Rail Safety Megathread. Updated April 2, 2024

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73. A Veteran Railroader's Perspective on East Palestine and the Rail Industry's Future

Commentary

February 26, 2023 | Freight

A Veteran Railroader’s Perspective on East Palestine and the Rail Industry’s Future

Written by Richard L. Beadles



Fire fighters receive instruction on a safety train tank car. Norfolk Southern photo

As a long-retired railroad president and current rail and transportation aficionado—but certainly not an expert—I was encouraged by a friend to offer my perspective on the Norfolk Southern freight train derailment in East Palestine, Ohio. ... Much criticism has been directed at Norfolk Southern. While it is understandable that the locals are very concerned, the media has had a field day quoting misinformed and agenda-advancing “experts” on rail safety, “corporate greed” and environmental degradation.

Let me say from the outset that I have never been to East Palestine, nor am I familiar with NS operations at that location, But I do know a little bit about the rail industry and its recent history, including train operations. While my days of hands-on rail operations are long gone, some principles are timeless. Here in Richmond, Va., I observe NS operations and maintenance, and I have every reason to believe that the quality of maintenance and operation on that Ohio line segment was exceptionally high.

First, I shall speculate on the origins of the suspected ill-fated railcar bearing/wheelset assembly that apparently failed on Feb. 3. The loads of vinyl chloride originated a long distance from where NS picked up the train at interchange, destined undoubtedly to a PVC or other plastics manufacturer in the Northeast for ultimate consumption and conversion into a finished product for U.S. consumers. Thus, we all have a stake in the process of transporting vinyl chloride and other related chemical products classified as hazardous materials (hazmat). Such chemical products are used in the manufacture of thousands of products eagerly purchased and consumed by the general public.

Because rail freight is usually the least-expensive, safest and most convenient mode of transportation, storage, and consumption by consignees of chemical shippers’ products, producers and users tend to utilize high-capacity rail tank cars for hazmat movement (not all are so classified). While railroads such as NS will tell you they are legally obligated to accept and move such shipments because of their common carrier status (an antiquated regulatory term more honored in theory than practice), the U.S. rail industry covets this business because it commands high freight transportation charges, and thus tends to be quite profitable.

The carloads of vinyl chloride in the accident did not move in a railroad-owned car. Almost all such cars are owned by shippers, or more commonly, by equipment leasing companies. This will be a very important issue in the case of claims for loss, damage and other accident-related costs. It was not an NS-owned freight car that caused the problem.

{snip}

The alternative is to divert vinyl chloride and hazmat to our Interstate highways. Anybody in favor of that?



Richard L. Beadles was formerly President and CEO of CSX predecessor Richmond, Fredericksburg & Potomac Railroad. Now 86, He has served as director, board member and fellow at the Virginia Rail Policy Institute. Beadles considers himself to be an independent rail and transportation analyst, and an advocate of rail and transit development. He believes that a major shift in national transportation infrastructure funding and development policies and priorities will be necessary in order to effectively address current and future energy, environmental, quality of life, and global economic competitiveness challenges. Originally a hands-on railroader, up from the ranks, Beadles had a wide variety of operating, marketing and executive experience from the 1950s until retirement. As a former President and CEO of the RF&P and later of CSX Realty, the former real estate and development unit of CSX Corp., he went on to lead Richmond-based real estate advisory firm MGT Realty Advisors, until a second retirement several years ago. Immersed in land use and transportation issues of Northern Virginia between 1965 and 1995, Beadles came to appreciate the linkage between urban development and transportation challenges, and to see the opportunities for better utilization of rail corridors. He was directly involved in the development of Crystal City as RF&P’s principal officer in charge of the railroad’s land redevelopment effort at the former Potomac Yard in Arlington and Alexandria, Va. Later, with CSX, he was similarly engaged in urban real estate and transportation in various cities in the eastern half of the U.S., including Washington, D.C., Baltimore, Atlanta, Chicago, and elsewhere, including James Center in downtown Richmond. As a member of for Virginia Governor Mark Warner’s 2004 Rail Study Commission, Beadles played a supporting role in the creation of the Virginia Rail Enhancement Fund and its companion facility, the State Rail Advisory Board. Subsequently, Governor Warner appointed Beadles to the Rail Advisory Board. An alumnus of the Business School at Virginia Commonwealth University, Beadles has i served on the VCU Board of Visitors, and was a charter member of the VCU Real Estate Foundation. At one time he chaired the VCU real estate program’s external support group. More also served as chairman of the Port of Richmond Commission. He delights in opportunities to combine involvement in urban planning and transportation, but his current passion is preservation of the best of rural America and the protection of Virginia’s environment. The opinions expressed here are his own.