Canada Marine Act

This Act may be cited as the Canada Marine Act.

The definitions in this subsection apply in this Act.

Agency means the Canadian Transportation Agency continued by subsection 7(1) of the Canada Transportation Act. (Office)

federal immovable has the same meaning as in section 2 of the Federal Real Property and Federal Immovables Act; (immeuble fédéral)

federal real property has the same meaning as in section 2 of the Federal Real Property and Federal Immovables Act; (bien réel fédéral)

fees includes harbour dues, berthage and wharfage, as well as duties, tolls, rates and other charges, but does not include payments made under a lease or licence agreement. (droit)

goods includes personal property and movables, other than ships. (marchandises)

Minister means the Minister of Transport. (ministre)

owner includes

in the case of a ship, the agent, charterer by demise or master of the ship; and

in the case of goods, the agent, sender, consignee or bailee of the goods, as well as the carrier of the goods to, on, over or from any real property or immovables to which this Act applies. (propriétaire)

person includes a partnership, an association and a body corporate. (personne)

port authority means a port authority incorporated or continued under this Act. (administration portuaire)

port facility means a wharf, pier, breakwater, terminal, warehouse or other building or work that is located in, on or adjacent to navigable waters that is used in connection with navigation or shipping, land incidental to its use and any land adjacent to navigable waters that is used in connection with navigation or shipping. (installation portuaire)

public port means a port designated as a public port under section 65. (port public)

public port facility means a port facility designated as a public port facility under section 65. (installations portuaires publiques)

Seaway means the deep waterway between the port of Montreal and the Great Lakes that is constructed and maintained pursuant to the Agreement between Canada and the United States providing for the development of navigation and power in the Great Lakes-St. Lawrence Basin, dated March 19, 1941, including the locks, canals and facilities between the port of Montreal and Lake Erie and generally known as the St. Lawrence Seaway. (voie maritime)

ship means every description of vessel, boat or craft designed, used or capable of being used solely or partly for marine navigation, whether self-propelled or not and without regard to the method of propulsion, and includes a sea-plane and a raft or boom of logs or lumber. (navire)

Unless a contrary intention appears, words and expressions used in this Act have the same meaning as in the Canada Business Corporations Act.

[Repealed, 2024, c. 30, s. 16]

In recognition of the significance of marine transportation to Canada and its contribution to the Canadian economy, the purpose of this Act is to

implement marine policies that provide Canada with the marine infrastructure that it needs and that offer effective support for the achievement of national, regional and local social and economic objectives and will promote and safeguard Canada’s competitiveness and trade objectives;

promote the success of ports for the purpose of contributing to the competitiveness, growth and prosperity of the Canadian economy;

base the marine infrastructure and services on international practices and approaches that are consistent with those of Canada’s major trading partners in order to foster harmonization of standards among jurisdictions;

ensure that marine transportation services are organized to satisfy the needs of users and are available at a reasonable cost to the users;

provide for a high level of safety and environmental protection;

provide a high degree of autonomy for local or regional management of components of the system of services and facilities and be responsive to local needs and priorities;

manage the marine infrastructure and services in a commercial manner that encourages, and takes into account, input from users and the community in which a port or harbour is located;

provide for the disposition, by transfer or otherwise, of certain ports and port facilities; and

promote coordination and integration of marine activities with surface and air transportation systems.

The definitions in this section apply in this Part.

airport means an airport situated in a port. (aéroport)

letters patent means letters patent as amended by supplementary letters patent, if any. (lettres patentes)

port means the navigable waters under the jurisdiction of a port authority and the real property and immovables that the port authority manages, holds or occupies as set out in the letters patent. (port)

user, in respect of a port, means a person that makes commercial use of, or provides services at, the port. (utilisateur)

This Part applies to every port authority set out in the schedule and to every port authority for which letters patent of incorporation are issued or that has been continued under this Part and that has not been dissolved.

The Minister may, by regulation, amend the schedule.

Subject to subsection (3), a port authority is an agent of Her Majesty in right of Canada only for the purposes of engaging in the port activities referred to in paragraph 28(2)(a).

A wholly-owned subsidiary of a port authority is not an agent of Her Majesty in right of Canada unless, subject to subsection (3),

it was an agent of Her Majesty in right of Canada on June 10, 1996; and

it is an agent of Her Majesty in right of Canada under an enactment other than this Act.

A port authority or a wholly-owned subsidiary of a port authority may not borrow money as an agent of Her Majesty in right of Canada.

The Minister may issue letters patent — that take effect on the date stated in them — incorporating a port authority without share capital for the purpose of operating a particular port in Canada if the Minister is satisfied that the port

is, and is likely to remain, financially self-sufficient;

is of strategic significance to Canada’s trade;

is linked to a major rail line or a major highway infrastructure; and

has diversified traffic.

The letters patent shall set out the following:

the corporate name of the port authority;

the place where the registered office of the port authority is located;

the navigable waters that are within the port authority’s jurisdiction;

the federal real property and federal immovables under the management of the port authority;

the real property and immovables, other than the federal real property and federal immovables, held or occupied by the port authority;

the number of directors, between seven and eleven, to be appointed under section 14, to be chosen as follows:

one individual nominated by the Minister,

one individual appointed by the municipalities mentioned in the letters patent,

one individual appointed by the province in which the port is situated, and, in the case of the port wholly or partially located in Vancouver, another individual appointed by the Provinces of Alberta, Saskatchewan and Manitoba acting together, and

the remaining individuals nominated by the Minister in consultation with the users selected by the Minister or the classes of users mentioned in the letters patent;

a code of conduct governing the conduct of the directors and officers of the port authority;

the charge on the gross revenues of the port authority, or the formula for calculating it, that the port authority shall pay each year to the Minister on the day fixed by the Minister to maintain its letters patent in good standing;

the extent to which the port authority and a wholly-owned subsidiary of the port authority may undertake port activities referred to in paragraph 28(2)(a) and other activities referred to in paragraph 28(2)(b);

the maximum term of a lease or licence of federal real property or federal immovables under the management of the port authority;

the limits on the authority of the port authority to contract as agent for Her Majesty;

the limits on the power of the port authority to borrow money on the credit of the port authority for port purposes or a code governing that power, as the case may be; and

any other provision that the Minister considers appropriate to include in the letters patent and that is not inconsistent with this Act.

Letters patent are not regulations within the meaning of the Statutory Instruments Act, but shall be published in the Canada Gazette and are valid with respect to third parties as of the date of publication.

Any provisions of letters patent relating to the extent to which a port authority may undertake activities referred to in paragraph 28(2)(b) shall be approved by the President of the Treasury Board and the Minister of Finance before the letters patent are issued.

Any provisions of letters patent relating to limits on a port authority’s power to borrow money on its credit for port purposes shall be approved by the Governor in Council, on the recommendation of the Minister and the Minister of Finance, before the letters patent are issued.

The Minister may, either on the Minister’s own initiative and after giving notice of the proposed changes to the board of directors, or when the board of directors has, by resolution, requested it, issue supplementary letters patent amending the letters patent of a port authority if the Minister is satisfied that the amendment is consistent with this Act, and the supplementary letters patent take effect on the date stated in them.

Notice must be given in writing and set out a time limit within which the board of directors may comment to the Minister regarding the proposed changes.

If the Minister is satisfied that the criteria set out in subsection 8(1) are met, the Minister may issue in respect of one or more harbour commissions established under the Harbour Commissions Act, letters patent continuing the harbour commission as a port authority that set out the information required by subsection 8(2).

On the day on which the letters patent are issued, the harbour commission becomes a port authority and the Harbour Commissions Act ceases to apply.

The rights and obligations of a port authority that was one or more harbour commissions immediately before letters patent were issued are as follows:

the corporate name of the port authority is substituted for that of the harbour commission in every contract, collective agreement, lease, licence, permit or other document entered into or granted by the harbour commission with regard to the port;

the management of the federal real property and federal immovables set out in the letters patent, and any rights related to them, is conferred on the port authority;

the real property and immovables, other than federal real property and federal immovables, that the harbour commission occupied or the title to which it held, whether or not in its own name, and that are set out in the letters patent, and any rights related to them, become the interest, property and rights of the port authority, as the case may be;

the personal property or movable, and any rights related to it, that the harbour commission manages, or the title to which it holds, on behalf of Her Majesty in right of Canada, whether or not in its own name, become the property and rights of the port authority;

an existing cause of action, proceeding or claim by or against the harbour commission or a liability or other obligation of the harbour commission is unaffected except that any judgment or order is to be satisfied first by the port authority;

a civil, criminal or administrative action or proceeding pending by or against the harbour commission may be continued only by or against the port authority; and

subject to paragraph (e), a conviction against, or a ruling, order or judgment in favour of or against, the harbour commission may be enforced only by or against the port authority.

The commissioners of a harbour commission continued under subsection 10(1) cease to hold office on the day referred to in section 18 and have no right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any servant or agent of Her Majesty for ceasing to hold office by virtue of this Part.

A port authority set out in an item of Part 1 of the schedule is automatically continued or deemed to be incorporated under section 8 on the day on which that item comes into force and the Minister shall issue to it letters patent that set out the information required by subsection 8(2).

The rights and obligations of a port authority referred to in subsection (1) that was one or more harbour commissions immediately before the coming into force of this subsection are governed by subsection 10(3).

The rights and obligations of a port authority referred to in subsection (1) that was, immediately before the coming into force of this subsection, a local port corporation established under the Canada Ports Corporation Act are as follows:

the corporate name of the port authority is substituted for that of the local port corporation in every contract, collective agreement, lease, licence, permit or other document entered into or granted by the local port corporation, the Canada Ports Corporation or any of their predecessors in respect of the port;

the real property and immovables, and any rights related to them, that the local port corporation administers, or the title to which it holds, on behalf of Her Majesty in right of Canada, whether or not in its own name, remain the property and rights of Her Majesty;

the management of the federal real property and federal immovables set out in the letters patent, and any rights related to them, is conferred on the port authority;

the personal property or movable, and any rights related to it, that the local port corporation administers, or the title to which it holds, on behalf of Her Majesty in right of Canada, whether or not in its own name, become the property and rights of the port authority;

an existing cause of action, proceeding or claim by or against the local port corporation or liability or other obligation of the local port corporation is unaffected except that any judgment or order is to be satisfied first by the port authority;

a civil, criminal or administrative action or proceeding pending by or against the local port corporation may be continued only by or against the port authority; and

subject to paragraph (e), a conviction against, or a ruling, order or judgment in favour of or against, the local port corporation may be enforced only by or against the port authority.

The rights and obligations of a port authority referred to in subsection (1) that was, immediately before the coming into force of this subsection, a non-corporate port within the meaning of the Canada Ports Corporation Act are as follows:

the corporate name of the port authority is substituted for that of the Canada Ports Corporation or any of its predecessors in every contract, collective agreement, lease, licence, permit or other document entered into or granted by the Canada Ports Corporation or any of its predecessors in respect of the port;

the real property and immovables, and any rights related to them, that form part of the port and that the Canada Ports Corporation administers, or the title to which it holds, on behalf of Her Majesty in right of Canada, whether or not in its own name, remain the property and rights of Her Majesty;

the management of the federal real property and federal immovables set out in the letters patent, and any rights related to them, is conferred on the port authority;

the personal property or movable, and any rights related to it, that relate to the port and that the Canada Ports Corporation administers, or the title to which it holds, on behalf of Her Majesty in right of Canada, whether or not in its own name, become the property and rights of the port authority;

an existing cause of action, proceeding or claim by or against the Canada Ports Corporation in respect of the port or a liability or other obligation of that Corporation in respect of the port is unaffected except that any judgment or order is to be satisfied first by the port authority;

a civil, criminal or administrative action or proceeding pending by or against the Canada Ports Corporation in respect of the port may be continued only by or against the port authority; and

subject to paragraph (e), a conviction against, or a ruling, order or judgment in favour of or against, the Canada Ports Corporation in respect of the port may be enforced only by or against the port authority.

For the purposes of subsection (4), the Minister may fix the limits of a non-corporate port that is to be managed by a port authority and settle any question that arises in respect of the property, rights or obligations of the port authority.

The directors or commissioners of the bodies that become port authorities under section 12 cease to hold office on the day referred to in section 18 and have no right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any servant or agent of Her Majesty for ceasing to hold office by virtue of this Part.

Neither the port authority nor Her Majesty in right of Canada is bound by any severance agreement entered into between a predecessor of the port authority and any of its officers after December 1, 1995.

The Governor in Council may remove any director of an amalgamating port authority during the period that begins on the day on which the Governor in Council requires the amalgamation and ends on the day before the day on which the amalgamation takes effect.

Subsection 14(2.3) does not apply to a director of an amalgamating port authority who holds office on the day on which the Governor in Council requires the amalgamation.

A fee that is in force in respect of a port on the day on which an amalgamation takes effect continues in force for a period that ends on the earlier of the expiry of six months and the day on which it is replaced by a fee fixed under subsection 49(1).

The directors of a port authority shall be appointed as follows:

the Governor in Council appoints one individual nominated by the Minister;

the municipalities mentioned in the letters patent appoint one individual;

the province or provinces mentioned in the letters patent appoint one or two individuals as mentioned in the letters patent; and

the Governor in Council appoints the remaining individuals nominated by the Minister in consultation with users selected by the Minister or the classes of users mentioned in the letters patent.

The Governor in Council may appoint a director under paragraph (1)(b) or (c) who has been nominated by the Minister if the position has been vacant for more than one year.

Directors are appointed to hold office for any term of not more than three years that will ensure as far as possible the expiry in any one year of the terms of office of not more than one half of the directors, the terms being renewable twice only.

A director shall serve no more than nine consecutive years on the board.

A director’s appointment made by a municipality or province takes effect on the day on which notice of the appointment is received by the port authority.

Subject to subsection (2.1), if a successor has not been appointed at the expiry of a director’s term, the director continues to hold office until their term is renewed or their successor is appointed.

Subject to subsection (2.1) and despite subsection (2), the term of office of a director appointed under subsection (1.1) to fill a vacant position under paragraph (1)(b) or (c) expires on the day on which a director is appointed under that paragraph.

No person is eligible to be appointed as a director within twelve months after the expiration of their term or renewed term.

The directors are appointed to serve part-time.

The board of directors shall fix the remuneration of the directors, the chairperson and the chief executive officer.

Subject to the letters patent, a majority of the directors in office constitutes a quorum at any meeting of directors and a quorum of directors may exercise all the powers of the directors.

The directors of a port authority appointed under any of paragraphs 14(1)(a) to (c) shall have generally acknowledged and accepted stature within the transportation industry or the business community.

The directors of a port authority appointed under paragraph 14(1)(d) shall have generally acknowledged and accepted stature within the transportation industry or the business community and relevant knowledge and extensive experience related to the management of a business, to the operation of a port or to maritime trade.

The following individuals may not be directors of a port authority:

an individual who is a mayor, councillor, officer or employee of a municipality mentioned in the letters patent;

an individual who is a member of the legislature of a province, or an officer or employee of the public service or of a Crown corporation of a province, mentioned in the letters patent;

a Senator or a member of the House of Commons;

an officer or employee of the federal public administration, a federal Crown corporation or a port authority;

an individual who is not a resident Canadian, as defined in subsection 2(1) of the Canada Business Corporations Act;

an individual who is a director, officer or employee of a person who is a user of the port;

an individual who is under eighteen years of age;

an individual who has been declared mentally incompetent by a court in Canada or elsewhere; or

an undischarged bankrupt.

The board of directors shall elect a chairperson from among their number for a term not exceeding two years, the term being renewable.

Subject to subsection 19(1), where a port authority is continued under section 10 or 12, the directors or commissioners of the former local port corporation or harbour commission, respectively, continue to hold office as provisional directors of the port authority until the earlier of the day on which they are replaced or removed and ninety days after the date of the continuance.

A director of a port authority ceases to hold office when the director

dies or resigns;

is removed for cause by the authority that made the appointment, namely, the Governor in Council, the municipalities or the province or provinces, as the case may be; or

is no longer qualified under section 16.

The resignation of a director becomes effective on the day on which a written resignation is received by the port authority or on the day specified in the resignation, whichever is later.

The board of directors is responsible for the management of the activities of a port authority.

The board of directors of a port authority shall appoint a chief executive officer and may appoint other officers that they consider appropriate.

The chief executive officer is not a member of the board of directors.

A port authority may appoint the personnel that it considers necessary for the operation of the port.

Subject to the letters patent, the board of directors may delegate the powers to manage the activities of the port authority to a committee of directors or to the officers of the port authority.

Every director and officer of a port authority shall, in exercising powers and discharging duties,

act honestly and in good faith with a view to the best interests of the port authority; and

exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

Every director and officer of a port authority shall comply with this Part, the regulations made under subsection 27(1) and the letters patent and by-laws of the port authority.

No provision in a contract or resolution relieves a director or officer from the duty to act in accordance with this Part, the regulations made under subsection 27(1), the letters patent or the by-laws or relieves them from liability for a breach of any of them.

If a port authority or a wholly-owned subsidiary of a port authority is acting as agent of Her Majesty in right of Canada, the port authority or subsidiary must fulfil or satisfy an obligation or liability in respect of the port authority or subsidiary, as the case may be, arising from its exercise of, or its failure to exercise, a power or right or arising by operation of law. Her Majesty is not responsible for fulfilment or satisfaction of the obligation or liability, except that if a judgment or decision is rendered by a court of competent jurisdiction in respect of the obligation or liability, Her Majesty is responsible for satisfying the judgment or decision to the extent that it remains unsatisfied by the port authority or subsidiary at least thirty days after the judgment or decision becomes final.

If a port authority or a wholly-owned subsidiary of a port authority is not acting as agent of Her Majesty in right of Canada, an obligation or liability in respect of the port authority or subsidiary, as the case may be, arising from its exercise of, or its failure to exercise, a power or right or arising by operation of law is an obligation or liability of the port authority or subsidiary, as the case may be, and not an obligation or liability of Her Majesty.

A port authority and a wholly-owned subsidiary of a port authority shall fully maintain in good standing at all times the insurance coverage required by any regulations made under paragraph 27(1)(e).

The Financial Administration Act, other than subsection 9(3) and sections 155, 155.1 and 156, does not apply to a port authority or a wholly-owned subsidiary of a port authority.

Even if the port authority or subsidiary is an agent of Her Majesty in right of Canada as provided under section 7, no payment to a port authority or a wholly-owned subsidiary of a port authority may be made under an appropriation by Parliament to enable the port authority or subsidiary to discharge an obligation or liability unless

the payment

is made under the Emergencies Act or any other Act in respect of emergencies,

is a loan made by the Canada Infrastructure Bank under the Canada Infrastructure Bank Act,

is a contribution in respect of the capital costs of an infrastructure project,

is a contribution in respect of environmental sustainability, or

is a contribution in respect of security, or

the authority for the funding of Her Majesty’s obligations is an agreement that was in existence before March 1, 1999.

The Minister may, with the approval of the Governor in Council given on the recommendation of the Treasury Board and on any terms and conditions specified by the Governor in Council on the recommendation of the Treasury Board, make a contribution under subparagraph 25(a)(iv).

Despite section 25, the Minister of Canadian Heritage may make payments to Canada Place Corporation for Canada Day celebrations and for the celebrations marking the 150th anniversary of Confederation.

No guarantee may be given under the authority of Parliament by or on behalf of Her Majesty for the discharge of an obligation or liability of a port authority or a wholly-owned subsidiary of a port authority. This section applies even if the port authority or subsidiary is an agent of Her Majesty in right of Canada as provided under section 7.

Section 26 does not apply with respect to a loan guarantee provided by the Canada Infrastructure Bank on behalf of the government of Canada under paragraph 18(h) of the Canada Infrastructure Bank Act.

For the purposes of this Part, the Governor in Council may make regulations for the corporate management and control of port authorities or wholly-owned subsidiaries of port authorities, including regulations

adapting any provision of the Canada Business Corporations Act and any regulations made under that Act, including provisions imposing punishment, for the purpose of applying those provisions as adapted to port authorities;

prescribing, for the purposes of section 32, categories of investments in which a port authority may invest;

respecting the preparation, form and content of the documents referred to in paragraphs 37(2)(a) to (d) and the information referred to in subsection 37(3);

prescribing the remuneration threshold for the purposes of paragraph 37(3)(c) and the method of determining that threshold;

respecting the insurance coverage that a port authority and a wholly-owned subsidiary of a port authority must maintain;

respecting the imposition of obligations on a port authority or a wholly-owned subsidiary of a port authority, as an agent of Her Majesty in right of Canada, including any requirements for a port authority or a wholly-owned subsidiary of a port authority to indemnify Her Majesty;

respecting the information and documents to be provided by a port authority to the Minister at the Minister’s request; and

respecting the amalgamation of port authorities.

A regulation made under subsection (1) may apply to only one port authority or wholly-owned subsidiary of a port authority.

A regulation made under subsection (1) may be made binding on Her Majesty in right of Canada or a province.

A port authority is incorporated for the purpose of operating the port in respect of which its letters patent are issued and, for that purpose and for the purposes of this Act, has the powers of a natural person.

The power of a port authority to operate a port is limited to the power to engage in

port activities related to shipping, navigation, transportation of passengers and goods, handling of goods and storage of goods, to the extent that those activities are specified in the letters patent; and

other activities that are deemed in the letters patent to be necessary to support port operations.

The activities that a port authority may engage in under paragraph (2)(b) may be carried on by the port authority directly or through a wholly-owned subsidiary of the port authority. The port authority and the subsidiary are not agents of Her Majesty in right of Canada for the purpose of engaging in those activities.

A port authority shall not carry on any activity or exercise any power that it is restricted by its letters patent from carrying on or exercising, nor shall it carry on any activity or exercise any power in a manner contrary to its letters patent or this Act.

A port authority or wholly-owned subsidiary of a port authority that enters into a contract other than as agent of Her Majesty in right of Canada shall do so in its own name. It shall expressly state in the contract that it is entering into the contract on its own behalf and not as agent of Her Majesty in right of Canada. For greater certainty, the contracts to which this subsection applies include a contract for the borrowing of money.