Vol. 136, No. 42 — October 19, 2002

Regulations Amending the Great Lakes Pilotage Tariff Regulations

Statutory Authority

Pilotage Act

Sponsoring Agency

Great Lakes Pilotage Authority

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Great Lakes Pilotage Authority (the Authority) is responsible for administering, in the interests of safety, an efficient pilotage service within Canadian waters in the province of Quebec, south of the St. Lambert Lock, and in and around the provinces of Ontario and Manitoba.

Section 33 of the Pilotage Act allows the Authority to prescribe tariffs of pilotage charges that are fair and reasonable, and that permit the Authority to operate on a self-sustaining financial basis. To this end, the Authority strives to be self-sufficient on a district-by-district basis, as well as for the Authority as a whole. In order to do so, it is necessary for the Authority to amend the Great Lakes Pilotage Tariff Regulations (the GLPTR). With the exception of a recently published amendment to the GLPTR, registered as SOR/2002-110, the Authority has not raised its pilotage charges during the past nine years despite an aggregate rate of inflation of approximately 20 percent. While the amendments will allow the Authority to operate on a self-sustaining basis, they will also serve to eliminate cross-subsidization between districts, offset the increased costs of providing pilotage services, and cover expenses related to the training and costs associated with implementing government policies and practices.

These amendments affect pilotage charges for services provided in three of the areas within the jurisdiction of the Authority, namely the waters of Lake Ontario, International District No. 1 (from Saint-Regis Island to Kingston), and certain waters in International District No. 2. (from the Welland Canal to Lake Huron). Specifically, the following changes to the GLPTR are:

— amendments to subsections 1(1) to (3) of Schedule I providing for a 6.3 percent increase in the pilotage charges for International District No. 1;

— amendments to subsection 1(5) of Schedule I which will have the effect of increasing the pilotage charges by 28 percent in order to achieve a break-even position, in International District No. 2 from the western end of Lake Erie to Port Huron, including the Detroit River, Lake St. Clair and the St. Clair River; and

— an amendment to subsection 2(1) of Schedule I providing for a 16 percent increase in the pilotage charges for the docking or undocking of a ship in the waters of Lake Ontario (item 2(a) of the Table, which replaces the existing subsection 2(1)).

In addition, the amendments make a number of changes that are administrative in nature and do not affect the tariff structure. For example, the charges for various pilotage services have been extracted from the regulatory text, where possible, and are presented more clearly in a tabular format. The "International District" definitions in section 2 have also been amended to refer to and to reflect amendments to the Great Lakes Pilotage Regulations.

Amendments Affecting the Waters of International District No. 1 and the Western Portion of International District No. 2

The amendments to subsections 1(1) to (3) and to subsection 1(5) of Schedule I provide a 6.3 and a 28 percent increase respectively for pilotage services performed in the waters of International District No. 1 and of the western portion of International District No. 2.

With respect to a vessel making a one-way trip in International District No. 1, the 6.3 percent increase will provide an additional $98.00 in revenue to the existing basic charge of $1,545.00. In the identified waters of International District No. 2, the 28 percent increase relevant to the existing basic charge of $1,559.00 for a vessel transiting between the western end of Lake Erie and Port Huron will amount to $434.00. For a vessel transiting all the waters between St. Lambert Lock (Montréal) to Thunder Bay, the net effect of the 6.3 and the 28 percent increases in these two areas averages out to an overall increase of 3 percent, or 3¢, per tonne of cargo carried on a round trip.

Amendment Affecting the Waters of Lake Ontario

The amendment to subsection 2(1) of Schedule I provides for a 16 percent increase for pilotage services relating to the docking or undocking of a ship in the waters of Lake Ontario. This provision was inadvertently omitted when an amendment was made to subparagraph 2(1)(a)(i) which provided for an 8 percent increase per annum for the years 2002 and 2003 for all pilotage services performed in the waters of Lake Ontario, registered as SOR/2002-110. This 16 percent increase will provide an additional $45.00 in revenue to the existing charge of $271.00 for the docking or undocking of a ship in the waters of Lake Ontario.

Alternatives

The objective of the Authority, as set out in the Pilotage Act, is to establish, operate, maintain and administer, in the interests of safety, an efficient pilotage service. Consistent with this objective, costs have been kept to a minimum. In the interest of safety, however, a reduction in operating costs was not considered as an alternative.

Retention of the existing tariff rates was considered as a possible option. However, the Authority rejected this status quo alternative since a readjustment of tariff rates is necessary to reflect the actual costs for the various pilotage services performed. These amendments will ensure that the Authority maintains its financial self-sufficiency while avoiding cross-subsidization among the various pilotage districts.

Benefits and Costs

The 6.3 percent increase in the pilotage charges for International District No. 1 and the 28 percent increase in the western portion of International District No. 2 are consistent with the current costs for providing the service in each of these areas, and it is anticipated that the result will be an annual increase in revenue of $400,000.

These changes will ensure the continued efficiency of pilotage services in these areas and will allow the Authority to achieve its Corporate Plan objectives while maintaining financial self-sufficiency.

Consultation

The Authority consulted with the Shipping Federation of Canada and with the Canadian Shipowners Association on July 4, 2002, and on September 3, 2002. These two organizations, which represent almost all users, were provided with a comprehensive analysis of the effects of these proposed increases. They took note of the tariff increases, and the Shipping Federation of Canada representative indicated that the Authority should utilize its surplus (contingency) funds to ensure a break-even budget position instead of imposing tariff increases upon its users. The Authority indicated that any withdrawals from the $3.2 million in contingency funds would be contrary to KPMG's recommendations, which established the amount at $3 million, and to the policy established by the Great Lakes Pilotage Authority's Board of Directors.

Compliance and Enforcement

Section 45 of the Pilotage Act provides that a customs officer at any port in Canada shall withhold clearance from a ship upon being advised by a pilotage authority that pilotage charges in respect of that ship are outstanding and unpaid.

Paragraph 48(c) of the Pilotage Act provides for penalties if the Regulations are contravened. These include fines of up to $5,000.

Contact

Mr. R. F. Lemire, Chief Executive Officer, Great Lakes Pilotage Authority, P. O. Box 95, Cornwall, Ontario K6H 5R9, (613) 933-2991 (Telephone), (613) 932-3793 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 34(1) (see footnote a)  of the Pilotage Act, that the Great Lakes Pilotage Authority, pursuant to subsection 33(1) of the Act, proposes to make the annexed Regulations Amending the Great Lakes Pilotage Tariff Regulations.

Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including, without limiting the generality thereof, the public interest that is consistent with the national transportation policy set out in section 5 of the Canada Transportation Act (see footnote b) , may file a notice of objection setting out the grounds therefor with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9.

ROBERT LEMIRE
Chief Executive Officer
Great Lakes Pilotage Authority

REGULATIONS AMENDING THE GREAT LAKES PILOTAGE TARIFF REGULATIONS

AMENDMENTS

1. The definitions "International District No. 1", "International District No. 2" and "International District No. 3" in section 2 of the Great Lakes Pilotage Tariff Regulations (see footnote 1)  are replaced by the following:

"International District No. 1" has the meaning assigned in paragraph 3(b) of the Great Lakes Pilotage Regulations; (circonscription internationale n^o 1)

"International District No. 2" has the meaning assigned in paragraph 3(c) of the Great Lakes Pilotage Regulations; (circonscription internationale n^o 2)

"International District No. 3" has the meaning assigned in paragraph 3(d) of the Great Lakes Pilotage Regulations; (circonscription internationale n^o 3)

2. Subsection 3(2) of the Regulations is replaced by the following:

(2) For the purpose of subsection (1), the weighting factor of a ship whose location is set out in column 1 and whose pilotage unit is set out in column 2 of the following table is set out in column 3:

TABLE

Item	Column 1 Location	Column 2 Pilotage Unit	Column 3 Weighting Factor
1.	Anywhere	Not more than 129	1.00
2.	Anywhere	More than 129 but not more than 159	1.15
3.	Anywhere	More than 159 but not more than 189	1.30
4.	Anywhere	More than 189 but not more than 219	1.45
5.	Anywhere other than the Port of Churchill	More than 219	1.45
6.	The Port of Churchill	More than 219 but not more than 249	1.60
7.	The Port of Churchill	More than 249 but not more than 279	1.75
8.	The Port of Churchill	More than 279 but not more than 309	1.90
9.	The Port of Churchill	More than 309 but not more than 339	2.05
10.	The Port of Churchill	More than 339 but not more than 369	2.20
11.	The Port of Churchill	More than 369 but not more than 399	2.35
12.	The Port of Churchill	More than 399 but not more than 429	2.50
13.	The Port of Churchill	More than 429 but not more than 459	2.65
14.	The Port of Churchill	More than 459	2.80

3. (1) Subsections 1(1) to (3) of Schedule I to the Regulations are replaced by the following:

1. (1) Subject to subsection (2), the basic charge for a passage, other than a movage, through International District No. 1, or any part thereof, and its contiguous waters is $8 for each kilometre ($13 for each statute mile), plus $171 for each lock transited.

(2) The minimum and maximum basic charges for a through trip through International District No. 1 and its contiguous waters are $374 and $1,643, respectively.

(3) The basic charge for a movage in International District No. 1 and its contiguous waters is $562.

(2) Subsections 1(5) to (7) of Schedule I to the Regulations are replaced by the following:

(5) The basic charge for a pilotage service in International District No. 2 and its contiguous waters, other than that specified in subsection (4), set out in column 1 of the following table is set out in column 2:

TABLE

Item	Column 1 Pilotage Service	Column 2 Basic Charge ($)
1.	Through the Welland Canal, where the pilot is changed at Lock 7,
	(a) for that portion of the passage between the northern limit of the Canal and Lock 7	1,280
	(b) for that portion of the passage between Lock 7 and the southern limit of the Canal	1,280
2.	Between Southeast Shoal and Toledo or any point on Lake Erie west of Southeast Shoal	988
3.	Between points on Lake Erie west of Southeast Shoal	583
4.	Between Southeast Shoal and the Port Huron Change Point or any point on the St. Clair River, where the pilot is not changed at the Detroit pilot boat	1,720
5.	Between Southeast Shoal and Detroit, Windsor or any point on the Detroit River	988
6.	Between Southeast Shoal and the Detroit pilot boat	715
7.	Between Toledo or any point on Lake Erie west of Southeast Shoal and the Port Huron Change Point, where the pilot is not changed at the Detroit pilot boat	1,993
8.	Between Toledo or any point on Lake Erie west of Southeast Shoal and Detroit, Windsor or any point on the Detroit River	1,282
9.	Between Toledo or any point on Lake Erie west of Southeast Shoal and the Detroit pilot boat	988
10.	Between Detroit, Windsor or any point on the Detroit River and any point on the Detroit River	583
11.	Between Detroit, Windsor or any point on the Detroit River and the Port Huron Change Point or any point on the St. Clair River	1,293
12.	Between the Detroit pilot boat and any point on the St. Clair River	1,293
13.	Between the Detroit pilot boat and the Port Huron Change Point	1,005
14.	Between points on the St. Clair River	583
15.	Between the Port Huron Change Point and any point on the St. Clair River	715

(6) The basic charge for a pilotage service in International District No. 3 and its contiguous waters set out in column 1 of the following table is set out in column 2:

TABLE

Item	Column 1 Pilotage Service	Column 2 Basic Charge ($)
1.	Trip, other than a movage, between the southern limit of the District and the northern limit of the District or the Algoma Steel Corporation Wharf at Sault Ste. Marie, Ontario	1,349
2.	Trip, other than a movage, between the southern limit of the District and Sault Ste. Marie, Michigan, or any point in Sault Ste. Marie, Ontario, other than the Algoma Steel Corporation Wharf at Sault Ste. Marie, Ontario	1,130
3.	Trip, other than a movage, between the northern limit of the District and Sault Ste. Marie, Ontario, including the Algoma Steel Corporation Wharf at Sault Ste. Marie, Ontario, or Sault Ste. Marie, Michigan	507
4.	Movage	507

(3) Subsection 2(1) of Schedule I to the Regulations is replaced by the following:

2. (1) Subject to subsections (2) and (3), the basic charge for a pilotage service set out in column 1 of the following table is set out in column 2:

TABLE

Item	Column 1 Pilotage Service	Column 2 Basic Charge ($)
1.	Being present on board, for a six-hour period or part of a six-hour period, in the undesignated waters and contiguous waters of
	(a) Lake Ontario	332
	(b) Lake Erie	330
	(c) Lake Huron, Lake Michigan or Lake Superior	272
2.	Docking or undocking each time in the undesignated waters and contiguous waters of
	(a) Lake Ontario	316
	(b) Lake Erie	254
	(c) Lake Huron, Lake Michigan or Lake Superior	259

4. Sections 1 to 3 of Schedule II to the Regulations are replaced by the following:

1. The basic charge for a pilotage service set out in column 1 of the following table is set out in column 2 but is subject to the minimum basic charge set out in column 3 if applicable:

TABLE

Item	Column 1 Pilotage Service	Column 2 Basic Charge ($)	Column 3 Minimum Basic Charge ($)
1.	Trip between the eastern limit of the Cornwall District and Cornwall or the pilot boarding station near Saint-Régis, Quebec	2,622	N/A
2.	Trip other than a trip referred to in item 1	12.05 for each kilometre (20.05 for each statute mile), plus 335 for each lock transited	675
3.	Docking or undocking for the purpose of loading or unloading cargo, stores or bunker fuel or of effecting repairs	470	N/A
4.	Movage	1,011	N/A

5. (1) Paragraph 4(1)(a) of Schedule II to the Regulations is repealed.

(2) Paragraph 4(2)(a) of Schedule II to the Regulations is repealed.

6. (1) Paragraph 5(1)(a) of Schedule II to the Regulations is repealed.

(2) Paragraph 5(2)(a) of Schedule II to the Regulations is repealed.

7. (1) Paragraph 6(2)(a) of Schedule II to the Regulations is repealed.

(2) Paragraph 6(3)(a) of Schedule II to the Regulations is repealed.

8. Section 1 of Schedule III to the Regulations is replaced by the following:

1. The basic charge for a pilotage service that is rendered during the period beginning on July 20 in any year and ending on October 31 in the same year and is set out in column 1 of the following table is set out in column 2:

TABLE

Item	Column 1 Pilotage Service	Column 2 Basic Charge ($)
1.	Entering or exiting the port	761.20
2.	Movage	532.40
3.	Embarking or disembarking a pilot at a pilot boarding station if a boat is used	The amount charged to hire the boat

COMING INTO FORCE

9. These Regulations come into force on March 1, 2003.

[42-1-o]

Footnote a 

S.C. 1998, c. 10, s. 150

Footnote b 

S.C. 1996, c. 10

Footnote 1 

SOR/84-253; SOR/96-409

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