Trainwreck… It’s nearly a year since a Norfolk Southern freight train carrying toxic chemicals derailed in East Palestine, Ohio, raising serious questions about the US rail industry’s safety practices. While the EPA has said drinking water, air, and soil aren’t a danger to local residents, many remain skeptical — and the site itself is still a cleanup zone. Now:
Costs keep growing: Norfolk estimates the total cost of the derailment will be $1.1B+ (it still faces unsettled lawsuits and penalties). Its quarterly profit fell 33%.
Local issues are ongoing: Some small businesses near the crash site remain closed, while others have reported significant losses. Norfolk plans to overhaul the town’s park for $25M, part of its $74M+ recovery fund pledge.
Legislation hasn’t passed: The bipartisan Railway Safety Act has stalled in the Senate because of a lack of GOP support. Transportation Sec. Buttigieg urged Congress to pass the bill last week, and President Biden is expected to visit the crash site this month.
Still doesn’t track… Despite increasing scrutiny over safety, derailments increased 14% overall last year for the top five US freight railroads. BNSF, Union Pacific, CSX, and Canadian National all had more rail accidents through October (Norfolk didn’t, though it’s had other high-profile problems, including the death of a conductor). And industry-wide incidents of overheating wheel bearings (frequently blamed for Norfolk’s Ohio crash) more than doubled on the year.
Dusting isn’t the same as a deep clean… Railroad safety officials and workers have blamed industry-wide profit pushes for the uptick in accidents. Precision-scheduled railroading — a profit-boosting management model that’s seen trains lengthened and workers laid off — is reportedly still the leading philosophy at Norfolk: last week, the company said it would cut 7% of managers and run more trains with the same number of workers this year.