Canadian Pacific follows CN, will add surcharge on older oil tank cars

|About: Canadian Pacific Railway Li... (CP)|By:, SA News Editor

Canadian Pacific Railway (CP) will begin slapping a surcharge on customers who transport crude in older tank cars, following larger rival Canadian National (CNI) in seeking to deter shippers from using the model involved in a series of fiery crashes, Reuters reports.

CP reportedly 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; earlier this week, CNI said it would raise rates for the older variety of DOT-111 tank cars.

The older cars came into public focus after last summer's fatal crash of a runaway crude train in Lac Megantic, Quebec.