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This testimony discusses the future of intercity passenger rail. Intercity passenger rail in the United States is at a critical juncture. It has become increasingly clear that the current approach to intercity passenger rail is not likely sustainable. Given Amtrak's worsening financial condition and opportunities for intercity passenger rail to play a larger role in our nation s transportation system, there is growing agreement that the mission, funding, and structure of the current approach to providing intercity passenger rail needs to be changed. There is less agreement on how they should be changed. Both longer-term fiscal pressures and the new commitments undertaken after September 11th sharpen the need to look at competing claims and new priorities. Stated differently, there is a need to consider what is the proper role of the federal government in intercity passenger rail.
Intercity Passenger Rail: Congress Faces Critical Decisions in Developing a National Policy
The National Railroad Passenger Corporation (Amtrak) is the nation's intercity passenger rail operator. In recent years, facing the continuing deterioration of its financial condition and its attempt to eliminate its need for federal operating assistance by December 2002, Amtrak undertook a number of actions intended to improve its financial condition. Among these actions were changes in its routes and services. Starting in 1995, Amtrak began reducing service and eliminating routes to reduce costs, although this strategy was ultimately unsuccessful. In December 1999, Amtrak's board of directors shifted its route and service strategy toward planning to implement new routes and expand services (called the Network Growth Strategy) on the freight railroad tracks over which Amtrak operates. It estimated that this expansion, involving 15 routes, would yield about $66 million in net financial benefits through fiscal year 2002, primarily from expanding its mail and express business, and help Amtrak move toward operational self-sufficiency.