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

Marginal note:Application

• 88 (1) This Part applies to all persons, railway companies and railways within the legislative authority of Parliament.

• Marginal note:Special cases

  (2) Without limiting the effect of subsection (1), this Part applies to

  • (a) a company operating a railway from the United States into Canada; and

  • (b) a railway, or a portion of a railway, whether or not constructed under the authority of an Act of Parliament, that is owned, controlled, leased or operated by a person who operates a railway within the legislative authority of Parliament.

• Marginal note:Works for the general advantage of Canada

  (3) A railway or a portion of a railway mentioned in paragraph (2)(b) is declared to be a work for the general advantage of Canada.

• Marginal note:Cessation of declaration

  (4) A declaration by subsection (3) or by any other Act of Parliament that a railway is a work for the general advantage of Canada, or for the advantage of two or more provinces, ceases to have effect with respect to a line of the railway, or a portion of it, whose operation is discontinued under Division V or is the subject of a transfer under that Division to a person other than a company mentioned in paragraph (2)(b).

Marginal note:Special Act railways declared to be works for general advantage of Canada

89 If the construction or operation of a railway is authorized by a Special Act passed by the legislature of a province and the railway is declared by an Act of Parliament to be a work for the general advantage of Canada, this Part applies to the railway to the exclusion of any general railway Act of the province and any provisions of the Special Act that are inconsistent with this Part.

DIVISION IIConstruction and Operation of Railways

Certificate of Fitness

Marginal note:Certificate required

• 90 (1) No person shall

  • (a) construct a railway without being the holder of a certificate of fitness that is issued under paragraph 92(1)(a); or

  • (b) operate a railway without being the holder of a certificate of fitness that is

    • (i) issued under paragraph 92(1)(a) for the portion of the operation that relates to a passenger rail service, or

    • (ii) issued under paragraph 92(1)(b) for the portion of the operation that does not relate to a passenger rail service.

• Marginal note:Exception — purchaser of railway

  (2) Subsection (1) does not apply to a purchaser of a railway, or a portion of a railway, for a period of sixty days after the purchase if the railway or portion is purchased

  • (a) under a trust deed or mortgage;

  • (b) at the instance of the holders of a mortgage, bond or debenture for the payment of which a charge has been created on the railway or portion; or

  • (c) under any other lawful proceeding.

Marginal note:Application for certificate of fitness

• 91 (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

• 92 (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.

Marginal note:Variation of certificate

• 93 (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.

Liability Insurance

Marginal note:Continuing requirement

• 93.1 (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.

Marginal note:Notice of insurance changes

94 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.

Marginal note:Inquiry

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

Marginal note:Suspension or cancellation of certificate of fitness

94.2 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.

General Powers of Railway Companies

Marginal note:Powers

• 95 (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.

Noise and Vibration

Marginal note:Obligation

95.1 When constructing or operating a railway, a railway company shall cause only such noise and vibration as is reasonable, taking into account

• (a) its obligations under sections 113 and 114, if applicable;

• (b) its operational requirements; and

• (c) the area where the construction or operation takes place.

Marginal note:Guidelines

• 95.2 (1) The Agency shall issue, and publish in any manner that it considers appropriate, guidelines with respect to

  • (a) the elements that the Agency will use to determine whether a railway company is complying with section 95.1; and

  • (b) the collaborative resolution of noise and vibration complaints relating to the construction or operation of railways.

• Marginal note:Consultations

  (2) The Agency must consult with interested parties, including municipal governments, before issuing any guidelines.

• Marginal note:Not statutory instruments

  (3) The guidelines are not statutory instruments within the meaning of the Statutory Instruments Act.

Marginal note:Complaints and investigations

• 95.3 (1) On receipt of a complaint made by any person that a railway company is not complying with section 95.1, the Agency may order the railway company to undertake any changes in its railway construction or operation that the Agency considers reasonable to ensure compliance with that section.

• Marginal note:Restriction

  (2) If the Agency has published guidelines under paragraph 95.2(1)(b), it must first satisfy itself that the collaborative measures set out in the guidelines have been exhausted in respect of the noise or vibration complained of before it conducts any investigation or hearing in respect of the complaint.

Marginal note:Public passenger service providers

95.4 Sections 95.1 to 95.3 apply, with any modifications that are necessary, to public passenger service providers.

Land Transfer

Marginal note:Land taken pursuant to section 134 of Railway Act

• 96 (1) Where a railway company took possession of, used or occupied land under section 134 of the Railway Act before the coming into force of section 185, the railway company may not alienate the land except to transfer it to a railway company for the purpose of continuing railway operations or to the Crown.

• Marginal note:Alienation to other persons

  (2) The land may be transferred to any other person for the purpose of continuing railway operations if

  • (a) in the case of land in Quebec, the transfer involves only a lease or a dismemberment of the right of ownership; or

  • (b) in the case of land in any other province, the transfer does not involve a transfer of the fee simple in the land.

• Marginal note:Continuing application to subsequent transfers

  (3) If land is transferred under subsection (1) or (2) to any person other than the Crown in right of Canada, subsequent transfers of the land are subject to the same limitations as those contained in this section.

• Marginal note:Existing rights

  (4) A transfer of land under this section does not affect any right or interest of a person, other than a railway company, that existed in the land immediately before the coming into force of section 185.

Marginal note:Land obtained for railway purposes

• 97 (1) Subject to section 96, a railway company that obtained land from the Crown or any other person to assist in the construction or operation of its railway may acquire or transfer the land.

• Marginal note:Transfer of authority

  (2) If the railway company transfers the land to another company that has entered into a contract for the construction or operation, in whole or in part, of the railway for which the land was obtained, the other company has the same authority under this section as the railway company had in respect of the land.