UP
Written by William C. Vantuono, Editor-in-ChiefThe Surface Transportation Board announced Thursday that among all U.S. Class I railroads, it found that only Union Pacific was revenue adequate for the year 2010—meaning that it achieved a rate of return equal to or greater than the board’s calculation of the average cost of capital to the freight rail industry.
The agency determined that the railroad cost of capital for 2010 was 11.3%. UP’s rate of return was 11.54%. Falling short of a return equaling the cost of capital were: BNSF Railway, 9.22%; CSX Transportation, Inc., 10.85%; Grand Trunk Corp. Consolidated (including all Canadian National U.S. affiliates), 9.21%; Kansas City Southern Railway Co., 9.77%; Norfolk Southern Railway Co., 10.96%; and Soo Line Railroad Co. (including all Canadian Pacific U.S. affiliates), 8.01%.
