Lac-Mégantic Rail Bypass Project

Location: Lac-Mégantic and Municipalities of Frontenac and Nantes

Key Messages:

  • For the past 10 years, Transport Canada has introduced many measures that improve the safety, security and resilience of Canada’s rail system and the transportation of dangerous goods.

  • The Government of Canada continues to work in collaboration with its partners to complete the Lac-Mégantic Rail Bypass Project as quickly as possible, while minimizing the Project's impact on the community and ensuring the best possible integration.

  • While we are conducting the land acquisition process required for the Project, it is important to emphasize the Government of Canada’s commitment to advancing the Project as soon as possible, while also underscoring the desire to advance the Project in a way that ensures fair treatment for the impacted landowners and benefits to the community.   
  • Construction of the Bypass will begin once the necessary lands have been acquired and all regulatory approvals have been obtained, including from the Canadian Transportation Agency (CTA).

  • Total project costs are not available at this time and will be finalized once the request for proposals is completed by Canadian Pacific and Kansas City. However, as part of the 2022 Federal Budget, $237.2 million was allocated to Transport Canada over five years for the construction of the Lac-Mégantic rail bypass, the dismantling of the existing track and the implementation of environmental measures. Budget 2023 reiterated that the completion of the Lac-Mégantic rail bypass project remains a priority for the federal government.

Summary of Issue / Background:

  • On July 6, 2013, one of the worst rail disasters in Canadian history took place when a freight train carrying crude oil derailed, caught fire, and exploded in the heart of the town of Lac-Mégantic, Québec. The tragedy took the lives of 47 people, forced hundreds of residents to evacuate, and destroyed much of the community’s downtown core.

  • In May 2018, the Prime Minister of Canada and the former Premier of Québec announced the Lac-Mégantic Bypass Project, which was estimated to cost $133 million at the time. It was to be jointly funded by the federal government (60%) and the province (40%). The commitment was reaffirmed on December 20, 2022, when the Prime Minister of Canada met his Quebec counterpart and both governments said they would increase their funding for infrastructure projects.

  • The Project consists of building a new 12.5 km rail corridor going around the Lac-Mégantic downtown area. The proposed Bypass project will significantly reduce the number of residences located close to the new rail track (from 258 to 18 within a 100m right of way).

  • The main objective is to help the Lac-Mégantic community to move forward and mitigate the traumatic effects associated with the accident. Once the Bypass project is built, the existing rail line will be dismantled to allow for the reconstruction of downtown Lac-Mégantic.

  • The Project continues to receive support from Parliamentarians. On November 1, 2022, the House of Commons passed an unanimous motion in favour of the Project and called on the Government of Canada to complete it as soon as possible.

  • Transport Canada is working with Canadian Pacific, now known as Canadian Pacific and Kansas City Limited (CPKC), to seek the required regulatory approval from the Canadian Transportation Agency for the project. As part of this process, Transport Canada conducted public consultations on the Hydrogeological Report from September to November 2022. During the information sessions, the municipalities, Indigenous communities and affected landowners had the opportunity to ask questions and raise concerns.
  • The negotiation timeframe for the acquisition of parcels of land ended on January 13, 2023. This important step forward followed three postponed negotiation end dates which had allowed impacted owners more time to properly analyze their offer, to use the services of experts, and to obtain reports related to the value and sale of their property. 

  • Following a ministerial visit on January 18, 2023, the municipality of Nantes announced its withdrawal of support for the bypass project due to the lack of social acceptability within its community. A month later, on February 19, 2023, the municipality of Frontenac held a referendum that revealed the opposition of the majority of its residents to the project, confirming its withdrawal of support for the bypass.The City of Lac-Mégantic remains committed and continues to collaborate to move the project forward.

  • In February 2023, the expropriation process was initiated to acquire the land required for the Project. On February 18, 2023, notices of intent to expropriate were published in the Canada Gazette, marking the beginning of the 120-day expropriation process.

  • As required by the Expropriation Act, an objection period and public hearings were held until March 20, 2023, where opponents had the opportunity to share their concerns about the project. The Hearing Officer's report was submitted to the Minister of CSPP on May 25,2023.

  • On May 29, 2023, Transport Canada and PSPC prepared a Statement of Reasons for the Minister of PSPC. The purpose of this document is to address opponents' concerns about the measures and policies put in place by the Government of Canada to mitigate the impact of the bypass on properties and communities.

  • The Minister of PSPC confirmed the expropriation as the mechanism to acquire the land required for the bypass project and the notice of intent to expropriate was published in the Registre Foncier du Quebec on June 14, 2023.

  • The Governor in Council (GIC) authorized by Order-in-Council, the Government of Canada to take possession of the required lands within a shorter timeframe, thus setting the date for taking physical possession on August 1, 2023, after a period of 46 days, instead of 90 days as stipulated by law.
    • On July 12, 2023, in reaction to the confirmation of the expropriation notices, 14 opponents to the project officially filed a judicial review to challenge the expropriation process initiated by the federal government. While the judicial review is in progress, the project continues.