Industry reacts to Trump's ouster of STB member Primus

The news that President Donald Trump on Wednesday fired Surface Transportation Board Member Robert Primus prompted a number of reactions from the rail industry. 

A Democrat who was first nominated to the STB by Trump, Primus said in a post on LinkedIn and in national news media reports that he believes the termination to be illegal and that he will continue to show up for work. National media reports quoted the White House's explanation for the termination is that Primus "did not align with the president’s America First agenda."

Rail Passengers Association President and CEO Jim Mathews said he believed that firing Primus because his views don't align with Trump's agenda violates the Interstate Commerce Commission Termination Act of 1993. The law, which established the STB, states that board members can be removed only for cause, including inefficiency, neglect of duty or malfeasance in office. Trump's action "raises serious questions about questions about political interference in what is meant to be an independent regulatory agency," Mathews said.

“This move will hinder the board’s ability to carry out its duties in a dispassionate and apolitical fashion—a task made all the more critical given the proposed mega-merger between Union Pacific and Norfolk Southern," Mathews said.

Primus was in his second term on the board and has served as both vice chairman and chairman. Trump nominated him to his first term and President Joe Biden nominated him to a second term.

AFL-CIO Transportation Trades Department (TTD), a coalition of unions that represent freight and passenger railroad workers, called on Trump to reverse his decision to remove Primus from the board. "Mr. Primus has been thoroughly focused on strengthening freight rail service, workforce levels and public safety, and examining growth opportunities in the freight rail industry," said Greg Regan and Shari Semelsberger, TTD president and secretary-treasurer, respectively, in a prepared statement.

Regan and Semelsberger added: "Mr. Primus has demonstrated an expert understanding of the lasting impact that America’s freight rail network has on the national economy, and the board’s oversight role in building long-term stability into the current system."

In an email to clients, rail industry analyst Tony Hatch of ABH Consulting noted that Primus was the only "no vote" on the last major merger that the STB dealt with: Canadian Pacific's acquisition of Kansas City Southern, which the board approved in 2023. Many analysts are saying the firing is "proof of the White House tipping the scales on the merger," Hatch wrote. 

"To quote one friend: 'The proposed merger ... aligns with the current administration's efforts to strengthen and enhance U.S. industrial competitiveness' — to which I would argue, even if U.S. industry opposes said merger?" Hatch said. "I'm not saying industry will oppose the merger (rather just bargain for terms) but they might and any one of a number (petrochemicals, steel, autos, agribusiness, construction, etc.) are as big or likely bigger than the rail industry. They have the power!  Why choose one industry over others?"

Meanwhile, in a request for comment on the Primus termination, the Association of American Railroads issued the following statement: "Railroads respect the critical role the STB plays, and value our strong working relationship with its members and staff. That has been true for more than 30 years and will remain so regardless of the board’s composition. As always, we will engage in the nomination and confirmation process as the administration works to fill its vacancies."