Originally Posted by juniata guy:
Well, as a tank car shipper of chemical products, I reckon I'll weigh in here.
The tank car industry currently has an annual production capacity of somewhere around 32-33,000 cars. The current industry backlog for new cars is about a year and a half to two years. If we suddenly have to replace 50-75,000 111 tank cars and still have the normal requirement for newly built cars to replace aging ones, the leadtime for a new car could easily go to 4-5 years.
So, in short, the industry is prepared to make whatever changes are required by PHMSA; we simply need an adequate amount of time in which to do it.
Curt
I found Curt's post very informative. I had no idea that the industry was building 30,000 plus new tank cars per year and still can't keep up with demand. I do think that government and industry needs to quickly finalize on a design so that all new cars can be built to the standard. This needs to be a priority of the Dept. of Transportation or whomever is in charge of design approval.
I wonder if production at manufacturing plants can be shifted from say intermodal cars or hoppers to tank cars in order to ramp up capacity. Maybe plant capacity can be expanded thus creating more jobs.
Another post mentioned the Keystone pipeline. This is my understanding: The Keystone pipeline is to built from Canada to existing pipelines in the midwest. The existing USA pipelines will then carry Canadian crude to refineries along the Gulf of Mexico. The crude will be turned into gas and other products which will be exported overseas.
The Keystone line will not transport North Dakota crude anywhere nor will it provide oil products to the USA. The pipeline is expected to create a 1,000 or so jobs during construction and around 50 permanent USA jobs when it is in operation.
North Dakota crude will still need to be transported by train. I don't think that there is any plan to build a pipeline from North Dakota to refineries in Yorktown, VA - the destination of this train. I haven't heard of any plan to build a pipeline from ND to the SF Bay Area refineries. This is why the UP wants permission to bring ND crude to the Bay Area.
Oil transportation will be a continuing debate. No one wants a new refinery or a pipeline built in their neighborhood.
Most of the old refineries that were built out in sticks now have homes, schools and shopping malls surrounding them. At least this is what has happened here in the SF Bay Area. Unfortunately, the oil industry just doesn't have a good safety record. There is a fire, spill, or toxic release at a SF Bay Area refinery a couple of times a year. A few workers are usually injured or killed during these events.
Joe