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Rail News Home Rail Industry Trends

4/10/2007



Rail News: Rail Industry Trends

BNSF to provide haz-mat shippers a pricing incentive to use safer tank cars


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When ringing in the new year, BNSF Railway Co. will be ringing up a new pricing system designed to encourage shippers to use safer tank cars when transporting toxic inhalation hazardous (TIH) and poison inhalation hazardous (PIH) materials.

On Jan. 1, 2008, the Class I plans to begin publishing public prices that include restructured rates based on tank-car risk factors. Tariff incentives will be offered for shippers using certain tank cars specified to carry anhydrous ammonia and chlorine. The cars also can transport other TIH and PIH materials, which account for less than 1 percent of BNSF’s annual traffic volume.

The Association of American Railroads requires that all tank cars built after Jan. 1, 2008, meet TIH/PIH specifications and all shippers convert to the upgraded cars by Dec. 31, 2018.

“We hope this change will incent our TIH/PIH shippers to use the most improved and strongest tank cars available as soon as possible, thus further improving the safety of transporting these materials,” said John Lanigan, BNSF executive vice president and chief marketing officer, in a prepared statement.