The Surface Transportation Board (STB) has gained a new member as Patrick Kloster was sworn in, shifting the regulatory balance as the board evaluates the proposed merger of Union Pacific and Norfolk Southern.
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Appointment and Background
Kloster was appointed by President Donald Trump in September and confirmed by the Senate on May 18, 2026, for a term ending December 31, 2028, according to FreightWaves. A graduate of Northern Illinois University, Kloster has spent the past 17 years as president and founder of Integrity Rail Partners, Inc., a consultant specializing in rail equipment, strategic planning, acquisitions, and marketing.
His resume includes serving as director of business and market intelligence for railcar lessor GE Rail Services from 1991 to 2007, and a senior role at consultant FTR from 2007 to 2019. He also serves as an executive board member of the National Industrial Transportation League for two decades and on the board of the Railway Supply Institute since 2020. Kloster holds several patents covering railcar technology.
STB Composition and Merger Review
Kloster brings to three the number of Republican board members, including Chairman Patrick Fuchs and Michelle Schultz, both Trump appointees, reaching the statutory maximum for the party, FreightWaves reported. Vice Chair Schultz’s term runs through November 30, 2030. Longtime member and Vice Chair Karen Hedlund was appointed by President Joe Biden in 2021 and is awaiting confirmation after being nominated by Trump for a second term that runs through December 31, 2030. A fifth seat remains vacant.
The newest appointee joins the board as it evaluates the proposed merger of Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) in a deal that would create the first all-freight transcontinental railroad.
| Member | Party | Appointed By | Term End |
|---|---|---|---|
| Patrick Fuchs (Chairman) | Republican | Trump | Not specified |
| Michelle Schultz (Vice Chair) | Republican | Trump | November 30, 2030 |
| Karen Hedlund (Vice Chair) | Democrat | Biden; renominated by Trump | December 31, 2030 |
| Patrick Kloster | Republican | Trump | December 31, 2028 |
| Vacant | — | — | — |
Implications for Shippers and Operators
For logistics managers and freight forwarders, the STB’s current Republican majority signals a potential tilt toward merger approval or conditions favorable to the merging parties. The UP-NS combination would create a single railroad spanning from the West Coast to the East Coast, fundamentally altering competitive dynamics in the U.S. rail freight market. Shippers reliant on single-line service may benefit from improved transit times, but those currently served by both railroads could face reduced competition or rate increases.
The appointment also brings a commissioner with deep rail equipment expertise. Kloster’s background in railcar technology and his tenure on the boards of the National Industrial Transportation League and the Railway Supply Institute mean he understands both shipper and supplier perspectives. His patents and years at GE Rail Services indicate technical familiarity with railcar design, which could influence regulatory decisions on equipment standards and safety.
Watch List
- The timetable for the STB’s decision on the UP-NS merger, which will be closely watched by all rail shippers.
- The status of the fifth vacant seat; a future appointment could shift the balance if a Democrat is named.
- Karen Hedlund’s confirmation process for her second term; if confirmed, she remains a Democratic voice on the board through 2030.
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