Railroad Stocks Fall As Canada Derailment Spills Oil
Railroad stocks plunged Tuesday after a Canadian National Railway (NYSE:CNI) train carrying oil derailed in Saskatchewan, and two cars carrying petroleum distillate caught on fire.
Oil shipments by rail are on the rise amid the shale oil boom and delays over the Keystone pipeline decision. Meantime, coal shipments are declining, and railroads are eager to take on the extra freight to offset the loss.
But increased crude-by-rail shipments have come with growing safety concerns after several high-profile crashes.
More needed to prevent oil train explosion
SEATTLE (AP) - Citing deadly risks associated with increasing volatile shipments of crude oil through Washington, Gov. Jay Inslee on Wednesday said the state and federal governments need to take swift action to prevent and respond to oil spills.
The governor likened an oil train explosion to "a bomb" going off, and said he's concerned that local emergency responders, particularly in smaller communities along rail lines, aren't adequately prepared to respond to accidents.
Derailments of oil trains have caused explosions in several states and Quebec, where 47 people were killed when a runaway train exploded in Lac-Megantic in July 2013.
"We don't want a chance for that to happen in our state," Inslee said at a news conference, where he released preliminary results of a state study on the safety and environmental risks of oil transport.
The study recommends more railroad inspectors, more money for the state's oil spill response and prevention program, boosting firefighting and oil-spill equipment and ensuring that those who transport oil can pay for cleanup.