Transportation Modernization Act (S.C. 2018, c. 10)

Marginal note:2007, c. 19, ss. 33 and 34

21 The heading before section 106 and sections 106 to 110 of the Act are repealed.

• 22 (1) The definition competitive line rate in section 111 of the Act is repealed.

• (2) The definitions connecting carrier, interswitch and local carrier in section 111 of the Act are replaced by the following:

  connecting carrier

  connecting carrier means a railway company, other than a local carrier, that moves traffic to or from an interchange over a portion of a continuous route; (transporteur de liaison)

  interswitch

  interswitch means to transfer traffic from the lines of one railway company to the lines of another railway company; (interconnexion)

  local carrier

  local carrier means a class 1 rail carrier that moves traffic to or from an interchange on a continuous route from the point of origin or to the point of destination that is served exclusively by the class 1 rail carrier; (transporteur local)

• (3) The definition interswitching rate in section 111 of the English version of the Act is replaced by the following:

  interswitching rate

  interswitching rate means a rate determined by the Agency in accordance with section 127.1; (Version anglaise seulement)

• (4) Section 111 of the English version of the Act is amended by adding the following in alphabetical order:

  long-haul interswitching rate

  long-haul interswitching rate means a rate determined by the Agency in accordance with paragraph 134(1)(a); (Version anglaise seulement)

• 23 (1) Paragraph 116(1)(b) of the Act is replaced by the following:

  • Marginal note: 

    (b) within 90 days after receipt of the complaint, determine whether the company is fulfilling that obligation.

• (2) Section 116 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Time limits

    (1.1) For the purpose of an investigation conducted under subsection (1), the Agency shall allow a company at least 20 days to file an answer and at least 10 days for a complainant to file a reply.

  • Marginal note:Agency’s own motion

    (1.11) The Agency may, with the authorization of the Minister and subject to any terms and conditions that the Minister considers appropriate, of its own motion, conduct an investigation to determine whether a railway company is fulfilling its service obligations. The Agency shall conduct the investigation as expeditiously as possible and make its determination within 90 days after the investigation begins.

  • Marginal note:Considerations

    (1.2) The Agency shall determine that a company is fulfilling its service obligations if it is satisfied that the company provides the highest level of service in respect of those obligations that it can reasonably provide in the circumstances, having regard to the following considerations:

    • (a) the traffic to which the service obligations relate;

    • (b) the reasonableness of the shipper’s requests with respect to the traffic;

    • (c) the service that the shipper requires with respect to the traffic;

    • (d) any undertaking with respect to the traffic given by the shipper to the company;

    • (e) the company’s and the shipper’s operational requirements and restrictions;

    • (f) the company’s obligations, if any, with respect to a public passenger service provider;

    • (g) the company’s obligations in respect of the operation of the railway under this Act;

    • (h) the company’s contingency plans to allow it to fulfil its service obligations when faced with foreseeable or cyclical events; and

    • (i) any information that the Agency considers relevant.

• (3) Subsection 116(3) of the Act is replaced by the following:

  • Marginal note:Long-haul interswitching order binding on Agency

    (3) If a long-haul interwitching order has been made under subsection 134(1), the terms established by the order that are related to the manner in which the local carrier is to fulfil its service obligations are binding on the Agency in making its determination.

• Marginal note:2014, c. 8, s. 5.1(1)

  (4) Paragraph 116(4)(c.1) of the English version of the Act is replaced by the following:

  • (c.1) order the company to compensate any person adversely affected for any expenses that they incurred as a result of the company’s failure to fulfil its service obligations or, if the company is a party to a confidential contract with a shipper that requires the company to pay an amount of compensation for expenses incurred by the shipper as a result of the company’s failure to fulfil its service obligations, order the company to pay that amount to the shipper;

• (5) Subsection 116(6) of the Act is replaced by the following:

  • Marginal note:Right of action not limited

    (5.1) If an arbitrator’s decision made under section 169.37 includes a term with respect to an amount described in paragraph 169.31(1)(c.1), the term does not limit the right to claim an amount of compensation in an action under subsection (5).

  • Marginal note:Company not relieved

    (6) Subject to the terms of a confidential contract referred to in subsection 113(4) or a tariff that sets out, in accordance with subsection 136.4(1), terms established in a long-haul interswitching order, a company is not relieved from an action taken under subsection (5) by any notice, condition or declaration if the damage claimed in the action arises from any negligence or omission of the company or any of its employees.

24 Subsections 117(3) and (4) of the Act are replaced by the following:

• 25 (1) Paragraphs 126(1)(d) and (e) of the Act are replaced by the following:

  • (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:2013, c. 31, s. 8(1)

  (2) Subsection 126(1.1) of the Act is replaced by the following:

  • 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:2013, c. 31, s. 8(1)

  (3) Paragraph 126(1.4)(c) of the Act is replaced by the following:

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