FOR RELEASE
Contact:
Janie Sheng (202) 245-0221
09/08/2015 (Tuesday)
Janie Sheng
No. 15-14
FedRelay 1 (800) 877-8339
www.stb.gov
RAILROAD REVENUE ADEQUACY--2014 DETERMINATION
The Surface Transportation Board announced today that it has made its annual determination of revenue adequacy for the Nation
’
s Class I freight railroads for 2014. The Board found that BNSF Railway Company
,
Grand Trunk Corporation
,
Norfolk Southern Combined Railroad Subsidiaries
,
and Union Pacific Railroad Company were
“
revenue adequate
”
for 2014.
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 2014
,
which the Board determined to be 10.65 percent. Congress directed the STB to conduct such revenue adequacy determinations on an annual basis. The Board
’
s finding today is that these four Class I railroads achieved a rate of return equal to or greater than the agency
’
s calculation of the average cost of capital to the freight rail industry.
The Board
’
s decision in the case
,
Railroad Revenue Adequacy—2014 Determination, Docket No. EP 552
(Sub-No. 19)
,
can be found on the Board
’
s website
,
www.stb.dot.gov
,
under
“
E-LIBRARY
”
/
“
Decisions & Notices / 09/08/2015.
”
###