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Derailment in Oregon Raises Question on Rail Safety
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Safety issues associated with the transportation of crude oil via train have been inviting speculations for long. The prevalence of crude-by-rail shipments has resulted in multiple derailments of railcars, given the inadequate safety standards.
According to a Reuters report, there have been at least 10 major oil-train derailments since 2008 in the U.S. and Canada alone. Such accidents result in rail cars catching fire, often causing large-scale oil spills.
Latest Derailment Rages Havoc
The most recent derailment was reported in the state of Oregon late last week. The train, carrying crude oil, was operated by Omaha, Nebraska-based railroad operator Union Pacific Corp. (UNP - Free Report) . According to the report, eleven of the 96 tank cars of the oil train ran off its rails, resulting in a major fire and oil spill from one of the cars. The company has apparently held “track failure” responsible for the mishap. The incident necessitated the evacuation of a small town (Mosier) in the state. Thankfully, no injuries have been reported. Notably, this derailment closely follows Union Pacific’s announcement of plans to invest $34.6 million in the improvement of the transportation infrastructure in Oregon.
Meanwhile, the Oregon derailment is the first major accident of such nature this year, highlighting the risks associated with the practice of oil transportation via rail.
Rail Safety: A Pressing Issue
Apparently, the tank cars involved in the accident were CPC-1232 models. The safety features of these cars have been in question for quite a while. In a bid to ensure safety, U.S. lawmakers had extended the deadline for the installation of positive train control (PTC) – advanced safety technology – by railroad operators to Dec 31, 2018. PTC is designed to automatically stop a train before accidents.
The above legislation, which calls for replacement of older tank cars, addition of electronic braking systems and imposition of speed limits, was introduced last year. Apart from approving the three-year extension to Dec 31, 2018, Congress stated that under certain conditions, railroads can have an extension of up to 2020.
According to media reports several railroad companies including Norfolk Southern Corp. (NSC - Free Report) , Canadian National Railway (CNI - Free Report) and CSX Corp. (CSX - Free Report) have informed federal regulators about their incapability to install PTC before 2020. However, according to the FRA, some railroads like Kansas City Southern plan to deploy PTC by 2018-end.
We note that initially the 2008 Rail Safety Improvement Act needed railroad operators to install PTC systems by the end of 2015. According to experts, the deadly Amtrak crash in May 2015 could have been prevented through PTC systems. A probe was launched against leading airlines like Delta Air Lines (DAL - Free Report) and American Airlines Group (AAL - Free Report) for possible price gouging. They were accused of hiking ticket prices to unusual levels, taking advantage of the suspension of train service following the crash.
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Derailment in Oregon Raises Question on Rail Safety
Safety issues associated with the transportation of crude oil via train have been inviting speculations for long. The prevalence of crude-by-rail shipments has resulted in multiple derailments of railcars, given the inadequate safety standards.
According to a Reuters report, there have been at least 10 major oil-train derailments since 2008 in the U.S. and Canada alone. Such accidents result in rail cars catching fire, often causing large-scale oil spills.
Latest Derailment Rages Havoc
The most recent derailment was reported in the state of Oregon late last week. The train, carrying crude oil, was operated by Omaha, Nebraska-based railroad operator Union Pacific Corp. (UNP - Free Report) . According to the report, eleven of the 96 tank cars of the oil train ran off its rails, resulting in a major fire and oil spill from one of the cars. The company has apparently held “track failure” responsible for the mishap. The incident necessitated the evacuation of a small town (Mosier) in the state. Thankfully, no injuries have been reported. Notably, this derailment closely follows Union Pacific’s announcement of plans to invest $34.6 million in the improvement of the transportation infrastructure in Oregon.
Meanwhile, the Oregon derailment is the first major accident of such nature this year, highlighting the risks associated with the practice of oil transportation via rail.
Rail Safety: A Pressing Issue
Apparently, the tank cars involved in the accident were CPC-1232 models. The safety features of these cars have been in question for quite a while. In a bid to ensure safety, U.S. lawmakers had extended the deadline for the installation of positive train control (PTC) – advanced safety technology – by railroad operators to Dec 31, 2018. PTC is designed to automatically stop a train before accidents.
The above legislation, which calls for replacement of older tank cars, addition of electronic braking systems and imposition of speed limits, was introduced last year. Apart from approving the three-year extension to Dec 31, 2018, Congress stated that under certain conditions, railroads can have an extension of up to 2020.
According to media reports several railroad companies including Norfolk Southern Corp. (NSC - Free Report) , Canadian National Railway (CNI - Free Report) and CSX Corp. (CSX - Free Report) have informed federal regulators about their incapability to install PTC before 2020. However, according to the FRA, some railroads like Kansas City Southern plan to deploy PTC by 2018-end.
We note that initially the 2008 Rail Safety Improvement Act needed railroad operators to install PTC systems by the end of 2015. According to experts, the deadly Amtrak crash in May 2015 could have been prevented through PTC systems. A probe was launched against leading airlines like Delta Air Lines (DAL - Free Report) and American Airlines Group (AAL - Free Report) for possible price gouging. They were accused of hiking ticket prices to unusual levels, taking advantage of the suspension of train service following the crash.
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