ARCHIVED - Transport Canada - Report

This page has been archived.

2012-13
Report on Plans and Priorities

Transport Canada

The original version was signed by
The Honourable Denis Lebel, P.C., M.P.
Minister of Transport, Infrastructure and Communities

---

Table of Contents

Minister’s Message

Section I - Departmental Overview

• 1.1 Summary Information
  • 1.1.1 Raison d’être and Responsibilities
  • 1.1.2 Strategic Outcomes and Program Activity Architecture
• 1.2 Planning Summary
  • 1.2.1 Financial Resources
  • 1.2.2 Human Resources
  • 1.2.3 Allocation of Funding by Strategic Outcome and Internal Services
• 1.3 Risk Analysis
  • 1.3.1 Operating Environment
  • 1.3.2 Risk Management Approach
  • 1.3.3 Key Risks Areas and Risk Responses
• 1.4 Delivering on Key Government and Organizational Priorities
  
  
• 1.5 Transport Canada's Contribution to the Federal Sustainable Development Strategy
  
  
• 1.6 Expenditure Profile
  • 1.6.1 Departmental Spending Trend
  • 1.6.2 Voted and Statutory Items

Section II - Analysis of Program Activities by Strategic Outcome

• 2.1 Strategic Outcome: An Efficient Transportation System
  • 2.1.1 Program Activity: Transportation Marketplace Frameworks
  • 2.1.2 Program Activity: Gateways and Corridors
  • 2.1.3 Program Activity: Transportation Infrastructure
  • 2.1.4 Program Activity: Transportation Innovation
• 2.2 Strategic Outcome: A Clean Transportation System
  • 2.2.1 Program Activity: Clean Air from Transportation
  • 2.2.2 Program Activity: Clean Water from Transportation
  • 2.2.3 Program Activity: Environmental Stewardship of Transportation
• 2.3 Strategic Outcome: A Safe Transportation System
  • 2.3.1 Program Activity: Aviation Safety
  • 2.3.2 Program Activity: Marine Safety
  • 2.3.3 Program Activity: Rail Safety
  • 2.3.4 Program Activity: Road Safety
  • 2.3.5 Program Activity: Transportation of Dangerous Goods
• 2.4 Strategic Outcome: A Secure Transportation System
  • 2.4.1 Program Activity: Aviation Security
  • 2.4.2 Program Activity: Marine Security
  • 2.4.3 Program Activity: Surface and Intermodal Security
• 2.5 Program Activity: Internal Services

Section III - Supplementary Information

• 3.1 Financial Highlights
  • 3.1.1 Future-Oriented Condensed Statement of Operations
  • 3.1.2 Future-Oriented Condensed Statement of Financial Position
• 3.2 Supplementary Information Tables

Section IV - Other Items of Interest

• 4.1 Organizational Contact Information
  
  
• 4.2 Relevant Websites

Minister’s Message

As Minister of Transport, Infrastructure and Communities, I am pleased to present to Parliament Transport Canada’s Report on Plans and Priorities for 2012-2013.

Over its 75-year history, Transport Canada has played a key role in addressing the evolving needs of transportation in Canada. We at Transport Canada are proud of the solid foundation that has been laid, and we are confident that the department will be able to ensure a transportation system that is accessible, safe, secure, efficient, environmentally responsible, and most of all, ready for the future.

Looking forward, in 2012-2013, we will:

• refine and strengthen Transport Canada’s oversight function to improve transportation safety and security;
• help make Canada’s critical transportation infrastructure safer and more efficient;
• finalize Transport Canada’s renewed policy framework;
• support the department’s workforce and workplace through the impacts of change initiatives; and
• continue to strengthen departmental management controls and practices.

By delivering on these priorities, Transport Canada will contribute directly to the success of three key government-wide initiatives: supporting economic growth; protecting the security and safety of Canadians; and serving Canadians in a way that continues to ensure their ability to travel.

We will continue to refine and strengthen our oversight function. To achieve this, we will establish better processes to assess and manage risk; focus oversight resources on areas of highest priority; and provide improved tools and training to personnel. Further, finalizing the transformation initiatives that are underway in our Aviation Safety Program will allow us to address immediate opportunities for oversight improvement identified by both our employees and stakeholders.

We will draw on our knowledge, experience, and input from our experts and stakeholders to renew the department’s policy framework. This will ensure that our policies, programs and regulations meet the needs of the transportation system over the next 10 to 15 years.

Building on the Government of Canada’s unprecedented investments in transportation infrastructure, Transport Canada will continue to help make Canada’s critical transportation infrastructure safer and more efficient by improving the flow of goods, services and people. This includes starting construction of the new Windsor-Detroit crossing and planning a new bridge over the St. Lawrence River in the Greater Montreal area.

I would like to thank the entire staff for their efforts and hard work. As Minister of Transport, Infrastructure and Communities, I am confident that the department will meet its objectives and ensure that Canada’s transportation system continues to be recognized worldwide as safe, secure, efficient and environmentally responsible.

Section I - Departmental Overview

1.1 Summary Information

1.1.1 Raison d’être and Responsibilities

Transportation is essential for Canada’s social and economic prosperity. Transport Canada was established to ensure that an effective transportation system provides access to markets for natural resources, agricultural products and manufactured goods, and supports service industries. A safe and secure system provides reliable and efficient movement of goods and people across the country and around the world. In an environmentally responsible way, it meets the challenges posed by topography and geography, linking communities and reducing the effects of the distance that separates people. These vital roles reflect transportation’s interdependent relationship with all sectors of the economy and society.

The department’s vision of a sustainable transportation system integrates and balances social, economic and environmental objectives. Our vision is guided by these three principles:

• 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
• respect for the environmental legacy of future generations of Canadians, guided by environmental assessment and planning processes in transportation decisions and selective use of regulation and government funding.

Transport Canada develops the Government of Canada’s transportation policies and programs. The department is responsible for developing regulations, policies and services under the legislative authority of Parliament. The department is required by the Canada Transportation Act to report on the state of the national transportation system. 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 and efficiently.

Transport Canada is part of the Transport, Infrastructure and Communities Portfolio that 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). Together, these organizations contribute to Canada’s competitiveness by ensuring a vibrant transportation system to make the economy stronger; keeping our transportation system safe and secure; protecting the environment; and improving the quality of life in our cities and communities.

1.1.2 Strategic Outcomes and Program Activity Architecture

As illustrated in Figure 1, Transport Canada’s Program Activity Architecture includes 15 program activities that contribute to achieving the four departmental strategic outcomes:

1. an efficient transportation system;
2. a clean transportation system;
3. a safe transportation system; and
4. a secure transportation system.

The sixteenth program activity, Internal Services, supports all four strategic outcomes. These four strategic outcomes specifically contribute to five Government of Canada [1] outcomes. Section II of this report explains how Transport Canada’s strategic outcomes and program activities contribute to these outcomes areas.

Figure 1: Transport Canada Program Activity Architecture

[Text version of Figure 1 - Program Activity Architecture]

1.2 Planning Summary

Please note that the information contained in this report reflects the department’s Main Estimates for 2012-2013.

1.2.1 Financial Resources

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 on Planned Spending, or consult the departmental spending trend in section 1.6.1 below.

($ millions)

2012-13	2013-14	2014-15
2,084	1,795	963

1.2.2 Human Resources

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

2012-13	2013-14	2014-15
5,487	5,449	5,372

1.2.3 Allocation of Funding by Strategic Outcome and Internal Services

Figure 2 displays the allocation of funding according to Transport Canada’s four strategic outcomes, as well as the program activity related to Internal Services. Transport Canada’s planned spending for 2012-2013 is allocated primarily to the strategic outcome of an efficient transportation system. As described in Section II, this is mostly due to infrastructure project spending in the Gateways and Corridors program activity. For more detailed information about Transport Canada’s spending including adjustments following Main Estimates and non-respendable revenues, see Transport Canada's website.

Figure 2: Allocation of 2011-12 Funding by Strategic Outcome and Internal Services
($ millions)

Strategic Outcomes (and Internal Services)	Forecast Spending 2011-12	Planned Spending 2012-13	Planned Spending 2013-14	Planned Spending 2014-15
An efficient transportation system	595	1,395	1,106	280
A clean transportation system	48	60	64	58
A safe transportation system	385	366	358	353
A secure transportation system	70	73	71	70
Internal services	284	189	196	200
Total*	1,382	2,084	1,795	963

*Due to rounding, columns may not add to the totals shown. Amounts are net of respendable revenue.

1.3 Risk Analysis

1.3.1 Operating Environment

Transportation is a part of all social and economic activities. It provides access to markets for natural resources, agricultural products and manufactured goods, supports service industries and links communities. Canada’s multi-modal transportation network includes 38,000 kilometres (km) of national and regional highways, 21 million registered vehicles, 243,000 km of shoreline, over 42,306 vessels, 34,175 aircraft including commercial and general aviation, and 45,322 km of freight and passenger rail tracks. Furthermore, the aspects of ownership, operation and regulation of Canada’s transportation system are a shared responsibility between various levels of government and the private sector. Through its legislative and regulatory responsibilities, the federal government supports efficiency, safety, security and environmental responsibility of the national transportation system, and facilitates coordination with the global transportation networks.

In response to changing economic conditions and government-wide priorities, Transport Canada continues to be a government leader in transforming its role and operations. In the mid 1990s, the department transformed itself from an operator of large portions of the national transportation system with over 20,000 employees, to a policy and regulatory organization with about 5,000 employees. This transformation led to unprecedented productivity gains in transportation; more responsive local governance structures of key assets; and a shift of costs from taxpayers to users and to capital investments funded by private operators. In 2008, Transport Canada completed a strategic review that focused on further reducing subsidies; refocusing operations on national and essential services; and on transforming the department’s regulation of transportation safety and security by adopting safety management systems.

In the years ahead, global pressures such as demographic shifts, natural resources’ scarcity, financial and fiscal constraints, balancing economic growth with environmental protection, and general global economic turbulence and will present a number of challenges and opportunities (e.g., northern development) for Canada and our transportation system.

In addition to the inherent risks due to its breadth, the environmental challenges and opportunities mentioned above, as well as changes to the department’s role as a more policy and partnership-based organization, Transport Canada is required to effectively manage risk as it pursues its strategic outcomes.

1.3.2 Risk Management Approach

Transport Canada has implemented a strong risk management governance structure. This is outlined in the new Integrated Risk Management Policy that promotes the systematic integration of risk management practices to respond to unforeseen events and risks identified in the department’s Corporate Risk Profile [2]. Further, the role of Transport Canada’s Centre of Expertise in Risk Management and the Risk Management Working Group have been streamlined to provide ongoing support to management and employees in promoting a consistent approach to identifying, assessing and responding to risk throughout the department.

Transport Canada has also improved its risk escalation processes through the enhancement of its integrated risk management governance and by consulting senior management on a regular basis. The department documents risk information from project, operational, program and strategic outcome levels. On an annual basis, in advance of the departmental integrated business planning process, Transport Canada officials review risk profiles and progress in implementing risk responses that are horizontal in nature and/or that are serious enough in their exposure to warrant reporting to the senior management level. Officials also update the Corporate Risk Profile, if required. Factors such as those resulting from a modification in the department’s mandate or priorities and changing economic, political and environmental conditions are also considered. The department also develops new mitigation measures and controls as needed to help achieve our results, as part of the annual planning process.

1.3.3 Key Risk Areas and Risk Responses

Transport Canada continues to manage the four key risk areas identified in its Corporate Risk Profile. Risk responses for each area are being implemented and monitored in light of the current global, national and departmental environment.

Risk regarding Transportation System Efficiency: Over the last several years, there has been an unprecedented level of federal investment in transportation infrastructure, including federal, provincial, municipal and privately-owned assets. The department will continue to work with partners and stakeholders on initiatives to support an efficient transportation system. This includes the implementation of the Building Canada Plan and Gateways initiatives, as well as the Canada-United States Perimeter Security and Economic Competitiveness Action Plan initiatives, which will enhance the flow of legitimate trade and travel across the Canada-United States border.

Going forward, the department will renew its transportation policy framework to ensure that it continues to respond to the needs of the transportation sector. Further, in partnership with stakeholders, we will continue to support innovative targeted research and innovative measures to foster the continued development of a transportation system that is smart and responsive to challenges affecting sustainability and efficiency.

Risk regarding Oversight Effectiveness and Efficiency: As a federal regulator and funding partner, Transport Canada will implement strategies to ensure that its safety and security related policy, program and regulatory mechanisms remain responsive to today’s requirements; aligned with on-the-ground operational realities, international trends and developments; and, above all, meet the needs of Canadians. The department has additional risk responses in place, such as the assessment of the regulatory and compliance implications of legislation and regulations earlier in the policy development process, to ensure this risk is continued to be managed effectively.

In addition, Transport Canada will continue to modernize and streamline its regulatory framework by developing a risk-based regulatory priority management system to contribute efforts towards improving the regulatory system and assessing compliance. The department is also enhancing surveillance training for all inspectors in order to promote continuous improvement and modernizing national risk based inspection standards and tools.

Risk regarding Security Threat/Incident Response Capability: Transport Canada has continued to enhance its communication channels and protocols within the department, with other departments and with stakeholders, including strategies and action plans to improve information sharing and security awareness. Through ongoing consultations with industry and other stakeholders, the department has also advanced in the review and update of the Marine Transportation Security Regulations and the refinement of policy options to make the transportation of dangerous goods by rail and road more secure. The department will continue to increase security for air passengers, air cargo and airport workers by working to harmonize its security framework with those of our international partners, enhance the Air Cargo Security Program and develop the National Civil Aviation Security Program.

Risk regarding Change Management: The effective management of change contributes to Transport Canada’s ability to achieve its strategic outcomes. To that end, the department will continue to enhance its governance and its capacity to optimize its use of financial and non-financial resources and its performance measurement framework. For significant transformational initiatives, Transport Canada will develop a comprehensive change management plan, including an escalation process to quickly resolve outstanding change management issues; and the establishment of regular progress reviews and reporting.

1.4 Delivering on Key Government and Organizational Priorities

Transport Canada’s priorities are aligned with commitments undertaken by the Government of Canada as outlined in the Speech from the Throne, 2011, successive federal budgets, and the Eighteenth Annual Report to the Prime Minister on the Public Service of Canada from the Clerk of the Privy Council. These commitments include initiatives such as the red-tape reduction initiative, the Shared Vision for Perimeter Security and Economic Competitiveness, the web of rules action plan, and the Management Accountability Framework. For example, the organizational priority “adopt people management strategies that support our workforce and workplace” directly relates to renewal activities captured under the broad themes of engaging employees in the excellence agenda, renewing the workforce, and renewing the workplace, outlined in the Clerk of the Privy Council report to the Prime Minister.

In 2012-2013, Transport Canada is focused on delivering on three key government priorities:

Supporting economic growth: A modern and efficient transportation system is crucial to Canada’s economic growth. Canada’s transportation network and its related activities accounts for 4.1 percent of gross domestic product and employs over 900,000 people. Most importantly, our transportation network moves $1 trillion of goods to markets each year. As the most trade dependent of all G8 nations, Canada exports $725 billion worth of goods, requiring an efficient transportation network linked to global markets. Through its strategic gateways and market-based policies, Transport Canada promotes a national transportation system that helps to keep Canada competitive in a global economy.

Protecting the safety and security of Canadians: Transport Canada’s primary role is to continue to ensure the safety and security of Canadians and Canada’s vast transportation network. For example, Transport Canada and the Canadian Air Transport Security Authority work together to ensure that Canada’s aviation system meets global security standards, including the screening of 51 million passengers, 62 million pieces of baggage and annual air cargo shipments worth $100 billion. As a regulator, inspector and overseer, Transport Canada works to ensure Canadians have one of the safest transportation systems in the world.

Serving Canadians: The portfolio delivers important services that enable Canadians to travel and trade goods. This ranges from mail delivery to inter-city passenger rail and ferry services to Newfoundland.

Organizational Priorities

Transport Canada has five organizational priorities that are aligned with the department’s Corporate Risk Profile. Each priority relates to one or more of the department’s strategic outcomes and aligns with Government of Canada commitments. By establishing departmental priorities, senior management will be better placed to strengthen strategic direction, ensure internal coherence and corporate discipline, and support management teams in delivering results to Canadians. These priorities are described in more detail in the following tables.

Organizational Priority	Type [3]	Links to Strategic Outcome	Alignment with Corporate Risk Profile
Refine and strengthen Transport Canada’s oversight function to improve transportation safety and security	Ongoing	A Safe Transportation System; A Secure Transportation System	Security Threat/Incident Response Capability; Oversight Effectiveness and Efficiency; Change Management
Status
Why is this a priority? Effective oversight improves safety and security by assisting industry to better understand its environment and its responsibilities, promoting industry compliance with regulations, building trust and collaboration (e.g., sharing of best practices) between various partners, and improving regulations and programs by obtaining feedback from industry and inspectors, including the identification of regulatory or program needs. By improving the training regime for managers and inspectors, adopting nationally consistent business protocols within each mode, and strengthening and standardizing national inspection planning and tracking systems, Transport Canada will be able to strengthen its oversight approach, enabling a shared safety and security culture among Canadians and the transportation industry. To meet this priority the department plans to: enhance compliance and oversight activities by strengthening national modal consistency in program delivery; increase support to Inspectorate through an improved national inspector training program which will include: tools, systems as well as improved communications and engagement; and strengthen and standardize a risk-based approach to oversight planning and inspection.

Organizational Priority	Type	Links to Strategic Outcome	Alignment with Corporate Risk Profile
Help make Canada’s critical transportation infrastructure safer and more efficient	New	An Efficient Transportation System	Transportation System Efficiency
Status
Why is this a priority? The construction of the Windsor-Detroit crossing will ensure sufficient border crossing capacity for the expected increase in trade over the next thirty years. The new crossing and connecting highway will help spur economic activity in southern Ontario and improve transportation efficiency between Ontario, Quebec and eastern Canada with the United States. The new bridge over the St. Lawrence River in the Greater Montreal Area will be a key component of Canada’s Continental Gateway and trade corridor, benefitting both the regional and national economies. To meet this priority the department plans to: move forward on the new Windsor-Detroit crossing by continuing to develop the project and governance agreements required to advance the project to the procurement/implementation phase, acquiring remaining properties, and fulfilling the post-environmental assessment commitments; and continue to work with our partners to move forward with the new bridge over the St. Lawrence River to replace the Champlain Bridge in the greater Montreal area.

Organizational Priority	Type	Links to Strategic Outcome	Alignment with Corporate Risk Profile
Continue to renew Transport Canada’s policy framework to ensure that its policies, programs and regulations will meet the needs of the transportation system over the next 10 to 15 years.	Previously Committed to	All Strategic Outcomes	Oversight Effectiveness and Efficiency, Security Threat/Incident Response Capability, Transportation System Efficiency and Change Management (all risks)
Status
Why is this a priority? The transportation sector contributes greatly to Canada’s economic success and long-term prosperity. It is important therefore that Transport Canada’s strategic approaches continue to be relevant and meet the needs of the transportation sector. A renewed policy framework will be able to support a transportation sector that is well positioned to address existing and emerging challenges and is ready to exploit new opportunities over the long term. To meet this priority the department plans to: review the transportation policy framework to ensure that policies, programs and regulations are appropriate to respond to existing and emerging challenges and opportunities over the next 10 to 15 years, including long term infrastructure requirements; assess the current air and marine policy frameworks to ensure their responsiveness to trends affecting air and marine transportation with a view to promoting a competitive and viable transportation system to support trade opportunities, bringing economic benefits to Canadians; review Transport Canada’s oversight policy, voluntary and regulatory frameworks to ensure that they are positioned to meet the safety and security needs of the transportation system over the next 10 to 15 years; complete an assessment of Transport Canada’s policies and programs toward its remote designated facilities and services; and continue to advance the departmental innovation strategy to drive the next generation of transportation sector productivity gains and improve system performance.

Organizational Priority	Type	Links to Strategic Outcome	Alignment with Corporate Risk Profile
Adopt people management strategies that support our workforce and workplace through transformational changes.	New	All Strategic Outcomes	Change Management
Status
Why is this a priority? Achievement of the department’s mandate depends on the knowledge, expertise, professionalism and commitment of its employees. Transport Canada must address workplace and workforce issues that arise from change initiatives and support employees’ development in order to ensure that the public service can effectively respond to Canadians’ needs in the future. To meet this priority the department plans to: launch a detailed workforce planning exercise to identify resourcing needs across regions and occupational groups. This information will be used to identify and prioritize staffing actions and placement opportunities for employees; use the senior executive level National and Regional Workforce Management Boards to identify, propose and monitor measures related to workforce management; design strategies to align people with appropriate work units, including the finalization of the Civil Aviation organizational structure; and provide guidance, support and people management strategies during major transformation initiatives for both managers and employees.

Organizational Priority	Type	Links to Strategic Outcome	Alignment with Corporate Risk Profile
Continue to strengthen Transport Canada’s management controls and practices.	Previously Committed to	All Strategic Outcomes	Change Management
Status
Why is this a priority? Improved internal management controls and practices enhance organizational effectiveness, resulting in higher organizational performance, improved program and service delivery, and better overall results. To meet this priority the department plans to: leverage and strengthen its governance framework and integrated business planning process, including make more effective use of its performance management and reporting; strengthen its integrated risk management approach; and proactively address external and internal audit findings (e.g., efficient and effective implementation of approved management action plans).

1.5 Transport Canada’s Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy outlines the Government of Canada’s commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. Transport Canada ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the department’s strategic environmental assessment process, any new policy, plan, or program initiative includes an analysis of its impact on attaining the Federal Sustainable Development Strategy’s goals and targets. The results of strategic environmental assessments are made public when an initiative is announced, demonstrating the department’s commitment to achieving the Federal Sustainable Development Strategy’s goals and targets.

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

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

• 1.4 Transportation 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 the Report on Plans and Priorities or visit our Departmental Sustainable Development Strategy website. For complete details on the Federal Sustainable Development Strategy please see Environment Canada's website.

1.6 Expenditure Profile

For the 2012-2013 fiscal year Transport Canada plans to spend $2,084 million to meet the expected results of its program activities and to contribute to its strategic outcomes. This represents a net increase in planned spending of $702 million over the 2011-2012 forecast spending level of $1,382 million.

The difference is related primarily to a planned spending increase of $836 million (from funds received in Budgets 2006/2007) in the Gateways and Corridors program activity and specifically, the Gateway and Border Crossings Fund, the Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund and the Detroit River Crossing Major Crown Project. This increase is offset by declining planned spending for grants related to agreements with First Nations for the development of the Port of Prince Rupert, and for the disbursement of severance pay and termination benefits due to ratified collective agreements, as well as minor changes in various other programs.

1.6.1 Departmental Spending Trend

Figure 3: Spending Trend for Transport Canada

Figure 3 shows Transport Canada’s expenditures (actual, forecast and planned) from 2008-2009 to 2014-2015. The trend shows a gradual increase in spending from $1,040 million in 2008-2009 to $1,382 million in 2011-2012, with a peak at $2,084 million in 2012-2013. The increase in planned spending is attributable to the implementation of projects under some of the department’s major initiatives including the Asia Pacific Gateway and Corridor Initiative and the Gateways and Borders Crossing Fund. After 2012-2013 planned spending declines as these initiatives approach their planned end dates.

[Text version of Figure 3 - Spending Trend]

1.6.2 Voted and Statutory Items

For information on the department’s organizational votes and/or statutory expenditures, please see the 2012-2013 Main Estimates publication.

Section II - Analysis of Program Activities by Strategic Outcome

Transport Canada has four strategic outcomes that reflect the long-term and enduring benefits to Canadians that stem from its mandate and vision. As the department strives towards these outcomes, progress can be reported in relation to expected results [4], performance indicators [5] and targets [6], as set out in its Program Activity Architecture for 2012-2013.

The department uses qualitative and quantitative indicators, also called “performance measures”, to determine the results achieved in terms of strategic outcomes and expected results. Using a systematic method to develop, communicate, monitor and report performance information provides a uniform foundation to achieve these outcomes. In an effort to better report on results of activities, and to demonstrate value to Canadians, Transport Canada will continue to strengthen performance indicators in its Performance Measurement Framework.

This section provides detailed analysis of how the department plans to meet its expected results, and presents the financial and non-financial resources that will be dedicated to each program activity in the coming year. It also highlights some of Transport Canada’s initiatives that are included in the Federal Sustainable Development Strategy.

2.1 Strategic Outcome: An Efficient Transportation System

An efficient transportation system requires a strong and modern marketplace policy framework and infrastructure to strengthen Canada’s long term economic competitiveness. Work is ongoing to ensure that policy and legislative frameworks remain relevant and allow industry to respond to challenges and take advantage of opportunities for the future.

The federal government makes strategic infrastructure investments to ensure that funds are spent where they are most needed, to support economic growth, improve the quality of life of Canadians and better position Canada in the rapidly changing global marketplace. Transportation infrastructure initiatives create jobs, support trade and tourism, connect Canadians and attract investments. Canada promotes innovative financing arrangements for transportation infrastructure through public-private partnerships to spur innovation, better manage risks and leverage public investments to the greatest extent possible, given tight fiscal constraints in most jurisdictions.

Canada is a trading nation, and the efficiency and reliability of trade impacts directly on the nation’s prosperity and well being. As a result, it is imperative that the federal government play a role in the development of an integrated transportation network linking importers and exporters to markets and suppliers in the increasingly complex global value chains. Guided by the National Policy Framework for Strategic Gateways and Corridors, the Gateways and Corridors initiatives aim to support international commerce by creating a more efficient, reliable and seamless trade-related transportation system in Canada.

The demands of global trade, population growth, an aging demographic, and the effects of climate change require new and innovative solutions to keep Canada’s transportation system efficient, accessible and competitive. Investing in the right technologies, research and skills development will enable the transportation sector to continue to support trade, global competitiveness and national prosperity. In addition, the sector’s ability to enhance its innovative capacity will determine future improvements in transportation efficiency, safety, security, accessibility and environmental performance.

The following four program activities [7] support this strategic outcome:

• 2.1.1 Transportation Marketplace Frameworks;
• 2.1.2 Gateways and Corridors;
• 2.1.3 Transportation Infrastructure; and
• 2.1.4 Transportation Innovation.

The plans, expected results, performance indicators and targets of these program activities are described below.

Strategic Outcome 1: An Efficient Transportation System

Performance Indicators	Targets
Canada’s ranking based on the World Bank’s Logistics Performance Index.	Canada in top 25 of ranked nations.

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending			Alignment with Government of Canada Outcomes
		2012-13	2013-14	2014-15
Transportation Marketplace Frameworks	10	9	9	9	A fair and secure marketplace
Gateways and Corridors	227	1,063	793	0	Strong economic growth
Transportation Infrastructure	347	309	293	260	Strong economic growth
Transportation Innovation	12	14	11	11	An innovative and knowledge-based economy
Total Planned Spending*	596	1,395	1,106	280

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

2.1.1 Program Activity: Transportation Marketplace Frameworks

Description: The Transportation Marketplace Frameworks program activity encourages transportation efficiency by fostering a competitive and viable transportation sector. Program activities include setting the regimes governing the economic behaviour of carriers in all modes of transportation; setting the rules of governance for all the transportation infrastructure providers falling under federal authority; monitoring the transportation system; representing the interests of Canada at international transportation fora and on other international bodies, and enabling access to transportation for Canadians.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
9	9	9

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
67	67	67

Program Activity Expected Results	Performance Indicators	Targets
A competitive transportation sector	Percentage change in freight transportation intensity	>0
A competitive transportation sector	Percentage change in passenger transportation intensity	>0

Planning Highlights

The department will continue to modernize marketplace frameworks so that the transportation sector can adapt, innovate and remain competitive. This work contributes to the government priority of creating the right conditions for economic and job growth. In support of this objective, the program activity will focus on the following priorities:

• assess the current air and marine policy framework to ensure their responsiveness to trends affecting air and marine transportation, with a view to promoting a competitive and viable transportation system to support trade opportunities, bringing economic benefits to Canadians;
• implement the government response to the recommendations of the comprehensive review of freight rail service aimed at improving the efficiency, effectiveness and reliability of the rail system. This will help the rail system support domestic and international trade; and
• monitor and analyze the freight transportation system supporting international commerce with the objective of identifying bottleneck issues and improvements to ensure that the transportation system is optimized and responsive to the users’ needs. This will help inform current and future freight integration initiatives.

2.1.2 Program Activity: Gateways and Corridors

Description: Canada is a trading nation, and the efficiency and reliability of this trade impacts directly on the nation’s prosperity and well being. As a result, it is imperative that the federal government play a role in the development of an integrated transportation network linking importers and exporters to markets and suppliers in the increasingly complex global value chains. Guided by the National Policy Framework for Strategic Gateways and Trade Corridors, Gateways and Corridors program activity aims at supporting Canada’s international commerce by creating more efficient, reliable and seamless trade-related transport systems. The program sets strategies and frameworks for improving and integrating transportation networks in key regions; fosters partnerships between all levels of government and the private sector; supports and oversees projects that contribute to the increased capacity and efficiency of gateway and corridor infrastructure; develops and puts in place measures that remove impediments to the effective development of gateways and corridors; and markets the use of gateways and corridors.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
1,063	793	0

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
63	49	0

Program Activity Expected Results	Performance Indicators	Targets
Gateways and corridors are efficient, reliable and support international commerce	Efficiency and reliability as measured by total transit time of international containerized freight using Canada’s strategic gateways and trade corridors	Total transit time for a given year ≤ total transit time for the previous year

Planning Highlights

The department implements gateways and corridors initiatives to contribute to an efficient, reliable, and secure trade-related transportation system to support international commerce. In support of this objective, the program activity will focus on the following priorities:

• continue to develop and implement Canada’s three strategic gateways and corridors initiatives: the Asia-Pacific Gateway and Corridor Initiative, the Continental Gateway and Trade Corridor and the Atlantic Gateway and Trade Corridor, and consider future directions and strategies to improve transportation system connectivity and efficiency;
• implement gateway strategies in partnership with other federal departments and agencies, provinces and territories, municipalities, and private sector stakeholders to strengthen Canada’s competitiveness in global commerce, improve efficiencies, attract new investments and contribute to sustained long-term economic growth;
• contribute to the efficient and safe operation of Canada’s critical trade infrastructure by moving forward on the Detroit River International Crossing to provide necessary border crossing capacity to handle anticipated trade and traffic growth, as well as transportation-system redundancy and state-of-the-art security of border operations at Windsor-Detroit - the busiest commercial land border crossing in North America; and advance the planning for a new bridge over the St. Lawrence River in the Greater Montreal area; and
• continue to invest in Beyond the Border initiatives to make the transportation network safer, more efficient and more secure for international trade. These security and economic initiatives will enhance the flow of legitimate trade and travel across the Canada-U.S. border, which will deliver tangible benefits to the Canadian economy and regional economies, the traveling public and the business community engaged in cross-border commerce.

2.1.3 Program Activity: Transportation Infrastructure

Description: The Transportation Infrastructure program activity looks after transportation infrastructure under Transport Canada’s mandate to improve efficiency and provide service. It acts as the steward of certain commercial transportation assets operated by third parties on behalf of the federal government (e.g., airport authorities, port authorities, federal bridges, via Rail, Seaway Corporation, Marine Atlantic.); provides funding for Canada’s strategic transportation infrastructure, targeted to support federal objectives; develops transportation infrastructure policy in consultation with stakeholders; supports essential services in certain communities; manages legacy commitments; and divests assets and contracts out operations, where needed.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
309	293	260

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
241	239	226

Program Activity Expected Results	Performance Indicators	Targets
Federally funded infrastructure is available, reliable and operational	Percentage of federally funded transportation infrastructure that meets operational targets	100

Planning Highlights

The department will continue to enhance the sustainability of the national transportation infrastructure. In support of this objective, the program activity will focus on the following priorities:

• develop long-term, cost-efficient asset stewardship strategies for ports, airports and lands still owned and operated by Transport Canada including the Pickering Lands, the St. Lawrence Seaway Management Corporations properties, and other departmental real property holdings, to rationalize Canada’s transportation assets, while providing high quality, safe and efficient services, as well as value-for-money to Canadians;
• continue to oversee the implementation of via Rail’s capital program, which is supported by the Government of Canada’s 2007 commitment to improve the sustainability and reliability of passenger rail services in Canada and provide more frequent, faster, cleaner and safer services within the Quebec City-Windsor Corridor; and
• work with our provincial, municipal, private sector and other partners to successfully deliver infrastructure projects and programs. Canadians will benefit from investments through programs such as the Outaouais Road Agreement and the Building Canada Fund, which will improve the safety and efficiency of national highways, roads, railways and other transportation infrastructure, as well as, contribute to a stronger economy and enhanced quality of life.

2.1.4 Program Activity: Transportation Innovation

Description: The Transportation Innovation program activity supports the Advantage Canada framework to promote skills development, and create health, environmental, societal and economic benefits for Canadians. It achieves this by building better linkages between science and policy, supporting technology development aligned with policy issues of significance to the department, and serving as a focal point in the delivery of a coordinated and integrated transportation innovation agenda. The program sets policy and strategic direction for research and development; develops designs, negotiates, and manages research programs for breakthrough technologies, including intelligent transportation systems; advances the development and dissemination of scientific knowledge, and the application of technology; partners and collaborates with other federal departments, provinces and territories; and supports skills development for a highly qualified transportation workforce.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
14	11	11

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
31	31	32

Program Activity Expected Results	Performance Indicators	Targets
Research and development investments are optimized to improve the transportation system for Canadians.	Ratio of Research and Development funding leveraged from external sources	1:1
Research and development funding provided to support efficient, clean, safe and secure transportation.	Percentage of approved funding delivered	100%

Planning Highlights

2.2 Strategic Outcome: A Clean Transportation System

With the transportation sector producing approximately twenty-four percent [8] of Canada’s total greenhouse gas emissions, it is important that Transport Canada continue to take a leadership role in ensuring an environmentally responsible transportation system while balancing safety, security and economic efficiency. This means playing a key role in furthering the transportation sector components of the Government of Canada’s environmental agenda by helping reduce pollution and emissions from transportation sources; protecting the marine and freshwater environment; and fulfilling the important stewardship role of ensuring that Transport Canada’s lands, facilities and activities comply with environmental legislation and that an environmental management system is in place. In 2012-2013 Transport Canada will continue to implement its suite of transportation regulatory and program initiatives under the renewed Clean Air Agenda.

Transport Canada plays a strong leadership role as it engages with national and international partners to limit the environmental impacts of transportation. It also contributes to the Government of Canada’s initiatives to improve the federal regulatory system for environmental assessments for major resource projects while ensuring improvements to its own regulatory, consultation and review processes for transportation-related projects.

The following three program activities support this strategic outcome:

• 2.2.1 Clean Air from transportation;
• 2.2.2 Clean Water from transportation; and
• 2.2.3 Environmental Stewardship of transportation.

The plans, expected results, performance indicators and targets of these program activities are described below.

Strategic Outcome 2: A Clean Transportation System

Performance Indicators	Targets
Percentage change in air emissions from transportation as measured in tonnes of greenhouse gas and air pollutants	Support government commitments
Percentage of contaminated sites managed	100
Number of new alien invasive species detected	0

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending			Alignment with Government of Canada Outcomes
		2012-13	2013-14	2014-15
Clean Air from Transportation	16	25	35	33	A clean and healthy environment
Clean Water from Transportation	8	2	2	2	A clean and healthy environment
Environmental Stewardship of Transportation	24	33	27	23	A clean and healthy environment
Total Planned Spending*	48	60	64	58

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

2.2.1 Program Activity: Clean Air from Transportation

Description: The Clean Air from transportation program activity advances the federal government’s environmental agenda in the transportation sector and complements other federal programs designed to reduce air emissions for the health of Canadians and the environment for generations to come. The program regulates air emissions from the transportation sector, and oversees Transport Canada’s clean air program obligations and commitments.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
25	35	33

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
92	91	90

Program Activity Expected Results	Performance Indicators	Targets
Decrease in intensity of greenhouse gas emissions and air pollutants in the transportation sector	Percentage change in transportation emission intensity	An intensity improvement that is consistent with the plan established under the government's horizontal approach to clean air

Planning Highlights

2.2.2 Program Activity: Clean Water from Transportation

Description: The Clean Water from Transportation Program Activity protects the marine environment by reducing the pollution of water from transportation sources. This Program regulates and monitors the release and impact of discharges from marine vessels into the marine environment, regulates ballast [9] water, and contributes to setting domestic and international rules that govern limits to liability of marine pollution incidents. This Program advances the federal government's clean water agenda in the transportation sector and complements other federal programs designed to protect the marine environment for the health of Canadians and the environment for generations to come. This Program also represents Canada in discussions to set international standards to prevent pollution from vessels operating in Canada's waters.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
2	2	2

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
13	13	13

Program Activity Expected Results	Performance Indicators	Targets
Prevention of pollution in the marine environment from vessels operating in waters under Canadian jurisdiction.	Percentage change in number of releases by vessels of substances that could have a negative impact on the marine environment (i.e. pollution, ballast water)	5 percent reduction

Planning Highlights

2.2.3 Program Activity: Environmental Stewardship of Transportation

Description: The Environmental Stewardship program activity fulfills Transport Canada's responsibilities in working towards an environmentally responsible national transportation system for Canadians by ensuring compliance with the department's environmental obligations in relation to acts, regulations, policies and guidelines. The program fulfils Transport Canada's responsibility to implement its Departmental Sustainable Development Strategy under the Federal Sustainable Development Act; ensures that Transport Canada's lands and facilities are managed in an environmentally responsible manner in compliance with federal legislation and policies; provides functional support for environmental assessments, including assessments of major resource projects; and manages contaminated sites.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
33	27	23

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
89	89	89

Program Activity Expected Results	Performance Indicators	Targets
Compliance with Transport Canada's environmental obligations in relation to acts, regulations, policies and guidelines	Percentage of departmental commitments achieved under the Federal Sustainable Development Strategy	100
Compliance with Transport Canada's environmental obligations in relation to acts, regulations, policies and guidelines	Number of instances where Transport Canada was not in compliance with applicable environmental legislation	0
Oversight of compliance with applicable laws and policies	Number of planned National Environmental Management System reviews undertaken	>= ( at least) 1

Planning Highlights

2.3 Strategic Outcome: A Safe Transportation System

Transport Canada supports a safe transportation system that aims to facilitate the movement of people and goods across Canada, without loss of life, injury, or damage to property. The activities under this strategic outcome direct much of their collective effort at influencing the behaviour of the public and industry through laws and regulations. Transportation safety is enhanced by harmonized and streamlined regulatory regimes that are informed by the expertise of multiple countries and stakeholders. Sharing best practices and cooperating in research during the regulatory development stage results in effective and efficient regulatory frameworks that enhance transportation safety. In addition, Transport Canada ensures that Canadians and the transportation industry are in compliance with the regulatory framework through their safety oversight programs. These rules are complemented by policies, standards, directives, and guidelines that further influence the use of safe transportation practices and enable a safety culture which seeks to make safety a part of a company’s every action.

The following five program activities support this Strategic outcome:

• 2.3.1 Aviation Safety;
• 2.3.2 Marine Safety;
• 2.3.3 Rail Safety;
• 2.3.4 Road Safety; and
• 2.3.5 Transportation of Dangerous Goods.

Strategic Outcome 3: A Safe Transportation System

Performance Indicators	Targets
Fatality rates by transportation mode/sector	By mode or sector
Accident rates by transportation mode/sector	By mode or sector

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending			Alignment with Government of Canada Outcomes
		2012-13	2013-14	2014-15
Aviation Safety	227	231	223	222	A safe and secure Canada
Marine Safety	78	62	62	61	A safe and secure Canada
Rail Safety	38	37	36	36	A safe and secure Canada
Road Safety	26	23	24	21	A safe and secure Canada
Transportation of Dangerous Goods	15	13	12	13	A safe and secure Canada
Total Planned Spending*	384	366	357	353

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

The plans, expected results, performance indicators and targets of these program activities are described below.

2.3.1 Program Activity: Aviation Safety

Description: The Aviation Safety program activity develops, administers, and oversees the policies, regulations and standards necessary for the safe conduct of civil aviation within Canada's borders in a manner harmonized with the international aviation community. It also manages programs to support safety-related investments at regional/small airports and provides air transport services to support Transport Canada’s and other government department’s operations.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
231	223	222

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
1,803	1,803	1,803

Program Activity Expected Results	Performance Indicators	Targets
A safe civil aviation system	Number of accidents per 100,000 hours of flight (five year average)	6.5

Planning Highlights

The department will continue to strive for the highest level of aviation safety for Canadians. In support of this objective, the program activity will focus on the following priorities:

• enhance the Civil Aviation Safety management framework by implementing the Civil Aviation Safety program action plan, the assessment of the management control framework, the Internal Audit management control framework action plan, and by addressing the Office of Auditor General 2012 audit recommendations;
• accelerate finalization of the new Civil Aviation organizational structure through completion of work descriptions and implementation of classification decisions and staffing strategies as per the Civil Aviation action plan; and adopt people management strategies to support our workforce and workplace; and
• implement a national risk-based approach to oversight planning that considers surveillance and service activities (safety management systems and non-safety management systems).

2.3.2 Program Activity: Marine Safety

Description: The Marine Safety program activity protects the life and health of Canadians by contributing to a safe and efficient marine transportation system. This program derives its authority from a number of Acts including the Canada Shipping Act 2001, the Navigable Waters Protection Act, the Safe Containers Act, the Pilotage Act, the Coasting Trade Act and the Arctic Waters Pollution Prevention Act, to develop and enforce a marine safety regulatory framework for domestic and foreign vessels (non-pleasure craft and pleasure craft); enforce international conventions signed by Canada; and protect the public right to navigation on Canada’s waterways.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
62	62	61

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
603	603	603

Program Activity Expected Results	Performance Indicators	Targets
A safe marine transportation system	Number of Canadian commercial Vessel (non-pleasure craft) occurrences per 1,000 vessels in the Canadian registry (five-year moving average)	9.5 Baseline is 13.6 occurrences per 1,000 vessels. Rate change from 13.6 to 9.5 represents a 30 percent decrease
A safe marine transportation system	Number of pleasure craft fatalities for recreational boating activities (five-year average)	111

Planning Highlights

The department will contribute to an efficient and sustainable marine transportation system in which the public can have continued confidence. In support of this objective, the program activity will focus on the following priorities:

• advance the modernization of Marine Safety’s oversight frameworks and improve national program standardization by enhancing compliance and oversight activities, and by strengthening national modal consistency in program delivery;
• develop and integrate performance measurement and risk-based decision-making into the overall management and delivery of the program. This includes moving towards a risk-based inspection regime for domestic vessels, for which risk ratings of these vessels will form the basis for targeted compliance inspections; and
• advance work to ensure a vibrant Marine Safety program that meets its statutory obligations and provides adequate level of service to the marine industry through the establishment of an appropriate and up-to-date fee structure.

2.3.3 Program Activity: Rail Safety

Description: Under the authority of the Railway Safety Act, the Rail Safety program activity develops, implements and promotes safety policy, regulations, standards and research. The program provides oversight of the rail industry and promotes public safety at crossings and identifies the risks of trespassing. It also provides funds to improve safety at grade crossings.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
37	36	36

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
208	208	208

Program Activity Expected Results	Performance Indicators	Targets
A safe rail transportation system	Rate of rail accidents (per million train miles) that occur on railways under federal jurisdiction (includes main-track collisions, and derailments, non-main track derailments and collisions, fires/explosions and others) (five-year average)	14.1
A safe rail transportation system	Rate of rail incidents (per million train miles) that occur on railways under federal jurisdiction (includes abnormal position of main-track switch, movement exceeding limit of authority, leaks of dangerous goods, incapacitation of crew member, runaway rolling stock, signal that is less restrictive than required and unprotected overlap of authorities) (five year average)	2.45

Planning Highlights

The department will continue to further improve rail safety in Canada. In support of this objective, the program activity will focus on the following priorities:

• in conjunction with the expected passage in Parliament of the amendments to the Railway Safety Act, begin development of key regulations, including Railway Operating Certificates and Administrative Monetary Penalties. Rail Safety is also developing regulations on grade crossings, and the collection of industry data;
• continue to strengthen its oversight regime by:
  • enhancing the national inspector training program, through the development and improvement of courses on auditing, Safety Management Systems and orientation of new Rail Safety Inspectors;
  • building on progress made in the Rail Safety Quality Management System to help ensure that business practices are carried out consistently on a national level; and
  • continuing the implementation of the Rail Safety Integrated Gateway, to capture and report on safety performance data.
• build and expand on the Rail Safety program’s risk-based business planning process to effectively allocate and monitor resources in support of audits, inspection and outreach activities.

2.3.4 Program Activity: Road Safety

Description: Guided by the Motor Vehicle Safety Act and the Motor Vehicle Transport Act, the Road Safety program activity develops standards and regulations, provides oversight of the regulated industry, engages in public outreach in order to reduce the deaths, injuries and social costs caused by motor vehicle use, and improves public confidence in the safety of Canada’s road transportation system.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
23	24	21

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
113	113	113

Program Activity Expected Results	Performance Indicators	Targets
Safer vehicles	Collisions per 10,000 motor vehicle registered	To be determined
Safer vehicles	Fatalities (vehicle occupants) per 10,000 police-reported collisions occurring on public roads	To be determined
Safer vehicles	Serious injuries (vehicle occupants) per 10,000 police-reported collisions occurring on public roads	To be determined

Planning Highlights

The department will continue to promote road safety. In support of this objective, the program activity will focus on the following priorities:

• pursue modernization of the temporary vehicle importation regime by amending Motor Vehicle Safety Regulations and by implementing an on-line system to authorize and track temporary importations;
• further develop the pre-clearance vehicle importation program to facilitate a risk-based approach to auditing importers. Transport Canada will also educate designated importers about their responsibilities under the Motor Vehicle Safety Act in order to improve the compliance rates; and
• streamline the exemptions process under the Motor Vehicle Transport Act to accommodate industry sectors that use motor carriers which are subject to the Hours of Service Regulations.

2.3.5 Program Activity: Transportation of Dangerous Goods

Description: As required by the Transportation of Dangerous Goods Act, 1992, the Transportation of Dangerous Goods program activity, based on risk, develops safety standards and regulations, provides oversight and gives expert advice (e.g. Canadian Transport Emergency Centre) on incidents involving dangerous goods to promote public safety in the transportation of dangerous goods by all modes of transport in Canada; identify threats to public safety, and enforce the Act and its regulations; guide emergency response and limit the impact of incidents involving the transportation of dangerous goods; and develop policy and conduct research to enhance safety.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
13	12	13

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
124	124	124

Program Activity Expected Results	Performance Indicators	Targets
Public safety during the transportation of dangerous goods	Number of reportable releases of dangerous goods per trillion dollars of Canadian gross domestic product (five year average)	221.1
Public safety during the transportation of dangerous goods	Number of reportable releases of dangerous goods, that caused injuries or deaths per trillion dollars of Canadian gross domestic product (five- year average)	3.8

Planning Highlights

The department will work to enhance public safety in the transportation of dangerous goods. In support of this objective, the program activity will focus on the following priorities:

• establish and implement an action plan that addresses the Commissioner of the Environment and Sustainable Development Audit of Transportation of Dangerous Products to:
  • strengthen compliance monitoring guidance, develop tools and processes, document follow-up procedures for inspectors, support the review of transport dangerous goods inspection activities and introduce a quality assurance program;
  • review the Emergency Response Assistance plan program’s policies and procedures for approvals of plans and develop enhanced guidance material for remedial measure specialists; and
  • implement a national risk assessment tool that will serve as the basis for risk-based inspection planning for inspectors.

2.4 Strategic Outcome: A Secure Transportation System

Transport Canada develops policies and programs that respond to emerging security risks while keeping Canada competitive and develops and enforces transportation security regulations. The department also works with domestic and international partners towards a shared and effective transportation security agenda. A secure transportation system supports a strong Canadian economy and the country’s competitiveness in global markets. As a trading nation, Canada must move people and goods across vast distances to domestic and international destinations, and the number of people traveling by air, sea and land increases every year. International and public confidence in the security of Canada’s transportation infrastructure is critical.

Transport Canada promotes a holistic approach to security. It develops policies, programs and regulations; and enforces these regulations in response to emerging security risks. The department’s role is diverse and complex, as reflected in the many activities that include enhancing the security of the surface transportation system, ports and airports across Canada.

The following three program activities support this strategic outcome:

• 2.4.1 Aviation Security;
• 2.4.2 Marine Security; and
• 2.4.3 Surface and Intermodal Security.

Strategic Outcome 4: A Secure Transportation System

Performance Indicators	Targets
Percentage of adjustments to the Canadian Regulatory Framework that meet international standards	100

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending			Alignment with Government of Canada Outcomes
		2012-13	2013-14	2014-15
Aviation Security	44	46	44	44	A safe and secure Canada
Marine Security	20	21	21	21	A safe and secure Canada
Surface and Intermodal Security	6	6	6	6	A safe and secure Canada
Total Planned Spending*	70	73	71	70

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

The plans, expected results, performance indicators and targets of these program activities are described below.

2.4.1 Program Activity: Aviation Security

Description: The Aviation Security program activity develops, administers and oversees policies, programs, regulations and standards necessary for a secure Canadian aviation system in a manner harmonized with the international aviation community.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
46	44	44

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
385	371	368

Program Activity Expected Results	Performance Indicators	Targets
Canada is aligned with international aviation security standards	Percentage of aviation security regulations aligned with the International Civil Aviation Organizations standards	100

Planning Highlights

The department will continue to uphold the security of its aviation system. In support of this objective, the program activity will focus on the following priorities:

• refine and strengthen the aviation security oversight function;
• finalize the National Civil Aviation Security program to codify and clarify for all stakeholders Canada’s approach to aviation security; and
• implement a new risk and results-based inspection program that includes more clearly defined inspection activities, and a baseline inspection schedule, which will improve reporting and national consistency.

2.4.2 Program Activity: Marine Security

Description: The Marine Security program activity, with partners, enforces the Marine Transportation Security Act to protect Canada and Canadians in a way that respects Canadian values. It safeguards integrity and security, and preserves the efficiency of Canada’s marine transportation system against unlawful interference, terrorist attacks, or use as a means to attack our Canadian allies.

Planned Spending ($ millions)

2012-13	2013-14	2014-15
21	21	21

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
170	170	170

Program Activity Expected Results	Performance Indicators	Targets
Increased industry confidence in marine transportation security	Percentage of industry indicating confidence in the Canadian marine security system	80
Canada is aligned with international marine security standards	Percentage of marine security regulations aligned with the International Maritime Organization standards	100

Planning Highlights

The department will continue to promote a secure marine system. In support of this objective, the program activity will focus on the following priorities:

• implement, in partnership with other co-leads, three initiatives of the Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness Action Plan, including: developing a harmonized approach, with the United States, for the screening of inbound maritime cargo; developing a plan to mitigate the impacts of disruptions to maritime commerce in the event of an emergency; and improving maritime domain awareness through the development a common approach to assessing threats and identifying risks;
• implement the action plan for the Canada-US Regulatory Cooperation Council including aligning marine security requirements where possible and establishing a framework to jointly address issues related to the safety and security of vessels operating on the Great Lakes and St. Lawrence Seaway. Priority areas include: expansion of the Joint Vessel Inspection Program in the St. Lawrence Seaway; exploring the feasibility of mutual recognition of regulatory oversight regimes for vessels operating exclusively on the Great Lakes and the St. Lawrence Seaway; as well as establishing a framework to ensure greater regulatory alignment with the United States; and
• review and update the Marine Transportation Security Regulations, including advancing Marine Security’s commitments under the Red Tape Reduction initiative.

2.4.3 Program Activity: Surface and Intermodal Security

Description: Guided by the Railway Safety Act, the International Bridges and Tunnels Act, the Transportation of Dangerous Goods Act and the federal government's transportation security mandate, the Surface and Intermodal Security program activity enhances the security of surface and intermodal transportation such as rail and urban transit as well as international bridges and tunnels. Working with partners to protect Canada and Canadians in a way that respects Canadian values and preserves the efficiency of the transportation system, the program provides federal leadership, and develops and enforces regulatory and voluntary frameworks (regulations, codes of practice, and memoranda of understanding).

Planned Spending ($ millions)

2012-13	2013-14	2014-15
6	6	6

Human Resources (Full-Time-Equivalents [FTEs])

2012-13	2013-14	2014-15
40	40	40

Program Activity Expected Results	Performance Indicators	Targets
Rail transportation operators (passenger and freight) implement the requirements of the voluntary framework	Percentage of rail transportation operators adopting the voluntary security framework.	60

Planning Highlights

The department will continue to enhance the security of surface and intermodal transportation. In support of this objective, the program activity will focus on the following priorities:

• refine and strengthen the Surface and Intermodal Security oversight function and work with industry stakeholders to improve the effectiveness of the security posture of the rail and urban transit systems;
• use risk-based analysis to enhance the security of the international bridges and tunnels through voluntary or regulatory approaches and develop guidance documents and potential approaches to enhancing the security of the transportation of dangerous goods; and
• continue to work with industry stakeholders on the promotion of Surface and Intermodal Security and industry developed security Codes of Practices, and the sharing of security guidance material and best practices.

2.5 Program Activity: Internal Services

Description: The Internal Services Program Activity include activities and related resources that are managed to support all strategic outcomes and program needs, as well as other departmental obligations. Only activities and resources that apply to the entire organization, and not those allocated to a single program, are included. Governance and Management Support Services include Management and Oversight Services [10], Communications Services and Legal Services. Resource Management Services include human resources management, financial management; information management and information technology services. Asset Management Services include real property, material and acquisition services.

Planning Summary Table
($ millions)

Internal Services	Forecast Spending 2011-12	Human Resources (Full-Time-Equivalents (FTEs )) and Planned Spending						Contribution to Transport Canada Strategic Outcomes
		2012-13	FTEs	2013-14	FTEs	2014-15	FTEs
Internal Services	284	191	1,445	196	1,438	200	1,425	An efficient transportation system A clean transportation system A safe transportation system A secure transportation system

Planning Highlights

Transport Canada will continue to effectively manage activities and related resources to meet its program and departmental needs; and to meet central agency oversight requirements. Internal Services’ planning highlights that support these objectives and departmental priorities include:

Governance and Management Support:

Internal Audit and Evaluation:

• introduce an enhanced evidence-based management action plan follow-up process for all outstanding audit and evaluation recommendations;
• proactively monitor, risk assess, and report on outstanding external and internal audit and evaluation recommendations; and
• implement approved risk-based audit and evaluation plans, and report audit findings to an external Audit Committee and evaluation findings to an Evaluation Committee.

Planning and Reporting:

• strengthen the integration of financial and nonfinancial planning, monitoring and reporting to improve our capacity to make decisions and set priorities;
• continue to enhance performance management and reporting through a review and refinement of the department's Program Activity Architecture and Performance Measurement Framework. This will improve decision making throughout the department, which will improve program delivery and resource allocation, and enhance accountability; and
• develop and adopt more systematic risk management practices and ensure that the department has the policies, procedures and tools it needs to mitigate risks and achieve expected results. Integrated risk management will help strengthen our capacity to make decisions and set priorities.

Program Excellence:

• continue to identify, develop and encourage the department to adopt tools and best practices to support excellence in designing and managing grants and contributions and to ensure they comply with federal policies, directives and guidelines related to grants and contributions, including performance and risk management practices.

Economic Analysis:

• produce a comprehensive five-year review of the state of transportation in Canada and report to Parliament.

Communications:

• implement the Web 2.0 Infrastructure Project that will allow Transport Canada to adopt new communication practices that promote the sharing of information with colleagues, other public servants, stakeholders and the public. This can include:
  • social media, which allow participants with distinct social/user profiles to create, share and interact with user-generated content, including text, images, video and audio (e.g. Facebook, Twitter, YouTube, Linked-In, blogs); as well as
  • collaborative technologies that allow many users to collaboratively create content (e.g. Wikis, Google Docs).

Resource Management Services:

Human Resource Management:

• establish a National Workforce Management Board to address key human resources’ gaps and needs to meet departmental priorities and our core business activities, while minimizing the impact of transformational changes;
• continue to provide guidance and advice to organizations on the people management portion of their Integrated Business Plan and help them identify people management initiatives to address the gaps/needs related to their priorities and core activities.

Financial Management:

• improve departmental internal controls to ensure that the risks related to its stewardship of public resources are managed through effective internal controls as stated in the Policy on Internal Control;
• adopt financial system enhancements, such as the Receiver General Buy Button project that will improve the secure storage of related payments information of Canadians; and
• strengthen functional authority of project management, which improves project management practices within the department.

Information Technology:

• work with Shared Services Canada to streamline and reduce duplication within government-wide information technology services and to maintain client service levels during the transition of services from Transport Canada to Shared Services Canada.
• launch the technology and security components of the Web 2.0 Infrastructure Project

Section III - Supplementary Information

3.1 Financial Highlights

For more information on Transport Canada’s financial statements, please visit our website.

3.1.1 Future-Oriented Condensed Statement of Operations
For the Year Ended March 31, 2013
($ millions)

	$ Change	Future-Oriented 2012-13	Future-Oriented* 2011-12
Total Expenses	664	2,257	1,593
Total Revenues	9	412	403
Net Cost of Operations	655	1,845	1,189

Note: Due to rounding, columns may not add to totals shown. These figures are prepared on an accrual basis and therefore differ from the planned spending numbers in other sections of this Report on Plans and Priorities.

3.1.2 Future-Oriented Condensed Statement of Financial Position
For the Year Ended March 31, 2013
($ millions)

	$ Change	Future-Oriented 2012-13	Future-Oriented* 2011-12
Total assets	2	3,553	3,551
Total liabilities	(1)	1,854	1,855
Equity	3	1,699	1,696
Total	2	3,553	3,551

Note: Due to rounding, columns may not add to totals shown. These figures are prepared on an accrual basis and therefore differ from the planned spending numbers in other sections of this Report on Plans and Priorities.

3.2 Supplementary Information Tables

The following tables were submitted electronically. You can find all the 2012-2013 Report on Plans and Priorities electronic Supplementary Information Tables on the Treasury Board of Canada Secretariat website.

• Details on Transfer Payment Programs
• Greening Government Operations
• Horizontal Initiatives
• Upcoming Internal Audits and Evaluations
• Sources of Respendable and Non-Respendable Revenue
• Status Report on Transformational and Major Crown Projects
• Summary of Capital Spending by Program Activity

---

Section IV - Other Items of Interest

4.1 Organizational Contact Information

We welcome your comments on this report

Email: Questions@tc.gc.ca
Phone: 613-990-2309 Toll Free: 1-866-995-9737
Teletypewriter (TTY): 1-888-675-6863
Fax: 613-954-4731

Mailing Address:
Transport Canada (ADI)
330 Sparks Street
Ottawa, ON
K1A 0N5

4.2 Relevant Websites

Advantage Canada Framework

Annual Report to the Prime Minister on the Public Service of Canada from the Clerk of the Privy Council and Secretary to the Cabinet

Arctic Waters Pollution Prevention Act

Asia-Pacific Gateway and Corridor Initiative

Atlantic Gateway and Trade Corridor Strategy

Beyond the Border

Canada Post Corporation

Canada Shipping Act 2001

Canada Transportation Act

Canadian Environmental Assessment Act

Canadian Environmental Protection Act

Canadian Transport Emergency Centre

Clean Air Agenda

Coasting Trade Act

Continental Gateway and Trade Corridor Strategy

Corporate Services

December Report of the Commissioner of the Environment and Sustainable Development (2011)

Departmental Sustainable Development Strategy

Detroit River International Crossing

Environment Canada - Federal Sustainable Development Strategy

Environment Canada’s Report on Plans and Priorities 2012-2013

Fisheries Act

Great Lakes Pilotage Authority

International Bridges and Tunnels Act

International Civil Aviation Organization

International Maritime Organization

Main Estimates

Marine Transportation Security Act

Motor Vehicle Safety Act

Motor Vehicle Transport Act

National Policy Framework for Strategic Gateways and Trade Corridors

Navigable Waters Protection Act

Pilotage Act

Policy on Internal Control

Railway Safety Act

Safe Containers Act

Shared Services Canada

Speech from the Throne, June 2011

St. Lawrence Seaway Development Corporation

Transport Canada Website

Transport, Infrastructure and Communities Portfolio

Transportation and the Environment

Transportation Appeal Tribunal of Canada

Transportation in Canada Annual Report

Transportation of Dangerous Goods Act

Treasury Board Secretariat

via Rail Canada Inc.

Whole of Government Framework

---

Footnotes

[1] Source: Treasury Board of Canada Secretariat – Whole-of-Government Framework.

[2] The Corporate Risk Profile helps Transport Canada establish a direction for managing departmental risks. The profile presents a snapshot of the Department’s risk status at a particular point in time.

[3] Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the current reporting year.

[4] An expected result is an outcome towards which Transport Canada is contributing through various activities in its Program Activity Architecture.

[5] A performance indicator is a statistic or parameter that, tracked over time, provides information on trends in the status of an activity.

[6] A target is a specific performance goal tied to a performance indicator against which actual performance will be compared.

[7] A program is defined as a group of related resource inputs and activities that are designed and managed to address specific needs, and achieve intended results, and that are treated as a budgetary unit. The program activity represents the largest identifiable program(s) that the department manages.

[8] Canada’s National Inventory Reported allocated 28% of Canada’s total greenhouse gas (GHG) emissions to transportation activities in 2009. However, when GHG emissions are allocated by economic sectors (e.g., pipelines’ emissions to the oil and gas sector), the transportation sector share of Canada’s total GHG emissions is 24%.

[9] Ballast is defined as any solid or liquid that is brought on board a vessel to increase the draught, change the trim, regulate the stability or maintain stress loads within acceptable limits.

[10] Management and Oversight Services include the following service groupings: Strategic Policy and Economic Analysis, Government Relations, Executive Services, Corporate Planning and Reporting, Programs and Services Management, Internal Audit, Evaluation and Crown Corporation Governance.