---
title: "Build Here, Not There: Winning the Transportation Race"
description: "Canada could be the friendliest place in the world to build new transportation technologies by rapidly and safely permitting new modes of transportation"
image: "https://yorkfactory.buildcanada.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTI5NCwicHVyIjoiYmxvYl9pZCJ9fQ==--59ed05346074c36336ec2ac6db580e25180c05ac/67a4d677833efdc20a100f0d_Frame-39.png"
author: "Stewart Lyons"
published: "2025-02-03T15:57:00.000Z"
canonical: "https://www.buildcanada.com/memos/transportation-permitting"
---

# Build Here, Not There: Winning the Transportation Race

## Key Messages

1. Canada could be the friendliest place in the world to build new transportation technologies by rapidly and safely permitting new modes of transportation
2. Today we are stifling new transportation technologies through outdated rules and NIMBY local organization operating without technical expertise
3. By centralizing authority and providing a mandate to grow we can empower builders to create world-class solutions here in Canada and make us a global centre for innovation.

## The Goal

Position Canada as the friendliest place in the world to build new transportation technologies by rapidly and safely permitting new modes of transportation like micromobility solutions such as electric scooters and bikes, drones, and autonomous vehicles at the federal level.

‍

## Summary

Around the world, companies are developing groundbreaking transportation technology that promise to make life easier, cleaner, safer, and more efficient. Drones that can deliver life-saving medical supplies in minutes, autonomous vehicles that will reduce traffic accidents, and even flying cars that can cut commute times in half. This isn’t science fiction—these things are already being built.

But in Canada, these innovations are being held back by a patchwork of outdated, slow-moving regulations. Take Tiny Mile, a Toronto startup that developed self-driving robots for food delivery. In 2021, the city effectively banned these robots, citing concerns about accessibility. Even as other cities in the country have allowed experimentation to continue. As a result, Tiny Mile was forced to relocate to the U.S., taking their jobs and innovation with them. Instead of creating solutions here in Canada—solutions that could save us time, money, and improve access to essential services—we’re losing out to other countries. 

Canada’s fragmented transportation governance is stifling our economy and holding back progress. But with the right changes we could make it one of our global competitive advantages. By centralizing authority under Transport Canada we could allow self-driving robots to be anywhere in Canada, allowing companies to innovate and experiment without worry of some smaller governing authority blocking them. We can build a system that’s faster, smarter, and ready to support the technologies of tomorrow. If we do this right, we will make Canada the obvious destination for anyone wanting to build in transportation innovation.

‍

## Current Problem

Municipal control over emerging technologies, combined with short-sighted resistance to change, has created unnecessary delays, inconsistency, and a hostile environment for innovation.

- **Fragmented Governance** : Municipalities currently control some areas of transportation technology, leading to slow approvals by groups with limited technical expertise. This prevents solutions from scaling effectively. For example, British Columbia recently banned advanced autonomous vehicles, while other provinces are open to experimentation.

- **Missed Opportunities** : Inconsistent rules for innovations like delivery robots and electric scooters are driving businesses away. While almost all cities around the GTA like Mississauga and Hamilton have embraced e-scooters, Toronto continues to ban them.  Across the country this patchwork approach continues as Calgary, Edmonton, Vancouver and Ottawa have e-scooter programs, and Montreal does not, citing a competitive city-owned bike share program which could also be delivered by the private sector. This causes companies to waste time and spend resources seeking city-by-city approvals, spending capital needlessly and stifling their ability to offer people options to move people around cities more safely and more efficiently.

- **Economic Drag** : Outdated infrastructure raises costs, slows GDP growth, and leaves Canada trailing behind global competitors. Autonomous vehicles are quickly becoming an essential part of everyday commuting in Phoenix, Atlanta, and San Francisco. In China companies have started ferrying passengers in electric, unmanned, flying cars. Rather than encouraging builders to create novel solutions here Canada regulates them into submission.

## Real-World Solutions

We don’t need to guess how to solve this—we already have the blueprint. Successful examples from Canada’s own history and leading global economies show that centralized, innovation-friendly regulation works:

- **Canada’s Telecommunications Success** : Recognizing the urgency to construct national communications networks, today the Federal government sets overarching policies and safety standards for how cell phone towers can be built that supersede municipal jurisdiction. Municipalities can influence tower placement, but they _cannot_ outright prevent installations; they can only guide where these structures are located within their jurisdictions. This model encouraged innovation and allowed for rapid build out of our telecoms infrastructure. This is the model we should adopt for new transportation technology.

- **Proven Regulatory Models:** Canada already centralizes safety and operational oversight in industries where national consistency is essential—such as aviation and maritime. Airlines and shipping companies operate under clear federal rules that ensure safety, efficiency, and innovation without being subject to conflicting municipal regulations. By applying this model to new transportation technologies, we can create a predictable, innovation-friendly environment while maintaining the highest safety standards.

- **Global Leadership Models** : Countries like Germany, Japan, and China have created centralized frameworks that allow them to introduce and encourage novel transportation technology including autonomous mobility systems throughout the whole country while allowing for local engagement.

## Why This Matters

Mobility is essential to Canada’s growth. To create the most thriving cities we need a modern, future-proof transportation system. If we fail to act, we’ll lose out on economic growth, technological leadership, and sustainability gains. The choice is clear: move boldly forward, or be left behind.

‍

## What Needs To Be Done

We propose the following changes:

- **One Standard, One Nation:** Right now, different cities have different rules, which slows down innovation. We want to shift transportation regulation to Transport Canada, creating a single, clear set of rules for the entire country. Municipalities can take decisions on how to introduce these technologies but not whether they will be introduced. This means we will no longer have some cities banning electric scooters while others allow them, we will have one consistent policy.

- **Clear Rules for Emerging Technologies:** We will introduce simple, streamlined national regulations for all new types of transportation, such as electric scooters, drones, and autonomous vehicles with the aim of being the most welcoming market for innovation in the world. This will allow transportation companies everywhere to understand what they need to do to operate in Canada and will give them the confidence they can expand in our market. If we don’t yet have a clear set of rules for a technology a company can ask for a review and receive a clear answer on whether they can operate within three months.

- **Connecting Investment to Progress:** We will link federal infrastructure funding to compliance with national transportation policies. This means cities that follow national innovation standards will receive financial support for transportation projects.

- **Updating Outdated Laws:** We will modernize old transportation laws, such as the Transportation of Dangerous Goods Act, to ensure they reflect 21st-century technologies, making it easier to introduce safer, smarter transportation solutions.

## What This Means For The Future

In four years, Canada will:

- Be the best place in the world to build and test new transportation technology.
- Make travel faster and cheaper with a smart, modern transportation system.
- Grow the economy by attracting top talent and investment in transportation innovation.
- Lead the world in clean, high-tech transportation solutions that reduce pollution and improve daily life.
- Create the safest, most efficient, and most forward-thinking transportation network, making it easier for people and goods to move within our cities, between provinces, and across the country.

## Common Questions

- **What about local control?** Cities will still manage local operations and placement to some extent but won’t have the power to block transformative technologies. National leadership will bring predictability while respecting municipal needs.
- **Is this safe?** Yes. Federal oversight will ensure the highest safety standards—just as it does in aviation and maritime industries. By making use of Canada’s top transportation experts we will be able to improve safety over decisions being made by municipalities without experience.
- **How will this improve daily life?** Faster commutes, lower costs, and cutting-edge more sustainable transportation technologies will improve quality of life for all Canadians and reduce reliance on one passenger motor vehicles.
- Will any and all transportation technologies be approved?

## Conclusion

Canada has a choice: lead the world in transportation innovation or fall behind. Right now, outdated rules are slowing us down, driving talent and investment elsewhere. But we can change that. By creating clear national regulations, supporting safe experimentation, and making Canada the best place to build new transportation technology, we can unlock incredible opportunities. Imagine faster commutes, cleaner cities, and a booming economy fueled by cutting-edge innovation. The future is ours to build—let’s make Canada the global leader in transportation technology.

## Appendix

### Aeronautics Act (R.S.C., 1985, c. A-2)

- Relevant Sections

  - _Section 3(1):_ Currently defines “aeronautics” but does not clearly include drones, flying cars, or autonomous aerial vehicles.
  - _Section 4.2:_ Grants the Minister of Transport regulatory power but does not explicitly address new aerial technologies (e.g., drone delivery or autonomous passenger drones).

- Terms to Change

  - In _Section 3(1)_, the phrase “any machine capable of deriving support in the atmosphere” is too vague for modern aerial technology.
  - In _Section 4.2_, the reference to “aviation safety” does not include “emerging aerial mobility.”

- Proposed Amendment Language

  - _Section 3(1)_:\
    “‘aeronautics’ includes the science, art, or practice of flight for traditional and unmanned aerial vehicles, autonomous aerial transport systems, and emerging aerial mobility solutions.”
  - _Section 4.2:_\
    “The Minister may make regulations respecting the design, operation, and oversight of new aerial mobility technologies, including drones, autonomous flying vehicles, and any associated infrastructure.”

### Canada Transportation Act (S.C. 1996, c. 10)

- Relevant Sections

  - _Section 5:_ Lays out the national transportation policy but does not emphasize the importance of integrating emerging technologies.
  - _Section 11:_ Outlines the Minister’s powers but does not specifically grant authority over micro-mobility, e-scooters, or new mobility modes.

- Terms to Change

  - _Section 5_ currently focuses on “competitive, economic, and efficient” systems without highlighting “innovation.”
  - _Section 11_ only references existing modes of transportation, not new or future ones.

- Proposed Amendment Language

  - _Section 5:_\
    “It is hereby declared that a safe, innovative, and efficient national transportation system… shall foster the development and integration of emerging transportation technologies, including autonomous vehicles, drones, micro-mobility solutions, and advanced maritime systems.”
  - _Section 11:_\
    “The Minister may exercise powers to regulate, promote, and oversee all forms of transportation in Canada, including emerging and future technologies such as autonomous ground vehicles, aerial drones, micro-mobility devices, and new maritime innovations.”

### Motor Vehicle Safety Act (S.C. 1993, c. 16)

- Relevant Sections

  - _Section 3(1):_ Defines “motor vehicle” but may exclude certain electric bikes, scooters, autonomous delivery robots, and other small electric devices.
  - _Section 7:_ Authorizes safety regulations but is not explicit about self-driving systems or micro-mobility vehicles.

- Terms to Change

  - _Section 3(1)_ uses language centered on traditional cars and trucks.
  - _Section 7_ focuses on conventional motor vehicle design and construction, not autonomous or robotic features.

- Proposed Amendment Language

  - _Section 3(1):_\
    “‘motor vehicle’ means any vehicle designed to be driven or drawn on roads by any means other than muscular power, including autonomous road vehicles, personal transport robots, electric scooters, electric bicycles, and other micro-mobility devices.”\
    _(Note: Where a device is below a power/weight threshold, it may be classified separately under the regulations to ensure appropriate safety standards.)_
  - _Section 7:_\
    “The Minister may make regulations respecting the design, construction, functioning, and autonomous capabilities of motor vehicles, including micro-mobility devices and robots, to ensure the safe integration of emerging technologies.”

### Transportation of Dangerous Goods Act (S.C. 1992, c. 34)

- Relevant Sections

  - _Section 5:_ Deals with the handling and transport of dangerous goods but does not contemplate drone or autonomous delivery.

- Terms to Change

  - The language assumes human-operated transport systems rather than remote or autonomous operations.

- Proposed Amendment Language

  - _Section 5:_\
    “No person shall handle, offer for transport, or transport any dangerous goods unless in compliance with this Act, including the use of autonomous vehicles, drones, or other emerging transport technologies that meet specific safety standards set by the Minister.”

### Canada Shipping Act, 2001 (S.C. 2001, c. 26)

- Relevant Sections

  - Look to _Part 4_ (Regulations and Administration) and _Part 9_ (Pleasure Craft and Small Vessels) for oversight of new maritime technology (e.g., autonomous boats, electric hydrofoil ferries).

- Terms to Change

  - The Act speaks mainly to traditional vessels and crewed operations.

- Proposed Amendment Language

  - _Add a new definition under Part 1:_\
    “‘autonomous vessel’ means any ship or boat capable of operation without direct human control on board, including remotely controlled or software-driven craft.”
  - _Part 4 (Regulatory Powers):_\
    “The Governor in Council may make regulations for autonomous and electric maritime vessels, including standards for design, safety, and navigation to ensure they operate without risk to public safety or the environment.”

### Canadian Environmental Protection Act (S.C. 1999, c. 33)

- Relevant Sections

  - _Part 7, Division 5:_ Regulates vehicle emissions but is geared toward traditional engine vehicles.

- Terms to Change

  - No explicit mention of micro-mobility or electric vehicles (e.g., e-bikes, scooters).

- Proposed Amendment Language

  - _Part 7, Division 5:_\
    “Regulations under this Division may include standards and exemptions for low-emission and zero-emission micro-mobility devices, including electric scooters, electric bicycles, and other innovative transport mechanisms, to encourage their use and reduce environmental impact.”

### New Legislation Proposal: Emerging Transportation Technology Act

- Purpose

  1. Create a single, national framework for all new and future transportation modes (e.g., autonomous vehicles, drones, e-scooters, e-bikes, and maritime innovations).

- Key Provisions

  1. Definition and Scope

  - Clearly define all emerging technologies (land, air, and maritime) under federal authority.

  2. Fast-Track Approval

  - Mandate a review period (e.g., 90 days) for new technologies seeking nationwide operating approval.

  3. Safety and Standards

  - Grant Transport Canada the power to set uniform safety rules for all provinces and territories.

  4. Municipal and Provincial Coordination

  - Require local governments to align with federal standards on “whether” a technology can operate, but allow them to decide “how” it is deployed within local contexts.

  5. Funding Incentives

  - Tie federal infrastructure funds to compliance with these national rules to encourage harmonized adoption.

### Provincial-Federal Interactions

- Constitutional Basis

  - Under _Section 91_ of the Constitution Act, 1867, the federal government can regulate interprovincial and international transport.
  - Provinces have authority over local roads, traffic rules, and municipal affairs under _Section 92_.

- Coordination Strategy

  - Federal Level: Set overarching safety, licensing, and technical standards for emerging tech (land, air, maritime).
  - Provincial/Municipal Level: Decide local placement, specific usage rules (speed limits, parking, docking regulations), and integration with existing infrastructure—but cannot ban an approved technology outright.

- Incentives

  - Link federal funding (e.g., infrastructure grants) to provincial adoption of the national framework. This encourages a consistent approach while respecting local needs.

‍

## Supporters

[Brice Scheschuk](https://www.linkedin.com/in/brice-scheschuk-cpa-ca-095721a/), [Wayne Pommen](https://www.linkedin.com/in/wayne-pommen-8844021/), [Michael Litt](https://x.com/michaellitt), [Aidan Tracey](https://www.linkedin.com/in/aidantracey/)

---

```json
{
  "@context": "https://schema.org",
  "@graph": [
    {
      "@type": "Organization",
      "name": "Build Canada",
      "url": "https://www.buildcanada.com",
      "description": "Build Canada is a civic organization on a mission to make Canada the most prosperous country in the world.",
      "logo": "/assets/logos/logo-standard.svg",
      "sameAs": [
        {
          "platform": "x",
          "url": "https://x.com/buildcanada"
        },
        {
          "platform": "linkedin",
          "url": "https://www.linkedin.com/company/buildcanada"
        },
        {
          "platform": "tiktok",
          "url": "https://www.tiktok.com/@build_canada"
        },
        {
          "platform": "instagram",
          "url": "https://www.instagram.com/build_canada/"
        },
        {
          "platform": "substack",
          "url": "https://buildcanada.substack.com/"
        },
        {
          "platform": "youtube",
          "url": "https://www.youtube.com/@BuildCanada"
        }
      ]
    },
    {
      "@type": "Article",
      "headline": "Build Here, Not There: Winning the Transportation Race",
      "description": "Canada could be the friendliest place in the world to build new transportation technologies by rapidly and safely permitting new modes of transportation",
      "image": "https://yorkfactory.buildcanada.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTI5NCwicHVyIjoiYmxvYl9pZCJ9fQ==--59ed05346074c36336ec2ac6db580e25180c05ac/67a4d677833efdc20a100f0d_Frame-39.png",
      "datePublished": "2025-02-03T15:57:00.000Z",
      "dateModified": "2025-02-03T15:57:00.000Z",
      "author": {
        "@type": "Person",
        "name": "Stewart Lyons",
        "jobTitle": "",
        "image": "https://yorkfactory.buildcanada.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzEwLCJwdXIiOiJibG9iX2lkIn19--96824fdc3145ace5cf66e988a3e94900d271309d/67a12a88f53afdb0da334e72_1731429223135.jpeg",
        "sameAs": [
          "https://x.com/stewartlyons",
          "https://www.linkedin.com/in/stewartlyons/"
        ]
      },
      "publisher": {
        "@type": "Organization",
        "name": "Build Canada",
        "logo": {
          "@type": "ImageObject",
          "url": "/assets/logos/logo-standard.svg"
        }
      },
      "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://www.buildcanada.com/memos/transportation-permitting"
      }
    },
    {
      "@type": "BreadcrumbList",
      "itemListElement": [
        {
          "@type": "ListItem",
          "position": 1,
          "name": "Home",
          "item": "https://www.buildcanada.com"
        },
        {
          "@type": "ListItem",
          "position": 2,
          "name": "Memos",
          "item": "https://www.buildcanada.com/memos"
        },
        {
          "@type": "ListItem",
          "position": 3,
          "name": "Build Here, Not There: Winning the Transportation Race",
          "item": "https://www.buildcanada.com/memos/transportation-permitting"
        }
      ]
    }
  ]
}
```