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9/7/2022
The Surface Transportation Board yesterday announced it has determined five Class Is were "revenue adequate" in 2021.
To be revenue adequate, the railroads had to achieve a rate of return equal to or greater than the board's calculation of the average cost of capital to the freight industry. The board determined that the 2021 railroad industry cost of capital was 10.37%.
In 2021, the following met that requirement: BNSF Railway Co., CSX, Norfolk Southern Railroad, Soo Line Corp. (owned by Canadian Pacific) and Union Pacific Railroad.
Congress directed the STB to conduct revenue-adequacy determinations on an annual basis. The STB's decision can be viewed here.
Meanwhile, the board also announced it has extended to Oct. 14 the deadline for public comments on the draft environmental impact statement for CP's proposed acquisition of Kansas City Southern. The original deadline was Sept. 26.