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Section II Analysis of Program Activities by Strategic Outcome

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

2.1.1 Program Activity: Transportation Policy Development and Infrastructure Programs

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

2008-09 Financial Resources
($ millions)
2008-09 Human Resources
Planned Actual Difference
522 507 200 721 800 -79


  • Productivity of the transportation system
  • Price and service levels
  • Financial viability of the components of the system
  • Long-term sustainable funding and accountability framework for transportation infrastructure
  • Strengthened international competitiveness
  • Legislative/policy frameworks that support free market forces with targeted government intervention
Performance Status: Mostly Met

Performance Analysis

New legislation and policy frameworks in support of support free market forces and targeted government interventions were introduced in 2008-09.

Aviation. Flight Rights Canada was launched to:

  • provide air travellers with more information on their rights regarding prices and services;
  • remind them that they are entitled to the air carrier's terms and conditions of carriage; and
  • explain the complaints procedure that is in place, ensuring carriers are held to account for their commitments.

Marine. Amendments to the Canada Marine Act along with targeted policy initiatives:

  • allow Canada Port Authorities to apply for contribution funding regarding, environmental sustainability, security and capital costs related to infrastructure;
  • introduce a market based borrowing regime;
  • facilitate port amalgamation;
  • incorporate a more responsive governance framework; and
  • provide more options for Canada Port Authorities who wish to stimulate and pursue business opportunities that were previously not available to them.

Transport Canada also:

  • proposed changes to the Canada Transportation Act that allow the Governor in Council to increase the limit on foreign ownership of Canadian airlines, from 25 per cent to
    49 per cent, subject to air transport negotiations;
  • negotiated a comprehensive new air transport agreement with the European Union; and
  • concluded or expanded bilateral air services agreements with the Dominican Republic, Costa Rica, Panama, the Philippines and Turkey.

These agreements provide air carriers and airports with new business opportunities. Travelers and shippers now have more choices in destinations, flights and routes;
more direct services; and the potential for lower fares.

All sectors. The final report of the Full Costs Investigation project was released and provides full cost estimates of the social and financial components of all modes of transportation. This information provides policy and decision makers with more
complete information on all aspects of transportation when developing policy options.

Innovation. Transport Canada continued work on an Innovation Strategy to identify measures to increase the competitiveness and efficiency of the transportation system through:

  • strategic research and development initiatives;
  • initiatives to enhance skills development and academic research capacity; and
  • innovative technological applications, such as intelligent transportation systems.
    Significant progress was made towards developing international partnerships in key areas such as advanced technology applications, supply chain management and cooperative vehicle infrastructure systems.

Transportation infrastructure. Progress was made towards long-term sustainable funding and an accountability framework for transportation infrastructure, including highways, public transit and local roads.

Transport Canada signed contribution agreements worth over $1 billion of federal funding to support major transportation projects across Canada, one of which was co-signed with Infrastructure Canada. Transport Canada also:

  • announced $413.5 million of funding for eight transportation infrastructure proposals under the Gateways and Border Crossings Fund. More information on the three gateways can be found at Gateway Initiatives.
  • funded a series of in-depth analytical studies and economic research in partnership with provincial governments. These studies will inform and guide the development of the Ontario-Quebec Continental Gateway and Trade Corridor and the Atlantic Gateway.
  • made progress on the project to construct the freeway that will link Highway 401
    to a new bridge between Windsor and Detroit the busiest border point for
    Canada-United States trade. Specifically, the department announced the technically and environmentally preferred location of the new inspection plazas and bridge crossing. More information can be found at Continental Gateway.

While infrastructure remains a critical element of gateway initiatives, the Asia-Pacific Gateway and Corridor Initiative focused on longer-term strategic directions to:

  • build a sustainable trade and transportation system for North America;
  • optimize the supply chain for secure Asia-Pacific trade; and
  • explore ways to capture the economic value associated with gateway investments.

This included working with Finance Canada towards removing tariff and regulatory barriers that limit domestic access to international marine containers. Canadian agri-food providers have identified these barriers as restricting the export of specialty agricultural products to Asian markets. This change, if made, would harmonize with United States regulations. More information on the Asia-Pacific Gateway and Corridor Initiative can
be found at Pacific Gateway.

Finally, the International Bridges and Tunnels Act regulations were published on bridge maintenance and safety and Transport Canada was instrumental in obtaining funding for:

  • upgrades to VIA Rails equipment and infrastructure;
  • repairs to the Champlain Bridge, Honor Mercier Bridge, the Blue Water and
    Peace Bridges; and
  • repairs to the federal roadway on Nuns Island.
Performance Measurement


  • Air transportation resumed productivity gains in 2007, after a decline in 2006
    (3.7 and -3.2 per cent respectively).

Public transit

  • Public transit productivity growth was slightly negative in 2007 (-0.4 per cent).


  • Freight rail (Class I) continued its pattern of productivity gains with strong total factor productivity growth in 2007 (2.3 per cent).
  • VIA Rail productivity growth was slightly positive once again (0.3 per cent).

Despite higher fuel prices, transportation output prices were only slightly higher overall in 2007 than in 2006, with an approximate 0.1 per cent overall increase. This occurred in part because of carriers productivity growth.

Benefits for Canadians

Improving the overall transportation network through strategic legislative changes, international agreements, innovation and transportation investments gives Canadian transportation service providers and shippers better access and mobility options
between mainland Canada, coastal communities and international trading partners.

Lessons Learned

Canadas internal and external environment is constantly evolving. Supporting Canadas economic growth in this increasingly global world, the transportation system requires close monitoring and adjustments, such as refining legislative and regulatory frameworks.

Continuous and targeted consultation with stakeholders has been important to ensuring overall success of the transportation marketplace frameworks and supporting infrastructure in Canada. Transport Canada will continue to work with other public and private organizations, academia and non-government organizations.

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

2.2.1 Program Activity: Transportation Safety and Security

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

2008-09 Financial Resources
($ millions)
2008-09 Human Resources
Planned Actual Difference
613 672 629 4,097 4,030 67


  • Level of public confidence in transportation safety and security
  • Accident/incident rates relative to increase in traffic
  • Fatality rates relative to accident/incident rates
  • Progress in implementing safety and security management systems
  • Continuous improvement in transportation safety and security
  • Public confidence in Canadian transportation safety and security
Performance Status: Mostly Met

Performance Analysis

In 2008-09, the department continued its efforts aimed at continuous improvement
of the safety and security of the Canadian transportation system as well as increasing
the publics confidence in the system.

Safety and Security Management Systems

The transportation industry faces many risks and threats every day that could cause an accident or incident. Safety and security management systems are a way for the industry to proactively manage risks and threats in an effort to reduce the likelihood of accidents or incidents. They build on existing regulatory frameworks and are designed to integrate safety and security management into the daily operations of an organization.

In 2008-09, Transport Canada continued to promote safety and security management systems implementation through ongoing discussions, meetings and conferences with both internal and external stakeholders in all transportation sectors. Regulations are now in place at Canadas ten largest airports, and the initial certification has begun at all remaining airports and air service providers (312 regional airports). Transport Canada also:

  • Addressed Railway Safety Act review recommendations on strengthening safety management systems in the rail sector;
  • conducted a survey for the development of a voluntary safety management system in the motor carrier sector that would be cost efficient and likely produce significant safety gains;
  • engaged the marine sector in a pilot project to develop industry guidelines and tools for implementing safety management systems. The goal is to promote national consistency of safety management and ensure that Transport Canada enters into authorization agreements only with companies that have comprehensive processes to promote safety and manage risk;
  • promoted security management systems through several education and awareness sessions, 21 research projects and learning activities with 15 different industry partners;
  • developed criteria and guidelines for key security management system core elements to support industry and contribute to a greater systematic understanding of a management systems approach; and
  • conducted research in each mode to promote, advance, and effect a culture shift towards a safety/security management systems approach.
Contribution Programs

Through various contribution funding programs, Transport Canada helps stakeholders address safety and security vulnerabilities.

Marine: Over $7 million was provided to ports and other marine facilities under the Marine Security Contribution Program, while six of Transport Canadas simulators were upgraded and divested to provincial training institutes under the Marine Simulator Contribution Program.

Rail: The department spent $59 million under the Transit-Secure Contribution Program, resulting in 130 passenger rail and urban transit security projects. These projects improve operators security and emergency preparedness measures, such as employee training and physical security enhancements. Working closely with the railway companies, $7.3 million was provided under the Grade Crossing Improvement Program for safety improvements.

Road: Under the Canadian National Road Safety Vision Contribution Program, the department supported surveys, data collection, research, outreach, awareness and education activities to support partners efforts to reduce deaths and serious injuries on Canadian roads.

Harmonizing and Modernizing Regulations/Legislation; Developing Policies and Programs

In the last year, Transport Canada worked with its international partners to harmonize policies, programs and standards across the transportation system including those related to:

  • air cargo and passenger screening;
  • air pilot licenses;
  • training; and
  • language proficiency for communications with ground crews.

Transport Canada and its international partners also:

  • developed international bumper testing speeds standards;
  • implemented global standards for the design, manufacture, and use of portable tanks in the transportation of dangerous goods; and
  • shared best practices for how to properly secure the marine transportation system.

In road safety, harmonization moved faster than expected with 15 final regulations published that will reduce the safety standards duplication between the United States and Canada.

In marine safety, Acts and Regulations were modernized consistent with the Cabinet Directive on Streamlining Regulation (i.e., the Navigable Waters Protection Act, and regulations under the Canada Shipping Act, 2001), to strengthen regulatory frameworks, address gaps in legislation, correct ambiguities, and reduce barriers with international trading partners.

With respect to transporting dangerous goods, amendments to the Transportation of Dangerous Goods Act that require companies to have security plans when transporting dangerous goods were introduced in Parliament. Amendments to the Contraventions Regulations have simplified enforcement of the Act, allowing Transport Canada inspectors to issue tickets.

With respect policy and program development, Transport Canada launched a comprehensive review of the aviation security framework in support of Budget 2009 commitments. This work, which is taking place over the next three to four years, will result in a more robust and proactive regulatory regime and remove outdated and unnecessary requirements. The department also:

  • worked on the Air Cargo Security Program with federal partners and industry stakeholders, to design and pilot test the voluntary security supply chain management system that included the initiation of a compliance monitoring and inspection regime.
  • implemented the Marine Transportation Security Clearance program at 11 major ports in Canada to reduce the risk of security threats and prevent unlawful interference with the marine transportation system. They are now fully compliant with the Marine Transportation Security Regulations.
  • led or collaborated in a number of emergency planning activities such as the Vancouver 2010 Exercise Series, in preparation for the Olympics to assess Canadas ability to act quickly and effectively in the event of a terrorist attack or security related threat and Exercise Nanook, to address potential crises in the North.
Performance Measurement

Safety data drawn from the latest Transportation in Canada an Overview report (2008) (Transportation in Canada) reveals that:

In air travel, there were 232 aviation accidents in 2008, nine per cent fewer than in 2007, and 44 air fatalities, one more than in 2007. The 2008 accident rate (preliminary data) was 5.2 per cent per 100,000 hours flown, the lowest in the last 10 years.

In marine travel, the number of Canadian vessel shipping accidents and accidents aboard ships decreased for the fifth consecutive year in 2008. The 356 accidents are 16.7 per cent below the five-year average.

In road travel, the number of road casualty collisions decreased by five per cent, from 145,118 in 2006 to 138,275 in 2007. The number of fatalities as a result of traffic collisions also decreased by five per cent, from 2,895 in 2006 to 2,754 in 2007. These statistics are preliminary and subject to some change, however, the overall downward trend is not expected to change.

In rail travel, there were 1,147 reported rail accidents and 74 rail fatalities in 2008,
13.3 and 11.9 per cent fewer, respectively, than in 2007.

In the transportation of dangerous goods, there were 419 accidents in 2008, one per cent fewer than in 2007. However, only 12 injuries were directly attributable to the dangerous goods themselves.

Transport Canada was not able to evaluate its performance on the longer-term goal of the level of Canadian public confidence in transportation safety and security for 2008-2009, because of a moratorium placed on syndicated studies pending a Public Works and Government Services Canada centralized negotiation with private sector contractors.

Benefits for Canadians

Through its various projects and programs, Transport Canada helps stakeholders address their safety and security vulnerabilities, and provides the necessary tools, funds, and guidance to better mitigate safety and security risks and threats to the Canadian transportation system. This in turn builds consumer confidence and supports safe and secure communities.

Lessons Learned

The lessons learned related mainly to timeline management and accurately planning the time required for consulting stakeholders on specific policies (i.e. safety and security management systems) or regulatory initiatives. In some cases, seeking stakeholder buy-in was challenging due to the complexity of the issue and the implications for the stakeholder. To ensure the successful completion of future projects, the department will need to plan for unforeseen delays and make certain that communications during consultations remain effective.

2.3 Strategic Outcome: An environmentally responsible transportation system that contributes to Canadas sustainable development objectives

2.3.1 Program Activity: Sustainable Transportation Development and the Environment

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

2008-09 Financial Resources
($ millions)
2008-09 Human Resources
Planned Actual Difference
202 283 210 337 335 2


  • Percentage of Sustainable Development Strategy Targets
  • Levels of air pollution and GHG emissions from transport
  • Number of marine pollution incidents detected
  • Number of Transport Canada contaminated sites remediated
  • Number of project environmental assessments completed
  • Increased environmental sustainability of Canadas transportation system and Transport Canadas operations
Performance Status: Mostly Met

Performance Analysis

Transport Canada continued to deliver programs under the ecotransport Strategy of the Clean Air Agenda. For more information please visit ecotransport. These programs aim to:

  • improve the management of sustainable transportation infrastructure in communities (ecomobility program);
  • increase efficiency and reduce emissions of air pollutants and greenhouse gases from the movement of goods (ecofreight program, Marine Shore Power Program); and
  • improve fuel efficiency and reduce emissions from the personal vehicle fleet (ecotechnology for Vehicles, ecoauto Rebate Program).

The department is also building strong impetus for developing and applying emission-reducing technologies and increased knowledge and engagement in green transportation opportunities. More comprehensive results are provided in the Horizontal Initiatives table on Treasury Board Secretariats website.

Under the Clean Air Regulatory Agenda and the ecoTransport Strategy, Transport Canada also pursued a number of initiatives across the entire transportation system
to further minimize the impact of transportation on the environment.

Road. The Government of Canada and the Canadian automobile industry continued to support implementation of the 2005 Memorandum of Understanding to act on climate change (under this agreement carmakers will voluntarily work to reduce annual green house gas emissions from light-duty vehicles by 5.3 megatonnes in 2010).

Transport Canada continued its membership role on the Government/Industry Memorandum of Understanding Committee and helped develop a performance measurement framework. The department provided Natural Resources Canada with data relating to vehicle sales and fuel consumption for use in the analysis of performance under the MOU. For more information, please visit: Natural Resources Canada.

Transport Canada prepared discussion and consultation papers as part of a 2006 Government of Canada commitment to develop vehicle fuel consumption regulations. In 2009, the government decided to meet its objectives through regulations pursuant to the Canadian Environmental Protection Act, 1999 under the authority of the Minister of Environment, to ensure that Canada has the flexibility to align with fuel efficiency standards in the United States.

Rail. The department continued to support the implementation of the Memorandum of Understanding with the Railway Association of Canada. This agreement:

  • establishes a framework for reducing air pollution and green house gas emissions from railway locomotives operated by Canadian railway companies in Canada;
  • aligns railway practices with United States air pollution standards; and
  • ensures that the rail industry continues to improve its greenhouse gas emission performance between 2006 and 2010.

Other results included starting to develop rail emission regulations that will take effect in 2011, once the current Memorandum of Understanding expires.

Marine. Transport Canada supported the International Maritime Organization in developing standards and recommended practices for reducing greenhouse gas emissions and air pollutants caused by ships. This included the submission of a joint Canada/United States application to establish an Emission Control Area in North America for the marine sector.

Other results included introducing amendments to the Marine Liability Act in Parliament. This Bill supports the ratification of two international conventions that would significantly improve the liability and compensation regime for pollution damages caused by marine oil spills.

Amendments to the Arctic Waters Pollution Prevention Act were also introduced in Parliament. The amended Act enables Canada to apply its strict requirements for Arctic shipping over a greater area, which will better protect our Arctic waters from pollution.

Air. Transport Canada worked with the International Civil Aviation Organization to develop standards and recommended practices for reducing greenhouse gas emissions and air pollutants. Transport Canada also:

  • represented Canada at meetings of the Group on International Aviation and
    Climate Change;
  • began work with the Canadian Airports Council to implement Air Quality Management Plans; and
  • continued to support the Memorandum of Understanding with the Air Transport Association of Canada, the first of its kind in the world, that aims to reduce greenhouse gas emissions from aviation sources. It sets an annual fuel efficiency target that will achieve a cumulative reduction in emissions of 24 per cent by 2012 relative to 1990 levels.

All sectors. Transport Canada contributed to whole of government procedures, guidance and project agreements to govern the environmental assessment and regulatory review of 42 major resource projects (such as mining, oil and gas, pipelines, nuclear facilities) being coordinated through the Major Projects Management Office. Transport Canada is applying these procedures to other major transportation projects to streamline the regulatory review process while continuing to protect the environment. These are important initiatives related to the governments commitment to more efficient and effective review processes.

Performance Measurement

Sustainable Development Strategy: Most of the targets were met or are on track, as provided in the Horizontal Initiatives table on Treasury Board Secretariats website.

Air Pollution/Greenhouse Gases: Greenhouse gas emissions from the Canadian transportation sector rose 14 per cent between 2000 and 2007 (from 166.8 to 190.2 Mt CO2eq), mainly due to population growth, economic activity and resulting vehicle use. Air pollution emissions continue to show a steady decline between 2000 and 2006, due
to regulatory initiatives and stock turnover. In particular, sulphur oxides decreased by 12.2 per cent, nitrogen oxides decreased by 10.9 per cent; fine particulate matter decreased by 12.1 per cent and volatile organic compounds decreased by 23.2 per cent. Further information is available at Transportation in Canada. Transport Canada has reduced greenhouse gas emissions from its operations (buildings and transportation) for the 2007-08 fiscal year by 17 per cent relative to 1998-1999 levels.

Marine: 183 marine pollution incidents were detected, with 164 classified as mystery spills, and 19 reported as having originated from a ship.

Contaminated Transport Canada sites:

  • 242 of 526 have undergone or are undergoing remediation or risk management; and
  • 90 sites have now been removed from the Transport Canada contaminated sites inventory.

Environmental Assessments: A total of 829 project environmental assessments were conducted as required by the Canadian Environmental Assessment Act and territorial land claim agreements. Measures to prevent, minimize, or manage adverse environmental effects of such projects were identified. The department also conducted 88 strategic environmental assessments to identify any potential environmental impacts of proposed policy, plans, and programs.

Benefits for Canadians

Work in this Program Activity focused on developing and implementing policies and programs to protect the natural environment, create a more sustainable transportation system in Canada and ensure environmental stewardship of Transport Canadas assets and operations. As a result, Canadians will benefit from cleaner air, land, and water that will help to protect their overall health.

Lessons Learned

Since the North American transportation industry is so integrated, some regulatory development depends on developments with our major trading partners, including the United States. The department recognizes the need to coordinate timelines and the development of policy and regulatory actions to continue to meet Government of
Canada objectives.

Coordinating a whole of government project management approach to conducting environmental assessments and regulatory review delivers important process efficiencies while ensuring that environmental impacts are considered effectively in the planning stages of transportation-related projects.

A continued area for improvement relates to data and analytical capacity. The department will continue to work with its federal, provincial and territorial partners on improving data gathering and tools to support policy and program development.