By David Shepardson
WASHINGTON (Reuters) -U.S. railroad regulators on Wednesday said Norfolk Southern (NYSE:NSC) needs "significant improvements" in its safety culture after a Feb. 3 derailment in Ohio caused cars carrying toxic vinyl chloride and other dangerous chemicals to spill and catch fire.
The Transportation Department's Federal Railroad Administration (FRA) also disclosed it is considering enforcement actions against the Atlanta-based railroad on a number of issues, including track maintenance, inspection, repair practices and hours of service regulations.
"FRA’s findings highlight the need for significant improvements in training practices, overall communications, and trust - all of which are vital to prevent accidents before they occur," Administrator Amit Bose said in a statement.
"We expect Norfolk Southern to do their part, acting on the recommendations in this assessment as well as previous ones to increase safety."
FRA found the railroad frequently focused solely on enforcing compliance with minimum safety standards and did not quickly respond to an earlier 2022 audit. But the review praised positive changes and renewed commitment shown by company leadership to improve safety.
Inspections in March identified over 100 defects across 95 miles (153 km) of Norfolk Southern territory "and FRA is considering enforcement actions based on those defects. Further, reviewing the maintenance and inspection history of the territory identified a failure to prioritize critical safety work necessary to ensure safe operation."
Norfolk Southern said CEO Alan Shaw and members of the company’s leadership team met with Bose in Atlanta on Tuesday to review the findings. The railroad called "the report an important step on the path to becoming the gold standard for safety in the rail industry."
Shaw said in a statement he "gave Administrator Bose my personal commitment that we are going to use this assessment to take further action. We aren’t waiting."
The railroad delivered the report to a consultant conducting an independent review of its safety program. "We’re also actively collaborating with labor on safety and we’re engaging with them on next steps to address the report’s findings," Shaw added.
The report found Norfolk Southern had not moved quickly to embrace findings from the 2022 audit and noted little action in the last 12 months. "It is clear that (Norfolk Southern) does not place an urgent priority on applying lessons learned from the audit and putting corrective actions in place," the FRA said.
The FRA said while it found enforcement issues the purpose of the safety assessment was "to explore aspects of the railroad organization and operations affecting safety in ways that are not necessarily addressed by rules and regulations."