Fri 31 Jan 2014, 17:08 GMT

World Fuel Services sued over train crash crude


Fuel company is accused of falsely identifying the crude oil it was carrying as low danger.



Montreal, Maine & Atlantic Railway Ltd's (MM&A) bankruptcy trustee is suing marine, aviation and land fuel specialist, World Fuel Services Corporation, over the role it played in carrying crude oil on the train that was involved in the deadly train derailment in Lac-Mégantic, Quebec in July last year.

Chapter 11 trustee Robert J. Keach on Thursday filed a lawsuit in a Maine bankruptcy court against World Fuel Services and several related companies, accusing the owner of the crude oil MM&A's train was carrying when it derailed last summer of falsely identifying the crude oil as low danger when it fact it was highly volatile and dangerous.

The trustee says World Fuel Services knew or should have known that the type of tank cars carrying the oil were prone to rupture upon derailment, making the railway cars "unsafe and unsuitable" for the transport of the crude oil.

The train carrying the crude oil derailed last year, killing 47 people and partially destroying the centre of Lac-Mégantic, a small Quebec town.

The tanker train had been parked at Nantes station for the night when it broke loose and sped away without a driver on Saturday, July 6. The subsequent derailment and explosion sent a fireball and black smoke into the air, forcing the evacuation of around 1,000 people, and dozens of buildings were destroyed.

In the days after the incident, World Fuel Services confirmed that crude oil sold by one of its subsidiaries was being carried by railcars involved in the deadly train derailment and that the product was destined for Irving Oil in Saint John, New Brunswick.

On August 7, 2013, MM&A filed for bankruptcy protection in both the Quebec Superior Court in Montreal (under the Companies Creditors Arrangement Act) and the United States Bankruptcy Court in Bangor, Maine (under Chapter 11).

A week later, the Canadian Transportation Agency announced it planned to revoke the MM&A's certificate of fitness effective August 20, 2013, citing inadequate liability insurance.

In September 2013, Transport Canada shut down part of the MM&A line after an inspection of six track segments found substandard rail conditions, which included a concentration of defective ties on a section near a propane storage facility. A failed October 11 inspection led Transport Canada to embargo the entire line between Lennoxville and Lac-Mégantic.

MM&A's assets were sold at auction to Railroad Acquisition Holdings (part of the Fortress Investment Group) in January 2014.

Image: Lac-Mégantic train crash.


Andre M ammonia-fuelled gas carrier. China delivers first domestically built ammonia-fuelled gas carrier  

CCS-classed vessel becomes the world's second ammonia-fuelled gas carrier, testing rules for the IMO's zero-carbon shipping transition.

Nordion Energi liquefied biogas (LBG) facility render. Storage tank installed as Gothenburg's LBG bunkering plant advances towards 2027 completion  

Nordion Energi's liquefied biogas facility at the Port of Gothenburg takes a step forward with tank installation.

Maran Myron vessel. Maran Tankers takes delivery of dual-fuel Suezmax Maran Myron  

Vessel is sixth dual-fuel tanker in eight-vessel series built by New Times Shipbuilding.

Lake Victoria truck-to-ship (TTS) bunkering operation. EPS completes first truck-to-ship LNG bunkering operation in Davisville  

Fuel delivered to the pure car and truck carrier Lake Victoria whilst at berth.

Maritime and Port Authority of Singapore logo. MPA opens applications for LNG floating storage unit licences  

Singapore invites applications for up to two LNG floating storage unit licences to bolster bunkering supply resilience.

Rasmus Frimann Nielsen and Lars Zimmermann, Everllence. Everllence's small-bore GenSet orders surpass 2,000 in 2026  

Engine maker reports strong order intake across its small-bore portfolio, citing demand for reliable, fuel-flexible auxiliary power.

MT Tulip bunker tanker. Bunker One renews MT Tulip charter, plans mass flow meter upgrade in Mauritius  

Bunker One is keeping its bunker tanker in Mauritius while adding flow metering technology to improve delivery transparency.

COP31 panel discussion. Fund for Energy Efficiency Technologies becomes first to adopt revised Singapore-Asia Taxonomy  

FEET's adoption coincides with Lloyd's Register's independent review of GCMD's methodology for quantifying fuel savings from wind-assisted propulsion systems.

Arsenio Dominguez, IMO Secretary-General. IMO chief urges states to enforce safety rules in Strait of Hormuz amid rising attacks  

Arsenio Dominguez says more than 130 attacks on commercial vessels have been verified since February, with at least 25 seafarers killed.

OOCL Wisdom ship-to-ship (STS) bunkering operation at Xiamen Port. Xiamen Port launches 'green methanol bunkering' with OOCL Wisdom  

Boxship received 1,005 tonnes of methanol, corresponding to a reduction of more than 1,600 tonnes in carbon emissions, says COSCO Shipping.