Railway Age magazine

Manitoba, Canada-based Cando Rail & Terminals on Oct. 3 reported entering a definitive agreement to acquire the rail terminal and associated operations of Texas Deepwater Partners, a joint venture project formed by USD Group LLC and Pinto Realty Partners to develop an energy logistics terminal on the Houston (Tex.) Ship Channel. It would be Cando’s first terminal in the United States. Financial terms were not disclosed.

The transaction, subject to certain conditions and customary regulatory approvals, is expected to close in fourth-quarter 2025. It would be Cando’s third acquisition in the past two years. The company purchased AWP Industries in Canada’s Northwest Territories in November 2024 and Transmark in Southwest Alberta in December 2023.

Cando’s newest terminal is slated to be a “first-class, private railcar storage, staging, and transload terminal with existing capacity of 900 railcars; surplus real estate for future growth; and connections to the BNSF, Canadian Pacific Kansas City, and Union Pacific rail networks through the Port Terminal Railroad Association (PTRA),” according to Cando. Upon acquisition, it will be called the Cando Channelview Terminal and expand Cando’s network to 15 owned and operated rail terminals with a total capacity to store and stage more than 13,000 railcars. Cando also runs a short line (67-mile Central Manitoba Railway) and provides rail operations at more than 50 customer locations (see map below).

Cando’s network includes 15 terminals, one short line, and rail operations at more than 50 customer locations. (Courtesy of Cando)

“We are very pleased to add our first terminal in the United States to our network of terminals,” said Brian Cornick, President and CEO of Cando. “The Cando Channelview Terminal is a multi-customer, multi-purpose railcar storage, staging, and transload terminal strategically located on the north side of the Houston Ship Channel, serving many of the world’s largest petrochemical producers. This asset is right down the middle of the fairway for Cando, and we look forward to engaging with the PTRA, existing customers, and new customers to enhance their supply chains and expand the terminal. In addition, we are excited to be the exclusive rail partner to Texas Deepwater and support its plans to further develop the site.”

“After many years focused on organic growth, Cando has built a demonstrated track record of executing and integrating strategic acquisitions to enhance our network across North America,” Cornick continued. “Cando plans to continue investing organically and inorganically in critical rail infrastructure to support shipper-customers and Class I partners. Cando is uniquely positioned with world-class operations, a corporate culture obsessed with safety & customer experience, multi-decade partnerships, and an in-house design & engineering team, combined with an investment-grade balance sheet and significant access to capital.”

Cando in February opened the Cando Southlands Rail Yard in Strathcona County, Alberta, Canada.

Further Reading:

• First Look: Cando Rail & Terminals’ Battery-Electric Switcher

The post Cando to Acquire Texas Terminal appeared first on Railway Age.

CN

CN recently congratulated, via social media, Dr. Ahmed Elmezughi, the Class I’s Chief Medical Officer, on his appointment to the CCOHS Council of Governors.

Port of Long Beach

Longtime Port of Long Beach CEO Mario Cordero announced this week that he will retire at the end of 2025, capping a varied career that includes an eight-and-a-half run as Port CEO, seven years on the Federal Maritime Commission in Washington, D.C., and eight years as a member of the Long Beach Board of Harbor Commissioners.

“Known for bold and industry-leading stances promoting environmental sustainability and boosting market competitiveness, as well as his tireless and optimistic outlook,” Cordero, who led the Port through an era of “rapid cargo growth, a global pandemic, and major modernization,” has also become a noted thought leader in international trade in great demand for speaking engagements, media interviews and service on public boards of directors.

As CEO of the Port of Long Beach, reporting to the five-member Long Beach Board of Harbor Commissioners, Cordero leads a staff of about 600 professionals who improve, market and secure one-half of the nation’s largest trade gateway. In addition to his port industry career accomplishments, he is an attorney and educator.

Cordero in May 2017 said he was “blessed” to have landed a “dream job” when he was selected as the new CEO of the Port of Long Beach, returning to Long Beach after his stint as an appointee of President Barack Obama to the body that oversees the nation’s maritime policy. His time on the FMC beginning in 2011 included four years as Chairman.

He steps down at the end of a yearlong celebration marking two decades of the Port’s environmental progress—“20 Years of Leading Green”—achieved in parallel with growth of the Port’s economic benefits, such as 2.7 million jobs nationwide today tied to trade moving through Long Beach. The 20 years being commemorated started with the Green Port Policy proposed by then-Commissioner Cordero circa 2005.

“I could not be more grateful for what has been the opportunity of a lifetime to lead the Port of Long Beach over these past several years. While I’ll miss being in the center of the action for international trade, I know that I’m leaving the Port in the very capable hands of our Board of Harbor Commissioners and the exemplary staff,” said Cordero. “It’s been a very rewarding experience, and I have amassed wonderful memories that I will cherish forever.”

Cordero was appointed to the Board of Harbor Commissioners in 2003 by then-Long Beach Mayor Beverly O’Neill and reappointed in 2009 by then-Mayor Bob Foster, serving as both President and Vice President of the Board during his tenure. It was during his time on the Harbor Commission that he proposed the Green Port Policy, a commitment by the Port to environmental sustainability that was ratified in 2005. The action was a turning point for the Port, which committed to considering the environment in all of its decisions going forward, “leading to dramatically cleaner air, healthier harbors and today’s goal of seeking zero-emissions operations.”

Cordero, the Los Angeles-born son of Mexican immigrants, was the first in his family to attend college, and his father urged him to pursue engineering as a career. The young Cordero however came to the realization that he wanted to become a lawyer to make a difference in society, given the call for activism in the early 1970s. He earned a Bachelor of Science in political science from California State University, Long Beach, before going on to earn a law degree at the University of Santa Clara.

He practiced law for more than 30 years and also taught political science part-time for many years at Long Beach City College.

In addition to his Port responsibilities, Cordero was appointed by the Federal Reserve Bank of San Francisco to serve on the bank’s Los Angeles branch seven-member board of directors effective Jan. 1, 2021.

In 2025, for the seventh consecutive year, he was named to the Los Angeles Business Journal’s “LA500” list of the city’s most influential civic leaders.

The Board of Harbor Commissioners will determine a process for replacing Cordero in the months ahead.

OmniTRAX

OmniTRAX Vice President of Operations Dallas Ramos has been appointed to the CSRLA Board, which represents the interests of small freight railroads operating within the state. As an advocacy group, it works on issues like legislative policy, regulation, and promoting the importance of short line railroads to the state’s economy.

“I am honored to join such an important rail advocacy group,” said Ramos. “California is the nation’s largest economy, and California’s ports, industries, and consumers play critical roles in our global dynamic supply chains. California’s short line rail operations are essential to that process, and I look forward to helping CSLRA advocate on behalf of those that count on safe and reliable rail transportation every day.”

“The California Short Line Railroad Association is pleased to announce the appointment of Dallas Ramos of OmniTRAX to our Board of Directors,” added CSLRA Executive Director Don Norton. Mr. Ramos brings a wealth of industry experience and strategic insight, particularly following OmniTRAX’s recent partnership with the Santa Maria Valley Railroad. With OmniTRAX already owning the Stockton Terminal and Eastern Railroad, this new partnership further strengthens their presence in California. His leadership and commitment to advancing short line railroads in the state will be a valuable asset to our organization as we continue to advocate for infrastructure investment, operational excellence, and sustainable growth across the region.”

OmniTRAX operates California’s Stockton Terminal and Eastern Railroad and the Santa Maria Valley Railroad in partnership with Coast Belle Rail Corporation.

The post People News: CN, Port of Long Beach, OmniTRAX appeared first on Railway Age.

Together with its partners, CSX restored the key 60-mile corridor damaged by Hurricane Helene within the Blue Ridge Subdivision that carries more than 14 million tons of freight each year and connects Appalachian communities and businesses to the nation’s broader freight network.

The Blue Ridge Subdivision is one of four North-South routes in the CSX network, serving not only local customers but also “acting as a critical throughway for the entire system, the Class I noted. “Its restoration strengthens CSX’s network resiliency, providing added capacity and flexibility to keep freight moving efficiently across the country.”

“Restoring this vital freight corridor is a testament to resilience, recovery, and the power of partnership,” said CSX President and CEO Steve Angel. “This is a significant moment for CSX, for the communities of Tennessee and North Carolina, and for everyone who has worked tirelessly over the past year to ensure that freight rail is once again moving safely and reliably through the Nolichucky Gorge, making sure that CSX’s network emerges stronger than ever, and that it’s better positioned to serve customers, communities, and the national economy.”

Upgrades to the Subdivision include the rebuilt 530‑foot Poplar Bridge with a modern ballast‑deck design for better clearance and mitigating future potential weather impacts. Four out of the six original 95-foot spans were salvaged and reused, “reflecting CSX’s commitment to sustainability.”

CSX also rebuilt the Devil’s Creek bridge which crosses the state line between North Carolina and Tennessee, reinforced key structures such as retaining walls, and upgraded drainage systems throughout the entire Nolichucky Gorge and in several locations outside of the Gorge.

Restoring the Blue Ridge Subdivision was one of the largest rail recovery projects in CSX’s history. Key facts include:

• More than 570,000+ man hours worked to restore the line (CSX employees, contractors and suppliers).
• One million cubic yards of rock and material used to rebuild embankments and track beds.
• 575 rail piles and 1,150 precast concrete panels installed to construct a nearly one mile retaining wall south of Poplar.
• 21,000 cubic yards of concrete placed to strengthen structures.
• 35,500 linear feet of new track laid in the Nolichucky River gorge.

“Even as Hurricane Helene disrupted operations, CSX’s network proved resilient,” said CSX Executive Vice President and Chief Operating Officer Mike Cory. “The company maintained strong service levels across its broader system throughout unforeseen natural disasters, adapting quickly to challenges and ensuring essential goods for the nation kept moving. Now, with the reopening of the Blue Ridge Subdivision, CSX’s network is stronger and more resilient to disruption than ever before.”

CSX worked closely with state and federal agencies, environmental specialists, and local communities to complete the restoration. The effort, the Class I says, “prioritized safety, sustainability, and resilience to ensure the Blue Ridge Subdivision remains a critical link in America’s supply chain for decades to come.”

Today, CSX hosted a celebration in #Erwin, TN, to thank the workers who helped rebuild the Blue Ridge Subdivision after #HurricaneHelene. This vital 60-mile freight corridor is back, connecting Appalachia to the nation’s #SupplyChain. Well done, #ONECSX team! Learn more:… pic.twitter.com/fLvaAz8Mhk

— CSX (@CSX) October 3, 2025

The post CSX Celebrates Reopening of Blue Ridge Subdivision appeared first on Railway Age.

Inside, you’ll find these feature stories:

• ‘There Are No Shortcuts’ — Contributing Editor Don Itzkoff caught up with American Short Line and Regional Railroad Association President Chuck Baker for a wide-ranging conversation on railroading, policy and leadership.

• A Tight Hold — Railroads rely on suppliers for cost-effective fasteners that perform reliably and safely. Senior Editor Carolina Worrell provides a roundup of the newest technologies.

• MCU RCMP Marks 20 Years — Michigan State University’s Center for Railway Research and Education, housed in the Broad College of Business, convened its 20th iteration of the Railway Management Certificate Program in 2025. Val Kucherenko, MSU Director of Railway Education, reports on the program’s steady growth.

• Improving Rail Operations Using AI and Machine Learning: Detecting Trespasser Hotspots — Through a project with the Federal Railroad Administration, ENSCO utilized the Transportation Technology Center in Pueblo, Colo., to explore how new AI and ML methods can be used to help reduce trespassing incidents and reduce operational risk, reports Samantha Kirkpatrick, Senior Data Scientist at ENSCO, Inc.

In the 2026 Railroad Financial Desk Book, Financial Editor David Nahass discusses the railcar lease market—which he says “continues to demonstrate stability and a kind of strength”—plus the impact current railcar utilization and loadings levels are having on rents (and how the UP+NS merger could affect them, too). The Desk Book also includes, for easy reference, a directory of finance companies, arrangers, lessors and professional services firms.

Also, Capitol Hill Contributing Editor Frank N. Wilner covers the Surface Transportation Board drama following the Union Pacific-POTUS 47 chat. And Railway Age debuts The Rail Way, From the Boardroom to the Ballast Line, by Contributing Editor Pauline Lipkewich, Chief Transformation Officer for KingdomBuilding Leadership Inc. Lipkewich addresses how leaders navigate adversity and come out stronger.

These highlights and more can be found in Railway Age’s October 2025 digital edition:

The post Now On Line: Railway Age October 2025 Digital Edition appeared first on Railway Age.

BNSF

“As harvest ramps up in the Great Plains, South Dakota soybean growers have a new state-of-the-art processing facility at their disposal, right next to BNSF main line tracks ready to transport their products,” the Class I railroad reported via social media on Oct. 2. The facility, it said, can crush soybeans, sunflowers and other crops containing large amounts of oil.

High Plains Processing LLC, which is managed by the South Dakota Soybean Processors, near Mitchell is designed to crush up to 35 million bushels of soybeans annually, with plans to process sunflower, canola, and camelina by 2026, according to BNSF. The plant will be fully operational this month.

Among those attending the recent ribbon-cutting ceremony for the plant: Justin Inman, Ag Marketing Manager, BNSF; Matt Morales, Director, Marketing, BNSF; Matt Jensen, Manager, Ag Operations Support, BNSF; Tom Kersting, CEO, South Dakota Soybean Processors; John Prohaska, Group Operations Manager, South Dakota Soybean Processors; Pat Gathman, Plant Manager, South Dakota Soybean Processors; Matt White, Assistant Vice President, Ag Marketing, BNSF; and Jesus Uribes, Ag Marketing Manager, BNSF.

Further Reading:

• Soybean Farmers Invest in New Port Houston Export Facility

(Photograph courtesy of BNSF) (Photograph courtesy of BNSF)

BNSF on Oct. 2 announced via social media that its team at the Havelock Wheel Plant in Nebraska has achieved more than 1,000 days without an injury.

 “All of our team members here recognize the importance of working safely,” said Billy Anderson, BNSF Mechanical Safety Assistant. “It’s like a family environment. We all look out for each other, and no one hesitates to speak up if they see someone potentially compromising their own safety or someone else’s.”

“Congratulations, Havelock team!” BNSF posted. “Keep up the strong focus on safety and continue building on that injury-free streak.”

For more on the plant, read this BNSF Rail Talk article.

In other BNSF news, the railroad recently encouraged stakeholders to share their views with the Surface Transportation Board regarding the proposed merger between Union Pacific and Norfolk Southern, and congratulated Tristar Transload, Inc., on the official opening of its Muscat Spur Terminal.

UP Big Boy No. 4014 climbs the hill towards Speer Junction, Wyo. (Photograph by Billy Pine, courtesy of UP)

UP’s Big Boy No. 4014, the world’s largest operating steam locomotive, returned to the rails this summer for a limited excursion tour in Colorado and Wyoming.

It was first accompanied by UP’s No. 1616 Lincoln Locomotive, the Class I’s newest heritage unit, honoring Abraham Lincoln’s role in “uniting the nation through rail and laying the foundation for America’s freight rail network.”

The trip started July 17 in Cheyenne, Wyo., and both units made their way to Greeley, Colo., arriving July 19.

The Big Boy crew after another trip on the rails. From left, John Stravino, Kirt Clark, Ed Dickens, Austin Barker, Cole Lewis and Jimmy Thompson. (Photograph courtesy of UP)

To wrap up the trip, the Big Boy rolling through Colorado’s Greeley on Sept. 30 and Eaton on Oct. 1. The crew then returned to Cheyenne, Wyo., UP said, “to gear up for a much larger tour next year as part of the America 250 celebration. Stay tuned for details!”

Learn more about the dedicated team who keeps Big Boy in pristine condition and operates the locomotive across the UP network. To stay informed about Big Boy’s schedule and future steam excursions, join the Union Pacific Steam Club at up.com/SteamClub.

BACKGROUND (Courtesy of UP)

ALCO manufactured 25 Big Boys for UP, 20 in 1941 and five in 1944, to haul heavy freight during World War II. They saw service until their fires were dropped for the last time in 1961. Eight survived; UP re-acquired No. 4014 in 2013 from the RailGiants Museum in Pomona, Calif., and meticulously restored her to operating condition. No. 4014 returned to service in 2019 and is the only functioning Big Boy.

(Photograph courtesy of UP)

Railway Age reported on the 1941 debut with an extensive technical article (download below).

RailwayAge1941UPBigBoyDownload

2025 marks Lincoln’s 216th birthday, and UP’s newest heritage unit, No. 1616, is participating in community events and educational programs that highlight the historic role of railroads in America’s growth and their continued contribution to the country, communities and economy.

No. 1616 inside UP’s Jenks Locomotive Shop in North Little Rock, Ark. (Photograph courtesy of UP)

No. 1616 is the second presidential locomotive in UP’s Heritage Fleet, joining No. 4141, which was created in 2005 to honor President George H.W. Bush and was only the sixth locomotive at the time to be painted in colors other than the traditional UP “Armour Yellow.” On Dec. 6, 2018, UP participated in President Bush’s funeral train, led by No. 4141, from Spring to College Station, Tex., where the locomotive is on permanent display at the George Bush Presidential Library and Museum’s Marine One/4141 Locomotive Pavilion.

Further Reading:

• UP Celebrates 163rd Birthday in Springfield
• UP 1616 to Honor President Lincoln
• Once in a Lifetime: UP Honors Four Employees With Big Boy Ride-Along
• Big Boy Upgraded With Self-Contained PTC
• Big Boy Fits in ‘Jay Leno’s Garage’!
• Note to Lego: Issue This Kit!
• How UP Added PTC to the ‘Big Boy’
• Railway Age, October 4, 1941: UP’s “Big Boy” debuts
• Big Boy 4014 is back: UP restores, runs iconic train
• UP: A return to steam for Big Boy 4014
• UP Trimming Heritage Fleet
• UP CEO Honors Lincoln’s Vision

The post Class I Briefs: BNSF, UP appeared first on Railway Age.

Reinvent Albany, a New York-based government watchdog organization, has released a new report showing that the Metropolitan Transportation Authority (MTA) spent nearly $19 billion outside New York from 2011 to 2024, supporting up to 247,000 jobs in politically blue, red, and purple states alike. (For the purposes of this analysis, “job” means job-years: a job-year is one job for one year. See the full report below for more details.)

Reinvent-Albany-Report-Investing-in-the-MTA-is-Investing-in-America-October-2025-UpdateDownload

It makes sense that blue states with large urban transit systems have large transit-related industries that the MTA patronizes. But taken together, the four red states where the MTA does substantial business see greater MTA spending than either California or Illinois alone (North Carolina, Ohio, South Carolina, and Texas). In total, companies in red states by U.S. Senate representation received more than $3.5 billion in MTA payments over 14 years. States that voted for POTUS 47 in 2024 received nearly $7 billion from the MTA over this period. (See our spreadsheet for details).

The report updates Reinvent Albany’s 2020 analysis of national MTA spending, which was released during the push for emergency transit funding at the height of the COVID-19 pandemic.

The MTA is seeking $14 billion in federal funding for its 2025-2029 capital plan, and congestion pricing is budgeted to raise $15 billion for the MTA’s 2020-2024 capital plan. Federal funding cuts to the MTA and New York—such as those announced for the Gateway Tunnel and Second Avenue Subway this week—would only harm the MTA’s ability to purchase goods and services from across the country. Similarly, federal efforts to end congestion pricing would mean less capital dollars available to spend for the MTA: One-third of past MTA spending on vendors has been made outside of New York, across a total of 46 other states. The U.S. House Transportation and Infrastructure Committee has said it has begun work on a bill to replace the Bipartisan Infrastructure Act, set to expire late in 2026.

The MTA is the largest mass transit provider in the country, carrying 40% of national ridership and supporting the metropolitan region’s economy, which accounts for 8% of the U.S. GDP. With a $20 billion annual operating budget—larger than that of some states—and a daily ridership of 4 million during peak operations, the MTA’s contributions to the economy of the NYC Metro Region and the U.S. as a whole are vast.

The top states receiving MTA dollars were:

• New York – $41B
• New Jersey – $5B
• Pennsylvania – $3B
• Illinois – $1.9B
• California – $1.7B
• Minnesota – $734M
• North Carolina – $716M
• Connecticut – $714M
• Ohio – $662M
• Maryland – $574M
• South Carolina – $531M
• Massachusetts – $463M
• Virginia – $461M
• Texas – $344M
• Alabama – $268M

The MTA’s reach across the country is huge, including purchases of wooden railroad ties from West Virginia; tracks from Ohio, uniforms from South Carolina; software from California, Dell computers from Texas; HP copiers from Arkansas; police dogs from Alabama; and railcars, buses and their parts from New York, Indiana, New Mexico, Minnesota, and Pennsylvania.

The full report is also available on Reinvent Albany’s website, which includes an interactive map, lists of spending in all states, and the top vendors in each state, as well as the underlying data.

Reinvent Albany advocates for transparent and accountable New York government.

The post Reinvent Albany: Investing in MTA Is Investing in America appeared first on Railway Age.

The submission period applies to PennDOT-owned projects, infrastructure, and services. During this period, the private sector can submit proposals “offering innovative ways to deliver transportation projects” across all modes, including rail, roads, bridges, aviation, and ports. Proposals can also include more efficient models to manage existing transportation-related services and programs.

The private sector may also submit applications for non-PennDOT-owned assets directly to the P3 board during this time. Transportation entities outside of the governor’s jurisdiction, such as transit authorities and the Pennsylvania Turnpike Commission, may establish their own timelines or accept proposals year-round.

The state’s P3 law allows PennDOT and other transportation authorities and commissions to partner with private companies to participate in “delivering, maintaining, and financing transportation-related projects,” according to the agency.

As part of the P3 law, the seven-member Public Private Transportation Partnership Board was appointed to examine and approve potential public-private transportation projects. If the board determines a state operation would be more cost-effectively administered by a private company, PennDOT would issue a Request for Proposals (RFP) and start a competitive procurement as defined by the P3 law.

Instructions on how to submit a project and information on the unsolicited proposal review process can be found on the state’s P3 website. PennDOT holds an unsolicited proposal period in April and October each year. The next unsolicited proposal acceptance period will occur in April 2026.

The post PennDOT Now Accepting Proposals for Transportation Projects appeared first on Railway Age.

Democrat Robert E. Primus, fired Aug. 27 from his Senate-confirmed seat on the Surface Transportation Board (STB) by POTUS 47, wants his job back—and he is suing the Republican POTUS, as well as the STB and its Republican Chairperson Patrick J. Fuchs to make it happen. Primus alleges the firing is illegal.

His alignment with rail labor on issues over which the STB has no jurisdiction—carrier employment levels and implementation of operating strategies such as Precision Scheduled Railroading, plus his “thank you for letting me represent you” comment to the largest rail union—suggest a conflict with impartial execution of STB responsibilities. This only partly explains the fine kettle of fish in which Primus finds himself, although his firing did not provide a reason.

Primus’ additional hurt flows from Union Pacific’s (UP) desire to merge with Norfolk Southern (NS) to create the United States’ first seamless transcontinental railroad—a transaction the STB has exclusive authority to approve or deny. Primus’ sole dissenting vote on a previous rail merger—CPKC—and his publicly stated opinion that mergers stifle competition, harm supply chain stability, and throttle rail safety, may be more significant to his present circumstance. Indeed, POTUS 47, who fired Primus, has been priming the pump in favor of the UP+NS hook-up. Notably, Primus has not stated an opinion on UP+NS; and, again, no reason was provided for his firing.

Perceptions of UP involvement in Primus’ termination are buoyed by UP CEO Jim Vena’s Oval Office cheshire smile during a photo-op with POTUS 47 ahead of extracting a “sounds good to me” endorsement of the merger. That UP is on the hook for a $2.5 billion break-up fee should STB deny the merger feeds perception that UP is exercising its political clout. At the White House level, that clout is stuff of legend.

President Ronald Reagan’s Transportation Secretary Drew Lewis became UP chairperson and CEO. Andrew Card, who was President George H.W. Bush’s Transportation Secretary and then President George W. Bush’s chief of staff, became a UP Board member, as did Republican Vice President Dick Cheney. A UP “funeral train” transported the casket containing remains of the elder Bush from Houston to College Station, Tex., for burial.

Unfortunately, Vena’s Oval Office tête-à-tête with POTUS 47 has tossed the independent (from the Executive Branch) STB into a thorny briar patch and will make a Primus return a sticky wicket should courts so order. As explained in a separate commentary, there is no evidence a sitting member of the STB has been pressured by UP or POTUS 47 on how to vote.

Primus is likely to be asked to recuse himself from participating in a UP+NS merger proceeding. An appearance of partiality with regard to UP+NS arises from his having being fired by a POTUS supporting the UP+NS merger, and suspicion that the CEO of one of the merger applicants (UP) may have urged his firing.

Peculiarly with regard to Primus’ situation, the union with which he is alleged to be most closely aligned—the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-TD)—has come out in support of the UP+NS merger.

Primus is represented in his lawsuit by the non-profit Democracy Forward Foundation that has been active in challenging POTUS 47 Executive Orders and policies.

Fired Democratic members of the Federal Trade Commission (FTC) and National Labor Relations Board (NLRB) earlier filed similar lawsuits as filed by Primus. Although those petitioners were granted by a federal district court injunctive relief to nullify the terminations and allow their return to office, the Supreme Court delayed the effectiveness of the injunctions pending further litigation—the law not settled as to court authority to order reinstatement.

In those cases, the Justice Department (DOJ), which supports the firings, argued that even if the POTUS 47 terminations are unlawful, courts have no authority to order reinstatement.

Primus, as well, argues his termination unlawful—that the STB is independent of the Executive Branch and that the STB’s statute provides for termination only where “inefficiency, neglect of duty or malfeasance in office” is shown—none of which was cited in his firing.  

If Primus’ case follows the path of the FTC and NLRB cases, where injunctive relief has been delayed pending finality of litigation, Primus could be on the outside looking in well into 2026. And if he does return to work at the STB, he would, as explained earlier, face demands to recuse himself from participating in a UP+NS merger proceeding.

Further muddying Primus’ STB future is the government shutdown. The United States Courts website advises that the Judiciary has sufficient funds “not dependent on a new appropriation” to remain open only through Oct. 17. However, if government has not reopened by then, federal courts and agencies may operate under terms of the Anti-Deficiency Act that allows essential work to continue during a lapse in appropriations. This could include Primus’ request for an injunction allowing him to return to work.

STB and Fuchs are being sued because they are enforcing the Primus firing by denying him access to his office and STB files. Fuchs, as chairperson, is the agency’s chief administrative officer.

As with the FTC and NLRB cases, the STB and Fuchs will be represented by DOJ attorneys who can be called back to work in emergency situations (but pay would be delayed until after the government reopens). STB attorneys may similarly be called back to work if required to assist in defending the STB.

If a formal UP+NS merger application is filed as expected (Oct. 29 at the earliest), a timetable proposed by merger applicants provides for a final STB decision in early 2027.

However, the Board has proposed a revised version of the schedule, which could shorten the time for completion of the evidentiary record by months, perhaps allowing a final decision before the end of 2026. Importantly, that is only a proposal at present, and expect it to be opposed by CPKC and other stakeholders.

The five-member STB currently has two vacancies, including Primus’ now empty seat. Looking to 2027 (or late 2026), additional seats could become empty. Conceivably, the STB could consist of just one member by 2027—and since the agency’s statute has no quorum requirement, a merger could be decided by two or even a single STB member. That is highly unlikely.

Here is the current STB member consist (note that the statute allows members whose term expires to remain in office up to 12 additional months if a successor has not been Senate confirmed):

• Republican Fuchs, age 36, is serving his second and final term that expires Jan. 14, 2029.

• Republican Schultz, age 53, whose first term expires Jan. 11, 2026, and who has been renominated by POTUS 47, awaits Senate confirmation to a second and final term expiring Nov. 30, 2030.

• Democrat Karen J. Hedlund, age 76, whose first term expires Dec. 31, 2025, awaits nomination (followed by Senate confirmation) to a second and final five-year term that would allow her to vote in 2027. She could become the oldest member to be confirmed in the 138-year history of the STB and its Interstate Commerce Commission predecessor. There has been speculation she may retire. If she does, another Democrat could be nominated to succeed her. Notably, when asked by a shipper if there might be another rail merger (following CPKC) she responded, “Bring it on.”

• Recently nominated by POTUS 47 to a vacant seat—formerly held by Democrat Martin J. Oberman, who retired—is Republican Richard Kloster, age 67, who awaits a Senate Commerce Committee hearing into his qualifications prior to a Senate confirmation vote for a first five-year term. The reason a Republican is nominated for a previously Democratic seat is the statute permits the political party of the POTUS (now a Republican) to hold a politically partisan majority of seats on the five-member STB.

• If Primus, age 55, is permitted by courts to return to the STB, his second and final term expires Dec. 31, 2027. Otherwise, a vacancy exists for another Democrat to be nominated by POTUS 47.

(Although the STB is closed as part of the government shutdown, the compensation of sitting Senate-confirmed members—Fuchs, Schultz and Hedlund—is tied to their official position and not annual congressional appropriations. Thus, they remain on the job.)

Railway Age Capitol Hill Contributing Editor Frank N. Wilner, a former STB chief of staff and career railroader, is author of “Railroads & Economic Regulation,” available from Simmons-Boardman Books, 800-228-9670.

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CTA

CTA on Oct. 1 marked its 78th anniversary by bringing out two cars from its Heritage Fleet to serve riders on the inner loop. The 4000-series cars were built by the Cincinnati Car Company in 1923 and ran through 1973. They feature the orange-and-brown paint scheme they wore in the 1940s and are adorned with reproduction advertisements from the era.

According to CTA, the steel bodied cars have wooden interior floors, cushioned seats, and electrically controlled pocket doors. They are outfitted with sash windows riders could open and a collapsible cab the motorman would operate from.

“Initially, these cars would have a conductor who would stand outside, between each car and open the doors immediately adjacent him at every stop—rain or shine or blizzard,” according to CTA. “Later, the cars were upgraded to allow for all the doors to be open from one place, but conductors still generally did this from outside the cars.”

While today’s cars can easily reach CTA’s systemwide speed limit of 55 mph (and frequently do on many lines), these 4000-series cars tended to max out around 45 mph, according to the transit authority.

“Transit services by our predecessors date back to the late 1850s, with the first horse-drawn streetcar service operating south on State Street from downtown,” according to the CTA. “Since those days, local transit in Chicago has been provided through a variety of cable cars, electric streetcars, elevated railways, and subways and many types of buses, all of which have been a part of the important role transit has played in the Chicago and its region’s development, by linking people, jobs and communities. The CTA you ride today is an independent government agency incorporated by the State of Illinois. The first services operated under the CTA name ran in October 1947 when we acquired the then-private Chicago Rapid Transit Company (elevated and subway lines—the ‘L’ system) and the Chicago Surface Lines (which ran streetcars and buses), followed later by the acquisition of the Chicago Motor Coach company (buses). This consolidation formed one, unified public transit system whose services became complementary to each other. In fact, many of the services we provide today are descendants or evolutions of those once provided by these three companies, around which the city and its many neighborhoods grew. Today we operate a fleet of more than 3,300 railcars and buses, which operate over 1,500 miles of bus and ‘L’ routes. On a typical weekday, our modern fleet travels about 380,000 miles, providing roughly 1.6 million rides to the people of Chicago and 35 neighboring communities.”

WTTW, the Chicago PBS station that covered the CTA anniversary, noted that it “comes as Chicago-area transit systems face a $770 million fiscal cliff next year that could lead to drastic service cuts on the CTA, Pace and Metra.” Over the summer, “$74 million in funding was reallocated to the CTA, which is projected to hit its fiscal cliff first, in an effort to delay service cuts, according to the Regional Transportation Authority.”

The media outlet reported that state legislators, “who failed to pass a transit funding bill during their previous legislative session, are expected to try again in the fall,” and Illinois Gov. JB Pritzker “told reporters in July he’s confident legislation will pass to address the fiscal cliff facing Chicago-area transit agencies.”

(Courtesy of MDOT MTA) MDOT MTA

MDOT MTA on Oct. 1 reported the implementation of a policy to ban individuals who commit physical or verbal assaults against riders or employees. Supported by legislation enacted this year, the agency said it will begin to issue permanent or temporary bans across all modes including Local Bus, Light Rail, Metro Subway, MARC Train, Commuter Bus and Mobility. The agency also reported launching the Elerts SeeSay® mobile app, enabling riders to “discreetly” report safety concerns and communicate in real time with the Maryland Transit Police. The app is available for free download in both the Apple App Store and Google Play Store or on the MTA website at mta.maryland.gov/safety.

The Elert SeeSay® platform is a safety communication tool used by other transit agencies across the U.S., including MBTA, DART, SEPTA, CATA and BART, according to MDOT MTA. “While riders are strongly encouraged to report safety concerns immediately to transit operators and station attendants, the SeeSay® app allows riders to report concerns in multiple ways: directly through the app, via text to 410-888-0675 or through an online form on the MTA’s website www.mta.maryland.gov,” the agency said.

Beginning Oct. 6, app users may submit photos or videos when reporting a safety concern. Each report is routed to Maryland Transit Police dispatch staff for review and response. The app integrates geo-location technology to provide MTA police dispatchers with the rider’s precise location, which MDOT MTA said allows for a “faster and more accurate response.”

The agency’s Code of Conduct, “Rules of the Ride,” was issued in August and outlines what MDOT MTA said are “clear expectations for behavior while on buses, trains and in stations.” The Code of Conduct is organized into three categories  of behavior:

• “Courteous Conduct: Everyday respectful actions that contribute to a safe and comfortable environment for everyone. This includes keeping seats accessible, speaking at a low volume, using headphones when listening to audio content, and being mindful of others.
   
• “Prohibited Conduct: Actions not permitted on MTA property or vehicles. Examples include smoking, vandalism, carrying concealed weapons illegally, and disruptive behavior.
   
• “Bannable Conduct: Unlawful acts that will result in a ban. This includes any type of assault—physical or verbal—threats, sexual harassment, or fighting against an MTA employee, another passenger, or anyone else on MTA property.”

Enforcement of the Rider Code of Conduct and the policy to suspend or ban individuals who violate the code will be conducted by the Maryland Transit Police, according to MDOT MTA. “If a rider is banned, they will receive formal notice of suspension or banning, as well as the process to appeal,” it said.

The agency is sharing information about the Code of Conduct and enforcement policy on its website, social media and through announcements on buses, trains and at stations.

“Our riders and employees deserve to feel safe every time they take transit,” Maryland Transit Administrator Holly Arnold said. “By holding accountable those who commit assaults and by providing riders with a new tool to report concerns, we are reinforcing our commitment to a safe and respectful transit experience.”

TransLink (Courtesy of TransLink)

More Metro Vancouver employers are offering transit as a benefit to employees, to ensure their staff’s commute is easier and more affordable, according to TransLink, which is responsible for planning, financing, and managing transportation modes and services in the region. Among those services: British Columbia Rapid Transit Company, Coast Mountain Bus Company, and West Coast Express.

The agency on Oct. 1 reported that more than 50 organizations are now participating in its Transit-Friendly Employer program, with nearly 15,000 employees receiving subsidized Compass transit passes.

Through the program, employers can cover half the cost of a monthly or Stored Value Compass Pass. Certified employers can display the exclusive “Transit-Friendly Employer” stamp on their websites and job postings to help attract talent and highlight their commitment to a cleaner environment.

According to TransLink, “Canada’s first-of-its-kind” Transit-Friendly Employer program launched in 2022. To be eligible for the program, large employers (defined as having 200 or more staff) must have at least 10% employee participation and small employers (fewer than 200 staff) must meet at least 25% participation.

Among the 54 participating organizations, 21 are large employers and 33 are small employers, TransLink reported. Participants include YVR Vancouver Airport Authority, Lush Handmade Cosmetics, Vancouver Coastal Health, Fairmont Vancouver Airport, Rivian Automotive, Herschel Supply Co. Canada, Melanie Auld Jewelry, and Grouse Mountain. A full list of participating organizations is available at translink.ca/transitfriendlyemployer.

“The Transit Friendly Employer program highlights how vital transit is to the success of our region,” said Kevin Quinn, CEO of TransLink. “By supporting workers and connecting communities, we’re helping build a healthier, more sustainable future for everyone.”

“The TransLink Transit-Friendly Employer program is immensely valuable to surrounding communities as well as Rivian employees in Vancouver,” commented Tim Waldrop, Senior Manager, Commute & Mobility Programs, Rivian Automotive. “Programs like Transit-Friendly Employer help to keep costs low, reduce traffic congestion and emissions, and provide a safe and efficient alternative to drive-alone commutes.”

The post Transit Briefs: CTA, MDOT MTA, TransLink appeared first on Railway Age.

CSX

Newly appointed President and CEO Steve Angel on Oct. 1 hosted a town hall to connect with employees across the CSX network, the Class I announced via a LinkedIn post.

(CSX via LinkedIn)

“During the event, Angel shared his focus for the future and expressed his excitement for building relationships with the people who drive CSX’s success. He emphasized his enthusiasm for building on the Class I’s achievements and working together to help CSX become the best-run railroad in America,” the Class I wrote in the post.

(CSX via LinkedIn)

Separately, CSX recently introduced its Badger Overland Commercial Trailer, a compact, towable mobile command unit that enables the railroad to respond quickly and safely to incidents, even in remote areas, with features like wireless connectivity, a drone base, and recharging facility.

“The Badger represents CSX’s commitment to innovation, safety, and protecting our people and operations,” the Class I wrote in a LinkedIn post.

Introducing the CSX Badger Overland Command Trailer! This compact, towable unit allows the #ONECSX team to respond quickly to incidents—even in remote areas—with wireless connectivity, a drone base, & recharging facility. It represents our commitment to #safety & #innovation. pic.twitter.com/ycZ5gu1doi

— CSX (@CSX) September 30, 2025 BNSF

BNSF recently congratulated its customer Tristar Transload, Inc., via an X post, on the official opening of its Muscal Spur Terminal, a renewable fuels unloading facility in Southern California.

After nearly 20 months of construction, the facility is fully operational as of Oct. 1. BNSF will daily deliver tank cars of renewable fuels to the terminal, which has six one-million-gallon storage tanks to support long-term decarbonization goals in the state.

(Screenshot Courtesy of BNSF via X)

Since 1999, Tristar Transload, Inc., has served the West Coast, “providing strategic solutions to supply chain management,” said BNSF. As a transload company, Tristar handles the onloading and offloading between different transportation modes, such as from rail to truck and vice versa.

Pictured (above) are test cars delivered by BNSF in September.

Congrats to BNSF customer Tristar Transload, Inc. as it nears official opening of its Muscat Spur Terminal, a renewable fuels unloading facility in Southern California.

After nearly 20 months of construction, the facility will be fully operational on Oct. 1. BNSF will daily… pic.twitter.com/OFM6nwpKWR

— BNSF Railway (@BNSFRailway) September 30, 2025

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

According to the U.S. Department of Transportation’s (USDOT) website, which lists Brightline West as a “loan applicant,” and as reported by Bloomberg, the price tag for the private high-speed passenger railroad has swelled by nearly 35%. The higher cost has led the Fortress Investment Group-backed company to seek a $6 billion from the POTUS 47 administration.

Last month, Brightline CEO Mike Reininger said construction costs were increasing “due to rising labor and material costs, in part caused by high demand due to proliferation of data centers, power plants, and transportation projects,” according to the Bloomberg report.

“Given the increase in project costs we needed to figure out a way to advance the project,” Reininger said in an email.

According to the report, the federal loan “will take the place of a $6 billion bank facility on Brightline West’s original financing plan.” The company, Reininger said, “plans to raise equity to cover most of the $5.5 billion increase in construction costs. It initially targeted an equity raise of $1 billion.”

“We have had very productive conversations with USDOT and the Federal Railroad Administration the last few months to continue to move Brightline West forward,” Reininger said in an email.

U.S. Transportation Secretary Sean Duffy “has bashed a separate long delayed effort in California to build a high-speed rail to connect Los Angeles to San Francisco as a waste of taxpayer dollars. Costs for the project, initially pegged at $33 billion in 2008, have ballooned to an estimated $89 billion to $128 billion. In August, Duffy said he was canceling $4 billion of federal support for the ‘boondoggle,” according to the Bloomberg report.

The POTUS 47 administration earlier this year also terminated a $64 million planning grant for a high-speed rail line between Dallas and Houston, according to the report.

In contrast, Bloomberg reports, Duffy has “praised” the mostly privately financed Brightline West, which received a $3 billion grant from former President Joe Biden’s infrastructure law.

Chad Farrington, co-head of municipal-bond strategy at DWS Group, said the increased project costs “isn’t a positive development, but the tally is still lower than other similar high-speed rail projects,” according to the report. DWS Group holds $17 million of Brightline West’s $2.5 billion of municipal debt outstanding.

“Fortress has a proven ability in the past to secure financing, which is a plus,” said Farrington, referring to the project’s backer.

Prices on Brightline West bonds issued by the California Infrastructure and Economic Development Bank “declined [Oct. 1] following the disclosure of the railroad’s rising costs. Bonds with a 9.5% coupon traded at an average of 87.3 cents down from 91.6 cents on Sept. 23, the last time the securities changed hands. The spread, or risk premium, on the bonds compared with AAA-rated municipal bonds widened to an average of about 900 basis points from 825 basis points,” according to the report.

Brightline West, Bloomberg reports, “is betting it can capture about 20% of the 47 million annual trips projected between Southern California and Las Vegas by 2031,” according to bond offering documents. The all-electric trains on the rail line, built along a median on Interstate-15, are expected to reach speeds as high as 200 miles per hour. Service is expected to begin in September 2029.

Still, Brightline “has the challenge of convincing riders to commute to its rail station, in Rancho Cucamonga, which will be located about an hour from downtown Los Angeles. From there, the train to Vegas is expected to take roughly two hours,” according to the report.

Comparatively, a flight from Los Angeles to Las Vegas is about 2.5 hours, including idle time at the airport, while a drive between the two cities can range from 3.5 hours to six, according to the report.

The federal government, Bloomberg reports, is authorized to provide as much as $35 billion in direct loans and loan guarantees to finance development of railroad infrastructure via the Railroad Rehabilitation and Improvement Financing (RRIF) program. “The loan’s lower interest rate and long tenor make it an ideal source of capital,” Reininger said. “The loan can fund as much as 100% of a railroad project with repayment periods of as long as 35 years and interest rates equal to the cost of borrowing to the government plus a premium to account for credit risk.”

“Brightline West may line up a smaller bank facility to round out a financing plan, which also includes $5.5 billion of tax-exempt bonds,” according to Reininger.

“We need to aggregate a little more debt and a lot more equity than we originally planned and so in the face of this, the RRIF loan program became a more important and attractive alternative,” he said.

The post Report: Brightline West Costs Balloon to $21.5B appeared first on Railway Age.

Rail components and services provider A. Stucki Company (Stucki) on Oct. 2 reported acquiring Wheelworx, a railcar wheelset reconditioning services supplier. Terms of the transaction were not disclosed.

Wheelworx has 105 employees at manufacturing facilities in Calera, Ala., and Pekin, Ill.

Moon Township, Pa.-based Stucki said it is building an integration plan “to maintain production capabilities and customer service while creating opportunities for employees across both organizations during the ownership transition.”

Stucki, which provides engineered products, reconditioning and repair services, and maintenance of way services, now operates more than a dozen companies, with 23 operating centers in the United States, Mexico, and Brazil. Since 2022, it has been owned by a group of investors led by Stellex Capital Management.

“This acquisition strengthens our capabilities in wheel set production, repair, and logistics and enables us to capitalize on our longstanding relationships with railcar suppliers,” said Ron Port, who became Stucki CEO in 2024.  Additionally, it “opens new commercial opportunities and enhances our ability to provide end-to-end solutions to our railcar customers,” Port noted. “It also makes us competitive in additional locations in the South and Midwest.”

“Joining an industry leader like Stucki will benefit our company and our employees,” Wheelworx President Gary Schoenfeldt said. “We’re looking forward to serving our rail customers with greater capabilities and a broader line of products and services.”

Stucki in late 2024 completed the sale of Velocity Rail Solutions to private equity firm Wind Point Partners.

Further Reading:

• Eric Carter Tapped as Birmingham Rail VP, GM
• Creech, Dark Tapped as Stucki VPs
• A. Stucki Co. Announces Corporate Rebranding
• Force Control
• High Expectations, Hot Market

The post Stucki Expands its Portfolio appeared first on Railway Age.

Designed and built by General Electric, the Silverliner IV is the fourth-generation EMU (electric multiple unit) in the Silverliner family and was delivered in batches between 1973 and 1976. The Silverliner IVs were operated by the Reading Company until Reading’s absorption into Conrail in 1976. SEPTA took over commuter rail operations and the Silverliner IV fleet from Conrail in 1983. As of 2025, Silverliner IVs represent 225 of the 390 passenger-carrying railcars (which include passenger coaches, cab cars, and self-propelled units) in SEPTA’s Regional Rail operations fleet, according to the NTSB. “The Silverliner IV fleet has not been refurbished since its original deployment,” reported the government agency, which noted that the Silverliner IV design predates federal fire safety standards established in 1999 and most recently amended in 2002. Under Title 49 Code of Federal Regulations (CFR) Part 238.103, new railcars and refurbishments must meet the performance standards, design standards, and testing procedures described in Appendix B of the same part, it said.

“The NTSB concluded that the outdated design of the Silverliner IV railcars, in combination with SEPTA’s maintenance and operating practices, represents an immediate and unacceptable safety risk because of the incidence and severity of electrical fires that can spread to occupied compartments,” said the government agency on Oct. 1, the day it issued Railroad Investigation Report: RIR-25-12 (download below). “Additionally, the NTSB found that the risks posed by the design cannot be fully addressed without an extensive fleet retrofit or replacement.” According to the NTSB, it also found that “SEPTA’s current operating practices have failed to protect passengers and crews because defective railcars have been kept in passenger service.”

RIR-25-12Download

The NTSB said that it issues “urgent recommendations to address immediate, critical issues that threaten lives or property,” noting that it “does not need to wait until the end of investigations to issue recommendations”; recipients have 30 days to respond.

The recommendations for SEPTA stem from the NTSB’s investigation of five fires involving Silverliner IVs in 2025:

• Feb. 6, in Ridley Park, Pa.: The NTSB is continuing its investigation of the fire that started on the lead car of a six-Silverliner IV car train as the train departed Crum Lynne Station. It reported, however, that “preliminary findings indicate that the fire started in the railcar’s undercarriage when electrical components associated with the train’s propulsion system overheated and ignited.” Everyone aboard—four crew and about 325 riders—was evacuated. Four passengers later reported minor injuries, according to the NTSB.

Damage to a SEPTA Silverliner IV involved in the Ridley Park, Pa., fire on Feb. 6. (Photograph credits: SEPTA, left, and NTSB, right)

• June 3, Levittown, N.J.: The rearmost car of a five-Silverliner IV car-train caught fire as the train stopped at Levittown Station. “The fire was mostly confined to the roof area of the railcar and a rooftop ventilation duct,” the NTSB reported. “As part of the investigation into the earlier Ridley Park fire, the NTSB examined the damaged railcar from Levittown and found signs of overheating on the dynamic brake resistor banks, which normally convert mechanical energy into heat when the dynamic brakes are applied. Preliminary findings indicate that a cam controller pilot motor (part of the system that controls the railcar’s dynamic brakes) failed and that the dynamic braking pressure switch (which engages or cuts out the dynamic brakes during air brake applications) was out of calibration. Together, these two issues allowed this railcar’s braking system to become stuck in dynamic braking mode as the train remained in motion and under power, causing the resistor grid to overheat and ignite a fiberglass rooftop ventilation duct.” According to the NTSB, the crew evacuated the train’s 150 riders, and no injuries were reported.

• July 22, Paoli, Pa.: The fifth car of six Silverliner IV-car train caught fire as the train stopped at Paoli Station. “The railcar that caught fire was destroyed,” the NTSB reported. “The NTSB examined the involved railcar … again as part of the ongoing investigation of the Ridley Park fire. Preliminary findings indicate that the fire began in the undercarriage with electrical components in the train’s propulsion system and spread to the passenger compartment, similar to the February 6 fire in Ridley Park.” According to the government agency, the crew evacuated the train’s 14 riders; the conductor was transported to a local hospital for treatment for smoke inhalation and no other injuries were reported.

• Sept. 23, Fort Washington, Pa.: The crew observed smoke coming from the fifth car of a six Silverliner IV-car train while the train was approaching Fort Washington Station. “This incident involved the same railcar that caught fire in Levittown,” the NTSB reported. “The NTSB examined the involved railcar … and preliminary findings indicate that the fire began with electrical components near the dynamic brake resistor banks on the railcar’s roof. The electrical components had been replaced during repairs and maintenance after the Levittown fire; preliminary findings indicate that the fire was associated with these repairs rather than the defects that led to the Levittown fire. As in the Levittown fire, the fire did not spread to occupied compartments.” Four crew members and about 350 riders were on board; all were evacuated at the station and no injuries were reported, according to the NTSB.

• Sept. 25, Philadelphia, Pa.: The crew noticed that the second car of a five-Silverliner IV car train was on fire while stopped at Gravers Station, according to the NTSB. “Based on the NTSB’s interviews with crew members and maintenance personnel, the train had been operating since the previous day with an illuminated fault light,” the government agency said. “Multiple crews operated the train during this period. The NTSB examined the involved railcar … Preliminary findings indicate that the fire started on a traction motor in the train’s undercarriage and that a crew member put out the fire with a handheld extinguisher.” Four crew members and about 25 riders were on board; all were evacuated at the station and no injuries were reported, according to the NTSB.

Investigations are ongoing, but preliminary findings from the Ridley Park and Paoli fires, the NTSB reported, “indicate that fires spread from exterior electrical compartments to interior occupied compartments, a type of failure current design standards are intended to limit or prevent.”

According to the NTSB, its investigators reported that “the recurrence of fires—despite SEPTA’s attempted fixes—shows organizational lapses that block effective risk mitigation.” The NTSB said that “SEPTA’s proposed changes to its operations, maintenance and engineering activities require ongoing monitoring to ensure they protect passengers and crews.”

NTSB in its report recommendations called on SEPTA to:

• “Suspend operation of the Silverliner IV fleet until you have determined the root causes of fires, developed and implemented a plan to address these causes, and identified and corrected the organizational factors that have prevented effective risk mitigations. (R-25-12) (Urgent)

• “Create an expedited procurement or retrofit schedule and seek funding from appropriate sources as soon as possible to accelerate the replacement of the Silverliner IV fleet or its retrofit to include modern feedback systems and meet Title 49 Code of Federal Regulations Part 238 fire safety standards for new railcars. (R-25-13) (Urgent)

• “Pending replacement or retrofit of the Silverliner IV fleet, implement a plan to monitor the success of your risk-mitigation approach to the Silverliner IV fleet, including provisions for immediately removing the fleet from service again if your mitigations fail to prevent fires. (R-25-14) (Urgent)”

According to NBC10 Philadelphia, “SEPTA General Manager Scott Sauer said he was surprised by the NTSB report and disagreed with it. Sauer said SEPTA has already implemented about 40 mitigation measures since the first train fire … Sauer also said that despite the recommendations, the Silverliner IV railcars will remain on the tracks.”

The media outlet reported that “According to Sauer, the Federal Railroad Administration (FRA) wants the transit agency to follow its own mitigation practices. He also said the FRA agrees that SEPTA does not have to remove the Silverliner IV railcars from its fleet.”

“Throughout this process we have tightened up all those procedures which is why the incidents have been less frequent,” NBC10 Philadelphia quoted Sauer as saying. “So, we are responding to every single mitigation measure that we either come up with on our own or that the FRA tells us to do. The FRA being the regulator, they can order us to change. When they do, we respond.”

According to the media outlet, Sauer “also said that replacing the entire Silverliner IV fleet would require SEPTA to take out a loan, a process that could take up to six to 10 years.”

U.S. Transportation Secretary Sean Duffy released “a statement announcing the FRA issued an emergency order requiring that SEPTA take ‘immediate, sweeping action’ following the fires,” reported NBC10 Philadelphia. “According to Duffy, the FRA is ordering SEPTA to follow ‘several safety-related steps’ to prevent future fires.”

“At my direction, FRA is taking swift and immediate action to ensure the safety of all passengers and transit workers on SEPTA,” said Duffy, according to the media outlet. “This includes deploying our team of experts to SEPTA’s trains, repair shops, dispatch center, to ensure thorough safety precautions are being implemented. Recent fires and ongoing mechanical problems are unacceptable to such a critical rail line.”

Meanwhile, “[t]he Fiscal Cliff that has been haunting the transit industry in the wake of the COVID-19 pandemic and changes in ridership and revenue that it caused has placed SEPTA and many other providers in difficult financial straits,” according to a recent article by Railway Age Contributing Editor David Peter Alan. Read more of his SEPTA articles by clicking here and here.

The post NTSB Recommends Sidelining SEPTA Silverliner IVs appeared first on Railway Age.

Presented in a modern, digital-first format, the interactive report highlights new public awareness campaigns, education materials, volunteer engagement and key partnerships—all reinforcing OLI’s vision to stop track tragedies through education, enforcement and engineering, the nonprofit noted.

“This year’s theme reflects not just what we accomplished, but how we’re growing,” said OLI Executive Director Rachel Maleh. “We’ve reached farther through new partnerships and historic events—like during the April 8 eclipse—and we’ve reached more audiences by releasing new resources for transit riders, professional drivers, school bus drivers and more.”

2024 milestones include:

• Awarding $620,000 in competitive rail safety awareness grants to Operation Lifesaver programs in 33 states—$220,000 funded by the Federal Railroad Administration (FRA) and the Posner Foundation of Pittsburgh in 11 states, as well as $400,000 funded by the Federal Highway Administration (FHWA) in 22 states.
• Releasing school bus driver training—Decide Smart, Arrive Safe—and two new PSAs sharing the rail safety education message with an extended audience.
• Welcoming new State Coordinators across six states and Washington, D.C., expanding OLI’s grassroots reach.
• Launching a pledge push for OLI’s Transit Safety Pledge Campaign.
• Earning national certification for OLI’s Railroad Investigation and Safety Course (RISC) for First Responders.
• Sharing two new #STOPTrackTragedies campaign PSAs and videos highlighting personal stories from individuals impacted by rail incidents.

The report also recaps See Tracks? Think Train!® Week 2024, the largest coordinated public engagement effort of the year, with themed outreach activities, new campaign materials, partner activations, and a wide reach across digital and traditional media channels.

“We’re proud of the momentum we built in 2024—but we’re not done. Stay engaged with us, follow us on social and learn about our 2025 initiatives as we continue to creatively find ways to deliver our lifesaving message,” Maleh said.

The post OLI 2024 Report: ‘Growth, Outreach, and Lifesaving Education’ appeared first on Railway Age.

Our survey is comprehensive and covers a broad range of industrial and consumer industries, among others (see chart below). “Manufacturing”; “Transportation”; and “Logistics” comprised the largest percentages of participants. Shippers completing this survey had approximately $16 billion of transportation spend.

(Courtesy of TD Cowen) Pricing Continues Downward Trend, Below 5-Year Average

Rate hike expectations for the next 6-12 months came in at 3.1%, down 10bps vs. our second-quarter survey, and below the survey’s five-year average of 3.7%. Prolonged industrial softness and an OTR market that has yet to see any signs of life continue to pressure the overall freight market.

Shippers Would Move approximately 3% of Carload and IM Freight to Rails if Transcon Service Was Offered

We asked shippers how much freight they would move to the rails if a single-line network was offered. On the carload side, 46% would move none, 31% of shippers answered in the 0%-5% range (the most frequent response), and 15% of shippers answered in the 5%-10% range, while 8% see shifts beyond 15%. On a weighted average basis, 3% of freight is contemplated to be shifted at this time. For intermodal, 41% would move none, 36% would move 0%-5%, and 13% would move 5%-10%. On a weighed average basis, a similar 3% of IM freight could move. We acknowledge that rails have not yet marketed this service to shippers yet and believe this figure could potentially move up significantly as this service is rolled out and matures.

A slight majority of shippers (57%) do not intend to participate in comments with the Surface Transportation Board review. Of those that do, however, three times as many intend to oppose the merger than support it. Only 10% intend to endorse the Union Pacific-Norfolk Southern merger. As we have previously written, the STB has historically offered little concessions to shippers (or other Class I’s) formally through the review process and typically agreements have been reached independently between affected shippers and the relevant rails. The largest concern shippers have (75% of responses) is that upon a rail merger, monopolistic practices will be implemented. However, we would also expect support for this merger to grow over time when UN-NS offers concessions to the shipping community in exchange for support.

Growth Expectations Continues To Worsen, Macro Skews Negative

Shipper estimates of business growth fell to 1.2%, which stepped down again vs. last quarter and now sit at COVID lows. 66% of participants are less confident in the economy vs. 61% in our second-quarter survey. Confidence and growth expectations remain below survey averages, and our channel checks align with the survey results that the industrial economy continues to worsen.

Thoughts Into Rail Earnings

Survey results are a near-term negative for the U.S. rail group as pricing continues to decelerate and sits below the survey average. Business growth expectations fell sequentially to levels not seen since 2020 during COVID, and economic confidence runs well below the survey average. We lowered estimates for both of the eastern rails, while modestly raising estimates for UP (coal, IM) in our concurrently published preview, though acknowledge rail earnings will likely be dominated by M&A discussion despite diverging third-quarter operations.

SURVEY QUESTIONS

Question 1: How Much Of A Blended Base Price Increase Do You Anticipate Over The Next 6-12 Months?

Shippers anticipate rail prices to increase by 3.1% over the next 6-12 months, down 10bps compared to last quarter and still below the five-year survey average of 3.7%. Soft industrial outlook is likely putting a lid on rails’ ability to price. TL spot rates declining back to trough levels has also likely prevented much rail pricing upside.

Question 2a: What Is The Current Price Differential You Are Seeing Between Specific Rail And Truckload Freight Moves (Bulk/Carload)?

39% of respondents indicated that truckload is a cheaper option than rail, up a material 11 points compared to last quarter, the highest reading on record. TL spot deterioration through August and September has prevented rail from seeing any improvement in the differential. Spots are now -17% off early July peak and have returned to freight recession trough levels.

Question 2b: What Is The Current Price Differential You Are Seeing Between Specific Rail And Truckload Freight Moves (Intermodal)?

38% of intermodal shippers answered that truck is cheaper than rail compared to 28% a quarter ago, a 10-point decrease. Results are similar to those observed for the bulk category amid renewed weakness in TL spot rates.

Question 3: How Are You Planning Your Business Around Tariff Uncertainty?

We once again asked shippers about how they are adapting to tariff uncertainty. Notably, 4 percentage point more shippers said they are ordering less while 3 percentage point more shippers attested to pulling forward. Both outcomes point to a modified peak season with the fourth quarter expected to be seasonally soft as inventories are built.

Question 4a: If you had access to a single-line rail service via a transcon rail merger, how much bulk/carload eligible freight would you push towards the railroads?

We asked shippers how much carload freight they would move to rails given access to a single-line network. A little under half of eligible shippers said none. 31% of shippers answered in the 0%-5% range and this was the most frequent response. 15% of shippers answered in the 5%-10% range while 8% see shifts beyond 15%. On a weighted average basis, 3% of freight is contemplated to be shifted at this time. We acknowledge that rails have not yet marketed this service to shippers yet and believe this figure could potentially move up significantly as this service is rolled out and matures.

Question 4b: If you had access to a single-line rail service via a transcon rail merger, how much intermodal eligible freight would you push towards the railroads?

Intermodal results are similar to bulk but notably 5 percentage point more shippers see shifts likely compared to carload.

Question 4c: What are your key concerns regarding a potential rail merger? (select all that apply)

Three quarters of shippers surveyed have concerns regarding monopolistic practices in a consolidated railroad industry, which is unsurprising. The second most cited concern is integration related. Among other concerns cited was reduced customer service and loss of experienced staff.

Question 4d: Do you plan to endorse/oppose a rail merger during STB review (either publicly or in comment period)?

A majority of shippers do not intend to participate in comments with the STB review. Of those that do, however, three times as many intend to oppose the merger than support it. Only 10% intend to endorse the UNP/NSC merger. We remind investors that the STB has historically offered little concessions to shippers (or other Class I’s) formally through the review process and typically agreements have been reached independently between affected shippers and the relevant rails.

Question 5a: Over The Past Quarter, Have You Shifted More Off The Highway To The Railroads?

13% of bulk shippers and 16% of intermodal shippers now report having shifted volumes onto the rails. Declining TL spot rates approaching trough levels once again has put a lid on truck to rail conversions.

Question 5b: If So, Why (Bulk/Carload and Intermodal)?

“Concerns about tight TL capacity,” declined sharply by 8 points among participants that did shift freight which tracks with rate volatility. Participants that cited higher truck prices decreased by 10 percentage points to 22%. 38% of shippers answered, “improved rail service,” up 12 points from last quarter.

Question 6a: Are You Concerned About Rail Capacity?

37% of shippers answered that they are concerned about rail capacity, up 7 percentage points compared to last quarter. These are at 2024 levels but well below COVID congestion levels. About that concern, we asked, “If so, why?” Compared to a quarter ago, 4 percentage point fewer shippers cited “Equipment,” 1 percentage point less for “Track,” and 9 percentage points more answered “Manpower.”

Question 6b: Has Rail Service Impacted Your Modal Choices?

36% of survey respondents report that the quality of rail service has impacted their modal choices down 4 percentage points compared to last quarter.

Question 7a: How Would You Rate The Railroads On Service Measures, Using A Y/Y Comparison?

The average “positive” (excellent or good rating) rating of Class I (including KCS, KCSM, and Ferromex) rail service held flat at 55% in the third quarter. UP was the only declining U.S. Class I relative to the five-year average. This quarter, we again segment KSU’s operations by geography, separating Kansas City Southern (KCS, or KSU’s U.S. railroad) and Kansas City Southern de México (KCSM, or KSU’s Mexico railroad), and including service measure results for Mexican railroad Ferromex.

Question 7b: How Would You Rate The Railroads On Digital Ease Of Use And Freight Visibility?

We asked shippers to rate the Class I’s by digital ease of use and freight visibility as technology becomes an increasingly central part of rails’ efficiency strategies. The average “positive” (excellent or good rating) rating of Class I’s digital ease of use rating was 52% in the third quarter, down 3 percentage points compared to last quarter.

Question 8a: If Rail Service Improves, How Much More Freight Would You Push Toward The Railroads (Bulk/Carload)?

In the bulk/carload category, 67% of survey respondents indicated they would push 0%-5% more freight toward the rails, up vs. last quarter, while the share of those responding they would move 5%-10% decreased by 8 points.

Question 8b: If Rail Service Improves, How Much More Freight Would You Push Toward The Railroads (Intermodal)?

On the intermodal side, 65% of shippers answered 0%-5% more freight would be shifted to rails, 9 points less compared to last quarter. Participants responding that 5%-10% of their freight would be shifted was up 11 points. At the 10%-15% level, responses were up 2 points. Finally, those answering they would move more than 15% of freight decreased by a percentage point sequentially.

Question 9: Have ESG Targets Become A Part Of Your Decision-Making?

Responses that ESG targets were a factor decreased to 20% compared to 22% last quarter. We will continue to monitor trends in this space.

Question 10: Given Current Economic Conditions, How Much Do You Anticipate That Your Business Will Grow Over The Next 12 Months?

Business growth expectations over the next 12 months declined 30bps to reach 1.2%. Growth expectations have now touched the COVID low. Results line up with our channel checks indicating incremental weakness in the industrial economy.

Question 11: Over The Next 12 Months, How Will Your Employee Count Change?

The percentage of shippers expecting their employee counts to increase over the next 12 months was up 4 points sequentially. The percentage of shippers expecting to decrease headcount was up 6 points while those expecting it to be unchanged was down 10 points in the quarter.

Question 12: Is Your Company Having Difficulty Hiring Employees?

We asked participants if their companies are having difficulty hiring employees. Results were up 3 points compared to last quarter with 44% of participants stating that they are having trouble hiring employees, and 47% not having trouble hiring employees.

Question 13: Are You More Confident In The Direction Of The Economy Today Than You Were Three Months Ago?

Economic confidence slipped again in the third quarter and remains well below the survey average with a majority of participants still less confident in the economy.

Question 14: On A Scale Of 1 To 5, 5 Being The Most Positive, How Have Business Levels Trended Over The Last 3 Months?

Business levels over the past few months were positive (“good,” “very good,” or “excellent”) for 33% of respondents, down 5 points compared to last quarter. This figure has also reached the lows seen during the COVID shock amid poor macro outlook.

The post TD Cowen 20th Anniversary Quarterly Rail Survey Says … appeared first on Railway Age.

Where We Stand

We update our rail estimates to reflect QTD carloadings, fuel, and mix changes. QTD U.S. rail carloadings are +0.5%, with motor vehicles & equipment leading the growth at +6.5%. IM volumes have decelerated through the quarter now -0.4% QTD and -4.7% last week, with most of the pressure coming from the West Coast. We lower estimates for both eastern carriers, with the largest downward revision at NSC; full likely year guidance likely unachievable given muted demand environment that will pressure OR significantly in Q3. NSC continues to be a special situation given deal announcement so NT results less impactful to stock reaction. We continue to see a 90% deal approval probability.

At the NEARS conference earlier in September, NSC and western rival the BNSF offered sobering industrial development outlook noting that the number of projects moving into engineering and construction declined from 30 in 1Q to 20 in 2Q and then sharply down to 5 in 3Q. Tariff uncertainty was attributed to the freeze and 3Q’s number was the lowest number the NSC panelist has ever seen. Tariffs present a hurdle to reindustrialization due to the degree of import input that takes place in industrial projects.

CSX has been affected by a meaningful slowdown in chemicals, ag, and food. Margins are expected to step down meaningfully sequentially, though Howard Street tunnel is expected to open up this week, and the company should benefit from easy comparisons in 4Q given the hurricane impact last year. In a surprising announcement, CSX announced a CEO change that will take effect immediately after Joe Hinrichs spent 3 years running the rail. The incoming CEO comes from a non-rail background, though he oversaw and led the successful integration of a large industrials merger at Praxair. Investor feedback on the incoming CEO has been positive.

UNP is the only U.S. rail we are raising estimates for ahead of earnings, largely driven by intermodal that has come in much better than feared and strength in coal. LA+LB ports saw modest declines in August though better than commentary from Executives that suggested much larger import declines into the critical peak season that could leave shelves empty. UNP and NSC have announced that their shareholder vote for the deal will be November 14.

3Q25 Rail Shipper Survey

Survey results are a negative for the U.S. rail group. Pricing continues to decelerate in Q3, running well below the survey’s average. Business growth expectations worsen, akin to COVID lows. Economic confidence skews negative. Shippers would move LSD volume onto rails if transcon service offered though we acknowledge it will take time before rails can market this single-line service to customers in a transcon setting.

Transcon Watershed Opportunity Could Surprise to Upside

We believe a unified UNP/NSC sees potential upside to disclosed revenue synergies as we quantify the watershed opportunity. As such, we expect synergy estimates to be walked up over time (as observed in the CP-KCS merger detailed in table below). Our recently published deep-dive analysis of over 4,000 watershed O-D pairs suggests that even ~10% truck conversion exceeds UNP’s total net synergy target disclosed in a recent S-4 filing (noting that UNP’s estimate includes the larger transcon intermodal piece). Further upside should not be ruled out given rails’ price advantage over truck.

We believe a transcon faces significant conversion TAM but outcomes hinge on execution, which will occur over a multi-year period. The fmr Class I CEO we hosted recently highlighted the opportunity to strike contracts with customers (auto mainly) for ~75%-80% of their volumes (full note here). Such outcomes likely represent the upside scenario given that our 10% capture assumption yields outsized EBITDA gains. The chart below visualizes the watershed EBITDA opportunity in various share capture scenarios relative to UNP’s disclosed total synergy estimate.

Both NSC and CSX are trading above their 5-year forward PE average, with NSC trading the highest in the U.S. group at 21.4x due to the pending deal with UNP. UNP is the only U.S. Class I trading below its average as the company embarks on a multi-year effort to create a transcontinental railroad. The rail group has outperformed the rest of our coverage YTD despite an industrial economy that has been under continued pressure. September ISM data contracted for the seventh consecutive month. See our supply chain tracker for a more detailed look at how the macro has evolved through September.

The post TD Cowen Insight: Merger to Dominate Rail Earnings Despite Diverging Q3 Operations appeared first on Railway Age.

On July 30, 2025, at the Surface Transportation Board, Union Pacific and Norfolk Southern filed a notice of intent to file an Application for authority to merge. The earliest the Application may be filed is October 29. The STB will have 30 days (i.e., Nov.28) to determine whether it complies with the STB’s regulations.

The proceeding will be the first involving two Class I railroads that will be subject to the 2001 merger rules, because the merger of Canadian Pacific Railway and Kansas City Southern Railway was determined to be subject to the “KCS exemption” in the 2001 rules. So, that merger was only required to preserve existing competition, not enhance it, and CP and KCS were not required to consider “downstream impacts.” The STB made its views clear, during the battle between CP and CN for KCS, that it preferred CP over CN in large part due to concerns over “balance” in the railroad industry and the supposed fact that the CP-KCS merger presented few if any competitive concerns.

The STB’s rules will require UP and NS to demonstrate that their proposed merger would “enhance” competition, not just preserve it. They also require UP and NS to explain in their application what the “downstream impacts” will be, and how the merger will not negatively impact service. These are daunting requirements.

CPKC has made clear already that it is opposed to any more Class I mergers. Also, Berkshire Hathaway (which owns BNSF Railway) has made clear that it is not interested in acquiring CSX Transportation. So, it is not clear that a UP+NS merger would—or even could—lead to a balanced industry.

The opposition of other Class I railroads is a significant development. A large number of shipper associations have already announced their opposition. If that opposition persists or grows, it would undoubtedly have a significant impact on the STB’s consideration of the Application. It is true that Class I railroads have opposed other Class I mergers—BNSF initially opposed the UP-SP merger, only to withdraw its opposition when it entered into a consequential settlement agreement with UP that led directly to approval of that merger by the STB. The UP-BNSF Settlement Agreement, which became a condition of the merger and still applies, granted BNSF access to many shippers, resulted in 4,000 miles of trackage rights for BNSF and a formulaic rate agreement that allowed BNSF merely to request a rate from UP for its portion of joint movements that would allow BNSF to quote a shipper a rate on its system and compete on a commercial basis, among other aspects. The Board has heard and resolved many disputes between BNSF and UP that have allowed BNSF to be competitive with UP in many areas.

Also, CN filed a “responsive application” in the CP-KCS merger proceeding, seeking divestiture of a line in Illinois. We can expect responsive applications in the UP-NS proceeding that may allow the Board to rectify problematic aspects of the proposed merger so as to maintain balanced competition in regions where UP and NS lines are in close proximity.

The Board’s broad authority to condition a merger has preserved build-out rights to permit future competitive options for shippers to avoid captivity from mergers.  If the Board approves the UP-NS merger, we can expect substantial conditions to satisfy the 2001 merger-rule requirements.

Moreover, the STB’s composition is uncertain. Not only did POTUS 47 terminate Robert Primus as an STB Board Member (although that termination may still be challenged in court), but also the terms of Board Members Hedlund and Schultz end soon (but they can serve during a “holdover year” if a successor has not been confirmed). Recently, Schultz has been re-nominated, and Richard Kloster nominated, for two Republican Board positions. If Hedlund is not renominated and confirmed by early 2027, and Schultz and Kloster are not confirmed by then, they will not be available to vote on the UP-NS merger. The STB is not subject to a requirement that there be a quorum (i.e., three) Board Members to vote in order to act on a matter. But would Chairman Fuchs vote to approve such a momentous merger if he is the only Board Member who could vote when the 15-month deadline following the acceptance date arrives? Former Chairman Nober attempted to avoid taking significant actions while he was the only Board Member.

These circumstances suggest that UP and NS would be wise to try to cut deals with likely parties, including not only railroads, shipper associations, and rail labor, but also the Departments of Justice, Transportation, and Agriculture. The Administration’s position on the merger is not clear; Commerce Secretary Lutnick said that it would leave the decision to the STB. The President apparently did not take a position on the UP-NS merger when he met with UP CEO Vena, but subsequent reports suggest that he thinks the merger would be acceptable. But the Board must base its decision on the evidence, and the law, if its decision is to be upheld in court. If it approves the merger, it is more likely to be upheld if it acknowledges the adverse impacts on competition, balance, and service the merger may present, and responds with appropriate conditions.

The Board will be under more pressure than usual to get this one right. It is, after all, the “end game” for the railroad industry.

Michael McBride is a partner at the law firm Van Ness Feldman, LLP in Washington D.C., where he practices transportation law and represents rail shippers, ports and other customers of railroads, including in rail-merger proceedings before the STB.

The post The ‘End Game’ UP-NS Merger appeared first on Railway Age.

Robert Primus, who was removed from his position on the Surface Transportation Board (STB) on Aug. 27, in a move that Democracy Forward and Justice Legal Strategies, which are representing Primus, say, “undermines the board’s historic independence,” has filed a lawsuit (download below) against POTUS 47 and his administration, asking a federal court to “allow him to do his job on the independent board that oversees the economic regulation of railroads and other interstate land and water transportation.“

Primus has served on the STB since Jan. 7, 2021, and his current term expires on Dec. 31, 2027. Board members are nominated by the President and confirmed by the Senate and are bipartisan as no more than three of the five members can be from the same party.

“STB is the successor of the Interstate Commerce Commission (ICC), an agency created in 1887 to regulate the railroad monopolies and the federal government’s first independent regulatory agency. Over time, Congress extended the ICC’s role as economic regulator to other modes of interstate land and water transportation including motor carriers, water carriers, brokers, and freight forwarders. In every iteration of the oversight body, Congress protected the Commissioners from presidential removal except in cases of inefficiency, neglect of duty, or malfeasance in office. When the STB was created in 1995 to replace the ICC, the same protections carried over. No reason was provided when Primus was dismissed,” said Democracy Forward, a national legal organization that “advances democracy and social progress through litigation, policy, public education, and regulatory engagement,” in a release.

“[POTUS 47] continues to target members of independent boards, without cause, in violation of the law. Congress made clear when creating the Surface Transportation Board that the agency should be independent and above politics. The [POTUS 47] administration’s firing of Robert Primus ignores these limits on executive power. Democracy Forward is committed to supporting his efforts to continue his important work as a member of the Surface Transportation Board,” said Democracy Forward President and CEO Skye Perryman.

“I am fighting against this illegal termination not just for my statutory right to serve out my appointed term, but also for the right of every Board Member, present and future, Republican or Democrat, to serve on the Board as an independent and impartial member without the threat of retaliation or removal for discharging their duties free from political or partisan influence. It would be a disservice to our nation’s freight rail network if I did not,” said Primus. “Our country’s supply chain demands that the Board be independent and transparent. Congress mandated it 138 years ago. Failure to do so will negatively affect the network: railroads, shippers, and rail labor alike, disrupting the supply chain and ultimately injecting instability into our nation’s economy. This is dangerous, and wrong, and cannot not be allowed to happen.”

The STB’s structure, mission, and functions, as well as the terms set for members, “demonstrate Congress’s intent to provide the Board with continuity, stability, and insulation from political pressure exerted by the President,” said Democracy Forward in the release. “Because the Board members perform predominantly quasi-judicial and quasi-legislative functions and do not exercise substantial or considerable executive power, today’s filing notes, the restrictions on the President’s authority to remove members without showing proper cause are clearly constitutional.”

The Democracy Forward legal team working on the matter includes Cynthia Liao and Elena Goldstein. Jon Greenbaum is working on behalf of Justice Legal Strategies.

001-ComplaintDownload

The post Primus Files Lawsuit Against POTUS 47 appeared first on Railway Age.

U.S. Transportation Secretary Sean Duffy in a statement “specifically mentioned the expansion of the Second Avenue subway line and the construction of new train tunnels under the Hudson River, a $16 billion project,” according to The Times. “He said that funds for those two projects would not be distributed while the Transportation Department reviewed what it described as New York State’s ‘discriminatory, unconstitutional contracting processes.’”

“The review was in response to [POTUS 47’s] executive orders earlier this year targeting diversity, equity and inclusion programs, Mr. Duffy said,” according to The Times. “‘The department is focusing on these projects because they are arguably the largest infrastructure initiatives in the Western Hemisphere,’ he said in a statement.”

The Times noted that “[i]t was not immediately clear whether the $18 billion involved just those two projects or others as well.”

CNBC reported that Office of Management and Budget Director Russell Vought announced the federal funding freeze in posts on social media platform X. “‘Roughly $18 billion in New York City infrastructure projects have been put on hold to ensure funding is not flowing based on unconstitutional DEI principles,’ Vought wrote,” CNBC reported. “The funding is earmarked for the Hudson River Tunnel Project and the Second Avenue Subway project, said … Vought.”

According to CNBC, “The DOT in a statement, said it had issued ‘an interim final rule (IFR) barring race- and sex-based contracting requirements from federal grants,’ and that it had sent ‘letters to New York to inform them that their two mega projects – the 2nd Avenue Subway and Hudson Tunnel – are under administrative review to determine whether any unconstitutional practices are occurring.’”

(Gateway Development Commission illustration)

The statement noted: “Until USDOT’s quick administrative review is complete, project reimbursements cannot be processed, including a $300 million disbursement for the 2nd Avenue Subway. The remaining federal funding for these projects totals nearly $18 billion,’” according to the CNBC report.

The media outlet reported that while the government shutdown, which began at 12:01 a.m. ET on Oct. 1, did not lead to the funding freeze, “the DOT said that its review of the projects will take longer than normal because of the shutdown.”

The Gateway Development Commission has oversight of the Gateway Program Hudson Tunnel Project, which is building nine miles of passenger rail track between New York and New Jersey, including a new, two-tube tunnel under the Hudson River, and will rehabilitate the existing North River Tunnel. 

In an Oct. 1 statement, Gateway Development Commission CEO Thomas Prendergast said: “GDC has received notification from FTA [USDOT’s Federal Transit Administration] regarding a pause in disbursements for the Hudson Tunnel Project. GDC complies with all federal laws and regulations, and will continue to do so throughout the project. We look forward to continuing our productive relationship with the Administration, FTA, FRA [Federal Railroad Administration], and the U.S. Department of Transportation. In the meantime, we remain focused on keeping the project on scope, schedule, and budget.” (The GDC Board of Commissioners on Sept. 30 authorized expanding the use of the delivery partner model for project construction.)

According to The New York Times report, New York Gov. Kathy Hochul “described the [funding freeze] announcement as the [POTUS 47] administration’s latest salvo in its war on the state and its values. Earlier this week, Ms. Hochul said that the administration had cut an additional $100 million in counterterrorism funding in New York, following an earlier reduction of $87 million.”

“‘They’ve decided to put their own interpretation of proper culture ahead of our needs, the needs of a nation,’ Ms. Hochul, a Democrat, said at a news conference to discuss another topic involving Washington, the federal government shutdown,’” according to The Times. “‘You can’t make this up, folks. Just keeps getting worse and worse.’”

The FRA in July announced that it would pull back approximately $4 billion in funding for the California High-Speed Rail Authority (CHSRA) high-speed rail project. The FRA’s decision followed the release of its Compliance Review Report, which found the CHSRA project to be “in default” of the terms of two federal grants. CHSRA is now suing the POTUS 47 Administration.

Further Reading:

• NYMTA Approves Tunnel-Boring Contract For Second Avenue Subway Phase 2
• NYMTA Kicks Off Second Avenue Subway Phase 2 Project
• Now Advancing: New York’s Second Avenue Subway Phase 2
• Gateway: HTP Makes Concrete Progress
• GDC Awards Manhattan Tunnel Project Contract
• GDC Issues RFQ for New Jersey Surface Alignment Project
• For Hudson Tunnel Project, $2.7B in Federal Grants Now Available for Construction
• Hudson Tunnel Project Primed for FFGA
• GDC Submits FTA Documentation for Hudson Tunnel Project Funding

The post Reports: Feds to Pause $18B in NYC Infrastructure Project Funding appeared first on Railway Age.

“On a 55-to-45 vote, the G.O.P. plan, which would extend funding through Nov. 21, fell short of the 60 needed for passage,” The New York Times reported. “Republicans also blocked Democrats’ plan, which would extend funding through the end of October and add more than $1 trillion in health care spending, in a 47-to-53 vote.”

White House Office of Management and Budget Director Russel T. Vought after the votes directed leaders of executive branch departments and agencies to “execute their plans for an orderly shutdown,” a move “formally initiating the first closure of the federal government since [POTUS 47’s] first term,” Politico reported (download Vought’s memo below, courtesy of Politico).

M-25-35-Status-of-Agency-OperationsDownload

That shutdown, begun in December 2018, lasted 35 days. It was the longest shutdown in history; other federal government shutdowns have lasted for as little as one day.

“By the time the government reopened in January 2019, about $3 billion in U.S. economic activity evaporated, never to be recovered, according to the Congressional Budget Office,” ABC News reported.

The Senate on Oct. 1, 2025, is expected to vote again, “likely on the same two measures that failed Tuesday [Sept. 30],” according to ABC News.

Offices of the Federal Railroad Administration (FRA), National Mediation Board (NMB), National Transportation Safety Board (NTSB) and Surface Transportation Board (STB) will now be closed other than for safety and emergency situations. 

Amtrak, although government owned, will not shut down so long as there is cash on hand for payroll, fuel and other operating essentials. 

The Railroad Retirement Board will continue normal operations as it is funded by carrier and rail-employee payroll taxes. Railroad Retirement and Railroad Unemployment and Sickness benefits will continue to be paid on schedule.

FRA, NMB, NTSB and STB legal staff will be on call if their services are required in an emergency situation.

While websites of shutdown agencies may be accessible, they may not be updated. 

All political appointees will continue working as their compensation is tied to their official position and not annual congressional appropriations.

It is unlawful for any federal employee furloughed as a result of a government shutdown to volunteer their services. 

Furloughed federal employees typically receive backpay as part of the congressional resolution of a funding impasse that created the government shutdown. POTUS 47, however, has directed federal agencies to prepare reduction-in-force (job cut) plans that go beyond typical furloughs.  

FRA: Accident/incident safety inspectors will not be furloughed. The Office of Railroad Development will continue to function as it is separately funded through the 2021 Infrastructure Investment and Jobs Act. 

NMB: Staff will be on call for emergency action or consultation should there be a violation of the Railway Labor Act.

NTSB: The Go-Team will be available for accident/incident response and investigation.

STB: “Due to a lapse in appropriations causing the federal government to partially shut down its operations, Surface Transportation Board (STB) functions will be suspended,” the STB reported in a online press release dated Oct. 1. “Accordingly, during any lapse in appropriations, the STB will not:

“• Accept or process any filings or submissions;
“• Process cases, issue decisions, or hold public hearings, oral arguments, or voting conferences, except to the extent work has been determined to be an excepted function (e.g., an emergency service order);
“• Litigate and appear in court, except to the extent work on a particular litigation matter has been determined to be an excepted function;
“• Conduct ex parte meetings in informal rulemaking proceedings; or
“• Respond to FOIA requests.

“All deadlines requiring the submission of material to the STB during the pendency of the shutdown will be tolled. The Board’s website and email accounts will be unattended for the duration of the government shutdown. If you believe you have an emergency that requires immediate Board action, please call 202-245-0245 and leave a message.” The Board also posted on its website a “Plan for Agency Operations in the Absence of Appropriations.”

How the shutdown affects the timeline of submissions and decisions in the proposed UP+NS merger proceeding depends on the length of the shutdown. If the government reopens prior to a timeline deadline, there is no effect. But should the shutdown go beyond a deadline already established, the STB would, upon government’s reopening, issue a supplementary order extending that deadline.

For FAQ and other resources on the government shutdown, click here and here.

The post U.S. Government Shuts Down; What Railroaders Need to Know appeared first on Railway Age.