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Time to outsource?

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Posted by ACY Tom on Thursday, February 13, 2014 10:06 AM
BaltACD: We have no disagreement. My point is that Amtrak has these other expenses related to creature comfort. Once the fares are collected and all the operational expenses are doled out for fuel, maintenance, supplies, personnel, & various other overhead costs, there is precious little left over with which to pay the host railroad. It should be obvious that operation of a UPS train is always going to be more profitable for the host railroad because UPS has more money available to pay. Whether or not this means the host railroad should be happy with its contract with Amtrak is another question which I have not attempted to answer. I was just stating the fact. However, Schlimm is correct when he points out that the original deal that the host railroads agreed to, stipulated that they would operate these trains. The schedule is agreed upon by both parties & it seems to me that Amtrak should be able to expect the host railroad to adhere to it. The schedule of my train has been adjusted at least twice during my Amtrak career, and both times it was adjusted at the request of CSX --- not Amtrak.
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Posted by BaltACD on Thursday, February 13, 2014 8:50 AM

ACY
Amtrak can NEVER be as profitable as a UPS train that doesn't need to cook food, or to provide snacks or liquor, or to provide a dry place to sleep, or warmth in the winter, or A/C in the summer, or toilets, or the human contact that is unique to the passenger train experience. But should that mean rail passengers are always going to be at the very bottom of the pecking order?

The profit I am refering to is not Amtrak's - it is the host carriers.  If Amtrak makes it more profitable for the host carrier to operate Amtrak On Time than other host carrier traffic, then Amtrak get's priority. 

When you pay bargin basement prices to host carriers, you get bargin basement priority. 

The on board ammenties to passenger is Amtrak's work product - not the host carriers.

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Posted by schlimm on Thursday, February 13, 2014 8:15 AM

PNWRMNM

ACY
Amtrak can NEVER be as profitable as a UPS train that doesn't need to cook food, or to provide snacks or liquor, or to provide a dry place to sleep, or warmth in the winter, or A/C in the summer, or toilets, or the human contact that is unique to the passenger train experience. But should that mean rail passengers are always going to be at the very bottom of the pecking order?

ACY

ATK gets a basically free ride on the freight carriers due to the way the statute is written. If ATK made the same contribution per train mile as the typical freight trainm then ATK would be a valued customer to the carriers instead of a pain in the posterior.

Think of it this way, how much respect do you have for the armed robber who just stuck you up?

Mac

ACY: Amtrak should get equal treatment by law, but it obviously does not and will not.  When the freight railroads were allowed to end passenger service by law, they agreed to host Amtrak. That was the deal.  But as in the earlier pre-Amtrak days of bizarre accounting methods and horrible service to drive away passengers, they are doing the same stuff now.   Their goals are not compatible with hosting passenger services, even if the fee were higher because of speed differentials, etc.   Also remember, the freight lines downgraded their capacity on many routes (double track to single; 4 trck to double) in a short-range desire to cut costs.  Very expensive to bring that capacity back.   The only way to have passenger service is on RoW controlled by that service.

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Posted by PNWRMNM on Wednesday, February 12, 2014 10:42 PM

ACY
Amtrak can NEVER be as profitable as a UPS train that doesn't need to cook food, or to provide snacks or liquor, or to provide a dry place to sleep, or warmth in the winter, or A/C in the summer, or toilets, or the human contact that is unique to the passenger train experience. But should that mean rail passengers are always going to be at the very bottom of the pecking order?

ACY

ATK gets a basically free ride on the freight carriers due to the way the statute is written. If ATK made the same contribution per train mile as the typical freight trainm then ATK would be a valued customer to the carriers instead of a pain in the posterior.

Think of it this way, how much respect do you have for the armed robber who just stuck you up?

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Posted by desertdog on Wednesday, February 12, 2014 5:33 PM

ACY
Amtrak can NEVER be as profitable as a UPS train that doesn't need to cook food, or to provide snacks or liquor, or to provide a dry place to sleep, or warmth in the winter, or A/C in the summer, or toilets, or the human contact that is unique to the passenger train experience. But should that mean rail passengers are always going to be at the very bottom of the pecking order?

Outside of a few corridors, the vast majority of Americans do not ride Amtrak. In order for improved rail passenger service to become a priority, that vast majority would have to show an interest which they clearly do not have at present. I do not see anything on the horizon that is going to change this fact. That being the case, it will get little attention from either party in Washington.

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Posted by ACY Tom on Wednesday, February 12, 2014 5:00 PM
Amtrak can NEVER be as profitable as a UPS train that doesn't need to cook food, or to provide snacks or liquor, or to provide a dry place to sleep, or warmth in the winter, or A/C in the summer, or toilets, or the human contact that is unique to the passenger train experience. But should that mean rail passengers are always going to be at the very bottom of the pecking order?
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Posted by BaltACD on Wednesday, February 12, 2014 4:45 PM

aricat

Outside the NEC,Amtrak trains operate on trackage owned by someone else. They own the tracks, the signals and do the dispatching. They serve their own best interests first and have done so since day one of Amtrak. What can induce the railroads to provide priority to passenger trains over their profitable freights. I really don't the answer and sometimes I feel nobody does either. The railroads are in business to make money; not let operators like Amtrak clog their rails with passenger trains unless they receive enough financial inducements to do so. Any operator, Amtrak, Commuter entities or anyone else is at the mercy of the one who owns the track.

When Amtrak makes their On Time operation profitable enough for the freight carriers to give more priority to Amtrak than the carriers own trains, Amtrak will get the priority.  Priority does not come as cheaply as Amtrak is currently paying.

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Posted by aricat on Wednesday, February 12, 2014 12:37 PM

I don't care who operates the trains; the focus or course has to be who owns the tracks.One of the failures of privatization in Britain was the creation of Railtrack, a private enterprise motivated solely by profit, that took over the maintenance of the right of way and signaling among others and immediately had the traveling public up in arms about the cost for the public to travel on the new private operators trains. The British Government re-nationalized the track and infrastructure from Railtrack and left the operation of the trains in the hands of private operators through franchising. What the British did won't work in America, or will it?

Outside the NEC,Amtrak trains operate on trackage owned by someone else. They own the tracks, the signals and do the dispatching. They serve their own best interests first and have done so since day one of Amtrak. What can induce the railroads to provide priority to passenger trains over their profitable freights. I really don't the answer and sometimes I feel nobody does either. The railroads are in business to make money; not let operators like Amtrak clog their rails with passenger trains unless they receive enough financial inducements to do so. Any operator, Amtrak, Commuter entities or anyone else is at the mercy of the one who owns the track.

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Posted by Deggesty on Wednesday, February 12, 2014 11:12 AM

Thank you, Paul.

And, it is possible to disagree without being discourteous. It is discourteous for a person who disagrees with someone else to call the one with whom he disagrees a demeaning name. In the short time  (about seven years) that I have been enjoying participation in the forums I have appreciated the courtesy that is generally shown to other participators. May practice continue.

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Posted by Paul Milenkovic on Wednesday, February 12, 2014 11:06 AM

dakotafred

Contractors would need too much money. Let taxpayers continue their modest subsidy of decent rail service as it is. The subsidy is a drop in the bucket compared to the public money spent on competing forms of passenger transportation, let alone on "entitlements."

OK, let's "deconstruct" politics.  The contractors "would need too much money", that is, that we would end up spending more (public) money if we subcontracted Amtrak is an opinion, a person's "two cents", a point that we can at least reason and discuss.

"The subsidy is a drop in the bucket" is a widely held, mainstream opinion among participants, but it is blatently political.  Drop in the bucket, says who and compared to what, and then we waltz off the political cliff.  The discretionary Federal budget is made up of many small items, many drops in the bucket, each the most important drop in the eyes of the beneficiaries. 

Then, the subsidy is deemed small in relation to "public money spent on competing forms of passenger transportation."  We have been over this point before, that the subsidy to Amtrak is small, but the work product is also small, and hence the total expenditure on Amtrak is small but the expenditure per unit of work product (passenger mile) is rather visible and rather large, and then we get into arguments about not-visible subsidy to other modes along with difficult-to-put-a-dollar figure benefits of trains and "how dare you put a dollar figure" benefits of trains, and the discussion also slides off the political cliff.

Finally, the comparison is made to "entitlements" (in "scare quotes" -- don't know if the person is critical of the non-discretionary portion of the Federal budget or supports it and uses scare quotes because perhaps "entitlements" is a politically loaded word used by the Libertarian/right).

Entitlements are things like Social Security and Medicare.  To suggest that maybe seniors are getting too much of their lifetime payroll tax payments (and yes, the pay-it-forward contribution from the current generation of wage earners) back in the form of medical expense reimbursement and a cash pension instead of in the form of passenger trains is as political as you can get.

Do I get to use exclamation points, and how many?  I can understand that trains are so important and everything else the government spends much more money on is so wasteful that it is at least arguable (and had been fashionable, say, a few years ago) to compare expenditures on trains to the U.S. expenditures in treasure on foreign expeditionary wars.

But we are benchmarking the worthiness of trains against -- entitlement benefits to seniors?  I once offered that comparison as a reductio-ad-absurdum to people who were beating on the comparison to Defense, but are we here taking such an argument seriously?  That passenger trains are a higher priority than seniors?  I guess people take such an argument seriously, people are so wedded to trains that no one around here regards such an argument as blatantly political let alone bats an eye?

Political is in the eye of the beholder, including that of our esteemed hosts at Kalmbach.  I am old enough to remember Trains Editor David P Morgan who was quite thoroughly political in a way that would be unpopular here on this forum, not to mention his "Professional Iconoclast" Mr. Kneiling.  The current Trains is quite political in a way different from Mr. Morgan's politics, but I guess that is free enterprise because Trains is not a non-profit think tank, it is a business that needs to make its expensesl plus a small return for its owners.  The current Trains doesn't seem political because it is well aligned with its readership as opposed to David P Morgan who was vigorously swimming upstream.

The strength of this place is the strength of the David P Morgan Trains magazine.  Morgan saw "trains going away that there will be none left for enthusiasts to enjoy", and his opinion soapbox was meant to nudge the industry in a direction so it would stay around.  The Staggers Act pretty much saved a freight railroad industry whereas the NPRC Act kinda saved passenger service in the form of Amtrak but Amtrak is constantly and continually in peril.  I want to see all points of view represented so there will remain a passenger network for us to be enthusiasts about.

If GM "killed the electric car", what am I doing standing next to an EV-1, a half a block from the WSOR tracks?

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Posted by Paul Milenkovic on Wednesday, February 12, 2014 10:30 AM

schlimm

PNWRMNM
You also see many obviously political comments on other threads. Once is in while the statist/government/we know better than thee crowd screams politics when someone puts forth the opposite view.

Come off it!!    I would point out that several frequent posters [you, greyhounds, to name just two] regularly interject their anti-regulation views, some on almost every post, without any complaints from those of us who do not agree.

If a person disagrees with an anti-regulation viewpoint, a person can disagree and list reasons why regulation is effective in the context of a particular discussion, that is, instead of making blanket remarks about "talk radio" in one instance" or "right-wing think tanks and anti-train people" in others.  If a person objects to outsourcing functions of Amtrak, say that one disagrees on the basis of supporting unions -- in the context of Amtrak or whatever the discussion -- rather than accusing everyone who wants to consider, to even consider any other incentive structure than the status quo as engaged in "sly . . . union busting."

Yes, supporting Amtrak and by extension supporting passenger trains is expressing a certain political viewpoint, that viewpoint may be regarded as middle-of-the-road, mainstream, reasonable, obvious, and so on.  But Amtrak cannot function without government subsidy, and many reason that passenger trains with their long list of arguable and sometimes unquantifiable benefits cannot function without government support.

Given that a pro-regulation pro-subsidy view is pretty much the default political orientation among persons supporting passenger trains, I once had the temerity to suggest, not to support, but to suggest that maybe participants who indeed have anti-regulation views to be given "some space" to say what they have to say without yelling "politics! politics!"  For my troubles, I was branded a troublemaker and ordered to leave this place and express my views on "right-wing/Libertarian Web sites."

What happens is that, dunno, an industry insider who indeed supports passenger trains along with the regulations and subsidies needed to make them happen, such a person offers suggestions about how Amtrak could be more effective with certain changes, or perhaps offers comparisons between the staffing of Beech Grove and a major railroad central shop.  The mere breath of such suggests brings cries of "anti-labor" and "union busting", which is blatantly political by any objective criterion, especially in the way those accusations are made.  This in turn brings some of the more Libertarian-leaning Forum followers who usually just read the proceedings off the sidelines, and of course, we can't have any of such remarks because they are anti-government, anti-train, and anti-common sense.

If GM "killed the electric car", what am I doing standing next to an EV-1, a half a block from the WSOR tracks?

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Posted by schlimm on Wednesday, February 12, 2014 10:06 AM

V.Payne
Then management and the unions have a joint interest in increasing efficiency as they will only get more compensation if they generate more revenue at less costs.

The freight railroaders on here in positions in management high enough to know seem to indicate that there are fewer lines available now than 45 years ago, the routes are near-capacity and they really see passenger trains as a burden.   I don't see how your reimbursement scheme would alter that picture, creative as it is, and certainly not with 6 or more faster passenger trains added to the mix.

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Posted by schlimm on Wednesday, February 12, 2014 10:02 AM

PNWRMNM
You also see many obviously political comments on other threads. Once is in while the statist/government/we know better than thee crowd screams politics when someone puts forth the opposite view.

Come off it!!    I would point out that several frequent posters [you, greyhounds, to name just two] regularly interject their anti-regulation views, some on almost every post, without any complaints from those of us who do not agree.

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Posted by V.Payne on Tuesday, February 11, 2014 8:15 PM

Keep the unions, but tie Amtrak's subsidy to a per passenger mile value (that is less than the interstates cost after fuel taxes are applied). The value would be different depending upon ownership of infrastructure.

There is plenty of financial upside potential on the conventional network in running trains with at least a capacity of 400-500 passengers and in actually having a network, say out of Atlanta, Cincinnati, Dallas, Jacksonville, and Memphis with departures three times a day in multiple directions.

Then management and the unions have a joint interest in increasing efficiency as they will only get more compensation if they generate more revenue at less costs.

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Posted by PNWRMNM on Tuesday, February 11, 2014 9:23 AM

ACY

Kalmbach's written policy, if implemented to the letter, would preclude virtually any discussion of ATK, since as you correctly point out the entire subject is political.

You also see many obviously political comments on other threads. Once is in while the statist/government/we know better than thee crowd screams politics when someone puts forth the opposite view.

The good news is that the moderators tread very lightly on political speach here. It would be nice to see Kalbmach revise their policy to reflect reality but I see no hope of that happening.

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Posted by ACY Tom on Monday, February 10, 2014 9:27 PM
Lots of opinions here. Some of us want drastic changes in Amtrak; some want tweaking; a few may want the status quo. Interesting that it's "political speech" when someone criticizes some potential changes because those changes might constitute union-busting; but it was not "political speech" when the suggestion was first made that the solution was to contract out (and bypass those pesky unions). What's good for the goose is good for the gander. Actually, Amtrak was a political creation dating back to the days before it existed, when we called it Railpax. To discuss it at all is to discuss politics. If we can't discuss the political dimensions of these Amtrak issues, then we can't discuss Amtrak at all & the subject should never have been brought up in the first place.
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Posted by schlimm on Monday, February 10, 2014 4:07 PM

Paul Milenkovic

By running once-a-day long-distance trains on congested freight networks that are an important part of the overall economy in delivering that freight whereas passenger trains are carrying a tenth a a percent of total U.S. passenger miles, that it is all the fault of Congress for not allocating enough subsidy money?  Of the freight railroads for not putting their trains in sidings to give Amtrak priority?

Once, just once, could people who advocate for passenger trains admit that maybe the advocacy community has an unrealistic expectation of the on-time service that could be provided for an occasional service on a heavily used network, that making the trains run on time would require a large amount of money to provide the traffic capacity for thinly used trains, and it is all not the "railroads fault"?

Agree.  Running once-a-day long distance trains on congested freight lines is not providing passenger rail service.  Running on time or running multiple (5-10 or more each way) trains is simply neither compatible with the host railroad's priorities nor the priorities of a rational, focused Amtrak.  For those reasons, ending the fiction of LD passenger service by Amtrak in favor of competitive corridor services on dedicated RoWs, is, I believe, what "advocates" [whoever they are] should make the goal.   Private cruise rail lines can operate nostalgia trains on schedules that fit with traffic flow on LD routes for the extremely limited market that might patronize them.

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Posted by henry6 on Monday, February 10, 2014 4:02 PM

Two things. 1) I don't believe my remarks are politcal as I am not taking sides but rather reporting history as it has happened. and 2) it doesn't make any difference if I did simply because you cannot talk government  outsourcing without being political.

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Posted by schlimm on Monday, February 10, 2014 3:57 PM

Paul Milenkovic

henry6

Ronald Reagan threw the air traffic controllers out of their towers, their jobs, and broke the unions.  Government and business took that as their cue to do the same.  Most attempts at privatizing are of the same action and attitude.  There are those who feel that business and services are the purview of private enterprise without understanding the roles of government and business or they do it just to rid the country of unions based on old concepts of unionism.  Today's unions work to save the employer money, shapen work rules and regulations, and increase individual productivity in order to save both jobs and the business.  No doubt there are pockets of 19th and 20th Century unionisms, but for the most part they are more likely to have moved beyond that.  Damning and condemning unions based on the past is wrong and unenlightened political thinking (except as being used as a tool to bend minds and spin concepts).  Privatizing a service or job groups may not be as efficient nor as economical as purported. 

You are expressing an arguable point of view from the standpoint of politics -- the relationship between government and business and unions, the arguable but not universally agreed-upon benefits of unions, a political interpretation of actions Ronald Reagan took (with respect to an illegal strike by a public-employee union). 

Explain to me why these remarks are not overtly political and hence not appropriate for this forum?  Those of you who object to anyone's political remarks around here, tell me how these remarks are not political?

Although I tend to oppose the recent assault on unions, I agree that henry's remarks are very political and do not belong on this forum, according to the current rules.  I also believe, as in many historical events, there was rather more to Reagan vs PATCO than your account.

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Posted by BaltACD on Monday, February 10, 2014 3:14 PM

One concept of railroad operation that many people cannot comprehend is that line segments can be FULL in the traffic they are handling - both single track and multiple track line segments.

Every train occupys space.  Space that only it can occupy.  In movement, a 9000 foot freight train and a 800 foot passenger train operationally have the same space requirement, until such time as trains 'close up' under restricted speed at Stop signals or in occupied sidings.  To move at track speed in signaled territory trains require a minimum of two blocks between them for the following train to have a Clear signal (under some signal systems that may be three blocks). 

With the changes to the signal systems required to implement PTC the carriers in many cases are respacing their Intermediate signals to allow proper braking distances for the freight trains that are being operated in today's railroad world, not the train sizes of 40-50 years ago when a lot of track and signal changes were made with the decrease in passenger train importance to the carriers.  In many cases the space between Intermediate signals is being increased from 1.5 or 2 miles to 3 miles.  So for a train to receive a Clear signal, the preceeding train must now be from 6 to 9 miles ahead of the train expecting the Clear signal.  Longer, heavier, faster freight trains are the facts of todays railroads and will be the reality of tomorrows.

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Posted by Paul Milenkovic on Monday, February 10, 2014 2:02 PM

ACY
Thanks, Henry & others. The other thread re. Amtrak cuts is covering much the same territory. If I, as a Union member, violate Company policy, or steal from the Company, or fail/refuse to do my job, or take undue advantage of the Company, then the Union can't protect me. The Union guarantees me two major things: 1. The right & opportunity to redress grievances; 2. Reasonable wages and benefits. If I give away free wine or newspapers to passengers, it is because the Company, through my Supervisors, has provided that wine and has told me to do so. I get very tired of front-line employees being blamed for the decisions of Management. In this case, it's not just Management, but the freight railroads that can't keep trains on time, and Congress with their naïve and ignorant expectations, and contractors who provide a second-rate product that we are expected to use to provide first-rate service. If we let down our guard and let the public see our discouragement or weariness, then we end up taking the heat. That's reality.

I am not blaming hard working "line employees", union or otherwise for anything.

But am I to understand that the position of passenger train advocacy is "just give me (Amtrak) money", that if Congress just wrote a big enough check, everything would be fine?

There are design trades in everything.  By running once-a-day long-distance trains on congested freight networks that are an important part of the overall economy in delivering that freight whereas passenger trains are carrying a tenth a a percent of total U.S. passenger miles, that it is all the fault of Congress for not allocating enough subsidy money?  Of the freight railroads for not putting their trains in sidings to give Amtrak priority?

Once, just once, could people who advocate for passenger trains admit that maybe the advocacy community has an unrealistic expectation of the on-time service that could be provided for an occasional service on a heavily used network, that making the trains run on time would require a large amount of money to provide the traffic capacity for thinly used trains, and it is all not the "railroads fault"?

If GM "killed the electric car", what am I doing standing next to an EV-1, a half a block from the WSOR tracks?

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Posted by Paul Milenkovic on Monday, February 10, 2014 1:55 PM

henry6

Ronald Reagan threw the air traffic controllers out of their towers, their jobs, and broke the unions.  Government and business took that as their cue to do the same.  Most attempts at privatizing are of the same action and attitude.  There are those who feel that business and services are the purview of private enterprise without understanding the roles of government and business or they do it just to rid the country of unions based on old concepts of unionism.  Today's unions work to save the employer money, shapen work rules and regulations, and increase individual productivity in order to save both jobs and the business.  No doubt there are pockets of 19th and 20th Century unionisms, but for the most part they are more likely to have moved beyond that.  Damning and condemning unions based on the past is wrong and unenlightened political thinking (except as being used as a tool to bend minds and spin concepts).  Privatizing a service or job groups may not be as efficient nor as economical as purported. 

You are expressing an arguable point of view from the standpoint of politics -- the relationship between government and business and unions, the arguable but not universally agreed-upon benefits of unions, a political interpretation of actions Ronald Reagan took (with respect to an illegal strike by a public-employee union). 

Explain to me why these remarks are not overtly political and hence not appropriate for this forum?  Those of you who object to anyone's political remarks around here, tell me how these remarks are not political?

If GM "killed the electric car", what am I doing standing next to an EV-1, a half a block from the WSOR tracks?

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Posted by schlimm on Monday, February 10, 2014 12:09 PM

oltmannd

Is Amtrak management trying to bring us the most and best passenger rail service at the least cost or are they just trying to protect their own fiefdoms?  How do we get them to more of the former and less of the latter?

Generally, the way this has worked best in out economy it to bring free market forces (not always the same as a free market)  to bear.  This does not have to happen outside of government, although it seems much harder to make happen inside government.

Which is why I sought to introduce a totally different approach, to step away from ideology and the usual unproductive conflictual discussions, especially pro or anti government or unions.  The non-profit model may be inapplicable or not, but might be worth consideration.

I also want to agree with what ACY said and draw the obvious conclusion.  We are not going to have any sort of decent passenger rail transportation service system in the US as long as we are dependent on private freight railroads as hosts outside the NEC and a few other places.  The objectives are incompatible.

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Posted by oltmannd on Monday, February 10, 2014 11:39 AM

Paul of Covington

   I have to control myself to keep this brief.    Nothing is absolute.   I am tired of hearing that the government is always bad, and private business is always good.   I have deleted the rest of my comments to avoid getting too political.

 

In the end, it has nothing to do with government or private business or union or non-union.  It has everything to do with setting the game up such that you are rewarding the behavior you want.

It has nothing to do with how hard working or conscientious Amtrak employees are.  It has everything to do with the work they are assigned and the opportunity for improved productivity.

Is Amtrak management trying to bring us the most and best passenger rail service at the least cost or are they just trying to protect their own fiefdoms?  How do we get them to more of the former and less of the latter?

Generally, the way this has worked best in out economy it to bring free market forces (not always the same as a free market)  to bear.  This does not have to happen outside of government, although it seems much harder to make happen inside government.

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Posted by Paul of Covington on Monday, February 10, 2014 11:01 AM

   I have to control myself to keep this brief.    Nothing is absolute.   I am tired of hearing that the government is always bad, and private business is always good.   I have deleted the rest of my comments to avoid getting too political.

 

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Posted by ACY Tom on Monday, February 10, 2014 9:58 AM
Thanks, Henry & others. The other thread re. Amtrak cuts is covering much the same territory. If I, as a Union member, violate Company policy, or steal from the Company, or fail/refuse to do my job, or take undue advantage of the Company, then the Union can't protect me. The Union guarantees me two major things: 1. The right & opportunity to redress grievances; 2. Reasonable wages and benefits. If I give away free wine or newspapers to passengers, it is because the Company, through my Supervisors, has provided that wine and has told me to do so. I get very tired of front-line employees being blamed for the decisions of Management. In this case, it's not just Management, but the freight railroads that can't keep trains on time, and Congress with their naïve and ignorant expectations, and contractors who provide a second-rate product that we are expected to use to provide first-rate service. If we let down our guard and let the public see our discouragement or weariness, then we end up taking the heat. That's reality.
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Posted by henry6 on Monday, February 10, 2014 8:57 AM

Ronald Reagan threw the air traffic controllers out of their towers, their jobs, and broke the unions.  Government and business took that as their cue to do the same.  Most attempts at privatizing are of the same action and attitude.  There are those who feel that business and services are the purview of private enterprise without understanding the roles of government and business or they do it just to rid the country of unions based on old concepts of unionism.  Today's unions work to save the employer money, shapen work rules and regulations, and increase individual productivity in order to save both jobs and the business.  No doubt there are pockets of 19th and 20th Century unionisms, but for the most part they are more likely to have moved beyond that.  Damning and condemning unions based on the past is wrong and unenlightened political thinking (except as being used as a tool to bend minds and spin concepts).  Privatizing a service or job groups may not be as efficient nor as economical as purported. 

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Posted by oltmannd on Monday, February 10, 2014 8:16 AM

henry6

CSSHEGEWISCH

I'm going to rain on the parade and suggest that any attempt at outsourcing may well require a renegotiation of existing labor contracts, a time-consuming process at best.

Yes...that is the point of many privatization attempts, to break the unions.  Sly, aren't they.

There's a large area between "no union" and "existing contract" and, yes, it's very likely Amtrak's labor contract are loaded up with all sorts of things that defend the status quo - because that's job protection for management as well as labor.  

But, because something may be hard or time consuming to do doesn't mean "give up".  It's worth noting that there has been great change on the freight roads in the past three decades - two man crews, RCO, etc. - and they are still union shops.  It took de-reg for market forces to hit operations full force and create change.  Why not at Amtrak, too?

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by oltmannd on Monday, February 10, 2014 7:59 AM

desertdog

schlimm

henry6

The contractor signs a contract with the government agency to operate the system for a fee.  They get that fee from the fare box and the government supplying the difference.  Yes, the operator makes money, but the smoke and mirrors is that the government still has to subsidize.  So it Someplace Authority owns and operates a passenger service and it costs them $10 million dollars a month and they only collect $9 a month, the loose $1 million a month.  But if they hire a company to run the service who rakes in $10 million a month and pick up their loss million from the Authority it only costs the Authority  $1 million a month,  Now they can show the taxpayers they aren't losing $9 million a month operating the railroad but are saving that money instead.  Politicalbs explained.

Maybe I am missing something, but your numbers and point don't make any sense to me.

I'm with you on this one, Schlimm.

John Timm

I think he's talking about bidding out the service.  The winner is the one with the lowest negative bid.  From Amtrak's point of view it would be "How much do I have to pay you to operate sleepers and food service?"

The winner would keep the flat subsidy plus any revenue the service generates.  It would give the operator incentive to maximize revenue AND minimize costs - like a real business.  It would also minimized the subsidy to operate the service.  It's a way of baking in some strong market forces into an operation that only feels them weakly now.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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