Determination No. R-2022-27

GEXR applied to the Canadian Transportation Agency (Agency) to vary Certificate of Fitness No. 98001-4 to include switching operations for General Motors (GM) at the GM Oshawa Assembly Plant, Ontario, to reflect:

• an agreement between GEXR and the Canadian National Railway Company (CN) to interchange loaded and empty railcars from mileage 301.6 to mileage 302.0 of CN's Kingston Subdivision, located at the GM Oshawa Assembly Plant, in Oshawa; and
• a trackage rights agreement between GEXR and the Canadian Pacific Railway Company (CP) to stage rail cars over a portion of CP's Belleville subdivision at mileage 175.5 at the GM Oshawa Assembly Plant.

Paragraph 92(1)(b) of the CTA provides that the Agency shall issue a certificate of fitness for the proposed operation of a railway that does not relate to a passenger rail service if the Agency is satisfied that there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV of the CTA.

Subsection 93(1) of the CTA provides that the Agency may, upon application, vary a certificate of fitness.

Based on the type and volume, per calendar year, of certain prescribed goods being carried as part of GEXR's operations, the Agency finds GEXR to be in insurance category 2 of Schedule IV of the CTA. The Agency is satisfied that GEXR holds the minimum liability insurance coverage required for the operation of the railway, in accordance with Schedule IV of the CTA.

The Agency is also satisfied that GEXR has the financial capability to sustain the amount of its self-insurance based on the financial position of GEXR's parent company, Genesee & Wyoming Inc. (GWI). The Agency notes that there is an indemnity agreement in force between GWI and GEXR under which GWI has agreed to indemnify GEXR in respect of any amount up to the maximum amount equal to GEXR's self-insurance.

The Agency is therefore satisfied that GEXR meets the liability insurance requirements for its proposed operations.

Accordingly, the Agency, pursuant to subsection 93(1) of the CTA, varies Certificate of Fitness No. 98001-4 as set out above.

Certificate of Fitness No. 98001-5 supersedes Certificate of Fitness No. 98001-4.