{"id":14193,"date":"2011-11-04T05:32:30","date_gmt":"2011-11-04T05:32:30","guid":{"rendered":"http:\/\/utu.org\/?p=14193"},"modified":"2011-11-04T05:32:30","modified_gmt":"2011-11-04T05:32:30","slug":"up-lone-revenue-adequate-railroad-for-2010","status":"publish","type":"post","link":"https:\/\/www.smart-union.org\/up-lone-revenue-adequate-railroad-for-2010\/","title":{"rendered":"UP lone “revenue adequate” railroad for 2010","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
WASHINGTON \u2013 The U.S. Surface Transportation Board has determined that only one major railroad \u2013 Union Pacific \u2013 was \u201crevenue adequate\u201d in calendar year 2010.<\/p>\n
A railroad is considered \u201crevenue adequate\u201d if it achieves a rate of return on net investment equal to at least the current cost of capital for the railroad industry.<\/p>\n
Revenue adequacy determines long-term financial sustainability \u2013 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.<\/p>\n
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 \u201crevenue adequate\u201d for calendar year 2009.<\/p>\n
For 2010, the STB determined that Union Pacific<\/strong> achieved a rate of return on net investment of 11.54 percent; Norfolk Southern<\/strong>, 10.96 percent; CSX<\/strong>, 10.85 percent; Kansas City Southern<\/strong>, 9.77 percent; BNSF<\/strong>, 9.22 percent; Canadian National<\/strong> U.S. affiliates, 9.21 percent; and Canadian Pacific<\/strong> U.S. affiliates, 8.01 percent.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":" WASHINGTON \u2013 The U.S. Surface Transportation Board has determined that only one major railroad \u2013 Union Pacific \u2013 was \u201crevenue adequate\u201d in calendar year 2010. A railroad is considered \u201crevenue adequate\u201d if it achieves a rate of return on net investment equal to at least the current cost of capital for the railroad industry. Revenue […]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[9,18,25],"tags":[87,784,785,88,180,181,1154,523,185],"member_types":[],"acf":[],"yoast_head":"\n