Norfolk Southern Railway: A Disastrous Train Derailment in East Palestine, Ohio
A Norfolk Southern Railway train derailed in the small town of East Palestine, Ohio, releasing a large volume of hazard chemicals into the surrounding environment. Norfolk Southern CEO Alan Shaw has just become aware of the disaster and must decide how to respond, as intense criticism mounts. 13 pp. Case #23-03 (2023)
1. To highlight the conflict arising, as a company and industry try to balance the need for safety and regulation with the need for speed, reliability, and profitability.
2. To encourage a discussion regarding current U.S. railroad safety regulations and their effectiveness in preventing accidents.
3. To explore various strategic options available to the management of Norfolk Southern in tacking this problem.
4. To encourage analysis of Precision Scheduled Railroading (PSR) as a technology and business strategy.
5. To illustrate how regulators and railroad companies must collaborate to produce viable solutions.