STB Chair Primus questions AAR's rail-cost data quality

Surface Transportation Board Chairman Robert Primus yesterday sent a letter to the Association of American Railroads to express concern about the quality of AAR's data submissions in recent years.

Specifically, Primus is questioning the data related to the rail cost adjustment factor (RCAF), an index published by the board that is formulated to represent changes in railroad costs over time. Every quarter, the AAR computes three types of RCAF figures and submits them to the board for approval.

In recent years, the AAR has had to refile four quarterly RCAF filings due to errors or the need for modifications of the data, STB officials said in a press release.

Accurate RCAF reports are integral to the STB processes and also are relied on by many other industry stakeholders, Primus writes. His letter asks that the AAR submit to the board a detailed description of its quality controls in calculating the quarterly data. In addition, the board is considering having an dependent accounting firm review the RCAF annually instead of the current biennial schedule.

Primus' letter can be downloaded here.

Asked for a response, AAR spokeswoman Jessica Kahanek said in an email that the AAR will respond formally to the chairman's letter.

"AAR has a long, well-established history of transparency and maintaining the highest standards in reporting and data accuracy," Kahanek said.