Rail transloading facility
Pipeline and Hazardous Materials Safety Administration · Nov 7, 2008 · Reference No. 08-0232
Interprets: 49 CFR § 174.304
Reggie’s quick take
A transloading company asked whether § 174.304 bars it from running a facility on a rail carrier's property, where flammable liquids are moved from rail tank cars into other packaging, such as cargo tank trucks, for the rest of the trip. The agency said no. In its view, § 174.304 covers unloading at the final destination, not transfers at a transloading facility on rail property where the material moves on to its final destination.
Written by AI (Claude) on Oct 22, 2026. Robots make mistakes and leave things out, so the letter below is what counts. Not legal advice.
This responds to your September 24, 2008 email requesting clarification of the applicability of § 174.304 of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). Specifically, you ask whether this provision rules out the operation of a transloading facility on the property of a rail carrier where lading is transloaded to other packaging (e.g., a cargo tank motor vehicle) for further transportation to its final destination.
The answer is no. It is the opinion of this Office that § 174.304 does not apply to the operation of a transloading facility as you describe. Section 174.304 prohibits the transportation of a rail tank car containing a Class 3 (flammable liquid) material unless it is originally consigned or subsequently consigned to a party meeting the conditions established in the section. This section is intended to apply to unloading operations at the facility that is the final destination for the material. The conditions established in § 174.304 are not applicable to operations of a transloading facility on the property of a rail carrier where the material is transferred to other packaging for further transportation to the final destination.
I hope this information is helpful. Please contact us if you require additional assistance.
A letter of interpretation applies the regulations to the facts the requester described. It isn’t a regulation and isn’t legal advice. The agency’s copy.