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9/9/2016



Rail News: HomePage

STB reveals 'revenue adequate' Class Is for 2015


The U.S. Surface Transportation Board (STB) announced yesterday that the Class Is that achieved "revenue adequacy" in 2015 were BNSF Railway Co., Union Pacific Railroad, CN's Grand Trunk Western Railroad Co. and Canadian Pacific's Soo Line Corp.

A railroad is considered "revenue adequate" if it achieves a rate of return on net investment equal to at least the current cost of capital for the railroad industry for 2015, which the STB determined to be 9.61 percent.

The board determined that BNSF, UP, Grand Trunk and Soo Line achieved a rate of return on net investment equal to or greater than the agency’s calculation of the cost of capital for the railroad industry, according to an STB press release.

Grand Trunk is part of CN's U.S. operations and Soo Line is part of CP's U.S. operations.

Congress requires the STB to conduct revenue adequacy determinations on an annual basis.



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