Cancellation of Scheduled Train Paths. (a) The Operator may, upon 24 hours prior written notice to ARTC, cancel in any 12 month period with the first 12 month period commencing on the Commencement Date, such number of Services per Scheduled Train Path as specified in Schedule 2 with no liability to ARTC to pay for the Charges in respect of the Services so cancelled. For the purpose of this clause, each one way journey is deemed to be a separate Service.
Cancellation of Scheduled Train Paths. As previously pointed out, we oppose the imposition of cancellation fees as we are of the view that these fees are penalties which will hinder the promotion of rail growth. Further, ARTC’s interests are protected by the under-utilization provisions. In relation to sub-clause 9.8 (b), we note your previous advice that, for the purpose of this clause, SCT’s train paths on Tuesday and Friday are like train paths and as such, we would be permitted to transfer the allowable cancellations between those train paths pursuant to this clause. As pointed out to you during previous meetings, our concern is that sub-clause 5.6 (c) could be read such that these train paths, because they have different arrival and departure times, are not like train paths and on this basis, we would not be permitted to transfer the allowable cancellations between these two train paths pursuant to sub-clause 9.8 (b). In relation to sub-clause 9.8 (j), we are of the view that if ARTC is able to sell to another operator the scheduled train path which is a similar train path in terms of revenue, then, depending upon that revenue, there should be a refund or partial refund of the cancellation charge. Further, we do not believe it is necessary that the train path be sold within three months from the date of cancellation. What should be relevant is the amount of revenue ARTC receives at any time during the original term of the cancelled train path. The clause should be amended in any event to provide certainty and so as to read “ARTC shall refund …”. We understand that operators have an option to contract a particular train path and specify the days on which those paths would be used. It seems to us that the agreement is silent on this issue and we would appreciate you providing us with further details in this regard. In particular, we would like to know whether there will be any penalty free cancellations in the event we contract the path for, say 48 weeks in a year.
Cancellation of Scheduled Train Paths. (a) The Operator may cancel certain Scheduled Train Paths at will by serving a written notice on ARTC to that effect in accordance with this clause.
