Bayside Canadian Railway

Its apparent sole purpose was to perform as a Canadian railway, to take advantage of a loophole in the Jones Act that would normally forbid the use of foreign-flagged vessels in shipping between two U.S.

[1] The Jones Act requires the use of U.S.-flagged vessels when shipping between two U.S. ports, but there is an exemption,[5] the so-called third proviso,[6] when part of the route is over Canadian rail lines.

[2] On August 16, 2021, the U.S. Customs and Border Protection (CBP) gave American Seafoods notice of $350 million in penalties for alleged violations of the Jones Act.

[1] The company sued in federal court, arguing the penalties prevented them from delivering their product, interfering with the affordable supply of pollock for school lunches.

[3] The railway consisted of a single section of standard gauge track of about 200 ft (61 m) long with a buffer stop at one end and a loading ramp at the other.