Tank Car Standards in North America
30,500G Tank Car National Steel Car’s 30,500 Gallon General Purpose (Non-Pressure) Tank Car is designed for 286,000 pound gross rail load service. This DOT-117 compliant tank car is ECP compatible and has full-head. 34,302 Gallon Tank Car. 34,302 gallon non-coiled and insulated tank car constructed to meet DOT 112J500W specifications and operate at a 286,000 lbs gross rail load for transporting anhydrous ammonia. Various options are available to meet shipper requirements.
THE RSICTC PROVIDES INFORMATION TO REGULATORS AND LEGISLATORS FOR CONSIDERATION IN THE RULEMAKING PROCESS
Tank car standards are updated after reviews of performance data conclude that new tank car standards will improve the safety of transporting hazardous materials by rail. In recent history, the industry focused on improving the performance of tank cars used to transport flammable liquids (primarily crude oil and ethanol). Standards are particularly important for regulated hazardous materials, or “HazMat’s,” that fall into two key categories: flammable liquids and toxic inhalation hazards.
Flammable Liquids Tank Car Standards
Voluntary 'Good Faith' Efforts: AAR CPC-1232
IN RESPONSE TO FLAMMABLE LIQUID UNIT TRAIN DERAILMENTS, THE ASSOCIATION OF AMERICAN RAILROADS (AAR) PROPOSED IMPROVEMENTS TO DESIGN STANDARDS FOR DOT-111 TANK CARS
In August 2011, the AAR Tank Car Committee published a new interchange standard, known as CPC-1232, to improve the crashworthiness of tank cars shipping petroleum crude oil and denatured alcohol (ethanol). The new standard required thicker steel shells for non-jacketed tanks and normalized (heat treated) tank heads and shells, head protection and top fittings protection. The requirement took effect for all cars ordered after October 1, 2011. Much of the basis for these improvements was the result of the analysis of design features made possible by the RSI/AAR Tank Car Safety Research Project. Railway Supply Institute members built approximately 55,000 tank cars to this voluntary standard, investing nearly $8 billion. While they are still technically DOT-111, they are referred to as “CPC-1232” to reflect the new industry design requirements.
Read the full text of the AAR interchange standard for CPC-1232 M-1002 Chapter 2 Revision 9/2011, that the industry voluntarily implemented in September 2011.
DOT Regulation: HM-251
RSICTC ADVOCATED FOR U.S. DOT REGULATION HM-251, WHICH REVAMPED TANK CAR STANDARDS IN 2015
Notwithstanding the industry’s voluntary adoption of the CPC-1232 standard in October 2011, three and a half years later, in May 2015 the U.S. Department of Transportation (DOT) issued the first major government modification to the DOT-111 tank car standard in years. Under HM-251, the government issued DOT-117 standard was not required for all tank cars used to transport flammable liquids. The industry believed this scope was inadequate, because shippers could not always predict the type of train in which its shipment would be operated. Railway Supply Institute and AAR proactively worked with Congress to ultimately pass the FAST Act of 2015, described below, which clarified the applicability of the HM-251 requirements. Among other important changes, it resulted in the creation of a new, DOT-117 design standard for tank cars in flammable liquids service. The RSICTC and other industry stakeholders had been calling for a change like this for more than five years.
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New Law: The FAST Act
IN DECEMBER 2015, CONGRESS PASSED THE FAST ACT, WHICH REVISED THE SCOPE OF HM-251 STANDARDS FOR TANK CARS IN FLAMMABLE LIQUIDS SERVICE
Title VII of the FAST Act extended the HM-251 design requirements on all tank cars in flammable liquids service irrespective of train composition (HHFT or HHFUT) and set specific deadlines for the phase out of legacy DOT-111 and CPC-1232 tank cars by commodity. Crude oil and ethanol were prioritized in the phase-out schedule as they are the flammable liquids most likely to be transported via unit trains. Title VII also mandated that all tank cars to be retrofitted with jackets also be equipped with ½-inch thick thermal blankets and required that the legacy DOT-111 be modified to meet specific top fittings protection requirements.
As a result of the FAST Act, car owner-lessors, shippers and the railroads have a clear and measurable understanding of the requirements for implementing new design requirements for tank cars in flammable liquid service.
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Tank Car Videos
SEE ANIMATED VIDEOS OF TANK CAR TECHNOLOGIES IN ACTION
RSICTC members spent decades researching and developing new technologies to advance tank car standards, including: tank shells, tank jackets, head shields, thermal protection systems, top fittings, bottom outlet valves and others. The following videos provide 60-second overviews of the technology that can be found on new DOT 117 standard tank cars.
TANK CAR TECHNOLOGY
HEAD SHIELD
TANK SHELL
THERMAL PROTECTION
TANK JACKET
BOTTOM OUTLET VALVE & TOP FITTING PROTECTION
Toxic Inhalation Hazards (TIH)
New Proposals for TIH
RSICTC IS WORKING WITH INDUSTRY STAKEHOLDERS TO ADVANCE STANDARDS OF TANK CARS IN TIH SERVICE
Over the last decade, there has been significant, ongoing research to develop strategies for improving railroad tank cars so they can maintain tank integrity under more severe accident conditions. Beginning in 2006 and continuing through 2009, Dow Chemical Company, Union Pacific Railroad and Union Tank Car Company assembled a joint project team to drive forward a holistic process for the development of a next generation rail tank car. This work was performed under the Next Generation Railroad Tank Car (NGRTC) Program and completed in cooperation with Federal Railroad Administration (FRA), Transport Canada and the Transportation Security Administration (TSA). The NGRTC program developed a database of both full-scale impact testing on tank cars and tank heads as well as a significant database on characterization of tank car materials and laboratory scale component tests. An additional effort in the NGRTC Program was the development and validation of detailed finite-element tank impact models and tank car steel constitutive and failure models that can be used to accurately predict the puncture resistance under different impact conditions. During this same time period, the Chlorine Institute (CI) commissioned a series of investigations to quantify and enhance the puncture resistance of tank cars carrying hazardous materials. [read more=”Read More” less=”Read Less”]
Subsequent to these initiatives, the Advanced Tank Car Collaborative Research Program (ATCCRP) was initiated to coordinate research efforts to enhance the safety and security of rail tank car shipments of toxic inhalation hazard (TIH) materials. The ATCCRP builds on the prior and ongoing research conducted by the NGRTC Program, and the Chlorine Institute tank car safety research, and the RSI-AAR Tank Car Safety Research and Test Project. The ATCCRP is a joint effort composed of the following groups: shippers of tank cars carrying toxic inhalation hazard (TIH) materials (represented by the American Chemistry Council (ACC), CI, and the Fertilizer Institute (TFI)); railroads that transport hazardous materials (represented by the Association of American Railroads (AAR)); and rail tank car builders and lessors (represented by the Railway Supply Institute (RSI)). The latter two groups constitute the RSI-AAR Tank Car Safety Research and Test Project. In addition, memoranda of cooperation were developed to formalize cooperation agreements between ATCCRP participants and the FRA, TSA and Transport Canada.
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In response to a proposed rulemaking, industry stakeholders (including the RSI) petitioned PHMSA for an interim standard based on “Probability of Release.” Read the proposal.
The Advanced Tank Car Collaborative Research Project improved the industry’s understanding of impacts and puncture behavior during derailments but did not identify any new technical solutions to improve tank car puncture resistance. Read the conclusions.
Based on the ATCCRP Research Conclusions, Industry stakeholders (including the RSI) petitioned PHMSA to make the interim standard (HM-246) a permanent standard for TIH service.
Immediately following the ATCCRP Petition for a Final TIH Specification the AAR petitioned PHMSA for a six-year phase out of the legacy TIH Fleet, including a two-year phase-out of non-normalized TIH tank cars.
Why purchase Tank Cars from Marlin F. Schmidt?
Marlin F. Schmidt is located in South Bend, and I am here to help you solidify a plan for your retirement. Would you believe that your retirement can bring you great health, a happy, peaceful life, and better income? This is my reality, and it can be your reality too. Let me explain. I want to let you in on the my retirement plan. I purchased 40 railroad tank cars. By leasing them out, I make an income of over $100,000 a year. And remember—I'm retired! You can enjoy this kind of income as well when you purchase your own tank cars for leaseback. Did you know that you can get $500 per month from the purchase of just two cars for $25,000, and unlike an annuity, you can pass this asset on to your family? How much would you have available for purchasing tank cars for leaseback? We’ve got three tiers of buyers: 25 to 45 thousand, 50 to 99 thousand, and 100 thousand dollars and up. If this sounds like the perfect opportunity—and trust me, it is!—then we can sell you a tank car that you can immediately depreciate, and then we’ll lease it out for a high annual return. I will make a way for you to enjoy your retirement with an income that you would never have thought possible! When you give us a call, you will be connected directly to me, Marlin Schmidt, so you can expect immediate attention to your inquiry.
How much were you able to increase your yearly retirement income?
My retirement income was originally $23,400, by buying and leasing used tank cars I was able to increase it all the way up to a yearly income of $113,000 a year. Work with us and you can do the same!
What is the strategy you used to increase your retirement income?
I increased my retirement income from $23,400 to $113,000 a year. I was a Series 7 Registered Representative with several Securities Broker-Dealer firms for the past 55 years; I helped many clients accumulate a million dollars or more over that time frame. I retired from the firm, sold my book of business, and started selling used tank cars part-time. It was one of the best decisions of my life. Not only is it profitable, but thoroughly enjoyable as I assist others in their quest to retire comfortably.
To date, I now own 40 tank cars with a financial commitment of $585,000. As of May 2020, I have received 25 quarterly checks amounting to a total of $202,354. My income from cars amounts to $113,000 per year. I intend to depreciate my cars over a 5-year period, making all the income from the cars tax-free. Having this much income coming from a company that has been selling and managing cars for the public and sending quarterly checks without fail for 74 years, I feel this a risk in line with my risk tolerance. Cars make up the hard asset portion of my portfolio. But, unlike gold or silver, cars earn an income. This income is high enough that it eliminates the need for a long-term care contract.
My $585,000 invested in mutual funds would allow me a secure withdrawal rate of 4% or $23,400 per year. Tank car ownership affords 4.8 times more income. As I tell my car prospects, I cannot double your money, but I can find a way to make 4 times more. Let me help you explore this unique opportunity.
Where did the idea to buy and lease tank cars come from?
The great idea from the Pebble Beach shopping paper was the opportunity to own a real live 20,000-gallon railroad tank. One of those big black tanks on wheels you see go by on the railroad at 60 miles an hour. My first job out of college was working for the owner of a rail line in Michigan. So, my interest was piqued. I called the 800 number for information and talked to their sales manager, a man of my same age, with the same financial industry background. From our conversation, I purchased my first tank car at $25,000. I depreciated the car in one year and saved $10,000 in income tax. The car paid me about $710 per quarter or $2,840 per year. Internal Revenue did not question my tax return, so I purchased a car or two each year for the next 5 years. This turned out to be such a great deal, I wanted to share it with my clients.
What do the tank cars haul?
My tank cars haul only food so it can allow for a longer car life than those that haul toxic cargo.
What is the ‘Bridge Period’?
Tank Cartier
The Bridge Period is that period between the time you retire to when you start taking Social Security and Required Minimum Distributions from IRA and or 401(k) accounts. Many advisors suggest waiting to take Social Security at age 70 to maximize their benefits and start taking your RMD when you are 72. So, if you retire at age 65, you have at least 5 years where you need to “Bridge” your income. To make that bridge you need to take funds from your savings and retirement accounts during a period where you could enjoy lower tax brackets. You may convert some of your retirement accounts to a Roth IRA, or you could create a new income.
Tank Cars Railroad Model
What are the three tiers of purchasing theused tank cars?
Tank Cars For Sale
The different tiers depending on the amount you are interested in this placement. We have the first one that is purchasing 25 to 45 thousand, tier two is purchasing 50 to 99 thousand, and tier three is purchasing 100 thousand dollars and up. Start earning your retirement income today!