(United Press International circulated the following article on May 18.)
Mobile, Ala. — The U.S. transportation secretary ripped Amtrak Wednesday for big losses and said the railway did not possess any internal incentive to improve.
Last year, Amtrak lost more than $908 million on its 15 long distance routes, Secretary Norman Y. Mineta said.
“Every year, Amtrak squanders millions to run long distance trains in a way that no longer makes sense given today’s travel environment,” Mineta said.
He also said the movement for reform is growing, noting that even Amtrak now “admits that the railroad must be reformed to survive.”
Mineta cited the Alaska Railroad as an example of a company that has developed a successful approach to long distance trains. The Alaska Railroad is profitable because it has found a way to meet the needs of local travelers while bringing cruise ship passengers inland, he said.
“There is no reason that Amtrak couldn’t embrace the same entrepreneurial spirit and find a better business model for running long distance trains if it chooses,” Mineta said.