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

Act current to 2022-09-22 and last amended on 2020-06-10. Previous Versions

PART IIIRailway Transportation (continued)

DIVISION IVRates, Tariffs and Services (continued)

Long-haul Interswitching (continued)

Marginal note:Long-haul interswitching rate

  •  (1) The following rules apply to the determination of the long-haul interswitching rate:

    • (a) for the first 30 km, the rate is to be the interswitching rate; and

    • (b) for the remainder of the distance, the Agency shall determine the rate by having regard to the revenue per tonne kilometre for the movement by the local carrier of comparable traffic in respect of which no long-haul interswitching rate applies.

  • Marginal note:Minimum rate

    (2) The Agency shall not determine the rate described in paragraph (1)(b) to be less than the average of the revenue per tonne kilometre for the movement by the local carrier of comparable traffic in respect of which no long-haul interswitching rate applies.

  • Marginal note:Factors to consider — comparable traffic

    (3) For the purpose of paragraph (1)(b), the Agency shall determine what constitutes comparable traffic by having regard to

    • (a) the type of traffic;

    • (b) the distance over which the traffic is moved;

    • (c) the conditions of the movement of the traffic, including whether it is moved as single cars, blocks of cars or unit trains;

    • (d) the type and ownership of the cars used to move the traffic;

    • (e) the handling requirements for the traffic;

    • (f) the volume and frequency of the traffic;

    • (g) any undertaking given by the shipper in respect of the volume of the traffic;

    • (h) any incentives, rebates or any similar reductions in respect of the traffic; and

    • (i) any other factor related to the requirements of the shipper and the local carrier that the Agency considers appropriate.

  • Marginal note:Factors to consider — rate

    (4) The Agency shall determine the rate described in paragraph (1)(b) by having regard to the factors described in subsection (3), the density of traffic on the lines of the local carrier on which the traffic is to be moved and any long-term investment needed in those lines.

  • 1996, c. 10, s. 135
  • 2018, c. 10, ss. 29, 95

Marginal note:Continuous route

  •  (1) The Agency shall, in determining the continuous route from the point of origin to the point of destination, have regard to the continuous route that has been chosen by the shipper for the movement of its traffic in its application.

  • Marginal note:Route in Canada

    (2) If the point of destination of the continuous route of a movement of the shipper’s traffic is in Canada, the Agency shall determine a continuous route that is wholly within Canada, unless there is no cost-effective continuous route wholly within Canada that is available to the shipper and over which it is reasonable to move the shipper’s traffic.

  • Marginal note:Export and import

    (3) For the purposes of subsections (1) and (2),

    • (a) if the traffic is to be moved through a port in Canada for import into Canada, that port is the point of origin; and

    • (b) if the traffic is to be moved through a port in Canada for export out of Canada, that port is the point of destination.

  • 1996, c. 10, s. 136
  • 2018, c. 10, s. 29

Marginal note:Nearest interchange

 The Agency shall determine the nearest interchange in Canada to be the one nearest to the point of origin or destination, whichever is served exclusively by the local carrier, in the reasonable direction of the movement of the traffic from the point of origin to the point of destination on the continuous route, unless the local carrier can demonstrate that the interchange cannot be used for engineering reasons.

  • 2018, c. 10, s. 29

Marginal note:Service obligations

 The Agency shall determine the manner in which the local carrier is to fulfil its service obligations by having regard to the considerations set out in paragraphs 116(1.2)(a) to (i).

  • 2018, c. 10, s. 29

Marginal note:Duration of order

 The long-haul interswitching order applies to the parties for a period of one year as of the date of the order, unless the parties agree otherwise.

  • 2018, c. 10, s. 29

Marginal note:Incorporation in tariff

  •  (1) The local carrier shall, without delay after the long-haul interswitching order is made, set out in a tariff the terms established by the order, unless the shipper and local carrier agree to include those terms in a confidential contract.

  • Marginal note:Publication not required

    (2) Subsection 117(3) does not apply in respect of the tariff.

  • 2018, c. 10, s. 29

Marginal note:No final offer arbitration

 If a long-haul interswitching order is made by the Agency, the shipper is not entitled to submit any matter related to the movement of the traffic that is the subject of the order to the Agency for final offer arbitration under section 161.

  • 2018, c. 10, s. 29

Marginal note:Obligation of carriers to provide cars

  •  (1) Subject to any agreement to the contrary, if a long-haul interswitching order is made, the connecting carrier is responsible for providing the shipper with an adequate supply of cars for the traffic being moved, in addition to its other service obligations in relation to the movement of the traffic.

  • Marginal note:Additional obligations

    (2) Subject to any agreement to the contrary, the connecting carrier is, in respect of the interchange referred to in paragraph 129(1)(c), responsible for

    • (a) a prorated share, determined in accordance with subsection (3), of the costs of operating and maintaining the interchange during the period in which the long-haul interswitching order applies; and

    • (b) the capital cost of making any change to the interchange that may be necessary for transferring the traffic that is the subject of the long-haul interswitching order.

  • Marginal note:Determination of prorated share

    (3) The prorated share is the proportion that the traffic that is the subject of the order transferred at the interchange and moved by the connecting carrier during the period in which the order applies is of the total traffic transferred at the interchange during that period.

  • Marginal note:Share of capital cost

    (4) If more than one connecting carrier moves the traffic that is the subject of the order, the capital cost is to be shared between the connecting carriers based on each connecting carrier’s share of the amount of traffic moved.

  • 2018, c. 10, s. 29

Marginal note:Regulations

 The Governor in Council may, for the purpose of paragraph 129(3)(k), make regulations specifying cases in which a shipper is not entitled to apply for a long-haul interswitching order.

  • 2018, c. 10, s. 29

Marginal note:Suspension of operation

 If the Governor in Council is of the opinion that the financial viability of a railway company is seriously affected by the operation of sections 129 to 136.7, the Governor in Council may, by order, suspend the operation of those sections during the period specified in the order.

  • 2018, c. 10, s. 29

Interchanges

Marginal note:List

  •  (1) A railway company shall prepare and keep up to date a list of the locations of the interchanges on the railway that the company operates. It shall publish the list on its Internet site or the Internet site of an association or other entity representing railway companies.

  • Marginal note:Notice

    (2) A railway company may remove an interchange from its list only after the expiry of 120 days after it

    • (a) has published a notice of its intention to do so on its Internet site or the Internet site of an association or other entity representing railway companies; and

    • (b) has sent a copy of the notice to the Agency.

  • Marginal note:Service obligations

    (3) For greater certainty, the removal of an interchange under subsection (2) does not relieve a railway company from its service obligations.

  • 2018, c. 10, s. 29

Means to Deal with Carriers’ Liability

Marginal note:Agreement

  •  (1) Any issue related to liability, including liability to a third party, in respect of the movement of a shipper’s traffic shall be dealt with between the railway company and the shipper only by means of a written agreement that is signed by the shipper or by an association or other entity representing shippers.

  • Marginal note:No agreement

    (2) If there is no agreement, the railway company’s liability to the shipper in respect of a loss of or damage to a shipper’s traffic in the company’s possession or for any delay in its movement shall be dealt with between the company and the shipper,

    • (a) on the application of the company, by the Agency; or

    • (b) if there is no application or, if there is an application but the Agency does not specify any terms or conditions with respect to the matter, in the manner set out in the regulations.

  • Marginal note:Regulations

    (3) For the purposes of paragraph (2)(b), the Agency may make regulations respecting the manner in which a railway company’s liability under subsection (2) is to be dealt with between a company and a shipper.

  • 1996, c. 10, s. 137
  • 2015, c. 31, s. 9
  • 2018, c. 10, s. 30

Marginal note:Complaints

 If, after receiving a complaint, the Agency finds that a railway company is not complying with subsection 137(1), the Agency may order it to take any measures that the Agency considers appropriate to comply with that subsection.

  • 2018, c. 10, s. 31

Running Rights and Joint Track Usage

Marginal note:Application by railway company

  •  (1) A railway company may apply to the Agency for the right to

    • (a) take possession of, use or occupy any land belonging to any other railway company;

    • (b) use the whole or any portion of the right-of-way, tracks, terminals, stations or station grounds of any other railway company; and

    • (c) run and operate its trains over and on any portion of the railway of any other railway company.

  • Marginal note:Application may be granted

    (2) The Agency may grant the right and may make any order and impose any conditions on either railway company respecting the exercise or restriction of the rights as appear just or desirable to the Agency, having regard to the public interest.

  • Marginal note:Compensation

    (3) The railway company shall pay compensation to the other railway company for the right granted and, if they do not agree on the compensation, the Agency may, by order, fix the amount to be paid.

Marginal note:Request for joint or common use of right-of-way

  •  (1) The Governor in Council may

    • (a) on the application of a railway company, a municipal government or any other interested person, or on the Governor in Council’s own initiative, and

    • (b) after any investigation that the Governor in Council considers necessary,

    request two or more railway companies to consider the joint or common use of a right-of-way if the Governor in Council is of the opinion that its joint or common use may improve the efficiency and effectiveness of rail transport and would not unduly impair the commercial interests of the companies.

  • Marginal note:Order in Council for joint or common use of right-of-way

    (2) If the Governor in Council is satisfied that significant efficiencies and cost savings would result from joint or common use of the right-of-way by two or more railway companies and would not unduly impair the commercial interests of the companies, the Governor in Council may make any order for the joint or common use of the right-of-way that the Governor in Council considers necessary.

  • Marginal note:Compensation

    (3) The Governor in Council may also, by order, fix the amount of compensation to be paid in respect of the joint or common use of the right-of-way and any related work if the companies do not agree on the amount of that compensation.

DIVISION VTransferring and Discontinuing the Operation of Railway Lines

Definition of railway line

  •  (1) In this Division, railway line includes a portion of a railway line, but does not include

    • (a) a yard track, siding or spur; or

    • (b) other track auxiliary to a railway line.

  • Marginal note:Determination

    (2) The Agency may determine as a question of fact what constitutes a yard track, siding, spur or other track auxiliary to a railway line.

Marginal note:Three-year plan

  •  (1) A railway company shall prepare and keep up to date a plan indicating for each of its railway lines whether it intends to continue to operate the line or whether, within the next three years, it intends to take steps to discontinue operating the line.

  • Marginal note:Public accessibility of plan

    (2) The railway company shall make the plan accessible to the public by publishing it on its Internet site or the Internet site of an association or other entity representing railway companies.

  • Marginal note:Notification of changes

    (2.1) Whenever the railway company makes a change to the plan, it shall notify the following of the change within 10 days after the change:

    • (a) the Minister;

    • (b) the Agency;

    • (c) the minister responsible for transportation matters in the government of each province through which the railway line passes;

    • (d) the chairperson of every urban transit authority through whose territory the railway line passes; and

    • (e) the clerk or other senior administrative officer of every municipal or district government through which the railway line passes.

  • Marginal note:Information to provide to Minister

    (2.2) The railway company shall, within 60 days after indicating in the plan its intention to discontinue operating a railway line, provide to the Minister

    • (a) an assessment of whether or not section 96 applies to the land on which the railway line is located; and

    • (b) a legal description of any land to which the assessment indicates section 96 applies and, in the form specified by the Minister, geographical information that would allow for mapping of the land.

  • Marginal note:Discontinuance already indicated in plan

    (2.3) If a railway company has, on the day on which subsection (2.2) comes into force, a plan indicating its intention to discontinue operating a railway line, but the company has not yet made an advertisement under section 143 in respect of that line, it shall provide to the Minister the information referred to in that subsection before making the advertisement.

  • Marginal note:When sale, etc., permitted

    (3) Subject to section 144.1, a railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation.

  • Marginal note:Declaration

    (3.1) The railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

  • Marginal note:Continued operation of a portion of a line

    (4) A railway company that sells, leases or otherwise transfers a portion of a grain-dependent branch line listed in Schedule I, or its operating interest in such a portion, to a person who intends to operate the portion shall continue to operate the remaining portion for three years, unless the Minister determines that it is not in the public interest for the company to do so.

  • 1996, c. 10, s. 141
  • 2000, c. 16, s. 5
  • 2007, c. 19, s. 35
  • 2018, c. 10, s. 32
 
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