Class II railroad
Encyclopedia
A Class II railroad in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 is a mid-sized freight-hauling railroad, in terms of its operating revenue. , a railroad with revenues greater than $20.5 million but less than $277.7 million for at least three consecutive years is considered a Class II railroad. Switching and terminal railroads are excluded from Class II status.

Railroads considered by the Association of American Railroads
Association of American Railroads
The Association of American Railroads is an industry trade group representing primarily the major freight railroads of North America . Amtrak and some regional commuter railroads are also members...

 as "Regional Railroads" are typically Class II railroads.

Criteria

The Surface Transportation Board
Surface Transportation Board
The Surface Transportation Board of the United States is a bipartisan, decisionally-independent adjudicatory body organizationally housed within the U.S. Department of Transportation. The STB was established in 1996 to assume some of the regulatory functions that had been administered by the...

 is responsible for defining the bounds of each railroad class. The bounds are typically redefined every several years, to adjust for inflation and other factors. The last major change of the upper bound for a Class II railroad was in 1992; this changed the Florida East Coast Railway
Florida East Coast Railway
The Florida East Coast Railway is a Class II railroad operating in the U.S. state of Florida; in the past, it has been a Class I railroad.Built primarily in the last quarter of the 19th century and the first decade of the 20th century, the FEC was a project of Standard Oil principal Henry Morrison...

 from a Class I railroad
Class I railroad
A Class I railroad in the United States and Mexico, or a Class I rail carrier in Canada, is a large freight railroad company, as classified based on operating revenue.Smaller railroads are classified as Class II and Class III...

 to Class II. A previous change in 1991 prevented two railroads, Montana RailLink and Wisconsin Central, from being classified as Class I railroads; this change was made at the request of the two railroads involved, as they did not wish to take on the extra cost and paperwork associated with Class I status. Changes since have been adjustments for inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...

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