Registration
SOR/2008-29 January 31, 2008

PILOTAGE ACT

Regulations Amending the Atlantic Pilotage Authority Regulations

P.C. 2008-0185 January 31, 2008

Whereas the Atlantic Pilotage Authority, pursuant to subsection 20(3) of the Pilotage Act (see footnote a), published in the Canada Gazette, Part I, on October 20, 2007, a copy of the proposed Regulations Amending the Atlantic Pilotage Authority Regulations because the Authority proposed to make certain portions of those Regulations under paragraph 20(1)(a) of that Act;

And whereas more than 30 days have expired after the date of publication and no notices of objection to the proposed Regulations were filed with the Minister of Transport, Infrastructure and Communities pursuant to subsection 21(1) of that Act;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, Infrastructure and Communities, pursuant to subsection 20(1) of the Pilotage Act (see footnote b), hereby approves the annexed Regulations Amending the Atlantic Pilotage Authority Regulations, made on December 6, 2007 by the Atlantic Pilotage Authority.

REGULATIONS AMENDING THE ATLANTIC PILOTAGE AUTHORITY REGULATIONS

AMENDMENTS

1. The Atlantic Pilotage Authority Regulations (see footnote 1) are amended by adding the following after subsection 4(2.4):

(2.5) Despite subsection (1), a ship that is less than 15 000 gross tons is not subject to compulsory pilotage within the portion of the Voisey’s Bay compulsory pilotage area described in paragraph 2(a) of Part II of the schedule (Zone A, Outer).

2. The schedule to the Regulations is amended by replacing the reference “(s. 3)” after the heading “SCHEDULE” with the reference “( Section 3 and subsections 4 (2.1) , (2.2) , (2.4) and (2.5))”.

3. Part II of the schedule to the Regulations is amended by adding the following after item 1:

Voisey’s Bay Compulsory Pilotage Area

2. The Voisey’s Bay compulsory pilotage area consists of the following areas:

(a) Voisey’s Bay compulsory pilotage area (Zone A, Outer), which consists of all the navigable waters within a line drawn from a position at Latitude 56°20′00″ N, Longitude 60°30′00″ W, to a position at Latitude 56°26.5′00″ N, Longitude 61°10′00″ W, thence to a position at Latitude 56°22.7′00″ N, Longitude 61°10′00″ W, thence to a position at Latitude 56°17.5′00″ N, Longitude 60°30′00″ W, and thence to the point of commencement; and

(b) Voisey’s Bay compulsory pilotage area (Zone B, Inner), which consists of all the navigable waters adjacent to Akuliakatak Peninsula between Latitudes 56°22.7′00″ N and 56°26.5′00″ N and west of Longitude 61°10′00″ W.

COMING INTO FORCE

4. These Regulations come into force 90 days after the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Background

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, including the waters of Chaleur Bay in the province of Quebec, south of Cap d’Espoir.

In accordance with section 20 of the Pilotage Act, an Authority may, with the approval of the Governor in Council, make regulations necessary for the attainment of its objectives.

In 1998, Parliament passed the Canada Marine Act which, among other things, added section 53 into the Pilotage Act. This section required the Minister of Transport to review certain issues related to marine pilotage. The Minister appointed the Canadian Transportation Agency (CTA) to undertake a Ministerial Review of Outstanding Pilotage Issues. The CTA Report contained 21 recommendations. In 1999, the Minister accepted all the recommendations in principle and instructed each pilotage authority on the specific actions required.

Recommendation No.1 of the Ministerial Review called for the adoption of a risk-based methodology to be used for the designation or reassessment of compulsory pilotage areas. Transport Canada (TC), in co-operation with the pilotage authorities, developed the Pilotage Risk Management Methodology (PRMM) for this purpose.

The Authority has been monitoring the development of the Voisey’s Bay nickel mine since the late 1990’s. In 2004, the Authority hired a facilitator to conduct a risk study using the PRMM in order to assess whether pilotage for the water approaches to Edwards Cove in Anaktalak Bay (also known as Akuliakatak Peninsula), Labrador, should become compulsory. Edwards Cove is the port used by Voisey’s Bay Nickel Company to provision the mine site and to ship the ore for further processing. The PRMM was conducted during late 2004 and early 2005, and the facilitator’s report was submitted to the Authority in June 2005.

The report was sent to stakeholders for their comments prior to review by the Board of the Authority. As a result of comments received, a decision was made to have an independent assessment of the process undertaken by an individual with both legal and marine qualifications. This assessor was also familiar with the process, having acted as a facilitator on a prior risk study. The assessor worked with the facilitator, corresponded and met with stakeholders, reviewed all documentation, and prepared a report to the Authority. Upon receiving the assessor’s report in late 2005, the Board of the Authority determined that the water approaches to Edwards Cove in Anaktalak Bay would require compulsory pilotage (hereafter referred to Voisey’s Bay compulsory pilotage area).

Since the decision to make the area compulsory, the Authority has been working with the stakeholders in the area to determine the logistics required to provide pilotage service in this remote location. After several consultations, it was determined that the best course of action would be to have a compulsory pilotage corridor along the southern surveyed approach channel leading into Edwards Cove. Furthermore, it was determined that, for the inner zone (Zone B), which begins in the vicinity of the east side of Kugyautak Island and extends to Edwards Cove, all ships that are currently subject to compulsory pilotage under the Atlantic Pilotage Authority Regulations would also be subject to compulsory pilotage in that zone. However, in the outer zone (Zone A), ships that are less than 15 000 gross tons would not be subject to compulsory pilotage. This arrangement would mean that the majority, if not all, of the ships that have been provisioning the communities north of Edwards Cove for many years would not be subject to compulsory pilotage.

Due to the remote location of this new compulsory pilotage area, it will be necessary for pilots to board at the ships’ point of origin or some other accessible area. It is not anticipated that pilot boat service will be available in this compulsory pilotage area.

Description

The amendments to the Atlantic Pilotage Authority Regulations (the Regulations) are:

a. An item 2 in Part II of the Schedule to the Regulations is inserted, with a paragraph (a) outlining the co-ordinates for Zone A - Outer area and a paragraph (b) outlining the co-ordinates for Zone B - inner zone of the Voisey’s Bay compulsory pilotage area; and

b. Section 4 of the Regulations is amended by adding a subsection (2.5) to exclude ships that are less than 15 000 gross tons from being subject to compulsory pilotage in Zone A – outer zone of the Voisey’s Bay compulsory pilotage area.

The amendments to the Atlantic Pilotage Authority Tariff Regulations, 1996 are intended to reflect the cost structure employed in hiring navigation advisors in this area. Navigation advisors receive a per diem amount for each day that they are employed either on board the vessel or in travel status when providing service into the Voisey’s Bay area. The tariff for the new compulsory pilotage area will provide approximately the same level of compensation to a pilot conducting a ship in the Voisey’s Bay compulsory pilotage area as that of a navigation advisor.

The amendments are not expected to have a significant operational or financial impact on the Authority’s activities.

Alternatives

The Authority could have allowed the area to remain at the status quo. However, with the area remaining non-compulsory, there would be no obligation for a ship to take a pilot in this environmentally sensitive area. Even if a ship was to use a navigation advisor, there is no obligation to use one with local knowledge. This option was rejected.

The decision to designate these waters as compulsory was taken after a thorough and comprehensive pilotage risk study was completed and reviewed by an independent assessor. The PRMM process had wide-ranging input from many stakeholders and interested parties, and risks and issues were identified. The Authority considers the establishment of the Voisey’s Bay compulsory pilotage area to be the best alternative to provide safe navigation and protect the environment.

Benefits and c osts

The amendments will result in a modest increase in revenue from tariffs. However, most of the revenue will be expended in the form of pilotage fees paid to the pilots performing the assignments. It is not expected that the revenue derived from this area will have a significant financial impact on the Authority.

The shippers using the pilotage service will see a modest increase in cost because of the new pilotage tariff for Voisey’s Bay. Shippers can mitigate these costs by exercising their existing option to have qualified masters and mates obtain pilotage certificates.

Under the amendments, the operators of ships calling in Voisey’s Bay will benefit from the assurance that a licensed pilot or pilotage certificate holder would be on board. The residents of the area will benefit from knowing that only licensed pilots or pilotage certificate holders will have the conduct of large vessels calling at Edwards Cove.

Environmental Impact

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a Strategic Environmental Assessment (SEA) of these amendments were conducted in the form of a preliminary scan. The SEA concluded that these amendments will not have any impact on the environment, and, in fact, should improve safety with the provision of a pilotage service.

Consultation

The Authority, through the PRMM process, consulted widely with various stakeholders over several meetings. They included Voisey Bay Nickel Company, the Canadian Coast Guard, FEDNAV Limited, Labrador Inuit Association, and the Canadian Marine Pilots Association. Prior to beginning the process, 22 organizations were contacted by letter to inform them of the PRMM that was about to commence and to invite their participation. Two other stakeholders were identified and notified at a later date. After the PRMM process was completed, the participants were approached by the Authority for their comments on the report, and the assessor contacted many stakeholders in preparing his report. The Authority continued to consult with interested parties throughout the process of developing these regulations. The industry and local population are supportive of compulsory pilotage.

These amendments were pre-published in the Canada Gazette, Part I, on October 20, 2007 and no comments were received.

Compliance and e nforcement

Sections 45, 47 and 48 of the Pilotage Act provide the necessary compliance and enforcement mechanisms with respect to the regulatory requirements for the provision of pilots

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

Footnote a
 R.S., c. P-14

Footnote b
 R.S., c. P-14

Footnote 1
 C.R.C., c. 1264

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