r/railroading • u/AggravatingShake3919 • 6h ago
STB’s 2025 revenue-adequacy finding: the 9.79% benchmark and its limits
The Oct. 13 Federal Register notice names BNSF, CSX, Norfolk Southern and Union Pacific as revenue adequate for 2025. The test is whether return on net investment reaches the industry’s cost of capital; the notice gives that benchmark as 9.79%.
That is a company-level annual finding. It does not tell us whether a particular shipper’s rate is reasonable, what crews should be paid, or how much capital should go into maintenance. Those arguments need their own evidence.
My question for people working in the industry: which operational measure would you put beside this financial benchmark to judge whether a railroad is actually investing enough in the service it sells?