Should Amtrak be privatized?

[Qapla]

Seems all the news outlets are reporting this


https://www.nbcnews.com/politics/do...us-privatize-postal-service-amtrak-rcna194960

https://www.reuters.com/world/us/elon-musk-says-post-office-amtrak-should-be-privatized-2025-03-05/

https://www.businessinsider.com/elon-musk-doge-post-office-amtrak-privatized-2025-3

 

[Just-Thinking-51]

Yeah I saw that, but it’s Elon, and he is a unelected bureaucrat/billionaire so no power to do anything.

That said, there are multiple problems that would need to be addressed. So it’s unlikely to go anywhere.

The privately own track would be an issues for the LD fleet. The high Capex need for the NEC would be another.

Peter Pan Bus did try to buy the NEC before…

 

[Tlcooper44]

Ok. Let’s privatize the interstates, airports, ports and waterways as well.

 

[Caesar La Rock]

I wish people understood why Amtrak was created in the first place, before throwing the word private around Amtrak's direction. With the way things are going, we have a better chance of having Amtrak run between New Orleans and Florida, before anyone has the chance to privatize Amtrak. Stay tuned for that one lol.

 

[Burns651]

Yeah I saw that, but it’s Elon, and he is a unelected bureaucrat/billionaire so no power to do anything.

That said, there are multiple problems that would need to be addressed. So it’s unlikely to go anywhere.

The privately own track would be an issues for the LD fleet. The high Capex need for the NEC would be another.

Peter Pan Bus did try to buy the NEC before…

Don't underestimate Musk, Trump has given him plenty of power. They're slashing and burning through everything in sight.

 

[Cal]

Well I knew it had to happen eventually...

 

[allanorn]

Don't underestimate Musk, Trump has given him plenty of power. They're slashing and burning through everything in sight.

It pains me to say this, but I booked my next LD trip because of the slash-and-burn.

 

[acelafan]

As my friend who works for them exclaimed, "Amtrak is already private!"

 

[BlackDiamond]

Hmmm. Our train service stinks compared to China. But China is a totally nationalized system run by the government lock stock and barrel. So we should privatize Amtrak. Not sure if I see the logic here.

As the articles say, Congress would have to take this action and I don't think there would be enough support to do this.

Part of the issue here (and especially with the USPS) is if you want to have a service that covers most or all of the country, you are going to lose money unless you stop serving everyone and just cherry pick the more profitable services. For Amtrak that would basically be the NEC and Auto Train.

 

[AmtrakBlue]

Hmmm. Our train service stinks compared to China. But China is a totally nationalized system run by the government lock stock and barrel. So we should privatize Amtrak. Not sure if I see the logic here.

As the articles say, Congress would have to take this action and I don't think there would be enough support to do this.

Part of the issue here (and especially with the USPS) is if you want to have a service that covers most or all of the country, you are going to lose money unless you stop serving everyone and just cherry pick the more profitable services. For Amtrak that would basically be the NEC and Auto Train.

DOGE and logic can never be used in the same sentence.

 

[ScotiaBound]

The degradation of the "Amtrak Experience" began with Anderson and continues under Flynn, a former Delta Air Cargo CEO. That is pertinent because it shows a lack of focus on and vision for a lucrative target market.
Yes, NEC and Auto Train are point A to point B travelers, and like airlines, treated as freight. LD travelers, on the other hand, are largely in it for the experience. The much-maligned Boomer generation now has the time to indulge in such an experience, but given the lack of focus on that aspect are not courted as they should be. It's not only the Boomers, but younger generations as well, as evidenced by all of the YouTubers, that can be reached.
Adopting a cruise ship instead of a freight mentality would be beneficial.
Once upon a time, on Amtrak, the sleeping car attendant would settle you in, ask what time you would like to be awakened, would you prefer tea or coffee and what juice you would care for. They would awaken you in the morning with those and a newspaper from the previous station.
Then there are the operations themselves. I've been tracking the Floridian for the past few weeks preparatory to a trip in late Spring. More times than not it is late departing Chicago due to "late arrival of equipment", "late servicing of equipment". Chicago has sidings full of Amtrak rolling stock.
Amtrak needs a Dagny Taggart type CEO.

 

[Bostontoallpoints]

I believe Amtrak already is a private corporation.

 

[MARC Rider]

Ok. Let’s privatize the interstates, airports, ports and waterways as well.

Yeah, and let's privatize the US Army, Navy, Air Force, and Marine Corps, too. Mercenary soldiers worked so well during the Thirty Years War....

As far as Amtrak, who would want to buy it? It doesn't make any money, and I can't see how it can. The best that could be done is to make it above-the-rails financially sustainable so it doesn't need a direct operating subsidy.

If anything, the private railroads should be partially nationalized, with the infrastructure being owned by the public for the benefit of the public and open access for well-regulated private operators.

I don't know why people thing that private companies can run things better than the government. Look at the Penn Central. Look at Chrysler.

 

[MARC Rider]

Yes, NEC and Auto Train are point A to point B travelers, and like airlines, treated as freight. LD travelers, on the other hand, are largely in it for the experience.

There is really no good argument for the taxpayers to subsidize an "experience." The justification for running long distance trains is to provide needed transportation service to rural areas and for people who can't fly or drive. Those wishing the "experience" can ride some of the many "private varnish" operators, although when you look at their prices, you won't complain anymore about the price of Amtrak sleeping cars.

And as a regular rider of the NEC and a one-time rider of the Auto Train, I wouldn't say the passengers are treated like freight. In fact, the NEC is a major part of the overall transportation mix in the northeast, and the Acela and Northeast Regional are my preferred mode of transport if I'm traveling between Washington and Boston. However, even the NEC isn't "profitable" enough to interest private investors of the sort who would actually invest their own money in the enterprise and expect a decent rate of return.

 

[MARC Rider]

Don't underestimate Musk, Trump has given him plenty of power. They're slashing and burning through everything in sight.

They just got some pushback from the Supreme Court, of all places.

 

[Rasputin]

I think the question is not whether Amtrak can be privatized but rather what they will attempt to do to Amtrak funding once they realize that it cannot be privatized.

 

[Barb Stout]

As my friend who works for them exclaimed, "Amtrak is already private!"

What exactly does s/he mean by that? That it's a corporation? But isn't it a "public" corporation?

 

[allanorn]

What exactly does s/he mean by that? That it's a corporation? But isn't it a "public" corporation?

It is a corporation where 100% of the shares are owned by the government, e.g. Uncle Sam. It's not a true corporation as they are granted special powers and protections by Congress.

USPS and Freddie Mae are set up the same way.

 

[MARC Rider]

I think the question is not whether Amtrak can be privatized but rather what they will attempt to do to Amtrak funding once they realize that it cannot be privatized.

Yeah, I would be concerned about them selling the assets to some crony at a fire-sale price, then allegedly subsiding operations, but having a lot of that subsidy find its way into the personal pockets of the crony, with a result that the service is even worse than it is now.

 

[Bostontoallpoints]

Yeah, and let's privatize the US Army, Navy, Air Force, and Marine Corps, too. Mercenary soldiers worked so well during the Thirty Years War....

As far as Amtrak, who would want to buy it? It doesn't make any money, and I can't see how it can. The best that could be done is to make it above-the-rails financially sustainable so it doesn't need a direct operating subsidy.

If anything, the private railroads should be partially nationalized, with the infrastructure being owned by the public for the benefit of the public and open access for well-regulated private operators.

I don't know why people thing that private companies can run things better than the government. Look at the Penn Central. Look at Chrysler.

The government runs better than private companies?