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23
STB. Effective April 26, 2007, we implemented new fuel surcharge programs covering this regulated traffic,
which represents approximately 19% of our current revenue base. These new programs use mileage (as
opposed to percent of revenue) as the basis for calculating fuel surcharges, and they use the On-Highway
Diesel Price index – published by the Energy Information Administration – for purposes of determining fuel
costs. The new programs affect fuel surcharges assessed for certain shipments of agricultural, chemical, and
industrial products, and, to a lesser extent, coal. In addition, we reset the effective base fuel price at which our
new mileage-based fuel surcharge programs take effect, resulting in a higher starting point of $2.30 per gallon
versus $1.35 per gallon.
All six commodity groups produced double-digit revenue growth in 2006, including over 20% growth of
revenue from agricultural commodities. Price increases, fuel surcharges, and index-based contract escalators,
which are formulas in our shipping contracts that correlate price adjustments to certain economic indices, all
contributed to higher ARC. Our fuel surcharge programs (excluding index-based contract escalators that
contain some provision for fuel) generated an additional $656 million in commodity revenue compared to
2005, contributing 5% to commodity revenue growth. Volume increased 3% during the year, led by solid
growth of intermodal and energy shipments, which were partially offset by lower shipments of industrial
products and chemicals. Lower volume in 2005 due to the January West Coast storm, SPRB Joint Line
disruptions, Hurricane Rita and the Kansas washouts also contributed to this year-over-year growth.
The following tables summarize the year-over-year changes in commodity revenue, revenue carloads, and
ARC by commodity type:
Commodity Revenue
Millions of Dollars 2007 2006 2005
% Change
2007 v 2006
% Change
2006 v 2005
Agricultural .......................................... $ 2,597 $ 2,395 $ 1,971 8% 22%
Automotive .......................................... 1,469 1,438 1,273 2 13
Chemicals............................................. 2,293 2,098 1,848 9 13
Energy................................................... 3,136 2,953 2,578 6 15
Industrial Products.............................. 3,110 3,168 2,814 (2) 13
Intermodal ........................................... 2,911 2,810 2,473 4 14
Total ..................................................... $15,516 $14,862 $12,957 4% 15%
Revenue Carloads
Thousands 2007 2006 2005
% Change
2007 v 2006
% Change
2006 v 2005
Agricultural .......................................... 902 923 883 (2)% 5%
Automotive .......................................... 826 834 797 (1) 5
Chemicals............................................. 928 896 912 4 (2)
Energy................................................... 2,299 2,296 2,178 - 5
Industrial Products.............................. 1,325 1,446 1,503 (8) (4)
Intermodal ........................................... 3,453 3,457 3,271 - 6
Total ..................................................... 9,733 9,852 9,544 (1)% 3%
Average Revenue per Car 2007 2006 2005
% Change
2007 v 2006
% Change
2006 v 2005
Agricultural .......................................... $ 2,880 $ 2,595 $ 2,233 11% 16%
Automotive .......................................... 1,779 1,724 1,598 3 8
Chemicals............................................. 2,471 2,342 2,026 6 16
Energy................................................... 1,364 1,286 1,184 6 9
Industrial Products.............................. 2,347 2,190 1,871 7 17
Intermodal ........................................... 843 813 756 4 8
Average................................................. $ 1,594 $ 1,509 $ 1,358 6% 11%