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22 exceeded legal limits on the condition that the motoring pub- Truck haul savings to be used for road improvements, and lic and taxpayers were not adversely affected by this traffic. Highway improvement projects. This policy reduced transportation costs and also reduced Canadian rail rates for potash movement by providing a truck After the agreement is signed, the Department issues per- connection to the U.S. rail system. There were incremental mits that enable the client to operate vehicles within the terms road and bridge costs to the province, but otherwise, all the and conditions of the agreement. The Department conducts benefits accrued to the private sector. safety and financial audits to ensure compliance. In 1994, the Saskatchewan Department of Highways and Truck haul savings are determined by taking the difference Transportation announced a vision for moving Saskatchewan's in transportation costs between legal vehicles and permit vehi- freight transportation system into the 21st century. The Trans- cles. All incremental road and bridge costs associated with the portation Partnership Policy was intended to ensure that the permit vehicles, and any incremental costs to the client, are highway system was safe, reliable, efficient, environmentally deducted from the truck haul savings. The client retains 50% sound, and financed by a combination of public- and private- of the residual, and the other 50% is put in a separate account sector funds. The cornerstone of this initiative was to forge that is used for road improvement projects mutually agreed partnerships with private-sector companies to reduce truck by the Department and the client. The road contributions do transportation costs. The savings from these partnerships not go into provincial consolidated revenue. enabled the company to be more competitive and provided revenue for making improvements to the highways used by their vehicles. The objectives of the Transportation Partner- 2.3 Canadian Institutional ship Policy were to (55) Mechanisms and the Size and Weight Harmonization Process Support economic development in Saskatchewan, 2.3.1 Background Provide additional revenue for road improvements on spe- cific routes used by a particular transport company, Section 2.1 outlined the recent history and evolution of Promote the use of more efficient road-friendly vehicle truck size and weight regulations in Canada. The original uni- technology, and lateral move by Ontario in 1970 has been replaced by a coop- Ensure that the taxpayer and motoring public are not erative process between the provinces that addresses truck con- adversely affected by industrial traffic. figurations and issues of common interest, while allowing the jurisdictions to pursue configurations of interest only to them. The new policy provides a mechanism that enables the This section describes the process used to address truck size Department to work with private industry to custom design and weight issues that are a common interest of the provinces truck haul systems that meets the objectives within the and the process used to amend the M.o.U. This process is province. New vehicle configurations are identified that will determined by the roles and responsibilities of governments reduce trucking costs by optimizing the vehicle with the high- in Canada, so the section contains a primer on the organiza- way system as well as the material handling facilities. All tion of government in Canada and the process of passing law new vehicles are evaluated from a safety performance, road and regulations in the provinces, which differ in key respects and bridge infrastructure, and haul savings perspective. from U.S. federal and state processes. The Transportation Association of Canada (TAC) perfor- mance measures described in this paper are used to pre-screen 2.3.2 Political Organization of Canada vehicle alternatives. If the vehicle concept represents a major departure from existing vehicles, field demonstration projects Canada is a federation of ten provinces, and there are also are undertaken to confirm the analysis prior to full implemen- three territories. The task of governing the country is shared tation. If the study results are favorable, the Department enters by the federal, provincial and territorial governments. The into a comprehensive transportation partnership agreement Constitution Act of 1867 gives the federal government respon- with the industry that contains sibility for matters that concern all Canadians. These are prin- cipally matters that cross interprovincial and/or international Vehicle configurations including weights and dimensions, borders, such as defense, foreign affairs, regulation of inter- Vehicle standards and specifications, provincial and international trade and commerce, criminal Haul routes, law, citizenship, central banking and monetary policy. Vehicle operating and maintenance procedures, Provincial governments have responsibility for matters of Driver qualifications, local interest, for example, primary and secondary education,