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

Marginal note:Shipper and connecting carriers must agree

• 131. (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

• 132. (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.

Marginal note:Competitive line rate

• 133. (1) A competitive line rate in respect of the movement of traffic of a shipper is the result obtained by applying the following formula:

  A + (B/C × (D - E))

  where

  A 

  is the amount resulting from the application of the interswitching rate;

  B 

  is the total revenue that the local carrier received in respect of all movement over its lines of railway

  • (a) of traffic that

    • (i) is the same as or substantially similar to, the traffic moved, and

    • (ii) is moved over similar distances, unless no such traffic is moved over similar distances; and

  • (b) during the most recent period designated by the local carrier or any other period determined by the Agency, if the Agency determines that the designated period is not appropriate in the circumstances;

  C 

  is the total number of tonne kilometres of the movement of traffic that generated the total revenue;

  D 

  is the number of kilometres over which the competitive line rate is to apply; and

  E 

  is the total number of kilometres to which the interswitching rate is applicable.

• Marginal note:Adjustment of rate

  (2) If a shipper performs any of the activities in respect of which an interswitching rate is applicable, the applicable interswitching rate in the description of A in the formula must be adjusted to account for the performance of those activities.

• Marginal note:Alternative determination

  (3) The Agency may make an order in respect of a particular shipper or railway company, or make regulations that apply generally to shippers or railway companies, establishing an alternative method of determining the amount of a competitive line rate if the amount cannot be determined in accordance with this section.

• Marginal note:Rate must be compensatory

  (4) A competitive line rate determined under this section must not be less than the variable costs of moving the traffic, as determined by the Agency.