TRANSPORTATION

POLICY BRIEFING THE HILL TIMES, APRIL 6, 2015

TRANSPORT MINISTER LISA RAITT NDP MP HOANG MAI Pilot behaviour seen in Germanwings crash Railway safety: a disconcerting lack of ‘would not happen in Canada’: Raitt regulatory oversight

CONSERVATIVE MP LARRY MILLER LAC-MÉGANTIC Miller says House Transport Committee’s Getting the big picture right: regulating rail report will help strengthen transportation transportation of crude oil after safety in Canada Lac-Mégantic disaster

LIBERAL MP DAVID MCGUINTY AIR TAXIS Canadians continue to be deeply concerned Government needs to support smaller about rail safety, and rightly so. airports as TSB investigates air taxis

LASER STRIKES RAIL SAFETY Transport Canada data indicates rates of laser Opposition supporting rail safety bill to boost strikes continue to rise ministerial oversight, shipper liability

ASIA TRADE Grain competing with other products in western rail as Asian trade prioritized 20 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

Q&A LISA RAITT Pilot behavior seen in Germanwings crash ‘would not happen in Canada’: Raitt

BY RACHEL AIELLO to market. So if we’re signing all timistic that it’ll go through and I these free trade agreements, we am grateful for the support of the ransport Minister Lisa Raitt need to make sure the entire sup- opposition.” Tsays she’s confi dent the ply chain is ready to go and fi ring current annual medical checks and that’s what he’s doing. The new Railway Safety Manage- for Canadian pilots are enough “So for me, day-to-day, it’s ment System (SMS) regulations to ensure the safety of all aboard about safety, but the bigger picture came into effect April 1. Critics Canadian commercial airlines is we have a process in place to and the Transportation Safety and that the series of events that talk about what the future looks Board are still calling for more di- led to the tragic Germanwings like and that’s the exciting side.” rect oversight, and that there will crash over the French Alps re- be more to come in your work cently wouldn’t happen here. Bill C-52, the Safe and Account- with the TSB on this. Are there “I think the gentleman in Ger- able Rail Act, is now at committee any new measures you’re able to manwings was concerned about stage in the House, after two days announce yet? whether or not he would lose his of debate on Monday and Tues- “I had a meeting yesterday licence and he hid so much about day. It hasn’t moved far since you [Monday] with the chair of the his life including his doctor’s introduced it in February. Are you Transportation Safety Board visits. That would not happen in confi dent it will pass before the Kathy Fox, and I have met with Canada,” Ms. Raitt said. House adjourns in June? Why is it the chair of the safety board pre- On March 24, co-pilot An- important that it does? vious too, Wendy Tadros. We take dreas Lubitz deliberately crashed Transport Minister Lisa Raitt, pictured last week in her Confederation Building offi ce “I was very happy yesterday the opportunity to go through Germanwings fl ight 9525 into the on the Hill with HT reporter Rachel Aiello. The Hill Times photograph by Jake Wright [Monday] that the NDP stood what they term as their watch French Alps, killing all 150 people up and said they were going to list, things that are outstanding on board including himself and his support. That made it a lot easier from their investigations that co-pilot who he locked out of the Hill Times for an interview in her the work we’ve done on marine for the progress of it. There’s they think should be looked at by cockpit. In the days following the Hill offi ce last Tuesday, to dis- tanker safety, the work that we’re going to be a good debate around Transport Canada and we had a crash, grim details have surfaced cuss a wide-spanning number of doing on aviation safety, all of it, but I do see it passing. I think really good conversation, and my about his history of mental illness. issues in the transportation fi le, those things are really important this is something that we’ve been goal is to go back to the depart- Days later in Ottawa, Ms. Raitt from rail safety and the debate and there kind of like day-to-day working on since the Lac Mégan- ment and get some of those items announced new regulations man- over Bill C-52, to the Canadian things that you do. Transport tic tragedy. The committee has moving again, to make sure, like dating Canadian airlines to have Transportation Act review, and Canada has a very involved con- been engaged, the committee has I said before, getting them out of two crewmembers in the cockpit the future of grain shipping and sultation process and sometimes both opposition members on it, the consultation process that is at all times during fl ight. port exports. The following has you just have to give the last push government members on it, so happening, which is valid, and She has instructed Transport been edited for style. to get it out of the department they’ve been working together on into practical application and Canada offi cials to look into any and get it into operation. So that’s it. And I think what I’d say about that’s the goal. other possible gaps in regulations, What the single biggest challenge kind of where I see my role right this is, this is really not one of “So I don’t have anything to but said she’s “content” with the sys- in the transportation fi le current- now in the department. those fi les that you treat political- tell you right now, other than the tem in place. Currently, under the ly and how is the government “On the future of transpor- ly. This isn’t an ideology. Every- fact that I can illustrate that we Aeronautics Act, pilots are expected addressing it? tation, I’m very excited about one is on the same side as safety do work closely with all parties, to disclose their occupation to their “So I would say for me, the CTA review, the Canadian and these are measures that have meaning the Transportation Safe- doctors and these physicians have personally, it’s about safety but Transportation Act review headed been asked for by communities ty Board, and Transport Canada an obligation to report to Transport I think equally important, but by David Emerson, with a really and measures that have been offi cials to move these things Canada if they have any concerns never trumps safety, is the future good panel of advisers across the asked for by railways as well too, along.” about a pilot’s ability to fl y a plane of transportation. And we’re country. They’re taking submis- so this makes a lot of sense. There safely. As well, pilots experience dealing with it in two ways. On sions and they’re talking about may be criticisms about us not You mention getting things out random fl ight checks by the depart- the safety side it really comes what the future of transportation going too far, which is what I’m the door. Can you provide a bit ment throughout their careers. from the department and it comes is. And that’s really important be- hearing from the NDP, but it’s not more detail on what these things Ms. Raitt, who represents from the government, so the cause our trade agenda complete- criticising what we’ve done so far, Halton, Ont., sat down with The work we’ve done on rail safety, ly depends on us getting goods so that’s a good piece, so I am op- Continued on page 31 7RGD\·VJOREDOHFRQRP\LVQRWMXVWGLJLWDO« «LW·VIUHLJKW$QGVKLSVFDUU\RYHUSHUFHQWRILW

In Canada alone, millions of tonnes of imports and exports transit through ports. From fuel oil, wheat and potash, to In 2014, we handled over 311.5 million tonnes, the containers that carry computers and smart phones. created more than 250,000 direct and indirect That presents a big job for the 18 Canada Port Authorities. MREVDQGDGGHGELOOLRQWR&DQDGD·V*'3

&DQDGD·V3RUW$XWKRULWLHV World-class facilities that help Canadians compete both at home and around the world.

ACPA-PORTS.NET The Great Lakes St. Lawrence Seaway System

Refreshing

The Great Lakes St. Lawrence Seaway

System, otherwise known as Highway H2O, is a 3,700km marine highway that fows directly into the heartland of North America.

Highway H2O offers long-term benefts, such as reduced congestion and less stress on urban infrastructure. Companies that integrate the marine mode into their supply chains beneft from reduced greenhouse gas emissions and improved fuel effciency.

Cost effective, safe, and dependable delivery

makes Highway H2O a competitive choice for your transportation needs. Today’s contribution to a cleaner better tomorrow.

Water way to go!

www.hwyH2O.com

GO 22 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

LASER STRIKES Transport Canada data indicates rates of laser strikes continue to rise The aviation industry is 461 in 2013, and according to a review by in the Pacifi c region, and 12 in the northern When asked why he thought the gov- the Vancouver Sun, 501 in 2014. This is on and Prairie region. ernment would be interested in the public calling on the government average, a 40 per cent increase annually. The National Airlines Council of Can- awareness side, but not the legislative The transport department manages a ada (NACC) said the continual increase in changes, Mr. O’Rourke said that it’s a good to do more, feds say database called the Civil Aviation Daily the rate of these incidents requires urgent fi rst step, but also said it needs to be look- they’re open to an Occurrence Reporting System, or CA- action from the government. ing at the other prongs of the approach too. DORS. It compiles all reported aircraft “The concern is we’re seeing an in- “It may be a question of, ‘What is the awareness campaign incidents, including laser strikes that hap- crease in the numbers over the last few easiest thing to in the short-term?’ But we’re pen involving Canadian airlines, or over years… it’s a serious issue,” NACC Execu- still hopeful that they’ll turn their attention BY RACHEL AIELLO Canadian airspace. According to The Hill tive Director Marc-André O’Rourke told to having more concrete criminal offences Times review of 2015 CADORS incidents, The Hill Times. but there is at least some movement.” ccording to a review by The Hill Times, there have been nearly 100 so far. “And it’s really a concern from the avia- [email protected] ATransport Canada’s database of avia- Between Jan. 1 and March 30, there tion safety perspective.” His organization The Hill Times tion occurrences, laser strikes are on the were 99 incidents of laser strikes reported represents Air Canada, Air Transat, WestJet rise, and the aviation industry is calling for to Transport Canada. The department was and Jazz, but he said the issue of laser the government to respond to the increase unable to confi rm the number, because it strikes is an industry-wide concern that TRANSPORT CANADA DATA as well as the security threats they pose, has yet to validate any of the reports, and multiple pilot and aviation associations with tougher penalties and increased the total numbers aren’t made offi cial until are paying attention to, including NAV Number of laser regulation. they have been checked out and logged at Canada, the Airline Pilots Association In- Laser strikes are when someone on the the end of each year. ternational, the Helicopter Association and strikes annually ground shines a laser pointer into the fl ight Of the 99 reported laser interferences, the Air Transport Association of Canada. deck of an aircraft, usually during its take- 56 were experienced by major Canadian The industry has been “very active” in 2007: 21 incidents off, landing or approach. It can impair or airlines. WestJet reported the most, with lobbying the government to make pointing a 2008: 62 incidents damage the vision of the pilots, and cause 17 so far in 2015, Air Canada reported 16, laser into the cockpit of an aircraft a criminal 2009: 118 incidents a distracting glare or temporary fl ash- Jazz reported 12, Sunwing reported three, offence. Currently, it is a federal offence that 2010: 182 incidents blindness. Between 2007 and 2014, Trans- and Rouge reported two. The other 43 comes with a $100,000 maximum fi ne under 2011: 229 incidents port Canada’s statistics show the number of events were divided among 37 smaller air- the Aeronautics Act and up to fi ve years in 2012: 357 incidents laser interference incidents occurring was lines, each reporting one or two instances jail. But, Mr. O’Rourke said more specifi c leg- 2013: 461 incidents increasing dramatically. In 2007, there were each. Half of them occurred over airspace islation to address the issue of laser interfer- 2014: 501 incidents 21 reported incidents, 62 in 2008, 118 in in the Ontario region, including two in the ences is needed, with “more teeth,” meaning 2015: So far 99* incidents 2009, 182 in 2010, 229 in 2011, 357 in 2012, National Capital Region, 20 in Quebec, 17 more severe penalties, in hopes of deterring people who think it’s a joke. A Breakdown of the 2015 Numbers So Far As well, the industry is asking to work There were 32 reported laser interference with Health Canada and Transport Canada incidents reported in January 2015, 30 reported to regulate the purchase and possession in February, and 37 reported by March 30. of lasers over a certain capacity, and to embark in a public education awareness Occurrences by Major Airline: campaign “as soon as possible” to commu- WestJet: 17 nicate the danger lasers pose to aircrafts, Air Canada: 16 pilots and anybody in the path of the beam. Jazz: 12 In an interview, Transport Minister Lisa Porter: 6 Raitt (Halton, Ont.) said she’d be “more Sunwing: 3 than happy” to be a part of raising aware- Rouge: 2 ness about the issue, but she said the The other 43 events were divided among 37 current penalties are suffi cient and it’s not smaller airlines, each reporting one or two diffi cult for police to lay charges using the instance each. act in place. “I launched a public awareness cam- Laser Strikes by Region: paign about drones last fall and I think Ontario Region: 48 that’s been benefi cial. I think it is impor- Quebec Region: 20 tant to let people know out there if they Pacifi c Region: 17 think they’re joking around out there with Prairie and Northern Region: 12 a laser pointer, they can really cause some National Capital Region: 2 damage to a pilot and as a result put in peril the passengers on that plane,” said Source*: Unconfi rmed by Transport Canada, but Ms. Raitt, adding that it’s a “no-brainer to according to all reported incidents logged in the talk about the dangers associated with it.” CADORS system.

Independent reporting means

No positions to advance. you get the critical business No biases to nurture. knowledge you need.

Canada's media and telecom business news you can trust. thewirereport.ca When you choose VIA Rail for your business travel, you help reduce government expenses and create value for taxpayers. Plus, you maximize your productivity along the way. So get on board with train travel today.

Route # of daily Distance Productive Non-productive Cost of Cost of travelling Taxpayer savings departures train time car time* travelling by train by choosing by car** (as low as) train travel***

Ottawa Toronto Up to 16 450 km 3 h 51 min 4 h 34 $467 $441 $423

Ottawa Montréal Up to 14 198 km 1 h 49 min 2 h 27 $227 $331 $194

Ottawa Québec City 1 482 km 5 h 25 min 4 h 39 $488 $551 $433

Toronto Montréal Up to 18 541 km 4 h 32 min 5 h 30 $562 $441 $518

1 Government of Canada employees receive 10% off the best available fare on all trains and classes of service offered by VIA Rail Canada. Available for both business or personal travel. Conditions apply. For more information, contact PWGSC Shared Travel Services. * 30 minutes was added to the total travel time by car in order to account for traffic and bad weather en route. ** The total cost to the taxpayer of travelling by car is calculated based on the following formula: (Treasury Board kilometric rate for Ontario of $0.55/km for car travel by a government official X total distance travelled) = $ cost of travel by car + (average hourly rate of $48/h for a government employee, based on a salary of $100,000 per year including employee benefits X travel time) = $ total cost to taxpayer *** The value of travelling by train is calculated based on the following formula: Cost of travelling by car – cost of travelling by train = taxpayer savings

TMTrademark owned by VIA Rail Canada Inc. 24 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

RAIL SAFETY Minimizing the risks of transportation of crude oil by rail Canadians expect their anada and the United States have illustrate that action is still needed to garding train operations, railways must Cincreased their output of oil over the make the transportation of flammable adapt the speeds, the length and weight government and the railway years. In fact, North American crude oil liquids even safer. of trains, and locomotive power distribu- shipments on Canadian Class 1 rail lines Many factors infl uence rail transporta- tion to the terrain and track conditions industry to minimize the risks increased from 500 carloads fi ve years tion safety and each is equally important. along the route so that trains arrive at posed by the transportation of ago, to about 212,000 carloads in 2014. their destinations safely. They must also But as oil production grows, so have the Preventing derailments remain aware of environmental factors large volumes of fl ammable demands on the transportation infra- Preventing train derailments start and adjust their operations as required. structure to get the oil to market. with route planning and analysis. As More frequent inspections and preventive liquids by rail to the greatest Following the July 2013 accident in such, industry and Transport Canada maintenance of rolling stock are required Lac-Mégantic, Que., and other fiery need to take a close look at the routes to ensure that brakes, wheels, axles and extent possible. derailments, the Transportation Safety on which large quantities of fl ammable other components are in working order Board of Canada (TSB) placed the trans- liquids are transported and determine and will not contribute to a derailment. portation of flammable liquids by rail how they can prevent derailments, and on its Watchlist—the list of issues we be- how to minimize the consequences of a Minimizing the consequences lieve pose the greatest risk to Canadians. derailment. This also means a thorough When a derailment does happen, the While Transport Canada (TC) and the examination of the track infrastruc- industry and Transport Canada must railway industry have taken numerous ture to plan and execute the necessary ensure that the negative impacts on KATHY FOX positive steps towards mitigating risks, repairs and upgrades so that the track people, property and the environment recent accidents in Canada and the U.S. can sustain the loads at all times. Re- are minimized. This begins with a good understanding of the properties of the dangerous goods and what the negative consequences are if product is released. Accurate product description is critical to product packaging and proper emergen- cy response planning and measures. The TSB also recommended emergen- cy response assistance plans (ERAPs) for the transportation of large amounts of liquid hydrocarbons. During an accident, the handling of these products requires special resources, supplies and equip- ment. Approved ERAPs would ensure that fi rst responders have timely access to the required resources and assistance to help mitigate the consequences of an accident. The last line of defense against a product release during a derailment is the tank car. However, as we have seen in Lac-Mégantic and in the two recent derail- ments in Gogama, Ont., “legacy” Class 111 tank cars and the newer CPC-1232-compli- ant tank cars do not provide an adequate level of protection. Transport Canada has recently an- nounced a proposed standard for a new series of tank car for transporting fl am- mable liquids in response to TSB recom- mendations. This new standard would re- quire thicker and more impact-resistant steel, thermal protection, full-height head shields, and improved top and bottom fi tting protection. While this is promising, the TSB remains concerned about the risks pending full implementation these new standards. The Lac-Mégantic accident investigation found shortcomings with safety management by the company and with Transport Canada oversight. The TSB has also since placed safety management and oversight on its Watchlist. Proactively identifying and taking measures to minimize the risk of derailments and their consequences are part of effective safety management processes. And Transport Canada must rigorously oversee safety management by companies and intervene to successfully change unsafe operations. Canadians expect their government and the railway industry to minimize the risks posed by the transportation of large volumes of fl ammable liquids by rail to the greatest extent possible. A thorough understanding of the characteristics of the goods being transported, in conjunction with knowledge of all of the factors affecting safety—both in preventing accidents and minimizing their impact—will go a long way toward improving transportation safety. Kathy Fox is chair of the Transportation Safety Board of Canada. [email protected] The Hill Times Powering Electric Vehicles With Our Low-Carbon Electricity—A Missing Element of Ontario’s Economic Action Plan

vehicles (EVs), which could significantly Quebec plans to invest $517 million Powering “Made-in-Ontario” zero-emission reduce emissions from Ontario’s largest electrifying its transportation system vehicles with our province’s low-carbon GHG source, transportation. leveraging Hydro Quebec’s (HQ) low- nuclear, hydroelectric and biomass carbon hydropower while creating a generation assets represents significant Converting Ontario’s two mothballed coal manufacturing network. In addition, HQ environmental and economic benefits. stations, Nanticoke and Lambton, to make will be allowed to invest in public transit Ontario will miss a major opportunity if it use of the province’s renewable forest and electrification projects. fails to develop a strategic plan that links farm sourced, carbon-neutral, biomass and maximizes these advantages. resources would reuse these valuable provincially owned assets. Compared to intermittent wind and solar generation, fuelling these existing assets with a combination of biomass and natural gas would: further reduce GHG emissions; provide reliable electricity to meet peak Clean power demands; and, improve energy By Don MacKinnon security. The supporting biomass fuel supply President chain infrastructure is estimated to create about 3,500 jobs and contribute about Electricity Power Workers’ Union $600 million annually to Ontario’s GDP. The provincial government has made Currently, Ontario hosts five major + several announcements about how its global automotive assemblers and strategic plan will create jobs, reduce over 700 parts suppliers. An estimated greenhouse gas (GHG) emissions and 400,000 direct and indirect jobs as well Transportation grow the economy. However, much more as research at over 30 publicly funded needs to be done to establish direct facilities are supported by this sector. strategic links among Ontario’s current Ontario represents about one sixth of = advantages—its successful nuclear and North America’s vehicle production, most auto sectors, the province’s vast forestry of which is exported. The auto industry and agricultural biomass resources, and its contributes about $20 billion a year— valuable existing electricity assets. more than 4 percent of provincial GDP. Climate

Ontario’s nuclear reactor fleet is our The Ontario government wisely supports province’s electricity workhorse, safely and refurbishing the province’s nuclear reactors Change Action reliably providing 24/7 base load electricity and the export of Canada’s nuclear, for more than 45 years. For the last seven technology, advanced innovations and years, nuclear power has produced over expertise. It has also invested in Ontario’s Transportation is our largest source of greenhouse gas (GHG) emissions. half of Ontario’s electricity reaching a high auto sector and conversion of the Powering emission-free electric vehicles with Ontario’s safe, reliable, of 62 percent last year. Atikokan and Thunder Bay Generating affordable and low-carbon hydroelectric, nuclear and biomass Stations from coal to biomass. generation can significantly reduce GHG emissions, create thousands Several economic studies show that of high value jobs and ensure our energy security. additional investments in Ontario’s nuclear While these initiatives are consistent Success requires smart, strategic investments: fleet will help sustain and grow Canada’s with Ontario’s strategic plan some • Refurbishing all of Ontario’s reactors and building new ones; $6 billion per year nuclear industry, significant challenges and untapped • Recycling the mothballed Nanticoke and Lambton coal stations to including its 160 plus supply chain opportunities remain. use natural gas and carbon-neutral biomass for peak production; companies, 60,000 direct and indirect jobs • Investing in a biomass supply chain; and hundreds of millions a year in research Ontario’s auto sector continues to face stiff • Installing electric vehicle charging infrastructure. and development at our province’s competition from Asia and Europe and a universities and colleges. shift in auto production to Mexico and the These investments leverage Ontario’s proven advantages — a $6 billion a year, 60,000 job nuclear industry; a 400,000-job auto sector; southern U.S. Recently, Ontario lost a major Ontario’s existing electricity assets; our forestry, agriculture and Annually, Canada’s 19 nuclear reactors, electric vehicle (EV) opportunity when transportation sectors; and low-cost overnight electricity surpluses 18 of which are located in Ontario, Toyota stopped producing its RAV 4 EV at ideal for charging electric vehicles — they deliver real economic and avoid about 90 million tonnes of GHG its Woodstock plant. environmental benefits. emissions, equivalent to taking 81 per For more information please go to: www.pwu.ca cent of Canada’s cars off the road. Michigan is now first in vehicle

Studies show that investments in nuclear manufacturing among states and FROM THE MEN AND WOMEN WHO HELP KEEP THE LIGHTS ON. generation could reduce GHG emissions provinces, a position Ontario occupied after 2023 by 108 million tonnes when since 2004. They have been investing compared to building more intermittent heavily in advanced vehicle manufacturing wind energy backed up by carbon since 2008 and this has helped secure the emitting natural gas generation. In production of GM and Ford EV models. addition, base-load nuclear is well suited for overnight, off-peak charging of electric 26 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

ASIA TRADE Grain competing with other products in western rail as Asian trade prioritized

an applied economist working on transpor- There will be a rising tation issues. demand for goods going “I don’t think the railways right now have an enormous capacity problem,” although to Asia, and Canada is there could be in the future if the prairie prov- inces follow up on their plans to increase their preparing for it with the agricultural output, said Prof. Nolan. He said rail companies have made Asia-Pacific Gateway short-sighted decisions in abandoning some and Corridor Initiative. lines and then wanting them back when there is the potential to make a profit. Prof. Nolan said he expects that due to BY DENIS CALNAN the expanded inter-switching limit, and the result of the American company, Burling- s Canada focuses on expanding trade ton Northern (BN), now having access to Awith Asia, putting more of a demand some of the Canadian market, CN and CP on the country’s railway operators, rail may go to the federal government and ask industry observers say the sector is chang- for more infrastructure money, in an argu- ing and opinions are mixed about whether As Canada focuses on expanding trade with Asia, putting more of a demand on the country’s ment for Canadian companies to have an CN and CP should ensure they have “surge railway operators, rail industry observers say the sector is changing and opinions are mixes about advantage to move Canadian products. capacity,” the ability to move an unusually whether CN and CP should ensure they have ‘surge capacity,’ the ability to move an unusually “There’s a bit of a nationalism issue large amount of products. large amount of products. that’s going to come into here,” said Prof. “Over the winter there were worries Nolan. “If Burlington Northern starts taking about backlogs, not just in grain. But there oil or grain or other major bulk traffic from was a cascading impact that affected a But not all industry observers think that their political support in the prairies,” and either one of the two Canadian railways, I whole host of industries, everyone who was surge capacity is necessary. “they came up with a bunch of really silly think there’s going to be an easy argument shipping by rail,” said Carlo Dade, director “The railways are continuously spending regulations. One of those was to extend the made on Parliament, that in fact the rail- of the Centre on Trade and Investment Poli- on improving capacity,” said Barry Pren- inter-switching limits,” which went from 30 ways need to have some support to make cy at the Canada West Foundation. tice, professor at the I.H. Asper School of km to 160 km, and setting a grain-moving our infrastructure just as good as BNs.” “The ability to move product to market Business in the department of supply chain quota for the rail companies. “Will the government buy into this? I is crucial for Canada and even more cru- management at the University of Manitoba. The expanded inter-switching limits think so,” he said, noting rail companies cial for Western Canada, given that we are But he said capacity only goes so far. are meant to improve the access that grain are already pushing for it, especially the commodity exporters,” he said, highlight- Speaking to the surge in grain in 2014 shippers have to the lines of competing doubling of tracks. ing that there is not very much publicly that led to the federal government passing railway companies. “What’s going to predominately happen, available hard data on service levels in the legislation that forced railways to carry Prof. Prentice said the policies sur- I think, knowing about what I know about rail industry. a certain amount of grain per week, Prof. rounding rail companies mandated moving how the rail guys think, they’re going to “The particular problem we face, Prentice said “we had a 35 per cent increase of grain don’t make sense and the govern- double track a whole bunch of this stuff, especially in Western Canada, are surge above the five-year average of grain pro- ment should step aside and let the market so they can run high volume trains both demands for moving products,” said Mr. duction. Now you think about any kind of work. ways and not have to worry about switch- Dade. “We need a system that can respond system—no system is geared to have a 35 per “Why do we have a special case for ing problems. Like right now, if you’ve got dynamically to surges in demand. And cent excess capacity sitting around in case.” grain? And why only in Canada? We don’t a single track going for a long way, you’ve that’s the real trick with this.” “All the blame was heaped on the rail- do this in the U.S. and we don’t do it for got to move that train to the point where He said all stakeholders in the indus- ways. Which was very incorrect,” said Prof. any other commodity. So why is grain dif- you can get to a siding and then move it off try—the rail companies, those who use the Prentice. ferent? Except for the politics of it,” he said. and let the other train go through. They’re services, and government—need to come He said that in dealing with the issue, The inter-switching limit change is at going to be doing more double tracking [in together and come up with a solution, politics trumped policy: Transport Minister least in part due to the research of James high volume areas],” said Prof. Nolan. which is what has happened in the past Lisa Raitt (Halton, Ont.) and Agriculture Nolan, a professor in the department of That will allow for longer trains and when there have been challenges in the Minister Gerry Ritz (Battlefords-Lloyd- bioresource policy, business and economics fewer interruptions in going from point a sector, through various commissions. minster, Sask.) were “desperate to shore up at the University of Saskatchewan, and is to point b. “The railways are actually laying down track in anticipation of greater loads,” said Peter Wallis, president and CEO of the Van Horne Institute, which is affiliated with the University of Calgary and researches pub- lic policy in transportation, supply chain and logistics. Mr. Wallis said there will be a rising de- mand for goods going to Asia, and Canada is preparing for it with the Asia-Pacific Gateway and Corridor Initiative, which aims to be “the best transportation network facilitating global supply chains between the North American marketplace and the booming economies of Asia,” according to the government website. “We’re talking all sorts of products: minerals, coal, wheat, and it goes on, never mind oil and gas,” Mr. Wallis said of the future demand of Canadian goods to Asia, much of it to be taken to Vancouver by train. The federal government has invested over $1.4-billion in infrastructure projects for the Asia-Pacific Gateway, according to its website. “A lot of that money went into a new rail bridge across the river and grade separations,” said Prof. Prentice. “We are spending on that and there has been a lot of attention placed on Asia, so I don’t know if I would say that [capacity in the Van- couver area and throughout the West] is a problem for the railways.” thalesgroup.com

Thales Canada Smart Mobility: proven transportation solutions Everywhere it matters, we deliver

URBAN AND CITIZEN MOBILITY Better passenger services and experience through smart data providing mobility analytics, citizen safety and security

TRAFFIC MANAGEMENT AND FARE COLLECTION Integrated fare collection systems to deliver multi-operator interoperability and advanced road tolling solutions INTELLIGENT TRANSPORTATION SYSTEMS Integrated security, supervision and communication systems for seamless and cost-effective solutions

MULTI-MODAL TRANSPORTATION Augmented capacity and optimized GREEN CONTROL SYSTEMS traffi c fl ows with enhanced safety and Reduced energy consumption through optimized reliability of services speed profi les and regenerative braking, helping the environment and reducing customer costs

Thales is a technology leader off ering solutions that address Smart City needs on traffi c, urban tolling, bus and tram fl eet management systems. Thales provides integrated mobility platform or center solutions for Transports authorities, city operators and citizens. Thales’ data centers process and dispatch real-time traffi c information and multimodal itineraries, alerts, parking services, weather forecasts, and other services. Every day, Thales’ systems process 50 million transactions in more than 100 cities, enhancing transportation off er, citizen safety and security. Everywhere, together with our customers, we are making a diff erence. Jetonomics_Hilltimes_Ad_half_PG_vert copy.pdf 1 2015-03-31 5:03 PM 28 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION

ENERGY TRANSPORTATION Tanker vs. rail: what’s the safer method for shipping oil?

almost as much as oil has increased,” he The Fraser Institute said. published a study, “I have a lot of admiration for the Fraser Institute, [but] I think this particu- entitled ‘Energy lar study is a bit odd,” said James Nolan, a professor in the department of biore- Transportation and source policy, business and economics at the University of Saskatchewan. Tanker Safety in “In that, the individual who wrote it [Philip John] is very much a maritime Canada,’ and said proponent and they’re not an unbiased

C individual,” said Mr. Nolan. the point of the He admitted that maritime shipping M research is to try to has caught up to rail, and surpassed it in Y terms of stats. counter the push by “They’ve done a lot of work to make CM sure they have double-hulled ships, [but] I still think the size of the ship carrying MY the environmental oil [matters], and you’ve seen some of CY movement to ban those big tankers. If any of those hit, then it could be very, very catastrophic.” CMY tanker traffic on seas. “It’s awful when a rail car derails and

K spills oil, but if a ship goes, the potential is huge,” he said. BY DENIS CALNAN “The current generation of ocean tank- ers are extremely safe compared to the hile the Fraser Institute says tanker ones that were out there a few years back, Wshipping is the most “cost-effective, [but] you’re dealing with a mode, which efficient, and environmentally friend- travels on a medium—water—which is ly way to transport Canada’s energy incredibly volatile and can change in a resources,” others say that rail is still a moment’s notice,” said Mr. Nolan. better option when shipping on the same He said he suspects there are many continent. accidents at sea that are not reported, as The Fraser Institute published a study, well. entitled “Energy Transportation and Tank- “I really think that rail historically er Safety in Canada,” and said the point has been by far the safer mode,” said Mr. of the research is to try to counter the Nolan, of shipping oil up and down the push by the environmental movement to coasts of North America. ban tanker traffic on seas. Both men noted, though, that if Can- “We try and explain to Canadians, ada wants to ship oil to Asia, there is no not only the consequences that would other choice but by tanker. happen from policy choices, and Mr. Green said it is difficult to count- how it would affect their lives,” and er the environmentalists’ information, ensure that information is properly because of the imagery of catastrophic disseminated to the Canadian spills and the outrage it causes in the population,” said Kenneth Green, public. senior director at the Centre for “British Columbians put a very, very Natural Resources studies at the right- high price on the preservation of the leaning think tank. pristine nature of their coast. It’s one They gathered data from various of their greatest resources for tourism, international shipping organizations for fishing, for native continuity of and looked at the “tanker traffic, culture, and things like that,” said Mr. number of tankers, amount of goods Green. moved and the amount of oil moved, You can argue that you want zero the amount of accidents that happened,” risk, he said, but that would mean a halt said Mr. Green. to shipping oil to Asia, and that would “What you see when you look at that mean that the value of the product would data is very much the opposite of what diminish. groups like Greenpeace and the environ- He said the only way to counter envi- mental movement would have you be- ronmentalists’ imagery of wrecked coasts lieve. They would like you to believe that is with data. it’s a guarantee that if you ship more oil, “None of us would want to see another you get more accidents and more spills economic collapse,” said Mr. Green. and bigger spills,” he said. “Some part of the public is still open He said since the mid-1980s, oil to absorbing data and making rational movement over the ocean has virtually decisions,” he said. doubled and oil spills have decreased “by [email protected] En choisissant VIA Rail pour vos voyages d’affaires, vous aidez le gouvernement à réduire ses dépenses et permettez aux contribuables d’économiser. De plus, vous maximisez votre productivité. N’attendez plus, partez en train dès aujourd’hui !

Liaison Nombre Distance Temps productif Temps non Coût Coût du voyage Économies pour de départs en train productif du voyage en train (à partir le contribuable par jour en voiture* en voiture** de seulement) (voyage en train)***

Ottawa Toronto Jusqu’à 16 450 km 3 h 51 min 4 h 34 min 467 $ 44 $1 423 $

Ottawa Montréal Jusqu’à 14 198 km 1 h 49 min 2 h 27 min 227 $ 33 $1 194 $

Ottawa Québec 1 482 km 5 h 25 min 4 h 39 min 488 $ 55 $1 433 $

Toronto Montréal Jusqu’à 18 541 km 4 h 32 min 5 h 30 min 562 $ 44 $1 518 $

1 Les employés du gouvernement du Canada profitent d’un rabais de 10 % sur les meilleurs tarifs pour tous les trains et classes de VIA Rail Canada. Valable si vous voyagez par affaires ou pour le plaisir. Des conditions s’appliquent. Pour plus de renseignements, communiquez avec les services de TPSGC *** 30 minutes ont été ajoutées au temps total du voyage en voiture afin d’inclure les retards dus au trafic et au mauvais temps. *** Le coût du voyage en voiture est calculé selon la formule suivante : (Taux de 0,55 $/km établi par le Conseil du trésor pour l’Ontario pour une voiture conduite par un représentant du gouvernement X distance parcourue) = coût en $ du voyage en voiture + (taux horaire moyen d’un employé gouvernemental de 48 $/h selon un salaire de 100 000 $ par année, y compris les avantages sociaux X durée du voyage) = coût total en $ pour le contribuable. *** L’économie réalisée par le contribuable en voyageant en train est calculée selon la formule suivante : Coût du voyage en voiture – coût du voyage en train = économies pour le contribuable.

MC Marque de commerce propriété de VIA Rail Canada inc. 30 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

AIR TAXIS Government needs to support smaller airports as TSB investigates air taxis

BY DENIS CALNAN persist in air taxi operations across Cana- everything—it’s hard to say whether their “If you’re out in a row boat on some da” in May. intent is safety or they just want to get rid rough waves, well that can be pretty scary. s the Transportation Safety Board of One critic said the problem lies in gov- of them.” But if you’re in a big freighter you don’t ACanada investigates systemic prob- ernment neglect and that the demands on Prof. Prentice said there are many even know there are waves. And just lems with air taxi operations, one expert the small carriers can be unreasonable. factors that make fl ying small aircraft into having mass helps you. Wind and weather, says the problem lies more with the federal “Transport Canada seems to have been isolated communities more challenging, that might be pretty easy to take in a 737, government not properly supporting small- on the warpath,” said Barry Prentice, pro- including the lack of paved runways, lack [but] if you’re in a little Cessna, it might be er carriers and the airports they service. fessor at the I.H. Asper School of Business of a high degree of maintenance, the lack pretty wild,” he said. According to the government, the air in the department of supply chain manage- of proper instrumentation and the effect of Prof. Prentice said he is fi ne with the taxi (usually a small, unscheduled aircraft) ment at the University of Manitoba. He is weather on small aircrafts. safety board studying safety issues, but sector of the Canadian aviation industry also a member of the university’s Transport He notes that the pilots of small air- if the result is more demands on small has seen 229 deaths over the last 15 years. Institute. “Demanding more and more of crafts face bigger challenges in rough operators, that would not be acceptable. He The Transportation Safety Board will these guys [small companies that operate weather, and compares it to being in a boat said that some of the proposed demands launch an investigation into “the risks that air taxis] in terms of records of safety and on rough seas. being talked about now may squeeze some operators out of business. “There’s something called the Advance Warning Systems, it’s for weather, forward looking radar. And on big airplanes they have this. But it’s really expensive tech- nology and the government—Transport Canada—would like all these little aircraft to have it. But it may be worth more than the airplane,” he said. There’s a lot of resistance from the industry, he said. “The pressure to get this more advanced technology, you have to wonder, what is their end game?” If these small companies operating air taxis go under then “you’re not going to see WestJet and Air Canada fl ying into Baker Lake or all these [isolated] little places.” He said in isolated corners of the coun- try the small aircrafts are what connect them to the rest of the world and the feder- al government should do its part to support both the carriers and the airports. Prof. Prentice said the small aircraft carriers play a vital role in the air industry as well, and that is reason enough to make sure they are not priced out of the market. “We have to have this very important second tier or third tier air operators. They are the nursery, as it were, for all the big civilian jets that we rely on,” he said. Government neglect comes into play on the ground, in airports, he said. “There’s an automatic reporting system for the barometric pressure at the airports. The pilots use that to set their altimeters [a sort of GPS]. Well, all the big airports would be announcing that all the time. 95% OF CANADIANS BELIEVE Some of these small airports wouldn’t have that.” PUBLIC TRANSIT IS IMPORTANT “Just the support that you’re getting to 95% OF CANADIANS BELIEVE fl y into these [often isolated] places is not FOR THEIR COMMUNITY as great because there are few people liv- PUBLIC TRANSIT IS IMPORTANT ing there and who’s going to pay for it? You notice that the government kind of washed FOR THEIR COMMUNITY its hands of looking after the airports,” he said. Prof. Prentice said that additional chal- CAN THEY lenges come with less support from small airports, because the federal government CAN THEY isn’t properly equipping them. “They were supposed to take mon- COUNT ON ey that they got from the rent from the airports and use that to fi x and maintain COUNT ON all the little airports. But if you look at the public accounts, they’re not spending YOUR VOTE? nearly the amount of money they’re getting out of these airport rents for Toronto, Win- YOUR VOTE? nipeg, other places, to maintain these other smaller airports,” said Prof. Prentice. He said it is time for the government to CUTAACTU.CA reexamine its policies around ensuring the LET’S MOVE. CUTAACTU.CA small airports are properly equipped, “be- LET’S MOVE. cause those little airports are the lifeblood of those communities.” [email protected] The Hill Times THE HILL TIMES, MONDAY, APRIL 6, 2015 31 TRANSPORTATION POLICY BRIEFING

Q&A LISA RAITT

though, was the ability to be able to do that without having to go through that whole process. Raitt says her top priorities are “So ministers can set what they think should be the carrying of grain for a certain year. Farmers and other shippers have made safety and future of transportation representations that they think that the government should go farther, Safety comes from and that they’re carrying enough into regulation. So again it’ll be The aviation industry is calling and direct the rail to move certain insurance, which is a lesson learned coming at some point in time in the on Transport Canada to respond cars in certain directions. That kind the department and from Lac Mégantic too, so that’s near future. Best way to say it.” to the rising rates of laser strikes of discussion is happening with the where the government comes in. over Canadian airspace. It’s my CTA review and that’s really where the government, Some of the small short lines that Are annual medical checks for pilots understanding so far Transport they have a better vantage point to says Transport carry dangerous goods are going to enough? Following the crash of the Canada has indicated you’re open see the bigger picture of transpor- fi nd this diffi cult, in terms of their Germanwings fl ight in the French to a public awareness campaign, tation in Canada and determine if Minister Lisa Raitt. sustainability, but we recognize and Alps, you said Transport Canada is this a concrete commitment? something like that will work. understand that and have decided offi cials are looking into other gaps And why not their other two “So, they’ve been asked to look at Continued from page 20 that we will phase in the insurance here in Canada, like what? asks, for the regulation of laser inter-switching, they’ve been asked requirements. But that being said, “I think what’s really import- pointers and to make it a criminal to look at the movement of grain, the are you’re referring to? they still have to have them because ant to note is that we took care of offence? With the increase in the future of increased commodities, all “I am going to talk to my offi - it’s important to be safe. And we’re the issues with respect to closing events reported, is this an indica- those kinds of things, to put into the cials today, so I guess we’ll watch also saying that, above the insur- loopholes and helping pilots’ tion that more needs to be done? bigger picture of, ‘What do we need for it. But you can look at the watch ance level, a shipper fund is avail- health issues a number of years “I know that there was a laser to do to make sure we’re ready?’ list and it’s pretty much everything able for cleanup costs and victims’ ago. We amended the Aeronau- issue that happened at an airport Because we’re signing free-trade on the watch list is what I’m going costs and that makes sense too.” tics Act to say that, fi rst of all, a very recently in Canada and the agreements, we want increases in to be asking for the department; pilot has to tell their physician police tweeted out that they’re both imports and exports, as a result, of where the progress is, what has Given the increasing rates of when they’re a pilot and that looking for the individual who did and we have to make sure that the happened and what to we need oil-by-rail transportation, and the they have a certifi cate for fl ight it, and they took it very seriously rail is ready to deal with it and it’s to do to fi nish off and satisfy the increasing frequency in which operations. The doctor has a and I re-tweeted it out, I don’t not a case of an individual company Transportation Safety Board.” derailments have been happen- positive obligation to report to know if that’s the public aware- like CN or CP being in the driver’s ing, is the timeline of retrofi tting Transport Canada any signs in ness campaign they’re looking seat in terms of picking which ship- Why is the rate of oil being trans- the current DOT-111’s by 2017, the individual that may impact for. That being said, I am more per is going to get to market that day ported by rail cars continuing to and the eventual shifting to the their ability to fl y safely and that than happy to speak to this issue and which shipper is not going to get increase? And what is Transport TC-117 tank car by 2025, a fast includes optometrists as well, if I’m asked in the House of Com- to market that day. Canada doing to help Canadian enough pace to ensure safety on too, so optometrists are includ- mons, if aviation wants me to do “So, it’s in that context, with that rail companies meet this demand the tracks in the meantime? ed in that section of the act. So awareness around it, that’s fi ne as lens, that David Emerson’s looking and address safety? “So the derailments that hap- those are good things. well too. I’m happy to do that and at the big picture. And don’t forget “So, as you know, in 2009, zero pened in northern Ontario, we re- “With the awareness of mental we’ll set something up. though, you’ve got ports involved rail cars of oil moved in Canada ally put the focus on CN and their health issues in Canada and on “We did that with drones. I here, you’ve got the other commodi- and now I think it’s about 170,000. operation because Transportation society, in general, physicians are launched a public awareness ties involved here, rail is involved, [In 2013, there were around 128,000 Safety Board preliminary fi ndings really well-placed to fi nd signs campaign about drones last fall and trucking, to an extent, is involved. carloads of crude oil shipped by is that rail infrastructure failure, of stress, or see signs of mental I think that’s been benefi cial, but So it’s a big-picture look at it and rail in Canada.] But, shippers and that’s for Transport Canada health issues in their patients, the Aeronautics Act says $100,000 that’s why we’ve actually acceler- choose the mode of transportation to ensure that CN is doing what it they do it all the time. And you’re maximum fi ne and up to fi ve years ated the CTA review by 18 months they want to use. Shippers want should be doing in terms of oper- specifi cally acutely aware of it in prison, or both. So there are pen- to deal with it now. Because we hit to use pipelines but with capacity ating and will continue to do that. when you’re dealing with a pilot, alties and I think it is important to this wall, a wall of grain essentially, issues and distance issues, they “The second piece is, I think, because you know that there is a let people know if they think they’re this huge amount available and it then move to utilizing rail and that the level of rail moving in oil legal obligation on you to report it joking around out there with a laser not moving. And it made everyone tank cars. After Lac-Mégantic, the has actually maybe plateaued at to Transport Canada, because the pointer, they can really cause some realize, ‘Hmm, we should look at the realization was the tank car was this point in time, given what has pilot has a very important job in damage to a pilot and, as a result, put supply chain in general since we’re not appropriate and we’ve put a lot happened economically in the oil terms of the safety of Canadians. in peril the passengers on that plane. signing free trade deals.’ of energy into moving off the ones fi eld, in general. So we’re seeing “So I’m very content with the “And if anyone witnesses “I was really happy to get this that really weren’t appropriate for a bit of a plateau, but that doesn’t system we have in place. The other someone aiming a laser pointer at going early. The timing is perfect, the moving of crude oil, and we’ve mean that’s not going to happen, thing, I talked to the chief medical a plane, individuals should report just perfect so I’m good with that.” banned those 5,000, but, secondly, that it’s not going to increase offi cer of Transport Canada, who it to the local police. So, it’s not a develop what the standard should again, it’s a market issue. knew we had one, isn’t that sur- diffi culty for police to lay charges Is there anything else you’d like be for new cars being built today “[We’ve] got to work with the prising? Anyway, I talked to him, with respect to this. They can fi nd to mention? and new cars that will be built in United States on this because these Dr. David Salisbury [director of their way through. In terms of “You didn’t ask about marine, a couple of years and that’s what cars go in and out of the United civil aviation medicine at Trans- amending the Criminal Code, it’s so I’m going to tell you, we can’t we’re working on with the United States a couple of times as they port Canada] and he said the other something that we’ll take under forget about marine because States, the kind of rail car. make it to their fi nal destination thing we should know is that we advisement, that’s more appropri- Canada’s trade, international trade “So that’s the Transport just by nature of how goods move have a fi nite population of pilots in ate for the minister of Justice to doesn’t happen without ports. It’s Canada involvement. The other in the country. So we want to make the country and we have doctors talk about those kinds of things. as simple as that. We’re a bulk-trad- involvement is operating rules and sure that cars don’t have to be who are specialists, if you will, in But we’ve got some good penal- ing nation but we’re surrounded by regulations. One of the things out stopped at the border, interchange, terms of dealing with pilots. So ties in there and we should dis- water on all sides, except for what of Lac Mégantic again was that for that kind of thing. It doesn’t make they understand them. And they courage it for society as a whole. goes into the United States. We the transportation for dangerous any sense from a logistics point of know them and they know the “I didn’t know they wanted me have excellent ports they are state goods that you have to have two view. And the relationship is very kinds of personalities they are and to do a public awareness cam- of the art. They are professionally operators, you can’t have a single solid between us and the U.S., in they can look for these matters, paign, but I’d be happy to do so. managed and they are ready to operator that you have to lock the terms of the TC-117; they have to and if anyone is in trouble, there That’s a no-brainer to talk about take the cargo that wants to move train at night, simple things you go through their process. I fully are pathways to get treatment the dangers associated with it.” to other countries, and I think their would think. But, offi cials hadn’t respect their process, we have and help. We’re open on that side future is extremely bright. made them mandatory before and to go through ours, while we are to make sure that you can get the As the review of the Canada “I just met with the port CEOs our government made them man- aggressive in our timeline, last year treatment and get back to fl ying. Transportation Act continues, this morning [Tuesday]. They’re datory right now. we said three years, to go to CPC- “I think the gentleman in Ger- because you won’t be extending having a big roundtable, they “Going forward, our goal is to 1232’s we want to maintain that manwings was concerned about the minimum shipment volume rarely get together like this and ensure that there is safe transit risk-based stance on an aggressive whether or not he would lose his requirements for grain, does they’re all in one room at the of whatever dangerous good is analysis, meaning that you can’t licence and he hid so much about that mean the government has Château Laurier and they’re moving on the rails. Operation- overnight snap your fi ngers and his life including his doctor’s visits. ruled out reforming legislation to having discussions about what ally, the rail carriers have to move say everyone has to use the TC-117. That would not happen in Canada. include thresholds? the future looks like and I think it and they have to comply with That actually is not practically pos- “And some people would argue “We did two things with the Fair they’re an integral part of our their rules and regulations and sible. But, you can say this is how with me and say well, how do Rail for Grain Farmers Act. One was supply chain and in fact they are they have to do things safely. you phase out the cars to the new the physicians know about these we set those thresholds and what the terminus and they are the We want communities to have standard, and this is how long it’s things? Well, that’s their job and we discovered was, under the CTA beginning because nothing comes the right information so if there going to take. That question of how they’re dedicated professionals, and (Canada Transportation Act), the into the country and nothing is an accident they can respond long it’s going to take is still being they take an oath as well too and I minister always has the power to goes out of the country unless its quickly, and that was part of the discussed with the United States. know that the front line of medical intervene in the supply chain if it’s in through a port, so they have to act [debated] yesterday [Monday]. We want to match up as long as we professionals are excellent and they the public interest. And that was the operate effi ciently as well too, so “And then, the last piece is what can, but I am coming to the fi nal will ensure that people are fl ying tool we used last year, and we had they’re a big piece.” we did in the act too is the liabili- pieces, because time is running out safe through their reporting obliga- to set up a special order in council to [email protected] ty, to make sure the polluter pays in terms of being able to get things tions. So I’m content with it.” do it. What we entrenched in the act The Hill Times 32 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

RAIL SAFETY Opposition parties support feds’ rail safety bill to boost ministerial oversight, shipper liabilty

As the government’s railway safety bill heads into commit- tee, Transport minis- ter is optimistic it’ll pass by June.

BY RACHEL AIELLO

oth the NDP and Liberals Bhave indicated they’ll support Bill C-52, the Safe and Account- able Rail Act, considered to be the Conservatives’ legislative response to the Lac-Mégantic derailment that killed 47 people in the small Quebec town in July 2013, as the legislation heads into committee for study. After two days of second reading debate in the House last week, the House Transport, Infrastructure and Communities Committee will begin studying the legislation when MPs return from the two-week April break. The bill moved to committee without a recorded vote, because all parties were in agreement. During the debate, NDP MP Hoang Mai (Brossard-La Prairie, Que.), his party’s transport critic, signalled the official Opposition will be supporting the bill’s swift passage through the House, Transport Minister Lisa Raitt, NDP MP Hoang Mai, Liberal MP David McGuinty, and Green Party Leader Elizabeth May. Both the NDP and Liberals have something for which the bill’s indicated they’ll support Bill C-52, the Safe and Accountable Rail Act, considered to be the Conservatives’ legislative response to the Lac-Mégantic derailment sponsor, Transport Minister Lisa that killed 47 people in the small Quebec town in July 2013, as the legislation heads into committee for study. The Hill Times photographs by Jake Wright Raitt (Halton, Ont.), says she is “grateful.” Bill C-52 amends the Canada safety management system. As Deciding to get onside with criticizing what we’ve done so far, merits or downfalls of the bill. Transportation Act and the Rail- well, it will implement increased the government in pushing this so that’s a good piece,” she said. During the two days of debate way Safety Act, and its passing information-sharing requirements bill forward is significant consid- As the House Transport Com- in the House on March 30 and would fulfill the Conservatives’ for railway companies to share ering Quebec is a key political mittee gears up to begin hearing March 31, urban affairs critic Throne Speech promise to increase information with municipalities base for the NDP, but Mr. Mai from witnesses on the bill, Mr. Adam Vaughan (Trinity-Spadina, liability insurance and enshrine in about what goods will be passing said they still have questions for Mai, a co-chair, said it will work Ont.) and deputy Liberal House law the “polluter pays” regime. through their communities. the government about some por- to balance hearing what the ex- leader Kevin Lamoureux (Winni- The changes the bill proposes “I was very happy yesterday tions of the bill that they would perts have to say with getting the peg North, M.B.) instead focused include requiring liable railways [Monday] that the NDP stood up like to see clarified or amended. bill through committee and con- on raising questions over the gov- to carry enough insurance rela- and said they were going to sup- For instance, the NDP would like tinuing its path to passage before ernment’s infrastructure spending tive to the volume of dangerous port. That made it a lot easier for to see the fund all railways ship- the House rises in June. on rail leveling, and arguing that goods they carry, and to guaran- the progress of it. There’s going ping dangerous goods pitch into At this point, he said no firm the increased oil-by-rail traffic tee adequate compensation for to be a good debate around it but become unlimited. Currently, the time has been carved out to study could be negated by approving the affected communities when I do see it passing. This is some- cap is set at $250-million, but Mr. Bill C-52, nor have they decided pipelines. their company is found at fault thing that we’ve been working on Mai pointed out that the total cost on the official witness list, but “The amount of oil, gas and for a derailment, spill or other rail since the Lac-Mégantic tragedy,” for the Lac-Mégantic disaster was the NDP has been speaking with other cargo that is transported accidents. Ms. Raitt told The Hill Times last $400-million. experts about next steps. Mr. Mai all over Canada concerns a great The range of insurance week. “I am optimistic that it’ll go “They are saying it is a step said those are likely to include number of Canadians. An alter- minimum coverage varies from through and I am grateful for the forward but again there is lots seeking clarification from the native to that is pipelines. … Does $25-million to $1-billion de- support of the opposition.” more that we can do,” he said. government on certain parts of the member recognize that if we pending on the quantity; this Mr. Mai said the NDP is Mr. Mai also said Bill C-52 re- the bill and possible amendments could get that social contract to full amount will be required two supporting the bill because it is a sponds to the concerns voiced by to do with the additional regulato- build pipelines, we could ease years after the bill passes. In the “step in the right direction.” numerous Quebec mayors around ry powers, as well as the number the pressure from our rail lines, first year, as a transition, rail com- The region’s constituents and reimbursing municipalities for of inspectors assigned by Trans- and all Canadians would benefit panies will be required to carry industry representatives that he the first responder expenses they port Canada to enforce the new by that? Could the member at half the amount of insurance. has spoken to support the bill’s incurred in dealing with a disas- rules. the very least acknowledge that It also introduces a com- new measures, he said in an ter of this kind. Liberal transportation critic there is some value to transport pensation fund based on a interview, including the minimum Ms. Raitt said the transpor- and fellow committee co-chair some of this product through $1.65-per-barrel oil levy for insurance requirements and the tation safety file isn’t one that is David McGuinty (Ottawa South, pipelines?” asked Mr. Lamou- shippers, with the intention of creation of a levy to build funds treated politically. Ont.) was unavailable for com- reux during an exchange with building a supplementary fund for the victims of any potential “This isn’t an ideology. Every- ment as he was in Vietnam NDP MP Charlie Angus (Tim- to pay for any damages incurred future accidents. As well, neigh- one is on the same side as safety alongside other MPs for Inter-Par- mins-James Bay, Ont.). that exceed what a railway’s bouring NDP MP Pierre-Luc Dus- and these are measures that have liamentary Union meetings in Green Party Leader Elizabeth insurance covers. seault (Sherbrooke, Que.) rose been asked for by communities Hanoi, but his office said they are May (Saanich-Gulf Islands, B.C.) Under the Railway Safety Act, in the House during debate on and measures that have been supporting the bill going forward, said she “commended the steps the Transportation minister and March 31 and said that he’s heard asked for by railways as well, so and would be considering amend- that have been taken” during the Transport Canada inspectors will from people in the area that they this makes a lot of sense. There ments once they’ve heard from House debate, but isn’t convinced get broader oversight powers to want the companies responsible may be criticisms about us not the experts. that enough has been done yet. order changes or stop any activ- for the incidents to be responsible going too far, which is what I’m In the House, Liberal MPs [email protected] ities deemed unsafe under the for the costs associated. hearing from the NDP, but it’s not made no clear comment on the The Hill Times THE HILL TIMES, MONDAY, APRIL 6, 2015 33 TRANSPORTATION POLICY BRIEFING

TRANSPORT COMMITTEE

transportation of dangerous goods. I would like to note that this was a topic of concern when House Transport Committee’s report the committee was conducting its review of the transportation safety regime. In the fi nal report, the committee recommended that will help strengthen transportation Transport Canada implement a comprehensive reform of the liability and compensation regime for rail to ensure that victims and safety in Canada, says Miller their families obtain the com- pensation they deserve, that the Another piece of munities has been working hard in the House of Commons in June members of the committee, all polluter-pays principle is upheld, to complete a comprehensive of 2014. The committee then com- other Members of Parliament, and and that taxpayers are not forced legislation that will study of transportation safety in pleted similar reviews in relation witnesses who took part in this to pay for compensation, remedi- be coming before the Canada. I would like to take this to the air, road and marine modes review. It was certainly a very pro- ation and reconstruction costs in opportunity to recognize the im- of transportation. ductive study and I am sure this the event of a rail disaster. There- committee this ses- portant work that the committee During the study, the committee report will enhance transportation fore, as chair of the committee, I sion is Bill C-52, the has conducted in carrying out this met with more than 50 different safety in Canada across all modes am pleased to see that the minister study as well as highlight some of witnesses over the course of 40 of transportation. has introduced this important Safe and Account- the work the committee is looking meetings including, industry rep- Most recently, the commit- legislation and I look forward to forward to for the remainder of resentatives, shippers, regulators, tee has conducted a study of reviewing Bill C-52 with stake- able Rail Act that the the current session of Parliament. union representatives, academics, Bill C-627 which is a private holders when it is brought before minister of Trans- Following the tragic accident representatives of municipal gov- member’s bill that has been put the committee. in Lac Mégantic in July of 2013, ernments, and more. I would like to forward by Conservative MP I would like to thank you for portation recently the minister of Transportation thank all of the witnesses who took Joyce Bateman, MP for Winnipeg the opportunity to provide you brought before the appeared before the committee the time to appear before the com- South Centre, Man. I am pleased with an update on some of the and requested that the committee mittee and to offer their important that the committee has worked recent and future business of the House of Commons. undertake an in-depth review of insights on these issues. There was effi ciently to review this import- Standing Committee on Transpor- the Canadian transportation safe- certainly a good balance of opinion ant piece of legislation. tation, Infrastructure and Com- ty regime with a specifi c focus on these issues and these opinions Another piece of legislation munities. I am very pleased with on the transportation of danger- are refl ected in the fi nal report. that will be coming before the the recent work that the commit- ous goods and the role of safety Overall, the committee committee this session is Bill C-52 tee has conducted in relation to management systems across all completed a fi nal report with the Safe and Accountable Rail Act transportation safety and I look modes of transportation. 10 recommendations that will that the minister of Transportation forward to working on future CONSERVATIVE MP The committee began the strengthen transportation safety in recently brought before the House measures to improve the Canadi- study with a review of transpor- Canada. I was pleased to be able of Commons. This legislation will LARRY MILLER an transportation safety regime. tation of dangerous goods and to table the fi nal report titled, “Re- establish minimum insurance Conservative MP Larry Miller, safety management systems in view of the Canadian Transporta- levels for railway companies as who represents Bruce-Grey-Owen the rail sector and was able to tion Safety Regime: Transportation well as a supplementary, ship- Sound, Ont., is chair of the House ver the past year, the Stand- complete an interim report titled of Dangerous Goods and Safety per-fi nanced compensation fund Committee on Transportation, Oing Committee on Transporta- Interim Report on Rail Safety Management Systems” in March to cover damages resulting from Infrastructure and Communities. tion, Infrastructure, and Com- Review that I was pleased to table of 2015. I would like to thank all railway accidents involving the [email protected]

RAILWAY SAFETY

of transportation by doing every- thing it can to identify the risks that remain and minimize them by Railway safety: a disconcerting upholding the highest standards. This means the government must immediately implement nec- essary changes, which include a lack of regulatory oversight comprehensive review of existing legislation; it must strengthen have relegated the necessary which saw multiple carloads of to Transport Canada so that it has regulations, increase inspections Successive Liberal audits, spot-checks and rigorous crude oil explode and spill out the needed number of inspectors of companies and improve audits and Conservative enforcements needed to uphold into the Mattagami River have and auditors to fulfi ll its oversight of safety-management systems. basic safety standards to the back shown—a fact the TSB has con- function. Unfortunately, the Con- The NDP has asked the govern- governments have seat, choosing instead to imple- fi rmed—that even the CPC-1232 servatives’ answer has been to ment to establish an independent relegated the nec- ment a system of self-inspection standard is not safe. Last month, the follow up with more budget cuts. public inquiry into the transpor- and self-regulation. minister announced new standards Indeed, the Rail Safety Direc- tation of dangerous goods by rail, essary audits, spot- It took the death of 47 people (TC-117) for tank cars and gave torate, the agency responsible to address unanswered questions checks and rigorous and the devastation of the town of railway companies until 2025 to for developing and implementing and to better understand the Lac-Mégantic on July 6, 2013 for upgrade their fl eet. That is almost safety policies, regulations and failures leading to the disaster enforcements need- Canadians to realize just how truly 30 years after the TSB fi rst warned services, as well as administering of Lac-Mégantic. We must do broken our system of oversight the government that the DOT-111 Canada’s railway legislation, saw everything in our power to ensure ed to uphold basic really is. In its 2014 report into cars were unsafe and prone to its budget shrink by almost 19 per that such a tragedy never happens safety standards to the deadly train derailment, the punctures. cent from 2010 to 2015. again Transportation Safety Board (TSB) And it’s not just a question of The NDP has called for more Canadians expect its govern- the back seat. slammed the government for tank cars—Canadians are worried inspections, along with random ment to pursue justice, not just for neglecting to enforce its own safety about the state of our railway and periodic checks, but the Con- the victims of the Lac-Mégantic di- requirements and for failing to infrastructure. According to a servatives’ response so far has been saster, but for the Canadian public ensure safety breaches were fi xed. preliminary report by the TSB, rail farcical. In 2013, the year of the as a whole. This can only be done Measures taken by the govern- infrastructure failures may have Lac-Mégantic disaster, there were through its dedication to transpar- ment after the tragedy raised even been involved in all three recent 116 railway inspectors. For 2015, ency and accountability of its own NDP MP HOANG MAI more questions. Last year, Trans- train accidents in Northern Ontar- that number has only risen to 117. actions, and by bringing the full port Minister Lisa Raitt told com- io. The weight of heavily-loaded That’s one additional inspector. extent of the law upon those who panies that they had three years to crude oil tank cars seem to be The reality is that this system of violate safety regulations and who phase out the older Class 111 tank causing increased pressure on the self-regulation and self-inspection put Canadians at risk. ttawa’s handling of railway cars (also known as DOT-111) at tracks, thereby making them more with minimal governmental over- It’s time the federal govern- Osafety over the years can be the center of the Lac-Mégantic susceptible to failure. sight clearly does not work. It is the ment stops taking a reactionary qualifi ed as simply “disconcert- disaster and to replace them with At a time when the number government’s duty to make sure position to rail safety and steps ing.” The fi rst job of any govern- new DOT-111 cars compliant with of carloads carrying crude oil that security measures are respect- up to ensure Canadians’ safety. ment is to ensure the safety of its the CPC-1232 standard. is skyrocketing, the NDP has ed by the rail industry. And it’s the NDP MP Hoang Mai, who rep- citizens, but successive Liberal However, recent derailments in been asking the government to government’s duty to encourage a resents Brossard-La Prairie, Que., and Conservative governments Northern Ontario and in Gogama, provide the necessary resources culture of safety across all modes is his party’s transport critic. 34 THE HILL TIMES, MONDAY, APRIL 6, 2015 TRANSPORTATION POLICY BRIEFING

RAIL SAFETY

out of the old, unsafe tank cars are unrealistic and they know it. Make rail safety a priority: McGuinty In fact, almost exactly one year ago, on March 27, 2014, represen- tatives from a major Canadian Canadians continue pensation fund to cover damages manufacturer of tank cars came resulting from railway accidents before the Standing Committee to be deeply involving the transportation of on Transport, Infrastructure and certain dangerous goods. Communities and testified that concerned about rail Although this bill does not these timelines are unachievable. safety, and rightly so. go nearly far enough to protect Canadians need to understand Canadians, it does contain some that governments make choices. It measures that the Liberal caucus is important for governments to get has been calling for. the big things right; transportation The facts are very clear. Trans- safety is one of those big things. port Canada’s rail safety division It’s time for the Conservatives is understaffed, underfunded and to make rail safety a priority in LIBERAL MP DAVID MCGUINTY undertrained. It has been a victim Canada. As I have said in com- of the revolving door of Conser- The facts are very clear, writes Liberal MP David McGuinty. Transport Canada’s mittee many times, to find a vative ministers: five ministers in rail safety division is understaffed, underfunded, and undertrained. It has been a government’s true priorities you here is no greater responsi- nine years. At a time when Trans- victim of the revolving door of Conservative ministers: five ministers in nine years. have to follow the money. The Tbility of a government than to port Canada has a lot of catching At a time when Transport Canada has a lot of catching up to do, its budget was numbers are discouraging. The keep its citizens safe. Canadians up to do, its budget was slashed slashed by $202-million (11 per cent) in the main estimates including today’s Conservative government spent continue to be deeply concerned by $202-million (11 per cent) in Transport Minister Lisa Raitt, and former ministers Lawrence Cannon, Chuck $42-million last year on Economic about rail safety, and rightly so. the main estimates. Strahl, John Baird, and Denis Lebel. The Hill Times photographs by Jake Wright Action Plan advertising, but only Even after the terrible Lac Mégan- These cuts follow a scathing $34-million on rail safety. tic tragedy, which claimed the auditor general report, which The report also revealed that much worse. However, the envi- The Liberal caucus will con- lives of 47 Canadians, the govern- noted, among other things, that the government does not have ronmental damage is still being tinue to pressure the government ment has failed to take adequate the government only performed enough inspectors and system au- surveyed and may be extensive. to make rail safety a priority. steps to improve rail safety. The 26 per cent of the planned audits ditors to carry out critical safety This accident was not an isolated Canada was unified by rail and introduction of Bill C-52, up for that Transport Canada said was functions. When I asked Transport incident; in the last two months many of us continue to live near debate in the House of Commons needed to keep rail safe in Cana- Minister Lisa Raitt in committee there have been three serious the same rail lines that built this this week, is part of an ongoing da. At this pace, it will take many in March 2015, the minister re- derailments in Ontario alone. country. It is the government’s piecemeal approach to rail safety years before the department au- ported only hiring one additional The Transportation Safety responsibility to ensure the safety by the Conservatives. dits all key components of safety inspector, bringing the total to Board said in February that the of Canadians who live near rail- Bill C-52 amends the Canada management systems. 117 from 116. Conservatives’ new rail standards way tracks and those who operate Transportation Act to strengthen VIA Rail, for example, which Canadians are afraid. In do not go far enough and these the railways. the liability and compensation carries 4.5 million passengers a March 2015, a train carrying dan- recent accidents support this Liberal MP David McGuinty, who regime for federally regulated year, had not been audited at all gerous goods was on fire for an claim. The TSB has also been represents Ottawa South, Ont., is railway companies by establish- in the three year period covered entire weekend here in Ontario. clear about the immediate need to his party’s critic for Transport, Infra- ing minimum insurance levels for by the Auditor General’s report, Thankfully, this accident occurred remove the oldest, least-safe tank structure and Communities. railway companies and a supple- and likely not since then. Canadi- outside a populated area or the cars from service. The govern- [email protected] mentary, shipper-financed com- ans find this unacceptable. outcome could have been much, ment’s timelines for the phase- The Hill Times

TRANSPORTING CRUDE OIL

bilities and outcomes to be set. So why have we heard only Getting the big picture right: about rules and nothing about guid- ing principles for regulation? After all, at one level, the goal of regula- tion can be stated quite simply—to regulating rail transportation of crude ensure a safe and efficient railway system in Canada. But here is the catch—no system of regulation can eliminate all risk. This stated goal oil after the Lac-Mégantic disaster therefore implies a social and polit- ical compromise that few want to make explicit. Any regulation must hind them, the regulatory responses recommendations are clearly a blue- is talking about the importance of strike a balance between compet- So why have we seem to continue a worrying trend of print for addressing these multiple track maintenance. There is also ing values: safety—especially the heard only about reactive regulation that lacks a uni- contributing causes in a coherent an acknowledgement that perhaps protection of workers and commu- fying focus. This matters because the and comprehensive way. Unfortu- the dangerously volatile qualities nities located close to railways—and rules and nothing plethora of amendments and new nately, even a cursory assessment thought to be limited to Bakken economic development of industries about guiding rules will not produce the changes of the regulatory follow up to the crude apply also to crude from the and regions that depend on the we need to address the real problem TBS report is at best mixed. Some of oil sands. One could add that these availability of transport by rail. This principles for at the heart of Lac-Mégantic—that the specific recommendations, like derailments did not involve an insuf- is a trade-off that we do not like regulation? transportation of crude oil by rail is the requirement to use reinforced ficiently insured railway that was in to contemplate—one that opposes a process that requires systemic co- tanker cars to transport volatile financial trouble (and for this reason lives and livelihoods. And yet, if we ordination in order to be done safely. crude oil, were acted upon fairly cut corners it should not have). want to live up to the promise of In my view, appropriately addressing quickly, though with long implemen- This focus on incremental rules, addressing the not only the causes what happened in Lac-Méganic (and tation periods. Others, like physical without more, is an ineffective way of Lac-Mégantic, but those of the in subsequent, thankfully non-fatal defenses to prevent runaway trains, to regulate an industry like rail trans- next—as yet unknown—potential di- derailments earlier this month) have yet to be addressed other than port. Not only does it miss the big saster, we must have a frank discus- requires a mindset anchored in the to say that the regulator is studying systemic picture, it is also typically JENNIFER QUAID sion about how far we are prepared recognition that railways are com- how best to proceed. a retrospective exercise, designed to to go to further that end, knowing plex systems directed at the ultimate While one may argue that the solve the problems of the past. Of that we can neither foresee every purpose of providing an efficient and piecemeal approach is practical, course individual rules are ultimate- risk of disaster, not even prevent all his July will mark the second cost-effective service. given political constraints, it is prob- ly needed to codify norms and set of those of which we are aware. Only Tanniversary since the terrible de- There is nothing particularly lematic in that it creates an illusion standards. But they need to be part with these outer boundaries set can railment and explosion in the town surprising in this observation. The of progress by generating talk about of an architecture that holds them we begin to talk about what concrete centre of Lac-Méganic, Qué. At the Transportation Safety Board’s the numerous (rather small in scale) together in a coherent way that is measures are needed to achieve time, promises were made to inves- voluminous report which contains a rule changes, when the larger issues also sufficiently flexible to provide these goals. tigate and understand the causes of detailed analysis of the 18 principal of coordination remain unsolved. for new circumstances. This kind Jennifer Quaid is an assistant the event and since then, a number causes of the disaster explicitly The recent derailments in Northern of durable architecture has to be professor in the Civil Law Section of laudable and long overdue regu- recognizes the interconnectedness of Ontario are an example: the new grounded on a solid foundation in of the Faculty of Law at the latory changes have been adopted the different parts of a railway sys- reinforced tanker cars on the train the form of an overarching vision of University of Ottawa where she in the sincere hope of preventing tem, as well as how these are linked were insufficient, on their own, to the ultimate goals of the regulation. teaches criminal law, corporate similar catastrophic events. Without to other constituencies, including prevent rupture and explosions of It is this overall purpose that enables law and competition law. questioning the good intentions be- governments. The TSB’s many the volatile contents. Now everyone system-wide expectations, responsi- The Hill Times