Order No. 1991-R-60
February 5, 1991
IN THE MATTER OF an application by the Canadian National Railway Company (hereinafter the applicant) made pursuant to section 255 of the Railway Act, R.S.C., 1985, c. R-3, and deemed to have been made pursuant to section 160 of the National Transportation Act, 1987, R.S.C., 1985 c. 28 (3rd Supp.), for authority to abandon the operation of the segment of the Chandler Subdivision from Ste-Adélaïde (mileage 48.10) to Gaspé (mileage 104.23) (hereinafter the branch line), a total distance of 56.13 miles, in the Province of Quebec.
File No. T6115/376
WHEREAS the application for abandonment of the operation of the branch line was received by the Canadian Transport Commission on April 2, 1986;
AND WHEREAS the operation of the branch line was ordered continued pursuant to Railway Transport Committee Order No. R-40439 dated March 24, 1987;
AND WHEREAS the application must now be reconsidered by the National Transportation Agency (hereinafter the Agency) under section 171 of the National Transportation Act, 1987 (hereinafter the NTA, 1987);
AND WHEREAS on November 21, 1989, the Agency gave notice of the reconsideration of the application and reported an interim determination of the amount 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 there was no evidence provided by the interveners or on file which indicated that the branch line would 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;
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 amount 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:
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 amount of the actual loss is attached as Appendix 2 of the Decision;
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 Chandler Subdivision from Ste-Adélaïde (mileage 48.10) to Gaspé (mileage 104.23), a total distance of 56.13 miles, in the Province of Quebec, twelve (12) months from the date of this Order.
- The applicant shall advise the Agency in writing of the dates upon which:
i) the operation of this segment of the Chandler Subdivision has been abandoned, and
ii) the trackage and other facilities were removed.
- Date modified: