What we heard: Proposed Marine Safety Management System Regulations

Transport Canada published the proposed Marine Safety Management System Regulations in the Canada Gazette, Part I, from June 25 through September 8, 2022.

The below summarizes the comments received on the proposed regulations during that period.

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Our consultation approach

The proposed Marine Safety Management System Regulations have been on Transport Canada’s regulatory agenda for over 10 years. After thoroughly assessing estimated costs and benefits, we proposed a regulatory approach to stakeholders in 2019 aimed at introducing safety management systems for most Canadian vessels.

In summer and fall of 2020 we conducted an online stakeholder consultation and also engaged stakeholders in virtual discussions on the proposal. Over 100 industry stakeholders participated in the virtual discussions.

Additionally, between 2020 and 2023, we presented updates on the regulatory proposal at meetings of the Canadian Marine Advisory Council’s Standing Committee on Domestic Vessel Regulatory Oversight.

We used the feedback from these varied consultations to continue developing the regulations and to inform the Regulatory Impact Analysis Statement.

Comments from pre-publication in the Canada Gazette

We pre-published the proposed regulations in the Canada Gazette, Part I, In June 2022, with a 75-day comment period. Fifteen respondents submitted comments through our Online Regulatory Consultation System.

We received input from:

  • the marine industry
  • Pilotage Authorities
  • commercial vessel owners, and
  • vessel owner associations

We also received comments from other government departments, international partners, an Indigenous community, and labour unions.

Feedback grouped by theme

Grouped thematically, feedback focused on oversight and compliance, safety culture, regulatory text and definitions, and coming into force as follows:

Oversight and compliance

  • Approximately 25% of the comments related to Transport Canada’s oversight and compliance capacity, including whether the department would have sufficient oversight and enforcement resources to support the proposed regulations
  • Other comments requested clarity on the methodology for Transport Canada’s risk-based oversight model

Respondents suggested:

  • adding stricter oversight criteria, including detailed regular inspections, unplanned inspections, whistleblower provisions, and mandatory versus risk-based inspections of smaller vessels
  • leveraging oversight and auditing services provided by organizations other than Transport Canada (for example, not-for-profit organizations and vessel construction agencies)
  • replacing risk-based monitoring of smaller vessels with more formal oversight processes
  • documenting the criteria supporting the risk-based methodology
  • making sure that recognized organizations can certify Class 4 vessels
  • making sure that the Canadian Maritime Documents issued for the safety management system are reviewed every 5 years, unless there are changes to a vessel’s mode of operation or crewing levels

Safety culture

  • One respondent noted that meeting the full requirements of the proposed regulations may be difficult for small businesses, while another questioned whether safety management systems would improve safety culture
  • Stakeholders questioned whether the proposed regulations would improve safety for mariners

Respondents suggested:

  • adding audits and drills for crews onboard vessels to make sure that operations follow the safety management system
  • adding more requirements to qualify for a certificate of compliance, including training and testing the crew’s knowledge
  • recommending that a vessel’s health and safety committee help review audits, drills, and corrective actions
  • stressing the importance for Ship Managers and Masters to have the most current version of Canada Maritime Documents on board, and that they be reviewed regularly
  • making sure that the crew is aware of the safety management system and has access to all pertinent documents including checklists (in multiple formats, if needed)

Definitions and regulatory text

  • Respondents would like to see “safety management system” defined more broadly
  • Respondents would like the terms “qualified person” and “Class 4” to be clarified
  • One participant noted that without any reference to the International Safety Management code in Class 4, employees are not required to be involved or included in evaluating the safety management system

Respondents suggested:

  • requiring regular review and updating of the safety management system for each vessel class
  • requiring that only the current version of a safety management system be on board a vessel
  • making sure that management review for vessels in Class 3 is feasible for smaller operators and similar to the evaluation model for vessels in Class 4

Applying the regulations to domestic and foreign vessels

  • It was suggested that the proposed regulations apply to barges that carry any dangerous goods, or oil in any form on deck or in containers on deck
  • Respondents registered concerns about consultations on the application of the regulations to foreign vessels, specifically U.S.-flagged laker vessels. Stakeholders also expressed concerns about how the regulations might impact foreign-flagged vessels on the Great Lakes
  • Respondents noted the need for a simple process for providing documents of compliance for foreign vessels.

We also received suggestions about applying the proposed regulations to domestic and foreign vessels, for example:

  • aligning vessel classes for safety management systems with the existing Marine Certification vessel classifications (for example, 12 metres instead of 15 gross tonnes)
  • having a formal policy to accept compliance documents issued and approved by the U.S. Coast Guard for U.S. flagged vessels.

Coming into force

  • most respondents were concerned about the lengthy timeline proposed for the regulations to come into force and that the timelines could allow unsafe operations to continue for extended periods of time.

Respondents suggested:

  • having operators implement a safety management system sooner and either issuing a provisional certificate to them, or lengthening the first audit or evaluation period, to provide sufficient time for them to make improvements to their safety management system.

Next steps

Common questions received from stakeholders are answered below.

We will consider the comments received through the Canada Gazette as we finalize the regulations and prepare the policy documents and implementation plans. The regulations’ Regulatory Impact Analysis Statement will address concerns raised and make clarifications when it is published in the Canada Gazette, Part II.

Frequently asked questions

For Government of Canada vessels in non-commercial service: Why do the proposed Marine Safety Management System Regulations apply to vessels owned and operated by the Government of Canada, even though they are not subject to the relevant requirements in SOLAS Chapter IX or the International Safety Management Code?

Canadian Government vessels are certified under the Canada Shipping Act, 2001. Since they‘re not included in the Regulations Excluding Certain Government Ships from the Application of the Canada Shipping Act, they must follow the Marine Safety Management System Regulations.

Fisheries and Oceans Canada – Canadian Coast Guard (DFO-CCG) confirmed its support for the proposed regulations. As such, no changes to the Regulations were made for vessels owned and operated by the Government of Canada.

How would the proposed Regulations impact operators who already voluntarily follow the International Safety Management Code?

Authorized representatives or ship managers that voluntarily follow a safety management system, or the International Safety Management Code, would be required to obtain a Canadian Maritime Document. Voluntary documents (like Declarations of Conformity or Safety Management Certificates) will not be recognized.

Can vessel operators still work with recognized organizations to develop a safety management system?

The proposed Marine Safety Management System Regulations do not mention delegating activities to a third party. There are no restrictions on an authorized representative or ship manager enrolling with a recognized organization. The authorized representative or ship manager would need to get all the required Canadian Maritime Documents from their designated recognized organization. Transport Canada will enforce the regulations and make sure that vessels are in compliance.

Why don’t the regulations require employees to be involved in evaluating the safety management system, like the International Safety Management Code does?

The proposed Marine Safety Management System Regulations would require the authorized representative or ship manager to develop procedures for audits, reviews, and evaluations of a safety management system. They must give the results of their evaluations to all personnel that have responsibilities under the safety management system.

Transport Canada is currently developing a guide to help operators comply with the regulations. The Guide will be made available online as a Transport Publication, entitled, TP15566- Guide for Canadian Vessels' Operators for Compliance with the Marine Safety. The guide will incorporate the existing Canadian instructions for certification as set out in the International Safety Management Code.

The guide will outline how to:

  • implement the requirements of the regulations
  • make sure everyone with responsibilities under the safety management system understands the system and has access to its relevant rules, regulations, codes, and guidelines
  • evaluate the effectiveness of the safety management system
  • make sure steps are taken to constantly improve the system (like evaluating feedback from personnel under the safety management system)
  • ensure that procedures associated with a safety management system are properly documented and maintained

Why is there a delayed coming into force and transitional periods for certain vessel classes? Wouldn’t it be better and more fair to have all operators implement safety management systems sooner?

The transitional periods were developed to accommodate the large number of vessels impacted by the regulations. These periods were adjusted following feedback from stakeholders in fall 2021 and are intended to provide stakeholders sufficient time to properly develop their safety management systems before the requirements come into force.

Authorized representatives and ship managers may choose to implement their safety management systems sooner than required.

If the aim is to address disparities between SOLAS and non-SOLAS vessels, why is the level of safety management system requirements different based on vessel class?

The objective of the proposed Marine Safety Management System Regulations is to improve marine safety culture in normal operations by expanding formal safety management system requirements to more vessels. The requirements in the proposed regulations mirror the requirements set out in the International Safety Management Code.

Transport Canada considered the costs and benefits of the proposal and adjusted the requirements as compared to the International Safety Management Code to help offset the costs to smaller operators. We made these changes without reducing the goals or objectives of a safety management system. All essential elements of a safety management system are still required by all operators under the proposed regulations.

How is the certification and audit process in the International Safety Management Code different from what’s being proposed in the regulations?

Valid documents of compliance and safety management certificates for Class 1 vessels subject to the International Safety Management Code (ISM Code) issued under the existing Safety Management Regulations, will remain valid until their expiry dates. The proposed regulations will incorporate the certification and audit process already required under the ISM Code.

For vessels in Classes 2 to 4, the proposed safety management system requirements have been adapted from the International Safety Management Code to address prohibitive compliance costs. The adaptation maintains the essential elements required to manage risks, while providing more flexibility for ship managers and authorized representatives of smaller vessels.

Transport Canada will issue specific Canadian Maritime Documents to ship managers/authorized representatives of vessels in Classes 2 to 4 that meet the requirements in the proposed regulations. The proposed regulations will require that Canadian Maritime Documents (either paper or electronic) be produced for the Minister on request.

The certification and evaluation process will be outlined in the Transport Publication, entitled, TP15566 - Guide for Canadian Vessels' Operators for Compliance with the Marine Safety, which will be publicly available once the regulations come into force. Recognized organizations will also be informed of the new certification and evaluation process.

The proposed regulations will require that authorized representatives and ship managers of vessels complete internal audits every 12 months.

Data on the number of impacted vessels and potential costs for the proposal seems low. Is it accurate?

The number of impacted vessels and the projected costs were based on the most current records available while the proposal was being developed. Costs will be reviewed again before the proposed Marine Safety Management System Regulations come into force.

Does Transport Canada have enough resources to enforce the number of vessels that are expected to be subject to the proposed regulations?

Transport Canada is working to make sure the regulations will be implemented efficiently. Vessels that will be subject to the regulations are already subject to an oversight process. Verifying that vessels meet the requirements of the proposed regulations will be managed as part of the department’s existing oversight practices.

The compliance of vessels that hold a Vessel Safety Certificate issued under the Vessel Safety Certificates Regulations (VSCR) will be verified during the inspection and endorsements required under the VSCR. Vessels without a vessel safety certificate under the VSCR will be verified on a risk basis as part of small vessel risk-based monitoring.

Why don’t the regulations apply to barges that carry dangerous goods or oil in any form on deck or container on deck?

The proposed regulations set requirements for authorized representatives or ship managers to put in place instructions and procedures to comply with the Canada Shipping Act, 2001 and with regulations respecting the safe operation of the vessel and the protection of the environment.

Vessels that don’t have a mechanical means of propulsion and don’t carry persons, dangerous chemicals in bulk, or oil in bulk on board, are not subject to the proposed Marine Safety Management System Regulations. These vessels are subject to the safety management system of the towing vessel instead. Other barges that do not fit the above criteria must comply with the regulations.