Railroad classes facts for kids
In the United States, railroads are grouped into different sizes: Class I, Class II, or Class III. The Surface Transportation Board decides how big a railroad needs to be to fit into each class.
There are six big Class I freight railroad companies in the US. Canada has two Class I freight railroads, and both of them also have tracks in the US. Mexico has two Class I freight railroads, with one having tracks in the US. The main passenger train companies in the US and Canada, Amtrak and Via Rail, are also Class I railroads.
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Railroad Classes Explained
What is a Class I Railroad?
In the United States, a Class I railroad is a company that earns a lot of money each year. The Surface Transportation Board says a railroad needs to make $250 million or more in revenue (money earned) every year to be Class I. By 2011, the Association of American Railroads said this amount was at least $433.2 million.
In Canada, a Class I rail carrier is a company that has earned at least $250 million (Canadian dollars) in revenue for the past two years.
Class I railroads are very good at moving things efficiently. They can move one ton of freight almost 500 miles using just one gallon of diesel fuel. That's like moving a small car nearly the distance from New York City to Cleveland, Ohio, on one gallon of gas!
In 2013, there were eleven Class I railroads across North America. This included Amtrak and seven freight railroads in the United States, based on their 2011 earnings.
| Railroad | Where They Have Tracks | ||
|---|---|---|---|
| Canada | United States | Mexico | |
| Amtrak | Yes | Yes | No |
| BNSF Railway | Yes | Yes | No |
| Canadian National Railway | Yes | Yes |
No |
| Canadian Pacific Railway | Yes | Yes |
No |
| CSX Transportation | Yes | Yes | No |
| Ferromex | No | No | Yes |
| Kansas City Southern Railway | No | Yes | Yes |
| Norfolk Southern Railway | Yes | Yes | No |
| Union Pacific Railroad | No | Yes | No |
| Via Rail | Yes | No | No |
What is a Class II Railroad?
A Class II railroad in the United States is a mid-sized company that moves freight. As of 2011, a Class II railroad earns more than $37.4 million but less than $433.2 million in revenue. They must earn this amount for at least three years in a row. Smaller railroads that only switch cars or serve terminals cannot be Class II railroads.
What is a Class III Railroad?
A Class III railroad is the smallest type of railroad. It earns less than $20 million in revenue each year. These are often called "shortline" railroads.
