Hotline #201 - July 27, 2001

The Railroads Subcommittee of the House Transportation and Infrastructure Committee held a hearing July 25 on Amtrak's financial situation and the High Speed Rail Investment Act (HSRIA), which now has 163 House sponsors (17 more than reported here a week ago; click here for the full list).

Most subcommittee members expressed support for Amtrak and rail. Chairman Jack Quinn (R.-N.Y.) said, "I'm an unabashed supporter of Amtrak. In Congress, we have the responsibility to more completely define the role of rail. It doesn't take a rocket scientist to figure out that you get what you pay for." There was some opposition -- John Mica (R.-Fla.) said, "It's time to sober up and look at options to dismantle Amtrak." He said that "the private sector can build high-speed rail" -- even though such efforts (including in his home state) have failed -- yet later he said that if high-speed rail "needs $100 billion, then let's stand behind that in Congress."

DOT Inspector General Ken Mead and JayEtta Hecker of the General Accounting Office both agreed that Amtrak is underfunded, and had concerns about its ability to meet the operational self-sufficiency mandate. Mead said, "The Committee should focus not just on the mandate but also on how to fund capital." Hecker claimed that the benefits of rail projects have been overestimated "all too often."  She said high-speed rail would "cost a lot" -- also true for other modes -- but assumed that all proposed corridors would be built within a set period of time. David King of the North Carolina DOT later countered that if the interstate highways were built incrementally over time, so can high-speed rail. King also said many changes could be made to HSRIA, but it was most important to get moving on it, no matter what happens to Amtrak. Gil Carmichael of the Amtrak Reform Council spoke of a rail bond scenario very different from the one in HSRIA, but his written statement acknowledged it would have limited appeal to states.

Amtrak President George Warrington spoke of the conflicted mission of Amtrak -- to act as a commercial enterprise (meeting the operational self-sufficiency mandate), but also as a national, public service (without adequate funding to accomplish that). He said Amtrak does its best under that set-up and is making progress toward meeting the mandate, but that the set-up "will always cause problems. It means internal cross-subsidies and unmet depreciation. We cannot make a profit in the classic sense [under this set-up]." He asked Congress to decide what Amtrak should be and then fund it accordingly, noting his personal opinion that it is important to have a national network.

Among the remaining witnesses was NARP Executive Director Ross Capon, who expressed support for early action on HSRIA, and talked about the importance of all parts of the Amtrak system, including long-distance trains. Click here to see his complete testimony, which noted substantial ridership growth in California, New York, North Carolina and the Pacific Northwest. Statements of other witnesses are on the committee web site.

The Senate debated the fiscal 2002 transportation appropriations bill (S.1178/H.R.2299) all through the week, and might not finish until July 30.

Amtrak announced today some details about efficiency measures it plans to implement October 1. This includes consolidation of management of the business units under a new Executive Vice President of Operations, who will be Stan Bagley, now Northeast Corridor President. Also, all 2,900 management employees will be offered voluntary separation and early retirement packages, which will reduce management ranks by an undetermined number.

A rough coupling of an express car on July 22 sent 17 people on Amtrak's Lake Shore Limited to the hospital. The outbound train was stopped in the yards south of Chicago Union Station at the time, and was delayed three hours.

The Texas Eagle has been delayed from two-to-four hours by about 22 miles of slow orders (some for 10 mph) suddenly imposed on Union Pacific track between St. Louis and Poplar Bluff, Mo., July 13. UP deployed a track gang on July 23 in an effort to get the Eagle back to normal.

Similarly, slow orders -- again, some as low as 10 mph -- were imposed suddenly on UP track, mostly between Sacramento and Martinez, Calif., on July 16, wreaking havoc on the Capitol Corridor. UP quickly dispatched track gangs and the line was back to normal by July 23. Capitol Corridor management will ask the Federal Railroad Administration and the California Public Utilities Commission -- the agencies that imposed the slow orders -- to inspect the line more often so a smaller number of less severe problems can be identified and addressed, avoiding major disruptions like last week's.

The New York-Montreal Adirondack was similarly annulled briefly midweek due to slow orders on Canadian Pacific north of Albany.

The City of New Orleans was detoured from Jackson to Hattiesburg and New Orleans most of the week due to a freight derailment beside Lake Pontchartrain in Louisiana.

Amtrak's "30th Anniversary" 30% discount has been extended for sale through September 23 and travel through September 30 (but not Labor Day weekend). Some restrictions apply; ask an Amtrak agent for details.

In preparation for the extension of the Kentucky Cardinal into Louisville this fall, there will be a groundbreaking ceremony August 2, 10:30 am, at Union Station. Speakers include Amtrak Intercity President Ed Walker and Louisville Mayor David L. Armstrong.

Amtrak will tighten some reservations "hold limits," effective July 31. Passengers booking one day before departure must now pay for the ticket (whether by providing a credit card number in advance, or in person at a station) by midnight the day of the booking. That means waiting until arrival at the station the day of departure, is no longer an option. The more liberal, current policy still applies to Metroliner and Acela Express.