‘We’re making promises, and we’re keeping commitments,’ said Norfolk Southern CEO of the derailment in Ohio.
Safety stands as a paramount concern for Norfolk Southern, as emphasized by CEO Alan Shaw. Referring to the train derailment incident in East Palestine, Ohio, in February, Shaw expressed pride in the company’s response and its commitment to delivering on promises. He underlined the goal of enhancing an already secure railroad system.
In recent trading, Norfolk Southern’s stock declined by approximately 3%, contributing to a cumulative drop of over 10% in August. This setback follows a disappointing second-quarter earnings announcement made in late July, wherein the company adjusted its full-year projection.
The National Transportation Safety Board’s investigation findings revealed that the concerns of an engineer had not been adequately addressed by supervisors prior to the accident. The derailment led to considerable environmental and legal expenses amounting to $800 million, as noted during the previous month’s earnings call.
To fortify safety protocols, Norfolk Southern engaged Atkins Nuclear Secured, a consultancy renowned for its involvement in the U.S. Navy’s nuclear initiatives. Shaw drew parallels between the Navy’s nuclear program, recognized as an industry safety benchmark, and Norfolk Southern’s aspirations to become equivalent in the rail sector. The CEO affirmed the consulting firm’s extended commitment, spanning two to three years, as the company invests in elevating its safety standards.
In summary, Norfolk Southern’s CEO Alan Shaw highlighted the company’s unwavering dedication to safety, especially in the wake of a train derailment incident. Despite recent stock declines and challenges, the company aims to achieve the highest safety standards in the rail industry, aided by its collaboration with Atkins Nuclear Secured, renowned for its safety contributions to the Navy’s nuclear programs.
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