Rail & Road
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Rail & Road
Federal appeals court rules that railroad industry group has standing to sue Virginia over a broadband crossings law
A federal appeals court has lowered the crossing gate in front of a Virginia law intended to speed broadband deployment across railways.
The Fourth U.S. Circuit Court of Appeals, in an opinion released Friday, ruled that a railroad industry group has the right to challenge whether a federal statute preempts the state law in question. The industry group cannot, however, challenge whether the law violates the constitutional right to just compensation for private property taken for public use, the appeals court ruled.
Virginia’s General Assembly in 2023 passed the law regarding fiber-optic broadband lines crossing railroads. It passed both the state Senate and House of Delegates unanimously, in response to complaints from internet service providers that railroads were charging them high fees to cross their lines and causing long delays to completion.
The money and time factors were keeping fiber-optic broadband from rural customers, legislators said at the time.
The Association of American Railroads, which represents Norfolk Southern and CSX among others, soon filed suit in Virginia’s Eastern District federal court. The suit contended that federal law on the subject renders the recent state law “void and unenforceable,” and that the state law violates the U.S. Constitution’s “takings clause” by failing to provide the railroads with just compensation based on market value.
The Virginia attorney general’s office responded on behalf of leaders of the State Corporation Commission — which would settle disputes under the law — and the Department of Transportation. The office moved to dismiss the case, claiming in part that the association did not have standing to file without its members’ participation. Neither Norfolk Southern nor CSX, which run most of the commonwealth’s rail lines, was party to the action.
U.S. District Judge David Novak ruled in April 2024 that the association did not have standing without its members’ participation and dismissed the case. The association appealed.
After hearing arguments in November 2024 and January 2025, the court released its opinion on Friday, sending part of the case back to Novak. The Richmond-based jurist will hear arguments centered on the federal Interstate Commerce Commission Termination Act.
With that law, called ICCTA for short, “Congress made clear its intent to preempt state regulation of rail transportation,” which includes “a law or action ‘that may reasonably be said to have the effect of ‘managing’ or ‘governing’ rail transportation,’” Judge Pamela Harris wrote in the court’s opinion.
The appeals court didn’t take a stand on whether ICCTA precluded Virginia’s law, only on whether the Association of American Railroads needed its members signed on as parties to the suit in order to make its arguments. A court could find facts without information specific to each railroad that might be affected, it ruled.
Where the Constitution’s Fifth Amendment “takings” clause is concerned, however, the railroads would have had to join the case, which requires “particularized proofs” that would require their direct participation.
The Virginia Supreme Court in May ruled against Cox Communications in two cases, saying that the cable giant and internet service provider cannot use the 2023 law to impose eminent domain on railways’ property while trying to reach the commonwealth’s more remote areas.
That decision ended another pair of federal cases, in which Norfolk Southern and CSX each had sued Cox over its attempts to use the law to place fiber optic cable through some Eastern Virginia crossings. The state and federal suits were all related to the same actions, and all parties had agreed to dismissal in Novak’s court by early June.
The Supreme Court ruled that a private company cannot use eminent domain.
These legal results leave the law in need of some repair, with the possibility that a future decision in Novak’s court will require its complete overhaul. Sen. Bill Stanley, R-Franklin County, who carried the bill as it moved from the legislature to the governor’s desk, said after the Supreme Court ruling that the General Assembly will revisit it.
Though it had passed unanimously in both chambers, there was a note of warning.
Sen. Mark Obenshain, R-Rockingham County, during deliberations over the bill, said he appreciated Stanley’s assertion that he “has considered everything” about it, “except perhaps Article 1 Section 11 of the Constitution of Virginia.”
That statement elicited some moans and jeers, a YouTube video shows.
The section states, in part, that “the General Assembly shall pass no law whereby private property, the right to which is fundamental, shall be damaged or taken except for public use.”
Obsenshain added: “These are commercial enterprises, on each side.”
Related stories
What Happened?
Shares of freight rail services provider CSX CSXjumped 4% in the pre-market session after the company’s stock rose amid reports of potential merger and acquisition activity heating up within the U.S. freight rail industry.
The broader rail sector gained attention following analyst commentary suggesting that conditions were ripe for potential consolidation. Such speculation often excites investors with the prospect of increased efficiencies, expanded networks, and greater pricing power that can result from mergers.
This move came as investors also anticipated CSX’s second-quarter earnings report, which was scheduled for release after the market close on the following day, Wednesday, July 23, 2025. While the earnings results were not yet public, the combination of M&A chatter and the upcoming financial release placed a spotlight on the railroad operator’s stock.
After the initial pop the shares cooled down to $34.98, up 1.8% from previous close.
Is now the time to buy CSX? Access our full analysis report here, it’s free.
What Is The Market Telling Us
CSX’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 3.1% after a report revealed that rival railroad operator Union Pacific UNP was exploring a potential acquisition.
According to a report from Semafor, Union Pacific, the largest publicly traded railroad in the U.S., has engaged investment bankers from Morgan Stanley to assess a possible deal. While no specific target was named, the move has fueled speculation that Union Pacific could be looking to create a transcontinental network by acquiring an East Coast carrier like CSX or Norfolk Southern.
This news sent shares of both potential targets higher, with investors anticipating a possible takeover premium. The potential for a merger comes as some analysts express confidence in CSX’s future, with Benchmark recently raising its price target on the stock to $37, maintaining a “buy” rating.
CSX is up 8.8% since the beginning of the year, and at $34.98 per share, it is trading close to its 52-week high of $36.88 from November 2024. Investors who bought $1,000 worth of CSX’s shares 5 years ago would now be looking at an investment worth $1,432.
Rail & Road
Railway 200 Inspiration Train Exhibition Now Touring Major UK Destinations Celebrating 200 Years of Rail Innovation and Heritage
Tuesday, July 22, 2025
The Railway 200 Inspiration Train, a one of a kind mobile exhibition focusing on the past and future of the UK rail network, has embarked on a national tour in honour of the country’s modern railway network turning 200 years old. The train, which will travel to more than 60 locations over the course of the year, aims to bring the railway to life for members of the public by giving them an insight into its history and the industry’s journey that helped to create Britain’s railway network.
Having embarked on its journey from Kidderminster’s Severn Valley Railway in Worcestershire on June 27, 2025, the Inspiration Train is now touring major locations including London, Birmingham, York and Margate, showcasing both the country’s proud past and ambitious vision for the future of rail. More than 200,000 visitors are expected to visit the train over the next year as it tours the nation, with schoolchildren, rail enthusiasts and the general public invited to step onto its exhibitions.
The Inspiration Train is part of Railway 200, a campaign to mark the positive impact of rail travel in the UK. The Fishing Line was officially opened in 1825 – the world’s first passenger railway line heralding in a new age of travel that would change the face of the UK and the world. The Railway 200 Inspiration Train is a celebration of this amazing landmark, showcasing the future of rail travel and the opportunities in the industry.
A Journey Through History, Innovation, and Opportunity
Organised with the National Railway Museum and Network Rail the Inspiration Train is more than a rolling exhibition. It is comprised of four carriages with their own signature design, covering various aspects of railway history and the future of rail.
The very first trains: on board these carriages you will learn everything about the arrival of the first steam trains, the design of the first intercity rail network and the arrival of high-speed trains. Life in the fast lane Curated exhibitions will look at how these milestones changed the face of transport around the world.
Wonderlab on Wheels – Designed to stimulate curiosity and get the next generation of engineers and innovators enthused, this carriage contains interactive displays that highlight the wonders of science, technology, engineering and maths (STEM). Visitors can participate in interactive activities and experiments intended to give them a better understanding of how rail systems function and how the industry is developing.
Your Railway Future: Looking ahead to the future of the rail industry, this carriage identifies the many different careers available within the industry. The train gives an insight into the diverse range of exciting careers that are available and accessible in rail for the next generation of rail talent, skilled in everything from engineering and technology to operations and design.
Partner Zone: A versatile display area that is utilised by a range of partners (e.g., local heritage railways, interest groups, and educational establishments) who are able to demonstrate their own work and promote their own initiatives. by Partner Zone As the UK rail sector search for a new narrative on what the future of the railway looks like, the Partner Zone shines a spotlight on how the industry is collaborating and partnering to help to innovate and protect the rail industry for generations to come.
A Legacy of Innovation
The Railway 200 Inspiration Train isn’t just about celebrating the past. It is also part of an ambitious vision for the future of the railways. Its displays invite visitors to discover the latest in rail technology, from electrification, decarbonising movements to the advancement for high speed rail networks. The train represents a vision for the future where rail can play a key role in a changing world that is increasingly focused on sustainability, connectivity and innovation.
One of the key objectives of Railway 200 is to reach out to the younger generation and encourage them to think about a career in rail. Supporting the sector as it deals with skills shortages and invests in new technologies, rail relies on a constant flow of bright, skilled individuals that can help to shape the future of the way we transport. The Inspiration Train should help to kickstart that, giving the necessary tools and inspiration to young people in order to get involved.
Nationwide Tour and Accessibility
The Railway 200 Inspiration Train will visit 60 locations throughout the UK, including London, Birmingham and York, as well as heritage hotspots like the Bluebell Railway in Sussex. The train is also set to visit more off-the-beaten-track locations including Margate in Kent as part of a bid to make the exhibits accessible for people across all corners of the country.
The train will also call at a number of significant railway stations, including Darlington, York, and Norwich, where the public can easily view the displays. In its tour diary the schedule lists town’s and city’s with strong rail connections as well as heritage railways, giving those communities the opportunity to experience the exhibitions in person.
With full access for all disabled visitors, there is no reason that anyone can’t get to enjoy the thrill of a ride on our train. The organizers are making every effort to ensure an inclusive and welcoming experience on behalf of all participants, including provision for people with mobility concerns.
How to Visit
Inspiration Train is free to enter, but visitors are advised to book tickets in advance online as interest is expected to be high. Entry to some private sites or heritage railways may carry a charge, while visiting the train itself is free. Visitors are encouraged to refer to the official Railway 200 website for visiting hours, tickets and tour schedules.
For those who are interested in discovering more about the history of rail in the UK, the train is also hosting information on the contribution that different train stations and networks have made to transforming the transport environment. Working in partnership with local museums and rail industry partners, visitors will be able to enjoy immersive exhibitions that will chart the history of UK rail – from the dawn of steam and the industrial revolution, right up to the present day and the cutting-edge technologies used on the rail network today.
Upcoming Destinations
The Inspiration Train is bringing the message to a number of fun and exciting places over the next few months:
· 23-29 July: Bluebell Railway, Sussex
· Aug 7-10: Norwich station, Norfolk
·Aug 11-14: Lowestoft station, Suffolk
·August 16-17: Freightliner Doncaster Railport, South Yorkshire
· 23–31 August: National Railway Museum, York
· September 10-17: Darlington station (County Durham).
· September 20-October 1: Locomotion, Shildon, County Durham
· October 4: Newton Aycliffe, Hitachi Depot, County Durham
Conclusion
The Railway 200 Inspiration Train is more than a celebration of UK railway heritage. “The reform is future-oriented and emphasizes the future significance of the railway sector in shaping the country’s future, Plymouth University. History buffs, aspiring engineers or anyone who is just curious about the future of transportation will experience an educational awakening on the train. As it makes its way across the country, the Inspiration Train will also be bringing the past, present, and future of rail to the next generation of rail enthusiasts.
(Source: Railway 200, National Railway Museum, and Network Rail)
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