President Trump has nominated railroad industry consultant Richard Kloster for an initial five-year term as a member of the Surface Transportation Board, and re-nominated current member Michelle Schultz, FreightWaves has learned.
The nominations now go to the Senate for confirmation, although a timeline for confirmation is unknown.
The nominations are critically important, as the board will soon consider the proposed $85-billion acquisition of Norfolk Southern (NYSE: NSC) by Union Pacific (NYSE: UNP), a deal that would create the first transcontinental railroad and transform the U.S. freight rail industry.
Kloster, a Republican, is president and founder of Integrity Rail Partners, Inc., a consultant on railroads and rail equipment based in Charles Town, W. Va. With more than three decades’ experience with railroads, rail supply chain and rail suppliers, Kloster started out as a car inspector and moved “inside” working for Chicago Northwestern, Chicago Central and Pacific, and the Indiana Railroad. He was senior vice president and chief commercial officer at rail consultant Alltranstek, and senior consultant at FTR, another rail industry specialist. He also worked as director of business and market intelligence for railcar lessor GE Rail Services for more than 15 years. Kloster is on the executive board of the National Industrial Transportation League shipper trade group, as well as the board of the Railway Supply Institute. He holds degrees from Northern Illinois University and the University of Alabama.
Kloster if confirmed would replace former member and STB Chairman Martin Oberman, who retired in 2024.
Schultz, a Republican and attorney, was first nominated to the rail competition regulator by Trump, and is currently in her second term as vice chairman of the board.
Along with Schultz, STB members include chairman and Trump appointee Patrick Fuchs, and Karen Hedlund, an attorney and Democrat appointed by Biden in 2020 whose term expires at the end of this year.
Still to be filled is the seat previously held by Democrat Robert Primus, who was fired by Trump in August.
This article was update Sept. 12 to add Kloster’s background working for railroads, and to correct that Schultz was first nominarted by Trump.
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Find more articles by Stuart Chirls here.
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