Letter To Senate Commerce Chairman Hollings

To Senate Commerce Chairman Hollings

Letter from NARP to Senate Commerce Chairman Ernest F. Hollings
October 31, 2001

Dear Mr. Chairman:

Our Association greatly appreciates your recognition of the increased demands being placed on Amtrak in the wake of the September 11 tragedy, and particularly your initiative in introducing RAIL-21. Clearly, over-reliance on aviation and underdevelopment of intercity passenger rail has left the nation’s transportation system and its entire economy far more vulnerable than necessary. We think the closer any enacted legislation comes to RAIL-21, the better public policy it will be.

We have the following comments about specific items:

(1) The $998 million for tunnel fire and life safety work primarily in New York but also in Baltimore and Washington means that important work previously set for completion in 2014 could be completed by 2006. It should be recognized that, if allocated on a per-passenger basis, approximately 90% of the $898 million allocated to New York would be attributable to Long Island Rail Road and New Jersey Transit commuter train passengers. We need to remember this the next time someone attacks Amtrak for consuming “x” billion dollars. We also need to get the job done sooner than 2014, so this is a reasonable solution.

(2) The $515 million will help Amtrak better secure its infrastructure and trains. Unlike airlines, the primary threat to railroads is to tracks, bridges and tunnels. Improvements to the security provided to this infrastructure will not be readily apparent to passengers, but nonetheless is of critical importance. Amtrak owns infrastructure not just in the Northeast Corridor but also about one-third of the Chicago-Detroit line and terminal trackage in several big cities. Amtrak’s nationally accredited police force is part of Amtrak’s corporate budget.

(3) We strongly believe that any package should include capacity enhancements nationwide. Northeast Corridor capacity will continue to increase as more Acela Express trainsets are received, but the needs for more capacity are nationwide. The California corridors and the Pacific Northwest were running near capacity before September 11, so have little room for growth. Amtrak indicates that in early October, sleeping-car
ridership is running 10 to 15% above year-earlier levels even though nationwide travel is down generally. With adequate funds, Amtrak rapidly could return to service some of its modern cars that need repairs and, preferably, also purchase new equipment (for example, $140 million long-distance and $400 million “non-NEC” corridor per Amtrak’s revised $3.2 billion safety/security/capacity package).

(4) The High Speed Rail Investment Act has been kicking around for over two years, and was the subject of a Senate floor colloquy at the end of last year’s session, on December 15, when both Senators Lott and Daschle promised action this year. There is no federal program for states that seek an investment partner for intercity passenger rail. This policy looked strange before September 11 and looks bizarre now. Air travel is down yet states that want to make aviation investments can get generous federal matches; rail travel is up, and no federal partnership is available for rail. Nonetheless, some states have projects ready to go, so HSRIA would be a legitimate element for inclusion in a stimulus spending package.

(5) We thank you for the fact that RAIL-21 eliminates the operational self-sufficiency requirement, which originated as a compromise between legislators who wanted Amtrak “dead yesterday” and those who believe in passenger rail. I understand the government’s right to assurance that funds spent on Amtrak give “good value for money,” as the British say, but I agree with you that there is no value in saddling Amtrak with a mandate that causes the DOT Inspector General to testify as follows:  “We have no doubt that Amtrak could make the kinds of draconian cuts necessary to meet its self-sufficiency mandate on time, but it should not do so at the cost of the assets and human resources necessary to maintain a healthy railroad beyond 2003. Such a victory would be hollow and have serious repercussions for the future of intercity passenger rail.”

The most dangerous part of the current law is the ‘trigger’ mechanism which requires Amtrak under certain circumstances to draft a “liquidation plan” for Congress to consider. The mere creation of such a plan could frighten the holders of Amtrak’s debt and create a crisis that jeopardizes continuance of the service. In this context, it is of great concern that the Amtrak Reform Council has announced that its November 9 meeting will include discussion of members’ “views on whether Amtrak is likely to meet the statutory self-sufficiency requirement set forth in section 204 of the Amtrak Reform and Accountability Act of 1997 (Reform Act).”

(6) We support Senator McCain’s amendment applying longstanding penalties for aviation terrorism to those who perpetrate or attempt to perpetrate terrorism against railroads, freight or passenger.

We thank you again for your efforts in these matters and stand ready to help the Committee and the Congress be responsive to the needs of the traveling public. We would appreciate it if the record of tomorrow’s hearing could include this letter.

Sincerely,

Ross B. Capon, Executive Director