WASHINGTON – The U.S. Surface Transportation Board has determined that only one major railroad – Union Pacific – was “revenue adequate” in calendar year 2010.
A railroad is considered “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.
Revenue adequacy determines long-term financial sustainability – the ability to pay investors competitive returns as well as covering the cost of efficient operation, which includes obtaining capital for new equipment; to maintain existing track, bridges, signal systems and other capital assets; and to fund capacity expansion.
For 2010, the STB concluded that the current cost of capital for the railroad industry was 11.03 percent, and only Union Pacific achieved a rate of return equal to or exceeding that percentage. No railroad was found to be “revenue adequate” for calendar year 2009.
For 2010, the STB determined that Union Pacific achieved a rate of return on net investment of 11.54 percent; Norfolk Southern, 10.96 percent; CSX, 10.85 percent; Kansas City Southern, 9.77 percent; BNSF, 9.22 percent; Canadian National U.S. affiliates, 9.21 percent; and Canadian Pacific U.S. affiliates, 8.01 percent.
Related News
- Early-bird pricing for TD National Training Seminar ends April 30
- SMART-TD endorses U.S. Sen. Mike Braun (R-Indiana) as the next governor of the Hoosier State!
- FTA action on bus, transit safety plans praised by SMART-TD
- 27 transit members reinstated back to work in Montebello, California
- FRA crew-size rule came from our collective power
- SMART-TD, FRA announce federal regulation requiring two-person freight crews
- TD to transit agencies: Let’s try “every single thing” to protect our operators
- SMART-TD Union Demands Action in Wake of Los Angeles Bus Hijacking
- Former Alt. VP, GC ‘Pate’ King passes away
- We say: ‘No crew, no engine, NO WAY that’s safe!’