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

Application of Division IV

Marginal note:Application to tariffs and rates

148 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

• 149 (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.

Maximum Grain Revenue Entitlement

Marginal note:Ceiling

• 150 (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.

150.1 to 150.4 [Repealed, 2000, c. 16, s. 10]

Marginal note:Maximum revenue entitlement

• 151 (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.

Marginal note:Report to Minister

• 151.01 (1) Before the beginning of every crop year, a prescribed railway company shall provide to the Minister a report, in the form and manner that may be specified by the Minister, that

  • (a) assesses the prescribed railway company’s ability to move the grain that it is required to move during the crop year taking into account the total volume of grain expected to be moved for the crop year; and

  • (b) identifies the steps that the prescribed railway company is taking to enable it to move the grain that it is required to move during the crop year.

• Marginal note:Report — winter contingency plans

  (2) Before October 1 of every year, a prescribed railway company shall provide to the Minister a report, in the form and manner that may be specified by the Minister, that describes the railway company’s contingency plans to enable it to move the grain along with other traffic when faced with winter weather conditions.

• Marginal note:Publication

  (3) The prescribed railway company shall publish the reports referred to in subsections (1) and (2) on its Internet site at the same time that they are provided to the Minister.

List of Available Sidings

Marginal note:List of available sidings

• 151.1 (1) A prescribed railway company shall prepare and keep up to date a list of the sidings that it makes available in the Western Division where railway cars that are allocated by the Canadian Grain Commission under subsection 87(2) of the Canada Grain Act can be loaded.

• Marginal note:Publication of list

  (2) The railway company shall publish the list on its Internet site.

• Marginal note:Removal from list

  (3) The railway company may remove a siding from the list only after the expiry of 60 days after the publication of a notice of its intention to do so in a newspaper of general circulation in the area where the siding is located.

Regulations

Marginal note:Regulations

152 The Governor in Council may make regulations

• (a) specifying railway companies for the purposes of the definition prescribed railway company in section 147;

• (b) specifying, in respect of a prescribed railway company other than the Canadian National Railway Company or the Canadian Pacific Railway Company,

  • (i) revenues for the movement of grain in the base year,

  • (ii) the number of tonnes for the movement of grain in the base year, and

  • (iii) the average length of haul for the movement of grain in the base year;

• (c) specifying a penalty for the purposes of subsection 150(2) and respecting the paying out of the penalty and the excess amount; and

• (d) for carrying out the purposes and provisions of this Division.

DIVISION VI.1Public Passenger Service Providers

Dispute Resolution

Marginal note:Application

• 152.1 (1) Whenever a public passenger service provider and a railway company are unable to agree in respect of any matter raised in the context of the negotiation of any agreement concerning the use of the railway company’s railway, land, equipment, facilities or services by the public passenger service provider or concerning the conditions, or the amount to be paid, for that use, the public passenger service provider may, after reasonable efforts to resolve the matter have been made, apply to the Agency to decide the matter.

• Marginal note:Application

  (2) Whenever a public passenger service provider and a railway company are unable to agree in respect of any matter raised in the context of the implementation of any matter previously decided by the Agency, either the public passenger service provider or the railway company may, after reasonable efforts to resolve the matter have been made, apply to the Agency to decide the matter.

Marginal note:Amount to be fixed

• 152.2 (1) If, pursuant to an application made under subsection 152.1(1), the Agency fixes the amount to be paid by the public passenger service provider for the use of any of the railway company’s railway, land, equipment, facilities or services, that amount must reflect the cost associated with the public passenger service provider’s use of that railway, land or equipment or those facilities or services.

• Marginal note:Factors

  (2) In determining that amount, the Agency must take into consideration, among other things,

  • (a) the variable costs incurred by the railway company as a result of the public passenger service provider’s use of the railway company’s railway, land, equipment, facilities or services, including, but not limited to, its variable costs incurred to maintain safe operations and to avoid congestion and undue delay;

  • (b) the railway company’s cost of capital, based on a rate set by the Agency, applied to the net book value of the assets to be used by the public passenger service provider, less any amount to be paid by the public passenger service provider in respect of those assets;

  • (c) the cost of any improvements made by the railway company in relation to the public passenger service provider’s use of the railway company’s railway, land, equipment, facilities or services;

  • (d) a reasonable contribution towards the railway company’s constant costs; and

  • (e) the value of any benefits that would accrue to the railway company from any investment made by the public passenger service provider.