Class Is, The Industry Standard

Class I railroads, which, unlike their smaller companions do not really have another name that they are known by (such as Class IIIs known as shortlines and Class IIs as Regionals). Perhaps that is because they are the industrial leaders and are always at the forefront of the latest technologies and newest locomotives on the market. Over the years the number of Class Is has shrunk due to mergers, and what remains today are seven very large railroads. Including the Canadian roads, Canadian Pacific and Canadian National, there is CSX Transportation, Norfolk Southern Corporation, Union Pacific, BNSF Railway, and Kansas City Southern.

While the definition of Class I railroads has changed over the years one thing about the class has always remained the same, it is defined as the largest operating railroad, in terms of revenue, in the country. I apologize that much of the �stuff� below can be rather boring as it includes many facts and details, but for those who have a deep interest in railroading (or business in general) will likely find it interesting.

As of 2005, the Association of American Railroads (AAR) defined Class Is of having operating revenues exceeding $319.3 million annually. As reference this number has changed many times over the years, mostly the result of rising inflation. For instance, in 1939 a Class I railroad was defined as having operating revenues of at least $1 million annually but this figured changed to $3 million in 1956, $5 million in 1965, $10 million in 1976, $50 million in 1978, $250 million in 1993, and finally the current standard of $319.3 million (please note that not all Class I dollar amount changes have been included here).

It�s also hard to believe that over that time period the number of big U.S. Class Is have shrunk from over 130 in 1939 to only five today (not including the Canadian Pacific and Canadian National); BNSF Railway, CSX Transportation (or CSXT, a division of CSX Corporation and commonly known as just CSX), Kansas City Southern, Norfolk Southern, and Union Pacific. Of these Kansas City Southern and Union Pacific are the only remaining Class I railroads whose names have remained unchanged throughout the decades.

Although there are currently only seven operating Class I railroads within the United States� borders, these companies comprise a staggering 93 percent of the industry�s revenues. Similarly Class Is also make up the majority of overall route miles as well as total freight tonnage moved. The below table highlights each Class I railroad (including Canadian National and Canadian Pacific) regarding their 2006 operating revenue. Of note, FXE (Ferrocarril Mexicano or Ferromex) and KCSM (Kansas City Southern de Mexico) are part of the Kansas City Southern system.

For more information on each of the remaining Class Is please click on their link below:

CSX Transportation

Norfolk Southern Corporation

Union Pacific

BNSF Railway

Kansas City Southern Railway

Besides Class I railroads there are also a number of Class IIs, commonly referred to as Regionals, and Class IIIs, which are known as shortlines or terminal/switching railroads. While these classes of railroads make up just a fraction of the overall annual tonnage hauled throughout the country they make up the greatest number of railroads, totaling well over 500. Likewise, in many ways, these smaller railroads can be the most interesting, harkening back to the days of single-car customer shipping and local freights making their way down a back-woods branchline.

footer for class i railroads page