- Transport Canada has taken a step-by-step process to support the roll-out of safety management systems across the rail network. This process started in 2015, when Transport Canada repealed and replaced the Safety Management Systems Regulation, which established modern requirements for railway companies to set safety performance targets, conduct risk assessments, and develop a monitoring and reporting process.
- To support the roll-out of this new regulation, Transport Canada’s oversight began with looking at compliance with the new requirements, such as risk assessments and clear identification of accountable executives.
- We have achieved considerable progress – as of June 2020, we completed compliance audits of safety management systems for all railway companies in Canada. The department has also significantly increased the number of audits. When the 2013 audit report was tabled we were doing an average of 4 audits per year, and our current yearly average is 25.
- Taking early action on the Auditor General’s follow-up recommendation, we have already developed a framework to consistently measure the effectiveness of safety management systems. We are scheduled to launch effectiveness audits in September 2021.
Background Information
The Safety Management Systems (SMS) Regulations were established 2015, creating new requirements for railways to build a safety culture. This includes, for example, requirements to conduct risk assessments when an operating procedure is changed, clear identification of accountable executives, requirements for managing employee knowledge and training for safe operations.
To support the roll-out of the new regulations, in 2015-16, Transport Canada staff met with each railway to explain the requirements of the new Regulation as well as review draft SMS processes to ensure they were in compliance. In addition, the department prepared an Industry Oversight Guide to support railway companies.
Between 2016 and 2020, all railways were audited at least once to ensure that railway companies have SMS processes documented and implemented. For example, the compliance audits looked at whether each company has a documented process for reporting hazards, and then took it a step further to interview staff to confirm that they know they can report hazards and that those hazards must be addressed. For each audit, two workshops were held with railway companies to review the findings of the audits. Where significant non-compliances were identified, these areas were covered in great detail so that companies could have a better understanding of regulatory requirements.
Transport Canada also took steps to improve the rigour of the audit process, such as developing an audit manual and audit course for SMS auditors. An inspectors’ oversight guide and a regulatory course was developed so staff could consistently apply the Regulation.
The SMS audit process covers a significant amount of data, including audit history, TSB accident data, history of enforcement actions, notifications of change and risk assessments, and discussions with employees and functional groups. This data is used to determine when an audit should be completed (e.g. risk-based planning).
Going forward, the department has a plan in place to start targeted effectiveness audits. To support a consistent and rigorous approach, the department prepared an effectiveness audit framework, and these audits will start in September 2021.