Station naming deals announced
Runaway Rail Car Kicked Loose by Teen Hits New York Station
Škoda unveils its second tram for the Chinese market
Wabtec to buy Faiveley Transport for US$1·8bn
Constantine tram extension contract
Channel Tunnel: '2,000 migrants' tried to enter
Ottawa urban rail gets federal funding
UK and Italian operators order Vossloh locomotives
First Great Western and Eversholt sign Hitachi AT300 train contract
Tanzania, Rwanda and Burundi invite interest in DIKKM railway
Canada said it would create a compensation fund to cover the potential costs of oil-train derailments and finance the move with a new levy on crude shippers.
The planned fund—first reported by The Wall Street Journal earlier Friday—was one of several new measures Canada unveiled to bolster the safety of a rail system carrying growing volumes of crude.
Canada had pledged to hold railways and shippers more accountable after the derailment of a crude-carrying train in Quebec in July 2013 killed 47 people and wiped out the town’s core. The Lac-Mégantic accident spurred regulatory changes in the U.S. and Canada—from beefed up emergency-preparedness requirements to new rules governing railcars—while raising concerns about the risks the oil-by-rail boom poses to communities across North America.
Those risks were highlighted again in two fiery derailments this past week, in West Virginia and northern Ontario. Neither led to deaths or injuries.
Crude shippers will have to pay 1.65 Canadian dollars ($1.32) per metric ton of crude oil carried, Canadian Transport Minister Lisa Raitt said.
Canada said it would also mandate minimum insurance coverage levels for railways based on the type and volume of crude they carry. The minimum required insurance for companies carrying more than 1.5 million metric tons of crude annually is C$1 billion—affecting the country’s two biggest railroads, Canadian National Railway Co. andCanadian Pacific Railway Ltd.
The measures are “an assurance that what needs to be done will be done when it comes to safe transportation,” Ms. Raitt said, adding they are meant “to ensure there are sufficient funds available to compensate the victims of accidents, and pay for any clean up required.”
Spokespeople for CN and CP said the companies were reviewing the announcement.
The amount of crude moving by rail in Canada has quadrupled since 2012, and is forecast to more than triple, to 700,000 barrels a day, between now and 2016. Rail has become an attractive option due to a lack of pipeline infrastructure.
Canadian transportation officials last year had warned that liability insurance might “not be adequate” in the case of a catastrophic event involving dangerous goods, such as crude.
Montreal Maine and Atlantic Railway, which operated the train that derailed in Lac-Mégantic, had C$25 million in coverage. The cleanup tab has been far higher.
This article first appeared on www.wsj.com
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2019 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.