Order No. 1989-R-389

December 1, 1989

File No. 39310.264

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WHEREAS the application for abandonment of the operation of the branch line was received by the Canadian Transport Commission on February 13, 1984;

AND WHEREAS the operation of the branch line was ordered continued pursuant to Canadian Transport Commission Order No. R-39599 dated July 25, 1986;

AND WHEREAS the application must now be reconsidered by the National Transportation Agency (hereinafter the Agency) under section 171 of the NTA, 1987 by virtue of the provisions of subsections 171(1) and 171(5);

AND WHEREAS on April 17, 1989, the Agency issued a Notice that it was reconsidering the application, invited submissions on the matter and requested explicitly submissions of evidence on the potential for the branch line to become economic in the foreseeable future;

AND WHEREAS opposition to the proposed abandonment of the branch line has been received by the Agency within the sixty-day period set out in section 161 of the NTA, 1987;

AND WHEREAS all interveners opposed the proposed abandonment based principally on the potential industrial development of the area and a requirement for a competitive transportation system;

AND WHEREAS Rexfor - Malette indicated that it had purchased the bankrupt company, Les Papiers St-Raymond (1983) Inc., and requested that the Agency delay the rendering of a decision in respect of the abandonment of the branch line until March 31, 1990, in order to assess transportation requirements;

AND WHEREAS Rexfor - Malette was instructed by the Agency to forward traffic projections expected to be handled on the St-Raymond Subdivision;

AND WHEREAS no such information was received by the Agency;

AND WHEREAS the Corporation de développement du parc industriel de Saint-Raymond Inc. identified several companies located in the area of St-Raymond who would be affected by the abandonment of the branch line;

AND WHEREAS none of the companies identified have utilized rail services on the Subdivision during the prescribed financial years and no evidence was submitted to support future utilization;

AND WHEREAS the ministère des Transports of the Province of Quebec indicated that the branch line could become profitable if Les Papiers St-Raymond (1983) Inc. and Traitement Sous Pression L.D. Ltée received their traffic at Rivière-à-Pierre instead of Quebec City, and requested that the Agency forward a request to the Federal Minister of Transport, pursuant to section 175 of the NTA, 1987, to enter into an agreement providing payment of contributions to assist in the transition to alternative transportation facilities;

AND WHEREAS such assistance is only given under circumstances where it has been deemed by the Agency that the operation of the branch line is required in the public interest or cannot, by reason of an order continued under subsection 177(1) of the NTA, 1987, be ordered to be abandoned;

AND WHEREAS Traitement Sous Pression L.D. Ltée requested a delay in the proceedings until March 31, 1990 to prepare economic arguments;

AND WHEREAS the Agency granted an extension to Traitement Sous Pression L.D. Ltée until November 9, 1989;

AND WHEREAS Traitement Sous Pression L.D. Ltée subsequently withdrew its opposition to the application;

AND WHEREAS pursuant to section 163 of the NTA, 1987, the Agency made an interim determination of the actual losses incurred by the applicant in the operation of the branch line and caused such determination to be issued by notice dated September 18, 1989;

AND WHEREAS no carload traffic has originated or terminated on the branch line during the prescribed financial years;

AND WHEREAS there was no evidence provided by any of the interveners or any shippers located on the branch line which indicated that the branch line could become economic;

AND WHEREAS no offer to purchase the branch line has been made pursuant to section 174 of the NTA, 1987 within the period prescribed in section 161 of the NTA, 1987.

TAKE NOTE THAT the final determination of the amounts of the actual loss incurred by the applicant in the operation of the branch line in each of the prescribed financial years are as follows:

UPON consideration of all material received and on file related to the subject application,

THE AGENCY HEREBY:

1. Determines that a public hearing is not necessary and that a Decision can be made on the information on file.
2. Determines that the branch line is uneconomic, that there is no reasonable probability of its becoming economic in the foreseeable future and that its operation is not required in the public interest.

NOW THEREFORE, IT IS ORDERED THAT:

1. In compliance with subsection 165(1) of the NTA, 1987, the applicant shall abandon the operation of the St-Raymond Subdivision between Jackson's (mileage 36.50) and Rivière-à-Pierre (mileage 55.57), a total distance of 19.07 miles, in the Province of Quebec, on January 2, 1990.
2. The applicant shall advise the undersigned in writing of the dates upon which:
   

   i) the operation of the St-Raymond Subdivision between Jackson's and Rivière-à-Pierre has been abandoned, and

   ii) the trackage and other facilities were removed.