Bill C-33 - Strengthening the Port System and Railway Safety in Canada Act
Context
- Over the last few years, Canadians have experienced supply chain challenges and the associated economic impacts first-hand. Government and industry have struggled to adapt in the face of disruptions, including the COVID-19 pandemic, extreme climate events, changes in trade patterns and Russia’s invasion of Ukraine. These repeated stresses have exposed limitations and weaknesses in Canada’s transportation system – the backbone of our economy – and have underscored the importance of supply chain resiliency going hand in hand with system efficiency.
- The Government of Canada has committed to develop a long-term National Supply Chain Strategy, take steps to enhance the reliability and efficiency of Canada’s supply chains, and to act on the recommendations released in the Supply Chain Task Force Report. Vital to our national success is the recognition that supply chain challenges are multi-modal. Solutions need to be strategic and consider the entirety of the supply chain from end to end.
- Well before current supply chain issues, Transport Canada initiated two separate mode-specific reviews: the Railway Safety Act Review, launched in 2017, and the Ports Modernization Review, launched in 2018. Both reviews are now complete, strengthened by the lessons of the past three years. The Government is now positioned to take actions to modernize the tools used by Government, railways and ports by advancing the ‘’Strengthening the Port System and Railway Safety in Canada Act’’.
- Amendments to the Railway Safety Act seek to strengthen rail safety and security in Canada through an updated framework.
- Amendments to the Canada Marine Act, Canada Transportation Act, Marine Transportation Security Act and the Customs Act seek to enable Canada’s ports to better respond to an increasingly complex economic, social and environmental operating environment by providing the Government and Canada Port Authorities with enhanced tools to improve governance and operational performance, and to support a secure marine transportation environment.
- Amendments to the Canada Transportation Act and the Transportation of Dangerous Good Act, 1992, seek to further improve the safety and security of the multimodal movement of dangerous goods in Canada.
- Taken together, these measures would improve the competitiveness of Canada’s transportation system and support operations that are safe, secure, efficient and reliable.
Summary of the Proposed Amendments: Railways
The proposals found in this bill would strengthen the rail safety and security regime in Canada in order to respond to the evolving demands of a complex transportation system and address risks to community safety. The proposed amendments will provide modern and flexible tools that will allow rail companies to remain competitive, efficient, and sustainable.
The railway proposals have been grouped by theme and include efficiency, enhanced transparency and oversight.
Enhanced Transparency and Collaboration: These measures would provide industry and the public the opportunity to contribute more fully towards informing the Department’s assessments and decisions around how the rail safety regime is both structured and implemented.
Amendments to the Railway Safety Act would:
- Allow the Minister to request any relevant information when assessing exemption requests.
- Provide the Minister the ability to consult broadly in rule decision-making.
- Require a review of the Railway Safety Act on a five-year cycle, ensuring an adaptive legislative framework.
A More Efficient Rail Network: As technologies evolve, these amendments would support a Canadian rail system that is poised to adapt in kind. This will promote a more efficient, and thereby stronger, supply chain.
Amendments to the Canada Transportation Act would:
- Provide for the use of automated systems in decision making.
- Expressly authorize the use of telecommunications by Transport Canada inspectors, investigators, and enforcement officers for the purpose of verifying the compliance or preventing non-compliance of other Acts for which the Minister of Transport is responsible.
Amendments to the Railway Safety Act would:
- Provide more flexibility associated with rules and exemptions. This will support the continued fluidity and efficiency of rail operations while reducing administrative burden.
Modernized Oversight of Railway Operations: This element would support an appropriate and up-to-date rail safety and security framework by bringing certainty to planning and decision-making for the rail industry and enable effective enforcement and compliance with rail safety and security provisions.
Amendments to the Railway Safety Act would:
- Authorize the Minister of Transport to negotiate assurances of compliance and enter into compliance agreements before or after the issuance of an Administrative Monetary Penalty
- Add prohibitions related to unruly or dangerous behaviour by passengers or at stations; and unlawful interference (such as vandalism, tampering and destructive acts) with railway operations.
- Provide for authorities to require railway companies to create security management systems and for the Minister to order corrective measures regarding those systems.
- Create the authority for the Minister of Transport to grant, cancel and suspend transportation security clearances under the Railway Safety Act.
Summary of the Proposed Amendments: Transportation of Dangerous Goods
Amendments to the Transportation of Dangerous Goods Act, 1992 would:
- Modify and provide new Ministerial and inspector authorities to provide greater flexibility to address ongoing and emergency safety risks.
- Create an Administrative Monetary Penalties regime to address a significant enforcement gap in the Transportation of Dangerous Goods Program.
- Create a registration requirement to provide Transport Canada with a reliable and comprehensive inventory of stakeholders.
Summary of the Proposed Amendments: Ports
The proposals would seek to advance the role of Canada Port Authorities as strategic enablers of supply chain resiliency and efficiency.
The ports related proposals have been grouped by theme, and include competitiveness, governance and financial management, working with communities and Indigenous peoples, environmental sustainability, and safety and security.
Port Competitiveness: These measures would seek to position Canada’s ports as strategic hubs that support national supply chain performance and effectively manage investment decisions for sustainable growth.
Amendments to the Canada Marine Act would:
- Expand Canada Port Authorities’ mandate over traffic management in support of gateway efficiency and resilience. This would include establishing a regulatory authority for traffic management to enable port authorities to institute practices and systems, including in respect of anchorages and vessel management, and data sharing in support of their role as enablers of supply chain fluidity.
- Enable the development of inland terminals that would enhance gateway throughput and alleviate congestion.
- Establish a streamlined review process for port authorities’ borrowing to strengthen their financial position and ability to respond to development needs and opportunities.
- Improve the Government’s ability to have insight into ports and their activities to support supply chain fluidity through informed decision-making.
Amendments to the Canada Transportation Act would:
- Seek to make amendments to reduce the Investment Notification and Review threshold to better support competition and national security.
Governance and Financial Management of Canada Port Authorities: These measures would seek to better reflect the evolving context in which Canada Port Authorities serve as arms-length instruments of public policy and reinforce good board governance through measures to improve composition, due diligence, transparency, and accountability.
Amendments to the Canada Marine Act would:
- Seek to enable well functioning, diverse and proficient boards by expanding eligibility, amending the membership of some boards, and taking steps to strengthen strategic planning and decision-making for port operations.
- Further promote sound governance by establishing periodic reviews and a regulatory authority to foster efficient and transparent operations.
Working with Communities and Indigenous Groups: These measures would serve to advance reconciliation and forge relationships based on recognition of rights, respect, cooperation and partnerships. In particular, more opportunities would be established to create and maintain meaningful dialogue with local and Indigenous communities to better inform port decisions and optimize responsiveness and transparency on economic, environmental, and social issues.
Amendments to the Canada Marine Act would:
- Seek to recognize Indigenous groups alongside users and communities to further support meaningful local and community engagement.
- Establish new advisory bodies or mechanisms to enable structured, transparent engagement with Indigenous communities, local stakeholders and local governments.
Environmental Sustainability of Port Infrastructure and Operations: These measures would seek to take action on risks from climate change, build climate resilience and reduce pollution. Furthermore, measures would support Canada’s ambitious commitments on climate change, including exceeding the Paris Climate target by achieving 40 to 45 per cent emission reductions by 2030 and getting to net-zero by 2050.
Amendments to the Canada Marine Act would:
- Seek to better integrate environmental considerations into port authority planning and decision-making and enhancing transparency on environmental performance, including a regulatory authority to advance climate objectives and set targets.
Port and Marine Security: Measures would seek to provide a resilient marine transportation system that is secure.
Amendments to the Marine Transportation Security Act would:
- Seek to protect marine transportation, critical infrastructure, and the promotion of marine transportation resilience.
- Enable the Minister of Transport to enter into agreements to leverage expertise to address security risks and threats, including cyber security.
- Enable the Minister to issue Emergency Directions to persons onboard a vessel or at a marine facility if immediate action is required to mitigate a direct or indirect threat to marine transportation security or to the health of persons in marine transportation.
- Provide the authority to establish Interim Orders to mitigate threats or risks to marine transportation security or to the health of persons in marine transportation.
- Integrate risk-based decision making, including for vessel directions, to enable Transport Canada to react quickly and effectively to situations of unacceptable security risk.
- Establish new regulatory authorities respecting threats or risks to public health to enable the Transport Canada to react effectively to emerging biosecurity threats in the marine mode and support current and future pandemic responses.
- Establish new regulatory authorities to support Transport Canada’s robust administration and oversight of Canada’s marine security framework.
- Amend regulatory authorities to support information sharing with federal and provincial partners.
- Seek to modernize enforcement by revising penalties for violations to align with Transport Canada’s marine safety legislation.
Amendments to the Customs Act would:
- Improve security and reduce delays to examinations by requiring persons in possession or control of imported goods to make them available for examination in a timely manner upon request, and to move certain imported goods to a secure area upon request.