Prototype News

Trinity reported total company revenue of $506.2 million for the second quarter ended June 30, 2025, down 39.8% from the prior-year period’s $841.4 million. It attributed this to “lower external deliveries in the Rail Products Group.” Additionally, quarterly income from continuing operations per common diluted share (EPS) came in at $0.19 vs. $0.67 in 2024.

Operating profit for second-quarter 2025 was $95.4 million, down 32.7% from second-quarter 2024’s $141.9 million, reflecting “lower external deliveries in the Rail Products Group, lower gains on lease portfolio sales, and costs associated with workforce reductions, partially offset by lower selling, engineering, and administrative expenses,” Trinity said.

Rail Products Group revenue came in at $293.5 million in second-quarter 2025, falling 53.7% from $634.2 million in 2024, due to “lower deliveries.” In the six months ending June 30, 2025, the Group delivered 1,815 railcars; received orders for 2,310 railcars, valued at $318.3 million; and had a backlog value of $2.0 billion. This compares with first-quarter 2025’s 3,060 railcars delivered; 695 railcars ordered, valued at $109.3 million; and a backlog value of $1.9 billion.

For the Railcar Leasing and Services Group, revenue was $302.4 million in second-quarter 2025, up 7.4% from the prior-year period’s $281.4 million. The company attributed this to “higher lease rates, as well as favorable pricing on, and the mix of, external repairs in the maintenance services businesses.”

Lease fleet utilization—including wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements—came in at 96.8% vs. second-quarter 2024’s 96.9%. The Future Lease Rate Differential (FLRD) was positive 18.3% at the end of second-quarter 2025 vs. positive 28.3% for the prior-year period due to “continued strength in current lease rates.” According to Trinity, FLRD calculates the “implied change in lease rates for railcar leases expiring over the next four quarters” and “assumes that these expiring leases will be renewed at the most recent quarterly transacted lease rates for each railcar type”; FLRD is “useful to both management and investors as it provides insight into the near-term trend in lease rates.”

“In our Railcar Leasing and Services segment, the market has remained strong with utilization of 96.8% and an FLRD of 18.3%, which gives us confidence that the industry fleet is in balance,” Savage said. Year-over-year segment revenue increased by 7.5% as we continue to re-price our fleet upward. Additionally, Trinity continues to find consistent opportunities in the secondary market as both a buyer and a seller. In the Rail Products Group, our margins reflect the strategic initiatives we have undertaken over the last several years that give us the ability to perform in a low volume environment.”

Looking ahead, Trinity reported that it expects industry deliveries of approximately 28,000 to 33,000 railcars in 2025. Additionally, this year it would have a net fleet investment of $250 million to $350 million; operating and administrative capital expenditures of $45 million to $55 million; and EPS of $1.40 to $1.60, which the company said, “excludes items outside of our core business operations.”

“In keeping with our capital allocation strategy, we capitalized on favorable mar-ket conditions and repurchased shares worth $39 million year-to-date to further optimize our balance sheet position. We are maintaining our full year EPS guid-ance of $1.40 to $1.60, which reflects our expectation of improved deliveries from second quarter levels and continued improvement across the business in the second half of the year,” Savage concluded.

For more financial information, visit Trinity’s Investor Relations webpage.

The post Trinity’s Savage: 2Q25 Results Highlight ‘Robust Performance’ appeared first on Railway Age.

Canadian Pacific Kansas City’s “exceptional team of railroaders again delivered strong operating and financial results in the second quarter as we realize more of the value created by this unrivalled North American network,” said President and CEO Keith Creel in reporting the transnational Class I’s second-quarter 2025 results. Railway Age’s twice-honored Railroader of the Year also had much to say about the proposed Union Pacific-Norfolk Southern merger.

CPKC volume, measured in RTMs (revenue ton-miles), increased 7%, compared to 2Q24. Revenues increased 3% to C$3.7 billion from C$3.6 billion. The reported operating ratio (OR) decreased 110 basis points to 63.7% from 64.8%. The core adjusted OR decreased 110 basis points to 60.7% from 61.8%. Reported diluted EPS increased to C$1.33 from C$0.97. Core adjusted diluted EPS increased7% to C$1.12 from C$1.05. Federal Railroad Administration (FRA)-reportable personal injury frequency decreased to 0.77 from 0.84; however. FRA-reportable train accident frequency increased to 0.97 from 0.70.

“Our dedicated team pulled together to overcome challenges in portions of our southern U.S. network following our complex [information technology] system integration,” said Creel. “Across our network, we are focused on delivering the service our customers expect as we carry growing momentum into the second half of 2025. We are executing our strategy by capitalizing on a range of opportunities unique to our three-nation network, opportunities to grow our business by supporting our customers in reaching new markets. Looking ahead, we remain confident in our ability to deliver on our full-year guidance while realizing sustainable growth that provides value for our shareholders, customers and all stakeholders.”

As expected, Creel was peppered with questions from analysts about Union Pacific’s proposed acquisition of Norfolk Southern, which he termed “the proverbial elephant in the room,” could impact CPKC. UP+NS will be the first major combination to be considered by the Surface Transportation Board under the new merger rules established by STB in 2001. The Canadian Pacific-Kansas City Southern transaction did not fall under those guidelines, due to KCS’s relatively small size.

Creel questioned if a U.S. transcontinental merger that could eventually result in four Class I’s—two massive East-West systems: UP+NS, followed by BNSF+CSX, plus CPKC and CN—is necessary and “in the public interest.” Shippers, he said, are concerned, as they well-remember the 2021-2022 service problems driven by crew shortages and other factors, not the least of which was the COVID-19 pandemic. He added that the railroads need to do more to develop interline commercial partnerships and improve interchanges by adding run-through trains. Those opportunities, he said, have not been exhausted—and that applies to CPKC as well.

“I guarantee there are some customers out there, sitting on the edge of their seats, looking at their existing supply chains, trying to hedge their bets, thinking, ‘What’s at risk?’” Creel said. In 2021 and 2022, “those customers experienced a lot of pain and suffering … They’d be irresponsible not to start looking at alternatives. A network that big, if it gets sick, is not isolated to a particular geographic region of the nation. The entire nation’s going to get sick. That’s the magnitude of this. This does not just affect UP and NS. UP and NS both know this, the regulator knows this, we all know this. This … could well and might likely trigger additional industry consolidation, an endgame scenario. They’re speaking to the entire industry. They’re speaking to every customer that ships on any rail network in North America, and it is a North American rail network. The gravity of this is not to be taken lightly. Rest assured, the STB will want to get this one right.”

UP and NS, Creel noted, despite claiming they will not be distracted, “will be under enormous pressure.” He added he “believes [UP CEO] Jim Vena to his word when he says he’s not taking this lightly,” that Vena understands how complex an undertaking this is.

UP+NS, Creel added, “cannot be judged in isolation,” and their STB merger application “must address a fundamental redrawing of the railroad map. The STB will give the merger a diligent, fact-based review under the untested 2001 rules. We will be a loud voice in the room, active observers and participants. We will participate in the discussions. And we will be heard and understood.”

The new merger rules require the applicants to demonstrate how their combination would enhance competition, not simply preserve it. Concessions will be sought, such as sole-served customers being allowed to access a second carrier. Creel noted that CPKC will, at the very least, seek unrestricted access to UP’s Gulf Coast petrochemical traffic as well shippers in St. Louis and Kansas City. Such access “would enhance competition and allow us to take traffic to Canada or Mexico, other points on U.S. system, or to interchange partners,” Creel said. “The strength of this network we put together allows us to compete and win in any of these scenarios.”

When asked if CPKC—already a transnational with a Canadian transcontinental network— would consider becoming part of a larger combination, Creel didn’t dismiss the possibility. It’s one of the options that would need to be reviewed “as part of our obligation to maximize shareholder value,” Creel said. “We won’t be confined by the traditional, so maybe expect the unexpected. Who knows?” Yet, he added, “The way we connect all three nations has given us a chance to create unique partnerships and alliances. [Southeast Mexico Express] with CSX is just one example.”

The post CPKC 2Q25: ‘Strong Growth, 2H25 Momentum’; UP+NS Perspective appeared first on Railway Age.

Women are significantly influencing today’s rail industry. Railway Age’s 2025 Women in Rail awards program will honor 25 trailblazers for their achievements in our November issue and at our 2026 Women in Rail conference. These outstanding railroaders will be selected based on their leadership, vision, innovation and accomplishments. This award celebrates women leaders in rail and women trailblazers with a track record of breaking down barriers and helping to create industry opportunities for women. Entries will be judged by Barbara Wilson, Senior Advisor at Railroad Financial Corporation, and Catherine Rinaldi, Executive Vice President of Gateway Development Commission, with input from the Railway Age staff.

Eligibility:

• The nominee must be located within the 50 states, Canada and/or Mexico.
• There is no limit on the number of entries each firm or person can submit (multiple nominations for one candidate do not boost chances), and there is no entry fee.
• Nominees may come from any area of the railroad industry (freight/passenger, engineer/builder/supplier, government/regulatory, etc.).
• Candidates may nominate themselves.

Judging Criteria:

• Industry experience and education.
• Leadership skills.
• Industry contributions.
• Community service involvement.

Portrait Photo: If a nominee is selected as an honoree, we will be in touch to ask for a high-resolution (preferably 300 dpi or higher) headshot.

Entries are final. Please have your responses fully prepared before submitting.

Read about our prior-year honorees here:

• 2024 Women in Rail Honorees
• 2023 Women in Rail Honorees
• 2022 Women in Rail Honorees
• 2021 Women in Rail Honorees
• 2020 Women in Rail Honorees
• 2019 Women in Rail Honorees
• 2018 Women in Rail Honorees
• 2017 Women in Rail Honorees

And don’t miss the 2025 Railway Age / RT&S Women in Rail conference, to be held Oct. 15-16 at a new, larger venue in Chicagoland. This must-attend industry event highlights diverse experiences and practical strategies for moving the industry forward. Spanning two days, the Women in Rail conference features dynamic panels, a celebratory awards luncheon, and the chance to network with a wide-reaching group of like-minded rail professionals. Bonus: Tour CPKC’s Bensenville Yard.

The post Nominations Open for 2025 Women in Rail Awards appeared first on Railway Age.

Atchison, Topeka & Santa Fe 4-8-4 2926 will be under steam on September 27 and 28 for New Mexico Railroad Days at the Albuquerque South Rail Yards. The free, family-friendly event will give attendees the chance to see the recently restored locomotive up close. 

ATSF 2926 was built by Baldwin in 1944 and retired after just nine years of service. New Mexico Heritage Rail (also known as the New Mexico Steam Locomotive & Railroad Historical Society) spent nearly two decades restoring the locomotive and it returned to service in 2021. Since then it has made brief trips around Albuquerque on New Mexico Rail Runner Express and BNSF Railway trackage. It is the largest operating 4-8-4 in North America.

While no demonstration runs will be made during the event, the locomotive will be fired up and people will be able to climb into the cab and blow the whistle. There will also be a special night photo session with the locomotive. Tickets are being sold online at 2926.us. 

The New Mexico Railroad Days runs from 10 a.m. to 6 p.m. on September 27, and from 10 a.m. to 2 p.m. on September 28. 

—Railfan & Railroad Staff

The post Santa Fe 2926 to Headline ‘New Mexico Railroad Days’ appeared first on Railfan & Railroad Magazine.

With UP’s and NS’s official merger announcement the morning of July 29 and the merger agreement filed that evening, we expand on our pre-deal thoughts, update our NS and UP models for NS’s 2Q and deal-driven changes (e.g. buyback pause) for both, and sharpen our earlier UP+NS merger model for actual deal terms and guidance.

Nuggets From Merger Agreement Filed Post-Close:

1. Merger agreement ends if no close before 1/28/2028 but automatically extends for STB-driven delays.
2. No-shop clause but can consider unsolicited proposals for >50% control (requires five-day notice and right to match) until shareholders approve deal.
3. Termination fee of $2.5 billion goes both ways (UP for regulatory failure, NS for accepting another proposal; $2.5 billion is ~$11 per NS share).
4. Pro-UP regulatory out if the STB imposes “materially burdensome regulatory condition” (including requiring a voting trust).
5. Mexican regulator CNA (Comisión Nacional Antimonopolio, National Antitrust Commission, successor to COFECE, Comisión Federal de Competencia Económica, Comisión Federal de Competencia Económic) must approve, but all other regulators customary besides STB.
6. NS’s material adverse event carve-outs include anything related to UP as the acquirer.
7. UP’s MAE carve-outs include ability to obtain debt financing.

Deal Terms: NS shareholders will receive one UP common share and $88.82 in cash for each share of NS, implying ~$313/share at the July 29 close and an ~40% premium from the unaffected May 11 price (prior to Vena’s first public pro-consolidation comments). To fund the transaction, UP will issue ~225 million shares with pro-forma UP/NS legacy holder ownership of 73%/27% in the combined company.

Leverage: We estimate UP will need to issue ~$13 billion in new debt to fund the deal in early 2027. At closing, management expects its debt-to-EBITDA ratio to be ~3.3x (pre-synergies), falling to ~2.8x by year 2 post-close (aligning relatively close with our proforma merger modeling).

Synergies: In total, the combined company is estimated to achieve annualized $2.75 billion in EBIT/EBITDA synergies by the end of year 3 post-close: $1.75 billion from revenue and $1 billion of cost synergies. Revenue synergies are expected from truck conversion and new markets unlocked by the combined network, specifically in the “spine” of the U.S. along the Mississippi River and Ohio Valley, where switching inefficiencies limit mid-haul rail market share today. Cost synergies are expected from improved efficiencies (including technology), reduced purchased services and materials, enhanced asset utilization, and SG&A rationalization. UP expects to spend an additional ~$2B in capex to unlock these synergies, flagging technology first but also network investments.

EPS Accretion: The deal is expected to be accretive to EPS (excluding deal intangible amortization) early in year 2, with accretion reaching high-single-digits in year 3 and beyond.

Free Cash Flow: The combined company is expected to generate ~$12 billion in annual free cash flow by year 3 (vs. 2024 combined FCF of $7.3 billion), with both companies now pausing share repurchases but maintaining their dividends during the review period. UP expects to resume repurchases in year 2, growing them to $10 billion+ annually by year 3. As we noted above, network integration could require $2 billion in incremental capex.

Regulatory Steps: Similar to what we forecasted targeting an early 2027 close, UP+NS outlined an ~22-month regulatory timeline, comprised of a formal merger filing in the next six months, followed by an expected 15-month STB review process. Management acknowledged the empty fifth seat at the STB but remains steadfast in its case with regulators.

No Voting Trust: Management is not pursuing a voting trust, so NS will continue to trade separately until the deal is ultimately approved by the STB in early 2027. If denied, the reverse termination fee requires UP to pay NS $ 2.5 billion (~3% of deal value, ~$11 per NS share).

Social Issues: The combined business will be named Union Pacific, headquartered in Omaha (though NS HQ in Atlanta remains a “core location”). Jim Vena will be the CEO of the combined company, but Mark George (NS CEO) and Richard Anderson (NS Chair, former Delta CEO) will be two of the three NS directors joining UP’s board.

UP-NS Merger Model: We’ve adjusted our initial merger model to match actual deal terms (which were heavier in equity than we expected) and guided synergies (which were in line with our expectations), pulling forward synergy benefits and financing burdens into our standalone 2026 estimated forecasts to gut-check management’s accretion and leverage targets. Based on our analysis, if they deliver on mid-term synergies, we believe their outlooks look achievable for EPS accretion, FCF growth, and fairly rapid de-levering.

NS 2Q25 Results and Guidance: Separately, NS reported 2Q25 EPS of $3.29, slightly below our $3.32 and consensus $3.31. NS also updated FY25 guidance, now expecting revenue growth of 2-3% (down from ~3% but in line with our pre-print ~2%) and OR improvement of 100-150bps Y/Y (also down from ~150bps but in line with our pre-print ~120bps). Despite a softer macro, NS noted an incremental $25 million+ (to $175 million+ from $150 million) in cost-control opportunities.

NS Stock Action: We’re cutting our standalone NS 2025 EPS by $0.15 to $12.60 and 2026 by $0.30 to $14.00, primarily on a flow-through of the share repurchase pause. Our NS target price moves to $284 as we shift our valuation framework to anchor to UP’s deal terms ($89 in cash + one UP share, which closed at $224), discounted back from expected 1H27 close to a 12-month price target. We remain Neutral on NS shares.

UP Stock Action: We updated our UP estimates and price target after its earnings report but make incremental adjustments today on flow-through of the share repurchase pause. Our standalone UP 2025 EPS is unchanged at $11.70, but 2026 falls by $0.40 to $13.00. Our UP price target moves to $257 as we capitalize pro-forma synergy/financing-inclusive EPS from our merger model ($14.85) at our pre-deal target P/E (19x), discounting that value back from expected deal close to a 12-month price target. We remain Positive on UP shares.

The post The Transcontinental Railroad Begins With UP+NS appeared first on Railway Age.

We’ve a Federal Railroad Administration that has pretended to be a subsidiary of rail labor; a Surface Transportation Board (STB) that, until recently, fancied itself the Director General of Railroads, responsible for carrier hiring and configuring train operations; and an Amtrak arguably using the political process to weaponize its relationship with freight railroads.

Suddenly pivotal at the STB is disciplined, systematic, and knowledgeable direction as it prepares to measure the benefits and drawbacks of the largest rail merger in almost three decades. If approved, the marriage will create what even railroad baron John Pierpont Morgan couldn’t accomplish—a truly transcontinental railroad providing seamless Atlantic Coast to Pacific Coast service.

Merger decisions are best made transparently and absolutely free from political interference. Essential is to fill an empty fifth seat at the STB with a nominee experienced in every aspect of railroading from the ballast to the C-Suite to the labor negotiating table, and versed in the intent, history and nuances of the STB’s controlling statute. Rather than a grandstander with an agenda, the nominee must be—and perceived by stakeholders to be—committed to neutrality and able to contribute specialized proficiency.

While Chairperson Patrick J. Fuchs has shunted to a siding the publicity attracting activism of former chairpersons Martin J. Oberman and Robert E. Primus (the latter remains an STB member), and begun clearing out long dormant and festering cases they ignored out of preference for public scoldings of accomplished rail executives, Fuchs is working without a majority on the five-person board, which is contrary to the agency’s governing statute.

This is not to say Republicans such as Fuchs, Michelle A. Schultz, and the yet-to-be named fifth member are better equipped for the tasks at hand than Democrats such as Oberman (now retired), Primus and fourth STB member Karen J. Hedlund. It is to say that unlike predecessors—and this includes Republicans before them—Fuchs and Schultz are committed to sticking to the STB’s knitting. The fifth member should be a fellow traveler in this structured approach.

Such a candidate is said to be on the White House “very short list” of potential STB nominees, having platinum qualifications for the post. He is a third-generation railroader, but little known publicly, if at all, beyond a small segment of the rail industry owing to his career efforts to avoid the public eye such as through opinion-page writing and public speaking.

Better known in the railroad community are his grandfather, the late James E. (Doc) Wolfe, the first chairperson of the National Railway Labor Conference and its Carriers Conference Committee; and his father, James R. Wolfe, who was chairperson and CEO of Chicago & North Western Railway (now part of Union Pacific) until his death in 1988.

Potential STB nominee James E. Wolfe’s rail career is more varied. Between earning an undergraduate degree in classical civilization and philosophy at Chicago’s Loyola University and entering DePaul University’s College of Law from which he earned a juris doctorate, Wolfe was a UP trainmaster at locations in North Platte, Neb.; Salt Lake City, Utah; and Pocatello, Idaho. “I supervised people who knew a lot more about railroading than I did, and learned how every aspect of a railroad works, including its labor relations,” Wolfe told Railway Age in a telephone interview.

Following law school, Wolfe was employed by the Illinois Department of Transportation (IDOT), where he acquired an advanced knowledge of commerce law in representing the agency before the Illinois Commerce Commission and STB predecessor Interstate Commerce Commission; serving as legal counsel to IDOT’s Bureau of Railroads; and later supervising IDOT’s federal affairs office in Washington, D.C., where his focus was on congressional transportation appropriations and federal agency economic and safety regulation.

Returning to Illinois and a private law practice, a client included Amtrak, for which Wolfe negotiated a three-year, fixed-price agreement for state-supported passenger service. Wolfe’s next stop was managing Amtrak’s state government affairs office covering 40 states, as well as being general manager of Amtrak’s Midwest Corridor operations in Illinois, Michigan, Missouri and Wisconsin.

Between 1997 and 2023, Wolfe was chairperson and CEO of Chicago-based Knight Engineers and Architects, which focused on aviation, highway and rail infrastructure  projects in the public and private sectors. That included serving as the Class I railroads’ lead negotiator for the Chicago Region Environmental and Transportation Efficiency (CREATE) Program, a $4.6 billion public-private partnership to improve the efficiency, capacity, safety, and effectiveness of the Chicago region’s freight, commuter and intercity passenger rail network.

Wolfe is no stranger to POTUS 47, as during his first Presidential term his aides courted Wolfe for nomination as neutral chairperson of the Chicago-based Railroad Retirement Board, which Wolfe declined owing to his private-sector career. Now retired at age 62, and no stranger to official Washington, Wolfe quickly moved to the top of POTUS 47’s list of potential STB nominees.

Wolfe’s credentials certainly match the job description—an attorney with in-depth knowledge of commerce law; a working background in the freight and passenger rail industry; first-hand dealing with Congress and Executive Branch agencies; and understanding of official Washington political nuances.

So why does Wolfe have interest in an STB nomination? “I would like to be part of the process that moves the STB back to its intended legislative purpose of being the economic regulator of freight rail and not some Orwellian entity that tries to micromanage railroad operations while simultaneously inundating the railroads with burdensome requests for data and never-ending litigation,” he told Railway Age. “The STB has a narrow scope—be reasonable, be fair and be objective. Board members should be neutral, non-biased arbitrators who understand railroads, their customers and competitive markets.”

Also on the short list with Wolfe in seeking the STB nomination is Richard Kloster, president and founder of rail equipment consultancy Integrity Rail Partners, Inc. He has an extensive career in rail fleet management as well as experience with Class I and short line railroads. He is an executive board member of the National Industrial Transportation League and sits on the board of the Railway Supply Institute. Kloster earned undergraduate and graduate degrees from Northern Illinois University and the University of Alabama in marketing. Other than confirming he is under White House consideration, Kloster chose not to speak further, citing guidance from advisors.

Railway Age Capitol Hill Contributing Editor Frank N. Wilner is author of “Railroads & Economic Regulation,” available from Simmons-Boardman Books, 800-228-9670. 

The post A Wolfe at STB’s Door. Will He Make Entry? appeared first on Railway Age.

Activation will silence train horns in Addison, Coppell and Dallas first, with Carrollton, Richardson, and Plano to follow as testing of vehicles, crossings and track will continue with DART aiming to open for passenger service before the end of the year, the agency reported July 28.

DART is preparing to open its Silver Line Regional Rail to passengers before the end of the year. But before it does, many of those future passengers will experience a quieter experience as the train makes its way across the tracks.

DART partnered with the FRA and six of the seven cities that the Silver Line traverses to establish a quiet zone ordinance along most of the 26-mile rail alignment. During testing, trains are required to sound their horns as they approach all rail crossings to alert motorists and pedestrians to the presence of the train.

These horns will begin to fall silent before the end of July, as quiet zones are expected to become active in Coppell on Wednesday, July 30. Addison and Dallas will look to activate their quiet zones on Friday, Aug. 1, with Carrollton, Richardson, and Plano’s quiet zone activation to follow on Friday, Aug. 22. All dates are tentative, pending FRA approval. 

“Safety has been one of our biggest priorities as we’ve pushed through on this project, so we want to thank everyone for their patience as we’ve worked through all the requirements needed with FRA officials to get these quiet zones active,” said DART Vice President of Capital Programs Trey Walker.

Valley Metro Commute Solutions has launched a refresh of ShareTheRide.com, with the introduction of an enhanced platform that the agency says “delivers faster, smarter tools for commuters while introducing new incentives for using alternative modes of transportation.”

For the first time, ShareTheRide.com will also offer Commute Perks: a comprehensive rewards program that transforms every alternative commute into earning opportunities. Users can earn buy-one-get-one offers and get exclusive deals from local businesses and national brands by logging trips when carpooling, vanpooling, teleworking, biking, walking and using public transit.

“The refreshed ShareTheRide.com platform represents a significant leap forward in how we support commuters throughout Maricopa County,” said Abigail Cooksey-Williams, Valley Metro Transportation Demand Manager (TDM). “With these new features, we’re not just making alternative transportation easier to access, we’re making it more rewarding.”

Enhanced platform features include:

• Sleek, mobile-responsive website and newly branded mobile app (available now).
• Improved trip planning tools with faster performance and enhanced functionality.
• Custom network capabilities for Transportation Coordinators to manage company Travel Reduction Programs (TRP).
• Unified trip tracking, contest entries and reward progress monitoring.
• Gamification elements including contests, achievement badges and progressive rewards that increase with participation.

PANYNJ announced July 29 that ridership on the PATH commuter rail system grew 7% over the first half of 2024, with average weekday ridership exceeding 200,000 passengers for a third consecutive month.

The PATH commuter rail system served a total of 29.2 million passengers over the first half of 2025. The total was 7 % above the same period of 2024 but still only 72% of the first six months of pre-pandemic 2019.

The system welcomed approximately 5.1 million passengers in June 2025. This was 8% above June 2024’s passenger total, through ridership remained at 75% of pre-pandemic June 2019. Average weekday ridership for the month was 203,990 passengers, exceeding 200,000 for a third consecutive month and for the fifth time since the pandemic.

The system’s average Saturday ridership in June 2025 was 115,262 passengers, surpassing pre-pandemic June 2019 by 1.8%. Average Sunday ridership of 90,208 passengers was on par with June 2019.

The post Transit Briefs: DART, Valley Metro, PANYNJ/PATH appeared first on Railway Age.

U.S. rail traffic for the week ending July 26, 2025 (Week 30) came in at 514,279 carloads and intermodal units, rising 1.1% from the same week last year, based on 231,029 carloads—up 0.9% from 2024—and intermodal volume of 283,250 containers and trailers—up 1.3% from 2024, the Association of American Railroads (AAR) reported July 30.

Results were similar for the week ending July 19, 2025: U.S. Class I railroads carried 506,882 carloads and intermodal units, up 5.6% from the same point last year. That comprised 229,739 carloads, up 7.3% from 2024, and 277,143 containers and trailers, up 4.3% from 2024.

For the week ending July 26, 2025, seven of the 10 carload commodity groups posted an increase, compared with the same week last year. They included grain, up 1,289 carloads, to 22,108; coal, up 986 carloads, to 62,386; and motor vehicles and parts, up 459 carloads, to 15,306. Commodity groups that posted declines were farm products excluding grain, and food, down 839 carloads, to 15,971; nonmetallic minerals, down 816 carloads, to 32,422; and metallic ores and metals, down 64 carloads, to 21,386.

For the first 30 weeks of 2025, U.S. railroads reported cumulative volume of 6,594,604 carloads, a 2.7% increase from the prior-year period; and 8,054,478 intermodal units, a 4.8% increase from last year. Total combined U.S. traffic for the first 30 weeks of 2025 was 14,649,082 carloads and intermodal units, up 3.8% from last year.

For the week ending July 26, 2025, North American rail volume on nine reporting U.S., Canadian, and Mexican railroads totaled 332,465 carloads, a 2.0% gain over the same week last year, and 367,038 intermodal units, a 3.5% gain over last year. Total combined weekly rail traffic in North America came in at 699,503 carloads and intermodal units, up 2.8%. North American rail volume for the first 30 weeks of this year was 20,242,757 carloads and intermodal units, rising 2.9% from 2024.

Canadian railroads reported 86,414 carloads for the week ending July 26, 2025, up 2.2%, and 73,206 intermodal units, up 14.1% from the same point last year. For the first 30 weeks of 2025, they reported cumulative rail traffic volume of 4,874,958 carloads, containers and trailers, a 1.5% increase.

Mexican railroads reported 15,022 carloads for the week ending July 26, 2025, rising 21.5% from the year-ago period, and 10,582 intermodal units, dipping 2.2%. Their cumulative volume for the first 30 weeks of 2025 came in at 718,717 carloads and intermodal containers and trailers, a 5.7% drop-off from the same point last year.

The post AAR: U.S. Carloads, Intermodal Up Slightly for Week 30 appeared first on Railway Age.

CSX announced July 29 that it has been recognized with Toyota’s Rail Quality Award, “a testament to the company’s dedication to quality customer service and teamwork across its Automotive Sales, Operations, and Total Distribution Services, Inc. (TDSI) divisions.” The award was presented last month in Plano, Texas.

The Rail Quality Award honors rail carriers that consistently achieve exceptional standards for service excellence. To qualify, carriers must deliver at least 99.84% of vehicles damage-free. CSX exceeded this threshold with a damage-free delivery rate of 99.87%.

“This recognition from Toyota is a testament to the relentless focus, team mentality, and hard work our ONE CSX teams exhibit daily,” said Tom Fitzgerald, CSX Senior Director of Automotive. “Delivering on quality is what sets us apart, and I couldn’t be prouder of what we’ve accomplished together.”

The award, the company says, “highlights the collaborative efforts of CSX teams who prioritize operational precision and customer satisfaction. Operations teams ensured the timely, efficient, and safe handling of vehicles, while the TDSI implemented impactful initiatives focused on continuous improvement.”

Key contributors at TDSI included Bryce Thomas (General Manager), Phil Peay (Regional Director of Operations), Anna Zermeno (Terminal Manager), and Regional Operations Managers Jim Hull, Michael Pascuzzi, Lamario Merriwether, and Bill Davis. Their efforts in employee training, effective daily communication, and process enhancements were instrumental to this success, CSX noted. TDSI facilities across multiple locations, including Louisville, Ky.; Birmingham, Ala.; Lordstown, Ohio; Annapolis Junction, Md.; and Selkirk, N.Y., also played an essential role in delivering quality results.

Toyota commended CSX for “maintaining a customer-focused approach and delivering quality service at every destination.” This recognition, the company says, “underscores the strength of CSX’s processes and the expertise of its workforce. The Toyota Rail Quality Award not only celebrates CSX’s recent accomplishments but also reinforces the company’s focus on prioritizing quality and innovation.”

CPKC recently announced via an X post that its Dorion Subdivision maintenance-of-way team has achieved three years injury-free.

“With strong communication, a culture of accountability and deep family-like connections, they look after one another so everyone can go home safe. Congratulations to the team for this incredible milestone,” CPKC said in the post.

The post Class I Briefs: CSX, CPKC appeared first on Railway Age.

GPA on July 29 reported moving 5.7 million TEUs (twenty-foot equivalent container units) In Fiscal Year 2025—up 8.6% or 450,000 TEUs from the previous fiscal year. FY25, beginning July 1, 2024 and ending June 30, 2025, was the Port of Savannah’s second busiest year on record; in the pandemic year of FY22, GPA handled 5.76 million TEUs.

Savannah’s volume grew at a 4.5% compound annual growth rate (CAGR) for fiscal year-to-date (FYTD) 2025 compared with FYTD2016, while the entire U.S. container port market experienced a 2.7% CAGR during the same period, according to GPA.

The Port of Savannah moved 410,400 TEUs in June. Georgia Ports averaged more than 475,000 TEUs per month in the fiscal year just ended, according to GPA. March, April and May each came in with more than 500,000 TEUs.

The Port of Brunswick saw “strong volumes, despite market volatility,” GPA reported. It handled 870,775 units of autos and heavy equipment in FY25, which was flat compared with the previous year; FY24 was an “all-time record year.”

GPA is slated to start construction in the current fiscal year on the new $100 million Colonels Island Berth 4, which it said is “designed to ensure future capacity keeps pace with demand when opened in 2027.”

GPA reported that in the past decade it has completed $3.2 billion in port infrastructure projects. Over the next ten years, it plans to invest another $4.5 billion in capacity improvements, which include five big ship berths added in the next eight years. Two big ship berths are being upgraded now in Ocean Terminal and will be ready by 2027-28. Three big ship berths are planned for Savannah Container Terminal from 2030-34. 

During fiscal year 2025, GPA said it completed $470 million in projects, including at:

• Brunswick: Roll-on/Roll-off expansion, adding 640,000 square feet of warehousing in support of processing autos and heavy equipment, and 122 acres of Roll-on/Roll-off storage.
• Savannah: Garden City Terminal Warehouse 83B modifications (newly expanded CBP Exam facility) to streamline Customs inspections by doubling warehouse space and expanding refrigerated cargo capabilities.
• Savannah: Eight new ship-to-shore cranes.

Also in FY25, GPA said its Board approved an additional $472 million for new projects, including at:

• Brunswick: Colonels Island Southside Rail Phase 1, which doubles rail capacity from five to 10 trains per week and increases the port’s annual rail capacity from 150,000 autos to more than 340,000.
• Brunswick: Colonels Island Berth 4 is being added for Roll-on/Roll-off cargo to meet growing demand.
• Savannah: Ocean Terminal Redevelopment will add an annual capacity of 1.5 million TEUs. The project includes an overpass linking Ocean Terminal to Route 17, which is designed to keep terminal truck traffic from impacting local neighborhoods.

“Georgia Ports continues to grow U.S. East Coast market share and with the shifting trade patterns in Asia and India, that bodes well for our future,” GPA President and CEO Griff Lynch said.

• Port of Brunswick Set to Launch South Side Rail Facility Phase I
• Port of Savannah: Busiest March on Record
• Port of Savannah: Busiest February on Record
• For GPA, Containers Up, Capacity Growing
• Port of Brunswick Takes Top Spot for Autos, Heavy Equipment
• GPA Lands $26.5MM Federal Grant for Colonel’s Island Rail Improvements Project
• GPA Approves $127MM for Blue Ridge Connector
• GPA Prepares for the Future, Adds Inland Rail Connectivity
• CSX, GPA Launch ‘Carolina Connector’ Service
• Georgia Ports Advances Inland Rail Hub Plan

The Port NOLA Board of Commissioners has approved a resolution authorizing Port NOLA President and CEO Beth Branch to enter into a Cooperative Endeavor Agreement (CEA) among the five Lower Mississippi River ports to develop a collaborative marketing strategy and to enter into a professional services agreement with Polaris Analytics & Consulting, LLC, to assist in the creation of that strategic plan, which will highlight “the strengths of the collective port system and maximize opportunities for economic development, infrastructure investment, and job creation across south Louisiana,” Port NOLA reported July 25.

The five ports on the Lower Mississippi River include Port NOLA, Port of South Louisiana, Port of Greater Baton Rouge, St. Bernard Port, and the Louisiana Gateway Port at Plaquemines Parish. Collectively, they comprise the largest port complex in the world, according to Port NOLA.

This initiative is said to closely align with Louisiana Gov. Jeff Landry’s establishment of the Louisiana Ports and Waterways Investment Commission, which aims to advocate for all of Louisiana’s ports and waterway investments. According to Port NOLA, the commission is tasked with “articulating a long-term vision for Louisiana’s maritime future through the development of a strategic plan and targeted investment program.”

“This CEA represents more than just a marketing initiative; it’s a commitment to cooperation, unity, and long-term vision for Louisiana’s ports,” said Beth Branch, who is also CEO of New Orleans Public Belt Railroad, a Class III that serves Port NOLA and local industries. “By working together, the Lower Mississippi River ports can speak with one powerful voice and better position our state as a leader in global trade and logistics. We are proud to be taking this important step alongside our partners.”

• Gulf Gateway Terminal Expands at Port NOLA
• Lineage Expands Services at Port NOLA
• EPA Awards Port NOLA $1MM Grant to Support LIT Sustainability Management Plan
• Freedom Intermodal Tank Services, NOPB Expand Offerings

The post Intermodal Briefs: GPA, Port NOLA appeared first on Railway Age.

Located in Yaphank, adjacent to the New York & Atlantic(NYA)/Long Island Rail Road (LIRR) and the Long Island Expressway (Interstate I-495), Brookhaven Rail Terminal provides direct access to the northeast market, global ports, and the national rail network, according to OmniTRAX, the transportation and infrastructure affiliate of The Broe Group that operates 31 railroads, serving ports and industrial parks across the country. (See maps below.)

The terminal, recently rebranded as the Long Island Reload, is said to be “the first multi-modal rail freight facility on Long Island to provide rail-based shipping, warehousing and logistic services to the strategic seaboard market.”

“Long Island plays a critical role in northeast supply chains, and we are pleased to add Brookhaven Rail Terminal to the OmniTRAX rail network,” OmniTRAX Executive Vice President Nathan Brown said. Real-estate operating company “NorthPoint Development is building a vibrant rail-served industrial hub that can grow with the region, and we are excited to partner with them serve this dynamic domestic market.” 

“We are excited about the industry-leading safety and service that OmniTRAX brings to the Long Island Reload,” added Andrew Villari, Development Manager for NorthPoint Development. “Location and efficiency are critical to our industrial customers such as The Home Depot and Heidelberg. OmniTRAX adds tremendous operational strength to The Long Island Reload’s unparalleled market access.”

Earlier this year, OmniTRAX became the exclusive operator of Port Muskogee’s Port Muskogee Railroad in Oklahoma, and teamed with Coast Belle Rail Corporation to run Santa Maria Valley Railroad in California.

• Sand Traps, by Rail
• Eco Material Launches NYA-Served Terminal in New York
• Ore. Legislature Approves $100MM in Bonding Support for PCIP

The post OmniTRAX Expands into Long Island, NY appeared first on Railway Age.

TexAmericas Center, which owns and operates the third ranked mixed-use industrial park in the U.S., announced July 29 that COIM USA, a specialty chemical manufacturer and part of the global COIM Group, has acquired a 20-acre site featuring a 25,000-square-foot rail-served facility on the Texarkana, Texas-located campus.

Texarkana is a major east-west and north-south rail hub, with numerous rail lines converging, as well as more than 125 trains passing through the community each day. Union Pacific (UP), Canadian Pacific Kansas City (CPKC), Texas Northeastern (TNER), and TexAmericas Center Rail (TACR) efficiently serve the TexAmericas Center campus, as well as the overall Texarkana market.

The property was acquired from Palmer International and includes “critical logistics and transload infrastructure that will bolster COIM’s manufacturing and distribution capabilities across North America.”

The acquisition, the industrial park says, includes existing logistics and transload infrastructure along with COIM USA launching a new line of renewable polyols, primarily made from Cashew Nutshell Liquid (CNSL), a rapidly renewable, plant-based material. The new product line “complements COIM’s existing Isoexter line of polyester polyols, expanding the company’s sustainable product offerings while delivering enhanced performance for customers.”

“This acquisition represents a significant milestone in COIM USA’s long-term growth strategy,” said COIM USA President Michelangelo Cavallo. “The TexAmericas Center location broadens our geographic reach, expands our sustainable portfolio, and enhances COIM USA’s ability to serve customers with greater speed, efficiency, and resiliency.”

In addition to current operations, COIM USA says it is evaluating a major mid-south expansion, with TexAmericas Center positioned as a contender. The proposed development would add 100 million pounds of new production capacity by the end of 2027.

“By establishing a presence at TexAmericas Center, COIM USA will gain operational cooperation and supply chain redundancy, a critical step in ensuring consistent service and delivery to customers across the U.S.,” the company noted.

COIM USA will be positioned in a region where Texas and Louisiana together produce 80% of the nation’s primary petrochemical supply—TexAmericas Center sits at the heart of one of the most vital chemical production corridors in the country. In fact, according to TexAmericas Center, Texas’ chemical shipments are valued at more than $117 billion, and more than half of all U.S. chemical production is rooted in the state.

This chemical production is the foundation for countless goods, including pharmaceuticals, computers, and other everyday items.

“This investment is not only a win for COIM USA, but also another step forward for TexAmericas Center as a hub for green industries,” said TexAmericas Center Executive Vice President and Chief Economic Development Officer Eric Voyles. “Texarkana has a proud legacy as a manufacturing center, but we’re greener than you might think. Projects like this move us closer to becoming a recognized Eco-Industrial Park.”

The chemical manufacturing sector, the industrial park says, continues to thrive in TexAmericas Center’s 75-mile regional radius:

• “The industry contributed $1 billion in GDP in 2022, six times the national average.
• “Employment is growing at 1.1% annually, compared to the national average of 0.8%.
• “3,080 individuals graduate annually from area postsecondary programs tied to chemical manufacturing.
• “Within 75 miles, 53 chemical and petroleum/coal processing companies employ more than 32,000 people.”

The post COIM USA Acquires Rail-Served Facility on TexAmericas Center Campus appeared first on Railway Age.

A day after Union Pacific announced its intent to acquire Norfolk Southern for $85 billion — a deal that would create the first single transcontinental railroad in the United States — many shippers and stakeholders withheld their opinions on the proposal. However, the few who did expressed skepticism about a plan that could significantly change the North American rail network. 

The combined UP-NS system would stretch more than 50,000 miles and operate in 43 states, making it the largest Class I railroad on the continent. The deal will need to be approved by the U.S. Surface Transportation Board — no easy task considering the size and scale of the combination. And one reason for the hurdles that face the combination is the cool reaction it is expected to get from competing railroads, shippers, unions and other stakeholders. 

Among the first shipper groups to criticize the proposal was the American Chemistry Council. In a statement released just hours after the merger announcement, the shippers group said it would “actively oppose” any further consolidation within the industry. 

“The four largest freight railroads already control more than 90 percent of U.S. rail traffic, with two dominating in the eastern U.S. and two dominating in the west,” the statement read. “The impact of a transcontinental merger between two of these railroads threatens to leave American manufacturers, farmers and energy producers with even fewer competitive options to ship by rail… Many rail customers are currently dealing with high rates and unreliable service. Further consolidation within the rail industry is likely to make these problems worse.”

According to industry sources, more shipper groups are expected to emerge and oppose the deal in the coming days and weeks. 

Unions also expressed skepticism about the plan. The Brotherhood of Locomotive Engineers and Trainmen said it was too soon to provide concrete thoughts on the plan but urged the railroads not to use it as a reason to delay ongoing labor negotiations. SMART Transportation Division, IAM Union Rail Division, and Transportation Workers Union of America also raised concerns about how a merger could affect union jobs and the safety of the rail network.

“There is no world where Union Pacific should be controlling a coast-to-coast rail network,” said TWU International President John Samuelsen. 

The Rail Passenger Association, the country’s oldest and largest passenger rail advocacy group, noted that both UP and NS are currently facing lawsuits accusing the Class I railroads of violating the legal right of Amtrak trains to have priority over freight trains.  

“Frankly, America’s passengers and shippers have good reason to treat this news with skepticism. The past decade has seen Class I railroads steadily losing market share to trucking in pursuit of shareholder dividends. While that’s been good for Wall Street, it’s meant worse rail service for passengers and shippers in the rest of the country,” President and CEO Jim Mathews said.

—Justin Franz

The post Shippers, Stakeholders Skeptical of UP-NS Merger appeared first on Railfan & Railroad Magazine.

Turnouts, an essential railroad network trackwork component, have numerous complex, costly and labor-intensive maintenance requirements. They also have specific challenges that railroad maintenance-of-way departments have been dealing with for generations. Addressing them is critical to operating a safe, fluid and efficient network, with minimum maintenance downtime. Among these challenges:

• Switch rods, which traditionally reside in cribs, must be removed for tamping.
• Inadequate switch tamping creates an unstable track surface, leading to switch failure.
• Insulation failures can occur between two bolted steel switch rods.
• Wood headblock crossties can fail to maintain gauge and can break under the switch machine due to timber crosstie decay.
• Concrete headblock crossties can break under a switch machine due to reduced cross-section or overhung load vibrations.

As such, railroads are actively seeking opportunities to increase track stability while reducing costs.

The new Universal HST® Hollow Switch Tie from voestalpine Railway Systems Nortrak is designed specifically to address the unique maintenance and structural needs of a turnout. Pairing the Universal HST® with our Unistar HR Switch Machine creates what we believe is the most advanced and seamless turnout control system in the industry.

The HST® is an advanced switch support system consisting of robust, maintenance-free formed steel crossties, high strength composite “Blue Rods,” and an optional rotary assist back-drive assembly. The crossties are redundantly insulated in all areas, ensuring no single path to shunt is allowed. They allow switch rods to be relocated from cribs into the hollow portion of the crosstie, facilitating continuous mechanized surfacing though the turnout without the requirement of removing and reinstalling switch rods. Use of high-strength composite “Blue Rod” insulated switch rods allow for a single fabricated rod to be utilized, removing the insulation failure point between two bolted steel rods. Switch plates attached to the crosstie with permanent Huck fasteners increase gauge widening resistance through the switch, with resistance exceeding 40,000 pounds. A robust, steel switch machine mounting plate is permanently affixed to the crosstie and can accommodate any switch machine.

Now, this innovative system has been vastly improved with the Universal HST®.

“Previous generations of the HST® required a specific design for each turnout size, hand, and machine position (left or right on the field side),” says R&D Engineering Manager Eric Gray. “In a situation where a switch machine was relocated from one side of track to the other, or a left-hand crosstie was needed in a right-hand turnout, the HST® had to be disassembled, reinsulated and reassembled. The Huck fasteners had to be cut off—quite a process for customers. As an example, some of our customers have been in situations where, during installation, they realize there isn’t enough room for the switch machine, and they need to relocate the machine to the other side of the track. A slight change in the field could previously delay a customer’s schedule by weeks. That’s why we developed this new design, the Universal HST®.”

“The Universal HST® provides greater flexibility to maintainers by being adaptable to dynamic installation and maintenance, offering the flexibility to use one unit for all turnout sizes, hand, and machine position,” notes Gray. “It uses a permanent, electrically isolated shim plate attached to the shell of the formed steel crosstie. Adaptable switch plates dependent on the switch size and/or hand can be bolted directly to the shim plate. To convert from one switch size or hand to another, it’s now as simple as unbolting the existing plate and replacing it with a new switch plate of the desired size or hand. This is why the Universal HST® is much more maintainer friendly, giving railroads the ability to easily stock items and convert from hand or size to another without the need to handle insulation. Everything except the running plates the rails sit on is assembled, insulated, and ready to go. The plates are bolted on and easily removed. All a maintainer needs to do is remove the plates, spin the hollow switch ties around and reinstall the plates. If you ordered plates for a No. 20 turnout and then decided you wanted to use that HST® on a No. 15 turnout, instead of having to purchase an entire system, you only need two new running plates. So now, we have one base unit that will work for any turnout.”

The Universal HST® works seamlessly with voestalpine Railway Systems Nortrak’s Unistar HR Switch Machine. The Unistar HR offers mounting flexibility (gauge or field side, and on tunnel walls), is flood safe, and can withstand temperatures as low as -40°C (-40°F) without heater elements. With integrated end position detection, installation time is just 2.5 hours. It weighs 80% less than competitors’ switch machines and no lift assist is required. It’s non-handed design reduces spare parts requirements. MTTR (mean time to replace) is 25 minutes; MTBF (mean time between failures) is 1.5 million hours.

The Unistar HR features a Single Drive Unit with up to four drive, locking and detection setting levels for switches and MPFs (moveable point frogs)

The Universal HST® “is the ideal foundation for installing a Unistar HR,” says Vice President of Signaling Chris Nordstrom. “Since the Unistar HR is agnostic to the side of the turnout on which it’s installed, it’s a clean, easy process, a clean layout. All the electrical connections and hydraulic lines are protected inside the hollow steel crosstie. We’re getting a lot of positive customer feedback. One installation team told us it took half the amount of time as installing the same machine on a traditional wood crosstie layout, noting that it could be retrofitted into any turnout.”

The Universal HST® and Unistar HR pairing aligns with voestalpine Railway Systems Nortrak’s broader goal of positioning ourselves as a system solution provider. We offer a full range of equipment and services—from fastening products to complete switch panels with integrated monitoring systems. We bring together global expertise and experience while maintaining a strong local presence. Our North American team includes some of the industry’s top experts, and we’re proud to offer Buy America-compliant solutions.

The post Perfect Pairing: voestalpine Railway Systems Nortrak Universal HST® (Hollow Switch Tie) + Unistar HR Switch Machine appeared first on Railway Age.

Union Pacific’s (UP) much-anticipated bid for Norfolk Southern (NS) was announced July 29. Both now embark on a lengthy review process, but we see the potential approval pathway justified due to U.S. supply chain benefits. NS operates well, supporting a pivot in focus to the review process. NS takeout PT moves to $320 in line with the announcement. Reiterate Buy as entry point is attractive while event-based investors remain on the sidelines.

• UP officially announced a bid for NS to create the first E-W transcon Class I as we expected. The Western Class I has agreed to pay $320/share for NS (close to our preprint takeout-based PT of $323) for a total enterprise value of $85 billion with an approximately 72%-28% stock-cash split. Shares of NS traded down on the open despite the announcement, which we believe is due to event-driven investors remaining on the sidelines. Our discussions with this investor group indicates that this is due to the long regulatory timeline (approximately six months to file and another year or so to receive final approval). Additionally, the lack of a voting trust was disappointing for that group as well. Positive developments over the course of the review process could reengage this group in our view.

• UP and NS expressed confidence in navigating the regulatory process with the Surface Transportation Board (STB), but we acknowledge a long process ahead. CEO Vena’s commentary that UP would not have taken the steps without visibility into a path forward is encouraging in our view, though he refrained from comment on the fifth STB appointment. Clarity on growth prospects and competitiveness enabled by a transcon rail supports the political case for a merger in our view. UP expects to file the application in up to six months, which is at the longer-end of the typical timeline; we would not be surprised to see UP come in well before this. While expedited filing would be appreciated by investors, we also note that the STB has recently expressed intent to streamline regulatory procedures. We will continue to monitor developments that could expedite what is usually an approximately 18-month review process. Opposition to the deal is likely from a variety of constituents as many look to receive something for their support. In terms of labor, while they may seek to strike deals, opposition could be mitigated by both Class I’s commitments to either preserve or grow jobs as matters proceed.

• UP and NS highlighted that 1 million carloads interchange between the two networks and a single-line service would slice one to two days off transit time, materially improving service. This represents approximately 6% of the combined carload base for the two Class I’s. More importantly, a unified network would enjoy significant competitive gains. Single line is conducive to OTR conversions in our view as one intermodal train amounts to about 550 trucks and sees a favorable price differential that is only hampered by service consistency. Additionally, UP openly discussed gaining share from Canadian ports as single-line service improves competitiveness into the Midwest.

• Run-rate EBITDA synergy estimates of $2.75 billion (over a three-year period) exceed our conservative assumptions as our view that upside is likely was borne out on the July 29 call. Value creation is weighted toward revenue and service (as we projected in our note here) with $1.75 billion in EBITDA accretion from revenue synergies expected (excluding adjustment from concessions). We estimate this is about 4.5% of the combined revenue base compared to the originally targeted Canadian Pacific-Kansas City Southern figure of about 6%, which we note approximately doubled over the years. We thus acknowledge upside to revenue synergies. Cost synergies are penciled in at $1 billion.

• The $320/share takeout price and $85 billion EV implies approximately 9.5x ’26E EV/EBITDA including run-rate synergies and valuation has come in below our expected level. For reference, we estimate CP paid 12.8x in the KCS deal. The deal is structured per 72%-28% stock-cash split and approximately 18-month review process places close in early 2027 when the financing event will occur given no voting trust. Management expects EPS accretion starting year two and reaching HSD by year three.

• Cash component of the bid at $88.82/NS share will be financed with a split of cash on hand and debt. UP expects to relever to 3.3x at closing as a result, which we believe is within comfortable ranges for them, especially considering synergies. Integration to result in a sizeable $2 billion in additional capex but UP sees a 60% all-in increase in FCF off combined ’24 levels by the end of year three. Both Class I’s have suspended buybacks through the merger process.

• NS reported a second-quarter 2025 that was in line today on EPS but with a 63.4% OR, beating our estimate slightly as metrics hold up well. Well-understood macro uncertainty led NS to lower FY OR improvement guide to 100bps and introduced a downside case for top-line growth at 2% year-over-year, keeping the high end intact with prior at 3%. We believe the lowered guide is a modest downward revision and we lower ’25 and ’26 estimates slightly while acknowledging that NS’s operations are in good shape heading into the review process. We lower our takeout-based PT to $320 to reflect today’s announcement.

The post Vena’s Art of the Deal With NS appeared first on Railway Age.

Union Pacific and Norfolk Southern announced on July 29 that the two Class I railroads are merging to create the first single, transcontinental railroad in the United States. The news of the $85 billion deal followed weeks of rumors, denials, and hints that preceded the merger announcement that, if approved by federal regulators, would reshape the railroad industry for decades to come.

Put together, UP and NS would be by far the largest Class I railroad, with more than 50,000 miles of track stretching across 43 states and into every corner of the continental United States. In a news release, UP CEO Jim Vena said the merger would benefit shippers and the nation by having just one railroad that connects both coasts, something that has never happened in the nearly 200-year history of American railroading. 

“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” Vena said in a press release. “Imagine seamlessly hauling steel from Pittsburgh, Pennsylvania to Colton, California and moving tomato paste from Heron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming. Right now, tens of thousands of railroaders are moving almost everything we use. You name it, and at some point, the railroad hauled it.”

The new railroad will be called “Union Pacific Transcontinental.” Vena will be the CEO of the combined system. 

Under the terms of the agreement, UP will acquire NS in a stock and cash transaction that values NS at $320 per share, a 25 percent premium to NS’s 30-trading-day volume. UP and NS hope to complete the transaction by early 2027.

The new railroad will be called “Union Pacific Transcontinental.” Vena will be the CEO of the combined system. —Photo by Steve Barry. 

The slow drip of merger news started weeks before the announcement, when on July 16, online news site Semafor reported that UP had hired Morgan Stanley to explore acquiring one of the other five Class I railroads. Later that day, it was reported that UP had been in talks with NS about a possible merger since the beginning of the year. Then, on July 21, Semafor reported that BNSF Railway had enlisted Goldman Sachs for its own merger bid. Reuters later reported that CSX was its target. Initially, the railroads stayed mum on the rumors. But the day after Semafor and Reuters reported that BNSF was considering a bid for CSX, Warren Buffett of Berkshire Hathaway went on CNBC to dismiss those rumors, telling the cable network the story was false. However, while the 94-year-old billionaire wields significant influence over what BNSF does, industry observers said it seemed unlikely that the Class I railroad — UP’s chief rival in the western U.S. — would simply sit on the sidelines if UP made a serious move at NS. Unless, of course, BNSF’s owners believed UP stands no chance of acquiring NS.

BNSF has not given a statement regarding the proposed UP-NS merger. However, if it doesn’t make an offer for CSX — or even a competing offer for NS — it’s likely that the Class I railroad (currently the largest in North America) will vigorously oppose the UP-NS merger. 

Union Pacific CEO Jim Vena and Norfolk Southern President and CEO Mark George sign the agreement between the two companies. —Union Pacific

The news that UP is planning a move against another Class I railroad comes just two years after Canadian Pacific and Kansas City Southern completed what many believed would be the “final” merger. That merger between North America’s smallest Class I railroads was not subject to the stricter set of merger rules established in 2001 following the merger mania of the 1990s. However, any future mergers would need to meet those higher standards to ensure they serve the public interest. At the time of the CP-KCS deal, the U.S. Surface Transportation Board appeared cautious about further consolidation, especially with Chairman Martin J. Oberman in charge. But some think Patrick Fuchs, the 37-year-old appointed to the board in 2019 by President Donald Trump who now serves as its chair, might be more receptive to the idea of additional mergers.

—Justin Franz 

The post Union Pacific to Acquire Norfolk Southern for $85 Billion appeared first on Railfan & Railroad Magazine.

The Railroad Museum of Pennsylvania is breaking ground on a new roundhouse that will be used to protect six Pennsylvania Railroad steam locomotives. 

The roundhouse will be constructed next to a former Reading Company turntable already installed on the museum grounds. It is being built by eciConstruction of Dillsburg, Pa. Construction of the 16,000-square-foot, six-stall exhibit structure is expected to start in earnest by the end of July and should be completed by late 2026 or early 2027. During construction, the Museum’s outdoor yard will be closed to ensure visitor safety.   

“The main purpose of the roundhouse building is to protect and exhibit the six historic Pennsylvania Railroad steam locomotives, which have resided outdoors and experienced deterioration due to exposure to the elements,” said museum director Patrick Morrison. “This new climate-controlled space will showcase these historic steam locomotives in the best possible setting. When the time comes and as resources permit, we will be able to remove each one into the Museum’s restoration shop for more extensive preservation work.”

The museum’s friends group has already raised funds to cosmetically restore PRR E6 Atlantic 460 and is currently collecting money to restore the other five locomotives (B6sb 2-8-0 1670, H10s 2-8-0 7688, L1s 2-8-2 520, K4s 4-6-2 3750, and M1b 4-8-2 6755) for display in the roundhouse.

—Railfan & Railroad Staff

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The Oregon Electric Railway Museum in Brooks, Ore., has taken delivery of TriMet Type 1 101, one of the cars that helped establish light rail service in Portland in 1986. The car made its debut over the weekend and will be on display again during the Great Oregon Steam-Up on August 2 and 3.

TriMet purchased 26 Type 1 cars from Bombardier. The cars were based on models used overseas. Although Bombardier attempted to market them elsewhere, they were the only ones ever built and became the backbone of TriMet’s fleet for nearly four decades. TriMet began retiring the cars a few years ago as new Siemens SD700s (known as Type 6s on TriMet) started arriving.

“Preserving LRV #101 is a profound honor for us and a major milestone for the museum,” said Mark Kavanagh, Community Engagement Manager for the Oregon Electric Railway Historical Society. “This isn’t just a machine; it’s a piece of living history that millions of Oregonians have seen, ridden, and relied on. We are immensely grateful to our partners at TriMet for entrusting us with its care so that we can share its story for generations to come.”

—Railfan & Railroad Staff

The post TriMet LRV Arrives at Oregon Electric Railway Museum appeared first on Railfan & Railroad Magazine.

Chicago, Milwaukee, St. Paul & Pacific S3 Class 4-8-4 261 will lead back-to-back excursions over the Twin Cities & Western in October. Tickets for the trips out of Chanhassen, Minn., went on sale last week. 

The Milwaukee Road 4-8-4 will lead a matched train one way, while the Friends of the 261’s E9 32A will lead the return trip. Tickets are available for coach and first class, as well as dome and premium classes aboard some of the Friends’ luxury passenger cars. 

Locomotive 261 was built by the American Locomotive Company in 1944 and served in freight and passenger service on the MILW until 1956. It was donated to the National Railroad Museum in Green Bay, Wis., where it was on display until the 1990s. In 1991, it was acquired by North Star Rail and restored to service two years later. It has been based in the Twin Cities ever since, primarily operating in the Upper Midwest. 

For more information, visit 261.com.

—Railfan & Railroad Staff

The post Milwaukee Road 261 to Lead Autumn Excursions appeared first on Railfan & Railroad Magazine.