Norfolk Southern Under Lens After Ohio Train Derailment; Air, Water & Soil Tests Look For Chemicals

  • Norfolk Southern Corp NSC is reportedly under scrutiny as cleanup and environmental-monitoring efforts continue in an Ohio town after the derailment of a train carrying hazardous chemicals.
  • Around 50 cars of a 150-car Norfolk Southern train derailed earlier this month in East Palestine, causing a chemical fire and prompting the evacuation of residents
  • Officials had to drain vinyl chloride from five tanker cars to prevent an explosion. 
  • Some derailed, breached, or burned railcars carried other chemicals that can present health hazards, such as isobutylene, a flammable gas, and butyl acrylate, used to make coatings and sealants, according to the U.S. Environmental Protection Agency.
  • Though the accident remains under investigation, federal transportation safety officials note a train car wheel bearing overheated and failed before the derailment.
  • State environmental and health officials said the controlled release of chemicals affected local waterways, causing the death of about 3,500 fish.
  • Several lawsuits have been filed against Norfolk Southern, alleging negligence and exposure to toxic substances.
  • Norfolk said it had distributed more than $1.2 million directly to families to cover evacuation costs and has helped more than 700 families and some businesses, Wall Street Journal reported.
  • Price Action: NSC shares are up 1.88% at $239.71 premarket on the last check Wednesday.
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