Decision No. 558-W-2002

October 16, 2002

File No. W9125/P5/02-21

P. F. Collins Customs Brokers Ltd, on behalf of Shanghia Zhenhua Port Machinery Co., Ltd. (hereinafter the applicant), applied to the Minister of National Revenue for a licence to operate the service set out in the title. The matter was referred to the Canadian Transportation Agency (hereinafter the Agency) on June 26, 2002.

The Agency conducted a search of the relevant portion of the marine industry and notice of the application was given on July 2, 2002. On July 4, 2002, Océan Transport Maritime Inc. (hereinafter Océan Transport) submits that it has Canadian equipment suitable and available to perform this activity at the dates mentioned. The applicant commented on this offer, and Océan Transport did not reply.

In its letter of July 4, 2002, Océan Transport states that the proposed activity could easily be performed using a tug and barge, and it offers its barge "OTM 3072". This barge is 300 feet in length, 72 feet wide, and 19 feet deep, with a hold capacity of 6,500 tonnes. It would be used in conjunction with the 5,280 BHP tug "Ocean Foxtrot".

On July 19, 2002, the applicant replied stating the features of the "ZHEN HUA 6" in comparison to a barge. This vessel is the most recent of six specially designed vessels built for the specific purpose of transporting container cranes. It is equipped with rails, high capacity pumps, a winch and an additional anchor, two winches located at the back to ensure the crane moves smoothly. Also, ten crewmen have been trained for this operation and are experienced and temporary bogies and other tools specific for this relocation are available. The applicant therefore submits that the "ZHEN HUA 6" is more mature in technology, more adequate in relocation equipment, more reasonable in human resources and more secure in crane loading/unloading than any other barges.

Océan Transport did not reply to the applicant's comments. However, in light of the information on file it appears that there are suitable Canadian vessels available for the work proposed, at the dates mentioned.

Pursuant to the Coasting Trade Act, the Agency's mandate is not to determine which vessel would represent the most suitable alternative or the most advanced technology. The Agency must determine if there is a suitable Canadian vessel or non-duty paid vessel available for the activity proposed in the application. When an offer for a Canadian vessel is received, it is up to the applicant to demonstrate that the vessel offered is not suitable or that it is not available.

In the present case, the applicant submits that the foreign vessel represents a more advanced technology, but did not prove that the Canadian vessel offered is not suitable for the proposed activity. The availability of this vessel was not discussed.

The Agency has, therefore, determined pursuant to subsection 8(1) of the Coasting Trade Act that there is a suitable Canadian ship available to provide the service or perform the activities described in the application.

This determination was provided to the Minister of National Revenue for any necessary action as provided for in the Coasting Trade Act.