(Reuters circulated the following article on September 21.)
WASHINGTON — Some Amtrak routes should be offered to the private sector to help salvage the debt-ridden national passenger rail system, Amtrak’s chairman said on Wednesday.
“We will consider every conceivable solution to make it work. We’re committed to hold the system together at acceptable cost,” David Laney told a hearing of the House of Representatives railroads subcommittee.
The hearing revealed what one senior federal transportation official said was a shift this summer in the debate over Amtrak’s future. Lawmakers have begun to move away from criticizing or defending the railroad’s finances and performance to exploring options for passenger service to continue.
Blueprints that would provide long-term funding to support operations and improve antiquated track, signals, bridges and tunnels, have received bipartisan support from House and Senate lawmakers with influence over transportation matters.
Congressional funding proposals for 2006 include federal subsidies of between $1.2 billion and $1.4 billion. Amtrak received just over $1.2 billion this fiscal year, which ends on September 30.
The Bush administration opposes any subsidy until its reform agenda is met. This could range from deep cost cuts to dismantling Amtrak’s control over routes and its infrastructure.
Amtrak’s board is considering limited reform, including the possibility of jettisoning underperforming long-distance routes, boosting investment by states, and opening some or all of the system to private competition.
“Private operators need to be given a shot. Amtrak assumes it will be competing for its future,” said Laney, adding that any change should be gradual.
Unions complain that Amtrak and the Bush administration’s proposals will hurt the railroad’s 20,000 workers.
The Transportation Communications International Union says Amtrak wants approval from Congress to do what bankrupt U.S. airlines have done in restructuring — remove workers from pension programs and change contracts to gut work rules.
“The administration together with the Amtrak board of directors have used every argument they can to lay blame on Amtrak and its workers in order to kill Amtrak through privatization,” said Robert Scardelletti, the TCIU’s president.
Rep. John Mica, a Florida Republican, planned to introduce a bill to open Amtrak’s flagship Northeast Corridor to competition.
Amtrak will end the fiscal year with $120 million in cash despite the loss of premium high-speed Acela service for nearly six months because of a brake problem. But Amtrak’s operating loss will exceed $550 million, the Transportation Department said. Amtrak’s debt exceeds $3.5 billion.