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

Act current to 2017-11-20 and last amended on 2017-08-01. Previous Versions

Marginal note:Disclosure of process
  •  (1) The railway company shall disclose the process it intends to follow for receiving and evaluating offers to each interested person who makes their interest known in accordance with the advertisement.

  • (2) [Repealed, 2007, c. 19, s. 37]

  • Marginal note:Negotiation in good faith

    (3) The railway company shall negotiate with an interested person in good faith and in accordance with the process it discloses and the interested person shall negotiate with the company in good faith.

  • Marginal note:Net salvage value

    (3.1) The Agency may, on application by a party to a negotiation, determine the net salvage value of the railway line and may, if it is of the opinion that the railway company has removed any of the infrastructure associated with the line in order to reduce traffic on the line, deduct from the net salvage value the amount that the Agency determines is the cost of replacing the removed infrastructure. The party who made the application shall reimburse the Agency its costs associated with the application.

  • Marginal note:Time limit for agreement

    (4) The railway company has six months to reach an agreement after the final date stated in the advertisement for persons to make their interest known.

  • Marginal note:Decision to continue operating a railway line

    (5) If an agreement is not reached within the six months, the railway company may decide to continue operating the railway line, in which case it is not required to comply with section 145, but shall amend its plan to reflect its decision.

  • Marginal note:Remedy if bad faith by a railway company

    (6) If, on complaint in writing by the interested person, the Agency finds that the railway company is not negotiating in good faith and the Agency considers that a sale, lease or other transfer of the railway line, or the company’s operating interest in the line, to the interested person for continued operation would be commercially fair and reasonable to the parties, the Agency may order the railway company to enter into an agreement with the interested person to effect the transfer and with respect to operating arrangements for the interchange of traffic, subject to the terms and conditions, including consideration, specified by the Agency.

  • Marginal note:Remedy if bad faith by an interested person

    (7) If, on complaint in writing by the railway company, the Agency finds that the interested person is not negotiating in good faith, the Agency may order that the railway company is no longer required to negotiate with the person.

  • 1996, c. 10, s. 144;
  • 2000, c. 16, s. 7;
  • 2007, c. 19, s. 37.
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: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 thirty days;

    • (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: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: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.
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: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.
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.
 
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