REPORT TO CONGRESS RECOMMENDS OPTION FOR UPDATING BOARD'S KEY COSTING METHODOLOGY

[STBNews@xxxxxxxxxxx]

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>From the Surface Transportation Board, Washington, D.C.
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Responding to a request from Congress, the Surface Transportation Board
today released a report on options for updating its Uniform Rail Costing
System, which is used by the Board in rate and other cases.

         The system, known as URCS, is the methodology that allows the STB
         to determine a railroad's variable costs of providing rail
         transportation service. The Board uses variable costs to determine
         whether it has jurisdiction in rate disputes between railroads and
         their customers and if rates in question are reasonable. URCS is
         also used in other cases such as proposed abandonments and
         disputes over trackage rights.

         The report lays out three alternatives ranging from updating the
         outdated computer programs to a complete revamping of the current
         system that could cost $10 million or more.

         The Board has recommended a middle option that would upgrade
         computer software and modify the existing system to account for
         the many changes in the railroad industry that have occurred since
         URCS was first adopted in 1989. The suggested improvements would
         make URCS more reliable and more reflective of today's railroad
         industry. The middle option is estimated to cost $625,000 over two
         years.

         The full study, Surface Transportation Board Report to Congress
         Regarding the Uniform Rail Costing System, is available on the
         Board's website, www.stb.dot.gov or at
         www.stb.dot.gov/stb/docs/URCS/URCS%20Report%205.27.10.pdf.


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