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

Joint Rates

Marginal note:Continuous route in Canada

• 121 (1) If traffic is to move over a continuous route in Canada and portions of it are operated by two or more railway companies, the companies shall, at the request of a shipper intending to move the traffic,

  • (a) agree on a joint tariff for the continuous route and on the apportionment of the rate in the joint tariff; or

  • (b) enter into a confidential contract for the continuous route.

• Marginal note:Agency may decide if no agreement

  (2) If the railway companies fail to agree or to enter into a confidential contract, the Agency, on the application of the shipper, may

  • (a) direct the companies, within any time that the Agency may specify, to agree on a joint tariff for the continuous route and an apportionment of the rate that is satisfactory to the Agency; or

  • (b) within ninety days after the application is received by the Agency,

    • (i) determine the route and the rate and apportion the rate among the companies, and

    • (ii) determine the dates, not earlier than the date of receipt by the Agency of the application, when the rate comes into effect and when it must be published.

• Marginal note:Refund to shipper

  (3) If the Agency determines a rate under paragraph (2)(b), the companies that operate the route shall pay a shipper who moved traffic over the route an amount equal to the difference, if any, between the rate that was paid by the shipper and the rate determined by the Agency, applicable to all movements of traffic by the shipper over the route from the date on which the application was made to the date on which the determined rate comes into effect.

Marginal note:Publication requirements for joint tariff or rate

• 122 (1) If a joint tariff or rate is agreed on or determined under section 121, the requirements of this Division for the publication of the tariff or rate apply only to the railway company operating the railway line on which the movement of the traffic originates.

• Marginal note:Publication of subsection 121(2) tariff or rate

  (2) A joint tariff or rate agreed on or determined under subsection 121(2) must be published without delay, or within any additional time that the Agency may specify.

Marginal note:Publication of joint tariff — from Canada to or through foreign country

123 If traffic is to move over a continuous route from a point in Canada through a foreign country into Canada, or from a point in Canada to a foreign country, and the continuous route is operated by two or more railway companies, the requirements of this Division for the publication of an applicable joint tariff apply only to the railway company operating the railway line on which the movement of the traffic originates.

Marginal note:Publication of joint tariff — from foreign country to or through Canada

124 If traffic is to move over a continuous route from a point in a foreign country into Canada, or from a foreign country through Canada into a foreign country, and the continuous route is operated by two or more companies, the requirements of this Division for the publication of an applicable joint tariff apply only to the railway company operating the railway line on which the traffic is first moved in Canada.

Marginal note:Continuous carriage not to be prevented

• 125 (1) No railway company shall, by any combination, contract or agreement, express or implied, or by any other means, prevent traffic from being moved on a continuous route from the point of origin to the point of destination.

• Marginal note:Break in bulk, etc.

  (2) A break in bulk, stop or interruption made by a railway company does not prevent the movement of traffic from being treated, for the purposes of sections 121 to 124, as one continuous movement from the point of origin to the point of destination, if the break, stop or interruption was made in good faith for a necessary purpose and without intent to avoid or unnecessarily interrupt the continuous movement or to evade the provisions of this Division.

• Marginal note:Agency may require information

  (3) The Agency may direct a railway company operating on a continuous route to inform the Agency of the proportion of the rates that the railway company, or any other company operating on the continuous route, is to receive or has received under a joint tariff or confidential contract applicable to the route.

Confidential Contracts

Marginal note:Confidential contracts

• 126 (1) A railway company may enter into a contract with a shipper that the parties agree to keep confidential respecting

  • (a) the rates to be charged by the company to the shipper;

  • (b) reductions or allowances pertaining to rates in tariffs that have been issued and published in accordance with this Division;

  • (c) rebates or allowances pertaining to rates in tariffs or confidential contracts that have previously been lawfully charged;

  • (d) the manner in which the company is to fulfil its service obligations under section 113; and

  • (e) any conditions relating to the traffic to be moved by the company, including any amount to be paid by the company or the shipper in relation to a failure to comply with any condition related to the service obligations referred to in paragraph (d).

• Marginal note:Request for confidential contract

  (1.1) A shipper may request that a railway company make it an offer to enter into a contract under subsection (1) with the railway company respecting

  • (a) the manner in which the company is to fulfil its service obligations under section 113; or

  • (b) any amount to be paid in relation to the company’s or the shipper’s failure to comply with a term related to those service obligations, the purpose of which is to encourage the efficient movement of the shipper’s traffic and the performance of the railway system.

• Marginal note:Restriction

  (1.11) The shipper may only make a request in respect of an amount described in paragraph (1.1)(b) if the amount relates to a term that is included in the request under subsection (1.1).

• Marginal note:Content of request

  (1.2) The request must describe the traffic to which it relates, the services requested by the shipper with respect to the traffic and any undertaking that the shipper is prepared to give to the railway company with respect to the traffic or services.

• Marginal note:Offer

  (1.3) The railway company must make its offer within 30 days after the day on which it receives the request.

• Marginal note:Exception to offer

  (1.4) Subject to subsection (1.5), the railway company is not required to include in its offer terms with respect to a matter that

  • (a) is governed by a written agreement to which the shipper and the railway company are parties;

  • (b) is the subject of an order, other than an interim order, made under subsection 116(4);

  • (c) is set out in a tariff referred to in subsection 136.4(1) or 165(3); or

  • (d) is the subject of an arbitration decision made under section 169.37.

• Marginal note:Clarification

  (1.5) The railway company must include in its offer terms with respect to a matter that is governed by an agreement, the subject of an order or decision or set out in a tariff, referred to in subsection (1.4) if the agreement, order, decision or tariff expires within two months after the day on which the railway company receives the request referred to in subsection (1.1). The terms must apply to a period that begins after the agreement, order, decision or tariff expires.

• Marginal note:No investigation or arbitration of confidential contracts

  (2) No party to a confidential contract is entitled to submit a matter governed by the contract to the Agency for final offer arbitration under section 161, without the consent of all the parties to the contract.

Interswitching

Marginal note:Application to interswitch traffic between connecting lines

• 127 (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) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km of an interchange, the Agency may order

  • (a) one of the companies to interswitch the traffic; and

  • (b) 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:Order — Prairies

  (2.1) If the point of origin or destination of a continuous movement of traffic is in whole or in part in Manitoba, Saskatchewan or Alberta and is located within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange, the Agency may order

  • (a) one of the companies to interswitch the traffic; and

  • (b) 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 of an interchange, a railway company shall not transfer the traffic at the interchange except in accordance with the regulations and the interswitching rate.

• 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 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:Interswitching limits — Prairies

  (5) If the point of origin or destination of a continuous movement of traffic is in whole or in part in Manitoba, Saskatchewan or Alberta and is located within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange, a railway company must not transfer the traffic at the interchange except in accordance with the regulations and the interswitching rate.

• Marginal note:Information — traffic

  (6) When providing the Minister with information under regulations made under paragraph 50(1.01)(a), the Canadian National Railway Company and the Canadian Pacific Railway Company are also required to provide the Minister, in the same form and manner, with the following information with respect to any traffic that is moved by a railway car in order to permit the Minister to assess the effects of the application of subsections (2.1) and (5):

  • (a) an indication as to whether the point of origin or destination of the movement of the railway car was located within a radius of 30 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta;

  • (b) an indication as to whether the point of origin or destination of the movement of the railway car was within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange;

  • (c) an indication as to whether the railway car was moved by the railway company at the interswitching rate; and

  • (d) if possible, an indication as to whether the railway car was moved by another railway company at the interswitching rate.

• Marginal note:Additional information

  (7) On request, a railway company must provide to the Minister, in the form and manner specified by the Minister, any of the information or documents that have been provided to the Agency under section 128.1 in order to permit the Minister to assess the effects of the application of subsections (2.1) and (5).

Marginal note:Interswitching rate

• 127.1 (1) The Agency shall, no later than December 1 of every year, determine the rate per car to be charged for interswitching traffic for the following calendar year.

• Marginal note:Interswitching rate — Prairies

  (1.1) The Agency shall, no later than 90 days after the day on which this subsection comes into force, determine the rate per car to be charged for interswitching traffic within a zone that includes a point of origin or destination of a continuous movement of traffic that is located in whole or in part in Manitoba, Saskatchewan or Alberta and is within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange, for the calendar year in which this subsection comes into force.

• Marginal note:Considerations

  (2) In determining an interswitching rate, the Agency shall take into consideration

  • (a) 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; and

  • (b) any long-term investment needed in the railways.

• 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 shall not be less than the variable costs of moving the traffic, as determined by the Agency.

• Marginal note:Publication of method

  (4) The Agency shall, when it makes its determination under subsection (1), publish the method that it followed for determining the rate.

• Marginal note:Publication of method — subsection (1.1)

  (4.1) The Agency shall, when it makes its determination under subsection (1.1), publish the method that it followed for determining the rate.

• Marginal note:Interswitching rate to be published

  (5) The Agency shall cause the interswitching rate to be published in the Canada Gazette no later than December 31 before the beginning of the calendar year for which the rate applies.

• Marginal note:Publication — subsection (1.1)

  (6) The Agency shall, no later than 90 days after the day on which this subsection comes into force, publish the rate determined under subsection (1.1) on its Internet site.