This Week at Amtrak; January 5, 2008
A weekly digest of events, opinions, and forecasts from
United Rail Passenger Alliance, Inc.
1526 University Boulevard, West, PMB 203
Jacksonville, Florida 32217-2006 USA
Telephone 904-636-7739, Electronic Mail
[email protected]
http://www.unitedrail.org
Volume 5, Number 1
Founded over three decades ago in 1976, URPA is a nationally known policy
institute that focuses on solutions and plans for passenger rail systems
in North America. Headquartered in Jacksonville, Florida, URPA has
professional associates in Minnesota, California, Arizona, New Mexico,
the District of Columbia, Texas, and New York. For more detailed
information, along with a variety of position papers and other documents,
visit the URPA web site at
http://www.unitedrail.org.
URPA is not a membership organization, and does not accept funding from
any outside sources.
1) Great, wonderful, progress! Amtrak has figured out the high value of
its timetables in the world of marketing, and has started soliciting paid
outside ads. The ads now appear in the Fall and Winter 2007-08 national
timetables. Overall, Amtrak prints something close to a million
timetables a year (including all of the individual route timetables and
wallet corridor timetables), and has been doing so almost solely at its
own expense for years.
One bright spot over the last decade has been the constant upgrading of
the timetables, with each new one bringing a fresher look than the one
before. Now, with both the national timetable upgraded (lots more color
and an impressive presentation) and the route timetables pleasantly
redesigned, Amtrak seems to be taking the relatively inexpensive
initiative to sell advertising space in these timetables and let someone
else pay for part of the printing and distribution cost.
Capitalism is abounding, and is wonderful. For every dollar Amtrak earns
in timetable or other collateral material advertising revenue, it is one
dollar less it needs in free federal money. What a concept.
2) Revisit some real, factual history and look at why Amtrak was founded
at the end of the 1960s.
One of the primary reasons Amtrak was created was to clean up the mess
created by the PennCentral merger and bankruptcy earlier in the 1960s,
and the resulting bankruptcies of most of the other railroads providing
freight and commuter/regional passenger service in the Northeast.
Several hard facts must be considered. Railroading in the 1960s wasn't
much different than railroading in the 1930s, except for diesel engines
and radio-equipped locomotives. Harsh and unbending union rules, which
almost exclusively were based on steam railroading and the days when
railroads were printing their own money desperately needed to be updated.
Rules such as steam locomotive firemen still be required in diesel
locomotives just to preserve jobs were costing the railroads hundreds of
millions of dollars a year.
And, too, the railroads were far too heavily regulated and falsely
treated as public utilities because the railroad robber barons of the
19th Century and early 20th Century had been so naughty. The naughtiness
spawned the beginning of the Interstate Commerce Commission, a federal
agency that probably did more to harm railroads and shippers than any
other single government entity in the history of the Republic. The ICC
was a political agency and it had life and death power over the
railroads. Desperate railroads may petition the ICC for relief from some
immediate problem, but the ICC always responded in its own time and way
of doing things, which was never for the convenience of the public or the
private companies it regulated. If not for the Staggers Act that
deregulated railroads at the end of the 20th Century, the ICC would most
likely have presided over the end of the railroad industry in this
country, and then wondered what it did wrong.
It never occurred to anyone in time the advent of the Eisenhower
Interstate Highway System and the Boeing 707 jet airliner drastically
changed the landscape for the railroads in both the freight and passenger
realms, which called for a whole new set of operating, union, management,
and marketing standards.
Everyone was at fault. Railroad senior executives were for the most part
inflexible, and had begun their railroad careers sometime after World War
I, when the rails were king. They never adapted to the changing landscape
of the 1950s and 60s. Wall Street, always accustomed to reaping huge
profits from blue chip railroad stocks before the Interstate Highway
System, still demanded those same profit levels, without taking into
account the changing landscape. Local and state governments regarded the
alleged deep pockets of the railroads as an extraordinary tax base, where
every foot of rail, every station or depot building, every signal tower,
and every spike plunged into a tie were heavily taxed at premium rates.
Railroads shouldered the burden for many local taxpayers, keeping other
taxes for locals low because the alleged mighty railroads with unlimited
revenues could pay the taxes, instead.
The thought processes of unions during the period was best demonstrated
through the New York City newspaper strikes of the day, where most of New
York's daily newspapers were forced to go out of business because they
tried to modernize with new typesetting and printing methods, but the
unions demanded all jobs be retained, even if there was nothing for the
workers to do. The attitude of the unions was they were rather see the
newspapers go out of business than benefit from new work rules which
favored management and owners. The attitude of the railroad unions was
identical. Everyone thought the railroads were untouchable by strife
because they were so necessary. It never occurred to these people the
railroads may actually disappear until the PennCentral crisis.
World War II wore out the railroads. They had already gone through a
tough time during the Great Depression in the 1930s, and the physical
plant was not a good as it could have been. When wartime demands were
placed on the railroads, like every patriotic citizen, the railroads rose
to meet the demand, and performed magnificently. But, by VJ Day, the
railroads were in ragtag shape because of the heavy demands of use, and
no replacement equipment or infrastructure materials had been available
during the war.
After the war, the railroads placed new orders for all types of
equipment, including passenger equipment. The day of the heavyweight
passenger car was gone, and lightweight streamliners were the order of
the day, trailing behind thrifty diesel locomotives.
Many American servicemen had gone to war by riding a troop train, mostly
equipped with older cars that had seen better days. Short-trip day
coaches were pressed into service on transcontinental trains, and, for
many soldiers who envisioned the grand service offered by the passenger
railroads, the nightmares of troop trains stayed with them for a very
long time.
In the first part of the 20th Century, most of the rail based transit
systems in America were privately run. They, too, became victim of the
bus and the automobile, and private systems disappeared as cities and
municipalities suddenly found themselves in the transit business because
the automobile had stolen the heart of the ridership away from the
streetcars and trolleys. Americans, too, suddenly rejuvenated by winning
a world war, were tired of standing on a street corner in all of the
weather elements waiting for what was now ragged and sad-faced public
transportation. Americans had liberated the world, and they wanted the
freedom to move about unimpeded in their own automobiles at will.
Postwar Detroit stopped making drab and boxy sedans, and starting turning
out eye-catching chrome plated automobiles that were the product of
professional stylists, not automobile engineers. Gas was cheap, highways
were being built everywhere, and the suburbs beckoned with new styles of
homes complete with modern kitchens, supermarkets, and shopping centers.
And, then, Boeing and Douglas got into the passenger jet business. The
former glamour of highly civilized rail travel in Pullman Sleepers and
parlor cars was replaced by the fascination of jet travel, with full hot
meals being served at the seat of each passenger by young and attractive
stewardesses, and alcohol flowing like a river. New and shiny airports
replaced dreary and ominous train stations. People became jet setters,
and a new lifestyle was born and glamorized by Hollywood and the media.
Everything but the railroads had changed.
Railroads still had coaches, diners, lounges, and Pullman sleeping cars,
all manned by all-male Black American crews, harking back to the
undesirable era of segregation. It was tough to compare well-trained,
white-jacketed porters and dining car waiters to young, elegantly suited
and perfectly coiffed smiling stewardesses. Train speeds stayed the same,
or, in many cases, slowed down. Stations and terminals started losing
their luster as trains became passee, and maintenance began to slide.
In short, every factor imaginable was against the railroads in the late
1950s and 1960s, and it's only through a miracle the industry survived.
The railroads with the biggest problems were the railroads which handled
short hauls of both freight and passengers, such as the New England
railroads, PennCentral, the Southern Pacific, Chicago and Northwestern,
Milwaukee Road, and others in a similar situation. Railroads which were
in less danger of surviving were ones with little or no commuter business
and little short haul business, such as the Seaboard Coast Line,
Southern, Norfolk & Western, Chesapeake and Ohio, Union Pacific, Great
Northern, Burlington, Santa Fe, and Northern Pacific. While everyone of
these railroads ended up with at least one merger partner, they did so to
maintain positions of strength, not because they were teetering on
bankruptcy. Also, these railroads all operated heavily regulated
passenger trains, but the nature of the long hauls of the passenger
trains made them much more financially feasible than the other railroads
burdened with the high cost and low revenue commuter services.3) At the
end of the 1960s PennCentral was a financial basket case. It
took a long time for PennCentral's management (which was pretty awful to
begin with) to convince official Washington and the public it was in
danger of having to be liquidated. PennCentral was the Enron of its day
on steroids, and nobody knew what was going on until it was too late.
Finally, some action came from the Nixon and Ford Administrations to
tackle the PennCentral mess and create Conrail. One way initially
PennCentral and then Conrail was helped was the creation of Amtrak as a
child of government.
In a nutshell, someone realized there was still viability in passenger
trains, but not fully at the moment with the competition of the
Interstate highways and jet travel and the way passenger trains had
previously been heavily regulated. But, someone realized if Amtrak
relieved PennCentral of its regulated obligations to run passenger
trains, the railroad could concentrate all of its efforts on its freight
business, and not have to worry about the costs of commuter and regional
passenger trains, stations, and other passenger related capital needs and
infrastructure.
Once you do something for one child, you have to do it for every child.
So, Amtrak became a national, optional program, which the private
railroads could join if they chose to do so.
Again, look at the history. By the end of the 1960s, it was time for the
railroad corporate planners to start thinking about ordering new
passenger diesels and cars. Most of the equipment was nearing 20 years
old, and all of the rolling stock mechanical systems were based on pre-
and post-war technology, not anything new.
Few new stations and terminal had been built since the first half of the
century, and almost all of the passenger depots and stations were built
and operated on prewar traffic loads, not current traffic loads. Major
terminals such as Cincinnati, Jacksonville, New Orleans, Richmond,
Atlanta, and elsewhere were giant, expensive-to-maintain monuments to
railroad egos of a time long gone. The stifling regulatory atmosphere of
the day didn't allow for much change in infrastructure or necessary
downsizing.
The computer age was dawning, and the railroads embraced it, on the
freight side of the house. Passenger reservations were still made on
paper manifests, and stations still communicated with each other by
decades-old teletypes. Conductors and engineers were still working under
the 100 mile rule, which was geared towards steam engine travel, not
diesel travel.
Really, when the government came to the railroads and said "do we have a
deal for you," it was tough to turn down joining Amtrak. So many problems
and capital intensive costs simply went away, and trains that used to be
the responsibility of the railroads became the responsibility of the
government. The railroads were paid to run the trains (although a small
sum, not a fair market price), and suddenly a lot of employees and their
pension obligations went away, too, transferring to Amtrak.
Still, though, two railroads held out, the Southern, and the Denver & Rio
Grand Western. Some railroads, like Seaboard Coast Line, which was
proudly operating still in high style its passenger trains, hesitated,
but took the Amtrak plunge, anyway.
Already, the Pullman Company, which was jointly owned by the operating
railroads, had already gone away before 1970, and the individual
railroads took over the operation of the sleeping cars. The demise of the
Pullman Company is a whole other story, but it occurred at a time when
the day of the Pullman Company was simply over, and its functions could
more efficiently be handled by the individual railroads. Most of the
cream of the Pullman Company business, the overnight business traveler,
had already moved to jet airplane travel. The Pullman Company was left
with mostly leisure travelers, who at the time were more interested in
new and novel roadside Holiday Inns and private automobiles than upper
and lower bunks in a Pullman sleeping car.
4) It's May 1, 1971, and Amtrak rolls into existence. About half of the
nation's passenger rail system disappeared overnight. Lots of promises
were made, some which would be kept, and others that would be quickly
broken. Amtrak had many huge flaws, including sloppy legal language which
created it in Congress. Amtrak was not a public national priority in the
Space Age, and it was pretty well left to define itself with lots of
questionable flexibility which would come back to haunt it in coming
years.
Looking at the history of the private railroads, and the beginning of
Amtrak, the company started with extraordinary benefits.
- Amtrak had congressionally mandated operating rights over every stretch
of main line rail and every two streaks of rust in the country.
- Amtrak inherited a national fleet of equipment at no cost, even though
much of it was nearing the end of its useful life. Henry Christie's
famous "A" and "B" lists of equipment would determine which cars would be
converted from steam heat to head end power and live to roll another
million miles down the track.
- Amtrak was exempt from all local and state taxes of every type (except
diesel fuel taxes) and all federal taxes except payroll related taxes.
- Amtrak had no competition in the rail marketplace, and it could carve
out its own useful niche in the transportation world of jet airplanes and
automobile travel.
- Amtrak had no federal or state regulation, and it could manipulate its
route system nearly at will, but with certain union restrictions for job
protection and severance packages.
- Amtrak shed many of the huge and expensive passenger railroad terminals
in major cities in favor of small, efficient stations that required fewer
employees and had lower operating costs.
- When Amtrak needed money, it went to the federal government for
handouts, often with no strings attached. The private railroads had to be
accountable to stockholders, entities buying commercial paper, banks for
loans, and everyone else in the world of commerce. Amtrak simply was
written a check by the government with no mandate to pay back the amount
or scrutiny as to how it was used. Amtrak had an unending source of funds
that was renewed on an annual basis.
- In the early 1970s, Amtrak tried a bold experiment by today's
standards. It advertised itself to the traveling public, offering all of
the myriad of advantages of passenger rail travel. The public responded
in droves, and Amtrak could not handle the public demand. Instead of
finding a way to meet the demand, Amtrak retreated into becoming
America's best kept secret, and a constant financial ward of government.
5) All of this put together should have made Amtrak a resounding success.
Oops! It wasn't, and still isn't. What went wrong?
- In the early days, too many people tried to remake passenger rail
travel into the image of airline travel, or, even worse, bus travel.
Nobody was content to let Amtrak be Amtrak, and play to the strengths of
passenger rail travel, and not try to imitate another form of travel.
- Many of the original officers of Amtrak came from the few failing
private railroads, especially the PennCentral and its predecessor the
Pennsylvania Railroad, which at one time had advertised itself as the
Standard Railroad of the World. The boys from the Pennsylvania and later
PennCentral pretty well started this whole mess with their failures
(along, of course, with way too much government regulation and a host of
other problems) that created the need for Amtrak. The people who failed
previously were brought in to fail again, whether consciously or not by
the federal government and Amtrak's creators.
- When the Ford Administration, groping for a way to make Conrail viable,
shunted off the Northeast Corridor onto Amtrak to keep it off of
Conrail's books, someone should have just turned out the lights at that
point and told everyone to go home. Expensive, high-cost and low revenue
regional rail, especially Mid-Atlantic and New England regional passenger
rail, were huge contributors to the failure of the private railroads. By
passing the infrastructure and operations along to Amtrak without a
better business plan to operate the regional system, the same problems of
50 years ago still exist today, and are continuing to drag Amtrak down.
- The addition of the black hole of the NEC to Amtrak completely changed
the mission of the company and its business plan. Amtrak's original
business plan was based on operating long distance passenger trains as
the primary function of the company, not glorified commuter trains which
were hopeless money losers and more public utilities than a modern
business. The mistake Amtrak made was concentrating too much of its
resources on rescuing the NEC, and not enough of its resources on
building a strong, healthy, national long distance system which the
public wants.
Here's something that can keep people awake at night wondering: If Amtrak
would have stuck to its original business plan (flawed as it was) of
running a long distance passenger system, and the Ford Administration had
found another place to put the NEC instead of Amtrak (such as the FRA or
USRA), it's highly likely Amtrak today, in 2008, would either be
profitable or very close to breaking even. Without the distraction of the
Northeast Corridor, the Capitol Corridor, the Pacific Surfliners, and
other local services, it's highly likely there would be a daily Sunset
Limited over the full route between Los Angeles and Orlando, there would
be a daily Cardinal between Washington and Chicago, the Pioneer and
Desert Wind would still be in operation, there would be a Broadway
Limited, a National Limited, a Floridian, a Champion, and a North Coast
Hiawatha, along with a few other discontinued trains from the early days
of Amtrak. If Amtrak had remained an operating company, as based on the
successful model of the Pullman Company (pre-jet travel), and not an
infrastructure owner and operator, today's national system would most
likely be a healthy railroad taking full advantage of the resurgent
interest in passenger rail travel in America. Instead, the company is
foolishly bogged down in running short distance, high-expense, low
revenue trains which contribute little to the national commonweal.
- The creation of Conrail and the transfer of the NEC to Amtrak also
created financial havoc when Amtrak did not write new contracts with
commuter railroads it hosted on the NEC. As far back as before the
creation of Amtrak, the Long Island Rail Road, which was a commuter road
that hauled some local freight as an afterthought, was spun off into a
government agency in New York State. Forty years ago, railroaders knew
hauling commuter trains was a losing proposition. When Amtrak took the
NEC (under protest), it never imposed fair operating contracts on its
commuter systems it hosted. Sweetheart deals which benefitted local
politicians and local government at the expense of Amtrak abounded.
Taxpayers in Arizona were paying dearly for commuters in New Jersey to
have commuter rail access into New York City. Instead of locals paying
for local costs, suddenly federal taxpayers were subsidizing local
commuters. This bore no relationship to the federal highway building
projects, where federal, state, and local governments shared the one time
costs of building new roads. Instead, it turned into an annual gift of
solely precious federal resources that deprived entire cities and towns
of even one train a day for basic long distance travel so NEC commuters
could have an easy ride to and from work.
Despite the false information constantly provided by Amtrak and its many
sycophant rail fan support organizations, closing the NEC to Amtrak
commuter trains would not grind the national to a screeching halt. The
relatively few daily Amtrak riders of the NEC, measured by the total
counts of all North-South travelers in the region, would simply switch to
private automobile, bus, or air travel if there were no more Amtrak short
distance NEC trains. The local commuter agencies would continue without
the largess of Amtrak's annual capital improvement budget for the NEC,
and there would be little difference in life in the Northeast.
A reality no one, especially Amtrak and those same sycophant
organizations and the greens want to admit, is that Amtrak is not - and
never will be - a solution to transportation problems, either in urban
areas or in regions. What Amtrak has the potential to be is a good
alternative, for whatever reasons you may choose, and it does bring
balance to our domestic transportation network. Keep in mind Amtrak's
national share of the transportation marketplace is about the same as
motorcycles. Amtrak can be more relevant by growing its system, but the
relevance must be measured in real transportation output, not commuter
and regional trains which operate with annual load factors of less than
50% or even as disastrously low as 35%. Amtrak has always done very well
serving the many small, intermediate stops in its national system. These
smaller station stops often generate the highest revenue tickets at the
lowest cost. To small town America, Amtrak is an essential service. This
is where Amtrak shines the best, fulfilling its original mission to
provide a viable, national passenger rail system.
- Because it has been a government overseen monopoly, Amtrak has never
acted like a real company focused on passenger service. It has become
lazy and complacent, knowing another year's pot full of free federal
money was just months or weeks away.
- Like the blunders of so many railroads, Amtrak has let itself be
dictated to by the operating department, and brushed aside the needs of
the marketing department. Amtrak has often run trains on schedules which
were convenient for crew changes, meshing with commuter operations, or
the needs of terminals, instead of the desires of passengers. Just as the
freight railroads learned the hard way and finally got rid of the
mentality of "if we run a train, we don't care if you put a box car on it
or not," Amtrak has never learned that lesson, and still lets the
operating department make too many passenger services decisions.
- Amtrak continues to have a complex about offering anything other than
Spartan services. Because it is a child of government, many believe
Amtrak should not offer high-dollar, high-profit services, but, rather,
should be a bus on rails with minimal creature comforts. Not only does
this provide a glaring example of why Amtrak should not be a government
entity, it also avidly demonstrates how thinking in terms of government
provided services versus privately provided services warps concepts and
can hide true potential. Amtrak, as a part of government, has a duty and
obligation to provide the best level of service available that generates
the highest income at the lowest cost. That is being a good steward of
taxpayer subsidies. Instead, Amtrak aims for mediocre service levels at
often inconvenient times that will always require free federal or state
monies because its business plan is not geared toward productivity on any
level.
Often, watching Amtrak crews at terminals or station platforms, one can
draw a conclusion there is never a sense of urgency, or desire to make up
time if a train is running late. There appears to be a complacency among
many of Amtrak's crews that when the train gets there, it will get there,
and there will be no extra compensation for the crews, or any penalty for
the crews for being late. While tardiness is often the cause of host
railroads, and often Amtrak itself causes tardiness by lack of equipment
maintenance or lack of adequate staffing, it is rare to see an Amtrak
train crew pushing to get a train into a terminal or the next station in
any particular hurry. These front line soldiers of Amtrak in most cases
have the personal motivation to get a job done well, but the system they
work in does not provide the exhortation necessary to prompt improvement.
- Amtrak's skeletal national system is expensive to operate and does not
provide its potential return on investment. Even though it is easy to
demonstrate the Empire Builder route performs financial circles around
any corridor route, and throws off a positive cash flow (that reads
profits for all of those unfamiliar with the concept) from operations,
the route has the easy potential to double its contribution to Amtrak's
bottom line. This can rationally be accomplished by expanding the length
of the train (the easiest fix), promoting the train heavier (even though
it has one of the best load factors in the system), or negotiate with
BNSF for a second frequency over the line.
Daily passenger trains require stations and personnel on the ground to
run them, including crew bases and maintenance shops. The least efficient
way to use these assets is to have one train a day (or, even worse,
tri-weekly service) in each direction. That's a lot of infrastructure for
one visit a day by passengers in each direction. When route frequencies
increase, the infrastructure costs remain virtually the same (although,
occasionally, some station hours must be lengthened to accommodate other
frequencies), but the revenue potential more than doubles because more
passengers respond to more travel times choices. This is the same all
over the Amtrak system.
Even though the host freight railroads want to moan about track capacity
restrictions (which is often a very real scenario), somehow, when the
price is right and conditions are favorable, space is always found for
another train. Not every piece of rail in every part of the country is
totally congested. There are many opportunities for Amtrak to expand its
system, but someone has to want to do that first, and that doesn't seem
the case with Amtrak.
6) Where does all of this leave us? In a terrible place, with a crippled
passenger rail system with a grossly flawed business plan, a nationwide
demand for passenger service which is not being met, and a glaring hole
in our domestic transportation network.
- Amtrak needs to take more responsibility for itself, and take a serious
inventory of its assets and potential. It needs to realistically look at
the potential of its system, and expand the system where the most
revenues will be generated by spending the least amount of money.
Passengers in the form of high numbers of warm bodies are not the answer.
Passengers in the form of people who generate the most transportation
output for the lowest cost are the answer. Amtrak is not a public
utility, and should never be considered as a public utility. Amtrak is -
startling so to some - a very real business with an obligation to operate
efficiently and effectively.
If Amtrak became financially stronger on its own accord, the annual
charade over free federal money would simply go away. Why do ill-bred and
ill-informed people want the future of Amtrak to always be dependent on
the largess of irresponsible politicians?
Why do some of these same people - and, others, which are wiser and have
more realistic life experiences - always look with envy of what is
happening in Europe and wonder why we can't have the same type of
transportation system, here? Don't they understand how so many of the
dynamics are completely different, and comparing our national needs to
those of Europe are comparing apples to oranges?
- Amtrak needs to become more creative. President and CEO Alex Kummant is
presiding over some much needed changes at Amtrak (see item one of this
column), and he has in place good executive like Richard Phelps, Mike
Chandler, Brian Rosenwald, Tommy McDonald, and Butch Williams. These wise
and personable professional railroaders understand operating Amtrak is
more than just running trains, but it's also all about passenger service
and proper marketing.
The "experiment" of running the Empire Builder like it was always run
prior to the last few years at Amtrak has proven successful, and is being
expanded to other trains, such as the Coast Starlight (really, the Coast
Starlight is just going back to the way it was when Brian Rosenwald
remade it successfully in the 1990s, with a few new twists relevant to
today). The California Zephyr and other trains can't be far behind.
The City of New Orleans has instigated a "revolutionary" new concept, all
day dining. This isn't very new, since highly successful test runs of a
24 hour dining car on the Sunset Limited, under the partial creation and
supervision of this writer, were done in 1999 and 2000. At the same time,
an analysis was done for the City of New Orleans to also host a 24 hour
dining car.
Lots of things have been tried in the past, but were often victim of the
"not invented here" syndrome at Amtrak. There are so many creative things
which can be done at Amtrak to greatly improve passenger service and
revenues, yet the company mimics a glacier when it comes to moving
forward on these items.
- Amtrak needs to come to better terms with its employees, particularly
the union employees. Fears of a strike at the end of this month loom, and
a presidential emergency board is already in place looking at the overall
labor picture and trying to find a reasonable middle ground between
management and labor. Former Chairman of the Board David Laney deserves
much credit for jump starting labor relations and forging new contracts,
but the job now needs to be finished with realistic Amtrak contracts that
meet the needs of both the company and the employees.
- Amtrak needs a better business plan, instead of one always based on
using other people's money, be it on the federal or state level. If
Amtrak needs some help today getting out of the mess it has gotten itself
in to, well, okay. But, at some point, Amtrak needs to realistically
demonstrate it is serious about running a business, and serious about its
own future through a better business plan. There is no one perfect
answer. But, there are a host of answers, all better than the one Amtrak
is using today.
7) The post-war days of the 1950s and 60s are gone. Americans have
rediscovered passenger trains (as much as Amtrak has let them despite
dismal marketing), and they are looking to passenger trains as reasonable
alternatives to air and private automobile travel.
Just as the passenger jet aircraft killed the cruise ship business, it
killed the rail passenger business. But, in a new day with a new
emphasis, both businesses have rebounded robustly in the eyes of new
generations of passengers. Cruise lines are making more money and profits
today than they ever have in their histories. Amtrak has the same
potential as the cruise lines, if someone will just allow that to happen.
The things that smothered passenger rail, such as heavy government
regulation, and the treatment of passenger trains as God-given public
utilities, are gone. Cost everywhere have been slashed, from property
taxes to staffing huge station facilities. Bi-level and efficient
Superliners have replaced low density single-level coaches, sleepers, and
diners. Modern reservations systems have made access to Amtrak available
to everyone.
There is no rational reason to say passenger trains in America can never
make money. There is no rational reason to say Americans don't want to
ride a train, when demand is so high when properly marketed and
reasonable frequencies are available. There is no rational reason why
Amtrak can't be relevant as an integral part of our domestic
transportation network, with a transportation market share greater than
that of motorcycles. Amtrak only has to have the confidence to meet its
true potential, instead of unhappily being a ward of a government that
doesn't truly understand what it has on its hands.
8) Finally, it is important to note the passing of former Amtrak
President and CEO George Warrington. After leaving Amtrak, he rejoined
his former employer, New Jersey Transit as its head man, and ran the
system until earlier in 2007. He abruptly left NJT, saying he wanted to
spend more time with his family. What most people didn't know was he had
been diagnosed with pancreatic cancer, and it took his life on Christmas
Eve at age 55.
As one former Amtrak senior manager said, "I didn't always agree with
everything he did, but he was a force to be reckoned with." That is
perhaps the best way to sum up his service to Amtrak. He was a strong
personality, and he believed in his convictions. Right or wrong, he did
try to bring change to Amtrak, even if the end result was bad. Everyone
who tries to make a difference deserves to be admired.
Our sympathies are extended to his family and friends on their loss of
George Warrington, an American who believed in what he did.
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