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Arguing that passenger rail may be a viable solution in high density corridors; that it would be a legitimate role for the federal government to help fund the capital improvements required to expand or launch it; and requiring the users to cover the operating costs does not strike me as inconsistent. I have always discussed the numbers shown in Amtrak's financial and operating reports.  I have not said that the system has not covered its operating costs on certain segments, particularly the NEC, but it has not done so on a consistent basis.  And I am doubtful that the envisioned moderate or high speed rail corridors will be able to do so.  What is crystal clear, however, is that Amtrak cannot cover its fully allocated costs without a significant infusion of federal and state funds.  As a result it requires a greater per passenger mile subsidy of any form of common transportation. In FY08 Amtrak received $1.4 billion in federal paid in capital as well as $110 million in state paid in capital.  Divided by the number of passenger miles produces an average system subsidy of 22.61 cents per mile.  This would include the operating and capital subsidy.  The system needs both of them to survive. The operating results per passenger mile for each route can be found in the monthly Amtrak Operating Reports, with the September reports showing the results for the fiscal year.  In FY08 the NEC realized an operating profit of $369 million or an average of 20.7 cents per passenger mile (34.9 cents for the Acela and 12.8 cents for the regional trains).  However, on a fully allocated basis, the NEC had a loss of nearly 6 cents (average) per passenger mile.  The State Supported and Other Short Distance Corridor trains lost an average of 6.6 cents per passenger mile, whilst the long distance trains lost an average of 18.5 cents per passenger mile.  Amtrak does not tell us how the interest and depreciation is allocated.  Since the NEC is Amtrak's largest capital investment, it is reasonable to assume that 80 per cent of it is attributable to the NEC, with 10 per cent being attributable to each of the other categories. In FY09 Amtrak received $1.6 billion in federal paid in capital as well as $126 million in state paid in capital.  I have not calculated an average system subsidy for FY09.  However, since the transfer amount from the federal and state governments is higher than FY08, whilst the passenger miles dropped, the average system subsidy per passenger undoubtedly increased in FY09. In FY09 the NEC had a $200,000 operating profit before interest and depreciation.  It barely covered the operating costs.  On a passenger per mile basis, the 11.8 cents earned by the Acela was wiped out by the loses on the regional and special trains.  The State Supported and Other Short Distance Corridor trains lost an average of 13 cents per passenger mile, whilst the long distance trains lost an average of 21.5 cents per passenger mile.  These results were before interest and depreciation.  After interest and depreciation the system probably lost more money per passenger mile in FY09 than FY08.  Only the Acela covered its operating costs in FY09.  Every other train had an operating loss, and most of them, on average, were up significantly over FY08.   In FY09 the Pacific Surfliners lost 10.7 cents per passenger mile.  Amtrak does not breakout the results for the LAX to San Diego segment of the Pacific Surfliner operations.  At the end of the FY10 first quarter (December 2009), no results were shown for the Washington to Lynchburg service. If the long distance trains were terminated, Amtrak's financial results would improve dramatically.  Whether it could cover its operating costs on a consistent basis, given its current structure, is doubtful.  Whether any of the planned high or moderate speed corridors in the U.S. will cover their operating expenses on a consistent basis is equally problematic.  What is not in doubt is the fact that none of them will be able to hoist their capital costs. Amtrak has lost more than $25.4 billion since its inception.  As stated by its external auditors, its prospects for covering its costs without significant government support are nil.  If Amtrak was a business, it would have gone belly up decades ago.
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