NS Cancels Embargo/Force Majeure: Update on Landslide at Emsworth, PA

Norfolk Southern Service Alert

Update on Landslide at Emsworth, PA
Cancellation of Embargo
Cancellation of Force Majeure

September 24, 2006

Two of three mainline tracks at the site of the landslide at
Emsworth, Pennsylvania, have now been cleared. Train operations have
generally been restored to normal routes and conditions at Emsworth
are being monitored closely.

The embargo issued covering shipments normally moving via this route
is cancelled.

Shipments moving through this area may continue to experience some
delay as a result of slow orders and delayed train movement, but
operations are expected to continue to improve.

Note to customers with committed service agreements: Norfolk Southern
cancelled Force Majeure effective 9:00 AM, September 24, 2006 on all
traffic moving through this area.

http://www.nscorp.com/nscorp/index.jsp

Dave

This is a normal thing. The NS could not detour any traffic assigned to operate over that streach of railroad unless the embargo had been issued – and have the customer pay any increased costs.

Has anyone mentioned a figure as to how much this little fiasco is going to cost the contractor’s insurance company?

$,$$$,$$$ TRAINLOADS $,$$$,$$$

The whole project is delayed. Construction has been halted - any civil engineers are going to be very meticulous in giving clearance to resume the project. Last report posted had 30 feet of earth on the highway.

The insurance companies will be fighting about this for a decade. Business like NS, JB Hunt, UPS, etc. not only carry insurance for the added expenses they also carry insurance for lost business. Probably the first thing NS’s law department did was to check on the insurance coverage of the contractor doing the Wal Mart project.