Jul 27, 2023
2 mins read
2 mins read

Norfolk Southern: Cost of Ohio Derailment Doubles to $803M

OMAHA, Neb. (NEWSnet/AP) — Expense associated with Norfolk Southern's derailment in February in Ohio have doubled to $803 million, as the railroad continues its cleanup effort.

Norfolk Southern recorded another $416 million charge related to the East Palestine derailment as part of its second-quarter earnings. Earlier in the year, it had announced the figure at $387 million.

Most of the cost is related to the cleanup of hazardous chemicals released in the derailment, but $222 million is a combination of legal fees and the $63 million of assistance it has offered to the community.

The incident involved evacuation of thousands when officials decided to release toxic chemicals from several tank cars, to prevent them from exploding. The resulting fire sent a plume of black smoke over the town three days after the derailment. 

The $803 million estimate doesn't include funds to compensate the East Palestine community for  long-term health effects, drop in home values or drinking-water issues, because those are being negotiated. Norfolk Southern expects to cover some cost through its insurance and lawsuits against other companies involved.

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