4. Marine transportation

The CTA’s responsibility to keep the national transportation system running efficiently and smoothly includes the marine sector. The CTA:

  • Determines whether suitable Canadian ships are available for commercial services in Canadian waters, as required by the Coasting Trade Act. These services may otherwise be provided by foreign or non-duty paid ships upon request by a resident of Canada;
  • Maintains the guide to coasting trade for marine stakeholders;
  • Works in partnership with intragovernmental stakeholders on both policy issues and the administration of the coasting trade licensing program; and
  • Investigates and adjudicates complaints related to marine transportation services, including complaints about tariffs, tolls, charges and fees.

4.1 Coasting trade

Coasting trade refers to the use of a ship to carry out commercial marine activities within Canadian waters and is regulated under the Coasting Trade Act, which supports Canadian marine interests by reserving coasting trade, to the greatest extent possible for Canadian‑registered and duty‑paid ships.

Where no suitable Canadian ship is available, the legislation provides a process that allows a foreign or non‑duty‑paid ship to be temporarily authorized to perform the activity. In such cases, a person may apply for a coasting trade licence for that ship. As part of this process, the CTA may be called upon to determine whether a suitable and available Canadian ship exists before a licence can be issued.

While coasting trade licences themselves are issued by the Minister of Public Safety and Emergency Preparedness, the CTA’s specific roles in the process include:

  • Determining whether a suitable Canadian or non-duty-paid ship is available to perform the activity described in the application; and
  • If the application is for the passenger transportation, determining whether an identical or similar adequate marine service is offered.

When a Canadian‑registered ship is offered to perform the activity described in the application, the CTA acts as an independent quasi‑judicial decision‑maker to determine, on a balance of probabilities, whether a Canadian ship is suitable and available to perform the proposed activity.

Should the CTA determine that no suitable ship is available, the Minister of Public Safety issues the coasting trade licence. This licence authorizes the foreign or non-duty-paid ship to conduct commercial marine activity in Canadian waters for a maximum of 12 months.

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