Section I: Organizational Overview

Raison d’être and Responsibilities

Transport Canada is responsible for the Government of Canada’s transportation policies and programs. We develop and enforce regulations, policies and services under the legislative authority of Parliament. While not directly responsible for all aspects or modes of transportation, the department plays a leadership role to ensure that all parts of the transportation system across Canada work together effectively.

Transport Canada is part of the Transport, Infrastructure and Communities Portfolio which includes Transport Canada, Infrastructure Canada, shared governance organizations (e.g. the St. Lawrence Seaway Management Corporation), Crown corporations (e.g., the Great Lakes Pilotage Authority, Canada Post Corporation) and administrative tribunals/agencies (e.g., the Transportation Appeal Tribunal of Canada). Grouping these organizations into one portfolio allows for integrated decision making on transportation issues.

The department’s vision of a sustainable transportation system blends and balances social, economic and environmental objectives. Our vision’s three guiding principles are to work towards the following:

• the highest possible safety and security of life and property, supported by performance-based standards and regulations when necessary;
• the efficient movement of people and goods to support economic prosperity and a sustainable quality of life, based on competitive markets and targeted use of regulation and government funding; and
• greater respect for the environmental legacy of future Canadian generations, guided by environmental assessment and planning processes in transportation decisions and selective use of regulation and government funding.

Strategic Outcome(s) and Program Alignment Architecture (PAA)

As illustrated in Figure 1, Transport Canada’s Program Alignment Architecture includes 16 programs that contribute to achieving the following three departmental strategic outcomes:

1. An efficient transportation system;
2. A clean transportation system; and,
3. A safe and secure transportation system.

The 17^th program, Internal Services, supports all three strategic outcomes.

These strategic outcomes specifically contribute to the following five Government of Canada (GoC) outcomes:

TRANSPORT CANADA STRATEGIC OUTCOMES	GOVERNMENT OF CANADA (GoC) OUTCOMES
SO1 - An efficient transportation system
	1. Economic Affairs: Strong economic growth.
	2. Economic Affairs: An innovative and knowledge-based economy.
	3. Economic Affairs: A fair and secure marketplace.
SO2 - A clean transportation system	4. Economic Affairs: A clean and healthy environment.
SO3 - A safe and secure transportation system	5. Social Affairs: A safe and secure Canada.

Figure 1: Transport Canada 2013-2014 Program Alignment Architecture (PAA)

 

[Text Version of Figure 1]

Organizational Priorities

Transport Canada has identified five priorities for 2013-14. These priorities are aligned with Government of Canada (GoC) priorities, support the achievement of its strategic outcomes and help the department address risks. Over the course of the year, senior management will pay special attention to the plans developed to meet these priorities and achieve results.

Priority #1	Type [1]	Strategic Outcome(s) and/or Program(s)
Refine and strengthen Transport Canada’s oversight function to improve transportation safety and security.	Ongoing	SO3 A Safe and Secure Transportation System (All SO3 Programs)
Description
Why is this a priority? A safe and secure transportation system moves people and goods across Canada and to international destinations without loss of life, injury or damage to property. By refining and strengthening Transport Canada’s oversight function, the department will be better able to work with the transportation industry to uphold a culture of safety and security. Plans for meeting the priority Enhance the consistent application of national and modal risk-based inspection planning/reporting and enforcement regimes. Enhance the training regime for inspectors and technical experts to ensure they continue to have their required skills and competencies. Reinforce values and ethics so that our employees continue to embody professionalism with clients, the public and industry. Complete the implementation of the Civil Aviation Safety Program Action Plan.

Priority #2	Type	Strategic Outcome(s) and/or Program(s)
Ensure that our critical infrastructure is safe, efficient and environmentally responsible.	Ongoing	SO1 An Efficient Transportation System (1.2 and 1.3 Programs) SO3 A Safe and Secure Transportation System (3.6 and 3.8 Programs)
Description
Why is this a priority? An efficient transportation system supports trade and economic prosperity and contributes to Canadians’ quality of life. Having adequate infrastructure for our key trade corridors is essential for the transportation system. Plans for meeting the priority Advance the Detroit River International Crossing by completing property transactions in Canada and beginning acquisitions in the United States; preparing the Canadian plaza site for construction and advancing work on the procurement process. Complete the environmental assessment for the new bridge over the St. Lawrence River to replace the Champlain Bridge; advance property and public utilities work and the procurement process and begin building the Nuns’ Island temporary causeway. Continue to carry-out Beyond the Border Action Plan initiatives related to cross-border transportation facilitation and security.

Priority #3	Type	Strategic Outcome(s) and/or Program(s)
Ensure that Transport Canada’s policies, programs and activities will meet the needs of the transportation system in the long-term through policy renewal.	Previous commitment	SO1 An Efficient Transportation System (All SO1 Programs) SO2 A Clean Transportation System (All SO Programs)
Description
Why is this a priority? Transportation is essential for Canada’s social and economic prosperity. This priority will ensure that our strategic approaches continue to be relevant, meet the needs of the transportation sector and balance social, economic and environmental objectives. Plans for meeting the priority Implement the Fair Rail Freight Service Act legislation. Develop the process to be used for the statutory review of the Canada Transportation Act. Engage with industry stakeholders and relevant federal government officials to address short-term opportunities and advance longer term dialogue on competitiveness issues. Continue to support innovation by advancing innovative best practices, technology applications and sector research capacity.

Priority #4	Type	Strategic Outcome(s) and/or Program(s)
Develop and implement initiatives to contribute to the Government’s Responsible Resource Development agenda.	New	SO2 A Clean Transportation System (All SO Programs) SO3 A Safe and Secure Transportation System (3.2 and 3.9 Programs)
Description
Why is this a priority? The Government of Canada is taking steps to ensure that Canada develops its natural resources in a way that contributes to continued economic growth and jobs while strengthening environmental protection. Transport Canada will take a leadership role within its areas of responsibility. Plans for meeting the priority Reduce regulatory burden on business, including natural resource development, by implementing regulatory management reforms and improved regulatory planning while ensuring the safety, security and environmental sustainability of the transportation system. Identify future measures to support responsible resource development that will strengthen tanker safety, the nation’s oil spill preparedness and response regime, and safe and environmentally responsible marine shipping. Meet our obligations under the Canadian Environmental Assessment Act, 2012.

Priority #5	Type	Strategic Outcome(s) and/or Program(s)
Implement planned efficiencies as announced in the Economic Action Plan 2012.	New	All SOs (All Programs)
Description
Why is this a priority? The Government of Canada has committed to enhance the efficiency and effectiveness of government operations, programs and services that will make it easier for Canadians and businesses to deal with their government. Transport Canada is working to deliver on its commitments, while ensuring a sustainable transportation system. Plans for meeting the priority Carry-out the approved plans for each initiative to achieve expected savings in a way that provides support and information to employees during the transition. Communicate clearly the impacts on operations, programs and service delivery.

Risk Analysis

Operating Environment

Transportation connects all of Canada’s social and economic activities. It provides market access for natural resources and agricultural goods, as well as manufactured products and services, and it provides access to work and leisure activities for Canadians and visitors. Transportation links communities across Canada in diverse and sometimes extreme conditions. The Report on the State of Transportation in Canada examines transportation from various perspectives, including the impact on economy; key factors affecting the four modes of transportation (air, marine, rail and road); the movement of dangerous goods; Canada’s gateways and trade corridors; and trends and future issues.

The extensive scope of Canada’s transportation system can make it vulnerable to serious challenges with uncertain impacts. As well, while Transport Canada plays a leadership role to ensure that all parts of the transportation system work together effectively, the department is not responsible for all aspects or modes of transportation. Therefore, the complex structure of a national transportation system, which includes multiple jurisdictions interacting with private-sector stakeholders and users, requires Transport Canada, to the extent possible, to manage risk effectively. To that end, the department identifies and analyzes risk and develops suitable mitigation strategies to achieve its strategic outcomes. Managing risk does not involve predicting or forecasting but rather analyzing and understanding possible outcomes under various scenarios.

Transport Canada has an Integrated Risk Management Policy which includes a clear governance structure and promotes the systematic integration of risk management practices to respond to known risk and uncertainty. While our risk management skills are still evolving, significant progress has been made. For example, safety and security oversight activities in all modes are refining their risk-based approach to inspection and enforcement. In addition, as part of the department’s integrated planning and reporting process, risks are identified at all levels of the organization, which leads to better informed decisions.

Key Risk Areas and Risk Responses

Transport Canada’s integrated risk management approach also includes the development of a Corporate Risk Profile, which provides a clear snapshot of our key corporate risks. It focuses management attention and action on what could most affect our results. We adjust the Corporate Risk Profile as appropriate to reflect the consequences of risk response activities and changes in our operating conditions as they arise. Through an environmental scan and department-wide consultations, Transport Canada has identified four key corporate risks areas for our 2012-13 Corporate Risk Profile. While these are the same four areas as the previous Corporate Risk Profile, we have refined risk statements to focus on specific issues within the previously identified risk areas.

We assessed these risks based on the likelihood of occurrence, combined with their potential impact on our capacity or ability to achieve our mandate and strategic outcomes. The four risk areas are:

1. transportation system efficiency,
2. oversight effectiveness,
3. security threat and
4. change management.

Transport Canada has identified 28 ongoing or new responses to minimize these risks. The new risk responses are consistent with our departmental priorities.

(1) Transportation System Efficiency: Transport Canada may not have adequate tools (policies, legislation, programs, funding, and partnerships) to influence the undertaking of strategic infrastructure improvements needed to support critical trade and resource development.

Canadians rely heavily on the transportation system to move people and goods across vast distances and to world markets by air, sea and land. Risk factors include severe weather events, uncertain global economic times; and delays in adopting new technologies (e.g., to adapt to climate change), in part due to economic pressures.

We recognize that additional stress could have an economic impact for all stakeholders (commercial and general public), which in turn could result in short- to mid-term reductions in trade volume and investment. However, through previous and ongoing infrastructure programs and responsive actions of the private sector, significant trade-related transportation infrastructure has been improved and expanded, including some improvements in remote areas. Our current priorities will continue to address this risk. Key bridges are being improved or rebuilt and our policies, programs and activities are being renewed to ensure they will meet the needs of the transportation system in the long-term.

(2) Oversight Effectiveness: Efforts to strengthen systems, processes and functional direction to frontline staff may not be well enough advanced and effectively communicated to promote a consistent and rigorous oversight regime across all transportation modes.

Transport Canada is the sole regulator for safety and security for several transportation modes and shares regulatory responsibilities for other modes.

In a complex and rapidly changing environment that includes multiple jurisdictions, it is increasingly challenging to ensure effective oversight of the national transportation system. While legislative and regulatory changes continue, along with developing systems and procedures for risk-based regulatory monitoring and surveillance, our efforts to minimize the oversight risk are not yet complete. Risk factors include dependence on other departments and private companies to manage and perform certain oversight responsibilities; more activities in remote areas; the need for adequate training and tools for inspectors; and availability of specialized capacity and expertise. The new risk statement will focus risk responses on the needs of frontline staff to ensure they have the tools, training and resilience they need to respond appropriately while monitoring compliance with regulations.

Without risk mitigation, the impact of the oversight risk could be high. However, our departmental priority to refine and strengthen Transport Canada’s oversight function to improve transportation safety and security, including the new risk-based regulatory priority management system and a governance structure with clear lines of accountability, roles and responsibilities, responds directly to this risk. Modal groups have taken important steps to make more effective use of enforcement resources, and this is reflected in program and operational risk responses.

(3) Security Threat: Systems and processes in place may not be sufficiently robust to respond to a major transportation security threat or incident in a coordinated, timely and adequate manner.

With global economic and political unrest, terrorism continues to pose a significant risk to transportation systems. One key risk factor is Transport Canada’s reliance on protocols and formal communication channels with third-party organizations for intelligence and time-sensitive information. Since we must be able to respond to significant security events properly and in a timely manner, we will maintain attention on the security risk, with greater focus on coordinating security information with third parties and partners and on internal security systems and processes. Our priorities will contribute to maintaining this focus by strengthening our oversight function.

(4) Change Management: Internal capacity (people, resources, systems, processes) may represent a challenge to effectively support change management initiatives.

This risk could decrease the quality and level of service and/or resources needed for key transformative initiatives, such as the reorganization of the Civil Aviation and Marine Safety and Security Directorates, including systems and processes. This in turn can adversely affect the delivery of key programs. The ongoing changes in our oversight functions will require careful and sustained management.

Our responses will focus on having the internal capacity to pursue transformative initiatives. One of our departmental priorities is to improve the efficiency and effectiveness of our operations in a way that provides support and information to employees and stakeholders during transition. We will also continue to keep senior management up-to-date on the progress of key initiatives so that they can make timely course corrections, if required.

Planning Summary

The following financial resources table provides a summary of the total planned spending for Transport Canada for the next three fiscal years.

For more details on Planned Spending, including adjustments, please visit Transport Canada’s website.

Financial Resources (Planned Spending — $ millions)

Total Budgetary Expenditures (Main Estimates) 2013-14	Planned Spending 2013–14	Planned Spending 2014–15	Planned Spending 2015–16
1,512	1,523	1,450	1,336

The following human resources table provides a summary of the total planned human resources for Transport Canada for the next three fiscal years.

For more detailed information, please see the department’s Integrated Human Resources Plan, which is available on Transport Canada’s Corporate Management and Reporting website.

Human Resources (Full-Time Equivalents—FTE)

2013–14	2014–15	2015–16
5,276	5,137	5,093

Planning Summary Table

The following tables present:

• the forecasted spending for 2012-13 and planned spending for the next three fiscal years, by Program, in support of each Strategic Outcome;
• the total departmental spending for all Programs forecasted for 2012-2013 and planned for the next three fiscal years; and
• the Strategic Outcomes 1, 2 and 3 Program contribution alignments to the Government of Canada outcomes.

Strategic Outcome	Program	Actual Spending ($millions)		Forecast Spending 2012–13 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada outcomes
		2010–11	2011–12		2013–14	2014–15	2015–16
Strategic Outcome 1: An Efficient Transportation System [2]	1.1. Transportation Marketplace Frameworks	14	13	12	12	12	12	A fair and secure marketplace
	1.2 Gateways and Corridors	243	200	411	538	544	469	Strong economic growth
	1.3 Transportation Infrastructure	283	366	337	321	264	247
	1.4 Transportation Analysis and Innovation	20	18	16	15	13	13	An innovative and knowledge-based economy
Sub –Total [3]		559	597	776	886	833	741

Strategic Outcome	Program	Actual Spending ($millions)		Forecast Spending 2012–13 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada outcomes
		2010–11	2011–12		2013–14	2014–15	2015–16
Strategic Outcome 2: A Clean Transportation System	2.1 Clean Air from Transportation	17	14	22	37	34	26	A clean and healthy environment
	2.2 Clean Water from Transportation	8	7	9	2	2	2
	2.3 Environmental Stewardship of Transportation [4]	42	25	23	31	25	11
Sub –Total [5]		67	46	54	70	62	40

Strategic Outcome	Program	Actual Spending ($millions)		Forecast Spending 2012–13 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada outcomes
		2010–11	2011–12		2013–14	2014–15	2015–16
Strategic Outcome 3: A Safe and Secure Transportation System [6]	3.1 Aviation Safety	211	222	212	215	213	211	A safe and secure Canada
	3.2 Marine Safety	83	75	62	58	50	49
	3.3 Rail Safety	42	33	39	34	34	34
	3.4 Motor Vehicle Safety	31	24	23	25	20	20
	3.5 Transportation of Dangerous Goods	14	14	13	13	13	13
	3.6 Aviation Security	34	36	34	33	32	30
	3.7 Marine Security	18	17	15	15	14	14
	3.8 Surface and Intermodal Security	6	5	4	5	5	5
	3.9 Multimodal Safety and Security [7]	15	12	10	11	11	11
Sub – Total [8]		454	438	414	408	393	388

Planning Summary Table for Internal Services ($millions)

Program	Actual Spending ($millions)		Forecast Spending 2012–13 ($millions)	Planned Spending ($millions)
	2010–11	2011–12		2013–14	2014–15	2015–16
Internal Services	209	200	171	159	162	167
Sub –Total [9]	209	200	171	159	162	167

Planning Summary Total ($ millions)

Strategic Outcome(s) Program(s), and Internal Services	Actual Spending ($millions)		Forecast Spending 2012–13 ($millions)	Planned Spending ($millions)
	2010–11	2011–12		2013–14	2014–15	2015–16
Strategic Outcome 1: An Efficient Transportation System	559	597	776	886	833	741
Strategic Outcome 2: A Clean Transportation System	67	46	54	70	62	40
Strategic Outcome 3: A Safe and Secure Transportation System	454	438	414	408	393	388
Internal Services	209	200	171	159	162	167
Total [10]	1,288	1,281	1,415	1,523	1,450	1,336

Expenditure Profile

For the 2013-2014 fiscal year, Transport Canada plans to spend $1,523 million to meet the expected results of its programs activities and to contribute to its strategic outcomes. This represents a net increase in planned spending of $97 million over the 2012-2013 forecast spending level of $1,426 million.

The difference is related primarily to a planned spending increase in the Gateways and Corridors program activity and specifically, the Gateway and Borders Crossing Fund and the Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund.

Transport Canada will contribute to the Economic Action Plan’s commitment to refocus government and programs; make it easier for Canadians and business to interact with government; and modernize and streamline the back office. In 2012-13, TC forecasts saving a total of $37 million. In 2013-14, the savings will increase to $47 million, which will result in ongoing savings of $62.1 million by 2014-15 ^{[11] .}

Transport Canada’s financial reports are available on our website.

Figure 2: Departmental Spending Trend

 

[Text Version of Figure 2]

Estimates by Vote

To learn more about our organizational appropriations, please see the 2013–14 Main Estimates publication.

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada’s commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. The government will be consulting the public in 2013-14 on the second three-year cycle of the FSDS (2013-16). The 2013-16 FSDS will be finalized in 2013-14. It will be presented as part of year end performance reporting for 2013-14.

Transport Canada ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the federal Strategic Environmental Assessment (SEA) process, any new policy, plan, or program initiative must include an analysis of its impact on attaining the FSDS goals and targets. The results of SEAs are made public when an initiative is announced, demonstrating the department’s commitment to achieving the FSDS goals and targets.

Transport Canada contributes to Theme I - Addressing Climate Change and Air Quality; Theme II - Maintaining Water Quality and Availability; Theme III - Protecting Nature; and Theme IV - Shrinking the Environmental Footprint – Beginning with Government, as denoted by the visual identifiers below.

These contributions are part of the following program activities and are further explained in Section II:

• 1.4 Transportation Analysis and Innovation;
• 2.1 Clean Air from Transportation;
• 2.2 Clean Water from Transportation; and,
• 2.3 Environmental Stewardship of Transportation.

For additional details on Transport Canada’s activities to support sustainable development, please see Section II of this RPP and visit our Departmental website on Sustainable Development. For complete details on the Strategy, please see the Federal Sustainable Development Strategy website.