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

Act current to 2019-08-28 and last amended on 2019-07-11. Previous Versions

PART IIIRailway Transportation (continued)

DIVISION IIConstruction and Operation of Railways (continued)

Certificate of Fitness (continued)

Marginal note:Application for certificate of fitness

  •  (1) Any person may apply for a certificate of fitness for a railway, including a person who owns or leases the railway or controls, either directly or indirectly, a person who owns or leases the railway.

  • Marginal note:Application for certain types of operations

    (2) If a person proposes to operate in Canada primarily on the railway of another railway company, the application must indicate the termini and route of every line of railway proposed to be operated.

Marginal note:Issuance of certificate of fitness

  •  (1) The Agency shall issue a certificate of fitness

    • (a) for the proposed operation of a railway that relates to a passenger rail service or for the proposed construction of a railway, if the Agency is satisfied that there will be adequate liability insurance coverage for the proposed operation or construction, as determined in accordance with the regulations; or

    • (b) for the proposed operation of a railway that does not relate to a passenger rail service, if the Agency is satisfied that there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

  • Marginal note:Covered risks

    (1.1) The liability insurance referred to in paragraph (1)(b) must cover the following risks that may arise out of the proposed operation:

    • (a) third-party bodily injury or death, including injury or death to passengers;

    • (b) third-party property damage, excluding damage to goods carried on a shipper’s behalf;

    • (c) risks that are associated with a leak, pollution or contamination; and

    • (d) in the case of a railway accident as defined in section 152.5, the other losses, damages, costs and expenses described in subsection 153(1).

  • Marginal note:Self-insurance

    (1.2) For the purpose of paragraph (1)(b), the amount of self-insurance must not exceed the maximum amount of self-insurance that the person who will be responsible for the proposed operation can sustain based on that person’s financial capability.

  • Marginal note:Termini and route

    (2) A certificate of fitness issued pursuant to an application mentioned in subsection 91(2) must specify the termini and route of every railway line to be operated.

  • Marginal note:Regulations made by Agency

    (3) The Agency may make regulations

    • (a) in respect of the proposed operation of a railway that relates to a passenger rail service or of a proposed construction of a railway, for determining the adequacy of liability insurance coverage, including any self-insurance; and

    • (b) in respect of the proposed operation of a railway that does not relate to a passenger rail service, respecting the provision of information that the Agency requires to determine whether there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

  • Marginal note:Regulations made by Governor in Council

    (4) The Governor in Council may, by regulation, amend Schedule IV by deleting or adding a class of railway operations and an amount of minimum liability insurance coverage or by amending such a class — including by adding or deleting factors that define its scope — or such an amount.

  • 1996, c. 10, s. 92
  • 2015, c. 31, s. 6

Marginal note:Variation of certificate

  •  (1) The Agency may, on application, vary a certificate of fitness

    • (a) to change the termini or route of a line specified in the certificate;

    • (b) to add a line to the certificate; or

    • (c) to reflect a change in railway operations or circumstances relating to those operations.

  • Marginal note:Variation when running rights granted

    (2) The Agency may vary a certificate of fitness when it

    • (a) makes an order under paragraph 116(4)(e) that requires a railway company to grant a right to the holder of the certificate; or

    • (b) grants a right under section 138 to the holder of the certificate.

  • 1996, c. 10, s. 93
  • 2000, c. 16, s. 3

Liability Insurance

Marginal note:Continuing requirement

  •  (1) The holder of a certificate of fitness shall maintain at all times,

    • (a) if the certificate was issued under paragraph 92(1)(a), adequate liability insurance coverage, as determined in accordance with the regulations, for the operation or construction of the railway for which the certificate was issued; or

    • (b) if the certificate was issued under paragraph 92(1)(b), the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV, for the operation of the railway for which the certificate was issued.

  • Marginal note:Covered risks

    (2) The liability insurance referred to in paragraph (1)(b) must cover the risks described in paragraphs 92(1.1)(a) to (d) that may arise out of the operation.

  • Marginal note:Self-insurance

    (3) For the purpose of paragraph (1)(b), the amount of self-insurance must not exceed the maximum amount of self-insurance that the holder of the certificate of fitness can sustain based on its financial capability.

  • 2015, c. 31, s. 7

Marginal note:Notice of insurance changes

 The holder of a certificate of fitness shall notify the Agency in writing without delay

  • (a) if the liability insurance coverage is cancelled or altered; or

  • (b) if there are any changes to the construction or operation that may affect the liability insurance coverage.

  • 1996, c. 10, s. 94
  • 2015, c. 31, s. 7

Marginal note:Inquiry

 The Agency may make an inquiry to determine whether a holder of a certificate of fitness complies with section 93.1.

  • 2015, c. 31, s. 7

Marginal note:Suspension or cancellation of certificate of fitness

 The Agency shall suspend or cancel a certificate of fitness if it determines that the holder of the certificate has failed to comply with section 93.1.

  • 2015, c. 31, s. 7

General Powers of Railway Companies

Marginal note:Powers

  •  (1) Subject to the provisions of this Part and any other Act of Parliament, a railway company may exercise the following powers for the purpose of constructing or operating its railway:

    • (a) make or construct tunnels, embankments, aqueducts, bridges, roads, conduits, drains, piers, arches, cuttings and fences across or along a railway, watercourse, canal or road that adjoins or intersects the railway;

    • (b) divert or alter the course of a watercourse or road, or raise or lower it, in order to carry it more conveniently across or along the railway;

    • (c) make drains or conduits into, through or under land adjoining the railway for the purpose of conveying water from or to the railway;

    • (d) divert or alter the position of a water pipe, gas pipe, sewer or drain, or telegraph, telephone or electric line, wire or pole across or along the railway; and

    • (e) do anything else necessary for the construction or operation of the railway.

  • Marginal note:Minimal damage

    (2) The railway company shall do as little damage as possible in the exercise of the powers.

  • Marginal note:Restoration

    (3) If the railway company diverts or alters anything mentioned in paragraph (1)(b) or (d), the company shall restore it as nearly as possible to its former condition, or shall put it in a condition that does not substantially impair its usefulness.

  • Marginal note:Compensation

    (4) The railway company shall pay compensation to a person who sustains actual loss or damage from the exercise of the powers and the compensation must equal the amount of the loss or damage that the company would be liable to pay the person if the powers had not been conferred by statute.

 
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