Torq Reviews Crude-by-Rail Shipments

Torq Transloading Inc., the independent operator of six Canadian terminals, is evaluating new U.S. rules designed to ensure the oil won’t explode or eat holes in tank cars.

The company ships about 40,000 to 45,000 barrels per day, Chief Operating Officer Steve Smith said in an interview today.

The U.S. Transportation Department yesterday ordered energy companies to conduct chemical tests on all crude intended for rail shipment. Rail shipments have surged as Canadian producers boost output from shale formations, and there have been 10 derailments of trains delivering crude in North America during the past year.

The new U.S. rules may affect the types of rail cars used to ship crude, Smith said.

(Company corrects headline and story to say shipments are under review, not halted.)
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