U.S. Lawmakers Concerned About Amtrak Viability

WASHINGTON - Two prominent congressional lawmakers expressed serious concern Tuesday, March 20, about Amtrak's ability to wean itself from federal operating subsidies as an oversight board urged the railroad to restructure itself.

"I have continually monitored Amtrak's poor performance and been appalled by its lack of progress," said Rep. Don Young, an Alaska Republican and chairman of the House Transportation and Infrastructure Committee.

Young was responding to findings of the Amtrak Reform Council, an oversight board established by Congress to monitor the passenger railroad's progress toward operational self- sufficiency by fiscal 2003.

The council, in its annual report released Tuesday, March 20, said Amtrak was institutionally flawed and rejected its long-term financial viability under its current corporate structure.

It introduced several options to overhaul Amtrak's business by separating train operations from major infrastructure responsibilities, which are in the Northeast.

A government board would oversee the separate entities, would be the main contact with Congress on funding needs and would establish priorities.

"We need a new Amtrak, a restructured Amtrak," council Chairman Gilbert Carmichael said at a news conference at which he said he was unsure if the service would ever be operationally self-sufficient.

Currently, Amtrak performs both commercial and government functions, while infrastructure duties "divert attention" from train operations, the council said.

"Amtrak has too much on its plate," Carmichael said.

Rep. Jack Quinn, a New York Republican who chairs the House railroad subcommittee said the reform council report demonstrated the, "dire need for some immediate action."

Amtrak's operating loss was more than $940 million in fiscal 2000, from which the railroad subtracts more than $350 million for depreciation. Nevertheless, the cash loss of more than $560 million was $120 million more than projected.

The council also said Amtrak faces an uphill fight just to gain market share on its flagship Northeast Corridor route, much less provide viable service on routes nationwide.

The Northeast Corridor is almost entirely owned by Amtrak, which faces huge costs to maintain its infrastructure. However, the council said owning the route from Washington to Boston is not essential to the operations of a new Amtrak.

Amtrak has said it is on target to shed its federal operating subsidy, which totaled $521 million this fiscal year and said the reform council recommendations will not solve its problems.

"These policy options would increase the costs and the complexity of managing the system without any gains in commercial viability," Amtrak President and Chief Executive George Warrington wrote in a letter to the council.

Warrington tops the witness list at a House Appropriations subcommittee hearing scheduled for Wednesday.

Amtrak faces tough scrutiny from Congress on its viability, but Carmichael said in an interview he believed lawmakers want the railroad to succeed.