Order No. 1991-R-59
February 5, 1991
IN THE MATTER OF a reconsideration, pursuant to section 171 of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the NTA, 1987), of the application by the Canadian National Railway Company (hereinafter CN), made pursuant to section 255 of the Railway Act, R.S.C., 1985, c. R-3, for authority to abandon the operation of the segment of the Smiths Falls Subdivision from a point near Richmond (mileage 13.00) to a point near Smiths Falls (mileage 34.05), a total distance of 21.05 miles, in the Province of Ontario.
File No. T6115/658
WHEREAS the application was received by the Canadian Transport Commission on May 2, 1983, requesting the abandonment of the operation of the Smiths Falls Subdivision from a point near Richmond (mileage 13.00) to a point near Strathcona (mileage 99.30), a total distance of 86.30 miles;
AND WHEREAS pursuant to Railway Transport Committee (hereinafter RTC) Order No. R-36326 dated March 2, 1984, the operation of the segment of the Smiths Falls Subdivision from a point near Richmond (mileage 13.00) to Smiths Falls (mileage 35.30) was ordered continued, and the operation of the portion of the Subdivision from a point near Smiths Falls (mileage 35.30) to Strathcona (mileage 99.30) was ordered abandoned;
AND WHEREAS pursuant to RTC Order No. R-39889 dated October 10, 1986, the operation of the segment of the Smiths Falls Subdivision from a point near Smiths Falls (mileage 34.05) to Smiths Falls (mileage 35.30), a total distance of 1.25 miles, was ordered abandoned;
AND WHEREAS the application must now be reconsidered by the National Transportation Agency (hereinafter the Agency) under section 171 of the NTA, 1987;
AND WHEREAS on November 30, 1989, the Agency gave notice of the reconsideration of the application and reported an interim determination of the amounts of actual loss incurred in the operation of the branch line;
AND WHEREAS opposition to the proposed abandonment of the branch line was received by the Agency within the period set out in section 161 of the NTA, 1987;
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;
AND WHEREAS VIA Rail Canada Inc. submitted that if CN costs and revenues associated with VIA traffic were considered in the determination of actual loss, the branch line would be either economic or have a reasonable probability of becoming economic as of the year 1989;
AND WHEREAS the Agency has considered the submission by VIA Rail Canada Inc. and has decided not to consider those costs and revenues in the determinations of actual loss and economic viability of the branch line;
AND WHEREAS 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 is as follows:
Year | Total Costs | Revenues | Actual Loss | Carloads |
$ | $ | $ | ||
1986 | 185 363 | 209 571 | (24 208) | 46 |
1987 | 45 948 | 12 980 | 32 968 | 3 |
1988 | 59 270 | 20 232 | 39 038 | 7 |
AND WHEREAS a breakdown by major cost category, pursuant to the Railway Costing Regulations, SOR/80-310 and section 163 of the NTA, 1987, of the principal factors applied in determining the amounts of the actual losses is attached as Appendix 2 of the Decision;
AND WHEREAS CN and VIA have reached an agreement to transfer the branch line pursuant to subsection 168(3) of the NTA, 1987;
AND WHEREAS the Agency has reviewed all the submissions and material on file, and in accordance with the Decision of the Agency.
THE AGENCY HEREBY:
- Determines that a public hearing is not necessary and that a decision can be rendered based on the information on file.
- Determines that the operation of the branch line is uneconomic and that there is no reasonable probability of its becoming economic in the foreseeable future.
NOW THEREFORE, IT IS ORDERED THAT:
In compliance with subsections 165(1) and 168(1) of the NTA, 1987, the applicant shall abandon the operation of the segment of the Smiths Falls Subdivision from a point near Richmond (mileage 13.00) to a point near Smiths Falls (mileage 34.05), a total distance of 21.05 miles, in the Province of Ontario, twelve (12) months from the date of this Order.
THE AGENCY HEREBY REQUESTS THAT:
The applicant shall advise the Agency in writing of the dates upon which:
i) the transfer of this segment of the Smiths Falls Subdivision to VIA Rail Canada Inc. is effective, and
ii) its operation of this segment of the Smiths Falls Subdivision has been abandoned.
- Date modified: