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Does Amtrak need competition?
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<p>[quote user="ACY"]</p> <p>So transportation by water isn't subsidized?</p> <p>Just how much does it cost to run the Army Corps of Engineers and the Coast Guard, anyway? [/quote]</p> <p>The key point is how much of the so-called subsidies to the Army Corps of Engineers and the Coast Guard benefits Amrak's competitors. The relevant metric is subsidy per passenger mile, although there are some other metrics worth considering. One of them is benefit per passenger mile. </p> <p>One of the mistakes made frequently when comparing subsidies, i.e. aviation, highways, etc., is to assume that commercial transport is the only beneficiary of the subsidy. NARP makes this mistake. It implies that all of the transfers from the General Fund to the Aviation Trust Fund benefit the commercial airlines. Not true! </p> <p>The commercial airlines use approximately 30 to 35 per cent of the air ways - includes airports - and air traffic control system outputs. The remainder is used by general aviation and military aircraft operating in civilian air space. So only the portion of the subsidy that directly benefits the airlines should be considered. </p> <p>NARP also overlooks the benefits of the commercial air system when discussing aviation subsidies. It should talk about the cost/benefit ratio. This also applies to those who talk about subsidies to motorists - commercial and personal, etc. They winge about the subsidies but overlook the benefits to the nation as a whole.</p> <p>Passenger rail makes sense in relatively short, high density corridors where the cost of expanding the airways and highways is prohibitive. Very few areas meet this criteria. This is where the nation should invest its scarce transport dollars. Whatever subsidies flow to other modes of transport are largely irrelevant to this decision.</p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p>
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