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Hoosier State reverting to Amtrak operation March 1

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Posted by PJS1 on Tuesday, January 31, 2017 9:32 PM
In FY16 the Hoosier State carried 29,488 riders, who generated ticket revenues of $968,296.  Expenses were approximately $3,700,000, thereby generating a loss on ticket sales of $2,731,704 before depreciation and interest.  The loss on ticket revenues, which averaged $92.64 per passenger, was made up mostly by Indiana, with perhaps some coverage from Amtrak.    The average load factor was 32.5 percent. 

Rio Grande Valley, CFI,CFII

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Posted by schlimm on Tuesday, January 31, 2017 4:57 PM

More info:

http://www.railwaygazette.com/news/passenger/single-view/view/hoosier-state-returns-to-amtrak-fold.html

Iowa Pacific President Ed Ellis admitted that performance and punctuality had been a problem.

Although the agreement was due to run until mid-2017, with an optional four-year extension, Iowa Pacific told INDOT that it was ‘unable to continue providing passenger train equipment and on-board services under the terms of its existing contract’. According to INDOT, the company was looking for a guaranteed monthly payment which was ‘outside the budget we had’. However, the state has reportedly agreed to provide an additional $300 000 to support operations until the end of February.

C&NW, CA&E, MILW, CGW and IC fan

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Posted by JOHN L CLARK on Tuesday, January 31, 2017 4:36 PM

The speed on the line from Indianapolis to Chicago on CSX's part of the route is increasing as the line is undergoing a significant upgrade to host UPS intermobile trains once the track and signaling is upgraded from Louisville to Chicago.  I run on that line and just last Friday, CSX finished a major upgrade in Crawfordsville, IN called "Ames" on the southside of town, where Amtrak had a connection track put in from the Conrail segment to the old Monon route.  It has been 10 mph since that time but Friday with the improvements in place the speed is now 25 mph for passenger and freight.  So in time the speed of that line will gradually increase as line segments are completed.  Amtrak Cardinal and Hoosier State will benefit.

 

Iowa Pacific has had trouble with the equipement and that seems to have gone away, but the locomotives are a different issue, lately they have proved to be unreliable and forced IP to have two engines per train, not good.  CSX does a really good job of dispatching Amtrak from Indy to Chicago, so that is not the issue.

On another note last week while on a Indy to TRRA of St. Louis train going into Madison Yard, I took a cab back to CSX Roselake and on the way passed an equipment yard near USS Steel Granite City, IL.  Lots of heritage equiment that included domes and several ex-Santa Fe high-level cars all in some aspect of storage.

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Posted by CMStPnP on Tuesday, January 31, 2017 2:41 PM

schlimm
I wonder how the passenger numbers compare?  The problem remains the slow time of the service and awkward scheduling.  It is not competitive.  You can use old cars painted for the IC and have nicer food service, but it is still crappy service.  Lipstick on a pig.

Yes, agree you can't change a lot of peoples minds with slightly more amiable accomodations.     One reason why I am so against turning the LD trains into Milk Runs but there seems to be a movement underway to do that.    One or two hours cut off the schedule or added frequencies would have made more of a difference on this route than bringing back old equipment.

He hailed the increased ridership on his train over Amtrak but to tell you the truth the numbers were pretty low to begin with I suspect.    So that a 20-30% increase would not be that many additional people, though I think the increase was probably less in percentage terms.

One cannot help but wonder if the added passenger revenue didn't come close to cancelling out the added expense of running his older equipment.    To hit a home run on that route we would have needed to see at least near a triple digit increase in percentage terms.    I suspect he lost money on the deal.

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Posted by NorthWest on Tuesday, January 31, 2017 2:27 PM

As this is a corridor that is under 750 miles, under PRIIA Indiana has to pick up the cost. They hired IPH to provide the cars and locomotives as they presumably bid lower than Amtrak, who staffs the trains. I think that the financial difficulties are probably elsewhere in the empire since I doubt they would bid on a contract that would lose them money on supplying the equipment, unless these costs were greater than anticipated. Indiana always subsidized the operating costs and covered the train's losses. Operation was simply contracted out.

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Posted by ROBERT WILLISON on Tuesday, January 31, 2017 12:03 PM

I am sure  the service and the equipment was good. Problem is even when the passenger service was operated by private railroad companies, they could not make a profit. Why would any one think Ed Ellis could. Just not going to happen.

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Posted by schlimm on Tuesday, January 31, 2017 10:30 AM

CMStPnP

Well that didn't last long did it?     I suspect that Mr. Ellis subsidized part of the operation this past year and the State of Indiana did not want to pay his price the next year.........that would be my guess on what happened.

 

I wonder how the passenger numbers compare?  The problem remains the slow time of the service and awkward scheduling.  It is not competitive.  You can use old cars painted for the IC and have nicer food service, but it is still crappy service.  Lipstick on a pig.

C&NW, CA&E, MILW, CGW and IC fan

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Posted by PNWRMNM on Tuesday, January 31, 2017 6:53 AM
If you want to make a small fortune in the rail passenger transportation business, it is best to start with a large fortune.
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Posted by CMStPnP on Monday, January 30, 2017 4:56 PM

Well that didn't last long did it?     I suspect that Mr. Ellis subsidized part of the operation this past year and the State of Indiana did not want to pay his price the next year.........that would be my guess on what happened.

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Hoosier State reverting to Amtrak operation March 1
Posted by BaltACD on Monday, January 30, 2017 3:20 PM

Never too old to have a happy childhood!

              

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