His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts”.

This enactment amends the Canada Transportation Act in respect of air transportation and railway transportation.

With respect to air transportation, it amends the Canada Transportation Act to require the Canadian Transportation Agency to make regulations establishing a new air passenger rights regime and to authorize the Governor in Council to make regulations requiring air carriers and other persons providing services in relation to air transportation to report on different aspects of their performance with respect to passenger experience or quality of service. It amends the definition of Canadian in that Act in order to raise the threshold of voting interests in an air carrier that may be owned and controlled by non-Canadians while retaining its Canadian status, while also establishing specific limits related to such interests. It also amends that Act to create a new process for the review and authorization of arrangements involving two or more transportation undertakings providing air services to take into account considerations respecting competition and broader considerations respecting public interest.

With respect to railway transportation, it amends the Act to, among other things,

It amends the CN Commercialization Act to increase the maximum proportion of voting shares of the Canadian National Railway Company that can be held by any one person to 25%.

It amends the Railway Safety Act to prohibit a railway company from operating railway equipment and a local railway company from operating railway equipment on a railway unless the equipment is fitted with the prescribed recording instruments and the company, in the prescribed manner and circumstances, records the prescribed information using those instruments, collects the information that it records and preserves the information that it collects. This enactment also specifies the circumstances in which the prescribed information that is recorded can be used and communicated by companies, the Minister of Transport and railway safety inspectors.

It amends the Canadian Transportation Accident Investigation and Safety Board Act to allow the use or communication of an on-board recording, as defined in subsection 28(1) of that Act, if that use or communication is expressly authorized under the Aeronautics Act, the National Energy Board Act, the Railway Safety Act or the Canada Shipping Act, 2001.

It amends the Canadian Air Transport Security Authority Act to authorize the Canadian Air Transport Security Authority to enter into agreements for the delivery of screening services on a cost-recovery basis.

It amends the Coasting Trade Act to enable repositioning of empty containers by ships registered in any register. These amendments are conditional on Bill C-30, introduced in the 1st session of the 42nd Parliament and entitled the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act, receiving royal assent and sections 91 to 94 of that Act coming into force.

It amends the Canada Marine Act to permit port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada Infrastructure Bank. These amendments are conditional on Bill C-44, introduced in the 1st session of the 42nd Parliament and entitled the Budget Implementation Act, 2017, No. 1, receiving royal assent.

Finally, it makes related and consequential amendments to the Bankruptcy and Insolvency Act, the Competition Act, the Companies’ Creditors Arrangement Act, the Air Canada Public Participation Act, the Budget Implementation Act, 2009 and the Fair Rail for Grain Farmers Act.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

class 1 rail carrier means  

• (a) the Canadian National Railway Company,

• (b) the Canadian Pacific Railway Company,

• (c) BNSF Railway Company,

• (d) CSX Transportation, Inc.‍,

• (e) Norfolk Southern Railway Company,

• (f) Union Pacific Railroad Company, and

• (g) any railway company, as defined in section 87, that is specified in the regulations; (transporteur ferroviaire de catégorie 1)

radioactive material has the same meaning as in subsection 1(1) of the Packaging and Transport of Nuclear Substances Regulations, 2015. It includes a dangerous good with any of UN numbers 2908 to 2913, 2915 to 2917, 2919, 2977, 2978, 3321 to 3333 and 3507 that are set out in Column 1 of the Dangerous Goods List in Chapter 3.‍2 of the Recommendations on the Transport of Dangerous Goods — Model Regulations, Eighteenth revised edition, 2013, published by the United Nations; (matière radioactive)

Power of the Governor in Council

Governor in Council

6.‍1 The Governor in Council may make regulations specifying railway companies for the purpose of paragraph (g) of the definition class 1 rail carrier.

Relief

27 (1) The Agency may grant the whole or part of an application, or may make any order or grant any further or other relief that the Agency considers appropriate.

Information and Informal Dispute Resolution Services

Information and guidance

36.‍11 (1) The Agency shall take measures to inform the public in respect of the provisions of Parts III and IV, including

• (a) publishing general information on its Internet site; and

• (b) providing information and guidance to any interested person on the manner in which remedies under those provisions may be accessed, having regard to their particular circumstances.

Informal resolution

(2) A member of the Agency or its staff may attempt to resolve in an informal manner with a railway company any issue raised by an interested person to whom it has provided information and guidance. In doing so, the member or staff shall not reveal the identity of the interested person without their consent.

Person not to act in proceedings

(3) A person who exercises the powers or performs the duties or functions under paragraph (1)‍(b) or subsection (2) shall not act in any proceedings before the Agency that are related to an issue in respect of which the person provided information, guidance or informal dispute resolution services.

Railway transportation

(2.‍1) The report shall include the number and nature of the applications, complaints and submissions for arbitration made under Parts III and IV, the manner they were dealt with and the systemic trends observed. The report shall also include the number of disputes that were mediated by the Agency and the number that were resolved through mediation by the Agency.

Confidential information

(2.‍2) The Agency shall ensure that the report does not include any confidential information.

Powers

(2) For greater certainty, sections 38 and 39 apply in respect of an inquiry.

Summary of findings

(3) The Agency shall make public a summary of its findings that does not include any confidential information.

Class 1 rail carrier

(1.‍01) The Governor in Council may make regulations requiring any class 1 rail carrier or class of those carriers to provide information, other than personal information as defined in section 3 of the Privacy Act, to the Minister or Agency, when and in the form and manner that the regulations may specify, for the purposes of

• (a) determining the long-haul interswitching rate referred to in paragraph 134(1)‍(a); and

• (b) communicating service and performance indicators to the public.

Personnes visées

(1.‍1) Pour l’application du paragraphe (1), les renseignements peuvent être exigés des personnes suivantes :

Information to be provided

(2) Information that is required to be provided under this section may include the following:

• (a) financial information;

• (b) information respecting traffic and operations;

• (d) information respecting the performance of air carriers and providers of services in relation to air transportation with regard to passenger experience and the quality of service.

Exemptions

(4) The Minister may exempt a carrier or transportation undertaking from the application of all or any part of a regulation made under this section if the Minister is satisfied that it is not practicable for the carrier or transportation undertaking to provide the information.

Externally produced documents

50.‍01 (1) A regulation made under subsection 50(1) or (1.‍01) may incorporate by reference any document that is produced by a person or body other than the Minister.

Information already provided

50.‍1 For the purposes of subsection 50(1) or (1.‍01), if any information referred to in that subsection has already been provided to a department or agency of the Government of Canada, the Minister may request that department or agency to provide the information to the Minister.

• (a) the communication of information to the Agency, the Administrator of the Fund appointed under section 153.‍7, Statistics Canada or a minister of the Crown in right of Canada, the agent of that minister or an officer or employee of, or adviser to, Her Majesty in right of Canada for the purposes of the administration of this Act or any other Act of Parliament or for the purposes of the development of policies;

• (c) the communication of information, including to the public, in an aggregated form that prevents information obtained from an identifiable person from being related to that person;

Publication

51.‍1 Despite subsection 51(1), the Minister may make the information referred to in paragraph 50(2)‍(d) public.

Confidentiality of information — Agency

51.‍2 Information that is required to be provided to the Agency in accordance with regulations made under paragraph 50(1.‍01)‍(a) is, when it is received by the Agency, confidential and shall not knowingly be disclosed or made available by any person without the authorization of the person who provided the information, except for the purpose of a prosecution of a contravention of section 173.

Use of information

51.‍3 Information that is provided to the Minister or the Agency in accordance with regulations made under paragraph 50(1.‍01)‍(a) is only to be used by the Agency for the purpose of determining the long-haul interswitching rate referred to in paragraph 134(1)‍(a) and, despite subsection 51(4) and section 51.‍2, the Agency may, for that purpose, communicate the information in an aggregated form.

Publication

51.‍4 (1) If the Agency receives information from class 1 rail carriers or the Minister that is related to service and performance indicators provided in accordance with regulations made under paragraph 50(1.‍01)‍(b), the Agency shall publish the information on its Internet site within two days after it is received.

Information received from Minister

(2) Subsection 51(4) does not apply to the publication, in accordance with subsection (1), of information that is received from the Minister.

Review of Arrangements Involving Two or More Transportation Undertakings Providing Air Services

Definitions

53.‍7 The following definitions apply in sections 53.‍71 to 53.‍84.

arrangement means an agreement or arrangement, other than a transaction referred to in subsection 53.‍1(1), involving two or more transportation undertakings providing air services, as defined in subsection 55(1), to, from or within Canada, to coordinate on any aspect of the operation or marketing of such services, including prices, routes, schedules, capacity or ancillary services and to share costs or revenues or other resources or benefits.‍ (entente)

party means any person who proposes to enter into or has entered into an arrangement for which a notice has been given under subsection 53.‍71(1).‍ (partie)

Notice

53.‍71 (1) Every person who proposes to enter into an arrangement may notify the Minister of that arrangement. If the person so notifies the Minister, they shall at the same time provide a copy of the notice to the Commissioner of Competition.

Information

(2) A notice given under subsection (1) shall contain any information that is required under the guidelines that are issued and published by the Minister, including information that relates to considerations respecting competition.

Guidelines

(3) The guidelines referred to in subsection (2) shall be developed in consultation with the Competition Bureau and shall include factors that may be considered by the Minister to determine whether a proposed arrangement raises significant considerations with respect to the public interest under subsection (6) and, if applicable, to render a final decision regarding the arrangement under subsection 53.‍73(8).

Not statutory instruments

(4) The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act.

Further information

(5) The Minister or the Commissioner may, after receiving a notice or copy of a notice under subsection (1), require any party to provide further information.

Minister’s response

(6) The Minister shall, within 45 days after the day on which he or she receives the notice with the information referred to in subsection (2), inform the parties and the Commissioner as to whether, in his or her opinion, the proposed arrangement raises significant considerations with respect to the public interest.

No significant public interest considerations

(7) If the Minister is of the opinion that the proposed arrangement does not raise significant considerations with respect to the public interest, sections 53.‍72 to 53.‍79 do not apply to that arrangement.

Significant public interest considerations

(8) If the Minister is of the opinion that the proposed arrangement raises significant considerations with respect to the public interest, the arrangement is subject to the review process set out in section 53.‍73.

Prohibition

53.‍72 If a notice has been given under subsection 53.‍71(1), the proposed arrangement shall not be completed without the Minister’s authorization under subsection 53.‍73(8).

Review process

53.‍73 (1) The Minister, or a person designated by the Minister, shall examine the proposed arrangement, if it is subject to the review process.

Commissioner’s report

(2) The Commissioner of Competition shall, within 120 days after the day on which he or she receives a copy of the notice under subsection 53.‍71(1) with the information referred to in subsection 53.‍71(2), report to the Minister and the parties on any concerns regarding potential prevention or lessening of competition that may occur as a result of the proposed arrangement.

Summary

(3) Unless a notice is withdrawn or is deemed to have been withdrawn under section 53.‍8, the Commissioner shall make public a summary of the conclusions of the report that does not include any confidential information.

Communicating concerns

(4) The Minister shall, within 150 days after the day on which he or she receives the notice with the information referred to in subsection 53.‍71(2), report to the parties on any concerns with respect to the public interest that may occur as a result of the proposed arrangement and provide a copy of the report to the Commissioner.

Measures to address concerns

(5) The parties shall, within 30 days after the day on which they receive the report under subsection (4), respond in writing to the Minister, addressing any concerns with respect to the public interest and competition raised by the Minister and the Commissioner and informing the Minister, among other things, of any measures they are prepared to undertake to address those concerns. The parties may propose amendments to the arrangement.

Preliminary decision

(6) The Minister shall, after consulting with the Commissioner and within 45 days after the day on which he or she receives the response from the parties under subsection (5), render a preliminary decision regarding the proposed arrangement and specify any terms and conditions relating to the public interest and competition under which an authorization could be given under subsection (8).

Response to preliminary decision

(7) The parties shall, within 30 days after the day on which they receive the Minister’s preliminary decision, provide a response in writing to the Minister and the response may include proposed amendments to the terms and conditions specified in the decision.

Final decision

(8) The Minister shall, within 30 days after the day on which he or she receives a response from the parties under subsection (7), render a final decision and make public a summary of that decision that does not include any confidential information. The Minister may, if satisfied that the proposed arrangement is in the public interest, authorize it and specify any terms and conditions relating to the public interest and competition that the Minister considers appropriate.

Canadian

53.‍74 An authorization given by the Minister under subsection 53.‍73(8) does not affect any requirement that a transportation undertaking providing air services, as defined in subsection 55(1), be Canadian, as defined in that subsection.

Varying or rescinding terms and conditions

53.‍75 On application by any party who is subject to terms and conditions of an authorization, the Minister may, after consulting with the Commissioner of Competition, vary or rescind the terms and conditions and shall make public a summary of that decision that does not include any confidential information.

Proposed amendment to arrangement

53.‍76 (1) The parties to an authorized arrangement may propose an amendment to that arrangement to the Minister and he or she may, after consulting with the Commissioner of Competition and considering the significance of the amendment,

• (a) authorize the amendment, subject to any terms and conditions that the Minister may impose; or

• (b) require the parties to submit a new notice under subsection 53.‍71(1) for review of the proposed amended arrangement, unless the parties decide not to proceed with the amendment.

No confidential information made public

(2) If the Minister authorizes the amendment under paragraph (1)‍(a), he or she shall make public a summary of that decision that does not include any confidential information.

Concerns regarding authorized arrangement

53.‍77 (1) The Minister may, at any time after the second anniversary of the day on which an arrangement is authorized, notify the parties of any concerns raised by the arrangement with respect to the public interest and competition.

Measures to address concerns

(2) The parties shall, within 45 days after the day on which they receive the notice under subsection (1), provide a response in writing to the Minister, specifying, among other things, any measures they are prepared to undertake to address those concerns. The parties may propose amendments to the arrangement.

Continuing the authorization

(3) If, after consulting with the Commissioner, the Minister determines that the arrangement is still in the public interest, the authorization is continued subject to any new or amended terms and conditions specified by the Minister to address the concerns referred to in subsection (1).

Obligation to comply with terms and conditions

53.‍78 Every person who is subject to terms and conditions under subsection 53.‍73(8), section 53.‍75, paragraph 53.‍76(a) or subsection 53.‍77(3) shall comply with them.

Revoking authorization — false or misleading information

53.‍79 (1) The Minister may revoke an authorization at any time if it was granted on the basis of information that is false or misleading in a material respect or if the parties fail to comply with any of the authorization’s terms or conditions.

Revoking authorization — other grounds

(2) The Minister may also revoke the authorization of an arrangement if

• (a) that arrangement is significantly amended without prior authorization; or

• (b) the Minister, after considering any response of the parties to the concerns raised under subsection 53.‍77(1), is no longer satisfied that the arrangement is in the public interest.

Withdrawing notice

53.‍8 (1) A notice given under subsection 53.‍71(1) may be withdrawn at any time before a final decision is rendered under subsection 53.‍73(8).

Deemed withdrawal

(2) A notice is deemed to have been withdrawn if the parties fail to respond to the Minister within any period specified in subsection 53.‍73(5) or (7) or any extended period, as the case may be.

Effect of withdrawal

(3) If a notice given under subsection 53.‍71(1) is withdrawn or is deemed to have been withdrawn, section 53.‍72 no longer applies to the proposed arrangement.

Extension of time

53.‍81 The Minister may, at the request of the parties or on the Minister’s own initiative, extend any period specified in section 53.‍71, 53.‍73 or 53.‍77 if the Minister considers it appropriate in the circumstances, including when the arrangement is exceptionally complex.

Order

53.‍82 If a person contravenes sections 53.‍72 or 53.‍78, a superior court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application.

Offence — section 53.‍72 or 53.‍78

53.‍83 (1) Every person who contravenes section 53.‍72 or 53.‍78 is guilty of an indictable offence and is liable to imprisonment for a term of not more than five years or to a fine of not more than $10,000,000, or to both.

Continuing offence

(2) If an offence under subsection (1) for the contravention of section 53.‍78 is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

Officers, etc.‍, of corporations

(3) If a corporation commits an offence under subsection (1), any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted.

Sections 174 and 175 do not apply

(4) Sections 174 and 175 do not apply in respect of an offence committed under subsection (1).

Cost recovery

53.‍84 (1) The Governor in Council may make regulations respecting

• (a) the fees to be paid by the parties to an arrangement for any activities undertaken by the Minister under sections 53.‍71 to 53.‍76 that are related to the arrangement, including the method of calculating the fees; and

• (b) the refund of all or part of any fee referred to in paragraph (a), including the method of calculating the refund.

Amounts not to exceed cost

(2) The fees referred to in paragraph (1)‍(a) shall not exceed the costs related to the activities undertaken by the Minister under sections 53.‍71 to 53.‍76 that are related to the arrangement.

Remittance of fees and charges

(3) The fees paid in accordance with regulations made under subsection (1) shall be deposited to the credit of the Receiver General in the time and manner prescribed under those regulations.

Spending authority

(4) The Minister may spend the amounts deposited under subsection (3) in the fiscal year in which they are paid or in the next fiscal year.

Canadian means 

• (a) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act,

• (b) a government in Canada or an agent or mandatary of such a government, or

• (c) a corporation or entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least 51% of the voting interests are owned and controlled by Canadians and where

  • (i) no more than 25% of the voting interests are owned directly or indirectly by any single non-Canadian, either individually or in affiliation with another person, and

  • (ii) no more than 25% of the voting interests are owned by one or more non-Canadians authorized to provide an air service in any jurisdiction, either individually or in affiliation with another person; (Canadien)

Specialty service exclusion

(2) This Part does not apply to the operation of specialty services provided by aircraft, including firefighting, flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, helicopter-lift for logging and construction, airborne agricultural, industrial and inspection services or any other prescribed service provided by aircraft.

Person affected

67.‍3 Despite sections 67.‍1 and 67.‍2, a complaint against the holder of a domestic license related to any term or condition of carriage concerning any obligation prescribed by regulations made under subsection 86.‍11(1) may only be filed by a person adversely affected.

Applying decision to other passengers

67.‍4 The Agency may, to the extent that it considers it appropriate, make applicable to some or to all passengers of the same flight as the complainant all or part of its decision respecting a complaint related to any term or condition of carriage concerning any obligation prescribed by regulations made under paragraph 86.‍11(1)‍(b).

• (h) respecting traffic and tariffs, fares, rates, charges and terms and conditions of carriage for international service, including

• (iii) authorizing the Agency to direct a licensee or carrier to take the corrective measures that the Agency considers appropriate and to pay compensation for any expense incurred by a person adversely affected by the licensee’s or carrier’s failure to apply the fares, rates, charges or terms or conditions of carriage that are applicable to the service it offers and that were set out in its tariffs, if the Agency receives a written complaint and, if the complaint is related to any term or condition of carriage concerning any obligation prescribed by regulations made under subsection 86.‍11(1), it is filed by the person adversely affected,

• (iii.‍1) authorizing the Agency to make applicable, to some or to all passengers of the same flight as the complainant, all or part of the Agency’s decision respecting a complaint related to any term or condition of carriage concerning any obligation prescribed by regulations made under paragraph 86.‍11(1)‍(b), to the extent that it considers appropriate, and

Regulations — carrier’s obligations towards passengers

86.‍11 (1) The Agency shall, after consulting with the Minister, make regulations in relation to flights to, from and within Canada, including connecting flights,

• (a) respecting the carrier’s obligation to make terms and conditions of carriage and information regarding any recourse available against the carrier, as specified in the regulations, readily available to passengers in language that is simple, clear and concise;

• (b) respecting the carrier’s obligations in the case of flight delay, flight cancellation or denial of boarding, including

  • (i) the minimum standards of treatment of passengers that the carrier is required to meet and the minimum compensation the carrier is required to pay for inconvenience when the delay, cancellation or denial of boarding is within the carrier’s control,

  • (ii) the minimum standards of treatment of passengers that the carrier is required to meet when the delay, cancellation or denial of boarding is within the carrier’s control, but is required for safety purposes, including in situations of mechanical malfunctions,

  • (iii) the carrier’s obligation to ensure that passengers complete their itinerary when the delay, cancellation or denial of boarding is due to situations outside the carrier’s control, such as natural phenomena and security events, and

  • (iv) the carrier’s obligation to provide timely information and assistance to passengers;

• (c) prescribing the minimum compensation for lost or damaged baggage that the carrier is required to pay;

• (d) respecting the carrier’s obligation to facilitate the assignment of seats to children under the age of 14 years in close proximity to a parent, guardian or tutor at no additional cost and to make the carrier’s terms and conditions and practices in this respect readily available to passengers;

• (e) requiring the carrier to establish terms and conditions of carriage with regard to the transportation of musical instruments;

• (f) respecting the carrier’s obligations in the case of tarmac delays over three hours, including the obligation to provide timely information and assistance to passengers, as well as the minimum standards of treatment of passengers that the carrier is required to meet; and

• (g) respecting any of the carrier’s other obligations that the Minister may issue directions on under subsection (2).

Ministerial directions

(2) The Minister may issue directions to the Agency to make a regulation under paragraph (1)‍(g) respecting any of the carrier’s other obligations towards passengers. The Agency shall comply with these directions.

Restriction

(3) A person shall not receive compensation from a carrier under regulations made under subsection (1) if that person has already received compensation for the same event under a different passenger rights regime than the one provided for under this Act.

Obligations deemed to be in tariffs

(4) The carrier’s obligations established by a regulation made under subsection (1) are deemed to form part of the terms and conditions set out in the carrier’s tariffs in so far as the carrier’s tariffs do not provide more advantageous terms and conditions of carriage than those obligations.

point of destination means, with respect to traffic on a railway line that is subject to a transfer described in subsection 128(4) or section 131, the point where the traffic is transferred from the line of a railway company to a line to which this Part does not apply; (point de destination)

point of origin means, with respect to traffic on a railway line that is subject to a transfer described in subsection 128(4) or section 131, the point where the traffic is transferred to the line of a railway company from a line to which this Part does not apply; (point d’origine)

Quebec–Windsor corridor means the area of Canada that is bounded

• (a) to the east by longitude 70.‍50° W,

• (b) to the north by a straight line connecting a first point located at latitude 47.‍45° N and longitude 70.‍50° W to a second point located at latitude 43.‍70° N and longitude 83.‍25° W,

• (c) to the west by longitude 83.‍25° W, and

• (d) to the south by the Canada-United States border; (axe Québec-Windsor)

Vancouver–Kamloops corridor means the area of Canada that is bounded

• (a) to the east by longitude 121.‍21° W,

• (b) to the north by latitude 50.‍83° N,

• (c) to the west by longitude 128.‍45° W, and

• (d) to the south by the Canada-United States border. (axe Vancouver-Kamloops)

connecting carrier means a railway company, other than a local carrier, that moves traffic to or from an interchange over a portion of a continuous route; (transporteur de liaison)

interswitch means to transfer traffic from the lines of one railway company to the lines of another railway company; (interconnexion)

local carrier means a class 1 rail carrier that moves traffic to or from an interchange on a continuous route from the point of origin or to the point of destination that is served exclusively by the class 1 rail carrier; (transporteur local)

interswitching rate means a rate determined by the Agency in accordance with section 127.‍1; (Version anglaise seulement)

long-haul interswitching rate means a rate determined by the Agency in accordance with paragraph 134(1)‍(a); (Version anglaise seulement)

•  

  (b) within 90 days after receipt of the complaint, determine whether the company is fulfilling that obligation.

Time limits

(1.‍1) The Agency shall allow a company at least 20 days to file an answer and at least 10 days for a complainant to file a reply.

Considerations

(1.‍2) The Agency shall determine that a company is fulfilling its service obligations if it is satisfied that the company provides the highest level of service in respect of those obligations that it can reasonably provide in the circumstances, having regard to the following considerations:

• (a) the traffic to which the service obligations relate;

• (b) the reasonableness of the shipper’s requests with respect to the traffic;

• (c) the service that the shipper requires with respect to the traffic;

• (d) any undertaking with respect to the traffic given by the shipper to the company;

• (e) the company’s and the shipper’s operational requirements and restrictions;

• (f) the company’s obligations, if any, with respect to a public passenger service provider;

• (g) the company’s obligations in respect of the operation of the railway under this Act;

• (h) the company’s contingency plans to allow it to fulfil its service obligations when faced with foreseeable or cyclical events; and

• (i) any information that the Agency considers relevant.

Long-haul interswitching order binding on Agency

(3) If a long-haul interwitching order has been made under subsection 134(1), the terms established by the order that are related to the manner in which the local carrier is to fulfil its service obligations are binding on the Agency in making its determination.

• (c.‍1) order the company to compensate any person adversely affected for any expenses that they incurred as a result of the company’s failure to fulfil its service obligations or, if the company is a party to a confidential contract with a shipper that requires the company to pay an amount of compensation for expenses incurred by the shipper as a result of the company’s failure to fulfil its service obligations, order the company to pay that amount to the shipper;

Right of action not limited

(5.‍1) If an arbitrator’s decision made under section 169.‍37 includes a term with respect to an amount described in paragraph 169.‍31(1)‍(c.‍1), the term does not limit the right to claim an amount of compensation in an action under subsection (5).

Company not relieved

(6) Subject to the terms of a confidential contract referred to in subsection 113(4) or a tariff that sets out, in accordance with subsection 136.‍4(1), terms established in a long-haul interswitching order, a company is not relieved from an action taken under subsection (5) by any notice, condition or declaration if the damage claimed in the action arises from any negligence or omission of the company or any of its employees.

Accessibility of tariff

(3) The railway company shall make the tariff accessible to the public by publishing it on its Internet site.

• (d) the manner in which the company is to fulfil its service obligations under section 113; and

• (e) any conditions relating to the traffic to be moved by the company, including any amount to be paid by the company or the shipper in relation to a failure to comply with any condition related to the service obligations referred to in paragraph (d).

Request for confidential contract

(1.‍1) A shipper may request that a railway company make it an offer to enter into a contract under subsection (1) with the railway company respecting

• (a) the manner in which the company is to fulfil its service obligations under section 113; or

• (b) any amount to be paid in relation to the company’s or the shipper’s failure to comply with a term related to those service obligations, the purpose of which is to encourage the efficient movement of the shipper’s traffic and the performance of the railway system.

Restriction

(1.‍11) The shipper may only make a request in respect of an amount described in paragraph (1.‍1)‍(b) if the amount relates to a term that is included in the request under subsection (1.‍1).

• (c) is set out in a tariff referred to in subsection 136.‍4(1) or 165(3); or

Order

(2) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km, or a prescribed greater distance, of an interchange, the Agency may order

• (a) one of the companies to interswitch the traffic; and

• (b) the railway companies to provide reasonable facilities for the convenient interswitching of traffic in both directions at an interchange between the lines of either railway and those of other railway companies connecting with them.

Interswitching limits

(3) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km, or a prescribed greater distance, of an interchange, a railway company shall not transfer the traffic at the interchange except in accordance with the regulations and the interswitching rate.

Extension of interswitching limits

(4) On the application of a person referred to in subsection (1), the Agency may deem a point of origin or destination of a movement of traffic in any particular case to be within 30 km of an interchange if the Agency is of the opinion that, in the circumstances, the point of origin or destination is reasonably close to the interchange.

Interswitching rate

127.‍1 (1) The Agency shall, no later than December 1 of every year, determine the rate per car to be charged for interswitching traffic for the following calendar year.

Considerations

(2) In determining an interswitching rate, the Agency shall take into consideration

• (a) any reduction in costs that, in the opinion of the Agency, results from moving a greater number of cars or from transferring several cars at the same time; and

• (b) any long-term investment needed in the railways.

Limit on rate

(3) In determining an interswitching rate, the Agency shall consider the average variable costs of all movements of traffic that are subject to the rate and the rate shall not be less than the variable costs of moving the traffic, as determined by the Agency.

Publication of method

(4) The Agency shall, when it makes its determination under subsection (1), publish the method that it followed for determining the rate.

Interswitching rate to be published

(5) The Agency shall cause the interswitching rate to be published in the Canada Gazette no later than December 31 before the beginning of the calendar year for which the rate applies.

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

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

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;

• (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.

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.

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, or a prescribed greater distance, of an interchange in Canada;

• (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.

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.

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.

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.

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.

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.

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.

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).

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.

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, or a greater distance prescribed in regulations made under paragraph 128(1)‍(c), 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.

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.

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.

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.

Continuous route

136 (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.

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.

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.

Nearest interchange

136.‍1 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.

Service obligations

136.‍2 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).

Duration of order

136.‍3 The long-haul interswitching order applies to the parties for a period of one year as of the date of the order, unless the parties agree otherwise.

Incorporation in tariff

136.‍4 (1) The local carrier shall, without delay after the long-haul interswitching order is made, set out in a tariff the terms established by the order, unless the shipper and local carrier agree to include those terms in a confidential contract.

Publication not required

(2) Subsection 117(3) does not apply in respect of the tariff.

No final offer arbitration

136.‍5 If a long-haul interswitching order is made by the Agency, the shipper is not entitled to submit any matter related to the movement of the traffic that is the subject of the order to the Agency for final offer arbitration under section 161.

Obligation of carriers to provide cars

136.‍6 (1) Subject to any agreement to the contrary, if a long-haul interswitching order is made, the connecting carrier is responsible for providing the shipper with an adequate supply of cars for the traffic being moved, in addition to its other service obligations in relation to the movement of the traffic.

Additional obligations

(2) Subject to any agreement to the contrary, the connecting carrier is, in respect of the interchange referred to in paragraph 129(1)‍(c), responsible for

• (a) a prorated share, determined in accordance with subsection (3), of the costs of operating and maintaining the interchange during the period in which the long-haul interswitching order applies; and

• (b) the capital cost of making any change to the interchange that may be necessary for transferring the traffic that is the subject of the long-haul interswitching order.

Determination of prorated share

(3) The prorated share is the proportion that the traffic that is the subject of the order transferred at the interchange and moved by the connecting carrier during the period in which the order applies is of the total traffic transferred at the interchange during that period.

Share of capital cost

(4) If more than one connecting carrier moves the traffic that is the subject of the order, the capital cost is to be shared between the connecting carriers based on each connecting carrier’s share of the amount of traffic moved.

Regulations

136.‍7 The Governor in Council may, for the purpose of paragraph 129(3)‍(k), make regulations specifying cases in which a shipper is not entitled to apply for a long-haul interswitching order.

Suspension of operation

136.‍8 If the Governor in Council is of the opinion that the financial viability of a railway company is seriously affected by the operation of sections 129 to 136.‍7, the Governor in Council may, by order, suspend the operation of those sections during the period specified in the order.

Interchanges

List

136.‍9 (1) A railway company shall prepare and keep up to date a list of the locations of the interchanges on the railway that the company operates. It shall publish the list on its Internet site or the Internet site of an association or other entity representing railway companies.

Notice

(2) A railway company may remove an interchange from its list only after the expiry of 120 days after it

• (a) has published a notice of its intention to do so on its Internet site or the Internet site of an association or other entity representing railway companies; and

• (b) has sent a copy of the notice to the Agency.

Service obligations

(3) For greater certainty, the removal of an interchange under subsection (2) does not relieve a railway company from its service obligations.

Agreement

137 (1) Any issue related to liability, including liability to a third party, in respect of the movement of a shipper’s traffic shall be dealt with between the railway company and the shipper only by means of a written agreement that is signed by the shipper or by an association or other entity representing shippers.

Complaints

137.‍1 If, after receiving a complaint, the Agency finds that a railway company is not complying with subsection 137(1), the Agency may order it to take any measures that the Agency considers appropriate to comply with that subsection.

Public accessibility of plan

(2) The railway company shall make the plan accessible to the public by publishing it on its Internet site or the Internet site of an association or other entity representing railway companies.

Information to provide to Minister

(2.‍2) The railway company shall, within 60 days after indicating in the plan its intention to discontinue operating a railway line, provide to the Minister

• (a) an assessment of whether or not section 96 applies to the land on which the railway line is located; and

• (b) a legal description of any land to which the assessment indicates section 96 applies and, in the form specified by the Minister, geographical information that would allow for mapping of the land.

Discontinuance already indicated in plan

(2.‍3) If a railway company has, on the day on which subsection (2.‍2) comes into force, a plan indicating its intention to discontinue operating a railway line, but the company has not yet made an advertisement under section 143 in respect of that line, it shall provide to the Minister the information referred to in that subsection before making the advertisement.

Declaration

(3.‍1) The railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

Compliance with steps for discontinuance

142 (1) A railway company shall comply with the steps described in this Division before discontinuing operating a railway line. The railway company shall publish and keep up to date on its Internet site or the Internet site of an association or other entity representing railway companies a report that sets out the date that it commenced and completed each step.

Exception

(2.‍1) Subsection (2) does not apply to a railway company that is the subject of proceedings under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.

Disclosure — advertisement

(3) The advertisement shall also disclose

• (a) the existence of any agreement between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line; and

• (b) an indication as to whether or not section 96 applies to the land on which that railway line is located.

Declaration

(5.‍1) If an agreement is reached, including an agreement entered into to in accordance with an order by the Agency, the railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

Disclosure — offer

(1.‍1) The offer shall disclose whether or not section 96 applies to the land on which that railway line is located, and if the information described in paragraphs 141(2.‍2)‍(a) and (b) has not yet been provided to the Minister, the railway company shall provide it to the Minister with the offer.

• (a) by the Minister, the Government of Canada may accept it within 60 days or, if the Minister has extended the period under subsection (3.‍1), within that period;

Extension

(3.‍1) If the Minister considers it appropriate to do so, the Minister may extend the period referred to in paragraph (3)‍(a) by 120 days. The Minister may further extend the period, but the total of those further extensions may not exceed 365 days. Each time the Minister extends the period, the Minister shall provide a notice to the railway company and the railway company shall notify the other governments and urban transit authorities.

Service obligations

(3.‍2) If the Minister extends the period referred to in paragraph (3)‍(a), the railway company has no service obligations in respect of the operation of the railway line commencing on the expiry of 150 days after the offer was received by the Minister and ending on the expiry of 280 days after the expiry of the extended period referred to in that paragraph. The railway company shall not remove any of the infrastructure associated with the line during the period for which it has no service obligations.

Declaration

(4.‍1) The railway company shall, at the time of a transfer to a government or an urban transit authority, provide a written declaration to the government or urban transit authority stating that the transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.

Documents to accompany notice of discontinuance

(1.‍1) The notice of discontinuance shall be accompanied by a copy of the advertisement referred to in section 143 and the offers to the governments and transit authorities referred to in subsection 145(1).

Complaints

146.‍6 If, after receiving a complaint, the Agency finds that a railway company is not complying with this Division, the Agency may order it to take any measures that the Agency considers appropriate to comply with this Division.

movement, in respect of grain, means the carriage of grain by a prescribed railway company over a railway line from a point on any line west of Thunder Bay or Armstrong, Ontario, to

• (a) Thunder Bay or Armstrong, Ontario,

• (b) Churchill, Manitoba for export,

• (c) a port in British Columbia for export, other than export to the United States for consumption in that country, or

• (d) a point west of Thunder Bay or Armstrong, Ontario, if the grain is to be carried to a port in British Columbia for export, other than export to the United States for consumption in that country; (mouvement du grain)

port in British Columbia includes Vancouver, North Vancouver, New Westminster, Roberts Bank, Prince Rupert, Ridley Island, Burnaby, Fraser Mills, Fraser Surrey, Fraser Wharves, Lake City, Lulu Island Junction, Port Coquitlam, Port Moody, Steveston, Tilbury and Woodwards Landing; (port de la Colombie-Britannique)

• a) les primes, rabais ou réductions semblables versés ou accordés par la compagnie;

• (d) any amount that is earned by the company at the interswitching rate determined in accordance with section 127.‍1; or

• (e) any amount that is earned by the company for the movement of grain in containers on flat cars.

Volume-related composite price index

(4) The following rules are applicable to a volume-related composite price index:

• (a) in the crop year 2016-2017, each prescribed railway company’s index is 1.‍3275;

• (b) an index shall be determined in respect of each prescribed railway company; and

• (c) the Agency shall make adjustments to each prescribed railway company’s index to reflect the costs incurred by the prescribed railway company to obtain hopper cars for the movement of grain and the costs incurred by the prescribed railway company for the maintenance of those hopper cars.

When Agency to make determination

(5) The Agency shall make the determination of a prescribed railway company’s maximum revenue entitlement for the movement of grain in a crop year under subsection (1) on or before December 31 of the following crop year and shall make the determination of a prescribed railway company’s volume-related composite price index on or before April 30 of the previous crop year.

Report to Minister

151.‍01 (1) Before the beginning of every crop year, a prescribed railway company shall provide to the Minister a report, in the form and manner that may be specified by the Minister, that

• (a) assesses the prescribed railway company’s ability to move the grain that it is required to move during the crop year taking into account the total volume of grain expected to be moved for the crop year; and

• (b) identifies the steps that the prescribed railway company is taking to enable it to move the grain that it is required to move during the crop year.

Report — winter contingency plans

(2) Before October 1 of every year, a prescribed railway company shall provide to the Minister a report, in the form and manner that may be specified by the Minister, that describes the railway company’s contingency plans to enable it to move the grain along with other traffic when faced with winter weather conditions.

Publication

(3) The prescribed railway company shall publish the reports referred to in subsections (1) and (2) on its Internet site at the same time that they are provided to the Minister.

Interest on unpaid amounts

155.‍8 (1) If any portion of a levy is not paid by a railway company as required by subsection 155.‍7(1), the company shall pay to the Receiver General interest on that portion — calculated and compounded monthly at the rate of interest determined under the regulations made under section 155.‍1 of the Financial Administration Act — beginning on the day on which the payment was required to be made and ending on the day before the day on which the payment is received by the Receiver General.

Partial payment

(2) If a partial payment is made, the period for which interest is payable in respect of the amount paid ends on the day before the day on which the partial payment is received by the Receiver General.

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.

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

Summary process

164.‍1 If the Agency determines that a shipper’s final offer submitted under subsection 161.‍1(1) involves freight charges in an amount of not more than $2,000,000, adjusted in accordance with section 164.‍2, and the shipper did not indicate a contrary intention when submitting the offer, sections 163 and 164 do not apply and the arbitration shall proceed as follows:

Triennial adjustment

164.‍2 (1) The maximum amount of freight charges for the purpose of section 164.‍1 shall be adjusted every three years, on April 1, in accordance with the formula

Consumer Price Index

(2) For the purposes of subsection (1),

• (a) a reference to the Consumer Price Index for any 12-month period means the average of the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;

• (b) if at any time the Consumer Price Index for Canada is adjusted to reflect a new time basis, a corresponding adjustment is to be made in the Consumer Price Index for any 12-month period that is used for the purpose of calculating the maximum amount under subsection (1); and

• (c) if at any time the Consumer Price Index for Canada is adjusted to reflect a new content basis, that adjustment does not affect the operation of this section.

Maximum amount to be published

(3) The Agency shall adjust the maximum amount in accordance with subsection (1) and cause it to be published in the Canada Gazette no later than March 31 before the commencement of the three-year period for which the maximum amount applies, and that published amount is conclusive proof of the maximum amount for that three-year period.

• (c) be rendered so as to apply for the period that is agreed to by the parties or, if no period has been agreed to by the parties, for the period, not exceeding two years, that the shipper requested in its submission.

• (c.‍1) any amount to be paid by the company or the shipper in relation to a failure to comply with any operational term described in paragraphs (a) to (c);

• (f) the dispute resolution process related to the implementation of the arbitrator’s decision.

• (c) a long-haul interswitching order made under subsection 134(1); or

Clarification

(4) For greater certainty, a rate for the movement of the traffic is not to be subject to arbitration.

• (a.‍1) any term with respect to an amount described in paragraph 169.‍31(1)‍(c.‍1), if the matter in respect of the amount has been submitted by the shipper for arbitration;

• (d) any term with respect to the dispute resolution process described in paragraph 169.‍31(1)‍(f).

Arbitrator’s decision

169.‍37 (1) The arbitrator’s decision must establish the following terms, or any combination of the following terms, that the arbitrator considers necessary to resolve the matters that are referred to him or her for arbitration:

• (a) any operational term described in paragraph 169.‍31(1)‍(a), (b) or (c);

• (b) any term with respect to an amount described in paragraph 169.‍31(1)‍(c.‍1) if the matter in respect of the amount has been submitted by the shipper for arbitration;

• (c) any term for the provision of a service described in paragraph 169.‍31(1)‍(d);

• (d) any term with respect to the application of a charge described in paragraph 169.‍31(1)‍(e); or

• (e) any term with respect to the dispute resolution process described in paragraph 169.‍31(1)‍(f).

Elements to consider

(2) In making the decision, the arbitrator must have regard to the following:

• (a) the traffic to which the service obligations relate;

• (b) the service that the shipper requires with respect to the traffic;

• (c) any undertaking described in paragraph 169.‍32(1)‍(c) that is contained in the shipper’s submission;

• (d) the railway company’s obligations under this Act in respect of the operation of the railway;

• (e) the railway company’s obligations, if any, with respect to a public passenger service provider;

• (f) the railway company’s and the shipper’s operational requirements and restrictions;

• (g) the question of whether there is available to the shipper an alternative, effective, adequate and competitive means of transporting the goods to which the service obligations relate; and

• (h) any information that the arbitrator considers relevant.

Efficiency

(3) The arbitrator shall establish a term with respect to an amount described in paragraph 169.‍31(1)‍(c.‍1) in a manner that encourages the efficient movement of the shipper’s traffic and the performance of the railway system and that is balanced between the shipper and the railway company.

• (a) designate as a provision or requirement the contravention of which may be proceeded with as a violation in accordance with sections 179 and 180 any provision of section 51 or 51.‍2 or any provision of any regulation made under section 50 or 51, or any requirement of section 51 or 51.‍2 or those regulations; and

Regulations made under subsection 50(1.‍01)

(2.‍01) The contravention of any provision of a regulation made under subsection 50(1.‍01) may be proceeded with as a violation in accordance with sections 179 and 180. The maximum amount payable for each violation is $25,000.

Notices of violation

178 (1) The Agency, in respect of a violation referred to in subsection 177(1) or (2.‍1), or the Minister, in respect of a violation referred to in subsection 177(2), (2.‍01), (2.‍2) or (3), may

•  

  (a) the penalty for the violation that the person is liable to pay; and

• (b) the person has contravened the designated provision that the person is alleged to have contravened, the member of the Tribunal shall without delay inform the person and the Minister of the determination and of the amount determined by the member of the Tribunal to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time that the member of the Tribunal may allow, the member of the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person.

Certificate

(4) If the appeal panel finds that a person has contravened the designated provision, the panel shall without delay inform the person of the finding and of the amount determined by the panel to be payable by the person in respect of the contravention and, if the amount is not paid to the Tribunal by or on behalf of the person within the time allowed by the Tribunal, the Tribunal shall issue to the Minister a certificate in the form that may be established by the Governor in Council, setting out the amount required to be paid by the person.

References to “Minister”

180.‍8 (1) In the case of a violation referred to in subsection 177(1), every reference to the “Minister” in sections 180.‍3 to 180.‍7 shall be read as a reference to the Agency or to a person designated by the Agency.

Delegation by Minister

(2) In the case of a violation referred to in subsection 177(2), (2.‍01), (2.‍2) or (3), the Minister may delegate to the Agency any power, duty or function conferred on him or her under this Part.

• (a) provisions imposing constraints on the issue, transfer and ownership, including joint ownership, of voting shares of CN to prevent any one person, together with the associates of that person, from holding, beneficially owning or controlling, directly or indirectly, otherwise than by way of security only, in the aggregate, voting shares to which are attached more than 25% of the votes that may ordinarily be cast to elect directors of CN;

Recording instruments

17.‍31 (1) No railway company that meets the prescribed criteria shall operate railway equipment and no local railway company that meets the prescribed criteria shall operate railway equipment on a railway unless

• (a) the railway equipment is fitted with the prescribed recording instruments; and

• (b) the company, in the prescribed manner and circumstances, records the prescribed information using those instruments, collects the information that it records and preserves the information that it collects.

Use or communication

(2) No company referred to in subsection (1) shall use or communicate the information that it records, collects or preserves under that subsection unless the use or communication is in accordance with the law.

Prevention of recording, collection or preservation

(3) No person shall do anything, including alter the recording instruments referred to in subsection (1), with the intent to prevent information from being recorded, collected or preserved under that subsection.

Recording Instruments

Companies — use of information

17.‍91 (1) A company may use the information that it records, collects or preserves under subsection 17.‍31(1) for the purposes of

• (a) conducting analyses under section 13, 47 or 74 of the Railway Safety Management System Regulations, 2015; and

• (b) determining the causes and contributing factors of an accident or incident that the company is required to report under the Canadian Transportation Accident Investigation and Safety Board Act to the Canadian Transportation Accident Investigation and Safety Board and that the Board does not investigate.

Information randomly selected

(2) The information that the company may use for the purpose referred to in paragraph (1)‍(a) shall be selected randomly in accordance with the regulations.

Use — threat to safety of railway operations

(3) If a company uses information under subsection (1), it may also use that information to address a prescribed threat to the safety of railway operations.

Personal Information Protection and Electronic Documents Act and provincial legislation

(4) A company that collects, uses or communicates information under this section, section 17.‍31 or 17.‍94, subsection 28(1.‍1) or 36(2) or regulations made under section 17.‍95 may do so

• (a) despite section 5 of the Personal Information Protection and Electronic Documents Act, to the extent that that section relates to obligations set out in Schedule 1 to that Act relating to the collection, use, disclosure and retention of information, and despite section 7 of that Act; and

• (b) despite any provision of provincial legislation that is substantially similar to Part 1 of the Act referred to in paragraph (a) and that limits the collection, use, communication or preservation of information.

Minister — use of information

17.‍92 (1) The Minister may use the information that a company records, collects or preserves under subsection 17.‍31(1) for the purposes of

• (a) developing policies;

• (b) determining the causes and contributing factors of an accident or incident that must be reported under the Canadian Transportation Accident Investigation and Safety Board Act to the Canadian Transportation Accident Investigation and Safety Board and that the Board does not investigate; and

• (c) verifying compliance with section 17.‍31 and regulations made under section 17.‍95.

Information randomly selected

(2) The information that the Minister may use for the purpose referred to in paragraph (1)‍(a) shall be selected randomly in accordance with the regulations.

Use — threat to safety of railway operations

(3) If the Minister uses information under paragraph (1)‍(a) or (b), he or she may also use that information to address a threat to the safety of railway operations.

Railway safety inspectors — use of information

17.‍93 (1) A railway safety inspector may use the information that a company records, collects or preserves under subsection 17.‍31(1) for the purposes of

• (a) determining the causes and contributing factors of an accident or incident that must be reported under the Canadian Transportation Accident Investigation and Safety Board Act to the Canadian Transportation Accident Investigation and Safety Board and that the Board does not investigate; and

• (b) verifying compliance with section 17.‍31 and regulations made under section 17.‍95.

Use — threat to safety of railway operations

(2) If a railway safety inspector uses information under paragraph (1)‍(a), they may also use that information to address a threat to the safety of railway operations.

Recorded information admissible

17.‍94 (1) The information recorded under subsection 17.‍31(1) using the recording instruments with which the railway equipment is fitted is admissible in any proceedings for a violation or offence, with respect to the contravention of section 17.‍31 or the regulations made under section 17.‍95, against the company that operates the railway equipment.

Recorded information not admissible

(2) The information recorded under subsection 17.‍31(1) using the recording instruments with which the railway equipment is fitted is not admissible in any proceedings for a violation or offence under this Act — other than for a violation or offence with respect to the contravention of subsection 17.‍31(3) — against an individual who is on board the railway equipment at the time of the recording or an individual who communicates with that individual at that time.

Information used under subsections 17.‍91(3), 17.‍92(3) and 17.‍93(2) admissible

(3) Subject to subsection (2), the information used under subsections 17.‍91(3), 17.‍92(3) and 17.‍93(2) is admissible in any proceedings that may result from that use.

Regulations

17.‍95 (1) The Governor in Council may make regulations

• (a) prescribing criteria for the purposes of subsection 17.‍31(1);

• (b) respecting the exemption of any company that meets the criteria referred to in paragraph (a) from the application of subsection 17.‍31(1);

• (c) respecting the recording instruments with which the railway equipment is to be fitted, including their specifications, installation and maintenance;

• (d) respecting the information that companies record using those instruments, including the recording of that information, its collection, its preservation, its use, its communication — including on request by the Minister — its selection and access to it; and

• (e) prescribing threats to the safety of railway operations for the purpose of subsection 17.‍91(3).

Application

(2) A regulation made under this section may be general or applicable to a group or class of companies.

For greater certainty

17.‍96 For greater certainty, subject to any use or communication that is expressly authorized under any of sections 17.‍91 to 17.‍94, subsection 28(1.‍1) or 36(2) or regulations made under section 17.‍95, the information that a company records, collects or preserves under subsection 17.‍31(1) and that is an on-board recording, as defined in subsection 28(1) of the Canadian Transportation Accident Investigation and Safety Board Act, remains privileged under subsection 28(2) of that Act.

Communication authorized

(1.‍1) A company is authorized to communicate to a railway safety inspector the information that it recorded, collected or preserved under subsection 17.‍31(1) and that is contained in a document that the railway safety inspector requires it to produce under paragraph (1)‍(a.‍1), for the purpose of verifying compliance with section 17.‍31 and regulations made under section 17.‍95.

Communication authorized

(2) A company is authorized to communicate to the Minister the information that it recorded, collected or preserved under subsection 17.‍31(1) and that the Minister orders it to provide under subsection (1), for the purpose of verifying compliance with section 17.‍31 and regulations made under section 17.‍95.

• (a) a regulation made under subsection 7(1) or section 7.‍1, 17.‍95, 18, 24, 37, 47 or 47.‍1;

• (h) an order made under subsection 36(1).

• (h) orders made under subsection 36(1).

Use by Board

(4) The Board may make any use of any on-board recording obtained under this Act that it considers necessary in the interests of transportation safety, but, subject to subsections (5) and (5.‍1), shall not knowingly communicate or permit to be communicated to anyone any portion of the recording that is unrelated to the causes or contributing factors of the transportation occurrence under investigation or to the identification of safety deficiencies.

Power to provide access to certain persons

(5.‍1) In the case of a transportation occurrence that is required to be reported under this Act to the Board and that is investigated under this Act, the Board may make an on-board recording related to the occurrence available to a person who is expressly authorized under the Aeronautics Act, the National Energy Board Act, the Railway Safety Act or the Canada Shipping Act, 2001 to use or communicate it and, if the Board does so, the person may only use or communicate it in accordance with the express authorization.

Authorization under another Act

(5.‍2) Nothing in this section prevents the use or communication of an on-board recording if that use or communication is expressly authorized under the Aeronautics Act, the National Energy Board Act, the Railway Safety Act or the Canada Shipping Act, 2001 and

• (a) there has been no transportation occurrence that is required to be reported under this Act to the Board that involves the means of transportation to which the recording relates; or

• (b) there has been a transportation occurrence that is required to be reported under this Act to the Board that involves the means of transportation to which the recording relates but that is not investigated under this Act.

Mandate

6 (1) The Authority’s mandate is to take actions, either directly or through a screening contractor, for the effective and efficient screening of persons who access aircraft or restricted areas through screening points, the property in their possession or control and the belongings or baggage that they give to an air carrier for transport.

Restricted areas

(1.‍1) For the purposes of subsection (1), a restricted area is an area designated as a restricted area under the Aeronautics Act at an aerodrome designated by the regulations or at any other place, including any other aerodrome, designated by the Minister.

Agreement — screening

30.‍1 (1) The Authority may, with the Minister’s approval and subject to any terms and conditions that the Minister may establish, enter into an agreement respecting the delivery of screening referred to in subsection 6(1) with any person who requests the delivery of such screening.

Mandate

(2) For greater certainty, the Authority’s mandate under subsection 6(1) includes any screening it delivers, either directly or through a screening contractor, under an agreement entered into under subsection (1).

Cost recovery

(3) Despite subsection (2), if the Authority delivers screening for which payment of an amount is required from the other party under the terms of an agreement entered into under subsection (1), the delivery of that screening is deemed, for the purposes of recovering that amount, not to be a duty of the Authority under this Act.

Repositioning of empty containers

(2.‍1) Subsection (1) does not apply in respect of carriage between one place in Canada and another, without consideration, of empty containers that are owned or leased by the ship’s owner and of any ancillary equipment that is necessary to ensure the safety, security, containment and preservation of the goods that may be carried in those containers.

Dredging activities

(2.‍2) Subsection (1) does not apply in respect of dredging activities — other than dredging activities that are provided under an agreement with Her Majesty in right of Canada or with an entity which is listed in Annex 19-1, as amended from time to time, of Chapter Nineteen of CETA — carried out by any of the following ships:

• (a) a non-duty paid ship whose owner is a Canadian entity or an EU entity;

• (b) a foreign ship that is registered in the first, or domestic, register of a member state of the European Union and whose owner is a Canadian entity, an EU entity or an entity that is under Canadian or European control;

• (c) a foreign ship that is registered in a second, or international, register of a member state of the European Union and whose owner is a Canadian entity, an EU entity or an entity that is under Canadian or European control; and

• (d) a foreign ship that is registered in a register other than the Canadian Register of Vessels or a register referred to in paragraph (b) or (c), and whose owner is a Canadian entity or an EU entity.

•  

  (a) the carriage of goods by a ship that is described in paragraph (2.‍2)‍(b), from the port of Halifax — where the goods are loaded — to the port of Montreal, or vice versa, if that carriage is one leg of the importation of the goods into Canada; or

Feeder services — single trip

(2.‍4) Subject to subsection (2.‍5), subsection (1) does not apply in respect of the carriage, by a ship that is described in paragraph (2.‍2)‍(c), of goods in a container from the port of Montreal to the port of Halifax, or vice versa, if

Provision of information

(2.‍6) Before a ship engages, without a licence, in any activities referred to in subsections (2.‍2) to (2.‍4) and for which the owner of the ship intends to rely on an exemption under any one of those subsections, the owner shall provide information to an enforcement officer, in the form and manner specified by the Minister, establishing that the ship meets the applicable conditions under any of paragraphs (2.‍2)‍(a) to (d).

Control

(7) For the purposes of paragraphs (2.‍2)‍(b) and (c), an entity is under Canadian or European control

• (a) for an application made on behalf of a ship described in paragraph 3(2.‍2)‍(a), paragraph 5(a); and

• (b) for an application made on behalf of a ship described in paragraph 3(2.‍2)‍(b) or (c), paragraph 4(1)‍(a).

• (b) indicate, for the purpose of paragraph 3(2.‍2)‍(c), the registers that are second, or international, registers of member states of the European Union; and

• (i.‍1) is a loan made by the Canada Infrastructure Bank under the Canada Infrastructure Bank Act,

Canada Infrastructure Bank

26.‍1 Section 26 does not apply with respect to a loan guarantee provided by the Canada Infrastructure Bank on behalf of the government of Canada under paragraph 18(h) of the Canada Infrastructure Bank Act.

corporation means a company or legal person that is incorporated by or under an Act of Parliament or of the legislature of a province, an incorporated company, wherever incorporated, that is authorized to carry on business in Canada or has an office or property in Canada or an income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, insurance companies, trust companies or loan companies; (personne morale)

• (b.‍1) any information obtained under any of sections 53.‍71 to 53.‍81 of the Canada Transportation Act;

• (c.‍1) any information obtained under any of sections 53.‍71 to 53.‍81 of the Canada Transportation Act;

• (b) state that the Minister of Transport requires the information for the purposes of section 53.‍1 or 53.‍2 or any of sections 53.‍71 to 53.‍81 of the Canada Transportation Act and identify the transaction being considered under that section.

Restriction

(4) The information communicated under subsection (1) may be used only for the purposes of section 53.‍1 or 53.‍2 or any of sections 53.‍71 to 53.‍81, as the case may be, of the Canada Transportation Act.

Confidentiality

(5) No person who performs or has performed duties or functions in the administration or enforcement of the Canada Transportation Act shall communicate or allow to be communicated to any other person any information communicated under subsection (1), except to persons who perform duties or functions under section 53.‍1 or 53.‍2 or any of sections 53.‍71 to 53.‍81 of that Act.

• (c) is an arrangement, as defined in section 53.‍7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.‍73(8) of that Act and for which the authorization has not been revoked, if the conspiracy, agreement or arrangement is directly related to, and reasonably necessary for giving effect to, the objective of the arrangement.

Exception

(3) This section does not apply to

• (a) an agreement or arrangement that is entered into or a submission that is arrived at only by companies each of which is, in respect of every one of the others, an affiliate; or

• (b) an agreement or arrangement that is an arrangement, as defined in section 53.‍7 of the Canada Transportation Act, or a submission that is arrived at under that arrangement, that has been authorized by the Minister of Transport under subsection 53.‍73(8) of that Act and for which the authorization has not been revoked, if the agreement, arrangement or submission is directly related to, and reasonably necessary for giving effect to, the objective of the arrangement.

• (d) an agreement or arrangement that constitutes an existing or proposed arrangement, as defined in section 53.‍7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.‍73(8) of that Act and for which the authorization has not been revoked.

• (d) a merger or proposed merger that constitutes an existing or proposed arrangement, as defined in section 53.‍7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.‍73(8) of that Act and for which the authorization has not been revoked.

company means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, telegraph companies, insurance companies and companies to which the Trust and Loan Companies Act applies; (compagnie)

Definition of aircraft

(6) In this section, aircraft has the same meaning as in subsection 3(1) of the Aeronautics Act.

August 1, 2016

15 (1) Subsections 6(2), 7(2), 9(2), 10(2), 11(2) and 12(2) come into force on August 1, 2016 unless, before that day, their coming into force is postponed by a resolution — whose text is established under subsection (2) — passed by both Houses of Parliament in accordance with the rules set out in subsection (3).

Order

(2) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km of an interchange, the Agency may order

• (a) one of the companies to interswitch the traffic; and

• (b) the railway companies to provide reasonable facilities for the convenient interswitching of traffic in both directions at an interchange between the lines of either railway and those of other railway companies connecting with them.

Interswitching limits

(3) If the point of origin or destination of a continuous movement of traffic is within a radius of 30 km of an interchange, a railway company shall not transfer the traffic at the interchange except in accordance with the regulations and the interswitching rate.

Notices of violation

178 (1) The Agency, in respect of a violation referred to in subsection 177(1) or (2.‍1), or the Minister, in respect of a violation referred to in subsection 177(2), (2.‍01) or (2.‍2), may

Delegation by Minister

(2) In the case of a violation referred to in subsection 177(2), (2.‍01) or (2.‍2), the Minister may delegate to the Agency any power, duty or function conferred on him or her under this Part.

• (a) an agreement or arrangement that is entered into or a submission that is arrived at only by parties each of which is, in respect of every one of the others, an affiliate; or