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Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash

Published: 09 April 2024 at 14:16

Business

Norfolk Southern Railway has agreed to a $600 million settlement for the East Palestine train crash, resolving a class action lawsuit, compensating residents and businesses, and offering a program for injuries from toxic chemical exposure. The settlement covers a 20-mile radius for class action claims and a 10-mile radius for personal injury claims. Despite the derailment, CEO Alan Shaw received a major pay boost. The company had already committed over $100 million in community assistance prior to this settlement.

DEEP DIVE


Norfolk Southern Train Derailment in Pennsylvania and CEO Pay Rise Controversy


A Norfolk Southern freight train derails in Pennsylvania with no injuries reported, weeks after CEO Alan H. Shaw received a 37% pay rise following an environmental disaster in Ohio. The East Palestine incident involved toxic chemicals, causing health complaints and $1.1 billion losses. The company plans an $800 million cleanup and community support. Norfolk Southern faced criticism from a railroad union for Shaw's pay rise, while claiming industry-leading safety improvements. President Biden visited the site late, sparking local discontent. Cleanup efforts are underway with no leaks reported.

Train Derailment in East Palestine, Ohio


A Norfolk Southern freight train derailed in East Palestine, Ohio, causing a spill of hazardous chemicals that caught fire, with controlled detonations and cleanup efforts taking place in the following months.

Alan H. Shaw (Wikipedia)


Alan Howard Shaw is the president and chief executive officer of Norfolk Southern, a Class I railroad operating freight trains in the United States. He has held the CEO position since May 1, 2022.

Norfolk Southern Railway (Wikipedia)


The Norfolk Southern Railway (reporting mark NS) is a Class I freight railroad operating in the Eastern United States. Headquartered in Atlanta, the company was formed in 1982 with the merger of the Norfolk and Western Railway and Southern Railway. The company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Kansas City. Norfolk Southern Railway is the leading subsidiary of the Norfolk Southern Corporation.Norfolk Southern is responsible for maintaining 28,400 miles (45,700 km), with the remainder being operated under trackage rights from other parties responsible for maintenance work. Intermodal containers and trailers are the most common commodity type carried by NS, which have grown as the coal business has declined throughout the 21st century; coal was formerly the largest traffic source. The railway offers the largest intermodal rail network in eastern North America. NS was also the pioneer of Roadrailer service. Norfolk Southern and its chief competitor, CSX Transportation, have a duopoly on the transcontinental freight rail lines in the Eastern United States.Norfolk Southern is the namesake and leading subsidiary of the Norfolk Southern Corporation, based in Atlanta, Georgia; it was headquartered in Norfolk, Virginia until 2021. Norfolk Southern Corporation was incorporated in Virginia on July 23, 1980, and is publicly traded on the New York Stock Exchange (NYSE) under the symbol NSC. The primary business function of Norfolk Southern Corporation is the rail transportation of raw materials, intermediate products, and finished goods across the Southeast, East, and Midwest United States. The corporation further facilitates transport to the remainder of the United States through interchange with other rail carriers while also serving overseas transport needs by serving several Atlantic and Gulf Coast ports. As of February 2024, Norfolk Southern Corporation's total public stock value is $57.869. As of January 2024, Norfolk Southern's operating revenue is $3.07 billion.

White House celebrates response to toxic train derailment in East Palestine, Ohio


The White House is highlighting its response to the toxic train derailment in East Palestine, Ohio, one year after the incident. President Biden is preparing to visit the site for the first time. The Environmental Protection Agency (EPA) led the efforts to clear the site, remove waste, and implement new rail safety measures. Transportation Secretary Pete Buttigieg emphasized that safety is a top priority for the U.S. Department of Transportation. EPA Administrator Michael Regan expressed gratitude for the leadership of President Biden in mobilizing a whole-of-government response to support the community and hold Norfolk Southern accountable.

Rail safety in East Palestine, Ohio has not significantly improved despite promises and reforms


Statistics from the Federal Railroad Administration show that rail safety in East Palestine, Ohio has not significantly improved over the past year. While there have been some improvements in certain areas, such as a decrease in derailments along mainline tracks, overall train accidents have worsened compared to previous years. This is concerning, especially considering the disastrous consequences of a derailment involving hazardous chemicals. Efforts to reform the industry have stalled in Congress, and Transportation Secretary Pete Buttigieg is urging lawmakers to pass reforms to address the ongoing safety issues.

Norfolk Southern Railway (1942–1982) (Wikipedia)


The Norfolk Southern Railway (reporting mark NS) was the final name of a railroad that ran from Norfolk, Virginia, southwest and west to Charlotte, North Carolina. It was acquired by the Southern Railway in 1974, which merged with the Norfolk and Western Railway in 1982 to form the current Norfolk Southern Railway.In May 1920, the predecessor Norfolk Southern Railroad leased the Durham and South Carolina Railroad, which became its Durham branch. This would be the largest the NSRR would become: a route of 942 miles (1,516 km). At the end of 1970, the successor Norfolk Southern Railway operated 624 miles (1,004 km) of road with 801 miles (1,289 km) of track; that year it reported 710 million ton-miles of revenue freight.

President Biden visits East Palestine, Ohio to address health impacts of train derailment


President Joe Biden visited East Palestine, Ohio, more than a year after a train derailment released toxic chemicals in the area. Biden announced new research grants for six universities to study the short- and long-term effects of the derailment. The grants aim to address ongoing health problems caused by the release of highly toxic vinyl chloride. Residents expressed concerns about the potential end of Norfolk Southern's assistance programs and called on the federal government for support. Biden also voiced his support for a rail safety bill currently in the Senate.

Norfolk and Western Railway (Wikipedia)


The Norfolk and Western Railway (reporting mark NW), commonly called the N&W, was a US class I railroad, formed by more than 200 railroad mergers between 1838 and 1982. It was headquartered in Roanoke, Virginia, for most of its existence. Its motto was "Precision Transportation"; it had a variety of nicknames, including "King Coal" and "British Railway of America". In 1986, N&W merged with Southern Railway to form today's Norfolk Southern Railway.The N&W was famous for manufacturing its own steam locomotives, which were built at the Roanoke Shops, as well as its own hopper cars. After 1960, N&W was the last major Class I railroad using steam locomotives; the last remaining Y class 2-8-8-2s would eventually be retired in 1961.In December 1959, the N&W merged with the Virginian Railway (reporting mark VGN), a longtime rival in the Pocahontas coal region. By 1970, other mergers with the Nickel Plate Road and Wabash formed a system that operated 7,595 miles (12,223 km) of road on 14,881 miles (23,949 km) of track from North Carolina to New York and from Virginia to Iowa.In 1980, the N&W merged its business operation with those of the Southern Railway, another profitable carrier, to create the Norfolk Southern Corporation holding company. The N&W and the Southern Railway continued as separate railroads operating under the single holding company.In 1982, the Southern Railway was renamed Norfolk Southern Railway and the holding company transferred the Norfolk & Western Railway to the control of the newly renamed company.

One year after train derailment, community in East Palestine still feels unsafe


One year after a train derailment in East Palestine, Ohio, residents and local businesses still feel unsafe and are skeptical of claims that the water in the town is safe to drink. Norfolk Southern, the train company responsible for the derailment, has made progress in environmental remediation and has provided direct relief to residents. However, some local business owners believe that more needs to be done to ensure the safety of the community and protect their livelihoods.

List of Norfolk Southern Railway lines (Wikipedia)


The Norfolk Southern Railway owns and operates A vast network of rail lines in the United States east of the Mississippi River. In addition to lines inherited from predecessor railroads, Norfolk and Western, and the Southern Railway, it acquired many lines as part of the split of the Conrail system in 1999.

Southern Railway (U.S.) (Wikipedia)


The Southern Railway (also known as Southern Railway Company; reporting mark SOU) was a class 1 railroad based in the Southern United States between 1894 and 1982, when it merged with the Norfolk and Western Railway (N&W) to form the Norfolk Southern Railway. The railroad was the product of nearly 150 predecessor lines that were combined, reorganized and recombined beginning in the 1830s, formally becoming the Southern Railway in 1894.At the end of 1971, the Southern operated 6,026 miles (9,698 km) of railroad, not including its Class I subsidiaries Alabama Great Southern (528 miles or 850 km); Central of Georgia (1729 miles); Savannah & Atlanta (167 miles); Cincinnati, New Orleans and Texas Pacific Railway (415 miles); Georgia Southern & Florida (454 miles); and twelve Class II subsidiaries. That year, the Southern itself reported 26,111 million net ton-miles of revenue freight and 110 million passenger-miles. Alabama Great Southern reported 3,854 million net ton-miles of revenue freight and 11 million passenger-miles; Central of Georgia 3,595 and 17; Savannah & Atlanta 140 and 0; Cincinnati, New Orleans and Texas Pacific Railway 4906 and 0.3; and Georgia Southern & Florida 1,431 and 0.3.The railroad joined forces with the Norfolk and Western Railway in 1980 to form the Norfolk Southern Corporation. The Norfolk Southern Corporation was created in response to the creation of the rival CSX Corporation by a number of railroads in the eastern United States (adopting the name CSX Transportation for its rail system in 1986). Southern and N&W continued as operating companies of Norfolk Southern until in 1982, when Norfolk Southern merged nearly all of N&W's operations into Southern to form the Norfolk Southern Railway. The railroad has used that name since.

Mallory v. Norfolk Southern Railway Co. (Wikipedia)


Mallory v. Norfolk Southern Railway Co., 600 U.S. 122 (2023), was a United States Supreme Court case related to personal jurisdiction.

Cargo train carrying plastic pellets and cooking oil derails in upstate New York


Ten cars of a cargo train, part of a 94-car train, derailed in upstate New York, with two ending up in a river. No injuries were reported and no hazardous materials were involved. Contractors are on site to respond to the incident and rerailing of the cars will take several hours. A thorough investigation into the cause is underway. This is the second derailment in the region in six months. The accident in East Palestine, Ohio a year ago prompted safety reforms in the rail industry.

East Palestine, Ohio, train derailment (Wikipedia)


A train derailment occurred on February 3, 2023, at 8:55 p.m. EST (UTC−5), when 38 cars of a Norfolk Southern freight train carrying hazardous materials derailed in East Palestine, Ohio, United States. Several railcars burned for more than two days, with emergency crews then conducting a controlled burn of several railcars, which released hydrogen chloride and phosgene into the air. As a result, residents within a 1-mile (1.6-kilometer) radius were evacuated, and an emergency response was initiated from agencies in Ohio, Pennsylvania, West Virginia, and Virginia.

List of Norfolk Southern Railway predecessor railroads (Wikipedia)


The following railroads merged to form the Norfolk Southern Railway.The Southern Railway changed its name to the Norfolk Southern Railway on December 31, 1990.The Norfolk and Western Railway was leased by the Southern Railway on December 31, 1990, and merged into the Southern in 1997.The New York, Chicago and St. Louis Railroad (Nickel Plate Road) merged into the Norfolk and Western Railway on October 16, 1964.The Wheeling and Lake Erie Railway was leased by the New York, Chicago and St. Louis Railroad on December 1, 1949, and merged into the Norfolk and Western Railway on September 16, 1988.The Akron, Canton and Youngstown Railway was leased by the Norfolk and Western Railway on October 16, 1964, and merged January 1, 1982. Its remaining lines were spun off to the new Wheeling and Lake Erie Railway on May 17, 1990.The Pittsburgh and West Virginia Railway was leased by the Norfolk and Western Railway on October 16, 1964, but was leased to the new Wheeling and Lake Erie Railway on May 17, 1990.The Wabash Railway was leased by the Norfolk and Western Railway October 16, 1964 before becoming a wholly owned subsidiary of the Norfolk & Western in December 1991. In 1997, the Wabash was merged into NS along with its parent, the N&W.The Virginian Railway merged into the Norfolk and Western Railway on December 1, 1959.Other companies:Alabama Great Southern RailroadAtlanta and Charlotte Air-Line RailwayAtlantic, Mississippi and Ohio RailroadCentral of Georgia RailroadThe Georgia and Florida Railroad merged into the Central of Georgia Railway June 1, 1971.The Savannah and Atlanta Railway merged into the Central of Georgia Railway in 1971.City Point RailroadEast Tennessee, Virginia and Georgia RailwayGeorgia Pacific RailwayIllinois Terminal RailroadLawrenceville Branch RailroadMemphis and Charleston RailroadNorfolk and Petersburg RailroadNorfolk Southern Railway (1942–1982)North Carolina RailroadNorth Eastern Railroad (Georgia)Orange and Alexandria RailroadPiedmont RailwayPiedmont Air-Line RailwayRabun Gap Short Line RailwayRichmond and Danville RailroadRichmond and West Point Terminal Railway and Warehouse CompanyRichmond and York River RailroadShenandoah Valley RailroadSouth Side RailroadVirginia and Tennessee Railroad

Former President Donald Trump's response to a train derailment in Ohio helped solidify his support and secure the Republican nomination for the 2024 election.


Former President Donald Trump delivered aid and a message of action to the community of East Palestine, Ohio, after a train carrying hazardous chemicals derailed. He provided red MAGA hats, water, and emphasized the need for answers and results. Trump's visit increased his lead in the polls by 16 points and demonstrated his ability to make a meaningful impact in times of crisis. Now, over a year later, President Joe Biden is set to visit the community, highlighting the ongoing need for assistance in rebuilding. Democrats blamed the derailment on rail deregulation under Trump, while Republicans questioned the delay in Transportation Secretary Pete Buttigieg's visit.

East Palestine residents continue to face health issues one year after train derailment


Daily life has largely returned to normal for most of the nearly 5,000 residents of East Palestine, Ohio, one year after a train derailment and chemical spill. However, some residents still report respiratory problems, rashes, headaches, and other illnesses when they return to the village. Several dozen people have not returned to their homes due to concerns about the hazardous chemicals released during the incident. The EPA has stated that the air and water in the area are safe, but some residents remain skeptical. Despite the challenges, the community is determined to move forward and take advantage of the investments being made in the area.

Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash Norfolk Southern Railway Agrees to $600 Million Settlement for East Palestine Train Crash

SOURCES

CBS News

Norfolk Southern agrees to pay $600 million for East Palestine, Ohio, train derailment

CBS News

The Guardian

Norfolk Southern agrees to pay $600m for Ohio toxic train derailment

Associated Press

ABC News

Norfolk Southern agrees to pay $600M in settlement related to train derailment in eastern Ohio

ABC News

ABC News

Norfolk Southern settles class action lawsuit related to fiery East Palestine derailment in Ohio for $600 million

ABC News

ABC News

Norfolk Southern agrees to pay $600M in settlement related to train derailment in eastern Ohio

ABC News

The Huffington Post

Norfolk Southern Agrees To Pay Settlement Over Ohio Train Derailment

The Huffington Post

AP News

Norfolk Southern agrees to pay $600M in settlement related to train derailment in eastern Ohio

https://apnews.com/author/josh-funk

NBC

Norfolk Southern reaches $600M settlement more than a year after Ohio train derailment

NBC

Fox News

Norfolk Southern agrees to $600 million settlement for East Palestine train derailment

Fox News

PANORA

Norfolk Southern Train Derailment in Pennsylvania and CEO Pay Rise Controversy

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Train Derailment in East Palestine, Ohio

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Wikipedia

Alan H. Shaw

Wikipedia

Wikipedia

Norfolk Southern Railway

Wikipedia

PANORA

White House celebrates response to toxic train derailment in East Palestine, Ohio

PANORA

PANORA

Rail safety in East Palestine, Ohio has not significantly improved despite promises and reforms

PANORA

Wikipedia

Norfolk Southern Railway (1942–1982)

Wikipedia

PANORA

President Biden visits East Palestine, Ohio to address health impacts of train derailment

PANORA

Wikipedia

Norfolk and Western Railway

Wikipedia

PANORA

One year after train derailment, community in East Palestine still feels unsafe

PANORA

Wikipedia

List of Norfolk Southern Railway lines

Wikipedia

Wikipedia

Southern Railway (U.S.)

Wikipedia

Wikipedia

Mallory v. Norfolk Southern Railway Co.

Wikipedia

PANORA

Cargo train carrying plastic pellets and cooking oil derails in upstate New York

PANORA

Wikipedia

East Palestine, Ohio, train derailment

Wikipedia

Wikipedia

List of Norfolk Southern Railway predecessor railroads

Wikipedia

PANORA

Former President Donald Trump's response to a train derailment in Ohio helped solidify his support and secure the Republican nomination for the 2024 election.

PANORA

PANORA

East Palestine residents continue to face health issues one year after train derailment

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