Canada Transportation Act

Marginal note:Competitive line rate

• 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:

  A + (B/C × (D - E))

  where

  A

  is the amount resulting from the application of the interswitching rate;

  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.

• Marginal note:Adjustment of rate

  (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.

• Marginal note:Alternative determination

  (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.

• Marginal note:Rate must be compensatory

  (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.