Grand Trunk Corp.

(Photograph Courtesy of NS)

STB: Five Class I’s Revenue Adequate for 2021

The Surface Transportation Board (STB) has found five U.S. Class I railroads to be revenue adequate for 2021: BNSF, CSX, Norfolk Southern, Soo Line (the U.S. affiliate of Canadian Pacific) and Union Pacific. Railway Age Capitol Hill Contributing Editor Frank N. Wilner weighs in.

The STB determined that CSX was among the Class I’s achieving a rate of return on net investment equal to or greater than the agency’s calculation of the average cost of capital for the freight rail industry, a sign of revenue adequacy. CSX was also found to be revenue adequate for 2019 and 2018.

STB: Five Class I’s Revenue Adequate for 2020

The Surface Transportation Board (STB) has found five of the seven U.S. Class I railroads to be revenue adequate for 2020: BNSF, CSX, Kansas City Southern, Soo Line (the U.S. affiliate of Canadian Pacific) and Union Pacific.

The STB determined that UP was among the Class I’s achieving a rate of return on investment (ROI) equal to or greater than the Board’s calculation of the average cost of capital for the freight rail industry, a sign of revenue adequacy. UP was also found to be revenue adequate for 2018.

STB: Five Class I’s Revenue Adequate for 2019

The Surface Transportation Board has determined that five of the “Big 7” U.S. Class I railroads achieved revenue adequacy in 2019: BNSF, CSX, Norfolk Southern, Soo Line (the U.S. affiliate of Canadian Pacific) and Union Pacific. STB determined that those Class I’s achieved a rate of return on investment (ROI) equal to or greater than the Board’s calculation of the average cost of capital for the freight rail industry, which for 2019 is 9.34%.