Norfolk Southern Corp. CEO Alan Shaw will tell senators that the carrier is “committed to learning” from the train derailment in East Palestine, Ohio and “making this right” for the local community affected by the disaster. The CEO will give testimony to the Senate Committee on Environment and Public Works Thursday.
Shaw will also highlight Norfolk Southern’s commitment to the local community in East Palestine, according to prepared testimony obtained by MarketWatch.
“I am deeply sorry for the impact this derailment has had on the people of East Palestine and surrounding communities, and I am determined to make it right,” he will say, according to the prepared testimony. “On behalf of the more than 19,700 hard-working employees of Norfolk Southern, I pledge that we won’t be finished until we make it right.”
The CEO plans to tell senators that, to date, Norfolk Southern has committed to reimbursements and investments of more than $20 million in total, including by helping more than 4,200 families through our Family Assistance Center located in East Palestine. “I am going to see this through,” he will say, according to the prepared remarks. “There are no strings attached to our assistance—if residents have a concern, we want them to come talk to us. I understand how much East Palestine means to each resident, and we are committed to making this right.”
Norfolk Southern’s stock, which has fallen 13.8% since the Feb. 3 derailment, rose 0.1% before market open Thursday.
No one was killed or injured in the derailment, but the incident has been described as a “PR nightmare” for Norfolk Southern and the rail industry. The derailed cars included 11 tank cars carrying hazardous materials that subsequently ignited, fueling fires that damaged an additional 12 railcars, according to the National Transportation Safety Board.
Related: ‘Norfolk Southern will pay for the harm it has caused’ in Ohio derailment, says GOP senator
Shaw will provide senators with an update on the company’s environmental remediation efforts. “I have visited the East Palestine area frequently since the accident. I’ve met with residents of the community,” he plans to say. “I’ve heard their concerns, and I understand why they are worried. Their feedback has informed our approach.”
The CEO will explain that Norfolk Southern’s specialists remain “on scene” in East Palestine, assisted by multiple derailment and environmental contractors. “These teams have contained, diverted, and treated affected portions of nearby waterways, have flushed nearly a mile of surface waterways, and are capturing rainwater within the contaminated areas for temporary storage and disposal,” he will say, according to the prepared remarks. “To date, we have recovered and transported more than 3.5 million gallons of potentially affected water from the site for disposal at EPA-approved facilities.”
“We have removed waste to landfills specifically engineered and permitted to safely handle this type of material,” Shaw plans to say. “Our work will continue until the job is done.” The waste has been removed to landfills “specifically engineered and permitted to safely handle this type of material,” according to the CEO’s prepared remarks.
The CEO will describe Norfolk Southern’s commitment to safety in his testimony. “We are also committed to learning from this accident and working with public officials and the industry to make railroads even safer,” he plans to say. “In the meantime, we have already launched a series of immediate steps to enhance safety, based on the facts in the National Transportation Safety Board’s preliminary report.”
The company recently announced a new six-point safety plan in the wake of the derailment. Federal officials have said an overheated bearing on a railcar was the likely cause of the derailment.
Related: After disastrous Ohio derailment, Norfolk Southern announces 6-point safety plan
“[National Transportation Safety Board] Chair [Jennifer] Homendy has said publicly that the derailment occurred at the twenty-third car, a hopper car, with a particular focus on a catastrophic failure of the wheel bearing on this car,” Shaw plans to tell senators. “This car carried plastic pellets, and it was the combination of those pellets and a hot axle that appear to have started the fire.”
“Neither Norfolk Southern nor the other Class I railroads own plastic-pellet hopper cars,” the CEO plans to say. “That’s one reason why an industry-wide comprehensive approach, including railcar owners, car manufacturers, leasing companies, equipment makers, and the railroad companies, is essential to help improve safety as the rail industry continues to provide the logistical infrastructure that enables the United States’ economy to grow.”
In addition to Norfolk Southern, three other U.S. railroad carriers are designated as Class I: CSX Corp.
CSX,
Union Pacific Corp.
UNP,
and privately held BNSF. A Class I carrier is defined as any carrier earning annual revenue greater than $943.9 million, according to the U.S. government’s Surface Transportation Board.
Brotherhood of Locomotive Engineers and Trainmen National President Eddie Hall told MarketWatch that he wants to see the Norfolk Southern CEO and the broader rail industry tackle safety issues.
“I hope that Alan Shaw will take the lead on rail safety, bringing the issues highlighted by the derailments in Ohio to the forefront, which includes the need for two-man crews, reduce train length, and an increase in the frequency of rail equipment inspections,” he said, in a statement. “What the public needs to understand is that this is not a Norfolk Southern problem, this is a rail industry problem, if not addressed what has happened in Ohio will happen again.”
Now read: Ohio derailment a ‘PR nightmare’ for Norfolk Southern and the rail industry
On the eve of Shaw’s testimony Sen. Shelley Moore Capito of West Virginia said that the rail carrier will pay for the environmental impact of the disastrous train derailment in East Palestine, Ohio.
“Norfolk Southern will pay for the harm it has caused, as required by the CERCLA Act, which is the Comprehensive Environment Response, Compensation, and Liability Act,” said Capito, who is the top Republican member of the committee. “Norfolk Southern will be held completely liable, and no expense should be spared in their cleanup efforts.”
Additional reporting by Bill Peters.
