Tank car design changes
Illustration: Rick Johnson
WASHINGTON — A third of U.S. tank cars met upgraded flammable liquids safety requirements in 2018, according to the U.S. Department of Transportation.
The more than 34% of Class 3 flammable liquid tank cars at DOT-117 and DOT-117R standards were up from 20% in 2018, according to a 2019 report from the transportation department.
Thomas Ellman, chief financial officer of car leasing company GATX, noted in a recent investors’ conference call that BNSF has been resisting shippers’ use of retrofited tank cars, offering incentives for them to use newer DOT-117 models.
There were 80,298 tank cars in flammable liquid service in 2018, according to the DOT report.
Tank car fleet usage varies by product demand and pipeline availability.
Can’t they simply charge a higher tariff for using retrofitted cars? (Or cheaper rates for compliant ones) Offsets the additional liability BNSF has to carry I would think.