How Amtrak Could Become Profitable

[FarCenter]

Over the last 15 years, Amtrak ridership has grown 55 percent, outpacing population growth by a factor of three. It’s the fastest growing means of domestic transport, and shows no signs of slowing down.

So why do its routes continue to lose so much money?

The answer, according to a report released today by the Brookings Metropolitan Policy Program, is that Amtrak comprises two different and increasingly divergent systems of passenger rail.

"We have the efficient portion," says Adie Tomer, a fellow at the Brookings one of the authors of "A New Alignment: American Passenger Rail in an Era of Fiscal Constraint." "And then we have the geographically equitable portion of it."

Taken together, the 26 of Amtrak’s 44 routes that run less than 400 miles had a positive operating balance in the 2011 Fiscal Year, with a surplus of $46 million. The 14 routes longer than 750 miles posted a loss of $597 million. The former account for 83 percent of ridership; the latter 15 percent.

http://www.businessinsider.com/how-amtrak-could-become-profitable-2013-3

[Wellstone ruled]

1. Thanks for the post.

Now,here is the real killer for Amtrak,when there is a train wreck on any class 1 railroad in the U.S.,the costs are paid for by Amtrak. Read the rule on rail surface transportation. Talk about a gift to the wealthy.

[FarCenter]

2. They pay for the cost of Amtrak passenger train wrecks, not for freight train wrecks

The Class 1 railroads own the tracks. The legislation required the Class 1 railroads to allow Amtrak to run passenger trains on their freight railways. Amtrak pays a small amount annually and indemnifies the Class 1 railroads for the cost of any Amtrak train wrecks.

Note that the only tracks that Amtrak owns are part of the Northeast Corridor. All other trains run on the tracks of various private corporations who have little incentive to regard Amtrak as other than a political and operational bother.

[Le Taz Hot]

3. I was just about to plan a family trip

on Amtrak from L.A. to OK City. Everything was looking good with the Rail Pass, then I checked the schedules. Only one pass-through in each city and each and every one of them -- at night. Boarding around 10:00 pm, arriving at destination at around 4:30 am. Each leg of the trip.The whole idea was to see the S/W scenery and stop along the way but that's not possible. MAYBE Amtrak might want to re-think it's scheduling. Needless to say, we decided to fly.

[MineralMan]

4. That demonstrates that trains aren't popular for long-distance

travel. I would not take the train for any trip that required more than a day. For shorter trips, however, I've taken the train often. I love it. I've gone between Chicago and Normal, IL a number of times, and always enjoy that trip.

I also used to take the train between San Luis Obispo, CA and both Los Angeles and the Bay area from time to time, and I'm a big fan of commuter trains, too.