Surface Transportation Board March 2014 – Federal Register Recent Federal Regulation Documents

The Board is granting an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 11323-25 for Union Pacific Railroad Company (UP), a Class I rail carrier, to acquire and operate 0.8 miles of rail line owned by Brownsville and Matamoros Bridge Company (B&M), between UP milepost 0.59 (B&M milepost 0.80) to the international border with Mexico located at the center point of B&M's railroad bridge (B&M milepost 0.00). B&M is a common carrier by railroad but does not perform railroad operations itself. Historically, UP has conducted all operations on the line. Upon consummation of the transaction, UP will relocate overhead traffic to a newly constructed line outside the city of Brownsville, Tex. This exemption is subject to standard labor protective conditions.

The Board is instituting a proceeding to determine the railroad industry's cost of capital for 2013. The decision solicits comments on the following issues: (1) The railroads' 2013 current cost of debt capital; (2) the railroads' 2013 current cost of preferred equity capital (if any); (3) the railroads' 2013 cost of common equity capital; and (4) the 2013 capital structure mix of the railroad industry on a market value basis. Comments should focus on the various cost of capital components listed above using the same methodology followed in Railroad Cost of Capital2012, EP 558 (Sub-No. 16) (STB served Aug. 30, 2013).