Decision No. 233-R-2004

May 6, 2004

File No. R 8005/S4

On January 12, 2004, Sydney Coal Railway Inc. (hereinafter SCR) and its wholly-owned subsidiary 3986250 Canada Inc. filed with the Canadian Transportation Agency (hereinafter Agency) the application set out in the title.

The Agency issued Certificate of fitness No. 02003-1 dated December 20, 2002 permitting 3986250 Canada Inc. to operate a railway between the international pier on the waterfront in Sydney and the Lingan power generating plant, the rail lines through the coal storage facility at Victoria Junction, including the railway maintenance centre, and a portion of the Glace Bay rail line between the railway maintenance centre and the end of the Old Tank siding, Cape Breton Island, in the province of Nova Scotia.

Subsection 92(1) of the Canada Transportation Act (hereinafter the CTA) states that the Agency shall issue a certificate of fitness for the proposed operation of a railway if the Agency is satisfied that there is adequate liability insurance coverage for the proposed operation.

Paragraph 93(1)(c) of the CTA states that the Agency may, on application, vary a certificate of fitness to reflect a change in railway operations or circumstances relating to those operations.

The proposed variance to the certificate of fitness is requested as a result of the amalgamation of 3986250 Canada Inc. with SCR made pursuant to the provisions of the Canada Business Corporations Act, S.C., 1994, c. 24.

The Agency notes that as a result of the amalgamation, the railway for which Certificate of fitness No. 02003-1 was issued will be operated by SCR instead of 3986250 Canada Inc.

As the Agency is satisfied that there is still adequate third party liability insurance coverage, including self-insurance, for the operation of this railway under the name SCR, the Agency, pursuant to paragraph 93(1)(c) of the CTA, hereby varies Certificate of fitness No. 02003-1 issued on December 20, 2002 to reflect the amalgamation of 3986250 Canada Inc. with SCR.

Certificate of fitness No. 02003-2, which permits SCR to operate a railway between the international pier on the waterfront in Sydney and the Lingan power generating plant, the rail lines through the coal storage facility at Victoria Junction, including the railway maintenance centre, and a portion of the Glace Bay rail line between the railway maintenance centre and the end of the Old Tank siding, Cape Breton Island, in the province of Nova Scotia, supersedes Certificate of fitness No. 02003-1 issued to 3986250 Canada Inc. on December 20, 2002.