Prototype News

The agency joins several other railroads, including Wheeling & Lake Erie (W&LE), East Penn Railroad (ESPN), Genesee & Wyoming (G&W), Reading & Northern (R&N), Pennsylvania & Southern (P&S), Nevada Northern Railway Museum (NNRY), and North Shore Railroad (NSHR), in painting a locomotive a in red, white, and blue scheme as part of a tradition started during America’s Bicentennial in 1976.

The post NJ Transit Introduces New Patriotic Paint Scheme appeared first on Railway Age.

“The train’s annual journey embodies the spirit of the holidays, bringing families and neighbors together while helping those in need in our communities,” the Class I said.

“Year after year, the CPKC Holiday Train proves that generosity and community spirit know no bounds,” said CPKC President and CEO Keith Creel. “Our heartfelt thanks go to everyone who came out to see a show, donated to this great cause, and made the season a true celebration of giving. The incredible support we receive reminds us of what is possible when we come together with kindness and purpose.”

Holiday Train Highlights:

• Since 1999, the CPKC Holiday Train has raised more than $28.3 million and collected more than 5.6 million pounds of food for local food banks in Canada and the U.S.
• The 2025 Holiday Train hosted 194 live music shows in six provinces and 13 states featuring performances by artists such as Barenaked Ladies, Tyler Shaw and American Authors.

Additionally, the spirit of the holidays stretched into Mexico where CPKC operated the Tren Navideño, a dazzlingly decorated train that visited communities across Mexico, continuing a tradition that began in 2010.

The post 2025 CPKC Holiday Train Raises Record $2MM appeared first on Railway Age.

Total carloads for the week came in at 206,674, a 10.5% drop-off, and intermodal volume was 280,464 containers and trailers, a 4.3% decrease compared with 2024, according to the AAR.

For the week ending Dec. 20, 2025, two of the 10 carload commodity groups posted an increase compared with the same week in 2024. They were grain, up 1,294 carloads, to 23,272; and motor vehicles and parts, up 177 carloads, to 16,024. Commodity groups that posted declines included coal, down 9,571 carloads, to 51,534; miscellaneous carloads, down 8,235 carloads, to 1,044; and chemicals, down 3,662 carloads, to 31,508.

For the first 51 weeks of 2025, U.S. railroads reported cumulative volume of 11,320,426 carloads, up 1.5% from the same point last year; and 13,851,979 intermodal units, up 1.6% from last year. Total combined U.S. traffic for the first 51 weeks of this year came in at 25,172,405 carloads and intermodal units, rising 1.5% from the same period in 2024.

North American rail volume for the week ending Dec. 20, 2025, on nine reporting U.S., Canadian, and Mexican railroads totaled 310,557 carloads, down 8.7% from the same week in 2024, and 361,679 intermodal units, down 3.9% from prior-year period. Total combined weekly rail traffic in North America was 672,236 carloads and intermodal units, a 6.1% decrease. North American rail volume for the first 51 weeks of this year was 34,645,846 carloads and intermodal units, rising 1.4% from 2024.

Canadian railroads for the week ending Dec. 20, 2025, reported 89,678 carloads, dipping 3.5%, and 66,363 intermodal units, falling 3.9% from the same point last year. For the first 51 weeks of 2025, they reported cumulative rail traffic volume of 8,258,288 carloads, containers, and trailers, up 2.1%.

For the week ending Dec. 20, 2025, Mexican railroads reported 14,205 carloads, declining 12.5% from the same week last year, and 14,852 intermodal units, gaining 5.5%. Their cumulative volume for the first 51 weeks of this year came in at 1,215,153 carloads and intermodal containers and trailers, down 5.5% from the year-ago period.

The post AAR: U.S. Carloads, Intermodal Down for Week 51 appeared first on Railway Age.

A Denver, Rio Grande & Western SW1200 recently arrived in Utah after being acquired by the Promontory Chapter of the National Railway Historical Society. 

Rio Grande 133 was built in 1965 and spent years working in Utah before heading east to South Dakota, where it operated at various grain elevators. It eventually ended up in Iowa. In early 2024, it was announced that the locomotive had been donated to the NRHS chapter by the Southeast Farmers Coop. The engine remained in Iowa until late 2025, when it moved west to Utah, where it will be put on display at the Utah State Railroad Museum in Ogden, pending a cosmetic and operational restoration.

The group is currently raising $15,000 to acquire a new set of batteries, preserve and improve its original Rio Grande paint, and address some rust issues. Donations can be made through GoFundMe.

—Justin Franz 

The post Rio Grande SW1200 Back Home in Utah appeared first on Railfan & Railroad Magazine.

We hosted a former Class I CEO to review the recent Union Pacific-Norfolk Southern merger application. He sees a very strong filing with acceptance likely though not until 2027. The CGP (Committed Gateway Pricing) solution enhances competition and should pass STB’s test. The network plan supports disclosed truck conversion opportunities in transcontinental and watershed lanes. Competitors are likely compelled to adapt and could eventually propose their own combinations.

Our panelist (who prefers his identity not be disclosed) believes UP and NS have put forward a very strong application that is likely to be accepted, though finalized likely in 2027. Review could likely take longer than planned, and a 1Q27 timeframe for a final decision is reasonable with little possibility that the process can be expedited. We believe this could very well get pushed to later in the 1Q27 quarter. Public comments on the merger application’s completeness are due 12/29/25. Overall, Our panelist views the filing as adequately showcasing enhanced competition with no glaring omissions on competition or concessions.

CGP effectively does the job of enhancing competition by offering shippers more choices. Traditional gateway pricing has been limited to some lanes in the I-5 corridor and allows a captive shipper to gain access to a competing railroad at pre-determined prices. UP has moved to offer this to all captive shippers of CSX and BNSF across all applicable lanes, significantly expanding choice. A fixed pricing matrix significantly speeds up the transcon’s quoting speed. Additionally, UP has sworn off pricing in excess of rail inflation (plus fuel) on these CGP hauls while also committing to prevailing service standards. Our panelist believes this will measure favorably to the STB’s competition test.

The disclosed operating and pricing plan fully tracks with intent to convert significant truck freight to rail. Seven of 10 terminal expansions are in the watershed region, with our panelist emphasizing that very little capacity has been constructed on these lanes so far. His view aligns with our analysis on revenue synergy upside from watershed. He also expressed high confidence in the transcon piece, noting that 4 out of the disclosed 6 new intermodal lanes will drive significant competitive advantage for the transcon. The Port of LA to gain import competitiveness as a result, taking share from the Panama Canal. Lastly, our panelist noted that auto freight conversions to rail remain an underappreciated aspect of merger synergies.

STB intends to focus on shippers’ concerns, so some concessions might be required but likely will be established on a case-by-case basis. The STB will likely require that the transcon keep CGP in place through the long oversight period that will be mandated in a potential approval. Opposition from competing Class Is and unions are unlikely to factor much in the regulators’ review. Our panelist is not surprised that the combination sees only three 2- to-1 shippers and views this is as a very manageable issue for UP.

Competing Class I’s would necessarily have to take service-improving actions to adapt to this proposed transcon, including potentially combining. The suite of actions includes 1) additional capital spend to bolster service, 2) entering alliances among the remaining Class I’s, 3) eventually joining the CGP regime with the UP/NC transcon and 4) exploring potential combinations among each other. Our panelist sees little chance of favorable outcomes from the STB for Class I competitors and would thus not be surprised to eventually see competing rails propose a combination of their own.

The post Former Rail Executive: UP-NS Deal Likely to Get Done & Other Views appeared first on Railway Age.

In May, GATX Corp. and Brookfield Infrastructure Partners L.P. entered into a definitive agreement to acquire Wells Fargo’s rail operating lease portfolio of approximately 105,000 railcars for $4.4 billion. On Dec. 23, the joint venture partners announced that they have received all required regulatory clearances to complete the transaction, which GATX anticipates will close on or about Jan. 1, 2026.

Initial joint venture equity ownership will be GATX (30%) and Brookfield Infrastructure (70%), with GATX having the option to acquire 100% of the joint venture equity over time. Additionally, Brookfield Infrastructure has entered into an agreement to directly acquire Wells Fargo’s rail finance-lease portfolio, composed of approximately 23,000 railcars and approximately 440 locomotives. GATX will serve as manager of the railcars in the joint venture and of the finance-lease railcars and locomotives directly owned by Brookfield Infrastructure.

Wells Fargo’s 105,000 railcar operating lease portfolio consists primarily of freight cars (95%), spread across a diverse mix of specific car types.Fleet utilization when the deal was announced was approximately 97%.

Initial equity ownership in the joint venture will be shared between GATX (30%) and Brookfield Infrastructure (70%). GATX will have commercial and operational control of the joint venture assets and will manage all assets on behalf of the partners. “GATX will hold a series of annual call options that, if exercised, will enable GATX to acquire up to 100% of Brookfield Infrastructure’s equity interest over time,” the company said. “If each annual call option is exercised, GATX would acquire Brookfield Infrastructure’s equity interest in 10 years or less. GATX’s initial equity contribution will be approximately $400 million and will be funded through general operating cash flow and financing activity. Future call options, if exercised, also will be funded through general operating cash flow and financing activity and will fit manageably within GATX’s ordinary capital investment plan. It is expected that the joint venture will be a static pool of assets. GATX’s current and future investment and growth initiatives across its businesses are expected to be unaffected by this acquisition.”

In addition to the partner equity contributions, Wells Fargo Securities, LLC, BofA Securities, MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation (SMBC) are providing the joint venture with a fully underwritten $3.2 billion, five-year unsecured term loan and a $250 million unsecured revolving credit facility. BofA Securities acted as the sole financial advisor to GATX and Brookfield Infrastructure. Mayer Brown is serving as legal counsel to GATX. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Brookfield Infrastructure.

“Given GATX’s commercial and operational control of the joint venture assets, it is expected that the joint venture will be consolidated on GATX’s financial statements,” GATX noted. “It is expected that Brookfield Infrastructure’s initial joint venture equity contribution, a Non-Controlling Interest (NCI), will be presented on GATX’s balance sheet as common equity. GATX’s post-acquisition credit and return metrics are expected to be generally in line with current metrics.”

“This is an outstanding opportunity to build on GATX’s leading North American platform,” said Robert C. Lyons, President and CEO of GATX. “Throughout our 125-plus-year history, we have developed unique asset, commercial and operational expertise that positions us to acquire and integrate this fleet. Importantly, by acquiring the assets in this manner, we will maintain the financial flexibility and capacity to continue growing all our businesses while capitalizing on the value creation opportunities inherent in the assets acquired. We will work closely with customers to ensure an efficient transition to GATX’s commercial and operational platform. The acquisition will enhance GATX’s fleet diversification, providing additional opportunities to serve our customers. In the first full year after closing, we expect the impact of the transaction to be modestly accretive to earnings per share, with more material contributions thereafter.”

GATX’s global portfolio of assets includes tank and freight railcars, commercial aircraft spare engines, and tank containers. BIP is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager, with more than $1 trillion of assets under management.

“The acquisition of Wells Fargo Rail by a partnership of GATX with Brookfield Infrastructure represents another private equity reach into operating lessor railcar ownership,” comments Railroad Financial Corp. President and Railway Age Financial Editor David Nahass. “However, in this case, Brookfield has partnered with a knowledgeable and respected partner in GATX, so the deal takes on a different spin. Rumors about a possible sale of Wells Fargo have been circulating for months, but this seemingly negotiated deal demonstrates the benefits of size and of relationships.

“It seems like a savvy win for GATX, which has maintained the option to acquire all of Wells Fargo’s operating fleet without committing 100% of the equity and balance sheet capacity up front. This can cap Brookfield’s upside in the deal but also give it some certainty of return. But acquiring the operating responsibility and oversight for the fleet gives GATX a market position that is almost double its existing fleet size today (~113,000) and gives it a control position over roughly 23% of all operating lessor-owned railcars (~944,000).

“Industry watchers will focus on the very interesting per-car price (without having great detail about the overall age and consistency of the Wells Fargo fleet), which seems to be a very reasonable $42,000 per car.

“After the CPKC merger and even today there are always discussions about “the next merger.” Perhaps the same thought process needs to be applied to railcar operating lessors.”

The post GATX, Brookfield Infrastructure JV Acquiring Wells Fargo Rail Assets (Updated 12/23/25) appeared first on Railway Age.

Union Pacific and Norfolk Southern’s growth-oriented merger argument remains sound, but the bid-ask spread on competitive concessions remains unknown until the rails respond. Downstream, we view today’s filing as constructive for domestic intermodal (Hub Group best positioned to benefit mid-term, in our view) and better-than-feared for Wabtec’s locomotive businesses. We put our pencils down on our initial review of the UP-NS STB merger application, sharing our initial thoughts on the impact on UP-NS and their suppliers and growth partners below.

Tops Down – Update on Synergies. Gross revenue synergies increased slightly and dyssynergies (concessions to other rails) declined notably, driving approximately $1 billion of incremental EBITDA synergies on a net basis vs. September’s outlook. UP’s updated assessment of potential markets (both intermodal and carloads, particularly in “watershed” region) added ~$250 million in net revenue synergies, but the largest driver of the net increase was the $750 million removal of previously outlined dyssynergies. Ultimately, UP believes their combination has already made a profound effect on enhanced competition pointing to recently announced partnership agreements and offer “Committed Gateway Pricing” (CGP) to allow shipper access to their combined network. Cost synergies remain unchanged at $1 billion while planned capital investment increased slightly to $2.1 billion (+$100 million vs. prior). UP also newly outlined $133 million of annual capex savings by Year 3, driving some slight upside to their free cash flow target to $12 billion-plus (up from ~$12 billion).

The Big Question – Gateway Access. We’re reserving our judgment on what UP’s big competitive offer of CGP is and isn’t until we see the other rails’ responses. On paper, it sounds reasonable, but it’s complicated, and the devil will be deeply in the details. We have no doubt the other Class I’s will unearth every imaginable issue with this as a tool to enhance competition and wait for their official counter-arguments to build a more thoughtful opinion of our own.

Tops Down – Revenue Build. All in, traffic gains are expected to generate $4.2 billion of incremental revenue (+11% vs. UP/NS’s combined 2026 consensus base), translating into $2 billion of net revenue EBITDA synergies (+10% vs. UP/NS 2026 consensus). Forecasts indicate an annual growth opportunity of 1.4 million intermodal loads and 425,000 carloads of manifest, bulk and auto products, with nearly 500 million tons of steel, grain, lumber, chemicals and manufactured goods to originate or terminate in the watershed market. Of that growth, 75% is modeled to come from the highway (mentioning conversion of 105,000 annual carloads from trucks after transforming watershed markets to single-line service) while the remaining 25% will be taking share from rails.

Hub Group, Schneider National, J.B. Hunt – IMC Takeaways. The merger application was constructive for intermodal, and specifically asset-based IMCs. The already aligned UP/NS partner HUBG wrote a glowing support letter arguing the merger would help realize intermodal’s growth potential in the U.S. economy and enable manufacturing re-shoring, positioning itself as a flagship partner of the combined railroad but stopping short of sharing its own growth projections. Knight Transportation also wrote in support of the deal but didn’t share projections for growth either. Interestingly, neither JBHT, SNDR, nor STG Logistics contributed letters of support. Higher level, Oliver Wyman’s analysis of intermodal’s share gain potential from the merger (incremental +1.2-1.4 million domestic intermodal units) was tops-down without IMC-specific conclusions. We’d also note that projected growth capital to drive merger synergies is heavily skewed to supporting intermodal capacity.

Wabtec – Locomotive Investment Takeaways. The bad news? UP-NS doesn’t anticipate buying any new locomotives to support its growth, relying on the buffer of parked locomotives at both rails of ~2,500 today (7,600 total road locomotives less 5,100 active, isolating the high-horsepower main line units that WAB focuses on). The better news? Neither UP nor NS have been buying new locomotives anyway, as they’ve invested in modifications where WAB completely overhauls existing locomotives in a capital-efficient manner. The merger application’s growth strategy calls for re-activating ~800 more road locomotives over the 3-year integration period on a current active base of ~5,100, which approaches the last 3 years’ modification commitment of ~300 WAB units/year combined for UP-NS. Additionally, their estimates suggest that optimizing the network would only shed ~60 active road locomotives from efficiencies before the growth stage drives higher locomotive needs. In short, this analysis doesn’t suggest the merger is a growth opportunity for WAB with the combined railroad, but it appears far more “business as usual” than the bear case of “UP-NS mod demand will collapse” that emerged immediately following the merger announcement in July. To quote the application, the “… ability to optimize locomotive assignments across a combined fleet will also create a sufficient buffer such that it will have an opportunity to remanufacture older locomotives to meet future demands.”

Wabtec – Locomotive Servicing Takeaways. There has been a lot of ink spilled on the risk to modified locomotive capex from UP and NS post-merger, but we’ve also been concerned about WAB’s steady and lucrative bread-and-butter outsourced locomotive parts and maintenance business (reported in services and with backlog) potentially being on the chopping block. We’ve reviewed the cost synergy breakdowns and discussion, and there’s zero mention of insourcing this type of work from either railroad, which we view as a great outcome for WAB vs. a less prominently discussed merger risk.

The post Merging Lines – First Take on UP-NS Application appeared first on Railway Age.

She succeeds Charlene Polege, who stepped down from the role earlier this month.

Trans brings more than 30 years of human resources experience in public service, public safety, and the nonprofit sector primarily in Denver and Colorado Springs. She served most recently as Chief of Staff for Denver Rescue Mission, where she led a campaign “to elevate employee experience, including initiatives that reduced overall employee turnover,” according to RTD, which provides light rail, commuter rail, bus, on-demand, paratransit, airport, and special event services in eight counties.

Previously, Tran was Chief Human Resources Officer for the Colorado Department of Human Services and led statewide negotiations for the Colorado Workers for Innovative and New Solutions (COWINS) collective bargaining agreement representing 27,000 employees, which RTD said was the first agreement of its kind in Colorado state government. Tran also worked for the City and County of Denver as Director of Human Resources for Public Safety, overseeing more than 7,000 civilian and sworn employees while managing labor relations and negotiations across six collective bargaining agreements.

Tran earned a Master of Business Administration, with dual concentrations in HR management and leadership, as well as a Bachelor of Science in business administration from the University of Colorado. She holds three professional certifications: Society for Human Resource Management, Human Resources Certification Institute, and Public Sector Human Resources Association. Tran is also a member of the SHRM Executive Network, and works on the El Pomar Emerging Leaders Program’s Asian American Advisory Council and the University of Colorado at Colorado Springs School of Business Career Coaching Program.

“I am incredibly honored and excited to serve as Chief People Officer at RTD,” Tran said during the Dec. 22 announcement of her appointment. “Our dedicated employees are the driving force behind our mission of making lives better through connections I am committed to equipping every member of our team with the resources, training, and support necessary to advance that mission by providing safe, reliable, and efficient public transportation services that serve our communities across the Denver metro area.”

• For Denver RTD, FY26 Budget Tops $1.5B
• Denver RTD Releases Draft 2025 Finishing FasTracks Report

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While Amtrak has started upgrading its maintenance facilities to support major fleet acquisitions, including NextGen Acela, Airo, and planned Long Distance trains, developing and implementing a strategic plan would help the company “make better-informed decisions about its long-term facility needs,” and “fully implementing a management framework” for facility upgrades would help it “gain efficiencies and other benefits not apparent from managing these projects individually,” the latest Amtrak Office of Inspector General (OIG) report has found (download below).

This report, “Major Programs: Improved Planning for Maintenance Facility Upgrades Could Help the Company Better Meet Its Fleet Goals,” is the result of OIG’s audit of Amtrak’s National Facilities program. “Our objective was to assess the company’s management of the program and to identify any risks to achieving its goals,” said the OIG, which conducted its work from December 2024 through December 2025 in Seattle, Wash.; Boston, Mass.; New York, N.Y.; Philadelphia, Pa.; and Washington, D.C. 

Amtrak is spending an estimated $4 billion to upgrade and modify some of its maintenance facilities in support of its $8 billion (at minimum) new fleet, but two key “challenges … have delayed its progress,” according to the OIG. They are:

1. Incomplete strategic planning: Amtrak’s facility planning “has lagged behind its fleet planning by about 15 years even though the two efforts are closely interconnected,” the OIG said.
2. The lack of a management framework: Amtrak “is separately managing dozens of facility projects rather than managing them as a single, coordinated effort, as called for by company and industry standards,” the OIG said.

As a result, “some facilities will not be ready in time to service the company’s new trains, which could hinder its ability to fully operate the new equipment at the intended service levels,” the OIG reported. “Instead, the company may need to store some new trains intermittently, which could postpone the capture of additional revenue. Further facility delays—which remain a risk—would add to the existing delays in fully operating its new fleets.”

To address Amtrak’s incomplete strategic planning and lack of a management framework, the OIG recommended that:

• Amtrak Executive Vice President, Strategy and Planning Jennifer Mitchell “[c]ontinue to develop and implement a joint strategic fleet/facilities plan. The plan should define company goals, timelines, and next steps to ensure that the company’s fleet and facilities efforts align. The plan should also include an inventory of existing facilities and a method to continuously assess which modifications are critical to support future operations and reprioritize, as needed.” Mitchell, in commenting on a draft of the OIG report, agreed with the recommendation. “Management stated that the company finalized the fiscal year 2026 Strategic Fleet and Facilities Plan in November 2025 and that this plan addresses the topics noted in our recommendation,” the OIG reported. “Management also stated that the company initiated development of three documents that lay out more detailed strategies for addressing fleet acquisition, facility development, and funding and financing of fleet and facilities projects. The target completion date is June 30, 2026.”
• Amtrak Executive Vice President, Capital Delivery Laura Mason “[d]evelop and implement a management framework for … facility upgrades, including a management plan with the requisite components outlined in company and industry standards. This should include a risk management process and tools, such as a risk register.” In commenting on a draft of the OIG report, Mason agreed with the recommendation, according to the OIG, and the “target completion date is March 31, 2026.”

• OIG: Amtrak Has Opportunities for Improvement on HTP
• Amtrak Breaks Ground on Southampton Rail Yard Modernization Project in Boston
• Amtrak and Partners to Break Ground on Ivy City Rail Yard Modernization Project in Washington, D.C.
• Amtrak Awards Three Design-Build Contracts for East Coast Rail Yard Modernization Projects
• Amtrak King Street Yard Upgrade Under Way
• Amtrak OIG: LDFR Program ‘High Risk’

The post OIG to Amtrak: Improved Facilities Planning Needed to Support New Trains appeared first on Railway Age.

Northumberland, Pa.-based North Shore Railroad Company & Affiliates (NSHR) on Dec. 22 rolled out a tribute to America’s 250th anniversary: NSHR 2238.

Local artist Pedro Reyes hand-painted symbols of “our nation’s liberty and independence,” according to NSHR, whose North Shore Railroad was named Railway Age’s 2017 Short Line of the Year.

“While there are many commemorative paint schemes and vinyl wraps on locomotives (or murals on walls depicting locomotives), this is the first, documented time a locomotive has been painted as a mural,” the Central Pennsylvania short line company said.

On the first side, NSHR 2238 displays:

• “George Washington crossing the Delaware River (a notable turning point in the Revolutionary War).”

• The “Declaration of Independence (as penned by Thomas Jefferson, and signed on July 4, 1776).”

• The “Liberty Bell (believed to have first rung in Philadelphia after the reading of the Declaration of Independence).”

Displayed on the second side are:

• A “bald eagle flying over ‘amber waves of grain’ by ‘purple mountains majesty’ as sung in, America the Beautiful.”

• An “American flag, waving proudly, colored in red (meaning valor and bravery), white (meaning purity and innocence), and blue (meaning vigilance, perseverance, and justice).”

• The “Statue of Liberty (a gift from France for the centennial celebration of the signing of the Declaration of Independence).”

• “‘Oceans, white with foam’ as written in the song, God Bless America.”

Other features on display include:

• One stack showing “Paul Revere’s lantern (a symbol of his ride, alerting the colonists that the British were coming)” and the other stack showing “a cloud of black gun powder (symbolizing the war fought and won by Colonial Soldiers).”

• On the cab, below the hood, is the phrase “IN GOD WE TRUST,” and on top of the cab roof is “the full inscription found on the Liberty Bell (derived from Leviticus 25:10), ‘Proclaim liberty throughout all the land unto all inhabitants thereof.’”

• On the cab door is “the Mayham Tower, a 30-foot tower designed by Major Hezekiah Mayham, which was built and used in Augusta, Ga., 2,238 days into the war. [It] symbolized one of the major turning points in the Revolutionary War in the south … [and] the countless battles it took for our nation to claim our independence.”

• The back of the cab displays “red, white, and blue fireworks (fireworks being a tradition set by John Adams from America’s inception).”

“We are blessed to have such a talented artist in our backyard,” NSHR President and CEO Jeb Stotter said of Pedro Reyes’s work. “If we did not have total faith in him and his work, this engine would never have been repainted. We knew from the word, ‘Go,’ that Pedro was the perfect partner for this project, and we were right.”

“We wanted our locomotive to be more than a patriotic tribute,” NSHR Treasurer Diana Williams noted. “We wanted it to honor the 250th anniversary and history of this great nation.”

“We love and admire the engines that have been presented in celebration of America’s Semiquincentennial thus far,” added Loni Martz Briner, NSHR PR and Media Manager. “However, we are doing something very different. One thing is for certain, this locomotive is now a beautiful piece of American history. The best word I can use to describe her is EPIC!”

No. 2238 is slated to travel NSHR’s system, with scheduled photo opportunities and tributes in 2026, according to the railroad company, which includes the Juniata Valley Railroad, Lycoming Valley Railroad, Nittany & Bald Eagle Railroad, Shamokin Valley Railroad, and Union County Industrial Railroad, in addition to the North Shore Railroad.

This is not the first time NSHR has repainted a locomotive as a tribute. In 2024, it dedicated the LVRR 9052 (Veterans Unit) and LVRR 9050 (Memorial Unit) to United States military service members—”past, present and fallen.”

The post NSHR Unveils ‘Semiquincentennial Locomotive’ appeared first on Railway Age.

When Congress passed the Bipartisan Infrastructure Bill, Americans were promised modernization of the country’s transportation network. Roads, bridges, ports, and supply chains were all supposed to emerge faster, stronger, and more competitive. 

Several years later, the results do not match the promise. 

Projects are slow to materialize, costs have ballooned, and much of the funding has been absorbed by planning, compliance, and state-level bottlenecks rather than visible improvements.

Spending bills allocate money, but they do not create incentives for cost control, integration, or operational efficiency. In practice, many of those incentives arise outside the federal funding framework.

By contrast, freight railroads are privately owned and financed. Investment decisions are driven by market demand and shareholder discipline rather than federal appropriations. Over the past decade, railroads have invested tens of billions of dollars annually in track, signaling systems, terminals, and intermodal capacity. Projects proceed only when they improve efficiency, reliability, or network performance.

Despite moving roughly 40% of the U.S. long-distance freight by ton-mile, freight rail received little direct benefit from the infrastructure bill. At the same time, a proposed private merger between Union Pacific and Norfolk Southern now requires federal approval from the Surface Transportation Board (STB). The review focuses on whether integration would improve or impair service quality, shipper access, and competition, especially in light of service disruptions following prior consolidation. The Board has paused the transaction while it evaluates the merger’s effects on congestion, network performance, and pricing for shippers.

While the transaction involves no federal funding, it has significant implications for how freight moves across the national rail network— implications that align closely with the objectives Congress articulated in the infrastructure bill.

Supporters of the merger argue that integrating the east-west rail systems would reduce interchange delays, lower dwell times at transfer points, and reduce network bottlenecks. Fewer handoffs and smoother coordination reduce operating costs and improve reliability for shippers. Economically, the proposal builds rail capacity by improving how existing infrastructure is coordinated, rather than by building new public assets. 

That outcome aligns with the infrastructure bill’s stated objectives of improving transportation efficiency, strengthening supply-chain resilience, and reducing congestion. In this case, those gains would come from private coordination rather than federal spending.

From an economic perspective, consolidation matters if it adversely affects price and service quality. The relevant question for the STB is whether this merger would increase market power over shippers or reduce costs by eliminating coordination failures and operational friction.

Here, the economics point in the latter direction. Integrating the two rail systems would reduce transaction costs embedded in the current network, including delays from interchanges, repeated handoffs, and fragmented routing. Eliminating these frictions lowers operating costs and improves service reliability. When costs fall in competitive freight markets, those savings are passed through to shippers and consumers. On economic grounds, a transaction that lowers costs and improves performance is welfare-enhancing.

What makes this case particularly compelling is that these gains come without federal spending. The merger would expand effective transportation capacity using existing infrastructure rather than new taxpayer-funded construction. 

And the uncomfortable truth is that Washington has struggled to deliver infrastructure at scale, even with historic funding levels. Environmental reviews, procurement rules, labor mandates, and overlapping jurisdictional approvals slow projects to a crawl. The result is not only delay, but diminished ambition, as agencies optimize for compliance rather than performance.

Private infrastructure investment occurs where demand is clear, efficiencies can be realized, and long-term returns justify the upfront cost. Freight railroads cannot pursue symbolic projects or absorb persistent inefficiencies. Investments must improve reliability or lower costs, or they fail financially and impose real consequences on management and shareholders.

None of this suggests that regulatory scrutiny is unnecessary. Oversight remains essential to protect competition, ensure fair access for shippers, and prevent abuses of market power. The role of the STB is to ensure that integration improves service and lowers costs and does not restrict competition. 

On economic terms, the proposed merger is positioned to deliver the type of infrastructure improvement policymakers passed four years ago, without relying on public funds. 

Danielle Zanzalari is an Assistant Professor of Economics at Seton Hall University. She frequently researches on financial regulation, public finance and an array of economic efficiency issues.

The post How Railroads can Deliver What Congress Promised: Better Infrastructure appeared first on Railway Age.

The Nevada State Railroad Museum recently completed the restoration of Virginia & Truckee Transfer Car 1. 

The specialized flatcar was built in 1891 to transport narrow gauge locomotives between the V&T’s Carson City shop and the Carson & Colorado Railroad in Mound House, Nev. The V&T owned the C&C until 1900, when it was sold to the Southern Pacific. The car was later converted into a regular flatcar but was rarely used. In 1938, it was sold to Paramount Studios for $50 and used in films such as “Union Pacific” and “The Harvey Girls.”  In 1971, the car was sold to Short Line Enterprises and stored in Jamestown, Calif., before being donated to the Nevada State Railroad Museum in 1988.

Following the recent restoration of the V&T 1, the NSRM staff placed Dayton, Sutro & Carson Valley locomotive Joe Douglass atop the car. The 0-4-2T Porter locomotive was used to haul tailings from the Carson Valley Mill to the Douglass Mill in Dayton, Nev. Like the C&C locomotives, the Joe Douglass was maintained at the V&T shop in Carson City, meaning it was likely moved by car 1 at some point in the past.

—Justin Franz 

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Chris Orlando has been named CEO of SJRRC, which owns and operates, and is the policy-making body for the Altamont Corridor Express (ACE) commuter rail service connecting Stockton and San Jose, Calif. SJRRC is governed by a Board of Directors comprising six full-voting members from San Joaquin County and two special-voting members from Alameda County.

With more than two decades of leadership experience across public transportation, government, strategic communications, and private-sector business development, Orlando served most recently as Deputy Managing Director for the Los Angeles–San Diego–San Luis Obispo Rail Corridor Agency (LOSSAN), which oversees the Amtrak Pacific Surfliner, an intercity rail service based in Southern California. He also held leadership roles at the North County Transit District (NCTD), where his responsibilities spanned rail and bus operations, strategic planning, innovative mobility solutions, customer service improvements, government affairs, and capital funding and grant programs. Additionally, Orlando served 12 years on the San Marcos City Council, helping guide regional planning, transit-oriented development, long-range policy updates, and fiscally responsible governance. His private-sector experience includes co-founding a technology company and directing communications and strategic initiatives for national organizations.

According to SJRRC, Orlando’s “background in operational excellence, innovation, and strategic growth aligns with the Commission’s ambitious vision for the future.” In addition to his role with SJRRC, he will also serve as CEO of the SJRRC-administered San Joaquin Joint Powers Authority (SJJPA), which since July 2015 has been responsible for the management and administration of Gold Runner service, previously Amtrak San Joaquins. SJJPA is governed by Board Members representing each of the 10 member agencies along the 365-mile Gold Runner Corridor throughout the Central Valley and Bay Area.

“We are excited to welcome Chris Orlando as SJRRC’s next CEO,” SJRRC Chair Lisa Craig-Hensley said. “Chris brings an exceptional blend of executive leadership, public policy experience, transportation expertise, and strategic vision. His collaborative focused approach to drive major transit initiatives and strengthen regional mobility systems makes him the right leader to guide SJRRC into its next chapter. We also want to express our deep appreciation to David Lipari for his outstanding service as Interim Executive Director. His leadership during this transition has been invaluable, and we are grateful that he will continue to play a key role in the agency’s success as Deputy Executive Director. We look forward to working with both Chris and David as we continue building a transformative future for rail and bus in California.”

“I am honored to join the San Joaquin Regional Rail Commission as CEO,” Chris Orlando said. “I want to thank the SJRRC Board for their confidence and for the opportunity to serve in this role. SJRRC and SJJPA together oversee a vital network of commuter rail, intercity rail, and connecting bus services, and I’m excited to help advance this integrated system. The agencies have built a strong foundation of service, innovation, and regional collaboration, and I am committed to leading the next era of growth. Together with our Board, staff, and partners, we will continue to deliver reliable, forward-looking passenger rail and transit services that connect communities and expand opportunity across the region.”

SJRRC Executive Director Stacey Mortensen stepped down from her role Aug. 31, 2025, after more than 27 years of leadership.

Kathryn B. “Katie” Thomson on Jan. 7 will become Acting Secretary of MDOT, which comprises the Maryland Aviation Administration (MAA); Maryland Port Administration (MPA); Motor Vehicle Administration (MVA); State Highway Administration (SHA); and Maryland Transit Administration (MTA); as well as the Maryland Transportation Authority (MDTA) and Washington Metropolitan Area Transit Authority (WMATA).

Thomson brings more than 30 years of experience in transportation, aviation, energy, and sustainability law, policy, and operations to her new role. She served previously as Deputy Administrator of the Federal Aviation Administration, where she acted as chief operating officer for an organization of more than 45,000 employees. She oversaw a $20 billion annual budget and led initiatives to enhance safety oversight, modernize national airspace infrastructure, and strengthen workforce pipelines. A veteran of the U.S. Department of Transportation, Thomson has also served as the department’s General Counsel, supervising 500 attorneys and coordinated legal work across all modes of transportation, and as director of the Bipartisan Infrastructure Law’s implementation, managing the strategic investment of $660 billion in federal funding to modernize the nation’s infrastructure. In the private sector, Thomson was Vice president and Associate General Counsel for worldwide transportation and sustainability at Amazon, and a partner at the law firms Sidley Austin and Morrison & Foerster, with a focus on environmental and transportation law.

Thomson earned a bachelor’s degree from the University of Illinois and a law degree from the University of Pennsylvania Law School.

“I am deeply grateful to [Maryland] Gov. [Wes] Moore and Lt. Gov. [Aruna K.] Miller for this incredible opportunity to serve the great State of Maryland,” Thomson said during the Dec. 18 announcement. “My experience managing complex systems has given me a clear view of the immense potential in Maryland’s transportation network, and I look forward to partnering with the dedicated MDOT team to tackle the challenges and seize the opportunities ahead—ensuring we continue to build a future that leaves no one behind.”

Paul J. Wiedefeld stepped down as Secretary on Aug. 1; MDOT Deputy Secretary Samantha J. Biddle has been serving as Acting Secretary since then.

BLET National Vice President Pete Semenek is retiring Dec. 31, marking the end of a 34-year career as both a railroader and union leader, according to the union.

Semenek began his career in 1991 on the Soo Line Railroad when he hired out as a conductor. He was promoted in 1993 to locomotive engineer, working in the Soo Line yard in Bensenville, Ill. A member of BLET Division 790 (Chicago), he was elected as Local Chairman in 1997 and served in that position until 2011, when he was elected to General Chairman for the CP Rail System/U.S. General Committee of Adjustment. Semenek was reelected as General Chairman at quadrennial meetings in 2015 and 2019. He was elected as BLET National Vice President for a term beginning on Jan. 1, 2023, at which time he was appointed head of the BLET Arbitration Department. Semenek has also served as Labor Member-First Division of the National Railroad Adjustment Board (NRAB).

“Pete Semenek has been a tireless labor leader for more than three decades, and I am proud to have worked with him,” BLET President Mark Wallace said during the BLET Advisory Board meeting held earlier this month. “Countless BLET members throughout the United States have benefitted from his leadership as Head of the BLET Arbitration Department. He will be missed. On behalf of the Advisory Board, I extend best wishes upon his well-deserved retirement.”

“It was an honor and privilege to serve as a union officer and represent the hard working Brothers and Sisters of the BLET,” Semenek said. “It was also my honor to serve alongside the fine body of officers at the BLET National Division; they are true professionals who exude great compassion for the needs of our members.”

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System-wide ridership for November 2025 decreased 1% or 8,547 unlinked trips per day from November 2024, SEPTA recently reported.

Average daily ridership was 756,672 unlinked passenger trips across all modes.

Metro ridership declined by approximately 0.4% or 1,176 trips per day relative to this time last year. The trolley tunnel closure and bus substitution resulted in a 26% decline or 14,800 less unlinked passenger trips on the T and D but a 9% increase on the L. Average daily ridership on the B, M, and L combined grew 6% or 13,624 average weekday trips since this time last year and average daily ridership is at the highest level since February 2020. Ridership on the G grew by 9% or approximately 1,000 trips per day.

Bus and trackless trolley ridership increased 0.3% or 1,233 trips per day relative to this time last year. Saturday ridership increased by 1% and Sunday ridership increased by 4%. The five routes with the strongest year over year growth by total number of trips are: 2, 21, 40, 42, and 3. Bus alternatives to T routes experienced strong growth in November due to the tunnel closure.

Regional Rail ridership declined by 10% or 8,531 trips per day relative to this time last year due to the SLIV car shortage and the SLIV FRA safety inspection mandate.

The Quantico Station Improvements Project, a comprehensive modernization of the historic rail station serving the Town of Quantico and Marine Corps Base Quantico (MCBQ) in Virginia, has been honored with a prestigious Grand Award by ACEC Virginia.

On behalf of the Virginia Railway Express (VRE), STV served as the engineer-of-record, providing design and engineering services that transformed the historic Quantico Station into a modern, high-capacity, accessible and future-ready rail hub. STV’s scope included the design of more than 0.7-miles of new third mainline track, the extension of the station’s existing side platform, constructing a new center platform, installing three elevator towers and pedestrian bridges for safe, grade-separated, ADA-compliant access and designing a 714-foot-long retaining wall to minimize impacts to MCBQ and preserve adjacent historic structures.

These improvements, STV says, “significantly enhance the station’s capacity, enabling longer trains, improving safety and accessibility for commuters (including service members and civilians alike) and supporting growth in both passenger and freight rail services along a vital corridor in Virginia.”

“Quantico Station plays an important role in connecting communities in Virginia, and we approached this project with a responsibility to enhance that experience,” said Derek Overstreet, PE, DBIA, Vice President and Engineering Director. “Seeing this work recognized by ACEC Virginia is incredibly meaningful because it celebrates the collaboration and care that went into every detail.”

The project team will be recognized at the ACEC Virginia Engineering Excellence gala in Richmond in February.

Gov. Kathy Hochul vetoed legislation Friday that would have required New York MTA subway trains to operate with at least two workers at all times, according to a Spectrum News report.

According to the report, the bill passed by the state legislature would have permanently mandated both an operator and a conductor on all trains. Meanwhile, Spectrum News reports, the MTA is interested in moving widely towards one-person train operation (OPTO).

The Citizens Budget Commission, Partnership for New York City, Regional Plan Association, Reinvent Albany, and the Transit Costs Project at the NYU Marron Institute of Urban Management said in a joint statement that OPTO is the “global norm used by the vast majority of subway authorities across the world.”

“We strongly support efforts to provide New Yorkers with world-class public transit. This bill would have done the opposite by raising MTA operating costs and constraining the MTA’s ability to implement modern operating methods, adopt new technologies, and provide better service for riders,” the groups said.

In her own statement defending the veto, Hochul “echoed the groups’ stance on OPTO safety and savings for the MTA,” according to the report.

“This bill would cost as much as $10 million annually, reducing service, and limiting the MTA’s ability to benefit from capital investments in modern rolling stock and signals,” Hochul said in a statement, in part.

The Transport Workers Union (TWU), however, strongly supports two-person crews, citing safety concerns, according to the Spectrum News report.

TWU International President John Samuelsen posted responses on social media saying the veto was “futile” and that “conductors will be on subway cars serving and protecting Blue Collar NYC as long as the NYC Transit system exists.”

“While we are of course disappointed that OPTO was vetoed by Governor Hochul, our contract prohibits the further unilateral expansion of the practice on the subway system, and we will continue to operate the trains as we have been, and how it is safest—with both a train operator and conductor aboard. OPTO will not expand due to this veto,” said John V. Chiarello, President of TWU Local 100, which covers public transit workers in the city, in a statement.

Leaders from Amtrak and the USRC’s Board of Directors voted unanimously on Dec. 19 to approve a renegotiated agreement that will officially restore federal control of Union Station “amid efforts to overhaul the facility,” according to a report by The Hill.

According to the report, the revised agreement “gives the USRC greater authority as the operator of the station to pursue private sector investments and carry out upgrades and repairs, while Amtrak focuses on rail operations,” a U.S. Department of Transportation (USDOT) spokesperson said.

Thursday’s agreement follows an announcement from the USDOT in August that the federal government “was taking over management of Union Station as part of a broader effort by the [POTUS 47] administration to put its stamp on the District of Columbia.”

“[POTUS 47] administration officials previously pointed to Union Station as part of the District’s problem with crime and homelessness,” according to The Hill report. National Guard troops were stationed outside the transportation hub for weeks after POTUS 47 “deployed members of the military around the city as part of a crackdown on crime.”

The post Transit Briefs: SEPTA, STV, NYMTA, Amtrak/USRC appeared first on Railway Age.

Chicago, Ill.-based FreightCar America, Inc. on Dec. 22 reported completing the acquisition of Carly Railcar Components, a move that will strengthen its “aftermarket distribution business with a focus on running-repair components” and offer customers “reduced lead times and a larger catalog of ready-to-ship railcar components.”

Financial terms were not disclosed.

Founded in 1995, Carly Railcar Components distributes OEM railcar components and operates a core-exchange program for reconditioned parts. The company, with offices in Pennsylvania and Texas, serves repair shops, railroads, private car owners and other industrial customers.

FreightCar America Parts, based in Pennsylvania, has an inventory of railcar replacement parts, including specialty fabricated sub-assemblies for all freight car types (regardless of the original builder), such as open top hoppers, covered hoppers, auto carriers, gondolas, intermodal flat cars, and boxcars.

“Carly Railcar Components brings highly complementary capabilities that strengthen our position in the railcar aftermarket,” said Nicolas Randall, President and CEO of FreightCar America, a designer, producer, and supplier of freight cars and railcar parts and components that also specializes in railcar repairs, complete railcar rebody services, and railcar conversions. “Carly Railcar Components’ long-standing presence in component distribution and its established regional footprint, including a Houston-area facility in Orange, Tex., enhances our ability to serve customers with greater speed, reliability, and product availability. This acquisition advances our strategic initiatives to build complementary capabilities that deliver enhanced value to our customers.”

“We are excited to welcome Carly Railcar Components to the FreightCar America platform,” added Mike Riordan, Vice President, Chief Financial Officer and Treasurer of FreightCar America. “Carly Railcar Components has built a strong business with deep customer relationships. Combining their capabilities with our commercial and supply chain excellence will allow us to deliver exceptional value to our customers, while at the same time allowing us to realize meaningful operational improvements across the combined network. This acquisition is consistent with our disciplined capital allocation framework and is expected to be immediately accretive to FreightCar America as we scale our aftermarket business.”

• FreightCar America 2Q25: ‘Richer Product Mix, Disciplined Pricing’
• For FreightCar America, 1,250 Railcars Ordered in 1Q25
• High Expectations, Hot Market
• FreightCar America 2Q24: ‘Our Strongest Performance Yet’ Since Castaños Plant Launch
• FreightCar America Adds Tank Car Rebuilds to Portfolio
• CN Receiving Next-Gen Ore Jennies

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Alpharetta, Ga.-based Arclin has entered into a definitive agreement to purchase Eugene, Ore.-based Willamette Valley Company (WVCO), which manufactures and distributes custom products and services for the railroad (WVCO Railroad Solutions), transportation, wood and consumer products, concrete repair, and infrastructure markets.

Financial terms were not disclosed.

The acquisition will add WVCO’s engineered repair systems, specialty adhesives, and infrastructure solutions to the portfolio of Arclin, a materials science company and manufacturer of polymer technologies, engineered products, and specialized materials for the construction, agriculture, transportation infrastructure, weather and fire protection, pharmaceutical, nutrition, electronics, design, and other industries. Eight manufacturing facilities will also be added to Arclin’s 21 offices and manufacturing facilities throughout the U.S., Canada, and the U.K., and approximately 500 new team members will join Arclin’s existing 1,200-person team, the materials science company reported Dec. 18.

WVCO was founded in 1952, and celebrated in 2024 the 25th anniversary of its Railroad Solutions business unit, which supplies crosstie remediation, dispensing, railcar coating, pavement and bearing pad repair, and bridge-deck waterproofing products (scroll down for video). Among them: SpikeFast®, a remediation product for wood and composite crossties that is said to hold gauge, seal wood and prevent rot, and stop spike kill. This “liquid wood” outperforms wood plugs and air-filled foams in both lateral resistance and pullout resistance in performance tests commissioned by Class I railroads, according to WVCO Railroad Solutions.

“We are thrilled to welcome WVCO to our organization,” Arclin CEO Bradley Bolduc said. “Its innovative technologies and product portfolio perfectly complement our business, creating a beneficial combination for our customers. With a shared commitment to quality across wood products, this acquisition positions us to deliver even greater value and expand opportunities across the segments we serve.”

“The decision to sell WVCO to Arclin represents a natural progression for our business,” noted John Murray, President and CEO of WVCO. “Arclin’s world-class operational framework will accelerate our product innovation and drive sustainable growth. Combining Arclin and WVCO’s deep technical expertise, broad knowledge base and ability to rapidly deploy resources will be instrumental in driving our growth strategy. Joining Arclin is an exciting opportunity for our team and we’re eager to drive the business forward.”

“The acquisition represents a highly strategic move with clear operational efficiencies,” Arclin President Mark Glaspey added. “By combining our capabilities, we will deliver a broader portfolio of solutions to our customers, while expanding geographic reach and unlocking new growth opportunities.”

• Rail Reinforcers
• Crosstie Tech: What’s New, What’s Next
• REMSA and NRC member Willamette Valley Company hosts U.S. Rep. Letlow on tour of manufacturing facility
• SpikeFast earns praise in UK

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The grant program, USDOT says, “has been refocused to prioritize innovative ways to increase safety on American transportation, including through automated vehicles and driving systems, artificial intelligence and machine learning, digital infrastructure, and human-machine interface technologies.”

UTCs are competitively selected based on the quality of proposed research projects, planned education and workforce-development activities, and potential for moving technologies into practice, USDOT noted. The first cohort of grants awarded to 10 universities in 1988. Each UTC is a group of two- and four-year colleges and universities that come together to form a unique center of transportation excellence on a specific research topic. To date, 100 different universities have received UTC Program grants.

The UTC Program funds three types of centers: National UTCs have a national scope, Regional UTCs address regional needs as well as national priorities, and Tier 1 UTCs focus on unique and specific areas of interest. USDOT will award $33M in grants: up to $9 million over three years to one Regional UTC, and up to $6 million over three years for each of four Tier 1 UTCs.

“UTC Program grant recipients lead, innovate, and educate, enhancing and transforming America’s transportation system to prioritize safety and infrastructure durability and align with our nation’s economic and societal goals,” USDOT said. Grants can be used for transportation-related curriculum development, student support, and continuing education programs.

More information is available here.

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The Lake State Railway in Michigan has purchased four SD70ACe-T4 locomotives from Progress Rail, aided by an emissions grant, which will lead to the retirement of some older units. The new locomotives are being prepared for service at the railroad’s Saginaw shops as of this writing.

Locomotives removed from the roster include four SD50 variants and an SD40-2. The SD70ACe-T4s, numbered 6451 through 6454, are former Progress demonstrators that have been rebuilt and painted in Lake States’ blue, grey, and black scheme.

LSRC chief mechanical officer Roger Fuehring noted the support offered by Progress Rail helped make the decision on which locomotive vendor to use.

“I have managed several projects in my career which upgraded locomotive fleets for better emissions,” said Fuehring, “and I feel very comfortable we will be receiving a great product. We especially value the support Progress Rail has offered after the sale, which is critical given how much more complex these locomotives are compared to the older generation locomotives.”

—M.T. Burkhart

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As had been speculated, Union Pacific and Norfolk Southern on Dec. 19 filed their merger application with the Surface Transportation Board: Union Pacific Corporation—Control—Norfolk Southern Corporation, Docket No. FD 36873. UP and NS entered into their merger agreement on July 29, 2025, in which UP is the acquiring carrier. They described the proposed transaction as an “end-to-end combination [that] will enhance competition and deliver broad public benefits.” The four-volume, 6,700 page application—described as a “Christmas  present” by one analyst participating in the mostly scripted announcement webcast (though probably not for anyone required to study it over the Holidays)—“provides comprehensive and compelling new details” as well as “a record-breaking 2,000 letters of support from stakeholders, joining shareholders at both companies who cast votes that were 99% in favor of the merger.” UP and NS expect the transaction to be completed by “early 2027” (February of that year has been suggested). STB went as far as to deploy UP-NS Merger Resources, an area of its website dedicated to the merger application.

The merger, now dubbed “The Great Connection” (a slogan strongly suggestive of a deliberate attempt to appeal to POTUS 47’s frequent use of the word “great” and its variants, i.e., “Make America Great Again,” “I’m the greatest President in history,” etc., etc., etc.) has lofty goals. (Download Executive Summary below). UP and NS claim it will:

• “Connect the United States from coast to coast, transforming 10,000 existing lanes from interline service into faster, more efficient single-line service—eliminating time-consuming handoffs between railroads.
• “Move freight more efficiently, eliminating an estimated 2,400 railcar and container handlings and 60,000 car-miles each day.
• “Retain competitive shipping alternatives for the three customer locations out of more than 20,000 that are served by Union Pacific and Norfolk Southern but no other carrier.
• “Compete more effectively with long-haul trucking, converting an estimated 2 million truckloads of freight from road to rail annually.
• “Protect all union jobs—every employee with a union job at the time of the merger will continue to have one, and growth of the combined company is expected to create about 900 net new union jobs by the third year following the merger.
• “Further enhance competition by voluntarily creating Committed Gateway Pricing (CGP), streamlining pricing of interline moves for thousands of customer locations that otherwise may not directly benefit from the merger.
• “Keep open all existing gateways for eligible traffic on commercially reasonable terms.
• “Provide customers with a unified digital experience, with one accountable partner for their entire rail journey.
• “Invest an estimated $2.1 billion of incremental capital to support revenue and cost synergies, and expect $133 million in annual capital synergies.”

CGP, which may become as common an acronym as PSR, appears to be the strategy to alleviate concerns about reduced rail-to-rail competition. It’s described as “a condition to [STB] approval of the UP/NS merger ‘to improve the prospect that their proposal [will] be found to be in the public interest.’ 49 C.F.R. § 1180.1(d). In adopting its competitive enhancements rule, the Board recognized that ‘the quantity and quality of competitive enhancements that would be required’ would depend on case-specific factors such as ‘any merger-related harm for which feasible and effective remedies could not be devised, the amount of post-merger service disruption that would be likely to occur as a result of a particular transaction, and the amount of public benefits that could truly be expected to flow from a particular transaction.’ … CGP will further enhance competition by extending the competitive benefits of this merger to certain customers who would not otherwise benefit from the merger’s new single-line route.

“In particular, under CGP, customers shipping to or from facilities served solely by BNSF or CSX or facilities on a short line interchanging traffic solely with BNSF or CSX will have access to rates that reflect the benefits of the UP/NS merger for traffic shipped through mid-continent gateways to or from facilities served solely by UP/NS or facilities on a short line interchanging traffic solely with UP/NS. CGP will allow BNSF and CSX to directly market transcontinental service, offering one-stop shopping to customers shipping traffic between facilities they solely serve and facilities served solely by UP/NS when they interchange traffic with UP/NS in Chicago, St. Louis, Memphis and New Orleans, regardless of whether they are the originating or terminating carrier. Under CGP, UP/NS’s revenue requirements for eligible interline movements will be calculated in advance based on rates UP/NS actually used to move similar traffic. BNSF and CSX will be able to use those revenue requirements to rapidly develop independent and confidential origin-to-destination rates in response to requests by customers.”

The application notes that CGP “would remain available through the end of the oversight period imposed on this transaction.” In other words, it’s not perpetual. Volume 1 contains a 94-page Verified Statement from UP General Director of Interline Operations Katherine Novak. We’ve extracted it from the application:

The comprehensive joint Operating Plan “encompasses three major functional areas: transportation, mechanical, and engineering,” according to the application’s 229-page Verified Statement from NS Executive Vice President and Chief Operating Officer John F. Orr (Railway Age’s 2026 Railroader of the Year) and UP Executive Vice President Operations Eric Gehringer. ”In each area, the Operating Plan shows how UP and NS will integrate activities, personnel and facilities following consummation of the proposed transaction; the operational changes expected to result; and the gains in safety, service, operating efficiencies and other benefits anticipated from the merger. The Operating Plan specifically addresses the effects of integration on patterns of service, yard activity, commuter and passenger services, equipment requirements and utilization, traffic density, and labor forces. We’ve extracted it from Volume 2 of the application:

“We look forward to working with the Surface Transportation Board as it reviews our historic application to create America’s first transcontinental railroad,” said Union Pacific CEO Jim Vena. “As time and technology continue to transform how freight is delivered, our industry must keep pace and move forward, reaching underserved markets with new rail solutions and strengthening the U.S. supply chain. Customers deserve stronger, more connected freight rail, and our merger will make that happen.”

“This combination will bring together Union Pacific’s expansive Western reach and Norfolk Southern’s unparalleled access to Eastern manufacturing and population centers in an end-to-end combination,” said Norfolk Southern President and CEO Mark George. “It will create a cohesive freight rail solution with 50,000 route miles that connect 43 states and more than 100 ports.”

The Surface Transportation Board said that comments on the completeness of the merger application are due by Monday, Dec. 29, 2025. “As discussed in the Board’s Aug. 28, 2025 notice of receipt of the Applicants’ prefiling notification, the proposed transaction is classified as a major transaction under the Board’s regulations at 49 C.F.R. 1180.2(a),” STB said. ”An application for a major transaction must include substantial supporting information, detailed in the Board’s regulations at 49 C.F.R. part 1180. 

“Today’s decision invites public comments, which should solely address the completeness of the application—whether the application contains the information required in 49 C.F.R. part 1180. The Applicants may file a reply to those comments by Friday, Jan. 2, 2026 at noon EST. Comments on the merits of the proposed transaction will be sought at a later stage of the proceeding, should the Board accept the application. 

“Following this comment and reply period, the Board will make a determination on the completeness of the application, either accepting the application as complete or rejecting it as incomplete. This determination should not be mistaken for a determination on the merits of the proposed transaction. Should the Board accept the application for consideration, it will issue a procedural schedule for comments on the merits of the proposed transaction.” 

BNSF and CPKC, which from the get-go have been rather vocal about, respectively, their opposition to or deep concern about the merger, immediately released statements.

“While we are still reviewing the STB filing and will have more to say soon, what we have seen so far does not change BNSF’s opposition to the proposed merger,” said BNSF President and CEO Katie Farmer. “The transaction poses a significant threat to the U.S. economy and the American consumer through its long-term competitive harms. It would leave shippers with fewer options—driving higher rates and ultimately higher prices for consumers. This didn’t begin with customers asking for this merger, and the claimed public benefits appear to accrue primarily to shareholders. Past mergers demonstrate the risk of serious service failures with destructive impacts to customers, the U.S. rail network and the American economy.

“This is precisely why the STB strengthened its merger rules: Applicants must now prove their deal will not only preserve but enhance competition; that it serves the public interest, and its purported benefits can’t be delivered through partnerships. BNSF is confident that UP has not met these requirements. UP has a long history of making promises in past mergers that they back away from once they’ve secured approval. BNSF remains focused on achieving these same benefits through partnership and collaboration which results in streamlined service, and greater operational flexibility—delivering real, immediate benefits to customers.”

BNSF issued a UP-NS Opposition Summary:

CPKC, while not overtly opposing the merger, said it will thoroughly examine the application “from at least two perspectives: whether it complies with the Board’s 2001 Major Merger Rules and provides the STB and interested parties an adequate basis for evaluating the public interest consequences of the UP-NS proposal; and whether the UP-NS proposal is consistent with the public interest.”

“The first step in the STB’s merger review process calls for the STB to determine, by Jan. 18, 2026, whether to accept the application for consideration or to reject it as incomplete,” CPKC explained. “If the STB accepts the application, its public interest review will entail consideration of a broad and novel array of public interest concerns. Approval of this merger is not inevitable. The proposed UP-NS merger, unprecedented in scale and scope, would radically and permanently change the U.S. rail network. If approved, the merger would pose extraordinary and far-reaching risks to customers, rail employees and broader supply chains. We are confident the STB will conduct a vigorous process to assess all the short- and long-term public interest impacts of the proposed behemoth, including on the competition rail customers have today.

“CPKC will remain an active participant in that process. We encourage all interested shippers, receivers, associations, governments and other stakeholders to closely examine the application and file their own comments with the STB. All stakeholders should express their views about how this proposed merger would affect their business, including new limitations on their rail shipping options, new risks of rate pressures, and new risks to service quality. CPKC anticipates submitting comments to the STB in accordance with the procedural schedule the STB adopts in this proceeding.”

The post UP, NS Deliver 6,700-Page ‘Christmas Present’ appeared first on Railway Age.

“UP’s Chicago Service Unit is demonstrating what’s possible, delivering exceptional safety and service outcomes in one of the nation’s busiest and most complex rail environments,” the Class I recently announced. Thanks to their proactive approach to communication and teamwork, the entire service unit recently celebrated working more than 365 days injury-free.

“This achievement doesn’t happen by chance—it’s the result of consistent focus, smart decisions and a culture that values looking out for one another,” said Cerwin Fleming, General Manager, Chicago Service Unit. “Team Chicago is setting the bar high and showing what’s possible when we work together.”

The key to Chicago’s success, UP says, is a plan the whole team can follow. Safety Action Plans are one of the railroad’s signature safety programs—each terminal and service unit creates its own plan, identifying unique risks and strategies for improvement while aligning with companywide goals.

Chicago’s highly effective Safety Action Plan reinforces awareness and accountability, with a focus on engaging every individual: weekly updates confirm team progress toward Safety, Service and Operational Excellence goals; leaders discuss safety expectations in detail with new hires; and each shift starts with a face-to-face manager briefing.

“Every day is different on the railroad,” said Charlie Banks, locomotive engineer. “Clear communication and staying focused on the small details gets big results. We take care of one another out here.”

By making safety an ongoing conversation, the service unit can quickly identify opportunities and act, UP noted. This year, the team rolled out a new yard safety protocol to reinforce key behaviors when handling rail equipment, as well as empowered crews to take ownership of their work environment.

Area terminals played a key role in contributing to the team’s success: Butler, Altoona, Global III, Proviso, Yard Center and West Chicago each surpassed a full year without injuries. Global 2, Sterling and Adams are maintaining multiple-year safety records.

At UP, safety and service walk hand-in-hand—and Chicago serves as an excellent example, the Class I noted.

“A safe operation is a fluid operation—the proof is in the metrics,” Fleming said.

The Chicago Service Unit’s year-to-date performance metrics are strong across all key measures—rail car dwell is down; train velocity and on-time departures are up—meaning better service for customers.

“We’re using this as motivation to keep the momentum going and make safety a way of life,” Fleming said.

The Chicago Service Unit is a contender to win the Operating Department’s esteemed Safety Bell, presented annually to the service unit with the best overall safety record.

The CSX Mechanical Team in Columbus, Ohio, achieved 1,500 days without an FRA-reportable injury and 4,300+ days without a human-factor train accident, the Class I recently announced in an X post. “This reflects our strong safety culture. Congrats for leading by example and keeping safety first in all we do,” CSX said.

The CSX Mechanical team in #Columbus, OH, achieved 1,500 days without an FRA-reportable injury & 4,300+ days without a human-factor train accident. This reflects our strong #safety culture. Congrats for leading by example & keeping #Safety first in all we do. #SafeCSX pic.twitter.com/EtZtnhav1k

The CTA on Dec. 19 ruled that revenue of CN was below and CPKC was above their respective maximum grain revenue entitlements for the crop year 2024-2025.

• CN’s grain revenue of $1,454,604,793 was $5,913,453 below its entitlement of $1,460,518,246.
• CPKC’s grain revenue of $1,066,938,687 was $2,660,250 above its entitlement of $1,064,278,437.

CPKC now has 30 days to pay the amount by which it exceeded its 2024–2025 revenue entitlement, in addition to a 5% penalty of $133,012.

Regulations require this payment to go to the Western Grains Research Foundation.

In the 2024–2025 crop year, 49,002,694 metric tons of Western grain were moved. This, CTA says, represents a 12.1% increase in volumes compared to the last crop year, which saw 43.7 million metric tons transported. The increase in the volume of grain can be attributed to the increase in shipments for both CN and CPKC as compared to last year, according to CTA.

The Canada Transportation Act requires the CTA to determine each railway company’s annual maximum revenue entitlement (MRE) and whether each entitlement has been exceeded. The revenue entitlement is a form of economic regulation that enables CN and CPKC to set their rates for services, provided the total amount of revenue collected from their shipments of Western grain remains below the ceiling set by the CTA.

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