Order No. 2016-R-195
Arnaud Railway Company (ARC) is the holder of Certificate of Fitness No. 97002, issued by the Canadian Transportation Agency (Agency) pursuant to subsection 92(1) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA), which permits ARC to operate a line of railway between Arnaud Junction and Pointe Noire in the province of Quebec.
In Order No. 2015-R-140 dated August 4, 2015, the Agency suspended ARC’s certificate of fitness and ordered it to immediately cease operations and to not resume operations until the Agency is satisfied that ARC meets the applicable insurance requirements.
Wabush Lake Railway Company, Limited (WLRCL) is the holder of Certificate of Fitness No. 97003, issued by the Agency pursuant to subsection 92(1) of the CTA, which permits WLRCL to operate, by virtue of a running rights agreement with the Northern Land Company Limited, a line of railway between Ross Bay Junction and Wabush Lake Junction, and to operate the line of railway of the WLRCL in the province of Newfoundland and Labrador.
In Decision No. 344-R-2015 dated November 4, 2015, the Agency suspended WLRCL’s certificate of fitness and directed it to not resume operations until the Agency is satisfied that WLRCL meets the applicable insurance requirements.
Paragraph 93.1(1)(b) of the CTA requires that the holder of a certificate of fitness maintain at all times the applicable minimum liability insurance coverage for the operation of the railway for which the certificate was issued.
Section 94.2 of the CTA states that the Agency shall suspend or cancel a certificate of fitness if it determines that the holder of the certificate has failed to comply with section 93.1.
Given that ARC and WLRCL have ceased all operations and have advised the Agency that they do not hold the applicable minimum liability insurance coverage, the Agency, pursuant to section 94.2 of the CTA, cancels Certificate of Fitness No. 97002 held by ARC and Certificate of Fitness No. 97003 held by WLRCL.