Trade Resources Market View A Five-Year Extension Will Be Granted to The Transition Period for Most Phase 3 Safe

A Five-Year Extension Will Be Granted to The Transition Period for Most Phase 3 Safe

The Ontario Ministry of Transportation (MTO) announced today that a five-year extension will be granted to the transition period for most Phase 3 Safe, Productive and Infrastructure-Friendly (SPIF) vehicles, the Ontario Trucking Association (OTA) learned.

As the OTA explained it:

SPIF Phase 3, which came into force in January 2006 as part of MTO's 30-year strategy to move the trucking industry to SPIF vehicles, encompasses all non-dump multi-axle semi-trailers (4 or more axles) and double trailer combinations.

In order to allow the affected carriers to operate their existing vehicles until the end of their operating life, MTO established in 2006 sunset provisions for the grandfathering of existing equipment based on the economic conditions and investment cycles prevailing at the time. A sunset date was established for the end of 2015. After that, semi-trailers built before 2006 would be allowed to operate only under special permit until reaching the age of 15 years for non-tank trailers and 20 years for tank trailers.

However, economic conditions deteriorated sharply during the recession of 2008-09 and recovery has been slow and fragile since then. The pace at which carriers were able to replace their fleets slowed and many became concerned they would not be able to make the full transition to SPIF Phase 3 vehicles within the regulatory timetable and would be stuck with equipment that still had useable life extending beyond the grandfather period.

The additional 5 years of grandfathering will kick-in after 2015 and allow qualifying non-tank trailers 20 years of age and under as well as tankers 25 years of age and under to be eligible for special permitting until they reach those ages respectively based on their year of manufacture. The permits allow continued operation at existing weight allowances. When all grandfather protection is exhausted, these trailers may continue to operate, but at significantly reduced gross weight allowances.

"OTA is most appreciative of the receptivity of MTO to reconsider this matter and to work with us to reach a collaborative, responsible and proactive solution," says OTA president David Bradley. "The industry remains committed to SPIF, but these are difficult times and the carriers needed some extra breathing space and support."

"Today's announcement will allow them to plan and manage existing and future capital investments," he said.

For details of the regulatory proposal, which also includes modifications to the spread limit of SPIF tandem drive straight trucks and inter-vehicle unit distance for saddlemount combinations, click here.

The OTA will also be hosting a webinar on this issue for its members on Wednesday October 30, 2013 to go over changes. Registration details will be available shortly here.

Source: http://www.todaystrucking.com/ministry-grants-ontario-truckers-extra-breathing-room-on-spif-regs
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Ministry Grants Ontario Truckers Extra Breathing Room on Spif Regs