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US offers mixed review of Norfolk Southern safety culture By Reuters

August 9, 2023
in Stock Market
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US offers mixed review of Norfolk Southern safety culture
© Reuters. FILE PHOTO: A Norfolk Southern practice rests close to the College of North Carolina’s vitality technology plant in Chapel Hill, North Carolina, U.S. August 11, 2022. REUTERS/Jonathan Drake/File Picture

By David Shepardson

WASHINGTON (Reuters) – U.S. railroad regulators on Wednesday supplied a blended overview of Norfolk Southern (NYSE:)’s security tradition after a Feb. 3 derailment in East Palestine, Ohio, triggered vehicles carrying poisonous vinyl chloride and different harmful chemical substances to spill and catch fireplace.

The Transportation Division’s Federal Railroad Administration (FRA) additionally disclosed it’s contemplating enforcement actions on plenty of points, together with monitor upkeep, inspection, restore practices and hours of service laws.

FRA discovered the railroad regularly targeted solely on imposing compliance with minimal security requirements and didn’t shortly reply to an earlier 2022 audit. However the overview praised constructive adjustments and renewed dedication proven by firm management to enhance security.

Inspections in March recognized over 100 defects throughout 95 miles (153 km) of Norfolk Southern territory “and FRA is contemplating enforcement actions primarily based on these defects. Additional, reviewing the upkeep and inspection historical past of the territory recognized a failure to prioritize crucial security work vital to make sure protected operation.”

Norfolk Southern didn’t instantly remark Wednesday however CEO Alan Shaw has stated the railroad was dedicated to enhancing its security tradition.

“We’ll make investments on this, we’ll put money into additional time, we’ll hearken to our staff and we’ll make it actually clear by our communications and our actions that we’re investing within the security tradition,” Shaw stated in a Could 4 interview with the Nationwide Transportation Security Board.

The report discovered Norfolk Southern had not moved shortly to embrace findings from the 2022 audit and famous little motion within the final 12 months. “It’s clear that (Norfolk Southern) doesn’t place an pressing precedence on making use of classes realized from the audit and placing corrective actions in place,” the FRA stated.

The FRA stated whereas it discovered enforcement points the aim of the protection evaluation was “to discover points of the railroad group and operations affecting security in methods that aren’t essentially addressed by guidelines and laws.”

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