Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996: SOR/2019-67

Canada Gazette, Part II, Volume 153, Number 6

Registration

SOR/2019-67 March 4, 2019

PILOTAGE ACT

P.C. 2019-138 February 28, 2019

RESOLUTION

Whereas the Atlantic Pilotage Authority, pursuant to subsection 34(1) footnote a of the Pilotage Act footnote b, published a copy of the proposed Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996, substantially in the annexed form, in the Canada Gazette, Part I, on November 10, 2018;

Therefore, the Atlantic Pilotage Authority, pursuant to subsection 33(1) of the Pilotage Act footnote b, makes the annexed Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996.

Halifax, January 3, 2019

Captain Sean Griffiths
Chief Executive Officer
Atlantic Pilotage Authority

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to subsection 33(1) of the Pilotage Act footnote b, approves the annexed Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996, made by the Atlantic Pilotage Authority.

Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996

Amendments

1 (1) Subsection 14(5) of the Atlantic Pilotage Tariff Regulations, 1996 footnote 1 is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(d) Miramichi, New Brunswick, at any time during the year.

(2) Subsection 14(6) of the Regulations is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(d) Miramichi, New Brunswick, at any time during the year.

2 The portion of item 1 of Schedule 2 to the Regulations in column 2 is replaced by the following:

Item

Column 2

Minimum Charge ($)

1

1,800.00

3 The portion of items 3 to 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
($/pilotage unit)

Column 4


Basic Charge ($)

3

2,568.00

13.17

1,251.00

4

2,353.00

7.45

759.00

5

2,596.00

11.09

1,298.00

4 (1) The portion of item 6 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
($/pilotage unit)

Column 4


Basic Charge ($)

6

3,201.00

5.64

2,415.00

(2) The portion of item 6 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
($/pilotage unit)

Column 4


Basic Charge ($)

6

3,265.00

5.75

2,463.00

5 (1) The portion of item 7 of Schedule 2 to the Regulations in column 6 is replaced by the following:

Item

Column 6

Budgeted Fuel Consumption (litres)

7

80

(2) The portion of item 7 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
($/pilotage unit)

Column 4


Basic Charge ($)

7

2,353.00

7.45

759.00

6 The portion of item 9 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
($/pilotage unit)

Column 4


Basic Charge ($)

9

2,535.00

7.37

1,235.00

7 The portion of item 11 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
($/pilotage unit)

Column 4


Basic Charge ($)

11

1,709.00

4.60

1,247.00

8 The portion of item 12 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
($/pilotage unit)

Column 4


Basic Charge ($)

12

1,665.00

2.92

749.00

9 (1) The portion of item 13 of Schedule 2 to the Regulations in columns 3 and 4 is replaced by the following:

Item

Column 3

Unit Charge
($/pilotage unit)

Column 4


Basic Charge ($)

13

5.43

460.00

(2) The portion of item 13 of Schedule 2 to the Regulations in columns 3 and 4 is replaced by the following:

Item

Column 3

Unit Charge
($/pilotage unit)

Column 4


Basic Charge ($)

13

5.59

474.00

10 Schedule 3 to the Regulations is replaced by the Schedule 3 set out in the schedule to these Regulations.

11 The portion of items 3 to 7 of Schedule 3 to the Regulations in columns 4 and 5 is replaced by the following:

Item

Column 4

Unit Charge
($/pilotage unit)

Column 5


Basic Charge ($)

3

13.17

1,251.00

4

7.45

759.00

5

11.09

1,298.00

6

5.75

2,463.00

7

7.45

759.00

12 The portion of item 9 of Schedule 3 to the Regulations in columns 4 and 5 is replaced by the following:

Item

Column 4

Unit Charge
($/pilotage unit)

Column 5


Basic Charge ($)

9

7.37

1,235.00

13 The portion of items 12 and 13 of Schedule 3 to the Regulations in columns 4 and 5 is replaced by the following:

Item

Column 4

Unit Charge
($/pilotage unit)

Column 5


Basic Charge ($)

12

2.92

749.00

13

5.59

474.00

14 The portion of item 15 of Schedule 3 to the Regulations in columns 2 and 3 is replaced by the following:

Item

Column 2

Flat Charge,
No Pilot Boat Used ($)

Column 3

Flat Charge,
Pilot Boat Used ($)

15

750.00

1,607.00

15 The portion of items 3 to 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

3

2,311.00

10.54

1,004.00

11.86

1,129.00

4

2,118.00

5.96

607.00

6.71

683.00

5

2,336.00

8.88

1,037.00

9.99

1,168.00

16 (1) The portion of paragraph 6(a) of Schedule 4 to the Regulations in columns 3 to 5 is replaced by the following:

Item

Column 3

Minimum
Charge ($)

Column 4

Unit Charge, No Pilot Boat Used
($/pilotage unit)

Column 5

Basic Charge,
No Pilot Boat Used ($)

6(a)

1,600.00

2.82

1,208.00

(2) The portion of paragraph 6(a) of Schedule 4 to the Regulations in columns 3 to 5 is replaced by the following:

Item

Column 3

Minimum
Charge ($)

Column 4

Unit Charge, No Pilot Boat Used
($/pilotage unit)

Column 5

Basic Charge,
No Pilot Boat Used ($)

6(a)

1,632.00

2.88

1,232.00

(3) The portion of paragraph 6(b) 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

6(b)

2,880.00

4.51

1,932.00

5.07

2,174.00

(4) The portion of paragraph 6(b) 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

6(b)

2,938.00

4.60

1,971.00

5.17

2,217.00

17 (1) The portion of item 7 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

7

2,118.00

5.96

607.00

6.71

683.00

(2) The portion of item 7 of Schedule 4 to the Regulations in column 9 is replaced by the following:

Item

Column 9

Budgeted Fuel Consumption (litres)

7

80

18 The portion of item 9 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

9

2,281.00

5.87

988.00

6.62

1,113.00

19 The portion of item 11 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

11

1,538.00

3.69

998.00

4.14

1,123.00

20 The portion of item 12 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
($/pilotage unit)

Column 5


Basic Charge,
No Pilot Boat Used ($)

Column 6

Unit Charge,
Pilot Boat Used
($/pilotage unit)

Column 7


Basic Charge,
Pilot Boat Used ($)

12

1,499.00

2.34

599.00

2.63

674.00

21 (1) The portion of item 13 of Schedule 4 to the Regulations in column 2 is replaced by the following:

Item

Column 2

Flat Charge ($)

13

496.00

(2) The portion of item 13 of Schedule 4 to the Regulations in column 2 is replaced by the following:

Item

Column 2

Flat Charge ($)

13

511.00

22 The portion of items 1 to 3 of Schedule 5 to the Regulations in columns 3 to 5 is replaced by the following:

Item

Column 3

Minimum
Charge ($)

Column 4

Unit Charge
($/pilotage unit)

Column 5


Basic Charge ($)

1

1,818.00

4.72

1,018.00

2

1,635.00

4.26

916.00

3

1,635.00

3.77

814.00

23 The portion of item 4 of Schedule 5 to the Regulations in column 2 is replaced by the following:

Item

Column 2

Flat Charge ($)

4

1,370.00

Coming into Force

24 (1) Subject to subsection (2), these Regulations come into force on February 1, 2019, but if they are registered after that day, they come into force on the day on which they are registered.

(2) Section 3, subsections 4(2) and 5(2), sections 6 and 8, subsection 9(2), sections 11 to 15, subsections 16(2), 16(4) and 17(1), sections 18 and 20, subsection 21(2) and sections 22 and 23 come into force on January 1, 2020.

SCHEDULE

(Section 10)

SCHEDULE 3

(Section 6)

Compulsory Pilotage Area — Trips Through
Item Column 1


Compulsory Pilotage Area
Column 2


Flat Charge, No
Pilot Boat Used ($)
Column 3


Flat Charge, Pilot
Boat Used ($)
Column 4


Unit Charge
($/pilotage unit)
Column 5


Basic Charge ($)
Column 6


Budgeted Fuel
Consumption
1 Miramichi (N.B.) n/a n/a 6.06 543.00 n/a
2 Restigouche (N.B.) (Zone A,
Dalhousie and Zone B,
Campbellton), N.B.
n/a n/a 8.98 2,100.00 n/a
3 Bay of Exploits
(Botwood and Lewisporte), N.L.
n/a n/a 12.79 1,215.00 n/a
4 Holyrood, N.L. n/a n/a 7.27 740.00 n/a
5 Humber Arm, N.L. n/a n/a 10.77 1,260.00 n/a
6 Placentia Bay, N.L. n/a n/a 5.64 2,415.00 600
7 St. John’s, N.L. n/a n/a 7.27 740.00 80
8 Stephenville, N.L. n/a n/a 11.71 1,112.00 n/a
9 Cape Breton (Zone A,
Sydney), N.S.
n/a n/a 7.19 1,205.00 108
10 Cape Breton (Zone B,
Bras d’Or Lake)
n/a n/a 10.95 1,761.00 108
11 Cape Breton (Zone C,
Strait of Canso), N.S.
n/a 1,985.00 n/a n/a 290
12 Halifax, N.S. n/a n/a 2.85 731.00 130
13 Pugwash, N.S. n/a n/a 5.43 460.00 n/a
14 Charlottetown, P.E.I. n/a n/a 3.56 362.00 n/a
15 Confederation Bridge, P.E.I. 735.00 1,575.00 n/a n/a n/a

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Atlantic Pilotage Authority (the Authority) is expected to ensure each of its 17 ports is financially self-sufficient. Given current and projected traffic volumes and vessel configurations, previously approved tariff rate increases for 4 ports in 2019 are expected to be unreasonably high. Alternatively, current tariff rates for 10 additional ports are expected to be too low by 2020. In addition, tariff adjustments are required to address other capital or operational needs and improve efficiency.

Background

The Authority is responsible for administering a safe and efficient pilotage service within the Canadian waters in and around the Atlantic Provinces. It prescribes tariffs for pilotage services that are fair and reasonable and that are consistent with generating revenues sufficient to permit the Authority to operate on a self-sustaining financial basis. The Authority is responsible for 17 compulsory pilotage areas, and the tariff revisions contained herein are intended to maintain port-by-port self-sufficiency (i.e. no cross-subsidization) as per a 1995 decision by the Canadian Transportation Agency.

Objectives

The objective of the amendments is to enable the Authority to meet its mandate to operate a safe and efficient pilotage service within the Atlantic region, while achieving financial self-sufficiency of individual ports (i.e. avoiding cross-subsidization).

Description

The changes are as follows:

  1. Elimination or reduction of previously approved charge increases in four ports coming into force on the day on which the relevant provisions of the amendments are registered: Strait of Canso, Pugwash, Placentia Bay, and Miramichi.
  2. Introduction of additional charges in two ports coming into force on the day on which the relevant provisions of the amendments are registered: pilot boat charges for Miramichi, and budgeted fuel consumption for St. John’s.
  3. Establishment of a “trip through” rate in 2019 for the compulsory areas of Bay of Exploits, Holyrood, Humber Arm, Placentia Bay, St. John’s, Stephenville, Sydney, Halifax, Pugwash, and Charlottetown that comes into force on the day on which section 10 of the amendments is registered.
  4. Increase of port-by-port tariffs for one-way trips, trips through, and movages in ten ports, effective January 1, 2020, as per the table below:

Port

Tariff Increase

(i) Bay of Exploits, N.L.

3.00%

(ii) Humber Arm, N.L.

3.00%

(iii) Pugwash, N.S.

3.00%

(iv) St. John’s, N.L.

2.50%

(v) Holyrood, N.L.

2.50%

(vi) Halifax, N.S.

2.50%

(vii) Sydney, N.S.

2.50%

(viii) Saint John, N.B.

2.50%

(ix) Confederation Bridge, P.E.I.

2.00%

(x) Placentia Bay, N.L.

2.00%

“One-for-One” Rule

The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs or burden to business.

Small business lens

The small business lens does not apply to the amendments given that the annual cost impact is expected to be well under $1 million. Regardless, the costs to small businesses are not disproportionately high, as the vast majority of the Authority’s users are not classified as small businesses.

Consultation

Consultations in various forms took place with the affected parties throughout 2018. Formal consultation sessions were held in Halifax, N.S. (May 7 and August 16, 2018), Port Hawkesbury, N.S. (May 16 and August 20, 2018), Saint John, N.B. (May 8 and August 17, 2018), and St. John’s, N.L. (May 15 and August 22, 2018). Participation varied in each port depending upon the makeup of local industry, but generally included shipowners and operators, agents, facility management, port authorities, and other stakeholders. Separate consultation sessions with the Shipping Federation of Canada, which represents foreign vessels and accounts for 77–79% of the Authority’s activity and revenue, were held in Halifax, N.S. (May 29, 2018) and Montreal, Que. (August 27, 2018). In addition to these formal consultation sessions, the Authority engaged stakeholders through other formats, including written, in-person, and telephone communications with individuals and groups.

Alternatives to tariff increases were presented, where applicable, and feedback from participants was encouraged. For various ports and districts, the alternative to increased tariff rates would be a reduction in pilot numbers or availability. Stakeholders have consistently indicated that their primary concerns are about service levels, and have requested that the number of pilots be increased in some areas, and maintained in others, so that pilot availability is not compromised. The amendments will address these concerns. Stakeholders have expressed their support for the amendments.

As required under subsection 34(1) of the Pilotage Act, these amendments were published in the Canada Gazette, Part I, on November 10, 2018, followed by a 30-day comment period to provide interested persons with the opportunity to make comments or to file a notice of objection with the Canadian Transportation Agency. No comments were received and no notices of objection were filed.

Rationale

1. Reductions to approved tariff increases in four ports in 2019

Scheduled rate increases were approved in 2018 and were to take effect on January 1, 2019. These increases were forecasted using 2016 data and 2017 forecasts. Given actual levels of traffic in 2017 and so far in 2018, the Authority believes that the approved increases can be lowered to provide industry with tariffs that are fair and reasonable, while still maintaining port-by-port financial self-sustainability.

2. Additional charges in two ports in 2019

3. “Trip through” rate across several ports in 2019

4. Tariff increases in 10 ports, effective January 1, 2020

Some of the same ports that are receiving a tariff decrease in 2019 are scheduled to receive a tariff increase in 2020. This is because without the decrease in 2019, the tariffs in these ports would be considered unreasonably high in comparison to recent increases in traffic. While the tariff decreases adjust for this additional traffic, future years (2020 onward) still require tariff increases to capture inflation and other strategic investments.

Implementation, enforcement and service standards

The Pilotage Act provides an enforcement mechanism for all regulations made by pilotage authorities. Pilotage authorities can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid. Any 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 $5,000. This amendment is expected to produce no change to these compliance and enforcement mechanisms.

Contact

Captain Sean Griffiths
Chief Executive Officer
Atlantic Pilotage Authority
TD Tower, Suite 1801
1791 Barrington Street
Halifax, Nova Scotia
B3J 3K9
Telephone: 902-426-2550
Fax: 902-426-4004