Evidence of meeting #63 for Public Safety and National Security in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was pre-clearance.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Joshua Paterson  Executive Director, British Columbia Civil Liberties Association
Meghan McDermott  Policy Officer, British Columbia Civil Liberties Association
Gordon Miller  Vice-President, Rail Operations and Asset Development, Chief Safety Officer, Rocky Mountaineer
Alroy Chan  Senior Director, Corporate Development, Rocky Mountaineer

4:25 p.m.

Liberal

René Arseneault Liberal Madawaska—Restigouche, NB

But if nobody...can't we continue? Nobody has raised a question on the issue.

4:25 p.m.

Liberal

The Chair Liberal Rob Oliphant

We have what's called reduced quorum—

4:25 p.m.

A voice

We have quorum.

4:25 p.m.

Liberal

The Chair Liberal Rob Oliphant

We now have quorum.

If there is unanimous consent, then we will continue, at least to hear the presentation, for 10 minutes.

4:25 p.m.

Some hon. members

Agreed.

4:25 p.m.

Liberal

The Chair Liberal Rob Oliphant

Thank you.

Let's do that and get it on the record.

May 10th, 2017 / 4:25 p.m.

Alroy Chan Senior Director, Corporate Development, Rocky Mountaineer

Mr. Chair, members of the committee, thank you for inviting us to appear before you today.

As I am sure you are aware, Rocky Mountaineer's station in Vancouver is one of the four Canadian sites identified for expansion of pre-clearance operations under the new pre-clearance agreement between Canada and the United States, which Bill C-23 seeks to ratify and implement.

We genuinely appreciate the opportunity to share with you our company's story and how pre-clearance will have a positive impact on Canadian and international travellers transiting between Canada and the United States. Expanded pre-clearance in the land, marine, and rail modes will greatly benefit business and leisure travellers alike and generate increased economic activity due to more efficient border operations.

By way of background, Rocky Mountaineer is a proudly 100% Canadian family-owned business that has been operating as a private company in western Canada since 1990, when it was then privatized by the federal government. Since the privatization, we have grown to become the world's largest privately owned luxury tourism train company. We have welcomed aboard nearly two million guests from around the world to enjoy an unparalleled experience on board our all-dome fleet, which offers rich historic storytelling, authentic Canadian hospitality, world-class cuisine, and a first-hand look at the vast and untouched natural beauty of western Canada.

Our company's purpose from day one remains the same: to be creators of life-changing experiences for both our guests and our team members.

Rocky Mountaineer is considered one of the best ways to see the Canadian Rockies and has received numerous international awards and accolades for service excellence. These honours include eight World Travel awards, “World's Leading Travel Experience By Train”, and “World's Leading Luxury Train”. We've also been listed as a “Dream Trip” by Travel + Leisure magazine.

We offer over 65 unique Canadian vacation packages on four distinctive rail routes—all rich in history and natural wonders—through British Columbia, Alberta, and, most recently, into Washington state. Before or after a Rocky Mountaineer journey, a significant number of our guests visit other parts of Canada.

Rocky Mountaineer is proud to employ a strong, passionate team of almost 700 individuals. Each year since 2014, we have been recognized as one of Canada's best-managed companies. In addition, we have earned the “employer of the year” title from the Tourism Industry Association of Canada multiple times, as well as being named one of Canada's “top small and medium employers”.

Those of us who are fortunate enough to spend our time as part of Canada's vibrant tourism community know what an honour it is to be able to showcase the uniqueness and generosity of our great country. We also appreciate our industry's role as an important economic driver for Canada. Each year, tourism in Canada generates $35 billion of GDP—more than forestry, agriculture, and fisheries combined—and employs over 637,000 Canadians. Tourism is one of the fastest-growing industries in Canada and the world.

Rocky Mountaineer is proud of the contributions we are making to our community and the economy, be it from our operations directly, through our partnerships with 1,540 suppliers across the country, or by virtue of the spending of our passengers. Rocky Mountaineer is a significant contributor to the Alberta and B.C. economies. As a matter of perspective, Rocky Mountaineer's GDP contributions in Canada are equivalent to approximately 50% of the Vancouver cruise ship industry's annual GDP contributions in Canada or the employment supported by the construction of 1,200 new homes.

We are very proud of the fact that for every 1,000 tourists who purchase a Rocky Mountaineer journey, approximately $3 million of GDP is directly added to the Canadian economy as our guests stay, dine, cruise, sightsee, and more while enjoying B.C., Alberta, and the Canadian Rockies. Over 80% of our guests are international tourists, with those from the United States, Australia, and the United Kingdom representing our largest markets.

Our newest rail route between Vancouver and Seattle, Washington, which was introduced in 2013, is offered to tourists as a means of connecting the U.S. directly to the Canadian Rockies. This route has been quite popular. We are proud of the fact that our annual guest count growth rate on this route has averaged 20% since its inception. This route shows great promise for us, as cruise passengers are an increasing priority customer base for us. We believe that a breathtaking train journey is an attractive complement to the beginning or the end of a cruise.

While U.S. pre-clearance has long been established at many airports in Canada, ratification of the new agreement between Canada and the U.S., through Bill C-23, will extend benefits for those travelling across our border by train, car, bus, and ship. Currently we have a post-clearance customs and immigration process on our Vancouver to Seattle route. On the southbound journey, U.S. Customs and Border Protection officers conduct customs and immigration processes on board our train upon arrival in Seattle's train station. On the northbound journey, our train arrives in Vancouver's Pacific Central Station where CBSA officers conduct post-clearance procedures.

The average customs and immigration clearance process takes approximately 30 to 45 minutes to clear an entire train set. With the potential implementation of pre-clearance at Rocky Mountaineer Station, we believe we can reduce the processing time and improve security while simultaneously improving our guests' cross-border experience.

Since 2010, Rocky Mountaineer has been a committed and active participant with Canadian and American governments in advancing customs and immigration procedures. For example, we worked collaboratively with U.S. Customs and Border Protection to pilot their new hand-held mobile clearance devices on our Vancouver to Seattle route.

We are pleased to see that the government is continuing to collaborate with industry to improve the arrival experience for visitors. As a company in the business of providing people with life-changing experiences, pre-clearance will ensure a seamless and efficient arrival experience for our guests travelling between Vancouver and Seattle. Once pre-clearance is fully implemented, it will remove an extra step for tourists and travellers, who will simply be able to disembark upon arrival. Pre-clearance will create a much smoother guest experience for us and other cross-border tourism and transportation providers.

In B.C., in addition to Rocky Mountaineer, we know there are numerous other transportation and tourism companies that will greatly benefit from expanded pre-clearance to the marine and rail sectors. For example, Black Ball Ferry operates a daily ferry service from Victoria, B.C. to Port Angeles, Washington, and annually carries over 400,000 passengers, 127,000 passenger vehicles, and $250 million worth of commercial goods. In addition, the Victoria Clipper operates a daily passenger-only ferry service between Victoria and Seattle.

Similarly, on the rail side, our Amtrak colleagues operate a successful twice-daily rail service connecting Vancouver and Seattle.

All of these companies will appreciate the smoother, safer operations that pre-clearance will bring. Undoubtedly, expanded pre-clearance will support continued growth in Canada's valuable tourism industry.

Rocky Mountaineer is dedicated to showcasing Canada as the world's premier travel destination. We are looking to build on our success and continually seek opportunities to grow our business in Canada. We recently made the largest capital investment in the history of our company. The capital program includes the acquisition of 10 new custom-designed bi-level domed rail cars, eight custom-built single-level domed cars, and a major refurbishment program to our existing fleet of 16 bi-level domed cars.

It is our ambition that with this increased capacity, and with pre-clearance capabilities, we can achieve our aggressive growth plans to host most guests, expand our operations, and build even more world-class attractions. We are well under way in achieving these goals. Our 2017 operating season, coinciding with Canada's 150th anniversary celebrations, will be the best year in the history of Rocky Mountaineer.

We continue to assess ways to leverage pre-clearance to expand our reach into the American market, and will develop a pre-clearance program for our guests that will ensure an even more seamless journey between our two great countries. We look forward to continuing to work with government on pre-clearance implementation and other feature initiatives to grow Canada's vibrant tourism industry.

Thank you, and we'd be pleased to take any questions you may have.

4:35 p.m.

Liberal

The Chair Liberal Rob Oliphant

Thank you.

I think we're going to take three minutes. That will give us 15 minutes to get to the House. We'll give one question to the Conservatives, one to the Liberals, and one to the NDP.

We'll go to the NDP first this time.

4:35 p.m.

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

Just quickly, you mentioned this in your comments, and I want to perhaps get a better sense of it. Obviously airport pre-clearance determines how many destinations we can go to because of the infrastructure in airports. I wonder if you could perhaps re-explain it, just so I get a good sense of how it makes train travel smoother.

My understanding from what I've heard is that when you cross over the border, the schedule of the train is more predictable from start to end, because you don't have to stop in the middle.

Would that be correct?

4:35 p.m.

Vice-President, Rail Operations and Asset Development, Chief Safety Officer, Rocky Mountaineer

Gordon Miller

A couple of things come into play. Today we put all our guests on the train and we run down toward Seattle and we disembark everybody at the same time. Imagine 300 people showing up at once with a handful of customs agents to greet those 300 people. It becomes quite a long process.

Doing it at our station allows us to manage that relationship with the guests as people arrive at the station, make them comfortable and run them through the queues at our leisure, as opposed to all at once in a herd.

The second part of pre-clearance on the good side is a lot of freight traffic runs between Seattle and Vancouver as well, so if the goods also have a pre-clearance and that can run smoothly through the border that won't hold us up as we travel.

4:35 p.m.

Liberal

The Chair Liberal Rob Oliphant

Mr. Spengemann, you're next.

4:35 p.m.

Liberal

Sven Spengemann Liberal Mississauga—Lakeshore, ON

I have two brief questions. With respect to the integrity and security of the train, does the pre-clearance scenario add to or detract from that, like post-departure and pre-arrival, en route security? Are there any factors that—

4:35 p.m.

Vice-President, Rail Operations and Asset Development, Chief Safety Officer, Rocky Mountaineer

Gordon Miller

Both border agencies have deemed our train relatively low risk, given our guests are of the age that they are, 65-plus world travellers. All have come into the country with passports, so they're relatively low risk.

With pre-clearance our operation wouldn't change a lot today as far as the actual train operation, but it would become more consistent. We lock it up once the guests get on. We don't unlock it except for emergencies, and we stay locked up all the way to Seattle.

4:35 p.m.

Liberal

Sven Spengemann Liberal Mississauga—Lakeshore, ON

Have you surveyed your customers on pre-clearance? Have you done any opinion polling or questionnaires among them?

4:35 p.m.

Vice-President, Rail Operations and Asset Development, Chief Safety Officer, Rocky Mountaineer

Gordon Miller

Prior to our running to Seattle we reached out to our partners: travel agents, tour block operators, those who serve our guests. We reached out to them and asked about the restrictions on selling that service. One of the things that came back was the hassle of border hassles or border timelines.

When we first looked at this there was talk of stopping at the border, having to take everybody off and process them. We've got to a different place now, but pre-clearance would definitely assist us in reducing any of those preconceived concerns of delays.

4:35 p.m.

Liberal

Sven Spengemann Liberal Mississauga—Lakeshore, ON

Were any concerns raised or comments made with regard to the standards of legal protection in Canada versus the U.S.?

4:35 p.m.

Vice-President, Rail Operations and Asset Development, Chief Safety Officer, Rocky Mountaineer

Gordon Miller

Not to my knowledge.

4:35 p.m.

Liberal

Sven Spengemann Liberal Mississauga—Lakeshore, ON

That's all I have.

Thank you.

4:35 p.m.

Liberal

The Chair Liberal Rob Oliphant

Thank you.

I'm making a decision. It looks as if we're going to have at least two more votes, and we may run back and forth twice. I don't think we're going to be able to do more.

I'm going to thank both Mr. Chan and Mr. Miller for coming. You're Ottawa-based. We're going to invite you back. I give the committee notice; we're going to have a three-hour meeting at some point, so we can make up for the lost time.

Mr. Dubé.

4:40 p.m.

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

Can we have advance notice of when that longer meeting will be?

4:40 p.m.

Liberal

The Chair Liberal Rob Oliphant

No, it depends on who's calling these votes.

4:40 p.m.

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

I'm alone here. Give me a break.

4:40 p.m.

Liberal

The Chair Liberal Rob Oliphant

Yes, we will give you advance notice. We'll have that meeting. I want to remind you that if anybody had questions they won't be on the record, but if you have questions for either the B.C. CLA or Rocky Mountaineer, contact them and that can help you as individuals on the committee.

Also, if you have something you didn't get in, be sure to do it.

The meeting is adjourned.