(3) Section 111 of the Act is amended by adding the following in alphabetical order:
``competitive connection rate'' « prix de raccordement concurrentiel »	``competitive connection rate'' means a rate established by the Agency as a result of an application made under section 131;
	38. Paragraph 128(1)(b) of the Act is replaced by the following:
	(b) determining the maximum rate per car to be charged for interswitching traffic, or prescribing the manner of determining that maximum rate, including the adjustments to be made to that maximum rate as a result of changes in costs, and establishing distance zones for those purposes; and
	39. The heading before section 129 of the Act is replaced by the following:
	Competitive Connection Rates
	40. Subsection 129(1) of the Act is replaced by the following:
Application	129. (1) Sections 130 to 136 apply 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) an interswitching rate has not been determined under paragraph 128(1)(b) for a continuous route between the point of origin or destination, as the case may be, and the nearest interchange; and
	(c) the continuous route between the point of origin and the point of destination is operated by two or more companies.
	41. Subsections 130(1) and (2) of the Act are replaced by the following:
Rate to be established on shipper's request	130. (1) The local carrier serving the shipper at the point of origin or destination, whichever is served exclusively by the local carrier, shall, at the request of the shipper, establish a rate applicable to the movement of the traffic between
	(a ) the point of origin and the point of destination; and
	(b) the point of origin or destination, as the case may be , and the nearest interchange with a connecting carrier.
Requirement unaffected by extent of carrier's capability	(2) The local carrier shall establish a rate under paragraph (1)(b) even if it is able to move the traffic between the point of origin and the point of destination or over a portion of that route that is longer than the portion in respect of which the rate is to apply.
	42. Sections 131 to 133 of the Act are replaced by the following:
Application to Agency	131. (1) A shipper may apply to the Agency to establish any of the following matters in respect of which the shipper and the local carrier do not agree:
	(a) the rate applicable between the point of origin or destination, as the case may be, and the nearest interchange with a connecting carrier;
	(b) the designation of the continuous route;
	(c) the designation of the nearest interchange; and
	(d) the manner in which the local carrier is to fulfil its service obligations.
Pre-determina tion	(2) The Agency may proceed to establish a matter referred to in subsection (1) only if it has first determined that
	(a) the shipper has no alternative, effective, adequate and competitive means for the movement of the traffic to which the application relates between
	(i) the point of origin or destination, as the case may be, and the nearest interchange, or
	(ii) the point of origin and the point of destination; and
	(b) the rate established by the local carrier for the movement of the traffic from the point of origin to the point of destination is above the 75th percentile of revenue per tonne kilometre for movements by the local carrier of similar traffic under similar conditions.
Time limit	(3) The Agency must establish the matter or matters to which the application relates within 45 days after receiving the application.
No final offer arbitration	(4) If a shipper makes an application under this section in respect of any matter, the shipper is not entitled to submit any matter involving the movement of the traffic to which the application relates between the point of origin and the point of destination to the Agency for final offer arbitration under section 161 within one year after the day the application is made or, if a competitive connection rate has been established, while it is in effect, if it is in effect beyond the day that is one year after the day the application was made.
Restriction regarding establishment of rate	132. The Agency may not establish a competitive connection rate for the movement of trailers on flat cars, containers on flat cars or less than carload traffic, unless they arrive at a port in Canada by water for movement by rail or by rail for movement by water.
Maximum portion of traffic	133. (1) The portion of a movement of traffic in respect of which a competitive connection rate may be established must not exceed 50 per cent of the total number of kilometres over which the traffic is moved by rail or 1 200 km, whichever is greater.
Exception	(2) On application by a shipper, the Agency may establish a competitive connection rate for a greater portion of a movement of traffic if the Agency is satisfied that no interchange exists within the maximum portion referred to in subsection (1).
Range of rate	133.1 (1) A competitive connection rate must fall in the range of the 75th to the 90th percentile of revenue per tonne kilometre for the movement by the local carrier of similar traffic under similar conditions.
Rate to be compensatory	(2) A competitive connection rate must not be less than the variable costs of moving the traffic, as determined by the Agency.
	43. The Act is amended by adding the following after section 135:
Confidentialit y of information	135.1 Any information used by the Agency to make the determination referred to in paragraph 131(2)(b) or section 133.1 is confidential and may not be disclosed to the applicant.
No other rates may be established	135.2 If a competitive connection rate has been established for a movement of traffic of a shipper, no other competitive connection rate may be established in respect of that movement while the rate is in effect.
	44. (1) Subsection 136(1) of the Act is replaced by the following:
Obligation to provide cars	136. (1) If a competitive connection rate is established, the railway company, other than the local carrier, that moves the shipper's traffic to or from the interchange shall provide the shipper with an adequate supply of cars for the traffic being moved from the point of origin to the point of destination .
	(2) Subsection 136(4) of the Act is replaced by the following:
Tariff to set out service obligations	(4) The tariff setting out a competitive connection rate must set out the manner in which the local carrier issuing the tariff shall, subject to subsection (1), fulfil its service obligations as agreed on by the shipper and the local carrier or as determined by the Agency.
	45. The Act is amended by adding the following after section 136:
Suspension of sections 129 to 136	136.1 If the Governor in Council is of the opinion that the financial viability of a railway company has been seriously affected by the operation of sections 129 to 136, the Governor in Council may, by order,
	(a) suspend the operation of those sections, either entirely or with respect to any kind of traffic specified in the order, in respect of that railway company, or all railway companies, and, if such an order is made, those sections cease to be in force in accordance with the order during the period that is specified in the order, or until the order is repealed; or
	(b) vary or rescind any decision of the Agency that establishes any matter referred to in any of paragraphs 131(1)(a) to (d) in relation to the railway company.
2000, c. 16, s. 5(2)	46. Subsection 141(3) of the Act is replaced by the following:
Notification of changes	(2.1) Whenever the railway company makes a change to the plan, it shall notify the following of the change within 10 days after the change:
	(a) the Minister;
	(b) the Agency;
	(c) the minister responsible for transportation matters in the government of each province through which the railway line passes;
	(d) the chairperson of every urban transit authority through whose territory the railway line passes; and
	(e) the clerk or other senior administrative officer of every municipal or district government through which the railway line passes.
When sale, etc., permitted	(3) Subject to section 144.1 , a railway company may sell, lease or otherwise transfer its railway lines, or its operating interest in its lines, for continued operation.
	47. Subsections 143(3) and (4) of the Act are replaced by the following:
Disclosure of agreement with public passenger service provider	(3) The advertisement must also disclose 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.
	48. Subsection 144(2) of the Act is repealed.
	49. The Act is amended by adding the following after section 144:
Rights and obligations under passenger service agreements continued	144.1 (1) If a railway line, or a railway company's operating interest in a railway line, is sold, leased or otherwise transferred under subsection 141(3) or as the result of an advertisement under subsection 143(1) and, before the day the advertisement was made, an agreement was in force between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line, the rights and obligations of the railway company under the agreement in respect of the operation of that service on that line vest, as of the day the transfer takes place, in the person or entity to which the railway line, or the operating interest, is transferred, unless the public passenger service provider indicates otherwise before that day.
Declaration that line is for general advantage of Canada	(2) Whenever a railway company's rights and obligations under an agreement with VIA Rail Canada Inc. are vested in another person or entity by subsection (1), the portion of the railway line to which the agreement relates is hereby declared, as of the day the transfer takes place, to be a work for the general advantage of Canada.
Duration of declaration	(3) The declaration referred to in subsection (2) ceases to have effect if
	(a) VIA Rail Canada Inc. ceases to operate a passenger rail service on the portion of railway line to which the declaration relates; or
	(b) the operation of the railway line is discontinued.
	50. (1) The portion of subsection 145(1) of the Act before paragraph (a) is replaced by the following:
Offer to governments	145. (1) The railway company shall offer to transfer all of its interest in the railway line to the governments and urban transit authorities mentioned in this section for not more than its net salvage value to be used for any purpose if
	(2) Subsection 145(2) of the Act is replaced by the following:
Which governments receive offer	(2) After the requirement to make the offer arises, the railway company shall send it simultaneously
	(a) to the Minister if the railway line passes through
	(i) more than one province or outside Canada,
	(ii) land that is or was a reserve, as defined in subsection 2(1) of the Indian Act,
	(iii) land that is the subject of an agreement entered into by the railway company and the Minister for the settlement of aboriginal land claims, or
	(iv) a metropolitan area;
	(b) to the minister responsible for transportation matters in the government of each province through which the railway line passes;
	(c) to the chairperson of every urban transit authority through whose territory the railway line passes; and
	(d) to the clerk or other senior administrative officer of every municipal or district government through whose territory the railway line passes.
	(3) The portion of subsection 145(3) of the Act before paragraph (a) is replaced by the following:
Time limits for acceptance	(3) Subject to subsection 146.3(3) , after the offer is received
	(4) Subsection 145(3) of the Act is amended by striking out the word ``and'' at the end of paragraph (b) and by replacing paragraph (c) with the following:
	(b.1) by an urban transit authority, it may accept it within an additional thirty days after the end of the period or periods for acceptance under paragraphs (a) and (b), if it is not accepted under those paragraphs; and
	(c) by a municipal or district government, it may accept it within an additional thirty days after the end of the period or periods for acceptance under paragraphs (a), (b) and (b.1) , if it is not accepted under those paragraphs.
	(5) Subsections 145(4) and (5) of the Act are replaced by the following:
Communicati on and notice of acceptance	(4) Once a government or an urban transit authority communicates its written acceptance of the offer to the railway company, the right of any other government or urban transit authority to accept the offer is extinguished, and the railway company must notify the other governments and urban transit authorities of the acceptance.
Net salvage value	(5) If a government or an urban transit authority accepts the offer, but cannot agree with the railway company on the net salvage value within ninety days after the acceptance, the Agency may, on the application of the government or urban transit authority or the railway company, determine the net salvage value.
2000, c. 16, s. 8	51. Sections 146 and 146.1 of the Act are replaced by the following:
Discontinuati on	146. (1) If a railway company has complied with the process set out in sections 143 to 145, but an agreement for the sale, lease or other transfer of the railway line or an interest in it is not entered into through that process, the railway company may discontinue operating the line on providing notice of the discontinuance to the Agency. Thereafter, the railway company has no obligations under this Act in respect of the operation of the railway line and has no obligations with respect to any operations by any public passenger service provider over the railway line.
No obligation	(2) Subject to subsection (3) , if the railway line, or any interest of the railway company in it , is sold, leased or otherwise transferred by an agreement entered into through the process set out in sections 143 to 145 or otherwise, the railway company that conveyed the railway line has no obligations under this Act in respect of the operation of the railway line as and from the date the sale, lease or other transfer was completed and has no obligations with respect to any operations by any public passenger service provider over the railway line as and from that date.
Obligation to resume operations or offer for sale	(3) If, by reason of any term or condition in the instrument by which a railway line or an operating interest in a railway line is transferred through the process set out in sections 143 to 145 or otherwise, the railway line or the operating interest reverts to the railway company that transferred it, the railway company must, within 60 days after the reversion, resume operations on the line or follow the process set out in sections 143 to 145.
Compensation	146.1 (1 ) A railway company that discontinues operating a grain-dependent branch line listed in Schedule I, or a portion of one, that is in a municipality or district shall, commencing on the date on which notice was provided under subsection 146(1), make three annual payments to the municipality or district in the amount equal to $10,000 for each mile of the line or portion in the municipality or district.