Questions and answers about the Lac-Mégantic rail bypass project

As of April 2022, Transport Canada has spent approximately $19 million on the project. These costs include expenditures related to the development of engineering plans and environmental and technical field studies. A material order of approximately $11 million has also been placed.

Total project costs are not available at this time. Transport Canada is working with Canadian Pacific to put together a revised cost estimate for the project.

Current market conditions, such as rising material costs and supply chain issues, and project components have evolved since the last estimate in 2018. COVID-19 has also had an effect on some of these factors. Moreover, refined engineering designs and results of the geotechnical studies allowed a better understanding of the project scope and requirements. It has become now necessary to revise the project's construction costs during the plans and design phase, which is currently underway.

As part of the 2022 federal budget, $237.2 million was allocated to Transport Canada in addition to the previously allotted funds. These financial resources will be distributed over five years, starting in 2022-2023, for the construction of the Lac-Mégantic rail bypass, dismantling of the existing track, and implementation of environmental measures. At this time, the Government of Canada will continue to advance elements of the project while a cost-sharing agreement with the Government of Quebec is reached.

The Transport Canada consultation report for the January/February 2022 has been submitted to the Canadian Transportation Agency (CTA). The consultation report for the October/November 2022 will be submitted to the CTA in the coming months. Both reports will be made public once the CTA considers it finalized and complete.

To request a copy of project studies, please contact the project team at TC.InfoLacMegantic.TC@tc.gc.ca. Please note that confidential information must remain protected.

Canadian Pacific (CP) is designing and constructing the bypass. CP will carry out the project in accordance with all applicable regulatory requirements. For example, it will design, build and operate the bypass in accordance with Transport Canada’s Rules Respecting Track Safety.

As CP indicates, bypass will be built with new materials, including new rails and ties.

Transport Canada will continue to conduct regular inspections to ensure that rail operations and infrastructure on the new bypass comply with the rules.

Transport Canada has significantly strengthened its oversight program. It also has put in place regulatory and legislative reforms that included stronger measures and requirements to protect communities living along railway lines.

For example:

• It has hired more rail safety inspectors by around 50% (from 107 in 2013 to 155 in 2022) and tripled the number of inspectors who inspect dangerous goods (from 30 in 2013 to 112 in 2022).
• It has conducted more rail safety inspections, increasing from an average of 20,000 per year in 2013 to approximately 40,000 in 2022.
• The Transportation of Dangerous Goods (TDG) Program has conducted in 2022-2023 more than 4,000 inspections and completed more than 5,000 enforcement actions and risk reduction measures during the year to increase public safety.
• It has strengthened safety standards requirements tank cars carrying flammable liquid such as reduced speed limits and accelerated the phase out of the least crash-resistant tank cars sed in flammable liquids service that breached during the accident of Lac-Mégantic.
• It has strengthened requirements for securing unattended trains. For example, it has made using handbrakes and overturn protection mandatory.
• It has reduced train speeds and established stricter requirements for track inspections. It also made it mandatory to have two people to operate trains carrying dangerous goods.
• It has strengthened the Rules Respecting Track Safety to continuously improve inspection and maintenance practices. This will ensure safe railway operation in Canada.
• It has strengthened regulations concerning brake inspection and maintenance, Safety Management Systems, duty periods, fatigue management, grade crossings, and fire risk mitigation.
• When railway companies transport certain high-risk dangerous goods, Transport Canada now requires them to have emergency response assistance plans. These plans describe how to prepare and respond in case of emergency. They are also very useful to emergency responders.
• It established a new liability and compensation regime for federally regulated railroads. This regime ensures that rail insurance levels of these railroads are sufficient to cover accidents involving crude oil and toxic inhalant goods. They must now hold a minimum insurance of $25 million to $1 billion, based on the type and volume of dangerous goods they carry. A Fund, financed by shippers, was also created to cover damages above the railroads mandatory insurance levels for accidents involving crude oil.

Find out more information about Transport Canada's measures to strengthen rail safety and the transportation of dangerous goods.

The bypass is designed in accordance with Class 3 standards. According to Transport Canada regulations, the maximum permitted speed is 40 mph.

However, trains can also operate at lower speeds because several factors can affect the actual speed of a train circulating on a particular track. These may include physical characteristics, such as terrain, slope,curvature, and temperature.

The conductors may also consider other operational factors, such as the density of rail traffic, to determine the speed of a train.

Railways are responsible for the safety of their rail operations and must determine the safe operating speed at all locations on a track.

The construction and implementation will not determine the frequency or length of the trains operated by CP in the Lac-Mégantic area.

Client demand and traffic volumes will determine the length and frequency of the trains. Frequency and length depend on economics and the needs of rail shippers, such as Tafisa in Lac-Mégantic.

According to the common carrier obligations set out in the Canada Transportation Act, CP must accept with reasonable conditions all traffic that it is asked to transport.

Transport Canada regulates and monitors underlying factors that determine train length and weight.

For example, according to these underlying safety rules, railway companies:

• Must have sufficient braking ability for the train length and weight;
• Must ensure that their trains do not obstruct grade crossings for longer than five minutes when vehicular or pedestrian traffic is waiting to cross;
• Must inspect and maintain their track to ensure it can safely support the number and weight of trains being transported.

Railway companies must ensure that their rail operations are safe and comply with all regulatory requirements. Transport Canada conducts inspections to ensure that railway companies are complying with the rules.

Transport Canada has significantly strengthened its oversight program. It also has put in place regulatory and legislative reforms that included stronger measures and requirements to protect communities living along railway lines.

For example, it includes:

• Introducing a stronger and more robust tank car standard for dangerous goods service in North America and phasing out the least crash-resistant tank cars from flammable liquids service in Canada by 2025
• Introducing railway operating certificates to ensure that railways meet strict safety requirements before they are allowed to operate
• Introducing Rules Respecting Key Routes and Key Trains to reduce the risks and consequences of rail incidents involving dangerous goods by reducing speed limitations and increasing track inspections, risk assessments and mitigation measures
  • Reduced Operating Speed – Railway companies must limit the speed of their trains carrying dangerous goods to a maximum of 50 miles per hour (80 km/hr) at all times, 40 miles per hour (64 km/hr) when transporting goods in older tank cars, and a maximum of 35 miles per hour (56 km/hr) in the most densely populated areas
  • Increased track inspections on key routes
  • Corridor risk assessments – Railway companies are required to conduct risk assessments to determine the level of risk associated with each Key Route over which Key Trains operate. This is in addition to the risk assessments that are completed on a regular basis to address areas of operational risk. The rule provides a process for railway companies to incorporate input from municipalities into Key Route risk assessments.
• Introducing administrative monetary penalties up to $250,000 for non-compliance to regulatory requirements
• Establishing the Railway Safety Management System Regulations that require railway companies to develop processes to proactively identify and address safety concerns (i.e.: identifying hazards, conducting risk assessments and identifying mitigating measures)
• Revising the Railway Freight and Passenger Train Brake Inspection and Safety Rules to strengthen brake inspection and maintenance requirements
• Introducing Duty/Rest Rules for Railway Operating Employees that mandate new limits on the length of a duty period and increase the length of the minimum rest period between shifts

Access to safe drinking water is essential. We will ensure that citizens with a private well retain access equivalent to what they currently have. Several measures will be implemented:

• Water sampling of private wells located up to 200 metres from the right-of-way limits and all private wells owned by property owners affected by the project. Monitoring will be done before, during and after construction of the bypass, and for as long as necessary, until the water table has stabilized.
• Intervention thresholds for water levels and water quality in private wells will be established as a preventive measure to allow for rapid intervention. The threshold will be defined for each well, and according to the specific needs (residence, dairy farm, or business).
• If flow or water quality problems occur as a result of the construction of the railway bypass, several steps will be taken, depending on the situation, to ensure residents have access to a water supply at no cost. For example: new or deeper wells will be built, water treatment systems will be installed and maintained and if required, and drinking water will be provided until the situation is resolved.

All these measures will be at no cost for the private well owners.

The noise reduction walls will diminish the noise level caused by passing trains; however, you will still be able to hear them running.  Noise experts have determined the location of the noise reduction walls to ensure that all Health Canada's guidelines for acceptable sound levels will be met for all residences near the bypass.

Yes, the street will be permanently closed to drivers. Roundabouts will be placed on both sides of the railway and a tunnel will be built with a pedestrian tunnel to allow for pedestrians traffic to circulate.

The project's timeline is currently under review as several steps must be completed before construction can begin, such as the Canadian Transportation Agency's (CTA) approval, land acquisition and all other necessary regulatory approvals.

The Government of Canada is committed to completing this project as quickly as possible. CP and TC are working on a timeline to begin construction upon CTA approval.

The progression of engineering efforts since 2019 have enabled a better understanding of the footprint required to build the railway's bypass.

The footprint now includes the space required for the construction of trenches, embankments and private crossings (bridges, tunnels, etc.), as well as wider space for construction of anti-noise walls or berms, and the installation of security fences as required.

Adjustments were made to meet the operational needs of the railway operator, and for the start of construction.

The footprint also includes an additional margin of approximately 5 to 10 metres to allow for minor adjustments to the design as necessary.

In the end, it is possible that the footprint on some parcels will be reduced and returned to the owner.

No, property owners will not have a portion of their property landlocked because of the bypass project. Where necessary, private crossings will be constructed to allow owners to access their land on the other side of the track.

Maintenance of the private crossings will be under the railway operator's responsibility.

The rail operator has asked owners to modify their coverage due to new private crossings. Public Services and Procurement Canada will compensate these owners. This compensation will cover the increase in their insurance premiums. It will take the form of a single payment based on a calculation of lifetime costs. Common Canadian real estate practices were used to establish the amount of this compensation.

Since the amount is unique to each owner’s situation, this compensation has not been included in the purchase offers. Owners affected by this requirement to modify insurance coverage can submit a compensation request to Public Services and Procurement Canada. They must first obtain an estimate from their insurer.

The final corridor was chosen based on extensive research carried out as part of the feasibility study for the project.

The chosen route allows the railway to be removed from downtown Lac-Mégantic and significantly reduces the number of residential buildings near the railway, from 265 to 8 at a distance of 100 metres from the track.

This route has been recognized as the most advantageous by the Bureau d'audiences publiques sur l’environnement du Québec (BAPE) and as having the least impact on agricultural land by the Commission de protection du territoire agricole du Québec (CPTAQ).

The proposed route also has many safety benefits, including a significant reduction in the number of at-level crossings (from 16 to 4), a reduced slope, and a reduction in the number of residential buildings near the railway.