U.S. Seeks States' Input on Private Amtrak Routes 4-13-04

[Anonymous]

WASHINGTON (Reuters) - The Bush administration sought information on Tuesday from states on how they would contract rail service to private companies if Amtrak were dismantled and some or all of its routes were open to competition.

The Transportation Department's regulatory filing also sought to determine which states or group of states would be interested in bidding out and overseeing privately run city-to-city service and which states would be best positioned to move forward.

Frustrated by Amtrak's perennial losses, its embarrassing failure to ween itself from government subsidies, and annual fights with Congress over rail funding, the Bush administration has proposed to dramatically overhaul the railroad's operations.

The plan would dismantle Amtrak's overarching responsibilities as a federal corporation over several years and turn over major oversight to the states, which could contract service to private companies or return the business to Amtrak.

Amtrak runs 250 trains in 46 states on an average weekday. Ridership topped a record 24 million in 2003 and current figures show Amtrak could carry more passengers this year. It has operated city-to-city routes without competition for 33 years.

A spokesman for the railroad had no comment on the latest development in the proposal but Amtrak President David Gunn is skeptical of privatization efforts, especially any proposal to separate Amtrak from its responsibility for maintaining its infrastructure.

Congress is weighing the administration's plan and has permitted the Federal Railroad Administration to gauge interest from the states even though many lawmakers whose states benefit from Amtrak service are not convinced that breaking up the railroad is wise.

State governments have also expressed some skepticism, particularly over cost at a time of severe budget constraints.

But Transportation Secretary Norman Mineta has said private rail operators may be able to provide more efficient, reliable and cheaper service.

The agency has tightened its oversight of Amtrak since a funding crisis almost triggered a shutdown in 2002. It must now meet a series of financial benchmarks to receive its annual subsidy, which exceeds a record $1.22 billion this year. Amtrak wants close to $2 billion next year, but the administration does not support this request.

The railroad has also taken steps on its own to reform its business practices and stem red ink.

Amtrak has cut nearly 3,000 jobs and other costs over the past two years and eliminated unprofitable and inefficient businesses. It has also boosted its high-speed Acela service and is addressing some pressing repairs and updates to track, train cars and tunnels.

[daveklepper]

Fuel cell research money, entirely unnecessary because Hybrids can do the job to make USA energy independent far more economically, safely, and reliably, should all go to make Amtrak in frist class shape, take care of pinch points on the freight railroads to increase capacity, and help the short lines modernize for heavy cars. That would be a sane transportation policy. Dave Klepper

[jeaton]

Dave-Do you have or recall the amount budgeted or proposed for fuel cell research?

Jay

[Modelcar]

...."Failure to ween itself from government subsidies".....How long are they going to play that song....Are there still people there that believe Amtrak can make an overall profit.
And what states [besides a few], do they think can afford to pay for passenger train service however it would be formulated together. So many of Federal expenses have been handed down to them now and now expecting them to pick up the tab for this...and organize the system....??? Pipe dreams again...
This adminstration, the biggest spenders in history and now as always refuses to find an answer except bully their program through their way or little money will be forth coming. I personally hope Gunn shuts it all down before this adminstration chops it up in pieces and destroys it all.

[jeaton]

Here is my view on this. (And in line with Bergie's admonition, I'll keep it clean.) Someone in the administration, I suspect OMB Director Josh (Lets not spend anthing on domestic programs) Bolten has convinced the President that Amtrak is the epitome government spending on what should be a private,"for profit" business, not supported by Federal Government tax money. Since the primary criteria for White House decision making is "what will get the votes", it would appear that this action is based on the notion that cutting Federal spending is better for votes than continuing rail passenger service. Except, along comes a poll that says that 70% of the US supports the continuation of the service. Now it would be a big time embarrassment if Amtrak went down on the Bush watch.

So here is a plan. Let's shove the thing off on the states. Never mind that a disjointed, fragmented system, with multiple managements would be text book inefficiency. If the thing falls apart, we can cover by saying the states just dropped the ball.

Anybody who really thinks that the Bush Administration's plan would produce a more efficient, less costly national passenger system is dumber that a box of rocks.