NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

CN Rail struggled with track improvements after fiery derailments

Published 2016-04-29, 12:00 p/m
© Reuters.  CN Rail struggled with track improvements after fiery derailments
CNI
-
CP
-

By Allison Martell
NEW YORK, April 29 (Reuters) - Canada's biggest railway
struggled to keep some heavily used track in adequate repair
even after a string of derailments last year showed the danger
of moving oil on poorly maintained track, documents obtained by
Reuters show.
Three trains derailed along one 296 mile (476 km) section of
Canadian National Railway Co CNR.TO track in northern Ontario
in February and March last year. The third train spilled crude
oil in and around a river near the town of Gogama, igniting a
fire that burned for days.
More than 100 pages of correspondence and inspection reports
obtained by Reuters under Canada's freedom of information law
show that a March inspection by Transport Canada, the ministry
responsible for rail safety, found a number of problems with the
track.
But the documents also show that during a July inspection,
months after normal operations resumed, inspectors found new
track problems, including rail that had been secured with too
few bolts, and defective ties. CN brought its trains back up to
normal speeds in late May. (Graphic: http://tmsnrt.rs/1reqKif)
CN Rail told Reuters the July inspection ultimately
uncovered 57 defects, including 10 that required temporary speed
reductions. Seven of those 10 were on the main line. CN said the
defects found in July were repaired by Sept. 3.
Transport Canada lifted its March safety notice on Dec. 15,
2015, signaling that it believed safety problems in the area had
been resolved. But the regulator has not conducted a track
inspection since July. Evidence that problems persisted after
the first inspection has one residents' group wondering how
definitive the ministry's all-clear is.
"Wow. It wasn't taken care of," said Natalie Sear-Beland,
spokeswoman for the Gogama Citizens' Committee, a group formed
last year, after learning about the July inspection results.
Sear-Beland said the town has been "completely in the dark"
about track conditions, and she fears there could be another
accident.
"We have heard nothing from Transport Canada," she said. "If
Transport Canada were more hands on, more often, I think they
wouldn't have as many problems."
CN says it took "decisive action" after the derailments,
adopting new procedures, audits and checklists to prevent
maintenance errors, increasing inspections, raising some
internal track repair standards, and increasing engineering
supervision in the region.
"We believe the citizens of Gogama should be reassured by
Transport Canada's satisfaction with the current condition of
the Ruel Subdivision," the railway said in a statement.
The railway's overall accident rate improved in 2015, coming
in below the industry average, CN said.
"CN is investing heavily in people, process, capital and
technology to minimize risk and continually reduce accidents and
injuries," said Sam Berrada, vice-president for safety and
sustainability, in an e-mailed statement.

RAILS AND HUMAN FACTORS
Transport Canada, made aware of the Gogama resident group's
concerns said: "Canada maintains one of the safest rail
transportation systems in the world as a result of shared
efforts between numerous partners including governments, railway
companies and communities."
Investigations into last year's cluster of derailments are
still ongoing, but CN said it believed they were "likely caused
by a combination of track conditions, inadequate process
controls and human factors."
The documents show Transport Canada sent CN a safety notice
on March 12, 2015, days after the Gogama derailment, saying that
defective rail conditions may have played a role. "As such,
there is risk that another derailment may occur before the root
cause is found," it warned.
Inspectors monitored CN's track repairs and the railway's
work to determine causes in the months after the derailments.
Last year, a Reuters analysis found that CN's safety record
had deteriorated in 2014, as accidents in Canada linked to poor
track conditions spiked. There was no similar pattern at the
competing Canadian Pacific Railway Ltd CP.TO . CN blamed the
trend on bad weather and heavy traffic, and later promised to
spend C$500 million upgrading track in Western Canada. (http://reut.rs/1rnzkv5)

The railway has not suffered a severe derailment since the
Gogama accident, but the inspection reports describe defects
that could have increased the risk of accidents along a line
that carries oil trains from Western Canada to refineries on the
east coast.
Ian Naish, a former director of rail and pipeline
investigations at the Transportation Safety Board, reviewed the
inspection reports, and said they showed CN did not meet minimum
track safety standards designed to prevent derailments.
"There are lots of places where they weren't in compliance,"
he said. On the seven defects serious enough to require speed
restrictions on the main line, Naish said: "It seems to me there
shouldn't be any, if they are doing regular inspections."
Of the 10 defects that required speed restrictions, CN said
eight involved track geometry, and two involved ties.
Frances Gelinas, the member of provincial parliament who
represents the area, said Gogama, which depends on tourism
revenue, is still feeling the effects of the derailment.
"It is life before the derailment, and life after the
derailment. Nothing is the same," she said. "Recruiting tourists
to come and hunt and fish in Gogama is really tough."
Some local residents have retained a civil litigator, James
Wallbridge, but Wallbridge said they have not yet decided how to
proceed.
"We are going to review the cleanup efforts and we should be
in a position to make some decisions by the end of May," he
said.
CN declined to comment on how the cause of the derailments
might affect its liability, or whether any damages could be
material.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Track problems and Canada Rail derailments http://tmsnrt.rs/1reqKif
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.