Railway Age magazine

Amtrak closed its Fiscal Year 2025 (FY25, Oct. 1 2024 – Sept. 30, 2025) on Sept. 30 with “record ridership and revenue—marking another year of growth and strong performance, “underscoring the growing demand for Amtrak across the United States,” and “achieved alongside improvements in the customer experience, reinforcing Amtrak’s commitment to quality service as the foundation for future growth.”

Amtrak noted it provided 34.5 million customer trips, “setting all-time records for both ridership and revenue for the second consecutive year” and “through deliberate planning and thoughtful execution, increased network capacity by 4.3% despite the challenges of an aging fleet, and customers responded with a strong demand for quality service, driving revenue that outpaced ridership.”

Amtrak listed its preliminary FY 2025 results:

• Ridership: 34.5 million customer trips, a 5.1% increase over FY24 and a record.
• Adjusted Ticket Revenue: $2.7 billion, a first in Amtrak’s history and 10.4% higher year-over-year.
• Total Operating Revenue: $3.9 billion, a 9.1% increase over FY24. This figure includes payments from state partners for State Supported routes.
• Customer On-time Performance: Northeast Regional trains reached their highest on-time performance in recent years this September.
• Customer Service:Surpassed systemwide customer service goals, with historical bests in Wi-Fi, food and beverage, train status communications, and station signage.
• Miles Traveled: Amtrak passengers logged 6.9 billion miles in FY25, a new all-time high.
• New Services, New Trains: “Made history” with the launch of Amtrak Mardi Gras Service along the Gulf Coast and NextGen Acela on the Northeast Corridor; Borealis service drew more than a quarter million riders in the Midwest since its FY24 debut.
• Capital Investments: Record $5.5 billion, up nearly 25% year-over-year, in major projects and state-of-good-repair initiatives. 
• Adjusted (Unaudited) Operating Earnings: Improved by 15.1% over FY24 to ($598.4 million), “on track to achieve train operational profitability by FY28.”

Throughout FY25, Amtrak said it “focused on running a great railroad, delivering reliable, high-quality service that earned customers’ trust. On-time performance closed the year on a high note with September showing the strongest gains thanks to a strong focus on operational performance, improved infrastructure reliability, and better scheduling. New car wash facilities in Seattle, Boston, New Orleans and Chicago boosted cleanliness, while faster terminal turn times and improved communications enhanced the travel experience. These efforts reflect Amtrak’s commitment to listening to customers and investing in solutions that matter. 

“Amtrak experienced unprecedented demand across its network, serving more riders than ever before. This surge was felt across all service lines: the convenience and frequency of the Northeast Corridor continued to drive financial performance, State Supported services such as the Pacific Surfliner, Amtrak Cascades, Borealis, and Empire Service achieved record gains, and Long-Distance routes saw increased capacity and strong ridership on iconic trains like the California Zephyr, Sunset Limited, and Coast Starlight. Amtrak Guest Rewards also surpassed 20 million enrolled members, who now represent over half of all riders. 

“To meet the rising demand for train travel, Amtrak expanded its network by introducing new service and expanding options across the country. Amtrak Mardi Gras Service launched between Mobile, Ala. and New Orleans, carrying over 18,000 riders in its first month and restoring Gulf Coast service for the first time in nearly 20 years. Borealis service between the Twin Cities and Chicago carried nearly a quarter million riders in its first full year – fueling a 227% year-over-year surge in corridor ridership since its FY24 launch.

“Fleet modernization accelerated with the launch of NextGen Acela, America’s newest high-speed train, which welcomed more than 60,000 riders in its first month of service. This milestone is part of a broader transformation that includes the shipment of the first Airo trainset from Siemens’ Sacramento facility for testing in Pueblo, Colo., the rollout of new Long-Distance locomotives, and interior upgrades across the Superliner fleet.

“Amtrak invested a record $5.5 billion in FY25 capital projects, a 24% increase over the previous year. This includes $1.1 billion for track, catenary, signal, and structural maintenance, plus progress on major bridge, tunnel and station projects like the Portal North Bridge, Connecticut River Bridge, East River Tunnel, and William H. Gray, III 30th Street Station in Philadelphia. Rail yard upgrades to support the new Airo fleet advanced in Seattle and along the East Coast. Station modernization and Americans with Disabilities Act (ADA) compliance efforts, which included more than $182 million invested in FY25 alone, continued nationwide, making rail travel more accessible to millions.

“Looking ahead, Amtrak will continue rolling out NextGen Acela, debut Airo trains, and continue delivering reliable and customer-focused service. Strong financial performance in FY25 keeps Amtrak’s passenger trains on track to achieve operational profitability by FY28.”

Amtrak went on to tout no fewer than 59 FY25 “accomplishments” in 13 categories:

“Driving Growth Through Service Expansion and Ridership”

1. Welcomed more than 60,000 riders aboard NextGen Acela trains in the first month of service.
2. Launched new Amtrak Mardi Gras Service between Mobile, Ala. and New Orleans, restoring Gulf Coast passenger rail after 20 years. Carried more than 18,000 passengers on the twice-daily round-tripservice during its first month. 

3. Introduced additional Pacific Surfliner frequencies, providing better connections on the busiest State Supported intercity passenger rail route in the nation.
4. Expanded Capitol Corridor service, offering more peak-period departures between Sacramento and Oakland, as well as Oakland and San Jose.
5. Surpassed expectations in the Borealis’ first full year of service, carrying over 213,000 riders. 
6. Celebrated a historic milestone on the Downeaster, surpassing 10 million riders since its inaugural trip in 2001.
7. Broke ground on the New River Valley Rail Project in Christiansburg, Va., which will extend Amtrak Virginia service from Roanoke and restore passenger rail to the region for the first time since 1979.
8. Expanded Winter Park Express service to five days a week to meet the rising demand for travel between Denver and Fraser, Colo.

“Modernizing the Fleet & Launching New Trains”

1. Welcomed guests aboard America’s high-speed NextGen Acela trains, now operating on the Northeast Corridor.
2. Shipped the first Airo trainset from the Siemens Sacramento facility to begin testing in Pueblo, Colo.
3. Achieved 87% completion for the Superliner Refresh Program, enhancing comfort and amenities for Long Distance customers.
4. Continued deployment of new, faster ALC-42 diesel locomotives for Long Distance trains.

“Elevating the Customer Experience”

1. Surpassed systemwide customer service goals across Northeast Regional, State Supported, and Long-Distance services, with historical bests in Wi-Fi, food and beverage, train status communications, and station signage.
2. Launched Cart Service and Grab & Go options on NextGen Acela, expanding onboard food and beverage offerings for customers.
3. Introduced new upgrades to the Acela First Class experience, including refreshed plates and service ware as well as a rotating selection of signature dishes.
4. Launched a new seasonal menu in collaboration with STARR Restaurant Group – led by James Beard Award-winning restaurateur Stephen Starr – exclusively available in Acela First Class.
5. Expanded access to the Metropolitan Lounge network with a new Single Visit Pass, available for Coach Class guests at all locations.
6. Introduced major updates to the Amtrak mobile app, enhancing value and ease for guests throughout their journeys.
7. Improved customer engagement through implementation and integration of enhanced customer notifications and automated alerts.
8. Implemented Wi-Fi enhancements as part of the NextGen Acela rollout, elevating connectivity performance for passengers.

“Strengthening Service Reliability”

1. Delivered a successful summer of service for Amtrak and NJ Transit customers following $40 million in infrastructure upgrades between Trenton, N.J. and New York Penn Station – including the replacement of nearly 2,000 hardware components. Amtrak replaced catenary wires and upgraded electrical systems at Dock Bridge to enhance summer reliability. 
2. Supported the Department of Justice in a landmark federal case against Norfolk Southern Railway to enforce Amtrak’s rights to “preference” over freight traffic. Resulted in a favorable settlement and compliance agreement to ensure improved network performance.

“Accelerating Brand Innovation”

1. Debuted the new brand campaign ‘Retrain Travel’,encouraging consumers to rethink how they travel and avoid the stress of flying and driving.
2. Launched the first-ever line of Trak Suits alongside the NextGen Acela, with the release timed to coincide with New York Fashion Week.
3. Reached a historic milestone, welcoming the 20 millionth enrolled member to Amtrak Guest Rewards. This achievement came as Amtrak Guest Rewards members make up over half of Amtrak’s ridership.
4. Teamed up with Crayola to create fun-filled experiences to inspire creativity and exploration, featuring special offers and vibrant locomotive designs.
5. Collaborated with DreamWorks Animation’s Gabby’s Dollhouse to inspire family-friendly travel and create joyful memories across Amtrak’s 500+ destinations.

“Powering Progress with Digital Technology”

1. Deployed a mobile maintenance application to improve efficiency and optimize performance for NextGen Acela equipment.
2. Deployed crew optimization tools to enhance staffing efficiency and maintain optimal onboard coverage.

“Advancing Infrastructure Projects”

1. Continued advancing Amtrak’s largest-ever capital improvement program with strong support from the Federal Railroad Administration. 
2. Aligned with stakeholders to improve project delivery and drive cost efficiency.
3. Convened with dozens of leading industry partners – representing over 100,000 American workers across all 50 states – to highlight hundreds of major rebuilding projects Amtrak and its partners are delivering nationwide.

“Restoring Bridges & Tunnels for the Future”

1. Advanced the Portal North Bridge Project, in partnership with NJ TRANSIT where the final arch has been installed. Work is advancing in preparation for the first train to operate over the new bridge in FY26.
2. Completed the first year of construction for the Connecticut River Bridge with key components fabricated at sites throughout the country, including Florida, Alabama, Pennsylvania, and others.
3. Launched the East River Tunnel Rehabilitation Project, with the first of two tubes nearing halfway completion. The first tunnel is scheduled to return to service in Summer 2026, after which work will begin on the second tube.
4. Made significant progress on the B&P Tunnel Replacement Program, including work to replace the first of five roadway bridges. 
5. Announced a revised plan alongside the U.S. Department of Transportation to complete the Dock Bridge Rehabilitation Project faster and more efficiently.
6. Advanced the Hudson Yards Concrete Casing Project past its halfway mark. 
7. Completed one of New York City’s largest continuous concrete pours, using 420 trucks and over 4,600 cubic yards of concrete.
8. Began value engineering analyses with the Federal Railroad Administration on the Sawtooth Bridges, Susquehanna River Bridge, and B&P Tunnel Replacement projects, identifying ways to improve efficiencies and reduce costs.

“Enhancing Reliability with New Maintenance Facilities”

1. Began construction for new maintenance facilities in Seattle, Boston, Philadelphia, and Washington, D.C. with investments supporting the rollout of new Airo trainsets on the Amtrak Cascades, Northeast Regional, and over a dozen additional routes. 
2. Awarded a design-build contract for Sunnyside Yard in New York City and advanced planning for a new facility in Rensselaer, NY.
3. Progressed planning to upgrade layover sites outside the Northeast Corridor, including Savannah, Ga.; Brunswick, Maine; Eugene, Ore.; Pittsburgh, Pa.; Newport News, Va.; and others.

“Transforming Stations for the Future”

1. Enhanced the customer experience at Washington Union Station in partnership with the USDOT, helping travelers move safely and smoothly. Improvements included signing over a dozen new retailers, boosting Amtrak Police presence, launching station refresh and cleanliness initiatives, and strengthening overall operations.
2. Advanced restoration and renovation at Philadelphia’s Gray 30th Street Station to enhance the experience for Amtrak, SEPTA, and NJ TRANSIT passengers. 
3. Commenced work with the U.S. Department of Transportation to transform New York Penn Station into an iconic, world-class facility.
4. Added a new track and platform at Washington Union Station – the completed project expanded capacity and improved operational flexibility for both Amtrak and Virginia Railway Express customers.
5. Celebrated 100 years of legacy and progress at Chicago Union Station with major transformation planned through the Chicago Hub Improvement Program.
6. Partnered with the Port Authority of New York and New Jersey, along with other partners, to begin construction on the Newark Liberty International Airport Station Access Project.

“Expanding Accessibility for All Passengers”

1. Brought 19 stations into ADA compliance, with 50 more targeted for completion in FY26. Advanced 145 station designs and 70 construction projects as part of Amtrak’s commitment to achieving full accessibility by 2029.
2. In partnership with the Federal Railroad Administration and in cooperation with the Town of Westport, NY, and the Canadian Pacific Kansas City Railway, completed accessibility improvements to the Westport Station, as part of a $3 million investment from Amtrak to upgrade the customer experience.
3. Continued advancing critical improvements at Latrobe and Greensburg stations – two historic train stations located in western Pennsylvania.
4. Continued upgrading the Lancaster Station in coordination with PennDOT, implementing key safety and efficiency enhancements to improve access and functionality.
5. Partnered with Be My Eyes to launch a pilot program, offering live visual support to blind and low-vision passengers.

“Delivering a Strong Safety Culture”

1. Delivered year-over-year improvements across all primary safety metrics.
2. Achieved a record year for voluntary reporting through the Amtrak Voluntary Safety Reporting System, with over 1,400 reports submitted – up 77% from the previous year.
3. Increased participation reflects broader visibility into safety issues and signals a maturing safety culture.

4. Partnered with Operation Lifesaver and hundreds of law enforcement agencies and first responders nationwide for Operation Clear Track during See Tracks? Think Train! Week.
5. Marked the first-ever ENS Sign Awareness Day – shining a spotlight on the lifesaving blue and white Emergency Notification System (ENS) signs located at every rail crossing.

“Bolstering Leadership, Talent & People”

1. Named Costin Corneanu Executive Vice President, Chief Financial Officer.
2. Completed transition of Byl Herrmann to Chief Legal and Human Resources Officer & Corporate Secretary.
3. Promoted Ken Altman to Vice President, Government Affairs and Corporate Communications.
4. Appointed Jennifer Mitchell as Executive Vice President of Strategy and Planning.
5. Honored as a 2025 Campus Forward Award Winner for the fourth consecutive year, recognizing excellence in early career hiring and internship programming.

“Amtrak’s operational success is not just about moving more people — it’s about moving them better,” said Amtrak President Roger Harris. “These results show what’s possible when we lead with purpose. By prioritizing reliability and the customer experience, we’re laying the foundation for the next generation of passenger rail in America.”

The post For Amtrak, ‘A Year of Records’ appeared first on Railway Age.

The late Henry G. Manne, a pioneer in melding the academic disciplines of economics and law through a lens favoring free markets and reduced government regulation, gained international acclaim through creation of the Law and Economics Center at Virginia’s George Mason University. Proving genius doesn’t necessarily skip generations, his son, Geoffrey, founded an International Center for Law and Economics in Portland, Ore., with a similar mission to train law professors and judges in economics, and tutor economists in the law.

When Kristian Stout, director of innovation policy at the Oregon center, produced a 16-page issue brief, “State of Competition in the U.S. Rail Sector,” earlier this month, expectations were elevated it would serve with distinction as the most recent report card on the subject. The product, after all, carries the imprimatur of a prestigious organization.

Unfortunately, the issue brief is so seriously flawed it should be recalled for revision lest opinion leaders and decision makers to whom it is shopped are given a false impression of the actual state of competition in the U.S. rail sector.

The study’s premise is not a problem. Stout argues that the rail regulatory framework—since the Supreme Court’s 2024 decision (Loper Bright Enterprises v. Raimondo) overturning a 1984 ruling (Chevron USA v. Natural Resources Defense Council)—requires updating. The Loper Bright decision upset a four-decade instruction to federal courts that they give deference to the interpretation that expert federal agencies such as the STB give their enabling statutes. Less expert judges now must perform this task (although both Manne centers are striving to improve their abilities).

In this post-Loper Bright era, says the issue brief, “the STB risks running afoul” of congressional instructions “if it continues to apply outdated legal interpretations and fails to acknowledge modern market forces.” If only the issue brief had stayed within those four corners of concern, such as whether the STB should consider product and geographic competition in determining market dominance, or whether the STB should exclude from economic regulation certain commodities or lines of business as part of its implementation of National Transportation Policy.

Stout then would have produced a most interesting and timely study of the intersection of railroad economics and the law. By wandering into areas with which he is not competent, he flubbed the dub, inviting impeachment of the entire issue brief. The most serious flaws are omission and factual error.

Ignored entirely is the impact on competition of scores of railroad mergers since the industry was partially deregulated in 1980 (Staggers Rail Act)—a law that encouraged the STB and its predecessor Interstate Commerce Commission to approve rail merger applications. Yet the 16-page paper mentions the word “merger” not once, even though the author was aware of a pending Union Pacific-Norfolk Southern merger to create the nation’s first U.S. Atlantic-Pacific transcontinental railroad—the largest rail merger transaction ever. Surely mergers and their impact on competition is a fitting subject for an issue brief discussing “the state of competition in the U.S. rail sector.”

By contrast, the Transportation Research Board, in a 2015 congressionally funded study (“Modernizing Freight Rail Regulation”) devoted 10 pages to rail mergers, finding they contributed significantly to the industry’s shedding of uneconomic capacity, creating substantial cost savings—the efficiency gains shared with shippers through (for a time) lower rates and enhanced service.

The issue brief would have been more credible had it acknowledged the tension between TRB’s findings and captive shipper assertions that rail mergers reduced competition and led to substantial rate increases.

Nor does the issue brief discuss TRB’s recommendation that merger approval authority be shifted to the Justice Department’s Antitrust Division, with STB retaining oversight of merger implementation.

Also omitted is a discussion of trends in rail rates relative to costs, given the issue brief’s assumption of rail industry competitiveness amidst captive shipper assertions to the contrary.

More glaring is the issue brief’s errors of fact. It says the STB “too easily” finds railroad market dominance—a required first hurdle in filing a rate complaint—leading to a conclusion of STB bias in favor of shippers. That shippers have filed only two rail rate complaints in the past decade suggests the bias assertion lacks a factual foundation.

The issue brief also describes railroad revenue adequacy—earning enough to cover total operating costs, including depreciation and obsolescence, plus a competitive return on invested capital—as a floor, not a ceiling. Yet the law—the 1980 Staggers Rail Act and the 1995 ICC Termination Act—instruct rail regulators “to maintain reasonable rates where there is an absence of effective competition and where rail rates provide revenue which exceeds the amount necessary to maintain the rail system and to attract capital.” The 1980 law ordered regulators to give “regard to preventing a carrier with adequate revenues from realizing excessive profits on the traffic involved.”

Straying further into areas with which he is not familiar—his academic and professional background is formidable, commendable and inspiring, but in areas other than railroad economics, regulation and law—Stout says STB attention to carrier revenue adequacy “discourages railroads from pursuing efficiency gains or productivity improvements.”

Yet neither the ICC nor its successor STB has ever capped a rail rate based on a finding of revenue adequacy, even though the STB has found most railroads revenue adequate, Wall Street analysts consider the industry revenue adequate since at least 2010 and no railroad has ever told shareholders it is revenue inadequate.

Notably—even though such a rate cap has never been imposed—the agency’s 1985 Coal Rate Guidelines require one be imposed, with limited exceptions, upon a railroad’s becoming revenue adequate. “Our concept is simply that a railroad not use [demand-based] differential pricing to consistently earn, over time, a return on investment above the cost of capital,” the ICC said in 1985.

If revenue adequacy determinations are, as the issue brief suggests, a sword of Damocles hanging above railroads, they have not discouraged—contrary to Stout’s assumption—pursuit by railroads of efficiency and productivity improvements.

The industry largely self-financed its $15 billion investment in Positive Train Control; it implemented Precision Scheduled Railroading; and it invests substantial sums in research, development and testing of new technology at AAR-owned MxV Rail and ENSCO-operated, USDOT-owned Transportation Technology Center in Colorado. Each of these investments has delivered substantial efficiency and productivity improvements. Nor has a lurking revenue adequacy cap on rail rates discouraged UP’s proposed marriage with NS.

An inconvenient fact for those advocating eradication of economic regulation is that privately owned railroads exist and prosper because the law grants them privileges such as that of eminent domain; preemption from intrusive state, local and even some federal regulation; and significant immunity from antitrust statutes.

With those privileges come regulatory requirements to ensure the privileges do not enable market power abuse. The STB must follow the law, and much of Stout’s arguments bypass that requirement—looking at what he believes should be, rather than what is.

Railway Age Capitol Hill Contributing Editor Frank N. Wilner is a former Assistant Vice President, Policy, at the Association of American Railroads and a White House appointed chief of staff at the Surface Transportation Board. Among his eight books is “Railroads & Economic Regulation (An Insider’s Account,” available from Simmons-Boardman Books, 800-228-9670.

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Raising C$2.25 billion, the IPO in 1995 was the biggest in Canadian history.

Paul Tellier, who was appointed CN President and CEO in 1992, led the railroad through downsizing and financial restructuring, paving the way to privatization. He earned Railway Age’s Railroader of the Year Award in 1997.

(Courtesy of CN)

“Founded in 1919, CN was the largest and oldest Crown Corporation in Canada,” CN reported Nov. 17. “The privatization helped propel CN’s transformation into the transportation leader and trade-enabler it is today, powering the economy and North American supply chains from coast to coast to coast.” With a nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.

To mark the privatization anniversary, CN Board Chair Shauneen Bruder, President and CEO Tracy Robinson (Railway Age’s 2024 Railroader of the Year), and senior executives like EVP and Chief Commercial Officer Janet Drysdale rang the Opening Bell at the Toronto Stock Exchange and the Closing Bell at the New York Stock Exchange on Nov. 17.

(Courtesy of CN)

“This day 30 years ago, marked a milestone in CN’s transformation into the industry leader we are today,” Tracy Robinson said. “Everyone who contributed to this success can look back with immense pride knowing that that same spirit is what continues to drive us today. The strength of CN lies in our ability to power the economy.”

“I remember the sense of excitement and determination that filled the company when we went public,” noted Cristina Circelli, Vice President Corporate Secretary and General Counsel at CN. “We knew it was a defining moment that would test us in new ways. Looking back now, it’s amazing to see how that moment of change became the catalyst for three decades of growth, innovation, and pride in what CN has become.”

“Times fly,” wrote Jean-Jacques “JJ” Ruest, who retired from CN leadership in 2022, in response to a CN social media post marking the anniversary. “It was quite the ride. Bold, transformative, energizing, striving on chaos at times. The ‘Pig that could not fly’ they said of CN when we joined at the privatization time. Pushing the line of the limits, because the limits where [sic] not physicals, they where [sic] self imposed. We did not know how far we could go, unless you pushed further. Be relentless.” Ruest was named Railway Age’s Railroader of the Year in 2019.

“I remember the excitement around the IPO day and everyone getting a chance to own a piece of the company,” CN reported Russ Perdue as saying; Perdue, who recently retired as Assistant Vice President, Domestic Intermodal, served in 1995 as System Officer, Freight Claims and Damage Prevention, in Mississauga, Ontario. “No one could have imagined what we would become. I had so many memorable moments, met so many wonderful people, and traveled the world for CN. I started out in the Car Department; I could have never dreamt the path or opportunities that CN afforded me. What hasn’t changed is our passion for winning, being the best, and doing the right thing for our customers.”

Further Reading:

• National Railroad Hall of Fame Spotlights Tellier, Receives Grant
• David McLean, 1938-2025
• CN IPO: 25 Years, C$100B Market Cap—and Six Locomotives
• CN 3Q2013: Capital-intensive, customer-driven

The post CN Marks 30th Anniversary of its Privatization appeared first on Railway Age.

CN

CN recently reported that Taschereau Yard became its final Greater Montreal Area (GMA) terminal to reach one year “injury free.” In September, Taschereau joined the other three—Rivières-des-Prairies, Coteau, and St. Lambert—which each celebrated the milestone earlier this year.

GMA teams each morning review the previous day’s successes and challenges, sharing lessons learned during safety briefings, according to the Canadian Class I railroad, which noted that monthly safety challenges also keep teams “engaged and motivated, encouraging friendly competition while reinforcing safe work habits across terminals.”

According to CN, a dedicated Health and Safety Committee provides monthly themes addressing potential issues. For example, if slips and falls are a concern, prevention efforts ramp up to ensure the topic is well covered in upcoming months, the railroad reported.

(CN Photograph)

“Regular safety summits, attended by both union-represented and management employees, break down barriers and encourage frank conversation,” CN said. “Employees share stories about near-misses so others can learn. Support from the training team in the field provides insight and another layer of collaboration.”

“Safety leadership is something we all share,” GMA General Superintendent François Boucher said. “There’s a real willingness to talk openly about safety at all levels, stay focused, and be transparent about issues. Everyone is invested in working safely together.”

“I’ve been part of many safety programs, and the GMA seems to have tapped into what works,” said Conductor Nelson Beveridge (pictured above, right), who has 52 years of service. “We keep safety at the forefront, follow rules to the letter, and look out for one another so we all go home safely.”

Separately, CN in October broke its all-time record for grain shipped in a single month.

CPKC (Screen Grab from CPKC Video)

G3 Canada Limited and Bartlett Grain Company LLC have earned Elevator of the Year awards for the 2024-2025 crop year from CPKC. The awards, granted annually to one Canadian and one U.S. facility, highlight top performance in safety and efficiency among grain industry partners, according to the railroad, which announced the honorees on Nov. 17.

The G3 Canada Limited elevator in Colonsay, Saskatchewan, and the Bartlett Grain Company elevator in Jacksonville, Ill., “demonstrated outstanding achievement in railcar loading processes and safety practices, contributing significantly to efficient grain movement across North America and setting positive examples within the agriculture business community,” CPKC reported. G3 Canada Limited has earned the Grain Elevator of the Year award multiple times, most recently for the 2021-2022 crop year (before Canadian Pacific merged in 2023 with Kansas City Southern to form CPKC); it is the first award for Bartlett Grain Company.  

“Receiving this award is a testament to the hard work and dedication shown by these grain facilities,” said Jonathan Wahba, Senior Vice President, Sales and Marketing, Intermodal, Automotive, and Bulk at CPKC. “Their commitment to safety and operational excellence is important to the entire supply chain and agricultural sector.”

“Winning CPKC Elevator of the Year for the fourth time in the past seven years is a powerful recognition of G3’s commitment to transforming grain movement in Canada,” G3 Canada Limited CEO Don Chapman said. “This award reflects the strength of our network, the dedication of our people, and our shared priority with CPKC to operate safely and reliably. We thank CPKC for this acknowledgement and their continued partnership in driving excellence across Canada’s grain supply chain.” 

(Screen Grab from CPKC Video)

“We are honored to have Jacksonville recognized as a CPKC Elevator of the Year,” Bartlett Grain Company President Joe Griffith said. “I’d like to thank our Jacksonville team and customers for their support and extend our sincere gratitude for the service and partnership with CPKC. Together, our teams have operated safely and efficiently to connect Jacksonville producers with robust end user customer markets.”

Cargill Elva (Canada) and Elbow Lake Co-op Grain (U.S.) received CPKC’s Grain Elevator of the Year awards for the 2023-2024 crop year. Elbow Lake Co-op Grain (U.S.) also won for the 2022-2023 crop year, along with Viterra Weyburn (Canada).

Further Reading:

• CN, CPKC: Ready for 2025-26 Grain Service

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

Derek Kissick has taken on the newly created role of Chief Commercial Officer at Guardian Rail (formerly Cathcart Rail), a provider of railcar repair, switching, storage, logistics and field services to North American freight railroads.

Kissick has 20 years of industry experience, including senior leadership roles at Caltrax, Cad Railway, Appalachian Railcar Services, and most recently Marmon Rail. He served previously as Chief Operating Officer for Guardian Rail from 2021 to 2024, playing a key role in the diligence and integration efforts for three acquisitions. Kissick will be based at Guardian Rail’s corporate headquarters in Columbus, Ohio.

“We are thrilled to welcome Derek back to Guardian Rail,” said Scott Driggers, who became CEO in October. “His deep understanding of our business and the perspective he brings from diverse leadership assignments in the industry make him the ideal leader to advance our commercial strategy. His return reflects our confidence in his proven leadership and our recognition of the value he brings from two decades of industry experience.”

“I am excited to return to Guardian Rail and join the team with its renewed focus on safety, quality and service,” Kissick said. “I look forward to supporting our commercial efforts and applying innovative ideas and best practices to help Guardian Rail deliver exceptional value for our customers.”

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The second segment of the Réseau express métropolitain (REM) officially opened to the public on Nov. 17. Delivered by La Caisse and its wholly owned subsidiary CDPQ Infra, the segment extends the automated urban rail system by 20.5 miles (33 kilometers) and adds 14 stations between downtown Montréal and Deux-Montagnes (see map below).

(Courtesy of REM) (Courtesy of REM)

The first segment connecting Brossard on Montreal’s South Shore with Montreal’s Central Station opened in 2023. Following seven years of construction, REM service now stretches nearly 31.1 miles (50 kilometers) and serves a total of 19 stations, according to CDPQ Infra, the project developer. It links the North and South shores to downtown Montréal, with stations on the West Island, and provides direct access to three of Montréal’s four metro lines, as well as the soon-to-be-available Mascouche exo line.

“For the first time, REM users will be able to cross Greater Montréal from Brossard to Deux-Montagnes,” CDPQ Infra reported. “This new route travels through Mount Royal and across three major waterways—the St. Lawrence River, Rivière des Prairies and Rivière des Mille-Îles—and marks a major transformation in public transportation in the metropolitan area.”

(Courtesy of Alstom)

When the segments to Anse-à-l’Orme and to Montréal-Trudeau International Airport open in spring 2026 and 2027, respectively, the system will have 26 stations, span 41.6 miles (67 kilometers), and accommodate up to 170,000 riders.

For the REM project, Alstom delivered a complete driverless light metro system, including 212 Metropolis metro cars (106 two-car trainsets), Urbalis GoA4 for driverless operation and communications-based train control, the Urbalis Vision control center system, platform screen doors, onboard Wi-Fi connectivity, and cybersecurity. The supplier has also provided equipment for two depots and two train washing facilities. Pulsar, an Alstom-AtkinsRéalis joint venture, is REM’s 30-year operator and maintainer. Maintenance teams use Alstom’s HealthHub digital platform, which is described as “a predictive maintenance tool that monitors the health of the train fleet and infrastructure in real time, leveraging AI to analyze all data captured across the rail system.” NouvLR is the project builder.

(Courtesy of Alstom)

The REM system is the result of a partnership between the government of Canada through the Canada Infrastructure Bank (CIB), La Caisse, CDPQ Infra, REM Inc., the government of Quebec, Aéroports de Montréal, and Hydro-Québec.

The government of Canada invested C$1.28 billion into the system and another C$400 million to directly connect the airport terminal. In July 2025, the CIB announced a C$1 billion loan to Aéroports de Montréal for a new building that will directly connect the airport terminal to the REM network.

Merci à tous ceux et celles qui sont venus découvrir la nouvelle antenne Deux-Montagnes du REM samedi et dimanche. Environ 250 000 déplacements ont été effectués durant le week-end inaugural (le chiffre précis sera connu cette semaine), ce qui témoigne de l’engouement suscité par… pic.twitter.com/Ff8tksU1JZ

— REM – Réseau express métropolitain (@REMgrandmtl) November 17, 2025

“We are very proud of the work accomplished by our talented employees, in collaboration with our partners, to commission this new branch of the REM,” Michael Keroullé, President and CEO of Alstom in the Americas, said on Nov. 14, during the Deux-Montagnes segment’s inauguration. “This new section, which offers a state-of-the-art, fully electric, automated, and high-frequency metro system, will transform the lives of thousands of residents of Montreal and its North Shore who travel daily, enabling them to do so efficiently, comfortably, and safely. More specifically, this extension will allow them to cross Mount Royal in less than three minutes—a first! With the REM, Alstom is showcasing its full range of urban technologies, highlighting both its local and global expertise in sustainable and smart mobility.”

L’ouverture de l’antenne Deux-Montagnes, c’est aujourd’hui! Bienvenue à tous les usagers et usagères qui découvrent leurs 14 nouvelles stations.

Les équipes du REM seront sur place toute la fin de semaine pour vous accueillir. Pour tous les détails du programme inaugural:… pic.twitter.com/mucOLzlJaZ

— REM – Réseau express métropolitain (@REMgrandmtl) November 15, 2025

“The REM project and its connection to Montréal-Trudeau International Airport mark a transformative investment in how people move in and around Montréal,” said Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons in Canada. “This transit link will ease congestion, strengthen our economy, and make travel smoother, faster, and more sustainable for everyone, from daily commuters to visitors from around the world.”

“The REM is a historic project carried out under exceptional circumstances,” commented Charles Emond, President and CEO of La Caisse. “Yet it was completed at a fraction of the cost and within very tight timelines compared to other transportation projects in North America. Building such a network in seven years, during a pandemic and despite major obstacles, is an extraordinary achievement. It is also a great example of the scope and diversity of projects that La Caisse undertakes in Québec, with a significant impact on the economy while enhancing Québecers’ retirement funds at the same time.”

“We are very excited about this historic moment for the project,” CDPQ Infra President and CEO Jean Marc-Arbaud said. “The addition of the Deux-Montagnes branch is a turning point for the REM, enabling tens of thousands of users to travel around Greater Montréal more quickly and easily. Completing a network that we can all be very proud of is now the focus of our energies.”

“We are proud of our investment in the REM, one of Canada’s most significant transit infrastructure projects,” added CIB CEO Ehren Cory. ”14 new stations along 33 kilometers of additional track will help move more Montrealers across the city, quickly and conveniently. This was the CIB’s first and largest investment and it shows the real impact of our work. It’s just one of over 100 CIB projects currently under construction and development across the country.”

(Courtesy of Alstom)

“The past few months have demonstrated our teams’ commitment to strengthening their capabilities to operate a large-scale network and the importance of moving forward step by step,” noted Loïc Cordelle, General Manager of Pulsar. “This approach will allow us to deliver a high-quality experience that meets the expectations of users who will start adopting the REM as of November.”

“This achievement demonstrates our global engineering capabilities and our ability to solve complex challenges in collaboration with our partners,” AtkinsRéalis President and CEO Ian L. Edwards said. “We continue this commitment by contributing to the operations and maintenance of the network, ensuring users enjoy a reliable, seamless, and sustainable transportation experience.”

“Powered by our renewable electricity, this project represents innovation in the service of a sustainable Québec and demonstrates everything we can accomplish when we embrace collective ambition,” added Claudine Bouchard, President and CEO of Hydro-Québec.

Technical teams will continue testing the Anse-à-l’Orme segment until spring, according to CDPQ Infra. This ongoing work will mean the service schedule between Côte-de-Liesse and Deux-Montagnes stations will be modulated, it said. In the morning, service will start at around 5:30 a.m. from Brossard and Deux-Montagnes; in the evening, the last departure toward Deux-Montagnes station from Brossard will be at 8:30 p.m. Service between Brossard and Côte-de-Liesse will continue until the last departure at 1 a.m. on weekdays. According to CDPQ Infra, shuttle buses will be provided by public transportation partners to ensure evening service is provided beyond the Côte-de-Liesse station.

Further Reading:

• First Look: REM Light Rail Vehicle for Montreal
• Montreal’s REM Airport Station Project Advancing
• Standoff Amputates REM Eastern Leg
• Trudeau backs Montreal REM LRT
• Montréal REM project expanding

The post Montreal REM Segment 2 Launches appeared first on Railway Age.

Advanced Power Dynamics Inc. (APD), a rail engineering company based in London, Ontario, has signed a C$296 million contract with Egyptian National Railways (ENR) to rehabilitate and upgrade 180 freight locomotives.

“This program will bring a significant fleet of legacy Henschel and AdTranz locomotives back into reliable freight service,” APD said. “It will anchor Canadian expertise in a long-term rail-modernization effort in Egypt, supporting localization of maintenance and spare-parts manufacturing in partnership with Egyptian industry, and create sustained engineering, project-management and supply chain activity from our base in London, Ontario.

The agreement was formally showcased at the TransMEA 2025 transport exhibition in Cairo, with representatives from Egypt’s Ministry of Transport and the Canadian Embassy in Egypt in attendance.

Egyptian National Railways Henschel AA22T diesel locomotive. Marc Ryckaert/Wikimedia Commons

The post APD Lands C$296MM Egyptian Locomotive Overhaul Contract appeared first on Railway Age.

SEPTA

SEPTA announced Nov. 14 that it has completed the point-by-point inspections of its Silverliner IV Regional Rail trains ahead of the deadline set by the FRA.

The FRA outlined 14 safety-related requirements in an Emergency Order issued on Oct. 1 in response to recent fires involving the Silverliner IV fleet.

SEPTA met almost all of the required actions by the FRA’s initial Oct. 31 deadline. The FRA granted SEPTA an extension to finish enhanced inspections of the 223 railcars and install new high-heat detectors.

SEPTA will meet the new deadline of Dec. 5 to install the thermal protection circuits on the Silverliner IV railcars. The circuits are a safety mechanism designed to interrupt the flow of electricity to an overheating device, providing an added layer of protection.

Now that the inspections are completed, SEPTA says, “Regional Rail reliability should gradually improve through the end of the year as more railcars are repaired and returned to service.”

SEPTA General Manager Scott A. Sauer spent the day thanking employees at the maintenance shops where crews have worked around the clock for weeks to conduct the complex inspections and address any needed repairs.

“I appreciate the hard work and dedication by our workforce to achieve this major milestone,” said Sauer. “I am confident that, through continued collaboration with the FRA, we can maintain safe Silverliner IV service for our customers.”

“We understand that the recent service disruptions on Regional Rail have wreaked havoc on the daily lives of our riders,” added Sauer. “We appreciate their patience as we work to mitigate the canceled trips, long delays, and crowded railcars.”

Meanwhile, SEPTA has signed an agreement with the Maryland Area Regional Commuter Rail (MARC) system to lease 10 rail coach cars, which will help provide some relief to customers in the coming weeks.

SEPTA will continue to share updates on the federally mandated safety actions.

Santa Clara VTA

The Santa Clara VTA recently announced more than $750,000 in grant funding to support projects that “improve access to public transit, strengthen community resilience, expand inclusive engagement, and celebrate community identity across Santa Clara County.”

These investments, going to 14 recipients in four different categories, “help cities and nonprofits advance equitable, transit-oriented communities (TOCs) that connect residents to opportunity while promoting cultural vibrancy and sustainability,” the agency noted. This is the second year VTA has awarded these grants to various organizations and cities in Santa Clara County. 

The award categories:

Program Area A: Transit Access and Circulation Planning ($350,000)

• The City of San José will develop multimodal access and circulation strategies for the Santa Teresa, Cottle, and Blossom Hill stations to improve connectivity and safety in South San José.
• The City of Santa Clara will conduct an Access Gap Analysis for four stations—Old Ironsides, Great America, Lick Mill, and Great America Capital Corridor/ACE—to identify improvements for pedestrians, cyclists, and riders.

Program Area B: Community Resilience – Total Funding: $200,000

Funding strengthens emerging community development corporations to support small business resiliency and housing preservation.

• Latino Business Foundation Silicon Valley (LBFSV) will launch “Building Belonging: Preserving Small Businesses and Housing Near Transit,” helping stabilize small businesses, promoting “Shop Local, Go Local” campaigns, and expanding tenant protections.
• SV@Home will conduct a “Transit Oriented Preservation and Anti-Displacement Zones (TOPAZ)” feasibility study on Enhanced Infrastructure Financing Districts (EIFDs) to sustain affordable housing near transit.
• Enterprise Foundation will establish a Neighborhood Small Business Center near the Mountain View Transit Center to provide bilingual advising, training, and technical assistance.

Program Area C: Education and Engagement – Total Funding: $100,000

Funding strengthens community advocacy for TOC policies and inclusive engagement.

• Santa Clara City Library Foundation and Friends will implement “Project LiFT – Literacy for Transit,” offering free ESL workshops and family literacy events centered on public transit.
• The Audacity Performing Arts Project will launch “Digital Storytelling for Transit Equity,” empowering Title 1 students to create documentaries and podcasts on transportation access.
• Silicon Valley Youth Climate Action will lead a Youth Peer Transit Education program to increase youth ridership and reduce car trips.
• Nueva Vida Community will expand “Puentes Comunitarios,” to ensure that Spanish-speaking and underserved residents are not only informed but also actively shaping the future of their neighborhoods.

Program Area D: Placemaking and Cultural Activation – Total Funding: $100,000

Funding supports projects that reflect community vibrancy through arts and culture near transit.

• Poppy Jasper, Inc. will present “Poppy Jasper on the Line: Film & Culture in Transit-Connected Downtown,” activating downtown Gilroy and Morgan Hill with free film screenings and artist-led panels near VTA stations.
• School of Arts and Culture at the Mexican Heritage Plaza will host “Eastside Signature Events,” celebrating local heritage around the future 28th Street/Little Portugal BART Station through festivals like Avenida De Altares, Fiesta Navideña, Fiesta Del Mariachi, and Chile, Mole, Pozole.
• Our City will beautify the Eastridge Transit Center through the “Utility Box Community Art Project.”
• Opera San José will expand its “Opera on First” initiative, transforming South First Street into a live opera hub, pairing performances with VTA access to connect arts and transit.

Together, VTA says these projects “demonstrate a shared regional commitment to building equitable, connected, and culturally vibrant transit-oriented communities across Santa Clara County.”

TriMet

TriMet is using what it has learned from the community and its Service Priorities Survey to help inform changes to its transit service, as the agency works to resolve a $300 million annual budget gap.

More than 4,800 people across the Portland metro area shared their thoughts in the survey, which was open from Sept. 24 through Oct. 31. Responses, TriMet says, “reflected the community’s desire to preserve core aspects of our transit service, so those who rely on it most will continue to have safe, reliable options to connect with jobs, education, shopping, services and other needs.”

A MAX Green Line train stops at the Rose Quarter station. (TriMet)

TriMet’s budget shortfall is the result of rising costs and inflation, less revenue from fares since the COVID-19 pandemic and the resulting rise in remote work, and funding uncertainty at the state and federal levels, the agency noted. “We announced in July plans to reduce spending to close the budget gap. We have started to make cuts internally, including reducing administrative expenses across our organization, but we must also bring our service in line with revenues,” TriMet said.

“Cutting service is a last resort and never what a transit agency wants to do, but by reducing spending now, we avoid more severe cuts down the road, which would affect many more riders. Also, by building a strong partnership with our community through engagement, we look forward to making these difficult decisions with their values and priorities at top of mind,” the agency added.

Survey respondents supported changes that improved operational efficiency, while preferring that TriMet preserve frequency and span of service. Comments showed strong empathy for riders who are transit dependent. 

The three options with the largest number of “do this first” responses were:

• Reduce or eliminate service where lines are close together.
• Shorten the MAX Green Line to run between Clackamas Town Center and Gateway. 
• Stop funding support to other transit agencies.

Participants, the agency says says, saw these as “common-sense measures” that would preserve TriMet’s core network of transit service. Some viewed them as less permanent, or options that could potentially be reversed in the future. Respondents preferred TriMet maintain frequency on high ridership routes and hours of service and preserve service to critical destinations such as medical care and colleges.  

The options that earned the largest number of “do this last” responses were:

• Reduce how often MAX trains arrive.
• Reduce how often buses arrive on Frequent Service lines.
• Reduce or eliminate some bus service after 8 p.m.
• Reduce or eliminate some bus service on weekends.

Respondents prioritized late-night and weekend services, as well as TriMet’s Frequent Service, where buses and trains arrive every 15 minutes or better for most of the day, every day. Their comments expressed concern for shift workers and families, as well as late-night road safety. The responses also showed concern that cutting those types of services would affect reliability and discourage ridership. 

TriMet says it is using the survey responses, along with ridership trends and other factors, to develop specific proposals for the service cuts. In January, the agency will share those proposals with the public and conduct another round of engagement. The feedback gathered will help TriMet finalize plans that will be presented to its Board of Directors for consideration in March and April 2026. The service changes will take effect later in 2026. TriMet will conduct additional outreach before making more cuts, likely in late 2027. TriMet says it aims to balance its budget by July 1, 2028.

More information is available here.

Metra

A Cook County jury has awarded Metra $19.3 million in a lawsuit against UP over “not walking through trains and collecting fares during the COVID-19 pandemic,” according to a Daily Herald report.

“We have said all along that our obligation is to protect our customers and taxpayers of the region, and on their behalf we are gratified by this verdict,” Metra Communications Director Michael Gillis said Thursday of the Wednesday verdict.

“While this is a disagreement between the parties, Metra and Union Pacific will continue to work together to provide service to our riders and the region.”

According to the Daily Herald report, UP indicated that it might appeal.

“Union Pacific took good faith steps to safeguard the health of our employees and the communities in which we operated during the pandemic. We are disappointed in the jury’s decision and are exploring our post-trial options,” officials said.

The verdict, the Daily Herald reports, “comes amid a prolonged and bitter dispute over how much Metra should pay to operate trains on UP’s tracks.”

“In 2019, UP announced that it no longer wished to operate commuter trains for Metra. Although the two railroads have essentially completed the transition, the finances are unresolved,” according to the report.

“Metra and its partners UP and BNSF suspended collecting fares during Illinois’ stay-at-home order in mid-March 2020. But in June when pandemic regulations were relaxed slightly, BNSF and Metra conductors resumed collecting fares and walking cars while UP held back,” according to the report.

The lawsuit cited the period between July 13, 2020, and May 31, 2021.

At the time, UP executive Benita Gibson said, “what we know about COVID-19 continues to change, and we have a responsibility to our employees and commuters to put their health and safety first.”

In the lawsuit, Metra stated numerous UP passengers had raised concerns about safety, “including complaints about the inability to locate trainmen to obtain assistance, the failure of trainmen to walk through the cars to encourage the wearing of protective masks, and the failure to open enough passenger cars to allow for social distancing,” according to the Daily Herald report.

NJ Transit

NJ Transit is continuing to advance an extension of the HBLR into Bergen County by issuing an RFP to hire a contractor to prepare the DEIS for the proposed 10-mile extension that would provide light rail service from the current terminus at Tonnelle Avenue in North Bergen up to a currently anticipated terminal at Englewood Hospital.

“NJ Transit remains committed to extending the Hudson-Bergen Light Rail into Bergen County,” said NJ Transit President and CEO Kris Kolluri. “This RFP is a concrete demonstration of that commitment. Providing mass transit options to all regions of New Jersey takes cars off the road, cleans the air we breathe and drives economic activity, sustainable housing and a multitude of other benefits.”

The Northern Branch project, as currently proposed, will extend the Hudson-Bergen Light Rail system by 10 miles and include seven new station stops in five municipalities. The electric light rail service would operate on West Side Avenue in North Bergen, and then on existing railroad right-of-way owned by CSX between 91st Street in North Bergen and the northern border of Englewood and would introduce new station stops in North Bergen, Ridgefield, Palisades Park, Leonia, and Englewood. 

In 2023, the Federal Transit Administration (FTA) rescinded its Notice of Intent (NOI) to consider NJ Transit’s previously submitted environmental impact statement “citing changes in environmental conditions such as flood plains, storm water management and air quality which have occurred since 2007.” NJ Transit determined that that scope of work required to update the environmental impact statement would require a new contract. At that time, work began to assess and prepare the requirements included in the current RFP.

BART

BART ridership continued its steady recovery in October, posting the highest weekday average since the pandemic began, the agency recently reported.

Ridership was 10.7% higher than October 2024, with an average of nearly 200,000 weekday riders. In total, passengers took more than 5.3 million trips during the month. On Saturday, October 18, BART recorded 150,000 trips—the highest Saturday ridership since the pandemic.

Usage of the new Tap and Ride payment system continues to grow. Nearly 10% of all trips in October used Tap and Ride, which allows riders to pay directly at the fare gates with a contactless bank card. Tap and Ride is now the second most-used payment method after Clipper Adult, with usage up 23% from September.

Special fare programs are also expanding. Clipper START, which offers a 50% fare discount to qualifying low-income riders, saw a 40% increase in usage over last October. Meanwhile, usage of Clipper BayPass, the all-in-one Bay Area transit pass, rose 13.4% in October alone and 138% compared to a year ago. 

BART says it has been investing in system improvements based on rider feedback, “prioritizing safety, cleanliness, and customer experience enhancements.” Earlier this year, BART completed installation of stronger, more secure fare gates at all 50 stations and became the first Tap and Ride agency—a system that will soon expand to other local transit agencies through the Next Generation Clipper program.

These enhancements, the agency says, are making a visible impact. Riders are noting cleaner trains and stations and an increased safety presence throughout the system.

Despite encouraging ridership gains, BART continues to face a $375 million budget deficit. To close that gap solely with fare revenue, current ridership would need to more than double, according to the agency. BART’s most recent budget forecast projects a 4% ridership increase in 2026.

BART says its gradual recovery is closely tied to work-from-home trends in the region. While more riders are returning to the system, they are generally taking fewer trips due to remote and hybrid work schedules, the agency noted.

More information is available here.

The post Transit Briefs: SEPTA, Santa Clara VTA, TriMet, Metra, NJ Transit, BART appeared first on Railway Age.

On March 31, 2020, Montana’s Kalispell Branch resembled many of the more-than 600 short line and regional railroads across the United States: a scrappy, customer-focused operation using second-hand locomotives to move a handful of cars each day. But the next morning, on April 1, the Mission Mountain Railroad’s old MP15 locomotive was parked, and a pair of orange and black BNSF locomotives was making the 13-mile run to Kalispell.

The news that BNSF had taken control of a branch line in Montana—a stretch of track that it had previously operated 15 years earlier—didn’t make many headlines in the industry press. However, it marked the beginning of a wave of short line acquisitions by major railroads; since 2020, Class I railroads have taken over more than 3,000 miles of track, nearly half of which was previously owned by the same railroad. Five years later, it raises the question: What did they gain from these deals, and are more on the horizon?

Coming Back in Big Sky Country Montana Rail Link’s twice-daily Gas Local passes through Arlee, Mont., on July 22, 2018. Montana Rail Link operated the former Northern Pacific across Montana from 1987 until 2024. Photo by Justin Franz.

For decades, BNSF and its predecessors depended on the wood products industry to keep two branches in northwest Montana profitable—one to Kalispell and another to Eureka. As the regional economy changed, so too did the math for keeping those two routes. In late 2004, it spun off the 16-mile Kalispell Branch and the 23-mile Eureka Branch to Watco, which subsequently formed the Mission Mountain Railroad. While the Eureka Branch was sold outright, the Kalispell Branch was leased to Watco.

Over the following decade, the fortunes of the short line generally mirrored the ups and downs of the timber industry. However, when the Kalispell Branch lease was up for renewal, BNSF chose not to extend it. That’s because in late 2019, a new rail-served industrial park opened on the south end of the branch, and suddenly, the math changed for the BNSF. The Glacier Rail Park was part of a multifaceted project that involved removing the last few miles of the branch that ran through downtown Kalispell and relocating the customers to a 44-acre park that offered ample room for expansion. The former right-of-way through town was converted into a pedestrian trail, and surrounding properties were redeveloped. Additionally, Kalispell and the nearby Flathead Valley had become one of Montana’s fastest-growing communities.

“We saw a lot of growth opportunities in the Flathead Valley,” said Luke Johnson, General Manager of BNSF’s Montana Division, in an interview with Railway Age. “And having so many customers in one place at the rail park made it a lot easier for us to serve our customers.”

Two BNSF locomotives lead the twice-daily Gas Local out of Missoula, Mont., on May 31, 2025. Predecessor Montana Rail Link stablished the Gas Local between Missoula and Thompson Falls to move fuel for ConocoPhillips. Photo by Justin Franz.

The Kalispell Branch wouldn’t be the last stretch of track BNSF took back in Big Sky Country. Two years later, BNSF announced it was reacquiring more than 900 miles of line in the southern part of the state, which had been operated by Montana Rail Link under a lease since 1987. When Burlington Northern was created in 1970, it had two main lines across Montana: the former Great Northern in the northern part of the state and the Northern Pacific through the southern part. While there was enough traffic to keep both routes busy, the southern line was more challenging to operate with helper districts on Bozeman and Mullan Passes, and it also had higher labor costs.

Some say BN later regretted letting go of the southern main line, especially as traffic continued to increase. Although MRL and BN (later BNSF) maintained a close partnership, officials in Fort Worth recognized it made more sense for the route to be under their direct control again. In 2022, BNSF purchased the remaining 60-year lease of MRL from industrialist Dennis Washington. On Jan. 1, 2024, Montana Rail Link became BNSF’s “MRL Subdivision.” Over the nearly two years since, Johnson and others at BNSF have focused on integrating the MRL operation into their own. “Montana Rail Link ran a really good operation, and so in some ways it has been easy to bring it into the fold,” Johnson said.

While BNSF and MRL often coordinated before the takeover, having both railroads under one umbrella has created new efficiencies, Johnson said. For example, the railroad around Billings and Laurel has long been a choke point, with four routes converging on the area managed by two different operators. But now, even minor tasks like fueling locomotives on through trains can be better coordinated, Johnson added.

Having two main lines across Montana has also aided BNSF in coordinating operations on a larger scale. While Johnson said the railroad has not implemented directional running between the two routes, they have managed to increase train lengths on both lines, with heavier eastbound trains using the former Northern Pacific/MRL and westbound trains traveling via the former Great Northern. This routing helps trains avoid the state’s steepest grades.

Perhaps the biggest change along the former MRL in recent years has been installation and ongoing activation of Positive Train Control. MRL voluntarily started installing the crash-prevention technology a few years ago. Johnson said BNSF has been completing that installation this year. The technology was activated on the First (Jones Jct. to Laurel) and Third Subdivisions (Helena to Missoula) in October, and it will be activated on the Second (Laurel to Helena) and Fourth Subs (Missoula to Sandpoint) before the year’s end.

Montana Rail Link and BNSF locomotives mingle in the yard at Helena, Mont., on Oct. 19, 2024. MRL leased BNSF’s main line across southern Montana from 1987 until 2024. One of the challenges of the route is the mountain grades near Livingston and Helena. Photo by Justin Franz.

While bringing MRL back into the fold has allowed BNSF to find more efficiencies within its operation, the biggest perk has been its people, Johnson said. While merging two different cultures comes with challenges, he said the MRL team has gone above and beyond to make the transition smooth. “The biggest surprise for me has been how the employees have been eager and willing to be a part of the BNSF team,” he said. “Change is hard, but everyone has persevered, and I think BNSF as a whole is better with MRL’s people.”

CPKC Returns to the East A trio of Central Maine & Quebec locomotives leads a freight train near Onawa, Me., on Nov. 21, 2017. The short line was created after Fortress Investment Group purchased the Montreal, Maine & Atlantic in 2014. CM&Q was sold to CPKC in 2020. Photo by Justin Franz

In 1995 and 1996, Canadian Pacific sold large portions of its network east of Montreal. Changing economics and traffic patterns reduced traffic on its routes, most notably its International of Maine Division, sometimes called the “Short Line” because it cut across the middle of Maine to reach the Maritimes. Over the next 25 years, CP’s lines in eastern Quebec, New Brunswick, Me. and Vermont were operated by a collection of short lines. The most infamous was the Montreal, Maine & Atlantic, best known as the railroad at the center of the Lac-Mégantic oil train disaster in 2013. MM&A went bankrupt soon after, and its track was sold to Fortress Investment Group, which created the Central Maine & Quebec. Fortress invested heavily in the railroad and helped rebuild traffic. However, the short line didn’t quite fit into its portfolio, so in 2019, the investment group put it up for sale. Re-enter Canadian Pacific.

CP (now CPKC) purchased Central Maine & Quebec for $130 million, and the sale closed Dec. 30, 2019, 25 years almost to the day CP left Maine and the Maritimes. In some ways, it was an abrupt turnaround for the company. But as analyst Tony Hatch notes, “CP was a much different company 30 years ago.” In the 1990s, CP began spinning off its non-railroad entities, and as part of that, it also aimed to streamline its rail system. However, by 2019, when CM&Q went up for sale, CP saw opportunities in the East again, particularly at the Port of Saint John. Since 2017, the port and its operator, DP World, have invested hundreds of millions of dollars in modernizing the facility, including deepening berths in the harbor to accommodate larger container ships and adding more cranes.

Canadian Pacific and Central Maine & Quebec locomotives are seen leading a train east of Jackman, Me., on Jan. 13, 2021. CP reacquired much of its main line across Maine in 2020, giving it closer access to the growing Port of Saint John, New Brunswick. Photo by Justin Franz.

Since acquiring most of its former eastern main line in 2020 (the section between Brownville Jct., Me., and Saint John is owned and operated by J.D. Irving’s NMB Railways, which collaborates with CPKC to serve the port), the Class I has invested more than $90 million to upgrade infrastructure, according to spokesperson Terry Cunha. It has also helped CPKC regain an advantage over its rival, CN which maintains an all-Canadian main line to the Maritimes that goes up and over the state of Maine.

“This purchase has provided CPKC and its customers with direct competitive access to Atlantic Canada and U.S. Northeast markets, offering a route that is shorter and less congested than competitors—approximately 200 miles shorter to key destinations—with direct connections to North American markets,” Cunha said in a statement to Railway Age.

Having a link to CPKC’s 20,000-mile trinational network has been a game changer for the Port of Saint John, said CEO Craig Bell Estabrooks. In 2021, the year after CPKC purchased CM&Q and launched direct intermodal service to Saint John, the port handled the equivalent of 86,000 20-foot containers (TEUs). This year, Estabrooks expects more than 250,000 containers, largely thanks to CPKC. He aims to surpass 400,000 containers annually by 2030.

One factor that has helped distinguish Saint John from other Maritime ports is its rail connectivity, said Estabrooks. Besides CPKC, the port has a direct link with CN and an indirect one with CSX through NBM Railways, thanks to that Class I’s 2022 acquisition of Pan Am Railways. (CSX has yet to establish intermodal service to Saint John, but Estabrooks says the port and the railroad stay in contact.) But among the three, CPKC has been the game changer.

“CPKC has really put their shoulder into this,” Estabrooks said. “They have changed our world dramatically.”

A Trend or Just Good Deals?

CM&Q and MRL aren’t the only short lines and regional railroads to have been absorbed by Class I railroads in recent years. In 2022, CSX bought Pan Am Railways; in 2024, CPKC and CSX acquired Meridian & Bigbee in Alabama (although, in that case, the short line still provides local service); and in 2025, CN finalized the purchase of Iowa Northern. The reasons vary for these transactions. In the instance of BNSF’s takeover of MRL, analyst Larry Gross opined that the deal corrected what was a “short-sighted and ill-advised spin-off” in the first place. In other instances, a short line becomes an attractive acquisition target because it has worked hard to increase traffic. That becomes an even easier transaction if the route is being leased. “Ironically, the better the short line performs, the less likely it is to be renewed,” Gross said.

Analyst Tony Hatch said many of the recent deals have been a matter of timing and opportunity. In the case of CPKC’s return to the Maritimes, not only was the company itself different, but so were the growth opportunities in Eastern Canada with the port expansion. For CN’s recent acquisition of Iowa Northern, it was a simple matter of the railroad being up for sale and fitting nicely into the Class I’s network. “Everyone is looking for growth, and if you can extend the length of your haul and the railroad happens to be for sale, then that is going to be an attractive deal,” Hatch said.

Whether there are more transactions like the ones seen during the past five years will depend entirely on what short lines and regionals come up for sale, Hatch said. Although with the industry focused on the proposed Union Pacific-Norfolk Southern merger, it’s possible the map will be temporarily frozen, he added.

While the transactions in Maine, Montana and Iowa have grabbed the headlines, Hatch said he believes smaller deals, like one in Oregon, are more likely in the years ahead. In 2025, Union Pacific made a deal with Genesee & Wyoming for subsidiary Central Oregon & Pacific to handle UP’s local switching and customers in and around Eugene. Hatch said that having short lines handle first- and last-mile service often makes more sense because those companies tend to be nimbler than a Class I and can offer service whenever a customer needs it.

“I think in the future we’ll see greater cooperation [between short lines and Class I’s],” Hatch said.

The post From Class I to Short Line and Back appeared first on Railway Age.

(Courtesy of BNSF)

In an online customer notification, BNSF reported offering “new, faster five-day-a-week schedules from Los Angeles to many CSX destinations, as well as new service lanes,” including:

(Courtesy of BNSF)

“These new schedules offer even more immediate value for our customers today by increasing speed, flexibility, and optionality while delivering integrated service for freight moving across the U.S.,” BNSF told its customers, which can view the schedules, along with all other BNSF intermodal schedules, using their login on the BNSF Customer Portal.

The announcement follows BNSF and CSX’s August partnership on direct domestic intermodal services between Southern California and Charlotte, N.C., and Jacksonville, Fla.; service between Phoenix, Ariz., and Atlanta, Ga., in an aim to convert over-the-road freight to rail; and direct international intermodal services between the Port of New York and New Jersey, and Norfolk, Va., and Kansas City (see map below).

(Courtesy of BNSF and CSX)

The Phoenix-to-Atlanta service had already begun, BNSF told customers Aug. 22; the other services started in September.

According to BNSF and CSX, two new 10,000-foot sidings were being added between Phoenix and Flagstaff, Ariz., “enabling more efficient meet/pass operations on the route connecting to BNSF’s Southern Transcon.”

“This collaboration between BNSF and CSX demonstrates the power of partnership, delivering greater flexibility, efficiency and value for our customers,” BNSF Group Vice President of Consumer Products Jon Gabriel said in August. “We are looking forward to these offerings providing immediate, streamlined service to the supply chain across key markets nationwide.”

Separately, Schneider National, Inc. earlier this month reported introducing Schneider Fast Track intermodal, described as “a premium solution designed for shippers with time-sensitive and high-service freight needs.” Fast Track followed the December 2024 introduction of an intermodal lane linking Mexico with the U.S. Southeast through Canadian Pacific Kansas City and CSX, both of which are Schneider’s primary Class I railroad partners, along with Union Pacific.

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Transit-oriented development (TOD) within a quarter mile of Dallas Area Rapid Transit’s (DART) light rail stations has generated $18.1 billion in direct economic impact to North Texas over the past 25 years, according to the University of North Texas (UNT) Economic Research Group, DART reported Nov. 14. This includes a $1.0 billion direct impact in the two years from 2022 to 2024 based on 37 development projects.

The findings are from the UNT Economic Research Group’s 25-year-long study, which was updated and recently released with data from 2022 to 2024 (download below).

economic-impact-near-dart-light-rail-stations_25-year-edition_september-2025_finalDownload

UNT began studying the economic and fiscal impacts of DART’s light rail stations in 1999 and has continued to compile data and release regular reports on the subject over the past 25 years. (The previous updated report, 2019-2021, was released in 2024.) From DART’s initial light rail starter system to the current 93-mile light rail network, the agency’s light rail stations have continuously attracted development resulting in an influx of commerce, tax revenue, and jobs to the Dallas-Fort Worth1 region, according to UNT.

(Courtesy of DART)

UNT’s study also found that TODs have boosted rent premiums by 10% for residential and 12.6% for commercial vs. units more than a half mile from a station, and have served as job creators, with 5,295 directly created jobs and more than $428 million in labor income in the last two years alone, according to DART.

Construction around DART stations in 2022-2024 generated $51.5 million in state and local tax revenue, the bulk of which ($25.4 million) was from sales tax related to construction of the projects, according to the report. Additionally, development around DART stations generated $21.1 million in property taxes, with $5.0 million in other state and local revenue from miscellaneous fees and fines. These numbers, DART pointed out, outpace the core pandemic years (2019-2021) when construction around DART stations generated $50.0 million ($1.4 million less) in state and local tax revenue. (See DART map below.)

l5c_121-5593-0725-silver-line-fy25—customer-information-signage—rail-map-rail-interior_digitalDownload

“The findings are not surprising because we know over the past 25 years of study that TOD around DART light rail stations results in commerce, tax revenue, and jobs,” said Michael Carroll, UNT’s University Economist and Director of the Economic Research Group, which is described as “an interdisciplinary research platform” with expertise in regional economics, policy, economic development strategies, the creative economy, and community development. “When we center sustainable transportation in development, the result is beneficial in nearly every way.”

“When we talk about the role DART plays in the local economy, we mean that in a very literal sense, beyond just moving people to and from their jobs,” added Nadine Lee, President and CEO of DART, which also operates Silver Line regional rail, Trinity Railway Express, bus routes, GoLink on-demand service, and paratransit, moving more than 220,000 riders daily across a 700-square-mile, 13-city region. “Every dollar generated by and within development around our light rail stations has the ability improve our cities, provide economic mobility and stability to our residents, and grow opportunity for North Texas.”

According to the transit agency, the following TOD projects are under way, converting DART-owned parking at rail stations into “walkable, vibrant places”: 

• Mockingbird Station, Dallas: This mixed-use development, which will include two multifamily communities, an office tower, a hotel, and a 500-space underground DART parking lot, will soon break ground on 11 acres of DART-owned land. A new public plaza and sidewalks will connect DART transit services to the new development and the surrounding community. The first phase is expected to be finished in 2027. 
• Buckner Station, Dallas: Palladium Buckner Station, a $107 million, 304-unit mixed-income apartment community, is under construction. Palladium Buckner Station residents will have direct access to DART light rail, bus, GoLink and paratransit services. Leasing is expected to begin in late 2026.   
• Trinity Mills Station, Carrollton: EVIVA Trinity Mills is a five-story, mixed-use development with a blend of residential and retail/restaurant spaces. “At completion, this $1 billion mixed-use development on 26 acres of City- and DART-owned land will include a public esplanade, office space, additional retail and residential space, and a planned hotel with direct access to DART transit,” DART reported.
• Addison Junction, Addison: This planned $240 million mixed-use development will be built on Town- and DART-owned land surrounding the Addison Silver Line station; construction will begin next year. Addison Junction, the result of a partnership between the Town of Addison, DART, and Quadrant Investment Partners, will include offices, a hotel, entertainment, restaurants, and enhanced outdoor amenities.  

Separately, in Plano, Tex., the City Council earlier this month approved a special election in May 2026 to let voters decide whether the city should withdraw from DART services. The vote followed a Council meeting where more than 100 people spoke in opposition, “emphasizing their reliance on DART for work and medical needs,” according to FOX 4 News. “If voters choose to leave, the city plans to implement alternative microtransit and paratransit options in early 2026, though the city would still owe DART debt obligations.”

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Kneecapping is “a form of malicious wounding, in which the victim is injured in the knee, often as torture,” according to Wikipedia. Nine Republican state attorneys general used this rather strong term in a letter to the Surface Transportation Board expressing their concerns about the proposed Union Pacific-Norfolk Southern merger.

Attorneys General Jonathan Skrmetti (Tennessee ), Kris Kobach (Kansas), James Uthmeier (Florida), Lynn Fitch (Mississippi), Brenna Bird (Iowa), Austin Knudsen (Montana), Drew Wrigley (North Dakota), Marty Jackley (South Dakota) and Dave Yost (Ohio) on Nov. 14 wrote to the STB asking the agency “to conduct a thorough review of the proposed merger and prioritize the need for a competitive and innovative freight rail system.” Following is the full text:

“We write to express our concerns that the proposed merger between Union Pacific and Norfolk Southern will result in undue market concentration that stifles competition and therefore creates higher prices, lower reliability, and less innovation at the expense of America’s manufacturers and, ultimately, America’s consumers. An America First economy will not work if high internal shipping costs kneecap American companies’ ability to compete with foreign manufacturers. The downstream impact of the merger poses significant risk not just for our industrial base but also our agricultural producers. Ultimately, then, this merger could compromise our national security.

“Given the stakes, we encourage the Surface Transportation Board to subject this proposed merger to a thorough and exacting review in accordance with the law and STB regulations. Only if these serious concerns are assuaged should the merger be allowed to proceed.

“Our states are home to a diverse and dynamic set of industries, including chemical manufacturing, energy production, and agriculture. These key strategic American industries rely heavily on freight rail to move essential goods safely, efficiently and affordably. Yet, as the railroads have consolidated, many shippers have seen rail service suffer while costs have increased dramatically. Further freight rail consolidation could make these problems worse. It is vital that the STB determine how this merger will affect all stakeholders, including farmers, workers, consumers, and manufacturers so that increased monopolistic power does not stifle innovation and productivity in industry, put inflationary pressure on household budgets, or otherwise throttle the economy as a whole with the costs of this merger.

“Under federal law, a merger can only be approved if it is ‘consistent with the public interest.’ STB regulations make clear that ‘mergers serve the public interest only when substantial and demonstrable gains in important public benefits—such as improved service and safety, enhanced competition, and greater economic efficiency—outweigh any anticompetitive effects, potential service disruptions, or other merger-related harms.’

“No approval should be granted unless the merger clearly enhances competition, improves service for rail customers, preserves accountability, and advances safety. A merger that fails to meet these standards would be inconsistent with [POTUS 47’s] Executive Orders aimed at promoting American prosperity. A merger against the public interest would undermine the President’s policies to unleash American energy, curb anti-competitive regulations, and prevent monopolistic behavior. We cannot afford a merger that stalls America’s economic momentum.

“We respectfully ask the STB to conduct a thorough review of the proposed merger and prioritize the need for a competitive and innovative freight rail system to help support domestic producers, strengthen supply chains, and ultimately reduce the cost of consumer goods in States across the country.”

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The B&O (Baltimore & Ohio) Railroad Museum has announced that Benjamin H. Griswold IV will be joined by Steve Angel, the recently hired CSX President and CEO, to co-chair its $38 million dollar capital campaign for restoration work ahead of American railroading’s bicentennial anniversary in 2027.

Angel took on the CSX leadership role in September, following Joe Hinrichs’ departure.

The B&O was the first steam-operated railroad in the United States to be chartered as a common carrier of freight and passengers. The museum was established in 1953. In 1987, CSX, the B&O’s successor, officially transferred all land and property for the museum to a non-profit that became the B&O Railroad Museum.

The B&O Railroad Museum is a historic site located on the original grounds of the B&O. Its campus extends 40 acres into southwest/west Baltimore, Md., and features the first mile of commercial track ever laid in the country; five historic buildings, including the 1851 Mt. Clare Station (designated a National Underground Railroad Network to Freedom Site); and the 1884 B&O Roundhouse.

As part of the capital campaign, the museum will restore its South Car Works building, which is said to be the oldest, continuously operating railroad repair facility in the United States if not the world (1869-1990). The 33,000-square-foot building’s transformation will include an Innovation Hall to exhibit the present and future of American railroading technology, as well as educational and historical archive space. Additionally, the building will serve as the new entrance to the museum. The museum said this will allow it to “reimagine its campus flow to face Southwest Baltimore to spark community economic development and to create the CSX Bicentennial Garden.”

CSX is donating $5 million to build the garden, which will include an amphitheater and multi-use space that can host local organizations and hold community gatherings. “This installation will serve as a vibrant event space and provide a fresh, new location to welcome visitors to the museum,” the railroad reported in 2023, when it became the first corporate patron to pledge support for the campaign, along with the state of Maryland, which included a $1 million grant in its FY2024 capital budget. 

Benjamin H. Griswold IV (Photograph Courtesy of B&O Railroad Museum)

Benjamin H. Griswold IV became Co-Chair of the museum’s capital campaign in March. He is the great-great-great-great grandson of Alexander Brown, who in 1800 founded Alex. Brown & Sons, the first investment bank in the United States. “It was also at Alex’s son’s house where Baltimore [Maryland] merchants convened [in 1827] to charter the first American common carrier railroad to compete against New York merchants who were investing in the canal system,” according to the museum. “The B&O Railroad was conceived with the goal to reach the Ohio River from Baltimore to transport goods west. The B&O Railroad reached the Ohio River in 1852 and ultimately expanded over 10,000 miles.”

Griswold is a former Director of the New York Stock Exchange, Stanley Black & Decker Inc., W.P. Carey Inc. and Flowers Foods (Lead Director). He is currently Chairman Emeritus of W.P. Carey Inc. and Trustee Emeritus of the Johns Hopkins University.

A groundbreaking ceremony for the museum project was held in May 2025, and the estimated completion date is October 2026. The museum is said to have so far raised $28 million for its campaign.

“CSX, as the proud successor to America’s first commercial railroad, is committed to honoring our heritage while advancing the future of rail,” Steve Angel said. “Co-chairing the B&O Museum’s 200th Anniversary Campus Transformation Campaign is an opportunity to help shape how that story is told—connecting past achievements with the innovation driving our industry forward. This effort isn’t just about celebration; it’s about creating an experience that will educate, inspire, and strengthen the connection between railroading and the communities it serves.”

“I’m thrilled to have Steve Angel join me as co-chair of the B&O Railroad Museum’s capital campaign,” Griswold said. “I look forward to working with him and am confident that together we will honor railroading’s legacy, celebrate its 200th anniversary, and prepare the museum and surrounding community for a bright future.”

“We’re extremely honored that Steve Angel, President and CEO of CSX, is joining the campaign as co-chair,” said Kris Hoellen, Executive Director of the B&O Railroad Museum. “Steve is a visionary and understands that the museum’s campus transformation is not just about celebrating our past, but also about leveraging our heritage to propel the Museum into its next 200 years. One could not ask for a stronger team at the helm than Steve and Ben!”

Further Reading:

• B&O Museum Kicks off 200th Anniversary of Railroading With Official Website
• RSI Signs on as B&O Museum Bicentennial Partner

The post Steve Angel to Co-Chair B&O Railroad Museum’s Capital Campaign appeared first on Railway Age.

The Brotherhood of Locomotive Engineering and Trainmen (BLET) on Nov. 11 ratified a new five-year agreement with the Western New York & Pennsylvania Railroad (WNYP), governing rates of pay, benefits, and work rules.

The agreement with WNYP, which extends across southwestern New York and northwestern Pennsylvania from Hornell, N.Y., to Meadville, Pa., and Oil City, Pa., and north and south of Olean, N.Y., runs through 2030 and provides for a guaranteed 40-hour work week, a signing bonus, and annual general wage increases throughout its duration, according to the union. The agreement also includes improvements to holiday pay, paid time off, and other provisions.

Members governed by this agreement belong to BLET Division 16, the union’s Short Line division. The negotiating team consisted of Grievance Chairman Frank Graves and National Vice President James Logan.

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I will attempt to clarify a rather “interesting” indirect exchange involving Union Pacific’s Jim Vena, who hopes to one day head the first East-West U.S. transcontinental Class I railroad, and BNSF’s Katie Farmer, who prefers that Uncle Pete doesn’t get to cross the Mississippi River and repaint Norfolk Southern’s black and white locomotives yellow. I don’t think Jim would consent to a new yellow and black combined scheme. It would look too much like a bumblebee, and he most certainly wouldn’t want snarky references to the merger being “bumbled” if things go south if the STB approves this ginormous transaction. Besides, bumblebees are docile (for bees) fuzzy little creatures interested only in flowers and procreation. That description does not fit UP, which the late Railway Age Senior Editor Gus Welty long-ago described as “an 800-pound gorilla in a stall shower.”

So, what’s all the latest buzz about (pun intended)? Let’s look at in three steps.

Step 1: BNSF Executive Vice President and Chief Marketing Officer Tom G. Williams fired off a Sept. 29 Customer Notification urging shippers to oppose UP+NS and “tell the STB to say no to unchecked market power and the loss of competitive options that you’ll never get back.” Williams’ letter provided customers a detailed “step-by-step” guide on a dedicated website, “Preserve Rail Competition,” on how the merger process works, and how to file comments with the STB and/or raise concerns “confidentially” with the U.S. Department of Justice, among other measures. As well, “if you would prefer not to file the letter yourself, we can file it for you,” BNSF said, proving an email link, MessageUs@BNSF.com.

Among BNSF’s red flags: “300 intermodal lanes [will be] eliminated if [the] merger is approved. After the [most recent] major round of mergers [in the late 1990s], 90 intermodal facilities closed, resulting in several hundred fewer intermodal lane options and communities permanently losing their intermodal access.”

Step 2: Jim Vena was asked about this at the Nov. 11 Baird 2025 Global Industrial Conference in Chicago. He refuted BNSF’s claims (this is from the transcript):

“Bottom line is they (Berkshire Hathaway) got $330 billion of cash available. If they wanted to buy something, they have it. It is up to them … they put out a two-pager, and I have got it sitting in my bathroom wall next to the sink with the toothpaste. It says we are going to shut down 300 lanes. I go, really? Why would we shut off 300 lanes? First of all, we do not have 300 lanes like in Intermodal. There [are] not that many lanes, like one that goes north out of LA, another one that goes to Chicago, another one that goes to Memphis, another one goes to Atlanta. Like, what the heck lanes do we have? I had to ask Kenny {Rocker], are you hiding 290 lanes from me that I do not understand? {BNSF] said we are going to shut down that many. I laugh. I find it interesting that Berkshire is coming after us that hard. In fact, why do I call them Berkshire? I will be honest so anybody can hear it. We are actually Union Pacific and we own a railroad. I am the CEO of Union Pacific Railroad (Yes, Jim we know. No need to make the obvious less obscure). What is humorous about it is some people at Burlington Northern Santa Fe were taken aback that I would call them Berkshire. Last time I looked, that is the publicly traded company, just like Union Pacific. I have to have some fun too.”  (Don’t we all?)

Vena also had some comments about CPKC, which is also opposed to the merger:

“Service agreements are good. You can see what happened with the service agreement that Norfolk Southern had with Canadian Pacific over the Meridian Speedway. Kansas City Southern … used to allow an 11,000-foot train to operate. All of a sudden, when Canadian Pacific took over, in the [past] few months, decided to cut back the train size that was always handled before the merger and even since the merger. At the end of the day, that is the problem. [CPKC] is saying to us, you are going to have to run two trains at Union Pacific. If we have to, we will run two trains. That is the way it is. The first question we asked [CPKC] was, why? What changed from five years of being able to run an 11,000-foot train from L.A. all the way into that market, and now you cannot? That is what you have to be careful with some of those deals. They break down…”

Step 3 (and here’s where it gets a bit confusing): BNSF on Nov. 12 issued a statement from Katie Farmer in response to Vena’s comments:

“At the Baird 55th Annual Conference Tuesday in Chicago, Union Pacific Corp. made comments indicating that [more than] 300 intermodal lanes will not be closed where there is an origin or destination currently on BNSF and Norfolk Southern or Union Pacific and CSX if the merger is approved. ‘I’m sure the nation’s rail customers are relieved that UP is committing to keep all current intermodal lanes open if their merger with NS is approved,’ said Katie Farmer, president and CEO, BNSF Railway. ‘UP highlighted in prior rail industry mergers that the new merged railroad usually raises rates on competing interchange partners to the point of making those lanes economically uncompetitive.”

Now, here the source of my initial confusion:

“Yesterday’s announcement is consistent with Union Pacific’s position during the last major merger between Canadian Pacific and Kansas City Southern where Union Pacific’s filings at the Surface Transportation Board made the following arguments opposing the merger of the two smallest Class I railroads: ‘If the Board does authorize the transaction, shippers should not have to rely on CPKC’s “good faith.” The Board should impose conditions to prevent the reduction of competitive options at gateways, particularly the Laredo Gateway. (UP Comments and Request for Conditions, Canadian Pacific Railway—Control—Kansas City Southern, FD Docket No. 36500, at 9.) In short, Applicants would face enormous post-merger pressure to divert traffic from existing KCSM interline service to CPKC single-line service using strategies that reduce shippers’ existing competitive options… CPKC would have the ability to implement such anticompetitive strategies by raising rates shippers must pay for interline service or degrading the quality of service shippers receive when using interline service. Id. at 26.’”

I thought, OK, what does the CPKC merger and UP’s comments to the STB a few years ago have to with UP acquiring NS? To me, people reading Katie’s statement could infer that BNSF may be changing or modifying its position on the UP+NS merger. Is there something I’m not getting here?

So, I pulled a Ricky Ricardo and said to BNSF, “You got some ’splainin to do!”

BNSF VP Corporate Relations Zak Anderson was more than happy to provide some context for my pointy little head. In a nutshell, Katie’s observations and reference to CPKC has to do with rates. Money. It’s that simple. The issue is not UP physically shutting down an intermodal lane. Rather, it’s UP ensuring the lane is “economically open.” Take the Laredo/Nuevo Laredo U.S. Mexico border Gateway, the busiest, for example. CPKC owns and operates it. UP has trackage rights. The rates one or the other charges can vary greatly.

So, according to BNSF, a UP intermodal lane can remain open. The question is, will there be too much of a price spread between what UP will charge (presumably lower) and what BNSF charges on a competing lane that will give an unfair competitive advantage to UP?

That’s what UP said about CPKC to the STB during that merger process (and you can download and read Canadian Pacific’s response at the time, below). BNSF is citing that as an example for UP+NS, though to be honest it wasn’t very clear.

Now it is. Right?

I’ll conclude with my two cents on use of the words “America” and “American” in UP’s language. Perhaps you’ve noted that in many instances I’ve substituted “United States” or “U.S.” in brackets. I’m married to an immigrant from Argentina, which is in South America. To me and my wife, “America” represents the entire Western Hemisphere—North America (Canada, U.S., Mexico), Central America (Panama, etc.) and South America (Argentina, Brazil, etc.). Union Pafic and Norfolk Southern would represent the first U.S. transcontinental, not the first American. Transcon. CPKC has always been correctly referred to as a North American transnational.

It’s up to Jim Vena and UP if he wishes to substitute “United States” for the patriotic “America,” in the name of accuracy. But the United States of America is a free country, and we can say what we want, right?

Within reason, of course.

FD36500_SUB6_Reply_to_UP_and_NS_re_MeridianDownload

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Houston, Tex.-based HyOrc Corporation has signed a Memorandum of Understanding with Cincinnati, Ohio-based Zeltech (Zero-Emission Locomotive Technologies LLC) to jointly develop alternative fuel-powered locomotives for freight rail use in the United States.

“The collaboration will focus initially on a California-based pilot project, where the partners plan to engage with the California Energy Commission (CEC) and other agencies for grant support,” HyOrc reported Nov. 10. “The program aims to demonstrate HyOrc’s patented external-combustion powertrain, a zero-emission, multi-fuel system that can operate on hydrogen, natural gas, or renewable fuels, offering freight operators a cost-effective path to decarbonization.”

HyOrc is described as a “clean energy company” that “develops and commercializes patented hydrogen-capable combustion and waste-to-fuel systems for the shipping, rail, and off-grid power sectors”; its core technologies are said to be green methanol production from municipal waste and engine systems for transport and power.

Zeltech offers a line of battery-electric switchers and industrial units, which are built on existing diesel-electric cores (trucks, frames, cabs, air compressor and brake systems) and use Lithium Iron Phosphate (LFP) chemistry lithium-ion batteries; included are 4-axle endcab switchers and road switchers (from 1,000 hp to 2,300 hp) and 6-axle road switchers (from 2,000 hp to 3,000 hp).

“This partnership marks HyOrc’s entry into the North American rail market,” HyOrc President Andrea Magalini said in the announcement. “Zeltech’s rail expertise and our proven powertrain technology create a strong foundation for clean, scalable freight transport.”

“Zeltech’s mission has always been to develop environmentally friendly zero-emission locomotives,” Zetech President and Owner Tom Mack told Railway Age on Nov. 14. “The use of the HyOrc engine technology will give railroads a zero-emission longer-range alternative to straight battery-electric locomotives without having to move to expensive fuel cell technology. The HyOrc engine’s support of multiple fuels, including hydrogen, renewable natural gas, LPG, and even alcohol fuels such as e-methanol, fits right in with Zeltech’s goal for producing the lowest maintenance, clean locomotives, using 100% renewable fuel options. We look forward to offering a range of locomotive models that will fit with North American railroad strategies and requirements, while offering the widest choice of fuels for hybrid locomotives for longer routes.”

The technology, he noted, could be scaled for switching or passenger rail operations.

The post HyOrc, Zeltech Eye U.S. Freight Rail Locomotive Market appeared first on Railway Age.

The Port Authority of New York and New Jersey (PANY/NJ) on Nov. 13 proposed a $45 billion 2026–2035 Capital Plan, which would provide $2.6 billion to PATH for service increases, including the return of daily operations on all four rapid transit lines; all new uptown tracks; and new fare gates and technology, including CCTV and artificial intelligence, to identify patterns of fare evasion and develop strategies to deter evasion and enforce fare payment.

The proposed plan also funds PANY/NJ’s $2.7 billion contribution to Gateway Program. (Courtesy of PANY/NJ)

The Capital Plan (download presentation below) also proposes a fare increase of $0.25 beginning in summer 2026 for the 117-year-old rail system, with additional $0.25 increases each January from 2027 through 2029.

Capital-Plan-Board-Presentation-Nov-2025Download

The fare hike, PANY/NJ said, will help to “sustain operations and fund major service increases,” since PATH’s operations are unique among major U.S. transit systems in that it receives no dedicated state or federal funds. Fares cover only about 25% of the actual cost of each ride and the Port Authority subsidizes the remaining 75%.

PATH Map (Courtesy of PATH)

The 2026-2035 Capital Plan is slated to fund a series of PATH service increases, in addition to seven-day-a-week operations on all four lines for the first time in 25 years:

• Increased weekend service to 33 St starting in 2026, with additional increases in 2027.
• Direct weekend service on Journal Square-33 St and Hoboken-World Trade Center lines by mid-2026.
• Increased morning rush hour service on Hoboken-World Trade Center line in 2026.
• Doubling Friday late-night service to match Saturday late-night service in mid-2026.
• Additional trains during morning and evening rush hours and weekend daytimes on Newark-World Trade Center line in first half of 2027.

These changes, PANY/NJ said, were developed in direct response to rider feedback and community outreach efforts, and the results of a September 2025 survey of more than 1,000 PATH riders. Riders consistently identified weekday rush hour and weekend daytime service as their top priorities for improved frequency, it noted.

Beyond service increases, PANY/NJ said PATH is planning “additional initiatives to further streamline and modernize the passenger experience, including expansion of the popular TAPP tap-to-go fare payment system.”

According to PANY/NJ, the 2017-2025 Capital Plan provided PATH with $3 billion to:

• Replace an outdated signal network with a $1 billion state-of-the-art system, allowing more trains to run closer together safely and making PATH “one of the first railroads in the country to implement automatic and positive train control.”
• Invest in the $430 million PATH Forward program, which repaired aging stations (Hoboken, Grove St, Newport, and Exchange Pl.), tracks, and switches to “deliver a smoother, more reliable experience” for riders. Completion is scheduled for early 2026.
• Replace and expand the outdated Harrison PATH station.
• Purchase 72 new railcars from Kawasaki, expanding the fleet by 20%. Platforms were extended to run nine-car trainsets on the Newark-World Trade Center line during peak hours, boosting capacity by 12% and reducing crowding in the system. 
• Complete critical efforts to repair damage from Superstorm Sandy, making stations and tunnels more resilient against future storms.
• Implement new customer-focused features, including a tap-to-pay fare payment system, updated countdown clocks, and the RidePATH app.

This photograph shows track reconstruction work west of the Journal Sq station in September 2025, part of the $430 million PATH Forward program. (Courtesy of PANY/NJ)

“The concluding [PANY/NJ] capital plan provided the roadmap and funding for an historic decade of achievement at the Port Authority,” said Kevin O’Toole, Chairman of PANY/NJ. “This record $45 billion proposed 2026-2035 Capital Plan builds on a 104-year legacy of connecting this region through bold, forward-looking, best-in-class infrastructure that will drive our economy. It’s a defining moment for our agency, proving that we deliver what we promise as we continue to raise the standard for what public infrastructure can achieve.”

O’Toole added: “For more than a century, PATH has evolved alongside the region it serves, and this service expansion marks the start of a new, exciting chapter in that story. With PATH Forward drawing to a close, the critical work that was part of that program has allowed us to propose restoring seven-day-a-week service across every line for the first time in a generation alongside other major service upgrades. This is a tangible sign of how far PATH has come and how ready it now is to meet the demands of the future.”

“This proposed 2026-2035 Capital Plan is about building on real, measurable progress and delivering the next chapter of transformation across our facilities,” PANY/NJ Executive Director Rick Cotton said. “Over a decade of achievement, we’ve turned once-doubted visions into tangible, award-winning results, from world-class airport terminals and new bridges to a revitalized PATH system, and we are not letting up.”

“Behind the scenes, PATH teams have been working tirelessly to rebuild and modernize this 117-year-old system from the ground up,” PATH Director/General Manager Clarelle DeGraffe said. “From replacing decades-old track and switch infrastructure to upgrading stations and railcars, every project has been aimed at creating a stronger foundation for better service. Thanks to that effort and the patience of our riders, we’re now in a position to propose meaningful service improvements across all lines and all days of the week.”

(Courtesy of PANY/NJ)

According to PANY/NJ, PATH has seen significant ridership growth in recent months, including its second-busiest month since the pandemic in September 2025 when it carried 5.5 million riders. This was 79% of pre-pandemic September 2019 ridership. Nearly 218,000 customers rode PATH during the average weekday in September, a new post-pandemic record for the system. Weekend ridership, PANY/NJ said, continues to match or exceed pre-pandemic figures with about 118,000 Saturday riders and 86,000 Sunday riders in September 2025.

PANY/NJ on Nov. 13 also released its 2026 budget proposal totaling $10.1 billion. Of that, $4.1 billion in capital funding is set to begin advancing work outlined in the 2026-2035 Capital Plan. Capital funding in the 2026 budget is 14% above capital funding in the 2025 budget. This includes the ongoing transformation of JFK, a major ramp-up in construction of the new Midtown Bus Terminal, a new entry point to the Newark Airport Rail Station opening by the end of 2026, continued work on the new AirTrain Newark, improved reliability of PATH’s railcar fleet and track infrastructure, and continued funding for essential work to keep the agency’s infrastructure in a state-of-good repair.

Operating funds in the 2026 budget proposal total $4.3 billion, funding the agency’s day-to-day operations that will include significant PATH service increases, according to PANY/NJ. The agency is projecting “robust” passenger and cargo volumes in 2026, including a record of more than 148 million passengers at its airports, 122.4 million vehicles at its bridge and tunnel crossings, 62 million riders on PATH across the year to reach a new high of 75% of pre-pandemic levels, 8.5 million TEUs (Twenty-Foot Equivalent Units) at the seaport, and 60 million visitors to the World Trade Center campus. The budget also includes $1.7 billion in debt service payments to meet the PANY/NJ’s debt obligations.

PANY/NJ said it is “committed to thoroughly soliciting public input” as it considers the 2026-2035 Capital Plan. Six public hearings have been scheduled at multiple locations across the region and at varying times of day.

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“With volume decreases, port, terminal, and ocean carrier operations remain at normal levels and should remain so through November,” said ITS Logistics Vice President of Global Supply Chain Paul Brashier. “However, there are some items we are keeping a close eye on that could drastically change the landscape in North American port and ramp operations.”

(ITS Logistics)

The firm reported that U.S. container imports totaled 2,306,687 Twenty-foot Equivalent Units (TEUs) for the month of October, down 7.5% compared to 2024. While the month-over-month decrease was a marginal 0.1%, the decrease “represents a divergence from typical seasonal trends, reflecting continued shipper hesitancy and a reliance on frontloaded inventory.”

Despite overall decline, China-origin imports grew for the time since August, leading modest volume gains from top U.S. trading partners with a 5.4% month-over-month increase, according to the report. “The past several months have seen a turbulent series of trade discussions between [POTUS 47] and President Xi Jinping, which recently concluded with [POTUS 47] agreeing to cut fentanyl-linked tariffs on Beijing, bringing overall duties on Chinese goods to 47%. And on Monday, both the U.S. and China announced a one-year suspension of port call fees, a move that many argued would not only increase import costs but severely impact secondary ports across the country.”

Tariff uncertainty, ITS Logistics reports, continues to be a primary driver of depressed import activity, according to industry analysts. On Nov. 5, the Supreme Court heard the first oral arguments in the POTUS 47 Administration’s tariffs case, marking a “new and contentious” chapter. “If the Supreme Court finds [POTUS 47’s] tariffs were enacted illegally, it [will] offer immediate relief for shippers while also opening the door for challenges and questions related to refunding the roughly $1 trillion dollars paid by importers since April. The administration says it is already exploring alternative routes for enforcing import duties in the event the ruling is overturned. For now, both shippers and consumers remain cautious and purposeful in their holiday spending. Holiday shoppers are expecting to spend 10% less than last year, per Deloitte’s 2025 Holiday Retail Survey.”

“Outside the ports, the trucking market is enduring its own legislative limbo as states react to evolving legislation surrounding non-domiciled drivers and English language proficiency (ELP) requirements,” ITS Logistics reported. “Following the Federal Motor Carrier Safety Administration’s (FMCSA) September announcement freezing the issuance and renewal of non-domiciled CDLs, state agencies, shippers, carriers, and intermediaries have scrambled to understand expectations in remaining compliant, as well as how the ruling would impact overall capacity in the market. This week, however, an Appeals Court has temporarily blocked the enforcement of this ruling, citing a failure to follow proper procedure. With the administrative stay in place indefinitely, state agencies may continue issuing and renewing non-domiciled commercial driver’s licenses to non-citizens. The ruling does not, however, pause enforcement of renewed English language proficiency (ELP) requirements, which have been heavily enforced through roadside compliance checks since July.”

“It is estimated that as many as 600,000 drivers could be removed from the U.S. driver ecosystem due to non-domiciled drivers and ELP enforcement,” Brashier said. “This, in addition to the acceleration of trucking companies exiting the market, could create trucking capacity issues for most shippers. It is a situation we are monitoring closely.”

ITS Logistics each month releases the ITS Logistics U.S. Port/Rail Ramp Freight Index, which forecasts port container and dray operations for the Pacific, Atlantic and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions.

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In April 2019, Matt Rose stepped down as BNSF Executive Chairman. At the end of his tenure, Rose had been Executive Chairman for six years, and BNSF President and CEO for the prior 13 years. During his tenure as CEO, he helped guide the acquisition of BNSF by Berkshire Hathaway in 2009. Thus, we believe he is uniquely qualified to offer public commentary on the proposed UP-NS merger.

Some of those comments, observations and opinions were published in a recent commentary. Rose observed: “In 2001 the Surface Transportation Board, the railroad’s federal regulator, issued new merger rules …that require a proposed merger to enhance competition.”

“Enhance” is a verb meaning to “intensify, increase, or further improve the quality, value, or extent of.” In our professional opinion busting open the existing Norfolk Southern intermodal monopoly at Harrisburg, Pa., would provide an excellent real-world opportunity to genuinely “enhance” competition.

According to. Rose, “Proponents of the merger case will argue that eliminating gateways, the locations where freight is handed off between railroads, will move more traffic from the highway to the rail network. But (according to Rose), intermodal networks (like the one operated by BNSF)—which move imported goods from Asia and elsewhere—already are highly efficient and create little frictional delays at gateways.”

If Jim Vena wanted to check out current North American rail operations on the ground, he would notice that the Chicago market is very well served by a large volume of dedicated double-stack intermodal unit trains handling steamship containers carrying goods from multiple Asian origins. These trains operate direct from West Coast ports of entry (in both the U.S. and Canada) to Chicago. No interchange is required, since most if not all of them terminate in Chicago.

In 1990, when Vena was at CN (where he spent 40 years), I started working for the Atchison, Topeka & Santa Fe Railway. In that year, the railroad was advertising what was arguably the hottest intermodal train on the Santa Fe system (or anywhere in the country). It was called the QNYLA, with an advertised scheduled of 76 hours “coast-to-coast.” It consistently ran on time and rarely if ever was delayed in the Chicago Terminal. This train was and continues to be the epitome of a highly efficient operation and consistently encounters little “frictional delays” at gateways like Chicago.

In November 1989, then Santa Fe Railway President Mike Haverty personally chose the QNYLA for the now-famous railroad “field trip” with Johnnie Bryant Hunt, Sr. that resulted in the famous “handshake” that launched one of the most successful business partnerships in modern railroad history.

For some strange reason, railroad executives love to talk tough about “taking trucks off the roads.” What a joke! In my opinion, most of these so-called rail industry experts do not have the slightest idea what they are talking about. They have been part of the same “gang” that has been losing market share to truckers for almost 100 years now.

America’s trucking industry consists of a highly decentralized collection of entrepreneurial businesses that have elevated mass customization into an art form. By contrast, railroads are large, bureaucratic and incredibly difficult for most customers to deal with. Their marketing approach is one size fits all and any color the customer wants, as long as it’s black and white, or yellow, or orange and green, or blue and silver, or …

The fundamental difference here is between a transport mode operating in a 100% open access marketplace vs. one still hanging on to a marketplace characterized by outdated monopolistic practices.

Those of you still keeping score may be interested in the latest update from Bob Costello, chief economist American Trucking Associations (ATA), who wrote, “With changing supply chains and shifting freight markets … typical of the challenging environment that motor carriers dealt with in 2024, the industry still delivered more than 72% of all domestic freight tonnage in the U.S.”

This reality from both the highway and the marketplace provides new meaning to the phrase “If you got it a truck brought it.”

Now some random thoughts about the proposed UP-NS merger proposal.

Let’s start with talking about the “myth” of the watershed. This “myth” seems to promise vast new untapped sources of rail traffic simply by reducing interchange “complexities” with something new called “seamless service.” Personally, this reminds one of the early Spanish explorers, like Francisco Coronado searching for the mythical Cities of Cibola (“Seven Cities of Gold”).

So exactly, how “underserved” is the “Mississippi River Watershed” area, and underserved by whom?

Outside of major metropolitan areas in the watershed area, the only remaining intermodal terminals are two in Council Bluffs, and one each in Rochelle and Decatur, Ill. BNSF also has a mechanized terminal just across the river from Council Bluffs in Omaha. There are also three recently opened terminals in northwest Wisconsin, near St. Paul.

However, infrastructure and market access in the Midwest for the highly competitive trucking industry presents a radically different picture.

ATA-owned Transport Topics on June 20, 2025 released its 2025 Top 100 For-Hire Carriers list. Assembled by the editorial staff, this is an annual listing of the largest trucking companies in North America ranked primarily by annual carrier revenues. Two of the top five motor carriers on this year’s list are also long-time BNSF intermodal customers. Once again, ranked #1 (by current revenues) is the UPS, Inc., with more than 19,000 power units. Ranked #3 (by current revenues) is the J.B. Hunt Transport Services, with 20,500 tractors (vs. 14,700 for competitor Schneider). As information, the Midwest contains the greatest concentration (by geographic region) of commercial trucking operations in the U.S. Of the Transport Topics Top 100, one-third operated in the 12 Midwest states (with more than a quarter of these domiciled there). This represents the largest regional concentration in the U.S.

Based on my professional experience and on-the-ground observations, some of the better known carriers based in the heartland include Werner Enterprises (Omaha); Prime, Inc. (Springfield, Mo.); Crete Carriers, (Lincoln, Neb.); Heartland Express (North Liberty, Iowa); Hirschbach Motor Lines (Dubuque, Iowa); CRST (Cedar Rapids, Iowa); Marten Transport (Mondavi, Wisc.); and Roehl Transport (Marshfield, Wisc.). Some of these truckers are also intermodal players. Werner was estimated to have a fleet of around 550 domestic containers. Schneider last reported about 26,000 domestic containers, down slightly from the year before. Prime has the second largest fleet of intermodal refrigerated containers, after JBHT. Marten has the third largest container fleet, right behind Prime. Combined, they still have fewer than JBHT.

This Midwest list also includes Schneider, domiciled in Green Bay, Wisc., and reporting 14,500 tractors. Given its physical location. it is probably a safe bet Schneider already has numerous strong commercial relationships with shippers located in the watershed and may already be moving significant quantities of freight in the region. Schneider is also a recent convert to Union Pacific’s intermodal service. Does it the intermodal equivalent of the proverbial “canary in the coal mine” for determining the real and honest impact of the UP-NS merger?

Then there is the impact of the private fleet operators, the largest of which is now retail giant Walmart Inc., which claimed the No. 1 position for a second straight year after slightly expanding its tractor fleet to 12,696 power units. Private fleets reportedly also transport a significant amount of their own freight to help reduce empty backhaul miles. This for-hire vs. private competition for the same freight presents a unique challenge in the marketplace for all for-hire carriers, especially intermodal providers.

I must confess being surprised to learn Walmart briefly experimented with its own domestic container fleet. I always thought the high service levels required by a private fleet precluded little if any use of domestic intermodal. Walmart started this fleet in 2019, peaked to approximately 15,500 units and was eventually sold off to J.B. Hunt in 2024. Walmart reportedly found it extremely challenging to manage/operate a relatively small fleet of 53-foot domestic containers within its vast collection of privately owned highway trailers and tractors. Also, at the end of the day, Walmart reportedly discovered J.B. Hunt Intermodal could provide the same level of service for a lower total cost (and much less hassle) than trying to do it themselves.

Additional private truck operators in the Midwest include Ashley Furniture Industries (Arcadia, Wisc.), which is also an intermodal customer importing product from Asia through the Canadian West Coast ports. I’m not sure how much domestic Ashley uses.

The big surprise for Union Pacific may be that JB Hunt Intermodal is already very active in the watershed region. Two of the largest consumer products shippers in the region and the nation are S.C. Johnson, a very large consumer products company located in Racine County, Wisc., and Quaker Oats, operator of the world’s largest cereal plant, located in Cedar Rapids. J.B. Hunt Intermodal is reportedly the incumbent carrier for both facilities/customers.

And contrary to what UP would have you believe, major markets in Ohio are relatively well-served by rail intermodal today. The new BNSF rail intermodal terminal in North Baltimore, Ohio, also served by CSX is located about 260 highway miles east of Chicago and 36 miles due south of Toledo along I-75. Thus, BNSF and its partner J.B. Hunt Intermodal can now provide high quality door-to-door intermodal service to/from most of the Buckeye State.

Colliers International bills itself as a “global leader in real estate services and investment management.” On June 2, 2025, it released its latest list of The 25 Top U.S. Industrial and Logistics Markets. According to Colliers’ analysis, these 25 markets represent 76% of U.S. industrial activity. I would argue these 25 markets also represent where most of the domestic U.S. freight market can be found. If you eliminate the eight markets anchored by major seaports, almost 60% of the remaining markets are in the Midwest. Anchored by Chicago, nine of these are all located within about a 400-mile radius of Chicago. The Interstate Highway system helps facilitate this hub-and-spoke network, since in the Midwest all roads lead to the Windy City.

In a separate Colliers report, “Emerging U.S. Markets” Omaha and Dayton, Ohio were added to the Midwest mix.

If you combine the Colliers findings with the fact that the largest concentration of commercial truckers is also operating more or less within in the same 400- mile radius of Chicago, the conclusion, as I see it, is that the Midwest is overwhelmingly a regional transportation and distribution market. Remember that commercial trucking is historically a regional business, with an average length of haul now somewhere in the 400–500-mile range.

Heartland Express is truckload carrier based in North Liberty, Iowa. In the For-Hire trucking category, it would be ranked #38 nationwide based on 2025 annual revenues. Heartland’s corporate motto is “Service for Success.” I offer it—a personal favorite—as “Exhibit A” in the analysis of motor carrier length of haul and quality of service.

According to its most recent Annual Report, “Serving the short-to-medium haul market permits us to use primarily single rather than team drivers and dispatch most loads directly from origin to destination without an intermediate equipment change other than for driver scheduling purposes. During 2024, approximately 75% of our loads were less than 500 miles in length of haul.

“We operate 28 terminal facilities throughout the contiguous U.S. and one in Mexico following the CFI acquisition, in addition to our terminal and corporate headquarters in North Liberty, Iowa, about 20 miles south of Cedar Rapids at the junction of I-380 and I-80. These terminal locations are strategically located to concentrate on regional freight movements generally within a 500-mile radius of the terminals.

“We target customers with multiple, time-sensitive shipments, including those utilizing ‘just-in-time’ manufacturing and inventory management. In seeking these customers, we have positioned our business as a provider of premium service at compensatory rates, rather than competing solely on the basis of price.”

Another interesting regional carrier is Werner Enteprises, based in Omaha, (right on the western edge of the “watershed”). Based on 2025 annual revenues, Werner would rank #18 nationally, with 4,840 tractors by the end of 2024. According to its website, “We deliver unsurpassed supply chain solutions to the global marketplace.”  Werner also offers a service branded as “Werner Intermodal” offering “nationwide” service. According to its 2024 Annual Report intermodal revenues represented 13%of total Werner Logistics segment revenues. Fleet size was reported as 200 containers.

Within its TTS Segment, which includes One-Way Truckload and Dedicated operations, Werner reported “average completed trip length in miles (loaded)” of 582 miles in 2024 and 590 miles in 2023,” slightly longer than Heartland but still well below the accepted intermodal minimum requirement.

If rail intermodal service needs a minimum linehaul of 750 miles to be viable, then this collection of assumptions and conclusions is probably not good news for the railroad industry. I would also argue that at least in the Midwest, especially in the “watershed,” conventional intermodal is probably permanently relegated to a position of niche carrier.

According to the Union Pacific website, “This combination will help win back U.S. freight volume and jobs by competing more effectively with Canadian transcontinental railroads. Cross-border competition: For 100-plus years, Canadian railroads have threatened U.S. jobs and supply chains. The U.S. supply chain will benefit from a stronger American transcontinental option.”

Oh, those awful, evil Canadians, threatening U.S. jobs and supply chains! But wait a minute: Isn’t Jim Vena Canadian by birth?

Fact check time once again for Vena. In November 1995, the Canadian government decided to privatize Canadian National. Today, CN is a publicly traded company, and its stock is listed on both the Toronto and New York exchanges. The irony here is that for many years after going public, most outstanding CN shares were reportedly owned by U.S. citizens.

My favorite example of all the nonsense and silliness coming from Vena lately are his comments about the competitive impact of the Port of Prince Rupert, B.C. Prince Rupert is Canada’s ace in the hole when it comes to global supply chain management. Canada’s strategic advantage here is a perfect example of the old adage, “location, location, location.” It also has very little to do with railroads.

According to the Prince Rupert Port Authority website, “The Port of Prince Rupert offers shippers an unparalleled mix of speed, reliability, and reach for connecting Asian and North American markets. Commonly referred to in the marine industry as ‘The Rupert Advantage,’ especially as it relates to our intermodal capabilities, the Port of Prince Rupert stands out in a crowd.”

The Port Prince Rupert is North America’s closest port to Asia by up to three days sailing—it’s 36 hours closer to Shanghai than Vancouver and more than 68 hours closer than Los Angeles. It is 500 nautical miles closer than other ports in the Pacific Northwest, like Seattle and Tacoma. This can save up to 60 hours’ sailing time. As an example, this translates to 11 days sailing time from Shanghai to Prince Rupert vs. 14 sailing days Shanghai to Los Angeles. This geographic advantage means that a steamship container unloaded at Prince Rupert can probably be in Chicago before a competitively routed box can even be unloaded at the Port of Long Beach. No railroad, not even Vena’s proposed transcontinental one, can ever undo that competitive advantage.

CN’s main line along the Skeena River connects Prince Rupert with the rest of Canada. This route represents “the flattest rail grade through the Rocky Mountains, in effect a water-level crossing of Canada’s Pacific Divide. Compare that with the climb over Cajon Pass to get out of the Southern California Basin.

In conclusion, there is the small matter of the HMF (Harbor Maintenance Fee). The HMF, sometimes referred to as the Harbor Maintenance Tax, is a fee charged on cargo shipped through U.S. ports. It helps fund the maintenance and improvement of these ports. This fee is applied to commercial cargo shipped via ocean freight. The fee is imposed by US Customs and Border Protection (CBP) and deposited into the Harbor Maintenance Trust Fund. The fee is calculated based 0.125% on the total value of the commercial cargo, including the cost of shipping and insurance. The average fee per box is reportedly about US$100.

James A. Giblin has more than 40 years’ experience in rail, truck and intermodal freight transportation, warehousing and logistics, much of it in the greater Chicago area. He has lived in the Chicago area most of his adult life and is intimately familiar with the region’s freight and passenger rail infrastructure. For six years he is proud to say, “He made his run and made his pay on the Atchison, Topeka & Santa Fe.” In recent years, his professional experience has expanded and diversified to include numerous public sector clients and projects in communities and municipalities across Chicago’s south suburbs. He submitted written testimony as regional rail industry expert in favor of CN/EJ&E merger to the Surface Transportation Board and testified at the STB’s September 2008 Chicago hearing in favor of transaction. Jim is a former multi-year Chair of the Education Committee of the Traffic Club of Chicago. The opinions expressed here are his own, not those of Railway Age.

MORE FROM JIM GIBLIN

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Norfolk Southern’s (NS) first two “Landmark Series” locomotives recently rolled out of the Juniata Locomotive Shop in Altoona, Pa., each showcasing the name of a city that helped shape the railroad’s history and “America’s story.”

(Photograph by Steven Ludwick, NS Conductor from Conneaut, Ohio, courtesy of NS)

The Birmingham and the Atlanta (SD70IACs 1230 and 1231) made their official debut on Nov. 13, pulling NS business cars for a special Tracks of Hope event in support of Hope Atlanta, an NS-supported organization that works to serve people experiencing or at risk of homelessness, the railroad told Railway Age. “Guests embarked on a unique rail journey through Atlanta, experiencing the city from a new perspective while supporting Hope Atlanta’s critical programs that provide housing, resources and hope to local families in need,” according to Class I railroad, which Hope Atlanta recognized in October as “Corporate Hero of the Year.”

The locomotives in this new series will travel NS’s 19,500-plus route-mile network spanning 22 states and the District of Columbia, operating in freight revenue service, as well leading the railroad’s inspection trains. They will pay tribute to the communities that “keep America moving forward,” according to NS.

(Photograph by Steven Ludwick, NS Conductor from Conneaut, Ohio, courtesy of NS)

“These locomotives aren’t just machines—they’re growth engines for the U.S. economy,” said NS Chief Operating Officer John Orr, who Railway Age recently named as 2026 Railroader of the Year. “Each city we highlight is a center of economic activity that strengthens our network and drives commerce across the nation.”

The Landmark Series units will join NS’s fleet of 23 heritage units. The team at Juniata began painting predecessor-railroad color schemes onto locomotives in 2012 as part of NS’s 30th anniversary. Among them: Pennsylvania; Nickel Plate Road; Norfolk & Western; Conrail; Lehigh Valley; Delaware & Hudson (EMD SD70ACe No. 1080), which was released in June; and Tennessee, Alabama & Georgia (Wabtec AC44C6M), which debuted in December 2024. The Lackawanna 1074 was recently restored. The railroad also has a Thoroughbred Locomotive celebrating NS railroaders.

(Courtesy of NS)

Meanwhile, NS Operations leaders recently gathered for the fourth NS Safety Summit in the past two years, which focused on “improving communication and strengthening our commitment to the core value of safety,” the railroad reported Nov. 13. The summit was said to provide an opportunity to review performance, recognize what’s working, and act on what can be done better. Groups from Transportation, Engineering, Mechanical, Network Operations, Intermodal and Automotive Operations, NSPD, Enterprise Resources, Safety, and the Elkhart LSSC (Local Safety and Service Committee) shared notes.

“Focus, teamwork, extreme ownership, and accountability were common threads across discussions,” NS reported. “Leaders emphasized that every NS railroader must live the core value of safety every day, taking personal and team accountability to lead with clarity and intention.”

“There’s a lot of distractions,” noted Dewayne Swindall, NS VP Intermodal and Automotive Operations. “We’re pulled in a lot of directions, and we see that in the numbers when we lose focus. We also see the positive impact when we regain our focus and provide the right leadership and guidance in the field.”

“Safety and service are two things that cannot be compromised at NS,” NS Chief Safety Officer John Fleps said.

(Courtesy of NS)

NS also has announced the 20 recipients of its first Trades on Track Scholarship program, with each one awarded $5,000 toward their education or training in a trade “essential to rail operations.”

The program, developed in partnership with the Skillpointe Foundation, supports students pursuing technical education that leads to careers in welding, electrical engineering, conducting, and other essential trade fields.

Among the honorees are:

• Amanda Lang – Pittsburgh – Trade focus: Construction/electrical.
• Sinaca Stinson – Birmingham, Ala. – Trade focus: Manufacturing/machinery.
• John Santana – Chicago – Trade focus: Construction/electrical.

“Trades on Track is about more than education funding—it’s about creating opportunity,” said Kristin Wong, Director Norfolk Southern Foundation & Community Impact. “These students represent the next generation of skilled professionals who will keep rail operations safe, efficient, and innovative.”

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