Decision No. 17-R-2008

January 17, 2008

January 17, 2008

APPLICATION by Goderich and Exeter Railway Company Limited pursuant to paragraph 93(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, as amended, for a variance to Certificate of Fitness No. 98001 to reflect a change in operations.

File No. R 8005/G2


On September 20, 2007, Goderich and Exeter Railway Company Limited (hereinafter GEXR) applied to the Canadian Transportation Agency (hereinafter the Agency) for a variance to its certificate of fitness as set out in the title.

Subsection 92(1) of the Canada Transportation Act (hereinafter the CTA) states that the Agency shall issue a certificate of fitness for the proposed construction or operation of a railway if the Agency is satisfied that there will be adequate liability insurance coverage for the proposed construction or operation, as determined in accordance with the regulations.

On November 13, 1998, the Agency issued Certificate of fitness No. 98001 to GEXR.

Paragraph 93(1)(c) of the CTA provides that the Agency, on application, may vary a certificate of fitness to reflect a change in railway operations or circumstances relating to those operations.

In this matter, GEXR notified the Agency that Part 3 of the current certificate states that it operates "between Frauts (mileage 74.0) and MacLeod (mileage 77.5) of Canadian National Railway Company's (hereinafter CN) Dundas Subdivision". GEXR now operates "between Frauts (mileage 74.0) and London (mileage 78.2) of CN's Dundas Subdivision, London (mileage 0.0) and London (mileage 4.0) of CN's Strathroy Subdivision". The Agency has reviewed this information and agrees with this change.

On September 12, 2007, GEXR submitted its current third party liability insurance certificate to the Agency. On December 18, 2007, GEXR's parent company, RailAmerica Inc. submitted an indemnity agreement whereby RailAmerica Inc. agrees to indemnify GEXR for the self-insured retention amount of its liability insurance policy.

The Agency has reviewed GEXR's third party liability insurance coverage, including the self-insured retention, and finds it is adequate for the current railway operations.

Accordingly, pursuant to paragraph 93(1)(c) of the CTA, the Agency hereby varies Certificate of fitness No. 98001 issued on November 13, 1998, to reflect the change in railway operations described above.

Certificate of fitness No. 98001-1 supersedes Certificate of fitness No. 98001 issued to GEXR on November 13, 1998.

Members

  • Raymon J. Kaduck
  • John Scott
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