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This Financial Edge column from the March 2026 issue is a topic recommended by Eric Marchetto, Chief Financial Officer of Trinity Industries Inc., and is a companion to a Railway Age Rail Group On Air podcast with Marchetto (below).

Pick up a newspaper today that devotes itself to any business coverage and you’re going to be quickly overwhelmed by two topics. The first is AI and the second is the world’s obsession with the availability of and need to deploy what feels like an ocean of capital that seems to exist in the world’s markets today.

In the 2026 Railroad Financial Desk Book, the correlation between availability of capital and increasing asset valuations was drawn. If anything, the correlation for rail assets is just one piece of a larger puzzle that includes stocks, companies and fixed income investments (bonds). One doesn’t have to reach very far to see how the abundance of capital is impacting business. There’s Google’s 100-year bond (following in the steps of Norfolk Southern, Ford and Motorola), the currently limitless appetite for high yield bond debt, and the surge in private lending. 

This leads us to North American rail. The abundance of capital chasing investment opportunities in rail spans the industry from railroads to maintenance and repair to—what else?—railcars and locomotives. However, for industry veterans, the current era’s investment patterns differ from historical investment interest. Formerly, highly structured tax-affected (often leveraged) leases and Equipment Trust Certificates (ETCs, a sophisticated word for a well-collateralized loan) were the investment products of choice for asset acquisition and finance. 

During this time, shorter term operating leases were the province of a handful of investors taking above average risk and receiving above average, but occasionally slightly erratic, returns that followed the cyclicality of the rail equipment marketplace.

Eric Marchetto notes that today’s capital “stack” (to use an I-bank word) looks very different. (Yes, this is not your father’s capital stack.) One difference is the types of capital coming into the rail market today, including long horizon passive capital from infrastructure funds and insurance companies. These are potentially very large investors that can use one billion in equity to buy three to four billion in railcar assets. 

Furthermore, there are shorter-term investors (think PE firm Apollo) that are repackaging rail asset backed loans as collateralized debt obligations (CDOs) parsing out portfolios into credit-rated tranches.

This is all in the shadow of an industry expected to build 25,000 railcars in calendar year 2026. At the Railroad Financial Corporation and FTR Intel Houston Railcar Symposium in November 2025, Marchetto asked a room full of companies that move freight by rail if they intended to grow their railcar fleets in 2026. Very few rail shippers saw a need for that. Contrast that against the investment community, where every railcar lessor and investor is looking for more growth in a year where new builds are contracting. 

What do these investors love about rail? Marchetto notes that “rail assets represent an attractive risk-adjusted investment.” There is low default risk, and the long-lived nature of railcars represents an inflation hedge. Marchetto sees directly and anecdotally, especially after the GATX / Brookfield acquisition of the Wells Fargo fleet, more funds looking to get into the rail equipment leasing business. He sees growing demand from these investors looking for attractive returns. Think of the HALO (Heavy Assets Limited Obsolescence) trade that is currently a theme with investors looking for AI disruption alternatives.

Additionally, investors see an opportunity for steady and consistent returns in the railcar leasing space. Think of it this way: While many railcar owners may feel that post-COVID railcar prices have risen dramatically, Marchetto notes that new railcar prices have risen 3% to 4% annually over the past 20 years. 

Contrast this against lease rates that have risen 1% to 2% over the same 20-year period. This gives conviction in the long-term returns and the opportunity for lease rates to continue to increase to match the rise in asset value. Couple that with the abundance of liquidity available in today’s market, which when it gets deployed will have to assume that lease rates will rise in the future to justify paying today’s prices. 

Also add the uplift in railcar investment from the 100% bonus depreciation made available to investors in the 2025 tax bill. This makes for a rather compelling investment thesis when you are looking to deploy capital and generate attractive risk-adjusted returns. 

Expectations are that more capital will move into railcars. This topic will be on the forefront of investor mindsets throughout 2026. Listen to the podcast for additional insight!

Got questions? Set them free at dnahass@railfin.com. 

The post Ocean of Capital Chasing Trains appeared first on Railway Age.

Progress Rail in September 2023 filed a lawsuit against Wabtec in U.S. federal court in Delaware accusing the latter of abusing its market power for diesel-electric main line locomotives, equipment and services. The court dismissed the suit’s antitrust portion in June 2025. Now, the two companies have settled their dispute out of court. Settlement terms were not disclosed.

In a joint statement containing zero details, and released after the market closed on Thursday, Feb. 26 at 4:30 pm EST, Progress Rail, a Caterpillar company, and Wabtec Corporation announced that “the two parties have reached a settlement in Progress Rail v. Wabtec. The parties agree that this settlement is best for both companies, customers and consumers, and the prospect of additional litigation is not in anyone’s interest. There is no admission of liability. The two companies acknowledge that they have been and remain suppliers of long-haul freight locomotives and cab components, including Tier IV long-haul locomotives, to Class I railroads and other customers.”

The United States District Court for the District of Delaware in June 2025 dismissed all antitrust claims filed in a lawsuit challenging the merger between Wabtec and GE Transportation. “The Court said no harmful effects on competition resulting from the merger had been shown and also dismissed remaining antitrust allegations,” Wabtec said. “The Court did not grant Wabtec’s motion to dismiss alleged breach of contract and other claims, which Wabtec intends to vigorously defend.”

Kyra Yates, Vice President of Investor Relations for Wabtec said: “We are pleased with the Court’s ruling, which affirms the value and integrity of the Wabtec-GE Transportation merger for the industry and all its stakeholders.”

The 66-page, 326-point lawsuit (download below), PROGRESS RAIL SERVICES CORP., and PROGRESS RAIL LOCOMOTIVE INC., Plaintiffs, v. WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP., and WABTEC RAILWAY ELECTRONICS, INC., was unsealed Sept. 6, 2023 in the United States District Court for the District of Delaware. Progress Rail had been pressing for Wabtec to divest General Electric’s former Transportation unit, which it acquired in 2019 in an $11 billion deal during GE’s corporate restructuring and was seeking triple damages under U.S. antitrust law. Wabtec, Progress Rail alleged, “has profited, and continues to profit, from its unlawful, exclusionary conduct, to the detriment of consumers … Such unchecked conduct will make the freight locomotives that drive this country’s economy more expensive, less safe, and worse for the environment.”

The U.S. Justice Department in 2019 reviewed Wabtec’s acquisition of GE Transportation but did not move to block the then-pending merger. Wabtec and Progress Rail on Feb. 7 of that year signed a “Joint Development, Compatibility, Interchangeability and License Agreement ” with Progress Rail in which Wabtec said it would “continue the current open marketplace for locomotive cab electronics and other products in furtherance of open competition.”

On June 5, 2020, Wabtec entered into the “Wabtec Railway Electronics Interoperable Electronic Train Management System (I-ETMS) License Agreement” with Progress Rail. This agreement, Progress Rail said, “specifically references the 2019 Interchangeability Agreement and states that it shall be coterminous with the 2019 Interchangeability Agreement, which continues until Feb. 25, 2034. Wabtec professed its desire to ‘facilitate the integration’ of its PTC system to allow Progress Rail’s EMS system to remain compatible and integrated with the PTC system.”

“[T]he competitive balance critical to the freight locomotive industry was disrupted when Wabtec acquired GE Transportation,” Progress Rail said in its lawsuit. “That combination merged the sole supplier of certain key freight locomotive inputs, Wabtec, with the dominant supplier of finished freight locomotives and other cab technologies, GE Transportation. It created a vertically integrated entity with dominant positions in multiple products and the incentive and ability to engage in anticompetitive exclusionary conduct to harm the competitive process and consumers.

“Wabtec, a conceded monopolist, is one of the only or leading manufacturers of a long list of equipment used in the U.S. freight rail network. It is the dominant supplier of freight locomotives, having manufactured and sold approximately 75% of active diesel long-haul freight locomotives in North America, and approximately 90% of new long-haul freight locomotives that comply with Tier IV rail industry standards and the Environmental Protection Agency’s most recent emissions regulations … Wabtec also commands substantial market power over many inputs that are incorporated into freight locomotives: (a) it is the dominant supplier of Energy Management Systems (EMS), with its Trip Optimizer product holding approximately 79% of the market; (b) it is the dominant supplier of Positive Train Control systems, with its I-ETMS product installed on virtually all freight locomotives, and (c) it is the dominant supplier of distributed power systems, with its LOCOTROL product holding nearly 100% of the market.

“Wabtec’s professed commitment to ‘open competition,’ ‘integration,’ and ‘compatibility,’ however, was hollow and instead it has used its dominant market position to engage in anticompetitive exclusionary conduct that has harmed and continues to harm competition and consumers.”

“Wabtec uses its market power to engage in a pattern of anticompetitive conduct, the design and effect of which is to build upon and cement its monopoly by deterring customers from freely switching providers, stifling the ability of existing competitors from effectively competing and reaching scale, and stopping new competitors from entering the market.

“The exclusionary tactics Wabtec uses both individually and in combination to harm the competitive process and consumers include, but are not limited to, using its dominant position to:

• “Reduce rail industry required cross-product compatibility with complementary products through, among other things, restricting the flow of critical data and information.
• “Impose unnecessary costs and delays on competitors with the goal of impairing and forcing competitors out of business and obtaining even greater power to control prices.
• “Make knowingly false statements to consumers about the viability of its competitor.

“Wabtec’s anticompetitive tactics have been, and continue to be, effective in extending and maintaining its monopoly power in the markets for diesel long-haul freight locomotives, Tier IV long-haul freight locomotives, and EMS systems by, among other things, fortifying existing and creating artificial barriers to entry.

“Progress Rail competes against Wabtec in the development, manufacture, and sale of diesel long-haul freight locomotives, Tier IV long-haul freight locomotives, EMS systems, and other equipment used in the U.S. freight rail network. For example, Progress Rail has produced most of the non-Wabtec diesel freight locomotives in the U.S. during the past ten years, and after Wabtec, Progress Rail is the second-largest producer of Tier IV locomotives in the U.S. Progress Rail also develops and sells related solutions and technologies that enhance the safety and efficiency of locomotives, like its next generation EMS system called Talos and its event recorder called PowerView Event Recorder.

“Progress Rail is a direct target of Wabtec’s anticompetitive conduct. For example, Wabtec abuses its complete control over federally mandated PTC systems to cause Progress Rail unnecessary integration issues that are costly and time consuming to rectify. These integration issues are designed to place Progress Rail at a competitive disadvantage with current and potential customers.

“On top of interfering with the interoperability of products and freight locomotives, Wabtec has falsely and publicly stated that Progress Rail is ‘exiting’ the Tier IV locomotive business … ‘won’t be competing going forward’ … and ‘would not be an option for a customer for “anything that’s new in the U.S. from here on out.’

“Such knowingly false public statements directly harm competition and improperly strengthen Wabtec’s existing monopoly over Tier IV locomotives because they intentionally mislead countless exist ng and potential customers to believe that Progress Rail has left or will soon leave the market, and Wabtec is their only choice. Because of Wabtec’s anticompetitive conduct, Progress Rail has lost existing and potential customers for its products. Absent Wabtec’s anticompetitive conduct, Progress Rail’s revenues would be substantially greater, and its competitive influence would have a downward effect on pricing, provide more consumer choice, and enhance innovation and safety in the relevant markets.”

Progress Rail pointed to remarks made by Wabtec Executive Vice President and Chief Financial Officer John Olin at the May 9, 2023 Goldman Sachs Industrials Conference to support its allegation that Wabtec has publicly stated Progress Rail is exiting the U.S. Tier IV locomotive market.

Caterpillar, which owns Progress Rail and its EMD (Electro-Motive Diesel) unit, is not a party to the lawsuit. “Since the enactment of Tier IV in 2015, only about 1,200 units have been built, with more than 1,000 of these Wabtec units,” Railway Age Contributing Editor Bob Cantwell noted in a recent article on locomotive emissions. “Developing Tier IV locomotives has been a long, expensive journey with little payback to date. In fact, Caterpillar, parent company of Progress Rail/EMD, took a $935 million write-down at the end of fiscal year 2022 on its rail business in large part due to the slow adoption of Tier IV locomotives.”

Progress Rail on Sept. 11, 2023 responded to Railway Age’s request for comment, saying the company “does not comment on ongoing litigation.” Wabtec spokesperson Tim Bader provided the following statement:

“We believe that Progress Rail’s recent complaint against Wabtec at its core is an unsupported attack on the merger of Wabtec and GE Transportation, which was completed more than four years ago. The merger has provided benefits to the entire industry, as well as Progress Rail itself. Progress Rail actively participated in the U.S. Government’s review of that transaction and benefitted by entering into agreements with Wabtec that transferred Wabtec technology to it as part of the United States Department of Justice and global merger clearance process. We also firmly believe that Progress Rail’s assertions that Wabtec breached agreements or engaged in other illegal conduct are wrong. We intend to aggressively defend the case in court.” 

The post Progress Rail Suit Against Wabtec Over ‘Anticompetitive Conduct’ Settled Out of Court (UPDATED Feb. 27, 2026) appeared first on Railway Age.

The first section of the D (Purple) Line Extension will open May 8, LACMTA announced Feb. 26 (see map below). Service along the 3.9-mile Section 1 corridor includes three new stations: Wilshire/La Brea and Wilshire/Fairfax—which bookend Los Angeles’ Miracle Mile—and Wilshire/La Cienega in Beverly Hills. Each station will have a landscaped plaza at street level, elevators and escalators, and wide platforms, and are fully ADA accessible, according to the transit authority. There will be bike parking and connections to local bus lines, it noted.

LACMTA added that safety was key to the D Line Extension project. It said the three new stations and the plaza will have “enhanced lighting and have been designed with clear sight lines”; the stations will be staffed by its Metro Ambassadors and Transit Security Officers, and contract law enforcement and Care-Based Division members will also be present; cell phone service will be available in each of the new stations; and the stations will have taller faregates that improve fare compliance.

“With the Santa Monica Freeway and other Westside roads chronically congested, the debut of Section 1 provides immediate benefits to commuters,” LACMTA said. Travel times between Wilshire/La Cienega and Union Station in downtown L.A. will be about 20 minutes with no transfers required. That same trip today typically takes double that time on the bus and D Line, according to the transit authority. Many other transit trips in the D Line corridor will see similar time savings. 

While the D Line Extension delivers immediate benefits to current riders, LACMTA noted, it will also make it easier for future riders and visitors to get around, including those coming to Southern California to see the World Cup in 2026, the Super Bowl in 2027, and the Olympic and Paralympic Games in 2028.

According to LACMTA, Sections 2 and 3 of the D Line Extension are currently forecast to launch next year. Section 2 will bring the subway to downtown Beverly Hills and Century City, while Section 3 extends the subway to a station serving Westwood Village (with access to UCLA) and a station next to the West Los Angeles VA Medical Center.

The original D Line opened to Wilshire/Western Station in 1996. Plans to continue the line further west were scuttled due to two big hurdles: the challenge of tunneling through a methane gas zone and bans on local and federal funding due largely to concerns about the agency’s ability to safely build the project, according to LACMTA.

Momentum shifted in the early 2000s, the transit agency noted. First, LACMTA convened tunneling safety experts who determined advances in tunneling made it safe to excavate subway stations and tunnels. Then, in 2008, more than two-thirds of L.A. County voters approved the Measure R sales tax measure to provide local funding for the project. In 2016, 71% of county voters approved the Measure M sales tax measure to accelerate Section 3 of the D Line Extension.

Local funds, in turn, were used to attract $1.25 billion in a New Starts grant from the Federal Transit Administration, $66.4 million in supplemental New Starts funds, and a $749.3 million loan from the federal TIFIA program in 2014.

Separately, the LACMTA Board last month selected rapid transit for the Sepulveda Transit Corridor Project.

SEPTA on Feb. 26 awarded a contract to Korman Communities, Inc. and Benchmark Real Estate, LLC for the long-term ground lease of the 3.4-acre parking lot at Ambler Station along the Lansdale/Doylestown Regional Rail Line.

Under this agreement, the developer will pay SEPTA $402,500 per year with annual increases of 3% for a total contract value estimated to be $236 million over a term of 99 years.

The Korman and Benchmark proposal includes ground floor commercial; high quality open space and stormwater management; commuter and development parking; and multi-family housing with an affordable component (see rendering, top).

The developer will be responsible for all aspects of financing, zoning, permitting, design, construction, and maintenance of the project, and redevelopment of the parking lot is subject to SEPTA’s approval, according to the transit authority.

SEPTA said it is ”building on the success of its Transit Oriented Communities (TOC) Program by pursuing joint development opportunities to secure better returns on its real estate assets.” Dedicated revenue from ground leases and new ridership revenue is projected to grow to $10 million annually within the next decade, it noted.

“SEPTA is committed to strict fiscal discipline and finding innovative ways to generate new revenue streams beyond the farebox,” SEPTA General Manager Scott A. Sauer said. “Building housing and commercial space near our stations will boost ridership and bring economic activity to the communities that SEPTA serves.”

Other SEPTA projects under way are at the Conshohocken, Germantown and Langhorne stations.

In other news, SEPTA on Feb. 24 rolled out its newest CBTC digital signaling system upgrade on the Media–Sharon Hill Line, according to Hitachi Rail, which provided the system that will help modernize one of the last remaining interurban trolley systems in the United States.

The Sound Transit Board on Feb. 26 formally adopted the 2026–2030 Sustainability Plan (see above). According to Sound Transit, the plan outlines how it “integrates sustainability into every stage of planning, designing, building, and operating,” and the adopted motion “further strengthens these commitments by sunsetting the purchase of fossil fuel-powered revenue vehicles and equipment by 2030.”

The new plan establishes objectives and implementation strategies in the following areas:

• “Advancing equity. Expanding civil rights, equity, and inclusion trainings for employees; increasing fare affordability and access; and providing support and resources for small and disadvantaged businesses.
• “Building sustainable infrastructure and operating resiliently. Building agency resilience to climate change and other natural hazards, ensuring safe and reliable service during power outages, and reducing the environmental impacts and GHG emissions associated with material use and construction.
• “Continuously improving agency governance and business practices. Attracting, developing, and retaining talented employees and contractors; improving safety compliance and reducing the environmental impacts of agency procurements; and strengthening the agency’s sustainability funding portfolio to support long-term goals.
• “Growing ridership and strengthening communities. Advancing community development, strengthening, and formalizing community engagement vision and priorities, and expanding multimodal access to Sound Transit stations.
• “Protecting and restoring the environment. Protecting native habitats and wildlife, reducing environmental impacts from agency facilities, and minimizing surface water impacts on agency-owned and maintained properties.
• “Reducing air pollution and GHG emissions. Reducing emissions across operations, transitioning key fleets to zero-emission technologies by 2030, and achieving zero-emission fleets and facilities by 2050.”

According to Sound Transit, the plan establishes “clear, time-bound, and enforceable climate goals and embeds sustainability across every stage of project delivery and operations.” Additionally, it advances decarbonization by committing the agency to greenhouse gas neutrality for rail and facilities by 2030 and zero-emission operations by 2050, while grounding fleet and infrastructure decisions in cost, reliability, and service performance. 

Plan implementation will be overseen by agency leadership and tracked through annual reporting to the Board. Clear performance metrics will measure progress toward agency targets, while ensuring transparency for riders and regional partners, according to Sound Transit.

“The 2026–2030 Sustainability Plan—implemented through our nationally and internationally recognized sustainability program—reflects that vision by defining how we embed sustainability into every aspect of our work as we design, construct, and operate our regional transit system,” wrote Sound Transit CEO Dow Constantine in a letter introducing the plan. “As our system grows to connect more people, it is also shaping how people live, work, and move around the region, and our 2026–2030 Sustainability Plan ensures we will support that progress for generations to come.”

• Sound Transit Readies for ‘Crosslake Connection’
• Meet Seattle Mayor Katie Wilson, Transit Advocate
• Sound Transit Launches Federal Way LRT Extension

Starting Fall 2026, Metro is proposing two U-Pass options:

• Universal model: $1 per day with full student participation
• Opt-In model: $1.75 per day with a 33% minimum participation requirement

More flexibility for universities = More affordable transit for students pic.twitter.com/59k3Qg2ACn

The WMATA Board on Feb. 26 voted to approve a major expansion and modernization of the University Pass (U-Pass) program, which is described as an initiative “designed to give more college students affordable, unlimited access to transit while supporting ridership growth and institutional partnerships.”

Approved as part of WMATA’s Strategic Transformation Plan, the expanded program introduces new pricing and participation options that make it easier for colleges and universities to join and for more students, such as part-time, community college, and graduate students, to benefit from accessible transportation.

Since launching as a pilot in 2016 with American University, U-Pass has grown into a regional mobility program serving more than 35,000 students and generating roughly 4.6 million trips in fiscal year 2025.

Regionwide, 43 colleges and universities are eligible to participate, representing a potential reach of about 360,000 students across the National Capital region. The new program changes will be implemented during the fall 2026-2027 school year.

“U-Pass is a win for students, universities and the entire region and another example of continuous improvements for our customers,” WMATA General Manager and CEO Randy Clarke said. “By expanding the program and introducing flexible options, we’re opening the door for more institutions to participate, giving more students affordable, reliable access to transit every day.”

“As the largest non-Federal employers serving over 300,000 students in the region, I am glad that WMATA continues to evolve their U-Pass program to allow more of our universities to participate,” said Andrew Flagel, President and CEO of the Consortium of Universities of the Washington Metropolitan Area.

Separately, WMATA and Kawasaki Rail Car, Inc. earlier this month resolved their 7000-Series railcars disputes.

The post Transit Briefs: LACMTA, SEPTA, Sound Transit, WMATA appeared first on Railway Age.

OmniTRAX on Feb. 26 reported launching a multi-modal logistics hub in the city of Blue Island, just south of Chicago, that offers access to all Class I’s through Chicago Rail Link, one of the 30-plus small roads managed by OmniTrax, an affiliate of The Broe Group.

OmniTrax signed a long-term lease for the 90-acre parcel, which borders 119th and Division streets within The City of Blue Island Commercial Center. The site features bulk commodity rail-to-truck transloading, secure truck and trailer storage, and secure container storage.

“This is an extremely rare rail-served industrial site in the heart Chicago that offers unparalleled market access,” OmniTRAX Senior Vice President Chris Tecu said. “The City of Blue Island has a proud industrial and rail heritage that makes this partnership a perfect fit. This is fantastic public-private partnership that is the model for shared success.”

According to OmniTrax, Chicago Rail Link first served the Blue Island Yard in 1992.

“This project will bring new jobs and new investment to the City of Blue Island,” Mayor Fred Bilotto noted. “We are excited to partner with an experienced infrastructure company like OmniTRAX that brings national relationships and industry leading service to help our community attract new partnerships that build long-term community value.”

Separately, OmniTRAX last August signed an agreement with a second soda ash producer to provide exclusive third-party rail switching in Green River, Wyo. In addition to serving the Tata Chemical Soda Ash Partners mine, which was announced earlier in August, OmniTRAX is serving WE Soda’s Westvaco mining facility.

The post OmniTRAX Launches Chicago Logistics Hub appeared first on Railway Age.

The Railroads for National Defense (RND) Program within the U.S. Army Transportation Command has submitted comments in response to the Surface Transportation Board’s (STB) decision last month proposing what it called “a significant pro-competitive action” to repeal 49 C.F.R. part 1144, which governs the prescription of reciprocal switching, through routes, and through rates.

The STB’s Jan. 7 Notice of Proposed Rulemaking “would promote market forces in the freight rail industry.” According to the Board, the NPRM “would remove regulatory barriers that limit options for American businesses critical to our economy, including both shippers, such as manufacturers, utilities, and agricultural companies, and railroads seeking to innovate and compete.” In removing these regulations, the Board said it “would employ reasoned case-by-case approaches.”

The RND Program in its Feb. 24 comments (download below) requested “consideration of military equities in the application of reciprocal switching agreements on a case-by-case basis.”

It explained that on behalf of the Department of War (DoW) and U.S. Transportation Command, the RND Program “has an ongoing interest in America’s rail network to ensure that it supports military readiness capability requirements for both defense deployment and peacetime needs.” Rail transportation, it said, “is extremely important to DoW. Heavy tracked vehicles, high-volume movements of wheeled vehicles, and other defense materiel rely on rail to meet contingency deployment timelines between inland installations and seaports of embarkation (SPOEs). The economy of scale offered by domestic freight rail transportation is a strategic advantage.”

According to the RND Program, “[w]ith the current reciprocal switching rules under 49 C.F.R. § 1145 now vacated [by the U.S. 7th Circuit Court of Appeals], the additional repeal of the anticompetitive conduct standard under 49 C.F.R. § 1144 would empower the Board to consider a prescription of reciprocal switching agreements on a case-by-case basis under the applicable statutory standards.” This “flexibility,” it said, “would allow the Board to evaluate petitions based on authority under 49 U.S.C. § 11102(c)(1), which permits the Board to require rail carriers to enter into reciprocal switching agreements when such agreements are ‘practicable and in the public interest’ or ‘necessary to provide competitive rail service.’ Establishment of competitive rail service through the application of reciprocal switching orders is necessary for the public interest and safeguarding of national defense by increasing flexibility and resiliency to deploy critical military units via rail during peace and wartime.” The RND Program told the STB that it “would strongly consider advocating for reciprocal switching agreements at critical defense activities which currently rely on a single rail carrier for service.” Such agreements, it said, “would provide DoW with necessary operational flexibility and network resiliency to proactively address any service challenges at rail dependent installations by enabling the choice of alternative carriers based on current performance, network capacity, operational efficiency needs per deployment requirements, or other constraints.” According to the RND Program, this “enhanced adaptability would significantly bolster the resilience of military operations and strengthen the homeland’s ability to project power, granting military commanders enhanced decision space in times of war or national emergency where hours in deployment delays could affect overall mission success.” Also, “the added resilience to network operations creates additional dilemmas for potential adversaries by adding infrastructure, routing, and service provider options that have been ideally exercised well beforehand,” it said. “Importantly, the RND Program would consider petition and implementation of such an order solely where it is reasonable, practicable and in the best interest of national defense. This would include an evaluation that potential service from an alternative rail carrier would be safe, reliable, and efficient to meet required timelines and other mission needs.”

The RND Program pointed out that under 49 U.S.C. § 11102(c)(1), “the Board has discretion to order reciprocal switching agreements when it determines such arrangements are either ‘practicable and in the public interest’ or ‘necessary to provide competitive rail service.’” Last July, the United States Court of Appeals for the Seventh Circuit “determined that meeting the first statutory standard requires a finding of ‘inadequate service,’” the RND Program continued. “While traditional metrics for determining inadequate service may not apply to DoW’s varied and unscheduled shipments, the adequacy of rail service to a military installation could and should be defined by its overall reliability, resiliency, and flexibility to meet military needs during times of national emergency.”

The RND Program urged “the Board to consider the unique needs of national defense when evaluating reciprocal switching petitions under a ‘case-by-case’ basis pursuant to the applicable statutory standards or under future proposed rulemaking.” Ensuring rail service “flexibility, resiliency, and reliability,” it concluded, “is critical to safeguarding military readiness, national security, and the public interest.”

• Midtec’s Demise; Competition’s Rise
• Reregulation Hidden in Shipper Tapestry
• Clean Slate on Switch Rule. Now What?
• Reciprocal Switching: Not Quite Done
• STB Finalizes Reciprocal Switching Rule

The post U.S. Army to STB: ‘Consider the Unique Needs of National Defense’ appeared first on Railway Age.

CSX recently announced that it has reduced cargo theft incidents by more than 80% year over year through “a targeted task force and operational changes focused on the Memphis rail corridor.”

The task force was formed in 2024 after CSX identified a sharp increase in cargo theft in the Memphis area during the COVID-era surge in criminal activity. The rise in theft, the Class I says, “posed a growing concern for customer shipments, employee safety and surrounding communities, prompting the company to take a more focused, localized approach.”

“Cargo theft is both a security issue and a policy issue,” said CSX Assistant General Counsel Drew Sutter. “On the ground, it requires tactical solutions. Over the long term, it requires sustainable policies that address the broader impact on communities, employees and customers.”

The Memphis effort brought together multiple groups, including local law enforcement and CSX operational teams, in what company leaders described as “a highly collaborative process.” The focus centered on activity near CSX’s Leewood Yard, where trains were particularly vulnerable when stopping for extended periods.

To reduce risk in high traffic areas, CSX upgraded security around its Memphis facilities “with enhanced fencing, lighting, and access controls, including roughly 14,000 feet of high security fencing and an additional 5,000 feet east of Leewood Yard.” The company also added 30 surveillance cameras to support real time monitoring and investigations, “strengthening security without disrupting operations.”

One of the task force’s key challenges was finding ways to keep trains moving through the area without unnecessary stops. To address that risk, CSX implemented two major operational changes. The company introduced two direct trains running from its Leewood Yard in Memphis to Fairburn, Ga., “reducing dwell time in high-risk areas.” CSX also coordinated arrival and departure windows to limit exposure when trains entered and exited facilities.

Those changes, the Class I says, “produced immediate results, contributing to the year-over-year reduction in cargo theft incidents,” according to Sean Douris, CSX Chief of Police, Public Safety, and Infrastructure Protection.

CSX leaders said the Memphis initiative has become “a blueprint for addressing similar issues elsewhere on the network.”

“As we see incidents like this start to develop into trends, we’ll be able to apply this template going forward,” Douris said. “The goal is to address these problems early, before they reach a larger scale.”

Cargo theft has been an ongoing concern across the transportation industry, with impacts extending beyond financial losses to include employee safety and community well-being, the Class I noted. CSX said its Memphis task force “demonstrates how coordinated operational and policy-driven approaches can deliver measurable results.”

NS has expanded the Thoroughbred Trading Post, a mobile application that “modernizes how surplus assets are documented, reviewed, and sold while helping teams maintain safer and more orderly yards and field locations.” The platform was designed and developed in-house, which, the Class I says, “sets it apart as a unique and innovative solution within the rail industry.” It supports equipment, machinery, tools, facility items, and other operational materials.

With a quick photo and brief description, NS employees can initiate a disposition request to remove, auction, recycle, or reassign items from anywhere.

Key benefits include:

• “Safety: Removing unused equipment reduces hazards, keeps yard areas clear, and supports safer daily operations.
• “Automation: Faster response times and consistent data make asset disposition more accessible and efficient.
• “Transparency: No more email chains or spreadsheets. All information lives in a single and easy-to-use app.
• “Stewardship: Responsible handling ensures assets are credited, managed, and routed appropriately, including direct-to-auction for high value items.
• “Revenue Generation: Larger assets route directly to auction partners, improving returns for NS.”

“We built the Thoroughbred Trading Post in-house because we wanted a solution that truly fits the way our teams work. It empowers employees, streamlines asset disposition, and helps us all work safer by removing what is no longer key to our operations or necessary. This is NS problem solving at its best,” said NS Senior Manager, Agile Business Solutions Jonathan Anthony.

This new solution reflects the culture of ingenuity across Norfolk Southern. It ensures every asset is handled responsibly and supports the safety, efficiency, and orderliness of our work environment. It shows how NS is leading with practical and innovative solutions in an area where many railroads face the same challenges,” said NS Sr. Category Specialist, Asset Disposition Paris Stroud.

“The app makes the asset disposition process go smoother and acts as a one‑stop shop instead of having to go through multiple steps. It also keeps me in the loop in real time on where an item is in the process, which is a tremendous value‑add,” said NS Sr. Supervisor Work Equipment – Engineering Teddy Lowry.

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Ports of Indiana has appointed Joshua Webb as Director of Government Affairs to lead legislative strategy and advocacy efforts at the state and federal levels.

Webb brings more than a decade of experience in Indiana politics, public policy, and government operations. Most recently, he served as State Director for Americans for Prosperity-Indiana, where he led grassroots advocacy efforts, political operations, and government affairs. His career also includes service as Deputy State Director for United States Senator (now Governor) Mike Braun and work for former Congressman Luke Messer, where he held positions as both policy advisor in Washington, D.C., and District Director in Indiana.

“We’re pleased to have someone with Josh’s extensive experience lead our government affairs efforts at this critical time for the maritime industry,” said Jody Peacock, CEO of Ports of Indiana. “As we strive to expand our economic value to the state and advance critical infrastructure priorities, Josh’s leadership will be instrumental in building strong relationships and advancing new policy initiatives involving America’s Maritime Action Plan, shipbuilding, economic development, and global trade.” 

“I am excited to join the extraordinary team at Ports of Indiana and build upon the critical mission the organization serves for the people of Indiana. I look forward to helping advance key policies and developing strong partnerships that bolster Indiana’s world-class port system, generate sustained economic growth and enhance trade connectivity for Hoosiers,” said Webb.

A native of East Central Indiana, Webb earned his bachelor’s degree in political science and government from Ball State University and completed a graduate certificate in Public Management from Indiana University Indianapolis. He currently resides in Noblesville with his wife, Natalie, and their two sons and daughter.

Congresswoman Nanette Barragán recently honored Otis Cliatt II, President of PHL, with the Black History Month Trailblazer of the Century Award “in recognition of his leadership and commitment to a more sustainable San Pedro Bay region.” The award was presented during the Congresswoman’s Annual Black History Month Commemoration, celebrating 100 years of Black History Month.

Under Cliatt’s leadership, PHL piloted the first zero-emission locomotive in the San Pedro Bay port complex, which is part of its commitment to lower emission technology. For almost three decades, PHL says it has “consistently demonstrated its focus on modernizing operations through cleaner, lower-emission solutions that strengthen sustainability and drive regional innovation.”

The recognition event took place on Saturday, Feb. 21, at the Michelle Obama Neighborhood Library in Long Beach, where community leaders gathered to honor trailblazers making a lasting impact.

“Otis’s leadership reflects a deep commitment to innovation, operational excellence, and environmental responsibility,” said Peter Gilbertson, CEO of Anacostia Rail Holdings, PHL’s parent company. “He is a key member of a team at PHL that has not only transformed rail operations within the port complex but has also delivered meaningful environmental benefits to Long Beach and Los Angeles.  We are incredibly proud of his commitment.”

This recognition, the company says, “underscores PHL’s continued dedication to building a more sustainable future while also strengthening the economic and environmental vitality of the San Pedro Bay region.”

Monica Deoras has been appointed, effective Feb. 9, as an attorney-advisor to Thomas Jayne, the Management Member of the U.S. RRB, an independent federal agency headquartered in Chicago. In this role, she will advise and counsel on a variety of financial, management, and legal issues affecting the RRB’s benefits and programs.

Prior to her appointment, Deoras was the Senior Counsel for Nuclear, Security & Environmental at the Bechtel Corporation for three years. In this capacity, she worked on business and project development involving nuclear plants in the Czech Republic, Bulgaria, Sweden, the United Kingdom, as well as the United States. She was also involved in key support activities for the Terrapower Natrium advanced-reactor project.

Before working for Bechtel, Deoras was Assistant General Counsel at True Commerce, a private equity firm specializing in cloud computing applications, for 11 months, and more than 12 years at Westinghouse Electric Company. At Westinghouse, she served in a Senior Counsel capacity for about nine years, working on various domestic and international projects dealing with nuclear energy. She then spent her last three years at the company as Assistant General Counsel, serving as lead attorney for global compliance issues.

Earlier in her legal career, she served as General Counsel for two information technology firms, worked as an associate at international law firm Reed Smith LLP, and served as a judicial clerk for two Pennsylvania state court judges.

Deoras earned a Master of Laws degree from Chicago-Kent College of Law and her Juris Doctor from the University of Pittsburgh School of Law. Her undergraduate degree was a Bachelor of Business Administration in Finance from the University of Texas. She has also served as an adjunct instructor at the University of Pittsburgh School of Law and is currently a board member for the Western Pennsylvania Chapter of the Association of Corporate Counsel.

She replaces Erin Brandenburg, who left the RRB after almost two years to accept a position with the Judicial Conference of the United States.

The post People News: Ports of Indiana, PHL, RRB appeared first on Railway Age.

TETL on Feb. 25 announced that it has completed a 2,000-foot track expansion at its Big Spring, Texas, transload terminal, “increasing terminal capacity and strengthening its rail-served logistics infrastructure to support continued growth in energy and industrial commodity volumes.”

The expansion, TETL says, brings the terminal’s total rail footprint to more than 37,000 feet of track. The facility is served by UP and operates 24/7 with in-house switching and material handling capabilities. The additional track capacity increases throughput for pipe and oversized materials while maintaining flexibility to handle a diverse mix of commodities, the company noted.

“With this expansion, we are increasing our ability to efficiently manage higher car volumes, improve velocity through the terminal, and provide our customers with more reliable, scalable transload capacity,” said TETL President Andy Branaugh. “Big Spring is a strategic location for our network, and this investment positions the terminal to support long-term customer growth.”

The expanded infrastructure, TETL adds, “provides customers with greater flexibility for transloading, reducing congestion, and improving coordination across first- and last-mile logistics.” The project is part of TETL’s broader strategy to “invest in rail infrastructure, expand terminal capacity, and enhance service reliability across its network.”

UP’s partnership with Heartland Co-op reached recently reached a major milestone as the new grain shuttle facility in Millerton, Iowa, is now fully operational and handling its first train loads. This state-of-the-art site, the Class I says, “strengthens service for farmers in south central Iowa and expands access to key domestic and export markets across UP’s network.”

This achievement reflects close collaboration between Heartland Co‑op and UP teams across Operating, Marketing and Sales, Service Design, Network Economic and Industrial Development, Real Estate and Public Projects, the Class I noted. “The Millerton facility represents a shared, long‑term investment in Iowa agriculture and continued growth across the region’s grain market,” UP said.

“Heartland Co‑op’s investment alongside Union Pacific underscores our shared commitment to long‑term growth,” said UP Director, Marketing and Sales Emily Peters. “This new site strengthens our presence in the region and deepens our grain origination foundation.”

The NCRR announced Feb. 26 that it will invest up to $600,000 to build critical rail infrastructure for US Forged Rings Inc.’s new manufacturing facility in Hertford County. The company plans to invest $875 million for the three-phase project and create 625 full-time jobs with an average annual wage of $80,500.

The project, NCRR says, will connect the site to freight rail through a newly constructed spur designed for the company’s daily operations and long-term growth. US Forged Rings will focus on large-scale metal fabrication for the energy industry, producing steel piping and specialized components for industrial customers across the country.

“This investment is about more than track. We’re building opportunity in Hertford County, we’re strengthening North Carolina’s manufacturing footprint and we’re making sure this state is ready for long-term growth driven by freight rail,” said NCRR President and CEO Carl Warren.

The rail project will include ballast, ties and rail turnouts along with engineering, drainage, signal work and other improvements necessary to serve the site. Once operational, US Forged Rings will use the rail line to receive and distribute at least 1,825 rail cars each year.

Through NCRR Invests, the NCRR uses private revenue, not taxpayer dollars, to fund rail projects that attract new employers and expand existing industry to keep North Carolina competitive.

In addition to the Office of Governor Josh Stein, the NCRR supports this project along with the North Carolina Department of Commerce, the Economic Development Partnership of North Carolina, the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Departments of Transportation and Environmental Quality, CSX Transportation, Dominion Energy, Hertford County and its Board of Commissioners and the Hertford County Economic Development Department.

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