CN Rail Sees U.S. Banning Older Rail Tank cars for Oil in three-five Years

Canadian country wide Railway chief government Claude Mongeau stated on Thursday he expects U.S. regulators to segment out use of DOT-111 tank automobiles in 3 to 5 years, following a lethal explosion in Quebec final 12 months.

Mongeau additionally expects U.S. government to decide no later than early 2015 on a brand new, safer layout for vehicles to move crude oil, he said in an interview.

“Canada has already spoken; all these older legacy DOT-111 vehicles have to be phased out of flammable carrier (there) within the next three years,” Mongeau stated, talking at a Sanford Bernstein conference in big apple. “I think the U.S. will observe fit, three years, 5 years who knows? That’s the range I assume.”

Canada will require that older rail cars used for wearing crude oil be phased out with the aid of may additionally 2017, the government stated in April, moving in advance of america to ban the debatable automobiles in light of burgeoning oil-by means of-rail visitors

The transport of oil with the aid of rail is growing due to fracking in North Dakota and drilling in Alberta’s oil sands. Oil teach cargoes had been beneath scrutiny seeing that a shipment derailed in oil-by way of-rail visitors, Lac Mégantic, Quebec, final July, killing forty seven people in an explosion.

The sort of cars that derailed there are referred to as DOT-111 motors, and are seen as being at risk of puncturing and leakage.

The affiliation of american Railroads has made numerous pointers for the brand new motors, which includes thicker, more potent metal, however shippers, leasing organizations and producers have their personal views too, Mongeau stated.

“There’s vast settlement that we want a new tank car layout for the future,” he said. “There’s now not agreement on every detail and that’s what the rule of thumb-making (process) needs to check and make a choice on from a central authority standpoint.”

CN transported approximately 73,000 carloads of crude oil in 2013 throughout its North American community, greater than double the preceding yr’s carloads, but nonetheless simplest 1.4 percent of its total freight car loadings. It expects to double its crude oil carload volumes again through 2015.

on account that October 2011, new oil tank vehicles had been constructed to a higher general, referred to as CPC 1232. The CPC 1232 standard might be the minimum requirement in Canada three years from now.

within the U.S., that widespread is not yet law, but new motors are already being constructed to that design, Mongeau stated. The association of american Railroads has said it would really like to see a brand new general of railcar for oil carrier with safety functions exceeding the 1232.

BNSF Railway Co stated in March that manufacturing may want to begin in January on the first batch of 5,000 next-technology tank automobiles designed to carry crude oil extra thoroughly.

nonetheless, the older DOT-111 automobiles have numerous years of service remaining, regardless of their perceived flaws.