Prototype News

GPA in 2025 handled nearly 5.7 million TEUs (Twenty-Foot Equivalent Units) of cargo, up 2.6% or 146,000 TEUs from 2024. This was the second busiest year ever after 2022, when approximately 5.9 million TEUs crossed the CSX- and Norfolk Southern (NS)-served Port of Savannah docks, GPA reported late last month.

“Georgia Ports leads the industry in speed to rail and closed out the year with containers moving from vessel to train in only 22 hours, improving from 28 hours at the start of the year,” GPA said.

The Appalachian Regional Port in Chatsworth, Ga., a joint effort of the State of Georgia, Murray County, GPA, and CSX, delivered 45,700 containers in 2025, a record 19% increase from the year before.

In 2025, the Port of Savannah handled a record 545,214 containers by rail—the fifth straight year over half a million, GPA reported.

The Port of Savannah also handled 14,000-16,000 truck moves daily, Monday through Friday. In 2025, dual moves—in which a driver delivers an export and picks up an import—took an average of 50 minutes on terminal, GPA said; single moves averaged 32 minutes.

GPA said it served 1,669 container ships in 2025, moving an average of 1,878 containers on and off each vessel.

The Port of Savannah ended the year with December container volumes of 439,630 TEUs, down 0.6% or 2,510 TEUs compared with the prior-year period.

In Roll-on/Roll-off cargo, the Port of Brunswick handled 74,344 units of autos and heavy equipment in December, up 5,659 RoRo units or 8.2%, according to GPA. Heavy equipment accounted for 2,715 units of the total volume.

For calendar-year 2025, Brunswick handled 832,194 units of autos and heavy equipment, down 7.5% or approximately 68,200 units from the previous year. Heavy equipment accounted for 51,677 units of the total volume in 2025.

“The global trade in autos and heavy equipment faced several headwinds last year,” GPA said. “Manufacturers reduced production and shipment of some vehicles to the U.S., while evaluating global manufacturing location changes and target markets. During the summer, auto manufacturers paused shipments from factories temporarily closed in Mexico, Europe and Asia. Luxury vehicle exports to China decreased, in part because auto manufacturers faced stiff competition from domestic Chinese producers.”

GPA also highlighted the following projects currently under way:

• The $134 million Blue Ridge Connector. This new Inland Terminal in Gainesville, Ga., is now 95% complete and will open mid-2026. Direct rail service via NS between Northeast Georgia and Savannah will provide a new option to a long-haul truck move of around 600 miles roundtrip, “reducing highway congestion, cutting emissions and avoiding costly empty container moves to or from the coast.”

• A “self-financed,” $4.5 billion port and inland infrastructure plan. Five new container berths will be added in Savannah, the most new berths of any U.S. port, GPA said, and one new RoRo berth will be added in Brunswick.

“I would like to thank our customers, GPA team, gateway terminals, ILA and our trucking and rail partners that all play a central role in making the Savannah experience successful every day,” GPA President and CEO Griff Lynch said. “We are well positioned to help our customers navigate the challenging market conditions ahead.” 

Separately, the Port of Long Beach, Calif., set a cargo record in 2025 and expects 2026 to be “another busy year shaped by changes in trade policies, tariff normalization and shifts in manufacturing sourcing.” Also, South Carolina Ports’ Inland Port Dillon posted record rail moves in 2025.

• GPA: Blue Ridge Connector 95% Complete
• Appalachian Regional Port Logs Busiest November on Record (part of Intermodal Briefs)

Construction progresses on the $100 million, 272-acre Montgomery Intermodal Container Transfer Facility (ICTF), which is designed to reduce congestion at the Port of Mobile and provide an alternate shipping option for existing Port customers in central Alabama (see fact sheet, below). Leaders from APA, Montgomery Regional Chamber of Commerce, and CSX recently toured it, one year after groundbreaking. Site grading and subsurface utility installations are complete, and work is under way on a new three-mile-long CSX siding and a CSX main line bridge to support the facility’s rail operations, according to APA.

Slated to open in early 2027, this terminal will not only include the CSX siding, but also three operational process tracks, and two Kone rubber tire gantry (RTG) cranes to move containers from rail to trucks. Each RTG crane will span two process tracks, a truck lane, and a four-container-wide operational stacking area. The initial development includes 120 acres of operational yard, supporting an estimated annual throughput capacity of 60,000 lifts, according to APA. The project, it noted, is funded largely through federal appropriations.

More than $4 billion of private investments have been announced within five miles of the terminal since the project’s initial public announcement in 2022, APA reported. With access to two interstate highways plus warehouse space, the logistics hub is positioned for continued expansion, it noted.

“The Montgomery ICTF is a critical investment in Alabama’s supply chain infrastructure,” APA Director and CEO Doug Otto said. “Seeing the progress firsthand reinforces the importance of this facility in strengthening statewide freight mobility and supporting long-term economic growth.”

“The ICTF will enable seamless rail‑to‑truck connectivity and expand freight access to global markets through the Port of Mobile,” CSX reported via social media. “We’re proud to support a project that strengthens Alabama’s supply chain and fuels long-term economic growth.”

“We have already seen major investment in Montgomery and the River Region as a result of the Inland Port,” added Anna Buckalew, President and CEO of the Montgomery Regional Chamber. “Touring the ICTF as it prepares for full operations in 2027 gives us an even more vivid view of the opportunities on the horizon. We are grateful for the Alabama Port Authority’s leadership, CSX, and the state, federal, and local partners who leaned into this project with their full support every step of the way. More and more, you will see Montgomery and the Capital City Region connecting to assets around our state, to drive growth throughout Alabama and right here at home.”

• Alabama Port Authority, CSX to Launch Decatur Rail Facility

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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.

Next came the January smackdown—STB broadcasting its decisional independence in rejecting as incomplete (without prejudice to refiling) the some-7,000-page UP-NS application. Deficiencies include failure to reveal full details of break-up fee commitments; how a merged UP-NS, which will hold controlling financial interest of St. Louis-area rail switching facilities, will act with neutrality toward other railroads; and how applicants arrived at projected post-merger traffic growth. 

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.

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

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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.

GDC 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.

“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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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.”

Separately, 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.

• 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

Meanwhile, 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).

CSX 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.

• 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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“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 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.”

“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.”

“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.”

This 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.

• 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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