ReportWire

Tag: freight transportation

  • Could the June CPI report change the Fed’s rate trajectory? | CNN Business

    Could the June CPI report change the Fed’s rate trajectory? | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.



    CNN
     — 

    After the June jobs report showed a cooling but still-hot picture of the labor market, investors are looking to a key inflation report due Wednesday for more clues on the economy’s health. But some investors say the results will likely do little to sway the Federal Reserve’s interest rate trajectory.

    What happened: The labor market added just 209,000 jobs in June, below economists’ expectations for a net gain of 225,000 jobs. That’s the smallest monthly gain since a decline in December 2020.

    But beneath the surface, the jobs market remains hot. Average hourly earnings growth remained steady at 0.4% from May and also unchanged at 4.4% year-over-year, suggesting that wage inflation remains sticky. The unemployment rate also fell to 3.6% from 3.7%, though jobless rates for Black and Hispanic workers rose sharply.

    There is “nothing in the release that would change our expectation that the Fed has more work to do,” said Joseph Davis, global chief economist at Vanguard.

    Accordingly, traders continued to overwhelmingly expect a quarter-point rate hike at the Fed’s July meeting. Traders saw a roughly 92% chance of such a decision as of the market close on Friday, according to the CME FedWatch Tool.

    What’s next: The June Consumer Price Index report, a key inflation reading, is due on Wednesday.

    Economists expect a 3.1% increase in consumer prices for the year ended in June, which would be a cooldown from a 4% annual increase in May, according to Refinitiv.

    Recent data has suggested that inflation is coming down, though it remains above the Fed’s 2% target. The Personal Consumption Expenditures price index, the Fed’s favorite inflation gauge, rose 3.8% for the 12 months ended in May. That’s down from the revised 4.3% annual rise seen in April.

    But it’s unlikely that the June CPI report will change the Fed’s interest rate trajectory, barring a huge upside or downside surprise, especially considering that Fed officials in recent weeks have been vocal that more rate hikes are likely coming, said James Ragan, director of wealth management research at DA Davidson.

    Still, that doesn’t mean investors should expect infinite rate hikes from the Fed.

    “We continue to expect that [the] Fed will soon reach its terminal rate, bringing it closer toward the end of its most aggressive tightening campaign in generations,” said Candice Tse, global head of strategic advisory solutions at Goldman Sachs Asset Management.

    The Producer Price Index report for June is due on Thursday.

    UPS and the Teamsters union are in contract negotiations. Without a deal, 340,000 Teamsters could go on strike on August 1.

    Such an event could be damaging to the US economy, reports my colleague Chris Isidore.

    UPS carries 6% of the country’s gross domestic product in its trucks. The company carried an average of 20.8 million US packages a day through last year, and that number is down only slightly this year.

    In other words, the company’s services are critical to keeping the gears moving seamlessly in supply chains that saw massive snarls during the height of the Covid pandemic. A strike could potentially bring back the problems that were so prominent just a couple years ago, including shipping delays and higher prices.

    The Biden administration is keeping an eye on negotiations between both parties in “recognition of the role UPS plays in our economy and of the important work that UPS workers did through the pandemic and continue to do today,” acting labor secretary Julie Su told CNN on Friday.

    But the company and union broke off last week, with both sides claiming the other walked away from the bargaining table.

    Read more here.

    Monday: Consumer credit for May and NY Federal Reserve’s Survey of Consumer Expectations for June.

    Tuesday: NFIB small business optimism survey for June.

    Wednesday: Consumer Price Index report and housing starts for June.

    Thursday: Producer Price Index report for June.

    Friday: University of Michigan consumer sentiment and inflation expectations for July.

    Source link

  • US Postal Service releases national dog bite rankings | CNN

    US Postal Service releases national dog bite rankings | CNN



    CNN
     — 

    California and Texas ranked highest on the United States Postal Service’s annual list of states with the most dog bites against its employees, the USPS announced.

    The report calls attention to the aggressive dog behavior mail carriers often face as the USPS kicks off National Dog Bite Awareness Week.

    In 2022, California had the highest number of dog bites with 675. Texas and New York were not far behind with 404 and 321 bites, respectively, the Postal Service reported.

    “When our mail carriers are bitten, it is usually a ‘good dog’ that had not previously behaved in a menacing way,” USPS Occupational Safety and Health Senior Director Linda DeCarlo said in a news release.

    Houston, Los Angeles and Dallas ranked highest among US cities with the most dog attacks against USPS workers last year, according to the USPS.

    More than 5,300 USPS employees were attacked by dogs during mail deliveries last year, according to the Postal Service.

    The annual public service awareness campaign, accompanied by the hashtag #dogbiteawareness, runs through next week.

    “When letter carriers deliver mail in our communities, dogs that are not secured or leashed can become a nemesis and unpredictable and attack,” Leeann Theriault, USPS employee safety and health awareness manager, said in the release.

    The USPS trains its mail carriers not to startle dogs, to avoid petting or feeding them and to place something between themselves and the animal – like their mail satchel – if a dog does attack, the postal said in a news release.

    Since most people know the general time their mail arrives each day, the USPS advised keeping dogs secure before Postal Service employees stop by.

    Other advice for dog owners, according to the USPS: Place pets on a leash, keep them in the house or behind a fence and make sure they’re away from the door.

    The Postal Service also advises parents to not allow children to take mail directly from mail carriers, as the dog may view it as a threat to the child’s safety.

    Source link

  • Inferno tears through Manila’s historic Central Post Office | CNN

    Inferno tears through Manila’s historic Central Post Office | CNN


    Hong Kong
    CNN
     — 

    A massive fire broke out at the historic Manila Central Post Office in the Philippine capital late Sunday, with teams of fire fighters battling for more than seven hours through the night before it was finally brought under control.

    The fire started around 11:45 p.m. local time and the situation was raised to the highest fire alarm level just before 6 a.m on Monday morning, according to the Bureau of Fire Protection.

    The blaze was brought under control around 7 a.m., leaving behind a charred roof and upper levels of the structure.

    Pictures and footage showed flames and thick smoke billowing from the windows of the neoclassical building, known for its grand entry lined with ornate columns.

    The building sits within the historic old Manila town near other tourist landmarks along the Pasig River that flows through the capital.

    The post office was first built in 1926 and designed by Filipino architects Juan M. Arellano and Tomás Mapúa. It was severely damaged during World War II but rebuilt in 1946, preserving most of its original edifice.

    It was declared an “important cultural property” in 2018, meaning the country’s oldest post office was of “exceptional cultural, artistic, and historical significance to the Philippines,” according to CNN affiliate CNN Philippines.

    The building currently houses the Philippine Postal Corporation, the government-run postal service that handles everything from regular mail, parcels and special stamp collections.

    Mark Laurente, chief of staff of the postmaster general, said that national identification cards were spared from the fire as those were stored in another city, CNN Philippines reported Monday morning.

    Source link

  • ‘You can’t sleep here:’ On board a perilous freight train with families hoping to reach the US | CNN

    ‘You can’t sleep here:’ On board a perilous freight train with families hoping to reach the US | CNN


    Aboard a train heading to Ciudad Juarez, Mexico
    CNN
     — 

    On top of the rumbling freight train, the young man says he has been attacked and robbed. There is no shade from the burning sun in the day, nowhere to keep warm in the perishing cold of the night. But still, he says, this brutal journey is worth it.

    Roberto, 23, told CNN he was escaping from Honduras, where the US State Department says violent gang activity is rife and police are ineffective.

    “Due to crime in my country, we can’t work, we can’t do anything,” he said.

    Roberto is one of the tens of thousands of migrants who have been making the perilous journey to the US-Mexico border ahead of Thursday night’s expiration of the Covid-era immigration rule known as Title 42.

    Roberto fled the country with his two young children, he said, becoming emotional as he talked about them. “I brought them here to Mexico but they got sick, they almost died,” he said. “I had to send them back to Honduras.”

    Roberto was still sick himself, wearing a mask to protect others from his coughs. He said this was the seventh train he had ridden on top of in the past 12 days as he, his father and his sister tried to find a new life. His sister is 15, he said. In other circumstances, she would be celebrating her quinceañera at home with friends and family. But home, for now, was an open train car heading north.

    The truck contains metal construction beams, covered in plastic. There are a couple dozen people in this freight car alone, with dozens more riding on top of and within the other cars. The riders flatten cardboard boxes and use dirty clothing to try to give themselves some padding against the hard, uneven surface. But this is still the preferred kind of train car, as it at least offers some protection from falling off.

    A traveler rests on the cargo. There is no shelter from the sun, wind and nighttime cold, but these open trucks are preferred as they offer some protection from falling off.

    “You can’t sleep here,” Roberto said as he sat, buffeted by the wind, seemingly exhausted but determined as the train neared Ciudad Juarez, the town across the international border from El Paso.

    He, his sister and his father, plan to try to cross into the United States this same day. They believe they have no reason not to.

    The lifting of the US’s Title 42 pandemic-era immigration restriction on Thursday has raised concerns that more people will try to enter the United States. Title 42 allowed officials to quickly process people arriving and send many back across the border. The reinstatement of old rules may mean heavier legal penalties, but it is expected to be a longer process.

    But the people on the freight train are not talking about US rule changes. Those we spoke with had the singular goal of escaping their countries and starting again in the US, whatever process they had to follow.

    Crossing the border is as far as Felipe and Marcela have thought. The couple said they left Colombia, ready to sacrifice themselves for the five children they left behind.

    “We don’t know for sure,” Felipe replied when asked where they would go. “We need to get there first, that’s the priority. Once there, we can see what to do, because we don’t have friends, family, anyone who can take us in.”

    Felipe and Marcela have nowhere to go and no one to stay with in the US but they are hopeful they will be able to help the five children they had to leave in Colombia.

    They said they suffered in the heat and the cold, and were hungry and thirsty. But their worst fear was the threat of violence, especially to women.

    “The treatment of women is the worst and also dangerous,” Felipe said. “People get on the train, to look for women.” Marcela added: “Dangerous meaning rape, sometimes people get in looking for that.”

    Wind pummels the people in the rail car. Many, like Roberto, are sick and coughing. As the train passed what looked like an incinerator, there was the smell of burning trash and a massive plume of smoke. At other times, the smell of sewage is overwhelming.

    Travelers come from many different countries. We even met two from China.

    For some of them, this is not their first attempt to get into the US.

    Omar Zambrano said he left Venezuela six months ago to escape the crime and violence there, coupled with the economic crisis. “Living in Venezuela is chaotic. If you have breakfast, you don’t have enough money for lunch,” said Zambrano, a chef who said he would try any kind of work in the United States.

    He has the address of a friend in Baltimore along with a printout in Spanish of all the circumstances under which he would be allowed to stay in the US.

    He said he has tried and been sent back before. But he will try to cross the border again. “They ignore you when you’re trying to do it legally,” he said. “But let’s go for the legal way first to see what happens.”

    After clambering down from the final train stop, Zambrano picked up his small bookbag, containing all he has on the journey and prepares to head to the border crossing, walking or perhaps on a truck.

    “We are going to turn ourselves in, in the name of God,” he said, somehow wearing a smile under his sunglasses. “Faith moves mountains and you must not lose it.”

    Once the train stops, people still have 25 miles or so to make it through Ciudad Juarez and the US border leading to El Paso, Texas.

    Source link

  • High speed trains are racing across the world. But not in America | CNN

    High speed trains are racing across the world. But not in America | CNN



    CNN
     — 

    High speed trains have proved their worth across the world over the past 50 years.

    It’s not just in reducing journey times, but more importantly, it’s in driving economic growth, creating jobs and bringing communities closer together. China, Japan and Europe lead the way.

    So why doesn’t the United States have a high-speed rail network like those?

    For the richest and most economically successful nation on the planet, with an increasingly urbanized population of more than 300 million, it’s a position that is becoming more difficult to justify.

    Although Japan started the trend with its Shinkansen “Bullet Trains” in 1964, it was the advent of France’s TGV in the early 1980s that really kick-started a global high-speed train revolution that continues to gather pace.

    But it’s a revolution that has so far bypassed the United States. Americans are still almost entirely reliant on congested highways or the headache-inducing stress of an airport and airline network prone to meltdowns.

    China has built around 26,000 miles (42,000 kilometers) of dedicated high-speed railways since 2008 and plans to top 43,000 miles (70,000 kilometers) by 2035.

    Meanwhile, the United States has just 375 route-miles of track cleared for operation at more than 100 mph.

    “Many Americans have no concept of high-speed rail and fail to see its value. They are hopelessly stuck with a highway and airline mindset,” says William C. Vantuono, editor-in-chief of Railway Age, North America’s oldest railroad industry publication.

    Cars and airliners have dominated long-distance travel in the United States since the 1950s, rapidly usurping a network of luxurious passenger trains with evocative names such as “The Empire Builder,” “Super Chief” and “Silver Comet.”

    Deserted by Hollywood movie stars and business travelers, famous railroads such as the New York Central were largely bankrupt by the early 1970s, handing over their loss-making trains to Amtrak, the national passenger train operator founded in 1971.

    In the decades since that traumatic retrenchment, US freight railroads have largely flourished. Passenger rail seems to have been a very low priority for US lawmakers.

    Powerful airline, oil and auto industry lobbies in Washington have spent millions maintaining that superiority, but their position is weakening in the face of environmental concerns and worsening congestion.

    US President Joe Biden’s $1.2 trillion infrastructure bill includes an unprecedented $170 billion for improving railroads.

    Some of this will be invested in repairing Amtrak’s crumbling Northeast Corridor (NEC) linking Boston, New York and Washington.

    There are also big plans to bring passenger trains back to many more cities across the nation – providing fast, sustainable travel to cities and regions that have not seen a passenger train for decades.

    Add to this the success of the privately funded Brightline operation in Florida, which has been given the green light to build a $10 billion high-speed rail link between Los Angeles and Las Vegas by 2027, plus schemes in California, Texas and the proposed Cascadia route linking Portland, Oregon, with Seattle and Vancouver, and the United States at last appears to be on the cusp of a passenger rail revolution.

    Amtrak plans to introduce its new generation Avelia Liberty trains to replace the Acelas, pictured, on the NEC later this year.

    “Every president since Ronald Reagan has talked about the pressing need to improve infrastructure across the USA, but they’ve always had other, bigger priorities to deal with,” says Scott Sherin, chief commercial officer of train builder Alstom’s US division.

    “But now there’s a huge impetus to get things moving – it’s a time of optimism. If we build it, they will come. As an industry, we’re maturing, and we’re ready to take the next step. It’s time to focus on passenger rail.”

    Sherin points out that other public services such as highways and airports are “massively subsidized,” so there shouldn’t be an issue with doing the same for rail.

    “We need to do a better job of articulating the benefits of high-speed rail – high-quality jobs, economic stimulus, better connectivity than airlines – and that will help us to build bipartisan support,” he adds. “High-speed rail is not the solution for everything, but it has its place.”

    Only Amtrak’s Northeast Corridor has trains that can travel at speeds approaching those of the 300 kilometers per hour (186 mph) TGV and Shinkansen.

    Even here, Amtrak Acela trains currently max out at 150 mph – and only in short bursts. Maximum speeds elsewhere are closer to 100 mph on congested tracks shared with commuter and freight trains.

    This year, Amtrak plans to introduce its new generation Avelia Liberty trains to replace the life-expired Acelas on the NEC.

    Capable of reaching 220 mph (although they’ll be limited to 160 mph on the NEC), the trains will bring Alstom’s latest high-speed rail technology to North America.

    The locomotives at each end – known as power cars – are close relatives of the next generation TGV-M trains, scheduled to debut in France in 2024.

    Sitting between the power cars are the passenger vehicles, which use Alstom’s Tiltronix technology to run faster through curves by tilting their bodies, much like a MotoGP rider does. And it’s not just travelers who will benefit.

    “When Amtrak awarded the contract to Alstom in 2015 to 2016, the company had around 200 employees in Hornell,” says Shawn D. Hogan, former mayor of the city of Hornell in New York state.

    “That figure is now nearer 900, with hiring continuing at a fast pace. I calculate that there has been a total public/private investment of more than $269 million in our city since 2016, including a new hotel, a state-of-the-art hospital and housing developments.

    “It is a transformative economic development project that is basically unheard of in rural America and if it can happen here, it can happen throughout the United States.”

    Alstom has spent almost $600 million on building a US supply chain for its high-speed trains – more than 80% of the train is made in the United States, with 170 suppliers across 27 states.

    “High-speed rail is already here. Avelia Liberty was designed jointly with our European colleagues, so we have what we need for ‘TGV-USA’,” adds Sherin.

    “It’s all proven tech from existing trains. We’re ready to go when the infrastructure arrives.”

    And those new lines could arrive sooner than you might think.

    In March, Brightline confirmed plans to begin construction on a 218-mile (351-kilometer) high-speed line between Rancho Cucamonga, near Los Angeles, and Las Vegas, carving a path through the San Bernardino Mountains and across the desert, following the Interstate 15 corridor.

    The 200 mph line will slash times to little more than one hour – a massive advantage over the four-hour average by car or five to seven hours by bus – when it opens in 2027.

    Mike Reininger, CEO of Brightline Holdings, says: “As the most shovel-ready high-speed rail project in the United States, we are one step closer to leveling the playing field against transit and infrastructure projects around the world, and we are proud to be using America’s most skilled workers to get there.”

    Brightline West expects to inject around $10 billion worth of benefits into the region’s economy, creating about 35,000 construction jobs, as well as 1,000 permanent jobs in maintenance, operations and customer service in Southern California and Nevada.

    It will also mark the return of passenger trains to Las Vegas after a 30-year hiatus – Amtrak canceled its “Desert Wind” route in 1997.

    Brightline hopes to attract around 12 million of the 50 million one-way trips taken annually between Las Vegas and LA, 85% of which are taken by bus or car.

    Contruction is underway on California High Speed Rail (CHSR,) a high-speed system between Los Angeles and San Francisco.

    Meanwhile, construction is progressing on another high-speed line through the San Joaquin Valley.

    Set to open around 2030, California High Speed Rail (CHSR) will run from Merced to Bakersfield (171 miles) at speeds of up to 220 mph.

    Coupled with proposed upgrades to commuter rail lines at either end, this project could eventually allow high-speed trains to run the 350 miles (560 kilometers) between Los Angeles to San Francisco metropolitan areas in just two hours and 40 minutes.

    CHSR has been on the table as far back as 1996, but its implementation has been controversial.

    Disagreements over the route, management issues, delays in land acquisition and construction, cost over-runs and inadequate funding for completing the entire system have plagued the project – despite the economic benefits it will deliver as well as reducing pollution and congestion. Around 10,000 people are already employed on the project.

    Costing $63 billion to $98 billion, depending on the final extent of the scheme, CHSR is to connect six of the 10 largest cities in the state and provide the same capacity as 4,200 miles of new highway lanes, 91 additional airport gates and two new airport runways costing between $122 billion and $199 billion.

    With California’s population expected to grow to more than 45 million by 2050, high-speed rail offers the best value solution to keep the state from grinding to a smoggy halt.

    Brightline West and CHSR offer templates for the future expansion of high-speed rail in North America.

    By focusing on pairs of cities or regions that are too close for air travel and too far apart for car drivers, transportation planners can predict which corridors offer the greatest potential.

    “It’s logical that the US hasn’t yet developed a nationwide high-speed network,” says Sherin. “For decades, traveling by car wasn’t a hardship, but as highway congestion gets worse, we’ve reached a stage where we should start looking more seriously at the alternatives.

    “The magic numbers are centers of population with around three million people that are 200 to 500 miles apart, giving a trip time of less than three hours – preferably two hours.

    “Where those conditions apply in Europe and Asia, high-speed rail reduces air’s share of the market from 100% to near zero. The model would work just as well in the USA as it does globally.”

    French high-speed train the TGV Duplex, built in the 1990s, has a maximum speed of 186 miles per hour.

    Sherin points to the success of the original generation of Acela trains as evidence of this.

    “When the first generation Acela trains started running between New York City and Washington in 2000, Amtrak attracted so many travelers that the airlines stopped running their frequent ‘shuttles’ between the two cities,” he adds.

    However, industry observer Vantuono is more pessimistic.

    “A US high-speed rail network is a pipe dream,” he says. “A lack of political support and federal financial support combined with the kind of fierce landowner opposition that CHSR has faced in California means that the challenges for new high-speed projects are enormous.”

    According to the International Energy Agency (IEA), urban and high-speed rail hold “major promise to unlock substantial benefits” in reducing global transport emissions.

    Dr. Fatih Birol, the IEA’s executive director, argues that rail transport is “often neglected” in public debates about future transport systems – and this is especially true in North America.

    “Despite the advent of cars and airplanes, rail of all types has continued to evolve and thrive,” adds Birol.

    Globally, around three-quarters of rail passenger movements are made on electric-powered vehicles, putting the mode in a unique position to take advantage of the rise in renewable energy over the coming decades.

    Here, too, the United States lags far behind the rest of the world, with electrification almost unheard of away from the NEC.

    Rail networks in South Korea, Japan, Europe, China and Russia are more than 60% electrified, according to IEA figures, the highest share of track electrification being South Korea at around 85%.

    In North America, on the other hand, less than 5% of rail routes are electrified.

    The enormous size of the United States and its widely dispersed population mitigates against the creation of a single, unified network of the type being built in China and proposed for Europe.

    Air travel is likely to remain the preferred option for transcontinental journeys that can be more than 3,000 miles (around 4,828 kilometers).

    But there are many shorter inter-city travel corridors where high-speed rail, or a combination of new infrastructure and upgraded railroad tracks or tilting trains, could eventually provide an unbeatable alternative to air travel and highways.

    Source link

  • Supreme Court seems sympathetic to postal worker who didn’t work Sundays in dispute over religious accommodations | CNN Politics

    Supreme Court seems sympathetic to postal worker who didn’t work Sundays in dispute over religious accommodations | CNN Politics



    CNN
     — 

    The Supreme Court seemed to side with a former mail carrier, an evangelical Christian, who says the US Postal Service failed to accommodate his request to not work on Sundays.

    A lower court had ruled against the worker, Gerald Groff, holding that his request would cause an “undue burden” on the USPS and lead to low morale at the workplace when other employees had to pick up his shifts.

    But during oral arguments on Tuesday, there appeared to be consensus, after almost two hours of oral arguments, that the appeals court had been too quick to rule against Groff.

    There seemed to be, as Justice Elena Kagan put it, some level of “kumbaya-ing” between the justices on the bench at times.

    But as justices sought to land on a test that lower courts could use to clarify how far employers must go to accommodate their employees’ religious beliefs, differences arose when a lawyer for Groff suggested that the court overturn decades-old precedent. Conservative Justice Samuel Alito seemed open to the prospect.

    Critically, however, Justice Amy Coney Barrett and Brett Kavanaugh were sympathetic to arguments made by the Postal Service that granting Groff’s request might cause morale to plummet among the other employees. Kavanaugh noted that “morale” among employers is critical to the success of any business. And several justices nodded to the financial difficulties the USPS has faced over the years.

    Groff, who lives in Pennsylvania, served in 2012 as a rural carrier associate at the United States Postal Service, a position that provides coverage for absent career employees who have earned the ability to take off weekends. Rural carrier associates are told they need flexibility.

    In 2013, Groff’s life changed when the USPS contracted with Amazon to deliver packages on Sundays. Groff’s Christian religious beliefs bar him from working on Sundays.

    The post office contemplated some accommodations to Groff such as offering to adjust his schedule so he could come to work after religious services, or telling him he should see if other workers could pick up his shifts. At some point, the postmaster himself did the deliveries because it was difficult to find employees willing to work on Sunday. Finally, the USPS suggested Groff choose a different day to observe the Sabbath.

    The atmosphere with his co-workers was tense and Groff said he faced progressive discipline. In response, he filed complaints with the Equal Employment Opportunity Commission, which is charged with enforcing federal laws that make it illegal to discriminate against an employee because of religion.

    Groff ultimately left in 2019. In a resignation letter, he said he had been unable to find an “accommodating employment atmosphere with the USPS that would honor his religious beliefs.”

    Groff sued arguing that the USPS violated Title VII – a federal law that makes it unlawful to discriminate against an employee based on his religion. To make a claim under the law, an employee must show that he holds a sincere religious belief that conflicts with a job requirement, he must inform his employer and has to have been disciplined for failing to comply.

    Under the law, the burden then shifts to the employer. The employer must show that they made a good faith effort to “reasonably accommodate” the employee’s belief or demonstrate that such an accommodation would cause an “undue hardship” upon the employer.

    District Judge Jeffrey Schmehl, an appointee of former President Barack Obama, ruled against Groff, holding that that his request to not work on Sundays would cause an “undue hardship” for the USPS.

    The 3rd US Circuit Court of Appeals affirmed the ruling in a 2-1 opinion.

    “Exempting Groff from working on Sundays caused more than a de minimis cost on USPS because it actually imposed on his coworkers, disrupted the workplace and workflow, and diminished employee morale,” the 3rd Circuit wrote in its opinion last year.

    “The accommodation Groff sought (exemption from Sunday work)” the court added, “would cause an undue hardship on USPS.”

    A dissenting judge, Thomas Hardiman, offered a road map for justices seeking to rule in favor of Groff. The main thrust of his dissent was that the law requires the USPS to show how the proposed accommodation would harm “business” – not Groff’s coworkers.

    “Neither snow nor rain nor heat nor gloom of night stayed Gerald Groff from the completion of his appointed rounds,” wrote Hardiman, a George W. Bush nominee who was on a shortlist for the Supreme Court nomination that went to Justice Neil Gorsuch in 2017. “But his sincerely held religious belief precluded him from working on Sundays.”

    Groff’s lawyer, Aaron Streett, told the high court that the USPS could have done more and was wrong to claim that “respecting Groff’s belief was too onerous.” He urged the justices to cut back or invalidate precedent and allow an accommodation that would allow the worker to “serve both his employer and his God.”

    “Sunday’s a day where we get together and almost taste heaven,” Groff told The New York Times recently. “We come together as believers. We celebrate who we are, together. We worship God. And so to be asked to deliver Amazon parcels and give all that up, it’s just really kind of sad.”

    The Biden administration has urged the high court to simply clarify the law to make clear that an employer is not required to accommodate an employee’s Sabbath observance by “operating shorthanded or regularly paying overtime to secure replacement workers.”

    Solicitor General Elizabeth Prelogar acknowledged, however, that employer could still be required to bear other costs such as administrative expenses associated with rearranging schedules.

    This story has been updated with additional details.

    Source link

  • Family of victim and survivors of Indianapolis FedEx mass shooting file lawsuit against gun magazine manufacturer and distributors | CNN

    Family of victim and survivors of Indianapolis FedEx mass shooting file lawsuit against gun magazine manufacturer and distributors | CNN



    CNN
     — 

    The family of a victim and several survivors of a mass shooting at a FedEx facility in Indianapolis filed a lawsuit against companies involved in the manufacturing, marketing and sale of the high capacity magazine used by the gunman who killed 8 people and injured several others in 2021.

    The federal lawsuit, filed in US District Court in the Western District of New York, targets a gun distributor and magazine manufacturers, and alleges the companies recklessly marketed and sold their products to impulsive young men at risk of violence.

    The gunman in the April 15, 2021, attack, Brandon Hole, 19, was previously employed at the facility and opened fire on his former coworkers before killing himself. About a year before the attack, Hole browsed White supremacist websites, CNN previously reported. His mother contacted the police in March 2020 because she was worried about his behavior and threatening statements he’d made after he purchased a gun, according to police.

    The lawsuit was filed Thursday on behalf of the estate of Jaswinder Singh, who was killed during the shooting, Harpreet Singh, who was injured, and his wife Dilpreet Kaur, and Lakhwinder Kaur, who was also injured in the attack. They are each seeking at least $75,000 from the lawsuit and are asking for a jury trial, according to the complaint.

    The lawsuit targets American Tactical Inc., an American firearms importer, manufacturer and seller, along with the company’s president and the director of marketing and purchasing. Schmeisser GmbH, a German firearms manufacturer; and 365 Plus d.o.o., a Slovenian company that designs, produces and distributes firearms accessories and other tactical equipment are also listed as defendants.

    The three companies were involved in the manufacturing, marketing and sale of the 60-round high-capacity magazines that “have been used repeatedly to slaughter and terrorize Americans in horrific mass shootings since long before April 2021,” the lawsuit says.

    The lawsuit claims these companies made these magazines easily accessible to Hole and targeted their marketing campaign to “a consumer base filled with impulsive young men who feel they need to harm others in order to prove their strength and who have militaristic delusions of fighting in a war or a video game.”

    “This case is about what happens when companies recklessly design, market, sell, and distribute these accessories to the general public—indiscriminately—and without adherence to reasonable safeguards,” the lawsuit reads.

    American Tactical declined to comment to CNN about the lawsuit. Lawyers for the other defendants did not immediately respond to requests.

    Schmeisser GmbH manufactured the magazine used in the mass shooting and distributed it in the US through American Tactical and 365 Plus, the lawsuit claims.

    “The high capacity of the magazine emboldened the shooter to commit the attack, knowing he had the ability to fire 60 rounds continuously without the need to pause to reload,” the lawsuit says.

    The complaint says American Tactical promoted marketing videos that show men dressed in tactical vests similar to what Hole wore during the 2021 attack as they fire “a constant stream of bullets at unseen targets in various offensive, tactical operations.”

    The lawsuit alleges the firearm companies placed an “unreasonably dangerous product on the market without sufficient safeguards to prevent its foreseeable unlawful use.”

    The Brady Center to Prevent Gun Violence, the gun control advocacy organization that employs two of several lawyers representing the plaintiffs, wrote in a statement to CNN the nonprofit is “trying to achieve justice for these survivors and their family, and hold American Tactical, Inc. accountable for their irresponsible marketing and sales practices.”

    “If you decide to sell such highly lethal products to the general public anyway, you need to be very careful about who you’re selling them to. As we allege in our complaint, defendants here have instead taken a hard turn and specifically marketed their highly lethal products to a dangerous class of individuals,” said Philip Bangle, the Brady Center’s senior litigation council.

    Source link

  • Train derails and causes forest fire in Rockwood, Maine but officials say no hazardous materials involved | CNN

    Train derails and causes forest fire in Rockwood, Maine but officials say no hazardous materials involved | CNN



    CNN
     — 

    The train cars that derailed near a village in central Maine Saturday and caused a large fire were not carrying hazardous materials, officials said, adding there was no threat to public safety.

    Officials say the derailed fright train cars were carrying lumber and wiring. Other carts were carrying hazardous materials but were unaffected by the derailment and the fire, a spokesperson for the Canadian Pacific Kansas City rail network said. Officials said the derailment likely was caused by a washout of ice and debris on the tracks.

    The Rockwood Fire and Rescue Department said the train derailed north of Rockwood, a village in Somerset County that borders Moosehead Lake – the largest body of fresh water in the state.

    Officials at the scene assessed the derailment and said the “hazardous materials are not at risk of leaking and are not at risk of catching fire,” Maine Department of Agriculture, Conservation and Forestry spokesperson Jim Britt said in a statement.

    Three railroad employees suffered non-life-threatening injuries in the derailment and are being treated at a nearby hospital, Britt added.

    The derailment happened around 8:30 a.m. ET when the train came across a track washout in a rural wooded area, the rail network’s spokesperson C. Doniele Carlson said in a statement.

    It wasn’t immediately clear which freight train carrier was operating the train Saturday.

    “An early assessment indicates that the derailment may have been caused by a build-up of melting ice and debris that washed out part of the railroad track,” according to the Maine Forest Service.

    The three locomotive engines and six rail cars that derailed were carrying lumber and electrical wiring and caught fire causing a small forest fire, according to the Maine Forest Service. The fire is now contained and being monitored by local emergency first responders, the service said.

    Maine Governor Janet Mills tweeted she was briefed on the train derailment and stated her office “will continue to closely monitor the situation” but that there was “no threat to public health or safety.”

    The rail network, which was inaugurated Friday, combines railways from Canada and the US to create “the first single-line railway connecting Canada, the U.S., and Mexico,” according to a press release.

    “CPKC is the only railway connecting North America and has unrivaled port access on coasts around the continent, from Vancouver to Atlantic Canada to the Gulf of Mexico to Lázaro Cárdenas on Mexico’s Pacific coast,” the press release states.

    Source link

  • 19th century chastity law endangers 21st century abortion medicine | CNN Politics

    19th century chastity law endangers 21st century abortion medicine | CNN Politics

    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    The Wild West of the post-Roe v. Wade legal landscape is focused on a lone federal judge in Amarillo, Texas, who could use a 19th century law to limit access to abortion medication for every American woman.

    The judge, 45-year-old Matthew Kacsmaryk, held a hearing Wednesday about whether he should impose a preliminary injunction that would require the US Food and Drug Administration to withdraw or suspend its approval of the drug, mifepristone, while a larger case progresses.

    Mifepristone is taken along with another drug, misoprostol, as part of the two-step medication abortion process. Misoprostol can be prescribed on its own, but it is considered less effective.

    Kacsmaryk, who sounded open to the idea of restricting access to mifepristone, will have to agree with some or all of these general points raised if he decides to issue an injunction:

    • That doctors who don’t perform abortions and live in Texas, where abortions are already banned, are harmed by abortions conducted elsewhere.
    • That an FDA approval conducted over the course of four years and finalized 23 years ago was so flawed that it should be rescinded.
    • That a single federal judge in Amarillo should do what no federal judge has ever done and unilaterally rescind an FDA approval.
    • That a drug, which studies suggest is on par with ibuprofen in terms of safety, is actually so harmful it should be reconsidered by the FDA.

    CNN’s Tierney Sneed wrote a longer list of takeaways from the hearing, where anti-abortion rights doctors and activist groups teed up their lawsuit in Kacsmaryk’s courtroom to further limit access to abortion care in the US.

    It’s important to note that no matter what Kacsmaryk does, it will be appealed up through the 5th US Circuit Court of Appeals and potentially to the Supreme Court.

    But perhaps the most incredible question Kacsmaryk faces is whether an 1870s chastity law named for an anti-vice crusader, Anthony Comstock, should be resuscitated and applied to the medicine that now accounts for a majority of US abortions.

    Comstock operated the New York Society for the Suppression of Vice and was a special agent of the US Postal Service. He was known for seizing contraband like contraceptives and condoms in the name of rooting out obscenity, according to the New York Historical Society.

    Mary Ziegler, a law professor at the University of California, Davis who has written about the Comstock Act for CNN Opinion, described Comstock as being “obsessed by what he saw as the decaying morals of a country preoccupied with sex.”

    Ziegler writes:

    The law he inspired barred not just the mailing of “obscene books” but also birth control and abortion drugs and devices. In the 19th and early 20th centuries, the Comstock Act was used to prohibit the mailing of many literary classics, from Geoffrey Chaucer’s “The Canterbury Tales” to works by James Joyce and Walt Whitman.

    Comstock himself proudly carried a gun and scoured the mail for cases involving information about abortion or contraception, even if a doctor provided it. By Comstock’s standard, the law was a great success: he claimed to have destroyed 15 tons of books, arrested more than 4,000 people and driven at least 15 people to suicide.

    While Congress has acted to relax elements of the Comstock Act, including to allow the mailing of contraceptives, it is still technically on the books with regard to the mailing of anything that could be used for an abortion.

    During the Covid-19 pandemic, the FDA dropped its requirement that a person obtain mifepristone in person. A prescription is still required.

    In December, the Department of Justice notified the US Postal Service that the Comstock Act did not apply as long as “the sender lacks the intent that the recipient of the drugs will use them unlawfully.”

    The FDA permanently removed the in-person requirement in January, hoping to guarantee more access to the medication after the Supreme Court ended Roe v. Wade last June.

    The group that brought the Texas lawsuit, the Alliance for Hippocratic Medicine, wants to reapply the Comstock Act and restrict the mailing of abortion medication.

    The FDA’s already exhaustive and detailed drug approval process was especially scrutinized for mifepristone, which was more commonly known as part of the RU-486 regimen when it became available to American women at the turn of the century.

    It had been available in Europe for a dozen years before that. Here’s CNN’s report from September 2000.

    That the drug works safely as a means of abortion is not really up for dispute as a medical matter after all that time, according to CNN’s Jen Christensen, who explains more about the medication in this article about mifepristone.

    Another CNN data analysis suggests mifepristone is safer than penicillin and Viagra.

    Mifepristone has a death rate of 0.0005% – five deaths for every 1 million people in the US who used it. Penicillin’s death rate is four times greater. Viagra’s is 10 times greater, according to the analysis by CNN’s Annette Choi and Will Mullery.

    Kacsmaryk had a long history of challenging laws providing greater access to reproductive rights before he became a federal judge. While he has promised to be an impartial judge, every Democrat and one Republican, Sen. Susan Collins of Maine, opposed his nomination in 2019.

    Now Kacsmaryk is the only federal judge at the courthouse in Amarillo, which almost guarantees he hears cases filed there.

    So it may be no coincidence that the group challenging use of mifepristone set up an outpost months before filing its lawsuit. The group is based in Tennessee, but one of the doctors named as a plaintiff in the lawsuit practices near Amarillo.

    However one feels about judicial shopping and whether that happened in this case, the word appears to be out that a conservative judge is alone in Amarillo and open for business.

    According to a CNN profile, Kacsmaryk has also put on hold Biden administration policies related to immigration and overseen cases related to vaccine requirements and gender identity. Last December, he halted a federal program in Texas that allowed minors to get birth control without their parents’ consent.

    That suit regarding the birth control program established in 1970 was brought by a Texas father “raising each of his daughters in accordance with Christian teaching on matters of sexuality,” which he said forbids premarital sex.

    Kacsmaryk agreed, even citing the Catechism of the Catholic Church in his decision to say “contraception (just like abortion) violates traditional tenets of many faiths, including the Christian faith Plaintiff practices.”

    His sister described him to The Washington Post as an anti-abortion rights activist and detailed her own decision to give a child up for adoption rather than seek an abortion.

    “He’s very passionate about the fact that you can’t preach pro-life and do nothing,” Jennifer Griffith told the Post. “We both hold the stance of you have to do something. You can’t not.”

    Source link

  • ‘Y’all ain’t never been to Mexico.’ How a road trip over the border took a deadly turn | CNN

    ‘Y’all ain’t never been to Mexico.’ How a road trip over the border took a deadly turn | CNN



    CNN
     — 

    Four South Carolinians in a white minivan pulled out the parking lot of a Motel 6 surrounded by palmettos and onto an expressway in Brownsville, Texas – zooming past strip malls lined with taquerias, auto repair shops and law offices with Spanish names – for the short drive to the Mexican border city of Matamoros.

    At one of the busiest border crossings in the country, the American citizens that Friday morning joined other motorists and pedestrians on trips for work or to see family, cheaper medical procedures and medications, or margarita lunches at brightly painted restaurants where menu prices are listed in pesos and dollars.

    About 9:20 a.m., LaTavia Washington McGee, a 33-year-old mother of six, and her three friends from South Carolina crossed the Brownsville and Matamoros Express International Bridge. They were already running late for Washington McGee’s appointment for a medical procedure.

    Around that time, the minivan moves along a rundown section of Matamoros, according to a livestream video taken by one of the minivan’s occupants that was obtained and analyzed by CNN.

    “Y’all ain’t never been to Mexico,” said one of the men inside the van. “Y’all don’t know what it’s like in Mexi.”

    Moments later, the man said, “Hola,” and there was laughter during a road trip that would soon take a deadly turn in the lawless border town.

    In broad daylight, at 11:45 a.m., the van was intercepted and fired upon. All occupants were shot except for Washington McGee. A Mexican woman was killed by a stray bullet about a block and a half away.

    Video showed the attackers, armed with rifles and wearing protective vests, tossing Washington McGee – “like trash” in the words of her mother, Barbara McLeod Burgess – onto the bed of a pickup.

    The gunmen, believed to be connected to the Gulf drug cartel, dragged the other victims onto the truck. Two appeared limp, leaving a trail of blood on the ground of the busy intersection. The abductors then drove away.

    Within days Mexican security forces found two of the Americans – Shaeed Woodard and Zindell Brown dead in a small wooden shack on a desolate road leading to Playa Bagdad, near the spot where the Rio Grande meets the Gulf of Mexico. Another man, Eric Williams, was wounded. And Washington McGee was found alive following a violent kidnapping that has become a flash point between neighboring countries and brought international attention to a Mexican border city where little-noticed killings and disappearances are part of everyday life.

    “If they were Mexicans this would not have happened with such speed,” Guadalupe Correa-Cabrera, an expert on smuggling who is a professor at George Mason University and has lived and worked in near Brownsville border, said of the rescue. “It would not have happened at all. It doesn’t happen with Mexicans, particularly in that state.”

    By Friday, a week after the kidnappings, Mexican authorities announced that five people had been arrested for the attack. A day earlier, the Gulf cartel purportedly issued a letter of apology and handed over five members to local authorities, according to online images and a version of the letter obtained by CNN from an official familiar with the ongoing investigation. A sixth man, who authorities said had been guarding the hostages, was arrested when the Americans were found on Tuesday.

    The four Americans that Friday morning drove into a country where authorities have struggled for small victories in a long and deadly battle against drug cartels. The conflict has claimed the lives of thousands of Mexicans, from innocent bystanders to journalists to government officials and political candidates.

    It’s unclear how much the friends in the rented minivan knew about the crime-ridden border city, where factions of the powerful Gulf cartel have been warring for turf, along with control of human trafficking, kidnapping and extortion rackets. Matamoros is in the northeast state of Tamaulipas, where an explosion of homicides, kidnappings and disappearances rarely make international news.

    “I know her,” said Washington McGee’s best friend, Cheryl Orange, who traveled with the group from South Carolina to Texas on March 2 but stayed behind because she did not have proper identification to cross the border. “She’s not going to travel to danger.”

    The trip was Washington McGee’s second to Mexico for a medical procedure, according to her mother. She had surgery across the border two or three years ago, Barbara Burgess said.

    Matamoros, with a population of more than 500,000 people, sits just across the Rio Grande from Brownsville. The US State Department in October issued a “Level 4: Do Not Travel” advisory for US citizens visiting Tamaulipas, citing gun battles, kidnapping and forced disappearances.

    Cheryl Orange vpx 01

    Friend of Americans kidnapped in Mexico recounts the moments before they went missing

    On the day of the kidnappings, Tamaulipas authorities issued a warning to parents to keep their children home from school in Matamoros because of shootings. The US embassy and consulates in Mexico warned staff to avoid downtown Matamoros.

    The Americans are believed to have been targeted by mistake and were not the intended victims, according to a US official with knowledge of the investigation. Authorities believe cartel members likely mistook them for Haitian smugglers, the official said. US authorities have not identified any concerning criminal history on the part of the Americans.

    On Friday, Mexican President Andrés Manuel López Obrador alluded to the purported “criminal background in the United States” of the Americans but did not elaborate on how that related to the deadly kidnapping. López Obrador’s “hugs not bullets” anti-crime policy – focusing on social programs rather than confrontation with criminal gangs – has come under fire at home and abroad.

    CNN is looking into López Obrador’s claims about the criminal history of the US citizens.

    US Ambassador to Mexico Ken Salazar on Friday declined comment on the motivation behind the kidnappings.

    Asked what she wanted people to know about her friends, Orange said: “I want the world to leave us alone and stop being mean. I want them to have a heart because everyone has a past.”

    The disappearance of the four Americans has become an international incident.

    The FBI launched an investigation and announced a $50,000 reward for their return and the arrest of those involved. The White House and State Department condemned the abduction and killings. Some Republicans in Congress called for a US military invasion of Mexico to combat the cartels. Others called for the US to designate the cartels as “terrorist organizations.”

    Orange said she and the other four Americans embarked on their journey from South Carolina on Thursday.

    “It was a road trip,” she said. They tagged along with Washington McGee, who was scheduled to have a medical procedure across the border, Orange told Brownsville police when she reported her friends missing a day after the kidnapping.

    Mexico is the second most popular destination for medical tourism globally, with an estimated 1.4 million to 3 million patients traveling into the country for inexpensive treatment in 2020, according to Patients Beyond Borders, an international healthcare consulting company.

    Woodard, who was killed in the kidnapping, would have celebrated his 34th birthday on Thursday, according to his father, James Woodard.

    Washington McGee and Shaeed Woodard were cousins – “like two peas in a pod” – and she invited him on the trip to Mexico for an early birthday celebration, James Woodard said.

    “They loved each other,” he said of the cousins.

    Orange said the men were expected to drop off Washington McGee at the doctor’s officer in Matamoros and return to the hotel about 15 minutes later. She fell asleep after taking a shower at the Motel 6. “I was exhausted, you know, from the long hours, from the long ride,” she said.

    She woke up about 5 p.m. and they hadn’t returned. Orange told police she tried calling her friends but couldn’t get through.

    latavia mother mexico vpx

    Victim’s mom reveals what daughter told her about killings

    The four friends never arrived at the doctor’s office for Washington McGee’s 7:30 a.m. appointment. One of them called the office that Friday morning to say they were running late.

    At some point after 11 a.m. a gray Volkswagen Jetta is seen following their minivan, according to surveillance video obtained by Mexican prosecutors.

    About 40 minutes later several vehicles appear to be trailing the minivan and, at 11:45 a.m., the Americans were intercepted by gunmen.

    Burgess said her daughter later told her by phone that the minivan was struck by another vehicle before the shooting started.

    In video that circulated online after the kidnapping, McGee Washington is seen sitting on the ground next to the white minivan. A bullet appeared to pierce the middle of driver’s side window. Three other people can be seen on the road as cars on the busy intersection start steering away from the danger.

    McGee Washington is shoved onto the back of a pickup before her three friends were lifted and tossed beside her.

    “She said the others tried to run and they got shot at the same time,” Burgess said her daughter told her after the Americans were found on Tuesday.

    “She watched them die,” Burgess said of Woodard and Zindell Brown.

    Burgess watched the video, she said, and “I thought she was done,” referring to her daughter.

    In the wee hours after reporting her friends missing, Orange watched the widely circulated video of the abduction.

    “My body clenched up. I dropped the phone. My stomach was in knots and I just began praying for the return of them,” she said.

    James Woodard was also pained by the video he saw on television.

    “That was so hard for me to see,” he said. “He was a baby and for him to be taken from me like that was very hurtful.”

    The missing Americans' van at the scene where they were last seen.  Video shows the four being loaded into the back of a pickup truck.  Their current whereabouts are unknown.

    Shocking video shows moment kidnapped Americans were loaded into pickup truck

    In the days after the kidnapping, Mexican authorities combed through surveillance video from the downtown intersection. They contacted US authorities after discovering documents in the rented minivan with North Carolina plates, which were traced by officials across the border. Mexican investigators also managed to identify the truck used by the gunmen.

    Investigators processed vehicles, and obtained ballistics and fingerprint data. They also collected biological samples for genetic profiles, Mexican officials said.

    After identifying the truck used by the gunmen, several unsuccessful searches were conducted by heavily armed Mexican security forces from various agencies.

    The Americans had been moved to several places “to create confusion and avoid rescue efforts,” Tamaulipas Gov. Américo Villarreal said.

    Burgess said her daughter told her the abductors moved the four Americans “from place to place” and finally hid them in “a little place and it stank.”

    “All of them were hustled in and were staying together,” she said.

    At 10:15 a.m. on Tuesday morning, the Americans were found in a small red wooden shack in a field outside the city. Mexican authorities arrested a man who they said was guarding the house. Images from the scene showed McGee barefoot and covered in dirt, with streaks of blood on her left leg.

    Mexico dispatched hundreds of security forces to Matamoros in what the defense ministry said was a move to safeguard “the well-being of citizens.”

    The swift response by authorities to the Americans’ kidnapping raised eyebrows in a country where desperate relatives of people who have gone missing over the years have banded together to conduct their own investigations. More than 100,000 Mexicans and migrants have disappeared in the country over the years, with no explanation of their fate.

    After the frantic rescue, Orange said hearing Washington MaGee’s voice on the phone was “music to my ears.”

    “This lady was facing death damn near and she said, ‘I was worried about you,’” Orange recalled.

    The bodies of Woodard and Brown were turned over to US authorities on Thursday.

    Washington McGee told CNN Saturday she is grateful to be back home with her family in South Carolina.

    Source link

  • CSX freight train derails after striking rockslide in West Virginia, injuring 3 and spilling diesel into river | CNN

    CSX freight train derails after striking rockslide in West Virginia, injuring 3 and spilling diesel into river | CNN



    CNN
     — 

    A CSX freight train derailed Wednesday morning after striking a rockslide in a remote area of West Virginia, injuring three crew members and spilling diesel fuel into a nearby river, according to a company press release.

    The three crew members were in the locomotive, which caught fire after the derailment, and are being treated for non-life threatening injuries, CSX said. Two were airlifted and the third was taken to the hospital in an ambulance, a Summers County Office of Emergency Management dispatcher told CNN.

    Diesel fuel and oil spilled into the New River, and containment measures will be deployed, CSX said. The company also noted that the coal train was empty and was not transporting hazardous materials. CSX spokesperson Sheriee Bowman told CNN that 22 empty rail cars derailed.

    “The incident posed no danger to the public,” the CSX release said.

    The Federal Rail Administration says it’s actively monitoring the derailment and said that the fire has been extinguished. The administration said the derailment occurred on an Amtrak route, so residual delays may be expected.

    At least one locomotive and one fuel tank went into the New River, the West Virginia Emergency Management Division said. The division said the derailment occurred in a remote area south of Sandstone inside the New River Gorge National Park and Preserve, which in 2021 became America’s 63rd national park.

    The derailment comes about a month after a Norfolk Southern freight train carrying hazardous materials derailed and caught fire near East Palestine, Ohio, releasing potentially dangerous chemicals into the air and water. The incident has spurred bipartisan political efforts to prevent future incidents.

    CSX owns 12 feet from the middle of the train track to either side and is responsible for cleanup, the division said, adding praise for the early efforts of the company and first responders.

    “I’d like to commend the response agencies and CSX for their quick and efficient response,” said Summers County Emergency Manager Steve Lipscomb. “All the agencies worked as a team to provide prompt medical aid and transportation to the injured.”

    No roads are closed and there have been no evacuations of nearby homes, the division said.

    Chief Deputy Tim Adkins of the Summers County Sheriff’s Department said they received a call around 5 a.m. Wednesday about the derailment at a “pretty remote stretch of railway.” There was “extensive damage” to the train but no damage to outside property and no roads were blocked, he said.

    Source link

  • NTSB investigating Norfolk Southern’s safety culture after conductor is killed in accident involving dump truck in Ohio | CNN

    NTSB investigating Norfolk Southern’s safety culture after conductor is killed in accident involving dump truck in Ohio | CNN



    CNN
     — 

    A Norfolk Southern conductor was killed Tuesday after being struck by a dump truck at a facility in Ohio, prompting a National Transportation Safety Board investigation of the railway’s safety culture due to the “number and significance” of recent accidents.

    The conductor, identified as 46-year-old Louis Shuster, was fatally injured early Tuesday morning at the Cleveland-Cliffs Cleveland Works property, the railroad said in a news release. It is the third incident involving the railroad in the state in just over a month.

    Shuster was struck when a dump truck carrying limestone collided with the front left side of the first car of the train. He was outside the car when he was struck, a Cleveland police spokesperson told CNN.

    Norfolk Southern is working with Ohio Gov. Mike DeWine, the Cleveland Police Department and Cleveland-Cliffs representatives to learn more, it said.

    The National Transportation Safety Board said on Twitter that it had sent crews to the scene.

    The NTSB said in a statement later that its safety culture probe encompasses multiple incidents and three deaths since December 2021, including the toxic East Palestine derailment and the employee killed earlier Tuesday. It is already investigating a October 28 derailment in Sandusky, Ohio.

    “The NTSB is concerned that several organizational factors may be involved in the accidents, including safety culture,” the board said in a statement. “The NTSB will conduct an in-depth investigation into the safety practices and culture of the company. At the same time, the company should not wait to improve safety and the NTSB urges it to do so immediately.”

    Norfolk Southern’s CEO is scheduled to testify before a Senate committee Thursday.

    “Norfolk Southern has been in touch with the conductor’s family and will do all it can to support them and his colleagues. We are grieving the loss of a colleague today. Our hearts go out to his loved ones during this extremely difficult time,” the railroad said.

    Shuster was member of the Brotherhood of Locomotive Engineers and Trainmen (BLET) and employed as a Norfolk Southern conductor, according to the union.

    “Lou was a passionate and dedicated union brother,” said Pat Redmond, Local Chairman of BLET Division 607. “He was always there for his coworkers. He was very active in helping veterans who worked on the railroad and veterans all across our community.”

    Shuster, a resident of Broadview Heights, Ohio, was president of BLET Division 607 in Cleveland. Shuster has a 16-year-old son and cared for his elderly parents, and was an Army veteran, the union said.

    “This was a tragic situation and it’s a devastating loss for the Shuster family as well as the members of this union,” said BLET National President Eddie Hall. “All railroad accidents are avoidable. This collision underscores the need for significant improvements in rail safety for both workers and the public.”

    Cleveland-Cliffs is a flat-rolled steel company, according to its website, and its Cleveland Works facility sits on the Cuyahoga River in Cleveland.

    CNN has reached out to Cleveland-Cliffs, Cleveland police and the Ohio governor’s office for more information.

    The conductor’s death comes as Norfolk Southern is facing criticism for two recent derailments in Ohio, including one in East Palestine last month that resulted in the release and burning of a toxic chemical that left nearby residents complaining of headaches, coughing and rashes they believe are tied to the fiery crash.

    As the railroad works with the Environmental Protection Agency to remediate the site, it announced a new six-point safety plan Monday designed to help prevent similar derailments in the future.

    And in Springfield, about 200 miles southwest of East Palestine, another Norfolk Southern freight train derailed Saturday.

    The crash knocked out power and the area and resulted in a temporary shelter-in-place order for homes within 1,000 feet of the scene. Crews later determined nothing had spilled from the derailed cars and there was no environmental harm.

    Casualties, including injuries and deaths, involving railroad employees are not uncommon, according to data from the Federal Railroad Administration, which shows there were more than 13,500 incidents involving on-duty employees across the industry in 2022, including 1,060 involving Norfolk Southern employees.

    Forty-two rail employees died while on duty last year, the administration said. Five of those individuals were Norfolk Southern employees.

    Source link

  • Greek prime minister apologizes over train collision amid public fury | CNN

    Greek prime minister apologizes over train collision amid public fury | CNN



    CNN
     — 

    Greek Prime Minister Kyriakos Mitsotakis has apologized for one of the country’s worst train crashes in years, saying “We cannot, will not, and must not hide behind human error.”

    A passenger train carrying more than 350 people collided with a freight train on Tuesday evening in Tempi, near the city of Larissa, killing at least 57 people and injuring scores more.

    Demonstrators have been pouring onto the streets in the wake of the deadly crash, with widespread anger over the country’s railway safety record. Fresh unrest broke out on Sunday, with protesters clashing with police in Athens in scenes that are expected to be seen across the country.

    “This crime should not be covered up, we will be the voice of all the dead,” was one of the slogans during Sunday’s protest in Athens.

    In a statement, Mitsotakis said it should not be possible for two trains moving in opposite directions “to be on the same track and not be noticed by anyone.”

    “As prime minister, I owe everyone, but above all to the relatives of the victims, a big sorry. Both personally, and in the name of all those who ruled the country for years,” Mitsotakis said.

    The reference to human error marks a change of tone from the prime minister. In the aftermath of the collision he blamed “tragic human error.”

    His latest statement though suggested systematic problems in the Greek railway network, promising announcements in the coming days to “immediately improve the safety of the railways.”

    On Thursday after a train station manager was arrested in Larissa in connection with the collision, Greek authorities made public dispatch recordings revealing that one of the train drivers involved had received instructions to ignore a red light.

    Greece has a poor record of railway passenger safety compared with other countries in Europe, recording the highest railway fatality rate per million train kilometers from 2018 to 2020 among 28 nations on the continent, according to a 2022 report from the European Union Agency for Railways.

    The head-on collision left toppled carriages and scorched debris in its wake. Many of those on board were young people returning home from a holiday weekend.

    The country’s transport minister resigned in the wake of the tragedy and a rail workers’ union went on strike, accusing the government of neglecting the system.

    Source link

  • Norfolk Southern freight train derails in Clark County, Ohio, prompting shelter-in-place order ‘out of abundance of caution’ | CNN

    Norfolk Southern freight train derails in Clark County, Ohio, prompting shelter-in-place order ‘out of abundance of caution’ | CNN



    CNN
     — 

    A Norfolk Southern freight train derailed in the Springfield, Ohio, area Saturday afternoon, prompting a shelter-in-place order for nearby residents – just one month after the company’s toxic train wreck on the other side of the state in East Palestine.

    No injuries were reported Saturday and there was no hazmat situation at the crash site in Clark County, an Ohio State Highway Patrol spokesperson told CNN. The derailment happened around 5 p.m. ET and the road was closed on State Route 41, the spokesperson added.

    Twenty cars of the 212-car Norfolk Southern train derailed while headed south in the Springfield area, Norfolk Southern spokesperson Connor Spielmaker told CNN.

    “No hazardous materials are involved and there have been no reported injuries,” Spielmaker said. “Our teams are enroute to the site to begin cleanup operations.”

    The company is working to find out what the train was transporting, Spielmaker added, confirming it was not a passenger train.

    The Clark County Emergency Management Agency asked residents Saturday who were within 1,000 feet of the train derailment “to shelter-in-place out of an abundance of caution.”

    “We ask that all residents in need of travel to Ohio 41 find alternate routes. Local and state officials are on scene, including the Springfield Fire Rescue Division and the Springfield Police Department,” the agency said in a Facebook update.

    Clark County officials also said they were aware of power outages in the area due to downed power lines.

    US Transportation Secretary Pete Buttigieg said he has been briefed on the derailment and is sending Federal Railroad Administration officials to the scene.

    “I have been briefed by FRA leadership and spoke with Gov. DeWine to offer our support after the derailment today in Clark County, Ohio. No hazardous material release has been reported, but we will continue to monitor closely and FRA personnel are en route,” Buttigieg said in a tweet on Saturday.

    The derailment comes as crews were still working to clear the toxic wreck of another Norfolk Southern train that derailed on February 3 while carrying hazardous materials more than 200 miles away in East Palestine, Ohio.

    The East Palestine derailment fueled outcry among residents who have complained of symptoms, including headaches and coughing after the fiery crash. The train was hauling dangerous chemical vinyl chloride – which was released and burned to prevent a potentially deadly explosion – and other chemicals that are feared to have leaked into the surrounding ecosystem.

    Norfolk Southern has promised to fully clean up the wreck and vowed to invest in East Palestine.

    The derailment has put rail safety under the spotlight and raised questions about regulations surrounding the transport of hazardous materials. Data from the Federal Railroad Administration Office of Safety Analysis shows there have been at least 1,000 derailments in the United States each year during the past decade.

    Source link

  • Despite toxic disaster, railroads still want single-person crews | CNN Business

    Despite toxic disaster, railroads still want single-person crews | CNN Business


    New York
    CNN
     — 

    The nation’s major freight railroads have long desired to have only one crew member, a lone engineer, in the cab of their locomotives. And that desire hasn’t changed despite the derailment of a Norfolk Southern train on February 3 that released toxic chemicals into the air, water and soil of East Palestine, Ohio, that is still being cleaned up.

    But that accident very well may have ended the railroad’s chances of getting that one-person crew goal.

    The rail safety legislation, introduced in Congress Wednesday with bipartisan support, would include a prohibition on single-person crews. There is no such existing law or federal regulation requiring both an engineer and a conductor to be on a train. Instead, it is only labor deals with the Brotherhood of Locomotive Engineers and the transportation division of the Sheet Metal, Air, Rail, Transportation union (SMART-TD), which represents the conductors, that require at least one member of each union in the locomotive’s cab.

    The Association of American Railroads confirmed that its position in favor of one-person crews has not changed. It believes it will be more efficient, and just as safe, to have engineers responding to problems with trains by driving along tracks in trucks rather than riding in the cab of the locomotive.

    “The position on crew size has not changed. Railroads have been clear that they support fact-driven policies that address the cause of this accident and enhance safety,” said an AAR statement. “As we continue to review this bill, it is clear it includes many of the same wish list items AAR and others have clearly said would not prevent a similar accident in the future, such as the… arbitrary crew size rule. Railroads look forward to working with all stakeholders to meaningfully advance real solutions.”

    Union Pacific said the opposition to a two-person crew mandate does not mean the railroads don’t care about safety.

    “No data shows a two-person crew confined to a cab is safer, and train crew size should continue to be determined through collective bargaining,” a statement from UP. “Proposed legislation limits our ability to compete in a business landscape where technology is rapidly changing the transportation industry.”

    CSX also said it believes the decision on crew size should be decided in collective bargaining, not through legislation, but said it is not currently pursuing a change in crew size. Negotiations between the railroads and unions is not due to start again until 2024, and the railroads historically have negotiated deals that apply across the industry. The other two major freight railroads – Norfolk Southern and Burlington Northern Santa Fe – did not responded to questions about the legislation. But the AAR is the trade group that lobbies on their behalf.

    The AAR’s statement did not address the question as to whether that rule is now more likely to pass. But Jeremy Ferguson, president of SMART-TD, said this accident has completely changed the chances of getting the two-person crew requirement written into US law.

    “Absolutely,” he said when asked in an interview with CNN Business if he thinks the provision will now pass. “When an incident like this happens, it brings all the issues to light, how unsafe the rail industry truly is. I didn’t think we had any chance before this. The railroads and AAR do a very good job of lobbying in DC. So generally it’s difficult to get people to vote for something like this rule. But sometimes it takes a disaster to drive home the point. Any time you turn the TV on, there’s still an issue. It’s not going away.”

    The senators, both Democrat and Republican, sponsoring the rail safety bill say they’re hopeful there is now bipartisan support to change the law.

    “Rail lobbyists have fought for years to protect their profits at the expense of communities like East Palestine,” said Sen. Sherrod Brown, the Ohio Democrat. “These commonsense bipartisan safety measures will finally hold big railroad companies accountable, make our railroads and the towns along them safer, and prevent future tragedies, so no community has to suffer like East Palestine again.”

    “Through this legislation, Congress has a real opportunity to ensure that what happened in East Palestine will never happen again,” said Sen. J.D. Vance, the Ohio Republican who is a co-sponsor. “We owe every American the peace of mind that their community is protected from a catastrophe of this kind.”

    If the law is changed due to the East Palestine derailment, it won’t be the first disaster that changed rules and laws governing trains. In 2013, a runaway Canadian freight train carrying tanker cars of oil crashed in Lac-Mégantic, Quebec, causing a massive fire that killed 47 people and destroyed 40 buildings in the town. Canada responded by changing its law to require two person crews on trains carrying hazardous materials.

    But calls to change the law in the United States because of that accident fell on deaf ears.

    The fact that there were three employees on the train that derailed in East Palestine — an engineer, a conductor and a trainee — did not prevent this accident from happening.

    The National Transportation Safety Board’s initial finding on the disaster was that a fire originally started when a rail car carrying plastic pellets was heated by a hot axle.

    After the fire started, the train passed three trackside detectors meant to determine if there is a problem causing overheating. But the first two did not signal a problem, even as the fire raised the temperature more than 100 degrees. The detectors are designed not to alert the crew until there is a 200-degree rise in the temperature detected. Finally the third detector registered a rise in temperature of more than 250 degrees, triggering an alarm in the locomotive’s cab.

    The NTSB said the engineer responded immediately to the alarm by applying the brakes in an attempt to stop the train, but the wheel bearing on the car that was on fire failed before he could bring the train to a halt, causing the derailment.

    Ferguson said that while the crew could not prevent this derailment from happening, there are an uncounted number of times that they detect a problem and prevent a derailment. He said not having the conductor on the train would miss many of those problems and cause many more derailments.

    “When a detector goes off, you stop the train and the conductor can walk back and check if there is an overheating axle and make an immediate decision,” Ferguson said. An engineer is not allowed to get out of the locomotive, even if it’s stopped. Only the conductor can check to see if what the problems is that triggered an alarm.

    But if the conductor is driving around in a truck, rather than riding in the cab of the locomotive, it could be an hour or more before the conductor gets there, and the axle might have cooled down. At that point, the conductor might have to send the train back on its way, according to Ferguson, even though the original problem tripping the heat detector — a faulty axle or bearing — is still a problem that could quickly cause a derailment.

    “So having a guy wandering around in the truck may cause a derailment,” said Ferguson.

    Beyond the problems of this kind, having a second person in the cab can just offer greater attention to detail during long train rides.

    “You’ve got two sets of ears and two set of eyes. It always helps,” Ferguson said.

    And it also helps in case of a medical emergency. In January, a CSX engineer suffered a heart attack while bringing a freight train into Savannah, Georgia, according to the engineers’ union. The conductor was able to recognize he was in distress, give him an aspirin and to call ahead to have an ambulance waiting for him in the rail yard.

    The engineer needed emergency bypass surgery, but survived the heart attack.

    “This happens more often than people realize,” Ferguson said. “It’s not necessarily always a heart attack. But having two people up there always pays dividend for the crew members themselves.”

    CSX confirmed the incident with one of its engineer having a heart attack occurred in January.

    “We commend the heroic actions of all CSX employees who render aid during any medical emergency,” said CSX’s statement.

    The fact that the current labor contracts require two crew members is little comfort to the engineers and conductors unions.

    They point out that under the Railway Labor Act, they can have a contract that is opposed by some or all of the rail unions imposed upon them by Congress, as happened this past December. While this current contract did keep the provision for two-person crews in place, that’s not necessarily going to be the case in all future contracts, even if the unions continue to make the issue a priority.

    Congress generally enacts what is recommended by a panel appointed by the president to propose a deal that hopefully both labor and management can accept. But it might have one or two provisions which are deal breakers for the unions, such as allowing single-person crews.

    “Given the wrong president, we could lose this in a hurry,” said Ferguson.

    The Federal Railroad Administration is also considering a rule that would require two-person crews. But Ferguson said getting the requirement written into law would be better than a simple regulation. An FRA regulation could be easier to change in a new administration than it would be to get a change in the law.

    Source link

  • It’s been one month since a freight train carrying hazardous chemicals derailed in Ohio. Here’s what’s happened since | CNN

    It’s been one month since a freight train carrying hazardous chemicals derailed in Ohio. Here’s what’s happened since | CNN

    Feb. 3 — Around 8:12 p.m., sparks shoot out from underneath the Norfolk Southern freight train as it passes through Salem, Ohio, surveillance video shows.

    Around 8:55 p.m., 38 of the train’s cars derail in East Palestine. The derailed equipment includes 11 tank cars carrying hazardous materials that ignited, fueling fires that damage another dozen cars, the National Transportation Safety Board says.

    Feb. 4 — Members of the US Environmental Protection Agency arrive hours after the derailment and start monitoring the air for volatile organic compounds (VOCs) such as vinyl chloride and butyl acrylate, which were on the train and can be harmful to people, the agency says.

    EPA contractors install booms and underflow dams to try to restrict the flow of contaminated water and collect floating material to mitigate any possible impacts to Sulphur Run and Leslie Run streams.

    Feb. 5 — Gov. Mike DeWine activates the Ohio National Guard to assist local authorities.

    Officials issue a shelter-in-place order for the entire town of roughly 5,000 people. An evacuation order is issued for the area within a mile radius of the train crash near James Street, due to the risk of an explosion.

    EPA community air monitoring readings do not detect any contaminants of concern, the agency says. Norfolk Southern’s contractor continues to conduct air monitoring, it says.

    The National Transportation Safety Board is on scene to gather evidence and asks the community to submit photos or videos of the incident.

    NTSB conducts a one-mile walk-through of track outside the hot zone and identifies the point of derailment. NTSB Member Michael Graham says the preliminary report is expected in four to eight weeks.

    Aeration pumps – which help treat contamination by injecting oxygen into the water – begin operating at three locations along Sulphur Run and its confluence with Leslie Run. EPA and Norfolk Southern contractors collect surface water samples for analysis.

    The East Palestine water treatment plant, which treats water sourced from public wells, confirms there were no adverse effects to the plant, the EPA says.

    Feb. 6 — To help prevent a deadly explosion of vinyl chloride, crews conduct a controlled detonation involving cars containing the toxic substance. The chemical was drained into a trench and burned off. “The detonation went perfect,” a Norfolk Southern official said.

    After the breach, officials detected “slightly elevated” readings of the phosgene and hydrogen chloride in the burn area and “only one minor hit for the hydrogen chloride downwind of the burn area” within the exclusion zone, an EPA official said. He said such readings were expected after the controlled release.

    Feb. 7 — Residents in the area are told they may smell odors coming from the site because the byproducts of the controlled burn have a low odor threshold – meaning people may smell these contaminants at levels much lower than what is considered hazardous, the EPA says.

    The EPA continues to perform air monitoring and work with Norfolk Southern, health departments and other responding agencies to develop procedures for safely reoccupying the evacuated areas.

    The 52nd Civil Service Team conducts air monitoring in three public administration buildings and collects air samples from each building, according to the EPA.

    The EPA says it is investigating a complaint of odors from the Darlington Township, Pennsylvania, fire station. A team with air monitoring equipment goes to the station, where it does not observe any contaminants above detection limits.

    Feb. 8 — The evacuation order is lifted, five days after the derailment, after water samples are analyzed overnight. The results lead officials to deem the water is safe, East Palestine Fire Chief Keith Drabick says at a news conference.

    The EPA and Ohio EPA find spilled materials in Sulphur Run, the EPA says. Oily product is leaking from a tank car and pooling onto the soil. Norfolk Southern is notified of the spill and begins removing the product using a vacuum truck.

    A local couple and business owner file the first-class action lawsuit against Norfolk Southern, CNN reports. The suit accuses the rail company of negligence, stating it failed to exercise reasonable care for residents, with businesses adversely affected by the derailment and chemical spill.

    Feb. 9 — EPA continues stationary and roaming air monitoring surrounding the derailment scene.

    Despite officials deeming the air and water samples safe, some residents still have concerns. Residents are encouraged to get their homes deep-cleaned and seek medical attention, if necessary, officials say at a news conference.

    The EPA works with Ohio EPA to investigate remaining soil contamination and any impacts to surface water, the agency says. EPA collects samples of spilled material near the derailment site and in Sulphur Run.

    Officials say schools will remain closed until further notice from the superintendent.

    Mayor Trent Conaway ensures that the school building will be scrubbed “head to toe” and air tested before any child walks back into the building.

    Feb. 10 — Some residents say when they returned to their homes in East Palestine, within a half-hour they developed a rash and nausea.

    EPA is assisting with voluntary residential air screening appointments offered by Norfolk Southern, the agency says. Crews have screened indoor air at 46 homes. There are over 400 requests for indoor air screening remaining.

    To increase the rate of screening, Norfolk Southern – with EPA assistance – brings more teams and equipment to East Palestine, according to the EPA.

    Ohio EPA leads efforts to investigate and remediate impacts to water, the agency says. Samples from Sulphur Run and other points of nearby water streams are taken for testing.

    Norfolk Southern contractors install a dam and a water bypass at Sulphur Run to prevent further contamination of downstream waters, the EPA says.

    Feb. 11 — EPA issues a general notice of potential liability letter to Norfolk Southern to document the release or threat of release of hazardous substances, pollutants or contaminants to the environment. The letter outlines EPA cleanup actions at the site and the potential to hold the railroad accountable for associated costs.

    EPA continues to assist Norfolk Southern and Columbiana County Emergency Management Agency with voluntary residential air screening, the EPA says.

    Feb. 12 — EPA posts a document from Norfolk Southern listing the cars that were involved in the derailment and the products they were carrying.

    Air monitoring throughout East Palestine continues, the EPA says. Monitoring since the fire went out has not detected any levels of concern that can be attributed to the incident.

    Local schools and the library are screened, the EPA says.

    Feb. 13 — Reentry air screenings are underway. Community air monitoring will continue operating 24 hours a day.

    EPA deploys two more Summa air sampling canisters for continuous sampling.

    EPA discontinues phosgene and hydrogen chloride community air monitoring. After the fire was extinguished on February 8, the threat of vinyl chloride fire producing phosgene and hydrogen chloride no longer exists. EPA will continue 24-hour community air monitoring for other chemicals of concern.

    The East Palestine School District “safely” reopens schools.

    Feb. 14 — No vinyl chloride is detected in any of the down-gradient waterways near the train derailment, Tiffani Kavalec, Chief of the Division of Surface Water at the Ohio EPA says. Active aeration of the waterways near the derailment continue, and even though some waterways remain contaminated, the agency says it is confident the contaminants are contained.

    About 3,500 fish across 12 species have died in Ohio waterways, the Ohio Department of Natural Resources says.

    Feb. 15 — Residents pack a high school gym in East Palestine for a meeting with officials to discuss the current state of their community, CNN reports.

    The event hosted by East Palestine officials was supposed to include officials from Norfolk Southern. But the company, which said it had hoped to provide updates on cleanup efforts and results from air and water tests, backed out earlier in the day, saying it was concerned about a “growing physical threat to our employees and members of the community around this event,” stemming from its belief that “outside parties” would participate.

    Instead, local leaders take questions from emotional residents who express distrust of officials’ accounts and anger – including at the transport company’s decision to skip the event.

    Norfolk Southern provides bottled water at its family assistance center, the EPA says.

    Regional Administrator Debra Shore attends a community meeting alongside EPA on-scene coordinators and state and local officials to hear residents’ concerns.

    Gov. DeWine issues a news release stating the municipal water is safe to consume. Test results from the village’s municipal well sampling showed no water quality concerns, the state says.

    East Palestine’s municipal water supply comes from five wells, DeWine’s office says. All the wells are at least 56 feet underground and encased in steel. As of February 15 (12 days after the derailment/initial explosion and nine days after the controlled detonation), test samples from both the raw, untreated municipal water and the treated water showed no dangerous levels of contaminants, the governor’s office says.

    DeWine encourages those East Palestine residents with private wells who have not had their water tested to continue drinking bottled water “out of an abundance of caution.”

    Norfolk Southern has not removed potentially contaminated soil from the site, new documents posted by the EPA show. Norfolk Southern tells CNN it continues to work to clean up the site, including the removal of soil.

    “Contaminated soil will continue (to) leech contaminants, both up into the air, and down into the surrounding ground,” Richard Peltier, an environmental health scientist at the University of Massachusetts at Amherst, tells CNN in an email. “Every time it rains, a flood of new contaminants will enter the ecosystem.”

    Feb. 16EPA Administrator Michael Regan arrives in East Palestine to assess the ongoing response to the Norfolk Southern train derailment. The administrator meets with city, state and federal leaders involved in the response, hearing directly from residents about the impacts of the crisis and discuss EPA’s work.

    DeWine asks the US Centers for Disease Control and Prevention for immediate assistance by sending expert medical assistance including doctors and professionals who can evaluate residents who are experiencing symptoms.

    Feb. 17 — DeWine says no derailment contaminants have been found in homes tested for air quality and that there is a section of Sulfur Run near the crash site that remains severely contaminated.

    Requests for medical experts from the federal government have been granted and DeWine says officials should arrive next week to help prop up a clinic for patients.

    Feb. 18 — Air monitoring and indoor air screening continue, according to the EPA. Municipal water samples show no water quality concerns, the agency says.

    Emphasis is being placed on recovery of all pooled liquids, excavation of heavily contaminated soil, and removal of all remaining rail cars, according to the EPA. In order to capture any contamination leaving the site, Norfolk Southern establishes a containment area in a section of Sulphur Creek to divert all upstream water around the containment area. The containment area has effectively cut off the introduction of additional contamination into Sulphur Run.

    Feb. 19 — The village of East Palestine’s municipal well water sample results show no water quality concerns, the EPA says. The Columbiana County General Health District continues to sample private water wells. To date, 52 wells have been sampled, 49 in Ohio, and three across the border in Pennsylvania, the agency says.

    Norfolk Southern continues scrapping and removing rail cars at the derailment location, excavating contaminated areas, removing liquids from affected storm drains and staging recovered waste for transportation to an approved disposal facility, the EPA says. Water continues to be diverted from the upstream wetland area to Sulphur Run.

    Feb. 21 — The state opens up a health clinic for residents who worry their symptoms, such as trouble breathing, rashes and nausea, might be linked to the derailment.

    CNN reports investigators are reviewing videos of the train prior to it derailing. One video shows “what appears to be a wheel bearing in the final stage of overheat failure moments before the derailment,” the National Transportation Safety Board says in a statement.

    The EPA announces its legally binding notice ordering Norfolk Southern to handle and pay for all necessary cleanup involved in the derailment.

    As part of EPA’s legally binding order, the agency said, Norfolk Southern will be required to:

    • Identify and clean up any contaminated soil and water resources,

    • Reimburse the EPA for cleaning services to be offered to residents and businesses to provide an additional layer of reassurance, which will be conducted by EPA staff and contractors,

    • Attend and participate in public meetings at the EPA’s request and post information online,

    • Pay for the EPA’s costs for work performed under this order.

    The order will take effect February 23. If the rail company fails to complete any actions ordered by EPA, the agency says it will immediately step in, conduct the necessary work and then seek to compel Norfolk Southern to pay triple the cost.

    After the accusations, Norfolk Southern issues a statement to CNN:

    “We recognize that we have a responsibility, and we have committed to doing what’s right for the residents of East Palestine,” the company said Tuesday.

    “We have been paying for the clean-up activities to date and will continue to do so. We are committed to thoroughly and safely cleaning the site, and we are reimbursing residents for the disruption this has caused in their lives. We are investing in helping East Palestine thrive for the long-term, and we will continue to be in the community for as long as it takes. We are going to learn from this terrible accident and work with regulators and elected officials to improve railroad safety.”

    The Pennsylvania Attorney General’s office says it will investigate the train derailment following a criminal referral it received from the state’s Department of Environmental Protection, according to a statement from the office.

    Gov. Josh Shapiro first mentions the criminal referral when he was asked what nonfinancial actions are being taken.

    In response to news about the criminal referral, a Norfolk Southern spokesperson says the company has no comment.

    Feb. 22 — EPA Administrator Michael Regan threatens to fine Norfolk Southern if it fails to fully clean up after the mess the derailment left behind, he says, citing the agency’s authority under CERCLA – the Comprehensive Environmental Response, Compensation and Liability Act.

    Regan summarizes the EPA’s demands to Norfolk Southern:

    “Number one: They will clean up every single piece of debris, all of the contamination, to EPA specifications and satisfaction,” he tells CNN.

    “Number two: They will pay for it – fully pay for it. At any moment, if we have to step in because they refuse to do anything, we will do the cleaning up ourselves. We can fine them up to $70,000 a day,” the EPA chief said.

    “And when we recoup our total costs, we can charge them three times of the amount of the cost of the federal government. That is what the law provides.”

    The East Palestine School District closes for one day due to former President Donald Trump’s scheduled visit to the area.

    Feb. 23 — Transportation Secretary Pete Buttigieg makes his first visit to East Palestine nearly three weeks after the train derailment and defends the timing of the trip.

    “In terms of the timing of the visit, I’m trying to strike the right balance allowing NTSB to play its role but making sure we’re here in that show of support,” he says.

    Buttigieg says he’s focused on making regulatory changes to prevent future incidents and challenged his critics to do the same.

    Feb. 24 — Officials in Michigan and Texas say they were stunned to learn hazardous waste from Ohio was headed to their states because they received no advance notification.

    Feb. 25 — The EPA orders Norfolk Southern to stop shipments of hazardous waste so it can review the company’s plans for disposal.

    Feb. 26 — Hazardous waste shipments will resume and go to two EPA-certified facilities in Ohio, EPA regional administrator Debra Shore says. The shipments will begin the next day. “Some of the liquid wastes will be sent to a facility in Vickery, Ohio, where it will be disposed of in an underground injection well,” Shore says. “Norfolk Southern will also begin shipping solid waste to the Heritage Incinerator in East Liverpool, Ohio.”

    Week of Feb. 27 — A data analysis suggests nine out of the dozens of chemicals that the EPA has been monitoring are higher than what normally would be found in East Palestine, according to scientists from Texas A&M and Carnegie Mellon universities.

    If the levels of some chemicals remain high, it could pose a problem for residents’ health over time, the scientists said. Temperature changes or high winds might stir up the chemicals and release them into the atmosphere.

    An EPA spokesperson says monitored chemicals “are below levels of concern for adverse health impacts from short-term exposure.”

    “The long-term risks referenced by this analysis assume a lifetime of exposure, which is constant exposure over approximately 70 years,” the spokesperson says. “EPA does not anticipate levels of these chemicals will stay high for anywhere near that. We are committed to staying in East Palestine and will continue to monitor the air inside and outside of homes to ensure that these levels remain safe over time.”

    Feb. 27 — The EPA announces two more sites will receive toxic waste from East Palestine – one in Indiana, and a third facility in Ohio.

    Feb. 28 — Recent heavy rain may have allowed “a small amount of heavily diluted contaminants” to flow from the Sulphur Run stream to the Leslie Run stream, the Ohio governor’s office said, citing the state’s environmental protection agency.

    Source link

  • Ohio toxic train disaster leads to more concerns in other states while scientists say chemical tests in East Palestine are unusually high | CNN

    Ohio toxic train disaster leads to more concerns in other states while scientists say chemical tests in East Palestine are unusually high | CNN



    CNN
     — 

    The aftermath of the toxic train wreck in Ohio keeps spreading to more states as scientists say tests in East Palestine unusually high levels of some chemicals.

    Indiana Gov. Eric Holcomb is the latest out-of-state official to say he was stunned to learn hazardous waste from the Norfolk Southern train derailment and subsequent release of toxic chemicals was headed to his state.

    “After learning third-hand that materials may be transported to our state yesterday, I directed my environmental director to reach out” to the US Environmental Protection Agency, Holcomb said in a written statement Tuesday.

    “The materials should go to the nearest facilities, not moved from the far eastern side of Ohio to the far western side of Indiana,” Holcomb said. “I want to know exactly what precautions will be taken in the transport and disposition of the materials.”

    After surprise shipments of hazardous waste to Texas and Michigan, the EPA approved two sites in Ohio to handle safe disposal of the waste.

    Another two sites – Heritage Environmental Services’ hazardous waste landfill in Roachdale, Indiana, and Ross Incineration Services in Grafton, Ohio – will receive contaminated waste starting Tuesday, EPA Region 5 Administrator Debra Shore said Monday. She said Indiana officials and state partners were notified before the EPA approved “the shipment of any waste from the derailment to their state or district.”

    But US EPA Administrator Michael Regan said the agency is developing measures to give authorities a “heads up” about incoming waste shipments and to keep Norfolk Southern accountable for the material it is moving.

    On the other side of Ohio, the Pennsylvania Department of Health is opening a health resource center in Beaver County so residents “can talk to public health experts, sign up to have their well water tested, and learn about available resources from professionals there to help,” Gov. Josh Shapiro tweeted Tuesday.

    Beaver County is just across the state border from East Palestine, Ohio – a village of 5,000 struggling to understand the full breadth of consequences from the February 3 toxic train wreck that burned for days and led to the release of the dangerous chemical vinyl chloride.

    A new data analysis suggests nine out of the dozens of chemicals that the EPA has been monitoring are higher than what normally would be found in East Palestine, according to scientists from Texas A&M and Carnegie Mellon universities.

    If the levels of some chemicals remain high, it could pose a problem for residents’ health over time, the scientists said. Temperature changes or high winds might stir up the chemicals and release them into the atmosphere.

    The chemical with the highest concentration found in East Palestine was a substance called acrolein, the data analysis said.

    Acrolein is used to control plants, algae, rodents and microorganisms. It is a clear liquid at room temperature and is toxic. It can cause inflammation and irritation of the skin, respiratory tract and mucous membranes, according to the US Centers for Disease Control and Prevention.

    “It’s not elevated to the point where it’s necessarily like an immediate ‘evacuate the building’ health concern,” said Albert Presto, an associate research professor of mechanical engineering at Carnegie Mellon’s Wilton E. Scott Institute for Energy Innovation, who is working on the university’s chemical monitoring effort in East Palestine.

    “But, you know, we don’t know necessarily what the long-term risk is or how long that concentration that causes that risk will persist.”

    Some East Palestine residents have reported rashes, headaches, nausea and bloody noses since the derailment and the February 6 controlled release and burning of vinyl chloride.

    During his third visit to the town Tuesday, the EPA chief said ongoing tests of the air and municipal water show both are safe – but urged anyone who is feeling “any kind of adverse health impacts” to seek medical attention.

    Regan returned to East Palestine to mark the opening of the “EPA’s community welcome center,” which will be open daily so “residents and business owners can stop in to get their questions answered, sign up for home air monitoring, and learn more about cleaning services.”

    “We’ve been testing the air from the very beginning, and the state has been testing the water,” Regan said.

    “Every chemical that was on that train and every byproduct from those chemicals have been tested or are part of our testing regimen,” he said. “So we believe firmly that our testing regimen is protective.”

    Still, the EPA is offering cleaning services – which will be reimbursed by Norfolk Southern – to any concerned resident in East Palestine.

    “There have been many residents here who have indicated that they worry about some residual, or some dust or some particles,” Regan said. “While we don’t believe that there are any adverse health impacts in homes or businesses as it relates to the derailment, this is an additional step we’re taking to alleviate concern and lower the angst.”

    Ohio officials have said East Palestine’s municipal water supply is safe to drink, citing multiple tests and the fact that the municipal water comes from five wells encased in steel deep underground.

    But health officials warn those using private well water should get it tested before using it. The Columbiana County Health District is posting test results online.

    Across the border in Pennsylvania, the state Department of Environmental Protection has collected samples from “nearly every private well” in the state within one mile of the derailment site, the governor said.

    The goal is to independently verify the safety of the water in Pennsylvania, Shapiro said.

    He reiterated that “Norfolk Southern will pay for the entire cost of the clean up,” including reimbursing Pennsylvania county fire departments for “equipment that was damaged or contaminated while responding to the derailment.”

    US Transporation Secretary Pete Buttigieg has called for Norfolk Southern and the rest of the freight rail industry to take a number of immediate actions, including committing to phase in safer tank cars by 2025.

    The Department of Transportation also wants Congress to take up legislation that would increase the maximum fines the DOT can issue to rail companies for violating safety regulations, Buttigieg said.

    He also called on the CEOs of major freight rail companies to “join a close-call reporting system that protects whistleblowers who spot issues that could lead to accidents,” Buttigieg told CNN on Tuesday.

    “We’re focusing on lessons learned when it comes to rail safety.”

    Source link

  • Union Pacific CEO to leave after push from activist shareholder | CNN Business

    Union Pacific CEO to leave after push from activist shareholder | CNN Business


    New York
    CNN
     — 

    Union Pacific shares jumped 10% in premarket trading Monday after the railroad company announced CEO Lance Fritz will leave the company by year-end, following a call by an activist hedge fund for his ouster.

    Union Pacific just reported a record profit for the second straight year. But the hedge fund, Soroban Capital Partners, put out a statement saying that Fritz had lost the confidence of “shareholders, employees, customers, and regulators.”

    “UNP’s total shareholder return has been the worst in the industry,” said Soroban’s letter to the board. “Among all S&P 500 companies, UNP is rated by employees as the worst place to work and has the lowest employee CEO approval rating (ranked 500th out of 500 in both),” said the letter. And it said that the Surface Transportation Board, one of the regulators of freight railroads, ranked Union Pacific as providing the worst service among the major railroads.

    Soroban only owns about 1% of Union Pacific’s shares.

    “It is my honor and privilege to serve this great company. I am proud of our team and all we have built together,” said Fritz in a statement. “Union Pacific has been my home for 22 years and I am confident that now is the right time for Union Pacific’s next leader to take the helm.”

    Union Pacific said its process of looking for a new CEO had been ongoing for a year and that it decided to make a public statement in light of Soroban’s public call for a change.

    “The Board is grateful to Lance for his unwavering leadership, dedication and oversight in driving our company forward over the last eight years as CEO. Lance created an environment that has allowed Union Pacific to make a measurable impact with our customers, communities and employees alike,” said Michael McCarthy, lead independent director of the Board. “He has capably led our company during a time of significant challenge and change.”

    But, overall, the level of service and on-time performance in the freight railroad industry has been declining for years, as the railroads attempted to trim costs and staffing.

    Despite the industry’s record profits, stocks in major freight railroads have lagged other sectors. Shares of Union Pacific

    (UNP)
    are down about 20% over the last 12 month through Friday’s close, even with a rebound in share price so far in 2023. That’s worse than the drop in share price at other major railroads like Norfolk Southern

    (NSC)
    and CSX

    (CSX)
    .

    As far as employee relations, Union Pacific was seen as a leader among freight railroads in contentious labor negotiations last year that would have resulted in an economy-crippling strike had Congress not stepped in and imposed an unpopular contract. The contract granted employees an immediate 14% raise, including back pay, but denied them the paid sick days they had sought.

    Union Pacific and other railroads argued during the negotiations that it couldn’t afford to meet union demands for paid sick days, even though the unions estimated it would cost the entire industry $321 million a year at a time when the railroads are each making billions of dollars in profits.

    Union Pacific last year earned a net income of $7 billion, up about $500 million, or 7%, from the previous record profit it posted for 2021. Total employee compensation for the year came to $4.6 billion, far less than the $6.3 billion that Union Pacific spent repurchasing shares of stock in the period.

    Last week, Union Pacific reached an agreement with two of its smaller unions granting their members up to four sick days a year, as well as greater flexibility to use three personal days as sick days without prior notice and approval.

    “We will continue to work with other unions to address paid sick time solutions,” according to the company’s statement on sick pay last week. The move came after another major railroad, CSX, reached deals granting sick days with six of its unions. UP did act before a third railroad, Norfolk Southern, reached a deal with one of its unions on sick days in the wake of a major train derailment in East Palestine, Ohio, which released toxic materials into the area.

    Source link

  • East Palestine derailment spurs rare signs of bipartisan agreement on rail safety. Will Washington act? | CNN Politics

    East Palestine derailment spurs rare signs of bipartisan agreement on rail safety. Will Washington act? | CNN Politics

    Editor’s Note: Watch East Palestine, Ohio, residents pose questions to Norfolk Southern CEO Alan Shaw, Ohio Gov. Mike DeWine and EPA Administrator Michael Regan. “A CNN Town Hall: Toxic Train Disaster, Ohio Residents Speak Out” airs tonight at 9 p.m. ET on CNN.



    CNN
     — 

    A fiery train wreck that released toxic materials in an Ohio town is raising new questions in the halls of the nation’s capital over the regulation of the rail industry and if stricter measures could have prevented the disaster.

    News of the East Palestine, Ohio, derailment – and its potential harmful effects on the environment and health of local residents – has propelled both Democrats and Republicans in Congress to press the Biden administration on whether there’s enough oversight to keep rail workers and communities near railroads safe. And the supervising agency broadly responsible for regulating rail safety, the Department of Transportation, is calling on Congress to make it easier to institute safety reforms.

    This rare, general bipartisan agreement about taking action in the wake of the derailment follows years of Republicans generally supporting deregulation of the rail industry, including with the broad rollback of transportation rules during the Trump administration.

    Unions, current and former regulatory officials, and members of Congress from both parties have signaled some optimism about the possibility that the Ohio disaster may mark a rare opportunity for Washington to get something done to enhance the rail industry’s safety standards. But what’s unclear is whether there’s enough momentum for both parties in Congress to propel the issue forward into tangible actions. Nor is it clear whether the rail industry’s strong lobbying efforts will pare down any proposed measures or play a hand in eliminating them altogether.

    Transportation Secretary Pete Buttigieg said in an interview with CNN on Tuesday that that he’s fed up with the rail industry’s pressure campaigns to diminish regulatory reforms.

    “I’ve had it,” he said. “We have had situation after situation where even modest, reasonable reform gets just a full court press.”

    “I do think if the railroads, like Norfolk Southern, are in a mode right now where they’re saying, ‘We’re going to do everything it takes and everything we can.’ Let’s give them a chance to show it,” Buttigieg later added. “But let’s be very clear, I’m not waiting for them to do this work. I’m just saying they have a chance to put their money where their mouth is.”

    Experts point out several areas of opportunity to enhance rail safety and hold rail companies further accountable: updating trains’ braking system, shortening the lengths of freight trains, further separating cars with hazardous material, requiring more crew member be on board, and increasing penalties.

    Many of these proposals, experts say, have been around for decades, and have oftentimes been diminished or entirely eliminated after rail lobbying efforts. Data compiled by the nonprofit OpenSecrets show that Norfolk Southern spent $1.8 million on federal lobbying last year.

    Norfolk Southern posted record profits from railway operations of $4.8 billion in 2022, up from its previous record of $4.45 billion in 2021. The company did not respond to questions Wednesday on whether it expects to change its share repurchase plans in the wake of the derailment.

    “Unfortunately, derailments like this are preventable and they become inevitable when there’s more risk in the system,” Sarah Feinberg, a former administrator of the Federal Railroad Administration during the Obama administration, told CNN. “The industry has fought tooth and nail against safety regulations, but I also think that’s typical of any industry.”

    Lobbying influence from the rail industry is “a big problem and they have a stranglehold on Congress, especially in the Senate,” Greg Hynes, national legislative director for the SMART Transportation Division union, told CNN.

    “It’s all about the bottom line and they adhere to the operating ratios that Wall Street is so hungry for, which includes lowering head counts – which includes fewer safety inspections, fewer brake tests, fewer people doing the job that they need to do,” he added.

    Buttigieg recently sent a letter Sunday to Norfolk Southern CEO Alan Shaw demanding accountability and calling for greater safety regulations. And DOT subsequently announced on Tuesday that it would take a three-pronged approach to enhance rail safety – push companies to voluntarily adopt additional safety measures, call on Congress to do more and bolster administration efforts to regulate the industry.

    Among other plans to advance existing efforts or deploy existing funding, DOT says it’s initiating focused safety inspections as well as pursuing additional federal rulemaking on high-hazard flammable trains and electronically controlled pneumatic brakes.

    DOT also says it’s working to advance a proposed rule that would require a minimum of two crew members for most railroad operations. Leadership for Norfolk Southern met with Buttigieg and other DOT officials and expressed concerns about the proposed rule. Among other issues, Norfolk Southern argues it will lead to significant labor costs

    Crucial to efforts to enhance rail safety, administration officials and rail experts say, is Congress’ ability to untie the executive branch’s hands.

    DOT is asking Congress to increase the maximum fines that can be issued to rail companies for violating safety regulations. And similar to its regulatory efforts announced Tuesday, DOT is calling on Congress to expand the rules “governing high-hazardous shipments, including high-hazard flammable trains, pushing past industry opposition” and follow through “on new bipartisan support to modernize braking regulations and increase the use of electronically controlled pneumatic brakes.”

    “The apparatus that exists was to allow safety regulators to write and finalize common sense safety regulations that will protect people – protect their homes, protect their water, protect their children, protect their health – it’s totally broken,” Feinberg said. “And the reason it’s totally broken is because the Congress and others – other administrations – will insert themselves into the process and take it over … from safety regulators and say, ‘I know better and I’m going to protect the industry from whatever you’re trying to force its hand on.’”

    The American Association of Railroads, an industry group, has said that “until NTSB has completed their investigation, AAR will not comment on potential policy changes in relation to this event as the cause and any underlying factors have not yet been fully determined.” The NTSB is set to release a preliminary report on the derailment investigation Thursday morning.

    Congressional committees are set to review the environmental and safety impacts of the East Palestine derailment. Although efforts to enhance regulatory oversight of the rail industry have generally broken along party lines, some Republicans and Democrats appear to be moving in the same direction.

    Senate Commerce Committee Chair Maria Cantwell, a Washington state Democrat, sent a letter last week to seven of the largest railroad company CEOs, inquiring about safety practices involved in rail transportation of hazardous materials. She’s also requested a joint staff-level briefing with the Environment and Public Works Committee, asking federal transportation and environmental agencies to appear, according to Politico.

    House Transportation and Infrastructure Committee Chair Sam Graves, a Missouri Republican, scheduled a bipartisan briefing for members of the committee last week, and there may be further briefings for committee and all House members to help keep them informed of the status and relevant issues, Graves’ office told CNN.

    Republican Sens. J.D. Vance of Ohio and Marco Rubio of Florida sent a letter to DOT requesting information about the administration’s regulatory oversight, questioning whether the three crew members on board the Norfolk Southern train that derailed were enough to staff the 149-car locomotive.

    Sen. Ted Cruz of Texas, the leading Republican on the Senate Commerce committee, last week tweeted that he fully agreed with Minnesota Democratic Rep. Ilhan Omar, who wrote, in part, “We need Congressional inquiry and direct action from [Buttigieg] to address this tragedy.”

    Republican candidates for president Nikki Haley and former President Donald Trump have criticized President Joe Biden for not visiting the site of the derailment, arguing that his trip to Ukraine and Poland this week shows he’s more focused on a foreign crisis than what’s happening at home – an increasingly frequent critique of the president and his administration.

    Trump – whose administration sidelined the pending rule to require freight trains to have at least two crew members – appeared in East Palestine on Wednesday alongside Vance.

    Rubio and Buttigieg, meanwhile, are in a spat – with the secretary suggesting the senator was previously parroting lines from the rail industry and Rubio calling for Buttigieg’s resignation.

    “Anybody who has seen fit to get on television and talk about this incident, talk about this issue, can do right by the people of East Palestine and everybody else who lives near a railroad,” Buttigieg told CNN. “Not just when it comes to this case, but when it comes to the future, by getting on the right side of this issue, and helping to raise – not lower – the bar of accountability for the railroad industry.”

    Biden on Wednesday posted on Instagram about his phone call with his EPA Administrator Michael Regan and officials from Ohio and Pennsylvania to discuss the East Palestine situation. He also accused the Trump administration of limiting the ability to strengthen rail safety measures and said some of his current Republican critics were trying to dismantle the EPA.

    “The Department of Transportation has made clear to rail companies that their pattern of resisting safety regulations has got to change,” the caption stated. “Congress should join us in implementing rail safety measures. But the Department of Transportation is limited in the rail safety measures they can implement. Why? For years, elected officials – including the last (administration) – have limited our ability to implement and strengthen rail safety measures.”

    Following repeated calls for Buttigieg to visit the Ohio site, the secretary said earlier this week that he intended to visit East Palestine when the time was right. And then on Wednesday, DOT announced that he would visit on Thursday.

    A DOT spokesperson said Buttigieg had planned to go when it was “appropriate and wouldn’t detract from the emergency response efforts. The Secretary is going now that the EPA has said it is moving out of the emergency response phase and transitioning to the long-term remediation phase.”

    Source link

  • Norfolk Southern is paying $6.5 million to derailment victims. Meanwhile, it’s shelling out $7.5 billion for shareholders | CNN Business

    Norfolk Southern is paying $6.5 million to derailment victims. Meanwhile, it’s shelling out $7.5 billion for shareholders | CNN Business


    New York
    CNN
     — 

    Norfolk Southern CEO Alan Shaw pledged Tuesday the freight railroad will spend $6.5 million to help those affected by the release of toxic chemicals from its derailment nearly three weeks ago in East Palestine, Ohio. But in a plan released earlier this year, the company said it’s planning to spend more than a thousand times that amount — $7.5 billion — to repurchase its own shares in order to benefit its shareholders.

    The company spent $3.4 billion on share repurchases last year, and $3.1 billion in 2021, bringing its recent share repurchases to $6.5 billion. That towers over what it said is its financial commitment to East Palestine, which it said exceeds $6.4 million in direct aid to families and government agencies, in addition to what will be required in cleanup costs.

    There is no estimate as to the total cost to Norfolk Southern from the derailment, including the cost of cleanup that the Environmental Protection Agency says will be the railroad’s responsibility.

    It’s not clear how much of the accident’s cost will fall on Norfolk Southern. The company revealed Wednesday during a conference call with investors that it has as much as $1.1 billion worth of liability insurance coverage that it can draw upon to compensate third parties for losses caused by the accident. It also has about $200 million worth of insurance coverage to cover damage to its own property, such as tracks or equipment.

    In March 2022, Norfolk Southern

    (NSC)
    announced a new $10 billion share repurchase plan. Its latest annual financial report, filed just hours before the derailment this month, shows that it still had $7.5 billion available to buy additional shares under that repurchase plan as of December 31.

    Norfolk Southern did not respond to questions Wednesday on whether it expects to change its share repurchase plans in the wake of the derailment.

    The company also returned an additional $1.2 billion to shareholders in the form of dividend payments in 2022, and $1 billion in 2021, bringing total payments to shareholders to $4.6 billion last year and $4.1 billion in 2021.

    The shareholders did much better than the company’s 19,000 employees. Total employee compensation in 2022 came to $2.6 billion, up from $2.4 billion in 2021.

    The amount that Norfolk Southern and other major freight railroads are spending on shareholders got a lot of attention in December, when they successfully fought a move in Congress to require them to give hourly workers at least seven sick days a year as part of a labor contract imposed on the industry by Congress in order to avoid an economically crippling rail strike. And it’s getting new attention in the wake of the derailment, along with questions about whether the environmental disaster could have been avoided if the railroad had spent more on staffing and safety.

    “Corporations do stock buybacks, they do big dividend checks, they lay off workers,” said Democratic Sen. Sherrod Brown of Ohio, on CNN’s State of the Union on Sunday. “They don’t invest in safety rules and safety regulations, and this kind of thing happens.”

    The accident is under investigation by the National Transportation Safety Board. While the cause has yet to be determined, it is known that freight railroads have fought tougher safety rules in the past.

    One rule the industry successfully fought would have required a more modern braking system on trains carrying significant amounts of hazardous materials. The Federal Railroad Administration, which proposed the rule under the Obama administration, estimated a more modern braking system would reduce by nearly 20% the number of rail cars in a derailment that puncture and release their contents.

    The FRA estimated those better brakes would cost the entire industry $493 million, spread over a period of 20 years. The Association of American Railroads, the trade industry group that represents most US freight railroads, estimated a much greater cost — about $3 billion, but again, spread over 20 years. That would mean around $150 million a year for an entire industry that is earning billions of dollars of annual profits.

    Still, it was able to block the rule from ever taking effect, based partly on the argument it was too costly for the potential benefit.

    “The railroads are quick to point out their lack of funds to provide adequate staffing, paid sick leave and improved safety, yet they have billions of dollars to spend on stock repurchases,” said Eddie Hall, national president of the Brotherhood of Locomotive Engineers, the industry’s second-largest union behind the one that represents conductors.

    Share repurchases are designed to help increase the value of the stock by reducing the number of shares outstanding.

    In theory, each remaining share becomes more valuable since it represents a greater percentage of the company’s overall ownership. The earnings per share, a key measure used by investors to judge a company’s profitability, can rise even if the total dollars earned by the company goes down, as the pool of shares available to the public shrinks further.

    But Norfolk Southern’s profits aren’t going down. They’re going up — by quite a bit. It posted record profits from railway operations of $4.45 billion in 2021, and broke that record in 2022 when it earned $4.8 billion on that basis.

    Other freight railroads are also reporting improving profits, and have joined Norfolk Southern in massive share repurchases.

    Union Pacific

    (UNP)
    purchased $6.3 billion worth of shares in 2022, and has plans to purchase an additional 84 million shares, worth more than $16 billion at its current value. CSX repurchased $4.7 billion worth of shares last year and has plans to buy an additional $3.3 billion going forward. Like Norfolk Southern, both UP and CSX spent more on share repurchases than they did on total employee compensation.

    Share repurchases are not limited to the rail industry. Chevron

    (CVX)
    recently announced plans to repurchase $75 billion worth of its stock with windfall record profits that came from high oil prices. Across corporate America, share repurchases reached almost $1 trillion for the first time last year, coming in at $936 billion according to S&P Dow Jones Indices, up from $882 billion in 2021.

    Share repurchases are forecast to top $1 trillion this year.

    Source link