CTA Review - April 10, 2001
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY ..............................................................................3
2. FORWARD/INTRODUCTION.......................................................................5
3. BACKGROUND............................................................................................7
4. GUIDING PRINCIPLES ..............................................................................10
5. SAFETY......................................................................................................13
6. RUNNING RIGHTS.....................................................................................14
6.1 Need for Capital Investment......................................................................................... 14
6.2 Efficiencies and Network Capacity.............................................................................. 15
6.3 Regional Railways’ Need for Service .......................................................................... 15
6.4 Rate Pressures .............................................................................................................. 16
7. REGIONAL RAILWAYS .............................................................................21
8. INTERSWITCHING.....................................................................................23
9. RAILWAY MERGERS AND INDUSTRY REVIEW .....................................24
10. BRITISH COLUMBIA GRAIN USERS........................................................25
11. URBAN PASSENGER RAIL ACCESS ......................................................26
12. CONCLUSION............................................................................................27
APPENDIX A......................................................................................................30
APPENDIX B......................................................................................................31
APPENDIX C......................................................................................................32
APPENDIX D......................................................................................................33.Page 3
CTA Review - April 10, 2001
1. EXECUTIVE SUMMARY
The submission by British Columbia to the Canada Transportation Act (CTA)
Review Panel establishes the provincial position on rail competition. The primary
focus of the submission is on rail running rights, though other recommendations are
included.
Thirteen recommendations have been developed that cover safety, running rights,
regional railways, mergers, grain and urban access. These are based on guiding
principles established to encourage the viability of the Canadian freight system.
BC’s first recommendation is that a railway safety benchmark be set against which
any changes to rail competition will be measured.
Recommendations 2 through 8 provide a new position on running rights. That is, a
limited form of negotiated/arbitrated running rights needs to be provided to regional
carriers while ensuring that the class 1 carriers have the right to appeal. This process
should be reviewed every 3 years.
Recommendations 9 and 10 address the need for continued provincial regulation of
regional carriers.
Recommendation 11 supports rail merger reviews.
Recommendation 12 advocates extending the maximum rate scale provisions of the
CTA to grain moving in to British Columbia.
Recommendation 13 supports access to urban railways for commuter rail service..Page 4
CTA Review - April 10, 2001
The provincial submission attempts to balance the needs of individual stakeholders in
the context of the total transportation system. The goal of this submission is to ensure
that the transportation system supports an export economy and trading nation..Page 5
CTA Review - April 10, 2001
2. FORWARD/INTRODUCTION
The Canada Transportation Act (CTA) Review Panel has been asked to assess rail
competition in Canada, specifically with regard to running rights and other forms of
competitive access remedies. This is significant for British Columbia because the
Province owns the largest regional railway in Canada, BC Rail. In addition, many
other regional railways operate in British Columbia.
The purpose of this paper is to provide the CTA Review Panel with the province’s
position on rail competition. The primary focus of the recommendations on rail
competition is on running rights. However, BC would also like to draw attention to
the need for further amendments to the CTA to ensure that the legislation does not
continue to discriminate against value-added agri-food production in
British Columbia.
The need to ensure that shippers have cost-effective services available must be
balanced against the long-term viability of rail transportation in the province. The
ongoing consolidation of railways in North America and the dynamic operating
environment make the balance difficult to assess and complex to change.
It is important to note that no empirical data is available to assess the potential impact
of change on British Columbia. BC, therefore, is moving cautiously in this area.
A Provincial Coordinator has been appointed to meet with stakeholders and to ensure
that an integrated provincial position is developed. However, BC has not undertaken
a formal consultation process. Stakeholders who have participated in discussions
include shippers, railways, airports, marine ports, and many other transportation
interests. A complete list is available in Appendix A..Page 6
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This submission is divided into several sections. The background section will briefly
explain the significance of railways and ports in British Columbia and describe the
current rail industry in British Columbia. The following section covers some general
principles established for rail transportation. BC’s recommendations on safety,
running rights, regional railways, interswitching, mergers, grain and urban access
make up most of the remaining sections.
The recommendations are listed in the conclusion..Page 7
CTA Review - April 10, 2001
3. BACKGROUND
British Columbia is served by three class 1 rail carriers, three interprovincial
passenger services, five main regional railways and one commuter train service.
Table 2-1 summarizes British Columbia’s railways.
Table 2-1: British Columbia Railways
Category Railway Status
Canadian National Railway
(CN)
Canadian domiciled
Canadian Pacific Railway (CP) Canadian domiciled
Class 1
Burlington Northern Santa Fe
(BNSF)
US domiciled
VIA Rail Federal Crown
Corporation
National Passenger Corporation
of America (Amtrak)
U.S.
Interprovincial Passenger
Service
Great Canadian Railway
Company
Private
British Columbia Railway Provincial Crown
Corporation
Southern Railway of BC Privately owned
Regional Railways
Rail America Private + passenger
service
Okanagan Valley Railway Privately owned
Kelowna Pacific Railway Privately owned
Commuter Rail West Coast Express Regional Government
The province has about 6800 kilometres of mainline track operated by various rail
companies. A map of rail lines in British Columbia is available in Appendix B..Page 8
CTA Review - April 10, 2001
CN and CP both have mainlines into the southwestern portion of the province which
terminate in Vancouver. Both routes were built through the challenging terrain of the
Fraser Canyon. Recently, the two railways have reached an agreement to run trains
bi-directionally in the Fraser Canyon. This means trains run east on the CP line and
west on the CN line representing efficiency gains for the railways.
CN owns the rail line that runs across the northern corridor of the province between
Prince Rupert and the Alberta border. From the Alberta border it routes east to
Edmonton where CN and CP interswitch.
Burlington Northern Santa Fe operates between British Columbia and the
United States (US).
Provincial passenger services are provided by both Crown and privately owned
operators. BC Rail and VIA Rail provide scheduled passenger service within the
province. BC Rail operates a scheduled passenger service between North Vancouver
and Prince George, as well as seasonal tourist packages. The Great Canadian
Railway Company operates seasonal luxury tourist trains between Calgary, Jasper
and Vancouver. Amtrak operates a daily international service from Vancouver to
Seattle. VIA Rail provides scheduled transcontinental service to Vancouver, rural
service from Jasper to Prince Rupert and service on Vancouver Island.
In British Columbia, five main regional railways are regulated by provincial
legislation. BC Rail is a provincial Crown Corporation. Rail America provides
service on Vancouver Island. The Southern Railway of British Columbia is a
Lower Mainland freight service. Okanagan Valley Railway and
Kelowna Pacific Railway are also shortline freight services..Page 9
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Commuter rail service in the Lower Mainland is operated through West Coast
Express. It is a wholly-owned subsidiary of the regional government, TransLink, and
operates on CP track.
Provincial railways are regulated principally through two pieces of legislation. The
Railway Act (Railway Act [RSBC 1996] Chapter 395) regulates all railways including
BC Rail, and the British Columbia Railway Act (British Columbia Railway Act
[RSBC 1996] Chapter 36) regulates only BC Rail.
Running rights have been established provincially in both pieces of legislation.
However, they only apply when specified on an operating certificate. Appropriate
excerpts are provided in Appendix C.
Railways moved $5.6 billion in British Columbia exports in 1999. This represents
20 percent of the total value of British Columbia’s exports. Between 1990 and 1998,
despite losing significant market share to trucks, the value of rail exports to the
US grew by 86 percent.
Lumber accounted for 59 percent by value of all rail-transported exports to the US in
1998, as compared to 24 percent for sea exports and 18 percent for road exports. The
forestry industry represents 8 percent of British Columbia’s gross domestic product.
Railways are essential to British Columbia’s ports. In 1998, the Port of Vancouver
handled 71 million tonnes of cargo, of which 69 million tonnes were international.
Vancouver is the largest foreign tonnage port in Canada and one of the top three in
North America. The Port of Prince Rupert moved 56 million tonnes of cargo in 1998
despite a 10 percent drop in tonnage from the year before..Page 10
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4. GUIDING PRINCIPLES
The purpose of this section is to set out the principles upon which BC’s
recommendations are based. Any changes to improve rail competition should result
in efficiencies that support a healthy rail industry and trading economy. They should
not threaten the viability of the Canadian rail freight system.
Rail transportation needs to be supported and enhanced as the provincial
economy grows.
British Columbia is a province with a major transportation hub in the
Lower Mainland. More than 50 percent of the total provincial population resides in
this area that is surrounded by mountains, divided by waterways and constrained by
an ocean and an international boundary. In this context, British Columbia’s ports are
competing globally for international traffic. Both land use and traffic congestion are
serious considerations. Maximizing the use of all modes of transportation for freight,
passenger and commuter movement is fundamental in this context.
Rail transportation needs to be able to compete with road transportation. The
expansion of container shipping and the integration of road/rail services are assisting
this goal. Railways are focusing productivity gains on improved service and
scheduling for customers. It is true that some high value, time-sensitive goods favour
the truck mode. However, the drastic shift from rail to road transportation witnessed
in the 1990s cannot be sustained on the existing highway infrastructure in the
Lower Mainland. See Appendix D.
The long-term viability of both class 1 and regional railways must continue.
All existing classes of carriers play a significant role in supporting British Columbia’s
economy. The regional carriers are strategic resources that support the government’s
social, economic and development goals while class 1 carriers are central to the.Page 11
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country’s east-west economic linkages. Class 1 carriers feed marine ports and help
them remain competitive.
British Columbia needs to maintain provincial autonomy over regional railways
and the legislation that supports this important resource.
BC Rail represents a strategic resource for the Province. British Columbia is keenly
interested in protecting the investment it has made in BC Rail and in maintaining the
flexibility it provides in regional economic development. The Province also has an
interest in ensuring the viability of other regional carriers within the province. The
provincial mandate over railways protects small carriers from elements of the CTA
that would render them uneconomic and reduce competition.
British Columbia needs to support and promote its northern corridor.
British Columbia is fortunate to have two major transportation corridors, one in the
south and one in the north. The southern corridor has developed and grown with the
Lower Mainland of the province. British Columbia’s northern route is not supported
by an international centre of commerce like Vancouver, but it has the supporting
infrastructure of a railway, highway and modern port facilities. It is also
congestion-free. Recent reductions in tonnage and the loss of coal resulting from the
closure of Tumbler Ridge have increased attention on the northern route.
Changes to the CTA should avoid overlap and redundancy.
The CTA contains competitive access remedies that have the potential to overlap.
For example, expanding running rights could have the same result as strengthening
competitive line rates (proposed as “competitive access rates” by some). Pursuing
both remedies may not be necessary and enhancing one may provide the opportunity
to eliminate another. The CTA needs to be reviewed with a view to avoiding
redundancy and overlap where possible..Page 12
CTA Review - April 10, 2001
British Columbia needs to encourage the use of commuter rail as a means to
alleviate transportation related greenhouse gases.
In British Columbia, transportation generates 26 megatonnes of greenhouse gases
annually. This represents 43 percent of all emissions in the province. Transportation
emissions are projected to increase to 50 percent of provincial emissions.
West Coast Express commuter rail service removes 2,700 cars from the road during
weekday peak periods..Page 13
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5. SAFETY
A major consideration to any changes of the legislative or regulatory framework must
ensure a continued emphasis on safe rail transportation and operations. Safety must
not be compromised by changes in rail competition. This is of particular concern in
British Columbia where rail tourism is expanding and freight volumes have increased.
In both urban and remote areas of the province, the integration of passenger and
freight movements on railways is increasing. This heightens the need to address
safety.
Recommendation 1:
BC recommends that a benchmark for safe railway operations be
established and any suggested changes to rail competition be measured
against this benchmark..Page 14
CTA Review - April 10, 2001
6. RUNNING RIGHTS
The granting of rail running rights to regional railways has been suggested as a way
to increase rail competition and ensure competitive market prices for moving freight.
The compensation to class 1 carriers for running right access could either be regulated
or open to commercial negotiations between carriers.
6.1 Need for Capital Investment
Class 1 railways believe legislating access to their rail lines will threaten
their revenue stream and the long-term viability of railways.
Running rights have the potential to allow regional carriers to service the
most profitable customers and leave those with lower margins to existing
railways; this reduces class 1 railway revenues.
Class 1 carriers have significantly invested in infrastructure over the
1995-1999 time frame. The 1996 enactment of the CTA supported this
re-investment. Without this investment, system deterioration and service
interruptions could affect British Columbia’s ports. As well, without
consistent investment, railways to the south could draw freight away
from British Columbia’s ports.
Railways need to maintain strong returns and continue to invest during all
economic cycles. The current operating environment has not been
through a full economic cycle..Page 15
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6.2 Efficiencies and Network Capacity
Class 1 railways, by their nature, serve long hauls and large trains most
efficiently. Increasing the number of small operators on rail lines can
reduce overall capacity and network efficiency. Integrating small carrier
shipments between regular class 1 traffic creates scheduling and logistical
challenges. The financial, service and overall network capacity costs of
these impacts can be significant for class 1 carriers.
These concerns regarding the operating environment of class 1 carriers
must be balanced against the needs of regional carriers for service and
competitive rates. In the case of British Columbia Railway, for example,
logistic challenges and network inefficiencies are mitigated because the
Association of American Railroads Field Manual of Interchange Rules
has been adopted by the railroad. These rules establish minimum
standards for rail equipment compliance and compatibility.
6.3 Regional Railways’ Need for Service
One of the most significant barriers to regional railroads is service.
As rates reach a common level, more focus is placed on service.
Regional carriers can only provide service guarantees to their customers
if they receive the same guarantees from interconnecting railways. For
example, BNSF is introducing a freight delivery guarantee from the
Pacific Northwest to northern California. Regional carriers in
British Columbia cannot capitalize on this service because they have no
way of ensuring their cars will connect with BNSF in a timely manner.
Customers of the regional railway who have the option of trucking to.Page 16
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reload can move off the regional rail carrier and take advantage of the
freight service guarantee by BNSF.
In British Columbia regional carriers tend to recognize the cost of access
on class 1 carriers and are willing to pay for it. A number of
commercially negotiated contracts are already in existence.
An alternative to direct running rights, or an addition to them, would be
hauling rights. Hauling arrangements could be used to have a class 1
carrier move regional rail cars with its own power and crews. These
arrangements would be subject to service guarantees. Through these
types of arrangements regional carriers could gain access to transfer
points with more than one carrier but not actually be operating on a class
1 track.
6.4 Rate Pressures
Increased competition between regional and class 1 carriers could have
an effect on rates. Concern that impacts on rates could have a negative
effect on revenue is a serious consideration for both regional and class 1
carriers. However, lower rates support exports. They create a positive
effect if Canadian goods can be made more globally competitive.
Canadian business benefits from the lowest possible transportation cost.
Furthermore, rate reductions do not necessarily result in less revenue if
the market share can be expanded. Lower rates can attract new customers
to rail. BC supports the full utilization of all rail capacity, particularly
where it helps relieve pressure on the road system..Page 17
CTA Review - April 10, 2001
The regulation of rail carriers needs to balance competitive rates and
service with support for a capital-intensive infrastructure.
BC therefore recommends to the CTA Review Panel that:
Recommendation 2:
A limited form of running rights, based on commercially negotiated
agreements, be established for regional railroads in the CTA.
BC recommends that limited running rights be governed by the following
conditions.
Recommendation 3:
Running rights for regional carriers can only be employed to reach the
nearest interchange 1 with more than one connecting railway, a so called,
competitive interchange 2 .
1 Interchange can be defined for these purposes as the first available opportunity to transfer or interswitch
freight with another rail carrier. “Interchange” as defined in the CTA does not apply to this recommendation.
2 Competitive interchange in this case is used to define where there is the opportunity to transfer or interswitch
freight to more than one carrier in the same location..Page 18
CTA Review - April 10, 2001
Running rights within the province should be flexible enough to include
hauling rights, where parties agree. This means there are two options
available under running rights. A class 1 carrier could haul freight to a
competitive interchange for the regional carrier. Hauling arrangements
would allow a class 1 carrier to move regional rail cars with its own
power and crews.
Alternatively, a regional carrier could be granted access to the rail line to
reach a competitive interchange under a running right. The definition of
hauling rights should include the ability to incorporate service guarantees
and penalties.
Increased competition is intended to reduce transportation costs. It
should be designed to ensure that savings are passed on to producers and
consumers.
Recommendation 4:
Running rights must be defined in such a way that either direct access or
access through hauling rights satisfies the definition of “running rights.”
Hauling rights must have the ability to incorporate service guarantees
and penalties.
Regional carriers are expressly forbidden from soliciting or handling
traffic to or from customers located along the portion of class 1 line upon
which running rights are exercised. A running right functions for the
purpose of moving loads to an interchange..Page 19
CTA Review - April 10, 2001
Recommendation 5:
Where running rights are exercised, regional carriers have no right to
solicit traffic from customers located on the class 1 rail line.
Rates for running rights must be commercially negotiated, subject to final
offer arbitration as set out in the CTA.
Recommendation 6:
Running rights are commercially negotiated and subject to final offer
arbitration under the Canada Transportation Act.
In cases where class 1 carriers believe that running rights represent a
threat to the public interest they have the right to oppose running rights
on a specific rail line. This would only be granted after all interested
parties have had the opportunity to be heard.
Recommendation 7:
Class 1 carriers must have the opportunity to present a case that running
right access is contrary to the public interest in specific locations.
Governments must be responsive to the changing pace at which business
is being conducted in Canada and with our trading partners around the
world. The operating environment will significantly affect the utility of
government regulation. In order to ensure that government provides
industry with the greatest chance to succeed, BC recommends ongoing
reviews of running rights..Page 20
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Recommendation 8:
The impact of running rights and other forms of competitive access must
be reviewed every 3 years and must include an assessment of rates,
revenue and network efficiency..Page 21
CTA Review - April 10, 2001
7. REGIONAL RAILWAYS
Regional carriers are often designed to meet specific operational needs or local goals
that can not be met by class 1 carriers. In British Columbia, provincial rail policy and
regulations have developed to reflect the particular goals and objectives of the
Province. They also reflect the investment the Province has made in infrastructure
and regional economic development.
As mentioned previously, British Columbia has used a provincial Crown Corporation
to develop its regional economic development goals with regard to the rail sector.
Changes to federal policy and legislation that impact the regulatory environment,
which the Province has developed to support the Crown Corporation, have the
potential to create significant vulnerabilities for the Province.
Recommendation 9:
BC recommends the CTA Review Panel evaluate the existing legislative
structure to ensure the balance between federal and provincial
legislation can be maintained prior to making recommendations that
could affect provincial carriers.
Provisions of the Canada Transportation Act are primarily aimed at regulating
transnational carriers. As provincially regulated railways, regional carriers are not
subject to the Act. This means that provisions in the Act that would make regional
carriers uneconomic are avoided. In order to ensure regional railways do not become
subject to the CTA, provincial regulation of regional carriers must be maintained.
Recommendation 10:
BC recommends that any changes to create running rights for regional
railways in federal legislation be done in a way that does not infringe on
existing provincial authority over railroads..Page 22
CTA Review - April 10, 2001
Regional railways are not class 1 carriers. They do not have the resources or assets of
class 1 carriers, or the national presence. Regional railways must be able to integrate
traffic movements efficiently with mainline class 1 carriers. By their nature, they are
unable to take advantage of the efficiencies used by national carriers. This increases
the importance of ensuring the regulatory structure gives them the greatest
opportunity to succeed without being given unfair advantage in the market place..Page 23
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8. INTERSWITCHING
On the issue of maximum versus actual interswitching rates, BC has no position.
While BC does not have a specific position on interswitching, it believes the
continued application of interswitching regulations to federal carriers is appropriate.
As long as this continues, the competitive alternatives provided by British Columbia
regional carriers will not be eroded..Page 24
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9. RAILWAY MERGERS AND INDUSTRY REVIEW
BC is concerned that railway mergers and industry consolidation are not subject to
federal or provincial government review. Mergers and reviews should be done within
the context of a national transportation vision. This vision must outline the national
objectives for transportation and support an integrated multi-modal transportation
system that balances community access with global competitiveness. It should also
reflect the ability of large carriers to fill the long-distance, high-volume market and
the small carriers to fill niche markets or move smaller loads that would not otherwise
move by rail.
Mergers and similar business affiliations between railways must not adversely affect
Canadian regional carriers or shippers. There is a need to ensure that mergers and
future partnerships enhance economic opportunities for British Columbia ports,
industries, communities or rail systems.
Recommendation 11:
The Canada Transportation Act should be revised to authorize the
Canada Transportation Agency to review class 1 mergers; to approve or
prohibit a proposed merger, or to impose pro-competitive conditions as a
prerequisite to the merger.
BC also recommends that the Canada Transportation Agency consult with the
Competition Bureau in any merger review..Page 25
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10. BRITISH COLUMBIA GRAIN USERS
BC has requested additional amendments to the CTA in order to ensure that
British Columbia’s feed grain users are treated in an equitable manner.
Since 1995, the Province and the British Columbia livestock feeding industry have
been asking federal Agriculture and Transport Ministers to end the discrimination
against British Columbia’s feed grain users by extending the maximum rate scale
provisions of the CTA to the carriage of grain into British Columbia for domestic use.
There is a significant differential between export and domestic rates that is not
justified by a similar differential in cost. Recent changes to the CTA regarding grain
shipments require railways to significantly reduce export freight rates. However, the
federal government has extended no rate protection whatsoever to users of prairie
feed grains in British Columbia. Without regulation of domestic movements into
British Columbia, the differential between these export rates and domestic rates will
increase significantly.
With the recent changes to the CTA, the federal government is continuing to regulate
all grain shipments eastward by rail including grain bound for eastern Canadian
domestic markets as well as western shipments for export. The legislation is
discriminating against, and effectively imposing a levy restricting inter-provincial
trade in, feed grains for use in British Columbia.
Thus, further amendments to the CTA are required to ensure equity for
British Columbia users of prairie feed grains and to end the discrimination against
value-added agri-food production in British Columbia.
Recommendation 12:
BC recommends that the CTA apply a revenue cap that treats all
Canadian grain users equally..Page 26
CTA Review - April 10, 2001
11. URBAN PASSENGER RAIL ACCESS
In British Columbia, commuter rail services support the efficient movement of
people. Passenger travel time can be reduced and air emissions from transportation
improved. The impact of passenger vehicle congestion on movement of goods can
also be mitigated.
Existing rail rights-of-way in urban areas represent linear corridors that can be used to
move people and freight through congested urban areas. However, urban areas
typically reflect complex operating environments and capacity restraints. The full
social and financial cost-benefit of commuter rail must be balanced against its impact
on freight rail service.
As urban areas expand in British Columbia both regional and class 1 carriers will
come under pressure to provide capacity for local commuter movement. Policy and
legislation should reflect the need to accommodate passenger service on railways.
Recommendation 13:
BC recommends that the CTA be amended to include provisions to
facilitate access to urban rail rights-of-way and a process for negotiating
a balance between commuter rail mobility and the needs of freight
movement. These negotiations should also be covered by final offer
arbitration under the CTA.
There are significant societal benefits that accrue as a result of commuter rail access.
While these are desirable, the costs associated with these benefits should not be borne
by the host railway. There should be an undertaking in the CTA that ensures
compensation for access includes direct, provable costs plus reasonable rates of return
to the host railways..Page 27
CTA Review - April 10, 2001
12. CONCLUSION
The CTA Review Panel has been asked to assess rail competition in Canada,
specifically with regard to running rights and other forms of competitive access
remedies.
BC makes the following recommendations to CTA Review Panel on rail competition.
Recommendation 1:
BC recommends that a benchmark for safe railway operations be
established and any suggested changes to rail competition be measured
against this benchmark.
Recommendation 2:
A limited form of running rights, based on commercially negotiated
agreements, be established for regional railroads in the CTA.
Recommendation 3:
Running rights for regional carriers can only be employed to reach the
nearest interchange with more than one connecting railway, a so called,
competitive interchange.
Recommendation 4:
Running rights must be defined in such a way that either direct access or
access through hauling rights satisfies the definition of “running rights.”
Hauling rights must have the ability to incorporate service guarantees
and penalties..Page 28
CTA Review - April 10, 2001
Recommendation 5:
Where running rights are exercised, regional carriers have no right to
solicit traffic from customers located on the class 1 rail line.
Recommendation 6:
Running rights are commercially negotiated and subject to final offer
arbitration under the Canada Transportation Act.
Recommendation 7:
Class 1 carriers must have the opportunity to present a case that running
right access is contrary to the public interest in specific locations.
Recommendation 8:
The impact of running rights and other forms of competitive access must
be reviewed every 3 years and must include an assessment of rates,
revenue and network efficiency.
Recommendation 9:
BC recommends the CTA Review Panel evaluate the existing legislative
structure to ensure the balance between federal and provincial
legislation can be maintained prior to making recommendations that
could affect provincial carriers.
Recommendation 10:
BC recommends that any changes to create running rights for regional
railways in federal legislation be done in a way that does not infringe on
existing provincial authority over railroads..Page 29
CTA Review - April 10, 2001
Recommendation 11:
The Canada Transportation Act should be revised to authorize the
Canada Transportation Agency to review class 1 mergers; to approve or
prohibit a proposed merger, or to impose pro-competitive conditions as a
prerequisite to the merger.
Recommendation 12:
British Columbia recommends that the CTA apply a revenue cap that
treats all Canadian grain users equally.
Recommendation 13:
BC recommends that the CTA be amended to include provisions to
facilitate access to urban rail rights-of-way and a process for negotiating
a balance between commuter rail mobility and the needs of freight
movement. These negotiations should also be covered by final offer
arbitration under the CTA..Page 30
CTA Review - April 10, 2001
APPENDIX A
CONSULTED STAKEHOLDERS
Neptune Bulk Terminals (Canada) Ltd.
Vancouver Port Authority
Fraser River Port Authority
Prince Rupert Port
BC Rail
Canadian National
Canadian Pacific Railway
Great Canadian Railway Company
Southern Railway of BC
West Coast Express
Vancouver International Airport Authority
WESTAC
Western Canadian Shippers’ Coalition
Prince Rupert Grain Ltd.
Intervistas Consulting Inc.
Western Stevedoring Company Ltd.
BC Wharf Operators Association
Northwest Corridor Development Corporation
BC Agriculture Council
Business Council of BC
Council of Forest Industries
Greater Vancouver Gateway Council
Northern Development Commission.Page 31
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APPENDIX B.Page 32
CTA Review - April 10, 2001
APPENDIX C
Railway Act
Part 12 — Running Powers
Use of another company's property
135 (1) A company may
(a) take possession of, use or occupy any land belonging to another company,
(b) use and enjoy the whole or any portion of the right of way, tracks, terminals, stations or station
grounds of another company, and
(c) have and exercise full right and power to run and operate its trains over and on any portion or
portions of the railway of another company.
(2) A company may only exercise the powers listed in subsection (1) with the prior approval of the
minister and subject to any order and direction which the minister may make in regard to the exercise,
enjoyment or restriction of those powers.
(3) The approval may be given by certificate of the minister on application and notice, and, after a
hearing, the minister may make the order, give the directions and impose the conditions or duties on
either party as to the minister may appear just or desirable, having regard to the public and all proper
interests.
(4) If the parties fail to agree as to compensation, the minister may, in a certificate or by order, set the
amount of compensation to be paid in respect of the powers and privileges granted.
Traffic over connecting lines
187 (1) If a line of one railway joins or connects the line or lines of that railway with another, the
minister may, by certificate, on application of one of the companies or of a municipal corporation or
other public body, order that the railway company that constructed the branch line must provide all
reasonable and proper facilities, by means of the branch, for the interchange of freight and livestock
traffic, and the empty cars incidental to it, between the lines of that railway and those of the railway
with which that branch is so joined or connected, in both directions, and also between the lines of the
first mentioned railway and those of other railways connecting with the lines of the first mentioned
railway, and all tracks and sidings used by the first mentioned railway for the purpose of loading and
unloading cars, and owned or controlled by or connecting with the lines of the company owning or
controlling the first mentioned railway, and other tracks and sidings the minister directs.
(2) The minister may, by certificate, determine as questions of fact and direct the price per car that
must be charged by and paid to the company owning or controlling the first mentioned railway for
that traffic.
British Columbia Railway Act
Running arrangements
19 The company may acquire by purchase or lease or make running arrangements with any railway
lines in British Columbia..Page 33
CTA Review - April 10, 2001
APPENDIX D