By Bart M. Schwartz, chairman of Guidepost Solutions
The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
There are approximately three railroad incidents in the United States each day. Some are fatal and otherwise more destructive than others.
In early March, a Norfolk Southern train derailed, with two cars landing in the Hoosic River in New York. In February 2023 — just over a year ago — a Norfolk Southern train derailed in East Palestine, Ohio, an accident that made national headlines. The latter was carrying hazardous materials, creating conditions that are dangerous to the environment and the people in the local community. NS agreed on Tuesday to pay $600 million to settle a class-action lawsuit but said the settlement is not an admission of liability or wrongdoing.
According to the U.S. Department of Transportation, between 2000 and 2022, there were on average 1,615 train derailments each year. In 2023 derailments again surpassed the 1,000 mark and rose for the top five freight rail companies, including Norfolk Southern, compared to previous years.
Train derailments remain an urgent safety and economic issue that has devastating human, environmental and economic ramifications for all communities, the companies that rely on the rail system, their employees and the government. The railroad industry plays a central role in our national supply chain network and thus the overall health of the national economy.
The DOT has acknowledged the importance of improving the safety of railroad transportation, but the path to achieving that remains unclear. Until we can gain that clarity, the rail system will remain vulnerable and our dependence on it at risk.
The DOT and the Federal Railroad Administration launched a pilot program called Confidential Close Call Reporting System, designed to enable the reporting of unsafe events. According to the FRA, as of January 2024, only one of the top five freight companies, Norfolk Southern, had joined the program.
Another stalled attempt at a solution is the Railway Safety Act of 2023 introduced by Sen. Sherrod Brown of Ohio. It has not passed the Senate. The bill aims to enhance safety requirements for rail carriers “operating a train carrying hazardous materials” and “provides funding for research and development to improve railway safety,” according to the Library of Congress.
Despite the new reporting mechanisms, public awareness, legislative efforts and the launch of a special investigation by the National Transportation Safety Board, success has been limited. This is in part because current efforts are independent of one another and do not cohesively contribute to a comprehensive solution that is needed to address the complexity of the problem.
This is not the first and probably not the last time that a major federal agency has faced a problem of this magnitude that has an impact on consumers, businesses and communities throughout the country.
In the auto industry, for example, the government used a variety of mechanisms to hold companies accountable, assess compliance with laws and court orders, make recommendations, and issue reports informing the public and the authorities on how to improve their operations.
In some cases, the government has appointed a federal monitor to help companies implement changes. This is beneficial when the magnitude of the problem is so great that the government does not have the capacity to address or recommend the wide range of improvements needed over an extended period of time in a way that would sustain the industry while improving it.
By developing open, cooperative and transparent relationships with the railroad companies, federally appointed monitors would be in a unique position to diagnose issues, develop effective strategies and, if necessary, make tough decisions to implement needed changes. Furthermore, because they are independent, they can objectively and effectively communicate with the public and other impacted parties.
Government agencies are hesitant to undertake such vast mandates themselves, in part due to stretched resources. However, the statute gives the secretary of transportation significant power and authority to inquire into railroad companies, issue subpoenas, investigate, and, among other things, bring civil actions against carriers if violations are uncovered.
To address the pressing issues in the railroad industry, we need to put people on the ground, employ experts, speak to the impacted constituencies and effectively communicate about the issues that exist, how they are being addressed and the effectiveness of the efforts to implement improvements. Government agencies simply do not have the resources to do that for every industry they oversee, and we cannot expect them to.
The future of the railroad industry depends on its ability to analyze and diagnose issues and to monitor compliance with applicable rules, laws and regulations, while identifying deficiencies in the system and proposing modern, achievable, cost-effective solutions.
We know that train derailments and other incidents are often caused by track and equipment issues, dated technology and human error. Additionally, there is often a lack of reporting and transparency about accidents and other safety issues that impedes necessary repairs and improvements.
The industry needs to tackle each of these issues, dive into the existing data, conduct interviews with affected parties and rail workers, propose solutions, and monitor the implementation for a successful outcome.
It’s unclear to what extent they can do that on their own.
We need to deploy adequate resources in a consistent way to effect the needed change and renew confidence in the industry. We also need to change the culture of the railway industry. Encouraging workers and others to report safety incidents and concerns is a good start.
However, railroad companies also need to be held accountable if they drag their feet or prove obstinate or obstructive to these efforts.
The residents of East Palestine are still living with the unknown as to what the medium- and long-term effects of the derailment will be on their community and quality of life. Hundreds of other communities every year will continue to be impacted by train derailments and related incidents until there is a comprehensive solution to deal with these problems.
To get the railroad industry back on track, we need to deploy a proven, effective strategy and hold rail companies responsible and accountable while also equipping them to succeed as responsible stewards of the vitally important service they supply to our country.