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

Pan Am Railways goes up for sale
An observer’s view of the Pan Am Railways sale
NJ Transit claims “major milestone” in PTC progress
Amtrak to reduce New York-Florida trains starting July 6, with more cuts coming October 1
SEPTA Regional Rail is coming back, but many of its suburban riders are still working from home
Ports of Long Beach and Los Angeles set records for container movement
Nebraska Commission files complaint against railroads for blocked crossings
CN plans nearly C$1 billion in capital projects
Norfolk Southern sold its Roanoke headquarters building for $30 million, less than assessed value
Passenger rail between Duluth, Twin Cities hurt by lack of state backing
Port of Savannah calls 10% container volume drop “better than expected”
RRB begins paying CARES Act recovery payments for unemployed rail workers
Q&A: RRB reports performance under customer service plan
Get the latest labor news from the Teamsters

More Headlines