Amtrak, which lost a record $1.2 billion last year, is
seeking an additional $8.2 billion in government subsidies over
the next five years to repair equipment and stabilize the railroad
that came within days of shutting down last year. The subsidies
are needed regardless of any changes the government may make, Amtrak President David Gunn told the panel.
The Transportation Department in less than two months will
submit its reform proposal to Congress, Jackson said. The plan
would renew a law expiring Sept. 30 that sets a framework for how
Amtrak operates. The department hasn’t determined how large the
government’s rail subsidy will be under the plan, spokesman
Leonardo Alcivar said.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
The plan would create a federal-state compact to operate the
Northeast corridor, which Amtrak owns, under a 99-year lease from
the Transportation Department, Jackson said.
The proposal would create two organizations from Amtrak: NEC
Infrastructure Co., a private corporation, would maintain the
Northeast corridor. Amtrak Operations, a private company, would
operate long-distance trains and other passenger service.
Amtrak Operations initially would have “monopoly status” in
providing rail service, Jackson said. Later, it would have to
compete for contracts.
Bloomberg News
