Norfolk Southern Decides to Take a Different Track
The railroad’s CEO, Alan Shaw, intends to keep employees on the payroll and continue to invest in operations instead of cutting back when the economy slumps.
The long-term growth outlook for railroads is bright, but they need to invest in infrastructure to meet demand more reliably.
Photographer: Brooke Sutherland/Bloomberg
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After a derailed Norfolk Southern Corp. train spewed chemicals into the air, water and soil of East Palestine, Ohio, earlier this year, politicians accused the railroad of having prioritized profits over investments in railroad infrastructure and workers. The National Transportation Safety Board is still investigating the accident, but preliminary findings have focused on an overheated wheel bearing and temperature detectors that were operating as designed. There’s little clear evidence so far to suggest the derailment was emblematic of corporate greed. Nevertheless, a harsh and perhaps overdue national spotlight has landed on the railroads.