WASHINGTON, D.C. -- Highlights of the reform plan for Amtrak that
will go to Congress, according to a wire service report:
-Amtrak and the National Rail Passenger Corporation --
currently the same entity -- would be split, and the corporation
would oversee a transition of train operations to the private
sector. During a transition period of two to five years, train
operations would be handled by a subsidiary with an organizational
structure like Amtrak's.
During this transition period:
-The corporation would create separate subsidiary units of
the train-operating company to run the Northeast Corridor, other
populated short-haul corridors, and long-haul routes.
-Other
new units would run the railroad's mail and express delivery
business, operate the locomotive and car repair shops, and hold
ownership and lease rights to equipment.
-The corporation
would have the authority to franchise out one or more Amtrak routes
as pilot projects. Franchisees would win contracts through
competitive bidding. They would have to hire Amtrak employees, by
seniority, and respect Amtrak's existing collective bargaining
agreements.
-The federal government would continue to
subsidize the operations of long-haul, overnight trains.
After the transition period:
-All train routes would
be subject to franchising by competitive bids. If no bids are
offered for a route, the corporation's subsidiary would continue
operating it.
-States developing high-speed corridors or
subsidizing lower-speed trains would have the right to manage the
franchising process for those routes.
-Mail and express
operations would be franchised through competitive bidding as a
single unit or as parts of passenger operation franchises.
-The federal government would continue to subsidize
long-haul, overnight trains. But states would begin covering any
losses associated with existing and new service in short-haul
corridors.
-The operating company created as part of the
transition would be privatized.