Thursday, October 6, 2016

Buffett’s BNSF Railway thinking about more secure Oil Tank cars



BNSF Railway Co., the railroad owned with the aid of Warren Buffett’s Berkshire Hathaway Inc., is reconsidering a plan to shop for five,000 oil-tank vehicles constructed to new protection requirements after a few customers voiced issue approximately the initiative.
“before everything all and sundry applauded us for doing it,” BNSF Chairman Matt Rose stated today for the duration of a panel discussion in Washington on oil-by means of-rail safety, without specifying which concerns were raised. “We’re going to go returned and speak to our clients and spot what they need us to do.”
BNSF has said new tanks automobiles — with thicker shells, strengthened ends and thermal blankets to prevent overheating — might reduce risks of using trains to haul oil. Railroads including BNSF generally don’t personal the automobiles their locomotives haul on their tracks. as a substitute, many tank motors belong to leasing groups which include GATX Corp. or oil groups that rely upon trains to hold crude out of North Dakota, which is underserved by pipelines.
“there may be a fashionable notion that this can interject a unique type of car in a specific a part of our deliver chain,” Rose stated. “If our clients do no longer want us on this enterprise, we’ll re-examine. We’ll do something else.”
BNSF announced the planned purchase in February, responding to issues about oil trains, which regularly have more than 100 tank automobiles filled with crude, after a sequence of fiery injuries. A 2013 explosion in Lac-Megantic, Quebec, killed 47.
U.S. regulators have proposed protection policies that encompass thicker-shelled tank automobiles and new pace limits for oil trains. Rose said the organization additionally determined to put off its buy until regulators set up a fashionable. at the same time as thicker walls are warranted, speed regulations could harm other businesses that rely on trains to haul their merchandise, he stated.

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