CN to phase out its fleet of DOT-111 tank cars over the next four years

MONTREAL – Canadian National Railway says it will phase out its own small fleet of 183 DOT-111 tank cars over the next four years as part of a plan to improve safety at the country’s largest railway.

The Montreal-based company announced plans Tuesday to invest $7 million this year to replace all 40 tank cars its owns that are used to transport diesel fuel for its locomotives to yard terminals.

The remaining 143 cars it uses will be gradually replaced as their leases expire.

CN Rail chief executive Claude Mongeau said tank car design was “one of the most important systematic issues” arising from last summer’s railway explosion in Lac-Megantic, Que., that killed 47 people.

The Association of American Railroads, to which CN belongs, has recently recommended the retrofitting or phase-out of the old DOT-11 cars used to transport flammable liquids and a reinforced standard for new tank cars.

The DOT-111 tank car is considered the workhorse of the North American fleet and makes up about 70 per cent of all tankers on the rails. The cars have a service life of between 30 and 40 years.

CN (TSX:CNR) says other features of its plan to improve rail safety are aimed at preventing accidents and strengthening emergency response capabilities by sharing relevant information with communities.

The railway plans to acquire additional monitoring equipment to enhance the early detection of defects in cars.

Its Canadian operations also now adhere to a U.S. policy regulating train dispatches, track inspections and restrictions on train speeds for freight trains carrying even one car loaded with toxic inhalation hazardous materials, or 20 cars loaded with any dangerous goods.

CN says it is “revitalizing” its training programs and will open new training facilities in Winnipeg and Chicago later this year.