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Amtrak's FY 2008 Key Performance Numbers

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[quote user="beaulieu"]  Here are some of the biggest problems I have with the numbers that you have posted, Most of the LD equipment is 20+ years old now, so should be fully depreciated. Two, Amtrak does not own most of its small stations, it pays small amounts of rent and for heat, lights, snow removal, etc. At large stations like Chicago eliminating the LD trains would allow you to eliminate the costs for checked baggage, but the fixed overhead would remain and your corridor traffic would now have to cover it, increasing their loss making. If by eliminating the LD trains Amtrak could eliminate its Resevation system and simplify its ticketing system to something like a commuter operation uses they could gain, but without this the remaining system will just see the fixed overhead numbers grow since the LD trains will no longer share the costs. The NEC (and the Michigan Corridor) is probably closer to 95 percent of the depreciation expense since things like subgrade and electrification equipment have very long depreciation periods. I wonder what Amtrak's expenses are for maintaining the Safe Harbor Dam on the Susquehanna River.? [/quote] Amtrak depreciates locomotives, cars, and other rolling stock over 40 years.  Accordingly, most of the locomotives, all of the Acela equipment, as well as the newer Superliner cars, etc. are still wearing some depreciation.  The amount is not available in the public reports, but the total depreciation for FY 2008 was $504.9 million. Right of way and other property exclusive of land is depreciation over 105 years.  Interest costs associated with capital projects, including the purchase of locomotives, cars, and other rolling stock, is capitalized and depreciated over the useful life of the asset. Of the long distance trains only the Auto Train covers its avoidable costs.  By contrast the NEC trains, as well as a majority of the State Supported and Other Short Distance Corridor trains, cover their avoidable costs.  Of the 30 other corridor trains, 22 cover their avoidable costs. The NEC covers its shared costs.  Four of the other corridor trains cover their shared costs.  And another five lose less than one million dollars per year.  The problem is the long distance trains. Eliminating the long distance trains would save Amtrak $635.2 million of avoidable costs and reduce the operating deficit by $180.7 million.  Furthermore, it would eliminate shared costs of $301.1 million, thereby eliminating $481.8 million of Amtrak's deficit.  Included in the shared costs would be the incremental costs incurred by Chicago's Union Station, as well as all other support activities, to support the long distance trains.    If the long distance trains were eliminated, Amtrak would have an operating profit of $822 million before accounting for shared costs, interest, depreciation, etc.  After shared costs it would have a profit of $251.5 million.  However, after depreciation, interest, and other charges, it would have a loss, which would be a function the percentage of these items chargeable to the NEC and other corridors.  This information is not available in the public reports. Passenger rail, indeed all commercial transport, should at least cover its avoidable costs.  Clearly, with the exception of the Auto Train, the long distance trains don't have a prayer of doing so.  This is why they should be eliminated, at least in their present form.  The NEC and other corridors, for the most part, cover their avoidable costs.  In fact, with proper management, they could cover all the shared costs, as well as a sizeable portion of the other charges including interest and depreciation.   These are not my numbers.  They are drawn from Amtrak's monthly operating reports, annual reports, and other management documents.
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