Norfolk Southern expects $58M derailment expense

AP News
Posted: Mar 21, 2011 6:40 PM
Norfolk Southern expects $58M derailment expense

Railroad operator Norfolk Southern says it will record an expense of at least $58 million from a 2005 derailment that led to nine deaths and a massive evacuation in Graniteville, S.C.

The company said on Monday that an arbitration panel ruled against it regarding an insurance claim from the derailment. The expense will show up on its books in the first quarter. It said it also expects to pay legal fees for the insurer, though it doesn't yet know how much those will be.

In January 2005 a Norfolk Southern train veered from the main track onto a spur, rear-ending a parked train. The crash caused a poisonous cloud of chlorine that killed nine people and injured 250 people. About 5,400 were evacuated.