Vol. 144, No. 29 — July 17, 2010

Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996

Statutory authority

Pilotage Act

Sponsoring agency

Atlantic Pilotage Authority

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

The Atlantic Pilotage Authority (the Authority) is responsible for administering, in the interests of safety, an efficient pilotage service within the Canadian waters in and around the Atlantic Provinces. Section 33 of the Pilotage Act requires that Pilotage Authorities prescribe tariffs of pilotage charges that are fair and reasonable and consistent with providing revenues sufficient to permit the Authority to operate on a self-sustaining financial basis. The Authority is responsible for 17 compulsory pilotage areas, and additional non-compulsory areas in which a pilot may be provided at the request of a ship.

The compulsory pilotage areas of Stephenville, Humber Arm, and Bay of Exploits in Newfoundland and Labrador have been affected by a significant decline in activity over several years. The situation has been exacerbated by the closing of two key paper mills in Stephenville and Grand Falls (shipping through the Bay of Exploits). From having 621 pilotage assignments in 2005, the activity has declined to 320 assignments in 2009, leading to a corresponding decline in revenue. The Authority has reduced staffing levels from four to three pilots to cover a very large geographical area. It would not be practical or prudent to reduce the staffing levels further as that would severely impact the Authority’s ability to provide service to customers in the area.

With respect to the non-compulsory tariff amendments proposed herein, the tariffs for the affected areas have not been amended since April 14, 1999. There is concern that qualified mariners may not do the non-compulsory assignments requested by industry if the rates remain at their current levels.

The objective of this regulatory proposal is to increase pilotage charges in certain compulsory and non-compulsory areas in order to

• maintain the ability of the Authority to meet its mandate to operate, in the interest of safety, an efficient pilotage service within the Atlantic region,
• help ensure the long-term financial self-sustainability of the Authority as a whole,
• help ensure the long-term financial self-sustainability of each port individually, and
• be mindful of the economic fragility of the region (ensure that proposed tariff increases are within the ability of the shipping industry to absorb, and to limit proposed increases to a level where they will not cause traffic to be diverted to competing ports, for example, in the United States).

For the non-compulsory tariff amendments proposed herein, the Authority is attempting to streamline the current rate structure, and to provide an inflationary increase to assure qualified mariners will provide their services as pilots when requested.

Description and rationale

Western Newfoundland

The three compulsory areas in Western Newfoundland form a district which shares the pilot complement. Two of the three areas, Bay of Exploits and Stephenville, have had dramatic reductions in traffic within the past five years due to the loss of pulp mills in those areas. The third area, Humber Arm, has also suffered a decline, but to a lesser extent. The Authority has reduced the pilot complement to the lowest possible level, and must increase tariffs in those areas to reduce the losses being incurred. The increase in tariffs is 10% in Bay of Exploits and Stephenville, and 20% in Humber Arm. The movage charge, which is the charge for manoeuvring of a ship from one berth to another or back at the same berth within a compulsory pilotage area, will be calculated in the same manner as other compulsory areas in Newfoundland and Nova Scotia. The following table indicates the amendments in the benchmark rates for these areas.

Area		Basic Charge ($)	Unit Charge ($)	Minimum Charge ($)	Cancellation Charge ($)
Bay of Exploits, N.L.	Current	841.00	8.85	1 725.00	841.00
	Proposed	925.00	9.74	1 898.00	900.00
Stephenville, N.L.	Current	841.00	8.85	1 725.00	841.00
	Proposed	925.00	9.74	1 898.00	900.00
Humber Arm, N.L.	Current	541.00	7.33	1 400.00	541.00
	Proposed	649.00	8.80	1 680.00	649.00

Non-compulsory ports

There are several ports throughout Nova Scotia, New Brunswick, and Prince Edward Island that do not require compulsory pilotage. However, if requested, the Authority may provide a licensed pilot to assist in the safe navigation of ships in those areas. The charges applicable for these assignments are contained in Schedule 6 of the Atlantic Pilotage Tariff Regulations, 1996 (the Regulations).

Schedule 6 of the Regulations lists several ports, some of which have been inactive for many years. The active ports, with the exception of Pictou, Nova Scotia, and Summerside, Prince Edward Island, are included in the category “Any other port or harbour area.” The Authority intends to modify this schedule so that only the following two items be listed: 1. Belledune, New Brunswick, and 2. Any other ports. For the active ports currently covered under the “Any other port or harbour area” category, the rates in effect in Pictou and Summerside will apply. This will be an increase of 10.4% in unit charge, an increase in minimum charge of 18.9%, and an increase in the movage charge of 19.3%. The tariffs for these categories have not increased since April 14, 1999, and the proposed increase is less than the rate of inflation in the interim period. The following table indicates the proposed amendments.

Port and Harbour Areas — One-way Trips and Movage

Area		Minimum Charges One-way Trip ($)	Unit Charge One-way Trip ($)	Movage Charge ($)
Any other port or harbour area	Current	302.00	3.26	244.00
	Proposed	359.00	3.60	291.00

The Authority is also proposing an increase in the charge for coastal pilotage contained in section 11 of the Regulations. This charge has not been amended since June 4, 1998, and the proposed increase represents an inflationary increase. The proposal is that the current rate of $453 per each 24-hour period, or part thereof, be increased to $573 for each 24-hour period, or part thereof.

Benefits and costs

The increase in revenue in the compulsory areas represents less than 0.5% increase for the Authority overall. The tariff adjustments for the individual ports will be an increase of 20% in Humber Arm, and 10% in both Stephenville and Bay of Exploits. These amendments are not expected to impact the Authority’s operating costs.

With respect to non-compulsory areas, the revenues from ports in these areas represent a negligible part of the Authority’s revenue, and the increase will not create any significant positive cash flow. It should be noted that, in these areas, pilotage is not compulsory and the industry can choose not to use the services of the Atlantic Pilotage Authority.

The Authority considers the tariffs proposed here to be fair and reasonable. The increases permit self-sustainability of each port individually and address inflationary pressures.

Strategic environmental analysis

In accordance with the Cabinet Directive on the Environmental Assessment of Policy,Plan and Program Proposals of 1999 and the Transport Canada Policy Statement on Strategic Environmental Assessment, a strategic environmental assessment of these amendments was conducted in the form of a preliminary scan. The strategic environmental assessment concluded that the amendments are not likely to have important environmental effects.

Consultation

Consultation in various forms has taken place over the last months with the parties affected by these proposed amendments. The parties consulted include the Shipping Federation of Canada, the Canadian Shipowners Association, and the Western Newfoundland Pilotage Committee. The consultation took the form of meetings, as well as written, personal, and telephone communications with individuals. Alternatives to tariff increases were presented, where applicable, and participation from the attendees was encouraged. When meeting with customers, the Authority provided an analysis of the situation and solicited responses.

The response of those consulted has varied, but the majority of the customers accept that the increases are fair and reasonable.

Implementation, enforcement and service standards

Section 45 of the Pilotage Act provides an enforcement mechanism for these Regulations in that a Pilotage Authority can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid. Section 48 of the Pilotage Act stipulates that every person who fails to comply with the Act or Regulations is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

Contact

Captain R. A. McGuinness
Chief Executive Officer
Atlantic Pilotage Authority
Cogswell Tower, Suite 910
2000 Barrington Street
Halifax, Nova Scotia
B3J 3K1
Telephone: 902-426-2550
Fax: 902-426-4004

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act (see footnote b), that the Atlantic Pilotage Authority, pursuant to subsection 33(1) of that Act, proposes to make the annexed Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996.

Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including the public interest that is consistent with the national transportation policy set out in section 5 (see footnote c) of the Canada Transportation Act (see footnote d), may file a notice of objection setting out the grounds for the objection with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection must 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.

Halifax, July 7, 2010

CAPTAIN R. A. MCGUINNESS
Chief Executive Officer
Atlantic Pilotage Authority

REGULATIONS AMENDING THE ATLANTIC PILOTAGE TARIFF REGULATIONS, 1996

AMENDMENTS

1. Subsection 11(1) of the Atlantic Pilotage Tariff Regulations, 1996 (see footnote 1) is replaced by the following:

11. (1) A charge of $573 for each 24-hour period, or part of a 24-hour period, is payable if the services of a pilot are used to pilot a ship, other than a dead ship or an oil rig, in a coastal area.

2. The portion of item 3 of Schedule 2 to the Regulations in columns 2 to 4 is replaced by the following:

Item	Column 2 Minimum Charge ($)	Column 3 Unit Charge ($)	Column 4 Basic Charge ($)
3.	1,898.00	9.74	925.00

3. The portion of item 5 of Schedule 2 to the Regulations in columns 2 to 4 is replaced by the following:

Item	Column 2 Minimum Charge ($)	Column 3 Unit Charge ($)	Column 4 Basic Charge ($)
5.	1,680.00	8.80	649.00

4. The portion of item 8 of Schedule 2 to the Regulations in columns 2 to 4 is replaced by the following:

Item	Column 2 Minimum Charge ($)	Column 3 Unit Charge ($)	Column 4 Basic Charge ($)
8.	1,898.00	9.74	925.00

5. The portion of item 3 of Schedule 4 to the Regulations in columns 3 to 7 is replaced by the following:

Item	Column 3 Minimum Charge ($)	Column 4 Unit Charge, No Pilot Boat Used ($)	Column 5 Basic Charge, No Pilot Boat Used ($)	Column 6 Unit Charge, Pilot Boat Used ($)	Column 7 Basic Charge, Pilot Boat Used ($)
3.	1,708.00	7.79	740.00	8.77	832.00

6. The portion of item 5 of Schedule 4 to the Regulations in columns 3 to 7 is replaced by the following:

Item	Column 3 Minimum Charge ($)	Column 4 Unit Charge, No Pilot Boat Used ($)	Column 5 Basic Charge, No Pilot Boat Used ($)	Column 6 Unit Charge, Pilot Boat Used ($)	Column 7 Basic Charge, Pilot Boat Used ($)
5.	1,512.00	7.04	519.00	7.92	584.00

7. The portion of item 8 of Schedule 4 to the Regulations in columns 3 to 7 is replaced by the following:

Item	Column 3 Minimum Charge ($)	Column 4 Unit Charge, No Pilot Boat Used ($)	Column 5 Basic Charge, No Pilot Boat Used ($)	Column 6 Unit Charge, Pilot Boat Used ($)	Column 7 Basic Charge, Pilot Boat Used ($)
8.	1,708.00	7.79	740.00	8.77	832.00

8. Schedule 6 to the Regulations is replaced by the Schedule 6 set out in the schedule to these Regulations.

COMING INTO FORCE

9. These Regulations come into force on the day on which they are registered.

SCHEDULE
(Section 8)

SCHEDULE 6
(Sections 9 and 10)

PORT AND HARBOUR AREAS — ONE-WAY TRIPS AND MOVAGES

Item	Column 1 Port or Harbour Area	Column 2 Minimum Charge, One-way Trip ($)	Column 3 Unit Charge, One-way Trip ($)	Column 4 Movage Charge ($)
1.	Belledune, N.B.	469.00	4.02	291.00
2.	Any other port or harbour area	359.00	3.60	291.00

[29-1-o]

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

Footnote b
R.S., c. P-14

Footnote c
S.C. 2007, c. 19, s. 2

Footnote d
S.C. 1996, c. 10

Footnote 1
SOR/95-586

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