Different acts at the federal and provincial levels use different terms for abandoned and decommissioned railways. While there are many synonyms for these railways, this document uses the term “abandoned railway right-of-way.”

Farmers and other rural landowners often face unique challenges when their property either abuts or is divided by an abandoned railway right-of-way. Farmers have expressed concerns to OFA about abandoned railway rights-of-way and biosecurity, loose dogs, farm crossing use, fencing, impacts on farm practices, municipal drain maintenance, parking, policing, predator control, trespass, vandalism and weed control.

Some municipalities opt to convert abandoned railway rights-of-way into recreational uses. Unfortunately, this does not eliminate the unique problems faced by farmers and rural residents. However, effective management can lessen the impact of some of them on farmers and landowners.

Railway Abandonment Process

This information is provided for landowners whose properties abut with an active railway that in the process of being decommissioned and are interested in observing that process.

Division V of the Canada Transportation Act describes how a railway may be legally discontinued and transferred to another owner. The Transportation Act requires that railway companies maintain a three-year operating plan for existing railways. As interpreted by the Canada Transportation Agency, the Transportation Act requires that a railway company may not discontinue the operation of a railway unless it:

1. Provides notice in the company’s three-year plan for at least 12 months of its intention to discontinue use of the railway line;
2. Publicly advertises the railway line’s availability or any operating interest that the railway company has in the line;
3. Negotiates with interested parties;
4. Offers to transfer all of its interest in the railway line to the applicable federal provincial and municipal governments and urban transit authorities; and
5. Notifies the Agency if the line will be discontinued.

When an active railway is being discontinued, the railway company must first offer to sell, lease, or transfer the railway to another railway company. If an arrangement cannot be made, then the railway is offered for sale to governments and transit authorities. If, once again, no offer is made, the railway can be abandoned (ie. “discontinued”) and sold. Detailed information on the series of events in abandonment of a rail line can be found in the Rail Lines and Brand/Spur Flowcharts. For the abandonment of railway easements, see below: Easements.

As part of this process, railways are assessed for a “net salvage value” by the Canada Transportation Agency. However, the term “net salvage value” is not explicitly defined by the act. The CTA has interpreted the salvage value to be “the market value of an asset less the costs associated with its disposal. These costs can include, but are not limited to, sales commission, track removal, disposal and environmental remediation” (CTA, 2023).

Extinguishment of Railway Easements

Easements under Ontario and Canadian law are complex. If your property has an easement for a railway right-of-way that is undergoing abandonment, it is advisable to obtain the services of a lawyer with a relevant background in order to negotiate with the railway company for the best possible outcome.

Easements have their own written terms and conditions, some of which predate contemporary legislation and may not conform to current norms. When rights under an easement are ended it is typically called “extinguishment,” whereby the servient tenement is released from the easement.

The terms of an easement may influence its extinguishment and the outcome of railway abandonment. Release from an easement does not always guarantee that land rights will revert to the landowner. Railway companies may also be disinclined to extinguish easement rights, as they may have substantial value or potential utility.

In some circumstances, railway companies and landowners may disagree whether the extinguishment of the easement has been achieved. “Under the common law, an easement may be extinguished when the purpose for which it was created ceases to exist… The purpose for which the right was created must be completely and permanently eradicated” (Joannides v. Delaney, 2024). There is also precedence for Ontario courts to reverse the extinguishment of a railway easement (e.g. Remicorp Industries Inc. v. Metrolinx, 2017).

Post-Abandonment

After a railway right-of-way is decommissioned and abandoned, the Railway Safety Act  and active railway sections of the Canada Transportation Act no longer apply (Grade Crossings Handbook, 2016, Section 23.2). Often, an abandoned railway right-of-way becomes part of the local trail system. These converted railways are sometimes called “rail-trails.” Because rail-trails typically serve foot traffic, bicycles, or light vehicles (e.g. ATVs), rail-trails are sometimes associated with increased exposure to trespassing-related concerns. Abandoned railway rights-of-way can also be candidates for future roads and highways.

When a government or non-governmental body obtains ownership, the responsibility for weed control, drainage, and farm crossings transfer to the new owner. Depending on both the new land use and owner, specific acts and regulations may have particular relevance, such as Section 20 of the Line Fences Act (1990), or easements under Section 12 of the Ontario Trails Act (2016).

The short, intermediate and long-term retention of abandoned railway rights-of-way by the province can be used as part of provincial rural redevelopment and revitalization strategies. Abandoned railway lands are often good candidates for other rights-of-way projects, such as roads, that connect rural communities together.

Municipalities and farmers should be aware that the right to carry out normal farm practices (e.g. irrigation, spraying, manure spreading, etc) is retained under the Farming and Food Production Protection Act (1998), regardless of whether an adjacent railway has been converted into a rail-trail, a road, or another land use. Likewise, farmers have a right to a crossing through railways that divide their land. In preservation of property access rights, the right to a crossing must be preserved if the railway is abandoned. A farmer’s livelihood is both dependent upon access to their lands, being where they grow crops or raise livestock, and to the road, which is necessary for the conveyance thereof.

Fencing Abandoned Railway Lands

Please see the Line Fences Act Fact Sheet for additional information about line fences.

Additional Resources

For more information on abandoned railway rights-of-way, contact your local OFA Member Service Representative or OFA’s Guelph office, or consult with the resources below.

• Canada Transportation Act, SC 1996, c. 10.
• Canada Transportation Agency (2023). Guidelines Respecting Net Salvage Value Determination Applications.
• Canada Transportation Agency (2016). Transfer and Discontinuance of Railway Lines.
• Farming and Food Production Protection Act, SO 1998, c. 1
• Joannides v. Delaney (2024), ONCA 540 (CanLII)
• Line Fences Act, RSO 1990, c. L-17
• Line Fences Act Fact Sheet
• Ontario Trails Act, SO 2016, c. 8, Sched. 1
• Railway Association of Canada (2016). Grade Crossings Handbook
• Remicorp Industries Inc. v. Metrolinx (2017), ONCA 443 (CanLII)
• Transport Canada (2009). Railway Right of Way Access Control Policy