2025 MOW Spending Report: Passenger-rail programs
Gardner steps down as Amtrak CEO
Guest comment: Oliver Wyman’s David Hunt
Women of Influence in Rail eBook
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry
Stay updated on news, articles and information for the rail industry
railPrime
RAIL EMPLOYMENT & NOTICES
Rail News Home
Rail Industry Trends
Rail News: Rail Industry Trends
On March 24, the Surface Transportation Board plans to hold a hearing on the board's process of determining rail rate challenges using the stand-alone cost (SAC) methodology.
STB members scheduled the hearing to provide railroads, shippers and other interested parties a forum to express views and offer suggestions regarding the board's consideration of rail-rate reasonableness challenges under the SAC methodology. Board members will not discuss pending rail rate cases at the hearing.
Under a SAC test, a complaining shipper designs a hypothetical railroad specifically tailored to serve their needs. The cost to build and operate the railroad are compared to revenue the road is projected to earn. If the shipper demonstrates the stand-alone railroad would earn more than necessary to cover all its costs (including a reasonable return on investment), the board determines the shipper is entitled to rate relief.
2/28/2005
Rail News: Rail Industry Trends
STB schedules hearing to gather feedback on stand-alone cost procedures
advertisement
On March 24, the Surface Transportation Board plans to hold a hearing on the board's process of determining rail rate challenges using the stand-alone cost (SAC) methodology.
STB members scheduled the hearing to provide railroads, shippers and other interested parties a forum to express views and offer suggestions regarding the board's consideration of rail-rate reasonableness challenges under the SAC methodology. Board members will not discuss pending rail rate cases at the hearing.
Under a SAC test, a complaining shipper designs a hypothetical railroad specifically tailored to serve their needs. The cost to build and operate the railroad are compared to revenue the road is projected to earn. If the shipper demonstrates the stand-alone railroad would earn more than necessary to cover all its costs (including a reasonable return on investment), the board determines the shipper is entitled to rate relief.
