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

Act current to 2019-06-20 and last amended on 2019-04-03. Previous Versions

PART IIIRailway Transportation (continued)

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

Marginal note:Three-year plan

  •  (1) A railway company shall prepare and keep up to date a plan indicating for each of its railway lines whether it intends to continue to operate the line or whether, within the next three years, it intends to take steps to discontinue operating the line.

  • Marginal note:Public accessibility of plan

    (2) The railway company shall make the plan accessible to the public by publishing it on its Internet site or the Internet site of an association or other entity representing railway companies.

  • Marginal note:Notification of changes

    (2.1) Whenever the railway company makes a change to the plan, 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 each province through which the railway line passes;

    • (d) the chairperson of every urban transit authority through whose territory the railway line passes; and

    • (e) the clerk or other senior administrative officer of every municipal or district government through which the railway line passes.

  • Marginal note:Information to provide to Minister

    (2.2) The railway company shall, within 60 days after indicating in the plan its intention to discontinue operating a railway line, provide to the Minister

    • (a) an assessment of whether or not section 96 applies to the land on which the railway line is located; and

    • (b) a legal description of any land to which the assessment indicates section 96 applies and, in the form specified by the Minister, geographical information that would allow for mapping of the land.

  • Marginal note:Discontinuance already indicated in plan

    (2.3) If a railway company has, on the day on which subsection (2.2) comes into force, a plan indicating its intention to discontinue operating a railway line, but the company has not yet made an advertisement under section 143 in respect of that line, it shall provide to the Minister the information referred to in that subsection before making the advertisement.

  • Marginal note:When sale, etc., permitted

    (3) Subject to section 144.1, a railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation.

  • Marginal note:Declaration

    (3.1) The railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

  • Marginal note:Continued operation of a portion of a line

    (4) A railway company that sells, leases or otherwise transfers a portion of a grain-dependent branch line listed in Schedule I, or its operating interest in such a portion, to a person who intends to operate the portion shall continue to operate the remaining portion for three years, unless the Minister determines that it is not in the public interest for the company to do so.

  • 1996, c. 10, s. 141
  • 2000, c. 16, s. 5
  • 2007, c. 19, s. 35
  • 2018, c. 10, s. 32

Marginal note:Compliance with steps for discontinuance

  •  (1) A railway company shall comply with the steps described in this Division before discontinuing operating a railway line. The railway company shall publish and keep up to date on its Internet site or the Internet site of an association or other entity representing railway companies a report that sets out the date that it commenced and completed each step.

  • Marginal note:Limitation

    (2) A railway company shall not take steps to discontinue operating a railway line before the company’s intention to discontinue operating the line has been indicated in its plan for at least 12 months.

  • Marginal note:Exception

    (2.1) Subsection (2) does not apply to a railway company that is the subject of proceedings under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.

  • Marginal note:Community-based groups

    (3) Subsection (2) does not apply and a railway company shall without delay take the steps described in section 143 if

    • (a) the federal government, a provincial, municipal or district government or a community-based group endorsed in writing by such a government has written to the company to express an interest in acquiring all or a portion of a grain-dependent branch line that is listed in Schedule I for the purpose of continuing to operate that line or portion of a line; and

    • (b) that line or portion of a line is indicated on the company’s plan as being a line or a portion of a line that the company intends to take steps to discontinue operating.

  • 1996, c. 10, s. 142
  • 2000, c. 16, s. 6
  • 2018, c. 10, s. 33

Marginal note:Advertisement of availability of railway line for continued rail operations

  •  (1) The railway company shall advertise the availability of the railway line, or any operating interest that the company has in it, for sale, lease or other transfer for continued operation and its intention to discontinue operating the line if it is not transferred.

  • Marginal note:Content of advertisement

    (2) The advertisement must include a description of the railway line and how it or the operating interest is to be transferred, whether by sale, lease or otherwise, and an outline of the steps that must be taken before the operation of the line may be discontinued, including

    • (a) a statement that the advertisement is directed to persons interested in buying, leasing or otherwise acquiring the railway line, or the railway company’s operating interest in it, for the purpose of continuing railway operations; and

    • (b) the date by which interested persons must make their interest known in writing to the company, but that date must be at least sixty days after the first publication of the advertisement.

  • Marginal note:Disclosure — advertisement

    (3) The advertisement shall also disclose

    • (a) the existence of any agreement between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line; and

    • (b) an indication as to whether or not section 96 applies to the land on which that railway line is located.

  • (4) [Repealed, 2007, c. 19, s. 36]

  • 1996, c. 10, s. 143
  • 2007, c. 19, s. 36
  • 2018, c. 10, s. 34

Marginal note:Disclosure of process

  •  (1) The railway company shall disclose the process it intends to follow for receiving and evaluating offers to each interested person who makes their interest known in accordance with the advertisement.

  • (2) [Repealed, 2007, c. 19, s. 37]

  • Marginal note:Negotiation in good faith

    (3) The railway company shall negotiate with an interested person in good faith and in accordance with the process it discloses and the interested person shall negotiate with the company in good faith.

  • Marginal note:Net salvage value

    (3.1) The Agency may, on application by a party to a negotiation, determine the net salvage value of the railway line and may, if it is of the opinion that the railway company has removed any of the infrastructure associated with the line in order to reduce traffic on the line, deduct from the net salvage value the amount that the Agency determines is the cost of replacing the removed infrastructure. The party who made the application shall reimburse the Agency its costs associated with the application.

  • Marginal note:Time limit for agreement

    (4) The railway company has six months to reach an agreement after the final date stated in the advertisement for persons to make their interest known.

  • Marginal note:Decision to continue operating a railway line

    (5) If an agreement is not reached within the six months, the railway company may decide to continue operating the railway line, in which case it is not required to comply with section 145, but shall amend its plan to reflect its decision.

  • Marginal note:Declaration

    (5.1) If an agreement is reached, including an agreement entered into to in accordance with an order by the Agency, the railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

  • Marginal note:Remedy if bad faith by a railway company

    (6) If, on complaint in writing by the interested person, the Agency finds that the railway company is not negotiating in good faith and the Agency considers that a sale, lease or other transfer of the railway line, or the company’s operating interest in the line, to the interested person for continued operation would be commercially fair and reasonable to the parties, the Agency may order the railway company to enter into an agreement with the interested person to effect the transfer and with respect to operating arrangements for the interchange of traffic, subject to the terms and conditions, including consideration, specified by the Agency.

  • Marginal note:Remedy if bad faith by an interested person

    (7) If, on complaint in writing by the railway company, the Agency finds that the interested person is not negotiating in good faith, the Agency may order that the railway company is no longer required to negotiate with the person.

  • 1996, c. 10, s. 144
  • 2000, c. 16, s. 7
  • 2007, c. 19, s. 37
  • 2018, c. 10, s. 35
 
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