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

Marginal note:Repeal

127.2 This section and subsections 127(2.1) and (5) to (7) and 127.1(1.1), (4.1) and (6) are repealed on the day that, in the 18th month after the month in which subsection 127(2.1) comes into force, has the same calendar number as the day on which that subsection 127(2.1) comes into force or, if that 18th month has no day with that number, the last day of that 18th month.

Marginal note:Regulations

• 128 (1) The Agency may make regulations

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

  • (b) establishing distance zones for the purpose of determining the interswitching rate.

  • (c) [Repealed, 2018, c. 10, s. 28]

• (1.1) [Repealed, 2014, c. 8, s. 7]

• (2) and (3) [Repealed, 2018, c. 10, s. 28]

• Marginal note:Transfer of lines does not affect entitlement

  (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.

• Marginal note:Review of interswitching regulations

  (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.

Marginal note:Power to require information

128.1 No later than August 31 of every year, a railway company shall provide to the Agency, in the form and manner specified by the Agency, the information or documents that the Agency considers necessary to exercise its powers or perform its duties or functions under section 127.1.

Long-haul Interswitching

Marginal note:Long-haul interswitching order

• 129 (1) A shipper may apply to the Agency for a long-haul interswitching order against a railway company that is a class 1 rail carrier if

  • (a) the shipper has access to the lines of only that railway company at the point of origin or destination of the movement of the shipper’s traffic in the reasonable direction of the traffic and its destination;

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

  • (c) the shipper is dissatisfied with a rate charged or proposed to be charged by the railway company referred to in paragraph (a) or with the proposed manner in which that railway company is to fulfil its service obligations for the movement of the shipper’s traffic between the point of origin or destination that is served exclusively by that railway company and the nearest interchange in Canada with a connecting carrier; and

  • (d) the matter described in paragraph (c) cannot be resolved between the shipper and the railway company.

• Marginal note:Restriction

  (2) If, at both the point of origin and the point of destination of the movement of the shipper’s traffic, a shipper has access to the lines of only one railway company that is a class 1 rail carrier, the shipper is entitled to apply for only one long-haul interswitching order, which is to be in respect of either the movement of the traffic from the point of origin to the nearest interchange in Canada or the movement of the traffic from the nearest interchange in Canada to the point of destination.

• Marginal note:No entitlement

  (3) A shipper is not entitled to apply to the Agency for a long-haul interswitching order

  • (a) if the point of origin or destination that is served exclusively by the local carrier is within a radius of 30 km of an interchange in Canada that is in the reasonable direction of the shipper’s traffic and its destination;

  • (b) if the point of origin or destination that is served exclusively by the local carrier or the nearest interchange is located within the Quebec–Windsor corridor or the Vancouver–Kamloops corridor;

  • (c) if the point of origin or destination that is served exclusively by the local carrier is located on a track that

    • (i) serves a reload or distribution compound, a container terminal or any other facility operated by the local carrier or for the local carrier’s own purposes, or

    • (ii) is used by the local carrier for the transfer of traffic between cars or between a car and a warehouse owned by the local carrier;

  • (d) for the movement of vehicles, as defined in section 2 of the Motor Vehicle Safety Act, or of parts of those vehicles;

  • (e) for the movement of TIH (Toxic Inhalation Hazard) material;

  • (f) for the movement of radioactive material;

  • (g) for the movement of oversized traffic on flat cars, if the dimensions of the traffic require exceptional measures be taken;

  • (h) for the movement, on flat cars, of containers or trailers;

  • (i) if the traffic to be moved is already the subject of a long-haul interswitching order;

  • (j) if an order or consent agreement made under Part VIII of the Competition Act, which followed an application made by the Commissioner of Competition, addresses the rate for the traffic to be moved; or

  • (k) in any other case specified in the regulations.

• Marginal note:Deeming — interchange

  (4) For the purpose of paragraph (3)(b), an interchange located in the metropolitan area of Montreal is deemed to be the nearest interchange and to be located outside the Quebec–Windsor corridor if

  • (a) the point of origin of the movement of the shipper’s traffic is located in Quebec and north of the Quebec-Windsor corridor;

  • (b) the shipper has access to the lines of only one class 1 rail carrier at the point of origin; and

  • (c) the nearest interchange is located in the Quebec–Windsor corridor.

Marginal note:Conditions

• 130 (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.

Marginal note:Transferred railway lines

131 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.

Marginal note:Contents of application

132 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.

Marginal note:Dismissal of application

133 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.

Marginal note:Determination by Agency

• 134 (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.

Marginal note:Long-haul interswitching rate

• 135 (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.