Ontario Northland eyes thousands of rail tankers that need upgrades

Ontario Northland's refurbishment division, based in North Bay, is preparing for a boost in business as companies scramble to meet the new requirements for rail tanker cars that carry flammable materials like crude oil.

"There's thousands of railcars that will need to have retrofits and we are hoping to be part of that industry and win that business," said vice-president of rail John Thib.

In his 39 years in the rail industry, Thib said he has never seen a wave of repair work like what is coming to retrofit old tanker cars.

"There hasn't been as significant a change as we are seeing right now," he said.

After the second fiery train derailment near Gogama in March,the chair of the Transportation Safety Board called for stronger railcars to carry flammable liquids like crude oil.

• Gogama derailment: TSB wants reinforced tank cars sooner
• Gogama derailment: Stronger tanker cars not the only answer, expert says
• CN track in northern Ontario received upgrades: Transport Canada
• CNGogamaderailment clean up shifts to river bottom

In May, the government announced the entire fleet of tanker cars that operate in Canada and the U.S. need to be retrofitted within the decade.

The improved cars will have better valves, a thicker shell, shielding at the front and rear to prevent puncturesand a thermal jacket to help protect the volatile contents inside from fire.

Thibprovided CBC Reporter Megan Thomas with a tour of the North Bay repair shop and discussed how oil tanker car upgrades could factor into the business:

The need fortens of thousands of railcars to be upgraded comes at a good time for Ontario Northland.

The company used to focus largelyon repairing and refurbishingequipment for its own railway,or transit cars for southern Ontario, but ithas been branching out as it seeks to reinvent the crown corporation.

However, landing the work is not a given.

"Small businesses that want to do railcar refurbishment start almost weekly, so it is a highly competitive industry we are going to enter into,"Thib said.

Nearly 200 people work in Ontario Northland's refurbishment division in North Bay

The companyis working on getting certifications that will be needed to work on the tanker cars as it awaits more details on the new requirements, expected out this fall, Thib said.