Amtrak is riding high after reporting the highest revenue of any month for November, with 2006 revenue up 11 percent. The costly, long-distance routes appear to be safe from possible dismantling, according to Amtrak's new president.
"The stars may be aligning" for a renaissance of rail, both passenger and freight, said Alexander K. Kummant, who was named president of Amtrak in September, after the board fired his predecessor, David L. Gunn.
"Mr. Kummant indicated that Amtrak was backing away from some ideas that had upset Amtrak supporters, including putting the Washington-to-Boston corridor under separate ownership. He also said he did not intend to slash the long-distance network because it was a national asset that, once lost, would probably never be recovered."
"The railroad may be poised for a rebound. Congressional Democrats, soon to be in control, are hopeful that they can enact a law setting goals for Amtrak, replacing the one that lapsed in 2002. Those goals include some of what Mr. Kummant listed as his own strategy, like financing rail projects the way that the federal government finances highways - by offering matching money to the states - and helping Amtrak and local rail transit agencies consolidate their purchases of new equipment at reduced cost."
"But Amtrak, which has $3.6 billion in long-term debt, will remain heavily dependent on federal subsidies of about $1 billion a year for the foreseeable future. And it has enduring labor problems; most of its employees have been without a contract for seven years.
Mr. Kummant, a former freight rail executive, said that the rail network nationally was overloaded, but that strong growth in freight traffic, and the interest in rail as a solution to congestion and energy problems, opened the possibility for government investment in private freight railroad lines that Amtrak used. "
FULL STORY: Surprising Forecast for Amtrak: Growth
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