Norfolk Southern Accused by DOJ of Illegally Delaying Amtrak Trains

Trending 3 months ago

Key Takeaways

  • A Department of Justice title accused Norfolk Southern of causing wide delays of Amtrak trains on a way from New York City to New Orleans.
  • The institution is required by rule to springiness penchant to rider trains complete freight trains.
  • Norfolk dispatchers allegedly routinely made Amtrak trains hold for nan company's slow-moving freight trains to pass.

Norfolk Southern (NSC) was accused by nan Department of Justice (DOJ) of illegally delaying Amtrak trains, according to a title revenge Monday.

The institution is required nether national rule to springiness penchant to rider trains complete freight trains, but conscionable 24% of southbound rider trains walking on Amtrak’s Crescent way betwixt New York City and New Orleans reached their destination connected time, nan title alleged.

Widespread Delays, Hurting Amtrak's Bottom Line

The DOJ said Norfolk’s dispatching “regularly” led to wide delays that inconvenienced customers and wounded Amtrak’s bottommost line. The section cited a train successful January that was delayed for astir an hr extracurricular New Orleans because Norfolk ordered it to travel down a slower freight train, and different lawsuit erstwhile dispatchers made an Amtrak train hold much than an hr for 3 freight trains to pass. 

“For half a century, national rule has required freight obstruction companies to springiness Amtrak rider obstruction work penchant connected their tracks — yet compliance pinch this important rule has been uneven astatine best,” U.S. Transportation Secretary Pete Buttigieg said. “We will proceed to prosecute nan railroad manufacture and activity pinch Amtrak to guarantee that freight railroads comply pinch their ineligible obligations and that Amtrak customers are not subjected to unacceptable, unnecessary, and unlawful delays.”

A spokesperson for Norfolk Southern said nan institution is “committed to complying pinch nan law.”

“Over nan past respective months pinch Amtrak, we person focused connected nan on-time capacity of nan Crescent rider train,” Norfolk Southern said. “We dream to resoluteness these concerns and proceed to make advancement together.”

Shares of Norfolk Southern vanished 0.8% higher astatine $249.63 Tuesday, and person gained adjacent to 6% since nan commencement of nan year.

More
Source investopedia
investopedia