By Ron Thaniel
May 12, 2003

Amtrak President and CEO David L. Gunn appeared before the Senate Commerce, Science and Transportation Committee and the House Railroad Subcommittee, respectively, April 29 and 30, in support of Amtrak's 5-year plan to bring the railroad to a state-of-good repair.

The plan is an $8 billion, five-year passenger train recovery plan designed to halt deterioration and to repair locomotives and cars.

According to Amtrak, the plan is a realistic assessment of Amtrak's financial needs and a common sense approach to restoring service reliability and prudent fiscal management.

The Amtrak proposal is several thousand pages long. It is by far the most detailed capital plan ever produced by Amtrak, providing exact budgets and schedules for thousands of projects.

It details exactly what Amtrak proposes to do with equipment, track, signals, interlockings, bridges, maintenance facilities and other assets and how it will improve operational reliability throughout its national system.

Infrastructure improvements under the plan include the installation of 428,000 concrete ties, replacement of 270 miles of rail and refurbishment of 200 miles of catenary (including the replacement of some catenary poles over 90 years old), replacement of 225 miles of ballast supporting ties and rails, and replacement of 40,000 switch ties and 26 interlockings.

Amtrak has a four-part fleet rehabilitation program. It emphasizes the retirement of very old cars, the repair of wreck-damaged cars, overhauls to achieve intended asset lifespan and remanufacturing to extend lifespan beyond original design. Under this plan, Amtrak intends to substantially increase the reliability and availability of passenger cars and locomotives.

This strategic plan focuses on running a fiscally tight business and bringing the railroad to a state of good repair so that it costs less to operate and costs less for the taxpayer to support it.

It envisions a federal subsidy of $1.8 billion in fiscal 2004, gradually declining to $1.5 billion in fiscal 2008 as capital projects come on line and Amtrak is able to operate more efficiently. The total federal subsidy would be $4.5 billion in capital funding and $3.5 billion in operating subsidies.

The plan is based on prudent investments in existing infrastructure and equipment, and proposes no new significant passenger services unless states pay all costs. Instead, focusing on improving the reliability and cost-efficiency of the passenger railroad's existing services.

Administration's Amtrak Reauthorization Faces Uphill Battle In Congress

On April 29, the Bush administration also unveiled a six-year plan for national passenger rail service in which the federal government would pay about half the capital costs for passenger routes, mainly new short-distance corridors between urban areas, and states would assume liability for operating costs nationwide.

The Administration envisions a Federal role similar to its current role in mass transit. DOT would provide capital grants directly to states operating passenger rail service. In turn, states would be responsible for determining the specifics of their respective rail operations.

While the Federal government would continue to fund certain rail-related capital projects for a short period of time, the Administration fully expects that by the end of the authorization cycle, state governments would provide at least 50 percent of the needed capital investment for intercity passenger rail service.

Since the federal government owns most of the Northeast Corridor, it would be treated differently from the national system, with a new federal'state organization handling financing and applying to the federal government for grants.

Initially, Amtrak would be broken into two companies — one handling operations and the other doing maintenance. But the compact would eventually be required to put out operating and maintenance rights to competitive bidding to other entities, in addition to Amtrak.

In areas where Amtrak trains now run on freight railroads, the Federal Railroad Administration would accept competitive bids from operating companies, including Amtrak, and award operating rights. Amtrak's current "preemption" rights to run on freight railroads would be transferred on a route-by-route basis to any new operator.

The plan is not in final legislative form, and several key questions remain unanswered, including how much money the administration would be willing to commit.

The plan faces an uphill battle in Congress, which has repeatedly voted to keep Amtrak running in its present form but has provided insufficient money to keep the system in good repair.

The administration has budgeted Amtrak $900 million for the fiscal year beginning Oct. 1, about half the amount in Amtrak's five-year plan.

Amtrak serves more than 500 communities in 46 states across a 22,000-mile route system.