Decision No. 28-R-2010
February 3, 2010
APPLICATION by the Canadian National Railway Company pursuant to subsection 98(2) of the Canada Transportation Act, S.C., 1996, c. 10, as amended.
File No. R8045/Y1-1
Application
[1] On October 5, 2009, the Canadian National Railway Company (CN) filed an application with the Canadian Transportation Agency (Agency) for approval of the proposed construction of a new railway line, originating at mileage 0.15 of the Yorkton West Industrial Lead, off CN's Tonkin Spur at mileage 76.04, with headblock at mileage 25.78 Yorkton Subdivision, in the city of Yorkton, in the province of Saskatchewan, as shown on Drawing No. 01-G-0001-Revision B dated September 30, 2009 (Drawing).
[2] The application included an environmental assessment of the project prepared in accordance with the requirements of the Canadian Environmental Assessment Act, S.C., 1992, c. 37 (CEAA). Pursuant to paragraph 5(1)(d) of the CEAA, an environmental assessment of a project is required before the Agency can exercise its discretion under section 98 of the Canada Transportation Act (CTA). As part of its responsibility under the CEAA, the Agency, along with any other responsible authorities, must ensure that an environmental screening is conducted prior to making any irrevocable decision on the project.
[3] For the purpose of its application under section 98 of the CTA and the environmental assessment under the CEAA, CN published a notice in Yorkton This Week on September 30, 2009, in The News Review in Yorkton and l'Eau vive on October 1, 2009 and The News Review Extra on October 3, 2009. Interveners were provided with 30 days to file any comments they may have in respect of CN's application. No interventions were filed with the Agency.
[4] In its Decision No. LET-R-182-2009, the Agency determined, pursuant to paragraph 20(1)(a) of the CEAA, that the proposed railway line is not likely to cause significant adverse environmental effects, taking into account the implementation of the mitigation measures proposed by CN and accepted by the Agency. Further, the Agency also advised CN that should the Agency approve the construction project under section 98 of the CTA, conditions pertaining to the environmental assessment approval listed in Decision No. LET-R-182-2009 would be included in the Agency's approval under the CTA.
Issue
[5] Is the location of the railway line reasonable taking into consideration the requirements for railway operations and services and the interests of the localities that will be affected by the railway line?
Requirements for railway operations and services
[6] CN has identified a need to construct an 8,522 foot (2,598 metres) railway line as well as an 3,321 foot (1,012 metres) run-around line from its existing Yorkton West Industrial Lead which connects to its Tonkin Spur to provide access to the proposed Richardson Oilseed Ltd. (ROL) facility located in Yorkton.
[7] The proposed CN railway line will be an 8,522 foot (2,598 metres) single-track lead connecting to ROL trackage, which will be constructed on ROL private property. The total length of this railway line, including the run-around line, will be 11,843 feet (3,610 metres).
[8] ROL is constructing a new canola crushing facility in Yorkton and, when operational, it is projected that it will process 840,000 tonnes of western Canada canola per year, producing canola oil for sale into food markets in the United States of America and Canada. The by-product, canola meal, will be sold into animal feed markets across North America. Virtually all of the oil and meal will be moved from the plant in rail cars. A portion of the inbound canola seed will be moved into the plant by rail as well.
[9] CN states that the construction of the proposed railway line will enable it to meet the customer's requirements for rail transportation of canola oil and canola meal. CN adds that it plans to provide service to the ROL facility three times per week.
[10] In support of its application, CN filed a letter from ROL, which states that the selection of the site for this plant was strongly influenced by the fact that both the Canadian Pacific Railway Company and CN, with the construction of this spur, will have direct rail access to the site. Service from both carriers will provide ROL with broad access to North American destinations and it will benefit from the transportation competition at its site.
[11] The Agency acknowledges the importance of the railway line to ROL. The railway line will permit the movement of 840,000 tonnes of western Canada canola oil annually and will provide ROL with direct rail service to CN's existing network.
[12] The Agency therefore finds that there is a requirement for railway operations and services.
Interests of the localities
Nature of the operations
[13] The city of Yorkton is located near the eastern border of Saskatchewan, which is a key canola-growing region in western Canada. The new ROL facility will be located at Yorkton's northwest end within the industrial section of Yorkton. According to CN, the trackage will be built on property purchased by CN or over which the City of Yorkton (City) has granted an easement to CN.
[14] The proposed 11,843 foot (3,610 metres) railway line will involve the construction of one road crossing at Sully Avenue, a gravel road infrequently used by the public. The Regional Municipality of Orkney No. 244 (Municipality) is the road authority at this location and CN expects to enter into an agreement with the Municipality for the construction and maintenance of the road crossing. There are also three utilities that will be crossed by the proposed railway line and CN is in discussion with the utility owners and expects to enter into agreements for these utility crossings. In the event that agreements are not reached, CN will make the necessary application to the Agency for approval. No watercourses will be crossed by the proposed railway line.
[15] The proposed railway line will connect to CN's Tonkin Spur and will have a maximum train speed of 15 miles per hour (25 kilometres per hour).
[16] CN indicates that the expected operations involve dropping off blocks of inbound empty traffic on to arrival tracks and picking up outbound loaded blocks. There may be minor block switching within the ROL facility and the run-around track. Switching activities are not anticipated to occur at the Sully Avenue road crossing. Locomotive fuelling will take place at existing CN facilities, predominantly in Melville, Saskatchewan.
[17] The Agency notes that the proposed railway line is very short and subject to low speeds. The proposed operations also do not involve idling or fuelling. Therefore, based on the nature of the operations, the Agency finds that the proposed railway line is reasonable.
Alternatives
[18] CN considered alternatives to the proposed location. However, it concluded that no other locations provided efficient access to ROL's facility and to CN's existing rail infrastructure.
[19] The status quo alternative was also considered. It was concluded that providing access to CN's rail network would be advantageous to both CN and ROL. According to CN, a "do nothing" approach was not an acceptable option for ROL for negotiation and marketing opportunities.
[20] The Agency is satisfied that alternatives were considered and that the proposed location of the railway line is the most efficient route with little adverse impacts as it does not cross watercourses and is in an area that is already zoned for industrial purposes.
Support for the project
[21] In support, ROL states that the construction of the plant started in June 2008 and is scheduled for completion in April 2010.
[22] CN submitted a letter from the Municipality which fully supports the construction of the railway line. The Municipality states that it worked with ROL to ensure its canola crushing plant could become a viable industry in the region. The Municipality adds that the proposed railway line will significantly reduce heavy truck traffic volumes on the highway/road transportation network in the region.
[23] In addition, CN submitted a letter from the City which fully supports the construction of the railway line. The City states that the canola crushing plant is an integral part of the current growth and economic future of the city and the region. The City has granted CN an easement on the land required to construct the railway line to the plant to facilitate the construction of the plant at its current location.
[24] Like the Municipality, the City states that the railway line will benefit the community by limiting the amount of truck traffic on the highway/road transportation network in the region.
[25] The Agency accepts the City's position that CN's railway line is an integral part of the current growth and economic future of the region, and agrees with both the Municipality and the City that the proposed construction of the railway line will benefit the community by limiting the amount of truck traffic that would otherwise be required to service the ROL facility.
[26] The Agency also takes into account comments received through the public consultation process. In this case, no comments were filed with the Agency, and during a public meeting held by CN in Yorkton on September 29, 2009, no negative comments were received. Furthermore, the Agency notes that by letter dated September 8, 2009, CN contacted the Yorkton Tribal Council with respect to this project and no comments or concerns have been received to date.
[27] Based on the above, the Agency finds that the railway line is reasonable, provides economic and operational benefits and suits the industrial interests of the localities.
Conclusion
[28] The Agency concludes that the location of the railway line is reasonable taking into consideration the requirements for railway operations and services and the interests of the localities that will be affected by the railway line.
[29] Accordingly, the Agency, pursuant to subsection 98(2) of the CTA and subject to the following conditions, approves the construction of an 11,843 foot (3,610 metres) railway line to serve the ROL canola crushing plant. The track will extend to the ROL property line from mileage 0.15 of the Yorkton West Industrial Lead, off CN's Tonkin Spur at mileage 76.04, with headblock at mileage 25.78 Yorkton Subdivision, as shown on the Drawing.
Conditions
[30] CN shall:
- implement the mitigative measures, practices and procedures for the protection of the environment, as set out in the environmental assessment and related filings; and
- cause no variation in those mitigative measures, practices and procedures without the prior approval of the Agency.
Members
- Jean-Denis Pelletier, P. Eng.
- J. Mark MacKeigan
Member(s)
- Date modified: