Railway Traffic Liability Regulations (SOR/91-488)

10 (1) Where the transportation of goods is diverted by the carrier from rail to a vessel for transportation by water owing to necessity, including accidents or natural disasters on the carrier’s route, the carrier’s liability for any loss of or damage to the goods shall be the same as if those goods were transported by rail.

(2) Subject to subsection (3), where goods are transported by a carrier from rail to a vessel for transportation by water over any part of the carrier’s rail route, that transportation of goods by water shall be subject to the liabilities, limitations and exemptions provided by any Act applicable to transportation of goods by water in addition to any applicable provision of these Regulations that are not inconsistent with that Act.

(3) No carrier referred to in subsection (2) shall be liable for any loss of or damage to goods or for any delay in the transportation of goods resulting from

• (a) natural hazards associated with any body of water;

• (b) an explosion, the bursting of any boiler or the breakage of any shaft on a vessel by which the goods are transported, that does not result from the negligence of the carrier;

• (c) any latent defect in the hull of a vessel, or in any machinery or appurtenances on a vessel, by which the goods are transported;

• (d) any collision or running aground of the vessel, or any other accident of navigation affecting the vessel, by which the goods are transported; or

• (e) a prolongation of the voyage of the vessel by which the goods are transported.

(4) For the purpose of subsection (2), the transportation of goods by water does not include transportation on a lighter or ferry across rivers or in lakes or within a harbour.