Ministry Role and Services

Ministry Overview

The Ministry of Transportation plans transportation networks, develops and implements transportation policies, provides transportation services, and administers various transportation-related acts and regulations.

To accomplish its mandate, the ministry:

• develops provincial transportation plans to integrate various modes of transportation, in conjunction with regional transportation advisory committees and the transportation related Crown corporations and commissions;
• works with partners and other levels of government to provide efficient low-cost public transit and coastal ferry services;
• builds highways to meet the economic and social needs of British Columbians;
• maintains existing highways to a high standard through contracts with privately-owned road maintenance providers;
• manages contracts for inland ferry operations; and
• licences and regulates commercial bus and taxi services through the Motor Carrier Commission (which was replaced by the Passenger Transportation Board in June 2004).

Primary Customers and Clients

The ministry works to meet the needs of:

• the travelling public;
• emergency responders, such as police, fire and ambulance services;
• businesses and business travellers;
• the tourism industry;
• trucking organizations;
• resource industries; and
• those applying for subdivision approvals and access to highways.

Partners in Transportation

The ministry works closely with other groups as it manages B.C.'s transportation network. These groups include:

• The federal government. The federal government provides capital funding for some provincial transportation infrastructure that serves a national interest, such as improvements to the Trans-Canada Highway, airports, border crossings and other gateways. The federal government is also responsible for roads through First Nations reserves and federal parks, and for many laws relating to marine and air travel.
• Local governments. The ministry works with local governments to ensure they have a voice in determining provincial transportation priorities and plans. Local governments are responsible for constructing and maintaining roads that primarily benefit local travellers.
• First Nations. The ministry works with First Nations groups to ensure they have input into provincial transportation decisions affecting their areas.
• TransLink. TransLink is the regional transportation authority for Greater Vancouver. It plans, finances and operates the region's transportation system, including major roads and public transit. The ministry co-ordinates its own transportation plans with TransLink and co-operates on projects that serve both a regional and provincial interest.
• Ministry of Forests. The Ministry of Forests manages a large network of forest service roads which connect forestry lands to the provincial highway system.
• Ministry of Public Safety and Solicitor General (MPSSG). The ministry shares weigh scale administration with MPSSG. The Ministry of Transportation is responsible for the operation of weigh scales, which includes the enforcement of vehicle weights, axle loading and dimensions; while MPSSG is responsible for inspections of vehicle safety and configuration, and load security.
• Insurance Corporation of British Columbia (ICBC). ICBC provides universal auto insurance to B.C. motorists. It is responsible for driver licensing, vehicle registration and licensing and commercial vehicle compliance. ICBC helps fund some improvements on provincial highways to reduce the risk of accidents. ICBC is a provincial Crown corporation under the jurisdiction of the Minister of Public Safety and Solicitor General.
• Law enforcement agencies. Traffic laws on provincial highways are enforced by the Royal Canadian Mounted Police or local police forces.
• Roadbuilders, consulting engineers and maintenance contractors. The ministry uses private sector companies to construct, improve and maintain provincial highways, allowing the public to benefit from competition and private sector innovation.
• British Columbia Ferry Services Inc. British Columbia Ferry Services Inc. has a 60-year contract with the provincial government to provide coastal ferry services. It is an independent, regulated and self-financing company created in response to the public's desire to have a ferry system free from political interference.
• British Columbia Railway Company. British Columbia Railway Company is Canada's third largest railway. It operates exclusively in British Columbia and has interline connections to all rail-served points in North America.
• Ports and airport authorities. Ports and airports in the province are overseen by independent authorities. The ministry ensures all such gateways are well served by the provincial highway system and may provide support for the expansion of key facilities.

Crown Corporations and Commissions

The Minister of Transportation is responsible for the following Crown corporations and commissions:

BC Transportation Financing Authority

The BC Transportation Financing Authority (BCTFA) is a provincial Crown corporation created by the Build BC Act to develop and maintain a comprehensive provincial transportation strategy, prioritize investments in the provincial highway system, promote cost-effective delivery and innovative financing of highway infrastructure, and increase the economic and social benefits derived from investments in transportation infrastructure. The purpose of the BCTFA, as set out in the act, is to plan, acquire, hold, construct, or improve transportation infrastructure throughout British Columbia.

The ministry is responsible for strategic planning across all transportation modes (road, rail, marine, air) and for the development and maintenance of B.C.'s highway system. The BCTFA holds the provincial highway assets and related lands, and finances investments in transportation infrastructure through dedicated fuel taxes and through borrowing.

The principles of prudent and transparent fiscal management and sustainable transportation financing are at the core of the mandate of the BCTFA. In February 2003, the government announced the first phase of a 10-year transportation investment plan and a 3.5 cents per litre motor fuel tax increase dedicated to financing the plan. These revenues flow directly — by legislation — to the BCTFA. Audited financial statements that demonstrate how these funds have been used can be found in Appendix 2.

BC Transit

BC Transit is a Crown corporation charged with providing public transit throughout the province, outside of the Greater Vancouver Regional District (GVRD). BC Transit provides planning, marketing, fleet and funding support for all public transit services in B.C., except in the Greater Vancouver region, which is the responsibility of TransLink. BC Transit's website is located at www.bctransit.com

Rapid Transit Project 2000

Rapid Transit Project (RTP) 2000 Ltd. is a provincially-held company incorporated under the Company Act. Its primary mandate is to design and construct the Millennium Line, which links Vancouver and New Westminster via the Broadway-Lougheed corridor. TransLink opened the Millennium Line on August 31, 2002. The project is continuing with the construction of one more station and guideway at Vancouver Community College, which is expected to be completed in early 2006. The RTP 2000 website is located at www.rapidtransit.bc.ca

British Columbia Railway Company

The British Columbia Railway Company is a commercial Crown corporation with three principal business units: BC Rail; BCR Properties; and BC Rail Partnership. In November 2003, legislation was approved which will permit agreements to facilitate the provision of rail freight and passenger services by third parties on lines owned by the Company. Pending approval of the transaction from the Federal Competition Bureau, an agreement will be in place that will allow CN Rail to provide rail freight services.

Motor Carrier Commission

The Motor Carrier Commission regulates commercial passenger carriers, such as taxis and buses. Every commercial passenger carrier that operates in British Columbia must hold a motor carrier licence, along with a motor carrier certificate and plate for each vehicle in the carrier's fleet. Commissioners examine applications for new and altered motor carrier licences. The Motor Carrier Commission's website is located at www.th.gov.bc.ca/mcc/mcc.htm.

Note: The Motor Carrier Commission was replaced by the Passenger Transportation Board when the Passenger Transportation Act was brought into force in June 2004.

Annual Reporting and Legislative Environment

The operations of the BC Transportation Financing Authority and the Motor Carrier Commission are covered in this report. Other Crown-owned entities mentioned above have prepared their own annual reports.

A description of the legislative environment under which the Transportation ministry and Crown corporations operate is provided in Appendix 1.

Ministry Vision, Mission and Values

Vision

A fully integrated transportation system that advances economic and social growth, and moves goods and people within British Columbia and to markets beyond.

Mission

• To create an integrated transportation network that incorporates all modes of transport, reflects regional priorities, and provides a strong foundation for economic growth.
• To maintain and improve the provincial highway system, ensuring the safe and efficient movement of people and goods provincially, nationally and internationally.

Values

• We respect regional and community goals and priorities.
• We are responsive to the needs of British Columbia business.
• We strive for excellence and innovation.
• We respect the people we serve and work with.

Values at Work

The ministry's values play an important role in guiding our everyday work.

We helped establish Regional Transportation Advisory Committees to make sure the ministry was kept up to date on community priorities. We are responding to the needs of business by cutting red tape by one-third. Excellence and innovation are now actively rewarded under the new contracts for maintaining British Columbia's roads and bridges. And to make sure we are treating our employees and customers with the respect they deserve, we regularly solicit their opinions and ideas for improvement.

Whenever ministry staff develops new policies, designs new projects or reviews past accomplishments, these values are the benchmark for success.

Ministry Operating Context

Organizational success can depend on the ability to scan, interpret and respond to the organization's environment. The transportation system is affected by pressures and trends worldwide. Effective planning and management of the transportation system requires the ministry to be aware of these pressures and trends and be ready to respond appropriately to them. Ministry staff monitors ongoing pressures and trends to identify the factors influencing demand for transportation services, the resources needed to meet that demand, and the implications for citizens, partners and stakeholders. This provides early warning to decision makers and the findings are incorporated into ministry strategies and planning processes, and risk management.

Pressures and Trends

• Economic development and population growth in British Columbia continue to increase the demand for transportation, especially in the more populous areas of the province. More vehicles are on the road and vehicles are being driven farther.
• External trade through transportation gateways continues to be a major component of the B.C. economy, dominated by trade with the United States. B.C. must continually compete by reducing transportation costs and improving access to international gateways. In the short-term, increased security issues have affected every border crossing in North America. However, B.C. must continue to facilitate cross-border traffic while remaining secure.
• Fluctuations in the price of oil affect the cost of oil-based products used by the ministry such as asphalt, primer, seal coat and crack sealant. For every dollar increase in the world price of crude oil, the ministry faces a corresponding cost pressure of approximately $900,000. These cost pressures are addressed by program reductions.
• Resource industries continue to need to control transportation costs to compete in world markets. Controlling such costs requires an integrated transportation system that links resource roads to processing facilities and moves goods on provincial highways and freight railways to interprovincial and international gateways.
• Road-based transport remains most people's preferred alternative for personal and work trips over short and medium distances.
• The use of heavier commercial trucks increases wear and tear on all highways and requires bridges to be stronger.
• Forest fires, flooding, slides, unusual snowfall and other natural events are dependent upon changing weather patterns, which could become more frequent or severe in the future.
• Funding available from public sources continues to lag behind the amount needed for transportation improvements to facilitate economic development and community growth.
• Aging infrastructure requires continued investment to keep B.C. competitive and, in some cases, to catch up on deferred investments from the past.
• The ministry's recent downsizing has increased its reliance on the private sector to deliver services, and has elevated the ministry's need to monitor contractor performance.

Risks and Effect

The ministry faces the following potential risks that may affect its capacity to deliver services and require it to find new ways to accomplish its goals:

• Wide variation in fuel prices due to world events may result in lower fuel usage, reducing the fuel tax revenues on which the ministry relies to fund needed infrastructure improvements.
• Potential partners (public and private) may not finance transportation improvements to the degree anticipated, thereby delaying improvements.
• Security concerns or trade protectionism may disrupt cross-border trade in spite of infrastructure improvements.
• Competition from gateways in other jurisdictions may draw existing business away from B.C. For example, cruise ships could change their base of operations from Vancouver to Seattle.
• Volatility in the price of building materials, such as steel, may create unanticipated cost pressures.
• Weather and related phenomena, such as slides, floods, avalanches and fire, likely will remain highly unpredictable and could cause major events that affect the transportation system.

Ministry Structure and Core Business Areas

The ministry's work is organized into five core business areas based on the commonality of role and purpose. The following outlines the programs, key functions and services the ministry provides, as well as the resources used in 2003/04 for each core business area. Some of these services are delivered through external partners, as described in the "Partners in Transportation" section of this report. The programs described here support the achievement of ministry goals, as further described in the "Performance Reporting" section of this report.

1) Highway Operations

Highway Operations staff keeps our existing highway network safe, reliable and in good repair. The ministry's highway operations are divided by geographic area into three regions: South Coast, Southern Interior and Northern. Each region is subdivided into districts and maintenance areas for more efficient administration.

The ministry's work in this core business area includes:

Maintenance and Traffic Operations

Activities in this area include:

• establishing and monitoring road and bridge maintenance contracts;
• regional and district operations;
• pavement marking;
• electrical maintenance;
• avalanche control; and
• rock slope stabilization.

Asset Preservation

Activities in this area include:

• road and bridge surfacing;
• bridge rehabilitation and replacement;
• safety improvements;
• minor betterments, such as guardrails; and
• weigh scale operations to ensure that heavy vehicles do not damage public roads.

Inland Ferries

The ministry either directly provides or contracts for ferry services on 14 fresh water routes to connect provincial highways.

Coquihalla Toll Administration

The ministry operates the toll booths on the Coquihalla Highway. Toll revenue goes into the provincial government's consolidated revenue fund, which is used to fund various government programs including the maintenance of the Coquihalla and other highways.

2003/04 Resource Summary — Highway Operations

2) Transportation Improvements

Managing and improving the province's transportation network requires careful planning, monitoring and direction, looking decades into the future. The ministry must ensure that the most pressing transportation needs in British Columbia are addressed first, so that the public's investment in transportation can bring as many benefits as possible. The Minister relies on advice of eight independent Regional Transportation Advisory Committees across the province to identify and prioritize transportation projects.

The ministry's work in this core business area includes:

Transportation Policy and Legislation

Transportation Policy and Legislation staff provides guidance on new ministry policies and legislation relating to transportation and highways.

Partnerships

Partnerships' staff works to reduce the cost of new highway facilities to taxpayers by:

• developing cost-sharing and alternative delivery partnerships with the private sector and other levels of government; and
• making efficient use of property under the ministry's jurisdiction, which may involve selling surplus property or exchanging it for highway construction services.

Planning, Engineering and Construction

Activities in this area include:

• transportation planning;
• development and monitoring of the ministry's capital program, which identifies new roads and bridges to be built;
• development of investment strategies, which are ways to address the public's transportation needs within available funding;
• quality management;
• engineering, survey and design;
• property acquisition for provincial highways;
• construction of provincial highways; and
• management of accesses, intersections and other connections to provincial highways.

2003/04 Resource Summary — Transportation Improvements

3) Motor Carrier Regulation

The ministry regulates the motor carrier industry to ensure public safety and a healthy industry. Motor carriers include commercial buses and taxis. This business area encompasses two operational units:

Motor Carrier Commission (MCC)

The MCC is an independent body that regulates the province's commercial passenger industry pursuant to the Motor Carrier Act. The MCC also issues licences for the interprovincial and international road transport of passengers, by delegation, under the Motor Vehicle Transport Act (Canada).

Motor Carrier Branch

This branch is the administrative arm of the MCC. It carries out investigations associated with motor carrier licence applications. Working with other agencies, the branch participates in compliance activities such as:

• road checks;
• the investigation of complaints; and
• random audits of the records of licensed motor carriers.

Note: With the replacement of the Motor Carrier Act by the Passenger Transportation Act and the resulting replacement of the Motor Carrier Commission by the Passenger Transportation Board, this core business area will be restructured in 2004/05.

2003/04 Resource Summary — Motor Carrier Regulation

4) Public Transportation

Public transit and coastal ferry services are vital to the economic and social health of many communities. Public transit consists of passenger transportation services, including services to the disabled, in various communities around the province. Coastal ferry services are an extension of the highway system, connecting islands on the B.C. coast with other islands and the mainland.

The provincial government supports public transportation services around the province with annual transfers of capital and/or operating funding to BC Transit, Rapid Transit Project 2000 and British Columbia Ferry Services Inc. The Public Transportation business area manages these transfers, and the associated amortization and debt servicing expenditures.

2003/04 Resource Summary — Public Transportation

5) Executive and Support Services

This business area supports all ministry programs, through:

• the minister's and deputy minister's offices;
• service planning, reporting and performance measurement;
• financial and administrative services;
• human resources;
• facilities management;
• information systems; and
• freedom of information, protection of privacy and records management.

2003/04 Resource Summary — Executive and Support Services

Update on New Era Commitments

The following table shows the status of New Era commitments that were outstanding at the beginning of 2003/04.