Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Act current to 2024-05-28 and last amended on 2023-09-30. Previous Versions

PART IIIRailway Transportation (continued)

DIVISION VTransferring and Discontinuing the Operation of Railway Lines (continued)

Marginal note:Rights and obligations under passenger service agreements continued

  •  (1) If a railway line, or a railway company’s operating interest in a railway line, is sold, leased or otherwise transferred under subsection 141(3) or as the result of an advertisement under subsection 143(1) and, before the day such advertisement was made, an agreement was in force between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line, the rights and obligations of the railway company under the agreement in respect of the operation of that service on that line vest, as of the day the transfer takes place, in the person or entity to which the railway line, or the operating interest, is transferred, unless the public passenger service provider indicates otherwise before that day.

  • Marginal note:Declaration that line is for general advantage of Canada

    (2) Whenever a railway company’s rights and obligations under an agreement with VIA Rail Canada Inc. are vested in another person or entity by subsection (1), the portion of the railway line to which the agreement relates is hereby declared, as of the day the transfer takes place, to be a work for the general advantage of Canada.

  • Marginal note:Duration of declaration

    (3) The declaration referred to in subsection (2) ceases to have effect if

    • (a) VIA Rail Canada Inc. ceases to operate a passenger rail service on the portion of railway line to which the declaration relates; or

    • (b) the operation of the railway line is discontinued.

  • 2007, c. 19, s. 38

Marginal note:Offer to governments

  •  (1) The railway company shall offer to transfer all of its interest in the railway line to the governments and urban transit authorities mentioned in this section for not more than its net salvage value to be used for any purpose if

    • (a) no person makes their interest known to the railway company, or no agreement with an interested person is reached, within the required time; or

    • (b) an agreement is reached within the required time, but the transfer is not completed in accordance with the agreement.

  • Marginal note:Disclosure — offer

    (1.1) The offer shall disclose whether or not section 96 applies to the land on which that railway line is located, and if the information described in paragraphs 141(2.2)(a) and (b) has not yet been provided to the Minister, the railway company shall provide it to the Minister with the offer.

  • Marginal note:Which governments receive offer

    (2) After the requirement to make the offer arises, the railway company shall send it simultaneously

    • (a) to the Minister if the railway line passes through

      • (i) more than one province or outside Canada,

      • (ii) land that is or was a reserve, as defined in subsection 2(1) of the Indian Act,

      • (iii) land that is the subject of an agreement entered into by the railway company and the Minister for the settlement of aboriginal land claims, or

      • (iv) a metropolitan area;

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

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

    • (d) to the clerk or other senior administrative officer of every municipal or district government through whose territory the railway line passes.

  • Marginal note:Time limits for acceptance

    (3) Subject to subsection 146.3(3), after the offer is received

    • (a) by the Minister, the Government of Canada may accept it within 60 days or, if the Minister has extended the period under subsection (3.1), within that period;

    • (b) by a provincial minister, the government of the province may accept it within thirty days, unless the offer is received by the Minister, in which case the government of each province may accept it within an additional thirty days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph;

    • (b.1) by an urban transit authority, it may accept it within an additional 30 days after the end of the period or periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

    • (c) by a municipal or district government, it may accept it within an additional 30 days after the end of the period or periods for acceptance under paragraphs (a), (b) and (b.1), if it is not accepted under those paragraphs.

  • Marginal note:Extension

    (3.1) If the Minister considers it appropriate to do so, the Minister may extend the period referred to in paragraph (3)(a) by 120 days. The Minister may further extend the period, but the total of those further extensions may not exceed 365 days. Each time the Minister extends the period, the Minister shall provide a notice to the railway company and the railway company shall notify the other governments and urban transit authorities.

  • Marginal note:Service obligations

    (3.2) If the Minister extends the period referred to in paragraph (3)(a), the railway company has no service obligations in respect of the operation of the railway line commencing on the expiry of 150 days after the offer was received by the Minister and ending on the expiry of 280 days after the expiry of the extended period referred to in that paragraph. The railway company shall not remove any of the infrastructure associated with the line during the period for which it has no service obligations.

  • Marginal note:Communication and notice of acceptance

    (4) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company must notify the other governments and urban transit authorities of the acceptance.

  • Marginal note:Declaration

    (4.1) The railway company shall, at the time of a transfer to a government or an urban transit authority, provide a written declaration to the government or urban transit authority stating that the transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

  • Marginal note:Net salvage value

    (5) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government or urban transit authority or the railway company, determine the net salvage value.

  • 1996, c. 10, s. 145
  • 2007, c. 19, s. 39
  • 2018, c. 10, s. 36

Marginal note:Discontinuation

  •  (1) If a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest in it is not entered into through that process, the railway company may discontinue operating the line on providing notice of the discontinuance to the Agency. After providing the notice, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by any public passenger service provider over the railway line.

  • Marginal note:Documents to accompany notice of discontinuance

    (1.1) The notice of discontinuance shall be accompanied by a copy of the advertisement referred to in section 143 and the offers to the governments and transit authorities referred to in subsection 145(1).

  • Marginal note:No obligation

    (2) If the railway line, or any interest of the railway company in it, is sold, leased or otherwise transferred by an agreement entered into through the process set out in sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by any public passenger service provider over the railway line as and from that date.

  • 1996, c. 10, s. 146
  • 2007, c. 19, s. 40
  • 2018, c. 10, s. 37

Marginal note:Obligation following return

  •  (1) If, by reason of the instrument or act by which a railway line or an operating interest in a railway line is transferred through the process set out in sections 143 to 145 or otherwise, the railway line or operating interest in the railway line returns to the railway company that transferred it, the railway company shall, within 60 days after the day on which the return takes place, resume operations of the line or follow the process set out in sections 143 to 145.

  • Marginal note:No condition or obligation

    (2) If a railway line or operating interest in a railway line returns to a railway company that transferred it and the company decides to follow the process set out in sections 143 to 145 in respect of the railway line or operating interest, the company is not subject to subsection 142(2) in respect of the railway line or operating interest and has no obligations under this Act in respect of the operation of the railway line.

  • 2008, c. 5, s. 4

Marginal note:Exception

 Despite section 146.01, if a railway line or operating interest in a railway line returns to a railway company referred to in that section and, before the day on which the return takes place, an agreement was in force between the person or entity that owned the railway line or had the operating interest in the railway line immediately before the return and a public passenger service provider as defined in section 87 in respect of the operation of a passenger rail service on that railway line, then, unless the public passenger service provider indicates otherwise before that day, the rights and obligations of the person or entity under the agreement in respect of the operation of that service on that line vest, as of that day, in the railway company and the railway company shall resume operations of the railway line.

  • 2008, c. 5, s. 8

Marginal note:Compensation

  •  (1) A railway company that discontinues operating a grain-dependent branch line listed in Schedule I, or a portion of one, that is in a municipality or district shall, commencing on the date on which notice was provided under subsection 146(1), make three annual payments to the municipality or district in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.

  • Marginal note:Compensation

    (2) If a railway company to which subsection 146.01(1) applies does not resume operations on a grain-dependent branch line listed in Schedule I within the period provided for in that subsection and does not enter into an agreement for the sale, lease or other transfer of that railway line, or applicable interest in that railway line, after following the process set out in sections 143 to 145, the railway company shall, beginning on the day after the last day on which its offer could have been accepted under section 145, make the annual payments referred to in subsection (1).

  • 2000, c. 16, s. 8
  • 2007, c. 19, s. 41(F)
  • 2008, c. 5, s. 5

Marginal note:List of metropolitan sidings and spurs to be dismantled

  •  (1) A railway company shall prepare and keep up to date a list of its sidings and spurs that it plans to dismantle and that are located in metropolitan areas or within the territory served by any urban transit authority, except for sidings and spurs located on a railway right-of-way that will continue to be used for railway operations subsequent to their dismantlement.

  • Marginal note:Publication of list and notification of changes

    (2) The railway company shall publish the list on its Internet site and, whenever it makes a change to the list, 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 the province in which the siding or spur that is the subject of the change is located;

    • (d) the chairperson of the urban transit authority in whose territory the siding or spur that is the subject of the change is located; and

    • (e) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur that is the subject of the change is located.

  • Marginal note:Limitation

    (3) A railway company shall not take steps to dismantle a siding or a spur until at least 12 months have elapsed since the siding or spur was added to the list.

  • Marginal note:Offer to governments

    (4) Before dismantling a siding or a spur that has been on the list for at least 12 months, a railway company shall send simultaneously to each of the following an offer to transfer all of its interest in the siding or spur for not more than its net salvage value:

    • (a) the Minister;

    • (b) the minister responsible for transportation matters in the government of the province in which the siding or spur is located;

    • (c) the chairperson of the urban transit authority in whose territory the siding or spur is located; and

    • (d) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur is located.

  • Marginal note:Time limits for acceptance

    (5) Subject to subsection 146.3(3), after the offer is received

    • (a) by the Minister, the Government of Canada may accept it within 30 days;

    • (b) by the provincial minister, the government of the province may accept it within an additional 30 days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph;

    • (c) by the chairperson of an urban transit authority, that authority may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

    • (d) by the clerk or other senior administrative officer of a municipal or district government, that government may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a), (b) and (c), if it is not accepted under those paragraphs.

  • Marginal note:Communication and notice of acceptance

    (6) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company shall notify the other governments and urban transit authorities of the acceptance.

  • Marginal note:Net salvage value

    (7) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government, the urban transit authority or the railway company, determine the net salvage value.

  • Marginal note:Dismantling permitted

    (8) If the offer is not accepted, the railway company may dismantle the siding or spur on providing notice to the Agency.

  • 2007, c. 19, s. 42

Marginal note:Determination of net salvage value before expiry of time to accept offer

  •  (1) A person to whom a railway line is offered under section 145, or to whom a siding or spur is offered under section 146.2, may apply to the Agency for a determination of the net salvage value of the railway line, siding or spur, as the case may be, at any time before the expiry of the period available to the person to accept the offer.

  • Marginal note:Notification of application

    (2) The applicant shall without delay provide a copy of the application to the railway company, and the railway company shall without delay notify every other person to whom the offer was made and whose time to accept the offer has not expired that an application for a determination of the net salvage value was made.

  • Marginal note:Effect of application

    (3) If an application is made under subsection (1), the time available to the applicant to accept the offer expires on the day that is 30 days after the day the Agency notifies the applicant of its determination of the net salvage value and the 30-day period for each other person to accept the offer is calculated on the expiry of the period available to the applicant to accept the offer.

  • Marginal note:Costs

    (4) The applicant shall reimburse the Agency’s costs associated with the application.

  • 2007, c. 19, s. 42
 

Date modified: