(NewsNation) — Norfolk Southern estimated their cost related to the East Palestine train derailment is $387 million, but that number will rise as other costs will factor in, company officials said in their Wednesday earnings call.
Also, it’s unclear how much Norfolk Southern will pay out-of-pocket. The company told investors that insurance reimbursement has not been factored in.
The earnings call comes almost three months after a Norfolk Southern train carrying toxic chemicals derailed, which triggered evacuations and left many residents worried about long-term health impacts. Community members are still reporting illnesses that they believe are connected to poor air and water quality.
It is the first quarterly report since the incident.
The $387 million outlined on today’s earnings call is an estimate. Norfolk Southern has actually spent $55 million to this point.
The money will primarily go toward environmental cleanup efforts and “future environmental remediation activities,” the railroad said.
But the company told investors there are additional costs that cannot be estimated and were not included in the $387 million figure. This could include payments from a lawsuit by the state of Ohio.
Norfolk Southern CEO Alan Shaw vowed to “do whatever it takes to make it right for East Palestine and the surrounding areas.”
Shaw said the company still has 300 people on the ground in the area working seven days a week.
He also said the company will install additional sensors and early-detection equipment, among other things and increase safety training for first responders.
Ohio Sens. J.D. Vance (R) and Sherrod Brown (D) are pushing for federal rail safety legislation to prevent future train incidents. The bill includes requirements that trains have crews of at least two people, expands the classification for highly hazardous flammable trains and increases fines for safety violations.
At a Senate hearing in March, Shaw said he supported some of the regulations but would not commit to supporting the bill.
In a statement to NewsNation Wednesday, Senator Brown criticized the railroad for putting profits over people.
“If Norfolk Southern had cared a little more about the Ohioans along its tracks, and a little less about its executives and shareholders, this accident might have been prevented,” Brown said. “Norfolk Southern must pay for every cent of the cleanup.”
Brown said he’s focused on holding the company accountable and will continue to push for legislation to stop it from happening again.
On Wednesday’s call, Shaw said ongoing cleanup efforts are still impacting rail service. The company is down to one temporary track in the area after removing the double track at the site to get rid of contaminated soil. The double track is expected to be restored in early June.
Federal investigators have opened a wide-ranging investigation into Norfolk Southern that is still ongoing.
The $387 million hit lowered profts by about one-third compared to the year prior. Without the costs from the eastern Ohio incident, the company said net income would have been comparable to Q1 2022.
Revenue at Norfolk Southern was up 7% compared to last year at this time, reaching $3.1 billion.