Railway in Quebec Crash Loses License

By: AP Email
By: AP Email

TORONTO (AP) - Canada's transportation agency says a U.S.-based rail company whose runaway oil train caused a fire and explosion that killed 47 people in a Quebec town has lost its operating license.

The agency said Tuesday it is suspending the certificate of fitness for the Montreal, Maine & Atlantic Railway.

The agency says it is not satisfied that the company has demonstrated its third-party liability insurance is adequate for ongoing operations.

The parked train, with 72 tankers full of crude oil, was unattended when it began rolling and derailed in the center of Lac-Mégantic on July 6. Several tankers exploded, destroying 40 buildings.

The disaster raised questions about the growing use of rail transport for oil.

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