STB Confirms Mendocino Railway's Status as a Class III Rail Carrier

On September 26, 2025, the Surface Transportation Board (STB) issued a definitive ruling affirming that Mendocino Railway is—and has been since 2004—a Class III rail carrier subject to the Board’s exclusive federal jurisdiction. This decision provides clarity regarding the railway's status and operational scope, especially in light of recent legal challenges.

Mendocino Railway, a subsidiary of Sierra Railroad Company, operates several heritage and freight rail services across Northern California, including the renowned Skunk Train route between Fort Bragg and Willits. The company petitioned the STB in July 2025 for confirmation of its status due to ongoing legal disputes with local municipalities and state agencies concerning its acquisition of the Fort Bragg Mill Site property. These challenges had raised questions about the railway's ability to operate as a common carrier under federal law.

The STB's ruling underscores the importance of consistent federal standards for short line and regional railroads nationwide—a principle strongly supported by the American Short Line and Regional Railroad Association (ASLRRA). By affirming Mendocino Railway's status as a federally regulated Class III rail carrier, the decision aims to streamline regulatory oversight and ensure consistent service standards across the region. This move is expected to bolster the company's ability to preserve and enhance its historic rail services while navigating the complexities of local development projects.