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Amtrak: Privitize it?
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<p>[quote user="MidlandMike"]</p> <p> </p> <blockquote> <div><img src="/TRCCS/Themes/trc/images/icon-quote.gif" /> <strong>YoHo1975:</strong></div> <div> <p> </p> <p> </p> <blockquote> <div><img src="/TRCCS/Themes/trc/images/icon-quote.gif" /> <strong>Sam1:</strong></div> <div> <p> </p> <p>The FY10 average net operating results per passenger, which are a function of revenues minus costs before depreciation, interest, and other expenses, were $4.96 for the NEC, due in large part to the positive operating results for the Acela offset by losses for the regional and the special trains, compared to a $16.67 loss for the corridor trains and $128.61 loss for the long distance trains.</p> <p class="MsoNormal"> </p> </div> </blockquote> <p> </p> </div> </blockquote> <p> </p> <p>The inference that I have gotten from some of the posts in this thread is that since the long distance train's cost are 6 times more per passenger than corridor trains, then they are that much more wasteful of taxpayers dollars. However, there does not seem to be any passenger-miles component in the figures. Since many LD routes are 6 times longer than corridor routes, if you look at costs per passenger mile they may possibly be comparable. Do we know the average passenger trip length on the different types of service? [/quote]</p> <p>This discussion has seemingly run on for ever. Finding this post was time consuming.</p> <p>Per my calculations, which assume that 80 per cent of Amtrak's depreciation, interest, and other expenses are allocable to the NEC, with the remaining 20 per cent being allocable equally to the state corridor trains, mostly state supported, and the long distance trains, the average loss per passenger mile for the NEC in FY10 was 20.8 cents vs. 16.5 cents for the state trains and 23.1 cents for the long distance trains. Unfortunately FY11 numbers are not available as explained in another post. In any case, the argument that the cost (loss) per passenger mile to run the long distance trains is not much greater than the NEC appears to be true.</p> <p>Assuming Amtrak had to cover all its allocable costs through the fare box, it would have to raise the average fare per passenger on the NEC by $48.67 vs. $21.68 for the state trains and $144.15 for the long distance trains. Needless to say, average fare increases of this magnitude would drive away a significant per cent of the long distance train riders, as well as the NEC passengers, making the trains even less price competitive.</p> <p>Contribution per passenger mile or seat mile is valuable for comparing mode efficiencies, especially between different modes of transport, but at the end of the day the deficits between revenues and costs have to be made up with real money. I see nothing in the figures to suggest that the argument for discontinuing the long distance trains is not valid, especially in light of the fact that less than one per cent of Americans choose the train for intercity trips of 50 miles or more, as per the 2009 National Transportation Statistics, which is published by the USDOT.</p>
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