Prototype News
STB Heeds SCOTUS on UP-NS Merger
WATCHING WASHINGTON, FEBRUARY 2026 ISSUE: Call them the “menses horribiles.” They’ve not been kind to the desired wedlock of Union Pacific (UP) and Norfolk Southern (NS), and worse for UP CEO Jim Vena, whose results-driven assertiveness collided with his official-Washington naiveite.
Vena is under the glare because it isn’t NS CEO Mark George who boldly predicted a “99.999%” probability of merger approval; used crude language to disparage those adversely critiquing the merger application; or engaged in personal lobbying of the POTUS, widely interpreted as attempted intimidation of presidentially nominated and Senate confirmed rail regulators.
Checkbook in hand, Vena journeyed to the White House in September to pursue favor from a POTUS infamous for humiliating those kneeling before him—Intel having been fleeced of a 10% equity stake and U.S. Steel affording the POTUS a right to veto major corporate decisions. Perhaps corporate heritage fogged Vena’s vision. Vena predecessor Drew Lewis was Ronald Reagan’s Transportation Secretary. Once serving on UP’s board were George W. Bush’s Transportation Secretary Andrew Card and Vice President Dick Cheney. UP ran a “funeral train” to transport the body of President George H.W. Bush from Houston to College Station, Tex., for burial.
POTUS 47 couldn’t grant Vena’s merger approval wish, as the law since 1920 allows only the independent Interstate Commerce Commission (ICC) and its successor Surface Transportation Board (STB) to rule on rail merger applications. Equally instructive, Vice President J.D. Vance, with cognitive ability superior to POTUS 47’s, has openly criticized “concentration in the corporate sector.” The POTUS, of course, pocketed Vena’s check (amount not disclosed). Vena denies an attempted quid pro quo, identifying the check as to help finance construction of a gilded White House ballroom.
So, who flubbed the dub? The attorneys responsible for the rejected application didn’t recently tumble off a turnip wagon with mail-order law degrees. More probable is that their UP and NS handlers—intoxicated with a sense of corporate dominance and inclined not to reveal much that might be useful to merger opponents—restricted the attorneys’ ability to prepare an application fully responsive to STB merger rule requirements.
Consider:
• Although STB’s so-called “new” rules for major railroad mergers have yet to be used since their 2001 publication, they are not puzzling to the outside legal counsel responsible for the merger application.
• The rules were developed by former ICC and then STB Chairperson Linda J. Morgan. At her STB term expiration, Morgan joined UP’s Washington law firm, Covington & Burling, which successfully superintended UP mergers with Chicago & North Western in 1995 and Southern Pacific in 1996—both winning then-regulator Morgan’s support.
• Covington & Burling’s lead attorneys for those mergers were the late Arvid Roach and now retired J. Michael Hemmer—the latter subsequently becoming UP’s senior vice president for law. Tutored in merger application preparation by the two was young Covington & Burling attorney Michael L. Rosenthal, now heading the firm’s Transportation Practice Group still representing UP.
• Representing NS are attorneys Ray Atkins and William A. Mullins. Atkins is a former Covington & Burling attorney, formerly STB general counsel, also a Ph.D. economist and now with the law firm Sidley & Austin. Mullins was an ICC chief of staff and later represented Kansas City Southern.
• While Rosenthal, Atkins and Mullins are unrivaled in background and experience to write an exceptional merger application, they are dependent on client authority to disclose fully accurate data, some of which those in the C-suite claim to be privileged. Such disclosure is essential to avoid STB from again stamping their work “incomplete.” (Attorneys do not tattle on clients, so there may be other explanations, but we are doubtful fault lies with Rosenthal, Atkins and Mullins.)
Among what the STB seeks in a revised application are, for example, evidence-based explanations of how the applicants intend to grow intermodal units by some 12% (1.4 million diverted from motor carriers; 450,000 from competing railroads). Notable is that intermodal’s compound annual growth rate has been flat for 10 years, and rail analyst Rick Paterson predicts another “lost decade of volume growth.” And should BNSF and CSX seek marriage if UP and NS merge, they also will be pressed to project a boost in intermodal volume.
The revised application requires greater transparency as to what headwinds applicants face and how they intend to overcome them to achieve the merger benefits they claim. Headwinds to intermodal growth include battery improvements allowing EV trucks to compete with rail on long-haul routes; increased use of driverless tractor trailers already operating on a 600-mile route between Ft. Worth and El Paso; Congress’ decades-long unwillingness to increase highway user charges to levels that recover fully the costs of bridge and pavement damage caused by big trucks; lawmaker liberalization of truck size and weight limits; and willingness of intermodal marketing companies to invest billions in facilities expansion. Trade tensions, diminished hiring and weaker consumer spending also lurk.
To be considered on the rail side are what transportation consultant Michael Weinman (PTSI Transportation) terms “friction factors” (minor annoyances driving customers elsewhere). They include problems navigating rail websites; the pain of negotiating volume rates; difficulty tracking loads; first- and last-mile delays; cargo theft and damage; and shortages of container chassis.
As for St. Louis switching, history adds context. In 1912, the Justice Department invoked the Sherman (Antitrust) Act against Terminal Railroad Association of St. Louis (TRRA), which held financial control of Mississippi River rail crossings and lighterage service. Rather than order divestiture, the SCOTUS ruled TRRA must act with neutrality in its pricing and service, finding large size and monopoly not necessarily evil.
Another issue deserving of greater transparency in a resubmitted application is whether merger benefits outweigh the costs, and whether projected service improvements and traffic growth can alternatively be achieved through partnerships. Merger proponents say single-line service streamlines high-volume interchange and significantly reduces ton-mile costs; that partnerships can dissolve; that incentives are never aligned; and when two separate railroads interchange freight cars, it can take hours or days.
Proponents of partnerships say pre-blocking can reduce physical transfers to just one hour; that if partnerships fray, they can be improved; and mergers may enlarge a firm to where it cannot be managed efficiently—the bureaucracy becoming too large and communications breaking down.
History, again, can be a guide. A precursor to Precision Scheduled Railroading (PSR) occurred in 1931 when six small railroads—Central of New Jersey, Reading, Western Maryland, Pittsburgh & West Virgina, Wheeling & Lake Erie and New York, Chicago & St. Louis (Nickel Plate)—partnered to challenge successfully the single-line service of railroads New York Central, Pennsylvania and Baltimore & Ohio between origin points of New York, Philadelphia and Baltimore, and destination points of Chicago and St. Louis. Known as the Alphabet Route for the waybill acronyms (CNJ, RDG, WM, P&WV, W&E and NKP), trains eastbound and westbound were built incrementally through precision scheduled physical transfers.
Decades ago, on the eve of a previous “largest rail merger in history,” the SCOTUS observed, “If not handled properly, [Penn Central] could seriously disrupt and irreparably injure the entire railroad system.” The same applies today, with the independent STB disregarding calls to rubber stamp a merger on the basis of high-level political connections and heeding six-decade-old SCOTUS advice to be methodical.
That Vena, a respected and competent railroader, is not Washington savvy is not atypical of CEOs. Solace may be found in the words of 16th century Scottish sea captain Sir Andrew Barton:
I am not hurt,
I am not slain;
I’ll lay me down and bleed a-while,
and then I’ll rise and fight again.
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GDC Sues Feds Over HTP Funding Hostage-Taking
The Gateway Development Commission is seeking release of federal funding withheld since October for the Hudson Tunnel Project (HTP), centerpiece of the Gateway Program to increase Amtrak intercity and NJ Transit regional/commuter rail service capacity between New York and New Jersey.
GDC, which is overseeing the HTP, has filed a lawsuit against the U.S. Department of Transportation (USDOT) seeking release of contractually obligated grant and loan funds for the project. GDC is seeking $205 million in disbursements previously withheld, along with damages that will be incurred because of any suspension of the project or cancellation of existing contracts. GDC said if additional funding does not become available by Feb. 6, 2026, HTP construction will be forced to pause, resulting in the loss of nearly 1,000 jobs.
USDOT began withholding federal funding payments for the HTP and Phase 2 of the New York Metropolitan Transportation Authority’s Second Avenue Subway projects in October, stating that the requests for payment could not be processed during a review of the projects that it had ordered. USDOT stated that the review would investigate whether “any unconstitutional practices” are occurring within the projects after thew agency ruled that “race and sex-based presumptions of social and economic disadvantage that violate the U.S. Constitution” should be removed from the Disadvantaged Business Enterprise (DBE) program, which is intended to favor small businesses when awarding contracts for federally funded projects.
The lawsuit filed by GDC argues that USDOT and GDC are legally bound by the terms of Capital Investment Grants (CIG), Federal-State Partnership (FSP) Grant and RAISE Grant agreements, as well as Railroad Rehabilitation and Investment Financing (RRIF) loans, since full HTP funding was secured in July 2024.
The White House has falsely accused Democratic politicians of failing to negotiate with the POTUS 47 Administration to secure a deal for the future of the project.
Funding ExhaustedGDC says it has drawn on available funding and credit to progress the project as planned while the federal disbursements are paused. However, it was confirmed during a Jan. 27 board meeting that all funding would be exhausted by Feb. 6, forcing HTP construction shutdown. In addition to the 1,000 immediate job losses, GDC noted that an extended pause would put approximately 11,000 jobs at risk as well as the 95,000 jobs and $19 billion in economic activity that HTP construction is anticipated to generate overall. It said that project delays will increase the risk that the 116-year-old North River Tunnels—already a major cause of delays to passenger rail services between New Jersey and New York—would shut down.
GDC illustration.“For months, GDC has worked cooperatively with its federal partners to meet their requirements for restoring funding,” GDC said in a statement. “GDC responded thoroughly and promptly to each request for information about the project’s federally mandated Disadvantaged Business Enterprise (DBE) program and provided documentation that the project is in compliance with the administration’s latest regulations.”
“Our goal has always been to work with our federal partners and get funding flowing again,” said Tom Prendergast, GDC CEO. “At the same time, we must hold the federal government to its contractual obligations so that construction is not halted.”
Editor’s Commentary: Holding GDC funds hostage is nothing more than the latest in a series of USDOT political shenanigans to kill congestion pricing in New York City. So far, all attempts by POTUS 47 and his Administration sycophants to squash congestion pricing have failed miserably. Congestion pricing has been an unequivocal success in providing capital project revenue for the New York Metropolitan Transportation Authority while reducing traffic congestion and air pollution, and increasing ridership on Long Island Rail Road, Metro-North, NJ Transit and PATH trains as well as on local/regional bus services. The Ringling Brothers Barnum & Bail Circus, “The Greatest Show on Earth,” may be coming to the New York City area in March, but “The Most Sickening Political Circus on Earth” has been playing 24/7 since Jan. 20, 2025. “Race and sex-based presumptions of social and economic disadvantage that violate the U.S. Constitution”? What a raccolta di stronzate! – William C. Vantuono
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Class I Briefs: CPKC, CSX
CPKC in January moved 2.395 million metric tons (MMT) of Canadian grain and grain projects, beating its previous January tonnage record set in 2023, the railroad reported Feb. 2. January 2026’s 24,688 carloads also set a new monthly record, it said, surpassing the previous high set in January 2023.
“By working closely with our grain customers and working efficiently with our supply chain collaborators, our railroaders have delivered record amounts of grain and grain products across Western Canada to start the year,” CPKC Senior Vice President Sales and Marketing Jonathan Wahba said. “This performance and record volumes have been made possible through significant investment in the grain supply chain made by CPKC and our customers in new and upgraded grain-handling capacity and high-capacity hopper cars.”
Through the first 26 weeks of the 2025-26 crop year, CPKC shipped more than 15.1 MMT of grain and grain products. These are the largest totals since the record-setting 2020-21 crop year, according to the Class I.
“The noteworthy volumes of grain and grain products moving on our railway exceed the average supply chain capacity targets outlined in our annual grain service plan,” the railroad reported (download below). “It is critical that all supply chain participants, including customer loading facilities and terminal operators loading grain into vessels at ports, operate at full capacity to sustain this strong momentum.”
Grain-2025-26_WEBDownloadSeparately, CN recently reported setting a new monthly record for grain movement in December, marking its fourth consecutive record month. CN moved more than 2.82 MMT of grain from Western Canada, surpassing its previous December record set in 2020 by more than 80,000 metric tons.
Further Reading:- CPKC: ‘Exceptional Execution in Challenging Market’
- CTA Releases Annual Maximum Grain Revenue Entitlements for CN, CPKC (part of Class I Briefs)
- CN, CPKC: Ready for 2025-26 Grain Service
- CTA Sets CN, CPKC 2025-2026 VRCPIs
#CPKC is proud to announce @StolleryKids (Stollery Children’s Hospital Foundation) as the charity partner for the 2026 @cpkcwomensopen with a goal to raise over $3.9 million to support children’s heart health in Alberta. https://t.co/8C5xMtLFbJ #CPKCHasHeart pic.twitter.com/AUn5zElCVa
— CPKC (@CPKCrail) February 2, 2026Meanwhile, also on Feb. 2, CPKC announced that Stollery Children’s Hospital Foundation has been selected as the primary charity partner for the 2026 CPKC Women’s Open, to be held at the Royal Mayfair Golf Club in Edmonton, Alberta from Aug. 19-23, 2026.
CPKC’s goal in 2026 is to raise more than C$3.9 million in support of the Foundation, which it said will be used for ultrasound echocardiography machines, neuromonitoring systems and other equipment for the pediatric cardiac program; research through the Women and Children’s Health Research Institute; and specialized staff training and family outreach initiatives.
The railroad since 2014 has helped raise more than C$27 million for children’s heart health as the title sponsor of the Women’s Open. Canadian Pacific sponsored the event prior to its merger with Kansas City Southern in 2023 to form CPKC, the first single-line, transnational railway connecting Canada, the U.S. and Mexico.
“Together with the Stollery Children’s Hospital Foundation, we are focused on raising funds at the 2026 CPKC Women’s Open to advance cardiac care for children and families throughout our home province of Alberta,” CPKC CEO Keith Creel said. “Support for children’s heart health is a central pillar of our community investment initiative, CPKC Has Heart. This summer, as we welcome some of the world’s most talented golfers to Edmonton, we look forward to leaving a legacy that makes a difference in the lives of children who need it most.”
“We are incredibly grateful to CPKC for choosing Edmonton and for their generous support of cardiac care at the Stollery Children’s Hospital,” commented Karen Faulkner, President and CEO of the Stollery Children’s Hospital Foundation. “Their commitment will make a real difference in the lives of children and families facing heart conditions which helps us expand critical services, invest in leading-edge technology, and give every child the best chance to live a long and healthy life.”
“CPKC Has Heart has made an extraordinary impact in every community that has hosted our National Women’s Open Championship, and we are thrilled to welcome the Stollery Children’s Hospital Foundation as the charitable beneficiary of the 2026 CPKC Women’s Open,” Golf Canada CEO Laurence Applebaum added. “The return of the CPKC Women’s Open to Royal Mayfair Golf Club and the City of Champions this August is going to be electric. Fans will experience the world’s best players in action while helping drive the incredible, life-changing work of the Stollery Children’s Hospital.”
The CPKC Women’s Open community charity partner will be announced in the coming weeks, according to the railroad.
In 2025, CPKC raised C$4.5 million for cardiac healthcare at the CPKC Women’s Open; it presented the funds to MacKids, the arm of Hamilton Health Sciences Foundation dedicated to fundraising for McMaster Children’s Hospital (C$4 million), and to Trillium Health Partners (C$502,000).
CSXCSX is advancing its multi-year Pole Line Elimination Program, a systemwide effort led by the Communications & Signals team to retire outdated aerial signal and communication lines and transition to “modern, resilient technologies”(watch video, above). It has removed more than 7,000 miles of pole lines across multiple subdivisions, the railroad reported Feb. 2.
“For decades, pole‑based systems formed the backbone of railroad communications,” CSX said. “Today, however, these aging structures pose challenges: they are vulnerable to severe weather, difficult to maintain along the right-of-way and can affect service reliability. By replacing this legacy infrastructure, CSX is reducing risk, strengthening safety, and creating a cleaner, more efficient operating environment.”
The modernization initiative, it said, focuses on installing microprocessor‑based signal systems that use the rail itself for train detection and track integrity verification. These systems “enhance performance and support advanced safety technologies,” including Positive Train Control (PTC), which integrates GPS, sensors and software to help prevent collisions, derailments, and other incidents, according to the railroad.
Further Reading:- CSX 4Q, Full-Year ’25: ‘Challenging Year’
- CSX Wraps Up Hump Lead Extension Project (part of Class I Briefs)
- CSX, SCS-02 Launch Rail-Served Warehouse in Ky.
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Galison Manufacturing Reaches Major Milestone as 200th Wagon Shipped to Lobito Atlantic Railway
For Bay Area Transit, a $590MM ‘Fiscal Bridge’ (UPDATED 2/3 With Commentary)
“Negotiated in close coordination with the affected transit agencies—which together face a projected deficit of more than $800 million in the next fiscal year—the new agreement will sustain operations used by hundreds of thousands of daily transit riders across the region,” said MTC, the transportation planning, financing, and coordinating agency for the nine-county San Francisco Bay Area.
The Jan. 30 agreement authorizes the loan to be funded no later than July 1, 2026, using money awarded but not yet allocated for Bay Area projects by the California Transportation Commission through the state Transit Intercity Rail Capital Program (TIRCP), according to MTC. “Because many transit capital projects have long construction timelines and the TIRCP is continuously replenished, the loan is structured to uphold the state’s commitments to awarded projects while minimizing risk to project schedules,” it said.
Consistent with state Senate Bill 105 enacted last fall, MTC said the loan agreement includes “a clearly defined repayment structure, a guaranteed revenue source to secure the loan and an agreed-upon interest rate:
- “12-year repayment term, with interest-only payments during the first two years.
- “Repayment secured by the ‘revenue-based’ portion of State Transit Assistance (STA) that goes directly to the transit agencies.
- “Variable interest rate tied to the state’s Surplus Money Investment Fund, ensuring the state is fully repaid at the same rate it would have earned had the funds remained in state accounts.”
This state loan provides what MTC called a “fiscal bridge” until sales tax dollars could potentially be available. A regional funding measure authorized by the state legislature last year via state Senate Bill 63 may appear on the November 2026 ballot in Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara counties, according to MTC. If the measure qualifies for the ballot and is approved by voters, it would establish a temporary 14-year sales tax to support transit operations, it said. But these funds would not begin flowing until around July 1, 2027.
“California is following through in our support for Bay Area transit and the riders who rely on it every day,” Gov. Newsom said. “This agreement between my Administration and the Metropolitan Transportation Commission provides essential short-term financing to support Bay Area transit operations while the region works together on long-term funding solutions. Public transit is essential to our economy and to communities across California, and through continued partnership with regional and local agencies, we are delivering a more stable and reliable system—now and for the future.”
“MTC greatly appreciates the time and energy the Department of Finance and the Governor’s office put into this loan negotiation,” said MTC Chair Sue Noack, who also serves as Mayor of Pleasant Hill. “It was critical to reach agreement on funding that would avert major service cuts this year while also protecting the Bay Area’s priority capital projects and this agreement does just that.”
BART is a rapid transit system that connects the San Francisco Peninsula with communities in the East Bay and South Bay. It operates in five counties (San Francisco, San Mateo, Alameda, Contra Costa, and Santa Clara) with 131 miles of track and 50 stations. (Map Courtesy of BART)BART General Manager Bob Powers noted that his agency, “is currently developing detailed budget plans for two funding scenarios to close our projected $376 million operating deficit for Fiscal Year 2027 through either new revenue and efficiencies or through service reductions, station closures, fare increases, layoffs, and across-the-board internal cuts. A state loan gives us reassurance money will be available to continue to deliver the best service possible for the Bay Area. We are thankful to Governor Newsom and the Department of Finance for finding a path to fund transit operations during such an unprecedented scenario brought on by the pandemic and remote work. We also thank the Bay Area Legislative Caucus for their supportive efforts and look forward to working with the Legislature on early action to include the loan within the state budget.”
(Map Courtesy of SFMTA)“This bridge loan will help us maintain Muni service for one crucial year for everyone who depends on transit to get where they need to go,” SFMTA Director of Transportation Julie Kirschbaum said. “We thank the Metropolitan Transportation Commission for its leadership and the Governor and the Department of Finance for their collaboration. We are deeply appreciative of the tireless efforts of Mayor Daniel Lurie, State Senator Scott Wiener, State Senator Jesse Arreguín, the Bay Area Legislative Caucus, the Board of Supervisors and the transit advocates who kept this loan alive last year. With this key agreement completed, securing the additional funding we need to address our ongoing deficit is the critical priority.”
“We are so grateful to the Governor, our delegation members, and our state and regional partners for stepping in and supporting public transit in the Bay Area at this critical time,” Caltrain https://www.caltrain.com/ Executive Director Michelle Bouchard commented. “This loan will allow us to preserve the service that made Caltrain the fastest growing transit agency in the U.S.”
System Overview Map with Insets-FINALDownload“For 65 years, AC Transit’s north star has been delivering safe, reliable, and affordable bus service to the East Bay,” added Salvador Llamas, AC Transit General Manager and CEO. “That legacy was put at risk by unprecedented pandemic-related budget shortfalls. This state loan safeguards existing service levels and brings immediate relief to the more than 3 million riders each month who were at risk of losing some of the service they rely upon for the essentials of life. We thank Gov. Newsom and our local and state partners for making this possible, and while long-term funding challenges remain, today we celebrate a critical win for our riders and communities.”
Commentary From Railway Age Contributing Editor David Peter Alan David Peter AlanThis story demonstrates how difficult it is to report on the future of rail transit in the United States (that also goes for bus-service providers, but they are generally outside our purview, although AC Transit is a bus-only agency). Ridership on transit has not recovered to pre-COVID levels, while costs keep rising. In the meantime, the COVID relief money that the feds provided for transit during the height of the pandemic has run out, or will run out soon, at every transit agency.
To add to the difficulty of reporting these stories, every one of them is local, with each provider facing different fiscal challenges and potential solutions, all of which depend on local politics, and sometimes on the fickle whim of the voters.
New York’s MTA has money from new levies and some capital assistance from Congestion Pricing in Manhattan. New Jersey has a surcharge on the largest corporations in the State, which has 35 months left to run. Chicago enacted some new revenue-raising measures and regionalized the governance of transit in Chicagoland. Pennsylvania got a two-year reprieve by taking money from the capital side and allowing it to be used for operations; a risky solution, but the Legislature did not come through, and Pittsburghers and folks in the Philadelphia area still have their transit.
When the COVID-19 virus struck nearly six years ago, transit in the Bay Area was hit hard. Service was slashed everywhere. For a while, there were only 17 bus routes operating in San Francisco, and the rule was that everybody had a bus stop within one mile of home. Some of those bus routes substituted for rail lines that had lost service completely.
Since then, service in the area has recovered substantially, but not to pre-COVID levels. There have also been capital improvements, like the recent electrification of the Caltrain line, which has brought shorter running times and a strong increase in ridership.
A bridge loan is still a loan, though, and the transit agencies are required to pay it back. In nine months, the voters will have their say. If they go along, San Franciscans and people who live in neighboring towns and across the Bay will be able to breathe easier about their transit until 2041. In California, voters must approve new taxes by 2/3 and not merely a majority. These supermajority votes allowed Los Angeles to expand its rail transit, but will the voters in San Francisco and the outlying counties give their transit a similar vote of support?
Voters kept Caltrain going when it was in trouble a few years ago, and plenty of San Francisco residents (as well as tourists) depend on Muni transit there. The issue is whether or not enough motorists in the other counties will agree to come up with the money to keep their transit going at or near present levels. As with all of these unique and risky solutions to transit’s post-COVID financial woes, time will tell.
Further Reading:- No Clear Track Ahead
- California Investing $97MM in Rail Transit Projects
- Caltrain: ‘Cuts to Come’ Without External Funding
- MARTA, BART Budgets Approved for FY26
- BART: ‘Getting Our Budget in Order’
- A Varied, Growing Network
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Pacific Northwest Short Line Looks to Restart Tourist Train
The Port of Pend Oreille in Washington State has secured a $1 million grant in an effort to revive excursion service on the Pend Oreille Valley Railroad.
POVA owns and operates on former Milwaukee Road and Great Northern trackage between Metaline Falls, Wash., and Sandpoint, Idaho, where it interchanges with BNSF Railway. It began operations in 1979, when the Port of Pend Oreille purchased the former MILW line between Metaline Falls and Newport, and expanded to include the GN line to Sandpoint in 1998. The line to Metaline Falls is particularly scenic but also lacks any freight business. For years, the railroad operated scenic excursions over it in partnership with the local Lions Club. But since 2016, that part of the railroad has been out of service.
The $1 million grant will fund the first phase of a project to repair approximately 5 miles of track between Usk and Cusick. The Port is partnering with the Kalispel Tribe of Indians to develop passenger service and anticipates hiring 6 to 10 people once excursions begin. Officials are hopeful that service could start sometime in 2028.
—Justin Franz
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People News: BNSF Logistics, Caltrain, STV, Virginia DRPT
David Ivan is the new President and CEO of BNSF Logistics, LLC, a subsidiary of BNSF that operates more than 40 offices throughout North America, with more than 120 FCPA-certified Global Service Providers for import and export of general and project cargoes throughout the world. Previously, he served in senior operational leadership roles across a range of global organizations, including chief operating officer positions at BNSF Logistics and Vestas. His career spans more than 25 years, leading multi-site operations across manufacturing, logistics, and global supply chains.
Ivan holds an MBA from Wake Forest University and a bachelor’s degree in manufacturing engineering technology from the Oregon Institute of Technology.
“I’m excited to step into this new role at BNSF Logistics and to continue to work alongside such an exceptional team, focused on positioning us for long-term growth,” Ivan said. “I’m committed to investing in our people, technology, and process excellence to create meaningful value for our customers and partners and am determined to keep that drive at the heart of everything we do.”
Further Reading: Caltrain (Photograph Courtesy of Caltrain)Caltrain, in the January 2026 edition of is e-newsletter, reported that Jerry Guaracino has been named Chief Safety Officer. Most recently, he was Chief Engineer for Washington Metropolitan Area Transit Authority in Washington, D.C., a position he took on in 2020. Guaracino spent the previous 21-plus years at Southeastern Pennsylvania Transportation Authority (SEPTA) in Philadelphia, where he rose through the ranks from Project Engineer to Manager of Bus Engineering to Assistant Chief Engineering Officer.
Caltrain is a regional/commuter railroad that provides service along the San Francisco Peninsula, through the South Bay to San Jose and Gilroy.
Further Reading: STV TJPA-The_20Portal-Board_20Funding_20Advocacy_20July_202025DownloadSTV on Feb. 2 reported appointing Anna Harvey as Vice President and Northern California Area Manager for its Transportation West Operating Group. She will lead strategic growth initiatives, client engagement and project delivery across the region.
Harvey brings nearly 20 years’ experience in civil and transportation engineering to the new role. She served most recently as Deputy Project Director for the Transbay Joint Powers Authority, where she led engineering design, environmental planning and third-party agreements for the $8 billion Portal program(see Fact Sheet, above). According to STV, she guided the project through the Federal Transit Administration’s Capital Investment Grants process. Additionally, she led rail planning efforts for the San Francisco Planning Department, conducting studies to evaluate future Caltrain station locations and coordinating policy responses on major rail projects.
Harvey holds a B.S. in civil and environmental engineering from the University of California, Berkeley, and an M.S. in transportation management from San José State University. She is a licensed Civil Engineer in the State of California.
“Anna’s understanding of how to move major transportation programs from vision to delivery makes her the ideal leader for our Northern California operations,” STV Transportation West Operating Group President Liz Justison said. “Her vision, technical acumen, and commitment to equity and sustainability strengthens our ability to deliver impactful projects that connect communities and drive economic development.”
Separately, STV recently promoted Suresh Karre, Derek Overstreet, and Michael Randolph to Vice President roles, and appointed Natasha Avanessians as Chief of Staff to the CEO, succeeding Kristen Van Gilst, who transitioned to Deputy Operations Director.
Virginia DRPT (Courtesy of Virginia Railway Express)Allan Fye is the new Chief Deputy Director at the Virginia DRPT, which oversees programs and initiatives that support freight investments and delivers data-driven planning recommendations and policies for both passenger and freight rail; administers public transportation funding and planning in Virginia; and manages investments in local and regional commuter assistance programs. He supports the agency’s mission “to plan, fund, and deliver a balanced, multimodal transportation system that meets Virginia’s growing and evolving needs through collaboration, innovation, and strategic investment.”
Fye has more than 20 years of experience in the transit industry, with a career focused on policy development, strategic planning, and coordination across local, regional, state, and federal levels. He served previously as a senior director at the Los Angeles County Metropolitan Transportation Authority, where he led strategic planning for passenger rail in Southern California and worked closely with regional, state, and federal partners to advance rail initiatives. Earlier in his career, Fye held several leadership roles in Virginia, including positions with the City of Alexandria and the Northern Virginia Transportation Commission (NTVC). His work included planning for high-capacity bus rapid transit corridors in Alexandria; overseeing capital investment projects; modernizing transportation demand management efforts; and supporting the growth and development of NVTC’s Commuter Choice program, a partnership with DRPT, the Virginia Department of Transportation, and the Commonwealth Transportation Board that invests toll revenues into multimodal transportation improvements across Northern Virginia.
“Allan is a highly respected transit leader with a strong track record of turning strategy into action,” said Mariia Zimmerman who was named DRPT Director earlier this year. “His experience working across agencies and all levels of government will strengthen our ability to deliver projects efficiently and thoughtfully. I value his collaborative leadership style and look forward to working closely with him as we advance DRPT’s priorities.”
“Stepping into this role is a meaningful opportunity to serve the Commonwealth and contribute to work that directly impacts people’s daily lives,” Fye said.
Further Reading:- Virginia DRPT Breaks Record in Truck Diversion Via Freight Rail Programs
- Virginia DRPT: $7B SYIP
- Sims Secures Virginia DPRT ‘Truck Diversion’ Grant
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PSNY Master Developers Shortlisted. Now What?
As I reported on Aug. 27, 2025, Andy Byford, New York’s beloved “Train Daddy,” is back in town. He earned his local fame (which enhanced his already global reputation on the rail scene) by running MTA New York City Transit in an outstanding manner. This time, he is supervising the redevelopment of New York’s Penn Station for Amtrak, the lead agency on the project.
I reported in August that Byford announced a Penn Station development design competition that would take place in 2026. A “master developer” would be selected in late 2025, with preliminary design and NEPA (National Environmental Policy Act) activities coming in 2026, according to USDOT’s New York Penn Station Transformation Schedule. As reported, construction was supposed to begin by the end of 2027. Amtrak became the lead agency, since the POTUS 47 Administration took the $7 billion project away from the New York Metropolitan Transportation Authority (MTA) in April 2025 and pulled grant funding. Byford said: “The transformation of Penn Station must be much more than bricks and mortar. It must be about making the station operationally sound, safe, clean and easy to navigate.” He added he could handle a project of this magnitude, mentioning the London Bridge Station project in the U.K., which he managed. “Customers need to feel like they know where to go,” Byford said. Regarding the station as it exists today, he acknowledged: “Everybody recognizes that this is not good enough.”
A recent report says that there are now three “master developer” finalists. Ramsey Khalifeh, a transportation reporter at New York City NPR station WNYC, reported Jan. 21 on the station’s affiliated news website, Gothamist: “To move, or not to move? That was the question hovering over Madison Square Garden as Amtrak released a shortlist of finalists to overhaul Penn Station, located beneath the arena. The national railroad announced three consortia will vie for a lucrative contract to rebuild—and eventually run—the nation’s busiest transit hub, which is notorious for being dingy, dark and difficult to navigate. The list comes less than a year after [POTUS 47] took control of the long-stalled project from the MTA and turned it over to Amtrak, which owns the station.”
According to Khalifeh, “The feds provided no details on the actual proposals from each group, but two of them have publicly presented their visions to redevelop the station. One would force Madison Square Garden to move across Seventh Avenue to create a new light-filled train station. Another would leave the arena in place, while carving out new entrances and windows that make the station easier to navigate.”
The Pennsylvania Railroad built the original Penn Station as the centerpiece of its massive New York Improvements project, which also included two Hudson River Tunnels, four East River tunnels and Sunnyside Yard. It opened for service in 1910. Universally recognized as a magnificent work architecture, the McKim, Mead & White-designed Beaux-Arts style building lasted only until 1963. Since that time, only the basement has remained, with the current Madison Square Garden (MSG) on top of it. Preservationists and aficionados of architectural and urbanist style have lamented the loss of the station ever since. Their only consolation is Amtrak-exclusive Moynihan Train Hall, located across the street in the repurposed James A. Farley Post Office building. The two stations are physically connected only at the train platform level. To access one from the other, riders must exit and walk across 8th Avenue.
Moynihan Train Hall The CompetitorsThe three finalists are Grand Penn, Halmar International and Penn Forward Now. At this time, I don’t know what sorts of plans the finalists in the present competition will offer, but their websites give us a bit of an indication.
The Grand Penn Community Alliance (GCPA) will probably propose a building with the classical features that characterized the original Penn Station: “The Grand Penn Community Alliance’s mission is to advocate for a major [complete] renovation of Penn Station to return it to its grand and glorious prominence serving as a world-class, sustainable public space and transportation destination that will transform the neighborhood and serve the needs of commuters, community, businesses, and visitors in an uplifting and gratifying building that relates to the design and architecture of the original Penn Station and the existing Grand Central Terminal. When Andy Byford, Amtrak’s special advisor overseeing the redevelopment of Penn Station called for proposals that will truly be transformative, we believe that the Grand Penn Partners/Macquarie Group’s Proposal is the only plan that can deliver on that mission.” Macquarie Group Limited, a.k.a. Macquarie Bank, is an Australian investment bank based in Sydney.
Images on the Grand Penn website show a new park, to be named Grand Penn Park, in front of the station. The MSG cylinder would be less tall than it is today and would be located across Seventh Avenue from Two Penn. There would be “a unified, single level concourse” for access to trains, with curved glass reminiscent of the original Penn Station. The Seventh Avenue concourse would feature a reproduction of the original facade, with no structure behind it, except a glass-curtain building. Grand Penn says that the project is estimated to cost $7.5 billion and be ready for service in 2036, including the new MSG arena.
Halmar International (a subsidiary of ASTM Group, the second largest toll road concessionaire by road-miles in the world), founded in 1962, is headquartered in Nanuet, in Rockland County, N.Y., near New Jersey Transit’s Pascack Valley Line. Halmar is working on the Penn Station Access Project for MTA Metro-North Railroad, which will bring that railroad into Penn Station for the first time and add new stations in the Bronx, along the Hell Gate Bridge route. That route hosts Amtrak trains between Penn Station and New Rochelle, where the line joins the historic New Haven main to Boston, part of Amtrak’s Northeast Corridor (NEC). The route is also used by trains to Springfield, Mass., and the Vermonter. The project includes 19 miles of new track for Amtrak and Metro-North. Last September, Halmar was awarded a contract for Design/Build services for the planned Phase 2 of the Second Avenue Subway from its current terminal at 96thStreet to 125thStreet. At this writing, Halmar’s website did not mention the proposed Penn Station project, but Khalifeh reported in Gothamist: “Halmar International, which is currently expanding the Second Avenue subway into East Harlem, is behind the other public proposal. Its plan would keep MSG in place and renovate Penn Station without expanding service, while also renovating the exterior of the arena’s dome.”
“Tutor” is short for Tutor Perini, a major construction and engineering firm. “SOM” is Skidmore, Owings & Merrill, a Chicago-based architectural firm. “ARUP” is an engineering firm headquartered in London. Grimshaw Architects, also a London firm, worked on the Fulton Center at the Fulton Street subway station in Manhattan’s Financial District. Fengate is a Toronto-based private equity and real estate firm.
Reactions and QuestionsOn Jan. 22, Streetsblog NYC ran an article by Dave Colon that provided more information about the finalists. It bore the headline “Amtrak Quietly Fast-Tracking Trump Penn Station Transformation.” “Amtrak won’t say whether it will make public its criteria for picking a contractor for its [POTUS 47]-ified Penn Station revamp,” Colon wrote.“Will Penn Station riders get Mystery Box A, Mystery Box B or Mystery Box C? In an unpublicized, 25-word update posted to the Amtrak Vendor Portal on Tuesday, the federal railroad revealed the names of three companies that answered its call to express interest in building the mega-project—with no additional information.” Colon quoted Rachel Fauss, Senior Policy Advisor at Reinvent Albany: “Everyone should be able to see the RFP. Without it, I don’t know how the selection process will work, whether it’s competitive, or whether this has been pre-selected with one contractor in mind the whole time. The default is being public for these things. If the RFP isn’t public, it isn’t transparent.”
“Byford and Amtrak have framed the project as a type of public-private partnership known as a ‘Design, Build, Operate, Manage and Finance,’ an arrangement in which a developer designs and builds the project with its own funding, which it can then recoup through ‘user fees’ once the project is done,” Colon reported “That arrangement could leave commuter railroad riders on NJ Transit and the MTA paying a surcharge on their tickets, or simply pass the costs onto the three railroads that operate out of Penn Station: MTA Long Island Rail Road, New Jersey Transit and Amtrak.” Colon ended by quoting Fauss: “Those are the back doorways that New York will have to pay.”
Bryan Gottlieb raised technical concerns in an article in Engineering News Record (ENR) on Jan. 22, which bore the headline “Amtrak’s Penn Station Shortlist Puts Delivery Risk at Center Stage.” “Amtrak on Jan. 21 released a shortlist of three finalists for New York City’s Penn Station redevelopment, moving the project into a phase that will test if a fast-tracked public-private partnership can upgrade major infrastructure under an active rail hub while maintaining daily operations,” he wrote. “The list follows bid submissions from four teams last December under a design-build-finance-maintain procurement. Narrowing the field to three finalists moves the Penn Station rebuild from open solicitation to a detailed evaluation as the railroad prepares to select a master developer by May and announce an award by June.”
Gottlieb focused on technical and operational issues that are part of the project, and he quoted one advocate’s view: “‘There are some decided red flags around the Penn Station realignment,’ Sean Jeans-Gail, vice president of government affairs and policy at the Rail Passengers Association, told WNYC, reflecting broader concerns about project delivery and oversight as the procurement advances.”
Gottlieb also mentioned a list of unresolved issues: “Proposal documents, preliminary designs, cost ranges and phasing plans have not been released. Nor have officials disclosed how unforeseen conditions—common in work at the station—would be managed under the P3 contract or how construction and operational risks would be allocated between the public owner and private developer. Those details are expected after the master developer is selected. For now, the shortlist announcement is a mile marker indicating momentum from concept to delivery.”
Michael Oreskes concentrated on the transparency issue in a Jan. 24 Chelsea News report that bore the headline, “Penn Station Feud Brewing?” It began, “Some officials were surprised to see three company names on a ‘short list’ to redevelop Penn Station suddenly appear on an Amtrak website with no further explanation. Andy Byford, the man running the show for Amtrak, says he’s being as transparent as he can.” Oreskes reported on a call for transparency by Gov. Kathy Hochul, adding: “In a statement to Straus News, Byford said he was scrupulously following Amtrak procurement policy and had vigorously briefed elected leaders, including the governors’ office, as well as a large advisory group of advocates and stakeholders.” He quoted Byford: “From the very start of my involvement in this project, I have committed to a transparent and open process, albeit being ever mindful of the commercial sensitivities that exist in any competitive procurement. Consistent again with standard Amtrak procurement process, the RFP is not shared publicly to maintain commercial confidentiality. That said, when the evaluation is complete and when I make my recommendation to the Amtrak Board in May for a decision, I would expect to be able to share details about how the decision was reached.”
Whether the level of disclosure Byford offered is sufficient now seems to have become at least somewhat controversial, as Oreskes reported: “The selection process became a source of public debate after Amtrak, which owns the station, quietly posted the names of the three finalists for the master developer job on the railroad’s procurement website—and then offered no further comment about how they had been selected or what each of them is proposing.”
Oreskes said more about the process in a Jan. 22 report in the Chelsea News’s sibling publication, the West Side Spirit, headlined “Bidder Unveiled; Will New Penn Plans Push MSG?” “An obscure federal posting recently identified one of the unknown bidders for the job of developing a master plan for the much-delayed Penn Station overhaul, cutting the short list from four to three developers,” Oreskes wrote. “One of the developers is brand new to the competition and little is yet known of their plans. That is the Toronto based company Fengate, which specializes in investing union pension funds in infrastructure and other real property. The other two finalists are part of development groups that have been actively pursuing the Penn Station project for years. They are Halmar, the U.S. subsidiary of the Italian infrastructure firm ASTM, and Macquarie Group Limited, the Sidney-based investment company, which has teamed with the Grand Penn Community Alliance.” He added that neither Amtrak nor Byford disclosed any information beyond the names of the three finalists, the same response Amtrak gave me, although Amtrak said that the selection will be announced in June.
In addition, Oreskes identified the contestant who did not make the cut: “Eliminated was a fourth contender, the architect Richard Cameron, who has long campaigned for the revival of a classical station like the original Penn Station, built in 1910 and torn down in the 1960s as the Pennsylvania Railroad spiraled into insolvency. Allies said he lacked a development partner with convincing resources and experience. ‘We do applaud Richard Cameron in particular as he has championed a great above ground station modeled on the Charles McKim original for decades,’ said one of his supporters, Samuel Turvey of ReThinkNYC. ‘We very much believe Richard’s efforts have already informed and will continue to inform the Penn Station that is eventually built.’”
For years, ReThinkNYC has been proposing a rebuilt Penn Station that would closely resemble the original design. That organization’s current proposal includes wider platforms and improved vertical circulation, reconfiguring track use to improve traffic flow, and through-running. Among ReThinkNYC’s complaints about the current Penn Station: “Penn Station has notoriously narrow platforms, with limited stair and escalator access. This bottleneck creates severe and dangerous overcrowding on both the platforms and concourses.” Some of the organization’s concerns and ideas are in accord with those Byford expressed in his late-August news conference last year.”
ReThinkNYC had promoted Cameron and his plan, which would come close to replicating the original Penn Station as it had existed. In a release dated Jan. 22, Turvey, chair of the organization, expressed disappointment that Cameron’s firm had been eliminated: “Renaissance Rails, an effort spearheaded by Richard Cameron and Fred Knapp and which ReThinkNYC had supported, was not chosen to compete in the final round.”
Turvey lauded the goal of “getting shovels in the ground before the end of 2027” as part of the drive to get the project completed. He also called for using Rail Traffic Controller (RTC) software to develop capacity models to determine how much capacity is needed and, in turn, how much money must be spent, and for transparent disclosure of that data. “After all, our ability to truly modernize our transit capabilities at Penn Station cost effectively via through-running and the fate of the existing neighborhood hangs in the balance while I wait for RTC analysis, some of which I believe has already been performed,” he told me.
In his call for increased transparency, Turvey said: “As to Amtrak and NJ Transit, I must believe one or both railroads have done such calculations as the expansion to the south was in their purview. So, while I eagerly await the work being done by the FRA-sponsored independent review, I very much will keep pursuing the disclosure of work that has already been done by the railroad(s) and thus far withheld from the public. The public deserves to have the best information available with respect to capacity issues for Penn Station in real time. Any of the relevant railroads that are withholding this analysis from that public should release it with dispatch. We are also especially eager to find out how many trains per hour the various iterations of a Penn South Expansion can generate as the railroads have not provided any number—even from their less-probative capacity reviews—except to say they cannot get to the 48 trains per hour under the Hudson River, a number they state as a red line for everyone else except them apparently. Is it 38? 40? 42? The public once again deserves to know.”
Byford’s claims that he will promote through-running with trains operating on both sides of Penn Station and that he is not interested in building the additional tracks as the Penn South Station project envisions seem to be popular with advocates who do not see the need to spend so much money on additional infrastructure, when a project of smaller scope that is operated carefully and wisely can serve the trains and riders that need to be served, and at a considerable cost saving.
Whether Byford’s August pronouncement concerning the Penn South proposal will end the debate over capacity, or whether it will start up again remains to be seen. Turvey wants more transparency concerning the issue, and other advocates will be watching. If the capacity issue arises again, I will report on it. I also plan to report on the selection of the “master developer.” If I learn more about the three shortlisted firms or about how Amtrak is managing the selection, I plan to report about that, too.
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NS 2025: $7.7B in Industrial Development
While the U.S. Manufacturing PMI contracted through much of the year, “reflecting softer new orders and manufacturing employment,” NS said, factory output and industrial production showed “late-year stabilization—and pockets of strength in durable goods—as capacity utilization improved from prior months.”
Artist rendering of Eli Lilly’s synthetic medicine active pharmaceutical ingredient facility, to be built on a NS-served site in Alabama. (Courtesy of NS)NS in 2025 saw “strong” industrial development activity across such sectors as metals, paper, aggregates, and automotive-related projects. Leading projects included “support for Alabama’s emerging biotech sector [with Eli Lilly’s 1 million-square-foot Huntsville facility to open in 2032 near the HudsonAlpha Institute for Biotechnology] and a new automotive manufacturing facility in South Carolina,” according to NS, which currently has more than 500 U.S. manufacturing projects in the site-selection phase.
NS-partner The Anderson-DuBose Company breaks ground on a Tennessee distribution facility in 2025. (Courtesy of the Tennessee Department of Economic and Community Development)NSites, the railroad’s site-selection platform, features more than 800 rail-served properties and 340 transload facilities. Over the past year, more than 15 of its industrial development sites received the independent Readiness Evaluation for Development and Investment (REDI Sites) designation, which NS said reflects “rigorous assessments by members of the Site Selectors Guild.”
“Our customers’ $7.7 billion pipeline underscores rail’s foundational—and increasingly strategic—role in U.S. supply chains,” NS Executive Vice President and Chief Commercial Officer Ed Elkins said. “In 2026, we’re focusing on creating turnkey sites and achieving an ever-higher service standard so that customers benefit from a range of advantages that come with choosing a Norfolk Southern-served property.”
Added NS AVP Real Estate and Facility Services Cliff Garner: “[S]trategic sales, paired with targeted land acquisitions, [in 2025] reflect a deliberate ‘trade-up’ approach: leveraging non–core assets to secure opportunities that strengthen network capacity, attract rail-served industries, and position Norfolk Southern for sustained economic and industrial development.”
(Courtesy of UP)If the railroad’s proposed merger with Union Pacific is approved by the Surface Transportation Board, the combination forming the first U.S. transcontinental railroad would offer nearly 3,000 rail-served industrial development properties, with the ability to connect with more than 100 ports and 10 international gateways to Canada and Mexico, according to NS.
“Backed by $5.6 billion in combined 2025 capital investment and an additional $2.1 billion integration investment, the merger will align infrastructure where American industry is growing—supporting manufacturing clusters, high-density production corridors, and fast-emerging logistics hubs,” NS reported. “Enhanced service reliability, fewer handoffs, reduced car touches, and significant reductions in transit time—like saving up to 252 miles and 20–95 hours in key lanes—will ensure that U.S. shippers gain a competitive advantage in both domestic and global markets.”
Railway Age has named NS Executive Vice President and Chief Operating Officer John Orr 2026 Railroader of the Year. Orr will be presented with the award on March 10, following the Railway Age Next-Gen Freight Rail 2026 conference in Chicago.
Further Reading:- NS: ‘Reliable Service, Measurable Safety Gains’
- NS Issues 2025 Safety Report
- For UP, a ‘Record-Breaking Year’
- Sustainability as a Business Imperative, with Norfolk Southern Chief Sustainability Officer Josh Raglin – RAIL GROUP ON AIR PODCAST
- CPKC, NS Advance Locomotive Modernizations
- For NS, Four ‘Strategic Moves’
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STB Seeks More Details on Proposed Maverick County, Tex., Line
GER, a subsidiary of Puerto Verde Holdings (PVH), in 2023 filed a petition for exemption with the STB, which is now assessing the project.
According to GER, rail traffic moving across the border between the City of Eagle Pass and Piedras Negras, Coahuila, Mexico currently crosses the UP International Railroad Bridge, a single-tracked bridge connecting to a rail line owned and operated by UP and utilized by BNSF via trackage rights on the U.S. side and to a rail line owned by the Mexican federal government with rail operations concessioned to Ferrocarril Mexicano, S.A. de C.V. (Ferromex) on the Mexican side. “GER argues that in addition to security issues at the crossing, the existing infrastructure is not well-suited for an increase in use projected by the Texas Department of Transportation in its 2021 Texas-Mexico Border Transportation Master Plan (BTMP), as the single-tracked border crossing limits train speeds and freight capacity and prevents simultaneous two-way operations, thus negatively impacting the U.S. economy,” STB summarized in its Jan. 30 decision (download below). “GER explains that the Line is part of PVH’s Puerto Verde Global Trade Bridge project (Project), a proposal that seeks to ‘develop an economically viable solution to meet the needs for border infrastructure improvements that will increase safety and facilitate crucial binational trade between the United States and Mexico.’ (Id. at 1-2.) The Project would create a new trade corridor for freight traffic and commercial motor vehicles (CMV) extending from the City of Eagle Pass, Tex., across the U.S.-Mexico border and approximately 17.79 miles into the Mexican State of Coahuila. (Id.) In addition to the Line, other components of the Project corridor include a new GER line in Mexico connecting to Ferromex at the Ferromex Rio Escondido Yard, a new CMV roadway running parallel to the railroad tracks in the U.S. and Mexico, a new bridge crossing the Rio Grande River with two spans to carry the railroad tracks and CMV roadway, and customs inspections facilities, including a customs control tower between the Line and CMV roadway to allow for combined multimodal cargo inspection. (Id. at 1-2, 6.) GER states that it has discussed the Project with UP and BNSF and seeks to enter into agreements with the carriers to shift their cross-border traffic to the Line. (Id. at 7.) Regarding the discussions, GER notes that it ‘has been pleased with the reception its proposal has received from both railroads.’ (Id.) GER has also maintained that ‘[i]f GER is unable to attract all cross border rail traffic through the prospect of a more efficient and safer cross border trade corridor, then the stated purpose of an economically viable solution to the problems that exist at Eagle Pass/Piedras Negras border is not feasible, and GER would be unable to construct and/or operate the Proposed Line.’ (Env’t Comment EI 34039, GER Letter 5.) GER argues that its proposed line qualifies for an exemption under 49 U.S.C. § 10502 because an application for construction and operation authority under 49 U.S.C. § 10901 is not necessary to carry out the rail transportation policy (RTP) at 49 U.S.C. § 10101, requiring an application is not necessary to protect shippers from an abuse of market power, and the project is limited in scope. (Pet. 11-17.) GER asserts that an exemption would promote several provisions of the RTP. (Id. at 13-16.).”
52902DownloadUP on Aug. 25, 2025, filed comments with the STB opposing GER’s petition for exemption, arguing that the Board should deny it and require a full application if GER wants to proceed with its proposal. UP stated that it “has no intent to discontinue using its border crossing at Eagle Pass”; it also questioned the project’s financial and operational viability in the event both crossings are used, and disputed that the petition shows that the line serves the public interest or meets the criteria for an exemption under 49 U.S.C. § 10502. “UP argues that GER simply seeks to insert itself as an additional rail carrier in the middle of existing UP-Ferromex and BNSF-Ferromex cross-border routes, rather than creating a new, competitive, more efficient option for shippers,” the STB said in its decision. “According to UP, this proposal ‘would raise rail transportation costs and reduce service quality’ because every cross-border movement with GER would require three rail carriers rather than two, thereby weakening UP’s and BNSF’s ability to compete with Canadian Pacific Kansas City Limited’s cross-border operations in Laredo, Tex.”
For the STB to assess the proposed line under the exemption criteria at 49 U.S.C. § 10502, it reported needing more details. For example, it said “more information is needed to assess the impact of any potential decommissioning of the rail line in Mexico connecting Ferromex to the UP International Railroad Bridge at Eagle Pass, which can currently be used by shippers to interchange directly with either UP or BNSF, and whether any such decommissioning would result in GER’s proposed Line becoming a single rail carrier option (i.e., an added, intermediate carrier without a rail alternative) for traffic moving between the United States and Mexico at Eagle Pass, and to assess how the Project might be impacted in the event GER is unable to attract all traffic over its Line.” The STB has directed GER to file a supplemental brief addressing the following four issues:
- “1. Please discuss the effect on rail shippers if all rail traffic currently crossing the border at Eagle Pass shifts to GER and explain how GER would address any competitive or operational harms to shippers that may arise as a result. Please describe what impact this transaction, including the cost of the proposed line and the addition of an intermediate carrier, would have on shipping costs.
- “2. Please provide the Board with a description of the current physical track on the Mexican side of the border connecting Ferromex to the UP International Railroad Bridge at Eagle Pass and the proposed GER track on the Mexican side, including clarifying the extent to which this proposed segment would be double tracked. The Board encourages the submission of any relevant maps not already submitted to the agency. Please include any information you have regarding any planned rerouting of rail traffic and whether any existing track in Mexico would be removed or decommissioned following construction of the Line.
- “3. Please inform the Board about the status of any negotiations or discussions being had with UP and with BNSF, including regarding any operating plan or similar arrangement.
- “4. Please elaborate on your representation that ‘GER would be unable to construct and/or operate the proposed line’ if you are ‘unable to attract all cross border rail traffic.’ (Env’t Comment EI 34039, GER Letter 5.) Please explain how you plan to attract or secure all cross-border traffic and confirm whether you would start building the Line in the absence of commitments from UP and BNSF to shift their traffic to the Line postconstruction. If you would start building the Line in the absence of those commitments, explain why and what would be sufficient for you to start building.”
The STB also invited UP and BNSF to comment on items one through three, and directed them to clarify where their respective crew changes currently take place. “GER states that crew changes occur on the current UP bridge, (see Pet. 6), but UP notes that it expected to shift cross-border crew changes from the bridge to Clark’s Park Yard in 2025, (UP Comment 3, 14),” the STB said in its decision.
GER must serve a copy of the STB decision on BNSF by Feb. 3, 2026, and supplemental briefs addressing the issues STB outlined are due Feb. 13, 2026.
Further Reading:The post STB Seeks More Details on Proposed Maverick County, Tex., Line appeared first on Railway Age.
New York Tourist Railroad Eyes New Home
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Class I Briefs: UP, NS
“2025 was a strong year for UP. We delivered our best-ever full-year results across safety, service and operating performance, including personal injury, derailment rates, freight car velocity and terminal dwell, most of which led the industry. The team is consistently delivering at the highest levels, and I am confident that’s what we’ll continue to do,” UP’s Kenny Rocker wrote in a Jan. 29 online customer message.
As part of a UP status report, Rocker provided service metrics for the week ending Jan. 23, 2026:
- Freight Car Velocity – 241 miles per day
- Train Velocity – 21.5 miles per hour
- Terminal Dwell – 19.5 hours
“Despite significant weather over the weekend, the network remains in good shape. Aside from a few communities still without power, we expect service to return to normal by the end of the week. In those areas, we continue to use generators to power our signaling systems. Maintaining this level of performance through widespread winter conditions underscores the resilience of our team and the strength of our service product,” wrote Rocker.
STB Merger ApplicationOn Jan. 16, the STB ruled that UP’s application to merge with NS was “incomplete without prejudice.” A “without prejudice” ruling means that once complete the “STB can evaluate the merits of the case without the initial, incomplete determination affecting the outcome.”
The Board’s request, UP says, is “narrow and focused,” identifying the following three areas for clarification:
- “Full system impact analyses, including market share projections for the combined entity.
- “Entire merger agreement, including related instruments.
- “Additional detail on the related application involving the Terminal Railroad Association of St. Louis (TRRA).”
UP and NS are preparing the requested materials and will resubmit with the additional detail “to ensure a complete, accurate and transparent filing,” the Class I noted. “The merger process remains very much alive, and we will continue to keep you informed,” said UP.
NSNS has combined AI with hands-on railroad expertise to create a cutting-edge wheel integrity system “designed to catch defects before they become larger issues,” the Class I recently announced. The first system went live Nov. 24 at Burns Harbor, Ind., a strategic site near Chicago for freight transport. This location, the Class I says, “allows NS to inspect cars entering and leaving its network, providing safety benefits for NS and the industry as a whole.”
Wheel defects are among the most serious mechanical defects in the industry, NS noted. “The technology allows our railroaders to address maintenance needs promptly, enhancing safety, reducing service disruptions and protecting long-term asset performance.”
According to NS, the new wheel integrity system pinpointed a critical external vendor casting flaw on a wheel set. “Coupled with our relentless root cause investigation, the technology initiated an industry recall and the confirmation of seven confirmed defects across North America.”
The new standalone system was built upon the success of the existing Digital Train Inspection (DTI) portals, which have already identified and removed from service more than 50 wheels with issues since January 2025, according to the Class I. “With algorithms developed entirely by NS, the wheel integrity system is the first for the railroad industry. Unlike the NS DTI portals, which scan entire trains, the new system zeroes in on wheels, capturing ultra-high-resolution images from critical angles to identify cracks,” NS noted.
Six synchronized cameras capture about 55 high-resolution images per wheel at speeds up to 70 mph. The AI algorithms analyze images to detect subtle defects difficult for the human eye to identify consistently. Collaboration across multiple teams, with integration support from Georgia Tech Research Institute, brought the technology to life.
“This is a railroad-designed solution for a railroad problem. We’re the first to deploy a vision-based system that identifies cracks before they break, and we did it with our own technology and talent,” said NS Senior Director of Mechanical Operations and Support Brian Yeager.
NS says it plans to expand the wheel integrity system in 2026.
The system is now live near Chicago; more sites planned for 2026.The post Class I Briefs: UP, NS appeared first on Railway Age.
People News: Loram, Port of Los Angeles, TRACCS
Loram recently announced several executive leadership appointments, effective Jan. 1, 2026. These changes, the company says, “reflect Loram’s ongoing commitment to innovation, operational excellence, and global expansion.”
Luke Olson has been promoted to Chief Operating Officer. In this expanded role, he will continue to oversee Sales, Marketing, and Product for Loram’s North America, South America, and India business units. He will also assume leadership of the EMEA and APAC business units. This alignment, the company says, “strengthens Loram’s ability to deliver world-class value and service to customers globally.” Olson brings more than two decades of leadership experience at Loram, having joined the company in 2003. Throughout his tenure, he has held key roles in marketing, product development, and operations. He has been instrumental in driving global expansion and spearheading strategic product innovations. Most recently, he served as Senior Vice President, Contract Services, Americas and Global OEM, where he was instrumental in expanding Loram’s global presence as an industry leader in railway maintenance equipment and services.
Todd Klemmensen has been promoted to Chief Legal & Compliance Officer. He will play a critical role in “ensuring Loram meets the highest standards of integrity and excellence across diverse regulatory environments worldwide,” the company noted. Since joining Loram in 2022, Klemmensen has played a pivotal role in strengthening corporate governance and supporting Loram’s global growth strategy. He has more than two decades of legal and executive experience, including senior leadership roles a MTS, Aspen Technology and, Fredrikson & Byron, P.A., where he developed deep expertise in contract strategy, regulatory compliance, and corporate law.
Chad Rolstad will transition to Vice President, Environmental Health and Safety, Strategy, and Innovation. Adding innovation to Rolstad’s current responsibilities “reinforces Loram’s commitment to product, service, and process innovation,” the company noted. With a strong background in the transportation and rail sectors, Rolstad is committed to enhancing operational excellence through innovation. Prior to joining Loram, he held leadership positions spanning human resources, strategic sourcing, and operational management at CP and BNSF Railway. He brings a unique combination of finance, engineering, and executive insight to his current role, where he drives performance across environmental, health, strategy, and innovation domains.
Lee Tinney has been promoted to Managing Director, EMEA. Lee brings a wealth of experience and will focus on strengthening Loram’s relationships with customers, suppliers, and stakeholders throughout the UK and EMEA. In this role, Lee will also “support the strategic vision of reinforcing Loram’s position as a global leader in infrastructure maintenance, monitoring, and digital services.” With more than two decades of experience in the railway industry, Lee brings extensive expertise in delivering rail maintenance services across the UK, USA, Europe, and the Middle East. Since joining Loram EMEA in 2015, Lee has served as Operations Director, overseeing contract services, aftermarket support, and the integration of new technologies.
Port of Los AngelesMaritime and cruise industry veteran Christopher Chase has been named Director of Cargo Marketing at the Port of Los Angeles. In his new role, Chase is responsible for managing a team of professionals who promote America’s Port®— North America’s largest trade gateway for container volume, which generates Port revenue and thousands of jobs in the region. Chase replaces Eric Caris, who recently retired.
“The Port’s stakeholder relationships— from shipping and cruise lines to terminal operators, rail carriers, beneficial cargo owners and beyond—are critical to our success,” said Port Executive Director Gene Seroka. “Chris brings an exceptional depth of experience, strong qualifications, and well-established industry relationships that make him ideally suited for this position.”
Chase has taken on increasing responsibilities since he began as a Marketing Consultant in 2001. Prior to his promotion, Chase served as the Port’s Assistant Director of Cargo Marketing, where he focused on the container business, cruise industry, supply chain enhancements and optimization, and maintaining relationships with beneficial cargo owners and railroads.
During his tenure at the Port, Chase has been instrumental in promoting the Port and LA Waterfront as a source for cruise and recreation. Last year, the Port had a record 1.6 million passengers on 241 cruise calls, and continued growth is expected in the future.
Chase has also played a leading role in the Port’s technology pursuits. In 2017, Chase teamed up with GE Transportation, a Wabtec Company, to manage the Port’s participation in the Port Optimizer program, a first-of-its-kind information portal designed to digitize maritime shipping data for cargo owners and supply chain stakeholders through secure, channeled access.
Before joining the Port, Chase spent was as an account executive with Hanjin Shipping Company, where he managed import and export container business in the Asia/Europe sales territories.
Chase holds a bachelor’s degree in political science from Tufts University in Massachusetts.
TRACCSTRACCS on Jan. 29 announced the appointment of Karen Stintz as Special Advisor to Transit Rail Policy, “strengthening the Association’s leadership as it advances a National Framework on Transit Rail to help deliver projects on time, on budget, and with greater reliability for Canadian passengers”.
Karen Stintz is a respected Canadian leader whose career spans municipal politics, nonprofit executive leadership, and public communication. Over the past two decades, she has become one of Toronto’s most recognized and respected leaders, named one of Toronto Life Magazine’s 50 Most Influential People and one of Women of Influence Magazine’s Top 25 Women of Influence in Canada.
From 2003 to 2014, Stintz served as Toronto City Councilor for Ward 16 (Eglinton–Lawrence). As Chair of the Toronto Transit Commission (2010–2014), she led transformative reforms, including the introduction of new subway cars, Wi-Fi in stations, articulated buses, and cost-saving measures that reduced the TTC operating subsidy by 10%. She also advanced transparency through the TTC Customer Charter and restructured the TTC board to include citizen voices.
Her experience in public policy extends beyond transit to include the public and not-for-profit sectors. Stintz holds a BA from Western University, an MSc in Journalism from Boston University, and an MPA from Queen’s University.
“Karen brings rare, hands-on experience in transit governance and a deep understanding of how policy decisions translate into real-world outcomes,” said Mark Salsberg, Chair of TRACCS. “Her leadership will be invaluable as we work with governments and industry to move away from one-off approaches and toward consistent, proven standards that reduce risk and cost for taxpayers.”
TRACCS has been leading a campaign to establish a National Framework on Transit Rail, advocating for standardized procurement, training, supply chain improvements, and interoperable systems through the adoption of globally proven technologies that improve delivery certainty and passenger outcomes.
“We can answer the call to build transit rail on time and on budget if we come together around a National Framework,” said Stintz. “Jurisdictions that rely on consistent standards and proven processes deliver projects more efficiently. Canada has the talent to do the same, we just have to embrace the globally accepted approaches that work.”
“Canada needs a modern, coordinated approach to transit rail if we are serious about delivering projects efficiently and restoring public confidence,” said Paul Murphy, Vice-President and Co-founder of TRACCS. “Karen understands the operational realities, the political environment, and the importance of public trust. Her guidance will directly support our mandate to help governments get projects built faster, more predictably, and with better value for Canadians.”
The post People News: Loram, Port of Los Angeles, TRACCS appeared first on Railway Age.
CN: ‘Disciplined Execution, Relentless Focus’
“Our team delivered a strong fourth quarter and closed 2025 with disciplined execution and a relentless focus on capturing opportunities for our customers,” CN President and CEO Tracy Robinson said during a fourth-quarter and full-year 2025 financial report. “I thank our railroaders for their commitment to running the railroad safely and efficiently. In a challenging demand environment, their focus on service, cost control and productivity drove solid performance.”
Among CN’s quarterly financial highlights:
- Revenues of C$4.464 million, an increase of C$106 million, or 2%.
- Operating income of C$1.733 million, an increase of C$105 million, or 6%, and adjusted operating income of C$1.782 million, an increase of C$154 million, or 9%.
- Operating ratio of 61.2%, an improvement of 1.4-points, and adjusted operating ratio of 60.1%, an improvement of 2.5 points.
- Net income of C$1.248 million, an increase of C$102 million, or 9%, and adjusted net income of C$1.284 million, an increase of C$138 million, or 12%.
- Diluted EPS of C$2.03, an increase of 12% and adjusted diluted EPS of C$2.08, an increase of 14%.
- The Company repurchased close to 4.4 million shares in the fourth quarter for approximately C$600 million.
Among CN’s quarterly performance highlights:
- Gross ton miles (GTMs) increased 5% to 118,923 (millions).
- Revenue ton miles (RTMs) increased 4% to 61,707 (millions).
- Through dwell decreased 1% to 7.0 (entire railroad hours).
- Car velocity increased 2% to 215 (car miles per day).
- Through network train speed of 19.2 (mph) was in line with prior year.
- Fuel efficiency of 0.875 (US gallons of locomotive fuel consumed per 1,000 GTMs), was 1% more efficient.
- Train length increased 3% to 7,868 (feet).
- GTMs per average number of employees increased 8% to 4,957 (thousands).
- Operating expenses per GTM decreased 4% to 2.30 (cents).
Among CN’s full-year financial highlights:
- Revenues of C$17.304 million, an increase of C$258 million, or 2%.
- Operating income of C$6.587 million, an increase of C$340 million, or 5%, and adjusted operating income of C$6.636 million, an increase of C$311 million, or 5%.
- Operating ratio of 61.9%, an improvement of 1.5 points, and adjusted operating ratio of 61.7%, an improvement of 1.2 points.
- Net income of C$4.720 million, an increase of C$272 million, or 6%, and adjusted net income of C$4.756 million, an increase of C$250 million, or 6%.
- Diluted EPS of C$7.57, an increase of 8% and adjusted diluted EPS of C$7.63, an increase of 7%.
- Free cash flow of C$3.336 million, an increase of C$244 million, or 8%.
- Net cash provided by operating activities of C$7.049 million, an increase of C$350 million, or 5%, and net cash used in investing activities of C$3.713 million, an increase of C$106 million, or 3%.
- Adjusted EBITDA of C$8.734 million, an increase of 4%.
- Adjusted debt-to-adjusted EBITDA of 2.51 times as at and for the year ended December 31, 2025.
- Return on invested capital (ROIC) of 12.9% was in line with prior year, and adjusted ROIC of 13.0%, a decrease of 0.1-point.
- The Company repurchased approximately 15 million shares in the year for approximately C$2 billion.
Among CN’s full-year performance highlights:
- GTMs increased 1% to 463,002 (millions).
- RTMs increased 1% to 238,159 (millions).
- Through dwell increased 1% to 7.1 (entire railroad hours).
- Car velocity decreased 1% to 206 (car miles per day).
- Through network train speed decreased 1% to 18.8 (mph).
- Fuel efficiency of 0.873 (US gallons of locomotive fuel consumed per 1,000 GTMs), was in line with prior year.
- Train length increased 1% to 7,909 (feet).
- GTMs per average number of employees increased 4% to 18,893 (thousands).
- Operating expenses per GTM decreased 2% to 2.31 (cents).
CN says it assumes that volume growth in terms of RTMs will be “flattish.” The Class I expects that adjusted diluted EPS growth will “slightly exceed volume growth.”
In 2026, CN says it plans to invest approximately C$2.8 billion in its capital program, “net of amounts reimbursed by customers.” The Class I says it also “expects to continue improving its free cash flow conversion throughout 2026.”
“As we enter 2026, we expect continued macroeconomic uncertainty and elevated geopolitical risk. We are managing through this environment by focusing on what we can control: disciplined capital allocation, rigorous cost management and strengthening free cash flow. This approach positions CN to respond quickly as volumes shift and to deliver sustainable long-term value for shareholders,” said Robinson.
For more financial details, visit the CN Investors website.
The post CN: ‘Disciplined Execution, Relentless Focus’ appeared first on Railway Age.
Pinsly Celebrates GAR Rehab, Service Restoration
Jacksonville, Fla.-based Pinsly Railroad Company (Pinsly) on Jan. 29 held a ribbon-cutting ceremony in Andalusia, Ala., to commemorate the rehabilitation and return to service of the 36-mile short line now operated by Georgiana & Andalusia Railroad (GAR).
“Previously out of service, the line is now fully restored following more than $6 million in infrastructure rehabilitation investments by GAR,” said Pinsly (formerly known as Gulf & Atlantic Railways, LLC), whose portfolio also includes eight other small roads (Florida Gulf & Atlantic Railroad; Grenada Railroad, a Railway Age 2021 Short Line of the Year Honorable Mention; Camp Chase Railway; Chesapeake & Indiana Railroad; Vermilion Valley Railroad Company; North Florida Industrial Railroad; Pioneer Valley Railroad; and Hondo Railway). “The first railcars in over a year were successfully delivered to customers on Jan. 20, restoring regional rail service.”
GAR, formerly operated by Genesee & Wyoming’s Three Notch Railway LLC, connects to CSX at Georgiana, Ala., and spans to Andalusia, serving key customers Shaw Industries Group and Arclin. In October, Pinsly reported that GAR had assumed operations.
“This was a great opportunity to partner with Shaw, Arclin, CSX and the communities of Andalusia and Georgiana to bring customer-focused short line service back to the region,” Pinsly Chief Commercial Officer Cassie Dull said. “These investments reflect our belief in the region’s long-term growth and our commitment to delivering safe, reliable, customer-focused rail service.”
In other developments, Pinsly’s Chief Human Resources Officer Gaynor Ryan earned a 2025 Railway Age Women in Rail award and CEO Ryan Ratledge, who was selected by Railway Age readers as one of ten Most Influential Leaders for 2025, last year joined the Surface Transportation Board’s Railroad-Shipper Transportation Advisory Council.
(Courtesy of Pinsly)The post Pinsly Celebrates GAR Rehab, Service Restoration appeared first on Railway Age.
Egypt Advances Localisation of Railway Component Manufacturing Through Expanded Cooperation With Austrian Industry
Joint Statement of the United States and African Union on the Launch of a Strategic Investment Working Group
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