Canada oil train accident report says new safety measures needed

Canada's transportation safety agency says inadequate Canadian government oversight and a now-defunct railway company's "weak safety culture" were among a host of factors that led to last year's devastating oil train derailment in Quebec.

The agency, which issued its final report on the accident that killed 47 people, says a similar catastrophe could happen again unless more measures are taken to boost rail safety, as crude-by-rail shipments in Canada and the U.S. skyrocket as energy companies try to compensate for a lack of pipeline capacity.

The report says “all older Class 111 tank cars must not transport flammable liquids, and a more robust tank car standard with enhanced protection must be set for North America."

Shares of companies that manufacture railway cars finished mostly higher today: ARII +2.6%, GBX +2.3%, TRN +1.8%, RAIL -0.2%.

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Comments (2)
  • 27975573
    , contributor
    Comments (404) | Send Message
    The findings are correct....
    The regulation of this will have to catch-up to the marketplace.


    Thus rail car demand will increase again; and the backlog of compliant
    cars will get longer. Assuring a continued rise in the stocks of the major players.
    Trinity, Greenbriar, Am. Railcar.


    Long all the above: TRN, GBX, ARII
    19 Aug 2014, 07:25 PM Reply Like
  • Joe Lunchbox
    , contributor
    Comments (713) | Send Message
    I'm with you. As I understand it, if you order a new tank car today, it will be around 2 years before it's delivered, there just isn't capacity to make them faster (yet). So I foresee lots of backlog, lots of profit, and lots of dividend.
    19 Aug 2014, 11:30 PM Reply Like
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