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

Act current to 2021-11-17 and last amended on 2020-06-10. Previous Versions

PART IIIRailway Transportation (continued)

DIVISION VTransferring and Discontinuing the Operation of Railway Lines (continued)

Marginal note:Compensation

  •  (1) A railway company that discontinues operating a grain-dependent branch line listed in Schedule I, or a portion of one, that is in a municipality or district shall, commencing on the date on which notice was provided under subsection 146(1), make three annual payments to the municipality or district in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.

  • Marginal note:Compensation

    (2) If a railway company to which subsection 146.01(1) applies does not resume operations on a grain-dependent branch line listed in Schedule I within the period provided for in that subsection and does not enter into an agreement for the sale, lease or other transfer of that railway line, or applicable interest in that railway line, after following the process set out in sections 143 to 145, the railway company shall, beginning on the day after the last day on which its offer could have been accepted under section 145, make the annual payments referred to in subsection (1).

  • 2000, c. 16, s. 8
  • 2007, c. 19, s. 41(F)
  • 2008, c. 5, s. 5

Marginal note:List of metropolitan sidings and spurs to be dismantled

  •  (1) A railway company shall prepare and keep up to date a list of its sidings and spurs that it plans to dismantle and that are located in metropolitan areas or within the territory served by any urban transit authority, except for sidings and spurs located on a railway right-of-way that will continue to be used for railway operations subsequent to their dismantlement.

  • Marginal note:Publication of list and notification of changes

    (2) The railway company shall publish the list on its Internet site and, whenever it makes a change to the list, it shall notify the following of the change within 10 days after the change:

    • (a) the Minister;

    • (b) the Agency;

    • (c) the minister responsible for transportation matters in the government of the province in which the siding or spur that is the subject of the change is located;

    • (d) the chairperson of the urban transit authority in whose territory the siding or spur that is the subject of the change is located; and

    • (e) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur that is the subject of the change is located.

  • Marginal note:Limitation

    (3) A railway company shall not take steps to dismantle a siding or a spur until at least 12 months have elapsed since the siding or spur was added to the list.

  • Marginal note:Offer to governments

    (4) Before dismantling a siding or a spur that has been on the list for at least 12 months, a railway company shall send simultaneously to each of the following an offer to transfer all of its interest in the siding or spur for not more than its net salvage value:

    • (a) the Minister;

    • (b) the minister responsible for transportation matters in the government of the province in which the siding or spur is located;

    • (c) the chairperson of the urban transit authority in whose territory the siding or spur is located; and

    • (d) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur is located.

  • Marginal note:Time limits for acceptance

    (5) Subject to subsection 146.3(3), after the offer is received

    • (a) by the Minister, the Government of Canada may accept it within 30 days;

    • (b) by the provincial minister, the government of the province may accept it within an additional 30 days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph;

    • (c) by the chairperson of an urban transit authority, that authority may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

    • (d) by the clerk or other senior administrative officer of a municipal or district government, that government may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a), (b) and (c), if it is not accepted under those paragraphs.

  • Marginal note:Communication and notice of acceptance

    (6) 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 shall notify the other governments and urban transit authorities of the acceptance.

  • Marginal note:Net salvage value

    (7) 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, the urban transit authority or the railway company, determine the net salvage value.

  • Marginal note:Dismantling permitted

    (8) If the offer is not accepted, the railway company may dismantle the siding or spur on providing notice to the Agency.

  • 2007, c. 19, s. 42

Marginal note:Determination of net salvage value before expiry of time to accept offer

  •  (1) A person to whom a railway line is offered under section 145, or to whom a siding or spur is offered under section 146.2, may apply to the Agency for a determination of the net salvage value of the railway line, siding or spur, as the case may be, at any time before the expiry of the period available to the person to accept the offer.

  • Marginal note:Notification of application

    (2) The applicant shall without delay provide a copy of the application to the railway company, and the railway company shall without delay notify every other person to whom the offer was made and whose time to accept the offer has not expired that an application for a determination of the net salvage value was made.

  • Marginal note:Effect of application

    (3) If an application is made under subsection (1), the time available to the applicant to accept the offer expires on the day that is 30 days after the day the Agency notifies the applicant of its determination of the net salvage value and the 30-day period for each other person to accept the offer is calculated on the expiry of the period available to the applicant to accept the offer.

  • Marginal note:Costs

    (4) The applicant shall reimburse the Agency’s costs associated with the application.

  • 2007, c. 19, s. 42

Marginal note:Railway rights of way

 Sections 146.2 and 146.3 apply, with any modifications that are necessary, to railway rights-of-way, that are located in metropolitan areas or within the territory served by any urban transit authority and in respect of which the sidings and spurs have been dismantled, that a railway company plans to sell, lease or otherwise transfer.

  • 2007, c. 19, s. 42

Marginal note:Passenger railway stations

 Sections 146.2 and 146.3 apply, with any modifications that are necessary, to passenger railway stations in Canada that a railway company plans to sell, lease or otherwise transfer or dismantle.

  • 2007, c. 19, s. 42

Marginal note:Complaints

 If, after receiving a complaint, the Agency finds that a railway company is not complying with this Division, the Agency may order it to take any measures that the Agency considers appropriate to comply with this Division.

  • 2018, c. 10, s. 38

DIVISION VITransportation of Western Grain

Interpretation

Marginal note:Definitions

 In this Division,

crop year

crop year means the period beginning on August 1 in any year and ending on July 31 in the next year; (campagne agricole)

export

export, in respect of grain, means shipment by a vessel, as defined in section 2 of the Canada Shipping Act, 2001 , to any destination outside Canada and shipment by any other mode of transport to the United States for use of the grain in that country and not for shipment out of that country; (exportation)

government hopper car

government hopper car[Repealed, 2018, c. 10, s. 39]

grain

grain means

  • (a) any grain or crop included in Schedule II that is grown in the Western Division, or any product of it included in Schedule II that is processed in the Western Division, or

  • (b) any grain or crop included in Schedule II that is grown outside Canada and imported into Canada, or any product of any grain or crop included in Schedule II that is itself included in Schedule II and is processed outside Canada and imported into Canada; (grain)

joint line movement

joint line movement[Repealed, 2000, c. 16, s. 9]

maximum rate scale

maximum rate scale[Repealed, 2000, c. 16, s. 9]

movement

movement, in respect of grain, means the carriage of grain by a prescribed railway company over a railway line from a point on any line west of Thunder Bay or Armstrong, Ontario, to

  • (a) Thunder Bay or Armstrong, Ontario,

  • (b) Churchill, Manitoba for export,

  • (c) a port in British Columbia for export, other than export to the United States for consumption in that country, or

  • (d) a point west of Thunder Bay or Armstrong, Ontario, if the grain is to be carried to a port in British Columbia for export, other than export to the United States for consumption in that country; (mouvement du grain)

port in British Columbia

port in British Columbia includes Vancouver, North Vancouver, New Westminster, Roberts Bank, Prince Rupert, Ridley Island, Burnaby, Fraser Mills, Fraser Surrey, Fraser Wharves, Lake City, Lulu Island Junction, Port Coquitlam, Port Moody, Steveston, Tilbury and Woodwards Landing; (port de la Colombie-Britannique)

prescribed railway company

prescribed railway company means the Canadian National Railway Company, the Canadian Pacific Railway Company and any railway company that may be specified in the regulations; (compagnie de chemin de fer régie)

Western Division

Western Division means the part of Canada lying west of the meridian passing through the eastern boundary of the City of Thunder Bay, including the whole of the Province of Manitoba. (région de l’Ouest)

  • 1996, c. 10, s. 147
  • 2000, c. 16, s. 9
  • 2001, c. 26, s. 282
  • 2005, c. 24, s. 3
  • 2011, c. 25, s. 60
  • 2018, c. 10, s. 39

Application of Division IV

Marginal note:Application to tariffs and rates

 The provisions of Division IV apply, with such modifications as the circumstances require, to tariffs and rates under this Division to the extent that those provisions are not inconsistent with this Division.

Tariffs

Marginal note:Issuance and publication

  •  (1) A prescribed railway company shall issue and publish tariffs that include single car rates in respect of the movement of grain from each grain delivery point on its railway.

  • Marginal note:Prohibition

    (2) No prescribed railway company shall establish a single car rate in a tariff in respect of the movement of grain from a grain delivery point on one of its branch lines that is more than three per cent higher than any single car rate in its tariffs for the movement of the same type of grain under substantially similar conditions for a substantially similar distance from the grain delivery point on one of its main lines that is nearest, as measured in a straight line, to the grain delivery point on the branch line.

  • 1996, c. 10, s. 149, c. 18, s. 41
  • 2000, c. 16, s. 10

Maximum Grain Revenue Entitlement

Marginal note:Ceiling

  •  (1) A prescribed railway company’s revenues, as determined by the Agency, for the movement of grain in a crop year may not exceed the company’s maximum revenue entitlement for that year as determined under subsection 151(1).

  • Marginal note:Payment of excess and penalty

    (2) If a prescribed railway company’s revenues, as determined by the Agency, for the movement of grain in a crop year exceed the company’s maximum revenue entitlement for that year as determined under subsection 151(1), the company shall pay out the excess amount, and any penalty that may be specified in the regulations, in accordance with the regulations.

  • Marginal note:Items not included in revenue

    (3) For the purposes of this section, a prescribed railway company’s revenue for the movement of grain in a crop year shall not include

    • (a) incentives, rebates or any similar reductions paid or allowed by the company;

    • (b) any amount that is earned by the company and that the Agency determines is reasonable to characterize as a performance penalty or as being in respect of demurrage or for the storage of railway cars loaded with grain;

    • (c) compensation for running rights;

    • (d) any amount that is earned by the company at the interswitching rate determined in accordance with section 127.1; or

    • (e) any amount that is earned by the company for the movement of grain in containers on flat cars.

  • Marginal note:Impermissible reductions

    (4) For the purposes of this section, a prescribed railway company’s revenue for the movement of grain in a crop year shall not be reduced by amounts paid or allowed as dispatch by the company for loading or unloading grain before the expiry of the period agreed on for loading or unloading the grain.

  • Marginal note:Reductions from revenue

    (5) For the purposes of this section, if the Agency determines that it was reasonable for a prescribed railway company to make a contribution for the development of grain-related facilities to a grain handling undertaking that is not owned by the company, the company’s revenue for the movement of grain in a crop year shall be reduced by any amount that the Agency determines constitutes the amortized amount of the contribution by the company in the crop year.

  • Marginal note:Agency to determine revenue

    (6) The Agency shall make the determination of a prescribed railway company’s revenues for the movement of grain in a crop year on or before December 31 of the following crop year.

  • 1996, c. 10, s. 150
  • 2000, c. 16, s. 10
  • 2018, c. 10, s. 40

 [Repealed, 2000, c. 16, s. 10]

Marginal note:Maximum revenue entitlement

  •  (1) A prescribed railway company’s maximum revenue entitlement for the movement of grain in a crop year is the amount determined by the Agency in accordance with the formula

    [A/B + ((C - D) × $0.022)] × E × F

    where

    A
    is the company’s revenues for the movement of grain in the base year;
    B
    is the number of tonnes of grain involved in the company’s movement of grain in the base year;
    C
    is the number of miles of the company’s average length of haul for the movement of grain in that crop year as determined by the Agency;
    D
    is the number of miles of the company’s average length of haul for the movement of grain in the base year;
    E
    is the number of tonnes of grain involved in the company’s movement of grain in the crop year as determined by the Agency; and
    F
    is the volume-related composite price index that applies to the company, as determined by the Agency.
  • Marginal note:Canadian National Railway Company

    (2) For the purposes of subsection (1), in the case of the Canadian National Railway Company,

    • (a) A is $348,000,000;

    • (b) B is 12,437,000; and

    • (c) D is 1,045.

  • Marginal note:Canadian Pacific Railway Company

    (3) For the purposes of subsection (1), in the case of the Canadian Pacific Railway Company,

    • (a) A is $362,900,000;

    • (b) B is 13,894,000; and

    • (c) D is 897.

  • Marginal note:Volume-related composite price index

    (4) The following rules are applicable to a volume-related composite price index:

    • (a) in the crop year 2016-2017, each prescribed railway company’s index is 1.3275;

    • (b) an index shall be determined in respect of each prescribed railway company; and

    • (c) the Agency shall make adjustments to each prescribed railway company’s index to reflect the costs incurred by the prescribed railway company to obtain hopper cars for the movement of grain and the costs incurred by the prescribed railway company for the maintenance of those hopper cars.

  • Marginal note:When Agency to make determination

    (5) The Agency shall make the determination of a prescribed railway company’s maximum revenue entitlement for the movement of grain in a crop year under subsection (1) on or before December 31 of the following crop year and shall make the determination of a prescribed railway company’s volume-related composite price index on or before April 30 of the previous crop year.

  • Marginal note:Making of adjustments

    (6) Despite subsection (5), the Agency shall make the adjustments referred to in paragraph (4)(c) at any time that it considers appropriate and determine the date when the adjusted index takes effect.

  • 1996, c. 10, s. 151
  • 2000, c. 16, s. 10
  • 2007, c. 19, s. 43
  • 2018, c. 10, s. 41
 
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