financetom
Business
financetom
/
Business
/
US sues Norfolk Southern to stop delays on Amtrak passenger route
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US sues Norfolk Southern to stop delays on Amtrak passenger route
Jul 30, 2024 9:57 AM

WASHINGTON (Reuters) - The U.S. Justice Department filed a civil suit on Tuesday against Norfolk Southern ( NSC ) alleging that the transport company is delaying passenger trains on Amtrak's Crescent Route between New York City and New Orleans in violation of federal law.

Norfolk did not immediately respond to a request for comment.

The Biden administration has made boosting passenger rail service and high-speed rail project a top priority. Congress approved $66 billion in funding for rail projects as part of a massive infrastructure bill in 2021, with $22 billion dedicated to Amtrak and $36 billion made available for grants.

Amtrak wants to break even and double total ridership to 66 million by 2040. Its passenger numbers grew 45% from 2003 to 2019 to 32.3 million.

Amtrak said last year that half of the 46 states it serves have minimal service. Florida, Ohio and Arizona, the Mountain West and Gulf Coast are served by long distance trains that provide no more than one round trip a day.

The 1,377-mile passenger line stops at 33 towns and cities and Norfolk Southern ( NSC ) controls 1,140 miles of rail line on the Crescent Route and handles dispatching for all trains along that segment, including freight trains it operates.

The Justice Department said 266,000 passengers traveled on the Crescent Route last year and only 24% of southbound Crescent Route passenger trains traveling on Norfolk Southern ( NSC )-controlled track arrived at their destination on time.

Federal law requires Norfolk Southern ( NSC ) to give Amtrak passenger trains preference over freight trains but the Justice Department said Norfolk Southern ( NSC ) regularly fails to do so, "leading to widespread delays that harm and inconvenience train passengers, negatively affect Amtrak's financial performance, and impede passenger rail transportation."

"Americans should not experience travel delays because rail carriers break the law," said Attorney General Merrick Garland.

Transportation Secretary Pete Buttigieg said "for half a century, federal law has required freight rail companies to give Amtrak passenger rail service preference on their tracks - yet compliance with this important law has been uneven at best."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Market Chatter: Guidewire to Double India Workforce in Three Years
Market Chatter: Guidewire to Double India Workforce in Three Years
May 28, 2025
06:53 AM EDT, 05/28/2025 (MT Newswires) -- Guidewire Software ( GWRE ) plans to expand its India headcount to 1,000 by the end of 2028, Reuters reported Wednesday, citing a company executive. The company aims to grow its professional services operations in Bengaluru, with India projected to account for nearly one-quarter of its global staff. Service roles will outpace engineering...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Macy's cuts annual profit forecast amid tariff uncertainty
Macy's cuts annual profit forecast amid tariff uncertainty
May 28, 2025
May 28 (Reuters) - Macy's cut its annual profit forecast on Wednesday as the top U.S. department store operator navigates tariff-led uncertainty and cautious spending on apparel and accessories. The company expects 2025 adjusted profit per share to be between $1.60 and $2.00, compared with its prior target of between $2.05 and $2.25. Analysts were expecting annual adjusted profit of...
Macy's cuts annual profit forecast amid tariff uncertainty
Macy's cuts annual profit forecast amid tariff uncertainty
May 28, 2025
(Reuters) -Macy's cut its annual profit forecast on Wednesday as the top U.S. department store operator navigates tariff-led uncertainty and cautious spending on apparel and accessories. The company expects 2025 adjusted profit per share to be between $1.60 and $2.00, compared with its prior target of between $2.05 and $2.25. Analysts were expecting annual adjusted profit of $1.93 per share,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved