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June 2002 Hotlines |
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June 2002 Hotlines |
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Amtrak could face a shutdown of services in July unless it can get a $200 million loan soon, according to a letter to employees earlier this week from President David Gunn. However, Gunn said he remains optimistic that Amtrak will get the loan. Gunn also has been writing to and meeting with key Administration and Congressional leaders to bring them up to date on Amtrak's financial situation, which he says is much worse than he expected.
Assuming Amtrak gets the loan, and then gets $1.2 billion it has asked for in 2003, about one-sixth of the 2003 funds would immediately go to the financial institutions who made the loan used to survive fiscal 2002. Amtrak has required some short-term lending to finish most of the recent fiscal years.
At the June 6 Amtrak board meeting, Gunn presented a plan for reorganizing the company, effectively undoing many structural changes made during the previous Downs and Warrington managements. The biggest change would be a recentralization of command to the Washington headquarters, with the elimination of the three regional SBU's (strategic business units) -- Northeast Corridor (in Philadelphia), Intercity (Chicago), and West (Oakland). This also involves cutting the number of people with "vice president" in their title from 84 to about 20. The head of the Northeast Corridor SBU, Senior Vice President James Weinstein, has resigned effective June 15, after having come to Amtrak on February 4.
Gunn is also interested in restoring a "traditional railroad structure" to the company, to be in place early in fiscal 2003. "We will have an operating department, a mechanical department, an engineering department, etc.," he wrote in the letter to employees. Gunn ended the letter by saying, "One last thought. Guests may be called passengers." Indeed, examples of the word "passengers" replacing "guests" already were evident on Amtrak's web site by midweek.
In a Washington Post interview, Gunn said that if the loans aren't finalized and Amtrak runs out of operating cash, he would shut down all services nationwide. He has told Congressional leaders that Amtrak's financial situation had been sugar-coated in the past, and that the concept of operational self-sufficiency (as enacted by Congress in 1997) was a bad idea. The response from one of those leaders, Senate Commerce Committee Ranking Republican John McCain (Ariz.) was quoted in today's Post. McCain said that a shutdown of Amtrak would be disruptive in certain parts of the country, while repeating his claim that long-distance trains run only for "political" reasons. McCain wrote that he found Gunn's candor "refreshing" and that he would ask the Commerce Committee to hold a hearing to consider "what must be done to avoid a shutdown of the entire Amtrak system in July."
The Senate approved its version of the emergency supplemental bill (H.R.4775) early this morning, on a 71-22 vote, after rebuffing attempts by John McCain (R.-Ariz.) and Phil Gramm (R.-Tex.) to strip out funding items. McCain had 21 amendments ready, including two relating to Amtrak, but only three were discussed (none of them Amtrak-related), and those were blocked. One McCain amendment would have deleted all of the $55 million for Amtrak ($12 million for security, $23 million for overhauls, $20 million for wreck repairs), the other would have given the Secretary of Transportation (and thus, the White House) the power to determine whether overhauls and wreck repairs qualify as "emergencies." In any event, as the bill moves to a House-Senate conference committee, the Senate version still contains the Amtrak money. The House version has $29 billion; the Senate version has $31 billion.
A letter urging funding for Amtrak in 2003 in the amount of $1.975 billion was signed by 162 Representatives and sent to House appropriations leaders. That amount is the same as in the one-year Amtrak authorization bill, H.R.4545, approved by the Railroads Subcommittee on May 8. The amount includes the $1.2 billion Amtrak said it needs to survive in 2003, plus $400 million for life-safety work in the New York, Baltimore, and Washington tunnels, and $375 million for systemwide security. Click here for a complete list of the 162 names.
A similar letter in the Senate currently has 33 signatures.
The Railroads Subcommittee (chaired by Jack Quinn, R.-N.Y.) of the House Transportation and Infrastructure Committee held a hearing June 6 about recent derailments and safety in the rail industry in general. The lead witnesses were the chairman of the National Transportation Safety Board, Marian Blakey, and Federal Railroad Administrator Allan Rutter. "As judged by most indicators, the long-term safety trends on the nation's railroads are very favorable," Rutter said. He pointed out any train "mishap" resulting in at least $6,700 in damage must be reported as a "train accident," meaning that when the news media report accident totals, many minor "fender benders" or mechanical malfunctions are counted in the same way as the worst derailments.
Rutter said that 95% of all rail-related fatalities are in fact related to grade-crossing accidents and trespassers. Rep. John Mica (R.-Fla.) asked Rutter a series of questions that essentially were about whether Amtrak derailments are caused by poor Amtrak maintenance practices, and whether Amtrak's financial problems are leading to poor maintenance practices. Rutter stated that neither hypothesis is true.
The Phoenix West line may soon become property of the State of Arizona, benefiting from a fiscal 2003 budget signed into law June 4 by Governor Hull. The budget, which is for the year starting July 1, allocates $650,000 for the purchase of 78 miles of Union Pacific rail line from west of Phoenix to Wellton (near Yuma). The money would come from the state highway fund share of vehicle license tax collections. This is the line that was used by Amtrak's Sunset Limited until 1996, when the line was downgraded. The segment is vital to restoring Sunset Limited service to Phoenix, as well as development of an eventual Phoenix-Los Angeles corridor.
A rotating bridge over the Norwalk River was stuck open for four hours on Saturday, June 1, delaying thousands of Amtrak and Metro North passengers. The bridge is in South Norwalk on Metro-North's New York-New Haven line.
All of Amtrak's Michigan trains (Chicago-Detroit-Pontiac) have schedule changes in effect through September 30, as a result of various summer track work projects. Departure times from the originating station are about the same, but arrival at end stations is about 30 minutes later than shown in the April 29 timetable. Consult Amtrak or its web site before traveling on these trains.
The Vermont legislature passed a state budget this week that left out money needed to start a New York-Albany-Schenectady-Manchester service this year. Amtrak had told the state that $1.16 million was needed, based on its own ridership projection, which one local supporter told the Rutland Herald was too low. Also, the budget came below Amtrak's request for the Ethan Allen and Vermonter by $500,000. A contract between Amtrak and the state to run those two trains is still pending. At the state's request, Amtrak recently eliminated the baggage car on the Ethan Allen, which also ended bicycle carriage on that train.
A $223,000 renovation of the station in Slidell, La., has been progressing, and the waiting room and restrooms were completed June 4. The city has contributed $50,000, Amtrak $30,000, and the rest came from state grants. A coffee shop is expected to open in the fall, and the city has plans for community use of the building's second floor. Slidell is a stop for the Crescent.
The release of Census data has led to some anti-transit reporting this week. The Surface Transportation Policy Project said, "Over the last six years, total transit use has shot up 23%, outpacing the growth in driving." But Census data is based on just two snapshots -- the first weeks of April 1990 and 2000. STPP says, "The new Census figures show a smaller portion of commuters used transit to get to work in 2000 [than in 1990], down to 4.7% from 5.3% in 1990, with absolute numbers remaining essentially flat." However, respondents to the Census long form can show only one type of travel, so the data ignores much transit use.
Consider, for example, someone driving to work three days a week and using transit two days, or taking transit daily but reporting auto because of a long drive to the station. Also, STPP notes that Census Journey-to-Work data covers just 20% of all trips, and so ignores growing transit use for other purposes, and the value of that growth given the increasing number of hours when roads are congested. See the STPP web site for more.
Amtrak President David Gunn appeared on PBS television's "Newshour" program on June 13. He discussed Amtrak's current financial problems and how they came to be. He told interviewer Jim Lehrer that the $200 million bank loan (discussed in last week's Hotline) has not yet been obtained. Gunn said Amtrak would have to shut down without such financing. The full transcript of the interview is on the PBS web site.
Once again, Amtrak is making changes to its sleeping-car routes. The Kentucky Cardinal will lose its Viewliner sleeper for the summer, with the last southbound trip leaving Chicago June 15, and the last northbound trip leaving Louisville June 16. The Twilight Shoreliner will regain the Viewliner sleeper it lost May 20. The first southbound trip leaves Boston June 21, and the first northbound trip leaves Newport News June 22. While the sleeping car contributes a big percentage of overall revenues on the Kentucky Cardinal, it also brings Amtrak about $250,000 (a month) less in revenues than it would on the Twilight Shoreliner.
S.1991, the National Defense Rail Act, now has 36 Senate sponsors, with the addition of Miller (D.-Ga.) and Dayton (D.-Minn.). This Hollings reauthorization bill for Amtrak runs for multiple years and does the most to stabilize and expand passenger rail services of all types.
A letter to Senate appropriators urging an Amtrak appropriation of $1.2 billion -- the amount Amtrak says it needs to survive fiscal 2003 -- now has 52 Senate signatures. A similar letter with 162 signatures went to House appropriators last week.
The FBI warned transit systems on June 7 and 8 that there was a chance of a nerve gas attack in a subway around July 4. This follows a more general alert that was issued by the Department of Transportation late in May to all rail systems, though the FBI was not involved at that point. The newer FBI bulletin said that it had information that the terrorist group Al-Qaida was planning such an attack.
On account of track work related to the high-speed rail project, some Amtrak trains between Chicago and St. Louis will have schedule changes from June 17 to August 9. Northbound, train 300 runs 20 minutes earlier, train 304 30 minutes later, and train 22/422 (Texas Eagle) 90 minutes later. Southbound train 303 runs 45 minutes later.
The Oklahoma Department of Transportation and Amtrak announced on June 11 an agreement to operate the Heartland Flyer for another two years. Oklahoma will pay Amtrak $4.6 million to run the Oklahoma City-Fort Worth train from this past June 1 to May 31, 2003, and another $4.8 million to run it beyond that for another year. The rest of the operating funds will come from ticket and concessions revenues that accrue to the state. At the end of this contract period, all the $23 million in federal Taxpayer Relief Act funds that Oklahoma got will be used up.
Celebrations marking the third anniversary of the Heartland Flyer were held this morning at all stations in Oklahoma, plus Gainesville, Tex., mostly timed around the train's southbound schedule. Also, a new station in Pauls Valley, Okla., was dedicated. A new facility with climate-controlled waiting area, restrooms, and parking has been built adjacent to the former Santa Fe station, which has been a city museum for a number of years. On the same route, the station in Ardmore is currently undergoing a renovation.
Streetcars may be coming to Fort Worth, as the city council voted June 11 to endorse a 7.6-mile starter route. The vote was 7-2. Local voters could vote on the proposal in 2004, and service could start in 2008. It would run in streets from the city's Cultural District (west of downtown) to Texas Wesleyan University (southeast of downtown). The city council also endorsed a long-term (30-year) proposal for expanded transit service, including extending commuter-rail from the current terminus at the T&P station to the far west side (using the ex-Santa Fe line, in the direction of Brownwood).
A ceremony planned to announce an agreement between Amtrak and Pennsylvania on Keystone Corridor upgrades was postponed. We had reported on May 10 that the ceremony would be June 11. The postponement was not related to the agreement itself. We will update that as information becomes available.
Construction on the new train station for the Albany, N.Y., area is proceeding, but unlikely to be completed this month. The plan earlier this year was to have it done in June. The station is being built adjacent to the current Amtrak station at Rensselaer, by the Capital Transit District Authority.
The Wisconsin Association of Railroad Passengers will release the results of a statewide survey on transportation alternatives, particularly passenger rail, on June 18. The release will occur at news conferences in Madison and Milwaukee.
A two-year, $21 million double-track project will begin in September on a 15-mile stretch of the Burlington Northern Santa Fe through Hanford, Cal. That is a stop for the San Joaquins, which are expected to have better reliability when the project is done. The money is coming from state gas taxes, by way of the California Department of Transportation.
Two Metra trains collided June 12 outside the station at Aurora, Ill., partly derailing one and injuring 29. The collision occurred at low speed. So far, there is disagreement between investigators and crew members over the color shown by a signal.
"Bring Back the Streetcars! A Conservative Vision of Tomorrow's Urban Transportation" is a new report by Paul M. Weyrich and William S. Lind, of the Free Congress Foundation in Washington. The authors define the unique role that traditional streetcar lines can and do play in reviving urban centers. Projects in Dallas, Memphis, and Portland, Ore., are examined in more detail. The 41-page report can be ordered through the Foundation's web site for $10 each.
Unless it arranges for emergency financing, Amtrak could begin a shutdown process as early as the middle of the coming week, Amtrak President David Gunn told a Senate panel on June 20. His statement -- at a hearing of the Senate Transportation Appropriations Subcommittee, chaired by Patty Murray (D.-Wash.) -- reflects the fact that Congress adjourns at the end of business June 26. It is possible that, before Congress reconvenes July 8, Amtrak's cash could run down to the $50 million level Gunn believes he needs to shut down the system and protect Amtrak's assets.
Gunn said a report on fiscal 2001 by Amtrak's auditor (KPMG) -- due in December, but just completed -- revealed that Amtrak losses for 2001 were $160 million more than previously reported, and that losses for earlier years were $37 million more than previously reported. DOT Inspector General Ken Mead said that amount was very near the $200 million that he told Congress earlier this year would be the amount of cash shortfall Amtrak would face in 2002.
The difference this year, Mead said, is that because Amtrak's auditor missed a December deadline for completing the 2001 audit, Amtrak was in a technical state of default and lost access to its normal line of credit. Amtrak continued to work with the various financial institutions involved in a possible loan, but on June 17 approached the Federal Railroad Administration for a loan guarantee under the Railroad Rehabilitation Improvement Financing Program.
Federal Railroad Administrator Allan Rutter decried the lateness of the loan application, but said FRA might have an answer for Amtrak on June 24. He also expressed the Administration's position that it would oppose short-term help without reforms such as those proposed that very morning (see below), which, given the little time remaining, is quite unrealistic. Indeed, Chairman Murray said there was "no way" the proposals would be included in the pending supplemental appropriation. "The Administration has not submitted any reform legislation," she said. "All they have done is make a speech. The proposals in the speech are very controversial" and need to go to authorizing committees.
Rutter also said that, without such reforms, Amtrak should not get more than the $521 million proposed by the Administration for 2003, even though the Administration previously has testified that level would shut Amtrak down, and even though the reforms are not part of a formal, legislative proposal.
DOT Deputy Secretary Michael Jackson has played a key role in the Administration's dealings with Amtrak, and his absence from the country this past week probably hampered the Administration's response to this situation. His return June 23 may improve things.
If, however, in the end, the FRA/Bush Administration cannot or will not help, if Amtrak cannot complete its own process of obtaining a private-sector loan, and if Congress does not find a solution of its own, an announcement for the "orderly" shutdown of Amtrak by David Gunn will come within days. Gunn said at the hearing that the process would take some days, once begun, and would involve the entire network. About $50 million would have to be set aside to position and protect equipment and other physical assets. Gunn did not say anything about protecting the assets of future customers who have paid for, but not completed, Amtrak trips. NARP continues to believe that a shutdown is unlikely. But if it did happen, the result would be no commuter or intercity trains at such major terminals as Chicago Union Station, New York Penn Station, and Washington Union Station.
The Bush Administration yesterday, after many months of delay, released its proposal for passenger rail. The release occurred as part of a speech by Transportation Secretary Norman Y. Mineta, and does not exist in a formal, legislative-proposal form. The full text of the release is contained in Rutter's Senate testimony. The proposal has five parts:
1) "Create a system driven by sound economics." "Sound economics," to the Bush Administration, means no federal operating grants. Apparently, the Administration has learned nothing from the failed attempt by two Administrations, Congress, and Amtrak, to meet the operational self-sufficiency mandate of 1997. The Administration would push coverage of any operating losses to states. This would happen gradually, but in all likelihood would mean the end of all long-distance and most short-distance trains.
2) "Require that Amtrak transition to a pure operating company." This is already the case for nearly all Amtrak services always from the Northeast Corridor.
3) "Introduce carefully managed competition to provide higher quality rail services at reasonable prices." The Administration makes much of the fact that so little total travel in the U.S. (they say under 1%) occurs on Amtrak, and places the blame squarely on what it calls Amtrak's "higher unit costs" compared to other modes. Whatever the merits of the "higher-unit-cost" argument, it is far more likely "few" people use Amtrak because so little service is offered nationwide -- in other words, people can't use trains that aren't there. "Competition" can mean some contracting out of facets of services, but it also means franchising out entire routes -- something vigorously opposed by powerful freight railroads.
4) "Establish a long-term partnership between states and the federal government to support intercity passenger rail service." There indeed should be such a partnership, though the proposals provide no details. Early media reports said this section opposed any federal capital going to new, high-speed-rail proposals, but that is not the case. NARP, and many states, support an 80-20 federal-state capital partnership for passenger rail, as is common for other modes.
5) "Create an effective public partnership, after a reasonable transition, to manage the capital assets of the Northeast Corridor." NARP supports transferring ownership of Amtrak infrastructure in general, due to huge capital needs especially on the Northeast Corridor. But it should be transferred to the federal government, not to a vaguely defined coalition of states and other users, and NARP favors Amtrak continuing to dispatch trains and control capital investment.
The Administration plan got mixed reviews on Capitol Hill. Those already opposed to Amtrak embraced it; others did not. House Railroads Subcommittee Chairman Jack Quinn (R.-N.Y.) said such proposals should be discussed, but that short-term cash issues were not addressed. "I don't think that privatization of Amtrak is the answer, nor is separating it from federal support the way to proceed," he said. Senate Appropriations Chairman Robert C. Byrd (D.-W.Va.) asked, "What if Virginia decides not to pay for it and West Virginia does? Does the train stop at the border?" Sen. Kay Bailey Hutchison (R.-Tex.) said, "We can't have a patchwork of states [running trains.]"
NARP's release on the Administration plan is at its web site.
After several months of work, NARP's board has produced an Amtrak revitalization plan, called, "Modern Passenger Trains, a National Necessity." It is available at NARP's web site, and is being distributed to legislators and other interested parties.
A letter urging funding for Amtrak in 2003 in the amount of $1.2 billion was signed by 52 Senators and sent to Senate appropriations leaders, June 17. That amount is what Amtrak has said it needs to survive in 2003. Click here for a list of the signatures. A similar letter was signed by 162 Representatives last week.
The Wisconsin Association of Railroad Passengers released the results of a poll at news conferences in Madison and Milwaukee on June 18. The poll indicated that more than three quarters of Wisconsin residents support an expanded, nationwide passenger rail network. As many said that they would use the service improvements that are being proposed as part of the nine-state Midwest Regional Rail Initiative. More than half supported using federal funds towards the improvements. WisARP President John Parkyn said, "The public is saying it wants more trains and faster trains, and is willing to help pay for them." More information is at the WisARP web site.
A low-speed accident at the south throat of Baltimore Penn Station on June 17, during the afternoon rush hour, caused five minor injuries, and long delays for hundreds of passengers all along the Northeast Corridor. Investigators believe that Amtrak's northbound Palmetto stopped 200 feet beyond a stop signal, hitting a southbound MARC commuter train that was changing tracks. That derailed one Amtrak locomotive and two unoccupied MARC coaches. The Amtrak line was blocked until the following morning; the southbound Crescent and Silver Meteor detoured over CSX with much delay. MARC ran service from Washington to West Baltimore, and a bus bridge from BWI to Penn Station.
An empty gravel truck crossing in front of the eastbound California Zephyr June 17 derailed and the lead locomotive caught fire. Nevertheless, injuries to the truck driver, two Amtrak crew members, and one passenger were minor. The accident happened near Gretna, which is between Lincoln and Omaha, Neb.
Brush fires in the west have been causing some disruption for Amtrak. The Coast Starlight was annulled south of Oakland June 16-18 because of a fire along the coast at Vandenberg Air Force base. Another fire zone in the Cajon Pass east of Los Angeles caused at least one Southwest Chief to detour earlier this week from Los Angeles to Palmdale, Mojave, and Barstow.
Fires in Colorado the week before forced the California Zephyr to detour through Wyoming a few days -- one westbound train had made it as far as Glenwood Springs, and had to turn back to Denver.
Just a week ago, Amtrak removed the Chicago-Denver sleeper from the California Zephyr, which usually runs in the summer, because of a general shortage of Superliner sleepers. Now, Amtrak is restoring that sleeper to the train beginning August 1. This is made possible by some gains in car repair.
NARP Executive Director Ross Capon appeared on National Public Radio's "Public Interest" program on June 17. An audio file of the broadcast is on the web site of station WAMU -- if you try that site after this week, click on "2002 Archives."
CBS Television's "Sunday Morning" program plans a segment on Amtrak on June 23.
A bill allowing Ohio to join the Midwest High Speed Rail Compact is on its way to Governor Taft for signature. It passed the Senate unanimously on February 19, and the House on June 19 (85-6).
The Supreme Court ruled on June 17 that police can search passengers on trains and buses without telling them they have the right to refuse to cooperate. While various law enforcement agencies long have searched both intercity trains and buses for drug couriers, they also have stepped up their search for possible terrorists since the attacks of September 11. The case at issue, U.S. v. Drayton, involved Tallahassee police who moved through a Greyhound bus in 1999, asking each passenger questions, then zeroing in on two men wearing heavy clothes on a warm day. The police asked if they could search the men and their luggage; they turned out to have bricks of cocaine strapped to their legs.
The Court ruled 6-3 that the fact that the search was on a bus was no different from being on the street, and that a "reasonable person" would have felt free to refuse to cooperate. However, the minority opinion said the opposite was true, partly because a bus is a more confined space than a street. Those justices also said that bus (and train) travel is not the same as airline travel, where passengers routinely submit to searches without a warrant. "The commonplace precautions of air travel have not, thus far, been justified for ground transportation," they wrote.
Union Pacific will start a big track work project July 1 between Kirkwood and Jefferson City, Mo. During the work, Amtrak's St. Louis-Kansas City trains will face some delays.
A new Amtrak Thruway bus service begins June 25 running south from Wilmington, Del., to Dover, Harrington, and Seaford, east to Rehoboth Beach, south to Bethany Beach, and Ocean City, Md., and west to Salisbury. The bus operator is Greyhound/Carolina Trailways.
New Jersey Transit will open its Newark City Subway extension on June 22, and restore weekend service to the line. An $181 million renovation and expansion plan that started three years ago -- and was to take nine months -- now is complete. Light-rail cars (used on the "subway") now will run to Bloomfield Ave. in Bloomfield.
The president of the United Transportation Union, Byron A. Boyd, was the guest speaker at the regular transportation round-table luncheon at the National Press Club in Washington, on June 14. Boyd said that the UTU would consider supporting a key legislative issue for freight railroads this year if the railroads demonstrate support for an expanded nationwide passenger rail service, and if railroads support a legislative change to policies for calling up railroad operating crews. The key issue being pushed by the railroads is repeal of the 4.3 cent fuel tax, which some have proposed putting into a trust fund for rail infrastructure.
Over the weekend, DOT Secretary Norman Mineta called an Amtrak board meeting for yesterday (Monday, June 24). This meeting took place, but was inconclusive.
Last week, it appeared that a possible impediment to Amtrak's getting a loan guarantee from the DOT involved a legal question -- Does Amtrak's request for a loan guarantee under the Railroad Rehabilitation and Improvement Financing Program qualify under the terms of that program?
However, there is also a political aspect to the DOT granting a loan guarantee. The Administration has been insisting -- at least until yesterday -- that, in return for a loan guarantee to keep Amtrak running, Amtrak agree to reforms that the Administration first articulated on June 20. These reforms were discussed on our most recent Hotline. One in particular would move towards a dismantling of the long-distance train network -- which is consistent with Mineta's previous statements about passenger rail.
Amtrak President David Gunn and the Amtrak board, for their part, appear to want to reserve adoption of any such reforms to the legislative process, and want the loan guarantee (or other funding) to keep trains running while that legislative process moves forward.
Mineta has pledged that Amtrak will not shut down, and Amtrak has welcomed that pledge. But the threat of a shutdown is not eliminated -- a loan guarantee and/or supplemental funding are still needed. In the event an agreement on a loan guarantee cannot be reached, Senate Democrats have been working to put the funding into the pending emergency supplemental appropriations bill (which President Bush has threatened to veto for other reasons).
Keep your messages of support of a nationwide service flowing to the White House, at 202/456-1111, or by e-mail.
[Continues with text from #248 of June 21.]
A tentative agreement reached between Amtrak and the Bush Administration late on June 26 should mean that the immediate crisis -- the start of a shutdown of all Amtrak and many commuter services a week from now -- is averted. However, the tentative agreement has not been finalized, and negotiations are continuing on two sticking points. Amtrak President David Gunn, at a June 27 news conference, said the unspecified sticking points were things the Administration was demanding, but that Amtrak could not accept. He said agreement was "close" and that he was "reasonably hopeful." Amtrak and the Administration have been briefing Congressional leaders on the agreement, even as negotiations continue.
The Washington Post reported today that the two sticking points involved setting a target for cost savings in 2003 and keeping Amtrak from entering into labor agreements that would prevent contracting out work now done by union employees.
Amtrak has been seeking $200 million to resolve a cash crisis, allowing it to run its system through the rest of the fiscal year -- July, August, September. The money could have come either from a loan guarantee from the DOT, or as an appropriation from Congress.
The Bush Administration announced a set of long-term policy proposals for Amtrak on June 20 -- the same day as a Senate hearing in which Amtrak made clear the immediate, short-term cash threat. The DOT then insisted, in return for a loan guarantee, Amtrak agree to those long-term reforms. But some are controversial, and one in particular would make it unlikely Amtrak could operate nationwide service. The DOT began to tone down its calls to link short-term relief with immediate long-term reform on June 25, which mad the June 26 agreement possible.
The June 26 agreement would provide Amtrak with a loan guarantee for $100 million, enough perhaps to operate into mid-August. A joint Amtrak/DOT statement said that, in return, Amtrak would:
At the same time, it is important that fiscal 2003 appropriations (bills for which have not yet been introduced) provide Amtrak with its full request of $1.2 billion. The Administration's proposal remains at $521 million and would, if enacted, lead to even more fiscal crises in the coming year.
Before and after the agreement was announced, sentiment in Congress to appropriate the money, and thereby spare Amtrak the increased debt burden, was growing. Fifty Senators signed a letter June 25 urging President Bush to cooperate with their effort to add $205 million to the emergency supplemental appropriations bill (H.R.4775), to prevent an Amtrak shutdown. Click here to see if your Senator was one of them. A similar letter went the same day from almost 100 Representatives.
House-Senate conferees working on the emergency supplemental appropriations bill, H.R.4775, now have a tentative agreement on an overall funding total, $30.4 billion (but still more than President Bush has said he wants). There also seems to be agreement on including $205 million for Amtrak. The Senate, when it approved its version of this bill on June 7, included $55 million for Amtrak for security needs and car repair. It's not clear if that $55 million is still in the bill. Final negotiations on the bill will wait until after the Independence Day recess.
Appearing at a hearing on a different topic yesterday, Transportation Secretary Norman Mineta was sharply criticized by Senators who resent the Administration's insistence on last-minute, long-term reform demands as a condition for helping Amtrak through its immediate cash crisis. Use of a loan guarantee was criticized, for adding to Amtrak's debt load. Patty Murray (D.-Wash.), chair of the Senate Transportation Appropriations Subcommittee, said, "I object to putting Amtrak into any more debt to solve this crisis." Commerce Chairman Ernest Hollings (D.-S.C.) said to Mineta, "We've been trying to give you the money, if you would only accept it ... We've had no leadership whatsoever from your department on Amtrak."
Commerce Ranking Republican John McCain (Ariz.), for his part, said that the effort to prevent an Amtrak shutdown was just another "bailout," and that reform had to come, even if it means route cuts.
Rep. James Oberstar (Minn.), ranking Democrat on the House Transportation and Infrastructure Committee, along with 21 other Representatives, on June 26 introduced H.R.5024, a bill that directs the Department of Transportation to make $270 million in loan guarantees available to Amtrak.
S.1991, the National Defense Rail Act, now has 38 Senate sponsors, with the addition of Bahy (D.-Ind.) and Wellstone (D.-Minn.). This Hollings reauthorization bill for Amtrak runs for multiple years and does the most to stabilize and expand passenger rail services of all types.
H.R.2329, the Houghton-Oberstar High Speed Rail Investment Act, now has 192 sponsors, with the addition of Maloney (D.-Conn.) and Dingell (D.-Mich.).
Speaker of the House Dennis Hastert (R.-Ill.), going against the grain of most Congressional opinion, advocated cutting the size of the Amtrak network on the June 23 broadcast of NBC's "Meet the Press." "Well, I think that there are some places that they could shut down," he said. "That's all a part of reform." He also said you could fly people from New Orleans to Los Angeles for "$350" (a reference to the supposed loss-per-passenger on the Sunset Limited), but, since he admitted to not being "an expert on railroads," that remark assumes everyone on the train is going just between those two places. Of course, they are not, and it's highly doubtful you could fly from Pascagoula, Miss., to Alpine, Tex., for that (or possibly any) amount.
Amtrak announced a policy to limit on-board baggage carriage on June 26. The new policy formalizes a set of recommendations that Amtrak has promoted for a few years now. Passengers are limited to two carry-on bags per person. Exceptions are made for personal items like purses, laptop carriers, briefcases, and infant accessories. Checked baggage is an alternative for some people, provided they are using stations that have that service (the number of which is reduced since Amtrak's station staffing cuts this spring). Amtrak has said the policy is meant to enhance passenger safety. The size limit of a carry-on bag is that of a "medium-sized Pullman suitcase" (i.e., 14 by 22 by 28 inches).
Additionally, passengers are required to put identification tags on all carry-on bags (except for the exceptions listed above). In any event, identification of such bags is common sense.
The Amtrak station at Raton, N.Mex., regained checked baggage service (and daily hours) effective June 19. It is served by the Southwest Chief and bus from Denver.
Amtrak's Boston-Portland Downeaster service gains another station July 1. Trains will begin serving the Anderson/Woburn (Mass.) station, which opened for service on the MBTA Lowell Line earlier this year. The new station is convenient to I-95/Rte. 128, and features shuttle buses to Logan Airport.
The Chicago-Detroit route is being affected by track work projects, as reported here June 7. Additionally, one pair of trains -- 350 and 353 -- will not run during the week (Monday through Thursday) through September 30, to accommodate the work. Trains 350 and 353 will run Friday through Sunday. Train 355, which normally originates in Detroit, will instead originate in Pontiac, Monday through Thursday, during that period.
Cascade Corridor trains 760 and 763 will not operate north of Bellingham, Wash., July 1 only, due to track work. There will be a replacement bus.
Another track work project will result in a bus substitution for the Adirondack between Albany and Montreal, July 9-10.
Additionally track work will result in a bus substitution between Boston and Albany for the Lake Shore Limited. This affects passengers passing through there July 21-24, and August 4-7.
Two Long Island Rail Road commuter trains collided June 22 at Jamaica Station in Queens. There were 770 people on board, with 67 minor injuries. Both trains were headed for Penn Station.
Dallas Area Rapid Transit opens its next light-rail extension July 1. The Red Line will be extended 12.5 miles from Park Lane in Dallas, north to Galatyn Park in Richardson.
Railtrack, Britain's privatized rail infrastructure company, has been removed from the rail business. A sale of its rail assets (for $762 million) was concluded this week, and control of Britain's rail infrastructure is now in the hands of Network Rail, a new, public-sector firm. The government is providing another $6.1 billion in the form of a contingency fund for Network Rail. Where the private-sector Railtrack distributed profits to shareholders, profits on Network Rail, if any, will go back into the infrastructure. The Network Rail company will be controlled by train operators, rail unions, and passenger groups. Management goals will be tied to performance targets (like safety and delay avoidance), rather than profits. The government has offered Railtrack shareholders $3.73-3.88 a share (where shares closed at $3.41 on June 27); the deal has to be approved by shareholders at a meeting in July.
Amtrak and the Bush Administration finalized their tentative agreement to keep trains running, in the evening on Friday, June 28. A tentative agreement (discussed in material posted here June 28) had been reached June 26.
A statement from Transportation Secretary Norman Mineta listed the following terms to the agreement:
The $100 million Amtrak will get in loan guarantees from the DOT must be repaid by November 22, using Amtrak's 2003 appropriation. If the Administration sticks to its position of an appropriation of only $521 million, there won't be much left over.
Another condition, not on the list above, is that Amtrak not spend any of its own money planning or operating new services, through fiscal 2003. This has implications for the several states that are exploring high-speed services, as well as states interested in expanding conventional services, like California, Florida, Maine, and Vermont. The clear intent of the Administration is to stabilize Amtrak before letting it expand, but banning planning activities pushes start-up dates ever farther into the future.
The reaching of an agreement is very good news, in terms of fending off an immediate shutdown crisis for Amtrak and a good share of commuter operations. However, several challenges remain -- getting Congressional funding or loan guarantees to operate all the way to September 30, getting an adequate appropriation for 2003 (opposed by the Administration without further "reforms," quite possibly including a demand to cut routes), and setting up a sustainable policy and funding framework for long-term survival and growth.
As regards Congress' short-term role, the June 29 Washington Post quotes Senate Transportation Appropriations Chairman Patty Murray (D.-Wash.): "When Congress returns next Monday [July 8], I intend to press for a direct appropriation for Amtrak's urgent needs so that Amtrak does not find itself even deeper in debt in October" [the start of fiscal 2003].
[Continues with text from #249 of June 28.]