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NS CEO Takes Hot Seat in D.C.

CEO Alan Shaw’s testimony came just hours after yet another Norfolk Southern train derailed, this time in Alabama. 

NS CEO Takes Hot Seat in D.C.

By Justin Franz 

Norfolk Southern CEO Alan Shaw’s apology tour made a stop in Washington D.C., on Thursday, just hours after yet another NS train derailed, this time in Alabama. 

During a hearing before the U.S. Senate Committee on Environment and Public Works, the CEO said he was “deeply sorry” for how the derailment of train 32N in East Palestine, Ohio, on February 3, impacted that community. He also outlined what the railroad company was doing to clean up the derailment site and help the affected community. 

The senate hearing came just days after the National Transportation Safety Board announced it was launching a “special investigation” into the railroad’s safety culture. That inquiry came after two more incidents in Ohio, including one where an NS employee was killed this week. 

During that hearing, elected officials asked pointed questions about NS maintenance practices, why it spent billions on stock buybacks and what it would do to help the people of East Palestine. Shaw generally stayed on message, noting that NS had spent more than a $1 billion on infrastructure, maintenance and equipment last year. When asked by one senator about whether or not the railroad would compensate people for the loss of home value, Shaw didn’t get specific, but said “I’m committed to doing what’s right.”

In his prepared remarks, Shaw noted that NS had given the East Palestine Fire Department $3 million in reimbursements; established a $1 million fund for the community overseen by local officials; another $1 million fund overseen by a local craft railroader who has been hired to serve as a community liaison; $300,000 to the local school district for its athletics and extracurricular programs; $65,000 to the local youth sports association to let kids play for free this year; and $7.5 million in assistance to reimburse Pennsylvania emergency responders and health and environmental agencies for costs related to the derailment. Shaw also said that NS would be establishing a regional safety training center in Ohio

This article was posted on: March 10, 2023