Amtrak expected to lose Metrolink operating contract

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Amtrak has operated Metrolink sense the start but with a move from 3 contracts; train operations, equipment maintenance and MOW maintenance to a single combined operations and maintenance contract they are expected to lose it from Alstom. Bombardier now Alstom previously did equipment maintenance. Hertoz who did MOW maintenance for most of Metrolinks existence was also a bidder who lost. Hertzog was rated higher but came at a nearly 20% higher cost.
https://granicus_production_attachm...trolink/3bd2c5cab717feb9609cace72307fac00.pdf
 
Veolia/Connex operated Metrolink from 2005-2010.
my mistake, I should have remember that from Chatsworth

Board meeting happened yesterday. Contract was discussed, the directors were skeptical and concerned with the staff recommendation to give Alstom the contract. They wanted more time to consider the contract, and answer questions . So a final decision was tabled until November Metrolink board meeting.
 
Not surprising. Amtrak mentioned in a recent management discussion that with the growth in companies like Herzog and Keolis it would be difficult for them to be competitive with any new commuter contracts and that retaining their current ones could be difficult. By federal law operating non Amtrak regional services by contract is an "ancillary" activity that has to be revenue positive. Amtrak is not allowed to spend federal subsidies on such activities and thus their pricing has to be on the conservative side to ensure it's revenue positive. They cannot risk bidding too close to cost to get their foot in the door which private operators can and do. An argument could probably be made that there is perhaps no longer a legitimate reason for Amtrak to be involved in such activities if they are competing against private companies that want to do the work.
 
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