Hotline #217 - November 16, 2001

The economic stimulus package (H.R.3090) that was approved by the Senate Finance Committee is being prevented from floor consideration by a partisan stalemate. Nevertheless, Senators -- and House members -- still need to hear support for the passenger rail portions of that package; particularly the three-year, $7-billion version of the High Speed Rail Investment Act. Of that, no more than $2 billion can go to the Northeast Corridor or any single state (including Northeast Corridor states). "Non-corridor" projects and the Alaska Railroad are included. States must contribute 20% (except Alaska) and the Secretary of Transportation must approve projects.  The committee also included $2 billion in tax-credit bonds for a new trans-Hudson rail tunnel. Click here for ways to contact legislators.

The Senate stimulus package now has less than $900 million in direct spending for passenger rail safety and security. The House Appropriations Committee rejected an amendment by David Obey (D.-Wis.) which would have increased the House amount for Amtrak security from zero to $125 million; this may be offered on the floor -- possibly as early as November 19 (as an amendment to the Defense appropriations bill).

The Air Transport Association reports domestic passenger boardings fell 22.3% in October, when Amtrak's overall ridership fell 1%. Sleeping-car demand was strong but potential travelers faced capacity reductions (compared to 2000), including no third sleeper west of Denver on the California Zephyr and many City of New Orleans trips with no dorm (meaning crew occupied some revenue space). Coach travel was flat at Amtrak West, although Pacific Surfliner posted its highest October ridership in eight years. Coach travel was down elsewhere (including Acela Regional).

It appears that October trends continued in the first full week of November for both Amtrak and the airlines, with Acela Express, Metroliner and sleeping cars remaining strong. Airlines face lower load factors (64% that week vs. 69% a year earlier) despite sharp service cutbacks (600 planes -- 10% of the fleet -- have been parked since mid-September). Also, the average airfare dropped 18.7% in September (ATA) and fares "probably have fallen an additional 5% to 15% since then, [pushing up] the average break-even [load factor] to 83%" (Robert J. Samuelson, Washington Post, November 15).

"When the bailout bill was passed two months ago, airline executives and members of Congress portrayed the action as an emergency fix, a one-time solution to a short-term liquidity crisis" (Washington Post, November 14), but the Treasury Department has given big airlines a second extension (to January 1) to pay $1 billion in ticket taxes. Dow Jones on November 13 said airlines hope to defer about $4 billion in taxes until January 15.

Some legislators have noticed the contrast between quick Washington support for airlines and the rhetoric frequently used to justify starving Amtrak for funds. For example, at the November 1 Senate Commerce hearing, Peter Fitzgerald (R.-Ill.) -- who has not been an Amtrak supporter -- said, "I agree we should put a tight rein on Amtrak, but I would point out what we recently gave the airlines."

Due to last week's Amtrak Reform Council vote, Standard & Poor's on November 13 "placed its ratings on Amtrak on CreditWatch with developing implications … If Congress implements legislation that improves and ensures Amtrak's long-term operating and capital funding and eliminates the existing self-sufficiency requirement, then ratings could be raised or affirmed. Ratings could be lowered if the unfolding ARC and legislative processes reduce Amtrak's ability to meet its financial obligations" (S&P release). S&P also said Amtrak's "important public service role" and the changed environment after September 11 (that "probably broadened public and political support for Amtrak") work in Amtrak's favor and "offset a weak financial profile."

On November 14, the ARC placed on its web site a staff-prepared "Evidence" document that was available to Council members before their November 9 vote. This document includes some allegations that appear to veer from the ARC's traditional approach ("structure-is-the-problem, not labor-and-management") to an attack on management, in some cases for the wrong reasons. ARC says "about 25% of total Taxpayer Relief Act (TRA) commitments were used for expenditures that most companies would treat as ordinary operating expenses;" "Amtrak's financial performance is worsening;" "Although Amtrak was given authority to cut unprofitable routes, it has not done so."

ARC acknowledges that Amtrak got only $2.8 billion of the $5.2 billion authorized from 1997 to 2002, but then counts the $2.2 billion in TRA funds and concludes that funding fell only $150 million short of the 1997 authorization. However, TRA money was meant to be in addition to the authorizations; indeed, it was enactment of the authorization was what triggered release of the TRA funds.

The operational self-sufficiency mandate and the ARC with its enforcement role were created in an ideological atmosphere that demanded that the public sector minimize its spending on passenger rail, and that blamed Amtrak for not increasing its market share in the face of ever increasing federal spending on highways and aviation. However, if the ARC's final report is like its last one, it will recommend a number of structural alternatives that ARC agrees would require significant increases in federal capital funding. It is unclear what the ARC's role is after it submits its restructuring recommendations to Congress (90 days after November 9). The law says members' terms run for five years.

Thanksgiving is upon us. Amtrak is adding 75,000 seats across the country, 15% above normal capacity. As we reported earlier, Amtrak will have reserved-only space on the main spine of the Northeast Corridor (Washington-New York-Boston) November 20-26, with no on-board ticket sales. Amtrak is recommending: (1) arrive at the station an hour before train time, (2) bring photo identification if you are picking up tickets at the station or checking baggage, (3) purchase a round-trip ticket (so you don't have to be in a ticket line twice), (4) avoid that Wednesday and Sunday if at all possible, and (5) bring no more than two carry-on bags. Also -- as always -- call Amtrak for a train status report before leaving for the station if you are boarding a long-distance train mid-route.

Amtrak's Sunset Limited is going through three north Florida counties (Leon, Jefferson, Madison) faster this week, as CSX makes some selective increases in speed limits for all trains. The goal is to provide a more constant speed limit through the area in order to save on fuel, by reducing continual acceleration and deceleration. Passenger train speeds will be increased 10-29 mph in several places; freight train speeds by 10 mph. The increases will occur in 5-10 mile increments over three weeks, starting November 14.

The southbound Ann Rutledge (Amtrak train 303) will run 1:25 earlier through December, to accommodate ongoing, state-sponsored track improvements in Illinois. The train will leaves Chicago at 7:05 am (not 8:30) and will sit in St. Louis (if necessary) until its regular departure time at 3:00 pm.

For some time, Amtrak has run the Empire Builder equipment through Chicago to become the City of New Orleans, and vice-versa. However, the two trains' equipment needs were never a good match. Starting November 14, Amtrak has, on a trial basis, broken the equipment link between the two trains, with the Texas Eagle and City of New Orleans sharing equipment instead.  This, however, cuts City of New Orleans sleeper capacity.  NARP has asked Amtrak for its reasoning on that cut.  The City of New Orleans will use somewhat less of the St. Charles Airline (just south of downtown Chicago) than it does now, and will use a small part of the route toward Joliet as it backs in and out of Union Station. This should save about 10 minutes for that train.

The Capitol Corridor will be ten years old in December. To mark that occasion, Amtrak and the corridor's Joint Powers Board will offer a 10% discount on all regular fares throughout that month.

Caltrain, the San Francisco-San Jose-Gilroy commuter rail operator, said November 13 that it plans to shut down on weekends for two years in order to accommodate a large construction project. Caltrain plans to spend $100 million to turn a double-track railroad into one with long stretches of third track that will allow the operation of express trains (comparable to Metra's Chicago-Aurora line). Some weeknight operations also will be disrupted as Caltrain repairs existing track by converting to single-track operation at times. Construction will begin in April 2002 and end in spring or summer 2004. About 17,000 riders use the trains on typical weekend days.

Amtrak is accepting reservations for the new Boston-Portland, Me., service that starts December 15. Amtrak's web site has a complete list of station codes (North Station is BON; Portland is POR).

The Massachusetts Department of Environmental Protection (DEP) ruled November 7 that the Massachusetts Bay Transportation Authority (MBTA) must restore Green Line "E" light rail service from Heath St. to Arborway in Forest Hills, Boston. Service on the segment was "temporarily" suspended in 1985 due to construction elsewhere on the line. The DEP ruled that MBTA's years-long efforts to prove the service restoration "infeasible" had failed, and wants a restoration plan and timetable by December 31.