FOR RELEASE
Contact: Janie Sheng (202) 245-0221
11/03/2011 (Thursday)
Eric Weiss
No. 11-20


FedRelay 1 (800) 877-8339
www.stb.gov
SURFACE TRANSPORTATION BOARD MAKES RAIL REVENUE ADEQUACY DETERMINATION FOR 2010


The Surface Transportation Board announced today that it has made its annual determinations of revenue adequacy for the Nation's Class I freight railroads (the largest) for 2010. The Board found that one railroad, the Union Pacific Railroad Company, was revenue adequate in 2010. All other Class I freight railroads were found to be revenue inadequate for that year.


A railroad is considered to be revenue adequate, under 49 U.S.C. 10704(a), if it achieves a rate of return on net investment equal to at least the current cost of capital for the railroad industry for 2010, which the Board determined to be 11.03%. Congress directed the Board to conduct such revenue adequacy determinations on an annual basis.


The Board's decision in the case, Railroad Revenue Adequacy—2010 Determination, Docket No. EP 552 (Sub-No. 15), can be found on the Board's website, www.stb.dot.gov.


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