The Manifest Issue 9 June 12, 2026

STB swears in Kloster; UP-NS held in abeyance; NTSB renews DOT-111 push; UP fights heat kinks

The largest railroad merger in a generation is being argued in the wrong dimension, and almost no one has said so out loud

Section I

From the Field

■ From the Field

Paper over steel.

The largest railroad merger in a generation is being argued in the wrong dimension, and almost no one has said so out loud.

Union Pacific and Norfolk Southern propose to build America's first true transcontinental — fifty-two thousand miles of track, forty-three states, eighty-five billion dollars, the western network and the eastern one stitched into a single continuous line. Their argument is clean: the two roads meet end-to-end, they do not overlap, keep the gateways open and honor the rates — and where is the harm.

It is a brilliant argument. It is also conducted entirely on a screen.

Here is what four decades on the property teaches a man, the thing that does not survive translation into a merger brief: competition in railroading is not a market-structure phenomenon. It is an operating-structure phenomenon. Not the number of carriers an economist can count — the physical redundancy standing behind the number. A second route with the capacity to carry the freight when the first one floods or freezes. A second crew base whose men know that subdivision in a January whiteout. A second yard with room. That redundancy is what makes a competitor a competitor in fact, and not merely on paper.

And it is exactly the thing an end-to-end merger is engineered to remove.

The Board can weigh every remedy with total integrity and still ratify a loss it is not built to see — because the remedies it can impose are paper, and the loss is steel. The merger will close. The conditions will be written. And no tariff filed in Washington will have touched the reason why.

This week's full argument — what the merger conditions cannot reach, and why that cannot be undone:

Read the full editorial on LinkedIn →
Read this editorial standalone →
Section II

Rail & Energy Markets

■ Rail & Energy Markets
Railroad Stocks
UNP Union Pacific $268.28 +1.28 (+0.5%) CSX CSX Corp $47.37 +0.96 (+2.1%) NSC Norfolk Southern $310.53 +1.60 (+0.5%) CP CPKC $89.31 -0.22 (-0.2%) CNI Canadian National $118.27 +0.27 (+0.2%) WAB Wabtec $262.09 +8.59 (+3.4%) GBX Greenbrier $47.39 +0.44 (+0.9%) GATX GATX Corp $172.22 +0.52 (+0.3%)
Energy
CL=F WTI Crude Oil $86.17 -0.53 (-0.6%) BZ=F Brent Crude $88.67 -0.70 (-0.8%) NG=F Natural Gas $3.08 +0.00 (+0.1%)
Section III

Class I Dispatch

■ Class I Dispatch
BNSF
A twuster hit the southern side of Streator this evening. Videos show considerable damage. Streator is on the BNSF Chili Sub. Unknown if there was damage to railroad.

via Trainorders
Union Pacific
The Surface Transportation Board (STB or Board) today announced a unanimous decision accepting for consideration the revised major merger application filed by Union Pacific (UP) an
via STB
CSX

JACKSONVILLE –– CSX is the final North American Class I railroad to introduce locomotives in patriotic paint schemes to celebrate America250.

The post via RT&S

Norfolk Southern
The Surface Transportation Board today announced that it has received a revised major merger application from Union Pacific and Norfolk Southern (together, Applicants). The Board
via STB
Canadian National
Have been watching the CN local work the foundry in Waupaca Wi. They drop off coke for the foundry swapping with empties. In the train there are a number of almost PC green gons wi
via Trainorders
CPKC
WASHINGTON — The National Transportation Safety Board has renewed its call for an accelerated removal of DOT-111 tank cars from hazardous material service as a result of its
via Trains Magazine
Section IV

Transit & High-Speed Rail

■ Transit & High-Speed Rail
Notice of Petition for Extension of Waiver of Compliance
This document provides the public notice that NJ Transit Corporation (NJT) petitioned FRA for an extension of relief from certain regulations related to its shared use property.
via FRA — Fed Register
Section V

Intelligence Briefing

■ REGULATORY
The Board Gets Its Third Vote, and the UP-NS Clock Starts Over
Richard Kloster took the oath this week, and the timing is not incidental. A full Board with a fresh confirmation means the UP-NS proceeding now has the quorum it needs to do real work — which is precisely why the same Board turned around and held the application in abeyance pending supplemental information. Read those two facts together. The merger that would create the first true transcontinental Class I is not being waved through; it is being made to show its homework. Applicants now owe the Board data they apparently did not put in the original filing, and until it arrives, the environmental review sits idle. What does a railroader take from this? That the STB intends to control the tempo, not the applicants. Kloster's term runs only through 2028, which means he inherits a docket that will likely outlast his appointment. The crews dispatching trains across the proposed combined network won't feel any of this for years. But the consultants, the lawyers, and the shippers filing comments — they felt the ground shift the moment that oath was read.
■ REGULATORY
Abeyance Is Not a Verdict — It's a Leash
The Board accepted the revised UP-NS application and in the same breath held the whole proceeding, environmental review included, in abeyance. Applicants must produce supplemental information before the clock resumes. This is the procedural equivalent of a yardmaster telling a crew to hold at the signal — you're in the system, you're acknowledged, you're going nowhere until told. The interesting part isn't the pause. It's what the pause reveals: the Board does not believe it has enough to evaluate a transcontinental combination, and it is unwilling to fake the analysis to keep the calendar moving. Compare that to mergers past, where deficient filings got papered over and the consequences landed on shippers years later. (The Board has been burned before. It remembers.) For short lines and regional carriers watching to see whether their interchange relationships survive a UP-NS tie-up, abeyance buys time to organize, to file, to be heard. Use it. The window where comments actually shape conditions is open now, not after the supplemental data lands and the Board's tempo accelerates. How many parties will treat this pause as permission to wait? Too many.
■ SAFETY
The DOT-111 Argument Nobody Wins and Nobody Ends
The NTSB is again calling for a faster phase-out of DOT-111 tank cars in hazardous materials service. Again. That word is doing all the work in this item. The Safety Board has been making this recommendation in one form or another since before Lac-Mégantic burned, and the regulatory machinery has answered with timelines that stretch toward the horizon and retrofit schedules that bend to fleet economics. Here is what a trade reporter misses: the DOT-111 isn't a villain, it's a balance sheet. There are tens of thousands of them, they're owned by lessors and shippers rather than the railroads that haul them, and every accelerated retirement date is a fight over who eats the capital loss. The carriers move the cars they're handed. The shippers load what they own. The lessors protect their asset lives. Nobody at the operating level gets to choose the equipment, and everybody at the operating level lives with the consequence when a 111 splits open in a derailment. The NTSB knows all of this. That's why they keep saying it. Recommendation without authority is just a record being built for the next investigation.
■ SAFETY
UP's Heat-Kink Fix and the Physics That Doesn't Negotiate
Union Pacific has rolled out a solution for heat-related track conditions, and the timing tracks with a summer that arrived early and mean. Rail expands. That is not a policy position; it is steel doing what steel does at temperature, and continuous welded rail has nowhere to put the expansion except into lateral force against the ties and ballast. The result is the sun kink, the buckle, the slow order that ripples through a subdivision and turns a fluid railroad into a parking lot. What UP is doing matters less than why it has to. The industry built its network on CWR because jointed rail was a maintenance burden and a ride-quality problem. The trade was real: smoother track, fewer joints to inspect, and a new vulnerability written into the rail the day it was laid. Every heat-restriction program is an admission that the railroad is managing a known failure mode rather than eliminating it. Detector technology, rail-temperature monitoring, predictive slow orders — these are good tools. They don't change the physics. They just give the dispatcher a better guess about when the desert is going to bend the iron.
■ REGULATORY
Top Gun Billed, Horror Show Delivered — The Speed-Versus-Safety Hearing
A Senate hearing was dressed up as a vision for transportation technology and, by SMART-TD's account, turned into something darker for the people who actually work the trains. Strip away the framing and the question underneath is old: how fast can you run a railroad before speed starts eating safety? The AAR went to the Hill to talk innovation. The operating crafts heard a familiar tune — automation, longer trains, leaner crews, all sold as progress. Here's the field reality a senator rarely hears. Technology on a railroad doesn't replace judgment; it relocates it, usually toward someone who isn't on the locomotive when the situation goes sideways. A conductor on the ground knows things a sensor doesn't. The push for speed and efficiency is real and not entirely wrong — fluidity is safety too, when it keeps trains out of sidings and crews under their hours. But the burden of proof belongs to the side reducing the human margin, not the side defending it. Was that burden met in this hearing? Listen to the people who'd be on the head end and decide for yourself.
■ MARKET
Mobile Builds an Export Berth, and the Carload Question It Raises
The Alabama Port Authority is putting a new export facility at the Port of Mobile, and for once the rail angle is the whole story rather than a footnote. Ports don't move cargo; they hand it off. Every ton that arrives by water leaves by rail or truck, and the split between those two depends on whether the rail connection is engineered as an afterthought or a backbone. Mobile has spent years positioning itself as a deepwater alternative to the congested Gulf and Atlantic gateways, and an export facility is a bet that the inbound rail volume will be there to feed it. For the carriers serving the port — and for the short lines that handle the first and last miles — this is the good kind of news, the kind that shows up as carloads rather than press releases. The question worth asking: what's the commodity? Export facilities are built for something specific, and the answer determines whether this generates steady unit-train business or a thin trickle of mixed manifest. Watch the design. The track layout tells you what they expect to ship long before the first vessel calls.
■ CAPITAL
Penn Station Gets New Renderings, and the Track Below Stays the Same
The DOT released design plans for a rebuilt New York Penn Station, the busiest passenger hub in the hemisphere, and the renderings are predictably gorgeous. Light wells. Soaring concourses. A waiting room that doesn't make you feel like livestock. All of it sits above an interlocking and a track layout that is the actual constraint, and no amount of architectural ambition relieves the fundamental problem: too many trains, too few tracks, tunnels approaching capacity, and a Hudson crossing that is one bad day away from a regional crisis. A beautiful headhouse over a saturated throat is a better-looking bottleneck, not a faster one. The capacity fight is happening in the Gateway tunnels and the West Side throat, not in the architect's portfolio. That said — passenger experience matters, and Penn has been a national embarrassment for half a century. Fixing the building is worth doing. Just don't confuse it with fixing the railroad. The riders standing on a crowded platform during a World Cup summer won't be delayed by ugly ceilings. They'll be delayed by signals and switches that no rendering can redraw.
■ REGULATORY
The STB Builds a Data Portal, and the Subtext Is Accountability
The Board introduced a beta data portal, streamlined its data collection, and launched a case-status page in the same stretch — three administrative moves that read as plumbing but signal something larger. An agency that makes its proceedings easier to track is an agency expecting to be watched, and given the UP-NS docket bearing down on it, that expectation is well founded. For practitioners, the value is concrete. Faster, cleaner access to traffic data means shippers and short lines can build their merger comments on numbers instead of anecdote, and a transparent case-status page means nobody has to call a contact to learn whether a filing moved. The cynical read is that data portals are where reform goes to look busy. The field read is more generous: a regulator that publishes its own performance is a regulator inviting scrutiny of it, and that discipline tends to outlast the administration that started it. Whether the beta works as advertised is the open question — beta means unfinished, and government beta means unfinished for a while. Still, the direction is right. An informed shipper is a harder shipper to ignore.
■ CAPITAL
Nevada and Webb County Lines Move — Where the Network Actually Grows
Two new-construction proceedings advanced this cycle: the Board streamlined permitting for a new rail line in Nevada and issued a Final Environmental Assessment for a 2.6-mile connection to a Webb County, Texas industrial park feeding the UP mainline. These are the items the mergers overshadow, and they shouldn't. New mileage is rare in this country. The network we operate was largely laid before any of us were born, and most of the recent story has been about abandonment and rationalization, not growth. So when 2.6 miles gets built to serve a Texas industrial park, that's a real plant generating real carloads — the kind of organic traffic that doesn't require a regulatory blessing to combine two giants. The Nevada line and the Webb County spur tell you where industry is actually putting capital: at the edges, into short connections that turn a developable parcel into a served one. For the short line and regional operators who live on exactly this kind of business, these proceedings are worth more attention than the transcontinental drama upstairs. Industrial parks build the carload base. Mergers just rearrange who hauls it.
■ TECHNOLOGY
LIRR Wants to Amend Its PTC — The Unglamorous Truth About Train Control
The Long Island Rail Road has petitioned the FRA to amend its Positive Train Control system, and if that sounds like a footnote, you've never lived through a PTC implementation. The mandate was sold as a finish line. It was a starting line. Every railroad that turned PTC on discovered the same thing: the system as initially certified rarely matches the railroad as actually operated, and the amendment process is where theory meets the territory. Amendments mean the railroad found something — a configuration that doesn't fit the field, an operating pattern the original safety case didn't anticipate, a piece of the network that needs different treatment. This is normal. This is the system maturing. What a commuter rider never sees is the continuous engineering tail behind that green PTC indicator, the petitions and the validations and the software revisions that keep a safety-critical system aligned with a railroad that changes faster than its paperwork. The MBTA, just up the coast, is wrapping its own train-protection work on the Green Line E this week. Same discipline, different property. The technology is installed. The work is never finished. That's not a failure of PTC. That's what operating a railroad with it actually looks like.
■ MARKET
St. Louis Plays Its Geography, and the Gateway Math Still Works
FreightWeekSTL spent its week showcasing infrastructure investment and rail innovation, and underneath the conference branding sits a durable truth about St. Louis: it is where the railroads have to meet whether they like it or not. The Mississippi gateway has been a chokepoint and an opportunity since the nineteenth century, and the modern logistics build-out is just the latest chapter of a city monetizing the fact that geography put it at the seam between eastern and western carriers. Here's why a UP-NS merger makes this more interesting, not less. A transcontinental combination changes the interchange map, and gateways like St. Louis are precisely where the competitive consequences land — where a single-line haul replaces an interchange, where a shipper's routing options narrow or widen depending on who controls the connection. The infrastructure dollars flowing into St. Louis logistics are a bet that the city stays central no matter how the Class I map gets redrawn. Probably a safe bet. The rivers don't move, the existing yards are sunk cost, and the location is what it is. But the merger could reshape who profits from that centrality, and the shippers building there now would do well to read the abeyance order before they finalize the lease.
■ GENERAL
The World Cup Is Coming, and Transit Says It's Ready. We'll Find Out.
U.S. transit and commuter rail systems are declaring themselves ready for the World Cup, which is exactly what you'd expect them to say and exactly the claim that summer is about to test. Big events don't reveal new problems on a transit system; they amplify the ones already there. A subway that runs fine at normal load discovers its real capacity when sixty thousand people try to leave a stadium at the same time, all of them unfamiliar with the system, many of them moving in a direction the schedule wasn't built to serve. The carriers that will actually handle this — the regional and commuter operators feeding the host stadiums — are the ones whose readiness matters, and readiness is a function of crew availability, equipment reliability, and surge planning, not press confidence. (Readiness is also a word agencies use right up until the moment they aren't.) The genuine risk isn't a single bad night. It's the cumulative grind of a tournament-long surge on equipment and crews already running thin, with maintenance windows squeezed and operators working extended schedules. Ready on paper is easy. Ready in July, on the platform, after the final whistle, with the trains full and the schedule sideways — that's the test. Watch the dwell times.
Section VI

Field Notes From The Edge

■ Field Notes From The Edge

Deep Creek Crepusculum

Half-past-six, colder than a witch's teat. In the pitch of darkness, hoarfrost has encrusted the pines and encased grab irons and rails alike with ice as the night's fog dissipates and the day begins to break.

Having dropped down the 1.91% grade into the tree-tunneled Deep Creek horseshoe at track speed — 10 mph — and attacking an immediate climb to "killer" curve half a mile up, it doesn't take long for immutable gravity to sink its unforgiving claws into the 12,152,600 pounds of wheat the EWG HL22-2 has collected from Coulee City, Creston, Almira, Davenport in 60 loads. It steals what little momentum the three-quarter-mile land-leviathan gained on its descent, bringing the hand-me-down hand-me-downs — a deuce of 45's and a Dash-8 — to their knees, crawling at a mere 1.7 mph. Their aching roar obliterates the crepuscular peace.

Never fear. Ever-so-deft, git-er-done engineer Bruce Butler, the centenarian bantam, has gone round-and-round with this nemesis of the CW line for years — putting his gut-instinct mojo on the throttle, beating killer curve and its left and right hooks one more time, cresting his train at a comfortable 10 mph. In less than an hour it's tucked away at Highline Grain, ready to begin the outbound trek all over again — where Killer Curve lies in wait, raring for another fight.

— F.M. St. Simon · 23 Feb 2017 · CW Sub, Eastern Washington

Read more at The Code of Railroading →
Section VII

The Docket

■ The Docket

Off the Record On STB Docket EP 782, and the difference a year makes.

Every regulatory body runs on two channels. The record — filings, comments, the public docket where anyone can read what anyone said. And the other one. The meeting that leaves no transcript. The call that leaves no paper. The conversation lawyers' Latin calls ex parte — from one side only. The Surface Transportation Board governs that second channel under 49 CFR part 1102, and the rules are dull by design. Plumbing.

In May of last year the Association of American Railroads petitioned to revise that plumbing — to streamline the ex parte rules, to loosen the seals on who may speak to the Board off the record, and when. Routine housekeeping. But read to the bottom of it, and one request sat apart from the rest: open Class I merger proceedings to ex parte contact. Reverse a policy a generation old that keeps the off-record channel shut in the cases that matter most.

Note the date. May 16, 2025. The Union Pacific–Norfolk Southern combination was not announced until July 29 — ten weeks on. Whatever the petition was, it was not drawn to grease a merger that did not yet exist on paper. Motive is off the table. Hold that.

The shippers saw it anyway. The Private Railcar Food and Beverage Association and the Freight Rail Customer Alliance filed against the petition in June — before the merger reframed everything. They were not litigating a deal. They were reading the channel. Off-record access is leverage, and leverage does not announce itself.

What changed is not the petition. It is the house around it.

By this spring the merger sat on the Board's desk — an $85 billion file that would put something near 40 percent of the nation's freight under one flag — and the off-record question came due twice, through two different doors.

The first was the rulemaking. In April the Board took up the petition and answered the request that mattered: no ex parte in Class I mergers. The old bar holds. The loosenings it would still entertain — routine procedural questions, technical clarifications, which staff may take a meeting — move forward walled off from the merger desk.

The second was the merger docket itself. The applicants filed a motion to waive the ex parte bar in their own proceeding. On the 28th of May the Board denied it, finding a broad waiver, at that stage, could complicate the case.

Two doors. Two reaches for the second channel. Two refusals, six weeks apart.

None of this is wrongdoing. The timeline forbids the easy story. What it is, is a tell — the kind that surfaces only when you set the dockets side by side and read the dates. The carriers reached for the off-record channel, by petition and by motion, before the storm and inside it. The Board held the line both times.

This time.

Procedural plumbing is never just plumbing when the house is for sale.

Section VIII

From the Ballast Line

■ From the Ballast Line

There is an office at the head end of every train, and two people work it. One drives. One protects. Between them they carry what five once did.

"Men at Work" — a salute to the two-person crew, the office of the modern railroader, caught in the glow off UP 4335 after dark. The tip of the spear.

Section IX

On the Labor Front

■ On the Labor Front
BLET
BLET members ratified a new agreement with the Delaware & Hudson, and a ratified contract on a regional is worth more than it looks — it sets a local pattern that neighboring properties read closely. A clean ratification means the membership got enough to vote yes without a fight, which on a smaller carrier usually signals management that understood the cost of running short on engineers.
BLET
Replacement ballots are out in the BLET contract votes at LIRR and Metra — meaning the original mailing didn't reach enough members, or didn't come back. On commuter properties where engineer staffing is already a daily scramble, a contract vote that has to be re-mailed is a delay nobody can afford. Vote the ballot when it lands.
SMART-TD
SMART-TD's Local 33 is organizing new shops in West Virginia, and organizing in coal country in 2026 says something about where the work is moving. Building partnerships ahead of the membership is how a local grows in territory the freight network is still reshaping. The question is whether the carriers there stay long enough to bargain with.
Section X

Regulatory Wire

■ Regulatory Wire
NTSB
The NTSB renewed its call to retire DOT-111 tank cars from hazmat service faster — the same recommendation it has carried for over a decade. A recommendation isn't a rule, and until PHMSA writes one with teeth, the fleet ages in service exactly as fast as the owners' economics allow.
PHMSA
PHMSA is streamlining approval requirements for certain energetic materials — regulatory shorthand for making it easier to move specific explosives and propellants through the approval pipeline. Streamlining is welcome when it cuts paperwork and dangerous when it cuts scrutiny; the line between the two lives in the details of the final rule.
STB
The STB launched a case-status page alongside its new data portal, putting proceeding timelines in public view. For a shipper trying to learn whether a filing has moved without burning a phone call, transparency like this is a small mercy — and a quiet signal the Board expects close watching on the merger docket ahead.
Section XI

Equipment & Fleet

■ Equipment & Fleet
LOCOMOTIVE
The East Broad Top Foundation petitioned FRA for relief on flexible staybolts with caps — pure steam-era territory, and the kind of waiver that keeps a heritage locomotive legally on the rail. Staybolt regulations were written for a fleet that's mostly gone; tourist operators live in the gaps between rules built for power that no longer runs in revenue service.
LOCOMOTIVE
Grand Canyon Railway wants relief from the 1,472 service-day inspection on a locomotive — a calendar-based requirement that doesn't always match how a tourist operation actually uses its power. When a unit sits more than it runs, service-day math built for Class I duty cycles stops making sense, and the waiver is how you reconcile the rule with the reality.
RAILCAR
CSX rolled out America250 commemorative locomotives — paint, not mechanics, but a heritage scheme is still a maintenance commitment, and a unit pulled for special livery is a unit doing PR instead of pulling tonnage. Nice to look at. The fleet planner still has to cover the assignment it left.
Section XII

Career Opportunities

■ Career Opportunities on the Property
Genesee & Wyoming Inc. • Globe, AZ
via LinkedIn
The Board has its quorum and the merger has its leash, but the work that actually feeds the network this summer is happening at the industrial park spur and the export berth, not the hearing room. Watch the carloads, not the headlines — and keep an eye on the rail temperature.
Section XIII

Railroading Quote

■ Railroading Quote of the Week
Those who cannot remember the past are condemned to repeat it.
— George Santayana
The Life of Reason, 1905
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