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

Act current to 2021-06-28 and last amended on 2020-06-10. Previous Versions

PART IIIRailway Transportation (continued)

DIVISION VI.2Liability and Compensation in Case of Railway Accidents Involving Designated Goods (continued)


Marginal note:Sections 26 and 37

 For the purposes of sections 26 and 37, this Division is deemed not to be a part of an Act of Parliament that is referred to in those sections.

  • 2015, c. 31, s. 10



Marginal note:Uniform accounting system for CN and CP

  •  (1) The Agency may prescribe for the Canadian National Railway Company and the Canadian Pacific Limited a uniform classification and system of accounts of their assets, liabilities, revenues, working expenditures, capitalization, traffic and operating statistics relating to railway operations.

  • Marginal note:Uniform accounting system for other railway companies

    (2) The Agency may prescribe for any other railway company a uniform classification and system as described in subsection (1) or in a condensed form.

  • Marginal note:Items to be classed

    (3) The Agency may prescribe the items to be classed as items relating to railway operations in the accounts.

  • Marginal note:Depreciation

    (4) The Agency may prescribe the classes of property for which depreciation charges may properly be included under operating expenses in the accounts, and the rates of depreciation to be charged with respect to each of the classes of property.

  • Marginal note:Requirements to keep accounts

    (5) A railway company for which a classification and system of accounts is prescribed shall keep its accounts in accordance with the prescribed classification and system.

Determination of Costs

Marginal note:Regulations for determining costs

  •  (1) The Agency may make regulations prescribing items and factors that it shall consider in determining costs under this Part, including depreciation and the cost of capital.

  • Marginal note:Additional considerations

    (2) The Agency may also consider

    • (a) the principles of costing adopted by the Royal Commission on Transportation appointed by the Order in Council dated May 13, 1959 in arriving at the conclusions contained in its report; and

    • (b) later developments in railway costing methods and techniques and current conditions of railway operations.

  • Marginal note:Computation of costs of a portion of an undertaking

    (3) If the costs of a portion of the railway of a railway company, or one of its operations, are to be computed

    • (a) for a particular period, the Agency must include in the computation any of the costs of the whole railway, or any other portion of it, that, in the opinion of the Agency, are reasonably attributable to the portion or operation, irrespective of when, in what manner or by whom the costs were incurred; and

    • (b) in respect of future operations of the company, the costs must be determined in accordance with estimates made on any basis that, in the opinion of the Agency, is reasonable in the circumstances.

  • Marginal note:Determination final and binding

    (4) A determination of costs by the Agency under this Part is final and binding on all interested or affected parties.

  • Marginal note:Costing information

    (5) No later than August 31 of every year, the Canadian National Railway Company and the Canadian Pacific Railway Company shall provide to the Agency, in the form and manner specified by the Agency, all unit costs, output units and other financial, statistical and supporting information for the preceding calendar year that is required for the determination of costs by the Agency under this Part.

  • 1996, c. 10, s. 157
  • 2018, c. 10, s. 45


Marginal note:Agreements to apply transportation law to provincial railways

  •  (1) The Minister may enter into an agreement with a provincial minister responsible for transportation matters providing for the administration, in relation to persons who operate railways within the legislative authority of the province, of any law respecting

    • (a) accident investigations and railway crossings; or

    • (b) railway noise and vibration, or the regulation of the rates and conditions of service of railway companies, to the extent that those matters are governed by this Act.

  • Marginal note:Designation

    (2) The Minister may designate any body established under an Act of Parliament, or any person or class of persons employed in the federal public administration, to administer the law in accordance with the agreement.

  • Marginal note:Functions, duties and powers

    (3) The designated body, person or class of persons may perform any function or duty and exercise any powers necessary for the enforcement of the law, to the extent specified in the agreement.

  • 1996, c. 10, s. 157.1
  • 2003, c. 22, s. 224(E)
  • 2007, c. 19, s. 46
  • 2012, c. 7, s. 39

Marginal note:Agreements made with provincial authorities

 The Minister may enter into an agreement with a provincial authority to authorize the provincial authority to regulate the construction and operation of a railway as well as the rates and conditions of service in the same manner and to the same extent as it may regulate a railway within its jurisdiction.

  • 1996, c. 10, s. 158
  • 2007, c. 19, s. 47
  • 2012, c. 7, s. 40

PART IVArbitrations

DIVISION IFinal Offer Arbitration

Marginal note:Application of sections 161 to 169

  •  (1) Sections 161 to 169 apply only in respect of matters arising between shippers and carriers that involve

    • (a) the carriage of goods by air to which Part II applies, other than their carriage internationally;

    • (b) the carriage of goods by railways to which this Act applies, other than the carriage of goods in trailers or containers on flat cars unless the containers arrive by water at a port in Canada, served by only one railway company, for further movement by rail or arrive by rail at such a port in Canada for further movement by water; or

    • (c) the carriage by water, for hire or reward, of goods required for the maintenance or development of a municipality or any permanent settlement for northern marine resupply purposes, other than goods required in relation to national defence or in relation to the exploration for or the development, extraction or processing of oil, gas or any mineral.

  • Marginal note:Scope of paragraph (1)(c)

    (2) Paragraph (1)(c) applies only to resupply services on

    • (a) the rivers, streams, lakes and other waters within the watershed of the Mackenzie River;

    • (b) the territorial sea and internal waters of Canada that are adjacent to the coast of the mainland and islands of the Canadian Arctic and situated within the area bounded by the meridians of longitude 95° West and 141° West and the parallels of latitude 66° 00′30″ North and 74°00′20″ North; and

    • (c) the internal waters of Canada comprised in Spence Bay and Shepherd Bay and situated east of the meridian of longitude 95° West.

  • Marginal note:Application

    (3) Paragraph (1)(c) applies only if

    • (a) the total register tonnage of all ships used to provide the resupply service exceeds fifty register tons; or

    • (b) the resupply service originates from a point situated on the waters described in subsection (2).

Marginal note:Rail passenger services

 Sections 161 to 169 also apply, with any modifications that the circumstances require, in respect of the rates charged or proposed to be charged by, and in respect of any of the conditions associated with the provision of services by, a railway company to any other railway company engaged in passenger rail services, except a public passenger service provider as defined in section 87.

  • 1996, c. 10, s. 160
  • 2008, c. 5, s. 8

Marginal note:Submission for final offer arbitration

  •  (1) A shipper who is dissatisfied with the rate or rates charged or proposed to be charged by a carrier for the movement of goods, or with any of the conditions associated with the movement of goods, may, if the matter cannot be resolved between the shipper and the carrier, submit the matter in writing to the Agency for a final offer arbitration to be conducted by one arbitrator or, if the shipper and the carrier agree, by a panel of three arbitrators.

  • Marginal note:Contents of submission

    (2) A copy of a submission under subsection (1) shall be served on the carrier by the shipper and the submission shall contain

    • (a) the final offer of the shipper to the carrier in the matter, excluding any dollar amounts;

    • (b) the period requested by the shipper, not exceeding two years, for which the decision of the arbitrator is to apply;

    • (c) an undertaking by the shipper to ship the goods to which the arbitration relates in accordance with the decision of the arbitrator;

    • (d) an undertaking by the shipper to the Agency whereby the shipper agrees to pay to the arbitrator the fee for which the shipper is liable under section 166 as a party to the arbitration; and

    • (e) the name of the arbitrator, if any, that the shipper and the carrier agreed should conduct the arbitration or, if they agreed that the arbitration should be conducted by a panel of three arbitrators, the name of an arbitrator chosen by the shipper and the name of an arbitrator chosen by the carrier.

  • Marginal note:Arbitration precluded in certain cases

    (3) The Agency shall not have any matter submitted to it by a shipper under subsection (1) arbitrated if the shipper has not, at least five days before making the submission, served on the carrier a written notice indicating that the shipper intends to submit the matter to the Agency for a final offer arbitration.

  • Marginal note:Final offer arbitration not a proceeding

    (4) A final offer arbitration is not a proceeding before the Agency.

  • 1996, c. 10, s. 161
  • 2000, c. 16, s. 11
  • 2018, c. 10, s. 46
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