Order No. 2004-W-391

September 10, 2004

September 10, 2004

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 Laurentian Pilotage Authority in the Canada Gazette Part I edition of July 31, 2004; and

IN THE MATTER OF a joint notice of objection filed by the Canadian Shipowners Association and the Chamber of Maritime Commerce; as well as a notice of objection filed by the Shipping Federation of Canada.

File No. W 9250-3-8


Notices of objection to the proposed tariff of pilotage charges as published by the Laurentian Pilotage Authority (hereinafter the Authority) have been filed with the Canadian Transportation Agency (hereinafter the Agency).

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.

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

Pursuant to section 18 of the National Transportation Agency General Rules, SOR/88-23:

  1. The Authority shall produce and file with the Agency, by September 24, 2004, the tariff justification described in the attached Schedule "A" and all information, particulars and documents listed in the attached Schedule "B"; and
  2. The tariff justification described in Schedule "A" shall be copied to the objectors and the information, particulars and documents listed in Schedule "B", which are not considered confidential, shall be made available, if requested, to the parties of record with the reproduction cost and delivery to be borne by the party making the request.

SCHEDULE "A"

TARIFF JUSTIFICATION TO BE PROVIDED BY THE LAURENTIAN PILOTAGE AUTHORITY

  1. Describe all financial and operational measures taken by the Authority from January 1, 2002 to the present to reduce costs and improve efficiency. Indicate whether changes have taken place in Authority Board planning sessions where negotiating strategies with pilot groups are discussed. Indicate whether any pilot workload studies were undertaken. As well, describe any initiatives taken by the Authority to reduce pilotage costs for the user industry.
  2. Explain in detail the consultations that the Authority held with parties in May and June of 2004; indicate whether the competitive environment faced by users was discussed; identify the parties that were consulted; describe the position of each party regarding a proposed tariff increase; and explain how the tariff proposal of a 4.00 percent rate increase for 2005 was developed following the consultations.
  3. Indicate the impact that the proposed rate increase is expected to have on revenue in 2005. Provide an assessment of what revenues and expenses would be in 2005 without the proposed tariff increase.
  4. Provide a comparison of actual administrative costs of the Authority for 2002, 2003 and the first six months of 2004 along with expected administrative costs for 2005. Explain any significant changes in annual administrative costs.
  5. Provide an update on the status of the risk assessments being carried out in accordance with the Ministerial directives of November 1999. Indicate the impact, if any, on the Authority's financial results of conducting the assessments.
  6. Discuss apprentice pilot recruitment and pilot retirements for each district since January 1, 2002 and indicate the impact this has had on overall pilot strength in the context of the comments from an objector that the level of service has declined in certain sectors.
  7. Provide an update on the status of the dispute with the District 1 pilot corporation over payments to the corporation for the final year of the 1999 to 2003 service contract. Indicate what financial impact the outcome of the dispute may have on the Authority's financial results. Indicate what the payments to the District 1 pilot corporation would be in the final year of the service contract based on the arbitrator's award and what the payments would be without the arbitrator's award. Describe how the Authority would make additional payments to the District 1 pilot corporation if necessary.
  8. Provide a description of the current service contracts with the Districts 1 and 2 pilot corporations as well as the collective agreement with District 1-1 pilots and indicate whether the contracts/agreement resulted from negotiation, mediation or arbitration. Describe what actions have been taken to reduce costs within the service contracts in accordance with comments made by the Authority at the hearing in November 2002. Indicate whether service contract provisions relating to the regulatory powers of the Authority have been removed in accordance with the Ministerial directives of November 1999.
  9. Provide the rationale for providing a new docking charge at the Saint-Lambert lock.

SCHEDULE "B"

DOCUMENTS TO BE PRODUCED BY THE LAURENTIAN PILOTAGE AUTHORITY

  1. Copies of the Authority's annual report to the Minister of Transport for each of the years 2002 and 2003.
  2. A copy of the Authority's most recent Corporate Plan.
  3. Summaries of actual revenues and expenses by District for each of the years 2002, 2003 and the first six months of 2004 along with a forecast of 2004 year-end revenues and expenses based on results from the first six months.
  4. Forecasts of revenues, expenses and capital expenditures, by District and for the Authority as a whole, for the year 2005.
  5. Number of pilotage assignments by type (movement, trip, anchorage, docking, undocking, detention, etc.), by District and for the Authority as a whole, for each of the years 2002, 2003 and the first six months of 2004 along with a forecast of total assignments for 2004 based on results from the first six months.
  6. Projections of pilotage assignments, by District and for the Authority as a whole, for the year 2005.
  7. For the pilot boats owned and operated by the Authority, annual pilot boat expenses by major expense category for each of the years 2002, 2003 and the first six months of 2004 along with a forecast of 2004 year-end pilot boat expenses based on the results from the first six months. Indicate the pilot boat charge levied on users in each of these years.
  8. For the pilot boats owned and operated by the Authority, forecasts of pilot boat expenses by major expense category for the year 2005. Indicate the expected pilot boat charge that will be levied on users in this year.
  9. Number of pilot boat trips (transshipments) for pilot boats owned and operated by the Authority and for each contracted pilot boat service for each of the years 2002, 2003 and the first six months of 2004.
  10. Copies of contracts drawn up between the Authority and pilot boat contractors covering the years 2002, 2003, 2004, and 2005, including the payments made to each contractor in each of 2002, 2003 and for the first six months of 2004 and projected payments for the remaining six months of 2004.
  11. Copies of service contracts drawn up between the Authority and the District 1 and 2 Pilot Corporations covering the years 2002, 2003, 2004 and 2005, including the annual payments made to each pilot corporation in 2002, 2003 and for the first six months of 2004, as well as the projected payments for the remaining six months of 2004; and the projected payments to each corporation in 2005.
  12. Copies of the collective agreements drawn up between the Authority and the employee pilots of District 1-1 covering the years 2002, 2003, 2004, and 2005.
  13. For each District, the number of active pilots on duty, the number of apprentice pilots and the number of pilot retirements for each of the years 2002, 2003, and for the first six months of 2004. The projected number of active pilots on duty, pilot recruitments and retirements for the whole of 2004.
  14. For each District, the expected number of active pilots on duty, of apprentice pilots and of pilot retirements for the year 2005.
Date modified: