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

Act current to 2016-11-21 and last amended on 2016-06-18. Previous Versions

Marginal note:Application
  •  (1) This Part applies to all persons, railway companies and railways within the legislative authority of Parliament.

  • Marginal note:Special cases

    (2) Without limiting the effect of subsection (1), this Part applies to

    • (a) a company operating a railway from the United States into Canada; and

    • (b) a railway, or a portion of a railway, whether or not constructed under the authority of an Act of Parliament, that is owned, controlled, leased or operated by a person who operates a railway within the legislative authority of Parliament.

  • Marginal note:Works for the general advantage of Canada

    (3) A railway or a portion of a railway mentioned in paragraph (2)(b) is declared to be a work for the general advantage of Canada.

  • Marginal note:Cessation of declaration

    (4) A declaration by subsection (3) or by any other Act of Parliament that a railway is a work for the general advantage of Canada, or for the advantage of two or more provinces, ceases to have effect with respect to a line of the railway, or a portion of it, whose operation is discontinued under Division V or is the subject of a transfer under that Division to a person other than a company mentioned in paragraph (2)(b).

Marginal note:Special Act railways declared to be works for general advantage of Canada

 If the construction or operation of a railway is authorized by a Special Act passed by the legislature of a province and the railway is declared by an Act of Parliament to be a work for the general advantage of Canada, this Part applies to the railway to the exclusion of any general railway Act of the province and any provisions of the Special Act that are inconsistent with this Part.

DIVISION IIConstruction and Operation of Railways

Certificate of Fitness

Marginal note:Certificate required
  •  (1) No person shall

    • (a) construct a railway without being the holder of a certificate of fitness that is issued under paragraph 92(1)(a); or

    • (b) operate a railway without being the holder of a certificate of fitness that is

      • (i) issued under paragraph 92(1)(a) for the portion of the operation that relates to a passenger rail service, or

      • (ii) issued under paragraph 92(1)(b) for the portion of the operation that does not relate to a passenger rail service.

  • Marginal note:Exception — purchaser of railway

    (2) Subsection (1) does not apply to a purchaser of a railway, or a portion of a railway, for a period of sixty days after the purchase if the railway or portion is purchased

    • (a) under a trust deed or mortgage;

    • (b) at the instance of the holders of a mortgage, bond or debenture for the payment of which a charge has been created on the railway or portion; or

    • (c) under any other lawful proceeding.

  • 1996, c. 10, s. 90;
  • 2015, c. 31, s. 5.
Marginal note:Application for certificate of fitness
  •  (1) Any person may apply for a certificate of fitness for a railway, including a person who owns or leases the railway or controls, either directly or indirectly, a person who owns or leases the railway.

  • Marginal note:Application for certain types of operations

    (2) If a person proposes to operate in Canada primarily on the railway of another railway company, the application must indicate the termini and route of every line of railway proposed to be operated.

Marginal note:Issuance of certificate of fitness
  •  (1) The Agency shall issue a certificate of fitness

    • (a) for the proposed operation of a railway that relates to a passenger rail service or for the proposed construction of a railway, if the Agency is satisfied that there will be adequate liability insurance coverage for the proposed operation or construction, as determined in accordance with the regulations; or

    • (b) for the proposed operation of a railway that does not relate to a passenger rail service, if the Agency is satisfied that there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

  • Marginal note:Covered risks

    (1.1) The liability insurance referred to in paragraph (1)(b) must cover the following risks that may arise out of the proposed operation:

    • (a) third-party bodily injury or death, including injury or death to passengers;

    • (b) third-party property damage, excluding damage to goods carried on a shipper’s behalf;

    • (c) risks that are associated with a leak, pollution or contamination; and

    • (d) in the case of a railway accident as defined in section 152.5, the other losses, damages, costs and expenses described in subsection 153(1).

  • Marginal note:Self-insurance

    (1.2) For the purpose of paragraph (1)(b), the amount of self-insurance must not exceed the maximum amount of self-insurance that the person who will be responsible for the proposed operation can sustain based on that person’s financial capability.

  • Marginal note:Termini and route

    (2) A certificate of fitness issued pursuant to an application mentioned in subsection 91(2) must specify the termini and route of every railway line to be operated.

  • Marginal note:Regulations made by Agency

    (3) The Agency may make regulations

    • (a) in respect of the proposed operation of a railway that relates to a passenger rail service or of a proposed construction of a railway, for determining the adequacy of liability insurance coverage, including any self-insurance; and

    • (b) in respect of the proposed operation of a railway that does not relate to a passenger rail service, respecting the provision of information that the Agency requires to determine whether there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

  • Marginal note:Regulations made by Governor in Council

    (4) The Governor in Council may, by regulation, amend Schedule IV by deleting or adding a class of railway operations and an amount of minimum liability insurance coverage or by amending such a class — including by adding or deleting factors that define its scope — or such an amount.

  • 1996, c. 10, s. 92;
  • 2015, c. 31, s. 6.
Marginal note:Variation of certificate
  •  (1) The Agency may, on application, vary a certificate of fitness

    • (a) to change the termini or route of a line specified in the certificate;

    • (b) to add a line to the certificate; or

    • (c) to reflect a change in railway operations or circumstances relating to those operations.

  • Marginal note:Variation when running rights granted

    (2) The Agency may vary a certificate of fitness when it

    • (a) makes an order under paragraph 116(4)(e) that requires a railway company to grant a right to the holder of the certificate; or

    • (b) grants a right under section 138 to the holder of the certificate.

  • 1996, c. 10, s. 93;
  • 2000, c. 16, s. 3.

Liability Insurance

Marginal note:Continuing requirement
  •  (1) The holder of a certificate of fitness shall maintain at all times,

    • (a) if the certificate was issued under paragraph 92(1)(a), adequate liability insurance coverage, as determined in accordance with the regulations, for the operation or construction of the railway for which the certificate was issued; or

    • (b) if the certificate was issued under paragraph 92(1)(b), the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV, for the operation of the railway for which the certificate was issued.

  • Marginal note:Covered risks

    (2) The liability insurance referred to in paragraph (1)(b) must cover the risks described in paragraphs 92(1.1)(a) to (d) that may arise out of the operation.

  • Marginal note:Self-insurance

    (3) For the purpose of paragraph (1)(b), the amount of self-insurance must not exceed the maximum amount of self-insurance that the holder of the certificate of fitness can sustain based on its financial capability.

  • 2015, c. 31, s. 7.
 
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