Small Commercial Vessel
Association
Ontario Region
CMAC Presentation/Domestic Vessel Regulatory Oversight
Committee
April 25, 2012
Honorable “CMAC” Members:
Background
We are a newly formed
group of Small Commercial Vessel Operators who would like to take this
opportunity to express a number of concerns on Federal regulations affecting
our industry. Our group is mostly comprised of Marine Contractors, Marina &
Taxi Boat operators, Tour operators, Property Managers, Camp operators &
Construction Support service providers.
Many of us have been
working on inland lakes across northern Ontario, including Georgian Bay, the
Muskoka Lakes and Parry Sound District for decades and in some cases generations.
Many of us possess considerable nautical skill & experience.
Construction is a
challenging and sometimes dangerous profession that requires significant
training and experience to safely execute work on Road Accessible projects.
When Construction and
the provision of related services occurs in water access locations using small
work boats , landing and deck barges to deliver personnel and materials to
offshore locations, it adds exponentially to the complexity and risk related to performing work safely .
Relevance of current SVCP regulations
to the Small Commercial Vessel Industry
We have observed that
most of the TC regulations based on the Canada Shipping Act 2001 as amended in
2007 ,appear to be aimed at larger ocean
going and great lakes cargo & charter vessels. Undoubtedly the new small
vessel inspection protocols and Blue Decal program were developed by TC staff
who are extremely well versed on vessels over 15 gross tons .They are perfectly
appropriate for larger vessels that have engine rooms well away from the helm
of the vessel ,and operated by multiple experienced crew . They are not
necessarily appropriate for small 6 & 8 meter vessels where the operator
can reach over the side of the boat to grab the dock or pier when landing. These
smaller vessels are certainly more maneuverable and easily controlled by a single
operator in most cases. The advertising on the TC website indicates that the
“Blue Decal” SVCP self inspection program is discretionary and vessel owners
may comply with the program on a voluntary basis. The problem is that
since the Canada Shipping Act 2001 was brought into law in 2007, the old
regulations are no longer in force. Therefore the only point of law and reference
for courts & insurance companies in case of a claim, are the new SVCP regulations.
TC seems to be “suggesting” we comply with the new regulation, but they are not
insisting on it? To operate outside these regulations would be extremely foolish.
How does SVCP affect
our insurance?
“The
SCVA is concerned about how insurance companies are or will react to operators
whose vessels do not comply with Transport Canada’s Small Vessel Compliance
Program (SVCP).Currently, insurance companies, that I contacted, are not requiring vessels be in compliance with the SVCP however they indicated that if these requirements were being strictly enforced, they may make compliance part of their underwriting criteria.
When asked about self inspections of vessels the insurance companies were reluctant to comment as they were not familiar with the criteria. By comparison; to qualify for automobile insurance, automobiles must have safety inspections completed. These must be completed by an authorized repair facility – there is no self inspection. Should the insurance companies make compliance with the SVCP mandatory, it is hard to say whether self inspections will be acceptable.
Some insurance companies require surveys be completed by a qualified marine surveyor on vessels that are over 10 years old. They also may require periodically updated surveys as the vessels age. Other insurance companies accept that the owner is being prudent about maintaining their vessels and only ask for details of their maintenance program. This could be the same with the SVCP.
In reviewing the insurance policy wordings, I did not find an exclusion specifically relating to compliance under the SVCP. This being said, should a major loss occur and it was deemed that the loss would not have occurred had the vessel been in full compliance of the SCVP, an insurance company may try to deny or limit the loss due to the non-compliance. Similarly, a claim on a vessel with outstanding marine survey recommendations that have not been completed may also be denied or limited.
In summary, the insurance companies have not made compliance with SVCP part of their underwriting criteria however experience tells me that, as they become more familiar with these regulations, they may very well be asking for confirmation of compliance before insuring small commercial vessels.”
Prepared by:
Tim Pawlowski, CCIB
Lackner McLennan Insurance Ltd.
423 King Street North, Waterloo, ON N2J 2Z5
It is our concern
that in situations where marine related accidents occur , our members ‘ insurance
providers will have a field day with “legal loopholes “ because many operators
will not be able to demonstrate that their vessels were in compliance with the
current regulations .
SCVA concerns about
our members’ ability to comply with SVCP
We believe Transport Canada’s
mandate and obligation is to protect “all”
vessels used by the public. The proposed changes to small commercial
vessels as stipulated in the SVCP guide appear to be an appropriate guideline
while designing & building all
vessels regardless of commercial or pleasure craft designation. Many of the measures
proposed would add significant expense and complexity to the design & construction
of the vessels, but the end result would yield a much safer vessel commensurate
with safe vessel construction and operating standards.
The current SVCP program, however, is
attempting to bring previously built and ill equipped vessels into conformity
with modern day standards, almost overnight. Even though the Canada Shipping
act was amended in 2001, it took 6 years to be passed into law in 2007.Since
2007 there have been a number of revisions to the Small Vessel Compliance
Program and it has not been adequately promoted to our industry. Most of what
we have heard has been by rumor. Over the last 45 days ,at the request of
groups of small vessel owners, Transport Canada
agreed to conduct a number of “town hall “ meetings to inform us of the
new SVCP and mandatory requirement for commercial vessel registration. As a
result of these meetings, our Small Commercial Vessel Association was formed in
an attempt to inform all parties concerned of their upcoming obligations. With
most of the affected vessel owners still unaware of the new regulations, and
only 65 days left until the June 30th deadline, we believe an
extension to the SVCP and Small Commercial Vessel Registration is in order.
The remedial actions proposed
in SVCP are in many cases extremely onerous or impossible from a retro fit perspective.
Most vessels have sealed floors, bulkheads and generally limited access to “below decks” spaces where access is required
to perform the required inspections and subsequent retro fits
to fuel and electrical systems, thereby making repairs extremely
difficult and expensive.
We believe many older, but
perfectly seaworthy vessels having “honest inspections” & having
significant remaining service life, will be prematurely sidelined .The cost of
the SCVP remedial action will exceed the market value of the vessel in many
cases. The bigger concern is that with implementation of SVCP self inspection,
many vessels will not undergo detailed inspections by a qualified inspector. The
Blue Decal Self Inspection program will not succeed in making vessels safer.
Public & Vessel Safety
needs to be considered before vessels are built so that appropriate systems can
be installed before decks, bulkheads and engine compartments are sealed.
SVCP imposes extreme financial
hardship on owners of vessels that were never designed to accommodate some of
the remedial safety measures proposed. The practical time for implementation of
the proposed safety protocols is before or during construction, not after.
Implementation of SVCP is
like building a house and completing interior and exterior wall finishes,
before attempting to design and install plumbing and electrical systems under a
massive retro fit.
SCVA has many concerns about
the current SVCP Guide but the most significant concerns are as follows.
1) Requirement for Fire detection and
Fire suppression systems on small commercial vessels. Ref. sections 82,83,84 of
SVCP
On large
vessels where engine rooms are far removed from the helm this is a vitally
important requirement , however on small vessels where the operator can see ,
hear and smell the engine and drive systems , it is unnecessary and onerously
expensive for vessel owners to install the required fire detection panel and
dual action rate of rise temperature detectors . If a fire starts, the operator
can smell the fire and detect the loss of power in the vessel due to the
introduction of smoke into the air intake.
One or
more standard issue fire extinguishers are already a requirement under carriage
regulations. The introduction of an easily accessible “engine compartment” fire extinguisher access port for use with
hand held fire extinguishers, is an excellent method of suppressing a fire
without opening the engine hatch and letting more oxygen into the engine space.
These fittings are, however, not readily available for retro fit, therefore
adequate time should be allowed in order for the industry to catch up with the
new regulations.
2)
Requirement for sealed engine
compartments Ref. Section 8 of SVCP
Once again, on larger vessels, this is an
appropriate strategy. On small commercial vessels, however, they were never
originally designed to have “sealed” engine compartments. Most small vessels
have their engines mounted just forward of the transom and many are covered
with an engine hatch designed to protect against human contact with moving
mechanical parts. They have necessary access to airflow under and around the
engine hatches in order to supply fresh air for combustion and cooling.
In most
cases the engine compartment is not sealed from the bilge areas ahead of the
engine.
It would
be a monumental and extremely expensive task to try and seal the engine
compartments of such vessels.
Because most of them are gasoline powered, the
additional ventilation provided by the aforementioned access to fresh air is an
extremely valuable asset because it keeps gasoline fumes from gathering in
these areas which could be ignited during start up of the engine.
3)
Standards for fuel systems, shut off,
connections, labeling & construction Ref. Sections 9,55,56,65 of SVCP
The current requirements for fuel shut off valves,
connections, labeling, and minimum construction standard of the tank is a
significant concern since all small vessels need to comply with these regulations.
We do not want to downplay the importance of safe fuel handling on vessels ,
however the requirement to comply with the aforementioned regulations is extremely difficult .From an inspection
perspective , visual access to the fuel tanks and systems is not available on
many existing vessels , as the tanks and lines are sealed below decks .
Fuel tanks and fuel delivery systems are
customized to fit available spaces on small vessels and
in many cases the fuel tanks have tapered
bottoms and shapes that are commensurate with the boat for which they were intended.
These
tanks are often buried below decks and behind bulkheads that are not easily
accessible for tank inspection or removal, and many of these “custom shaped”
fuel tanks will not comply with the ABYC standards for fuel tank construction.
This
means, vessel owners must remove the existing fuel tank, have a new one built
by an approved contractor, who must in turn have that unique fuel tank tested and
approved according to the ABYC standard.
This process would not only cost a fortune,
but the time required for approval and retrofit would sideline the vessel indefinitely.
4)
Stability testing on boats built
without capacity or conformity plate until 2011.Ref. Section 22 of SVCP
Discussion
: In the early days of boat building , Coast Guard Ship Safety and Transport
Canada had a requirement for a capacity or conformity plate to be mounted on
the transom of small vessels that were built according to an approved standard
.These plates defined safe working loads and numbers of passengers much like an
elevator capacity plate .We’re not sure why , but for the last few years,
Transport Canada did not require these plates to be affixed , and they were optional.
Today,
under the new requirements of the SVCP, vessels not equipped with Capacity and
or conformity plates must undergo a stability test. We recently hired a naval
architect to perform a stability test on a boat we had built and the cost was
over $2,000.
It seems
that this even applies to catamaran style sealed pontoon boats having a very
low center of gravity and is among the most stable of them all.
Many
children’s camps and other small organizations and use such vessels in
extremely sheltered waters on small lakes because of their stability , ease of
boarding , and affordability when compared with other small commercial vessels
. The new requirement for very expensive stability testing is simply not
appropriate for many of these vessels. It places an additional unrealistic economic
burden on the small vessel owners.
5)
Requirement for installation of instrumentation
and controls Ref. Section 74 of SVCP
Section
14 question 74 of the inspection check list at the back of the book asks “Are
instruments and controls permanently installed at every operating
position?"(SVR 735)
The correlating explanation for the
checklist found in the front of the book on page 14 of 18 item 74 says “Instruments and controls are to be provided
at all normal operating positions and shall include (IF
FITTED )…”
It then lists all the required gauges and equipment,
i.e. fuel, temperature oil pressure etc.
A vessel owner performing a vessel self inspection
would in most cases check off “YES” in the checklist because the guide is not
clear and offers the apparent option
of compliance by including the
words (IF FITTED).
This section is extremely misleading
because it creates a double standard and seems to indicate that the specified
list of required instruments is “discretionary”. By contrast, a qualified professional marine
surveyor would never approve a vessel not equipped with appropriate gauges.
In addition there is a requirement for “indicators
for steering equipment” under the list of appropriate inclusions of
instruments. The majority of existing vessels do not have steering indicators
at the helm and there does not appear to be any such requirement listed in the vessel
construction regulations?
In summary, there are many examples of
misleading information found in the SVCP guide and we would submit that the
current guide is not appropriate for use by the general public.
The average vessel owner will not be able
to comply with the provisions in the SVCP guide and therefore the checklists
that they complete will not be accurate. The only way to ensure a successful
inspection program is to appoint experienced marine surveyors and marine
mechanics to perform the inspections.
Small Vessel inspection stations could be
established at qualified marinas having federally and provincially licensed
professional staff.
This is the only way we will improve the
safety of these vessels and in turn promote public marine safety.
Previous & Current
Inspection Protocols
In previous years, a
small commercial vessel owner could request that a certified TC marine
inspector perform a survey of the vessel thereby giving the owner confidence
that their vessel was safe & sound for the intended use.
We do not understand
why Transport Canada has focused the majority of their efforts on ocean going
lake freighters and have discontinued inspection of Small Commercial Vessels ,
particularly when by TC’s own account more than 80% of commercial vessels in
this country are under 15 GT .
Transport Canada is
also responsible for Aviation, Rail and Road Transportation.
We do not see any
relaxation of inspection and accountability in these areas.
The provinces that
regulate vehicular transportation under the Highway Traffic Act have not moved
away from regular mandatory safety checks at vehicle inspection stations by
licensed mechanics.
Can you imagine how
unsafe our Skies, Railways & Highways would be and how many accidents and
litigation would ensue if pilots, railway personnel & vehicle operators
were asked to “self inspect” their own aircraft, Trains, cars and trucks without
mandatory regulatory controls?
The current self
inspection brochure and associated check list are simply too onerous and
confusing for the average operator. If left in place as is, most operators will
not be able to comply either because of confusion or affordability.
We believe that
Transport Canada should return to the previous “Ship Safety’ – “Vessel Safety” inspection
programs which was extremely helpful to vessel owners to ensure safety of these
vessels.
General concerns about the lack of
advertising and promotion of the new Regulations
We
submit that Transport Canada have not promoted the new Small Commercial Vessel
regulations to the public, specifically to small commercial vessel operators
since they were made law in 2007. We estimate there are approximately 10,000
small commercial vessels under 15 gross tons in Ontario alone. During a
Coroner’s inquest in 2007, a Transportation Safety Board representative
estimated there were over 50,000 thousand such vessels in Canada according to
the TC description of a “small commercial vessel”.
Since
that time, very little has been done to inform the public of the significant
changes in marine regulation.
As a
result, the majority of small vessel owners are unaware of their obligations
because they don’t realize they are designated commercial if using their boats for anything but pleasure.
June
30, 2012 is the deadline for registration of commercial vessels and the end of
the grace period for the previous Canada Shipping Act marine regulations.
Currently
there are an estimated 3,300 Vessels in the Transport Canada Commercial registry
for Ontario. We are unable to confirm exact numbers at this time but we
estimate that Transport Canada’s description of commercial vessels puts over 10,000
vessels in this category in Ontario as a whole.
How
will Transport Canada possibly be equipped to deal with an estimated 6,700 applications
for commercial marine registry in Ontario, along with tens of thousands of
applications all over the country before the June 30th 2012 deadline
for commercial vessel registration?
According
to Transport Canada’s vessel registration guidelines, Chapter 3, the fines for
unregistered vessels will be between $250 and $10,000 per day.
In
our experience the registration process for a small commercial vessel in Canada
will take a minimum of 3 months. In some cases it has taken up to 1 year. How
will TC deal with the backlog of unregistered vessels and how will they enforce
the new regulations?
The
only appropriate solution is for TC to issue a 12 month extension to the June
30, 2012 deadline, to at least 2014 to allow the public to catch up.
This
is one of the most economically challenging times in Canada and in the World.
The
last thing we need right now is to place an unfair economic burden on the
heavily taxed small business sector.
Summary of Concerns and Recommendations
·
Transport Canada should extend the
SVCP and Small Vessel Registration until adequate industry consultation has
taken place, and sufficient time is given the Small Commercial Vessel Industry
·
SVCP should be modified to include
mandatory inspection by a qualified federally sanctioned inspection facility
such as a marina. Private vessel owners are simply not equipped to deal
competently with the self inspection of their vessel.
·
Consideration should be given to the
definition of a small commercial vessel
·
Consideration should be given to an
increase in the minimum size for the designation of a vessel as commercial
·
Vessels used solely for the
transportation of a maximum of 6 passengers with light hand luggage should not
be treated the same as cargo vessels carrying lumber and freight
·
No commercial vessel should be
operated by an individual possessing a Pleasure Craft Operators Card because no
adequate level of competency or proficiency has been established by the PCOC
process.
·
The minimum standard for operation of
a small commercial vessel should be equal to a
modified MED A-3 which includes mandatory instruction of “cold water
boot camp”
·
Small commercial vessel personnel
training should be expanded to include a new designation with training focused
on the safe operation of small commercial cargo and passenger vessels. Current
MED-A-3 and SVOP programs are not well suited for operation of these vessels.
·
No vessel should receive a Blue Decal
or a Commercial Registration number unless the vessel complies with SVCP
Respectfully submitted by,
The Small Commercial Vessel
Association
Ontario Region
Sincerely
Armin Grigaitis,
President
