Determination No. R-2026-176

Application

[1] On July 16, 2026, ONTC filed an application with the Canadian Transportation Agency (Agency) to vary its CoF 26001 to reflect its new ownership of the Newmarket Subdivision, from mile point 98.9 to mile point 226.44.

Background

[2] ONTC is a Crown Agency of the Province of Ontario that reports to the Ministry of Transportation (MTO) and operates both freight and passenger rail operations.

[3] Effective December 19, 2025, ONTC acquired the majority of the Newmarket Subdivision from the Canadian National Railway Company (CN). However, pursuant to the amended Transition Services Agreement between CN and ONTC, CN will continue to operate the subdivision on ONTC’s behalf until such time that ONTC assumes operational control, estimated to be November 15, 2026. Upon assuming operations, ONTC will operate its own freight and passenger services over its Newmarket Subdivision. ONTC also intends to grant CN limited running rights over the Newmarket Subdivision, where necessary, to facilitate CN’s continued rail operations.

[4] Based on the type and volume of certain prescribed goods carried annually by ONTC, the Agency finds that ONTC falls within the class of railway operations described in Item 3 of Schedule IV of the CTA.

[5] Consistent with the Agency’s findings in Determination R-2026-53, the Agency is satisfied that ONTC’s third party liability insurance coverage satisfies the volume-based insurance requirements for its freight operations set out in Item 3 of Schedule IV of the CTA and is considered adequate for the inherent risks of its passenger operations.

[6] As required by section 4 of the Railway Third Party Liability Insurance Coverage Regulations (Regulations), the Agency assessed ONTC’s financial capability to support its proposed self insurance amounts. To support its application, ONTC submitted a letter from MTO as well as its most recent audited financial statements. Following a review of both documents, the Agency is satisfied that ONTC has the financial capability to sustain the proposed self insurance amounts.

[7] Accordingly, the Agency determines that ONTC’s third party liability insurance coverage complies with the applicable insurance requirements set out in the CTA and Regulations and is sufficient for the purposes of its proposed railway operations.

Conclusion

[8] Based on the above, the Agency varies ONTC’s CoF to modify its operations over the Newmarket Subdivision.

[9] Therefore, the Agency issues CoF 26001-1, which supersedes CoF 26001.