CP To Slap Surcharge On Older Crude Tankers

[Anonymous]

Good on CP, I figured they would follow CN's lead. Since the so-called "greenies" are going to block the safest form of crude transporation(pipelines) then we must at least phase out those old style Procor cars.

CALGARY/TORONTO (Reuters) - Canadian Pacific Railway Ltd (CP.TO: Quote) is slapping a surcharge on customers who transport crude in older tank cars, following its larger rival in seeking to deter shippers from using the model involved in a series of fiery crashes.

 

CP Rail will add a $325 "general service tank car safety surcharge" on each car of crude that is shipped in any container other than the CPC 1232 model, effective March 14, it said in a notice issued to customers and seen by Reuters. The CPC 1232 model refers to those manufactured since tougher safety standards were voluntarily adopted in October 2011.

 

The new tiered pricing scheme comes the same week that Canadian National Railway Co (CNR.TO: Quote) also confirmed it was increasing rates for the older variety of DOT-111 tank cars, whose long history of puncturing in accidents came into public focus after the disastrous crash of a runaway crude train in Lac Megantic, Quebec, last summer, which killed 47 people.

 

"We are concerned about these cars and their use in transporting crude," CP said in the notice.

 

"Tank car technologies are available today that significantly reduce the likelihood of a release in the event of an incident. We believe these upgraded tank cars are the best investments to enhance safety."

 

The CPC 1232 design refers to a circular issued by the American Association of Railroads requiring all crude- and ethanol-carrying cars ordered after October 2011 to have enhanced safety features, including reinforced outer shells and protective shields.

 

Many in the rail industry are growing increasingly frustrated with U.S. and Canadian regulators who have yet to agree on how and when to impose new tank car standards, even as a growing series of oil-train accidents leaves rail operators facing public outrage and damaged tracks.

 

CP Rail spokesman Ed Greenberg told Reuters that the firm had introduced a "new rate structure for all crude shipments in any car type other than the safest cars."

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[Anonymous]

I completely agree with the working groups; time to phase out the transportation of goods and not just crude in those old Procor cars. Everything from crude to caustic soda should be shipped in the safest cars possible.

OTTAWA - There is a "serious" lack of data in Canada on the transportation of dangerous goods by rail, according to highly anticipated reports by rail safety working groups.



Transport Minister Lisa Raitt created the working groups after a crude-carrying train derailed last July in Lac-Megantic, Que., killing 47 people.



She asked the groups, composed of railway and energy companies, unions, and municipal organizations, to make recommendations on rail safety in Canada.



The working groups noted that the "lack of data" available on the rail industry was "a serious constraint in providing retailed risk analysis and recommendations."



The groups recommended the government collect more data including the towns and communities at risk along transportation routes, and the firefighting resources available by geographic area.



Other recommendations include stregthening emergency response plans and making tanker cars robust. The tankers involved in the Lac-Megantic derailment were class 111, an aging model of train car that the Transportation Safety Board noted isn't sufficiently insulated.



The working groups recommended the government retire, reassign, or retrofit the class 111 tankers. They also recommended Canada and the U.S. jointly demand higher standards be used in the creation of new fleets of tankers for North America.



The reports, dated Jan. 31, were posted on the Transport Canada website late Friday or early Saturday without notification the information was available.



Raitt said in early February that the working group's recommendations will influence future rail safety legislation in Canada.



But she warned that new rules will take time to implement because regulations need to be coordinated with U.S. officials due to the interconnectedness of the continent's railway system.

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