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

Act current to 2016-08-15 and last amended on 2016-06-18. Previous Versions

Interswitching

Marginal note:Application to interswitch traffic between connecting lines
  •  (1) If a railway line of one railway company connects with a railway line of another railway company, an application for an interswitching order may be made to the Agency by either company, by a municipal government or by any other interested person.

  • Marginal note:Order

    (2) The Agency may order the railway companies to provide reasonable facilities for the convenient interswitching of traffic in both directions at an interchange between the lines of either railway and those of other railway companies connecting with them.

  • Marginal note:Interswitching limits

    (3) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km, or a prescribed greater distance, of an interchange, a railway company shall not transfer the traffic at the interchange except in accordance with the regulations.

  • Marginal note:Extension of interswitching limits

    (4) On the application of a person referred to in subsection (1), the Agency may deem a point of origin or destination of a movement of traffic in any particular case to be within 30 km, or a prescribed greater distance, of an interchange, if the Agency is of the opinion that, in the circumstances, the point of origin or destination is reasonably close to the interchange.

Marginal note:Regulations
  •  (1) The Agency may make regulations

    • (a) prescribing terms and conditions governing the interswitching of traffic, other than terms and conditions relating to safety;

    • (b) determining the rate per car to be charged for interswitching traffic, or prescribing the manner of determining that rate, including the adjustments to be made to that rate as a result of changes in costs, and establishing distance zones for those purposes; and

    • (c) prescribing, for the purposes of subsections 127(3) and (4), a greater distance than 30 km from an interchange.

  • Marginal note:Different distances

    (1.1) A regulation made under paragraph (1)(c) may prescribe different distances for the regions or goods that it specifies.

  • Marginal note:Cost savings to be considered

    (2) In determining an interswitching rate, the Agency shall take into consideration any reduction in costs that, in the opinion of the Agency, results from moving a greater number of cars or from transferring several cars at the same time.

  • Marginal note:Limit on rate

    (3) In determining an interswitching rate, the Agency shall consider the average variable costs of all movements of traffic that are subject to the rate and the rate must not be less than the variable costs of moving the traffic, as determined by the Agency.

  • Marginal note:Transfer of lines does not affect entitlement

    (4) For greater certainty, the transfer of a railway line, or an operating interest in it, under Division V or section 158 of the National Transportation Act, 1987 does not affect any entitlement to an interswitching rate.

  • Marginal note:Review of interswitching regulations

    (5) The Agency shall review the regulations when the circumstances warrant and at least once in every five year period after the regulations are made.

  • 1996, c. 10, s. 128;
  • 2014, c. 8, s. 7.

Competitive Line Rates

Marginal note:Application
  •  (1) Sections 130 to 136 apply where

    • (a) a shipper has access to the lines of only one railway company at the point of origin or destination of the movement of the shipper’s traffic; and

    • (b) a continuous route between those points is operated by two or more companies.

  • Marginal note:Transferred railway lines

    (2) For greater certainty, the transfer of a railway line, or an operating interest in it, under Division V or section 158 of the National Transportation Act, 1987 does not affect the right of a shipper to obtain a competitive line rate under sections 130 to 136.

Marginal note:When competitive line rate to be established on shipper’s request
  •  (1) Subject to section 131, the local carrier serving the shipper at the point of origin or destination, as the case may be, shall, on the request of the shipper, establish a competitive line rate applicable to the movement of the traffic between the point of origin or destination, whichever is served exclusively by the local carrier, and the nearest interchange with a connecting carrier.

  • Marginal note:Requirement unaffected by extent of carrier’s capability

    (2) The local carrier shall establish the competitive line rate even if it is able to move the traffic over the whole of the continuous route or a portion of that route that is longer than the portion in respect of which the competitive line rate is to apply.

  • Marginal note:Designation of route by shipper

    (3) The shipper may designate the continuous route for the movement of the shipper’s traffic from the point of origin to the point of destination.

  • Marginal note:Route within Canada

    (4) If the ultimate point of destination of a movement of the shipper’s traffic is in Canada, the shipper shall designate a route 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

    (5) For the purposes of this section,

    • (a) if the point of destination of a movement of traffic is a port in Canada for export out of Canada, that port is the ultimate point of destination in Canada; and

    • (b) if the point of origin of a movement of traffic is a port in Canada for import into Canada, that port is the point of origin.

  • Marginal note:Nearest interchange

    (6) For the purposes of subsection (1), the nearest interchange is the one nearest 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 designated by the shipper, unless the local carrier can demonstrate that the interchange cannot be used for engineering reasons.

Marginal note:Shipper and connecting carriers must agree
  •  (1) A competitive line rate must not be established unless the shipper agrees with the connecting carrier, and with any other company, other than the local carrier, that moves traffic over a portion of the continuous route, on the terms and conditions governing their movement of the traffic, including the applicable rate.

  • Marginal note:No other rate applies

    (2) If an interswitching rate determined under paragraph 128(1)(b) is available for a portion of the route operated by the local carrier, no other rate may be applied to that portion of the route.

  • Marginal note:Movement on flat cars or less than carload traffic

    (3) A competitive line rate must not be established for the movement of trailers on flat cars, containers on flat cars or less than carload traffic, unless they arrive at a port in Canada by water for movement by rail or by rail for movement by water.

  • Marginal note:Maximum portion of traffic

    (4) The portion of a movement of traffic in respect of which a competitive line rate may be established must not exceed 50 per cent of the total number of kilometres over which the traffic is moved by rail or 1 200 km, whichever is greater.

  • Marginal note:Exception

    (5) On application of a shipper, the Agency may establish a competitive line rate for a greater portion of a movement of traffic if the Agency is satisfied that no interchange exists within the maximum portion referred to in subsection (4).

  • Marginal note:No other rates may be established

    (6) If a competitive line rate has been established for a movement of traffic of a shipper, no other competitive line rate may be established in respect of that movement while the rate is in effect.

Marginal note:Application to Agency to establish competitive line rates
  •  (1) On the application of a shipper, the Agency shall, within forty-five days after receiving the application, establish any of the following matters in respect of which the shipper and the local carrier do not agree:

    • (a) the amount of the competitive line rate;

    • (b) the designation of the continuous route;

    • (c) the designation of the nearest interchange; and

    • (d) the manner in which the local carrier shall fulfil its service obligations.

  • Marginal note:No final offer arbitration

    (2) If a matter is established by the Agency under this section, the shipper is not entitled to submit the matter to the Agency for final offer arbitration under section 161.

 
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