CTA Home : Rulings : Interlocutory Decisions : 2002

Interlocutory Decisions : 2002

2002-02-01

LET-R-35-2002

File No. T7475/01-3

In Decision No. LET-R-1-2002 dated January 4, 2002, the Canadian Transportation Agency (the Agency) acknowledged the filing of a motion by the Canadian Pacific Railway Company (CP) in the above proceeding relating to the request by Ferroequus Railway Company Limited (FE) to run and operate its trains over lines of the Canadian National Railway Company (CN).

In its motion, CP requests intervener status and, among other things, that the Agency dismiss FE's application on the grounds that FE is proposing to use CP track and property. CP also argues that FE's application contemplates the solicitation of traffic off of the railway lines of CP.

The Agency granted CP intervener status in these proceedings and commenced pleadings on CP's motion. FE's answer was filed on January 14, 2002 and CP's reply was filed on January 21, 2002.

The Agency has examined the submissions filed and concludes that, at this time, there is insufficient information before it to determine CP's motion.

In order to obtain this information, the Agency directs that a meeting be held where FE will present to the Agency, CN and CP the operating proposal that serves as the foundation for its present application.

This meeting shall be a fact finding inquiry that will provide to the Agency an answer to the question whether or not the proposed running rights, as described in FE's application and other submissions, involves CP trackage at or near the interchanges located at Camrose and Lloydminster, Alberta.

If CP assets are not involved in the proposed operation, FE shall provide information on how the proposed grain traffic will be handled at Camrose, Alberta and Lloydminster, Saskatchewan. If CP assets are involved, FE will address why it did not add CP as a party respondent in these proceedings.

Among any other relevant matters FE chooses to raise, FE will be expected to answer in detail all operational questions, for each interchange indicated in its application, relating to:

• who will transport the grain to the interchanges, how will this transport be effected, when will it be undertaken, how often, and in what volumes?
• whether the traffic arriving at the interchange will be arriving as full unit trains or will the trains have to be assembled?
• for trains arriving at the interchanges in car blocks where and how will these cars be stored during the creation of the unit trains which FE intends to transit to Prince Rupert?
• how will empty cars arriving from Prince Rupert be transferred to CP, whether storage facilities will be required to handle empty car blocks and, if so, where will these cars be stored?

Further information shall be directed to the question of how will the FE locomotives access the stored or arriving grain cars at the interchanges and where this access will take place. If any part of the proposed operation is to take place on CP assets, FE will also answer whether its running rights proposal will be contrary to the no-solicitation finding of the Agency which is fully set out in Decision No. 213-R-2001 dated May 3, 2001.

The Agency, CN and CP shall be permitted at the close of FE's presentation to question FE in order to elicit or clarify all necessary facts that will enable the Agency to determine CP's motion.

Following questions, CN and CP shall then be granted an opportunity to present facts relevant to the nature of their operations at and around the interchanges and will be expected to answer questions relating to the ownership of the interchanges as well as the extent to which they would be involved in the FE proposal in terms of car storage, pickup, delivery and routing.

FE and the Agency may question CN and CP on their presentations following which FE will be granted an opportunity to present information that may further clarify its proposed operations. The participants will be permitted to make concluding remarks.

A transcript of the inquiry shall be taken and made available to the participants. The Agency expects the participants to make full use of audio visual or other devices that will permit an effective delivery of the facts. Presenters shall be expected to be able to answer all relevant questions so that following this meeting the Agency will be in a position to rule on CP's motion. Presenters will not be sworn at this meeting and the facts may be presented by either counsel or witnesses.