An Action Plan for the Restructuring and Rationalization of the National Intercity Rail Passenger Sy...
Download
1 / 14

2000 Ridership - PowerPoint PPT Presentation


  • 61 Views
  • Uploaded on

An Action Plan for the Restructuring and Rationalization of the National Intercity Rail Passenger System Briefing by the Amtrak Reform Council February 14, 2002. Amtrak’s ridership is growing very slowly. Amtrak has a very small share of the intercity travel market . 2000 Ridership. Airlines.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '2000 Ridership' - dinah


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

An Action Plan for the Restructuring and Rationalization of the National Intercity Rail Passenger SystemBriefing by the Amtrak Reform CouncilFebruary 14, 2002


Amtrak’s ridership is growing very slowly. Amtrak has a very small share of the intercity travel market

2000 Ridership

Airlines

610,000,000

Intercity Bus Carriers

42,000,000

Amtrak

22,500,000


Amtrak s financial performance

$1,200 very small share of the intercity travel market

$1,000

$183

$66

GAAP Loss

GAAP Loss

GAAP Loss

GAAP Loss

GAAP Loss

$142

$178

$166

$762 million

$930 million

$916 million

$1,073 million

$943 million

$800

$82

$90

$103

$142

$37

$600

$488

$405

$383

$337

$248

$400

$200

$341

$335

$310

$301

$292

$(5)

$-

Amtrak’s Financial Performance

Amtrak Financial Performance, FY1997 -- FY2001

Est. Excess Mandatory

Railroad Retirement

Capital contribution to

operating (progressive

overhauls)

($ millions)

Depreciation/non-cash

expenses

Operating loss for

purposes of self-

sufficiency

Operating contribution

to capital

FY1997

FY1998

FY1999

FY2000

FY2001


The council s plan is based on three concepts for reform
The Council’s plan is based on three concepts for reform very small share of the intercity travel market

  • A new business model for Amtrak

  • The option to introduce competition

  • An adequate and secure source of funding


The new business model separates amtrak s functions into three components
The new business model separates Amtrak’s functions into three components

  • Government program administration and oversight

    • Funding

    • Corridor Development

    • Oversight

  • Train operations

    • A separate company with a strong business board to focus on market oriented services

  • Infrastructure

    • A separate federal government entity to own and manage the NEC infrastructure


Federal program management and oversight
Federal Program Management and Oversight three components

  • The National Rail Passenger Corporation (NRPC) would be restructured as a small government entity

    • The NRPC would be modeled after USRA’s role monitoring Conrail to manage the intercity rail program

    • A board of directors representing states, the federal government, the freight railroads, and rail labor


Federal program management and oversight1
Federal Program Management and Oversight three components

  • The NRPC would:

    • Secure and administer federal funding

    • Approve business plans of the operating and infrastructure entities and monitor their implementation

    • Manage franchising of train services

    • Lead high-speed rail corridor development


Federal program management and oversight2
Federal Program Management and Oversight three components

  • The NRPC would:

    • Hold the statutory franchise to access freight railroad rights-of-way

    • Make insurance available to train operators

    • Divest non-NEC assets

    • Ensure the NEC infrastructure company is brought to a state of good repair

    • Preserve and improve a national reservations and ticketing system


Train Operations three components

  • The new train operating company would be a subsidiary of the NRPC

    • All services would be provided under contract with performance standards (similar to Amtrak’s commuter operations today)

    • All services would have separate, transparent accounting

    • A board of business professionals with expertise in transportation, operations and finance


Optional franchising of train operations
Optional Franchising of Train Operations three components

  • The NRPC would evaluate the merits of franchising specific services during an initial transition period (2 to 5 years)

  • Contracts would be let through a competitive bidding process for both profitable and unprofitable services

  • The need for adequate track capacity would be taken into account in designing and awarding franchises


Optional franchising of train operations1
Optional Franchising of Train Operations three components

  • If franchising is implemented, the Council also recommends that:

    • All franchisees be subject to the Railway Labor Act, Railroad Retirement and FELA

    • Existing Amtrak employees be given a right of preferential hiring with new train operators

    • Employees follow their work in seniority order with their collective bargaining agreements intact. Contracts could be renegotiated pursuant to the Railway Labor Act


Nec infrastructure
NEC Infrastructure three components

  • A new subsidiary of the NRPC would own, maintain, and upgrade the NEC

    • The board of directors would be made up of representatives of the NEC states, the federal government, freight carriers on the NEC and the train operator


An adequate and secure source of funding
An adequate and secure source of funding three components

  • Even with reform, the cost of the intercity passenger rail program will be considerable

    • Current annual operating subsidies are about $600 million

    • About $100 billion of funding over 20 years to develop all high-speed corridors including returning the NEC to a state of good repair


Conclusion
Conclusion three components

  • The Council’s Action Plan will provide:

    • An effective rail passenger program

    • More economical and higher quality services

    • The Congress with the confidence to fund the rail passenger program that the country wants and needs


ad