Joe Marusak has been a reporter for The Charlotte Observer since 1989 covering the people, municipalities and major news events of the region, and was a news bureau editor for the paper. He currently reports on breaking news. Support my work with a digital subscription
The proposed $85 billion merger of Union Pacific and Norfolk Southern railroads has lost the support of two of their biggest unions that represent more than half their workers because they’re worried the deal would increase safety risks, lead to higher shipping rates and consumer prices and cause significant disruptions.
The unions’ decision, which they plan to announce Wednesday, will make the Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes Division two of the most prominent critics of the deal to create the nation’s first transcontinental railroad. They join the American Chemistry Council, an assortment of agricultural groups, and competing railroad BNSF in raising concerns that this combination would hurt competition.
But the deal has picked up the support of the nation’s largest rail union that represents conductors and hundreds of individual shippers as well as an Oval Office endorsement from President Trump.
The U.S. Surface Transportation Board will begin weighing the opinions of all those stakeholders to determine whether the merger is in the public interest once the railroads file their formal application, which is expected later this week.
Unions finding fault
Union Pacific CEO Jim Vena has argued that creating a railroad that stretches from coast to coast would be good for the economy because it would be able to deliver shipments more quickly without handing them off between railroads in the middle of the country and that it could better compete against trucking. But the presidents of the Brotherhood of Locomotive Engineers and Trainmen and the Brotherhood of Maintenance of Way Employes Division unions – which are both affiliated with the Teamsters – said that after months of meetings with Vena and other executives, they have serious doubts about the potential benefits, and they said the promises Vena made to preserve jobs of all current employees aren’t detailed enough to be counted on.
“This proposed monopoly will end up costing businesses more and those costs will be passed on to consumers,” Brotherhood of Locomotive Engineers and Trainmen National President Mark Wallace said. “We believe this transcontinental railroad will make shipping by rail less attractive as the merged carrier passes off rail lines that serve small towns, factories and farms to short line railroads while running miles-long slow-moving trains on the main line. For rail customers it will be a choice between ‘Hell or the highway.’ ”
The unions say they’re worried that safety could deteriorate after a merger because Norfolk Southern has made some strides in the two and a half years since the disastrous East Palestine, Ohio, derailment.
Vena and Norfolk Southern CEO Mark George have said they’re optimistic the merger will get approved because they believe it will be good for the country, their customers and rail workers. Over 99% of shareholders of both lines voted in favor of the combination last month.
The Surface Transportation Board plans to review the deal under the tough new standard it adopted in 2001 after a series of disastrous rail mergers in the 1990s that led to delays of weeks or even months for some shipments. These untested rules require any merger of the six largest railroads to be in the public interest and show that it will enhance competition. When the Surface Transportation Board approved the first major rail merger in more than two decades two years ago, it used a less stringent standard allowing Canadian Pacific’s $31 billion acquisition of Kansas City Southern.
Outside views mixed
Transportation expert and DePaul University Professor Joe Schwieterman said many people have been raising concerns about the Union Pacific merger because of its scope and the likelihood that it could trigger another merger and leave companies with only two American railroads to deal with. But everyone wants to examine the details in the merger application closely, he said.
Currently, Norfolk Southern and CSX serve the eastern U.S. while Union Pacific and BNSF serve the west, and the two major Canadian rails compete where they can with their tracks crossing Canada and extending down into the United States and Mexico.
“This merger is like nothing we’ve seen before. It’s creating a railroad of such enormous scope that it’s somewhat of a paradigm shift,” Schwieterman said.
A merged Union Pacific would likely control more than 40% of the nation’s freight.
BNSF’s Chief of Staff Zak Andersen said his railroad, which is owned by Warren Buffett’s Berkshire Hathaway, is convinced this merger would be bad for competition and only lead to higher rates and fewer options for shippers.
“No customer is asking for this. This is strictly a Wall Street play for shareholders,” Andersen said.
Earlier this fall, Buffett and CPKC’s CEO both said they weren’t interested in any kind of rail merger right now. Instead, they believe the railroads should continue to find ways to cooperate to deliver shipments more quickly, which can be done without all the complications of a merger. Still, CSX decided to replace its CEO this fall with an executive who has a background leading companies through major mergers.
Norfolk Southern Corporation (NYSE: NSC) delivered impressive second quarter 2025 financial results on July 29, marking another milestone in the company’s operational turnaround while simultaneously confirming advanced merger discussions with Union Pacific that could create America’s first transcontinental railroad.
The Atlanta-based railroad giant reported quarterly revenue of $3.1 billion and income from railway operations of $1.2 billion, achieving an operating ratio of 62.2%. Diluted earnings per share reached $3.41, representing 8% growth year-over-year.
“This quarter, Norfolk Southern delivered another set of strong results — growing volumes, managing costs, and delivering 8% EPS growth,” said President and CEO Mark George. “While we remain clear-eyed about market uncertainty, our performance reflects the strength of our strategy and our ability to continue disciplined execution.”
Financial Performance Highlights
The railroad’s adjusted performance metrics paint an even stronger picture of operational excellence:
Adjusted operating ratio improved to 63.4%
Adjusted diluted earnings per share of $3.29
Railway operating revenues up 2% excluding fuel surcharge impacts
Volume growth of 1% year-over-year
Norfolk Southern raised its expected productivity savings target for 2025 to $175+ million, up from the previous guidance, as cost-control measures and targeted operational initiatives continue to yield strong results.
Historic Merger Announcement
In a groundbreaking development, Norfolk Southern and Union Pacific jointly announced an agreement to combine in a stock and cash transaction valued at $85 billion. Under the proposed terms, Norfolk Southern shareholders will receive 1.0 Union Pacific common share and $88.82 in cash for each share of Norfolk Southern stock.
The implied value of $320 per share represents a significant premium for Norfolk Southern investors. The merger would create the first modern West-to-East single-line freight railroad in the United States, fundamentally transforming how goods move across the country.
“A transcontinental railroad would benefit customers by eliminating the need for carrier handoffs in Chicago – a major source of congestion – and by helping reduce costly shipping delays,” explained industry analysts.
Operational Excellence Continues
Norfolk Southern’s operational improvements have been remarkable throughout 2025:
Reduced overtime by 20% in the second half of 2024
Accelerated train speeds across the network
Cut terminal dwell times significantly
Put 500 locomotives into storage during 2024 to optimize fleet utilization
Executive Vice President and COO John Orr has spearheaded these efficiency gains through innovative metrics like gross ton-miles per available horsepower, measuring how effectively the railroad uses its locomotive fleet to generate revenue.
Sustainability Leadership
The company continues to earn recognition for its environmental initiatives. Norfolk Southern received Toyota Logistics Services’ Environmental Leadership Award for its inaugural Climate Transition Plan and the Kaizen Award for continuous improvement across the organization.
The International Union of Railways also awarded Norfolk Southern the Sustainability Impact Award for achievements in climate change adaptation and resilience. The railroad helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail.
Regulatory Outlook and Industry Impact
The proposed merger faces a lengthy regulatory review process by the Surface Transportation Board (STB), which could take 19 to 22 months. The deal would reduce the number of Class I railroads from six to five, raising questions about competition in the freight rail industry.
However, the Trump administration’s more industry-friendly approach to merger reviews, with STB Chairman Patrick Fuchs advocating for faster timelines and a greater focus on competitive balance rather than blocking consolidation, may improve the merger’s prospects.
$150+ million in productivity savings (now raised to $175+ million)
1.5 point improvement in operating ratio
$2.2 billion capital expenditure plan
Resumption of share buyback programs
As Norfolk Southern navigates this transformative period, the company continues to demonstrate operational excellence while positioning itself for a historic merger that could reshape the North American rail landscape. With 198 years of history moving America’s goods and materials, Norfolk Southern stands ready to write its next chapter as part of a potential transcontinental railroad giant.
The combination of strong financial performance, operational improvements, and the prospect of creating America’s first coast-to-coast railroad positions Norfolk Southern at the forefront of the rail industry’s evolution. As the company awaits regulatory approval for the merger, it continues to deliver value to shareholders while maintaining its commitment to safety, sustainability, and service excellence.
Dakota Wealth Management grew its holdings in Norfolk Southern Co. (NYSE:NSC – Free Report) by 2.1% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 7,206 shares of the railroad operator’s stock after buying an additional 150 shares during the quarter. Dakota Wealth Management’s holdings in Norfolk Southern were worth $1,791,000 as of its most recent SEC filing.
Several other large investors have also made changes to their positions in the business. Boston Partners boosted its holdings in Norfolk Southern by 157.1% in the 1st quarter. Boston Partners now owns 2,890,665 shares of the railroad operator’s stock worth $735,749,000 after buying an additional 1,766,135 shares during the last quarter. Vanguard Group Inc. boosted its stake in Norfolk Southern by 5.9% during the 1st quarter. Vanguard Group Inc. now owns 19,623,690 shares of the railroad operator’s stock worth $5,001,490,000 after purchasing an additional 1,088,072 shares during the last quarter. American Century Companies Inc. raised its position in shares of Norfolk Southern by 17.3% in the second quarter. American Century Companies Inc. now owns 3,356,590 shares of the railroad operator’s stock valued at $720,626,000 after buying an additional 496,088 shares during the last quarter. EdgePoint Investment Group Inc. boosted its position in Norfolk Southern by 10.2% during the first quarter. EdgePoint Investment Group Inc. now owns 3,752,050 shares of the railroad operator’s stock worth $956,285,000 after acquiring an additional 347,852 shares during the last quarter. Finally, International Assets Investment Management LLC raised its holdings in Norfolk Southern by 23,037.4% in the 3rd quarter. International Assets Investment Management LLC now owns 349,143 shares of the railroad operator’s stock valued at $86,762,000 after acquiring an additional 347,634 shares during the last quarter. 75.10% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
NSC has been the subject of a number of recent research reports. Evercore ISI cut their target price on Norfolk Southern from $276.00 to $274.00 and set an “outperform” rating for the company in a research note on Wednesday. Barclays increased their price target on shares of Norfolk Southern from $275.00 to $290.00 and gave the company an “overweight” rating in a research note on Wednesday. Stephens reiterated an “equal weight” rating and issued a $263.00 price objective on shares of Norfolk Southern in a research report on Wednesday. Sanford C. Bernstein upped their price target on Norfolk Southern from $285.00 to $286.00 and gave the company an “outperform” rating in a research note on Wednesday, October 9th. Finally, Loop Capital increased their target price on shares of Norfolk Southern from $285.00 to $287.00 and gave the stock a “buy” rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have assigned a buy rating to the stock. Based on data from MarketBeat, Norfolk Southern has an average rating of “Moderate Buy” and a consensus price target of $274.16.
NYSE:NSC opened at $251.09 on Friday. Norfolk Southern Co. has a 52 week low of $183.76 and a 52 week high of $263.66. The company has a fifty day simple moving average of $249.22 and a two-hundred day simple moving average of $237.00. The company has a quick ratio of 0.54, a current ratio of 0.73 and a debt-to-equity ratio of 1.21. The company has a market cap of $56.77 billion, a price-to-earnings ratio of 23.58, a price-to-earnings-growth ratio of 2.48 and a beta of 1.31.
Norfolk Southern (NYSE:NSC – Get Free Report) last released its earnings results on Tuesday, October 22nd. The railroad operator reported $3.25 EPS for the quarter, topping the consensus estimate of $3.11 by $0.14. The firm had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.08 billion. Norfolk Southern had a return on equity of 20.25% and a net margin of 19.85%. Norfolk Southern’s revenue for the quarter was up 3.3% on a year-over-year basis. During the same period in the previous year, the firm posted $2.65 EPS. As a group, equities analysts anticipate that Norfolk Southern Co. will post 11.78 earnings per share for the current fiscal year.
Norfolk Southern Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 20th. Investors of record on Friday, November 1st will be paid a dividend of $1.35 per share. The ex-dividend date is Friday, November 1st. This represents a $5.40 dividend on an annualized basis and a dividend yield of 2.15%. Norfolk Southern’s payout ratio is 50.70%.
Insider Activity at Norfolk Southern
In other Norfolk Southern news, EVP Nabanita C. Nag sold 355 shares of the business’s stock in a transaction that occurred on Monday, July 29th. The shares were sold at an average price of $249.38, for a total transaction of $88,529.90. Following the completion of the transaction, the executive vice president now owns 1,488 shares in the company, valued at $371,077.44. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In other news, CEO Alan H. Shaw sold 51,325 shares of the firm’s stock in a transaction dated Friday, September 13th. The stock was sold at an average price of $255.98, for a total transaction of $13,138,173.50. Following the sale, the chief executive officer now owns 35,045 shares of the company’s stock, valued at approximately $8,970,819.10. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Nabanita C. Nag sold 355 shares of the business’s stock in a transaction that occurred on Monday, July 29th. The stock was sold at an average price of $249.38, for a total value of $88,529.90. Following the sale, the executive vice president now owns 1,488 shares of the company’s stock, valued at approximately $371,077.44. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have bought a total of 3,700 shares of company stock valued at $921,565 over the last 90 days. 0.19% of the stock is owned by corporate insiders.
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.
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Charlotte-Mecklenburg Police are investigating why a 37-year-old woman was lying on the tracks before a train hit and killed her Friday morning, July 26, 2024.
File Photo
Charlotte-Mecklenburg Police are investigating why a 37-year-old woman was lying on the tracks before a train hit and killed her Friday morning.
The woman died after a Norfolk Southern train hit her behind the 200 block of Peachtree Drive South about 9:45 a.m., according to a CMPD news release.
That’s between Interstate 77 and Nations Ford Road in southwest Charlotte.
Officers found the woman unresponsive lying on the railroad tracks. MEDIC pronounced her dead at the scene.
Police urged anyone who saw or has more information about the collision to call Detective Justin Kupfer of the CMPD major crash investigations unit at 704-432-2169, extension 1. Or call the Crime Stoppers anonymous tips line at 704-334-1600.
This is a developing story that will be updated.
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Joe Marusak has been a reporter for The Charlotte Observer since 1989 covering the people, municipalities and major news events of the region, and was a news bureau editor for the paper. He currently reports on breaking news. Support my work with a digital subscription
Norfolk Southern’s CEO will be under more pressure to improve profits after the railroad’s shareholders voted Thursday to elect three of the board members an activist investor nominated, but he won’t be fired right away.
Ancora Holdings had nominated seven directors as part of a bid to take control of the railroad’s 13-member board and overhaul its operations. The key support Ancora picked up from major investors, two major rail unions and proxy advisory firms wasn’t enough to persuade shareholders to elect Ancora’s entire slate.
Ancora’s Jim Chadwick blamed passive investors for failing to support the investors’ nominees. Chadwick promised to hold CEO Alan Shaw accountable and keep fighting to improve the railroad.
“For the passive investors. If anything should go wrong here and there’s another derailment and people die, this is on you,” Chadwick said. “You ignored the recommendation of the proxy advisors, the unions, the largest customer of the company. You gave us literally no support and we still won three board seats without you. What happens at Norfolk Southern now is on your firms and your conscience.”
The board members voted out included Chair Amy Miles.
Norfolk Southern’s stock price, which soared after Ancora announced its campaign to oust Shaw, immediately fell after the results of the vote were announced. It was trading down nearly 4% at $223.43 Thursday morning.
Shaw’s plan calls for keeping more workers on hand during a downturn to make sure the railroad is prepared to handle the eventual rebound in shipments once the economy recovers and continuing to invest in safety improvements to prevent derailments. He received the backing of the rest of rail labor, several key regulators and a number of the railroad’s customers.
“Norfolk Southern has persevered through several challenges over the last year. We have met every challenge and never lost sight of where we are taking our powerful franchise,” Shaw said. “We are keeping our promises and delivering tangible results, and there is more to do.”
Ancora had argued that Norfolk Southern should implement the industry standard Precision Scheduled Railroading operating model that is designed to minimize the number of workers, locomotives and railcars a railroad needs.
The Precision Scheduled Railroad operating model relies on running fewer, longer trains on a tighter schedule and switching cars between trains less often to streamline operations. Shaw had argued that running the railroad too lean would jeopardize the improvements in safety and service Norfolk Southern has seen since its disastrous February 2023 derailment in East Palestine, Ohio.
Rail unions have said they believe Precision Scheduled Railroading has made the industry more dangerous and derailments more likely because inspections are so rushed and preventative maintenance may be neglected.
For now, Shaw and the Chief Operating Officer he just hired in March, John Orr, will have more time to prove their strategy will work. NS paid CPKC railroad $25 million to get permission to hire Orr. But if they don’t bring Norfolk Southern’s profit margins in line with the rest of the industry, their jobs could still be in jeopardy.
“Your CEO has missed earnings estimates for six quarters in a row and destroyed a town in our own state,” said Chadwick, whose firm is based in Ohio. “And if this underperformance continues, we will hold you accountable. But we will work with you for the mutual benefit of all stakeholders.”
Ancora wanted to hire former UPS Chief Operating Officer Jim Barber to be the railroad’s next CEO and former CSX railroad operating chief Jaimie Boychuk as the chief operating officer. Barber has said keeping more workers on hand during slower times is wasteful and compared it to UPS keeping all its seasonal workers it hires for the holiday season on the payroll year round.
The investors had projected their plan would cut more than $800 million in expenses in the first year and another $275 million by the end of three years. Ancora said say they didn’t plan layoffs, but wanted to use attrition to eliminate about 1,500 jobs over time.
Norfolk Southern has said it’s own plan to make the railroad more efficient would generate about $400 million in cost savings over two years and improve its profit margin. But analysts have said its profits might still lag behind the other major freight railroads because they are all working to get more efficient too.
Norfolk Southern has agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment in February 2023 in eastern Ohio.
The company said the agreement, if approved by the court, will resolve all class action claims within a 20-mile radius from the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius from the derailment.
About 50 cars of the freight train – which had roughly 150 cars and three locomotives – derailed on the outskirts of East Palestine, near the Pennsylvania state line, with some cars transporting hazardous materials. An evacuation covered 1,500 to 2,000 of the town’s approximately 4,800 to 4,900 residents.
Norfolk Southern said Tuesday that individuals and businesses will be able to use compensation from the settlement in any manner they see fit to address potential adverse impacts from the derailment, which could include health care needs, property restoration and compensation for any net business loss. Individuals within 10-miles of the derailment may, at their discretion, choose to receive additional compensation for any past, current, or future personal injury from the derailment.
The company said that the settlement doesn’t include or constitute any admission of liability, wrongdoing, or fault.
The settlement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April 2024. Payments to class members under the settlement could begin by the end of the year, subject to final court approval.
Norfolk Southern has already spent more than $1.1 billion on its response to the derailment, including more than $104 million in direct aid to East Palestine and its residents. Partly because Norfolk Southern is paying for the cleanup, President Joe Biden has never declared a disaster in East Palestine, which is a sore point for many residents. The railroad has promised to create a fund to help pay for the long-term health needs of the community, but that hasn’t happened yet.
The plaintiffs’ attorneys said the deal is the result of a year of intense investigation of the derailment, and should provide meaningful relief to residents.
“This resolution comes shortly after the one-year anniversary of the disaster and will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals,” said Seth A. Katz of Burg Simpson Eldredge Hersh & Jardine, P.C., M. Elizabeth Graham of Grant & Eisenhofer P.A., Jayne Conroy of Simmons Hanly Conroy LLC and T. Michael Morgan of Morgan & Morgan, P.A.
The railroad also announced preliminary first-quarter earnings of 23 cents per share Tuesday to reflect the impact of the settlement.
Railroad CEO Alan Shaw, who is fighting for his job against an activist investor who wants to overhaul the railroad’s operations, said Norfolk Southern is “becoming a more productive and efficient railroad. There is still more work to be done to achieve industry-competitive margins.”
The railroad said even though volume was up 4% during the quarter, its revenue fell by 4% because of lower fuel surcharge revenue and changes in the mix of shipments it handled.
Ancora Holdings is trying to persuade investors to support its nominees for Norfolk Southern’s board at the railroad’s May 9 annual meeting.
Last week federal officials said that the aftermath of the train derailment doesn’t qualify as a public health emergency because widespread health problems and ongoing chemical exposures haven’t been documented.
The Environmental Protection Agency never approved that designation after the February 2023 Norfolk Southern derailment even though the disaster forced the evacuation of half the town of East Palestine and generated many fears about potential long-term health consequences of the chemicals that spilled and burned. The contamination concerns were exacerbated by the decision to blow open five tank cars filled with vinyl chloride and burn that toxic chemical three days after the derailment.
The head of the National Transportation Safety Board said recently that her agency’s investigation showed that the vent and burn of the vinyl chloride was unnecessary because the company that produced that chemical was sure no dangerous chemical reaction was happening inside the tank cars. But the officials who made the decision have said they were never told that.
The NTSB’s full investigation into the cause of the derailment won’t be complete until June, though that agency has said that an overheating wheel bearing on one of the railcars that wasn’t detected in time by a trackside sensor likely caused the crash.
The EPA has said the cleanup in East Palestine is expected to be complete sometime later this year.
Shares of Norfolk Southern Corp., based in Atlanta, fell about 1.3% before the opening bell Tuesday.
It’s been one year since the derailment of a Norfolk Southern freight train carrying toxic chemicals in East Palestine, Ohio, and local residents are still dealing with the health and environmental consequences. Roxana Saberi reports.
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The costs associated with Norfolk Southern’s fiery February derailment in Ohio have more than doubled to $803 million as the railroad works to clean up the mess and moves forward with all the related lawsuits.
Norfolk Southern recorded another $416 million charge related to the East Palestine derailment on Thursday as part of its second-quarter earnings after previously announcing a $387 million charge earlier this year. Most of the costs are related to the cleanup of the hazardous chemicals that were released, but $222 million is a combination of legal fees and the $63 million of assistance it has offered to the community. The company faces a number of class-action lawsuits as well as a suit filed by Ohio authorities and a federal civil suit brought by the Justice Department and the Environmental Protection Agency.
The derailment near the Ohio-Pennsylvania border prompted a national conversation about railroad safety after thousands of people had to evacuate when officials decided to blow open several tank cars filled with vinyl chloride, a gas used to make plastic, because they believed they might explode. The resulting fire sent a towering plume of black smoke over the town three days after the derailment spilled several other hazardous chemicals, including butyl acrylate, ethylene glycol monobutyl ether, ethylhexyl acrylate and isobutylene. The company said in February that the derailment contaminated at least 15,000 pounds of soil and 1.1 million gallons of water.
The $803 million cost estimate doesn’t include funds to compensate the East Palestine community for any long-term health effects, drop in home values or drinking water issues because those are still being negotiated, so the total will grow. Since the derailment, residents have expressed fears about drinking tap water, even though state officials say municipal drinking water is safe to consume.But Norfolk Southern also expects to eventually recover some of those costs from its insurance and lawsuits against other companies involved in the derailment.
The additional charges related to the derailment, combined with a 6% drop in the number of shipments the railroad delivered, more than halved the Atlanta-based company’s profit to $356 million, or $1.56 per share. That’s down from $819 million, or $3.45 per share, a year ago.
This photo taken with a drone on Feb. 4, 2023, shows portions of a Norfolk Southern freight train still on fire after it derailed on Feb. 3, in East Palestine, Ohio.
AP Photo/Gene J. Puskar
Without the derailment costs, Norfolk Southern says it would have earned $2.95 per share in the quarter, still well below Wall Street expectations. The analysts surveyed by FactSet Research generally expected Norfolk Southern to report earnings per share of $3.11.
Norfolk Southern’s revenue declined to $2.98 billion in the quarter, which also disappointed. Analysts were expecting $3.08 billion in revenue.
The railroad’s traffic was hurt by the derailment because Norfolk Southern had to operate with only one of its two tracks by East Palestine running on a busy corridor. But consumer demand for imported goods has also weakened, and Norfolk Southern’s main competitor in the east, CSX, has said it was able to pick up some of Norfolk Southern’s business in the wake of the derailment.
CEO Alan Shaw, who testified about the derailment before Congress in March, said Norfolk Southern’s service has improved to levels rivaling its 2019 performance before the deep cuts it made during the pandemic once it reopened both rail lines through East Palestine. The railroad has also been hiring aggressively over the past year to give it enough crews and other workers to handle all the freight.
The average speed of Norfolk Southern’s trains reached 21.5 mph this month on average, coming close to the 21.8 mph it recorded before the derailment in January.
Gov. Mike DeWine (R) on Monday requested that President Joe Biden make a major disaster declaration in Ohio over the fiery train derailment in East Palestine earlier this year.
In a letter to Biden this week, DeWine said at the moment “no unmet needs have been reported to the State,” because of the “voluntary actions” of railroad giant Norfolk Southern.
“The possibility remains that the voluntary support provided by Norfolk Southern could at some point in the future cease, and this Declaration is needed to ensure that the State and Federal government use all resources available to step in and provide the community with needed assistance,” the governor added.
If the company, for instance, were found not liable for damages in the town or new leadership were to step in and determine they no longer need to provide assistance in the area, the state would have to act, DeWine warned.
A Norfolk Southern train carrying freight, including tons of hazardous materials, from Madison, Illinois, to Conway, Pennsylvania, derailed on Feb. 3 in the town near the Ohio-Pennsylvania border.
Days after the derailment, authorities conducted a “controlled burn” of vinyl chloride, releasing toxic chemicals into the air, due to the potential for “a catastrophic tanker failure which could cause an explosion with the potential of deadly shrapnel traveling up to a mile.” They had previously evacuated everyone within a mile of the site.
But critics, including Pennsylvania’s Democratic Gov. Josh Shapiro, condemned Norfolk Southern at the time for mismanaging the derailment and failing to explore alternatives to burning toxic chemicals.
The company has also been fighting stricter safety regulations for years, the Lever reported.
DeWine said the clean-up of the site is ongoing, while those local to the area are still contacting authorities about health concerns related to the incident. Besides, the long-term health impacts of the event are unknown, he said, with many appearing uncertain about how to move on.
“Residents continue to report medical conditions and are concerned that the air and water were impacted by the chemicals released during this incident,” he wrote.
DeWine also cited the economic impacts of the derailment.
“Homeowners and business have seen property value decline and loss of business as people are hesitant to come into the community,” he wrote.
The National Transportation Safety Board in March launched a special investigation into Norfolk Southern after a series of accidents, including the East Palestine derailment.
The chair of NTSB revealed that hours of footage, which could have shed light on the cause of the derailment, were automatically deleted after the train went “immediately back in service following the accident.”
The Justice Department has sued the railroad giant over the environmental damage the train disaster caused.
No one was hurt when a Norfolk Southern train derailed Wednesday night in Western Pennsylvania. The train was not carrying any hazardous materials, officials said.
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Two weeks after the fiery derailment of a Norfolk Southern train hauling toxic chemicals, U.S. Environmental Protection Agency Administrator Michael Regan traveled to the rural town of East Palestine, Ohio, and urged area residents to “trust the government.”
“I know that’s hard. We know there’s a lack of trust,” Regan said during a Feb. 17 visit. “We’re testing for everything that was on that train.”
Securing public trust in such a conservative town and state was always going to be an uphill battle for the Biden administration. Ohio Republicans didn’t do the administration any favors, quickly and repeatedly condemning the federal response while applauding Republican Gov. Mike DeWine and state agencies despite their own missteps.
Public trust has only continued to crumble since Regan’s initial visit — especially when it became evident that responders weren’t initially testing for all hazardous materials on the train after all. Many area residents have been clear about their lack of confidence that officials have been transparent about current and future health and environmental risks.
“I don’t believe the government or railway company’s claims that our town is safe,” Greg Mascher, a village resident, wrote in a recent op-ed in The Guardian. “You hate to say that they’re lying, but they are.”
As authorities assured the community that the air and water were safe, residents and responders reported numerous symptoms, from sore throats and coughing to bloody noses and rashes.
The U.S. EPA and Ohio EPA, an unaffiliated state agency, have repeatedly stressed that they are supervising and overseeing the disaster response — namely, monitoring for toxic chemicals in the environment.
One of the primary concerns is exposure to dioxins, an extremely toxic class of chemicals thought to have been released into the environment when hundreds of thousands of pounds of vinyl chloride, a common organic chemical used in the production of plastics, were intentionally burned to prevent a potential explosion. Dioxins are linked to numerous serious and potentially deadly health problems, including cancer, developmental and reproductive problems, immune system damage and hormone disruption.
Portions of a Norfolk Southern freight train that derailed in East Palestine, Ohio, are pictured burning on Feb. 4, 2023.
Gene J. Puskar via Associated Press
On its website, Ohio EPA has published videos of agency officials collecting water samples and emphasizing the importance of ensuring their integrity. The U.S. EPA has promised to “immediately step in, conduct the necessary work, and then force Norfolk Southern to pay triple the cost” if the railroad’s cleanup activities fall short of EPA standards.
Yet two months after the disaster, amid mounting distrust and as lawsuits pile up against Norfolk Southern, the railroad giant maintains an outsized role in monitoring for contamination in and around East Palestine. Contractors on Norfolk Southern’s payroll — including one with a particularly checkered past — are leading the search for pollutants in water, soil and home air.
Several independent experts have condemned the testing to date as inadequate, pointing out that authorities have been slow to test for the full spectrum of potential contaminants. Critics have unsurprisingly compared Norfolk Southern’s involvement to a fox guarding the henhouse, and some argue that funding cuts at environmental agencies opened the door for Norfolk Southern to be heavily involved in studying its own chemical disaster.
Nicole Karn, a chemist and associate professor at the Ohio State University, called the chemical screening and reporting “sloppy” and “ridiculous.”
“In terms of trust, it would be helpful if the company responsible for the problem wouldn’t be in charge of cleanup,” she told HuffPost.
Andrew Whelton, an environmental engineer and professor at Purdue University, has investigated chemical risks in the wake of numerous industrial disasters. He said it is not uncommon for a responsible company to be involved in data collection after a spill or accident.
“What is uncommon,” he said, “is deferring to the party responsible for causing the injuries to inform how government agencies will make public health and safety decisions that pertain to acute, immediate health risks.”
‘There Needs To Be Somebody Running Point’
The response in East Palestine involves a small army of government agencies — the U.S. and Ohio EPAs, as well as the Columbiana County Health District — and railroad contractors operating in different bubbles with a patchwork of chemical testing regimes.
Whelton, who is leading an independent research team in East Palestine, has highlighted those inconsistencies in community presentations and social media posts. He says a big issue with the response is that no one is ensuring all agencies and private contractors are looking for the same contaminants.
“The distrust happened because officials did not understand the complexity of the disaster that they encountered,” he said. “They made a lot of decisions that were incorrect, they didn’t have the data to make the statements they made. And it turns out that when you look closely at the data they collected, many of the agencies were running in different directions and not testing for what they need to test for.”
For example, the U.S. EPA detected elevated levels of acrolein — a highly toxic substance found in smoke and a known respiratory irritant — in the air in East Palestine. But the state and railroad contractors have yet to test for it in drinking water or streams.
Whelton said that in his experience, such disorganization is “endemic to disaster response in the United States.”
“There needs to be somebody running point on this and providing the incident commander and the decision makers a big-picture perspective,” he said. “All the parties involved are operating in silos, even though they’re in the same room under unified command.”
We showed this slide again, which we compiled after reviewing government agency air and water test results.
Our prior analysis showed agencies were inconsistent in their testing.
— Andrew Whelton 🔥💧❄️🌪 (@TheWheltonGroup) April 3, 2023
Although the U.S. EPA is overseeing the cleanup in East Palestine, Whelton argues that government agencies charged with protecting public health and safety have effectively outsourced their responsibility to Norfolk Southern: The railroad giant is part of the “unified command” response team and its contractors have been allowed to craft chemical testing protocols that environmental regulators subsequently sign off on.
As HuffPost reported in mid-February, Ohio officials relied exclusively on a railroad contractor’s flawed water sampling to initially declare the village’s municipal water safe to drink. That contractor, Dallas-based consulting firm AECOM, told HuffPost at the time that it had followed a sampling plan designed by local health and safety agencies. It turns out that the sampling plan, which HuffPost obtained last month via a public records request, was not the work of state and local officials, but rather developed by AECOM on behalf of its client Norfolk Southern.
The railroad-funded sampling plan also did not initially call for testing for some of the hazardous materials that had been on the train, including chemicals 2-Butoxyethanol and isobutylene.
A water sample is collected from Leslie Run, a creek in East Palestine, Ohio, on Feb. 25.
Michael Swensen via Getty Images
2-Butoxyethanol, also known as ethylene glycol monobutyl ether, is a colorless liquid commonly found in paint thinners, degreasers and silicone caulk. Exposure to the chemical is known to cause eye and nose irritation, headaches and vomiting. Isobutylene is a highly flammable gas used to make rubber, plastics and aviation fuel, and inhalation can cause dizziness, nausea, vomiting and unconsciousness.
By the time AECOM had developed its plan and started testing municipal and private well water, alarming levels of 2-Butoxyethanol were turning up in creeks and other surface water near the derailment site. A sample collected the day after the derailment from Sulfur Run, a stream that runs through the heart of East Palestine, detected the chemical at 312 parts per million. Surface water samples collected closer to the derailment site on Feb. 9 and 10 detected levels as high as 848 parts per million.
The workplace exposure limit is 50 parts per million in air for an 8-hour work day. At 700 ppm in air, 2-Butoxyethanol becomes immediately dangerous to life and health, according to the Centers for Disease Control and Prevention. To remove chemicals from area creeks, contractors have used aeration devices that Whelton says essentially force those toxins into the air and create a chemical exposure risk.
AECOM’s plan seemingly set the stage for a deficient, disjointed sampling effort. The Ohio EPA stepped in to begin its own sampling of the East Palestine municipal water system on Feb. 21, but did not test for 2-Butoxyethanol in drinking water until March 7, according to HuffPost’s review of lab reports. AECOM and the Columbiana County Health District first tested for it on Feb. 28 and March 13, respectively.
Laura Fauss, the public information officer for the Columbiana County General Health District, told HuffPost that her department has followed the AECOM plan while performing its own testing. She called the plan a “living document” that was subsequently revised to include 2-Butoxyethanol and other chemicals of concern, and was reviewed by Ohio EPA and other members of unified command. (HuffPost has been unable to obtain an updated version of the sampling plan.)
“I can’t speak to why it wasn’t in there the first round,” she said of 2-Butoxyethanol.
Contractors conduct cleanup work in Leslie Run, a creek in East Palestine, Ohio, on March 9.
Michael Swensen via Getty Images
Jason Marshall, a spokesman for AECOM, did not address several of HuffPost’s specific questions or comment on the record about his previous inaccurate statement that government agencies created the sampling protocol.
“Following the events of February 3, 2023, AECOM was urgently engaged by Norfolk Southern to collect municipal and private potable water samples for testing and analysis by one of Norfolk Southern’s laboratory partners,” he said in an email statement. “The Potable Water Sampling Plan was developed in response to Norfolk Southern’s request for our services in accordance with prevailing industry standards and in coordination with the Ohio EPA, Ohio Division of Health and the Columbiana County Health District.”
AECOM, which developed the potable water sampling plan, is no longer involved in the East Palestine response, according to the company’s spokesman. Stantec, a Canadian consulting and engineering firm, replaced AECOM and took over drinking water testing in early March. It is not clear if Stantec is utilizing AECOM’s plan.
Ohio EPA, which has promised transparency in the wake of the disaster, did not respond to multiple requests for comment.
“I can commit to East Palestine that Governor DeWine and his cabinet will always tell you exactly what we know, what we don’t know yet, and what we are doing to find answers for the Village of East Palestine,” Ohio EPA Director Anne Vogel said during a March 28 congressional hearing on the derailment.
When confronted about what information the state had when it declared the town’s water safe, Vogel and DeWine have both provided dodgy, if not outright misleading, answers.
here we go again…
Asked yesterday if Ohio officials only had railroad-funded municipal water quality results when they gave E. Palestine residents the all clear, OH EPA Dir. Anne Vogel told a reporter “No”
either Vogel misinformed or agency sitting on data
Further undermining the cleanup are the many perceived conflicts of interest. At least four companies on Norfolk Southern’s payroll are currently involved in the search for contamination. The railroad, of course, has a vested interest in minimizing its own liability.
The Center for Toxicology and Environmental Health, known commonly by its acronym CTEH, is testing air quality in East Palestine homes and designed the air sampling protocol. The U.S. EPA, which took control of the derailment response on Feb. 21, reviewed and approved CTEH’s plan, ProPublica reported.
But independent experts told ProPublica that the air testing is inadequate to protect public health, in part because CTEH is not sampling for the full spectrum of chemicals involved in the accident.
CTEH has a long,controversial history of working for corporate giants in the wake of disasters, including oil company BP following the Deepwater Horizon spill, and of downplaying associated health risks. A toxicologist told The New York Times in 2010 that CTEH is “paid to say everything’s OK.”
CTEH was once more direct about the services it could offer clients. In language that has since been deleted from its website, CTEH “explained how the data it gathers about toxic chemicals can be used later to shield its clients from liability in cases brought by people who say they were harmed,” ProPublica reported.
CTEH is also testing surface water in and around the derailment site. Its parent company, Montrose Environmental Group, also owns Environmental Standards, Inc., a consulting firm that Norfolk Southern separately hired to assess a third-party lab’s reports on those samples.
Karn, the Ohio State professor, drew attention to that concerning relationship in post to Twitter: “[Norfolk Southern] is paying a company (CTEH, owned by Montrose) with a conflict of interest to collect samples, send those samples off to a lab (Pace, who can provide detailed reports) and then using Environmental Standards (owned by Montrose) to interpret those reports and obfuscate results.”
NS is paying a company (CTEH, owned by Montrose) with a conflict of interest to collect samples, send those samples off to a lab (Pace, who can provide detailed reports) and then using Environmental Standards (owned by Montrose) to interpret those reports and obfuscate results.
A separate railroad contractor, Arcadis, is the architect of a plan to test soil for dioxins and other chemicals. Independent experts told The Guardian that that plan is also flawed and “unlikely to give a complete picture” of contamination. More than 100 local and national organizations sent a letter to U.S. EPA leaders last month demanding independent dioxin testing.
“To date, Norfolk Southern has done an extremely poor job of building trust with the community of East Palestine and other communities impacted by the disaster,” the letter reads. “To ensure this testing is adequately conducted, and to rebuild public trust, we strongly recommend the U.S. EPA itself conduct the dioxin sampling or hire its own consultants to conduct the testing. Norfolk Southern should not be in charge of the dioxin sampling.”
The U.S. EPA added to the pile of potential conflicts of interest in East Palestine by hiring consulting firm Tetra Tech Inc. to prepare air monitoring reports and maps. A subsidiary of the company, Tetra Tech EC, is currently being sued by the Department of Justice over alleged false invoices for nuclear remediation work at Hunters Point Naval Shipyard in San Francisco. In 2018, two Tetra Tech supervisors pleaded guilty and were sentenced to eight months in prison for falsifying soil samples as part of the cleanup.
Norfolk Southern and Tetra Tech have the same top two shareholders: The Vanguard Group and BlackRock.
The U.S. EPA did not respond to HuffPost’s requests for comment.
Many have condemned government agencies for deferring to companies on Norfolk Southern’s payroll. And some wonder if that arrangement isn’t a natural symptom of deep budget and staffing cuts at environmental agencies.
Funding Freefall
Since its creation in 1972, one of the core responsibilities of the Ohio EPA has been to monitor air, water and soil to ensure environmental standards are being met.
But its resources have dried up over the last two decades. Agency funding dropped more than 30% over a 20-year period, from approximately $302 million in 2003 to $207 million in 2022, when adjusted for inflation, according to an analysis from the Ohio Environmental Council, a statewide environmental advocacy organization. Staffing levels declined 14% from 2008 to 2018, and fines assessed for environmental penalties dropped 48% in 2018 when compared to the prior four-year average, The Columbus Dispatch found.
“It seems clear that the lack of legal authority as well as year-over-year funding reductions that the Ohio EPA has experienced really did contribute to Norfolk Southern playing an outsized role in a lot of the initial response decision-making,” Carol Kauffman, executive director of the Ohio Environmental Council, told HuffPost.
Many of those state-level reductions coincided with the exodus of some 1,200 employees from the U.S. EPA during the industry-friendly Trump administration.
“If we continue to defund agencies that are in place to keep us safe and protect our environment, they are going to be less equipped to do so,” Kauffman said, adding that a lack of investment fuels the sort of cycle of distrust that is on full display in East Palestine.
George Elmaraghy, a commissioner for the Ohio River Valley Water Sanitation Commission and former chief of Ohio EPA’s surface water division, applauded Ohio EPA’s disaster response and said Norfolk Southern needs to be responsible for long-term pollution monitoring. He said it is not unusual for a company to craft testing protocols and for government agencies to review those plans and supervise to ensure the cleanup is done right.
“That’s the way to do it,” he said. “The state does not have the capacity to deal with all this stuff at the same time. A state like Ohio has several spills going at the same time.”
David Michaels, a professor at George Washington University and former administrator of the Occupational Safety and Health Administration, argues the key to securing public trust during chemical spills and other disasters is for polluters like Norfolk Southern to foot the bill for testing and research — then “get out of the way.”
“The bottom line is that scientific investigation into the potential harms of products and activities should be paid for by producers of those products and activities,” he wrote in an opinion piece in Time magazine last month. “But the research should be planned, conducted, analyzed, and interpreted by independent scientists, not ones with financial conflicts of interest. Only then can we have confidence in the results.”
Multiple Norfolk Southern train cars have derailed in the Pittsburgh area, KDKA has reported. Dispatch told KDKA that the five empty cars derailed by West Carson and Telford streets near Brunot Island just after 12:30 p.m. local time.
No injuries or hazards have been reported, but this is the third derailment in two months for the beleaguered railroad company. In March, a Norfolk Southern train derailed in Alabama hours before the CEO testified to Congress, as the company faced increasing scrutiny on its safety practices. Thirty train cars derailed in the White Plains, Alabama, area at around 6:45 a.m. local time, the Calhoun County Emergency Management Agency said on its Facebook page.
In early February, a train derailment in East Palenstine, Ohio, led to the evacuation of half of the 5,000 residents when responders intentionally burned toxic chemicals in some of the derailed cars to prevent an uncontrolled explosion.
Government officials say tests haven’t found dangerous levels of chemicals in the air or water in the area, but many residents remain concerned about their long-term health.
The Department of Justice filed a lawsuit against the railroad company over the environmental damage caused by the derailment. The state of Ohio filed a lawsuit to ensure Norfolk Southern pays for the cleanup and environmental damage.
Norfolk Southern CEO Alan Shaw has repeatedly apologized for the impact of the derailment and the company has pledged to pay for the cleanup. The railroad has promised more than $20 million to help the Ohio community recover while also announcing several voluntary safety upgrades.
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The Justice Department has filed a lawsuit against Norfolk Southern over last month’s toxic train derailment in East Palestine, Ohio, which forced thousands of evacuations and seeped dangerous chemicals into the surrounding area.
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The Department of Justice and the Environmental Protection agency have filed a complaint against Norfolk Southern for the train derailment that spilled hazardous chemicals in East Palestine, Ohio.
The civil complaint, announced Friday, is seeking “penalties and injunctive relief for the unlawful discharge of pollutants, oil and hazardous substances under the Clean Water Act.” The complaint also seeks declaratory judgment for past and future costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
“When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” said Attorney General Merrick B. Garland in the news release announcing the complaint. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”
In the East Palestine derailment, on Feb. 3, 38 cars of a 151-car train derailed and 12 others caught on fire. Eleven of the derailed cars contained hazardous materials, including vinyl chloride, butyl acrylate, ethylene glycol monobutyl ether, ethylhexyl acrylate and isobutylene, which are widely considered to be toxic. Chemicals were released into the air in a controlled release and burn to reduce the danger of an explosion. Residents were also evacuated for several days.
Since returning home, some residents have reported health problems, including bronchitis and burning sensations. There have also been wildlife deaths, including tens of thousands of dead fish in waterways within the 7.5 mile radius, and concerns about air and water quality.
“From the very beginning, I pledged to the people of East Palestine that EPA would hold Norfolk Southern fully accountable for jeopardizing the community’s health and safety,” said EPA Administrator Michael S. Regan in the news release. “No community should have to go through what East Palestine residents have faced. With today’s action, we are once more delivering on our commitment to ensure Norfolk Southern cleans up the mess they made and pays for the damage they have inflicted as we work to ensure this community can feel safe at home again.”
The state of Ohio sued Norfolk Southern on March 14, to ensure that the company pays for the cleanup and environmental damage caused by the derailment, as well as fund future groundwater and soil monitoring. In late February, the EPA issued an order requiring Norfolk Southern to develop and implement plans to address environmental contamination and pay for EPA response costs associated with the order.
Since that order was issued, the EPA has overseen the removal of 9.2 million gallons of liquid wastewater and 12,391 tons of contaminated soils and solids. Those materials have been shipped off-site.
“Last month, the East Palestine community was upended by a horrific train derailment. By filing this complaint today, we are demanding accountability from Norfolk Southern for the harm this event has caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division in the news release. “We will tirelessly pursue justice for the people living in and near East Palestine, who like all Americans deserve clean air, clean water, and a safe community for their children.”
The news release said that the EPA and other federal agencies will continue to investigate the crash, and take further actions against Norfolk Southern “as warranted in the future as investigatory work proceeds.”
Correction: A previous version of this story incorrectly stated that the loose cars were found in the East Palestine, Ohio, train derailment. The story has been updated to show that Norfolk Southern was referring to the derailment in Springfield, Ohio.
Norfolk Southern — the railway company whose train derailed last month in East Palestine, Ohio, contaminating the surrounding area with toxic chemicals — announced Thursday night that it had determined that some of its railcars involved in a different derailment had loose wheels.
During its cleanup of a derailment site in Springfield, Ohio, Norfolk Southern investigators discovered that a “specific model and series of railcars had loose wheels,” the company said in a news release Thursday night. Investigators called the discovery “an urgent safety issue.”
The wheels came from “a series of recently acquired cars from a specific manufacturer,” Norfolk Southern said. Norfolk Southern did not identify the manufacturer, or say if or how many of the railcars specifically involved in the Springfield crash were part of that model and series.
The Springfield derailment occurred on Sunday. Twenty cars of a 212-car train derailed, leading about 1,000 residents to shelter in place as a precaution, CBS Pittsburgh reported. About 1,500 people lost power. No toxic chemicals were involved in the derailment.
A Norfolk Southern contractor walks away from the tracks as a train approaches on March 9, 2023, in East Palestine, Ohio.
Michael Swensen / Getty Images
The Federal Railroad Administration and the National Transportation Safety Board were “immediately notified and began inspecting other cars from this series on our network,” Norfolk Southern said.
The company added that the cause of the crash remains under investigation.
The announcement came on the same day that Norfolk Southern CEO Alan Shaw appeared before a Senate panel to address the East Palestine crisis and several recent derailments of Norfolk Southern trains, including one that occurred earlier Thursday in Alabama. Shaw vowed the company “will clean the site thoroughly, and with urgency. We are making progress every day.”
He added that the company had also slated $20 million for reimbursements and investments for families and first responders effected by the incident.
On Feb. 3, a Norfolk Southern train carrying hazardous materials derailed in a fiery crash in East Palestine. Of the 38 cars that derailed, about 10 contained hazardous materials. Hundreds of residents were evacuated, and crews later conducted a controlled release of toxic chemicals, including vinyl chloride, because of the risk that the derailment could cause an explosion.
State and federal officials have faced significant criticism over their response to the East Palestine incident, with local residents concerned that the contamination to the area could pose significant long-term health risks.
Norfolk Southern — the railway company whose train derailed last month in East Palestine, Ohio, contaminating the surrounding area with toxic chemicals — announced Thursday night that it had determined that some of its railcars, of a specific make and model, had loose wheels.
During its cleanup of the derailment site, Norfolk Southern investigators discovered that a “specific model and series of railcars had loose wheels,” the company said in a news release Thursday night, calling the discovery “an urgent safety issue.”
The wheels came from “a series of recently acquired cars from a specific manufacturer,” Norfolk Southern said.
Norfolk Southern did not identify the manufacturer, or say if or how many of the railcars specifically involved in the East Palestine crash were part of that model and series.
A Norfolk Southern contractor walks away from the tracks as a train approaches on March 9, 2023, in East Palestine, Ohio.
Michael Swensen / Getty Images
The Federal Railroad Administration and the National Transportation Safety Board were “immediately notified and began inspecting other cars from this series on our network,” Norfolk Southern said.
The company added that the cause of the crash remains under investigation.
The announcement came on the same day that Norfolk Southern CEO Alan Shaw appeared before a Senate panel to address the East Palestine crisis and several recent derailments of Norfolk Southern trains, including one that occurred earlier Thursday in Alabama. Shaw vowed the company “will clean the site thoroughly, and with urgency. We are making progress every day.”
He added that the company had also slated $20 million for reimbursements and investments for families and first responders effected by the incident.
On Feb. 3, a Norfolk Southern train carrying hazardous materials derailed in a fiery crash in East Palestine. Of the 38 cars that derailed, about 10 contained hazardous materials. Hundreds of residents were evacuated, and crews later conducted a controlled release of toxic chemicals, including vinyl chloride, because of the risk that the derailment could cause an explosion.
State and federal officials have faced significant criticism over their response to the East Palestine incident, with local residents concerned that the contamination to the area could pose significant long-term health risks.