Class II railroad
A Class II railroad in the United States is a mid-sized freight-hauling railroad, in terms of its operating revenue. As of 2006[update], 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 as "Regional Railroads" are typically Class II railroads.
The Surface Transportation Board 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 from a Class I railroad 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.
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