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7/28/2025
The Surface Transportation Board on July 20 determined that the cost of capital for the railroad industry was 10.68% for 2024.
The figure represents the STB Office of Economics’ estimate of the average rate of return needed to persuade investors to provide capital to the freight-rail industry.
Determined annually, the cost of capital is one component used in evaluating the adequacy of a railroad’s revenue each year and may be used in other regulatory proceedings, according to the STB's decision.
The board's decision, which can be read here, is effective Aug. 20.