Manitoba, Canada-based Cando Rail & Terminals on Oct. 3 reported entering a definitive agreement to acquire the rail terminal and associated operations of Texas Deepwater Partners, a joint venture project formed by USD Group LLC and Pinto Realty Partners to develop an energy logistics terminal on the Houston (Tex.) Ship Channel. It would be Cando’s first terminal in the United States. Financial terms were not disclosed.
The transaction, subject to certain conditions and customary regulatory approvals, is expected to close in fourth-quarter 2025. It would be Cando’s third acquisition in the past two years. The company purchased AWP Industries in Canada’s Northwest Territories in November 2024 and Transmark in Southwest Alberta in December 2023.
Cando’s newest terminal is slated to be a “first-class, private railcar storage, staging, and transload terminal with existing capacity of 900 railcars; surplus real estate for future growth; and connections to the BNSF, Canadian Pacific Kansas City, and Union Pacific rail networks through the Port Terminal Railroad Association (PTRA),” according to Cando. Upon acquisition, it will be called the Cando Channelview Terminal and expand Cando’s network to 15 owned and operated rail terminals with a total capacity to store and stage more than 13,000 railcars. Cando also runs a short line (67-mile Central Manitoba Railway) and provides rail operations at more than 50 customer locations (see map below).
Cando’s network includes 15 terminals, one short line, and rail operations at more than 50 customer locations. (Courtesy of Cando)“We are very pleased to add our first terminal in the United States to our network of terminals,” said Brian Cornick, President and CEO of Cando. “The Cando Channelview Terminal is a multi-customer, multi-purpose railcar storage, staging, and transload terminal strategically located on the north side of the Houston Ship Channel, serving many of the world’s largest petrochemical producers. This asset is right down the middle of the fairway for Cando, and we look forward to engaging with the PTRA, existing customers, and new customers to enhance their supply chains and expand the terminal. In addition, we are excited to be the exclusive rail partner to Texas Deepwater and support its plans to further develop the site.”
“After many years focused on organic growth, Cando has built a demonstrated track record of executing and integrating strategic acquisitions to enhance our network across North America,” Cornick continued. “Cando plans to continue investing organically and inorganically in critical rail infrastructure to support shipper-customers and Class I partners. Cando is uniquely positioned with world-class operations, a corporate culture obsessed with safety & customer experience, multi-decade partnerships, and an in-house design & engineering team, combined with an investment-grade balance sheet and significant access to capital.”
Cando in February opened the Cando Southlands Rail Yard in Strathcona County, Alberta, Canada.
Further Reading:The post Cando to Acquire Texas Terminal appeared first on Railway Age.
CN recently congratulated, via social media, Dr. Ahmed Elmezughi, the Class I’s Chief Medical Officer, on his appointment to the CCOHS Council of Governors.
Port of Long BeachLongtime Port of Long Beach CEO Mario Cordero announced this week that he will retire at the end of 2025, capping a varied career that includes an eight-and-a-half run as Port CEO, seven years on the Federal Maritime Commission in Washington, D.C., and eight years as a member of the Long Beach Board of Harbor Commissioners.
“Known for bold and industry-leading stances promoting environmental sustainability and boosting market competitiveness, as well as his tireless and optimistic outlook,” Cordero, who led the Port through an era of “rapid cargo growth, a global pandemic, and major modernization,” has also become a noted thought leader in international trade in great demand for speaking engagements, media interviews and service on public boards of directors.
As CEO of the Port of Long Beach, reporting to the five-member Long Beach Board of Harbor Commissioners, Cordero leads a staff of about 600 professionals who improve, market and secure one-half of the nation’s largest trade gateway. In addition to his port industry career accomplishments, he is an attorney and educator.
Cordero in May 2017 said he was “blessed” to have landed a “dream job” when he was selected as the new CEO of the Port of Long Beach, returning to Long Beach after his stint as an appointee of President Barack Obama to the body that oversees the nation’s maritime policy. His time on the FMC beginning in 2011 included four years as Chairman.
He steps down at the end of a yearlong celebration marking two decades of the Port’s environmental progress—“20 Years of Leading Green”—achieved in parallel with growth of the Port’s economic benefits, such as 2.7 million jobs nationwide today tied to trade moving through Long Beach. The 20 years being commemorated started with the Green Port Policy proposed by then-Commissioner Cordero circa 2005.
“I could not be more grateful for what has been the opportunity of a lifetime to lead the Port of Long Beach over these past several years. While I’ll miss being in the center of the action for international trade, I know that I’m leaving the Port in the very capable hands of our Board of Harbor Commissioners and the exemplary staff,” said Cordero. “It’s been a very rewarding experience, and I have amassed wonderful memories that I will cherish forever.”
Cordero was appointed to the Board of Harbor Commissioners in 2003 by then-Long Beach Mayor Beverly O’Neill and reappointed in 2009 by then-Mayor Bob Foster, serving as both President and Vice President of the Board during his tenure. It was during his time on the Harbor Commission that he proposed the Green Port Policy, a commitment by the Port to environmental sustainability that was ratified in 2005. The action was a turning point for the Port, which committed to considering the environment in all of its decisions going forward, “leading to dramatically cleaner air, healthier harbors and today’s goal of seeking zero-emissions operations.”
Cordero, the Los Angeles-born son of Mexican immigrants, was the first in his family to attend college, and his father urged him to pursue engineering as a career. The young Cordero however came to the realization that he wanted to become a lawyer to make a difference in society, given the call for activism in the early 1970s. He earned a Bachelor of Science in political science from California State University, Long Beach, before going on to earn a law degree at the University of Santa Clara.
He practiced law for more than 30 years and also taught political science part-time for many years at Long Beach City College.
In addition to his Port responsibilities, Cordero was appointed by the Federal Reserve Bank of San Francisco to serve on the bank’s Los Angeles branch seven-member board of directors effective Jan. 1, 2021.
In 2025, for the seventh consecutive year, he was named to the Los Angeles Business Journal’s “LA500” list of the city’s most influential civic leaders.
The Board of Harbor Commissioners will determine a process for replacing Cordero in the months ahead.
OmniTRAXOmniTRAX Vice President of Operations Dallas Ramos has been appointed to the CSRLA Board, which represents the interests of small freight railroads operating within the state. As an advocacy group, it works on issues like legislative policy, regulation, and promoting the importance of short line railroads to the state’s economy.
“I am honored to join such an important rail advocacy group,” said Ramos. “California is the nation’s largest economy, and California’s ports, industries, and consumers play critical roles in our global dynamic supply chains. California’s short line rail operations are essential to that process, and I look forward to helping CSLRA advocate on behalf of those that count on safe and reliable rail transportation every day.”
“The California Short Line Railroad Association is pleased to announce the appointment of Dallas Ramos of OmniTRAX to our Board of Directors,” added CSLRA Executive Director Don Norton. Mr. Ramos brings a wealth of industry experience and strategic insight, particularly following OmniTRAX’s recent partnership with the Santa Maria Valley Railroad. With OmniTRAX already owning the Stockton Terminal and Eastern Railroad, this new partnership further strengthens their presence in California. His leadership and commitment to advancing short line railroads in the state will be a valuable asset to our organization as we continue to advocate for infrastructure investment, operational excellence, and sustainable growth across the region.”
OmniTRAX operates California’s Stockton Terminal and Eastern Railroad and the Santa Maria Valley Railroad in partnership with Coast Belle Rail Corporation.
The post People News: CN, Port of Long Beach, OmniTRAX appeared first on Railway Age.
Together with its partners, CSX restored the key 60-mile corridor damaged by Hurricane Helene within the Blue Ridge Subdivision that carries more than 14 million tons of freight each year and connects Appalachian communities and businesses to the nation’s broader freight network.
The Blue Ridge Subdivision is one of four North-South routes in the CSX network, serving not only local customers but also “acting as a critical throughway for the entire system, the Class I noted. “Its restoration strengthens CSX’s network resiliency, providing added capacity and flexibility to keep freight moving efficiently across the country.”
“Restoring this vital freight corridor is a testament to resilience, recovery, and the power of partnership,” said CSX President and CEO Steve Angel. “This is a significant moment for CSX, for the communities of Tennessee and North Carolina, and for everyone who has worked tirelessly over the past year to ensure that freight rail is once again moving safely and reliably through the Nolichucky Gorge, making sure that CSX’s network emerges stronger than ever, and that it’s better positioned to serve customers, communities, and the national economy.”
Upgrades to the Subdivision include the rebuilt 530‑foot Poplar Bridge with a modern ballast‑deck design for better clearance and mitigating future potential weather impacts. Four out of the six original 95-foot spans were salvaged and reused, “reflecting CSX’s commitment to sustainability.”
CSX also rebuilt the Devil’s Creek bridge which crosses the state line between North Carolina and Tennessee, reinforced key structures such as retaining walls, and upgraded drainage systems throughout the entire Nolichucky Gorge and in several locations outside of the Gorge.
Restoring the Blue Ridge Subdivision was one of the largest rail recovery projects in CSX’s history. Key facts include:
“Even as Hurricane Helene disrupted operations, CSX’s network proved resilient,” said CSX Executive Vice President and Chief Operating Officer Mike Cory. “The company maintained strong service levels across its broader system throughout unforeseen natural disasters, adapting quickly to challenges and ensuring essential goods for the nation kept moving. Now, with the reopening of the Blue Ridge Subdivision, CSX’s network is stronger and more resilient to disruption than ever before.”
CSX worked closely with state and federal agencies, environmental specialists, and local communities to complete the restoration. The effort, the Class I says, “prioritized safety, sustainability, and resilience to ensure the Blue Ridge Subdivision remains a critical link in America’s supply chain for decades to come.”
Today, CSX hosted a celebration in #Erwin, TN, to thank the workers who helped rebuild the Blue Ridge Subdivision after #HurricaneHelene. This vital 60-mile freight corridor is back, connecting Appalachia to the nation’s #SupplyChain. Well done, #ONECSX team! Learn more:… pic.twitter.com/fLvaAz8Mhk
— CSX (@CSX) October 3, 2025The post CSX Celebrates Reopening of Blue Ridge Subdivision appeared first on Railway Age.
Inside, you’ll find these feature stories:
In the 2026 Railroad Financial Desk Book, Financial Editor David Nahass discusses the railcar lease market—which he says “continues to demonstrate stability and a kind of strength”—plus the impact current railcar utilization and loadings levels are having on rents (and how the UP+NS merger could affect them, too). The Desk Book also includes, for easy reference, a directory of finance companies, arrangers, lessors and professional services firms.
Also, Capitol Hill Contributing Editor Frank N. Wilner covers the Surface Transportation Board drama following the Union Pacific-POTUS 47 chat. And Railway Age debuts The Rail Way, From the Boardroom to the Ballast Line, by Contributing Editor Pauline Lipkewich, Chief Transformation Officer for KingdomBuilding Leadership Inc. Lipkewich addresses how leaders navigate adversity and come out stronger.
These highlights and more can be found in Railway Age’s October 2025 digital edition:The post Now On Line: Railway Age October 2025 Digital Edition appeared first on Railway Age.
“As harvest ramps up in the Great Plains, South Dakota soybean growers have a new state-of-the-art processing facility at their disposal, right next to BNSF main line tracks ready to transport their products,” the Class I railroad reported via social media on Oct. 2. The facility, it said, can crush soybeans, sunflowers and other crops containing large amounts of oil.
High Plains Processing LLC, which is managed by the South Dakota Soybean Processors, near Mitchell is designed to crush up to 35 million bushels of soybeans annually, with plans to process sunflower, canola, and camelina by 2026, according to BNSF. The plant will be fully operational this month.
Among those attending the recent ribbon-cutting ceremony for the plant: Justin Inman, Ag Marketing Manager, BNSF; Matt Morales, Director, Marketing, BNSF; Matt Jensen, Manager, Ag Operations Support, BNSF; Tom Kersting, CEO, South Dakota Soybean Processors; John Prohaska, Group Operations Manager, South Dakota Soybean Processors; Pat Gathman, Plant Manager, South Dakota Soybean Processors; Matt White, Assistant Vice President, Ag Marketing, BNSF; and Jesus Uribes, Ag Marketing Manager, BNSF.
Further Reading: (Photograph courtesy of BNSF) (Photograph courtesy of BNSF)BNSF on Oct. 2 announced via social media that its team at the Havelock Wheel Plant in Nebraska has achieved more than 1,000 days without an injury.
“All of our team members here recognize the importance of working safely,” said Billy Anderson, BNSF Mechanical Safety Assistant. “It’s like a family environment. We all look out for each other, and no one hesitates to speak up if they see someone potentially compromising their own safety or someone else’s.”
“Congratulations, Havelock team!” BNSF posted. “Keep up the strong focus on safety and continue building on that injury-free streak.”
For more on the plant, read this BNSF Rail Talk article.
In other BNSF news, the railroad recently encouraged stakeholders to share their views with the Surface Transportation Board regarding the proposed merger between Union Pacific and Norfolk Southern, and congratulated Tristar Transload, Inc., on the official opening of its Muscat Spur Terminal.
UP Big Boy No. 4014 climbs the hill towards Speer Junction, Wyo. (Photograph by Billy Pine, courtesy of UP)UP’s Big Boy No. 4014, the world’s largest operating steam locomotive, returned to the rails this summer for a limited excursion tour in Colorado and Wyoming.
It was first accompanied by UP’s No. 1616 Lincoln Locomotive, the Class I’s newest heritage unit, honoring Abraham Lincoln’s role in “uniting the nation through rail and laying the foundation for America’s freight rail network.”
The trip started July 17 in Cheyenne, Wyo., and both units made their way to Greeley, Colo., arriving July 19.
The Big Boy crew after another trip on the rails. From left, John Stravino, Kirt Clark, Ed Dickens, Austin Barker, Cole Lewis and Jimmy Thompson. (Photograph courtesy of UP)To wrap up the trip, the Big Boy rolling through Colorado’s Greeley on Sept. 30 and Eaton on Oct. 1. The crew then returned to Cheyenne, Wyo., UP said, “to gear up for a much larger tour next year as part of the America 250 celebration. Stay tuned for details!”
Learn more about the dedicated team who keeps Big Boy in pristine condition and operates the locomotive across the UP network. To stay informed about Big Boy’s schedule and future steam excursions, join the Union Pacific Steam Club at up.com/SteamClub.
BACKGROUND (Courtesy of UP)ALCO manufactured 25 Big Boys for UP, 20 in 1941 and five in 1944, to haul heavy freight during World War II. They saw service until their fires were dropped for the last time in 1961. Eight survived; UP re-acquired No. 4014 in 2013 from the RailGiants Museum in Pomona, Calif., and meticulously restored her to operating condition. No. 4014 returned to service in 2019 and is the only functioning Big Boy.
(Photograph courtesy of UP)Railway Age reported on the 1941 debut with an extensive technical article (download below).
RailwayAge1941UPBigBoyDownload2025 marks Lincoln’s 216th birthday, and UP’s newest heritage unit, No. 1616, is participating in community events and educational programs that highlight the historic role of railroads in America’s growth and their continued contribution to the country, communities and economy.
No. 1616 inside UP’s Jenks Locomotive Shop in North Little Rock, Ark. (Photograph courtesy of UP)No. 1616 is the second presidential locomotive in UP’s Heritage Fleet, joining No. 4141, which was created in 2005 to honor President George H.W. Bush and was only the sixth locomotive at the time to be painted in colors other than the traditional UP “Armour Yellow.” On Dec. 6, 2018, UP participated in President Bush’s funeral train, led by No. 4141, from Spring to College Station, Tex., where the locomotive is on permanent display at the George Bush Presidential Library and Museum’s Marine One/4141 Locomotive Pavilion.
Further Reading:The post Class I Briefs: BNSF, UP appeared first on Railway Age.
Reinvent Albany, a New York-based government watchdog organization, has released a new report showing that the Metropolitan Transportation Authority (MTA) spent nearly $19 billion outside New York from 2011 to 2024, supporting up to 247,000 jobs in politically blue, red, and purple states alike. (For the purposes of this analysis, “job” means job-years: a job-year is one job for one year. See the full report below for more details.)
Reinvent-Albany-Report-Investing-in-the-MTA-is-Investing-in-America-October-2025-UpdateDownloadIt makes sense that blue states with large urban transit systems have large transit-related industries that the MTA patronizes. But taken together, the four red states where the MTA does substantial business see greater MTA spending than either California or Illinois alone (North Carolina, Ohio, South Carolina, and Texas). In total, companies in red states by U.S. Senate representation received more than $3.5 billion in MTA payments over 14 years. States that voted for POTUS 47 in 2024 received nearly $7 billion from the MTA over this period. (See our spreadsheet for details).
The report updates Reinvent Albany’s 2020 analysis of national MTA spending, which was released during the push for emergency transit funding at the height of the COVID-19 pandemic.
The MTA is seeking $14 billion in federal funding for its 2025-2029 capital plan, and congestion pricing is budgeted to raise $15 billion for the MTA’s 2020-2024 capital plan. Federal funding cuts to the MTA and New York—such as those announced for the Gateway Tunnel and Second Avenue Subway this week—would only harm the MTA’s ability to purchase goods and services from across the country. Similarly, federal efforts to end congestion pricing would mean less capital dollars available to spend for the MTA: One-third of past MTA spending on vendors has been made outside of New York, across a total of 46 other states. The U.S. House Transportation and Infrastructure Committee has said it has begun work on a bill to replace the Bipartisan Infrastructure Act, set to expire late in 2026.
The MTA is the largest mass transit provider in the country, carrying 40% of national ridership and supporting the metropolitan region’s economy, which accounts for 8% of the U.S. GDP. With a $20 billion annual operating budget—larger than that of some states—and a daily ridership of 4 million during peak operations, the MTA’s contributions to the economy of the NYC Metro Region and the U.S. as a whole are vast.
The top states receiving MTA dollars were:
The MTA’s reach across the country is huge, including purchases of wooden railroad ties from West Virginia; tracks from Ohio, uniforms from South Carolina; software from California, Dell computers from Texas; HP copiers from Arkansas; police dogs from Alabama; and railcars, buses and their parts from New York, Indiana, New Mexico, Minnesota, and Pennsylvania.
The full report is also available on Reinvent Albany’s website, which includes an interactive map, lists of spending in all states, and the top vendors in each state, as well as the underlying data.
Reinvent Albany advocates for transparent and accountable New York government.
The post Reinvent Albany: Investing in MTA Is Investing in America appeared first on Railway Age.
The submission period applies to PennDOT-owned projects, infrastructure, and services. During this period, the private sector can submit proposals “offering innovative ways to deliver transportation projects” across all modes, including rail, roads, bridges, aviation, and ports. Proposals can also include more efficient models to manage existing transportation-related services and programs.
The private sector may also submit applications for non-PennDOT-owned assets directly to the P3 board during this time. Transportation entities outside of the governor’s jurisdiction, such as transit authorities and the Pennsylvania Turnpike Commission, may establish their own timelines or accept proposals year-round.
The state’s P3 law allows PennDOT and other transportation authorities and commissions to partner with private companies to participate in “delivering, maintaining, and financing transportation-related projects,” according to the agency.
As part of the P3 law, the seven-member Public Private Transportation Partnership Board was appointed to examine and approve potential public-private transportation projects. If the board determines a state operation would be more cost-effectively administered by a private company, PennDOT would issue a Request for Proposals (RFP) and start a competitive procurement as defined by the P3 law.
Instructions on how to submit a project and information on the unsolicited proposal review process can be found on the state’s P3 website. PennDOT holds an unsolicited proposal period in April and October each year. The next unsolicited proposal acceptance period will occur in April 2026.
The post PennDOT Now Accepting Proposals for Transportation Projects appeared first on Railway Age.
Another proposal is being floated to revive the isolated Black Mesa & Lake Powell Railroad in northeastern Arizona for tourist operations.
The all-electrified BM&LP was built in the early 1970s to haul coal 78 miles from the Kayenta Mine near Kayenta, Ariz., to the Navajo Generating Station power plant at Page, near Lake Powell. It ceased operations in August 2019 with the closure of the Navajo Generating Station; the joint closure cost the Navajo Nation hundreds of well-paying jobs and a major source of economic infusion. The trackage has sat unused since the catenary was removed not long after closure, and was officially turned over to the Navajo Nation in February 2024. The rail corridor and its parallel service road are now under the care of the Navajo Nation’s Division of Economic Development.
The Navajo Nation has explored potential reuse of the corridor since the railroad’s closure, including reversion to farmland, railbike operations, tourist train operations, and a recreational trail. Most proposals have been stymied by the region’s relative remoteness and lack of economic resources.
Now a new company is proposing tourist operations on the track, using “sustainable” vehicles powered by solar and hydroelectric power.
Sunbeam Tours and Railway, or STAR, has announced plans to “transform cultural sustainable tourism” with zero-emissions electric rail vehicles, which will make the Navajo Nation accessible to tourists while creating economic opportunities for the local Navajo population. The company was founded by Celesta Littleman, a former Navajo Generating Station employee and now an M.B.A. student at Arizona State University.
Littleman received an Emergency Operating Agreement for STAR from the Navajo Nation in June, after a lengthy process that spanned five years and two Navajo administrations. Now, the company is preparing to complete a feasibility study and potentially acquire and test rail vehicles, to be powered by renewable solar/hydroelectric power provided by the Glen Canyon Dam and operated through Arizona’s Grand Circle Region.
In an interview with the Navajo-Hopi Observer, Littleman said tourism is the number one economic industry for the area now that the power plant and coal mines have closed. The Kayenta Mine and associated fees once provided as much as eighty percent of local Native American government budgets.
“Tourists have come not just for scenery but they’ve come for the Navajo experience,” she said. “My dream is to use the railroad tracks to give visitors a once-in-a-lifetime experience to see parts of the Navajo Nation that no one would ever see.”
Littleman said STAR would bring more tourists to nearby Horseshoe Bend, Lake Powell, Antelope Canyon and other canyons along the way. The hope is to have a STAR vehicle on each end of the railway — one will go from Page to Kaibeto and back, and the other one will go from Shonto to Cow Springs and Kaibeto and back — 60 miles roundtrip on both ends. Local service to Navajo residents to economic centers would also be provided. (The former Kayenta Mine is 20 miles southwest of its namesake town.)
Suppliers for the equipment to be used have not been specified, but artistic depictions at the company’s website (https://sunbeamrailway.com/) show hi-rail-adapted road vans and potential passenger trains set in the Arizona mesa desert landscapes.
—Alexander D. Mitchell IV
The post Potential Black Mesa & Lake Powell Tourist Revival appeared first on Railfan & Railroad Magazine.
The American Steam Railroad Preservation Association will mark the 80th anniversary of Reading Company 4-8-4 2100’s construction with a special open house in Cleveland on October 11. The event will be held at the Midwest Railway Preservation Society’s roundhouse and will support the ongoing restoration of the Northern.
Reading 2100 was built in the railroad’s own shops in September 1945 by essentially expanding an existing Baldwin 2-8-0. The locomotive operated into the 1960s. In 1975, it and its sister locomotive, 2101, were purchased by Ross Rowland. Locomotive 2101 was restored for the American Freedom Train while 2100 served as a parts source. Locomotive 2100 was briefly restored in the 1980s before moving to Ontario and then Washington State, where it briefly ran in the 2000s. In 2015, the locomotive was moved to Ohio to be restored by ASRPA. The locomotive was fired up for the first time since the 2000s earlier this year. ASRPA hopes to have the engine in service by next year and plans on painting it in American Freedom Train colors. It is also getting a new number, 250, to mark the nation’s 250th birthday
“We at ASR are very excited to be hosting our very first open house to let all of our followers and supporters have an opportunity to see No. 250 up close and in person and to see and touch railroading history being made right here in Cleveland,” said ASR President Rob Gardner.
Admission for the event starts at $15.00 per person, and children under 3 are free. Guests 16 and under must be accompanied by a ticketed adult. To register in advance, visit www.americansteamrailroad.org/visit-events.
—Railfan & Railroad Staff
The post Open House October 11 to Celebrate Reading 2100’s 80th appeared first on Railfan & Railroad Magazine.
Democrat Robert E. Primus, fired Aug. 27 from his Senate-confirmed seat on the Surface Transportation Board (STB) by POTUS 47, wants his job back—and he is suing the Republican POTUS, as well as the STB and its Republican Chairperson Patrick J. Fuchs to make it happen. Primus alleges the firing is illegal.
His alignment with rail labor on issues over which the STB has no jurisdiction—carrier employment levels and implementation of operating strategies such as Precision Scheduled Railroading, plus his “thank you for letting me represent you” comment to the largest rail union—suggest a conflict with impartial execution of STB responsibilities. This only partly explains the fine kettle of fish in which Primus finds himself, although his firing did not provide a reason.
Primus’ additional hurt flows from Union Pacific’s (UP) desire to merge with Norfolk Southern (NS) to create the United States’ first seamless transcontinental railroad—a transaction the STB has exclusive authority to approve or deny. Primus’ sole dissenting vote on a previous rail merger—CPKC—and his publicly stated opinion that mergers stifle competition, harm supply chain stability, and throttle rail safety, may be more significant to his present circumstance. Indeed, POTUS 47, who fired Primus, has been priming the pump in favor of the UP+NS hook-up. Notably, Primus has not stated an opinion on UP+NS; and, again, no reason was provided for his firing.
Perceptions of UP involvement in Primus’ termination are buoyed by UP CEO Jim Vena’s Oval Office cheshire smile during a photo-op with POTUS 47 ahead of extracting a “sounds good to me” endorsement of the merger. That UP is on the hook for a $2.5 billion break-up fee should STB deny the merger feeds perception that UP is exercising its political clout. At the White House level, that clout is stuff of legend.
President Ronald Reagan’s Transportation Secretary Drew Lewis became UP chairperson and CEO. Andrew Card, who was President George H.W. Bush’s Transportation Secretary and then President George W. Bush’s chief of staff, became a UP Board member, as did Republican Vice President Dick Cheney. A UP “funeral train” transported the casket containing remains of the elder Bush from Houston to College Station, Tex., for burial.
Unfortunately, Vena’s Oval Office tête-à-tête with POTUS 47 has tossed the independent (from the Executive Branch) STB into a thorny briar patch and will make a Primus return a sticky wicket should courts so order. As explained in a separate commentary, there is no evidence a sitting member of the STB has been pressured by UP or POTUS 47 on how to vote.
Primus is likely to be asked to recuse himself from participating in a UP+NS merger proceeding. An appearance of partiality with regard to UP+NS arises from his having being fired by a POTUS supporting the UP+NS merger, and suspicion that the CEO of one of the merger applicants (UP) may have urged his firing.
Peculiarly with regard to Primus’ situation, the union with which he is alleged to be most closely aligned—the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-TD)—has come out in support of the UP+NS merger.
Primus is represented in his lawsuit by the non-profit Democracy Forward Foundation that has been active in challenging POTUS 47 Executive Orders and policies.
Fired Democratic members of the Federal Trade Commission (FTC) and National Labor Relations Board (NLRB) earlier filed similar lawsuits as filed by Primus. Although those petitioners were granted by a federal district court injunctive relief to nullify the terminations and allow their return to office, the Supreme Court delayed the effectiveness of the injunctions pending further litigation—the law not settled as to court authority to order reinstatement.
In those cases, the Justice Department (DOJ), which supports the firings, argued that even if the POTUS 47 terminations are unlawful, courts have no authority to order reinstatement.
Primus, as well, argues his termination unlawful—that the STB is independent of the Executive Branch and that the STB’s statute provides for termination only where “inefficiency, neglect of duty or malfeasance in office” is shown—none of which was cited in his firing.
If Primus’ case follows the path of the FTC and NLRB cases, where injunctive relief has been delayed pending finality of litigation, Primus could be on the outside looking in well into 2026. And if he does return to work at the STB, he would, as explained earlier, face demands to recuse himself from participating in a UP+NS merger proceeding.
Further muddying Primus’ STB future is the government shutdown. The United States Courts website advises that the Judiciary has sufficient funds “not dependent on a new appropriation” to remain open only through Oct. 17. However, if government has not reopened by then, federal courts and agencies may operate under terms of the Anti-Deficiency Act that allows essential work to continue during a lapse in appropriations. This could include Primus’ request for an injunction allowing him to return to work.
STB and Fuchs are being sued because they are enforcing the Primus firing by denying him access to his office and STB files. Fuchs, as chairperson, is the agency’s chief administrative officer.
As with the FTC and NLRB cases, the STB and Fuchs will be represented by DOJ attorneys who can be called back to work in emergency situations (but pay would be delayed until after the government reopens). STB attorneys may similarly be called back to work if required to assist in defending the STB.
If a formal UP+NS merger application is filed as expected (Oct. 29 at the earliest), a timetable proposed by merger applicants provides for a final STB decision in early 2027.
However, the Board has proposed a revised version of the schedule, which could shorten the time for completion of the evidentiary record by months, perhaps allowing a final decision before the end of 2026. Importantly, that is only a proposal at present, and expect it to be opposed by CPKC and other stakeholders.
The five-member STB currently has two vacancies, including Primus’ now empty seat. Looking to 2027 (or late 2026), additional seats could become empty. Conceivably, the STB could consist of just one member by 2027—and since the agency’s statute has no quorum requirement, a merger could be decided by two or even a single STB member. That is highly unlikely.
Here is the current STB member consist (note that the statute allows members whose term expires to remain in office up to 12 additional months if a successor has not been Senate confirmed):
(Although the STB is closed as part of the government shutdown, the compensation of sitting Senate-confirmed members—Fuchs, Schultz and Hedlund—is tied to their official position and not annual congressional appropriations. Thus, they remain on the job.)
Railway Age Capitol Hill Contributing Editor Frank N. Wilner, a former STB chief of staff and career railroader, is author of “Railroads & Economic Regulation,” available from Simmons-Boardman Books, 800-228-9670.
The post Recusal for Primus if He Returns? appeared first on Railway Age.