The derailment ‘obfuscates’ the broader trend of improved railroad safety, one analyst said.
The derailment of a train carrying hazardous materials on the outskirts of East Palestine, Ohio, is a public-relations nightmare for carrier Norfolk Southern Corp. and for the rail industry, Cowen analyst Jason Seidl said Friday.
Local residents are seeking answers to their questions about the health effects of the toxic chemicals that were spilled or burned off. Also read: Norfolk Southern is in the spotlight after Ohio derailment disaster. What does it mean for the carrier’s stock? Last week the National Transportation Safety Board issued its preliminary report on the accident, indicating that the train crew did not receive a critical warning on an overheated axle until just before the derailment.
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A Norfolk Southern policy lets officials order crews to ignore safety alertsThe National Transportation Safety Board will be looking into the company’s rules, including whether that specific policy played a role in the Feb. 3 derailment in East Palestine.
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