Hotline #1 - September 26, 1997

The Presidential Emergency Board appointed last month by President Clinton issued its recommendations on September 22 for a labor settlement to resolve the dispute between Amtrak and the Brotherhood of Maintenance of Way Employes. The panel recommended a 3.5% annual wage increase for five years, similar to what freight railroads got in 1996.

An Amtrak spokesman said, "Amtrak is not in a position to offer the so-called freight deal without jeopardizing the survival of the company. The recommended wages, if extended to all [Amtrak union] employees, would cost Amtrak an extra $250 million over the next three years." Indeed, Amtrak has to borrow to meet payroll now, while the freight railroads whose contract the Presidential Emergency Board emulated had $4 billion in net profits last year. The recommendation is not the last word in the matter -- both Amtrak and the unions are free to resort to "self help" on October 22, and Congress is likely to step in if there is the threat of an Amtrak shutdown.

The House Transportation and Infrastructure Committee approved two ISTEA-related bills on September 24. One, H.R.2516, is a six-month extension of current ISTEA. The other, H.R.2400, is Chairman Shuster's controversial, multi-year bill that would violate the budget agreement. Shuster will not send H.R.2400 to the floor for now, however, but rather is playing for time in an effort to win more support for increasing highway spending. In the meantime, the Senate seems to be going forward with its multi-year bill, S.1173, which has the flexibility language beneficial to passenger trains. How the House and Senate bills can ever be reconciled is unclear.

Appropriators did not meet this week on H.R.2169, the 1998 transportation funding bill, so there may have to be a continuing resolution next week to carry programs into the new fiscal year -- which starts October 1.

As terrible congestion conditions continue on Union Pacific lines in south Texas, the problem seems to be spreading east into Louisiana, and north to Dallas and into Arkansas. Timekeeping for Amtrak trains in the region has gotten horrendous, with one recent Texas Eagle 11:30 hours late into Little Rock. Now Burlington Northern Santa Fe is looking for public support to take over certain UP operations temporarily in the Houston area, as well as north to Memphis and east to New Orleans. Kansas City Southern has made a similar offer.

Amtrak and VIA Rail Canada last week announced a new North America Rail Pass good on both systems, effective January.

The IC-3 Flexliner has returned to the Hiawatha route, and is running in revenue service through October 5 between Milwaukee and Chicago.

Service begins September 29 on two of Boston's Old Colony commuter lines, which were closed by the New Haven Railroad in 1959. The lines run from South Station down to Kingston (near Plymouth) and Middleboro. Trackwork on the two branches was done a year ago, but the opening was delayed so a modern cab signal system could be installed. Until November, service will be weekday rush-hour only. A short segment into Plymouth will open in November. A third branch to Greenbush is planned.

The National Transportation Safety Board released a negative safety report on September 16 on the San Francisco Municipal Railway, which has had ten accidents in the last eight months. The NTSB said the accidents showed a "broad range of unsafe practices and operational deficiencies," and indicated that "a systemic safety problem may exist at Muni."

The Maryland Board of Public Works has approved a new operating agreement with CSX that would allow train service to Frederick to start in 2000, but would reduce service slightly in the near-term on the Brunswick and Camden lines.