Market Matters Blog

It is common for an incoming president to place a new chairman of the Surface Transportation Board (STB) along party lines.

On Jan. 21, 2025, Patrick J. Fuchs was designated as chairman of the STB, replacing Robert E. Primus. Fuchs is serving in his second, five-year term on the STB, following his confirmation by the U.S. Senate on May 14, 2024. His current term expires Jan. 14, 2029.

"I am grateful to President Trump for the honor of this appointment," said Chairman Fuchs. "I look forward to engaging with all those affected by the board's work to promote transparency, accountability, and collaboration to help strengthen our nation's transportation network."

Board member Michelle Schultz has been designated as the agency's vice chairman.

Association of American Railroads (AAR) President and CEO Ian Jefferies issued the following statement after Fuchs was designated chairman of the STBoard: "Chairman Fuchs has proven to be a thoughtful, solutions-oriented leader who lets data drive the decision-making process. Throughout his career, he has been committed to maintaining the balanced regulatory framework that allows railroads to invest while also offering appropriate remedies for rail customers. America's railroads look forward to working with him as we advance our shared goal of a thriving, vibrant rail network that helps businesses and our economy continue to grow."

There are still plenty of issues ahead for the new chairman. Former chairman Primus spoke at the Midwest Association of Rail Shippers 2025 Winter Meeting on Jan. 16 and said, "2024 was a very busy and productive year at the board, and 2025 has begun in similar fashion. Last year, the board rendered 92 entire board decisions and another 281 director orders in support of activities along our nation's freight rail network.

"In the wake of my predecessor Marty Oberman retiring, the board continues to sit at four members and, I can tell you, moving a 2-2 board to consensus is a far more difficult endeavor than doing so with five members and a 3-2 majority. Because there is no outright majority, opinions become amplified, and everyone has greater influence with respect to the outcome. No one has the upper hand -- not even the chairman."

Primus added, "I'd be remiss if I didn't mention two other important proceedings that received a considerable amount of attention by the board in 2024 and were subsequently approved just a few days ago prior to this meeting. The first being the NAFCA decision, an extremely complex case, regarding the costs associated with empty tank car movements, that came to the board a decade ago. The other is the acquisition of the Iowa Northern Railway by Canadian National. In both instances, it took a considerable amount of time and effort by the board to work out differences and cobble together agreements to affirm the respective decisions. Not everyone ended up on the same page; I was the lone dissent in the CN-Iowa Northern transaction. However, in the spirit of moving things forward, once a majority was reached, I moved to get it done."

Primus noted at the meeting that, given the upcoming change in administrations, his time as chairman would likely soon come to an end. "There is one matter that I am truly disappointed the board did not act upon during my time as chairman and that is acknowledging and addressing the pervasiveness of retaliation and intimidation around the network," said Primus.

"Since coming to the board, I have heard from numerous shippers, rail labor and even short lines that such malfeasance is real and pervasive. While I do not believe the leadership of Class 1 railroads promotes, or even tolerates, this behavior, it nonetheless continues to permeate through the ranks and its impact has directly affected the board's ability do its work. Quite simply, it is wrong and must be addressed. Sadly, the board was unable to act upon a straightforward, non-binding policy statement I proposed. Moving forward, I hope the board finds the courage to confront this troubling issue, sooner rather than later."

The STB was created on Jan. 1, 1996, by the ICC Termination Act of 1995. The board is the successor to the former Interstate Commerce Commission (1887-1995) and was administratively aligned with the U.S. Department of Transportation from 1996 to mid-December 2015. The STB Reauthorization Act of 2015 established the STB as a wholly independent federal agency on Dec. 18, 2015.

STB press release on Railroad Retaliation: https://www.stb.gov/…

Speech by Primus at Midwest Association of Rail Shippers 2025 Winter Meeting: https://www.stb.gov/…

Mary Kennedy can be reached at mary.kennedy@dtn.com

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