Order No. 1995-W-305

July 17, 1995

July 17, 1995

IN THE MATTER OF the Pilotage Act, R.S.C., 1985, c. P-14;

IN THE MATTER OF the proposed tariff of pilotage charges published by the Atlantic Pilotage Authority (hereinafter the Authority) in the Canada Gazette Part I edition of June 17, 1995; and

IN THE MATTER OF the notice of objection filed by the Shipping Federation of Canada.

File No. W 9250-2-9


WHEREAS a notice of objection to the proposed tariff of pilotage charges as published by the Authority has been filed with the National Transportation Agency (hereinafter the Agency);

AND WHEREAS the Agency is, pursuant to section 34 of the Pilotage Act, required to make an investigation of the tariff proposal against which a notice of objection has been filed;

AND WHEREAS the Agency, in the proper discharge of its investigation, requires certain information, particulars and documents relating to the operation and administration of the Authority.

NOW THEREFORE, IT IS ORDERED THAT:
Pursuant to section 18 of the National Transportation Agency General Rules, SOR/88-23:

  1. The Authority shall produce and file with the Agency, within thirty (30) days from the date of this Order, the tariff justification described in the attached Schedule "A" and all information, particulars and documents listed in the attached Schedule "B".
  2. The tariff justification described in Schedule "A" shall be copied to all objectors and interveners and the information, particulars and documents listed in Schedule "B", which are not considered to be of a confidential nature, shall be made available to, if requested by, the parties of record with the reproduction cost and delivery to be borne by the parties making the request.

SCHEDULE "A"

TARIFF JUSTIFICATION TO BE PROVIDED BY THE ATLANTIC PILOTAGE AUTHORITY

  1. Steps that have been taken by the Authority to improve efficiency of operations since the previous tariff investigation.
  2. An explanation of how the proposed tariff increases, which vary from 3 to 20 percent, in the compulsory pilotage areas were developed. An indication of whether the proposed increases were included in the 1995-1999 Corporate Plan of the Authority.
  3. An explanation of the following structural changes of the tariff proposal:

    a) the applicability of the proposed non-compulsory charges to all non-compulsory areas
    b) the replacement of a single trip charge at Restigouche by two zonal charges for a trip
    c) the rationale for the addition of a new Zone D at Canso
    d) the change in the through trip charge for Bras d'Or Lakes
    e) the rationale for changing movage charges in Placentia Bay, Sydney, Bras d'Or Lakes and Strait of Canso from a single charge to a combined unit and basic charge
    f) the significant increase in the basic component of the movage charge at St. John's
    g) the significant increase in the in-transit charge at Miramichi

  4. Estimates of revenues and expenses for the Authority as a whole and by port for 1995 and 1996 along with an explanation of how the projections of costs and revenues were prepared. An indication of when the proposed tariff is expected to be implemented and the impact this will have on revenue for each year. An assessment of what revenue and expenses would be without the proposed tariff increase.
  5. An assessment of the expected impact of the proposed tariff increases on vessels; i.e., large versus small. This should be illustrated with a few examples of typical sizes of vessels from the major ports.
  6. A description of the expense items that are expected to be covered by revenue from the new proposed basic charges as well as a description of expense items that are expected to be covered by revenue from unit charges. A comparison of projected expenses and revenue for 1995 using this breakdown; i.e., compare projected revenue from basic charges with the estimated costs that are expected to be covered by this portion of revenue; and similarly for revenue from unit charges. A comparison of minimum charges for small vessels with the cost of providing the pilotage service.
  7. Projections of the number of assignments by port for 1995 and 1996 along with projected pilot workload in each of these two years, along with an explanation of how these projections were prepared. A comparison of projected pilot workload and pilot productivity at Halifax, Saint John, the Cape Breton district and the St. John's District. Calculation of actual pilot workload by port for 1993 and 1994 showing assignments and number of pilots.
  8. rojections of pilot strength by port or district for 1995 and 1996 along with an indication of planned pilot retirements and recruitment of apprentice pilots. An indication of pilots on long term sick leave and the prospects of such pilots returning to work.
  9. Calculation of revenue and expenses per assignment by port for 1993 and 1994 using actual results as well as for 1995 and 1996 using projected results. Provide an explanation of any significant changes in average revenue or cost per assignment.
  10. Provide a comparison of average vessel size by port based on units per assignment for 1993, 1994 and using projected results for 1995 and 1996. Provide an explanation of any significant changes in average vessel size.
  11. A description of the methodology used to allocate pilot boat costs to non-compulsory areas when the pilot boat is used for combined compulsory/non-compulsory assignments at Halifax, St. John's and Come-by-Chance.
  12. A discussion of the results of the examination of the level of the minimum charge for vessel trips at Halifax.

SCHEDULE "B"

DOCUMENTS TO BE PROVIDED BY THE ATLANTIC PILOTAGE AUTHORITY

  1. Statement of Operations for the Authority as a whole and by port for 1993 and 1994.
  2. Projected Statement of Operations for the Authority as a whole and by port for 1995 and 1996.
  3. Annual Report to the Minister of Transport for 1993 and draft report for 1994.
  4. A copy of the Authority's most recent Corporate Plan.
  5. A copy of all policy statements or directives received from the Minister of Transport or Treasury Board since July 1993 to the present that relate directly to operational or financial matters of the Authority.
  6. A copy of any new collective agreements signed since July 1993 with the employee pilots.
  7. A copy of new entrepreneurial pilot agreements drawn up since July 1993.
  8. Unit Range Reports for 1993 and 1994.
  9. Pilot Workload Reports for 1993 and 1994.
  10. A statement of administration expenses for the Authority as a whole for 1993 and 1994 as well as projections for 1995 and 1996, and explanations for any material variance.
  11. Please provide details re: recall earnings and non-compulsory earnings of pilots at Halifax, Saint John and in the districts of Cape Breton and St. John's for 1992, 1993 and 1994.
  12. For the districts of Halifax, Saint John, Cape Breton and St. John's, daily pilotage assignments and daily number of pilots on duty for 1994; and, for each of these districts, the number of pilots on the payroll and the number of active pilots, by month, for 1992 and 1993.
  13. For the pilot boats owned and operated by the Authority, a breakdown of pilot boat expenses for each of 1993 and 1994.
  14. For the ports of Halifax, St. John's and Come-by-Chance, the number of assignments where pilot boats are used for combined compulsory/non-compulsory assignments for each of 1993 and 1994.
  15. A list of the pilot boats of the Authority and the districts/ports they serve, and the replacement schedules for these boats.
  16. Copies of pilot boat contracts covering the 1992 and 1994 period (inclusively), including a copy of the new contract for the district of St. John's. Indicate whether the contracts extend to the 1995 and 1996 forecast period and, if not, indicate planned contract renewal terms that would apply to these two years.
Date modified: