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US, Canadian rail warns Congress of disruptions if safety rules enforced

BIG American and Canadian railways increased pressure on the US Congress to extend a December 31 deadline for new safety rules, warning that failure to act would lead to crippling disruptions, reported Reuters.

In separate September 9 letters sent to the Senate Commerce Committee, the Burlington Northern Santa Fe (BNSF), Norfolk Southern and the Canadian Pacific said service disruptions could affect shippers across a number of industries.

At issue is a congressionally mandated deadline for railways to implement positive train control, or PTC, an advanced safety technology that can prevent major accidents.

A six-year transportation bill approved by the Senate last month would allow the administration to extend the deadline for up to three years. But the Senate measure is not expected to be taken up by the House of Representatives.

The three railways say they will not meet the deadline and may have to suspend service from January 1 to avoid breaking the law.

"The consequences for the economy and for our company would be substantial," BNSF president and CEO Carl Ice said to four committee members as well as US Transportation Secretary Anthony Foxx and regulators.

BNSF, which is owned by billionaire investor Warren Buffett's Berkshire Hathaway, needs to deploy PTC on about half its system, accounting for 80 per cent of volume, Mr Ice said.

Canadian Pacific's president and chief operating officer, Keith Creel, predicted congestion at "critical rail hubs" affecting service across the network if major lines are forced to shut down, prompting railways and shippers to find alternate routes to move freight.