PART IIIRailway Transportation (continued)
DIVISION IVRates, Tariffs and Services (continued)
Tariffs — Freight (continued)
Marginal note:Application to vessels
120 The provisions of this Division relating to tariffs, in so far as the Agency considers them applicable, apply to traffic carried by a railway company by water between ports or places in Canada if the company owns, charters, uses, maintains or operates vessels for carrying traffic by water between ports or places in Canada, or is a party to an arrangement for using, maintaining or operating vessels for that purpose.
Marginal note:Unreasonable charges or terms
120.1 (1) If, on complaint in writing to the Agency by a shipper who is subject to any charges and associated terms and conditions for the movement of traffic or for the provision of incidental services that are found in a tariff that applies to more than one shipper other than a tariff referred to in subsection 165(3), the Agency finds that the charges or associated terms and conditions are unreasonable, the Agency may, by order, establish new charges or associated terms and conditions.
Marginal note:Period of validity
(2) An order made under subsection (1) remains in effect for the period, not exceeding one year, specified in the order.
Marginal note:Factors to be considered
(3) In deciding whether any charges or associated terms and conditions are unreasonable, the Agency shall take into account the following factors:
(a) the objective of the charges or associated terms and conditions;
(b) the industry practice in setting the charges or associated terms and conditions;
(c) in the case of a complaint relating to the provision of any incidental service, the existence of an effective, adequate and competitive alternative to the provision of that service; and
(d) any other factor that the Agency considers relevant.
Marginal note:Commercially fair and reasonable
(4) Any charges or associated terms and conditions established by the Agency shall be commercially fair and reasonable to the shippers who are subject to them as well as to the railway company that issued the tariff containing them.
Marginal note:Duty to vary tariff
(5) The railway company shall, without delay after the Agency establishes any charges or associated terms and conditions, vary its tariff to reflect those charges or associated terms and conditions.
Marginal note:No variation
(6) The railway company shall not vary its tariff with respect to any charges or associated terms and conditions established by the Agency until the period referred to in subsection (2) has expired.
(7) For greater certainty, this section does not apply to rates for the movement of traffic.
- 2008, c. 5, s. 3
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,
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,
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.
Marginal note:Confidential contracts
(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.
(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.
(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.
(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.
- 1996, c. 10, s. 126
- 2013, c. 31, s. 8
- 2018, c. 10, s. 25
- Date modified: