[prettyquote]“Look for the UTLX logo on tank cars when you watch trains roll by. As a Berkshire shareholder, you own the cars with that insignia. When you spot a UTLX car, puff out your chest a bit…” – Berkshire Hathaway’s 2012 Annual Report[/prettyquote]
In our previous installment, we explored how unsafe DOT-111s, the Ford Pinto of rail cars, make up the vast majority of oil-filled tank cars now riding the rails in North America. With DOT-111s, there is no margin for error. A serious derailment will almost always lead to oil spills or explosions. But if they are so clearly dangerous, why are these tank cars still on the rails?
The reason, in short, is because the railroad and rail car industries have opposed new safety regulations. (The oil and ethanol industries have abetted their cause.) Citing supposedly onerous costs for retrofitting unsafe tank cars, as well as the related infrastructure to load and unload the products they carry, these companies have successfully argued against rules that would require them to make the upgrades that could prevent the explosions.
Behind many of the industry groups opposing hauling Bakken crude in only safe tank cars is a single figure: Warren Buffett.

