Saturday, February 25, 2023

Ohio train derailment spotlights debate over health risks from plastics

Ben Adler
Senior Editor
YAHOO NEWS
Fri, February 24, 2023 

This photo, taken with a drone, shows part of a Norfolk Southern freight train still burning on the the day after the derailment in East Palestine, Ohio, on Feb. 4. (Gene J. Puskar/AP Photo)

In the wake of the Feb. 3 derailment of train cars carrying the toxic chemical vinyl chloride in East Palestine, Ohio, there has been increased focus on rail safety and whether the release of dangerous chemicals could have been averted.

The Norfolk Southern train was traveling eastbound from Madison, Ill., to Conway, Pa., when 38 cars derailed, and a fire broke out in 11 cars that were carrying hazardous materials. In order to prevent a deadly explosion of vinyl chloride, the company then performed a controlled burn, after which air and and water testing showed levels of the substance had dropped, and were now safe for humans. On Thursday, the Ohio state Department of Natural Resources estimated that more than 40,000 fish have died in surrounding waterways since the incident. Residents were told on Feb. 8 that it was safe to return, but since then, many have reported bloody noses, eye irritation, headaches and sick pets.

Vinyl chloride is used to make plastic, mostly polyvinyl chloride, more commonly known as PVC, which is used in products such as roofing materials and telecommunications wiring. Prolonged vinyl chloride exposure — for example among workers in factories producing it — is associated with a heightened risk of liver cancer, brain and lung cancers, lymphoma and leukemia, according to the National Cancer Institute, but PVC is not a known carcinogen for consumers.


Officials continue to inspect the area around the train derailment on Feb. 17. 
(US Environmental Protection Agency/Handout/Anadolu Agency via Getty Images)

Some environmentalists argue that the root cause of the tragedy is the shipping of flammable, carcinogenic substances and that phasing down plastic production would be more effective in protecting public health than regulating freight trains.

“Should we be moving so much liquid vinyl chloride all over the country? My answer is no,” Judith Enck, a former regional administrator of the Environmental Protection Agency (EPA) who is now president of the advocacy organization Beyond Plastics, told Yahoo News.

Enck and her allies believe that plastic production should be reduced for a variety of reasons, including the health risks associated with the production and transportation of hazardous materials, the problem of plastic pollution in waterways, and the growing greenhouse gas emissions caused by plastic.

That idea, however, flies in the face of more than half a century of rapidly increasing plastic use. Worldwide plastic production has grown from 15 million metric tons in 1964 to 380 million metric tons per year today. In 2018, the last year for which EPA statistics are available, 35.7 million tons of plastic were produced in the United States. Plastic has become ubiquitous because it is lighter and cheaper to produce than metal, wood or glass, and more durable than some of those substances. All of the alternatives have their own environmental impacts, such as open pit mining and deforestation.


Ron Fodo, of Ohio EPA Emergency Response, looks for signs of fish in Leslie Run creek in East Palestine on Feb. 20, to check for chemicals that have settled at the bottom after the derailment. (Michael Swensen/Getty Images)

The American Chemistry Council, which represents chemical manufacturers, did not respond directly to questions about plastics, but pointed to a statement issued Wednesday by Chris Jahn, the trade organization’s president and chief executive officer.

“People are understandably concerned and question why we ship hazardous materials,” Jahn said. “We ship them because they are needed across the country and essential to everyday life. These materials are critical to providing safe drinking water, ensuring a plentiful food supply, producing life-saving medicines and medical equipment, and generating many types of energy.”

“The safe transportation of chemicals is a responsibility shared between chemical manufacturers, our transportation partners and the government,” he added. “ACC and its members are committed to working with our transportation partners along with policymakers and other stakeholders to promote the safety of the products of our industry and help protect the public from future accidents.”

Enck argues that the products in which PVC is used, such as water pipes, should be replaced with more sustainable alternatives, such as recycled copper pipes.

“PVC plastic is used to make children’s toys that they chew on, let’s just avoid that,” Enck said. “For years and years and years, I’ve been telling my friends and family, if I visit their home and I notice in the bathroom that there’s a vinyl shower curtain, I tell them to immediately get rid of it, because of the vinyl. And you know that new car smell, or new shower curtain smell? That’s vinyl, and you do not want to be smelling that.”


Two workers separating waste for recycling. (Getty Images)

Other forms of plastic may contain other contaminants. For example, styrene, in styrofoam, can cause eye and breathing problems when humans are exposed to it in large doses, and long-term exposure can cause nervous system damage, according to the CDC.

The Plastics Industry Association didn’t respond to a request for comment.

Despite the widespread existence of recycling programs, many forms of plastic are not recyclable, including PVC and styrofoam. The EPA estimated that in 2018, U.S. plastic waste had grown from 60 pounds per person per year in 1980 to 218 pounds per person in 2018, accounting for 18.5% of all solid waste in landfills — making it the second most common substance in landfills after food. Only 8.7% of plastic was recycled.

While it hasn’t released more recent figures, China’s decision that same year to stop accepting U.S. plastic for recycling — it said that most of the plastic was unsuitable for recycling and had to be discarded — has caused recycling rates to drop. Beyond Plastics estimates that the current U.S. plastic recycling rate is between 5% and 6%, because plastic is cheap to produce and expensive to sort and recycle. Globally, the Organisation for Economic Co-operation and Development (OECD) projects that plastic waste will triple from 350 million tons wasted in 2020 to 1 billion tons in 2060.

Some of that waste ends up in the oceans, where 10 million tons of plastic are dumped annually. And some ends up back in humans, who ingest it — for example, through seafood, since 100% of mussels tested for plastic contain some, according to the California-based nonprofit Plastic Oceans International.


A plastic water bottle floating in the Pacific Ocean off Santa Monica, Calif. 
(Citizen of the Planet/Education Images/Universal Images Group via Getty Images)

When plastic is incinerated — the U.S. burns 12.5% of its waste — it releases greenhouse gases that contribute to global warming and it releases toxic chemicals such as nitrogen oxides and sulfur dioxide.

“A lot of people think of plastic as a problem of waste — we have to keep plastic out of the oceans or out of the environment — but the impacts of plastic are very serious throughout its whole life cycle,” said John Hocevar, oceans campaign director of Greenpeace USA. “Plastic harms human health, our climate and biodiversity, as well as environmental justice, from the very beginning: from the extraction of natural gas, which is the feedstock for plastic, to refineries, which poison the people nearby, to the everyday use of plastic, where thousands of chemicals are added to plastic with very little regulation … and finally, when plastic is discarded — either directly into the environment, or a landfill or an incinerator.”

As the environmental movement has become increasingly focused on combating climate change and ending the extraction of fossil fuels, plastic has also come under increasing scrutiny because it is made from oil or natural gas, which is refined into ethane or propane and combined at high heat with catalysts such as clays.

“From the wellheads and the drill pads where plastic feedstocks are born, to what happens to plastics when they, as they overwhelmingly do, end up in the environment — at every stage of that life cycle, plastics are emitting greenhouse gases into the atmosphere, often at extraordinary levels,” said Carroll Muffett, president and CEO of the Center for International Environmental Law (CIEL). “We see methane leakage from pipelines and distribution infrastructure. Then there are massive emissions associated with plastic refining and production itself. Plastic is among the most energy-intensive and among the highest-emitting among major industrial activities.”


Plastic bails, left, and aluminum bails, right, at the Green Waste material recovery facility in March 2019, in San Jose, Calif. (Aric Crabb/Digital First Media/Bay Area News via Getty Images)

CIEL estimated in 2019 that if global plastic production continues to grow on its current trajectory, by the end of this decade, it will cause more annual carbon emissions than 295 new large coal-fired power plants. By 2050, plastic would consume 10% to 13% of the remaining carbon emissions that the world can allow if it is to stay under 1.5 degrees Celsius of global warming.

The petrochemical industry counters that plastic produces lower emissions than alternative materials and that the products made with plastic — from laptop chargers to MRI machines — help provide a higher quality of life.

Since plastic is so light, it requires less energy to produce and transport than materials such as metal, and it doesn’t require cutting down trees, like wood and paper. According to a July 2022 report from the consulting firm McKinsey, in 13 out of 14 examples it studied, plastic has the lower carbon footprint: PVC pipes produce less emissions than other pipes, plastic bags produce lower emissions than paper bags and so on.

“Our industry is committed to delivering solutions that enable a lower-carbon future, while simultaneously meeting the needs of the world’s growing population,” the American Petroleum Institute's vice president of downstream policy, Will Hupman, wrote in an email sent to Yahoo News via a spokesperson. “Plastics are critical to modern life, and U.S. petrochemical manufacturers are deploying innovative solutions and next generation technologies to reduce emissions throughout the supply chain.”


Personalized water bottles donated by former President Donald Trump on a pallet at the East Palestine Fire Department on Feb. 22, when he was visiting the area. (Matt Freed/AP Photo)

Anti-plastic activists counter that much of the packaging plastic is used for is unnecessary in the first place. Instead of using paper or plastic single-use bags, they say, why not switch to reusable bags?

They argue that the cost advantage of plastic is misleading, because the environmental costs to society are being borne by others, especially communities where plastic is produced. According to the National Cancer Institute, “the highest levels of vinyl chloride are found in air around factories that produce vinyl products.” Last year, a federal court revoked air pollution permits for a plastics plant planned in the Louisiana region called “Cancer Alley,” because emissions from the plant would violate air safety standards in an already polluted area.

“If someone were to come into our community… between 3 and 5 in the morning, they're going to be hit with these extremely pungent smells [like] … burning basketballs and sneakers, because a lot of the facilities are actually plastic-producing and resin-producing facilities,” Yvette Arellano, a resident of the Manchester neighborhood in Houston — which NPR previously described as “ringed by chemical plants” — told NPR in 2021. “A simple act of going to the park can be canceled by strong fumes emitting from down the waterway. It can be feeling sick, you know, having headaches, the need to throw up.”

Arellano runs an environmental justice advocacy group called Fenceline Watch, which issued a statement condemning Thursday’s announcement that toxic wastewater used to extinguish the East Palestine railcar fire will be disposed of in the Houston area, complaining that communities in Texas “are forced to absorb the deadly costs of these toxic disasters.”


Booms are placed in a stream that flows through the center of East Palestine on Feb. 15, as cleanup continues. (Gene J. Puskar/AP Photo)

Environmentalists are pushing legislation at the federal and state levels to restrict the use of plastic. The Break Free From Plastic Pollution Act was introduced by Sen. Jeff Merkley, D-Ore., and Rep. Alan Lowenthal, D-Calif., in 2021, and Hocevar said it will be reintroduced this year. The bill would require producers of plastic packaging and containers to create and pay for programs to dispose of or recycle the waste created, ban some nonrecyclable, single-use plastic products and impose a fee on the plastic bags that remain.

Recognizing that passing an anti-plastic bill in Congress is unlikely in the near term — especially with a Republican majority in the House of Representatives — Beyond Plastics is pushing its own proposal at the state level, the Packaging Reduction and Recycling Act. In the past two years, it has been adopted in California, Oregon, Colorado and Maine. It requires over 10 years for packaging to be cut in half and made fully recyclable, and it imposes a fee on packaging. It also requires reductions of toxic substances and fully bans PVC in packaging. The bill has also been introduced in the New York and Massachusetts state Legislatures.

“I’m willing to go out on a limb and say when agencies say something is a human carcinogen and there are alternatives, we should use the alternatives,” Enck said.

“So much of the media focus [of the trail derailment] has been about the emergency response, and then who do you blame,” Enck said. “Few are asking the basic question: Do we really need vinyl chloride? The toxic train derailment is very much a plastic story.”
EPA could charge Norfolk Southern $70,000 a day if their Ohio derailment clean-up isn't up to par. That could be on top of a growing number of lawsuits already piling up, legal expert says.

Azmi Haroun
Fri, February 24, 2023

A large plume of smoke rises over East Palestine, Ohio, after a controlled detonation of a portion of the derailed Norfolk Southern trains, on February 6, 2023.
AP

Norfolk Southern Railway Company is facing simmering legal issues in the wake of a toxic derailment.


Class action lawsuits are piling on, with federal and state authorities zeroing in on the company's liability.


Soon, insurance companies could be asking the train company to foot hefty bills, a legal expert told Insider.


Norfolk Southern Railway Company's bill for a disastrous chemical spill and train derailment in Ohio could continue to increase, with tightening federal cleanup rules and big money lawsuits.

On Tuesday, the Environmental Protection Agency made Norfolk Southern responsible for the cleanup of the chemicals and the derailment site, with the ability to charge the company $70,000 a day if the cleanup is insufficient.

In the background, a growing number of lawsuits are claiming the company was strictly liable for transporting and spilling the ultra-hazardous materials, and insurers could soon look to sue the company, Michael Miguel, a principal at law firm McKool Smith focused on insurance claims, told Insider. Miguel is not connected to any ongoing cases against Norfolk Southern.

In the weeks since the derailment, the National Transportation Safety Board issued a preliminary report, which stated that a wheel bearing on the train overheated to 253 degrees Fahrenheit above ambient temperatures ahead of the derailment.

Thirty eight train cars derailed, with 11 of them containing hazardous chemicals, according to the report.

"We call things accidents. There is no accident," NTSB chief Jennifer Homendy said at a press conference on Thursday. "Every single event we investigate is preventable," calling the derailment "100% preventable."

The company has agreed to comply with regulators and donated $25,000 to the town and residents within a one-mile radius are eligible to get a $1,000 "convenience" check from the company. The company also released its proposed remediation plan, but will likely face lawsuits from states, locals, and insurers.

Norfolk Southern did not immediately return Insider's request for comment.
Beyond class action lawsuits, insurance companies may target Norfolk Southern

After residents make their claims to their various insurers, the train company then could be in the line of fire of insurance companies.

"Norfolk Southern has its own direct insurance issues," Miguel told Insider. "And then they will likely face direct lawsuits from insurance companies who had paid out to the homeowners and the businesses by way of subrogation, alleging a parade of horribles as to why they should be covered."

Class action lawsuits from residents have already flooded in.


One new lawsuit from law firms Johnson and Johnson and Hagens Berman claims that Norfolk Southern was strictly liable and caused public nuisance through their negligence, and that they should pay back residents and cover future medical expenses.

Hagens Berman represented Ohio in public nuisance litigation against big tobacco companies in 1998, which led to a $260 billion settlement in multiple states.

Residents as far as 20 miles from the crash site have reported health issues, according to the new lawsuit.

"After the derailment, Ms. Hutton noticed a strange odor in her home and her dog became ill and started to vomit," attorneys said in the suit. "In addition, Ms. Hutton's eyes burned, she developed a headache, experienced difficulty and pain while breathing."

The latest lawsuit focuses on the company's 'ultra-hazardous activity'


Their lawsuit, which includes a resident who owns 100 rescue animals, also brings a claim of strict liability for ultra-hazardous activity against the train company, and claims the company violated federal law for not immediately reporting the derailment.

"Defendants were engaged in abnormally and inherently dangerous or ultra-hazardous activity in the distribution, transportation, storage, maintenance, inspection, monitoring and use of hazardous chemicals," attorneys wrote in the lawsuit.

Miguel said that the spacing of the train cars and the controlled release of the chemicals could also be nitpicked by lawyers.

"In terms of culpability for the accident, questions are certainly going to be asked about whether there was appropriate spacing of the chemicals from each other?" Miguel told Insider.

"Writing a bunch of a thousand dollars checks for people that are local isn't going to be the end of the liability for Norfolk Southern," Miguel said.


Opinion
An avoidable disaster. Hold Norfolk Southern, politicians accountable for East Palestine

Akron Beacon Journal Editorial Board

Fri, February 24, 2023

In this photo provided by Melissa Smith, a train fire is seen from her farm in East Palestine, Ohio, on Feb. 3.


(This opinion article represents the collective viewpoint of the Akron Beacon Journal's Editorial Board, which includes two editors and four community members.)


The nightmarish horrors inflicted on the tiny eastern Ohio town of East Palestine should serve as a wake-up call to all Americans.

While accidents are always part of life, what happened when the hazardous cargo of a Norfolk Southern train derailed Feb. 3 is unacceptable and again illustrates why proper safety standards can't be compromised in the name of corporate profits or political victories.

There's still much we don't know about why the train derailed and how much fault Norfolk Southern should bear. There are also unanswered questions on how the emergency was managed and whether the controlled release of vinyl chloride from five rail cars was the best solution.

East Palestine explained: Maps and graphics explain toxic train derailment

But we do know Norfolk Southern recently reported record operating profits, has a poor accident rate when compared to most of its peers, has lobbied against tougher safety standards and favors running heavier and longer trains to maximize profits.

ProPublica reported Thursday that Norfolk Southern policy "allows staffers to instruct crews to ignore alerts from track sensors that flag possible mechanical issues." In October, the company allowed a train with an engine wheel heating up to continue near Sandusky. Four miles later it derailed, dumping thousands of gallons of molten paraffin wax.


Norfolk Southern CEO Alan Shaw pauses for a moment before responding to a reporter's question during an interview near the site of the company's train derailment, Tuesday, Feb. 21, 2023, in East Palestine, Ohio.

We also know federal rail standards have eroded, including dropping mandatory cabooses where personnel could report problems at the back of a train. And it's a fact that the Trump administration repealed a brakes requirement for some trains, stating the cost exceeded its benefits.

Norfolk Southern train likely passed through heavily populated areas


As awful as the scene in East Palestine has been, we keep imagining if this derailment had happened 60 miles earlier in a more populated area along the busy Norfolk Southern line. What would have happened if the same train derailed in Cleveland, Macedonia, Hudson, Ravenna or Alliance? All are along the Norfolk Southern main line, which also had a derailment in November near Ravenna.

The fires alone could have killed many and destroyed buildings while disrupting tens of thousands of lives, not to mention the clear health and environmental concerns from the release of toxic chemicals.

Norfolk Southern route: Train carrying toxic chemicals traveled through many northern Ohio cities before derailing

Expert: East Palestine derailment a horror, but we should worry more about what's on trucks

We empathize with the people of East Palestine in every way possible. They did not ask for their lives to be turned upside down and deserve all the help they need, beginning with clear and factual answers.

We've also been reminded that few of us pay attention to what's inside tanker train cars and semis, although the latter carry much smaller quantities. Many Ohioans are surely looking at and listening to trains roar through their communities with a different state of mind the past three weeks. Local leaders along major rail lines should review their disaster plans.
Politicians worry about votes more than lives

The politics of East Palestine also have been predictably pathetic, with a war of words emerging between Republicans and Democrats about whom to blame, how the response is being handled and score keeping on who has visited the site. Politicians who could not be found near the disaster the first week have flocked in droves the past two weeks, issuing statements and making promises as they go.

With the lone exception of Ohio Gov. Mike DeWine's steady attempts to lead with facts, it's been a disgraceful reminder of how our broken political system harms people.


An employee at Fuller's True Value Hardware brings in a street sign thanking first responders at the end of the work day, Thursday, Feb. 16, 2023, in East Palestine, Ohio. Many East Palestinians were told to evacuate the area after a Norfolk Southern train derailment on Feb. 3 led to a controlled burn of hazardous chemicals.

Most Americans expect our government to balance our safety with sensible regulations for interstate commerce such as rail lines. It's clear the threat of litigation and big damage awards is not enough to protect us any more.

We're tired of the see-saw era of Democrats creating new safety regulations and pro-big business Republicans rolling them back, knowing the proper solution is probably somewhere in the middle.

It's time for our elected leaders to set aside their petty games and craft immediate solutions that can prevent another rail disaster from destroying another community.

Let's hold Norfolk Southern and our leaders accountable for once.


Norfolk Southern has lost $6.7 billion in market cap since the Ohio train derailment, as its stock has lost more than those of its rivals

Market Watch Feb. 23, 2023, 

Shares of Norfolk Southern Corp. NSC bounced 0.4% in morning trading Thursday, after closing the previous session at a four-month low as the railroad operator continued to face backlash from the Ohio train derailment three weeks ago. On Thursday, U.S. Transportation Secretary Pete Buttigieg visited East Palestine, as the Biden Administration has also faced growing criticism over the federal response to the derailment. Norfolk Southern’s stock has tumbled 11.6% since the Feb. 3 derailment, which translates to about $6.68 billion in lost market capitalization. In comparison, shares of rivals Union Pacific Corp. UNP have shed 8.7% since Feb. 3 and CSX Corp. CSX have lost 5.7%. The Dow Jones Transportation Average DJT has declined 5.5% and the Dow Jones Industrial Average DJIA had slipped 2.8% over the same time.


Norfolk Southern is paying $6.5 million to derailment victims. Meanwhile, it’s shelling out $7.5 billion for shareholders

By Chris Isidore, CNN
Wed February 22, 2023

New YorkCNN —

Norfolk Southern CEO Alan Shaw pledged Tuesday the freight railroad will spend $6.5 million to help those affected by the release of toxic chemicals from its derailment nearly three weeks ago in East Palestine, Ohio. But in a plan released earlier this year, the company said it’s planning to spend more than a thousand times that amount — $7.5 billion — to repurchase its own shares in order to benefit its shareholders.

The company spent $3.4 billion on share repurchases last year, and $3.1 billion in 2021, bringing its recent share repurchases to $6.5 billion. That towers over what it said is its financial commitment to East Palestine, which it said exceeds $6.4 million in direct aid to families and government agencies, in addition to what will be required in cleanup costs.

There is no estimate as to the total cost to Norfolk Southern from the derailment, including the cost of cleanup that the Environmental Protection Agency says will be the railroad’s responsibility.

It’s not clear how much of the accident’s cost will fall on Norfolk Southern. The company revealed Wednesday during a conference call with investors that it has as much as $1.1 billion worth of liability insurance coverage that it can draw upon to compensate third parties for losses caused by the accident. It also has about $200 million worth of insurance coverage to cover damage to its own property, such as tracks or equipment.

Billions to shareholders

In March 2022, Norfolk Southern (NSC) announced a new $10 billion share repurchase plan. Its latest annual financial report, filed just hours before the derailment this month, shows that it still had $7.5 billion available to buy additional shares under that repurchase plan as of December 31.

Norfolk Southern did not respond to questions Wednesday on whether it expects to change its share repurchase plans in the wake of the derailment.

The company also returned an additional $1.2 billion to shareholders in the form of dividend payments in 2022, and $1 billion in 2021, bringing total payments to shareholders to $4.6 billion last year and $4.1 billion in 2021.

The shareholders did much better than the company’s 19,000 employees. Total employee compensation in 2022 came to $2.6 billion, up from $2.4 billion in 2021.

The amount that Norfolk Southern and other major freight railroads are spending on shareholders got a lot of attention in December, when they successfully fought a move in Congress to require them to give hourly workers at least seven sick days a year as part of a labor contract imposed on the industry by Congress in order to avoid an economically crippling rail strike. And it’s getting new attention in the wake of the derailment, along with questions about whether the environmental disaster could have been avoided if the railroad had spent more on staffing and safety.

“Corporations do stock buybacks, they do big dividend checks, they lay off workers,” said Democratic Sen. Sherrod Brown of Ohio, on CNN’s State of the Union on Sunday. “They don’t invest in safety rules and safety regulations, and this kind of thing happens.”

Railroads fought safety rules as too costly


The accident is under investigation by the National Transportation Safety Board. While the cause has yet to be determined, it is known that freight railroads have fought tougher safety rules in the past.

One rule the industry successfully fought would have required a more modern braking system on trains carrying significant amounts of hazardous materials. The Federal Railroad Administration, which proposed the rule under the Obama administration, estimated a more modern braking system would reduce by nearly 20% the number of rail cars in a derailment that puncture and release their contents.

The FRA estimated those better brakes would cost the entire industry $493 million, spread over a period of 20 years. The Association of American Railroads, the trade industry group that represents most US freight railroads, estimated a much greater cost — about $3 billion, but again, spread over 20 years. That would mean around $150 million a year for an entire industry that is earning billions of dollars of annual profits.

Still, it was able to block the rule from ever taking effect, based partly on the argument it was too costly for the potential benefit.

“The railroads are quick to point out their lack of funds to provide adequate staffing, paid sick leave and improved safety, yet they have billions of dollars to spend on stock repurchases,” said Eddie Hall, national president of the Brotherhood of Locomotive Engineers, the industry’s second-largest union behind the one that represents conductors.

Share repurchases on the rise

Share repurchases are designed to help increase the value of the stock by reducing the number of shares outstanding.

In theory, each remaining share becomes more valuable since it represents a greater percentage of the company’s overall ownership. The earnings per share, a key measure used by investors to judge a company’s profitability, can rise even if the total dollars earned by the company goes down, as the pool of shares available to the public shrinks further.



But Norfolk Southern’s profits aren’t going down. They’re going up — by quite a bit. It posted record profits from railway operations of $4.45 billion in 2021, and broke that record in 2022 when it earned $4.8 billion on that basis.

Other freight railroads are also reporting improving profits, and have joined Norfolk Southern in massive share repurchases.

Union Pacific (UNP) purchased $6.3 billion worth of shares in 2022, and has plans to purchase an additional 84 million shares, worth more than $16 billion at its current value. CSX repurchased $4.7 billion worth of shares last year and has plans to buy an additional $3.3 billion going forward. Like Norfolk Southern, both UP and CSX spent more on share repurchases than they did on total employee compensation.

Share repurchases are not limited to the rail industry. Chevron (CVX) recently announced plans to repurchase $75 billion worth of its stock with windfall record profits that came from high oil prices. Across corporate America, share repurchases reached almost $1 trillion for the first time last year, coming in at $936 billion according to S&P Dow Jones Indices, up from $882 billion in 2021.

Share repurchases are forecast to top $1 trillion this year.

The Lie Giuliani Told Victims of the Ohio Railroad Disaster

Michael Daly
Fri, February 24, 2023 

AP POOL/AFP via Getty

Live from East Palestine, it’s Rudy Giuliani!


“Welcome to ‘Talk With the Mayor’ or America’s Mayor, whichever you would like better,” he said as he introduced his live podcast on Thursday night. “America’s Mayor sounds kind of nice, right?”

That was the moniker by which he became known after the 9/11 attack, which killed 2,753 people in downtown Manhattan and catapulted him from being a lame-duck embarrassment into a hero among those who saw him on TV. On Thursday, he was podcasting from the scene of a different kind of disaster: a railroad derailment that has left a town of more than 4,700 to wonder if their future is poisoned by dangerous toxins.

“I’m here to help as a former mayor with extensive crisis management experience,” Giuliani said.

He then proceeded to say what he should have said in the aftermath of 9/11, but did not, when confronted with concerns that the toxic fallout from the collapse of the twin towers could cause serious health problems.

“There’s still a lot of questions, and I don’t think those questions are gonna be answered by anyone right away if they’re telling the truth,” Giuliani said in East Palestine. “One of the problems in government is in order to satisfy people, the people in government give the answers that either they think people want to hear, or the answers that they think businesses want to hear, or the answers they want to hear. ”

Trump Admin Is to Blame in Ohio Disaster—but So Is Biden

He spoke as if he had not been one of those people in government who gave answers that were expedient at the moment.

“They don’t do the more difficult thing of saying, ‘I’m sorry, we’re not at a stage yet where we have enough evidence to really make a determination like that,’” he went on.

He said that he initially thought that deaths from the World Trade Center attack ended that day. But, he continued, “it turned out many, many people died of various forms of toxic poisoning that was undetected at the time, even though testing was done,” he continued.

Lie.

As Giuliani knows—and as New York Daily News columnist Juan Gonzalez won a Pulitzer Prize for reporting five weeks after the attack—testing at Ground Zero after 9/11 detected dangerous levels of a host of poisons, including benzene, dioxins, and PCBs. Giuliani nonetheless sought to minimize the threat in an Oct. 26, 2001, press conference.

“The Daily News today had a story about how the zone is a ‘toxic danger,’” Giuliani said. “And the reality is that although obviously very, very close to where the work is being done there are dangers and risks, the reality is far different than the way the article described it.”

He had New York City Health Commissioner Dr. Neal Cohen on hand to further refute the column.

“We don’t believe that there are any risks here with respect to long-term health effects and that occasional uptick in elevated readings that are taken with some of these with pollutants, generally those return to acceptable levels,” Cohen said.

The exact number is hard to determine, but the World Trade Center Health Registry has said that more people have died of 9/11-related illnesses than perished in the attack.

In Ohio on Thursday night, Giuliani gave a warning that would have applied to him 22 years ago.

“No matter what you hear, and no matter how definitive it sounds, I do not logically believe that at this stage people can give you definitive information,” he said. “And if they are, they’re… probably not even lying unless they have some monetary motive, they’re probably trying to feel important.”

The man who made himself into America's mayor by standing in front of TV cameras then said, “One of the problems with television is we put too many people on television, they have to have opinions, and then they make them up.”

One result of Transportation Secretary Pete Buttigieg’s shameful days-late arrival at the scene of the derailment is that he ended up having to wait while Giuliani was meeting with East Palestine’s mayor, Trent Conway. Giuliani still seemed pleased as he gushed about Conway on the podcast afterward.

“He’s a very, very fine man,” Giuliani said. “A very nice man. A very straight, direct, and honest man. An intelligent man. And that's all you need. You don't need to be fancy Mayor Adams to be a good mayor.”

Giuliani then let slip his actual self: the vindictive, jealous, and just plain mean Rudy.

“Sometimes fancy mayors go to jail,” Giuliani said, going on to again name-check the current mayor of New York City. “I’m not saying Mayor Adams would go to jail, but we've had some fancy mayors that have gone to jail.”

Adams does not seem to be in any immediate danger of landing behind bars. But the same cannot be said for Giuliani, who was so unfancy when he assumed office that he used paper clips to hold up the cuffs of his suit pants. He is now being investigated for everything from perjury to insurrection.

After his visit to East Palestine to advise them how America’s Mayor would handle a toxic event, he is lucky hypocrisy is not a felony.

The Daily Beast.


Norfolk Southern alerted to overheated wheel bearing right before Ohio train derailment

Haley BeMiller, Cincinnati Enquirer
Thu, February 23, 2023 

Workers clean up the wreckage of the Norfolk Southern train derailment in East Palestine, Ohio, on Feb 20, 2023.

The crew of a Norfolk Southern train that derailed in East Palestine became aware of an overheated wheel bearing just moments before the wreck and tried to stop the train, the National Transportation Safety Board said Thursday.

The board released initial findings from its investigation three weeks after a freight train carrying hazardous materials derailed and spilled chemicals into the air, water and soil. Five of the derailed cars contained vinyl chloride, which Norfolk Southern officials discharged through a controlled release to prevent an explosion.

Residents have complained about headaches and rashes and worry about the long-term health consequences of the accident. State and federal officials say the air and municipal water are safe, but they've encouraged people with medical concerns to visit a clinic set up in the village.

East Palestine train derailment:

NTSB chair: 'This was 100% preventable'


The NTSB report released Thursday is preliminary. Officials concluded their on-scene investigation Wednesday but will continue assessing the incident, something that's expected to take several more months. As part of that, the NTSB will hold a rare field investigative hearing with invited witnesses in East Palestine this spring.

“I can tell you this much: This was 100% preventable," NTSB chair Jennifer Homendy said during a news conference Thursday. "We call things 'accidents.' There is no accident."


Secretary of Transportation Pete Buttigieg visits with Department of Transportation Investigators at the site of the derailment in East Palestine on Feb. 23.

What the NTSB preliminary report says

As the train traveled through East Palestine on Feb. 3, a hot bearing detector along the railroad issued an alarm instructing the crew to slow down and stop to inspect a hot axle, according to the NTSB report. The train was traveling about 47 mph at the time of the derailment, below the maximum allowed speed of 50 mph.

The wheel bearing failed as crew members tried to slow the train down, Homendy said, and the derailment triggered the train's emergency brakes. The car that set off the wreck contained plastic pellets, which contributed to the fire that broke out.

The train passed two other hot bearing detectors starting 30 miles before East Palestine. The wheel bearing heated up over that time, but Norfolk Southern didn't consider the first two recorded temperatures to be critical. Temperature limits are set by individual railroads, and Homendy said those numbers vary widely.

The bearing was 253 degrees warmer than ambient temperature at the time of the alert.

"You cannot wait until they've failed," Homendy said. "Problems need to be identified early so something catastrophic like this does not occur again."

In a statement Thursday evening, Norfolk Southern officials said they’ve inspected heat detectors in the area and found they were operating properly. The company will look at all other detectors on its system.

“We and the rail industry need to learn as much as we can from this event,” officials said. ”Norfolk Southern will develop practices and invest in technologies that could help prevent an incident like this in the future. We will also work with the owners of the rail cars on the integrity and safety of the equipment we use.”

From here, the NTSB will focus on the wheel bearing, rail car design, and whether the venting and burning of vinyl chloride was carried out properly. Investigators will also look into Norfolk Southern's inspection practices and their use of defect detectors, including the threshold for what's considered a critical temperature.

A spokesman for Ohio Gov. Mike DeWine said he's reviewing the initial findings but still awaits the NTSB's final report and safety recommendations.

Read the full report here:

Haley BeMiller is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

This article originally appeared on Cincinnati Enquirer: Ohio train derailment: NTSB says train had overheated bearing

'Enough with the politics': Derailment investigator takes aim at partisan sniping, misinfo


Gene J. Puskar/AP Photo

Tanya Snyder
Thu, February 23, 2023

The head of the federal probe into the Ohio train derailment lashed out Thursday at "politics" and "misinformation" she said are clouding the ongoing investigation and expressed her exasperation that vital safety recommendations can be ignored amid the noise.

"Enough with the politics on this," National Transportation Safety Board Chair Jennifer Homendy said Thursday at an update on her agency's probe. "I don't understand why this has gotten so political. This is a community that is suffering. This is not about politics."

She was responding to a question about Donald Trump's visit Wednesday to the derailment site in East Palestine, Ohio, which he used to slam Transportation Secretary Pete Buttigieg and the Biden administration for their response.

"There's a lot of misinformation on what would have prevented this," she said. "Everyone is guessing. I saw it all over media, which was driving me nuts. Those solutions, all of the ones I heard of, are not the solutions."

She hinted at an article that circulated soon after the derailment blaming it on a rule that would have mandated faster brakes on some trains, which was withdrawn in 2017. She said those brakes would not have prevented this derailment or even have significantly reduced its severity.

Homendy said the speculation about cause, much of which is false, is doubly frustrating because once the final report is issued, "we get ignored." Though the NTSB investigates serious transportation accidents, the changes their investigations recommend are not mandated unless an agency or Congress decides to act on them.

NTSB's preliminary report released Thursday showed that the engineer at the controls of the Norfolk Southern train that derailed in Ohio tried to stop the train following a warning about an overheating wheel, but by that time several cars had already come off the tracks.

According to the report, before it derailed, the train passed three detectors intended to alert train crew to physical problems, including overheating wheels. Though the train detectors showed one of the wheels was steadily getting hotter, it did not reach a temperature Norfolk Southern considered critical until it passed the third detector and alerted, as outlined by the National Transportation Safety Board.

When the train passed that last detector, the detector “transmitted a critical audible alarm message instructing the crew to slow and stop the train to inspect a hot axle,” the report said.

By then, the engineer was already trying to slow the train because it was behind another train. Upon hearing the alarm, the engineer increased the application of the brakes, and then automatic emergency brakes initiated, bringing the train to a stop.

When it stopped, the crew “observed fire and smoke and notified the Cleveland East dispatcher of a possible derailment,” the report said.

Thirty-eight cars derailed and 12 more were damaged in the ensuing fire.

The hopper car with the overheating bearing was carrying plastic pellets, which caught fire when the axle overheated, Homendy said.

The placards that designate which cars are carrying hazardous materials — and which she said are "critical in response and in protecting the community," were also made of plastic and melted. NTSB may recommend a different material for the placards.

The focus of the investigation is on the wheelset and the bearings. They are also looking at the design of the tank cars themselves, the accident response, including the venting and burning of the vinyl chloride, railcar design and maintenance procedures and practices, Norfolk Southern’s use of wayside defect detectors, and Norfolk Southern’s railcar inspection practices.

NTSB plans to hold a rare investigative field hearing near the site in the spring with the goals of informing the public, collecting factual information from witnesses, discussing possible solutions and building consensus for change.

Mexican states in hot competition over possible Tesla plant


A sign bearing the Tesla company logo is displayed outside a Tesla store in Cherry Creek Mall in Denver, Colorado, Feb. 9, 2019. Mexico is undergoing competition among several states in 2023 to attract a possible Tesla facility.
 (AP Photo/David Zalubowski, File) 

MARK STEVENSON
Fri, February 24, 2023 

MEXICO CITY (AP) — Mexico is undergoing a fevered competition among states to win a potential Tesla facility in jostling reminiscent of what happens among U.S. cities and states vying to win investments from tech companies.

Mexican governors have gone to loopy extremes, like putting up billboards, creating special car lanes or creating mock-ups of Tesla ads for their states.

And there’s no guarantee Tesla will build a full-fledged factory. Nothing is announced, and the frenzy is based mainly on Mexican officials saying Tesla boss Elon Musk will have an upcoming phone call with Mexican President Andrés Manuel López Obrador.

The northern industrial state of Nuevo Leon seemed to have an early edge in the race.

It painted the Tesla logo on a lane at the little-used Columbia border crossing into Texas last summer, and erecting billboards in December in the state capital, Monterrey, that read “Welcome Tesla.”

The state governor’s influencer wife, Mariana Rodriguez, was even shown in leaked photos at a get-together with Musk.

However, López Obrador appeared to exclude the semi-desert state from consideration Monday, arguing he wouldn’t allow the typically high water use of factories to risk prompting shortages there.

That set off a competitive scramble among other Mexican states, like feeding time at a piranha tank. The governors’ offers ranged from crafty proposals to near-comic ones.

“Veracruz is the only state with an excess of gas,” quipped Gov. Cuitláhuac Garcia of the Gulf coast state of Veracruz, before quickly adding “gas … for industrial use, for industrial use!”

A late-comer to the race, Garcia had to try harder: He noted Veracruz was home to Mexico’s only nuclear power plant. And he claimed Veracruz had 30% of Mexico’s water, though the National Water Commission puts the state’s share at around 11%. Water, it turns out, is thicker than blood.

The governor of the western state of Michoacan wasn’t going to be left out. Gov. Alfredo Ramírez Bedolla quickly posted a mocked-up ad for a Tesla car standing next to a huge, car-sized avocado — Michoacan’s most recognizable product — with the slogan “Michoacan — The Best Choice for Tesla.”

“We have enough water,” Ramírez Bedolla said in a television interview he did between a round of meetings with auto industry figures and international business representatives.

Michoacan also has an intractable problem of drug cartel violence. But similar violence in neighboring Guanajuato state hasn’t stopped seven major international automakers from setting up plants in Guanajuato.

Nuevo Leon Gov. Samuel Garcia had to think fast to avoid being shut out entirely, and came up with a novel strategy.

Garcia reached out to the western state of Jalisco, whose governor, Enrique Alfaro, belongs to the same small Citizen’s Movement party. Together, the two came up with an “alliance” Thursday that would allow trucks from Jalisco preferential use of Nuevo Leon’s border crossing, the same one where a “Tesla” lane appeared last year.

Jalisco has an already healthy foreign tech sector, but most importantly, it has more water than Nuevo Leon.

The two appeared intent on playing nice. “We are two states that do not have to compete and cannibalize each other … cannibalization for investment is a mistake,” Alfaro said.

López Obrador’s focus on water might be more about politics than about droughts, said Gabriela Siller, chief economist at Nuevo Leon-based Banco Base. She said the president appeared to be trying to steer Tesla investment to a state governed by his own Morena party, like Michoacan or Veracruz.

That could be a dangerous game, Siller said.

“Tesla could say it’s not somebody’s toy to be moved around anywhere, and it could decide not to come to Mexico,” she said.

Sam Abuelsamid, a principal research analyst at U.S.-based Guidehouse Insights, said playing one state off against another has been common practice in the U.S.

“You remember a few years back, Amazon talked about building their headquarters, like every state, city in the country was putting in bids, trying to lure Amazon there,” Abuelsamid said.

There are doubts that whatever Musk eventually does announce will be an auto assembly plant. Foreign Relations Secretary Marcelo Ebrard said his understanding is that it won’t be a plant, but rather an “ecosystem” of suppliers.

Musk previously has made promises that don’t come true, or happen years after he says they will. For instance, in 2019 he promised a fleet of fully autonomous robotaxis on the roads sometime in 2020. Nearly three years later, Tesla has yet to sell any autonomous vehicles.

While there has been little talk in Mexico so far of subsidies, many auto companies have gotten significant incentives to build plants in Mexico. That kind of race can be costly.

“It’s questionable whether it’s actually that economically beneficial to localities or providing those subsidies,” said Abuelsamid. “They’re sometimes spending billions of dollars in tax breaks to lure a company in there.”

Musk at times has floated the idea of building a $25,000 electric vehicle that would cost about $20,000 less than the current Model 3, now Tesla’s least-expensive car. Many automakers build lower-cost models in Mexico to save on labor costs and protect profit margins.

A Tesla investment could be part of “near shoring” by U.S. companies that once manufactured in China but now are leery of logistical and political problems there. That those companies will now turn to Mexico represents the Latin American country’s biggest foreign investment hope.

“The fight among states to attract investments from this nearshoring phenomenon is going to be tough, complicated,” Alfaro said.

As Ramírez Bedolla put it, “wherever Tesla sets up, it is going to be big news in Mexico.”

Mexican States Woo Tesla as AMLO Makes His Own Pitch



Maya Averbuch and Sean O'Kane
Fri, February 24, 2023

(Bloomberg) -- Ever since Elon Musk flew to Mexico to visit the northern state of Nuevo Leon in October, rumors have swirled about where Tesla Inc. will end up building its plant — and whether another state might snatch away the investment.

President Andres Manuel Lopez Obrador weighed in on the issue this week and didn’t have anything positive to say about Tesla settling in Nuevo Leon. The state near the US border is already filled with industry and lacks water, said AMLO, as the president is known. Instead, he highlighted abundant resources in the country’s southeast and the appeal of moving close to a new airport in the State of Mexico that’s one of his major infrastructure projects.

On Friday, he reinforced the message by saying the company would not receive permits if there was not enough water in northern Mexico.

“If there is no water, no, there would be no possibilities,” AMLO said. “The permits are simply not issued for that, I mean it is not feasible.”

Meanwhile, the governor of the farming state of Michoacan, which is famous for its avocado production, posted an image on Twitter featuring a gleaming car with the popular fruit, sliced in half, sitting in front of it. “The best option for Tesla,” the image reads.

For his part, Nuevo Leon’s governor appeared in a video gifting one of the company’s vehicles to his wife for Valentine’s Day.

Tesla, the US market leader for electric cars, has been expected to announce plans for an assembly plant in Mexico since last year. The factory would be Tesla’s first south of the US border and part of Chief Executive Officer Musk’s promise to build international plants.

Tesla suppliers already have a dedicated lane at a border crossing a few miles from Laredo, Texas, which shares a border with the Mexican state of Nuevo Leon. But AMLO has argued that Mexico’s north has shortcomings for the plant and said he’d raise those in an upcoming conversation with company executives. Originally from the southern state of Tabasco, AMLO has called for greater development in Mexico’s south for decades.

“Mexico as a country does not have a unified foreign direct investment strategy. Each state is independently aiming to attract companies,” said Alberto Villarreal, the founder of Chicago-based Nepanoa, a business advisory firm. “Different states are fighting to have Tesla in their territory.”

The Latin American country, which is one of the world’s largest vehicle manufacturers, has recently seen electric-vehicle investments from BMW and General Motors. It has promised to splurge on solar energy plants in the state of Sonora to supply clean energy to the region. Nuevo Leon is among the top destinations for direct foreign investment in Mexico, drawing in $4.4 billion last year, or almost 13% of the country’s total, according to a Banco Base analysis. But a severe drought in 2022 — that at times left residents without water — raised questions about the state’s limits.

“We celebrate that Mexico has become a place for these auto industry investments. The only thing we want to talk about with the executives is a way of ordering growth,” AMLO said earlier this week at the press briefing. “There are places in the country where there isn’t enough water and we have to save it for domestic consumption.”

Playing Each Other

Tesla has a long history of playing different cities and states against each other for its business. It courted states like Texas, Arizona, and New Mexico when it was searching for a home for its first so-called “Gigafactory” in 2014 before ultimately settling on Nevada, which offered $1.3 billion in tax incentives for the project.

That competition was so successful that Jeff Bezos tried to replicate it when searching for a location for Amazon’s second headquarters, Bloomberg News previously reported. Musk ran an accelerated version of the competition in 2020 after he announced he was scouting locations for a new factory to build Tesla’s Cybertruck, before ultimately settling on Texas.

More recently, Tesla told Texas officials in September 2022 that tax breaks would be crucial to the company choosing a location on the state’s gulf coast for a new lithium refinery. In that same application, Tesla said it was also considering a site in Louisiana. The company didn’t immediately respond to a request for comment on its future Mexico location.

With nothing set in stone, an open fight in Mexico could be risky for the country, potentially leading Tesla to call off the investment, said Jesus Carrillo, the sustainable economics director at the Mexican Institute for Competitiveness, a Mexico City-based think tank.

“I don’t think this debate will change the location, even though there’s an effort by the government to coerce companies where it wants. But the final decision could be to cancel, if there are too many barriers,” Carrillo said.

--With assistance from Carolina Gonzalez.


Tesla can't build in northern Mexico if water is scarce, president says


Mexico's President Andres Manuel Lopez Obrador holds a news conference in Mexico City

Fri, February 24, 2023 

MEXICO CITY (Reuters) - Tesla Inc. would be denied permits to build a plant in the northern Mexican state of Nuevo Leon, where it has eyed investing, if water is scarce, Mexican President Andres Manuel Lopez Obrador said on Friday.

His comments mark the strongest sign yet that his concerns over water supply could become a deal-breaker for Tesla's plans near the U.S.-Mexico border, underscoring critiques from analysts and investors that interference from Lopez Obrador's government is undercutting Mexico's potential as a nearshoring destination serving the U.S. market.

"If there's no water, no," Lopez Obrador told reporters, when asked if he would allow the electric vehicle maker led by billionaire Elon Musk to open a plant in Nuevo Leon, a major industrial hub considered a top contender to land the investment.

"Simply put, we don't give out permits for that. It's not feasible."

Tesla did not immediately respond to a request for comment.

Lopez Obrador called out arid Nuevo Leon for its water scarcity earlier this week, instead touting the benefits of Mexico's poorer southern region where he has sought to increase development.

In 2020, he said he would withhold permits for a Constellation Brands brewery in the northern state of Baja California after criticizing the project for consuming too much water in a dry zone. On Friday, the leftist leader praised Constellation for choosing to relocate to a state in southeastern Mexico.

"They understood very well," Lopez Obrador said. "They are now building their plant in Veracruz."

(Reporting by Daina Beth Solomon and Raul Cortes; Editing by Alistair Bell)

Mexico Has Conflicting Yet Interesting Ideas for Tesla’s Future


José Rodríguez Jr.
Fri, February 24, 2023

Image: State of Michoacán

Elon Musk is headed to Mexico soon to speak with the president about Tesla building a production plant in the country. Rumors of Tesla’s big move south have been ongoing for months, but Musk hasn’t confirmed where, exactly, Tesla plans to build its latest Gigafactory — or whether it will be built in Mexico at all.

President Andrés Manuel López Obrador, or AMLO, is scheduled to meet with Elon Musk to discuss Tesla’s future, according to Bloomberg. And, of course, AMLO will pitch his own ideas regarding where Tesla should settle in Mexico.

For now, the front-runners in the race for the coveted Tesla Mexico plant are the northern state of Nuevo León and the State of Mexico proper, where AMLO’s new airport is trying to attract foreign companies in order to build a major trade zone in the heart of the country. Nuevo León already hosts many of Tesla’s suppliers, and has even granted Tesla its own dedicated lane on the U.S.-Mexico border. Both of these locations would make sense.

But we can add the southern state of Michoacán to the list. Not because the state boasts a major port catering to the auto industry, but because the state governor has made a compelling argument through avocados. It seems that Michoacán’s governor, Alfredo Ramírez Bedolla, knows the way to anybody’s heart is through the stomach:



Avocados are the most famous and lucrative export of the state, but the governor goes on to say that, “Michoacán is the best option for Tesla and other global brands looking to invest and build on Mexican soil.”

Now that politicians in Mexico are vying for Musk’s attention — and getting weirder with their efforts to woo Tesla — the governor of Michoacán convinced some intern to mock up an EV with absolutely zero sidewall and little resemblance to any model that Tesla makes. Still, I admire the unhinged effort as well as the fact that the governor believes Tesla would ever build a two-door vehicle.

At the very least, it’s more creative than efforts from Nuevo León’s governor, who publicly gifted a Tesla to his wife for Valentine’s Day (link in Spanish.) But the Mexican president might take a different tack than his fellow politicians by threatening to withhold permits if Tesla decides to build in the North. It’s a risky move on AMLO’s part, but not altogether unfounded.

As Bloomberg reports, water has been scarce in northern states and that could impact the industry:

President Andres Manuel Lopez Obrador weighed in on the issue this week and didn’t have anything positive to say about Tesla settling in Nuevo Leon. The state near the US border is already filled with industry and lacks water, said AMLO, as the president is known. Instead, he highlighted abundant resources in the country’s southeast and the appeal of moving close to a new airport in the State of Mexico that’s one of his major infrastructure projects.

On Friday, he reinforced the message by saying the company would not receive permits if there was not enough water in northern Mexico.

“If there is no water, no, there would be no possibilities,” AMLO said. “The permits are simply not issued for that, I mean it is not feasible.”

[...]

“There are places in the country where there isn’t enough water and we have to save it for domestic consumption.”

As if that weren’t enough, the Mexican military has slowly been establishing a stronger presence in the North as the country struggles to contain cartel violence, which has been historically concentrated in Mexico’s border states.

The president makes no mention of cartel violence in his remarks, but the concern is always valid. A kind of background condition that many in the country have accepted. The point is that AMLO will try to convince Musk that building a plant away from the Mexican capital could be a risk.

AMLO is from the South, however, so his pitch is somewhat biased. And one of the major promises during his presidential campaign was that he’d help bring more money to southern Mexico via development.

In the end all this competition could put off Musk and Tesla from actually making any major investments, as Bloomberg notes. While that is a possibility, it seems unlikely. A sibling rivalry between Mexican states is hardly enough to shoo Musk away when so many of Tesla’s competitors run production plants in the country.

Chinese automakers are also gaining ground there, and most likely playing the long game with EV production in the West — attempting to gain a foothold via Latin America. So, it looks like Tesla is destined to remain or grow in Mexico in some form or another. It’s just a matter of when, where and who has the best avocados in the country.

 Jalopnik


Ukrainian soldiers with life-changing war injuries posed for portraits saying they are 'living monuments' of a brutal war

Mia Jankowicz
Fri, February 24, 2023 

Oleksandr lost both his lower legs to a Russian missile.Marta Syrko

Ukrainian photographer Marta Syrko has asked war-injured soldiers to sit for her.


Oleksandr, who lost his lower legs, said he wanted to show that injured bodies can be powerful.


The pictures, both stark and tender, are a reminder of the human cost of Putin's war.


Last summer, 26-year-old Oleksandr was resting in a trench.

Exactly six months earlier, he had been working as a barista while he trained in graphic design. But after Russia invaded, he became a leader in a mortar batallion.

He was exhausted. The safest place to rest would have been under tree cover along with his squad, but there was no more room there. So he drifted off in the trench.

The next thing he knew he was buried in soil, his legs in excruciating pain. After his friends had scrabbled through the earth, they laid him on his front, not wanting him to glimpse his legs.

It was August 24, Ukraine's independence day, and Ukrainians suspected Russia would seek grim trophies.

Oleksandr's lower legs were later amputated.

He told Insider he accepted his injuries "from the first moment" the missile hit him. (He spoke to Insider through an interpreter.)

So when photographer Marta Syrko asked Oleksandr to sit for her, he felt he could send a message with his body: among other things, to show the world the carnage Putin is inflicting and the cost of defending his country.
'We need an artist, not just a photographer'

One of Syrko's main subjects is bodies. A skim through her Instagram feed shows the human form in all its glory, from an advertising-perfect washboard stomach to the soft millefeuille creases of her grandmother's skin.

After Russia's invasion, however, more and more people were returning to her hometown of Lviv with life-changing wounds.

So she approached a rehabilitation clinic near the city to ask if any of the soldiers — whose bodies had been radically transformed by war — would let her take portraits of them.

Four men agreed, three of whom lost limbs and one who received serious burns.


Serhii agreed to become one of Syrko's "Heroes."Marta Syrko

Among the soldiers was Serhii, pictured above cradling his second child, who had his leg torn off in the shockwave of a blast near Izyum, in Kharkhiv Oblast.

Another, Stanislav, also lost a leg last summer, in Bakhmut — one of the most fiercely contested cities in the entirety of Russia's bloody war.

Syrko said she was inspired by the classical statues she saw in museums like the Louvre.

Foundational for Western art history, they, too, through wear and tear, are often missing limbs.

Illya Pylypenko received severe burns in a tank.Marta Syrko

Later, Neopalymi, a charity devoted to treating and rehabilitating people with severe burns, approached Syrko with a request. They asked her to photograph Illya Pylypenko, a soldier who had burns on much of his body after his tank caught fire.

Syrko's unflinching photos of Pylypenko show how his face, in particular, was transformed.

A photo portrait by artist Marta Syrko of Ukrainian soldier Ilya, who was badly burned. Ilya is seen topless in a three-quarter view, chin in hand, looking ahead. Skin on his hand and arm, and much of his face, is badly damaged with red-colored burns on his otherwise white skin.

Neopalymi, a burns rehabilitation center, asked Syrko to photograph Illya Pylypenko.Marta Syrko

Maksym Turkevych, Neopalymi's CEO, told Insider in an email that the project needed "an artist, not just a photographer."
'We don't know what to say. How to behave.'

Syrko's work has many fans, but she said she's had occasional comments from people who say she's exploiting disabled people through her work.

Asked about this, Syrko — who is able-bodied — said her aim is to make a real and complex discussion happen.

"It's a hard question for Ukrainians now, because we don't know how to act near them," she said. "We don't know what to say, how to behave. And so that's why we have to discuss it."


Stanislav also lost his lower leg.Marta Syrko

For Oleksandr, the decision to become a "monument" for Syrko's photos, as he put it, was a deliberate choice that he embraced.

He liked Syrko's thinking about statues, saying in an Instagram post that people like him are "living monuments, who have been close-up witnesses to war."


Serhii, pictured here with his son, lost part of his leg near Izyum.Marta Syrko

But public attitudes can be disappointing, even though he was injured defending their homeland, he said. People "look away, and they break into lively talk when 'monuments' walk past."

Society, he said, stops seeing these bodies as beautiful.

"I wanted to become something that would inspire others like me to feel that people are looking at them not with shame, but with exaltation!" he wrote.

This was Neopalymi's goal, too. "The main reason for us to do it is to show the society that there is a beauty in it, and that they should not be scared or disgusted by this," said Turkevych, the CEO.


Syrko's unflinching images of Illya show the effects of his burns.Marta Syrko

With a 122,000-strong Instagram following, Syrko said she had conversations with her subjects about the exposure the pictures could bring.

"I told them that they are probably going to be a little bit popular," she said. And so they turned out to be — her pictures have been shared by the Ukrainian Ministry of Foreign Affairs' Twitter account, and by newspaper Ukrainska Pravda.



Oleksandr told Insider, laughing, about his surprise when he arrived at the studio and realized that Syrko wanted him to pose nearly nude.

But he quickly got comfortable. "Marta's the kind of person with whom you can feel comfortable and free," he said.
Rebuilding an accessible Ukraine

Oleksandr spoke to Insider from the US, where thanks to a partnership with Ukrainian organization Without Restrictions, he has been undergoing intensive rehabilitation.

There, he's learning to walk and run on high-tech prostheses. But for some weeks before he flew out, he was using a wheelchair.

Syrko photographed Stanislav in her contemplative artistic style.Marta Syrko

While the Ukrainian government has not confirmed exact numbers of casualties, the number of people with life-changing injuries — whether civilian or soldiers — is likely to make accessibility a key concern for the country's future.

It's a realization echoed by disability organizations supporting relief efforts in Ukraine, who at a joint conference last year issued the Riga Declaration, a document calling for the country's rebuilding to employ universal design principles.

"A lot of cities are in a rebuilding phase," Syrko said, envisioning a new, post-war Ukraine. "We can start to build it from zero — why can't we do it correctly?"

US VP Harris defends abortion pill facing legal attack



Fri, February 24, 2023 
By Trevor Hunnicutt and Jeff Mason

WASHINGTON (Reuters) - Vice President Kamala Harris defended the abortion drug mifepristone on Friday, calling attacks against it another attempt to attack fundamental rights in the United States, as some activist groups work to end American sales of the pill.

Anti-abortion groups have brought cases against the U.S. Food and Drug Administration (FDA) claiming the agency used an improper process to approve mifepristone in 2000 and did not adequately consider its safety for minors.

Medication abortion has drawn increasing attention since the U.S. Supreme Court last year reversed its landmark 1973 Roe v. Wade ruling, which had guaranteed abortion rights nationwide.

Democratic President Joe Biden directed federal agencies to expand access to medication abortion in response to the decision, which has allowed more than a dozen Republican-led states to adopt new abortion bans.

Harris met with reproductive rights groups on the topic at the White House, and said attacking the drug is akin to going after the very foundation of the American public health system and is not just an attack on women's fundamental freedoms.

She said there are "partisan" and "political attacks" questioning the legitimacy of the scientists and doctors who had conducted research on the drug, which was approved 20 years ago.

"We are now in a situation where there is an attempt to further attack fundamental rights to healthcare, in that there is an attack that has been placed against the ability of doctors to prescribe and people to receive medication to allow them to make decisions about their reproductive health," Harris said.

Administration officials fear that courts could disrupt access to the medication, which is also used to help women dealing with miscarriages.

Mifepristone is approved for medication abortion in the first 10 weeks of pregnancy in combination with another drug, misoprostol. Medication abortion accounts for more than half of U.S. abortions.

The FDA has said that pulling mifepristone from the market would force women to have unnecessary surgical abortions and greatly increase wait times at already overburdened clinics.

Major medical organizations, including the American College of Obstetricians and Gynecologists, weighed in on the side of the government, saying mifepristone "has been thoroughly studied and is conclusively safe."

(Writing by Nandita Bose; Editing by Leslie Adler and Jonathan Oatis)

Debate grows among Lula's team over Brazil fuel tax policy
Fernando Haddad, Brazilian politician and academic and Lula

President of the Workers' Party Gleisi Hoffmann looks on during a news conference in Brasilia

Fri, February 24, 2023 

BRASILIA (Reuters) - A debate has broken out among senior aides to Brazilian President Luiz Inacio Lula da Silva over fuel taxes, underlining the competing views within his circle over the future path of his nascent leftist administration.

Former far-right Jair Bolsonaro unveiled the fuel tax cut last year as he sought to ease inflation and win over voters ahead of the election which he eventually lost to Lula. Since Lula's victory, debate has raged within his Workers Party (PT) over what to do with the costly and popular measure.

Lula's Finance Minister Fernando Haddad has long opposed the waiver, arguing privately that it hurts public coffers and undermines Lula's green agenda, according to two sources from the ministry who requested anonymity to speak candidly. Publicly, Haddad has said ultimately it would be up to Lula to decide.

"The decision (to extend the tax waiver only to February) was taken by the president, who, obviously, can revisit the matter," he said after a January meeting with Febraban, the lobbying group representing Brazilian banks.

Others in Lula's circle have convinced the president to extend the waiver on diesel and biodiesel until December of this year, and on gasoline and ethanol until February.

Tensions are now mounting over whether to extend further the gasoline and ethanol tax waiver.

In his fiscal plan, presented in January, Haddad included the reintroduction of taxes on gasoline and ethanol starting in March. That would generate 29 billion reais ($5.6 billion) in federal revenue and add fiscal backing to Lula's social spending plans.

But this stance is seen as too market-friendly by some of the leftists in Lula's camp, and on Friday that debate broke out into the open.

In a series of Twitter posts, Congresswoman Gleisi Hoffmann, president of Lula's Workers Party (PT), said fuel taxes should only resume once state-run oil giant Petrobras defines a new pricing policy.

"This will be possible starting April when the Board of Directors is renewed with people committed to the reconstruction of the company and its role for the country," she said.

Hoffmann added that a "fairer pricing policy" is needed for Petrobras, which currently pegs domestic fuel prices to international oil rates, which makes pump prices more expensive when the commodity and the U.S. dollar appreciate.

"We are not against taxing fuels, but doing so now penalizes consumers, generates more inflation, and violates campaign commitments," she wrote.

The Finance Ministry and the Presidential Palace did not immediately respond to requests for comments.

Vice-President Geraldo Alckmin said on Friday the government had not yet made a decision on fuel taxes.

Central bank governor Roberto Campos Neto, who is under pressure from Lula and his allies to reduce interest rates, has said the re-taxation of fuels would add short-term inflationary pressure, but would improve Brazil's fiscal situation, arguing it would have "a beneficial effect going forward."

(Reporting by Marcela Ayres; Editing by Brad Haynes and Aurora Ellis)
European thirst for tequila aggravates agave crunch


 Blue agave hearts are pictured on top of a truck on the outskirts of Tequila

Thu, February 23, 2023 
By Richa Naidu and Valentine Hilaire

LONDON/MEXICO CITY (Reuters) - He can't pour tequila fast enough. Premium shots. Margaritas. Palomas. The occasional sunrise.

"We definitely run out every weekend," says Shubham Walavalker, a 24-year-old bartender, who's struggling to keep pace with customers' thirst for the spirit at a packed Revolution bar in southwest London.

Tequila, the king of Mexican liquors, is taking off in Europe. Export volumes to Spain jumped 90% last year, to France 73%, Britain 68% and Germany 60%, according to Mexico's Tequila Regulatory Council, outpacing global growth of 23%.

The challenger - a favourite in North America - is a long way from making a dent in the historic European dominance of vodka, whisky, rum and gin. It's gained a foothold, though, and is the fastest-growing spirit in the region, according to Jose Cuervo seller Proximo Spirits.

There's a spiky snag, though.

European demand is deepening a shortage of agave, the prickly plant native to Mexico's Jalisco region that's used to make tequila.

The cost of agave - about 5-7 Mexican pesos ($0.27-$0.37) per kilogram for much of the past two decades - has been edging up in recent years and hit 31 pesos at the end of 2022, according to research firm Bernstein.

The current forecast for the end of 2023 is 28 pesos, though Bernstein analyst Trevor Stirling cautioned that demand had "kept surprising on the upside".

"It's a supply-and-demand issue," he said. "There is a massive shortage of agave in the tequila industry."

Tequila prices have leapt.

People in Europe paid nearly 16% more for the spirit in stores in December compared with a year before, while prices for whisky rose 6% and vodka increased 5%, according to data from NielsenIQ. Gin prices were flat.

Compounding matters, the flow to Europe of high-quality 100% agave tequila - which has to be bottled in Mexico - has also been constrained by the supply-chain chaos from COVID-19.

"It's the plant that's expensive, and so is getting it over here from Mexico," said Robyn Evans, manager of the Hacha agaveria, a bar specialising in tequila and mezcal in east London.

Customers are paying about 50 pence ($0.57) - or over 10% - more for some neat shots than they would have a year ago, the 31-year-old said on a busy Friday night as music blared and punters sipped "mirror margaritas".

"There's definitely been an increase in tequilas consumers are familiar with," she added. "I've noticed more marketing ... it's newer brands that want to hit the ground running as well as larger brands that have been here for a while as well."

TEQUILA ON 'THE ROCK'

Liqour giant Diageo, which doesn't break out European results, said last month that its global tequila sales volumes rose by 15% in the second half of 2022, far outpacing overall spirit sales, which edged up 3%.

The Mexican spirit accounted for 11% of its reported net sales, with Don Julio - which can sell for anything between about $50 and $250 a bottle - rising 26% and Casamigos 29%.

European demand isn't a 2022 flash in the pan, according to some industry players who say tequila had been slowly gaining traction for years and was boosted by home drinkers during the pandemic.

Export volumes to Britain, Germany, France and Spain rose by about 60% on average in 2021 even before the bigger leap of about 73% last year, according to data from Mexico's Tequila Regulatory Council.

Michael Merolli, head of Pernod Ricard's tequila business, which includes Olmeca, said there were far fewer tequila brands in Europe than the United States, where the market was more mature and competitive, with new brands emerging every week.

He said "premiumization" - where brands emphasize quality and exclusivity - was also driving prices higher.

U.S. A-listers like Dwayne "The Rock" Johnson, Kendall Jenner and Kevin Hart have all launched tequila brands in recent years.

Some industry players see a respite from the shortage of agave, which takes roughly seven years to mature before it can be harvested.

Agave that had been planted a few years ago will eventually be ready to harvest, said Luis Fernando Felix, head of the U.S. and Canadian operations at Proximo Spirits, the subsidiary of Mexican distiller Becle that manages Jose Cuervo distribution.

"In about two years, the price of agave will go down because supply is going to be greater than demand," he added.

($1 = 0.8085 pounds; $1 = 18.7636 Mexican pesos)

(Reporting by Richa Naidu and Valentine Hilaire; Editing by Matt Scuffham and Pravin Char)