Order No. 1996-R-324

August 21, 1996

August 21, 1996

IN THE MATTER OF an application by Halifax Grain Elevator Limited pursuant to section 59 of the National Transportation Act, 1987, R.S.C., 1987, c. 28 (3rd Supp.) (hereinafter NTA, 1987) for an investigation into Canadian National Railway Company Freight Tariffs CNR 4436, CNR 4484 and GTW 4501 for the carriage of feed grain from southwestern Ontario, western Canada and various U.S. origins to certain Nova Scotia destinations.

File No. T 7435/96-1

WHEREAS this application was received by the National Transportation Agency (hereinafter the NTA) on April 23, 1996;

AND WHEREAS on July 1, 1996, the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) came into effect. Pursuant to section 195 of the CTA and to the Discontinuance and Continuance of Proceedings Order, 1996, SOR/96-383, proceedings relating to certain matters before the NTA prior to the coming into effect of section 195 shall be dealt with by the Canadian Transportation Agency (hereinafter the Agency), pursuant to the provisions of the CTA. This proceeding is included in the Order as a matter to be dealt with pursuant to the provisions of the CTA;

AND WHEREAS evidence was received from Halifax Grain Elevator Limited, CN, Windsor and Hantsport Railway Company, Halifax Port Corporation, Canada Steamship Lines, Dover Mills Limited, Mr. Joe Von Bommel, Parrish & Heimbecker Limited, Smith Brokerage Limited, the Nova Scotia Department of Agriculture and Marketing, Interpro Sales Limited, Bidalosy Farms Limited, Sproule Farms, the Nova Scotia Chicken Producers Board, the Nova Scotia Turkey Producers' Marketing Board, the Chicken Producers Association of Nova Scotia and ACA Co-operative Limited;

AND WHEREAS the Agency has considered all material received and on file and in accordance with the Decision of the Agency which is appended hereto.

THE AGENCY HEREBY:

  1. Determines that a public hearing is not necessary and that the Decision can be made based on the information on file.
  2. Determines that CN's rate action has had a direct and damaging effect on Halifax Grain Elevator Limited and the marine/ truck transportation routing that serves it.
  3. Determines that if CN's rates were to remain at current levels, economic harm would befall several parties and finds that the subject rates contained in Freight Tariffs CNR 4436 and CNR 4484 and GTW 4501 are prejudicial to the public interest.

NOW THEREFORE, IT IS ORDERED THAT:

  1. CN shall adjust the applicable rates in Tariffs CNR 4436, CNR 4484 and GTW 4501 to remove the prejudicial features.
  2. Pursuant to subsection 61(1) of the NTA, 1987, CN shall forthwith increase and maintain the applicable rates in Tariffs CNR 4436, CNR 4484 and GTW 4501 at a more competitive level. In respect of Tariff GTW 4501, this applies to that portion of the routing within Canada.
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