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Rail unions were left "disappointed" yesterday after pro-nationalisation Maria Eagle was axed as Labour's shadow transport secretary amid a Westminster reshuffle.
The Star revealed at TUC Congress last month that Ms Eagle is "convinced" by the case for renationalisation of Britain's railways.
She slammed privatisation as a "disaster" and said she was fighting for a public ownership pledge to be included in the party's next manifesto.
Ms Eagle said Ed Miliband was "one of the good guys" on the issue but was moved by the Labour leader over her support for the faultering High Speed 2 project.
A source at a Labour-affliated rail union described it as a "loss to a left position in the Labour shadow cabinet and trade unions in the party."
"It was clear that she was on top of her brief and had moved towards a union position of nationalisation," the source told the Star.
"We've been impressed by Maria, she's grown into the role and if she has gone then we'd be disappointed."
Labour List editor Mark Ferguson added that it was a "real shame" because "she is genuinely open to interesting ideas around public ownership of the railways."
Ms Eagle has swapped portfolios with former shadow Environment, Food and Rural Affairs secretary Mary Creagh.
Blairite trio Jim Murphy, Liam Byrne and Stephen Twigg were relegated from respective roles as shadow defence secretary, shadow work and pensions secretary and shadow education secretary.
Meanwhile yesterday's Con-Dem Cabinet reshuffle saw Scottish Secretary Michael Moore losing his post.
The "disappointed" Liberal Democrat saw his ministerial portfolio handed to the party's former chief whip Alistair Carmichael in a surprise announcement, prompting speculation of a new tack as Scotland's referendum on independence looms.
Lib Dem leader and deputy PM Nick Clegg said Mr Moore had been "formidable" in negotiating the terms of next year's referendum.
But the government "now need to draw on different experience in the final year running up to the referendum itself."
by Luke James and Rory MacKinnon