(Bloomberg News circulated the following article by Chris Dolmetsch on September 13.)
NEWARK, N.J. — New Jersey Governor Jon Corzine said the state may consider taking over the 55-mile section of Amtrak’s Northeast Corridor that runs between New York and Trenton, New Jersey, to reduce delays.
New Jersey Transit passengers have faced numerous stoppages this year from power failures and disabled trains along the 456- mile (734-kilometer) Northeast Corridor that runs between Boston and Washington, including a May 25 incident that stranded almost 400,000 commuters from Maryland to New York.
“It is an idea that is worthy of deep exploration,” Corzine, a Democrat, told reporters today.
The governor’s comments came after New Jersey Transit’s board of directors approved a new agreement with Amtrak that allows the commuter railroad to keep operating trains on the corridor for the next six years.
New Jersey Transit has contracted with Amtrak since 1983 to operate transit on the Northeast Corridor, which is used in some way by about 100,000 commuters — or about 80 percent of the state railroad’s train passengers — daily.
New Jersey Transit Executive Director George Warrington said taking over the state’s portion of the Northeast Corridor is one of the options that Corzine and transportation officials are considering to help alleviate service interruptions.
Frustrations
The national passenger railroad has lost billions of dollars since it was founded in 1971 after Union Pacific and other freight railroads dropped their money-losing passenger operations, and the U.S. House voted in June to cut Amtrak’s federal subsidy by 18 percent.
“The governor has a deep appreciation for some of the frustrations we all have about the condition of the Northeast Corridor, but more importantly of the historic paralysis in Washington around effectively funding and creating the right kind of model that puts the right level of attention financially and managerially on the northeast corridor,” Warrington said.
Amtrak has been “feebled” by a lack of funding, Corzine said. The May 25 incident, which is still under investigation, is a direct result of a failure to maintain the 74-year-old electrical system that powers the trains, the governor said.
New Rail Cars
“That’s a problem when we don’t invest in our infrastructure,” Corzine said. “We have to do that if we want to have reliable service that gives the public confidence that they can use the transportation system effectively. If there is more of this without the investment, our economy will suffer and the Northeast will suffer.”
There is some immediate relief on hand for New Jersey Transit riders as the first of its new double-decker railroad cars, which the agency says should hope relieve congestion and speed travel into New York, should be in service by mid-December, Warrington said.
Under the new six-year agreement, New Jersey Transit will pay Amtrak $34.4 million annually for the next three years, with the remaining payments to be negotiated based on service levels and actual costs. The agency paid Amtrak about $34 million in the fiscal year ending June 30.
Improving Service
New Jersey Transit will also pay Amtrak about $22 million a year for the costs to power its trains, or about 32 percent of the U.S. national passenger’s railroad’s costs for electricity on the Northeast Corridor. The state agency had previously paid about $15 million to $20 million annually for power.
The two railroads also agreed to work together to improve service on the corridor, including establishing a committee to examine power issues and building a new control center in Pennsylvania Station in Manhattan to replace one that currently dispatches Amtrak and New Jersey Transit trains.
Each will contribute $260 million over the next six years to a decade-old joint capital-improvement program.
The agreement also frees the agency from liabilities and losses in claims involving Amtrak train incidents such as accidents and derailments, which will help reduce insurance costs, Warrington said. Amtrak had previously demanded that New Jersey Transit share responsibility in such incidents.
“It should save us some money and should be a big help because we won’t have to assume liability for what happens on their trains,” said David Peter Allan, chairman of the Lackawanna Coalition, a railroad advocacy group.