Revenue adequacy is a concerning proposal at the Surface Transportation Board (STB) because it would turn today’s earnings floor into tomorrow’s ceiling, using annual determinations of a railroad’s financial health to cap rates, regardless of market conditions.

In a new Hill op-ed, AAR CEO Ian Jefferies discusses the STB’s proposal in deeper detail. “Unlike other freight transportation modes, railroads fully cover the costs of their privately-owned infrastructure. STB policies should encourage investment, not deter it.”

With renewed trade ties, freight railroads stand ready to deliver for rail customers throughout North America and move the goods that allow the U.S. economy to grow and compete in global markets.