: After Ohio derailment, Norfolk Southern announces six-point safety plan

Norfolk Southern Corp. NSC has announced a six-point safety plan in the wake of last month’s derailment of a train carrying hazardous materials on the outskirts of East Palestine, Ohio. The company’s stock, which has fallen 10.1% since the Feb. 3 derailment, fell 0.7% before market open Monday. Citing the preliminary report of the National Transportation Safety Board on the derailment, Norfolk Southern said it will enhance its hot bearing detector network, pilot next-generation hot bearing detectors, work with industry on best practice for hot bearing detectors and deploy more acoustic bearing detectors. The company will also accelerate its Digital Train Inspection Program and support a strong safety culture, according to a statement released before market open. Norfolk Southern pointed to last week’s announcement that it has agreed to join the Federal Railroad Administration’s Confidential Close Call Reporting System (C3RS). The company will immediately begin work on the safety initiatives announced Monday, it said. “Reading the NTSB report makes it clear that meaningful safety improvements require a comprehensive industry effort that brings together railcar and tank car manufacturers, railcar owners and lessors, and the railroad companies,” said Norfolk Southern CEO Alan Shaw, in the statement. No one was killed or injured in the derailment of the 38 cars, although the incident has been described as a “PR nightmare” for Norfolk Southern and the rail industry. The derailed cars included 11 tank cars carrying hazardous materials that subsequently ignited, fueling fires that damaged an additional 12 railcars, according to the National Transportation Safety Board.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.