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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 IVRates, Tariffs and Services (continued)

Long-haul Interswitching (continued)

Marginal note:Conditions

  •  (1) Subsection (2) applies if

    • (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;

    • (b) the railway company referred to in paragraph (a) is not a class 1 rail carrier; and

    • (c) there is a junction between the lines of the railway company referred to in paragraph (a) and the lines of a railway that is operated by a class 1 rail carrier and the shipper has access to only those railway lines at that junction.

  • Marginal note:Deeming

    (2) For the purposes of sections 129 and 131 to 136.6,

    • (a) the junction referred to in paragraph (1)(c) is deemed to be the point of origin or the point of destination, as the case may be;

    • (b) the junction referred to in paragraph (1)(c) is deemed to be served exclusively by the class 1 rail carrier referred to in that paragraph; and

    • (c) the class 1 rail carrier referred to in paragraph (1)(c) is deemed to be the local carrier.

  • 1996, c. 10, s. 130
  • 2018, c. 10, s. 29

Marginal note:Transferred railway lines

 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 apply for a long-haul interswitching order.

  • 1996, c. 10, s. 131
  • 2018, c. 10, s. 29

Marginal note:Contents of application

 The shipper shall, in its application for a long-haul interswitching order,

  • (a) provide an undertaking to the local carrier to move the traffic by rail with the local carrier between the point of origin or destination that is served exclusively by the local carrier and the nearest interchange in Canada with a connecting carrier in accordance with the long-haul interswitching order; and

  • (b) indicate the continuous route that the shipper has chosen for the movement of the shipper’s traffic.

  • 1996, c. 10, s. 132
  • 2018, c. 10, s. 29

Marginal note:Dismissal of application

 The Agency shall dismiss the application for a long-haul interswitching order if the shipper does not demonstrate, to the Agency’s satisfaction, that an attempt has been made to resolve the matters referred to in the application.

  • 1996, c. 10, s. 133
  • 2018, c. 10, s. 29

Marginal note:Determination by Agency

  •  (1) Within 30 business days after receiving the application for a long-haul interswitching order, the Agency shall, by order, determine any of the following matters in respect of which the shipper and the local carrier do not agree:

    • (a) the long-haul interswitching rate that applies in respect of the movement of the shipper’s traffic between the point of origin or destination that is served exclusively by the class 1 rail carrier and the nearest interchange in Canada with a connecting carrier;

    • (b) the continuous route from the point of origin to the point of destination;

    • (c) the nearest interchange in Canada; and

    • (d) the manner in which the local carrier is to fulfil its service obligations in respect of the movement of traffic described in paragraph (a).

  • Marginal note:Maximum portion of traffic

    (2) The Agency shall not make a long-haul interswitching order if the movement of the shipper’s traffic between the point of origin or destination that is served exclusively by the class 1 rail carrier and the nearest interchange in Canada exceeds the greater of

    • (a) 1 200 km; and

    • (b) 50% of the total number of kilometres over which the traffic is moved by rail in Canada.

  • 1996, c. 10, s. 134
  • 2018, c. 10, s. 29

Marginal note:Long-haul interswitching rate

  •  (1) The following rules apply to the determination of the long-haul interswitching rate:

    • (a) for the first 30 km, the rate is to be the interswitching rate; and

    • (b) for the remainder of the distance, the Agency shall determine the rate by having regard to the revenue per tonne kilometre for the movement by the local carrier of comparable traffic in respect of which no long-haul interswitching rate applies.

  • Marginal note:Minimum rate

    (2) The Agency shall not determine the rate described in paragraph (1)(b) to be less than the average of the revenue per tonne kilometre for the movement by the local carrier of comparable traffic in respect of which no long-haul interswitching rate applies.

  • Marginal note:Factors to consider — comparable traffic

    (3) For the purpose of paragraph (1)(b), the Agency shall determine what constitutes comparable traffic by having regard to

    • (a) the type of traffic;

    • (b) the distance over which the traffic is moved;

    • (c) the conditions of the movement of the traffic, including whether it is moved as single cars, blocks of cars or unit trains;

    • (d) the type and ownership of the cars used to move the traffic;

    • (e) the handling requirements for the traffic;

    • (f) the volume and frequency of the traffic;

    • (g) any undertaking given by the shipper in respect of the volume of the traffic;

    • (h) any incentives, rebates or any similar reductions in respect of the traffic; and

    • (i) any other factor related to the requirements of the shipper and the local carrier that the Agency considers appropriate.

  • Marginal note:Factors to consider — rate

    (4) The Agency shall determine the rate described in paragraph (1)(b) by having regard to the factors described in subsection (3), the density of traffic on the lines of the local carrier on which the traffic is to be moved and any long-term investment needed in those lines.

  • 1996, c. 10, s. 135
  • 2018, c. 10, ss. 29, 95

Marginal note:Continuous route

  •  (1) The Agency shall, in determining the continuous route from the point of origin to the point of destination, have regard to the continuous route that has been chosen by the shipper for the movement of its traffic in its application.

  • Marginal note:Route in Canada

    (2) If the point of destination of the continuous route of a movement of the shipper’s traffic is in Canada, the Agency shall determine a continuous route that is 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.

  • Marginal note:Export and import

    (3) For the purposes of subsections (1) and (2),

    • (a) if the traffic is to be moved through a port in Canada for import into Canada, that port is the point of origin; and

    • (b) if the traffic is to be moved through a port in Canada for export out of Canada, that port is the point of destination.

  • 1996, c. 10, s. 136
  • 2018, c. 10, s. 29

Marginal note:Nearest interchange

 The Agency shall determine the nearest interchange in Canada to be the one nearest to 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, unless the local carrier can demonstrate that the interchange cannot be used for engineering reasons.

  • 2018, c. 10, s. 29

Marginal note:Service obligations

 The Agency shall determine the manner in which the local carrier is to fulfil its service obligations by having regard to the considerations set out in paragraphs 116(1.2)(a) to (i).

  • 2018, c. 10, s. 29
 
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