Norfolk Southern spent $387 million in the first quarter to cover the damage caused by its East Palestine, Ohio, derailment in February, the company said Wednesday.
Norfolk Southern CEO Alan Shaw said on an earnings call that the company aims to complete its cleanup of the derailment site and have all of its tracks in service by early June. He said the company will “do whatever it takes to make it right for East Palestine and the surrounding areas.”
Norfolk Southern said that the projected losses don’t include costs it may incur as part of Ohio’s lawsuit to ensure the company pays to clean up environmental damage, or money it may receive from insurance.
The derailment, which was caused by an overheated wheel bearing, spilled toxic chemicals into the East Palestine community. Officials were forced to slowly burn the chemicals to prevent a massive explosion.
East Palestine residents continue to report illnesses they believe are related to poor air and water quality. Many residents still cannot return to their homes as Norfolk Southern undergoes a lengthy process to remove toxic chemicals from nearby soil and creeks.
Despite the costs to clean the spill, settle legal issues and provide housing to East Palestine residents, Norfolk Southern still brought in $711 million in first-quarter profit. That’s down 34 percent from the same period last year.
Ohio Sens. J.D. Vance (R) and Sherrod Brown (D) are pushing a bipartisan measure to overhaul safety standards, but the railroad industry has pushed back, arguing that federal regulation is too costly and ineffective, despite the devastating East Palestine derailment.
Shaw told an Ohio panel last week that he plans to “express a full-throated endorsement for many of the safety provisions” included in the proposal. But he came out against mandating two-person crews, a key priority for workers who say it’s unsafe to operate a train alone.
“I have been personally engaged in Washington to support specific federal legislative provisions to enhance safety,” Shaw said Wednesday.
Updated at 2:20 p.m.