7061 East Pleasant Valley Road, Independence, Ohio 44131 • (216) 241-2630 / Fax: (216) 241-6516

Membership
Benefits
News and Issues
Departments
Information
Secretary-Treasurer
Merchandise
Communications
FELA
Events
Links
User Info

U.S. Rep. wants to cut hazmat financial risks to rail

(Reuters circulated the following article on June 13.)

WASHINGTON -- A senior Republican lawmaker influential on transportation matters said on Tuesday he will explore options for reducing the financial risk to railroads when they carry hazardous materials.

Rep. Steven LaTourette, chairman of the House of Representatives railroad subcommittee, told industry officials at a hearing that insurance coverage is expensive and limited.

Hazardous materials, like chlorine, ammonia and some resins, are important to operating many industries and are often or nearly exclusively shipped by freight rail. These goods make up less than 1 percent of total carloads but 50 percent of insurance costs.

“Due to the expense and lack of available coverage, most railroads are only able to insure a fraction of their net worth,” the Ohio Republican said. “For a smaller carrier, a single hazmat accident might force the company into bankruptcy.”

LaTourette plans to explore news ways of addressing risk exposure for very hazardous commodities. He suggested that Congress could limit liability for accidents, which is done when railroads haul nuclear material.

“Other alternatives might be a federal liability compensation fund, a national (insurance) program or perhaps even a tort cap,” LaTourette said.

Wednesday, June 14, 2006

Like us on Facebook at
Facebook.com/BLETNational

Sign up for BLET News Flash Alerts

© 1997-2020 Brotherhood of Locomotive Engineers and Trainmen

 


Decertification Helpline
(216) 694-0240

National Negotiations

Sign up for BLET
News Flash Alerts

DAILY HEADLINES

AAR reports rail traffic for week ending September 12, 2020
Amtrak OIG report: Amtrak has improved, but more needs to be done to cut service disruptions
NS monitors Hurricane Sally remnants
Houston residents pursue wrongful death lawsuit against Union Pacific where cancer cluster identified
Politicians, rail experts back passenger rail for southern Montana
After 50 years, BNSF suspends property reimbursements to Wisconsin residents
Q&A: RRB financial reports
Get the latest labor news from the Teamsters

More Headlines