Decision No. 563-R-2007

November 2, 2007

November 2, 2007

APPLICATION by the Quebec North Shore & Labrador Railway Company 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. 97016 to reflect a change in its railway operations in the provinces of Quebec and Newfoundland and Labrador.

File No. R 8005/Q1


On May 23, 2007, Quebec North Shore & Labrador Railway Company (hereinafter QNS&L) filed with the Canadian Transportation Agency (hereinafter the Agency) the application set out in the title.

Pursuant to subsection 29(1) of the Canada Transportation Act (hereinafter the CTA), the Agency is required to make its decision no later than 120 days after the application is received unless the parties agree to an extension. In this case, QNS&L has agreed to an extension of the deadline until November 8, 2007.

Subsection 92(1) of 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 June 30, 1997, the Agency issued Certificate of fitness No. 97016 to QNS&L to permit the operation of a railway between Sept-Îles and Schefferville, Quebec; Ross Bay Junction and Wabush, Newfoundland; and Wabush Lakes Junction and Labrador City, Newfoundland. The segment of railway between Ross Bay Junction and Wabush Lakes Junction is operated by virtue of running rights agreement with Northern Lands Company Limited.

Paragraph 93(1)(c) of the CTA provides that the Agency, upon application, may vary a certificate of fitness to reflect a change in railway operations or circumstances relating to those operations. QNS&L requires a variance of its certificate of fitness to reflect the transfer of a line of railway operation. The line that was transferred is approximately 134 miles long between Emeril Junction, Newfoundland and Labrador, mileage 225.3 to Schefferville, Quebec, mileage 359.2.

With respect to the adequacy of the insurance coverage, the Agency has reviewed the material filed and finds that there is adequate third party liability insurance coverage, including self-insurance, for QNS&L's operations in Quebec and Newfoundland and Labrador. The Agency's review of QNS&L's financial capacity to self-insure for the amount of self-insured retention was based on QNS&L's financial statements.

Accordingly, the Agency, pursuant to paragraph 93(1)(c) of the CTA, will vary QNS&L's Certificate of fitness No. 97016 dated June 30, 1997 to reflect a change in its railway operations and allow QNS&L to operate a railway between:

  • Sept-Îles, Quebec and Emeril Junction, Newfoundland and Labrador;
  • Emeril Junction and Wabush Lake Junction, Newfoundland and Labrador; and
  • Wabush Lake Junction and Labrador City, Newfoundland and Labrador.

The segment of railway between Ross Bay Junction and Wabush Lake Junction will be operated by virtue of a running rights agreement with Northern Lands Company Limited.

Certificate of fitness No. 97016-1 supersedes Certificate of fitness No. 97016 issued to QNS&L on June 30, 1997.

Members

  • Beaton Tulk
  • John Scott
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