STB Finds 5 Class 1s were Revenue Adequate in 2020

The U.S. Surface Transportation Board has determined that five Class 1 railroads had adequate revenue during 2020.

The carriers were BNSF, CSX, Kansas City Southern, Soo Line (Canadian Pacific) and Union Pacific.

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.

During 2020 the STB determined that to be 7.89 percent.

The five carriers cited by regulators achieved a rate of return on net investment equal to or greater than the agency’s calculation of the cost of capital for the railroad industry.

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