Decision No. 407-R-2010

October 4, 2010

October 4, 2010

APPLICATION by RaiLink Canada Ltd., pursuant to paragraph 93(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, as amended, to vary Certificate of Fitness No. 96002-6.

File No. R8005/T1


RaiLink Canada Ltd. (RCL) applied to the Canadian Transportation Agency (Agency) to vary Certificate of Fitness No. 96002-6 to reflect the portion of track that has been returned to the Canadian Pacific Railway Company (CP). This portion of track is located between Smiths Falls (mileage 0.0) and Chalk River (mileage 115.3) of the Chalk River Subdivision; and between Chalk River (mileage 0.0) and East of Mattawa (mileage 70.0) of the North Bay Subdivision. This includes the running rights returned to CP from mileage 0.0 to 0.5 of the CP Chalk River Subdivision.

The certificate of fitness issued to RCL permits it to operate lines of railway between Smiths Falls and Coniston, Ontario and between Mattawa, Ontario and Témiscaming, Quebec; and also in southern Ontario.

Subsection 92(1) of the Canada Transportation Act (CTA) provides that the Agency will issue a certificate of fitness for the proposed construction or operation of a railway if the Agency is satisfied that there is adequate liability insurance coverage, as determined in accordance with the Railway Third Party Liability Insurance Coverage Regulations, SOR/96-337.

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

The liability insurance requirement is an ongoing requirement and the Agency must be satisfied that a company operating a railway under federal jurisdiction continues to have adequate third party liability insurance coverage.

With respect to the adequacy of the third party liability insurance coverage, the Agency has reviewed the information on file and has examined RCL's financial capability to self-insure for the amount of the self-insurance based on the financial statements of its parent company, RailAmerica Inc., and the indemnity agreement entered into between both parties in respect of the amount of self-insurance.

Based on this review, the Agency is satisfied that there continues to be adequate third party liability insurance coverage, including self-insurance, for RCL's railway operation.

Accordingly, pursuant to paragraph 93(1)(c) of the CTA, the Agency varies Certificate of Fitness No. 96002-6 by deleting "Smiths Falls" and replacing it with "mileage 70.0 of the North Bay Subdivision" in paragraph 1; and by deleting "and in Smiths Falls, from mileage 0.0 to mileage 0.5 of the CP Chalk River Subdivision" in paragraph 2.

Certificate of Fitness No. 96002-7 supersedes Certificate of Fitness No. 96002-6 issued to RCL on June 5, 2006.

Members

  • Raymon J. Kaduck
  • J. Mark MacKeigan

Member(s)

Raymon J. Kaduck
J. Mark MacKeigan
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