Bloomberg News

Canadian Pacific Revises Safety Measures After Quebec Crash (2)

July 18, 2013

Canadian Pacific Railway Ltd. (CP:US) said it strengthened safety measures after an evaluation prompted by Canada’s worst train disaster in more than a century.

“The recent situation gave us a chance to thoroughly review our safety procedures, as we do on an ongoing basis,” Ed Greenberg, a spokesman for Calgary-based Canadian Pacific (CP), said today in e-mailed statement.

Revisions include locking unattended trains outside terminals, strengthening brake-setting procedures and ensuring that cars carrying regulated commodities are monitored on main-line tracks, he said. Greenberg declined to comment on the cost of the changes because Canadian Pacific, the nation’s second-biggest railroad, will report quarterly earnings on July 24.

Rail safety has come under scrutiny after a Montreal, Maine & Atlantic Railway Ltd. train derailed in Lac-Megantic, Quebec, on July 6, killing as many as 50 people and incinerating 30 buildings in the town’s center. Officials are investigating the cause of the nation’s worst rail disaster since 1910.

Canadian National Railway Co. (CNR), the nation’s largest railroad, has “commenced a review of all train securement measures in the aftermath of the Lac-Megantic tragedy to further strengthen its safety policies,” Mark Hallman, a spokesman for the Montreal-based company, said in an e-mail.

Canadian Pacific’s safety measures were reported earlier today by the Globe and Mail newspaper in Toronto. They come ahead of potential rule changes by Canadian regulators, the newspaper said.

Transport Canada is “gathering evidence to determine if rules and regulations under the Railway Safety Act and the Transportation of Dangerous Goods Act have been followed,” said Maryse Durette, a spokeswoman at the federal agency. “If these regulations were not followed, we will not hesitate to take whatever course of action is necessary.”

Canadian Pacific rose 0.3 percent to C$133.71 at the close in Toronto. Canadian National fell 0.1 percent to C$105.35.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


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    (Canadian Pacific Railway Ltd)
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