Rail Safety – Oversight Program Description and Delivery - Fiscal Year 2024-25

Table of Contents

1. Overview of the Program, Operating Context and Environment 

Rail Safety’s Oversight Program is comprised of three primary activities:

  • Promotion of compliance and safety;
  • Monitoring of compliance and safety; and,
  • Enforcement of compliance / mitigation of threats to safety.

In addition to railway oversight, Rail Safety is also responsible for international bridges and tunnels. Under the International Bridges and Tunnels Act (IBTA) and the International Bridges and Tunnels Regulations (IBTR), owners of international vehicular bridges or tunnels are required to conduct inspections and submit inspection reports to TC. Rail Safety reviews inspection reports to verify compliance with regulatory requirements established under the IBTA and IBTR. In addition, Rail Safety conducts on-site visual inspections of selected international bridges and tunnels every year to oversee all IBTs in a five (5)-year cycle.

Operating context

External operating environment 

Rail Safety Operations notes that the supply chain is gaining strength as traffic has increased year over year since the initial drop caused by the pandemic. There has been an increase in TSB reportable occurrences, however, accounting for the increase in traffic (86.64 million 2023 train miles vs 81.02 million in 2022) accident rates have only marginally increased. For example, the rate of movements exceeding limits of authority has increased by 0.16 accidents per 1 million train miles.

Rail Safety also leveraged the new technologies team to support the modernization of external railway operating environments such as remote safety inspections and brake effectiveness testing. The department is actively involved in new technology safety assessments which led new operating conditions for the safe introduction of new technologies.

Internal operating environment 

  • Advancements in railway technologies, such as the introduction of hydrogen-fuelled locomotives, remote safety inspections and Enhanced Train Control require internal processes that are modernized in their approach to ensure safety and effective oversight.
  • Therefore, Rail Safety is working to facilitate the adoption of new rail technologies to enable the modernization of the Canadian rail environment. Internally, research work is ongoing to support industry-led integration of new technologies and to support action on TSB recommendations. Rail Safety's research on new technologies is driven by equivalence of safety assessments to identify the benefits and challenges of new railway technologies versus federally regulated practices to set operating conditions and support the deployment of new technologies.
  • The Advisory Council on Rail Safety (ACRS) will continue discuss key Rail Safety topics, which support Rail Safety’s mandate. Quarterly meetings have been held with ACRS to keep industry partners informed and provide a forum for group discussions on key rail safety priorities.  

Changes to organizational structure

  • Transport Canada's Intermodal Surface Security Oversight Program has been renamed the Rail Security Program and merged with the Rail Safety Oversight Program to form the Rail Safety and Security Program. This new directorate focuses on enhancing the security of Canada’s railway system, responding to increased threats, and implementing new regulatory regimes. Bill C-33 will amend the Railway Safety Act to address these threats. The integration aims for a holistic oversight approach, strengthening internal networks, data analysis, and stakeholder engagement. Organizational changes are expected as the new structure is implemented.

Regulatory Measures

  • Locomotive Voice and Video Recorder Regulations: SOR/2020-178 have been in effect since September 2022. Rail Safety continues to be active with monitoring and oversight of the implementation of the regulations.
  • Consultations were completed in 2022 for the Railway Safety Management System Regulations, 2015, and analysis is being conducted to identify possible amendments. 
  • Moving forward with new proposed Railway Personnel Training and Qualifications Regulations with the view to address gaps in the training and qualification of railway company’s employees.
  • Developing policy framework and regulatory submission for new Enhanced Train Control Regulations.
  • It is expected that the Canadian Rail Operating Rules will be revised for greater consistency with the Grade Crossings Regulations. Rail Safety will work with the Railway Association of Canada on addressing these gaps. 
  • Work will continue with the Railway Association of Canada to better understand the use of brake inspection technologies with the view of supporting the implementation of the latest changes to the Railway Freight and Passenger Train Brake Inspection and Safety Rules, which will come into effect in December 2025.

Safety Management System Program

Improving the effectiveness of railways safety management systems (SMS) has been a longstanding recommendation from the Auditor General of Canada and the Transportation Safety Board. In response, Rail Safety began assessing SMS effectiveness using Key Performance Indicators (KPIs) in 2021, which became mandatory audit criteria for audits starting April 1, 2022. After one year of using KPIs, Rail Safety reviewed and revised its methodology, implementing changes as of April 1, 2024.

Rail Safety Oversight Training Program 2024-25

Rail Safety Oversight training program for 2024-25 is focused on standardizing and enhancing the training for inspectors and auditors to ensure national consistency in applying oversight approaches related to safety rules and engineering standards. It will include mandatory training on functional compliance manuals and introduce an updated course on risk principles to all staff to standardize risk terminology and methodologies. This risk course is in response to an internal assessment identifying the need for improved risk-based business planning. Additionally, there will be revisions to the training on the Ministers Observer function, the SMS regulations, and SMS auditor course.

2. Considerations and drivers for oversight activities priorities

The Rail Safety’s Program’s priorities are driven by risk which is determined by analyzing Transport Canada inspection data, data from the Transportation Safety Board and railway companies under the Transportation Information Regulations.

For 2024-25, the program will maintain a consistent and high level of oversight. The program has 37,186 oversight activities planned. The main impact risks that the program will particularly focus on are as follows:

  • Previously identified economic, environmental, and human health risks
  • Derailments
  • Trespassing
  • Crossings

Rail Safety is going to:

  • Undertake its oversight program by:
  • Monitoring compliance and safety;
  • Taking enforcement actions to address threats to safety; 
  • Monitor compliance to the Canada Labour Code for on board rail employees; 
  • Working with the Centre for Enforcement Expertise, who are now responsible for enforcement of non-compliance to the RSA; and
  • Taking stock of TSB reports and findings to assess if the regulatory framework is sufficiently robust. 
  • Complete:
    • Inspections and follow-up visits;
    • Conduct comprehensive, follow-up and targeted audits; and
    • Perform site visits after incidents when appropriate.
  • Meet with railway companies.
  • Respond to questions and complaints; and
  • Review and analyze data.

Some of the priorities will be:

  • Foster national consistency in compliance and enforcement activities;
  • Program planning to address issues that arise from climate adaptation (floods, fires and cold weather ahead of peek seasons);
  • Taking stock of Locomotive Voice and Video Recorders Regulations implementation and development of action plan; and
  • Review and analysis of the implementation of the Duty and Rest Period Rules.
Table 1: 2024-25 Rail Safety National Oversight Plan numbers by component
Regions A B C IBT Reports IBT Site visits Audits Total
Atlantic 569 3375 537     2 4483
Quebec 941 4873 561     2 6377
Ontario 1350 4495 541     2 6388
PNR 1792 8250 729     8 10779
Pacific 1143 7156 821     3 9123
NCR 0 5 5 22 4 0 36
Total 5795 28154 3194 22 4 17 37186

3. Oversight delivery in 2024-25

The delivery of oversight activities, such as planned risk-based inspections and reactive inspections, will be reported through the Canadian Center on Transportation Data (CCTD).

4. Organizational contact information

Transport Canada welcomes your comments on this report.

Email: railsafety@tc.gc.ca

Annex A: Definitions

Required field Description
Oversight How Transport Canada promotes, monitors or enforces compliance with our safety and security requirements.
Regulatory authorizations Given when a regulated party (for example, a railway company or vehicle manufacturer) applies for permission to do a regulated activity or be exempt from it. We may give permission in various forms, including a permit, licence or certification. Transport Canada does not control the number of regulatory authorizations per planning cycle.  
Inspection

A documented, formal examination of industry compliance with Canadian transportation safety and security rules, regulations and requirements. Authorized Transport Canada officials record the results of each inspection. For the purposes of this document, audits are a type of inspection.

*Includes pre-site, onsite, and post-site inspection and oversight activities. Is complete when the inspector submits an approved inspection or oversight activities report. Does not include follow-up action, quality control checks or outreach activities.

Audits

Audits consist of record reviews, interviews, observations and physical verifications to verify compliance against the Railway Safety Management System Regulations, 2015.

Audits may be comprehensive where TC assesses all components of the SMS Regulations, or they may be targeted. Targeted audits are issue-based and may be as a result of issues identified by a technical function or a follow-up on specific findings from previous audits.

Planned, risk-based inspections 

All inspections Transport Canada initially commits to doing in a given planning cycle.

* Does not include:

  • estimated numbers of demand-driven activities, such as regulatory authorizations
  • “reactive” or “opportunity” inspections that happen because of a change in oversight  
Follow-up activities

Arise from findings of an initial inspection. May include an on-site inspection, requests for more information, or enhanced monitoring.

*Do not include enforcement.

Other activities Oversight activities that Transport Canada did not initially commit to in a planning cycle and are not a follow-up to an inspection or audit. 
Enforcement

Measures we use to enforce requirements and compel compliance. For example:

  • letters of non-compliance
  • directions or orders
  • ticketing
  • notices of violation
  • administrative monetary penalties
  • prosecutions
  • suspensions or cancellations of certificates or authorizations
Education, outreach and awareness How we educate the public, and encourage people and companies to comply with the law (for example: industry conferences, air shows, training, web portal)
Quality control

How we ensure inspectors follow policies and procedures, and complete required documentation. Applies to an entire oversight activity, from inspection, to follow-up, to resolving non-compliance. Supervisors and managers are responsible for quality control.

Each program must have:

  • a documented, nationally consistent way of doing quality control;
  • a procedure or set of procedures to ensure inspections follow approved standard operating procedures