Federal
Abandonment Process
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When
a federally regulated railway, such as the Canadian
National Railway Company or the Canadian
Pacific Railway Company announce their intention to discontinue
operation of a designated grain dependent branch line, they
must adhere to a formal abandonment process as laid out in
sections 140-146 of the Canada Transportation Act.
The
Canada
Transportation Act outlines the process federally regulated
railways must follow to discontinue or transfer operations of a
branch line. This process requires that the railway offer the line
they intend to discontinue for sale for ongoing railway operations.
If no commercial sale is completed within the allowed time, the
railway must offer to sell the line to local governments for a price
not more than the net salvage value of the line.
If
you are interested in purchasing a railway line that is planned
for discontinuance, you may contact Rail
Services for advice
and technical assistance.
Federal
railways must make a "three-year plan" available to
the public and this plan must be prepared and kept up-to-date
on each line indicating whether they:
- intend
to continue to operate the line;
- intend
to transfer the line to a shortline company; or
- intend
to take steps to discontinue operating the line.
For
more information on this process visit Canadian
Transportation Agency.
This
page updated December 2004
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