Decision No. 480-R-2012

December 19, 2012

APPLICATION by Okanagan Valley Railway Company, pursuant to section 94 of the Canada Transportation Act, S.C., 1996, c. 10, as amended.

File No.: 

Okanagan Valley Railway Company (OVRC) applied to the Canadian Transportation Agency (Agency) for a cancellation of Certificate of Fitness No. 98000.

Pursuant to Certificate of Fitness No. 98000, OVRC is authorized to operate a line of railway on the Okanagan Subdivision between Sicamous and Vernon through a lease agreement with the Canadian Pacific Railway Company (CP); and through trackage rights, acting as agent for CP, to exercise CP’s rights and to perform CP’s obligations under a joint section agreement between CP and the Canadian National Railway Company (CN) dated February 12, 1977 under which CN has full joint section rights over CP’s Okanagan Subdivision between Armstrong and Vernon from mileage 31.6 to mileage 46.3 and CP has full joint section rights over CN’s Okanagan Subdivision between Vernon and Kelowna from mileage 85.5 to mileage 118.9 and over CN’s Lumby Subdivision between Lumby Junction and Lumby from mileage 0.0 to mileage 14.4.

OVRC requests the cancellation because its railway operations had ceased and that its liability insurance coverage was cancelled.

Subsection 94(1) of the CTA provides that the holder of a certificate of fitness shall notify the Agency in writing without delay if (a) the liability insurance coverage is cancelled or altered so that it may no longer be adequate; or (b) the construction or operation has changed so that the liability insurance may no longer be adequate.

Subsection 94(2) of the CTA states that the Agency may suspend or cancel the certificate if it determines that the liability insurance coverage is no longer adequate.

Based on the above, the Agency finds that OVRC’s liability insurance coverage is no longer adequate.

The Agency therefore cancels Certificate of Fitness No. 98000.


Raymon J. Kaduck
J. Mark MacKeigan
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