Table of Contents

FRANÇAIS

Chapter 1
The Panel's Mandate and the Review Process

Carrying Out the Mandate
Public Input
Consultation Results

Chapter 2
Context for the Panel's Review

Policy Context

• The Canada Transportation Act
• Commercialization and Decentralization

Pressures and Challenges

• Globalization and North American Economic Integration
• Weak Commodity Prices
• Tighter Controls on Public Spending
• The Internet and E-Business
• Environmental Concerns
• Urbanization

Factors Influencing Transportation Decision Making
A Modal Perspective

• Rail
• Road
• Air
• Water
• Urban Transportation

Chapter 3
Guiding Principles and Themes for a Review of Transportation Issues and Policies

Principles and Themes: Finding the Starting Point

• Competition
• Pricing
• Harmonization
• Transparency
• Flexibility and Adaptability
• Self-Executing Policies and Regulations
• Simplicity and Practicality

The Objectives of National Transportation Policy
Reviewing Transportation Issues and Policy: A Compass for the Journey

• Competition and Regulation
• Pro-Competitive Policies

Public Infrastructure and an Efficient Transportation System

• Transport Infrastructure Investments and Economic Growth
• Objective Infrastructure Provision and Funding

The Problem of Low-Density Markets
New Influences on Transportation System Efficiency
Accountability and Transparency
Using Transportation to Achieve Non-Transportation Objectives
Achieving Balance

Chapter 4
Competitive Rail Access: Issues Defined

Pricing Practices for Freight Rates
Competition
Rail Access Provisions and Competition

• Existing Regulatory Instruments
  • Interswitching
  • Running Rights
  • Competitive Line Rates
  • Level of Service Obligations
  • Right to a Rate
  • Final Offer Arbitration
  • Confidential Contracts
  • Revenue Cap on Western Grain Rates
  • Legal Provisions Determining Agency Relief
  • Substantial Commercial Harm
  • Commercially Fair and Reasonable

Rail Freight Carriers and Users

• The Economic Environment
• Public Policy, Regulation and the Rail Transport Sector
• Operational and Financial Performance
  • Traffic Volumes
  • Freight Rates
  • Operating Revenues
  • Productivity Growth
  • Financial Performance
  • Profitability Compared to Other Industries

Rail Capital Expenditure Sustainability

• Historical Capital Spending
• Impact of the Regulatory Environment
• Capital Uncertainties
  • Economic Prospects
  • Investment Beyond Maintenance Levels
  • Ability to Attract Investors
  • The Policy Environment
• Short Line Railways and Capital Investment

Conclusions

• Economic and Financial Prospects
• Capital Sustainability

Chapter 5
Competitive Rail Access and Shipper Protections: Recommendations

Proposed Options for Changing Rail Access

• Track Access Options
• Rate Access Options

Observations on Proposed Rail Access Policies

• Performance of the Rail System
• Extent of Competition System-Wide
• Other Industries, Other Countries, Other Pricing Practices
  • Network Industries
  • National Railway Systems
  • Pricing Practices
• Assessing Regulatory Viability
  
  • Compensation for Access
  • Increased Regulatory Burden

Considerations and Recommendations

• Right to a Rate and Level of Service Obligations
• Interswitching Provisions
• Competitive Line Rates
• Other Provisions
  • Substantial Commercial Harm
  • Commercially Fair and Reasonable
• Final Offer Arbitration
• Revenue Cap on Western Grain Rates
• Enhanced Running Rights
  • What the Panel Heard
  • Running Rights to Enhance Competition
  • Applications for Running Rights
  • Traffic Solicitation
  • Negotiations
  • Public Interest Test Considerations
  • Carrier Obligations and Shipper Protections
  • Rail Access Pricing
  • Rail Access with Traffic Solicitation
  • Rail Access without Traffic Solicitation
  • Safety and Liability
  • Constitutional Implications
  • Internal and International Trade
• Other Competitive Access Proposals
  • Regional Railways
  • Brotherhood of Maintenance of Way Employees Approach
  • The OmniTRAX Proposal
  • The Panel's Assessment
• Vertical Separation
  • Views on Vertical Separation
  • The Panel's Assessment
• Railway Line Transfer and Discontinuance

Chapter 6
The Merger Review Process

Background
The Panel's Assessment
Considerations and Recommendations

Chapter 7
The Airline Industry

Market Developments

• Traffic Trends
• The Domestic Market
• Transborder and International Markets

Impediments to Competition
Considerations and Recommendations

• Pursuing the Benefits of Foreign Competition
• Promoting Multilateral Reforms
• Relaxing Airline Ownership Restrictions
• Eliminating Potential Barriers to Entry
• Removing Fare Regulation
• Revising the Merger Review Process
• Preparing for Service Termination
• Meeting Data Requirements

Chapter 8
Marine Transport

Marine Infrastructure and Services

• Ports
• St. Lawrence Seaway
• Marine Navigation, Ice-Breaking and Dredging

Concerns about Infrastructure

• Issues and Concerns about Ports
• Issues and Concerns about the St. Lawrence Seaway

Domestic Shipping Sector

• The Coasting Trade Act
• Issues and Concerns in the Domestic Shipping Sector

International Shipping Sector

• The Shipping Conferences Exemption Act, 1987
• Issues and Concerns in the International Shipping Sector
• Issues and Concerns about the Shipping Conferences Exemption Act

Considerations and Recommendations

• Marine Services
• The Shipping Conferences Exemption Act, 1987
• The Coasting Trade Act

Chapter 9
Governance of the Newly Commercialized Infrastructure Providers

The New Institutional Arrangements

• Airports
• Air Navigation
• Ports
• St. Lawrence Seaway

Considerations and Recommendations

• Setting a Future Policy Direction
• Strengthening Accountability and Control
• Airports
  • Airport Improvement Fees
  • Charges to Airlines
  • Non-Aeronautical Services
  • Legislation to Enhance Accountability
  • Subsidiaries
  • Reporting Requirements
  • Airline Access
  • Federal Regulations
  • Assistance Program for Smaller Airports
• Air Navigation
• Ports
  • Borrowing Restrictions
  • Appointment of Directors
  • Subsidiaries
  • Ancillary Services
  • Performance Measures
  • Review of the Canada Marine Act
• St. Lawrence Seaway

Chapter 10
Paying for Roads

The Network and the Traffic it Carries
Traffic Trends
Funding the Network
Environmental Concerns
Appropriate Charging for Road Use

• Infrastructure Costs
• Social Costs
• An Efficient Charging Scheme

Alternative Road Management and Financing

• Toll Roads
• Urban Road Agencies
• Road Funds

Road Funds as the Basis of Future Commercial Management of Roads
Considerations and Recommendations

• Reforming Transportation Funding and Management
• Redirecting Federal Fuel Tax Revenues
• Options for Funding and Management Agencies

Chapter 11
Ferries, Intercity Buses and Passenger Trains

Ferry Services

• Trends and Current Status
• Industry Structure

Intercity Bus Services

• Policy Issues

Intercity Passenger Rail Services

• Rationale for VIA Rail Subsidies
• A Future for VIA Rail Services
  • Services with Tourism Potential
  • Quebec City-Windsor Corridor
  • Services to Remote Communities

Chapter 12
The National Interest in Urban Transportation

Trends and Current Status
Current Subsidy Policies
Benefits from Transit
Measures to Increase Transit Use
Possibilities for Efficiencies in Service Delivery
Considerations and Recommendations

Chapter 13
Preserving Urban Rail Corridors

Access for Commuter Services

• Issues and Concerns
• Considerations and Recommendations

Preserving Discontinued Branch Line Corridors

• Issues and Concerns
• Considerations and Recommendations
  • Discontinuance Process
  • Valuation of Corridors
  • Rail Line Banking

Chapter 14
Transportation Accessibility for Persons with Disabilities

Regulations and Codes of Practice
Complaints
What the Panel Heard
Considerations and Recommendations

Chapter 15
The Trucking Industry

The Federal Role
Implementing a National Safety Code
Two-Tier Regulatory System
Re-regulation
Co-ordinating Policies with NAFTA Partners
Vehicle Emissions
Considerations and Recommendations

Chapter 16
The Impact of E-Business on Transportation

Current E-Business Use
How E-Business Affects Transportation

• Transport Demand
• Service Requirements
• Transport Capability
• Mode Shifts

E-Business Applications in Transportation

• Marine Sector
• Aviation
• Trucking
• Freight Forwarding
• Railways

Considerations and Recommendations

• Barriers to E-Business Adoption

Chapter 17
The Environment and Sustainable Development

The Concept of Sustainable Development
Transportation and Sustainable Development
Key Trends

• Energy Use
• Greenhouse Gas Emissions

Existing Policy and Legislation

• Climate Change Strategy
• Sustainable Development Strategies

Powers and Instruments for Meeting Sustainable Development Objectives in Transportation

• Legislative Powers
• Working in Partnership
• Financial and Fiscal Instruments

Considerations and Recommendations

Chapter 18
Public Policy Development

Transportation Data

• Institutional and Operating Environment
• Regulatory/Legislative Framework
• Data Gaps
• Costs
• Considerations and Recommendations
  • Access to Airline Data
  • New Data and Methods
  • Data Sharing by Government Departments
  • Data on Subsidized Services
  • Non-Compliance
  • Restricted Information

Transportation Research
Policy and Legislative Cohesion

Chapter 19
Other Legislative Changes

Agency Power to Compel Observance of Obligations
Statutory Time Limit
Mediation
Review of the Act
Railway Line Construction
Railway Police

Chapter 20
Toward a Vision for National Transportation Policy

What the Panel Heard
The Current Policy Statement
Evolution of the Policy Statement
Toward a New Statement of National Transportation Policy

Appendix 1

The Panel's Mandate and Terms of Reference
Terms of Reference
Excerpt from section 53 of the Canada Transportation Act

Appendix 2

Legislative Context
Organization of the Canada Transportation Act of 1996
Significant Legislative Changes since the National Transportation Act, 1987
Public and Private Acts Affecting Transportation

Appendix 3

Design Considerations for the Proposed Roads and
Transport Funding Agencies

Appendix 4

Submissions and Consultations

Appendix 5

Secretariat Staff and Contractors