EAST PALESTINE — During a quarterly earnings call on Friday, Norfolk Southern reported cleanup costs related to last year’s East Palestine train derailment have topped $1 billion.

According to the latest numbers, the rail disaster has cost the railroad $1.1 billion. That figure, which includes $836 million for environmental-related expenses and $381 million for community assistance and legal fees, is up $150 million from last quarter and is expected to grow as cleanup and environmental remediation continue. The total does not include $101 million picked up by insurance.

Norfolk Southern CEO Alan Shaw acknowledged the end of a “challenging yet transformational year” for the company but expressed pride in the company’s response to the derailment.

“I’m proud that the team responded with unwavering dedication while continuing to advance our strategy that strikes the necessary balance between service, productivity and growth,” he said. “We invested in our people, enhanced our service performance and made a safe railroad even safer.”

Norfolk Southern also announced cost-cutting plans to lay off 7 percent of its managers in 2024 as it reported fourth-quarter revenue at $3.1 billion, down $164 million compared to 2022 as the railroad feels the financial fallout from the derailment. Income was reported at $808 million compared to $1.2 billion in the fourth quarter of last.

On the year, revenue was down $12.2 billion in 2023 or $589 million. Revenue was $2.9 billion, down 41 percent year-over-year. Meanwhile operating expenses jumped up 17 percent to $9.3 billion. Aside from derailment-related costs, Norfolk Southern said that number was “driven by higher compensation and benefits, inflation, and ongoing network congestion.”

Norfolk Southern also plans to find ways to run more trains with the same number of crews by speeding up how quickly cargo moves across the railroad to help reduce its costs.

Shaw voiced an optimistic outlook for the company in 2024 as Norfolk Southern predicts a revenue-growth of about 3 percent this year.

“Norfolk Southern enters 2024 with positive momentum and a focus on driving further productivity gains and operational discipline through aggressive cost management,” he said. “We see growth on the horizon, and we are confident in our ability to deliver industry-competitive margins over time.”