Legislation to require tougher insurance for oil shipments by rail 

news & knowledge 

May 17, 2015

News
In Stephen Karmazyn's article: "Legislation to require tougher insurance for oil shipments by rail," Karmazyn writes about the expected big changes coming to Canadian railways through the federal government's Safe and Accountable Rail Act. After the 2013 derailment at Lac-Megantic, the new bill – Bill C-52 – will require railway companies to have insurance ranging from $25 million to $1 billon for transporting large amounts of dangerous goods, such as crude oil and toxic substances.

Transportation Co-Chair François Tougas and transportation lawyer Ryan Gallagher were interviewed for the Financial Post article and comment that the proposed amendments to the Canada Transportation Act will mean that smaller rail companies will be hit hardest and the legislation could essentially knock them out of business. Tougas was quoted as saying, "Wherever you set [the insurance] it's going to have an impact." Both believe that the goods subject to the legislation could evolve as new products are being invented.

To read the full Financial Post article click here.