Quotulatiousness

April 5, 2018

Amtrak decides to abandon one of its few profitable sidelines

Filed under: Business, Railways, USA — Tags: , , — Nicholas @ 03:00

Kevin Keefe discusses the recent Amtrak announcement that it will be discontinuing support for private railcar movements on Amtrak trains:

Amtrak’s announcement last week that it intends to shut down most of its haulage of private cars and its support for special trains was a stunner. Within hours, hundreds or perhaps thousands of people working in the heritage end of railroading scrambled to react.

It hasn’t taken long for a credible protest movement to take root. An official objection was made to Amtrak on behalf of the American Association of Private Car Owners, and a similar move is expected from the Rail Passenger Car Alliance. Railfan social media has erupted with protest exhortations. As of this morning, more than 7,000 people have signed a petition at change.org.

Meanwhile, in this moment of limbo, a number of plans have been put on hold. The Fort Wayne Railroad Historical Society has postponed ticket sales for its September 15-16 “Joliet Rocket” trips on Chicago’s Metra, featuring Nickel Plate 2-8-4 No. 765. The operators of West Virginia’s famed New River Train fall foliage trips — a 51-year tradition — are faced with closing up shop. Like all private-car owners, the Washington, D.C., Chapter, NRHS, might wonder when its heavyweight Pullman Dover Harbor might once again turn a wheel. Countless other organizations face the same dilemma.

In announcing the new policy, Amtrak President and CEO Richard Anderson cited three main reasons why the company feels this move is necessary: operational distractions from providing for special moves, a failure to capture “fully allocated profit margins,” and delays to paying customers on scheduled trains.

One thing Anderson didn’t mention in his announcement, but should have: the subsidy the American taxpayer gives to prop up his corporation every year. In 2017, that largesse amounted to $1.495 billion.

Anderson’s complaints about the effects of special moves are specious. Amtrak has plenty of “operational distractions,” but most of them have little to do with factors related to private cars or special trains, the grateful operators of which strive mightily to make their moves seamless. As for delays, why isn’t Anderson pointing the finger at the real culprits, some of their Class I partners for whom delaying a passenger train is second nature? As for relative profitability, if it’s true that the “special trains” business operates in the black, how can Amtrak walk away from it? Where else does Amtrak make a profit?

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