A railroad with annual operating revenues between the Class III threshold and the Class I threshold, roughly $40 million to $900 million. Class II railroads include regional railroads that operate over significant route mileage but are below Class I scale. They are subject to lighter STB oversight than Class I carriers.
A railroad that meets the STB's annual revenue threshold for the largest classification, currently set at $900 million in adjusted annual operating revenues. There are seven Class I railroads in the United States: BNSF, UP, CN, CSXT, NS, KCS/CPKC, and CP. Class I railroads account for the vast majority of freight rail revenue and ton-miles.
A railroad with annual operating revenues below approximately $40 million, commonly referred to as a short line or local railroad. Class III railroads provide crucial first- and last-mile rail service connecting shippers to Class I mainlines. There are approximately 600 Class III railroads in the United States.
The independent U.S. federal agency responsible for the economic regulation of the nation's freight railroads, including jurisdiction over rates, mergers, acquisitions, line sales, and abandonments. The STB was created by the ICC Termination Act of 1995 as the successor to the Interstate Commerce Commission. It adjudicates shipper complaints about unreasonable rates and competitive access.