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9/8/2021
The Surface Transportation Board (STB) yesterday announced that is has made its determination of revenue adequacy for the Class Is for 2020.
Five Class Is — BNSF Railway Co., CSX, Kansas City Southern Railway, Soo Line Corp. and Union Pacific Railroad — were revenue adequate for the year 2020, STB officials said in a press release.
A railroad is considered to be 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 2020, which the STB determined to be 7.89%.
Congress directed the STB to conduct revenue-adequacy determinations on an annual basis.
The STB’s finding yesterday is that the five Class Is 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.
The STB's decision can be viewed and downloaded here.