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October 2023
Compiled by Julie Sneider, Senior Associate Editor
Maintaining tank-car fleets so they meet safety requirements is key to the safe transportation of various liquids, including those that are deemed hazardous and/or flammable materials.
In response to a string of rail accidents involving tank cars transporting flammable hazardous materials in Canada and the United States, Congress in 2015 passed regulations requiring that cars carrying certain types of hazmats must meet new safety standards.
The 2015 Fixing America’s Surface Transportation (FAST) Act requires that all Class 3 flammable liquids are carried in DOT-117 or DOT-117R tank cars meeting new safety standards by 2029. Class 3 flammable liquids most commonly include crude oil, ethanol and refined petroleum products.
The U.S. Bureau of Transportation Statistics (BTS) measures this transition’s progress and provides reports on it to Congress. Last month, the BTS issued its latest report, which found that in 2022, 59% of all tank cars carrying Class 3 flammable liquids were built to the new DOT-117 specification or modified/retrofitted to meet the DOT-117R specs.
Each year, BTS also reports its estimates of tank-car production in the coming year that will meet the DOT-117 specification. Based on its census of tank car shops with the ability to produce new DOT-117 cars or retrofit existing cars to the DOT-117R spec, the BTS estimates 4,349 new DOT-117 cars will be produced and 2,565 existing cars will be retrofitted in 2023. That would add a total of 6,914 new DOT-117 or DOT-117R cars to the North American tank-car fleet.
The FAST Act requirements are one major factor that’s keeping tank-car builders, lessors and component suppliers busy. Progressive Railroading recently reached out to a handful of those companies to find out what’s trending in today’s market, as well as the products and services they’re offering. Following are emailed responses from three of them.
Underlying customer demand for tank cars is as high as it’s ever been, AITX officials said.
"Freight shippers are seeking more than rail-car availability. They want more long-term predictability in their planning," they said. "Thus, there’s value in full-service partnerships helping customers navigate market complexity through industry knowledge, capabilities and scale."
Many factors are driving that trend, such as increasing high-cost environments, changing regulatory requirements and tank-car qualification repair timelines.
For example, inflation-boosted car prices from interest rate spikes means new equipment can be costly, AITX officials said. Also, the industry is digesting the various deadlines contained in the FAST Act. Legacy equipment will need to be swapped out for retrofitted or new equipment, they added.
Meanwhile, there’s a diminishing number of qualified repair facilities that have the expertise and capacity to keep rail cars operating for the foreseeable future. AITX is one of the few full-service lessors that invests in its repair business to meet discerning shippers’ requirements and has access to capital to ensure that desired equipment is accessible and available, company officials said.
In July 2021, AITX Rail Services LLC announced a large corporate investment to expand its tank-car capabilities in Brookhaven, Mississippi. There, AITX offers full painting and lining services with the capabilities to qualify 800 to 900 tank cars annually, providing customers access to cars more quickly and safely, AITX officials said.
The Greenbrier Cos. Inc. offers more than 40 tank-car designs. In North America, the company operates three certified tank-car manufacturing locations and three certified repair shops, and manages more than 36,000 tank cars.
The global rail transportation equipment supplier pairs innovation and expertise with a capacity to build and repair transportation equipment, Greenbrier officials said.
The company’s online tank-car resource helps shippers learn more about tank cars, including upcoming regulation deadlines, they said.
In the past, tank cars were once relegated to being equipped with the most inexpensive equipment, said Bill O'Donnell, executive director of global sales for Miner Enterprises Inc.
"It’s hard to understand this strategy today, when tank cars carry the most sensitive commodities on the railroad," he said. "Reconditioned draft gears are just one example. Why would you equip a 50-year asset with a partially worn-out component that is key to protecting the rail car and avoiding a safety issue?"
After the removal of the AAR Field Manual Rule 21 regarding draft gear replacement, the only way to know if a gear is broken or worn out is by evidence of impact damage or the presence of other worn-out components, said O'Donnell.
As a result, more of Miner Enterprises’ customers are relying on the Miner TF-880 draft gear, which has more than 40 years of experience behind it, company officials said. Today, 1.6 million of the gears are in service.
The TF-880 uses a patented TecsPak elastomer compression spring package and friction clutch design to provide better energy management, according to Miner’s website. With 44% more energy absorption than double-coil spring designs, the TF-880 can provide greater spring capacity and significantly reduce the transfer of damaging force to a car.
"For even greater protection, customers are starting to apply Miner TF-5450 draft gears with close to double the protection," O'Donnell said.
Moreover, given the critical importance of operational safety, some tank-car customers are specifying Miner’s premium grating products for running boards, kink boards, end platforms and brake steps, he added.
Email comments or questions to julie.sneider@tradepress.com.
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