WASHINGTON, D.C. — Even as federal scrutiny again puts in doubt the future of Amtrak – and the money-losing Texas Eagle route – state and local officials are intensifying their efforts to maintain the troubled rail service’s presence in Texas, according to the Fort Worth Star-Telegram.
Sen. Kay Bailey Hutchison, R-Texas, is leading an effort to stop a proposal to force Amtrak to come up with a plan for its own liquidation as it goes through a congressionally imposed system designed to force the train service to be self-sufficient.
Fort Worth Mayor Kenneth Barr said Friday that he supports an expansion of Amtrak service in Texas, even as the federal government explores cuts and the possibility of turning over the train system to states and private companies.
“Giving up on Amtrak is not the answer and breaking up the company would be very shortsighted,” Barr said. “We subsidize highways and air service. It seems to me we could continue to subsidize rail service, too.”
Friday, the Amtrak Reform Council began working on a restructuring plan for the company, which celebrated its 30th anniversary this year.
The council concluded in early November that the rail line will not be able to operate without federal subsidies after Dec. 2, 2002. Based on that finding, Amtrak is required to draft a restructuring plan and the liquidation analysis for Congress to consider next year.
But Hutchison and other lawmakers say they are concerned that issuing a liquidation report would scare off Amtrak creditors and cripple the rail line. Both reports are required by prior legislation.
As part of its query, the reform council is exploring nine alternatives to preserving the structure of the national rail line, including the option of dividing the system among states and private companies. The panel will issue a recommendation by Feb. 7.
Amtrak ridership grew 4 percent in the fiscal year ending Sept. 30 compared with the previous year and has been flat since then. That’s a positive sign, supporters say, because it comes at a time when airlines are seeing a decline of 20 percent to 25 percent in passengers.
But the controversy over Amtrak revives the issue of the money-losing long-distance trains, such as the Texas Eagle. Congress is insisting that lines be part of the system at the same time that lawmakers demand the rail line wean itself from subsidies.
Fort Worth almost lost Amtrak service in 1997, when Congress tried to kill the Texas Eagle route from San Antonio to Chicago. In 2000, officials reversed course, expanding the line from four times a week to daily service.
The Texas Eagle, which stretches from Chicago to San Antonio and stops in Fort Worth, has gained ridership but continues to lose money.