Should The Senate Bail-Out Amtrak?

Posted by: Nate Berg

16 September 2006 - 9:00am

This editorial from The New York Sun argues that a $1.6 billion bail out from the U.S. Senate is not the right way to fix the nation's perpetually struggling passenger rail system. International examples of success should be considered.

This editorial argues that Amtrak has long been a waste of taxpayer money, and will continue to be unless legislation allows its operation to be more like that of train systems in Europe and South America. A bill currently in the Senate proposes a substantial subsidy to the increasingly unsuccessful Amtrak, but does not consider eliminating the rail line's monopoly over passenger rail in the country.

"One problem is that the bill prohibits competition against Amtrak's monopoly by private contractors who have taken over and improved trains in Europe, Australia and South America and won contests against Amtrak to run commuter trains in Boston, Los Angeles and San Diego. The bill allows domestic freight railroads to bid on any one Amtrak route in 2008, but freight lines like Union Pacific and CSX have made it clear they have no interest in doing so."

"Today, 105 communities that used to have Amtrak trains are without them and taxpayers are better off for it. Many members of Congress haven't mustered the votes to preserve their hometown train, but not once in Amtrak's 35-year history has a community ousted one of them in the election cycle after the end of train service."

"In short, Amtrak is a ballot-box irrelevancy. Maybe upon recognizing that fact, senators will drop their push to increase Amtrak funding by an outrageous $11.4 billion over the next six years."

Full Story: Realign Amtrak

Source: The New York Sun, September 15, 2006

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Amtrak Funding Double Standard

Submitted by railman on Sat, 09/16/2006 - 19:37.

European nations and other countries where passenger rail thrives spend billions each year on infrastructure from track to stations to security. We dump most transportation dollars into highways and airport infrastucture in this country, the rest goes into maritime. Very little of our transportation dollars go to Amtrak. Amtrak must on a lame budget account for infrasture in the Northeast Corridor, stations, terminals and yard infrasture and it's own security. Yet the meager cost for Amtrak are termed "losses'.

Amtrak is a public transportation service, nothing less. The Rail Passenger Service Act should be thrown out since it calls Amtrak "a for profit" corporation, eventhough its 26 predicesser railroads in 1970 lost almost a half a billion in providing what should have been a public service responsability.

The answer, a new statute which by law requires a dedicated funding sourece, just like all other forms of transportation service get A 2 cent gas tax in the states where Amtrak operates would end the funding debate (religate that tax to counties where there is boarder line service between 2 states, ie Chicago to New Orleans thru western Tennesee). Within a few years, every major transportation market would be served with double daily (at least) long haul market trains, and high speed corridors in many 300 mile or less markets. The states also should be allowed to use their flexability spending (TEA21)to augment the gas tax.

Lets see how long your (profitable) airlines would stay in business if they had to assume their own infrastructur cost like Amtrak. Dredging of river rights-of-way for the barge companies are the best example of transparent subsidies for private operators.

It's way past time to fund Amtrak the way other counties invest in their passenger rail systems. No private entity will step up to this responsiblity since passenger rail is not a profit type business. The Federal and State governments must.

End the double standard.