada, in collaboration with the provinces and territories, completed a series of studies supporting the assessment of the full costs of transportation in Canada. The work yielded a new analytical tool that will provide policy-makers with a detailed valuation of the financial and social costs of all modes of transportation in Canada. This includes the capital and operating costs of both infrastructure and vehicles, the economic valuation of land occupied by transportation infrastructure and cost estimates of the social impacts of transportation (accidents, road congestion, air pollution, climate change and noise). The department expects to release the final report of the Full Costs study early in 2008-2009. A reduced form of the analytical tool derived from the work will also be made available with a view to support potential applications at the provincial and territorial level.

Transportation Object Dictionary

The Transport Object Dictionary (TOD) project was launched with an aim to harmonize and logically integrate 100 stand-alone air related database systems. In 2006-2007, the TOD, by linking numerous databases, allowed for the successful development of some airport monitoring tools and airport scorecards for the department. In 2008-2009 the department plans to further expand the TOD by integrating more air databases and by developing more common keys that may in turn support similar uses and applications across other modal databases (rail, truck, marine and bus). It is expected that further integration will increase the department's ability to dynamically address issues and provide timely response and accuracy in a cost effective fashion.

Transportation-related Innovation and Skills Development

Innovation is key to Transport Canada's objectives and, in particular, to reconciling the three strategic outcomes (Safety and Security, Efficiency, and Environmental Responsibility) of the department's vision of a sustainable transportation system by providing a foundation of knowledge and technology to support enhanced system performance. Innovation and skills development can make the transportation sector stronger, more resilient, adaptable and responsive to changing demands and pressures.

Transport Canada will develop an Innovation Strategy that will guide departmental efforts to increase the competitiveness and efficiency of the transportation system through strategic R&D initiatives, skills development and implementation of intelligent transportation system solutions.

A highly skilled workforce is necessary to optimize the performance of Canada's transportation system and to ensure its continued competitiveness. In 2008, Transport Canada will continue to work with public and private sector stakeholders to identify ways to increase skills and knowledge capacity related to transportation technology and R&D, as well as working to promote transportation-related skills development in the industry sector. Wherever possible, activities will be aligned with the department's overall approach to innovation and policy development, articulating a coordinated response to the skills development challenges inherent in departmental initiatives such as the APGCI and/or other infrastructure initiatives.

Transportation Technology, Research & Development

Transport Canada continues to improve the department's ability to understand and respond to current and emerging challenges through the development, investigation and implementation of technological solutions. R&D positions the department to optimize the safety, security, efficiency and environmental responsibility of Canada's transportation system. An important lens for R&D activity includes the design, building and maintenance of a smarter transportation system. Work in this area will inform and protect the Government's infrastructure investments over the long-term. In 2008-2009, R&D undertaken to support our safety and security mandate will be complemented by and/or integrated into other research and development work focused on key departmental research priorities such as improving transportation in gateways and corridors and the North, to increase accessibility and energy efficiency, and working with stakeholders to minimize the environmental footprint of transportation.

Collaborative work with R&D experts in industry, academia and government will continue to be an important component of Transport Canada's R&D agenda as the department seeks to encourage the development, demonstration and commercialization of innovative technological solutions to Canada's transportation challenges. New R&D activities will support national transportation objectives and strengthen the department's response to emerging issues through the development and application of technological solutions. One of the long-term results of these efforts will be to increase research and technological capacity related to transportation among industry and academic stakeholders.

Intelligent Transportation Systems

Transport Canada will continue to accelerate research, development, deployment and integration of Intelligent Transportation Systems (ITS) in support of national objectives (e.g., the Innovation Agenda, Asia-Pacific Gateway and Corridor Initiative, Let's Get Windsor-Essex Moving Strategy) as well as departmental priorities such as safety, security and efficiency of the transportation system. Priority activities include a review of the current Intelligent Transportation Systems Plan for Canada, En route to Intelligent Mobility. This will set the stage for future investments in ITS, including increased integration of intelligent transportation systems to generate greater efficiencies in the transportation network and an update of the ITS Architecture for Canada, ensuring the Architecture is modernized and strengthened to guide future investments. Work will continue on other elements of the existing plan, including the completion of several R&D and deployment projects.

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

Financial Resources ($ thousands)
2008‑2009	2009‑2010	2010‑2011
612,696	528,769	492,648

 

Human Resources (Full time equivalents)
2008‑2009	2009‑2010	2010‑2011
4,097	4,074	4,063

The Transportation Safety and Security Program Activity encompasses policies, rule making, monitoring and enforcement and outreach in support of a safe and secure transportation system. The program activity develops national legislation, regulations and standards, and carries out monitoring, testing, inspection, enforcement, education, training and developmental activities to promote safety and security in all transportation modes. It also develops emergency preparedness plans and delivers aircraft services to government and other transportation bodies.

A safe and secure transportation system contributes to the quality of life for all Canadians and supports safe and secure communities, as outlined in Canada's Performance 2006.

The Transportation Safety and Security Program Activity promotes continuous improvement in the safety and security of air, marine, rail and road modes of transportation. A safe and secure transportation 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. Transportation Safety and Security is essential to a healthy population, a high quality of life and a prosperous economy.

The policies, rules and regulatory frameworks that are a part of this Program Activity focus on performance and on risk and threat management. The Transportation Safety and Security Program of Transport Canada also establishes safety standards for rail transportation, the manufacturing of motor vehicles, vessels, pleasure crafts and aircraft, the navigation of commercial vessels through Canadian waters and the transportation of dangerous goods. Within the Program, safety and environmental protection frameworks are developed and enforced for all segments of the domestic and foreign industries as well as the recreational boating community. In addition, the Transportation Safety and Security Program has responsibility for maintaining a small fleet of aircrafts for the non‑military use of the Government of Canada.

Compliance and enforcement activities referred to in this Program are systematically informed, consistent and effective. These activities include issuing licences, certificates, registrations and permits, monitoring compliance through audits, inspections and surveillance and taking appropriate enforcement action in instances of non‑compliance. In particular, the department's inspectors monitor the system to make sure the rules are being followed and, if required, enforce the policies and rules. These activities contribute to the reduction of accidents, incidents and fatalities.

• In general, the indicators below are used to track progress in promoting a safe and secure transportation system.

Program Activity	Expected Results	Performance Indicators	Departmental Program Priorities
Transportation Safety and Security	Continuous improvement in transportation safety and security Public confidence in Canadian transportation safety and security	Level of public confidence in transportation safety and security Accident/incident rates relative to the increase in traffic Fatality rates relative to the accident/incident rates Progress in implementing safety and security management systems	Safety and security management systems Streamlined regulations Strengthened security policies and programs

 

2.1.2.1 Key Programs and Initiatives in support of the Program Activity Transportation Safety and Security

The information that follows lists key programs and initiatives with expected results that together are focussed towards the successful attainment of the program activity objectives.

Aviation Safety

Safety is an essential foundation of a transportation system that enables a country to exploit the economic benefits and efficiencies of its transportation system. Aviation Safety establishes and administers the policies, regulations and standards necessary for the safe conduct of civil aviation within Canada's borders and also exerts its influence nationally and internationally. It does so with the high expectation of reporting a continualimprovement on the high level of aviation safety in Canada and a high level of public confidence in aviation safety.

The scope and challenge of Aviation Safety includes:

• 2,300 domestic, foreign and private air operators;

• 67,000 private and commercial pilots;

• 14,000 aircraft maintenance engineers;

• 30,000 registered aircraft;

• 1,400 organizations involved in aircraft maintenance, aviation training, the design and manufacturing of aeronautical products and parts;

• 600 certified airports and 1,000 registered aerodromes;

• over 200 private companies of various sizes and individuals involved in the provision of air navigation services; and

• a network of approximately 3,000 companies and individuals having received a Ministerial Delegation to make findings of compliance on behalf of the Minister.

In particular, because of international civil aviation requirements, the processes of Aviation Safety enables the aviation and aerospace community in Canada to participate and compete on an on-going basis in the international marketplace. The value to Canada of this marketplace exceeds $22 billion annually with the majority of its products exported for consumption and use in other countries. The support of the safety of Canadian products internationally cross-cuts outcomes relating to the efficiency and financial well-being of this industry in Canada.

In its pursuit of increased safety, plans in progress will continue to expand and take hold within the industry. Front and centre in this regard is the continued implementation of safety management systems (SMS) within the Canadian civil aviation community. SMS is a formalized framework for a structured integration of safety into the daily operations of a transportation enterprise. By 2008-2009, the enabling regulations for each segment of the industry's operational components targeted for SMS implementation will either have been in the latter stage of the federal rulemaking process, or be progressing through one or more of the implementation phases of SMS. The year 2008-2009 will see the operational integration of SMS safety oversight protocols for the aviation organizations having reached the appropriate state of readiness as required by regulation. In 2008-2009, the Aircraft Certification Accountability Framework project will table regulations that delineate between ministerial and industry responsibilities through the introduction of an operating certificate for aeronautical design organizations. The introduction of an operating certificate will provide for the full integration of a company's design activities into their SMS along with their other operating certificates.

Aviation Safety will continue to explore new partnership opportunities with its stakeholders, such as the one established with the Canadian Business Aircraft Association (CBAA). At the operational level Aviation Safety is continually modernizing its suite of regulations and standards to challenge new threats to safety, meet international requirements, harmonize Canada's regulations with the international community and increase the mutual acceptance of Canada's licenses with the United States and the European Community.

In 2008-2009, additional licensing and training requirements will be developed to fill the void in identified higher risk areas such as the need for special Multi-Crew Licenses and Threat and Error Management certification. New regulations will be introduced:

• Requiring language proficiency ratings in either English, French or both official languages for license holders;

• Requiring the integration of new technologies to aircraft systems such as Terrain Awareness Warning Systems (TAWS) and Emergency Locator Transmitters (ELTs);

• Requiring common approaches to winter maintenance programs at airports; and

• Establishing certification standards for water aerodromes and consolidate existing regulations governing the certification process for aeronautical products.

In 2008, Transport Canada will adapt and coordinate communications to enhance the transparency of the Civil Aviation program by educating travelers and industry on shared safety responsibilities. This will be achieved by conducting a national awareness campaign for cabin safety issues such as unruly passengers, child restraint systems and carry-on baggage.

As its contribution to the security agenda, in 2008-2009, Aviation Safety will begin the issuance of a new format of pilot license to address security issues. This will reduce the threat of the Canadian pilot license to be used as a false identity. A robust format similar to a passport is being developed.

Marine Safety

Marine Safety protects life, health, property and the marine environment in the context of an efficient and sustainable marine transportation system in which the public can have continued confidence. Marine Safety's mandate encompasses the full spectrum of responsibilities related to the safety of vessels, pleasure crafts, and environmental protection. This includes the policy development, administration and enforcement of national and international laws, the promotion of safe practices and procedures, the oversight of training programs for officers and crews of commercial vessels, marine occupational health and safety issues, maintaining a Canadian vessel registry, licensing small commercial vessels, pleasure craft safety, navigable waters protection and overseeing pilotage matters.

Marine Safety will continue to work with the marine industry over the coming years to identify opportunities to utilize a SMS philosophy in the continued enhancement of the marine safety regime in Canada. SMS was mandated for Canadian vessels trading internationally via the Safety Management Regulations. These regulations introduced the International Safety Management (ISM) Code in 1998 and expanded the scope of its application in 2002. Transport Canada has had some success in promoting voluntary adoption of the ISM Code by domestic shipping companies.

Marine Safety is examining ways to increase voluntary adoption of SMS and is assessing various shipping sectors for opportunities for increased participation.

Marine Safety will also be supporting the Cabinet Directive on Streamlining Regulation by continuing to revise its suite of Canada Shipping Act, 2001 regulations and standards, and by modernizing the following piece of legislation:

• Reviewing the amendments to the Pilotage Act, enacted in 1972. In early 2007, consultations were held across the country with concerned stakeholders regarding administrative amendments tothe Pilotage Act help ensure the financial self-sufficiency of pilotage authorities while maintaining high levels of safety andto allow for improvements in the governance of the Pilotage Authorities. The Pilotage Act will continue in Parliament in 2008.

Improving the Performance of the Regulatory System for Major Natural Resource Projects

Increased energy demand has caused an increase in offshore oil and gas extraction operations. This has introduced new large and very technically complex oil and gas extraction platforms to the marine world. It has also created increased traffic to support them. This support includes moving the platforms, supplying the platforms and transporting the oil and gas. This situation has a positive impact on the Canadian economy but must be carefully managed from an oversight perspective in order to minimize safety and environmental risks associated with these types of operations.

Transport Canada is participating in a multi-departmental initiative led by Natural Resources Canada (NRCan) to improve Canada's regulatory framework for major natural resource projects and move forward on the government's commitment made in Advantage Canada to increase the efficiency and effectiveness of the federal regulatory approval process. Through its participation in the development and implementation of the Major Projects Management Office (MPMO) under the direction of NRCan, the initiative aims to improve the accountability, transparency, timeliness and predictability of the federal regulatory system for major natural resource projects. Transport Canada's participation in the project is focused on our regulatory permitting function for such projects under the Navigable Waters Protection Act (NWPA) and associated environmental assessments and Aboriginal consultation requirements.

Development of a Hazardous and Noxious Substances Regime

Transport Canada is the lead Canadian agency at the Protocol on Preparedness, Response and Co-operation to Pollution Incidents by Hazardous and Noxious Substances (OPRC-HNS) working group at the International Maritime Organization (IMO) in order to ratify the OPRC-HNS Protocol. Ratification of this protocol will provide a framework for international co-operation in establishing systems for preparedness and response at the national, regional and global levels.

Transport Canada is working on the development of the legislative structure required to put an HNS regime in place, together with the necessary regulations and standards and specifically by developing the required HNS response mechanism. Canada will then be able to take necessary action to accede to the Protocol on Preparedness, Response and Co-operation to pollution Incidents by Hazardous and Noxious Substances, 2000.

A discussion paper will be completed in 2008-2009 to reflect several responding options and a list of the key elements necessary to establish a maritime HNS response regime. These elements would be used to draft the framework of the regime. Once completed, this discussion paper will be given wide distribution in Transport Canada and presented to management committee prior to any external consultation.

Marine Simulator Contribution Program

The department's contribution program for marine training simulators ($7.2 million federal) will assist the provinces to modernize marine training simulators formerly belonging to the federal government. The program directly supports and advances the departmental mandate and strategic objective by financially contributing to the provision of state-of-the-art marine simulator training equipment that will in turn ensure the level of regulatory training and certification of seafarers, thus contributing to the safety of the marine transportation system in Canadian and international waters.

The Province of Ontario is the only one, of five eligible Provinces, to have entered into an Agreement under the Marine Simulators Contribution Program. As a result, the Province of Ontario's Great Lakes International Marine Training Centre (GLIMTC) of Georgian College of Applied Arts and Technology, will maintain their operational capacity to TC standards with no interruption of regulated training and certification, for the continued maintenance and development of skills of seafarers in the marine industry.

Health of the Oceans Initiative

As part of the 2007 Federal Budget, $19 million in funding over two years was announced for the Health of the Oceans initiative and, the remaining investment of $42.5 million is accounted for in the fiscal framework until the end of 2011-2012. Of the investment that will be distributed to five federal departments and agencies, Transport Canada will receive $23.85 million over five years.

For more information, consult http://www.tc.gc.ca/mediaroom/releases/nat/2007/07-h185e.htm#bg

Funding being allocated to Transport Canada will improve marine environmental quality of Canada's three oceans by advancing pollution prevention through:

• Funding to increase the effectiveness of the National Aerial Surveillance Program (NASP) to further protect Canada's waterways, including the Arctic on a dedicated basis ($13 million). The NASP is the primary tool for detecting ship-source pollution in waters under Canadian jurisdiction. Expected results for 2008-2009 consist of increasing the number of pollution patrol hours from 1,649 hours in 2006-07 to over 2,500 hours, this will include approximately 400 hours in the Arctic.

For more information, consult http://www.tc.gc.ca/marinesafety/oep/ers/nasp.htm.

• Outfitting Transport Canada's Dash 7 surveillance aircraft with a Maritime Surveillance System to assist Transport Canada with the enforcement of pollution prevention regulations in the Arctic ($5 million). The system will be acquired in 2007-2008 and installed in 2008-2009.

• The enforcement of ballast water regulations to reduce the risk posed by harmful invasive species on Canada's ecosystems ($4.5 million). Funding received through this initiative will be used to directly improve the Ballast Water Enforcement. Expected results for 2008-09 consist of enhanced inspections in marine coastal regions outside of the Great Lakes, closer cooperation with US authorities, and promoting practices for ships and crews to verify their compliance with ballast water regulations. For more information, consult http://www.tc.gc.ca/marinesafety/oep/environment/ballastwater/menu.htm.

• The development and implementation of a Ship Waste Reduction Strategy ($800 thousand). Funding received through this initiative will enable Transport Canada to move forward on the development of a legislative framework and mandatory standards for ships to discharge their waste, in port, prior to departure; and enable the development of a strategy to provide adequate port waste reception facilities. Expected results for 2008-2009 are the development of an online database of available port waste facilities in Canada and progress on developing a policy framework on promoting the establishment of port waste reception facilities.

• The undertaking of an Arctic International Marine Shipping Risk Assessment ($550 thousand). Changing climatic conditions, coupled with technological advances and increased demand for resources, have improved accessibility and increased the potential for development in the North. Under the PAME (Protection of the Arctic Marine Environment) working group, Canada (Transport Canada), Finland and the United States will lead the multi-year "Arctic Marine Shipping Assessment" to study the potential social, economic and environmental impacts of shipping, at current and projected levels of activity. The final report is to be presented to the 6^th Arctic Council Ministerial in 2009.

Rail Safety

In 2007, the Minister appointed an independent panel to review the Railway Safety Act in order to further improve railway safety in Canada. The panel received submissions from industry and a number of stakeholders and will submit its report to the Minister in Spring 2008.

Rail Safety Management Systems

The Railway Safety Management Systems (RSMS) regulations, which came into effect on March 31, 2001, require railway companies subject to the Railway Safety Act (RSA) 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. A stakeholder forum on the experiences to date in implementing SMS in rail is anticipated to be held in 2008 following the RSA Review Panel recommendations and Transport Canada's response.

For more information visit http://www.tc.gc.ca/railway/SMS_Regulations.htm

Road Safety and Motor Vehicle Regulation

Road Safety Vision (RSV) 2010

The federal, provincial and territorial governments, along with the police and other road safety organizations are working together to promote their collective mission of making the roads the safest in the world by reducing deaths and injuries.

The main target is a 30 per cent decrease in the number of deaths and serious injuries by 2010. This translates into approximately 900 lives saved and 4,900 serious injuries prevented each year.

RSV 2010 has specific sub-targets as well. These sub-targets are concerned with various issues that contribute to deaths and injuries on Canada's roads. For example, one of the sub-targets calls for at least 95 per cent of all motor vehicle occupants to wear seat belts or for children to be properly secured in appropriate child seats.

Transport Canada prepares an annual report on progress toward the RSV targets that is presented to the Council of Deputy Ministers at their Fall meeting by the Canadian Council of Motor Transport Administrators on behalf of all federal/provincial/territorial governments.

Transport Canada developed a $250,000 class contribution program to support joint research and public awareness projects related to Road Safety Vision 2010. To be eligible for consideration, the project must address at least one of the RSV 2010 targets and have outside funding as well. The class contribution program called Canada's National Road Safety Vision Program began in November 2007 and will run through March 2011.

A challenge to achieving the goals of Road Safety Vision 2010 is to coordinate the collaborative activities of the various levels of government and non-governmental partners to implement effective strategies that will enhance road safety under the Road Safety Vision initiative. Transport Canada is providing national leadership in order to facilitate this collaboration among various partners.

Road Safety Management System

Road Safety Vision 2010 is adopting a Safe System approach to managing road safety (at the provincial, territorial and federal levels). This three-tier approach, outlined by the World Bank, emphasizes the importance of implementation (institutional and management frameworks) as underpinning effective road safety outcomes. It notes that worthwhile and effective interventions require and build upon this robust foundation/framework in order to achieve outcomes/results. The adoption of Safe System approach brings forward the importance of partnerships and the use of a wide variety of initiatives that focus on road users, roadways and motor vehicles. The Safety Management Systems (SMS) and the Safe System (similar to SMS) approaches, adopted by Road Transportation Safety, are being reflected in the strategic plan of Road Safety, which is under development.

Transport Canada is also investigating the applicability of the SMS approach for the motor carrier industry. The results of a feasibility study that was recently conducted suggest that the approach could be a relevant safety management strategy, both for large and smaller carriers. A working group is consulting within the industry and amongst government representatives and will report back to Canadian Council of Motor Transport Administrators in 2009.

Harmonization of motor vehicle regulations

Road Transportation Safety is taking steps to improve our relationship with the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA). The areas of work being envisioned for collaboration deal with the harmonization of regulations for motor vehicle safety, the promotion of greater international harmonization of technical requirements, the coordination of regulatory research and development plans and the conducting of joint analyses to assist in the development of motor vehicle safety regulations.

The challenge with harmonization on a bilateral basis is coordinating the activities in a rational and effective way to achieve the stated goals.

The proposed amendments to the Motor Vehicle Safety Act will include modernized provisions regarding regulatory efficiency and harmonization, certification and enforcement and importation.

Regulations on Electronic Stability Control

Electronic Stability Control (ESC) is a technology designed primarily to assist the driver in maintaining control of the vehicle in several situations such as emergency manoeuvres (swerving or braking to avoid an obstacle) and cornering slippery surfaces.

In 2007, the U.S. National Highway Traffic Safety Administration (NHTSA) published a Final Rule that will require vehicle manufacturers to provide ESC on all vehicles with a Gross Vehicle Weight Rating under 3456 kg manufactured after September 1, 2011.

Transport Canada has developed consumer-focused information on ESC that is available on the department's website for Canadians interested in the technology. The department wants to make Canadians more aware of the benefits of ESC as well as provide details on its nature and function and the work that Transport Canada has been doing in evaluating this technology. The department will propose a regulation to adapt the proposed U.S. standard in Canada in an effort to harmonize and promote safety.

With ESC, it is estimated that the reduction of risks from single passenger cars collisions would be reduced by more than 30 per cent and even more for Sport Utility Vehicles (SUVs).

Transportation of Dangerous Goods (TDG)

Transport Canada puts into place regulatory, educational and promotional programs that reduce the probability of an incident occurring and mitigates the consequences if one does occur.

The review of the Transportation of Dangerous Goods Act, 1992 continues. Proposals to amend the Act may be introduced in Parliament in 2008.

Transport Canada is participating with the Federal Railroad Administration, U.S. Department of Transportation and with chemical producers, railways and tank car manufacturers in the development of the next generation of railway tank cars. This includes a review of new materials and technologies for the construction of railway tank cars used to transport dangerous goods that are toxic by inhalation. This participation aims to develop a better understanding of the factors contributing to tank car safety and to enhance the effectiveness of railway specific dangerous goods bulk packaging. Transport Canada will also consider whether advances in technology will require changes in the standards that apply to tank car design, manufacture, selection and use.

Discussions regarding a shared funding agreement proposal have also been initiated with the U.S. Department of Transportation Research and Innovative Technology Administration - Volpe National Transportation Systems Center in support of research and development projects e.g., tank car thermal protection fire tests, that will benefit both countries in the pursuit of safe and secure transport of dangerous goods. The funding agreement is anticipated to be in place in 2008-2009.

The regulatory requirements that apply to the design, manufacture, selection and use of containers for transporting dangerous goods require conformity to standards. Transport Canada is initiating a pilot project to develop in-house standards that are more accessible and at no cost to the general public, while retaining the consensus based process of standards development. Transport Canada is also 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. CSA is expected to publish the standard in 2008 for subsequent adoption in the TDG Regulations. This standard will harmonize Canadian requirements with international requirements and will help promote safe and efficient domestic and international movement of dangerous goods in portable tanks.

Transport Canada works to ensure public safety in the transportation of dangerous goods. The Canadian Transport Emergency Centre (CANUTEC) is the department's 24‑hour response centre that assists fire departments and other emergency responders in handling dangerous goods emergencies. CANUTEC will be involved in the production of electronic versions of the printed version of the Emergency Response Guide 2008, an international emergency response guide published jointly by Canada, the United States and Mexico for distribution to the first responder community. The Emergency Response Guide 2008 is expected to be printed before the end of 2007-2008 and translated by other countries during 2008-2009. Previous versions have appeared in 18 languages.

In support of the development of a Quality Management System (QMS), the Internal Quality Improvement Project was initiated in 2007-2008 and will be completed early in the 2008-2009 fiscal year. The project will identify best practices and variances in the delivery of TDG inspections.

Transport Canada TDG inspectors have various enforcement tools they use to ensure compliance. An important factor in determining enforcement response is the effectiveness of the response in securing future compliance. In November 2007 the provisions of the Contraventions Act allowed Transport Canada TDG inspectors to issue tickets. During the next 18 months, the ticketing policy will be monitored to ensure consistency, fairness and effectiveness.

Transportation Security and Emergency Preparedness

Aviation Security

Transport Canada is responsible for the security of the Canadian transportation system and plays a lead role in the security of the travelling public. The department dischargesthat responsibility through activities such as establishing security rules and standards for transportation facilities; screening air travellers and their baggage, responding to security incidents and threats, restricting access to certain parts of airports to authorized personnel only, training and qualifying security screeners and securing aircargo and mail.

In 2008-2009, Transport Canada will continue working with other government departments and key interested parties on ongoing priority initiatives such as Air Cargo Security, implementing the CATSA Act Review Panel's Recommendations, the Aviation Security Regulatory Review, and Passenger Protect. Transport Canada will also assume the responsibility for the management of the Airport Policing Contribution Program from CATSA . This program assists eligible, designated airports in financing the heightened costs of security-related policing.

As a priority, Transport Canada will continue working on the design and pilot testing to develop an enhanced and comprehensive Air Cargo Security Program. It is expected that as the design phase ends, the program will move toward regulatory changes and broad implementation of enhanced supply chain programs for air carriers, freight forwarders and shippers. In addition, enhanced screening methodologies will be developed to improve detection capabilities within the secure supply chain. Transport Canada will continue this development in collaboration with the Canada Border Services Agency, other government departments, industry and international partners. The implementation will enhance existing layers as well as add new elements to the Air Cargo Security Program.

The department has made it a priority to respond to the demands of the current and foreseeable aviation security environment to aggressively explore how to better focus departmental, industry and other stakeholder resources on aviation security and has launched a comprehensive review of the aviation security framework to this end. This review will take place over the next three to four years with a mandate to examine in depth and renew the aviation security regulatory framework. Canada's aviation security regulatory instruments establish an essential framework for the federally regulated industry, to prepare for and respond to security threats and risks. Results are expected to include rationalization of outdated and unnecessary requirements, a more robust and pro-active regulatory framework, increased effectiveness and efficiency in the organization, coordination and delivery of aviation security, enhanced international harmonization and continued compliance with Canada's international obligations. All of this is to be accomplished with an appropriate balance between the need to maintain effective security, the rights of the individual and an efficient transportation system.

To further advance air security, Transport Canada will continue working with other government departments and key interested parties to expand the Canadian air passenger assessment program. This Passenger Protect Program provides an additional layer of aviation security by preventing individuals who pose an immediate threat to air security from boarding aircrafts.

In May 2006, the government set up a Commission of Inquiry into the Investigation of the Bombing of Air India Flight 182 for the specific purpose of evaluating any deficiencies in the investigation and response to the incident, and to make recommendations to improve the Government of Canada's response to an act of terrorism and issues of national security. Hearings commenced in September 2006, continuing through the middle of December 2007. In 2008‑2009, Transport Canada will continue to support the Commission of Inquiry on issues or recommendations pertaining to aviation security that may come out of the Commission of Inquiry's Report.

International Influence on Transportation Security and Emergency Preparedness

Emergency preparedness and counter-terrorism capabilities continue to be a focal point for the department in 2008-2009. The department will lead or collaborate on a number of high profile training exercises to assess Canada's ability to act quickly, decisively and effectively in concert with other partners in the event of a terrorist attack, a security-related threat such as radiological contamination or other emergencies.

Between 2008-2010, Transport Canada will be chairing the Transportation Security Sub-Group of the G8's Roma-Lyon Anti-Crime and Counter-terrorism Group. Transport Canada is preparing papers for approval by the G8 on Transportation Security Clearances and Security Management Systems, and cooperating with G8 partners on projects regarding aviation and marine security.

Building on the success of the Smart Border Declaration, Transport Canada will develop and implement new transportation security policies and programs under the Security and Prosperity Partnership (SPP), a trilateral initiative among Canada, the U.S. and Mexico. The SPP is designed to further enhance the security of North America and to promote the quality of life of citizens. Transport Canada, in close collaboration with other government departments, provinces and territories, Canadian stakeholders, the U.S. and Mexico, will play a key role in developing and implementing North American transportation security strategies addressing issues such as aviation security, marine security, emergency preparedness and critical infrastructure protection.

Internationally, Transport Canada will enhance transportation security and strengthen security policies and programs to establish a common approach to security. Efforts include initiatives to: improve aviation security (including air cargo); establish comparable standards for screening (e.g. of passengers and their luggage) and background checks; and improve container security.

Marine Security

Marine security continues to be a high priority for Canada as a secure marine transportation system supports vital trade corridors that connect Canada to the world. Since 2001, the Government of Canada has invested almost $930 million in marine security initiatives involving several different departments and agencies. As part of this investment, the InterdepartmentalMarine Security Working Group (IMSWG) was formed under the leadership of Transport Canada to coordinate Government of Canada marine security efforts.

Over the next three years, the IMSWG will continue to facilitate and expand cooperation and coordination among its 17 member departments and agencies to enhance information exchange and to improve interoperability among members. It will also continue to identify federal government actions in support of national and international marine security obligations, enhance effectiveness in delivering marine security initiatives and facilitate communication with other levels of government, the private sector and regional-based committees with interests in, or responsibilities for, marine security. Through its facilitation efforts, the IMSWG seeks to ensure that Canada's marine security initiatives are effective and efficient; leveraging the resources and expertise of numerous departments and agencies, without duplication of effort, towards one common goal: the security of the marine transportation system. To support this goal, the IMSWG will complete the development of its Horizontal Performance Framework for Marine Security with associated performance measures in 2008-2009.

Every year, Canada Port Authorities generate more than $20 billion worth of economic activity. They are responsible, directly or indirectly, for more than a quarter of a million jobs and they handle $100 billion worth of goods annually. The security at Canada's ports and marine facilities will be enhanced under the Marine Security Contribution Program that began in 2004‑2005 as a three-year, $115 million commitment to assist ports and other marine facilities with security enhancements. In June 2006, the Government announced that the program would be expanded to include domestic ferry operators and would also be extended by two years for all facilities other than Canada Port Authorities. In 2008-2009, the program will continue to fund projects to strengthen security at Canada's ports and marine facilities.

Effective marine security relies upon a compilation of sensor data and information gathered from departmental and open sources to create a marine centric picture. The function of the Marine Security Operations Centres (MSOC) is to enable departments and agencies to work collaboratively to collect and analyze information in an effort to develop a solid awareness in their area of responsibility with regard to transportation security in general but marine security specifically. By bringing together civilian and military interagency staff, the MSOC will provide a much clearer picture of the identification, intent and movement of vessels, personnel and cargo destined for, or already in, the maritime approaches to Canada. An integrated environment where consistent and timely information on vessels of interest to the Government of Canada can be quickly and efficiently compiled in the MSOC, will soon be in place to inform the appropriate decision makers. At present the core departments, Canada Border Services Agency, Canadian Coast Guard, Royal Canadian Mounted Police, Transport Canada and the Department of National Defence are working collectively to implement a concept of operations in order to develop an integrated marine picture.

Transport Canada will work closely with stakeholders to implement the Marine Transportation Security Clearance Program (MTSCP). The Marine Transportation Security Regulations were amended on November 30, 2006, to establish a risk-based program to ensure the security of persons at ports as well as the prevention of unlawful acts of interference with marine transportation, by ensuring that persons able to affect the security of the marine transportation obtain a security clearance. Over the coming year, operational guidelines and systems will be put in place to implement the MTSCP at major ports as per Phase II of the above regulations.

In 2008, TC proposes to initiate the regulatory process to develop amendments to the Marine Transportation Security Regulations (MTSR) to enhance domestic ferry security, establish certification requirements for Ships' Security Officers as required by the International Maritime Organization, and establish provisions for tall ships and other events of national significance. They include provisions to establish security exclusion zones, which will be required for the 2010 Olympics.

Rail and Urban Transit Security

Working with its partners and stakeholders, Transport Canada will continue to develop a national policy framework for rail and transit security, in support of Canada's National Security Policy, and the responsibility of the Minister of Transport, Infrastructure and Communities for the overall security of the transportation network. Ensuring a robust rail and urban transit system requires collaboration, not only between a variety of federal departments and agencies, but also federal, provincial and municipal governments. Transport Canada will continue to facilitate intergovernmental cooperation and coordination.

In 2008-2009, Transport Canada will continue to implement the Transit-Secure Contribution program. This program provides financial assistance to passenger rail and urban transit operators to accelerate the implementation of new and enhanced security measures. The program enhances the industry's ability to deliver sound security and emergency preparedness measures.

Transport Canada will maintain its engagement with operators and industry associations to build security awareness and promote the industry-led development of codes of practices for rail and urban transit security, to ensure that operators can adapt to changes in the security environment. To this end, the Minister of Transport, Infrastructure and Communities signed a revised MOU with the Railway Association of Canada in November 2007. Under the agreement, operators will develop security plans based on risk assessment, undertake security exercises and drills and report security incidents to Transport Canada. The agreement reflects the core principles and best practices of the railway industry. It is an important voluntary action by Railway Association of Canada members to enhance the security of rail operations.

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

Financial Resourcess/strong> ($ thousands)
2008‑2009	2009‑2010	2010‑2011
201,931	82,742	65,112

 

Human Resources (Full time equivalents)
2008‑2009	2009‑2010	2010‑2011
337	272	259

The Sustainable Transportation Development and the Environment Program Activity encompasses the development and implementation of programs and policies to protect the natural environment and to achieve a more sustainable transportation system in Canada.

Transportation activities provide many economic and social benefits. They can also have significant environmental consequences, which in turn have social and economic repercussions. The demand for transportation fuels, and consequently the level of emissions, is a function of current transportation infrastructure, vehicles, geography (long distances and urban settlement patterns) and weather, as well as the cost of fuels themselves. The challenge is to find a way to de-link the growth in population, economic activity and transportation demand on the one hand, from fuel consumptions and emissions growth on the other.

Freight transportation makes a significant contribution to the Canadian economy both in terms of its actual share of economic activity and through the enabling role that it plays in moving products to market. Growth in trade and changes in patterns of freight activity such as just-in-time delivery models, are leading to significant increases in activity in all modes. Overall, domestic freight movement by trucks is expected to increase by 29 per cent between 2005 and 2020 and other modes will likely experience an increase in their activity levels over this period as well.

Multiple factors from passenger and freight transportation affect the interplay with the environment, specifically in urban areas, where about 80 per cent of Canadians reside. Air quality is a concern as there are social, economic and environmental impacts that accompany it. Greenhouse gas emissions reduction also remains a challenge for Canada and the transportation sector. In 2005, about 27 per cent of greenhouse gas emissions in Canada came from the transportation sector; about two-thirds of which are generated in urban areas. In 2005, transportation accounted for about 51 per cent of all NO_X emissions, 62 per cent of carbon monoxide, 23 per cent of VOCs, three per cent of sulphur oxides and five per cent of particulate matter (PM_2.5) - the major constituents of urban smog.

Effective sustainable transportation decision-making necessitates that the environment be considered alongside economic and social factors. Environmental impacts from transportation include air, water and noise pollution, greenhouse gas emissions and the loss of agriculture land and wildlife habitat. These stresses are caused by various activities such as:

• construction of infrastructure;

• airport and port operation;

• road system operation and maintenance;

• production, operation, maintenance and disposal of vehicles; and

• consumption of energy.

Transport Canada will take an integrated and comprehensive approach to developing and managing policies and programs designed to promote sustainable transportation and support the Government's environmental agenda. As sustainable transportation and the environment are a shared responsibility, the department will work with its partners and stakeholders, including the general public, the transportation industry, other federal government departments, provinces and territories, and municipalities as well as international organizations.

For 2008-2009, an important area of focus will be on clean air and climate change. Under theClean Air Regulatory Agenda and complementary clean transportation initiatives, the federal government will implement measures to reduce the emissions of both air pollutants and greenhouse gases from the transportation sector.

Transport Canada will continue to improve the collection, dissemination and analysis of sustainable transportation information in all modes. This includes the development of new data and analytical tools to improve decision-making and build upon Transport Canada's capacity to deliver policy analysis and develop advice on environment and sustainable development issues related to transportation. This will include developing analytical frameworks and/or conducting studies useful to develop these frameworks on critical environmental issues to improve decision-making. The development of analytical tools will improve assessment of climate change and clean air mitigation options, cost and impact, including co-benefits such as congestion reduction benefits, when suitable. Other important elements include advancing new technologies in support of sustainable transportation and investigating opportunities related to research and development for sustainable transportation.

In general, the indicators below are used to track progress in promoting sustainable transportation development and the environment.

Program Activity	Expected Results	Performance Indicators	Departmental Program Priorities
Sustainable Transportation Development and the Environment	Increased environmental sustainability of Canada's transportation system and Transport Canada operations	Percentage of Sustainable Development Strategy targets Various indicators of environmental sustainability, such as: Levels of air pollution and GHG emissions from the transportation sector and Transport Canada operations Number of marine pollution incidents detected Number of Transport Canada contaminated sites that have undergone remediation or risk management Number of project environmental assessments completed	Climate Change and clean air Environmental assessment

 

2.1.3.1 Key Programs And Initiatives in support of the Program Activity Sustainable Transportation Development and the Environment

The information that follows lists key programs and initiatives with expected results that together are focussed towards the successful attainment of the program activity objectives.

Transport Canada tabled its fourth successive three‑year Sustainable Development Strategy (SDS) on December 13, 2006. For this strategy, Transport Canada chose to focus on three themes at the heart of sustainable transportation: urban transportation; commercial freight transportation and marine transportation.

Over the 2008‑2009 fiscal year, the department will implement the commitments and targets that are set out for the 2007-2009 Sustainable Development Strategy (see SDS Table 2 for details on 2008-2009 commitments). A new element of the 2007-2009 SDS is a commitment to establish an internal SDS Fund of up to $1 million per year for the three years of the SDS. The Fund will support innovative projects that make significant contributions to sustainable transportation and approved projects will be considered SDS commitments. Projects for the 2008-2009 fiscal year will be selected in early 2008.

Transport Canada, in its SDS 2007‑2009, has included a key challenge involving the improvement of environmental management on Transport Canada lands and in their operations. The department has met this continuing challenge through its Environmental Management System (EMS). The EMS helps the department better understand the nature of the environmental impacts of its operations and lands. It has led to the development of programs and initiatives in the areas of site remediation, and environmental protection. In 2008‑2009, the EMS will continue to aid in prioritizing the department's environmental aspects while ensuring that its activities are carried out in an environmentally responsible manner.

For more information on SDS, please visit: http://www.tc.gc.ca/programs/Environment/SD/menu.htm

Regulatory Actions

Under the Clean Air Regulatory Agenda, the government is pursuing appropriate regulatory action throughout the transportation system including the off-road motor vehicle, engine, rail, marine and aviation sectors.

Vehicles

On April 5, 2005, the Government of Canada and the Canadian automobile industry signed an agreement to act on climate change. Under the agreement, carmakers will voluntarily work to reduce annual greenhouse gas emissions from light‑duty vehicles by 5.3 Megatonnes (Mt) in 2010. The agreement reached gives consumers fuel‑saving choices, focuses on immediate action to achieve greenhouse gas reductions and provides a cost‑effective solution for government, industry and consumers.

A joint government‑industry monitoring committee has been established to track the Canadian automotive industry's performance under this MOU. Transport Canada, Environment Canada and NRCan are represented on this committee. Emissions reductions will be monitored year by year, with interim goals in the years leading up to 2010. The annual reports from the committee will be available to the public as well as the MOU.

For more information on the MOU and the reports, please visit: http://www.oee.nrcan.gc.ca/transportation/ghg-memorandum/index.cfm

In addition, the Government of Canada will establish an ambitious mandatory fuel-efficiency standard, beginning with the 2011 model year. These new regulations will be developed and implemented under the Motor Vehicle Fuel Consumption Standards Act. The government recognizes that the auto industry operates in an integrated North American market. The government will establish a standard that is achievable within the North American market and that will ensure sustained reductions in greenhouse gas emissions.

Rail

Transport Canada and Environment Canada will support the implementation of a MOU with the Railway Association of Canada that aligns railway practices with U.S. air pollution standards and ensures that the rail industry continues to improve its greenhouse gas emission performance between 2006 and 2010. Transport Canada will develop and implement new regulations to limit railway emissions under the Railway Safety Act, to take effect in 2011 when the MOU expires.

Marine

Transport Canada will continue its discussion with the Canadian marine transport industry on the establishment of a Memorandum of Understanding (MOU) to limit greenhouse gas and air pollutant emissions from marine transportation.

Transport Canada has adopted current international standards established by the IMO for controlling emissions of air pollutants from ships and, with Environment Canada, is supporting the development of new, stricter international standards. Transport Canada will continue to consider the application of new international standards domestically under the Canada Shipping Act, 2001. The department will also continue to work with Environment Canada and other partners in the IMO to explore the feasibility of establishing Sulphur Emissions Control Areas on Canada's coasts.

Aviation

Canada is the first country in the world to have negotiated a MOU with its aviation industry to reduce emissions of greenhouse gases from aviation sources. The agreement sets a clear and measurable annual fuel efficiency target that will achieve a cumulative reduction in greenhouse gas emissions of 24 per cent by 2012, relative to 1990 levels.

The government continues to support harmonized international efforts to limit or reduce both domestic and international aviation emissions of both greenhouse gases and air pollutants. Transport Canada supports the work of ICAO to develop international standards and recommended practices for the reduction of greenhouse gas and air pollutant emissions from aviation sources. These standards and recommended practices will be considered in the development of domestic regulations under the Aeronautics Act.

ecoTRANSPORT Strategy

Transport Canada will implement a number of existing and new clean transportation initiatives and programs to reduce air pollutants and greenhouse gas emissions. These initiatives complement and support the department's regulatory actions in the transportation sector.

Announced in February 2007, the ecoTRANSPORT Strategy is part of the Government of Canada's ambitious agenda to protect the environment and the health of Canadians and to further our economic prosperity. Transport Canada is leading in this strategy, which is a horizontal initiative with clean transportation programs that will be delivered through Transport Canada, NRCan, and Environment Canada.

These programs will foster the implementation of clean technologies for personal vehicles and freight carriers across all modes, and expand the range of sustainable transportation options for individual Canadians. The programs will work with businesses, governments, industry associations and with Canadian consumers to reduce the environment impact of the transportation sector through demonstrations, pilot projects, showcasing of alternatives and capacity building. Transport Canada's programs are described below.

The ecoAUTO Rebate Program provides performance-based rebates to consumers who purchase new fuel-efficient vehicles. Coupled with a Green Levy to discourage the purchase of fuel-inefficient vehicles (administered by Finance Canada and the Canada Revenue Agency), this program is intended to reduce vehicle fuel consumption, with commensurate greenhouse gas emission reductions.

The ecoTECHNOLOGY for Vehicles Program will showcase the cleanest and most advanced vehicle technologies from around the world, across Canada, in order to raise awareness and help provide Canadians with the facts they need for more environmentally-sustainable vehicle purchases in the future. In 2008-2009, the program will continue working closely with the auto industry and will explore the barriers to introduction of advanced vehicle technologies into the Canadian market.

The ecoFREIGHT Program features a suite of complementary initiatives to accelerate the adoption of fuel efficient and lower-emissions technologies in the freight sector. The demonstration fund supports the testing and measurement of new and underused freight transportation technologies in real world conditions. The incentive program supports the purchase and installation of proven emission-reducing technologies. In 2008-2009, these two freight technology programs will conduct several rounds of funding and support the initiation of a range of technology projects. In addition, a marine shore power demonstration will be initiated on the use of shore-based power for marine vessels to reduce emissions from idling ships in Canadian ports.

The ecoMOBILITY program will work with municipalities across Canada to develop transportation demand management measures that can encourage a modal shift towards more sustainable transportation options and reduce emissions in urban areas. This will build on Transport Canada's work with municipal and regional governments to demonstrate innovative and integrated approaches to reducing greenhouse gas emissions from the urban passenger sector through the Urban Transportation Showcase Program. Under this program, showcase demonstrations are encouraging modal shifts away from single occupancy vehicles by offering residents a wider variety of sustainable transportation options. The lessons from these demonstrations and from other successful Canadian case studies are being disseminated to encourage broader uptake of the successful approaches. In 2008-2009, Transport Canada will work with its partners to develop options to renew this program, continue to support existing demonstration projects and share the lessons-learned and results through the Program's Information Network.

Transport Canada's Moving on Sustainable Transportation (MOST) program has funded innovative, smaller‑scale projects to expand the range of sustainable transportation options for Canadians since 1999. The program was renewed for another five years in 2007-2008. In 2008-2009, the department will continue to implement this program so as to improve air quality and health and realize other benefits by supporting the work of non-profit organizations across Canada.

For more information, consult: http://www.tc.gc.ca/programs/environment/ecotransport/menu-eng.htm

Environmental Assessment

Transport Canada activities around Environmental Protection and Remediation efforts continue to achieve success. However, the Environmental Assessment workload associated with the implementation of the Canadian Environmental Assessment Act has increased significantly in recent years. In particular, a recent federal court decision together with numerous projects requiring Navigable Waters Protection Act approval have introduced new complexities into how Transport Canada screens projects triggered by the Act. Although some procedural and management efficiencies have been identified to streamline the department's environmental assessment regime, current and anticipated demand will more than offset any efficiency gains.

During 2007-2008, the interdepartmental Director General level Environmental Assessment Projects Committee continued the implementation of the interim approach to scoping (which may be in place until the Canadian Environmental Assessment Act can be amended in 2010) and an interim approach for engaging with aboriginal peoples in the environmental assessment of projects (which will be in place until a federal government policy is implemented).

As previously referenced in Section 2.1.2.1, Budget 2007 provided $150 million over five years to create a Major Projects Management Office (MPMO) that is being established by NRCan. The office should be operational in early 2008 and aims to improve the accountability, transparency, timeliness and predictability of the federal regulatory system. The objective is to improve the performance of the federal regulatory system for major natural resource projects; in this context, defined as those resource projects requiring a comprehensive environmental assessment, a panel review or a large or complex multi-jurisdictional screening as defined by the Canadian Environmental Assessment Act. In 2008-2009, the department will continue to review procedures, implement measures to improve efficiency, apply risk management measures and develop guidance documents to deliver the environmental assessment program in the most efficient manner without compromising the high quality of the environmental assessments completed.

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