Has anything changed since the Lac-Mégantic disaster? Hub International's Ray Monteith takes a look at today's regulatory landscape.
The risk associated with transporting oil by rail continues as a topic of public discussion following the devastating loss of life and property in Lac-Mégantic, Que. One year later, Ray Montieth wonders if a similar event happening elsewhere is probable.
Transport Canada has introduced several significant amendments to the Transportation of Dangerous Goods Act and the Railway Safety Management Systems Regulations designed to improve safety standards and reduce the risk associated with the transportation of dangerous cargoes in Canada.
While these regulatory amendments are commendable, they should be seen in context as only a step in the right direction toward mitigating the potential for significant, possibly catastrophic, events involving the transportation of dangerous goods through Canadian communities. It is important to realize that, while our attention is focused on the increasing movement of oil in rail cars that are not up to the task, there is more than oil moving on our rails and roadways.
Today, there are more than 80,000 toxic substances transported for manufacturing, agriculture, and service industries across Canada and the United States. Many are toxic enough to be life-threatening for humans exposed to even limited quantities of these substances. Transport Canada reports that hazardous goods are shipped or received at more than 40,000 business sites across the country. In 2012, 398 accidents involving hazardous materials were reported to Transport Canada; this represents an increase of 15 per cent over the previous year and a 9 per cent increase over the previous five years’ average. The Canadian Transportation Emergency Centre (CANUTEC) provided assistance to first responders in 1,042 incidents and fielded 22,888 telephone inquiries in 2012.
Clearly there is more than the shipment of oil that should be of concern to the vast majority of Canadians who live on or near transportation routes. The event in Lac-Mégantic was widely reported and was, as a consequence, amplified in the social conscience. The poorly regulated movement of oil in inadequately constructed tank cars through the centre of a Canadian community was graphically and repeatedly depicted by the news media and the images and the consequent awareness of the associated risk was indelibly imprinted in Canadian consciousness. This heightened risk awareness creates an opportunity to broaden the focus on hazardous materials transport beyond the conversation around transporting oil.
Considering the considerable quantities of hazardous materials constantly in motion around us, including the increasing quantities of oil, the number of reported events is relatively small. They are easily characterized as low-probability high-impact events. But, the potential impact should not be discounted: the derailment in Lac Mégantic devastated the community.
The subsequent response of government and regulatory agencies clearly indicates that the standards of governance and oversight of the transportation of hazardous materials in Canada were not sufficient to adequately mitigate the risk inherent in transporting oil. Will that be the case with other hazardous cargoes?nRetroactive regulation is not effective pre-event mitigation.
New regulations should target mitigating the risk associated with transporting dangerous cargoes in general. Canadians, and the companies that insure them, should expect that.
Ray Monteith is a Senior Risk Consultant for Hub International. For more information on Hub’s Risk Services visit the Hub’s Crisis Management Center.
