TiBike
OBS Chief
The senate commerce, science and transportation committee held a hearing entitled "Amtrak: Next Steps for Passenger Rail" this past Wednesday, 26 June 2019. Amtrak CEO Richard Anderson appeared, as did representatives from the Association of American Railroads, the NTSB and the Front Range Passenger Rail Commission/Colorado rail passenger association. The video and the written submissions are here:
https://www.commerce.senate.gov/public/index.cfm/hearings?ID=9D28DFD1-2E72-4460-B7AD-46DC06C21477
It runs about two hours and is worth watching.
Long distance trains got a fair amount of attention, but virtually all of it concerned the Southwest Chief. Three senators – Jerry Moran (R - KS), Tom Udall (D - NM) and Cory Gardner (R - CO) – pressed Anderson on the Southwest Chief, which was also what James Souby, from the Colorado association spoke mostly about.
The chair, Roger Wicker (R - MS) asked him whether he planned to "shrink any of long distance train routes to state supported".
Anderson's reply was:
The only other pushback on long distance plans came from Jon Tester (D - Montana), who brought up the elimination of ticket agents at two stations in Montana. Wicker did as well, but it was more or less in support of Anderson's position. Anderson said that the number of boardings hasn't changed since ticket sales stopped at those two stations.
To the extent they asked questions about passenger service, other senators were concerned about the NEC and state supported corridors.
Both Anderson and Wicker said that discussions would continue with committee staff about the next reauthorisation and network plans.
I think a deal is shaping up. There's room for a compromise on the SWC, but daily, contiguous service on it (or probably on some or all of the three routes Anderson wants to keep) won't, I think, continue. Anderson clearly doesn't think so. He said "we will reach breakeven on an operating basis in the next 12 months". The only way to do that is to completely restructure long distance service.
https://www.commerce.senate.gov/public/index.cfm/hearings?ID=9D28DFD1-2E72-4460-B7AD-46DC06C21477
It runs about two hours and is worth watching.
Long distance trains got a fair amount of attention, but virtually all of it concerned the Southwest Chief. Three senators – Jerry Moran (R - KS), Tom Udall (D - NM) and Cory Gardner (R - CO) – pressed Anderson on the Southwest Chief, which was also what James Souby, from the Colorado association spoke mostly about.
The chair, Roger Wicker (R - MS) asked him whether he planned to "shrink any of long distance train routes to state supported".
Anderson's reply was:
Anderson did not make any commitments regarding the SWC, or about any long distance routes past September. Wicker seemed happy about plans to reinstate Gulf Coast service, and didn't express any particular concern about long distance trains, including the two – the Crescent and City of New Orleans – that run through his state. Even when Anderson said that the Crescent's on time performance is the worst in the system.On the state supported network, under 209 of PRIIA, that's the strongest part of Amtrak. That piece of Amtrak is really where the future lies for intercity passenger rail – in short haul markets where freeways are jammed and you can't add more capacity. So I'd say under section 209 of PRIIA, our state supported piece, which is really separate from the long distance, is performing very well. And we have great partnerships with over 20 states in the United States. That's half of Amtrak's business and it's growing.
Here's the challenge on the long distance. Trips since FY13 to FY18, our trips for miles over 600 miles, in other words passengers buying tickets to go over 600 miles, is down 30%. The train goes 45 miles an hour and the ticket is more than a low cost, discount airline ticket in the same market. So we are working hard to try to get ridership up, but it's just clear that trips over 600 miles is not where consumers want to use Amtrak.
85% of our trips are short haul trips, where people get on in Chicago and get off in a hundred or two hundred miles. The challenge in long distance is the on time performance is a threat to the viability of that business, and number two, it needs billions of dollars of investment. So what I want to do is have this dialog with you and your professional staff as we go into reauthorisation about how we tackle that challenge.
I do think that there are historically important trains in the long distance network that we should always operate. Like the Builder, like the Zephyr, like the Coast Starlight. But because we spread our resources like peanut butter, we don't have the kind of investment you should have in making those a really special product experience. So, we believe there's always a role for long distance, but on the margin we should be looking at breaking up some of those long distance trains, and figuring out how we serve the American consumer to provide high quality service in short haul markets where they're using that service today.
The only other pushback on long distance plans came from Jon Tester (D - Montana), who brought up the elimination of ticket agents at two stations in Montana. Wicker did as well, but it was more or less in support of Anderson's position. Anderson said that the number of boardings hasn't changed since ticket sales stopped at those two stations.
To the extent they asked questions about passenger service, other senators were concerned about the NEC and state supported corridors.
Both Anderson and Wicker said that discussions would continue with committee staff about the next reauthorisation and network plans.
I think a deal is shaping up. There's room for a compromise on the SWC, but daily, contiguous service on it (or probably on some or all of the three routes Anderson wants to keep) won't, I think, continue. Anderson clearly doesn't think so. He said "we will reach breakeven on an operating basis in the next 12 months". The only way to do that is to completely restructure long distance service.