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North Carolina Should Require NC Railroad Company to Pay an Annual Dividend and Strengthen Reporting (October 2012)

Summary

The North Carolina Railroad Company (NCRR) has benefitted from its unique relationship with the State, the corporation's sole shareholder, but the State has not benefitted financially from this relationship. Selling NCRR or the railroad corridor may not be in the best interest of the State because these valuable rail assets and their long-term earnings potential would be lost. The State has limited mechanisms for oversight of NCRR, but changing its corporate structure requires a lengthy and complicated process. The General Assembly should amend state law to strengthen reporting by NCRR; require NCRR to pay a one-time dividend of $15.5 million and, thereafter, an annual dividend to the General Fund; and require NCRR to convey to the State properties not directly related to the railroad corridor so these properties can be sold and the proceeds deposited into the General Fund.

Final Report

Executive Summary

Presentation

Handout

FOLLOW-UP REPORT

Relevant Legislation:

  • S.L. 2013-360, Section 34.14: Required NCRR to prepare and maintain a strategic plan, develop and implement a performance management system, and issue an annual cash dividend to the State.

Cost Savings:

Press Coverage:

Related Reports:

PED Contact:

Program Evaluation Division, North Carolina General Assembly
Legislative Office Building, Suite 100
300 North Salisbury Street , Raleigh, NC 27603-5925
919-301-1404