STRENGTHENING DATA SHARING IN TRADE CORRIDORS
Q. On what basis does the Government of Canada propose to amend the Minister of Transport’s order-making powers?
A. Recent events such as the pandemic, floods in British Columbia and the war in Ukraine, have highlighted vulnerabilities in Canada’s globally connected multimodal supply chains and the need to build resilience. The Minister of Transport launched an independent National Supply Chain Task Force in late spring 2022 to ensure that we would have access to external expert advice on how to address these key vulnerabilities. Their final report includes recommendations on how to strengthen Canada’s supply chains, many of which were acknowledged in the Fall Economic Statement.
The report highlighted that agile, evidence-based decision-making is needed from businesses and policy makers to rapidly adjust to shocks in an increasingly volatile environment. This includes having access to data that provides visibility into the activities and capacity of supply chain players in a timely manner. The findings echo a 2014 Canada Transportation Act Review report, which noted that to be globally competitive, transportation decision makers require authoritative and timely evidence to be able to anticipate, better plan and coordinate, and invest in timely transportation system improvements to ensure that the system continues to support the Canadian economy and the quality of life of Canadians.
In 2023, the Minister of Transport announced the launch of a new call for proposals, under the National Trade Corridors Fund, focused on Advancing Supply Chain Digitization. Through this initiative, Transport Canada is also looking to improve its understanding and monitoring of supply chains to increase its capacity to make informed policy and intervention, notably in the context of major supply chain disruptions.
The proposed amendments to the Canada Transportation Act are necessary to support the digital strategy in cases where proactive disclosure and voluntary data sharing by supply chain players does not fully meet the data and visibility requirements. The proposed amendments would create legislative tools as a legal backstop where voluntary data sharing falls short. They are intended for use when there exists an unusual and significant disruption to the national transportation system or any portion thereof, and such orders would be temporary and would not last more than 90 days.
Q. Why is the Minister of Transport bringing forward these amendments to the Canada Transportation Act now?
A. Transport Canada’s preferred approach in closing data gaps related to supply chain performance has been to pursue voluntary and industry-led arrangements. This approach has been effective in certain regions, such as the Lower Mainland of British Columbia, where a strong consensus on the need for collaboration exists. Transport Canada will continue to work on this basis with supply chain partners across the country.
High-profile supply chains disruptions over the last 2 years have highlighted the need for transportation decision makers to have access to a complete national picture of supply chains. Establishing a legal backstop via the proposed amendments will help to ensure that the Minister of Transport has authority to compel and share relevant data to support resilience and speed system recovery, to limit the negative impacts that disruptions have on citizens and businesses, when voluntary approaches fall short.
Q. How will any new data collected by the Minister be protected?
A. As a regulatory department, Transport Canada routinely receives sensitive commercial data from federally regulated entities. This data is protected by a robust legislative and regulatory framework established in part by, for example, the Access to Information Act, the Canada Transportation Act and the Transportation Information Regulations. These and other data are held securely within TC data systems, where access to sensitive data is protected by long-standing governance arrangements.
Any new data that the Minister of Transport receives under the proposed Ministerial Order Power would be protected within the existing framework noted above and would be subject to the same governance provisions and security arrangements as currently in place. The new power for the Minister of Transport to compel data does not include the power to require any personal information within the meaning of the Privacy Act. Any data shared with entities referred to in Section 50 (1.1) of the Canada Transportation Act would be controlled using non-disclosure agreements as a supplement to legislative and regulatory provisions, recognizing explicitly that these persons cannot disclose this information and must protect the confidentiality of the information.
Q. What kind of data will be compelled or shared?
A. The proposed amendments to the Canada Transportation Act are intended to support greater visibility of freight transportation activities and goods in transit. In this context, the types of data collected or shared would describe, for example, activities at an operational level that could be used to develop Key Performance Indicators, or related operational metrics or analytics that provide insight on available capacity or projected demand for service.
Transport Canada will hold consultations in advance of making regulations related to data sharing. These data would be used to support, for example, optimization and operational planning by supply chain players, to provide information to match supply and demand for transportation services, or to provide information on short-term and long-term demand for services to help plan network capacity. In the specific case of an unusual and significant disruption, data may also be required to provide information about the movement of essential goods, the resupply of remote communities, or information on alternative ways of transporting goods to areas of greatest need.