In the United States, railroad carriers are designated as Class I, II, or III, according to annual revenue criteria originally set by the Surface Transportation Board in 1992. With annual adjustments for inflation, the 2019 thresholds were US$504,803,294 for Class I carriers and US$40,384,263 for Class II carriers. (Smaller carriers were Class III by default.)
In addition, the national passenger railroad in the United States, Amtrak, would qualify as Class I if it were a freight carrier, as would Canada's Via Rail passenger service if it operated within the United States.
Initially (in 1911) the Interstate Commerce Commission (ICC) classified railroads by their annual gross revenue. Class I railroads had an annual operating revenue of at least $1 million, while Class III railroad incomes were under $100,000 per annum. All such corporations were subject to reporting requirements on a quarterly or annual schedule. If a railroad slipped below its class qualification threshold for a period, it was not necessarily demoted immediately. In 1925, the ICC reported 174 Class I railroads, 282 Class II railroads, and 348 Class III railroads.
The $1 million criterion established in 1911 for a Class I railroad was used until January 1, 1956, when the figure was increased to $3 million. In 1956, the ICC counted 113 Class I line-haul operating railroads (excluding "3 class I companies in systems") and 309 Class II railroads (excluding "3 class II companies in systems"). The Class III category was dropped in 1956 but reinstated in 1978. By 1963, the number of Class I railroads had dropped to 102; cutoffs were increased to $5 million by 1965,[1] to $10 million in 1976 and to $50 million in 1978, at which point only 41 railroads qualified as Class I.
In a special move in 1979, all switching and terminal railroads were re-designated Class III — even those with Class I or Class II revenues.
In early 1991, two Class II railroads, Montana Rail Link and Wisconsin Central, asked the Interstate Commerce Commission (ICC) to increase the minimum annual operating revenue criteria (then established at US$93.5 million) to avoid being redesignated as Class I, which would have resulted in increased administrative and legal costs.[2] The Class II maximum criterion was increased in 1992 to $250 million annually, which resulted in the Florida East Coast Railway having its status changed to Class II.
The thresholds set in 1992 were:
Class I: A carrier earning revenue greater than $250 million
Class II: A carrier earning revenue between $20 million and $250 million
Class III: A carrier earning revenue less than $20 million
Since dissolution of the ICC in 1996, the Surface Transportation Board (STB) has become responsible for defining criteria for each railroad class. The STB continues to use designations of Class II and Class III since there are different labor regulations for the two classes. The bounds are typically redefined every several years to adjust for inflation and other factors.
Class II and Class III designations are now rarely used outside the rail transport industry. The Association of American Railroads typically divides non–Class I companies into three categories:
Regional railroads: operate at least 350 miles (560 km) or make at least $40 million per year.
Local railroads: smaller than a regional railroad, but engage in line-haul service.
In the United States, the Surface Transportation Board categorizes rail carriers into Class I, Class II, and Class III based on carrier's annual revenues. The thresholds, last adjusted for inflation in 2019 are:[3]
Class I: A carrier earning revenue greater than $504,803,294
Class II: A carrier earning revenue between $40,387,772 and $504,803,294
Class III: A carrier earning revenue less than $40,387,772
In Canada, a Class I rail carrier is defined (as of 2004[update]) as a company that has earned gross revenues exceeding $250 million (CAD) for each of the previous two years.[4]
Class I railroads are the largest rail carriers in the United States. In 1900, there were 132 Class I railroads, but as the result of mergers and bankruptcies, the industry has consolidated and as of August 2021[update], just seven Class I freight railroads remain.
In addition, the national passenger railroads in the US and Canada —Amtrak and Via Rail— would both qualify as Class I if they were freight carriers. Similarly, Mexico's Ferromex would qualify as a Class I railroad if it had trackage in the United States.
^ abMeets the revenue specifications for Class I status, but is not technically a Class I railroad due to being passenger-only with no freight component.
A Class II railroad in the United States hauls freight and is mid-sized in terms of operating revenue. Switching and terminal railroads are excluded from Class II status.
Class III railroads are typically local short-line railroads serving a small number of towns and industries or hauling cars for one or more railroads; often they once had been branch lines of larger railroads or even abandoned portions of main lines. Some Class III railroads are owned by railroad holding companies such as Genesee & Wyoming or Watco.
^"Surface Transportation Board Economic Data". Retrieved February 17, 2021.
^Branch, Legislative Services (June 3, 2019). "Consolidated federal laws of canada, Transportation Information Regulations".
Sources
Surface Transportation Board FAQs – Economic and Industry Information
STB Ex Parte No. 647
Stover, John F. (1999). The Routledge Historical Atlas of the American Railroads. New York, NY: Routledge. ISBN0-415-92140-6.
External links
List and Family Trees of North American Railroads
Uniform Classification of Accounts and Related Railway Records (UCA); retrieved April 24, 2005.
Surface Transportation Board FAQs – Economic and Industry Information
January 26, 2023
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Not to be confused with Track class In the United States railroad carriers are designated as Class I II or III according to annual revenue criteria originally set by the Surface Transportation Board in 1992 With annual adjustments for inflation the 2019 thresholds were US 504 803 294 for Class I carriers and US 40 384 263 for Class II carriers Smaller carriers were Class III by default Class I railroads in North America in 2006 There are seven Class I freight railroad companies in the United States including two Canadian carriers with subsidiary trackage in the United States BNSF Railway Canadian National Railway via its subsidiary Grand Trunk Corporation Canadian Pacific Railway via its subsidiary Soo Line Corporation CSX Transportation Kansas City Southern Railway Norfolk Southern Railway and Union Pacific Railroad Mexico s Ferromex and Kansas City Southern de Mexico would qualify as Class I but do not operate within the United States In addition the national passenger railroad in the United States Amtrak would qualify as Class I if it were a freight carrier as would Canada s Via Rail passenger service if it operated within the United States Contents 1 Background 2 Classes 2 1 Class I 2 2 Class II 2 3 Class III 3 See also 4 References 4 1 Citations 4 2 Sources 5 External linksBackground EditInitially in 1911 the Interstate Commerce Commission ICC classified railroads by their annual gross revenue Class I railroads had an annual operating revenue of at least 1 million while Class III railroad incomes were under 100 000 per annum All such corporations were subject to reporting requirements on a quarterly or annual schedule If a railroad slipped below its class qualification threshold for a period it was not necessarily demoted immediately In 1925 the ICC reported 174 Class I railroads 282 Class II railroads and 348 Class III railroads The 1 million criterion established in 1911 for a Class I railroad was used until January 1 1956 when the figure was increased to 3 million In 1956 the ICC counted 113 Class I line haul operating railroads excluding 3 class I companies in systems and 309 Class II railroads excluding 3 class II companies in systems The Class III category was dropped in 1956 but reinstated in 1978 By 1963 the number of Class I railroads had dropped to 102 cutoffs were increased to 5 million by 1965 1 to 10 million in 1976 and to 50 million in 1978 at which point only 41 railroads qualified as Class I In a special move in 1979 all switching and terminal railroads were re designated Class III even those with Class I or Class II revenues In early 1991 two Class II railroads Montana Rail Link and Wisconsin Central asked the Interstate Commerce Commission ICC to increase the minimum annual operating revenue criteria then established at US 93 5 million to avoid being redesignated as Class I which would have resulted in increased administrative and legal costs 2 The Class II maximum criterion was increased in 1992 to 250 million annually which resulted in the Florida East Coast Railway having its status changed to Class II The thresholds set in 1992 were Class I A carrier earning revenue greater than 250 million Class II A carrier earning revenue between 20 million and 250 million Class III A carrier earning revenue less than 20 millionSince dissolution of the ICC in 1996 the Surface Transportation Board STB has become responsible for defining criteria for each railroad class The STB continues to use designations of Class II and Class III since there are different labor regulations for the two classes The bounds are typically redefined every several years to adjust for inflation and other factors Class II and Class III designations are now rarely used outside the rail transport industry The Association of American Railroads typically divides non Class I companies into three categories Regional railroads operate at least 350 miles 560 km or make at least 40 million per year Local railroads smaller than a regional railroad but engage in line haul service Switching and terminal railroads mainly switch cars between other railroads and or provide service in a common terminal Classes EditIn the United States the Surface Transportation Board categorizes rail carriers into Class I Class II and Class III based on carrier s annual revenues The thresholds last adjusted for inflation in 2019 are 3 Class I A carrier earning revenue greater than 504 803 294 Class II A carrier earning revenue between 40 387 772 and 504 803 294 Class III A carrier earning revenue less than 40 387 772In Canada a Class I rail carrier is defined as of 2004 update as a company that has earned gross revenues exceeding 250 million CAD for each of the previous two years 4 Class I Edit Further information List of Class I railroads Class I railroads are the largest rail carriers in the United States In 1900 there were 132 Class I railroads but as the result of mergers and bankruptcies the industry has consolidated and as of August 2021 update just seven Class I freight railroads remain BNSF Railway and Union Pacific Railroad have a duopoly over all transcontinental freight rail lines in the Western United States while CSX Transportation and Norfolk Southern Railway operate most of the trackage in the Eastern United States with the Mississippi River being the rough dividing line Canadian National Railway via its subsidiary Grand Trunk Corporation and Kansas City Southern Railway operate north south lines near the Mississippi River Canadian Pacific Railway via its subsidiary Soo Line Corporation has a comparatively small footprint in the Upper Midwest and Northeastern United States In addition the national passenger railroads in the US and Canada Amtrak and Via Rail would both qualify as Class I if they were freight carriers Similarly Mexico s Ferromex would qualify as a Class I railroad if it had trackage in the United States Railroad TrackageCanada United States MexicoAmtrak Note 1 Yes Yes NoBNSF Railway Yes Yes NoCanadian National Railway Yes Yes Note 2 NoCanadian Pacific Railway Yes Yes Note 3 NoCSX Transportation Yes Yes NoFerromex No No YesKansas City Southern Railway No Yes Yes Note 4 Norfolk Southern Railway Yes Yes NoUnion Pacific Railroad No Yes NoVia Rail Note 1 Yes No No a b Meets the revenue specifications for Class I status but is not technically a Class I railroad due to being passenger only with no freight component Operated by Grand Trunk Corporation a wholly owned subsidiary of Canadian National Railway Operated by Soo Line Corporation a wholly owned subsidiary of Canadian Pacific Railway Operated by Kansas City Southern de Mexico a wholly owned subsidiary of Kansas City Southern Class II Edit Further information List of U S Class II railroads A Class II railroad in the United States hauls freight and is mid sized in terms of operating revenue Switching and terminal railroads are excluded from Class II status Railroads considered by the Association of American Railroads as Regional Railroads are typically Class II An example of a Class II would be the Florida East Coast Railway Class III Edit The Buckingham Branch Railroad is a typical example of a Class III shortline in Virginia Further information Shortline railroad Class III railroads are typically local short line railroads serving a small number of towns and industries or hauling cars for one or more railroads often they once had been branch lines of larger railroads or even abandoned portions of main lines Some Class III railroads are owned by railroad holding companies such as Genesee amp Wyoming or Watco See also Edit Trains portalList of U S Class I railroads List of U S Class II railroads Rail transport in Canada Rail transport in Mexico Rail transport in the United States Timeline of Class I railroads 1910 1929 1930 1976 1977 presentReferences EditCitations Edit New ICC classification becomes effective Railway Age February 8 1965 page 7 Arrivals and Departures Trains March 1991 Surface Transportation Board Economic Data Retrieved February 17 2021 Branch Legislative Services June 3 2019 Consolidated federal laws of canada Transportation Information Regulations Sources Edit Surface Transportation Board FAQs Economic and Industry Information STB Ex Parte No 647 Stover John F 1999 The Routledge Historical Atlas of the American Railroads New York NY Routledge ISBN 0 415 92140 6 External links EditList and Family Trees of North American Railroads Uniform Classification of Accounts and Related Railway Records UCA retrieved April 24 2005 Surface Transportation Board FAQs Economic and Industry Information Retrieved from https en wikipedia org w index php title Railroad classes amp oldid 1129776124 Class I, wikipedia, wiki, book, books, library,
