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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outdated computer programs to a complete revamping of the current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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