By Railfan & Railroad Staff
A derailment involving three Norfolk Southern trains over the weekend in Pennsylvania came at an inopportune time for the Class I as it fights off an attempt by unhappy shareholders to replace its board and executive management.
On Saturday morning near Lower Saucon Township, Pa., an eastbound train struck a stopped NS train on the same track, according to the National Transportation Safety Board, which launched an investigation into the incident. That initial collision resulted in equipment striking a westbound train on an adjacent track. The derailment sent at least two locomotives into the nearby Lehigh River. NS officials say no one was injured and no chemicals were spilled.
Within hours of the wreck, Ancora Holdings Group, LLC — a holding company currently leading an effort to oust NS’ current management — issued a statement calling for the immediate resignation of CEO Alan Shaw. In recent weeks, Ancora has said it wants to make NS a safer railroad. But others, including U.S. Surface Transportation Board Chairman Martin J. Obermann, have been skeptical of its motives.
“We hope the crew and everyone in Lower Saucon Township are unharmed by yet another derailment of a Norfolk Southern train,” Ancora officials wrote in a statement. “Although our fiduciary obligation is to pursue optimal returns for the pensions, family offices and other clients who entrust us with their capital, nothing takes precedence over the health and well-being of individuals and communities. Our proposed slate and management team are unanimous in their view that Norfolk Southern must become a safer and more reliable railroad before it can ever reach its full potential. Following this latest derailment, we call for the immediate termination of CEO Alan Shaw and stand ready to engage with the Company about an orderly reconstitution of the Board and a transition to capable management with a track record of actually delivering on safety commitments.”
On Monday, NS responded to Ancora, stating that they believed it was “unfortunate that a serious situation is being used to mislead stakeholders and to advance a proxy fight narrative.” NS also touted what it called “robust safety initiatives” following last year’s disastrous wreck in East Palestine, Ohio. As a result, NS has achieved a 42 percent reduction in our mainline accident rate year-over-year in 2023.
“Today, the company’s mainline accident rate is the lowest it has been in years and is among the best of the North American Class I rails. We are actively building on these achievements and helping the industry become even safer,” officials wrote.
