C CA AN NA AD DA A T TR RA AN NS SP PO OR RT TA AT TI IO ON N
A AC CT T R RE EV VI IE EW W
B Br ri it ti is sh h C Co ol lu um mb bi ia a S Su ub bm mi is ss si io on n.Page 2
Canada Transportation Act Review British Columbia Submission
TABLE OF CONTENTS
1 Executive Summary ..................................................................................................... 3
2 Introduction.................................................................................................................. 5
3 National Transportation Vision .................................................................................. 6
4 National Transportation Policy................................................................................... 8
4.1 Transportation Funding................................................................................... 13
5 Transportation Data Strategy .................................................................................... 15
6 Urban Transportation................................................................................................ 17
7 Aviation Policy and Air Services ............................................................................... 19
7.1 National Aviation Policy................................................................................. 19
7.2 Regional Airport Viability .............................................................................. 21
7.3 National Airports ............................................................................................ 24
7.4 Tourism Related Air Services......................................................................... 26
8 Ports in British Columbia .......................................................................................... 29
8.1 Major Ports...................................................................................................... 29
8.2 Northwest Corridor ......................................................................................... 31
8.3 Small Ports and Marine Facilities ................................................................... 31
8.4 Dredging ......................................................................................................... 32
9 Navigable Waters ....................................................................................................... 34
10 Ra 35
10.1 Passenger Rail Policy...................................................................................... 35
10.2 Subsidized Scheduled Passenger Service ....................................................... 36
10.3 British Columbia’s Grain Users...................................................................... 36
11 National Highways..................................................................................................... 38
11.1 National Highway System .............................................................................. 38
11.2 National Highway System – Ferry Routes...................................................... 40
11.3 Intelligent Transportation Systems ................................................................. 40
12 Electronic Commerce................................................................................................. 43
13 Transportation and a Sustainable environment ....................................................... 44
14 Conclusion.................................................................................................................. 46.Page 3
Canada Transportation Act Review British Columbia Submission
1 EXECUTIVE SUMMARY
The Province of British Columbia has prepared this submission to the Canada Transportation
Act (CTA) Review Panel to identify Provincial positions and document specific Provincial
concerns.
In developing positions and identifying issues the Province consulted stakeholders through
meetings and an electronic survey. In addition, sections of the submission were circulated
for comment.
Recommendations 1 and 2 suggest that a national transportation policy should incorporate a
vision and be updated to reflect the intermodal integration of transportation in the global
environment.
Recommendation 3 suggests the national transportation policy be supported by a national
transportation investment strategy.
Recommendation 4 suggests transportation in Canada must be supported by a national
transportation data strategy.
Recommendation 5 recognizes the need to address urban congestion by preserving corridors
and integrating the transportation policy and planning of all levels of government.
Recommendations 6 through 8 suggest the federal government retain responsibility for
airports and air services. They recommend a national aviation policy be developed that
supports rural access, tourism and air cargo services. Regional airports require increased
funding, training, business planning and regulatory review. The national airports policy must
be revised to address the needs of small national airports and set fair equitable fees at large
airports.
Recommendation 9 suggests tourism related air services require review..Page 4
Canada Transportation Act Review British Columbia Submission
Recommendations 10 through 13 suggest port access be federally supported and port
competitiveness be increased; the strategic importance of maintaining the northern corridor
to Prince Rupert is highlighted, as is the importance of maintaining small ports in BC
communities. The Province also recommends that public services such as dredging provided
by independent port authorities be removed.
Recommendation 14 calls for cost-effective bridge crossings of navigable water.
Recommendations 15 through 17 suggest the policy respecting passenger rail services be
clarified; subsidized scheduled passenger rail service be treated equitably; and the
discriminatory pricing against B.C. feed grains be discontinued.
Recommendations 18 through 20 suggest highways be included in the CTA and that where
highways are serviced by ferry routes, funding for those services be applied consistently
across Canada. The recommendations support a federal role in implementing intelligent
transportation systems.
Recommendation 21 suggests the demands of the digital economy on transportation be
incorporated into federal policy and legislation.
Recommendation 22 suggests the federal government provide policies and investments for
environmentally sustainable transportation and be responsible for establishing data standards
for monitoring sustainability..Page 5
Canada Transportation Act Review British Columbia Submission
2 INTRODUCTION
The British Columbia submission to the Canada Transportation Act (CTA) Review Panel has
been compiled with the objectives of setting out Provincial positions and ensuring that
specific Provincial concerns are documented. The document is not intended to be a
comprehensive review, but rather will focus on specific positions and concerns.
The provincial submission has taken into consideration concerns provided by stakeholders.
An electronic survey was circulated in December 2000. Sections of the submission were also
circulated for comment as a discussion paper. Stakeholder meetings were also held.
As noted in the earlier submission on rail competition, empirical data that would support an
analysis of the impact of potential changes is not available. As a result, the Province is
taking a cautious approach to positions and recommendations..Page 6
Canada Transportation Act Review British Columbia Submission
3 NATIONAL TRANSPORTATION VISION
The Canada Transportation Act Section 5 sets out the principles of a national transportation
policy. However, the Section provides no vision for the future of transportation in Canada.
A vision statement outlining what an ideal transportation system would look like in 10 to 15
years would allow an analysis of how well existing and future policies support the direction
of national transportation policy. A vision statement would also maintain a focus on the
importance of transportation to the national economy, Canada’s ability to compete globally,
and employment.
Recommendation 1
British Columbia supports the incorporation of a vision in the national transportation
policy of Canada.
British Columbia believes a national transportation vision must:
• have the ability to lead transportation policy and decisions;
• be useful as a measure of our accomplishments in transportation over time;
• apply consistently across all provinces and territories;
• support equal access to all parts of Canada by all Canadians;
• support a transportation system that bolsters economic activity and social well-being;
• promote a transportation system that enables liberalized trade and keeps Canada
globally competitive;
• foster sustainable transportation systems that minimize environmental impacts, and
encourage environmentally sustainable development patterns;
• guide development and land use in an economic, healthy, sustainable and socially
responsible way.
• promote the resolution of outstanding tenure issues through Indian reserve lands
• support the safe transportation of people and goods;
• promote an equal balance between modes that are seamlessly integrated;
• recognize the role of transportation investment in economic development;.Page 7
Canada Transportation Act Review British Columbia Submission
• encourage the application of new technology to transportation; and
• support a multi-modal west-east corridor that supports national movement..Page 8
Canada Transportation Act Review British Columbia Submission
4 NATIONAL TRANSPORTATION POLICY
Section 5 of the Canada Transportation Act has established the foundation for a national
transportation policy. It speaks to a number of existing concerns such as fairness between
modes and balancing commercial viability of transportation “with regional economic
development objectives so that the potential economic strengths of each region may be
realized.”
However, a number of important elements need to be addressed in revisions to the national
transportation policy. In reviewing the national transportation policy, the CTA Review Panel
should take the following concerns into consideration.
A) Transportation in Canada can no longer be separated modally. The Canadian
transportation network has matured into an integrated multi-modal market.
Furthermore, modal interdependence will grow stronger in Canada as global trade
increases.
The CTA does not speak to the interaction between modes. Current economic
matters such as licensing, cost allotment, market share and competitive access of
individual firms are separated modally by the Act.
The CTA needs to incorporate a comprehensive national transportation policy that is
modally integrated and treats the transportation system as a network. The national
policy needs to foster the efficiencies that can be gained through the promotion of
intermodal transportation. Ongoing changes in the system need to be reviewed with
the entire system in mind rather than specific modes.
A strong, well-integrated intermodal transportation system will also support
cross-border efficiencies..Page 9
Canada Transportation Act Review British Columbia Submission
B) Transportation policies and legislation must take into consideration the competitive
position of our world trading partners. As trade with the United States increases and
the continental integration of transportation evolves, the need for a level playing field
on investment, safety standards and environmental regulation will increase in
importance. Countries that facilitate and encourage re-investment of capital in
terminals, rolling stock and information technology will continue to have a
competitive advantage in the future.
Canada’s large area, limited population, and remote resources require a
disproportionate amount of investment in infrastructure to bring goods to markets.
This creates a competitive disadvantage relative to our trading partners. A national
transportation policy must recognize the cost and importance of maintaining a large
public and private infrastructure while competing in global markets.
The lack of ongoing public infrastructure investment in Canada has been significantly
masked by the relatively low value of the Canadian dollar. The wide differential
between U.S. and Canadian dollars has meant that Canadian ports have remained
attractive to North American importers. However, over the long term, investments
made possible at American ports by special tax provisions or the ability to raise
outside capital will challenge the ability of Canadian ports to compete for traffic.
This will be especially true if the American economy slows and the Canadian dollar
strengthens relative to the U.S. dollar.
C) Canadian trade policy has aggressively pursued global trade and free markets.
Reductions in trade barriers, tariffs, duties and subsidies have been the focus of
federal policy for more than a decade. Canadian transportation policy must address
the resulting shift to north-south trade demand and international markets.
The existing transportation policy has a strong focus on domestic markets. Section 5
makes no reference to trade or international competition. In fact, Section 5 (g)
specifically makes reference to competition in the Canadian marketplace. The.Page 10
Canada Transportation Act Review British Columbia Submission
Canadian national transportation policy needs to be broadened to be consistent with
the trade policies that have pushed transportation into an international context.
D) Federal policy changes in the 1990s reduced subsidies and commercialized
transportation services. In 1994, an argument was developed at the federal level that
transportation was subsidized to the tune of $1.6 billion annually 1 , clearly reflecting
the philosophy that transportation is a cost, not an economic investment or asset.
The United States federal government is spending U.S. $218 billion on transportation
infrastructure over six years. The benefit of this investment to economic
development in the U.S. will also make it difficult for Canada to keep pace.
Countries using infrastructure investment as an economic driver will create a
long-term advantage for themselves over Canada.
Federal transportation policy must treat transportation investment as an economic
driver.
E) When the federal government devolved transportation infrastructure and services in
Canada, federal deficit reduction was the overall objective. As national assets were
turned over to separate operating authorities, federal rents and fees on those assets
were negotiated in the context of addressing the deficit. During devolution the
highest and best price was negotiated based on what local conditions would support.
This led to inconsistent rents and fees across Canada as well as a void in any policy
rationale for setting rents and fees.
A market approach to setting rents and fees that results in inconsistent rates across
Canada may be justified; however, there currently is no policy basis for these
decisions. The national transportation policy needs to support whatever rationale
exists for rents and fees on federal land.
1 Transport Canada. National Airports Policy. TP12163 E. July, 1994. P.1..Page 11
Canada Transportation Act Review British Columbia Submission
F) The most significant challenge for a national transportation policy will be maintaining
environmental sustainability. Policies that balance the need to keep the economy
competitive with the long-term survival of the planet are fundamentally important,
particularly given the vulnerabilities of the Canadian north to global climate change.
However, the global context of trade and transportation will need to be considered
when setting targets or regulating markets. Environmental regulations that force
Canadian companies to incur costs that are not faced by their global competitors will
make it very difficult for them to compete. For example, it is estimated that new
environmental requirements in the forestry industry will cost $40 million per mill 2 .
Developing countries openly court international business investment by not
addressing environmental cost. A national policy can set the context for
environmental sustainability. The details will need to be addressed in specific
sustainable transportation policy and legislation that carefully measure costs and
benefits as well as the competitive environment.
G) National transportation policy should also emphasize the movement of people and the
provision of access to all people as much as it emphasizes the movement of goods
and the viability of transportation industries. The CTA speaks strongly of the need to
ensure access for persons with disabilities only in Section 5. All transportation policy
and legislation must be changed to reflect the philosophy espoused in Section 5
regarding accessibility for the disabled.
H) A high priority should be placed on the interests of the transportation consumer.
Transportation policy and legislation places considerable emphasis on carriers and
markets. More focus is required on the performance of the transportation system for
consumers.
2 The Chamber of Shipping of British Columbia. British Columbia Ports Handbook 2000-2001, Page 6..Page 12
Canada Transportation Act Review British Columbia Submission
I) The national transportation policy must take into account the unique needs of rural
and remote communities that are transitioning from resource based economies to the
new global economy. Healthy transportation infrastructure means rural communities
are able to take advantage of new opportunities. Most rural and remote communities
have a low tax base from which to support the transportation infrastructure necessary
for long-term development and sustainability. As with urban centres, these
communities need easy access to the national and global economy. It is therefore
imperative that the national transportation policy balance urban and rural
transportation needs fairly.
Recommendation 2
British Columbia recommends that revisions be made to the national transportation policy.
These include changes that reflect the:
• integration of modal transportation into multi-modal networks;
• need for levels of transportation investment equivalent to those of our trading
partners so as to remain globally competitive;
• impact of free trade on transportation patterns;
• importance of transportation investment to economic development;
• need for a consistent policy on rents and fees on federal land;
• long term needs for environmentally sustainable transportation;
• need for accessibility to be included in all transportation policies and legislation;
• needs of transportation consumers
and
• unique position of rural communities as well as the need to balance urban and
rural transportation needs fairly..Page 13
Canada Transportation Act Review British Columbia Submission
4.1 TRANSPORTATION FUNDING
Despite a long-standing policy on national transportation the federal government was able to
completely set it aside in the interests of reduced spending in the 1990s. This was possible
because the national transportation policy did not outline the role of governments in the
provision or management of transportation infrastructure. No principles were established for
creating, maintaining or managing public infrastructure, nor were there criteria or guidelines
for public investment in transportation.
As the federal devolution of infrastructure was undertaken throughout the 1990s and as
intermodal transportation has grown, the financial responsibilities between the public and
private sector have become blurred. Some transportation responsibility areas, such as
airports or marine ports have been devolved to private or non-profit entities. Others have
created entirely new financial responsibilities for government; for example, the shift from rail
to road has increased the provincial role in freight transportation. The 1994 federal program
review 3 increased the financial pressure on provincial and municipal infrastructure. At the
same time, provinces also devolved local transportation infrastructure to municipal and
regional governments. This reshaping of transportation has created a large infrastructure
deficit 4 that needs to be addressed by all levels of government. Addressing the needs of
transportation infrastructure can be better managed if the financial responsibilities, with
appropriate revenue streams, can be clearly delineated for all levels of government in
national transportation policy and supporting legislation.
A significant reason for the impotence of the national transportation policy is the gap
between policy, legislation and implementation. A common method of bridging this gap is
the linking of transportation policy and legislation to an investment strategy or program
3 Transportation Transition Plans. Transport Canada. September 12, 1994.
4 The Association of Consulting Engineers of Canada. Infrastructure Works! A Pre Budget Submission to
the House of Commons Standing Committee on Finance. November, 1999. p.2.Page 14
Canada Transportation Act Review British Columbia Submission
funding 5 . The most familiar example of this is the American model where federal funding is
tied to compliance with regulations and policies. For example, highway funding eligibility
depends on meeting environmental standards that reflect national policies. Canadian policy
is weaker, because no similar links exist between policy and funding.
Linking funding to legislation and policy ensures that standards are adhered to and that the
spirit of the national transportation policy has both a legislative and financial foundation. In
B.C., overall annual highway expenditures closely reflect the revenue from fuel tax. As well
portions of the fuel tax are dedicated to address transportation requirements. In contrast, the
federal government collects approximately $700 million from fuel taxes in B.C. each year
with little or none returned to highway investment.
In the context of national economic and social goals, a transportation investment strategy that
ties revenues to expenditures would help to ensure that transportation system charges reflect
sustainable operating and capital costs. It would help to avoid overbuilt infrastructure,
inappropriate management of transportation assets, and the proliferation of regulation. An
investment strategy would also support equitable funding allocations between provinces and
territories. Revenue streams could be linked to appropriate levels of government.
Recommendation 3
British Columbia recommends that a national transportation policy be supported by a
national transportation investment strategy that outlines:
• roles of governments in the provision and maintenance of public infrastructure;
• appropriate revenue streams for public investment by governments;
• funding linkages to policy and legislation;
• equitable funding between provinces/territories and transportation modes;
• how transportation revenues and expenditures are balanced; and
• provisions for long term sustainability of operating and capital transportation costs.
5 The TEA21 program in the United States is supported by the National Highway Fund, a dedicated
funding program supported primarily by fuel tax..Page 15
Canada Transportation Act Review British Columbia Submission
5 TRANSPORTATION DATA STRATEGY
A national transportation data strategy will benefit transportation vision, policy, funding and
the management of infrastructure. It is an essential ingredient in transportation decision
making by both the public and private sectors.
A national transportation vision is often justified this way: “how will we know when we get
there, if we don’t know where we are going.” Along the same lines, we also need the ability
to accurately measure where we are.
In Canada, a lack of empirical data is a major impediment to our knowledge and
understanding of transportation problems and solutions. One of the most graphic examples
of this problem was provided when the federal government analyzed the impact of the Kyoto
agreement on climate change. Developing a meaningful analysis of transportation’s role in
climate change and appropriate measures to respond to international emissions targets was
limited by a lack of transportation data. The first recommendation for future work in the
Transportation Table’s Climate Change report was to “develop a strategy to improve the
quality of transportation data in Canada”6 .
The ability to link transportation funding to a national policy will depend on credible
information about the needs and uses of transportation within Canada and between modes of
transportation. Data gathering and reporting needs to be sophisticated enough to capture the
use of multiple modes in a single shipment. Where formulas are developed to share benefits,
costs and set charges, data will be crucial to fair and balanced apportionments that reflect
national policies and provincial/territorial needs.
The ability to share and use data through the Internet has made this data more relevant and
valuable. This will likely mean Canadian companies who do not have access to the same
level of information as their competitors will be at a disadvantage.
6 Transportation and Climate Change: Options For Action. Transportation Table Report. Page 127..Page 16
Canada Transportation Act Review British Columbia Submission
A data strategy must provide the legal authority to gather, manage and disseminate
information centrally, especially the legal ability to attain proprietary information
confidentially. It must also provide the funding for a data management program.
Recommendation 4
British Columbia recommends that a national transportation data strategy be established
in legislation and that the federal government provide the financial support and legal
ability to gather, manage and disseminate transportation data..Page 17
Canada Transportation Act Review British Columbia Submission
6 URBAN TRANSPORTATION
Human settlement in Canada has created congestion in our economic hubs. In 1996,
82 percent of the population of B.C. lived in Greater Vancouver or Greater Victoria 7 .
Because most of the trading economy of the nation flows through these hubs, congestion
threatens growth and future economic prosperity. Infrastructure planning and policy has not
adequately managed the problem of congestion and its impact on the gateway’s
competitiveness and efficiency. Some estimates place the cost of foregone economic activity
due to congestion at up to $2 billion per year in B.C. alone 8 .
As Canada grows, the interdependence of land use, transportation and the national economy
increases in the urban areas. Urban centres in B.C. have experienced large and rapid
population growth, which must be addressed by moving people more efficiently, densifying
settlement and establishing mixed land use that reduces reliance on transportation by
integrating residential, commercial and industrial activities. The need to integrate federal
transportation policy, provincial transportation responsibilities and municipal land use is
obvious. Strong integration will provide the best use of limited resources and support
environmentally sensitive urban development.
The Canada Transportation Act must ensure that the integration of transportation policy and
planning between all levels of government is undertaken. In addition, the resources of all
levels of government must be coordinated to address the unique challenges of Canadian
urban centres. Policy and legislation needs to redefine the federal role in the urban context
and include financial support for initiatives such as urban transit.
The importance of preserving and expanding transportation arteries that support development
in urban areas is fundamental. The Canada Transportation Act must ensure that urban
7 BC Stats, http://www.bcstats.gov.bc.ca/data/pop/pop/ineq.pdf
8 Source: Presentation by Jonathan Hugget, Transport and Infrastructure cluster, BC Business Summit,
November 8, 1998, http://www.bcbusiness-summit.com/reports/report98/infrastructure.htm.Page 18
Canada Transportation Act Review British Columbia Submission
corridors are protected for long-term transportation needs. It must not be possible to
compromise existing transportation corridors by segmenting them or by developing
abandoned rights-of-way that have future transportation uses.
Recommendation 5
British Columbia recommends the Canada Transportation Act ensure the integration of
transportation policy and planning by all levels of government; that unique urban needs
are addressed by national policy and investments; and that urban transportation corridors
are protected from segmentation and development..Page 19
Canada Transportation Act Review British Columbia Submission
7 AVIATION POLICY AND AIR SERVICES
7.1 NATIONAL AVIATION POLICY
The 1994 National Airports Policy that guided the devolution of airports and air navigational
services in Canada had no link to the policy principles of the Canada Transportation Act.
The fact that as a national policy it dealt exclusively with airports and navigation, without
including the context of other air services or other transportation linkages, is testimony to the
lack of an integrated approach.
Canada and all levels of government require the guidance of national policies that support a
transportation network both modally and intermodally. A national aviation policy would
have its roots in the national transportation policy. Accordingly, British Columbia
recommends that the Canada Transportation Act require the Federal Minister to maintain a
national aviation policy. The national aviation policy would outline criteria for levels of
service, access to remote areas, funding principles, and the management, maintenance and
provision of infrastructure. It would outline the rights and responsibilities of operators,
industry suppliers, passengers and all other sectors that intersect with Canadian aviation. As
no organization represents the rights of consumers as a group, a national aviation policy
would set out a Passenger Bill of Rights.
A Bill of Rights would define: truth in advertised prices, schedules and seat availability;
equal access; unbiased comparative travel information; comfortable seats, reasonable space
for luggage, and clean sanitary facilities regardless of class of service; assistance in making
connections; use of all, part or none of the segments on any ticket purchased; timely,
complete and truthful information regarding delays, cancellations and equipment changes;
timely and courteous assistance for the disabled and unaccompanied children; and
appropriate in-flight medical emergency assistance..Page 20
Canada Transportation Act Review British Columbia Submission
In addition to supporting passenger service the national aviation policy must address the
needs of the air cargo industry. Canada does not have an existing or planned network of
major air cargo hubs to support and boost high value exports and imports. Federal policies
need to encourage the development of air cargo services. International agreements,
investment incentives and policies that facilitate trade can all support the development of air
cargo.
Federal policy and legislation must support the economic and social needs of B.C.’s rural and
remote communities. Improving airline service to rural and smaller airports is a key priority.
These communities rely on air services for medical evacuation and other emergency services;
airports support forest fire bases that protect local, provincial and national resources.
Tourism, particularly eco-tourism, skiing and recreational activities are supported by airports.
Tourism is a $1.9 billion industry in B.C. It directly employs almost 111,000 British
Columbians and accounts for approximately one in every 13 jobs in the province. Tourism is
the second-largest export industry in B.C., behind only forestry.9
Without adequate service, economic and social development in these smaller communities is
threatened. Businesses require access to airline service to ship products, access
manufactured parts, increase sales, and complete many more business functions. Individuals
must be guaranteed access to emergency services as well as regular health care
transportation.
Recommendation 6
B.C. recommends that the CTA require the Federal Minister to maintain a national
aviation policy that includes a Passenger Bill of Rights. The aviation policy would address
the need for rural and remote air access and support the development of tourism and air
cargo service.
9 Source: Tourism BC, http://www.tbc.gov.bc.ca/tourism/tourismhome.html.Page 21
Canada Transportation Act Review British Columbia Submission
7.2 REGIONAL AIRPORT VIABILITY
Under the 1994 National Airports Policy, British Columbia had eighteen regional/local
airports identified for devolution; sixteen have been transferred to local operation.
Prior to devolution the federal government estimated that British Columbia’s regional
airports would lose approximately $10.2 million in 1994/95 10 . According to Transport
Canada’s 1994 ten-year capital plan, the total capital requirement at British Columbia
airports was estimated to be $22.6 million 11 when the National Airports Policy was
announced. These needs have been partly addressed by the Airports Capital Assistance
Program (ACAP) and partly by the capital allocations in the airport transfer process. Capital
requirements, particularly for expansion activities at regional airports, remain outstanding.
More importantly, operating shortfalls remain a concern at a number of small airports.
The National Airports Policy concluded its transitional funding to devolved airports in
April 2000. Now that this funding program is finished, concern is arising that airports will
close in British Columbia, as the financial viability of the devolved facilities erodes,
particularly if costs are imposed by new federal regulation. There is also a concern that the
financial shortfalls at these airports have been shifted to local taxpayers when the
responsibility for maintaining a network of airports that provides air access to all Canadians
should rest with the federal government.
When airports were devolved by the federal government, standard sets of documentation and
procedures were used in the transfer process. As most transfers have been completed
problems with the “boiler plate” approach have emerged. For example, no provisions were
made for training development or certification at regional airports in the transfer process. As
experienced, Transport Canada-trained personnel move on or retire the development of new
staff will need to be addressed. Given the complexity of environmental regulations on the
10 B.C. Ministry of Employment and Investment. National Airports Policy: Overview and General
Assessment. September 1994. Table 1.
11 Paul Levelton. Summary, Airport Capital Financing Options. KPMG. May 2, 1995..Page 22
Canada Transportation Act Review British Columbia Submission
operating side, for example, serious accidents increase in likelihood. Little provision has
been made for airport planning or management. In addition, Transport Canada’s “option to
purchase” on airport transfer agreements has led to tenants being unable to secure financing
for leasehold improvements, curtailing rather than enhancing new investment.
The Airports Capital Assistance Program is intended to address the capital needs at airports.
This program has expanded only marginally as airports have been devolved across Canada,
from a budget of approximately $35 million to a current budget of $39 million. In the
meantime, demands on the program have expanded. The creation of Nunavut has expanded
the needs for airport assistance in the north. The devolution process has also expanded the
number of airports that rely on this program.
The prioritization for funding under the ACAP program has also raised concerns.
Technically, ACAP funding can be used to expand facilities; however, Transport Canada
does not consider this a priority. Consequently airports that could benefit by expanding into
new markets, thereby increasing their economic viability, are prevented from doing so by a
lack of funding.
The lack of strategic and business plans at some regional airports has also been identified as a
concern 12 . One of the methods of addressing the need for these plans at newly devolved
airports would be to require plans prior to being eligible for ACAP funding.
The closure of regional airports would also have significant impacts on small airports. Small
airports support many air services important to the entire aviation industry, despite not being
part of the regional network of airports that have scheduled flights. Important services
include pilot training, aircraft maintenance schools, aircraft repair and restoration, and basic
air access for medivac and resource protection. The closure of any airport will result in
negative economic impacts on both communities and the air industry.
12 Intervista. Getting the Facts: BC Regional Airport Viability Study. March, 2001..Page 23
Canada Transportation Act Review British Columbia Submission
Regional airports are an important part of the transportation infrastructure for rural and
remote communities. The merger of Canadian Airlines and Air Canada has affected the
frequency of service and the number of seats available to regional airports. These impacts
further challenge the financial viability of regional airports that rely on landing fees and
passenger traffic to succeed. Regional airports that have fee structures based on landings
have been hurt financially by the reduction in flights. Most airports have adjusted fee
structures to passenger-based charges. This has mitigated some, but not all, of the impacts of
reduced service. The cost of regional service remains high for consumers.
As part of the devolution process, safety standards at airports were reviewed. As a result of
this review, airport fire fighting safety standards were redefined, generating a less costly
requirement for emergency staffing and equipment. These lower costs made regional
airports more attractive for transfer to local authorities. However, now that many of the
facilities have been transferred, the federal government is reviewing safety requirements at
airports with a view to increasing requirements. The cost of meeting these standards will
now fall to devolved airports.
Strong criticism has been leveled at the federal process used to review changes in safety
regulations. The process has not been transparent or clearly understood. The development of
the regulations has not undergone a full cost benefit analysis of all tangible and intangible
considerations. British Columbia supports implementing a new process for reviewing airport
safety that is consultative, transparent and thorough. Any costs associated with changes to
regulation must be completely covered by ongoing federal funding. The review of safety
regulations must include an assessment of the cost imposed by those changes.
A number of regulatory changes, not including safety, have the ability to arbitrarily add cost
to the operation and threaten the long term viability of regional airports. All future
regulatory changes must be accompanied by the appropriate level of federal funding..Page 24
Canada Transportation Act Review British Columbia Submission
Recommendation 7
The federal government must remain accountable for airports and air services in Canada.
The following recommendations are made to this end:
• In consultation with provinces, territories and stakeholders, minimum levels of air
access to all areas of Canada need to be established under the CTA.
• The Airports Capital Assistance Program needs to be expanded.
• Training standards, business planning and management development at regional
airports should be federally supported; creating a requirement to meet these needs
under the ACAP should be investigated.
• All changes to federal regulation, including safety, must be appropriately supported by
federal funding.
British Columbia would like to point out that the constitutional responsibility for
transportation remains with the federal government.
7.3 NATIONAL AIRPORTS
British Columbia has four national airports designated under the 1994 National Airports
Policy. Airports in Vancouver, Victoria, Prince George and Kelowna are part of Canada’s
National Airports System. The transfer of Prince George airport to a Canadian airport
authority has not yet been achieved.
National airports, as they are defined in current Transport Canada policy, are leased from the
federal government. Lease arrangements are very cumbersome and inappropriate for small
airports in the national system. These airports are not eligible for federal Airports Capital
Assistance Program (ACAP) funds. As well, national airports are required to pay rent to
Transport Canada, which remains the owner of the land and original infrastructure. By
contrast, regional airports were transferred via a sale of land and facilities for $1. With
Transport Canada as landlord, land development at national airports is more complicated and
requires federal approval, keeping Transport Canada involved in airport operations, contrary.Page 25
Canada Transportation Act Review British Columbia Submission
to the intent of the national airports policy. Small national airports, therefore, have limited
economic potential while at the same time being subject to rental payments to the federal
government for their lease.
British Columbia supports a review of the classification of “national airports” under federal
policy. Small national airports must have the ability to become viable. The transfer of
ownership at small national airports should be undertaken as part of the review. The
requirement for small national airports to operate as Canadian airport authorities, as defined
in the current policy, must also be reviewed.
National airports pay fees under the terms of their ground lease agreements (e.g. Vancouver
paid approximately $60 million in 2000). The rationale for rental payments is based on the
ability to pay rather than federal transportation policy. The result is inconsistency in ground
leases across Canada and impeded expansion and development due to reduced availability of
capital funding. Further, money collected by the federal government from national airports is
not re-invested in the regional airports that feed national airports or any other Canadian air
service.
Fees at national airports across Canada should be fairly and consistently assessed. There
should be a cap on the amount of revenue that can be collected at all national airports.
Recommendation 8
British Columbia recommends that the classification of national airports as defined in the
National Airports Policy be reviewed and that requirements for Canadian airport
authorities be changed at small national airports. Larger national airports must have fair
and consistent rents applied nationally and be subject to a cap on the amount of revenue
that can be collected by the federal government..Page 26
Canada Transportation Act Review British Columbia Submission
7.4 TOURISM RELATED AIR SERVICES
Affordable, accessible and quality passenger and freight airline service is fundamental to the
viability of the tourism industry in British Columbia and across Canada. The recent airline
industry restructuring that resulted in a single dominant Canadian air carrier has created
concerns that need to be addressed by the CTA.
• Data gathering and reporting to monitor the Canadian airline industry, including average
fares and market shares, are required.
• The “rights of establishment” provision that restricts foreign carriers from establishing
airlines in Canada must be revised.
• The continuation of regional services by the dominant carrier must be supported.
• The ability to regulate domestic airline pricing when there is insufficient competition
needs to be reviewed.
An expanding market of knowledgeable travellers is looking for spectacular and authentic
urban and nature experiences. The impacts of reductions in domestic capacity on tourism are
primarily in regions “beyond-the-gateways”; this will have a significant effect on B.C.’s
ability to remain competitive in the global market. Northern and remote areas of B.C., in
particular, are subject to high air transportation costs, higher passenger fares, and may be
particularly vulnerable to reduction or even cancellation of airline service in the future as a
result of the restructuring of the airline industry.
Bilateral air services agreements should be revised to remove restrictions on foreign carriers
servicing Canadian gateways and to increase access to “beyond-the-gateway” markets for
foreign carriers. For the time being, Air Canada has agreed not to end service to regional
communities for three years. However, when that period has ended, it would be reasonable
to assume that some northern and remote communities will lose Air Canada services.
Decreases in connectivity or capacity of regional markets to main gateway airports may also
result in greater difficulty attracting price-sensitive tourists to areas “beyond-the-gateway.”
As well, to attract the non-auto traveller, there is a need to promote and enhance passenger
transfer linkages between all modes of transportation including bus, air, ferry and rail. It.Page 27
Canada Transportation Act Review British Columbia Submission
must be kept in mind that B.C. is emerging as a global destination for eco-tourism, which
injected an estimated $808 million into our economy in 1999 13 .
Air services for tourism means more than the ability of tourists to access markets. Air
services also support tourism activities. The use of aircraft for viewing wildlife and marine
mammals is becoming increasingly popular as a tourist activity. Tourism businesses have
begun offering custom air tours, heli-hiking, heli-skiing and flight seeing vacations.
However, this is a very new industry.
There is concern among wildlife managers, tour operators and outdoor recreation enthusiasts
that flight seeing may be having a detrimental, if not irreversible, impact on marine mammals
and wildlife populations. As a result of these concerns, the Ministry of Environment Lands
and Parks is developing guidelines that regulate fly-over heights and seasonal restrictions on
low-level fly-overs for certain species such as caribou and mountain goats. Cooperation and
support from the federal government is fundamental to maintain appropriate protection.
Air safety requirements for these operations have also been raised as a concern. In addition
to questions around regulation, there are concerns regarding enforcement in remote locations.
These new types of air services require careful management so that the benefits of tourism
activity are balanced with the preservation of the very asset that makes them possible. The
federal government has an important role in maintaining this balance, however a better
understanding of the industry and its future are required. As a result British Columbia is
recommending that this issue be included in a review of tourism-related air services.
13 BC Stats, Tourism BC http://www.tbc.gov.bc.ca/tourism/tourismhome.html.Page 28
Canada Transportation Act Review British Columbia Submission
Recommendation 9
British Columbia recommends the CTA Panel support a review of tourism-related air
services to ensure:
•••• regional air services to remote areas of B.C. will continue without interruption;
•••• improved data gathering and reporting to monitor the Canadian airline industry,
including average fares and market share, will be included in the national
transportation data strategy;
•••• the “rights of establishment” provision that enables foreign carriers to establish
airlines in Canada is revised;
•••• the ability to regulate domestic airline pricing when there is insufficient competition is
reviewed;
•••• flight seeing activities are safe; and
•••• marine mammals and wildlife are protected..Page 29
Canada Transportation Act Review British Columbia Submission
8 PORTS IN BRITISH COLUMBIA
8.1 MAJOR PORTS
British Columbia’s major ports support a northern and a southern corridor across the
province. The Lower Mainland Corridor includes the Vancouver Port Authority, the
Fraser River Port Authority and the North Fraser Port Authority. The Northwest Corridor
includes the deep sea ports of Stewart, Kitimat and Prince Rupert. It is the position of the
Province of British Columbia that together these corridors comprise a transportation resource
that serves to protect Canadian trade through the Pacific. Two full service corridors have the
ability to ensure a secure route for Canadian trade is always available. Furthermore, as trade
expands, a second Canadian corridor with available capacity provides an alternative to traffic
moving south to U.S. ports.
On the southern corridor, the Lower Mainland ports have been successful in attracting trade
from Canadian and international shippers. Over 100 million tonnes of cargo move through
these ports every year. The ports handle cargoes ranging from bulk commodities, such as
lumber, to containers and automobiles. However, success has been accompanied with
challenges.
Congestion is affecting the ability of the port to operate at peak performance. A single rail
bridge that services all rail carriers to Lower Mainland ports from the east is currently a
serious bottleneck. The bridge is owned by the federal government. It requires significant
capital investment to meet demand. In addition, road congestion around ports has also
compromised port performance. However, no federal policy addresses port access, unlike
the United States.
Competition from American West Coast ports such as Seattle-Tacoma, Portland and
Long Beach is a major concern for B.C.’s southern ports. Canadian ports’ ability to compete
with other North American ports is affected by the operating environment dictated through
legislation in each jurisdiction..Page 30
Canada Transportation Act Review British Columbia Submission
The expansion of infrastructure and technology to attract traffic is more difficult in Canada
than at U.S. ports. This is important because the size of ships is increasing and the use of
containers is expanding. In the U.S., investment in ports and the rail and highway networks
that support them is viewed as a generator of economic activity. U.S. ports have the ability
to raise investment capital and have significant federal and state government funding support.
In Canada, port facilities are viewed as revenue generators. There are no funding programs
to support access to ports. For example, the federal funding program for grade separations
was phased out of existence several years ago. This provides American ports with a
competitive advantage over Canadian ports.
In addition, U.S. ports are protected by federal legislation regarding to the amount of tax paid
to state or municipal/regional levels of government. In Canada, tax rates are not regulated at
ports. Therefore, a large tax burden can limit a port’s ability to reinvest in infrastructure or
expand.
Port and rail transportation has moved from a national undertaking to a North American
industry. As a result, continental harmonization of operating costs and investment capital
directly affects the ability of a port to be competitive.
Railway partnerships, with or without mergers, will contribute to greater accessibility to ports
in competition with facilities in the Lower Mainland. The CTA needs to support east-west
movement of Canadian goods and encourage strong port-rail linkages.
Recommendation 10
British Columbia recommends that the federal government adopt a policy to address port
access at major ports. It is further recommended that taxation, stipends, dividends and
similar payments be equalized with other North American ports to ensure Canadian ports
have the ability to meet ongoing capital requirements and compete globally. The economic
impact of using federal port revenues to invest in major port access needs to be assessed..Page 31
Canada Transportation Act Review British Columbia Submission
The national transportation policy should emphasize support for east-west movement of
Canadian cargo to British Columbia ports.
8.2 NORTHWEST CORRIDOR
In the Northwest Corridor, an average of 18 million tonnes is shipped through the ports
annually. In 1999, shipments declined approximately 10 percent and are expected to
continue to come under pressure as coal mining in Tumbler Ridge comes to a close.
The Northwest Corridor is congestion free and is supported by excellent road and rail
transportation. There is unused capacity at the facilities in this corridor. Ports and the
railway operate at approximately twenty percent capacity. The proximity of these northern
British Columbia ports to Pacific Rim markets and connections to North American rail and
highway networks makes them an attractive location for shipping. The port facilities are
capable of handling a wide range of commodities including coal, lumber, pulp, paper, fish,
grains, copper concentrate, petrochemicals, aluminum, steel, and sulphur.
Recommendation 11
British Columbia supports the continued development and marketing of the Northwest
Corridor. The CTA should incorporate policies that support the full utilization of this
corridor and ensure it is protected as an important strategic transportation resource.
8.3 SMALL PORTS AND MARINE FACILITIES
Since 1995, federal marine policy has been eliminating the federal role in the provision of
marine services, including the ownership and maintenance of ports and marine facilities.
Both the Department of Fisheries and Oceans (DFO) and Transport Canada have been
divesting marine facilities throughout B.C. For example, the number of recreational harbours
once operated by DFO has decreased by 36, a 55 percent reduction since 1995. Nationwide,
the number of recreational harbours has decreased by 489 harbours (approximately.Page 32
Canada Transportation Act Review British Columbia Submission
58 percent) over the same time period 14 . Transport Canada has devolved, or is in the process
of devolving, 75 facilities in B.C. It is obvious that the federal marine policy has met with
some success.
At the same time, the importance of marine facilities has increased, for the following reasons:
• The cruise ship industry, whale watching tours, eco-tourism, and fishing lodges
increasingly rely on marine service support.
• Municipal legislation in B.C. has been changed to provide greater flexibility to local
government for developing local resources that benefit from marine access.
• Primary resource economies have declined while the services sector of B.C.’s economy
has been expanding; the service sector relies more heavily on these facilities.
Marine facilities provide communities with important opportunities for recreation, tourism,
alternate transportation and emergency services. The federal government should not
arbitrarily transfer the cost of maintaining these facilities to local taxpayers.
Recommendation 12
British Columbia recommends marine facilities be maintained by the federal government
in order to support healthy local communities.
8.4 DREDGING
Just before the federal government created Canadian Port Authorities under the Canada
Marine Act, the Canadian Coast Guard dropped responsibility for navigational dredging at
ports. The annual in-fill of sediment makes dredging necessary for the operation of some
ports.
14 Source: Transport Canada http://www.tc.gc.ca/pol/en/anre1999/tc9910de.htm.Page 33
Canada Transportation Act Review British Columbia Submission
The Province has concerns that the Coast Guard abandonment of channel maintenance
dredging may place some ports in the untenable situation of not being able to refuse
responsibility, but not having the financial resources to undertake the work.
Dredging supports the operation of the port; however, it is also necessary for flood control
and marine safety. Clearly, it is not the responsibility of the port to provide these services to
the general public at their expense. Furthermore, British Columbia is concerned that there
can be negative environmental impacts associated with dredging; the sustainability of the
environment must be fully accounted for in undertaking these activities.
Recommendation 13
British Columbia recommends that the Canada Transportation Act and the Canada
Marine Act clearly indicate that responsibilities for public services such as dredging are
separate from the operations of port authorities. The full environmental impact of
dredging must be accounted for when it is undertaken..Page 34
Canada Transportation Act Review British Columbia Submission
9 NAVIGABLE WATERS
In British Columbia, provision of an efficient and effective transportation system often
involves construction, rehabilitation or replacement of bridges spanning lakes and rivers.
Some of these structures span navigable waters. In order to conduct works over navigable
waters, federal legislation requires that the Minister responsible for the Navigable Waters
Protection Act (the Minister responsible for Fisheries and Oceans) approve “all work to be
built, placed in, on, over, under, through or across any navigable waters.”
Navigable waters are defined to “include a canal and any other body created or altered as a
result of the construction of any work.” However, the significance of each waterway in
relation to volume and type of marine traffic is not considered. For each crossing in
British Columbia, maximum clearance and channel depth are applied. As a result, the
Ministry of Fisheries and Oceans has a significant impact on the cost of bridge construction
in British Columbia.
Increased construction costs impact planning, design, delivery and affordability of bridge
projects across the province, often delaying much needed investments and offsetting others.
Recommendation 14
British Columbia recommends the CTA Review Panel propose the Navigable Waters
Protection Act be modified to promote a process where the significance of navigable waters
is assessed to determine a cost-effective approach to crossings of navigable water..Page 35
Canada Transportation Act Review British Columbia Submission
10 RAIL
In addition to the Provincial submission on rail competition, British Columbia would like to
raise the following issues.
10.1 PASSENGER RAIL POLICY
The CTA does not adequately address passenger rail services. Furthermore, most federal
policy on passenger rail has been developed in the context of VIA Rail. This has left a policy
gap on other passenger rail services in Canada.
Besides VIA Rail, there are several passenger rail services operating in British Columbia.
These include the Rocky Mountaineer service between Vancouver and Calgary, Amtrak
service from Seattle, British Columbia Rail passenger services to Prince George, as well as
the Pacific Wilderness Railway service on Vancouver Island.
Federal legislation needs to clarify how passenger rail services are governed in Canada.
Policy on passenger rail service is required to support strong scheduled passenger service
while promoting private excursion services in Canada. There is strong tourism potential for
rail in British Columbia. The success of the Rocky Mountaineer is one example; however,
many opportunities for tourist-based rail passenger services exist in British Columbia. Some
of this potential is in intermodal combinations of tourist travel. There could also be a future
in combined scheduled and unscheduled passenger rail service. However, strong policies are
required to capitalize on these opportunities.
Recommendation 15
British Columbia recommends that passenger rail legislation and policy be clearly
delineated in the CTA..Page 36
Canada Transportation Act Review British Columbia Submission
10.2 SUBSIDIZED SCHEDULED PASSENGER SERVICE
Regular year round scheduled passenger services throughout the world are subsidized. They
are operated as a public benefit and address a number of contemporary challenges including
assisting regional economic and social development (e.g. access to rural communities),
inter-city transportation, urban and regional growth management, greenhouse gas reductions,
alleviating road system congestion, and provision of mobility for diverse purposes.
In British Columbia, Amtrak passenger rail service between Vancouver and Seattle across
the international border provides a viable alternative to the automobile, reduces congestion at
border crossings, and brings international visitors to Canada on a daily basis. Expanded
Amtrak passenger rail service in this highly congested corridor is currently constrained by a
lack of funding and a lack of legislation and policy support for transborder north-south
passenger rail service. Support in this area would help facilitate expanded passenger rail
service in the corridor.
Likewise, VIA Rail service in B.C. provides fundamental access to rural communities in the
north, to the urban Lower Mainland, and on Vancouver Island. B.C. is concerned that the
Province’s VIA Rail services be treated equitably to those of the rest of Canada, including
Central Canada. Modernization of equipment, improved scheduling and effective marketing
of VIA Rail’s services will result in lower operating costs, higher usage and increased
revenues. This benefits B.C.’s travelers and inter-regional and inter-city access.
Recommendation 16
British Columbia recommends that federal policies on subsidized passenger service require
equitable service and funding across provinces, territories and international boundaries.
10.3 BRITISH COLUMBIA’S GRAIN USERS
In its December 2000 Rail Submission to the Review Panel, the Ministry of Transportation
and Highways requested amendments to the CTA in order to ensure that British Columbia’s.Page 37
Canada Transportation Act Review British Columbia Submission
feed grain users are treated in an equitable manner. The subject is of sufficient importance to
the Province and stakeholders that it is again included in the Province’s interim submission to
the Review Panel.
Since 1995, the Province and the British Columbia livestock feeding industry have been
asking federal Agriculture and Transport Ministers to end the discrimination against
British Columbia’s feed grain users by extending the maximum rate scale provisions of the
CTA to the carriage of grain into British Columbia for domestic use.
There is a significant differential between export and domestic rates that is not justified by a
similar differential in cost. Recent changes to the CTA regarding grain shipments require
railways to significantly reduce export grain freight rates. However, the federal government
has extended no rate protection whatsoever to users of prairie feed grains in
British Columbia. Without regulation of domestic movements into British Columbia, the
differential between these export rates and domestic rates will increase significantly.
With the recent changes to the CTA, the federal government is continuing to regulate all
grain shipments eastward by rail including grain bound for eastern Canadian domestic
markets as well as western shipments for export. The legislation is discriminating against,
and effectively imposing a levy restricting inter-provincial trade in, feed grains for use in
British Columbia. The Province believes that this is contrary to the principles of the
Agreement on Internal Trade.
Further amendments to the CTA are required to ensure equity for British Columbia users of
prairie feed grains and to end the discrimination against value-added agri-food production in
British Columbia.
Recommendation 17
British Columbia recommends that the CTA apply a revenue cap that treats all Canadian
grain users equally..Page 38
Canada Transportation Act Review British Columbia Submission
11 NATIONAL HIGHWAYS
11.1 NATIONAL HIGHWAY SYSTEM
Each year international trade grows in importance to the economies of British Columbia and
Canada. British Columbia’s natural ports, its geographic location and supporting
transportation infrastructure provide excellent access to North American and Pacific Rim
markets. British Columbia’s transportation sector has aggressively and successfully
marketed its facilities and intermodal links in the very competitive domestic and international
shipping industries.
Canada’s National Highway System (NHS) is an important component of British Columbia’s
infrastructure. However, the provincial budget has not been able to keep pace with the
intermodal demand at gateways. Spending by the federal government on British Columbia’s
portion of the NHS has been negligible in recent years. The CTA needs to support
coordinated spending on the NHS and distribute this spending equitably across all provinces
and territories.
Between 1987 and 1992, federal, provincial and territorial governments defined Canada’s
NHS. A total of 24,449 km of existing routes were identified as facilitating interprovincial
and international trade and travel. British Columbia has 4,525 km (18.5 percent) of the NHS.
According to the national standards developed for the NHS, British Columbia requires
$2.94 billion in improvements to its portion of the NHS15.
One of the goals of the National Highway Policy was agreement on a funding formula for
federal and provincial cost-sharing on the highway system. To date, a funding formula for
the NHS has not been established.
15 National Highway Policy Update Project Steering Committee. The National Highway System:
Condition and Investment Needs Update 1997. September, 1998. P.28..Page 39
Canada Transportation Act Review British Columbia Submission
The current review of the CTA provides an excellent opportunity to incorporate a national
highway policy into the Act. A national highway component in the Act would require
consistency with the principles of a National Transportation Policy and a national
transportation investment strategy. The cost-sharing of highway expenditures between
governments would also need to be incorporated into a national investment strategy.
The federal government has long under-financed British Columbia’s portion of the NHS.
During the period 1987/88 to 1999/2000, Transport Canada (TC) invested $52 million in
British Columbia highways. This amounted to 2.7 percent of TC highway expenditures
nationwide. British Columbia invested $1.2 billion on its highways in 1999/2000 alone.
Annual federal fuel tax revenues in British Columbia are approximately $700 million/year.
No new federal highway funds will be available to British Columbia until 2002/03 as part of
the recently announced Federal Infrastructure Program 16 . Even then, the federal portion of
this cost-shared program will not exceed $20 million per year for four years.
The federal government’s reluctance to contribute to a coordinated highway funding strategy
may have a negative impact on British Columbia’s competitiveness in the intermodal
shipping industry. A potential result is increased transportation and final product costs for all
Canadian industries competing in global markets accessed through British Columbia. In
addition, the result of federal reluctance to invest in British Columbia’s portion of the NHS
may be exacerbated by developments in the U.S. and other G7 countries.
Canada is the only G7 nation that does not have a national highway investment program.
The U.S. will invest $177 billion in its highway infrastructure over the next six years (a
further $41 billion is allocated to infrastructure for other modes). U.S. shippers and ports are
the primary competition for the Canadian and British Columbian transportation sectors.
Given that Canadian and American businesses have the choice of importing and exporting
through either Canadian or American transportation infrastructure, an improvement in
16 “Highways Take a Back Seat”. Canadian Corporate News. February 28, 2000..Page 40
Canada Transportation Act Review British Columbia Submission
American highway accessibility coupled with continued under-funding of the
British Columbia’s portion of the NHS could result in direct economic losses for the
British Columbia and, by extension, Canadian economies. A program that supports
investment in highway infrastructure at border crossings can be integrated with American
funding programs. Joint planning and implementation will create efficiencies on both sides
of the border.
Recommendation 18
The National Transportation Policy (Section 5 of the Act) should be expanded to include a
federal role in support of highways.
11.2 NATIONAL HIGHWAY SYSTEM – FERRY ROUTES
Across Canada, the National Highway System has a number of locations that are covered by
ferry routes. Ferry services have been financially supported by the federal government as a
confirmation of support for coastal communities. Maintaining transportation links to all
provinces and territories, particularly capital cities, is a priority. However the financial
support for ferry services on the national highway system are not consistent. BC Ferries
receives a far smaller contribution than services provided in Atlantic Canada.
Recommendation 19
Ferry routes on the national highway system should be provided a consistent level of
financial support across Canada and be recognized as an important link to communities.
11.3 INTELLIGENT TRANSPORTATION SYSTEMS
Intelligent transportation systems (ITS) have the ability to increase the efficiency of
transportation infrastructure and travel. The application of ITS takes on various forms. For
example, ITS can:.Page 41
Canada Transportation Act Review British Columbia Submission
• Collect and transmit information on traffic conditions and transit schedules for
travellers before and during their trips. Alerted to bad weather, hazards and delays,
travellers can change their plans to minimize risk, inconvenience and additional strain
on the system.
• Decrease congestion by reducing the number of traffic incidents, clearing them more
quickly when they occur and rerouting traffic flow around them.
• Automatically collect tolls.
• Improve the productivity of commercial, transit, and public fleets by using automated
tracking, dispatch and load monitoring.
• Speed vehicles through regulatory and safety processes through weigh-in-motion and
automatic-vehicle-identification systems.
• Assist drivers in reaching a desired destination with navigation systems enhanced
with pathfinding or route guidance.
As transportation technology applications grow it becomes increasingly important to develop
protocols that create standards for technology. For example, the lack of an established
standard on vehicle transponders in the United States meant that two competing technologies
developed; the equivalent of Beta and VHS technology in VCRs. Over time the technology
was made compatible. However, in the meantime, users made risky (if they bought one) or
expensive (if they bought two) choices. Without protocols and standards, losses are incurred
by those who buy the system that does not prevail and by those who choose to wait. This
effect has an overall reduction in transportation efficiency.
In October 2000, the federal government released an ITS architecture protocol. The
objective of the architecture is to ensure systems can be used “interoperably.” This means
that all technology applications can be used amongst each other.
However, no incentive exists to support compliance with the architecture protocol. In the
U.S., this problem has been addressed by linking deployment funding for ITS to compliance
with the architecture. In other words, there is no financial support from government for ITS.Page 42
Canada Transportation Act Review British Columbia Submission
that does not respect national protocols and standards. This protects the integrity of the
architecture and reduces the need to audit for compliance.
Establishing a role for the Transport Minister to set architecture protocols for ITS
interoperability under the CTA would have several benefits:
• It would provide a legal foundation for linking the ITS protocol to transportation
funding.
• As federal legislation, it would ensure a national application of ITS protocol between
all provinces and territories.
• It would assist in the development of trade corridors and promote trade mobility.
• It would support private sector development and investment in Canadian
transportation technology.
ITS has excellent prospects for increasing intermodal efficiency. Since federal legislation
needs to move away from modally specific approaches, incorporating ITS will support both
an integrated transportation network and the deployment necessary to make it a reality.
Recommendation 20
British Columbia recommends that the CTA give the Transport Minister a role in
establishing ITS architecture protocols. The legislation should be drafted to ensure that
deployment funding could be contingent on meeting ITS architecture protocols..Page 43
Canada Transportation Act Review British Columbia Submission
12 ELECTRONIC COMMERCE
Although the high technology industry currently generates only 3 percent of the province’s
gross domestic product, it is growing at approximately twenty times the provincial average 17 .
Employment in British Columbia’s high technology sector grew 10 percent in 1999 when all
other industries grew by 0.1 percent.
The impact of electronic commerce on the demand for transportation services will be
significant. The commerce conducted electronically will be supported by the transportation
system. Transportation service providers, logistics and warehousing will all be affected by
the speed and convenience of electronic commerce.
British Columbia has a very strong transportation technology sector that is growing rapidly.
Two Internet companies, Worldbid.com in British Columbia and Freightquote.com in the
U.S., recently signed a strategic agreement to provide online freight services across
North America. These services incorporate real-time shipping quotes, automated documents
and traffic management. The digital economy will affect both the demand for transportation
and how it is delivered.
Recommendation 21
British Columbia recommends the demands of the digital economy be reflected in
transportation policy and legislation. A process for monitoring the impact of electronic
commerce on transportation demand should be incorporated into federal policy analysis
and development.
17 Martin Monkman. Profile of the British Columbia High Technology Sector, 2000 Edition. BC Stats.
June 2000. P. iii..Page 44
Canada Transportation Act Review British Columbia Submission
13 TRANSPORTATION AND A SUSTAINABLE ENVIRONMENT
Transportation’s share of greenhouse gas emissions has been calculated to be 27 percent of
total greenhouse gas emissions in Canada 18 . In British Columbia, transportation emissions
represent 42 percent of total emissions and this is expected to rise to 50 percent in the next
few years. Clearly the status quo cannot be maintained.
British Columbia believes part of the solution to sustainable transportation can be achieved
through vehicle efficiency. Since Canada is part of the much larger North American market,
it is necessary to develop continental standards. British Columbia therefore supports a
U.S./Canada review of corporate average fuel economy (CAFÉ) standards.
Innovation in technology will also be part of the solution to sustainable transportation.
Federal support for developments in Ballard fuel cell technology will help promote the
adoption of the technology and its application in public transit systems.
Sustainable transportation will be achieved through a variety of changes, behavioral, cultural,
technical and regulatory. B.C. believes a balance of these approaches will be required.
However, better information is needed to determine the most effective tools and applications.
Greater analysis of environmental impacts is required to guide transportation policy and
investment decisions for transportation.
Full cost accounting that captures external cost needs to be developed and endorsed for each
transportation mode and combination of transportation modes. This analysis needs to capture
all environmental impacts including air emissions, wildlife, habitat, wetlands, marine life,
etc.
18 Transportation Table: National Climate Change Process. Foundation Paper on Climate Change.
December 1998. P. 5..Page 45
Canada Transportation Act Review British Columbia Submission
Baseline data is required on the overall system efficiency of modes so that the impact of
expanding infrastructure on demand can be measured. This will provide the ability to
incorporate environmental considerations into transportation policies, legislation and
investment.
Recommendation 22
British Columbia recommends that the Federal Minister make policies and investments
that support behavioral, cultural, technical and regulatory changes that ensure
environmental sustainability; and further, that national data standards are established for
monitoring transportation sustainability..Page 46
Canada Transportation Act Review British Columbia Submission
14 CONCLUSION
British Columbia makes the following recommendations to the Canada Transportation Act
Review Panel.
Recommendation 1
British Columbia supports the incorporation of a vision in the national transportation policy
of Canada.
Recommendation 2
British Columbia recommends that revisions be made to the national transportation policy.
These include changes that reflect the:
• integration of modal transportation into multi-modal networks;
• need for levels of transportation investment equivalent to those of our trading partners
so as to remain globally competitive;
• impact of free trade on transportation patterns;
• importance of transportation investment to economic development;
• need for a consistent policy on rents and fees on federal land;
• long term needs for environmentally sustainable transportation;
• need for accessibility to be included in all transportation policies and legislation;
• needs of transportation consumers; and
• unique position of rural communities as well as the need to balance urban and rural
transportation needs fairly.
Recommendation 3
British Columbia recommends that a national transportation policy be supported by a
national transportation investment strategy that outlines:
• roles of governments in the provision and maintenance of public infrastructure;
• appropriate revenue streams for public investment by governments;
• funding linkages to policy and legislation;.Page 47
Canada Transportation Act Review British Columbia Submission
• equitable funding between provinces/territories and transportation modes;
• how transportation revenues and expenditures are balanced; and
• provisions for long term sustainability of operating and capital transportation costs.
Recommendation 4
British Columbia recommends that a national transportation data strategy be established in
legislation and that the federal government provide the financial support and legal ability to
gather, manage and disseminate transportation data.
Recommendation 5
British Columbia recommends the Canada Transportation Act ensure the integration of
transportation policy and planning by all levels of government; that unique urban needs are
addressed by national policy and investments; and that urban transportation corridors are
protected from segmentation and development.
Recommendation 6
B.C. recommends that the CTA require the Federal Minister to maintain a national aviation
policy that includes a Passenger Bill of Rights. The aviation policy would address the need
for rural and remote air access and support the development of tourism and air cargo service.
Recommendation 7
The federal government must remain accountable for airports and air services in Canada.
The following recommendations are made to this end:
• In consultation with provinces, territories and stakeholders, minimum levels of air access
to all areas of Canada need to be established under the CTA.
• The Airports Capital Assistance Program needs to be expanded.
• Training standards, business planning and management development at regional airports
should be federally supported; creating a requirement to meet these needs under the
ACAP should be investigated.
• All changes to federal regulation, including safety, must be appropriately supported by
federal funding..Page 48
Canada Transportation Act Review British Columbia Submission
Recommendation 8
British Columbia recommends that the classification of national airports as defined in the
National Airports Policy be reviewed and that requirements for Canadian airport authorities
be changed at small national airports. Larger national airports must have fair and consistent
rents applied nationally and be subject to a cap on the amount of revenue that can be
collected by the federal government.
Recommendation 9
British Columbia recommends the CTA Panel support a review of tourism-related air
services to ensure:
• regional air services to remote areas of B.C. will continue without interruption;
• improved data gathering and reporting to monitor the Canadian airline industry,
including average fares and market share, will be included in the national
transportation data strategy;
• the “rights of establishment” provision that enables foreign carriers to establish
airlines in Canada is revised;
• the ability to regulate domestic airline pricing when there is insufficient competition
is reviewed;
• flight seeing activities are safe; and
• marine mammals and wildlife are protected.
Recommendation 10
British Columbia recommends that the federal government adopt a policy to address port
access at major ports. It is further recommended that taxation, stipends, dividends and
similar payments be equalized with other North American ports to ensure ports have the
ability to meet ongoing capital requirements and compete globally. The economic impact of
using federal port revenues to invest in major port access needs to be assessed.
The national transportation policy should emphasize support for east-west movement of
Canadian cargo to British Columbia ports..Page 49
Canada Transportation Act Review British Columbia Submission
Recommendation 11
British Columbia supports the continued development and marketing of the Northwest
Corridor. The CTA should incorporate policies that support the full utilization of this
corridor and ensure it is protected as an important strategic transportation resource.
Recommendation 12
British Columbia recommends marine facilities be maintained by the federal government in
order to support healthy local communities.
Recommendation 13
British Columbia recommends that the Canada Transportation Act and the Canada Marine
Act clearly indicate that responsibilities for public services such as dredging are separate
from the operations of port authorities. The full environmental impact of dredging must be
accounted for when it is undertaken.
Recommendation 14
British Columbia recommends the CTA Review Panel propose the Navigable Waters
Protection Act be modified to promote a process where the significance of navigable waters
is assessed to determine a cost-effective approach to crossings of navigable water.
Recommendation 15
British Columbia recommends that passenger rail legislation and policy be clearly delineated
in the CTA.
Recommendation 16
British Columbia recommends that federal policies on subsidized passenger service require
equitable service and funding across provinces, territories and international boundaries..Page 50
Canada Transportation Act Review British Columbia Submission
Recommendation 17
British Columbia recommends that the CTA apply a revenue cap that treats all Canadian
grain users equally.
Recommendation 18
The National Transportation Policy (Section 5 of the Act) should be expanded to include a
federal role in support of highways.
Recommendation 19
Ferry routes on the national highway system should be provided a consistent level of
financial support across Canada and be recognized as an important link to communities.
Recommendation 20
British Columbia recommends that the CTA give the Transport Minister a role in
establishing ITS architecture protocols. The legislation should be drafted to ensure that
deployment funding could be contingent on meeting ITS architecture protocols.
Recommendation 21
British Columbia recommends the demands of the digital economy be reflected in
transportation policy and legislation. A process for monitoring the impact of electronic
commerce on transportation demand should be incorporated into federal policy analysis and
development.
Recommendation 22
British Columbia recommends that the Federal Minister make policies and investments that
support behavioral, cultural, technical and regulatory changes that ensure environmental
sustainability; and further, that national data standards are established for monitoring
transportation sustainability.