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Authorities in Nebraska don’t expect any ongoing problems after an explosion Thursday of a railroad container containing an acid used to make explosives. The explosion occurred at the largest rail yard in the world in North Platte, Nebraska. Luckily the chemical largely burned down and any remains were kept on site. According to the Associated Press, air and soil tests in the region have never shown dangerous levels.
No one was injured in the explosion at the massive Union Pacific (UNP) rail yard in North Platte, and no structures were damaged. A preventive evacuation of a mile-long area around the fire involved only a few farms for several hours, as the fire occurred on the west side of the railway property, near the edge of town. Reports indicated that the fire did not spread beyond the shipping container on top of the container that exploded to the rest of the parked train. A team from the Nebraska Emergency Management Agency that happened to pass through the area on their way to a training session in Western Nebraska was reportedly able to quickly offer their expertise.
The rail industry is on high alert following the Norfolk Southern disaster.NYSE:NSC) derailment earlier this year in eastern Ohio. That crash sparked national attention and a major focus within the industry on rail safety. A massive cleanup effort is still underway in East Palestine, Ohio.
Notably, the head of the Federal Railroad Administration recently indicated that inspectors during an inspection this summer found an alarming number of defects in the freight cars and locomotives in use at the North Platte railroad yard. But there was no immediate indication that Thursday’s explosion was related to these flaws. Trinity Industries (TRN) traded 1.4% lower on Friday, while FreightCar America (RAIL) rose 1.9%.
Rails watch: Norfolk Southern (NSC) is down 17.2% this year. Canadian National Railway (NYSE: CNI) is down 2.2% and CSX Corporation (CSX) is down 0.4%. Meanwhile, Canadian Pacific (CNP) is up 7.1% and Union Pacific Corporation (UNP) is up 3.0%. CSX and UNP have the highest Seeking Alpha Quant Ratings in the industry. Greenbrier (GBX) has the highest percentage of short interest in the industry.