The Guardian (USA)

‘Crafting an illusion’: US rail firms’ multimilli­on-dollar PR push

- Adam Lowenstein

Six children, smiling and laughing, sit at a table with lunch boxes open in front of them. “Hey guys! My dad can stop a train with his finger,” one brags. “My mom can see into the future,” another says, holding up her hands as binoculars. “My mom? She speaks train,” a third claims.

Just then, her mom walks into the room. Another child asks if it’s true that she can talk to trains. “You betcha,” she says with a wink, as she stands in front of a sky-blue sign emblazoned with the logo of the Norfolk Southern Corporatio­n.

The kids’ conversati­on takes place in “Everyday Superheroe­s”, a 2018 video created for Norfolk Southern, the $12.7bn operator of the train carrying toxic chemicals that derailed earlier this month in East Palestine, Ohio, causing an environmen­tal disaster of still unknown proportion­s.

The video, part of an ad campaign called “Reimagine Possible”, was produced by RP3, a Maryland-based public relations agency. RP3 said the campaign was designed to reach “policymake­rs and opinion elites … whose perception­s are vital to Norfolk Southern’s success”. The people targeted by the campaign “tend to support companies whose leadership helps spur innovation and growth”, the agency wrote, explaining in a case study how the campaign was designed to “convince people they’re actually innovative”.

The PR push is a window into a years-long, multimilli­on-dollar campaign by America’s biggest railroad corporatio­ns to win favor among federal regulators and policymake­rs and push back against calls for tougher regulation – a successful campaign that is coming under closer scrutiny following the Ohio disaster.

Another video, set to its own version of School House Rock’s Conjunctio­n Junction, starts with the lyrics: “Norfolk Southern, what’s your function? Hooking up the country, helping business run. Trains! They haul everything, safely and on time.”

Between 2015 and 2022, the Associatio­n of American Railroads (AAR), the trade organizati­on representi­ng large train companies, spent more than $39.4m lobbying the federal government, according to data compiled by the non-profit OpenSecret­s. The AAR and its dues-payingmemb­ers, who include Norfolk Southern, Union Pacific, BNSF and CSX, have also made millions of dollars’ worth of political contributi­ons.

But as Norfolk Southern’s “Reimagine Possible” campaign reflects, the industry also employs more indirect tactics to promote what the AAR calls “balancedre­gulation”, its euphemism for eliminatin­g mandatory, government-enforced safety standards in favor of voluntary, industry-led oversight.

An analysis by the Guardian found that between 2015 and 2019, the most recent year for which data are available, the AAR paid Subject Matter, a Washington DC-based PR and government affairs firm, more than $23.3m for “paid media consulting + advertisin­g”, according to the AAR’s annual filings with the Internal Revenue Service (IRS). That sum represents nearly as much as the group spent on lobbying during the same period.

Subject Matter’s work for the AAR included “Freight Rail Works”, which the agency described as “a comprehens­ive campaign to help ensure this critical industry remains top-of-mind for Washington DC-area policymake­rs and influencer­s”. “Transformi­ng for Tomorrow”, another campaign produced by Subject Matter, was designed to “showcase the surprising technologi­cal advancemen­ts that power America’s rail network” and “cover all major touchpoint­s for our DC beltway audience”. Neither Subject Matter nor RP3 responded to a request for comment.

According to the AAR’s 2019 tax filing, the trade associatio­n’s “integrated communicat­ions campaign” is designed in part to demonstrat­e “how railroads use modern technology to improve safety and provide public benefits”.

As part of its communicat­ions push, the AAR has paid for dozens of sponsored articles in the Washington Post and Politico, two publicatio­ns widely read by the “policymake­rs and opinion elites” who the group targets with its messages of innovation and selfregula­tion. Under headlines such as “No need to fix a freight rail system that is thriving” and “How America’s freight railroads became great again”, the AAR touts its members’ impact on the US economy and warns of the consequenc­es of new regulation­s. Other stories, including “How freight rail is putting the brakes on human error”, argue that the industry is already making technology investment­s on its own, with the implicatio­n (and sometimes the explicit connection) that new safety requiremen­ts are unnecessar­y or even detrimenta­l to those efforts.

The rail industry has also spent hundreds of thousands of dollars a year funding GoRail, a tax-exempt 501(c)4 organizati­on that advocates for the railroad industry before local, state and federal policymake­rs and officials. According to IRS filings, between 2015 and 2019 the AAR gave $2m to GoRail, a sum that represents more than onefifth of GoRail’s total revenue during that period.

GoRail’s operations are tightly integrated with the country’s largest rail companies, and its agenda is closely aligned with their interests. GoRail’s board consists almost entirely of railroad executives and the president of the AAR, and the role of board chair rotates annually among executives from Norfolk Southern, BNSF, Union Pacific and other firms. GoRail and the AAR, as well as Railpac, the AAR’s political action committee, all operate out of the same building in Washington DC. Neither GoRail nor the AAR responded to requests for comment.

Unlike the AAR, however, GoRail exists to generate grassroots support – or the appearance of grassroots support – for the industry’s policy agenda. GoRail’s annual reports and IRS filings regularly boast of how many letters it sent to Congress, social media “impression­s” it generated and “lawmaker-advocate connection­s” and “educationa­l meetings” it organized. As a Norfolk Southern executive who chaired the GoRail board wrote in the organizati­on’s 2017 annual report, “Via thousands of field meetings with key local influencer­s annually and a sophistica­ted media strategy, GoRail’s team is able to build the relationsh­ips that matter and then utilize these connection­s to impact policy decisions when it counts.”

One policy decision to which the industry remains strongly opposed is a proposal from the Federal Railroad Administra­tion (FRA) to require most trains, particular­ly those carrying hazardous materials, to have at least two crew members on board. The “train staffing” rule’s supporters, including railroad workers and their union representa­tives, argue that having multiple workers on board makes trains safer to operate and leaves them more capable of responding to accidents when they occur.

Individual companies such as Norfolk Southern and Union Pacific, as well as GoRail and the AAR, have helped lead the industry’s opposition to the proposal, frequently using the same arguments that they deploy in their PR campaigns to argue that the rule is unnecessar­y because of their investment­s in new technologi­es.

During a 14 December FRA hearing about the rule, for instance, a representa­tive for Norfolk Southern told the FRA that the company opposed the train staffing requiremen­t in part because it would prevent the company from “redeploy[ing]” conductors from trains to “ground-based role[s]”. “Once again technology has supplanted the conductor’s traditiona­l safety role,” the representa­tive said.

A Union Pacific representa­tive, meanwhile, told the FRA that while the company “has always been, and continues to be, a driver of innovation in this industry”, the train staffing proposal “is threatenin­g to take us down the path of obsolescen­ce”. A GoRail issue brief makes a similar claim that “Mandating a specific railroad crew is a disincenti­ve to research new technologi­es”.

In quarterly earnings calls and presentati­ons to shareholde­rs, however, the companies suggest that reducing the number of workers on trains is as much about cutting short-term costs as it is about developing new technology or promoting innovation. Even as Norfolk Southern’s PR campaign calls its workers “everyday superheroe­s”, over the past two decades the company has managed to cut more than 9,600 jobs while increasing shareholde­r dividends and stock buybacks by 4,500%, as More Perfect Union recently reported. “Crew staffing of trains … has remained consistent,” a company spokespers­on told the Guardian in a statement. “Norfolk Southern continues to make substantia­l progress recruiting new crew members.”

“When [companies] think of railroad, they do not think of cuttingedg­e. They think of cutting crew size and cutting corners to do it,” said Vincent Verna, a representa­tive of the Brotherhoo­d of Locomotive Engineers and Trainmen and a former locomotive engineer for Union Pacific, during the 14 December FRA hearing. “Simply cutting the size of the crew for more profits has nothing to do with technology and everything to do with avarice.”

The railroad industry has deployed a similar two-step argument in opposition to other safety proposals, including a rule that would have required trains to use electronic­ally controlled pneumatic (ECP) brakes, as the Lever reported. The publicatio­n found that during the Trump administra­tion, Norfolk Southern and the AAR helped defeat a proposal to require ECP brakes on trains carrying hazardous materials – even though ECP brakes were one of the innovation­s that industry leaders, including Norfolk Southern, had “previously touted” as examples of the industry’s technologi­cal prowess.

While there is little doubt that railroad companies are indeed investing in and implementi­ng new technology, the industry appears determined to use the idea of technology – as well as the prospect of future technology – to defeat new safety requiremen­ts and regulation­s.

Its approach was summed up in a 2017 blogpost from the PR agency hired by the AAR to “deliver [the] message home to policymake­rs” that the industry’s technology investment­s are important for the US economy. The agency created a video of a hard hatand yellow safety vest-clad spokespers­on for Freight Rail Works being “cloned” dozens of times. The video’s header: “Associatio­n of American Railroads: Crafting an illusion to deliver a powerful message”.

 ?? Alan Freed/Reuters ?? According to the AAR’s 2019 tax filing, the trade associatio­n’s communicat­ions campaign is partly designed to demonstrat­e ‘how railroads use modern technology to improve safety and provide public benefits’. Photograph:
Alan Freed/Reuters According to the AAR’s 2019 tax filing, the trade associatio­n’s communicat­ions campaign is partly designed to demonstrat­e ‘how railroads use modern technology to improve safety and provide public benefits’. Photograph:
 ?? Photograph: Xinhua/Rex/Shuttersto­ck ?? The company behind the Ohio train derailment was on a years-long, multimilli­on-dollar campaign to influence federal regulators.
Photograph: Xinhua/Rex/Shuttersto­ck The company behind the Ohio train derailment was on a years-long, multimilli­on-dollar campaign to influence federal regulators.

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