The Department of Transportation's new rules will require the replacement of the older, least safe tank cars currently in use within three years, according to the New York Times. The old cars need to be replaced by new cars with thicker shells, higher safety shields, and better fire protection.
Newer tank cars made since 2011 have more safety features have to be retrofitted or replaced by 2020.
The new rules follow a series of train derailments, oil spills, and explosions that involved oil trains in the U.S., and took more than two years to put into place.
Trinity Industries stock rose on the news as it manufactures tank cars.
TheStreet Ratings team rates TRINITY INDUSTRIES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRINITY INDUSTRIES (TRN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."