- Norfolk Southern CEO Alan Shaw told CNBC’s Jim Cramer how the railroad and transportation company is trying to better its safety measures.
- Norfolk Southern was down a little over 3% by Tuesday’s close.
Norfolk Southern CEO Alan Shaw told CNBC’s Jim Cramer that safety is a priority for the railroad and transportation company.
“I’m proud of the response in East Palestine, we’re making promises, and we’re keeping promises,” Shaw said. “And that said, we’re going to make a safe railroad safer.”
Norfolk Southern was down a little over 3% by Tuesday’s close. The stock has declined more than 10% in August. The fall follows a July earnings report in which the company lowered its full-year forecast as well as fallout from a train derailment in Ohio that spilled toxic chemicals in February.
Findings from the National Transportation Safety Board investigation suggested that supervisors didn’t address an engineer’s concerns before the accident. Norfolk Southern incurred $800 million in environmental and legal costs as a result of the derailment, according to the company’s most recent earnings call.
To improve the company’s safety measures, Norfolk Southern hired Atkins Nuclear Secured, a consulting firm run by those with experience in the U.S. Navy’s nuclear programs.
“The Navy nuke program is the gold standard of safety in all of industry, and Norfolk Southern will be the gold standard of safety in the rail industry,” Shaw said. “They’re going to be here for two to three years, we’re investing in this.”
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Read More: ‘we’re making promises, and we’re keeping promises’ – NBC Los Angeles