Canadian Pacific Railway And Chlorine Shippers Fight Over Liability For Accidents

The chlorine industry is challenging a move by Canadian Pacific Railway to require shippers of extremely hazardous chemicals to indemnify the freight rail carrier for liability in the event of an accident. In a complaint filed with the Canadian Transportation Agency, several chlorine manufacturers argue that Canadian Pacific’s action violates Canada’s rail liability regulations. “By shifting their liability to shippers, the railroads hope to either force [hazardous] materials into other means of transportation or force shippers to pay for all damages even if they are not at fault,” says Frank Reiner, president of the Chlorine Institute, a trade association of chlor-alkali producers. In the U.S., there have been three deadly rail accidents since 2001 that involved the release of toxic chemicals. Federal investigators determined that they were the result of errors by rail carriers, not shippers, Reiner notes. Rather than commenting on the merits of the chlorine shippers’ complaint, a Canadian Pacific spokesman says the railroad prefers to let the regulatory process play out “and for us to deal directly with those shippers.”