FRA Wants to Split Amtrak in 3, Sparking Privatization Fears

The Federal Railroad Administration (FRA) is proposing to restructure Amtrak by splitting the agency into three operational entities under an umbrella holding company, a move that could dramatically reshape passenger rail in the United States.

According to an article in The Travel by Coco Dollanganger, one arm of the new organization would over see infrastructure and construction, another would manage and lease rolling stock, and the third would run train operations. 

On Reddit, one Amtrak enthusiast speculated that “this would be the "first stage of privatization," and that the “mechanical and engineering divisions will be forced to bid competitively with private companies for work.” A Bloomberg report cites rail union officials’ concern over the proposal. Others say the model mirrors some of Europe’s rail agencies and could streamline accountability.

Jim Mathews, President & CEO of the Rail Passengers Association, says there are potential benefits to the restructuring, but “it can lead to service reductions, elimination of routes, increased fares for passengers, and even degradations in infrastructure and safety.”