FILE - Portions of a Norfolk Southern freight train that derailed the night before burn in East Palestine, Ohio, Feb. 4, 2023. Norfolk Southern railroad announced on Tuesday, Dec. 5, plans to stop paying relocation aid to people displaced by the derailment right after the one-year anniversary of the crash. Railroad officials reiterated their long-term commitment to helping the town of East Palestine and the surrounding area recover. (AP Photo/Gene J. Puskar, File)

EAST PALESTINE, Ohio — 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. 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.

Norfolk Southern also announced cost-cutting plans to lay off 7% of its managers in 2024 as the railroad feels the fallout from the derailment. Fourth-quarter income was reported at $808 million in 2023 compared to $1.2 billion in the fourth quarter of 2022.

On the year, revenue was down $12.2 billion in 2023 or $589 million. Revenue was $2.9 billion, down 41% year-over-year. Meanwhile operating expenses jumped up 17% 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 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 predict a revenue-growth of about 3% 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.”