ct_b - Canada Transportation Act

"road crossing" means the part of a road that passes across, over or under a railway line, and includes a structure supporting or protecting that part of the road or facilitating the crossing;

"utility crossing" means the part of a utility line that passes over or under a railway line, and includes a structure supporting or protecting that part of the utility line or facilitating the crossing;

"utility line" means a wire, cable, pipeline or other like means of enabling the transmission of goods or energy or the provision of services.

101. (1) An agreement, or an amendment to an agreement, relating to the construction, maintenance or apportionment of the costs of a road crossing or a utility crossing may be filed with the Agency.

(2) When the agreement or amendment is filed, it becomes an order of the Agency authorizing the parties to construct or maintain the crossing, or apportioning the costs, as provided in the agreement.

(3) If a person is unsuccessful in negotiating an agreement or amendment mentioned in subsection (1), the Agency may, on application, authorize the construction of a suitable road crossing, utility crossing or related work, or specifying who shall maintain the crossing.

(4) Section 16 of the Railway Safety Act applies if a person is unsuccessful in negotiating an agreement relating to the apportionment of the costs of constructing or maintaining the road crossing or utility crossing.

(5) This section does not apply in any circumstances where section 102 or 103 applies.

102. If an owner's land is divided as a result of the construction of a railway line, the railway company shall, at the owner's request, construct a suitable crossing for the owner's enjoyment of the land.

103. (1) If a railway company and an owner of land adjoining the company's railway do not agree on the construction of a crossing across the railway, the Agency, on the application of the owner, may order the company to construct a suitable crossing if the Agency considers it necessary for the owner's enjoyment of the land.

(2) The Agency may include in its order terms and conditions governing the construction and maintenance of the crossing.

(3) The owner of the land shall pay the costs of constructing and maintaining the crossing.

104. (1) The following may, in accordance with the regulations, be deposited by any person in the office of the Registrar General of Canada or in any other place that the Governor in Council may, by order, specify:

(a) a mortgage or hypothec issued by a railway company;

(b) a security agreement entered into by a railway company;

(d) a copy of any document referred to in any of paragraphs (a) to (c) or a summary of any such document made in accordance with regulations made under section 105.1.

(2) Once the deposit is made, the mortgage or hypothec, security agreement, assignment or other document need not be deposited, registered or filed under any other law or statute respecting real or personal property, and the deposited document is valid against all persons.

105. (1) A document, or a copy or summary of a document, evidencing any of the following transactions may, in accordance with the regulations, be deposited by any person in the office of the Registrar General of Canada or in any other place that the Governor in Council may, by order, specify:

(a) a lease, sale, conditional sale, instalment sale, mortgage, hypothec, bailment, leasing, deposit or security agreement relating to rolling stock or any accessories or appurtenances relating to rolling stock; and

(b) an amendment, assignment or discharge of a document mentioned in paragraph (a).

(3) Once the deposit is made, the document need not be deposited, registered or filed under any other law or statute respecting real or personal property, and the document is valid against all persons.

(a) the depositing of copies of documents under sections 104 and 105;

(b) the form and content of summaries to be deposited under those sections; and

(c) the effects, in Canada, of the deposit, registration or filing in other countries of documents evidencing any transaction referred to in paragraph 105(1)(a) or of documents evidencing amendments, assignments or discharges of those documents.

106. (1) If a railway company is insolvent, the directors may prepare a scheme of arrangement between the company and its creditors and may file it in the Federal Court.

(2) The scheme may include provisions for settling and defining any rights of shareholders of the railway company as among themselves and for raising additional share and loan capital, if necessary.

(a) a declaration in writing to the effect that the railway company is unable to meet its engagements with its creditors; and

(b) an affidavit made by the president and directors of the company, or by a majority of them, that the declaration is true to the best of their knowledge.

(4) After the scheme is filed, the Federal Court may, on the application of the railway company, restrain any action against the company on any terms that the Federal Court considers appropriate.

(5) No order of the Federal Court or any other court restraining action against the railway company affects any right or remedy of a person in respect of, including the right to take possession of, the rolling stock, or any accessories or appurtenances relating to the rolling stock, of the company as a creditor under a security agreement, mortgage or hypothec or as a bailor, depositary, lessor or vendor under a conditional sale or an instalment sale, whether as trustee or otherwise, unless

(a) within 60 days after filing the scheme of arrangement, or any extended period to which the person may agree, the railway company agrees to perform all its obligations under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be;

(b) any event that occurred before or after the scheme was filed and that constitutes a default under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be, is cured before the later of

(i) 30 days after the event, and

(ii) the end of the period referred to in paragraph (a); and

(c) any event that occurred on or after the expiry of the period referred to in paragraph (a) and that constitutes a default under the security agreement, mortgage, hypothec, bailment, leasing, deposit, lease, conditional sale agreement or instalment sale agreement, as the case may be, is cured in accordance with that instrument or act.

(6) An extension of the 60-day period under paragraph (5)(a) does not prejudice the right to take possession of, or any other right or remedy in respect of, the rolling stock or the accessories or appurtenances relating to the rolling stock.

107. (1) The scheme is assented to when it is both assented to by the ordinary shareholders of the railway company at a special meeting called for that purpose and assented to in writing by three quarters in value of the holders of

(a) mortgages, hypothecs, bonds and debenture stock of the company;

(b) any rent charge, or other payment, charged on the receipts of or payable by the company in consideration of the purchase of the railway of another company; and

(2) If the railway company leases a railway from another company, the scheme is assented to by the other company when it is assented to

(a) by the ordinary shareholders of the other company at a special meeting called for that purpose; and

(b) in writing by three quarters in value of the holders of mortgages, hypotheques, bonds and debenture stock of the other company and each class of guaranteed or preferred shares of that company.

(3) Assent to the scheme is not required by a class of holders mentioned in subsection (1) or another company mentioned in subsection (2) if the scheme does not prejudicially affect any right or interest of that class or company.

108. (1) The directors of the railway company may apply to the Federal Court for confirmation of the scheme if, at any time within three months after the scheme is filed, or within any extended time that the Federal Court may allow, the directors consider the scheme to be assented to in accordance with section 107.

(3) The Federal Court, after hearing the directors and any other persons whom it considers entitled to be heard on the application, may confirm the scheme, if it is satisfied that

(a) the scheme has been assented to in accordance with section 107 within the period mentioned in subsection (1); and

(b) no sufficient objection to the scheme has been established.

(4) When the scheme is confirmed, it shall be registered in the Federal Court, and from then on it is binding on the company and all persons.

109. The judges of the Federal Court may, with the approval of the Governor in Council, make general rules governing the practice and procedure of the Court under sections 106 to 108.

110. The railway company shall keep at its principal or head office printed copies of the scheme when confirmed and registered, and shall provide a copy to any person who requests one and pays a fee not exceeding the cost of making the copy.

"competitive line rate" means a rate determined with respect to a shipper in accordance with section 133;

"connecting carrier" means a railway company, other than a local carrier, that moves traffic to or from an interchange over a portion of a continuous route in respect of which the railway company and the shipper agree on the movement of the traffic, including the applicable rate;

"interchange" means a place where the line of one railway company connects with the line of another railway company and where loaded or empty cars may be stored until delivered or received by the other railway company;

"interswitch" means to transfer traffic from the lines of one railway company to the lines of another railway company in accordance with regulations made under section 128;

"interswitching rate" means a rate established by, or determined in accordance with, regulations made under paragraph 128(1)(b);

"local carrier" means a railway company that moves traffic to or from an interchange on a continuous route from the point of origin or to the point of destination that is served exclusively by the railway company;

112. A rate or condition of service established by the Agency under this Division must be commercially fair and reasonable to all parties.

113. (1) A railway company shall, according to its powers, in respect of a railway owned or operated by it,

(a) furnish, at the point of origin, at the point of junction of the railway with another railway, and at all points of stopping established for that purpose, adequate and suitable accommodation for the receiving and loading of all traffic offered for carriage on the railway;

(b) furnish adequate and suitable accommodation for the carriage, unloading and delivering of the traffic;

(d) furnish and use all proper appliances, accommodation and means necessary for receiving, loading, carrying, unloading and delivering the traffic; and

(e) furnish any other service incidental to transportation that is customary or usual in connection with the business of a railway company.

(2) Traffic must be taken, carried to and from, and delivered at the points referred to in paragraph (1)(a) on the payment of the lawfully payable rate.

(3) Where a shipper provides rolling stock for the carriage by the railway company of the shipper's traffic, the company shall, at the request of the shipper, establish specific reasonable compensation to the shipper in a tariff for the provision of the rolling stock.

(4) A shipper and a railway company may, by means of a confidential contract or other written agreement, agree on the manner in which the obligations under this section are to be fulfilled by the company.

114. (1) A railway company shall, according to its powers, afford to all persons and other companies all adequate and suitable accommodation for receiving, carrying and delivering traffic on and from its railway, for the transfer of traffic between its railway and other railways and for the return of rolling stock.

(2) For the purposes of subsection (1), adequate and suitable accommodation includes reasonable facilities for the receiving, carriage and delivery by the company

(a) at the request of any other company, of through traffic and, in the case of goods shipped by carload, of the car with the goods shipped in it, to and from the railway of the other company, at a through rate; and

(b) at the request of any person interested in through traffic, of such traffic at through rates.

(3) Every railway company that has or operates a railway forming part of a continuous line of railway with or that intersects any other railway, or that has any terminus, station or wharf near to any terminus, station or wharf of another railway, shall afford all reasonable facilities for delivering to that other railway, or for receiving from or carrying by its railway, all the traffic arriving by that other railway without any unreasonable delay, so that

(a) no obstruction is offered to the public desirous of using those railways as a continuous line of communication; and

(b) all reasonable accommodation, by means of the railways of those companies, is at all times afforded to the public for that purpose.

(4) If a railway company provides facilities for the transportation by rail of motor vehicles or trailers operated by any company under its control for the conveyance of goods for hire or reward,

(a) the railway company shall offer to all companies operating motor vehicles or trailers for the conveyance of goods for hire or reward similar facilities at the same rates and on the same terms and conditions as those applicable to the motor vehicles or trailers operated by the company under its control; and

(b) the Agency may disallow any rate or tariff that is not in compliance with this subsection and direct the company to substitute a rate or tariff that complies with this subsection.

115. For the purposes of subsection 113(1) or 114(1), adequate and suitable accommodation includes reasonable facilities

(a) for the junction of private sidings or private spurs with a railway owned or operated by a company referred to in that subsection; and

(b) for receiving, carrying and delivering traffic on and from private sidings or private spurs and placing cars and moving them on and from those private sidings or private spurs.

116. (1) On receipt of a complaint made by any person that a railway company is not fulfilling any of its service obligations, the Agency shall

(a) conduct, as expeditiously as possible, an investigation of the complaint that, in its opinion, is warranted; and

(b) within one hundred and twenty days after receipt of the complaint, determine whether the company is fulfilling that obligation.

(2) If a company and a shipper agree, by means of a confidential contract, on the manner in which service obligations under section 113 are to be fulfilled by the company, the terms of that agreement are binding on the Agency in making its determination.

(3) If a shipper and a company agree under subsection 136(4) on the manner in which the service obligations are to be fulfilled by the local carrier, the terms of the agreement are binding on the Agency in making its determination.

(4) If the Agency determines that a company is not fulfilling any of its service obligations, the Agency may

(a) order that

(i) specific works be constructed or carried out,

(ii) property be acquired,

(iii) cars, motive power or other equipment be allotted, distributed, used or moved as specified by the Agency, or

(iv) any specified steps, systems or methods be taken or followed by the company;

(b) specify in the order the maximum charges that may be made by the company in respect of the matter so ordered;

(c) order the company to fulfil that obligation in any manner and within any time or during any period that the Agency deems expedient, having regard to all proper interests, and specify the particulars of the obligation to be fulfilled;

(d) if the service obligation is in respect of a grain-dependent branch line listed in Schedule I, order the company to add to the plan it is required to prepare under subsection 141(1) an indication that it intends to take steps to discontinue operating the line; or

(e) if the service obligation is in respect of a grain-dependent branch line listed in Schedule I, order the company, on the terms and conditions that the Agency considers appropriate, to grant to another railway company the right

(i) to run and operate its trains over and on any portion of the line, and

(ii) in so far as necessary to provide service to the line, to run and operate its trains over and on any portion of any other portion of the railway of the company against which the order is made but not to solicit traffic on that railway, to take possession of, use or occupy any land belonging to that company and to use the whole or any portion of that company's right-of-way, tracks, terminals, stations or station grounds.

(5) Every person aggrieved by any neglect or refusal of a company to fulfil its service obligations has, subject to this Act, an action for the neglect or refusal against the company.

(6) Subject to the terms of a confidential contract referred to in subsection 113(4) or a tariff setting out a competitive line rate referred to in subsection 136(4), a company is not relieved from an action taken under subsection (5) by any notice, condition or declaration if the damage claimed in the action arises from any negligence or omission of the company or any of its employees.

117. (1) Subject to section 126, a railway company shall not charge a rate in respect of the movement of traffic or passengers unless the rate is set out in a tariff that has been issued and published in accordance with this Division and is in effect.

(2) The tariff must include any information that the Agency may prescribe by regulation.

(3) The railway company shall publish and either publicly display the tariff or make it available for public inspection at its offices.

(4) The railway company shall provide a copy of the tariff, or any portion of it, to any person who requests it and pays a fee not exceeding the cost of making the copy.

(5) The railway company shall keep a record of the tariff for at least three years after its cancellation.

118. A railway company shall, at the request of a shipper, issue a tariff in respect of the movement of traffic on its railway.

119. (1) A railway company that proposes to increase a rate in a tariff for the movement of traffic shall publish a notice of the increase at least twenty days before its effective date.

(2) If a railway company issues and publishes a tariff of rates for the movement of traffic in accordance with this Division and Division VI,

(a) the rates are the lawful rates of the railway company and, subject to subsection (1), they take effect on the date stated in the tariff;

(b) the tariff supersedes any preceding tariff or any portion of it in so far as any rate in the tariff is varied; and

(c) a railway company that owns or operates a railway line in respect of which the tariff is issued shall charge the rates in the tariff until they expire or until the tariff is superseded by a new tariff.

120. The provisions of this Division relating to tariffs, in so far as the Agency considers them applicable, apply to traffic carried by a railway company by water between ports or places in Canada if the company owns, charters, uses, maintains or operates vessels for carrying traffic by water between ports or places in Canada, or is a party to an arrangement for using, maintaining or operating vessels for that purpose.

121. (1) If traffic is to move over a continuous route in Canada and portions of it are operated by two or more railway companies, the companies shall, at the request of a shipper intending to move the traffic,

(a) agree on a joint tariff for the continuous route and on the apportionment of the rate in the joint tariff; or

(b) enter into a confidential contract for the continuous route.

(2) If the railway companies fail to agree or to enter into a confidential contract, the Agency, on the application of the shipper, may

(a) direct the companies, within any time that the Agency may specify, to agree on a joint tariff for the continuous route and an apportionment of the rate that is satisfactory to the Agency; or

(b) within ninety days after the application is received by the Agency,

(i) determine the route and the rate and apportion the rate among the companies, and

(ii) determine the dates, not earlier than the date of receipt by the Agency of the application, when the rate comes into effect and when it must be published.

(3) If the Agency determines a rate under paragraph (2)(b), the companies that operate the route shall pay a shipper who moved traffic over the route an amount equal to the difference, if any, between the rate that was paid by the shipper and the rate determined by the Agency, applicable to all movements of traffic by the shipper over the route from the date on which the application was made to the date on which the determined rate comes into effect.

122. (1) If a joint tariff or rate is agreed on or determined under section 121, the requirements of this Division for the publication of the tariff or rate apply only to the railway company operating the railway line on which the movement of the traffic originates.

(2) A joint tariff or rate agreed on or determined under subsection 121(2) must be published without delay, or within any additional time that the Agency may specify.

123. If traffic is to move over a continuous route from a point in Canada through a foreign country into Canada, or from a point in Canada to a foreign country, and the continuous route is operated by two or more railway companies, the requirements of this Division for the publication of an applicable joint tariff apply only to the railway company operating the railway line on which the movement of the traffic originates.

124. If traffic is to move over a continuous route from a point in a foreign country into Canada, or from a foreign country through Canada into a foreign country, and the continuous route is operated by two or more companies, the requirements of this Division for the publication of an applicable joint tariff apply only to the railway company operating the railway line on which the traffic is first moved in Canada.

125. (1) No railway company shall, by any combination, contract or agreement, express or implied, or by any other means, prevent traffic from being moved on a continuous route from the point of origin to the point of destination.

(2) A break in bulk, stop or interruption made by a railway company does not prevent the movement of traffic from being treated, for the purposes of sections 121 to 124, as one continuous movement from the point of origin to the point of destination, if the break, stop or interruption was made in good faith for a necessary purpose and without intent to avoid or unnecessarily interrupt the continuous movement or to evade the provisions of this Division.

(3) The Agency may direct a railway company operating on a continuous route to inform the Agency of the proportion of the rates that the railway company, or any other company operating on the continuous route, is to receive or has received under a joint tariff or confidential contract applicable to the route.

126. (1) A railway company may enter into a contract with a shipper that the parties agree to keep confidential respecting

(a) the rates to be charged by the company to the shipper;

(b) reductions or allowances pertaining to rates in tariffs that have been issued and published in accordance with this Division;

(c) rebates or allowances pertaining to rates in tariffs or confidential contracts that have previously been lawfully charged;

(d) any conditions relating to the traffic to be moved by the company; and

(e) the manner in which the company shall fulfill its service obligations under section 113.

(2) No party to a confidential contract is entitled to submit a matter governed by the contract to the Agency for final offer arbitration under section 161, without the consent of all the parties to the contract.

127. (1) If a railway line of one railway company connects with a railway line of another railway company, an application for an interswitching order may be made to the Agency by either company, by a municipal government or by any other interested person.

(2) The Agency may order the railway companies to provide reasonable facilities for the convenient interswitching of traffic in both directions at an interchange between the lines of either railway and those of other railway companies connecting with them.

(3) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km, or a prescribed greater distance, of an interchange, a railway company shall not transfer the traffic at the interchange except in accordance with the regulations.

(4) On the application of a person referred to in subsection (1), the Agency may deem a point of origin or destination of a movement of traffic in any particular case to be within 30 km, or a prescribed greater distance, of an interchange, if the Agency is of the opinion that, in the circumstances, the point of origin or destination is reasonably close to the interchange.

(a) prescribing terms and conditions governing the interswitching of traffic, other than terms and conditions relating to safety;

(b) determining the rate per car to be charged for interswitching traffic, or prescribing the manner of determining that rate, including the adjustments to be made to that rate as a result of changes in costs, and establishing distance zones for those purposes; and

(2) In determining an interswitching rate, the Agency shall take into consideration any reduction in costs that, in the opinion of the Agency, results from moving a greater number of cars or from transferring several cars at the same time.

(3) In determining an interswitching rate, the Agency shall consider the average variable costs of all movements of traffic that are subject to the rate and the rate must not be less than the variable costs of moving the traffic, as determined by the Agency.

(4) For greater certainty, the transfer of a railway line, or an operating interest in it, under Division V or section 158 of the National Transportation Act, 1987 does not affect any entitlement to an interswitching rate.

(5) The Agency shall review the regulations when the circumstances warrant and at least once in every five year period after the regulations are made.

(a) a shipper has access to the lines of only one railway company at the point of origin or destination of the movement of the shipper's traffic; and

(b) a continuous route between those points is operated by two or more companies.

(2) For greater certainty, the transfer of a railway line, or an operating interest in it, under Division V or section 158 of the National Transportation Act, 1987 does not affect the right of a shipper to obtain a competitive line rate under sections 130 to 136.

130. (1) Subject to section 131, the local carrier serving the shipper at the point of origin or destination, as the case may be, shall, on the request of the shipper, establish a competitive line rate applicable to the movement of the traffic between the point of origin or destination, whichever is served exclusively by the local carrier, and the nearest interchange with a connecting carrier.

(2) The local carrier shall establish the competitive line rate even if it is able to move the traffic over the whole of the continuous route or a portion of that route that is longer than the portion in respect of which the competitive line rate is to apply.

(3) The shipper may designate the continuous route for the movement of the shipper's traffic from the point of origin to the point of destination.

(4) If the ultimate point of destination of a movement of the shipper's traffic is in Canada, the shipper shall designate a route wholly within Canada, unless there is no cost-effective continuous route wholly within Canada that is available to the shipper and over which it is reasonable to move the shipper's traffic.

(a) if the point of destination of a movement of traffic is a port in Canada for export out of Canada, that port is the ultimate point of destination in Canada; and

(b) if the point of origin of a movement of traffic is a port in Canada for import into Canada, that port is the point of origin.

(6) For the purposes of subsection (1), the nearest interchange is the one nearest the point of origin or destination, whichever is served exclusively by the local carrier, in the reasonable direction of the movement of the traffic from the point of origin to the point of destination on the continuous route designated by the shipper, unless the local carrier can demonstrate that the interchange cannot be used for engineering reasons.

131. (1) A competitive line rate must not be established unless the shipper agrees with the connecting carrier, and with any other company, other than the local carrier, that moves traffic over a portion of the continuous route, on the terms and conditions governing their movement of the traffic, including the applicable rate.

(2) If an interswitching rate determined under paragraph 128(1)(b) is available for a portion of the route operated by the local carrier, no other rate may be applied to that portion of the route.

(3) A competitive line rate must not be established for the movement of trailers on flat cars, containers on flat cars or less than carload traffic, unless they arrive at a port in Canada by water for movement by rail or by rail for movement by water.

(4) The portion of a movement of traffic in respect of which a competitive line rate may be established must not exceed 50 per cent of the total number of kilometres over which the traffic is moved by rail or 1 200 km, whichever is greater.

(5) On application of a shipper, the Agency may establish a competitive line rate for a greater portion of a movement of traffic if the Agency is satisfied that no interchange exists within the maximum portion referred to in subsection (4).

(6) If a competitive line rate has been established for a movement of traffic of a shipper, no other competitive line rate may be established in respect of that movement while the rate is in effect.

132. (1) On the application of a shipper, the Agency shall, within forty-five days after receiving the application, establish any of the following matters in respect of which the shipper and the local carrier do not agree:

(a) the amount of the competitive line rate;

(b) the designation of the continuous route;

(d) the manner in which the local carrier shall fulfil its service obligations.

(2) If a matter is established by the Agency under this section, the shipper is not entitled to submit the matter to the Agency for final offer arbitration under section 161.

133. (1) A competitive line rate in respect of the movement of traffic of a shipper is the result obtained by applying the following formula:

B is the total revenue that the local carrier received in respect of all movement over its lines of railway

(a) of traffic that

(i) is the same as or substantially similar to, the traffic moved, and

(ii) is moved over similar distances, unless no such traffic is moved over similar distances; and

(b) during the most recent period designated by the local carrier or any other period determined by the Agency, if the Agency determines that the designated period is not appropriate in the circumstances;

C is the total number of tonne kilometres of the movement of traffic that generated the total revenue;

D is the number of kilometres over which the competitive line rate is to apply; and

E is the total number of kilometres to which the interswitching rate is applicable.

(2) If a shipper performs any of the activities in respect of which an interswitching rate is applicable, the applicable interswitching rate in the description of A in the formula must be adjusted to account for the performance of those activities.

(3) The Agency may make an order in respect of a particular shipper or railway company, or make regulations that apply generally to shippers or railway companies, establishing an alternative method of determining the amount of a competitive line rate if the amount cannot be determined in accordance with this section.

(4) A competitive line rate determined under this section must not be less than the variable costs of moving the traffic, as determined by the Agency.

134. A competitive line rate must be set out in a tariff or confidential contract.

135. If a competitive line rate is established by the Agency, it has effect for one year after its effective date, or for any other period that the shipper and the local carrier agree on.

136. (1) If a competitive line rate is established, a railway company, other than the local carrier, shall provide the shipper with an adequate supply of cars for the traffic being moved.

(2) Subject to any agreement to the contrary between the local carrier and any connecting carrier concerned, the connecting carrier is responsible for

(a) a prorated share, determined in accordance with subsection (3), of the costs of operating and maintaining the interchange during the period in respect of which the competitive line rate is in effect; and

(b) the capital cost of making any change or addition to the interchange that may be necessary for transferring the traffic for which the competitive line rate is established.

(a) the competitive line rate traffic transferred at the interchange during the period

is of

(b) the total traffic transferred at the interchange during the period.

(4) The tariff setting out a competitive line rate must set out the manner in which the local carrier issuing the tariff shall, subject to subsection (1), fulfil its service obligations

(a) as agreed on by the shipper and the local carrier, if they agree on the amount of the competitive line rate; or

(b) as determined by the Agency, if the amount of the competitive line rate is established by the Agency under section 132.

137. (1) A railway company shall not limit or restrict its liability to a shipper for the movement of traffic except by means of a written agreement signed by the shipper or by an association or other body representing shippers.

(2) If there is no agreement, the railway company's liability is limited or restricted to the extent provided in any terms and conditions that the Agency may

(a) on the application of the company, specify for the traffic; or

(b) prescribe by regulation, if none are specified for the traffic.

(a) take possession of, use or occupy any land belonging to any other railway company;

(b) use the whole or any portion of the right-of-way, tracks, terminals, stations or station grounds of any other railway company; and

(2) The Agency may grant the right and may make any order and impose any conditions on either railway company respecting the exercise or restriction of the rights as appear just or desirable to the Agency, having regard to the public interest.

(3) The railway company shall pay compensation to the other railway company for the right granted and, if they do not agree on the compensation, the Agency may, by order, fix the amount to be paid.

(a) on the application of a railway company, a municipal government or any other interested person, or on the Governor in Council's own initiative, and

(b) after any investigation that the Governor in Council considers necessary,

request two or more railway companies to consider the joint or common use of a right-of-way if the Governor in Council is of the opinion that its joint or common use may improve the efficiency and effectiveness of rail transport and would not unduly impair the commercial interests of the companies.

(2) If the Governor in Council is satisfied that significant efficiencies and cost savings would result from joint or common use of the right-of-way by two or more railway companies and would not unduly impair the commercial interests of the companies, the Governor in Council may make any order for the joint or common use of the right-of-way that the Governor in Council considers necessary.

(3) The Governor in Council may also, by order, fix the amount of compensation to be paid in respect of the joint or common use of the right-of-way and any related work if the companies do not agree on the amount of that compensation.

140. (1) In this Division, "railway line" includes a portion of a railway line, but does not include

(a) a yard track, siding or spur; or

(b) other track auxiliary to a railway line.

(2) The Agency may determine as a question of fact what constitutes a yard track, siding, spur or other track auxiliary to a railway line.

141. (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.

(2) The railway company shall make the plan available for public inspection in offices of the company that it designates for that purpose.

(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.

(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.

(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.

142. (1) A railway company shall comply with the steps described in this Division before discontinuing operating a railway line.

(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.

(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.

143. (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.

(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.

(3) The advertisement must also disclose 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.

144. (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.

144.1 (1) If a railway line, or a railway company’s operating interest in a railway line, is sold, leased or otherwise transferred under subsection 141(3) or as the result of an advertisement under subsection 143(1) and, before the day such advertisement was made, an agreement was in force between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line, the rights and obligations of the railway company under the agreement in respect of the operation of that service on that line vest, as of the day the transfer takes place, in the person or entity to which the railway line, or the operating interest, is transferred, unless the public passenger service provider indicates otherwise before that day.

(2) Whenever a railway company’s rights and obligations under an agreement with VIA Rail Canada Inc. are vested in another person or entity by subsection (1), the portion of the railway line to which the agreement relates is hereby declared, as of the day the transfer takes place, to be a work for the general advantage of Canada.

(a) VIA Rail Canada Inc. ceases to operate a passenger rail service on the portion of railway line to which the declaration relates; or

(b) the operation of the railway line is discontinued.

(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.

(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.

(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.

(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.

(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.

(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.

145. (1) The railway company shall offer to transfer all of its interest in the railway line to the governments and urban transit authorities mentioned in this section for not more than its net salvage value to be used for any purpose if

(a) no person makes their interest known to the railway company, or no agreement with an interested person is reached, within the required time; or

(b) an agreement is reached within the required time, but the transfer is not completed in accordance with the agreement.

(2) After the requirement to make the offer arises, the railway company shall send it simultaneously

(a) to the Minister if the railway line passes through

(i) more than one province or outside Canada,

(ii) land that is or was a reserve, as defined in subsection 2(1) of the Indian Act,

(iii) land that is the subject of an agreement entered into by the railway company and the Minister for the settlement of aboriginal land claims, or

(iv) a metropolitan area;

(b) to the minister responsible for transportation matters in the government of each province through which the railway line passes;

(d) to the clerk or other senior administrative officer of every municipal or district government through whose territory the railway line passes.

(a) by the Minister, the Government of Canada may accept it within thirty days;

(b) by a provincial minister, the government of the province may accept it within thirty days, unless the offer is received by the Minister, in which case the government of each province may accept it within an additional thirty days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph;

(b.1) by an urban transit authority, it may accept it within an additional 30 days after the end of the period or periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

(c) by a municipal or district government, it may accept it within an additional 30 days after the end of the period or periods for acceptance under paragraphs (a), (b) and (b.1), if it is not accepted under those paragraphs.

(4) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company must notify the other governments and urban transit authorities of the acceptance.

(5) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government or urban transit authority or the railway company, determine the net salvage value.

146. (1) If a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest in it is not entered into through that process, the railway company may discontinue operating the line on providing notice of the discontinuance to the Agency. After providing the notice, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by any public passenger service provider over the railway line.

(2) If the railway line, or any interest of the railway company in it, is sold, leased or otherwise transferred by an agreement entered into through the process set out in sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by any public passenger service provider over the railway line as and from that date.

146.1 A railway company that discontinues operating a grain-dependent branch line listed in Schedule I, or a portion of one, that is in a municipality or district shall, commencing on the date on which notice was provided under subsection 146(1), make three annual payments to the municipality or district in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.

146.2 (1) A railway company shall prepare and keep up to date a list of its sidings and spurs that it plans to dismantle and that are located in metropolitan areas or within the territory served by any urban transit authority, except for sidings and spurs located on a railway right-of-way that will continue to be used for railway operations subsequent to their dismantlement.

(2) The railway company shall publish the list on its Internet site and, whenever it makes a change to the list, 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 the province in which the siding or spur that is the subject of the change is located;

(d) the chairperson of the urban transit authority in whose territory the siding or spur that is the subject of the change is located; and

(e) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur that is the subject of the change is located.

(3) A railway company shall not take steps to dismantle a siding or a spur until at least 12 months have elapsed since the siding or spur was added to the list.

(4) Before dismantling a siding or a spur that has been on the list for at least 12 months, a railway company shall send simultaneously to each of the following an offer to transfer all of its interest in the siding or spur for not more than its net salvage value:

(a) the Minister;

(b) the minister responsible for transportation matters in the government of the province in which the siding or spur is located;

(d) the clerk or other senior administrative officer of the municipal or district government in which the siding or spur is located.

(a) by the Minister, the Government of Canada may accept it within 30 days;

(b) by the provincial minister, the government of the province may accept it within an additional 30 days after the end of the period mentioned in paragraph (a) if it is not accepted under that paragraph;

(c) by the chairperson of an urban transit authority, that authority may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and

(d) by the clerk or other senior administrative officer of a municipal or district government, that government may accept it within an additional 30 days after the end of the periods for acceptance under paragraphs (a), (b) and (c), if it is not accepted under those paragraphs.

(6) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company shall notify the other governments and urban transit authorities of the acceptance.

(7) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within 90 days after the acceptance, the Agency may, on the application of the government, the urban transit authority or the railway company, determine the net salvage value.

(8) If the offer is not accepted, the railway company may dismantle the siding or spur on providing notice to the Agency.

146.3 (1) A person to whom a railway line is offered under section 145, or to whom a siding or spur is offered under section 146.2, may apply to the Agency for a determination of the net salvage value of the railway line, siding or spur, as the case may be, at any time before the expiry of the period available to the person to accept the offer.

(2) The applicant shall without delay provide a copy of the application to the railway company, and the railway company shall without delay notify every other person to whom the offer was made and whose time to accept the offer has not expired that an application for a determination of the net salvage value was made.

(3) If an application is made under subsection (1), the time available to the applicant to accept the offer expires on the day that is 30 days after the day the Agency notifies the applicant of its determination of the net salvage value and the 30-day period for each other person to accept the offer is calculated on the expiry of the period available to the applicant to accept the offer.

(4) The applicant shall reimburse the Agency’s costs associated with the application.

146.4 Sections 146.2 and 146.3 apply, with any modifications that are necessary, to railway rights-of-way, that are located in metropolitan areas or within the territory served by any urban transit authority and in respect of which the sidings and spurs have been dismantled, that a railway company plans to sell, lease or otherwise transfer.

146.5 Sections 146.2 and 146.3 apply, with any modifications that are necessary, to passenger railway stations in Canada that a railway company plans to sell, lease or otherwise transfer or dismantle.

"crop year" means the period beginning on August 1 in any year and ending on July 31 in the next year;

"export", in respect of grain, means shipment by a vessel, as defined in section 2 of the Canada Shipping Act, 2001, to any destination outside Canada and shipment by any other mode of transport to the United States for use of the grain in that country and not for shipment out of that country;

"government hopper car" means a hopper car provided to a prescribed railway company by the government of Canada or a province or by the Canadian Wheat Board;

(a) any grain or crop included in Schedule II that is grown in the Western Division, or any product of it included in Schedule II that is processed in the Western Division, or

(b) any grain or crop included in Schedule II that is grown outside Canada and imported into Canada, or any product of any grain or crop included in Schedule II that is itself included in Schedule II and is processed outside Canada and imported into Canada;

"movement", in respect of grain, means the carriage of grain by a prescribed railway company over a railway line from a point on any line west of Thunder Bay or Armstrong, Ontario, to

(a) Thunder Bay or Armstrong, Ontario, or

(b) Churchill, Manitoba, or a port in British Columbia for export,

but does not include the carriage of grain to a port in British Columbia for export to the United States for consumption in that country;

"port in British Columbia" means Vancouver, North Vancouver, New Westminster, Roberts Bank, Prince Rupert, Ridley Island, Burnaby, Fraser Mills, Fraser Surrey, Fraser Wharves, Lake City, Lulu Island Junction, Port Coquitlam, Port Moody, Steveston, Tilbury and Woodwards Landing;

"prescribed railway company" means the Canadian National Railway Company, the Canadian Pacific Railway Company and any railway company that may be specified in the regulations;

"Western Division" means the part of Canada lying west of the meridian passing through the eastern boundary of the City of Thunder Bay, including the whole of the Province of Manitoba.

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.

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.

(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.

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).

(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.

(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; or

(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.

(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.

(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.

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 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 as determined by the Agency.

(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

(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

(4) The following rules are applicable to the volume-related composite price index:

(a) in the crop year 2000-2001, the index is deemed to be 1.0;

(b) the index applies in respect of all of the prescribed railway companies; and

(c) the Agency shall make adjustments to the index to reflect the costs incurred by the prescribed railway companies for the purpose of obtaining cars as a result of the sale, lease or other disposal or withdrawal from service of government hopper cars and the costs incurred by the prescribed railway companies for the maintenance of cars that have been so obtained.

(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 the volume-related composite price index on or before April 30 of the previous crop year.

(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.

(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.

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.

(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.

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.

(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.

152.3 Any decision of the Agency in respect of an application made under subsection 152.1(1) is binding on the parties for a period of five years after the day on which the decision is made, or for any other period agreed to by the parties that is specified in the decision.

152.4 (1) A railway company or a public passenger service provider must provide to any person who requests it

(a) a copy of any agreement entered into on or after the day on which this section comes into force concerning the use of the railway company’s railway, land, equipment, facilities or services; and

(b) subject to subsection (2), a copy of any agreement entered into before the day on which this section comes into force concerning the use of the railway company’s railway, land, equipment, facilities or services.

(2) The Agency may, on application by a railway company or a public passenger service provider, exclude an agreement, or any specified portion of an agreement, from the application of paragraph (1)(b) on the grounds that harm would likely result to the applicant if the agreement, or the specified portion, were to be disclosed.

156. (1) The Agency may prescribe for the Canadian National Railway Company and the Canadian Pacific Limited a uniform classification and system of accounts of their assets, liabilities, revenues, working expenditures, capitalization, traffic and operating statistics relating to railway operations.

(2) The Agency may prescribe for any other railway company a uniform classification and system as described in subsection (1) or in a condensed form.

(3) The Agency may prescribe the items to be classed as items relating to railway operations in the accounts.

(4) The Agency may prescribe the classes of property for which depreciation charges may properly be included under operating expenses in the accounts, and the rates of depreciation to be charged with respect to each of the classes of property.

(5) A railway company for which a classification and system of accounts is prescribed shall keep its accounts in accordance with the prescribed classification and system.

157. (1) The Agency may make regulations prescribing items and factors that it shall consider in determining costs under this Part, including depreciation and the cost of capital.

(a) the principles of costing adopted by the Royal Commission on Transportation appointed by the Order in Council dated May 13, 1959 in arriving at the conclusions contained in its report; and

(b) later developments in railway costing methods and techniques and current conditions of railway operations.

(3) If the costs of a portion of the railway of a railway company, or one of its operations, are to be computed

(a) for a particular period, the Agency must include in the computation any of the costs of the whole railway, or any other portion of it, that, in the opinion of the Agency, are reasonably attributable to the portion or operation, irrespective of when, in what manner or by whom the costs were incurred; and

(b) in respect of future operations of the company, the costs must be determined in accordance with estimates made on any basis that, in the opinion of the Agency, is reasonable in the circumstances.

(4) A determination of costs by the Agency under this Part is final and binding on all interested or affected parties.

157.1 (1) The Minister may enter into an agreement with a provincial minister responsible for transportation matters providing for the administration, in relation to persons who operate railways within the legislative authority of the province, of any law respecting:

(a) railway safety, accident investigation and railway crossings; or

(b) railway noise or the regulation of the rates and conditions of service of railway companies to the extent that those matters are governed by this Act.

(2) The Minister may designate any body established under an Act of Parliament, or any person or class of persons employed in the federal public administration, to administer the law in accordance with the agreement.

(3) The designated body, person or class of persons may perform any function or duty and exercise any powers necessary for the enforcement of the law, to the extent specified in the agreement.

158. The Minister may enter into an agreement with a provincial authority to authorize the provincial authority to regulate the construction, operation and safety of a railway as well as the rates and conditions of service in the same manner and to the same extent as it may regulate a railway within its jurisdiction.

159. (1) Sections 161 to 169 apply only in respect of matters arising between shippers and carriers that involve

(a) the carriage of goods by air to which Part II applies, other than their carriage internationally;

(b) the carriage of goods by railways to which this Act applies, other than the carriage of goods in trailers or containers on flat cars unless the containers arrive by water at a port in Canada, served by only one railway company, for further movement by rail or arrive by rail at such a port in Canada for further movement by water; or

(c) the carriage by water, for hire or reward, of goods required for the maintenance or development of a municipality or any permanent settlement for northern marine resupply purposes, other than goods required in relation to national defence or in relation to the exploration for or the development, extraction or processing of oil, gas or any mineral.

(a) the rivers, streams, lakes and other waters within the watershed of the Mackenzie River;

(b) the territorial sea and internal waters of Canada that are adjacent to the coast of the mainland and islands of the Canadian Arctic and situated within the area bounded by the meridians of longitude 95o West and 141o West and the parallels of latitude 66o 00'30" North and 74o00'20" North; and

(c) the internal waters of Canada comprised in Spence Bay and Shepherd Bay and situated east of the meridian of longitude 95o West.

(a) the total register tonnage of all ships used to provide the resupply service exceeds fifty register tons; or

(b) the resupply service originates from a point situated on the waters described in subsection (2).

160. Sections 161 to 169 also apply, with such modifications as the circumstances require, in respect of the rates charged or proposed to be charged by, or any of the conditions associated with the provision of services by, a railway company to

(a) a commuter rail authority designated by the government of a province; or

(b) a railway company engaged in passenger rail services.

161. (1) A shipper who is dissatisfied with the rate or rates charged or proposed to be charged by a carrier for the movement of goods, or with any of the conditions associated with the movement of goods, may, if the matter cannot be resolved between the shipper and the carrier, submit the matter in writing to the Agency for a final offer arbitration to be conducted by one arbitrator or, if the shipper and the carrier agree, by a panel of three arbitrators.

(2) A copy of a submission under subsection (1) shall be served on the carrier by the shipper and the submission shall contain

(a) the final offer of the shipper to the carrier in the matter, excluding any dollar amounts;

(b) [Repealed 2000 c.16, s.11(2)];

(c) an undertaking by the shipper to ship the goods to which the arbitration relates in accordance with the decision of the arbitrator;

(d) an undertaking by the shipper to the Agency whereby the shipper agrees to pay to the arbitrator the fee for which the shipper is liable under section 166 as a party to the arbitration; and

(e) the name of the arbitrator, if any, that the shipper and the carrier agreed should conduct the arbitration or, if they agreed that the arbitration should be conducted by a panel of three arbitrators, the name of an arbitrator chosen by the shipper and the name of an arbitrator chosen by the carrier.

(3) The Agency shall not have any matter submitted to it by a shipper under subsection (1) arbitrated if the shipper has not, at least five days before making the submission, served on the carrier a written notice indicating that the shipper intends to submit the matter to the Agency for a final offer arbitration.

161.1 (1) Within 10 days after a submission is served under subsection 161(2), the shipper and the carrier shall submit to the Agency their final offers, including dollar amounts.

(2) Without delay after final offers are submitted under subsection (1) by both the shipper and the carrier, the Agency shall provide the shipper and the carrier with copies of each other's final offer.

(3) If one party does not submit a final offer in accordance with subsection (1), the final offer submitted by the other party is deemed to be the final offer selected by the arbitrator under subsection 165(1).

162. (1) Notwithstanding any application filed with the Agency by a carrier in respect of a matter, within five days after final offers are received under subsection 161.1(1), the Agency shall refer the matter for arbitration

(a) if the parties did not agree that the arbitration should be conducted by a panel of three arbitrators, to the arbitrator, if any, named under paragraph 161(2)(e) or, if that arbitrator is not, in the opinion of the Agency, available to conduct the arbitration or no arbitrator is named, to an arbitrator on the list of arbitrators referred to in section 169 who the Agency chooses and determines is appropriate and available to conduct the arbitration; and

(b) if the parties agreed that the arbitration should be conducted by a panel of three arbitrators,

(i) to the arbitrators named by the parties under paragraph 161(2)(e) and to any arbitrator who those arbitrators have, within 10 days after the submission was served under subsection 161(2), notified the Agency that they have agreed on, or if those arbitrators did not so notify the Agency, to an arbitrator on the list of arbitrators referred to in section 169 who the Agency chooses and determines is appropriate and available to conduct the arbitration, or

(ii) if an arbitrator referred to in subparagraph (i) is not, in the opinion of the Agency, available to conduct the arbitration, to the arbitrators named in that subparagraph who are available and to an arbitrator chosen by the Agency from the list of arbitrators referred to in section 169 who the Agency determines is appropriate and available to conduct the arbitration.

(1.1) If a matter was referred to a panel of arbitrators, every reference in subsections (1.2) and (2) and sections 163 to 169 to an arbitrator or the arbitrator shall be construed as a reference to a panel of arbitrators or the panel of arbitrators, as the case may be.

(1.2) If the shipper consents to an application referred to in subsection (1) being heard before the matter is referred to an arbitrator, the Agency shall defer referring the matter until the application is dealt with.

162.1 The Agency may, in addition to any other decision or order it may make, order that an arbitration be discontinued, that it be continued subject to the terms and conditions that the Agency may fix or that the decision of the arbitrator be set aside if

(a) the Agency makes a decision or an order arising out of an application that is in respect of a matter submitted to the Agency for a final offer arbitration and that is filed by a carrier before the matter is referred to arbitration; and

(b) the decision or order affects the arbitration.

163. (1) In the absence of an agreement by the arbitrator and the parties as to the procedure to be followed, a final offer arbitration shall be governed by the rules of procedure made by the Agency.

(2) The arbitrator shall conduct the arbitration proceedings as expeditiously as possible and, subject to the procedure referred to in subsection (1), in the manner the arbitrator considers appropriate having regard to the circumstances of the matter.

(3) Within fifteen days after the Agency refers a matter for arbitration, the parties shall exchange the information that they intend to submit to the arbitrator in support of their final offers.

(4) Within seven days after receipt of the information referred to in subsection (3), each party may direct interrogatories to the other, which shall be answered within fifteen days after their receipt.

(5) If a party unreasonably withholds information that the arbitrator subsequently deems to be relevant, that withholding shall be taken into account by the arbitrator in making a decision.

164. (1) The arbitrator shall, in conducting a final offer arbitration between a shipper and a carrier, have regard to the information provided to the arbitrator by the parties in support of their final offers and, unless the parties agree to limit the amount of information to be provided, to any additional information that is provided by the parties at the arbitrator's request.

(2) Unless the parties agree otherwise, in rendering a decision the arbitrator shall have regard to whether there is available to the shipper an alternative, effective, adequate and competitive means of transporting the goods to which the matter relates and to all considerations that appear to the arbitrator to be relevant to the matter.

164.1 If the Agency determines that a shipper's final offer submitted under subsection 161.1(1) involves freight charges in an amount of not more than $750,000 and the shipper did not indicate a contrary intention when submitting the offer, sections 163 and 164 do not apply and the arbitration shall proceed as follows:

(a) within seven days after a matter is referred to an arbitrator, the shipper and the carrier may file with the arbitrator a response to the final offer of the other party;

(b) subject to paragraph (c), the arbitrator shall decide the matter on the basis of the final offers and any response filed under paragraph (a); and

(c) if the arbitrator considers it necessary, the arbitrator may invite the parties to make oral representations or may ask the parties to appear before him or her to provide further information.

165. (1) The decision of the arbitrator in conducting a final offer arbitration shall be the selection by the arbitrator of the final offer of either the shipper or the carrier.

(a) be in writing;

(b) unless the parties agree otherwise, be rendered within 60 days or, in the case of an arbitration conducted in accordance with section 164.1, 30 days after the date on which the submission for the final offer arbitration was received by the Agency; and

(c) unless the parties agree otherwise, be rendered so as to apply to the parties for a period of one year or any lesser period that may be appropriate, having regard to the negotiations between the parties that preceded the arbitration.

(3) The carrier shall, without delay after the arbitrator's decision, set out the rate or rates or the conditions associated with the movement of goods that have been selected by the arbitrator in a tariff of the carrier, unless, where the carrier is entitled to keep the rate or rates or conditions confidential, the parties to the arbitration agree to include the rate or rates or conditions in a contract that the parties agree to keep confidential.

(5) The arbitrator shall, if requested by all of the parties to the arbitration within 30 days or, in the case of an arbitration conducted in accordance with section 164.1, seven days after the decision of the arbitrator, give written reasons for the decision.

(a) the decision of the arbitrator on a final offer arbitration shall be final and binding and be applicable to the parties as of the date on which the submission for the arbitration was received by the Agency from the shipper, and is enforceable as if it were an order of the Agency; and

(b) the arbitrator shall direct in the decision that interest at a reasonable rate specified by the arbitrator shall be paid to one of the parties by the other on moneys that, as a result of the application of paragraph (a), are owed by a party for the period between the date referred to in that paragraph and the date of the payment.

(7) Moneys and interest referred to in paragraph (6)(b) that are owed by a party pursuant to a decision of the arbitrator shall be paid without delay to the other party.

166. (1) The Agency may fix the fee to be paid to an arbitrator for the costs of, and the services provided by, the arbitrator in final offer arbitration proceedings.

(2) The shipper and the carrier shall share equally, whether or not the proceedings are terminated pursuant to section 168, in the payment of the fee fixed under subsection (1) and in the cost

(a) borne by the Agency for administrative, technical and legal services provided to the arbitrator pursuant to subsection 162(2); and

(b) of the preparation of any reasons requested pursuant to subsection 165(5).

167. Where the Agency is advised that a party to a final offer arbitration wishes to keep matters relating to the arbitration confidential,

(a) the Agency and the arbitrator shall take all reasonably necessary measures to ensure that the matters are not disclosed by the Agency or the arbitrator or during the arbitration proceedings to any person other than the parties; and

(b) no reasons for the decision given pursuant to subsection 165(5) shall contain those matters or any information included in a contract that the parties agreed to keep confidential.

168. Where, before the arbitrator renders a decision on a final offer arbitration, the parties advise the Agency or the arbitrator that they agree that the matter being arbitrated should be withdrawn from arbitration, the arbitration proceedings in respect of the matter shall be immediately terminated.

169. (1) The Agency shall, from time to time, in consultation with representatives of shippers and carriers, establish a list of persons who agree to act as arbitrators in final offer arbitrations. The list must state which of the persons have indicated that they have expertise that may assist them in conducting final offer arbitrations and the nature of that expertise.

(2) A separate list of persons may be established under subsection (1) in respect of each or any mode of transportation, as the Agency considers appropriate.

(3) The Agency shall have the list of persons made known to representatives of shippers and carriers throughout Canada.

170. (1) The Agency may make regulations for the purpose of eliminating undue obstacles in the transportation network under the legislative authority of Parliament to the mobility of persons with disabilities, including regulations respecting

(a) the design, construction or modification of, and the posting of signs on, in or around, means of transportation and related facilities and premises, including equipment used in them;

(b) the training of personnel employed at or in those facilities or premises or by carriers;

(c) tariffs, rates, fares, charges and terms and conditions of carriage applicable in respect of the transportation of persons with disabilities or incidental services; and

(d) the communication of information to persons with disabilities.

(2) Regulations made under subsection (1) incorporating standards or enactments by reference may incorporate them as amended from time to time.

(3) The Agency may, with the approval of the Governor in Council, make orders exempting specified persons, means of transportation, services or related facilities and premises from the application of regulations made under subsection (1).

171. The Agency and the Canadian Human Rights Commission shall coordinate their activities in relation to the transportation of persons with disabilities in order to foster complementary policies and practices and to avoid jurisdictional conflicts.

172. (1) The Agency may, on application, inquire into a matter in relation to which a regulation could be made under subsection 170(1), regardless of whether such a regulation has been made, in order to determine whether there is an undue obstacle to the mobility of persons with disabilities.

(2) Where the Agency is satisfied that regulations made under subsection 170(1) that are applicable in relation to a matter have been complied with or have not been contravened, the Agency shall determine that there is no undue obstacle to the mobility of persons with disabilities.

(3) On determining that there is an undue obstacle to the mobility of persons with disabilities, the Agency may require the taking of appropriate corrective measures or direct that compensation be paid for any expense incurred by a person with a disability arising out of the undue obstacle, or both.

173. (1) No person shall knowingly make any false or misleading statement or knowingly provide false or misleading information to the Agency or the Minister or to any person acting on behalf of the Agency or the Minister in connection with any matter under this Act.

(2) No person shall knowingly obstruct or hinder, or make any false or misleading statement, either orally or in writing, to a person designated as an enforcement officer pursuant to paragraph 178(1)(a) who is engaged in carrying out functions under this Act.

174. Every person who contravenes a provision of this Act or a regulation or order made under this Act, other than an order made under section 47, is guilty of an offence punishable on summary conviction and liable

(a) in the case of an individual, to a fine not exceeding $5,000; and

(b) in the case of a corporation, to a fine not exceeding $25,000.

175. Where a corporation commits an offence under this Act, every person who at the time of the commission of the offence was a director or officer of the corporation is guilty of the like offence unless the act or omission constituting the offence took place without the person's knowledge or consent or the person exercised all due diligence to prevent the commission of the offence.

176. Proceedings by way of summary conviction in respect of an offence under this Act may be instituted within but not later than twelve months after the time when the subject-matter of the proceedings arose.

176.1 For the purposes of sections 180.1 to 180.7, "Tribunal" means the Transportation Appeal Tribunal of Canada established by subsection 2(1) of the Transportation Appeal Tribunal of Canada Act.

(a) designate

(i) any provision of this Act or of any regulation, order or direction made pursuant to this Act,

(ii) the requirements of any provision referred to in subparagraph (i), or

(iii) any condition of a licence issued under this Act,

as a provision, requirement or condition the contravention of which may be proceeded with as a violation in accordance with sections 179 and 180; and

(b) prescribe the maximum amount payable for each violation, but the amount shall not exceed

(i) $5,000, in the case of an individual, and

(ii) $25,000, in the case of a corporation.

(a) designate as a provision or requirement the contravention of which may be proceeded with as a violation in accordance with sections 179 and 180 any provision of section 51 or of any regulation made under section 50 or 51, or any requirement of any of those provisions; and

(b) prescribe the maximum amount payable for each violation, but the amount shall not exceed

(i) $5,000, in the case of an individual,and

(ii) $25,000, in the case of a corporation.

178. (1) The Agency, in respect of a violation referred to in subsection 177(1), or the Minister, in respect of a violation referred to in subsection 177(2), may

(a) designate persons, or classes of persons, as enforcement officers who are authorized to issue notices of violation; and

(b) establish the form and content of notices of violation.

(2) Every person designated as an enforcement officer pursuant to paragraph (1)(a) has the powers of entry and inspection referred to in paragraph 39(a).

(3) Every person designated as an enforcement officer pursuant to paragraph (1)(a) shall receive an authorization in prescribed form attesting to the person's designation and shall, on demand, present the authorization to any person from whom the enforcement officer requests information in the course of the enforcement officer's duties.

(4) For the purposes of determining whether a violation referred to in section 177 has been committed, a person designated as an enforcement officer pursuant to paragraph (1)(a) may require any person to produce for examination or reproduction all or part of any document or electronically stored data that the enforcement officer believes on reasonable grounds contain any information relevant to the enforcement of this Act.

(5) Any person from whom documents or data are requested pursuant to subsection (4) shall provide all such reasonable assistance as is in their power to enable the enforcement officer making the request to carry out the enforcement officer's duties and shall furnish such information as the enforcement officer reasonably requires for the purposes of this Act.

179. (1) Every person who contravenes a provision, requirement or condition designated under section 177 commits a violation and is liable to a penalty fixed pursuant to that section.

(2) Where any act or omission can be proceeded with as a violation or as an offence, proceedings may be commenced in respect of that act or omission as a violation or as an offence, but proceeding with it as a violation precludes proceeding with it as an offence, and proceeding with it as an offence precludes proceeding with it as a violation.

(3) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply.

180. If a person designated as an enforcement officer under paragraph 178(1)(a) believes that a person has committed a violation, the enforcement officer may issue and serve on the person a notice of violation that names the person, identifies the violation and sets out

(a) the penalty, established in accordance with the regulations made under section 177, for the violation that the person is liable to pay; and

(b) the particulars concerning the time for paying and the manner of paying the penalty.

180.1 A person who has been served with a notice of violation must either pay the amount of the penalty specified in the notice or file with the Tribunal a written request for a review of the facts of the alleged contravention or of the amount of the penalty.

180.2 If a person who is served with a notice of violation pays the amount specified in the notice in accordance with the particulars set out in it, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the contravention by that person of the designated provision and no further proceedings under this Part shall be taken against the person in respect of that contravention.

180.3 (1) A person who is served with a notice of violation and who wishes to have the facts of the alleged contravention or the amount of the penalty reviewed shall, on or before the date specified in the notice or within any further time that the Tribunal on application may allow, file a written request for a review with the Tribunal at the address set out in the notice.

(2) On receipt of a request filed under subsection (1), the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person who filed the request of the time and place in writing.

(3) The member of the Tribunal assigned to conduct the review shall provide the Minister and the person who filed the request with an opportunity consistent with procedural fairness and natural justice to present evidence and make representations.

(4) The burden of establishing that a person has contravened a designated provision is on the Minister.

(5) A person who is alleged to have contravened a designated provision is not required, and shall not be compelled, to give any evidence or testimony in the matter.

180.4 If a person neither pays the amount of the penalty in accordance with the particulars set out in the notice of violation nor files a request for a review under subsection 180.3(1), the person is deemed to have committed the contravention alleged in the notice, and the Minister may obtain from the Tribunal a certificate in the form that may be established by the Governor in Council that indicates the amount of the penalty specified in the notice.

180.5 If, at the conclusion of a review under section 180.3, the member of the Tribunal who conducts the review determines that

(a) the person has not contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and, subject to section 180.6, no further proceedings under this Part shall be taken against the person in respect of the alleged contravention; or

(b) the person has contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and, subject to any regulations made under section 177, of the amount determined by the member of the Tribunal to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time that the member of the Tribunal may allow, the member of the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person.

180.6 (1) The Minister or a person affected by a determination made under section 180.5 may, within 30 days after the determination, appeal it to the Tribunal.

(2) A party that does not appear at a review hearing is not entitled to appeal a determination, unless they establish that there was sufficient reason to justify their absence.

(3) The appeal panel of the Tribunal assigned to hear the appeal may dispose of the appeal by dismissing it or allowing it and, in allowing the appeal, the panel may substitute its decision for the determination appealed against.

(4) If the appeal panel finds that a person has contravened the designated provision, the panel shall without delay inform the person of the finding and, subject to any regulations made under section 177, of the amount determined by the panel to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time allowed by the Tribunal, the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person.

180.7 (1) If the time limit for the payment of an amount determined by the Minister in a notice of violation has expired, the time limit for the request for a review has expired, the time limit for an appeal has expired, or an appeal has been disposed of, on production in any superior court, a certificate issued under section 180.4, paragraph 180.5(b) or subsection 180.6(4) shall be registered in the court. When it is registered, a certificate has the same force and effect, and proceedings may be taken in connection with it, as if it were a judgment in that court obtained by Her Majesty in right of Canada against the person named in the certificate for a debt of the amount set out in the certificate.

(2) All reasonable costs and charges attendant on the registration of the certificate are recoverable in like manner as if they had been certified and the certificate had been registered under subsection (1).

(3) An amount received by the Minister or the Tribunal under this section is deemed to be public money within the meaning of the Financial Administration Act.

180.8 (1) In the case of a violation referred to in subsection 177(1), every reference to the “Minister” in sections 180.3 to 180.7 shall be read as a reference to the Agency or to a person designated by the Agency.

(2) In the case of a violation referred to in subsection 177(2), the Minister may delegate to the Agency any power, duty or function conferred on the Minister under this Part.

181. Proceedings in respect of a violation may be instituted not later than twelve months after the time when the subject-matter of the proceedings arose.

Canada Transportation Act

1996, c-10