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Amtrak Saved from Bankruptcy Marpasks for GAO Trains Regain a Future in an 11Th-Hour Move, the U.S

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Amtrak Saved from Bankruptcy Marpasks for GAO Trains Regain a Future in an 11Th-Hour Move, the U.S ' ~§§§(fO~§[fil [Fd§~~ [M]§OD1J8 ·'(l\11ehig~n Ohio • Indiana Issue 128 November 1997 Amtrak saved from bankruptcy MARPasks for GAO Trains regain a future In an 11th-hour move, the U.S. Congress has saved Am­ investigation trak from an almost -certain bankruptcy by passing the Am­ trak reform and reauthorization bill. The measure passed In a letter to U.S. Senator Spen­ both the Senate and House of Representatives without any cer Abraham (R-Michigan), objection. With the clock ticking down to a holiday re­ MARP has asked for a General Ac­ cess, Republicans and Democrats negotiated an agreement counting Office (GAO) investiga­ that drew support from interest groups that were at odds tion and assessment of the effec­ only days earlier. tiveness ofAmtrak's management. Amtrak's access to $2.3 billion in capital investment The request was prompted by the funds, included in the Taxpayer Relief Act of 1997, was fall schedules for the Chicago-De­ tied to passage of the reform bill. The capital funds are troit corridor, which went into ef­ needed to retire old debt and to upgrade aging facilities fect Oct. 26. and rolling stock. Without these, Amtrak was facing the The new schedules are the long­ prospect having to go back to unsympathetic creditors in est in Amtrak's history, and, at six December, which probably would have forced Amtrak to hours (Chicago-Detroit), are even file for bankruptcy. longer than they were in the days of Penn Central. After over $100 mil­ It is quite likely that, if Amtrak had filed for bankruptcy, ., a large portion of the national system would have been lion of track and signal work by the -' linnirl<=>tf>rl to n<=>v off rrPrlitor<:: Tn<:tP<=>rl A rntr<=>k h!'l<:: <::nrl- State of Michigan and Amtrak over - x-~-~..,...----~~~I~-.:t D.l.-.;;;; ~I~ ~··e- prospect having to go_back to unsympathetic creditors in est in Amtrak's history, and, at six December, which probably would have forced Amtrak to hours (Chicago-Detroit), are even file for bankruptcy. longer than they were in the days of Penn Central. After over $100 mil­ It is quite likely that, ifAmtrak had filed for bankruptcy, .,. .J a large portion of the national system would have been lion of track and signal work by the -­ liquidated to pay off creditors. Instead, Amtrak has sud- State of Michigan and Amtr.ik:·O'~ ' denly been granted a much brighter future. the last 20 years, passtngers have a "With the President's signature, Amtrak will join the right to expect faster schedules. rest of America, crossing the bridge to the 21st Century," The schedules supposedly are to said Amtrak Chairman, President and Chief Executive reflect "reality," but the schedule­ Officer Tom Downs. makers have forgotten what hap­ President Bill Clinton was expected to sign the reform pened when this was done back in bill, as reported at newsletter press time. Congress and David Petry photo the 1970's. Trains ran on time for the Clinton Administration have told Amtrak that federal AMTRAK RETURNS TO COLUMBUS! It may have been a couple of months, then the same operating support will cease in 2002. for just one weekend (Sept. 20-21), but the Amtrak train old pattern of freight interference "Together, the labor agreement and the passage of re­ chartered by the Mad River and NKP Railroad Society of and sloppy train handling began form legislation continues Amtrak on the right track to Bellevue, OH showed off3-C Corridor rail travel. Dubbed taking over, and trains ran just as long-term viability," said Rodney Slater, secretary of the as "The Ohio State Limited", the sold-out train carried late as ever. U.S. Department of Transportation. passengers from Cleveland and Galion to Cincinnati, with MARP also cited Amtrak's ap­ some continuing on to Paris, KY. Behind the two P42 The bipartisan compromise meant the inclusion of some parent refusal to confront the Ca­ locomotives were nine Superliner coaches, and two private nadian National (CN) in court over new provisions to the Amtrak reform bill: cars providing first class service. A week later, the same CN's continuing freight interfer­ • Labor protection (under section C-2) is removed from train ran between Akron and Pittsburgh (see page three for the statute upon enactment. Then, parties negotiate dur­ photo). In this scene, the train is pulling away from ence at Milwaukee Junction in De- - See "AMTRAK" page Five downtown Columbus, heading for Cincinnati. - See "GAO" page Eight The Passenger Rail News 'O::f)\ PRESORTED jJ'~>- 4 79 Humiston Drive FIRST CLASS What's Inside... (;~~t:J BayVillageOH 44140-3017 U.S. POSTAGE e-N 128 PAID '"Train ofThought" ADDRESS SERVICE REQUESTED Cleveland OH Permit # 2470 'Cincy Solution ' Michigan station profile 'Conrail line bought in Columbus ' Commuter rail demonstration 'Record-setting Michigan ridership 'OKDC opposes Conrail split The Passenger Rail News, November 1997 111111nger Rail NI!W!I Train of Thought Copyright © 1997, Ohio Association of Railroad Passengers. All articles not originated by OARP are copyrighted from OARP Executive Director by their respective originators. All rights reserved. Kenneth Prendergast Kenneth Prendergast, Editor t's time to begin looking for a better way to run a railroad. I know Con- Mark Carlson, Production Marilyn Carlson, Distribution I gress has reformed Amtrak's labor practices and other operational mat­ ters. The question is, do Congress' reforms go far enough? I think not. of Few can say, with a straight face, that Amtrak has been a success. Despite Qt\.RP's iStatement .. Purp~~~ recent statements by Supertrains author Joseph Vranich and a few others, it · .flte 9~o Ass~iation.of Railroad Pa$Stmgers e•f8to en~rageand ~()f)r~~the .e1forf8 of ()hio trailspottation OOilSllJllers·in·developmg may be too drastic to bum Amtrak at the stake in the hopes something better · r•u~nger ~rvieein Ohi~ might rise from its ashes. Instead, we might look at ways of advocating ei­ ther an amending of Amtrak's authorizing legislation-the Rail Passenger _.sa~UJiSU~erorganization, we regard the public rail transportation Service Act of 1970-or a restructuring of Amtrak's corporate structure. ·ml)d~. ~n~alfor many reasons. Rail bas a superior potential for as Regarding an amendment to the legislation, I recall a recent, amazing tum CC)ngestion reHe~.(!omfort, resource conserv:ation, and compatibility with of events. Last year, the Illinois Department of Transportation's operating · t~' newesttecbJ1ologies~ agreement with Amtrak expired. Not only did Amtrak bid for a new con­ t.• ...•. ·.•·.• ·•.P.···.• ... ·.ks·:·.·.··· ·.·.m.. ·.·.·.. · k ser­ t•ve., lt.an.... ·.d'· an.....·.·· ... ·.. d imp···.·.. ·. ro.v:... ·. xisting.'· .. •.. ·.. A.... tra. ex... e.•..· ..... ·.e. me..·.·.·. tract, but so did freight railroads Burlington Northern/Santa Fe and Union see.••..•... (ll··~.iJrb~llt•rail•traiJsit by e(lucating.the~;eneral·public,.inter .. Pacific, plus Metra, the Chicagoland commuter rail authority. ;~ps,pi,Sfederat,·smte,.and Jocal··u,~ids· .. Amtrak won the bid because it could offer the lower cost structure, in part because the 1970 statutes gives it more regulatory freedoms, tax exemp­ tions, and other benefits its competitors could not match. Thus, to level the playing field, amend the Rail Passenger Service Act so it .krfiif~J~n e~ 1 may apply to any rail operator which can be licensed to run passenger trains. Amtrak could become a contract manager, like it already is with a number of urban commuter railroads, and provide new intercity passenger train opera­ WANTED .. :·· tors with its liability insurance benefits, national reservations system, sta­ Photos and Articles tions, etc. for a fee . •: Clippings from newspapers and magazines Corporate restructuring could simply expand on something Amtrak has must include the publication's name and date. already started-the strategic business unit. Amtrak has three such units: Your articles and news briefs should be typed west, northeast, and intercity. West is basically everything that operates along and double-spaced, though very short items the Pacific Ocean's coast. Northeast is mostly the Washington D.C.-Baston may be legibly written. Preferably, send hard Northeast Corridor, plus several routes that extend inland for several hun­ copy with IBM-compatible text files on 5W' dred miles. Intercity is everything else, as if they were leftovers. or 3Y2'' disks. Submissions via e-mail to: Attention to customer service, marketing ingenuity, and generally decent • ·: Intemet:[email protected]. operating conditions seem to prevail at Amtrak's west and northeast SBU's. u.T~ -~~~~·~ .. h~ _;~h.. .-~ ~r~:, Bu~-~ubli..oh..d_ 1 This compares to the apathetic morale, poor customer service, shorta,sje qf _ ~ :·· WliD ................. .., .. tors us nauuuy u•,u•a•"·"''-' ._,..., ..,_. ..u, ··~---··-· ____ _ Photos and Articles tions, etc. for a fee. Clippings from newspapers and magazines -·- Corporate restructuring could simply expand on something Amtrak has must include the publication's name and date. already started-the strategic business unit. Amtrak has three such units: Your articles and news briefs should be typed west, northeast, and intercity. West is basically everything that operates along and double-spaced, though very short items the Pacific Ocean's coast. Northeast is mostly the Washington D.C.-Boston may be legibly written. Preferably, send hard Northeast Corridor, plus several routes that extend inland for several hun­ copy with IBM-compatible text files on 51!4" dred miles. Intercity is everything else, as if they were leftovers. or 3¥2'' disks. Submissions via e-mail to: Attention to customer service, marketing ingenuity, and generally decent Intemet:[email protected]. operating conditions seem to prevail at Amtrak's west and northeast SBU's. We reserve the right to edil.
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