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60 Massachusetts Ave. NE Washington, DC 20002 DC Tel. 202-906-3000 Fax 202-906-3306 |
Type: Government-owned
On the web:
http://www.amtrak.com
National Railroad Passenger Corporation, better known as Amtrak, has been riding the rails for more than 40 years. Amtrak is the US' intercity passenger rail provider and its only high-speed rail operator. More than 28 million passengers travel on Amtrak every year on approximately 300 daily trains. It connects 46 states, Washington, DC, and three provinces in Canada. Its network consists of about 21,000 route miles of track, most of which is owned by freight railroads. Amtrak also operates commuter rail systems on behalf of several states and transit agencies. Owned by the US government through the US Department of Transportation, Amtrak depends on subsidies from the federal government to operate.
Officers:
Chairman: Thomas C. Carper
VP Strategic Partnerships and Business Development: Anne Witt
VP Marketing and Product Management: Emmett H. Fremaux
Competitors:
Greyhound
Southwest Airlines
US Airways
Gale Directory of Company Histories:
National Railroad Passenger Corporation |
Founded: 1971
NAIC: 482110 Rail Transportation
The National Railroad Passenger Corporation, better known as Amtrak, is the United States' national rail passenger service, providing train transportation between major cities as well as commuter service and delivery of mail and express freight. A private corporation, Amtrak is almost wholly owned by the U.S. Department of Transportation.
On May 1, 1971, the first passenger trains operated by the National Railroad Passenger Corporation pulled out of stations around the country, beginning what was depicted as a two-year federal undertaking to revive (and save) long-distance, intercity rail passenger service in the United States.
Congress had created the company the previous year with the passage of the Railroad Passenger Service Act. The Act established a private company, incorporated in the District of Columbia. Most of the new company's stock was owned by the Department of Transportation, and it was governed by a board of directors made up of the Secretary of Transportation, the head of the corporation, and 11 other members, the majority appointed by the president. During its first year of existence, the corporation was known as Railpax. After it began operations, the nickname was changed to Amtrak, a contraction of the words America and track.
Amtrak was charged with accomplishing three goals, described in the Amtrak Source Book as: "To operate rail passenger service on a for-profit basis; to use innovative operating and marketing concepts to fully develop the potential of modern railway passenger service to meet intercity transportation needs; and to provide a modern, efficient intercity rail passenger service." Congress authorized grants of $40 million for operations and loan guarantees of $100 million for new equipment. Direct funding was to last only two years, by which time the corporation was to be completely self-supporting.
By the time Congress created Amtrak, intercity rail passenger service in the United States had been in a 20-year decline. Until the 1950s, railroads were the only way to travel long distances. But during that decade, the federal government began financing the interstate highway system, a $41 billion, 16-year project, and, as jet airplanes were introduced, significantly increased its support for the construction and improvement of airports.
Airplanes, personal automobiles, and buses began competing with the country's railroads for long-distance travel. The railroads responded to the competition with new equipment on their prestige long-distance routes, replacing steam locomotives with diesel engines, and introducing lightweight stainless steel passenger cars with air-conditioning and double glazed windows. But as the number of passengers continued to drop, the rail companies had little incentive to make major capital investments to upgrade their tracks, signaling, stations, and maintenance facilities. Why, they thought, should their profitable freight business subsidize a means of intercity transportation that was competing with systems receiving federal and state tax dollars? By 1958, rail service accounted for just 4 percent of intercity travel.
The decline in rail passenger service and the deterioration of passenger facilities continued during the 1960s. By the end of the decade, the number of passenger trains had dropped to 500, down from more than 20,000 some 40 years earlier, and only 12,000 passenger cars remained in service. Losses from passenger service operations in 1970 came to more than $1.8 billion dollars in 1997 dollars. Most of the loss was on long-distance, intercity travel. Commuter and suburban lines obviously were less affected by airlines and, at least during the 1960s, lost little ridership to buses and private cars. Many of the railroad companies filed applications to get out of the intercity service on most or all of their routes. Among the most critical was the proposal by Penn Central (the merged Pennsylvania Railroad and New York Central Railroad) to eliminate all its passenger service in the Northeast and Midwest.
The Railroad Passenger Service Act allowed the railroad companies to transfer their money-losing passenger operations to Amtrak in exchange for either a tax write-off or Amtrak stock. Only three lines, the Denver & Rio Grande Western, the Rock Island, and the Southern, did not join Amtrak, opting to continue their own passenger service.
The basic network of routes for the new corporation was developed by the Transportation Department with assistance from the Interstate Commerce Commission, the railroad unions, 15 railroad companies, 43 states, some 3,000 members of the public, and numerous U.S. Senators and Representatives. Factors considered in selecting the routes included existing routes, cost, ridership potential, size of the terminal cities (had to have a population of at least one million), and the condition of the tracks and facilities (no funds were allocated for improving these).
Between January and May 1971, as the new corporation got itself organized, a major argument developed regarding the company's objective: was it to reintroduce the traditional, and well-known, long-distance routes of the past, such as the "Empire Builder," "San Francisco Zephyr," and "Super Chief," or should it concentrate on introducing high speed (150 mph) rail corridors? Those two visions of passenger service in the United States would haunt Amtrak for decades.
Although it operated in 43 states over 24,000 miles of track, the enterprise Amtrak began managing on May 1, 1971 was hardly a national transportation system. Essentially, Amtrak was a travel broker. It operated 119 passenger trains, a multicolored assortment of some 1,200 cars--coaches, diners, sleepers, and observation cars--with an average age of 20 years. The individual railroads donated some cars to Amtrak but continued to own the stations, terminals, yards, locomotives, and maintenance facilities, and employed all the people who worked on the passenger trains and in the stations and yards. In its first year, Amtrak leased the crews and equipment, along with the seat reservation, booking, communication, and dispatching systems from the various freight lines. In 1972, Amtrak began buying the diesel locomotives from the railroads and initiated a program of rebuilding and refurbishing the engines to improve on-time performance.
The tracks Amtrak's "rainbow" trains ran on also were owned by the freight companies. For access to the rights of way, which was guaranteed by the legislation, Amtrak paid the freight companies a rental charge. That charge was determined by a formula established in the federal statute. The legislation also gave Amtrak trains priority dispatching over freight trains, but did not address the issue of liability in cases of injuries. Despite the logistical problems and uncomfortable rolling stock, Amtrak was able to keep the passengers it inherited in 1971, and during its first two years even increased ridership.
The creation of Amtrak seemed to generate three conclusions. Some people believed the new entity was really expected to revive intercity rail traffic. The more skeptical seemed to think that this was a last gasp effort and that once the equipment finally gave out, that would be the end of it. Others within the industry and among the passengers saw it as a ruse to eliminate routes in sparsely populated areas while keeping rail service along corridors between major cities in the Northeast and on the West Coast.
None of these occurred after Amtrak's first two years because OPEC, the cartel of oil-producing countries, cut back the production of oil. The resulting energy crunch in 1973 and 1974 caused the price of gasoline (and airline tickets) to increase and lines at gas stations to grow long. Many Americans (and politicians) increased their support of alternative means of transportation, including rail passenger service. Congress approved funding for fiscal years 1972 and 1973 totaling $179.1 million in grants and $100 million in guaranteed loans. In 1973, Amtrak began ordering new equipment.
The new silver trains with the red and blue Amtrak logo attracted more riders and marketing became easier. A centralized and computerized reservations system also helped improve service. During the decade, the company purchased 600 Amfleet and Amfleet II cars and 284 Superliners, including locomotives, coaches, lounges, sleepers, and dining facilities.
Amtrak also began to take control of yard and station facilities, reservation offices, and all personnel except for train and engine crews. In 1972, Amtrak employed about 1,500 administrative and clerical workers. Within two years, as the company assumed responsibility for more of the passenger service operations, employment climbed to 8,500.
As Amtrak was placing its equipment orders, the major freight lines in the Northeast were going bankrupt. As creditors, shareholders, railroad unions, and other railroads (who shipped to and from the East) cried for some action, the federal government took a step that would have a huge impact on Amtrak. The Regional Rail Reorganization Act of 1973 created Conrail (Consolidated Rail Corporation), a federally supported freight company made up of seven bankrupt railroads operating in the Northeast. The legislation also supported funding for preliminary engineering work to improve the Northeast Corridor to cut passenger travel times between Boston, New York, and Washington, D.C.
Three years later, following the passage of the Railroad Revitalization and Regulatory Reform Act in 1976, Amtrak acquired 621 miles of right-of way from Conrail. Most of the routes, about 450 miles, were in the Northeast Corridor, from Washington, D.C. to Boston. The acquisition also included lines from Philadelphia to Harrisburg, Pennsylvania; from New Haven, Connecticut, to Springfield, Massachusetts; and from Porter, Indiana, to Kalamazoo, Michigan. For a switch, now freight trains would have to pay Amtrak to use these rails. As part of the legislation, Congress authorized $1.9 billion over five years to rebuild and improve the tracks and facilities in the NEC.
Along with the tracks, Amtrak also came into possession of rail yards, maintenance facilities, and all the stations along their new routes. The real estate included Pennsylvania Station in New York City and 30th Street Station in Philadelphia, along with some 100 smaller station properties, and half interests in Chicago's Union Station and in Washington, D.C.'s Union Station. With these acquisitions, Amtrak employment nearly doubled, to 16,500, as the company assumed new operations and maintenance responsibilities.
The capital investments made to reduce travel time in the Northeast Corridor by rebuilding tracks and introducing new equipment received most of the attention during the late 1970s. But development was begun on another high-speed corridor, between Los Angeles and San Diego, and other corridors were being studied for high-speed potential.
During the last half of the 1970s, Congress changed the way it financed Amtrak's capital improvements. Instead of loan guarantees, which had mounted to $900 million between 1971 and 1975, or a designated source of income as was provided for highways and airports, Amtrak began receiving direct capital grants, which had to be requested and approved annually, making it difficult to plan and finance capital investments. Amtrak continued to receive separate annual operating grants.
The company's annual revenue during the decade averaged $252 million, and represented less than 40 percent of its operating expenditures. The growing deficits led the Carter Administration to push for more efficient operations and cuts in costs. Proposals to eliminate routes as a means of reducing costs generally went nowhere as Senators and Representatives fought to keep trains running in their states, whether the routes were profitable or not. In fact, by 1977, the number of miles in the Amtrak system had grown to 27,000. Finally, under restructuring in 1979, several routes were dropped as the basic network was cut to 24,000 miles.
During the 1980s, Amtrak continued to move from supervising to operating the nation's passenger rail system. Early in the decade, Amtrak installed its new Arrow reservation system, with faster computers, and acquired the last non-Amtrak intercity passenger train, the Rio Grande Zephyr, from the Denver and Rio Grande Western.
In 1983, Amtrak, for the first time, directly employed engineers, conductors, and their assistants, beginning on Northeast Corridor trains. The takeover of the operating crews continued for the next several years, until, by 1987, Amtrak employed most of the crews operating passenger trains around the country. After 1982, under Amtrak's bargaining agreements, crews were paid based on a 40-hour work week, not on mileage and other factors as had been the case with the freight lines.
The company also expanded its position in the commuter train business, taking over the commuter trains in the northeast previously operated by Conrail. The company set up a wholly-owned subsidiary, Amtrak Commuter Services Corporation, to oversee its commuter operations.
Amtrak's partnerships with various states improved passenger service in their jurisdictions. Under Section 403(b) of the legislation that established it, Amtrak could operate intercity trains or routes funded by states. California, for example, paid for more trains between Los Angeles and San Diego, in the San Joaquin Valley, and, eventually, between San Jose and Sacramento. New York was one of the first to take advantage of Section 403(b), improving passenger service for the New York-Albany-Buffalo corridor.
But the core route and services faced financial cuts as the Reagan Administration convinced Congress to significantly reduce both the operating and capital grants each year. As President Reagan told an audience, "On the New York to Chicago train, it would cost the taxpayer less for the government to pass out free plane tickets."
Most historians agree that things would have been even worse for Amtrak except for Graham Claytor, a lawyer and railroad executive and the new president and CEO of Amtrak. According to Stephen Goddard, "The grandfatherly attorney left his comfortable office ... to give Amtrak what it needed--credibility before Congress, in whose hands the troubled railroad would rise or fall." Yet even as the cuts were being made, when Reagan fired the striking federal air traffic controllers, people turned to intercity trains.
In 1981, Congress told Amtrak to make better use of all its resources to minimize federal support. In addition to revenues from the commuter and 403(b) trains, by 1981, Amtrak's real estate revenues were generating about $9 million a year. In 1984 the company acquired the remaining one-half interest in Chicago Union Station.
To help increase its assets, the company established a corporate development department. One of its ventures was to lease the NEC right-of-way to telecommunication companies for installing fiber optics communications systems. MCI Communications was the first company to enter into such a lease, with MCI providing Amtrak with specific fibers and communication circuits as well as with cash. Amtrak used those high capacity circuits for their own network and marketed and leased them to large telecommunication users. Amtrak also turned to mail and express freight service for additional income.
In 1985, Amtrak's supporters argued that shutting down Amtrak completely would result in costly drops in productivity due to traffic jams and crowded airports in the major corridors, especially in the northeast. The prospect of more cars and planes (and the resulting pollution) effectively dampened enthusiasm for eliminating all support for Amtrak, at least for a while.
In 1986, Amtrak became the dominant carrier between New York and Washington, with 38 percent of the total air-rail market. In 1989, the company began another period of capital investment, as Amtrak purchased 104 short-distance passenger cars to alleviate crowding on routes in the Midwest and in California's San Joaquin Valley.
By the end of the decade, Amtrak operations were bringing in more than $1.2 billion in revenues. But with operating expenses in fiscal 1989 of nearly $2 billion, it continued to have an operating loss larger than the $554 million operating grant it received from the federal government. The general capital grant fell from $221 million in fiscal year 1981 to $2 million in fiscal 1986 then averaged $34 million for the rest of the decade.
In 1994, Congress and the Clinton Administration demanded that Amtrak operations become self-sufficient by 2002. To accomplish this, the company, under new CEO Thomas Downs, adopted a strategic and business plan for the period 1995 to 2000. As part of the plan, Amtrak decentralized itself into three business units to increase accountability and responsiveness: Northeast Corridor, covering services from Virginia to New England; Amtrak West, which operated state-supported corridor trains and the long-distance Coast Starlight on the West Coast; and Amtrak Intercity, responsible for most of the long-distance routes as well as corridor trains in the Midwest. The company also began raising fares, cutting routes and service, and implementing cost reduction programs for its operations.
However, Amtrak needed new rolling stock to replace old equipment, to achieve better travel times, and to meet the requests from states for new intrastate rail services. Through 1990, Amtrak had spent $1.6 billion for cars and locomotives and the capital investment continued during the decade with the delivery of new diesel locomotives, 195 bi-level Superliners, and, in 1996, 50 Viewliners, the first single-level sleeping cars made in the United States in 40 years. In California, 14 new dual-level dining cars were introduced on the state-supported routes, and in Washington, three pendular "tilt" Talgo trains were ordered by Amtrak and the Washington Department of Transportation for delivery in 1998. Trains able to travel 150 miles an hour were added to service the Northeast Corridor beginning in 1999.
Although revenues increased to $1.6 billion in fiscal year 1996, debt and capital lease obligations were almost $1 billion. By 1997, Amtrak was in danger of going bankrupt (in December of that year Downs resigned as CEO and a search was underway for his successor). Congress debated the company's request to designate one-half cent of the Interstate Highway Trust for capital expenditures, but instead passed a tax rebate package of $2.3 billion for Amtrak capital spending over two years and adopted a package of reforms changing various labor requirements, allowing Amtrak to alter the basic system of routes inherited in 1971, setting a cap on liability costs, and establishing a new Reform Board. Funding for the Department of Transportation for fiscal year 1998 included $344 million for Amtrak operations and $250 million for Northeast Corridor capital. It also included $23 billion for highways, $9 billion for aviation, and $4 billion for transit.
Despite the shakeup at the top and numerous skeptics, Amtrak survived. The company continued its efforts to improve service, spending $26.6 million to overhaul 212 passenger cars. Buttressed by the Taxpayer Relief Act of 1997 Amtrak launched a $360 million capital improvement program. They spent $100 million for eight new five-car train sets for San Diego service, purchased eight locomotives, 64 carriers, 43 coaches, several improved refrigerator cars, and numerous expensive equipment updates. New lines and improved travel times resulted in several cities. In December 1998 Amtrak agreed to purchase 44 RoadRailer Mailvans. Acting President and CEO George D. Warrington cited increasing rail revenues--which had been rising 10 percent each year--as reason for the investment, which he stated could only bolster their bottom line.
In January 1999 the Department of Transportation released a report accusing Amtrak of underreporting its losses, stating specifically that the 1998 year's loss was not the reported $95 million, but $854 million. A brief flap followed, but some in Congress pointed out that it was difficult for Amtrak to succeed when expectations for them constantly changed. Warrington continued to assemble a new management team, envisioning an Amtrak that featured high speed rail corridors across the country and high-quality service. Statistics backed up Warrington's assertions that Amtrak continued to improve--between 1998 and 1999 the percent of riders was the highest it had been in a decade, on-time arrival was the highest it had been in 13 years, and passenger revenues had topped $1 billion for the first time.
In March 2000 Amtrak introduced the Acela Regional passenger service, creating the long-awaited electrification of the Northeast Corridor linking Boston, New York, and Washington, D.C. The result was a reduction in travel time from Boston and New York by up to 90 minutes. Further improvements were unveiled in November 2000, after months of delay. The Acela Express, the nation's first high-speed rail system began travelling the Northwest Corridor's tracks at up to 150 miles per hour, reducing a Boston to New York trip to 3 hours and 15 minutes, a New York to Washington, D.C. trip to 2 hours and 28 minutes. The Acela beat its projected profits by 12 percent in the first quarter of 2001 and launched Amtrak into its most profitable year yet. The success prompted Congress to reconsider a controversial bill to allow Amtrak to issue bonds to raise $12 million dollars for the high-speed rail system.
Rail use rose significantly due to security concerns in the wake of the terrorist attacks of September 11, 2001, and Congress allocated over a billion dollars to improve Amtrak's security. Yet Congress had legislated a time bomb for Amtrak in 1997 that was set to go off by December 2002. Amtrak was to attain self-sufficiency by that December or prepare for liquidation. By December 2001, CEO Warrington was told by the federally appointed Amtrak Reform Council that he would have to prepare a liquidation plan. Amtrak was absolved of the responsibility to prepare its own liquidation plan by a defense act signed into law by President Bush in early 2002, but was told they still needed to attain self-sufficiency. Numerous ideas were floated by congressional agencies, including breaking Amtrak up into separate privatized industries.
In July 2003 two competing funding plans warred for prominence. The Bush administration announced that it would allocate $90 million, while a house committee approved a bill that would fund the company for $6 billion over the next three years. Congressional debate continued, with Senator John McCain and the Bush administration arguing for breaking Amtrak up and selling it. They faced stiff opposition from both Democrats and other Republican congressional leaders. By February 2004 the Amtrak supporters had won, and Amtrak was approved for $2 billion a year for six years.
Amtrak had won at least a reprieve. By the fall of 2004 it looked as though the company would remain intact, though it still faced significant hurdles. Throughout its history it was funded at a rate tens of times lower than the rate at which Congress has funded highways and aviation, and continued to own little of its own track. Still, with the new high-speed trains, rising passenger rates, and improved funding, the future looked, if not rosy, then far more promising than it had in many years.
Principal Competitors
Greyhound Lines Inc.
Further Reading
Bradley, Rodger, Amtrak: The U.S. National Railroad Passenger Corporation, Dorset, England: Blandford Press, 1985.
DePalma, Anthony, "Amtrak Tries to Learn How to Run a Railroad," International Herald Tribune, February 4, 2002, p. 2.
Goddard, Stephen B., Getting There: The Epic Struggle Between Road and Rail in the American Century, New York: Basic Books, 1994.
Hosansky, David, "Struggling Amtrak Seeks Share of Federal Highway Money," Congressional Quarterly Weekly Report, March 29, 1997, p. 737.
Johnson, Bob, "States Show Amtrak the Way," Trains Magazine, July 1997, p. 36.
Miller, William H, "Amtrak's Unforgiving Timetable," Chief Executive (U.S.), December 2001 p. 29.
"Perspective--Derailing Amtrak," Investors Business Daily, November 6, 1997.
Vantuono, William C., "Blue-Ribbon Panel Spells the Blues for Passenger Rail," Railway Age, August 1997, p. 161.
Wilner, Frank N., "Amtrak at 25: The Railroad That Just Won't Quit," Railway Age, May 1996, p. 39.
— Ellen D. Wernick; Updated by Howard A. Jones
Barron's Business Dictionary:
Amtrak |
| Ampersand, Amount At Risk, Amount | |
| Analog, Analysis, Analysis of Variance (ANOVA) |
Gale Encyclopedia of US History:
Amtrak |
On 1 May 1971, the U.S. government made Amtrak responsible for managing and operating all national passenger train service in the United States. Its name was derived from the words "America" and "track." Amtrak was created as a quasi-public corporation—a unique blend of government funding and oversight with private management and accountability.
By the late 1960s, a precipitous fifty-year decline in the quantity, quality, and profitability of American passenger rail service prompted high-level government debate over the need for some measure of public assistance. Between 1929 and 1966, passenger train routes—measured in miles—declined by nearly two-thirds. Technological improvements in the automobile, increased government funding for highway construction, and the growth of the commercial airline industry all contributed to the decline. Poor track conditions, outdated equipment, and unreliable service made train travel far less desirable than these other forms of transport. By 1967, the industry's first year without U.S. mail service business, the annual loss for the combined passenger train industry was $460 million. After that year, many companies considered terminating their passenger routes.
After two years of negotiations aimed at averting the loss of the entire passenger rail system, President Richard Nixon signed the Railpax bill on 30 October 1970. By April 1971, the entity's name was changed to Amtrak, and twenty of the twenty-six eligible private rail companies had signed the contract to join the new corporation. Despite Amtrak's efforts to consolidate passenger routes into a more manageable, efficient structure, the initial mandate from the Department of Transportation required the continuation of many marginal routes. It would be eight years until the corporation was given more flexibility in the design of its route structure. There were other obstacles as well. The initial federal grant of $40 million was less than 10 percent of the annual losses sustained by the private companies in their last pre-Amtrak years and not nearly enough to begin a process of rebuilding the industry. The new corporation was also required to operate under the existing labor contracts of the member companies, and management had little flexibility in reallocating workers in the new operational structure. Amtrak was also faced with the nearly impossible task of reversing the long-term public ambivalence to train travel while being able to provide only old, uncomfortable, and unreliable equipment.
While total passenger volume increased from 17 million in 1972 to 23 million by 2002, there had been no net increase in ridership since 1988. Yet during this stagnant decade of Amtrak passenger growth, commuter train passenger volume jumped from 15.4 million to 58.2 million. This disparity indicated that Americans valued rail travel as a means to move to and from their occupations, or to move from suburb and countryside to large cities for shopping or entertainment, but as a means of transporting people from city to city, Amtrak faced stronger competition from the automobile and the airplane than it did in 1971.
Amtrak's most successful sector was the Northeast Corridor, the stretch of rails to and from Washington, New York, and Boston, and accounted for two-thirds of Amtrak's ridership and revenues. Ridership in the corridor went up after the introduction in 2001 of the Acela Express trains, which could achieve a top speed of 150 miles per hour, and after the terrorist attacks in New York and Washington on 11 September 2001. But the 1997 Amtrak Reform and Accountability Act set 2 December 2002 as an absolute deadline for Amtrak to reach operational self-sufficiency and the loss of federal support, and by the summer of that year, the Amtrak Reform Council was considering breaking off the Northeast Corridor as an independent entity and taking bids from private companies to finance long-distance trains elsewhere in the system.
Bibliography
Bradley, Roger. Amtrak. Poole, U.K.: Blandford Press, 1985.
Edmondson, Harold A., ed. Journey to Amtrak: The Year History Rode the Passenger Train. Milwaukee, Wis.: Kalmbach, 1972.
Nice, David C. Amtrak: The History and Politics of a National Railroad. Boulder, Colo.: Lynne Rienner, 1998.
Wilner, Frank. The Amtrak Story. Omaha, Neb.: Simmons-Boardman, 1999.
Zimmerman, Karl. Amtrak at Milepost 10. Park Forest, Ill.: PTJ, 1981.
—Patrick Amato
Columbia Encyclopedia:
Amtrak |
Wikipedia on Answers.com:
Amtrak |
| National Railroad Passenger Corporation Amtrak |
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Map of the Amtrak system (2007) |
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| Reporting mark | AMTK |
| Locale | Contiguous United States (except Wyoming and South Dakota), as well as Ontario, British Columbia, and Quebec |
| Dates of operation | 1971–present |
| Predecessor | Most privately operated passenger rail systems prior to 1970. |
| Track gauge | 4 ft 8 1⁄2 in (1,435 mm) (standard gauge) |
| Electrification | 25Hz AC Northeast Corridor (Washington, D.C. – New Haven) Philadelphia to Harrisburg Main Line (Keystone Corridor) 60Hz AC Northeast Corridor (New Haven – Boston) |
| Length | routes: 21,000 miles (34,000 km) track: 730 miles (1,170 km) |
| Headquarters | Union Station Washington, D.C. |
| Website | Amtrak.com |
The National Railroad Passenger Corporation, doing business as Amtrak (reporting mark AMTK), is a government-owned corporation[1] that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track".[2] It is headquartered at Union Station in Washington, D.C.[3]
All of Amtrak's preferred stock is owned by the U.S. federal government. The members of its board of directors are appointed by the President of the United States and are subject to confirmation by the United States Senate. Common stock was issued in 1971 to railroads that contributed capital and equipment; these shares convey almost no benefits[4] but their current holders[5] declined a 2002 buy-out offer by Amtrak.
Amtrak employs nearly 19,000 people. It operates passenger service on 21,000 miles (34,000 km) of track primarily owned by freight railroads connecting 500 destinations in 46 states[6] and three Canadian provinces. In fiscal year 2011, Amtrak served 30.2 million passengers, representing nine straight years of record ridership.[6][7]
Amtrak's origins are traceable to the sustained decline of private passenger rail services in the United States from about 1920 to 1970. In 1971, in response to the decline, Congress and President Richard Nixon created Amtrak.[8] The Nixon administration secretly agreed with some railroads that Amtrak would be shut down after two years. After Fortune magazine exposed the manufactured mismanagement in 1974, Louis W. Menk, chairman of the Burlington Northern Railroad remarked that the story was undermining the scheme to dismantle Amtrak.[9] Though for its entire existence the company has been subjected to political cross-winds and insufficient capital resources, including owned railway, Amtrak's ridership has maintained consistent growth.
From the middle 19th century until approximately 1920, nearly all intercity travelers in the United States moved by rail.[10] The rails and the trains were owned and operated by private, for-profit organizations. Approximately 65,000 railroad passenger cars operated in 1929.[11]
For a long time after 1920, passenger rail's popularity diminished and there were a series of pullbacks and tentative recoveries. Rail passenger revenues declined dramatically between 1920 and 1934 because of the rise of the automobile,[10] but in the mid-1930s, railroads reignited popular imagination with service improvements and new, diesel-powered streamliners, such as the gleaming silver Pioneer Zephyr and Flying Yankee.[10] Even with the improvements, on a relative basis, traffic continued to decline, and by 1940 railroads held 67% of passenger-miles in the United States.[10] World War II broke the malaise. During the war, troop movements and restrictions on automobile fuel generated a sixfold increase in passenger traffic from the low point of the Depression.[10] After the war, railroads rejuvenated overworked and neglected fleets with fast and often luxurious streamliners—epitomized by the Super Chief and California Zephyr—which inspired the last major resurgence in passenger rail travel.
The postwar resurgence was short-lived. In 1946, there remained 45% fewer passenger trains than in 1929,[10] and the decline quickened despite railroad optimism. Passengers disappeared and so did trains. Few trains generated profits; most produced losses. Broad-based passenger rail deficits appeared as early as 1948[10] and by the mid-1950s railroads claimed aggregate annual losses on passenger services of more than $700 million (almost $5 billion in 2005 dollars using CPI).[11][12][13] By 1965, only 10,000 rail passenger cars were in operation, 85% fewer than in 1929.[11] Passenger service was provided on only 75,000 miles (120,000 km) of track, a stark decline.[11] The 1960s also saw the end of railway post office revenues, which had helped some of the remaining trains break even.[14]
The causes of the decline of passenger rail in the United States were complex. Until 1920, rail was the only practical form of intercity transport, but the industry was subject to government regulation and labor inflexibility.[15][16] By 1930, the railroad companies had constructed, with private funding, a vast and relatively efficient transportation network, but when the federal government began to construct the National Highway System, the railroads found themselves faced with unprecedented competition for passengers and freight with automobiles, buses, trucks, and aircraft, all of which were heavily subsidized by the government road and airport building programs. In 1916, the amount of track in the United States peaked at 254,251 miles (409,177 km), compared to 140,695 miles (226,427 km) in 2007 (although it remained the largest rail network of any country in the world).[17][18] Some routes had been built primarily to facilitate the sale of stock in the railroad companies; they were redundant from the beginning. These were the first to be abandoned as the railroads' financial positions deteriorated, and the rails were routinely removed to save money on taxes. Many rights of way were destroyed by being broken up and built over, but others remained the property of the railroad or were taken over by local or state authorities and turned into rail trails, which could be returned to rail service if necessary.
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The first interruption in passenger rail's vibrancy coincided with government intervention. From approximately 1910 to 1921, the federal government introduced a populist rate-setting scheme, followed by nationalization of the rail industry for World War I. Ample railroad profits were erased, growth of the rail system was reversed, and railroads massively underinvested in passenger rail facilities during this time.[16] Meanwhile, labor costs advanced, and with them passenger fares, which discouraged passenger traffic just as automobiles gained a foothold.[16]
The primary regulatory authority affecting railroads, beginning in the late 19th century, was the Interstate Commerce Commission (ICC). The ICC played a leading role in rate-setting and intervened in other ways detrimental to passenger rail. Increases in train speeds, which had been occurring since the 1930s, were hampered after the Naperville train disaster of 1946 and other crashes in New York in 1950. In 1947[19][20] the ICC issued an order requiring US railroads, by the end of 1951, to install automatic train-stop or train-control or cab-signalling wherever any trains would travel at 80 mph (130 km/h) or faster.[21] Such technology was not widely implemented outside the Northeast.,[22] effectively placing a speed limit in other areas, which is still in effect today, and why the 79 mph maximum passenger train speed is common in the United States. In 1958, the ICC was granted authority to allow or reject modifications and eliminations of passenger routes (train-offs).[23] Many routes required beneficial pruning, but the ICC delayed action by an average of eight months and when it did authorize modifications, the ICC insisted that unsuccessful routes be merged with profitable ones. Thus, fast, popular rail service was transformed into slow, unpopular service.[15] The ICC was even more critical of corporate mergers. Many combinations which railroads sought to complete were delayed for years and even decades, such as the merger of the New York Central Railroad and Pennsylvania Railroad, into what eventually became Penn Central, and the Delaware, Lackawanna and Western Railroad and Erie Railroad into the Erie Lackawanna Railway. By the time the ICC approved the mergers in the 1960s, disinvestments by the federal government, years of deteriorating equipment and station facilities and the flight of passengers to the air and car had taken their toll and the mergers were unsuccessful.
At the same time, railroads carried a substantial tax burden. A World War II–era excise tax of 15% on passenger rail travel survived until 1962.[24] Local governments, far from providing needed support to passenger rail, viewed rail infrastructure as a ready source for property tax revenues. In one extreme example, in 1959, the Great Northern Railway, which owned about a third of one percent (0.34%) of the land in Lincoln County, Montana, was assessed more than 91% of all school taxes in the county.[15] To this day, railroads are generally taxed at a higher rate than other industries, and the rates vary greatly from state to state.[25]
Railroads also were saddled with antiquated work rules and an inflexible relationship with trade unions. Work rules did not adapt to technological change.[15] Average train speeds doubled from 1919 to 1959, but unions resisted efforts to modify their existing 100 to 150 mile work days. As a result, railroaders' work days were roughly cut in half, from 5–7½ hours in 1919 down to 2½–3¾ hours in 1959. Labor rules also perpetuated positions that had been obviated by technology; for example, requirements that diesel locomotive have a "fireman" aboard at all times, even in switching yards.[citation needed] Between 1947 and 1957, passenger railroad financial efficiency dropped by 42% per mile.
Today, the burden of nascent railroad worker pensions, including those of freight railroad workers, are financed by Amtrak, regardless of whether such workers were ever employed by Amtrak or worked in passenger railroad service. In effect, Amtrak subsidizes the pensions of thousands of railroad workers who would otherwise not receive any pension.[26]
While passenger rail faced internal and governmental pressures, new challenges appeared that undermined the dominance of passenger rail: highways and commercial aviation. The passenger rail industry wilted as government backed these potent upstarts with billions of dollars in construction of highways and government-owned airports and the air traffic control system.
As cars became more attainable to most Americans, this newfound freedom and individualization of transit became the norm for most Americans because of the increased convenience. Government actively began to respond with funds from its treasury and later with fuel tax funds to build a non-profit network of roads not subject to property taxation[27] that rivaled and then surpassed the for-profit network that the railroads had built in previous generations with corporate capital and government land grants. All told between 1921 and 1955 governmental entities, using taxpayer money and in response to taxpayer demand, financed more than $93 billion worth of pavement, construction, and maintenance.[15]
In the 1950s, a second and more formidable threat appeared: affordable commercial aviation. Government at many levels supported aviation. Governmental entities built sprawling urban and suburban airports, funded construction of highways to provide access to the airports, and provided air traffic control services.
Until 1966, most U.S. Postal Service mail was transported on passenger trains. By the 1960s, it was common for passenger trains to feature a dozen mail cars with only a few passenger cars. The mail contracts kept most passenger trains economically viable. In 1966, the U.S. Postal Service switched to trucks and airplanes, depriving many passenger trains of a major source of revenue.
In the late 1960s, the end of passenger rail in the United States seemed near. First had come the requests for termination of services; then came the bankruptcy filings. The legendary Pullman Company became insolvent in 1969, followed, in 1970, by the dominant railroad in the Northeastern United States, the Penn Central. It now seemed that passenger rail's financial problems might bring down the railroad industry as a whole, yet few in government wanted to be held responsible for the extinction of the passenger train.
In 1970, Congress passed and President Richard Nixon signed into law, the Rail Passenger Service Act. Proponents of the bill, led by the National Association of Railroad Passengers (NARP), sought government funding to assure the continuation of passenger trains. They conceived the National Railroad Passenger Corporation (NRPC), a hybrid public-private entity that would receive taxpayer funding and assume operation of intercity passenger trains. The original working brand name for NRPC was Railpax, but shortly before the company started operating it was changed to Amtrak. There were several key provisions:
Nearly everyone involved expected the experiment to be short-lived. The Nixon administration and many Washington insiders viewed the NRPC as a politically expedient way for the President and Congress to give passenger trains the one "last hurrah" demanded by the public. They expected Amtrak to quietly disappear as public interest waned.[28] Proponents also hoped that government intervention would be brief, but their view was that Amtrak would soon support itself. Neither view has proved correct. Popular support has allowed Amtrak to continue in operation longer than critics imagined, while financial results have made a return to private operation unfeasible.
Of the railroads that were still offering long-distance passenger service in 1971 only six declined to join Amtrak.[29]
Amtrak began operations on May 1, 1971. The corporation was molded from the passenger rail operations of 20 out of 26 major railroads in operation at the time. The railroads contributed rolling stock, equipment, and capital. In return, they received approval to discontinue their passenger services, and at least some acquired common stock in Amtrak. Amtrak received no rail tracks or right-of-way at its inception. Railroads that shed passenger operations were expected to host Amtrak trains on their tracks, for a fee.
There was a period of adjustment. However, Amtrak was making numerous renovations and improvements. All Amtrak's routes were continuations of prior service, although Amtrak pruned about half the passenger rail network. Of the 364 trains operated previously, Amtrak only continued 182. On trains that continued, to the extent possible, schedules were retained with only minor changes from the Official Guide of the Railways. Former names largely were continued.
Several major corridors became freight-only, including New York Central Railroad's Water Level Route across New York and Ohio and Grand Trunk Western Railroad's Chicago to Detroit service, although passenger service soon returned to the Water Level Route with the introduction of the Lake Shore Limited. Reduced passenger train schedules created headaches. A 19-hour layover became necessary for eastbound travel on the James Whitcomb Riley between Chicago and Newport News.
Amtrak inherited problems with train stations, most notably deferred maintenance, and redundant facilities resulting from competing companies that served the same areas. On the day it started, Amtrak was given the responsibility of rerouting passenger trains from the seven train terminals in Chicago (LaSalle, Dearborn, Grand Central, Randolph, Chicago Northwestern Terminal, Central, and Union) into just one, Union Station. In New York City, Amtrak had to pay to maintain Penn Station and Grand Central Terminal because of the lack of track connections to bring trains from upstate New York into Penn Station, a problem not rectified until the building of the Empire Connection in 1991. In many cases Amtrak had to abandon service into the huge old Union Stations such as Cincinnati, Saint Paul, Buffalo, Kansas City, Houston, and Saint Louis, and route trains into smaller Amtrak-built facilities down the line, jokingly referred to over the years as "Amshacks" due to their basic design. Amtrak has pushed to start reusing some of the old stations, most recently Cincinnati Union Terminal, and Kansas City Union Station.
On the other hand, merged operations presented efficiencies such as the combination of three West Coast trains into the Coast Starlight, running from Los Angeles to Seattle. The Northeast Corridor received an Inland Route via Springfield, Massachusetts, thanks to support from New York, Connecticut and Massachusetts. The North Coast Hiawatha was implemented as a second Pacific Northwest route. The Milwaukee to St. Louis Abraham Lincoln and Prairie State routes also commenced. The first all-new Amtrak route, not counting the Coast Starlight, was the Montrealer/Washingtonian. That route was inaugurated September 29, 1972, along Boston and Maine Railroad and Canadian National Railway track that had last seen passenger service in 1966. Amtrak was also instrumental in restoring service in the Empire Corridor of upstate New York, between Albany and Niagara Falls, with its Empire Service, a service that was discontinued in the sixties by the New York Central and Penn Central.
Amtrak soon had the opportunity to acquire railway. Following the bankruptcy of several northeastern railroads in the early 1970s, including Penn Central, which owned and operated the Northeast Corridor (NEC), Congress passed the Railroad Revitalization and Regulatory Reform Act of 1976.[30] A large part of the legislation was directed to the creation of Conrail, but the law also enabled the transfer of the portions of the NEC not already owned by state authorities, to Amtrak. Amtrak acquired the majority of the NEC on April 1, 1976.[31] (The portion in Massachusetts is owned by the Commonwealth and managed by Amtrak. The route from New Haven to New Rochelle is owned by the Metropolitan Transportation Authority and the Connecticut Department of Transportation as the New Haven Line.) This main line became Amtrak's "jewel" asset, and helped the railroad generate significant revenues. While the NEC ridership and revenues were higher than any other segment of the system, the cost of operating and maintaining the corridor proved to be overwhelming. As a result, Amtrak's federal subsidy was increased dramatically. In subsequent years, other short route segments not needed for freight operations were transferred to Amtrak. Nevertheless, in general, Amtrak remained dependent on freight railroads for access to most of its routes outside of the northeast.
In its first decade, Amtrak fell far short of financial independence, which continues today, but it did find modest success rebuilding trade. Outside factors discouraged competing transport, such as fuel shortages which increased costs of automobile and airline travel, and strikes which disrupted airline operations. Investments in Amtrak's track, equipment and information also made Amtrak more relevant to America's transportation needs.[32][33] Amtrak's ridership increased from 16.6 million in 1972 to 21 million in 1981.[34]
Amtrak's early years are often called the Rainbow Era, which refers to the ad hoc arrangement of the rolling stock and locomotives from a pool of equipment, acquired by Amtrak, at its formation, that consisted of a large mix of paint schemes from their former owners. This rolling stock, which for the most part still bore the pre-Amtrak colors and logos, formed the multi-colored consists of early Amtrak trains. By mid-1971, Amtrak began purchasing some of the equipment it had leased, including 286 second-hand locomotives, of the EMD E and F types, 30 GG1 electric locomotives, and 1290 passenger cars, and continued leasing even more motive power. By 1975 the official Amtrak color scheme was painted on most Amtrak equipment and newly purchased locomotives and rolling stock began appearing.[35]
Ridership stagnated at roughly 20 million passengers per year amid uncertain government aid from 1981 to about 2000.[34][36]
In the 1990s, Amtrak's stated goal remained operational self-sufficiency. By this time, however, Amtrak had a large overhang of debt from years of underfunding, and in the mid-1990s, Amtrak suffered through a serious cash crunch. To resolve the crisis, Congress issued funding but instituted a glide-path to financial self-sufficiency, excluding railroad retirement tax act payments.[37] Passengers became "guests" and there were expansions into express freight work, but the financial plans failed. Amtrak's inroads in express freight delivery created additional friction with competing freight operators, including the trucking industry. Delivery was delayed of much anticipated high-speed trainsets for the improved Acela Express service, which promised to be a strong source of income and favorable publicity along the NEC between Boston and Washington, D.C.
Ridership increased in the 2000s (decade) after implementation of capital improvements in the NEC and rises in automobile fuel costs. Amtrak set its sixth straight year of record ridership, with 28.7 million passengers for the 12 months ended September 30, 2008.[38] According to Amtrak, an average of more than 70,000 passengers ride on up to 300 Amtrak trains per day.[2]
Through the late 1990s and very early 21st century, Amtrak could not add sufficient express freight revenue or cut sufficient other services to break even. By 2002, it was clear that Amtrak could not achieve self-sufficiency, but Congress continued to authorize funding and released Amtrak from the requirement.[39]
Amtrak's leader at the time, David L. Gunn, was polite but direct in response to congressional criticism. In a departure from his predecessors' promises to make Amtrak self-sufficient in the short term, Gunn argued that no form of passenger transportation in the United States is self-sufficient as the economy is currently structured.[40] Highways, airports, and air traffic control all require large government expenditures to build and operate, coming from the Highway Trust Fund and Aviation Trust Fund paid for by user fees, highway fuel and road taxes, and, in the case of the General Fund, by people who own cars and do not.[41]
Before a congressional hearing, Gunn answered a demand by leading Amtrak critic Arizona Senator John McCain to eliminate all operating subsidies by asking the Senator if he would also demand the same of the commuter airlines, upon which the citizens of Arizona are dependent. McCain, usually not at a loss for words when debating Amtrak funding, did not reply.[42]
Under Gunn, almost all the controversial express freight business was eliminated. The practice of tolerating deferred maintenance was reversed to eliminate a safety issue.[43]
Alexander Kummant, Amtrak's chief from 2006–2008, was committed to operating a national rail network, and he did not envision separating the NEC under separate ownership. He said that shedding the system's long distance routes would amount to selling national assets that are on par with national parks, and that Amtrak's abandonment of these routes would be irreversible. Amtrak is seeking annual congressional funding of $1 billion for ten years. Kummant has stated that the investment is moderate in light of federal investment in other modes of transportation.[44] In 2011, Amtrak announced its intention to build a small segment of a high speed rail corridor in New Jersey called the Gateway Project, estimated to cost $13.5 billion.[45][46][47]
In 2011 and 2012, Amtrak will celebrate its 40th anniversary with festivities across the country, starting the year-long celebration with National Train Day in May 2011. A commemorative book entitled Amtrak: An American Story was published, and a documentary was created. Four commemorative locomotives and an exhibit train are touring the country. The exhibit train is an entirely rebuilt train powered by GE Genesis locomotives and includes three refurbished baggage cars and a food service car. Four Genesis locomotives have been painted into retired Amtrak paint schemes: #156 is in Phase 1 colors, #66 is in Phase 2 colors, #145 is in Phase 3 colors,[48] and #184 is in Phase 4 colors.[49][50]
The first Amtrak train to offer free Wi-Fi service to passengers was the Downeaster in 2008, followed by the Acela Express in 2010 and the Amtrak Cascades in 2011. As of November 2011, Wi-Fi is being expanded to a variety of additional trains operating on the east coast. The Amtrak California routes are set to follow suit as well in early 2012.[51]
Also in November 2011, Amtrak launched its new e-ticketing system on the Downeaster, with plans to expand it to the rest of the rail network in 2012.[52]
Note: As of summer 2010.[66]
Unlike many large businesses, subsequent to its formation Amtrak has had only one active investor: the U.S. government. Like most investors, the federal government has demanded a degree of accountability. Determination of congressional funding and selection of Amtrak's leadership have been infused with political considerations. As discussed below, funding levels and capital support have varied over time.
Like many railroads, some members of Amtrak's board have had little or no experience with railroads. Conversely, Amtrak also has benefited from the interest of highly motivated and politically oriented public servants. For example, in 1982, former Secretary of the Navy and retired Southern Railway head W. Graham Claytor, Jr. brought his military and railroad experience to the job. Graham Claytor earned distinction as a lawyer (he was president of the Harvard Law Review and law clerk to U.S. Judge Billings Learned Hand and Supreme Court Justice Louis Brandeis); as a transportation executive (he joined the Southern as vice president-law in 1963, became president in 1967, and retired in 1977, five years before he took over the command at Amtrak); and as a public servant (he was President Carter's Secretary of the Navy, Deputy Secretary of Defense, and, briefly, Acting Secretary of Transportation, all between his two railroad careers). Claytor came out of retirement to lead Amtrak after the disastrous financial results during the Carter administration (1977–1981).[67] He was recruited by then Secretary of Transportation, Drew Lewis, and Federal Railroad Administrator Robert Blanchette, both Reagan appointees. Despite the fact that Claytor frequently opposed the Reagan Administration over Amtrak funding issues, he was strongly supported by John H. Riley, an attorney who was the highly skilled head of the Federal Railroad Administration (FRA) under the Reagan Administration from 1983–1989. Claytor, the longest serving Amtrak CEO, at 12 years, clearly enjoyed a good relationship with Congress and was perceived by many in the rail industry and government to have done an outstanding job of running Amtrak. Due to limited federal funding, Claytor was forced to use short-term debt to keep most of its operations running.[68] Also, during the Reagan Administration, Secretary of Transportation Elizabeth Dole tacitly supported Amtrak.
In the 1990s, Claytor was succeeded at Amtrak's helm by a succession of career public servants. First, Thomas Downs, who had overseen the Union Station project in Washington, D.C., which experienced substantial delays and cost overruns, assumed the leadership. Amtrak faced a serious cash crisis during 1997. However, Tim Gillespie, Amtrak's highly regarded vice president for government affairs for almost two decades, persuaded Congress to include a provision in the Taxpayer Relief Act of 1997 that resulted in Amtrak receiving a $2.3 billion tax refund that resolved their cash crisis.[69] In January, 1998, after Amtrak weathered this serious cash shortfall, George Warrington succeeded Downs. Warrington previously led Amtrak's NEC Business Unit. Warrington ran into trouble with Congress and the Administration through lavish spending and extensive borrowing. When he attempted to mortgage Penn Station in New York City he ran into a fire storm of opposition in Congress. Warrington stepped down shortly thereafter. The 1988 Democratic Presidential nominee Michael Dukakis served as Amtrak's vice chairman of the board and was nominated as a director by President Bill Clinton in 1998.
In April 2002, David L. Gunn was selected as president. Gunn had a strong reputation as a straightforward and experienced manager. Years earlier (between 1991 and 1994), Gunn's refusal to "do politics" put him at odds with the Washington Metropolitan Area Transit Authority board of directors, which included representatives from the District of Columbia and suburban jurisdictions in Maryland and Virginia. Gunn was an accomplished public servant and railroad person and his successes before Amtrak earned him a great deal of credibility, despite a sometimes-rough relationship with politicians and labor unions.
Gunn was polite but direct in response to congressional criticism of Amtrak, and his tenure was punctuated by successes in reducing layers of management overhead in Amtrak and streamlining operations. Amtrak's Board of Directors removed Gunn on November 9, 2005. The board then appointed David Hughes, Amtrak's Chief Engineer, as interim CEO.[60] Given Gunn's solid performance, many Amtrak supporters feared that Gunn's departure was Amtrak's death knell, although those fears have not been realized. On August 29, 2006 Alexander Kummant was named as Gunn's permanent replacement effective September 12, 2006.[62] Kummant resigned on November 14, 2008. The board appointed Amtrak COO William Crosbie as interim CEO.[70] On November 26, 2008, the board appointed Federal Railroad Administration chairman Joseph H. Boardman as interim Amtrak President and CEO for one year.[64] In January 2010, Amtrak announced that it had extended Boardman's appointment indefinitely.[71]
Amtrak commenced operations in 1971 with $40 million in direct federal aid, $100 million in federally insured loans, and a somewhat larger private contribution.[72] Officials expected that Amtrak would break even by 1974, but those expectations proved unrealistic and annual direct Federal aid reached a 17-year high in 1981 of $1.25 billion.[73] During the Reagan administration, appropriations were halved. By 1986, federal support fell to a decade low of $601 million, almost none of which were capital appropriations.[74] In the late 1980s and early 1990s, Congress continued the reductionist trend even while Amtrak expenses held steady or rose. Amtrak was forced to borrow to meet short-term operating needs, and by 1995 Amtrak was on the brink of a cash crisis and was unable to continue to service its debts.[75] In response, in 1997 Congress authorized $5.2 billion for Amtrak over the next five years—largely to complete the Acela capital project—on the condition that Amtrak submit to the ultimatum of self-sufficiency by 2003 or liquidation.[76] Amtrak made financial improvements during the period, but ultimately did not achieve self-sufficiency.
In 2004, a stalemate in federal support of Amtrak forced cutbacks in services and routes as well as resumption of deferred maintenance. In fiscal 2004 and 2005, Congress appropriated about $1.2 billion for Amtrak, $300 million more than President George W. Bush had requested. However, the company's board requested $1.8 billion through fiscal 2006, the majority of which (about $1.3 billion) would be used to bring infrastructure, rolling stock, and motive power back to a state of good repair. In Congressional testimony, the Department of Transportation's inspector-general confirmed that Amtrak would need at least $1.4 billion to $1.5 billion in fiscal 2006 and $2 billion in fiscal 2007 just to maintain the status quo. In 2006, Amtrak received just under $1.4 billion, with the condition that Amtrak would reduce (but not eliminate) food and sleeper service losses. Thus, dining service was simplified and now requires two fewer on-board service workers. Only Auto Train and Empire Builder services continue regular made-on-board meal service. In 2010 the Senate approved a bill to provide $1.96 billion to Amtrak, but cut the approval for high-speed rail to a $1 billion appropriation.[77]
State governments have partially filled the breach left by reductions in federal aid. Several states have entered into operating partnerships with Amtrak, notably California, Pennsylvania, Illinois, Michigan, Oregon, Missouri, Washington, North Carolina, Oklahoma, Texas, Wisconsin, Vermont, Maine, and New York, as well as the Canadian province of British Columbia, which provides some of the resources for the operation of the Cascades route.
With the dramatic rise in gasoline prices during 2007–2008, Amtrak has seen record ridership.[78] Capping a steady five-year increase in ridership overall, regional lines saw 12% year-over-year growth in May 2008.[79] In October 2007, the Senate passed S-294, Passenger Rail Improvement and Investment Act of 2007 (70–22) sponsored by Senators Frank Lautenberg and Trent Lott. Despite a veto threat by President Bush, a similar bill passed the House on June 11, 2008, with a veto-proof margin (311–104).[80] The final bill, spurred on by the September 12 Metrolink collision in California and retitled Rail Safety Improvement Act of 2008, was signed into law by President Bush on October 16, 2008. The bill appropriates $2.6 billion a year in Amtrak funding through 2013.[81]
Government aid to Amtrak was controversial from the beginning. The formation of Amtrak in 1971 was criticized as a bailout serving corporate rail interests and union railroaders, not the traveling public. Critics assert that Amtrak has proven incapable of operating as a business and that it does not provide valuable transportation services meriting public support,[82] a "mobile money-burning machine."[83] They argue that subsidies should be ended, national rail service terminated, and the NEC turned over to private interests. "To fund a Nostalgia Limited is not in the public interest."[84] Critics also question Amtrak's energy efficiency,[85] though the U.S. Department of Energy considers Amtrak among the most energy-efficient forms of transportation.[86]
Proponents point out that the government heavily subsidizes the Interstate Highway System, the Federal Aviation Administration, many airports, among many aspects of passenger aviation. Massive government aid to those forms of travel was a primary factor in the decline of passenger service on privately owned railroads in the 1950s and 1960s. In addition, Amtrak pays property taxes (through fees to host railroads) that highway users do not pay. Advocates therefore assert that Amtrak should only be expected to be as self-sufficient as those competing modes of transit.
Along these lines, in a June 2008 interview with Reuters,[41] Amtrak President Alex Kummant made specific observations: $10 billion per year is transferred from the general fund to the Highway Trust Fund; $2.7 billion is granted to the FAA; $8 billion goes to "security and life safety for cruise ships." Overall, Kummant claims that Amtrak receives $40 in federal funds per passenger, while highways are subsidized at a rate of $500–$700 per automobile. Moreover, Amtrak provides all of its own security, while airport security is a separate federal subsidy. Kummant added: "Let's not even get into airport construction which is a miasma of state, federal and local tax breaks and tax refinancing and God knows what."
According to the United States Department of Transportation's Bureau of Transportation Statistics, rail and mass transit are considerably more subsidized on a per passenger-mile basis by the federal government than other forms of transportation; the subsidy varies year to year, but exceeds $100 dollars (in 2000 dollars) per thousand passenger-miles, compared to subsidies around $10 per thousand passenger-miles for aviation (with general aviation subsidized considerably more per passenger-mile than commercial aviation), subsidies around $4 per thousand passenger-miles for intercity buses, and automobiles being a small net contributor through the gas tax and other user fees rather than being subsidized.[87] On a total subsidy basis, aviation, with many more passenger-miles per year, is subsidized at a similar level to Amtrak. The analysis does not consider social costs and benefits, or difficult-to-quantify effects of some regulation, such as safety regulation.
Critics, such as the Cato Institute's Randal O'Toole,[88] argue that gasoline taxes amount to user fees because people are taxed to the extent they use the roads. However, there is still a significant amount of road spending that is not covered by the gas tax. It covers little of the costs for local highways and in many states little of the cost for state highways.[89][90] Taking these facts into account, though, O'Toole claims on page 2 of his report that "in 2006, Americans paid $93.6 billion in tolls, gas taxes, and other highway user fees. Of this amount, $19.3 billion was diverted to mass transit and other non-highway activities. At the same time, various governments—mainly local—spent $44.5 billion in property, sales, or other taxes on highways, roads, and streets. The net subsidy to highways was $25.1 billion, or about half a penny per passenger mile." O'Toole's road budget and passenger-mile numbers are disputed. In the same year, Amtrak receives direct subsidies of just over $1 billion, or 22 cents per passenger mile.
Many trade union jobs were saved by the bailout, and Amtrak itself finances the pensions of most railroad employees, even if they had never worked for Amtrak directly or never worked in passenger railroad service.
In recent times, efforts at reforming passenger rail have addressed labor issues. In 1997 Congress released Amtrak from a prohibition on contracting for labor outside of the corporation (and outside its unions), opening the door to privatization.[91] Since that time, many of Amtrak's employees have been working without a contract. The most recent contract, signed in 1999, was mainly retroactive.
Still, though, the influence of unions is a strong force against change. Amtrak has 14 separate unions to negotiate with, because of the fragmentation of railroad unions by job. Plus, it has 24 separate contracts with those unions.[92] This makes it difficult to make substantial changes, in contrast to a situation where one union negotiates with one employer. Former Amtrak president Kummant seems poised to follow a cooperative posture with Amtrak's trade unions. He has ruled out plans to privatize large parts of Amtrak's unionized workforce.[93]
In late 2007 and early 2008, however, major labor issues came up, a result of a dispute between Amtrak and 16 unions over healthcare, specifically which employees healthcare should be available to. The dispute was not resolved quickly, and the situation escalated, to the point of President Bush declaring a Presidential Emergency Board to resolve the issues. It was not immediately successful, and a strike was threatened, to begin on January 30, 2008. In the middle of that month, however, it was announced that Amtrak and the unions had come to terms and January 30 passed without a strike. In late February it was announced that three more unions had worked out their differences, and as of that time it seems unlikely that any more issues will arise in the near future.
The Wicker Amendment is United States federal legislation to allow rail travellers to put properly licensed, unloaded guns in checked Amtrak baggage. It reverses a decade-long ban on such carriage and came into effect on 15 December 2010. The policy change was promoted by the National Rifle Association and United States Senator Roger Wicker.[94]
Amtrak is no longer required by law, but is encouraged, to operate a national route system.[95] Amtrak has some presence in all of the 48 contiguous states except Wyoming and South Dakota.[96] Service on the NEC, between Boston, Massachusetts, and Washington, D.C., as well as between Philadelphia and Harrisburg, Pennsylvania, is powered by overhead electric wires; for the rest of the system, diesel locomotives are used. Routes vary widely in frequency of service, from three trips weekly on the Sunset Limited (Los Angeles, California, to New Orleans, Louisiana), to weekday service several times per hour on the NEC, (New York City to Washington, D.C.)[97] Amtrak also operates a captive bus service, Thruway Motorcoach, which provides connections to train routes. In addition, the company owns Passenger Railway Insurance.
The most popular and heavily used services are those running on the NEC, which include the Acela Express, and Northeast Regional. The NEC serves Boston, Massachusetts; New York City; Philadelphia, Pennsylvania; Baltimore, Maryland; Washington, D.C.; and many communities between. The NEC services accounted for 10.0 million of Amtrak's 25.7 million passengers in fiscal year 2007.[98]
Regional services in California, subsidized by the California Department of Transportation are the most popular services outside of the NEC and the only other services boasting over one million passengers per annum. The Pacific Surfliner, Capitol Corridor and San Joaquin services accounted for a combined 5.0 million passengers in fiscal year 2007.[98]
Four of the six stations busiest by boardings are on Amtrak's NEC: New York (Penn Station) (first), Washington (Union Station) (second), Philadelphia (30th Street Station) (third), and Boston (South Station) (sixth). The other two of the top six are Chicago (Union Station) (fourth) and Los Angeles (Union Station) (fifth).[99]
Many Amtrak trains have both names and numbers. Train routes are named to reflect the rich and complex history of the routes and the areas traversed by them. Each scheduled run of the route is assigned a number. Generally, even-numbered routes run northward and eastward, while odd-numbered routes run southward and westward. Some routes, such as the Pacific Surfliner, use the opposite numbering system, inherited from the previous operators of similar routes, such as the Atchison, Topeka and Santa Fe Railway. Many NEC trains only have numbers.
These are the 15 busiest routes in the Amtrak system, ordered by region followed by ridership:
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West Coast
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Northeast
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Per passenger mile, Amtrak is 30–40 percent more energy-efficient than commercial airlines and automobiles overall,[100] though the exact figures for particular routes depend on load factor along with other variables. The electrified trains in the NEC are considerably more efficient than Amtrak's diesels and can feed energy captured from regenerative braking back to the electrical grid. Passenger rail is also competitive with other modes in terms of safety per mile.
| Mode | Revenue per passenger mile[101] | Energy consumption per passenger mile[100] | Deaths per 100 million passenger miles[102][dead link] | Reliability[103] |
| Domestic airlines | 13.0¢ | 2,931 BTUs | 0.02 deaths | 76% |
| Transit buses | 12.9¢[104] | 2,656 BTUs | 0.05 deaths | N/A |
| Amtrak | 30.7¢ | 1,745 BTUs | 0.03 deaths | 80% |
| Autos | N/A | 3,501 BTUs | 0.8 deaths | N/A |
It should be noted that on-time performance is calculated differently for airlines than for Amtrak. A plane is considered on-time if it arrives within 15 minutes of the schedule. Amtrak uses a sliding scale, with trips under 250 miles (400 km) considered late if they're more than 10 minutes behind schedule, up to 30 minutes for trips over 551 miles (887 km) in length.[103]
Intermodal connections between Amtrak trains and other transportation are available at many stations. Most Amtrak rail stations in downtown areas have connections to local public transport. Amtrak also code shares with Continental Airlines, providing service between Newark Liberty International Airport (via its Amtrak station and AirTrain Newark) and Philadelphia 30th St, Wilmington, Stamford, and New Haven. Amtrak also serves airport stations at Milwaukee, Oakland, Burbank, and Baltimore.
Amtrak coordinates Thruway Motorcoach service to extend many of its routes, especially in California.
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Outside the Northeast Corridor, Amtrak is a niche player in passenger transportation. However, in recent years automobile transportation has decreased and train ridership has dramatically increased. [105] In fiscal year 2004, Amtrak routes served over 25 million passengers, while, in calendar year 2004, commercial airlines served 712 million passengers.[106]
When it started on May 1, 1971, Amtrak implemented a fairly drastically truncated system of passenger trains compared to what had previously existed. Out of the 364 passenger trains that operated on April 30, only 182 were continued.
Initially, Amtrak served 46 out of the 50 states. The states not served were:
As of 2010 Amtrak still provides service to only 46 out of the 50 states:
However, even within some of the states in which Amtrak operates, service is nominal at best. Many trains operate along borders and/or away from major population areas, such as in Idaho and Kentucky. Many major cities in the Midwest, West, and South have two or fewer trains per day, such as Atlanta, Denver, Cincinnati, Houston, Indianapolis, and Minneapolis – Saint Paul.
Meanwhile, outside the Continental US:
Since its inception, Amtrak has been reliant on freight railroads and operating over their rights of way. Amtrak services are affected if a freight railroad decides to abandon a right of way that it uses. This can sometimes lead to a rerouting of a train over a different route, adding to a train's travel time, or to the complete discontinuance of a train. Several trains affected by freight railroads over the years have been:
Several significant Amtrak routes have been eliminated because of lack of funding since 1971, creating other gaps such as:
Many attribute this to Amtrak's reliance upon railway tracks owned and operated by freight railroads for trains outside of the NEC. Track ownership in the US is different from most Europe and much of Japan, where the passenger rail services generally own and operate the railway tracks.
Freight rail operators are required under federal law to give dispatching preference to Amtrak trains. Some freight railroads have been accused of violating or skirting these regulations, allegedly resulting in passenger trains waiting in sidings for an hour or longer while waiting for freight traffic to clear the track. The railroads' dispatching practices were investigated in 2008,[109] resulting in stricter laws about train priority which had a dramatic result. Amtrak's overall on-time performance went up from 74.7% in fiscal 2008 to 84.7% in 2009, with long-distance trains and others outside the NEC seeing the greatest benefit. The Missouri River Runner jumped from a very poor 11% to 95%, becoming one of Amtrak's best performers. The Texas Eagle went from 22.4% to 96.7%, and the California Zephyr, with an abysmal 5% on-time record in 2008, went up to 78.3%.[110] However, this improved performance also coincided with a general economic downturn, resulting in the lowest freight rail traffic volumes since at least 1988, meaning less freight traffic to impede passenger traffic.[111]
Frequency of most trains outside of the Northeast Corridor and Chicago Megalopolis, even between major destinations, is low.
For usage of Amtrak trains/routes: see List of Amtrak routes
The route from Chicago to San Antonio (the Texas Eagle), taking in Fort Worth and other major cities and towns along its route, had a ridership in 2008 of 251,518 passengers. Some Amtrak routes, for example, the Heartland Flyer with its ridership of 80,892 per annum operates under contracts with the Government of Oklahoma and the Government of Texas.
Through Sept. of the fiscal year. (1971-2002 data: [1])
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Amtrak's loyalty program, Guest Rewards, is similar to the frequent-flyer programs of many airlines. Guest Rewards members accumulate points by riding Amtrak and through other activities, and can redeem these points for free or discounted Amtrak tickets and other rewards.
Amtrak Express (reporting marks AMTK, AMTZ) provides small-package and less-than-truckload shipping among more than 100 cities. Amtrak Express also offers station-to-station shipment of human remains to many express cities. At smaller stations, funeral directors must load and unload the shipment onto and off the train. Amtrak hauled mail for the United States Postal Service and time-sensitive freight, but discontinued these services in October 2004 when the contract was lost. On most parts of the few lines that Amtrak owns, trackage-rights agreements allow freight railroads to use its trackage.
Through various commuter services, Amtrak serves an additional 61.1 million passengers per year in conjunction with state and regional authorities in California (through Amtrak California, Caltrain, and Metrolink), Connecticut (through Shore Line East), Maryland (through MARC), and Washington.
Amtrak's Capitol Corridor, Pacific Surfliner (formerly San Diegan), and San Joaquin are funded mostly by the California Department of Transportation, Caltrans, rather than the US Federal Government.
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Amtrak has a variety of coaches that suit a variety of needs. Class choices are similar to those used by airlines.
First Class service is currently offered on the Acela Express only. Previously First Class was offered on the Northeast Direct (predecessor to the Northeast Regional) as well as the Metroliner up until that service's discontinuation in 2006.
Seats are larger than those of Business Class and come in a variety of seating modes (single, single with table, double, double with table and wheelchair accessible). First Class is located in separate cars from the other classes. First Class includes complimentary meal and beverage service along with free newspapers and hot towel service. First Class seats are set in a 1x2 configuration. There are two attendants per car.
First Class passengers have access to Amtrak ClubAcela lounges in Washington D.C., Philadelphia, New York and Boston. ClubAcela lounges offer complimentary drinks, personal ticketing service, lounge seating, conference areas, computer/internet access and televisions tuned to CNN. At the Philadelphia and Washington, D.C., lounges, passengers can board their train directly from the lounge. In Philadelphia passengers use an elevator to access the train, while in Washington passengers leave through a side door leading to the train platform.
Sleeper Service rooms are considered First Class on long distance trains. Rooms are classified into roomettes, bedrooms, family bedrooms and accessible bedrooms. With the price of a room comes complimentary meals and attendant service. At night, rooms turn into sleeping areas with fold-down beds and fresh linens. Complimentary bottled water, newspapers and turn down service are included as well.
Sleeper car passengers have access to the entire train. Sleeper passengers also have access to the ClubAcela lounges in stations along the NEC and access to the Metropolitan Lounges in Chicago, Miami, New Orleans, Portland (Oregon), and Minneapolis/Saint Paul.
Sleeper car passengers on the Los Angeles—Seattle Coast Starlight also have access to the Pacific Parlour Car (PPC). The Pacific Parlour Car has a bar with a dedicated staff attendant, tables for meals, and comfortable swivel chairs. Downstairs is a movie theater for sleeping car passengers only.
Business Class is the minimum class of service on the Acela Express and is offered as an upgrade on Northeast Regional and similar trains. Business Class seats are larger than coach seats. Business Class passengers have easy access to the cafe car, either seated at one end of the cafe car or with the cafe car separating the Business Class cars from Regional Coach Cars. Business Class passengers also receive complimentary non-alcoholic beverages and newspapers (typically The New York Times, even if boarding/originating outside New York city).
Two different Business Class seat configurations exist:
Amtrak has several variations that it considers Coach Class.
Reserved Coach is the standard class of service on most Amtrak trains (except Acela). Coach seats are always set in a 2x2 configuration, but the seats themselves come in two varieties:
All ticketed passengers are guaranteed a seat, although passengers are not assigned a specific seat before boarding. The lack of advance seat assignment is unlike Canada's Via Rail and many long distance train services in Europe. If the train is not sold out, passengers are usually permitted to purchase tickets on the day of departure, or in some cases aboard the train.
Unreserved Coach seating is offered on a first-come, first-served basis on some of Amtrak's shorter distance and commuter-oriented routes. Unreserved coach is also used as a designator when Amtrak through-books an itinerary with a regional transit operator's commuter service (such as New Jersey Transit's Atlantic City Line)
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Most tracks on which Amtrak operates are owned by freight railroads, but Amtrak owns the rail track in most of the NEC and a few other places.
Amtrak operates over all Class I railroads in the United States, as well as several regional railroads and short lines. Other sections are owned by terminal railroads jointly controlled by freight companies or by commuter rail agencies. Amtrak is able to do this because it has trackage rights, but it does not maintain those tracks or control train movements on those tracks.
The arrangement affects Amtrak operations in two significant ways:
Along the NEC and in several other areas, Amtrak owns 730 route-miles of track (1175 km), including 17 tunnels consisting of 29.7 miles (47.8 km) of track, and 1,186 bridges (including the famous Hell Gate Bridge) consisting of 42.5 miles (68.4 km) of track. Amtrak owns and operates the following lines:[112]
In several places, primarily in New England, Amtrak leases tracks, providing track maintenance and controlling train movements. Most often, these tracks are leased from state, regional, or local governments.
The Northeast Corridor between Washington, D.C. and Boston via Baltimore, Philadelphia, Newark, New York and Providence is largely owned by Amtrak, working cooperatively with several state and regional commuter agencies.
The Connecticut Department of Transportation and the Metropolitan Transportation Authority operate the line between New Haven, Connecticut and New Rochelle, NY through the Metro-North Railroad, with ownership as follows:
This line runs from Philadelphia to Harrisburg, Pennsylvania. As a result of an investment partnership with the Commonwealth of Pennsylvania, signal and track improvements were completed in October 2006 that allow all-electric service with a top speed of 110 miles per hour (180 km/h) to run along the corridor.
Amtrak also owns station and yard tracks in Chicago, Los Angeles, New Orleans, New York City, Oakland (Kirkham Street Yard), Orlando, Portland, Oregon, Saint Paul, Seattle, and Washington, D.C.
Amtrak leases station and yard tracks in Hialeah, near Miami, Florida, from the State of Florida.
Amtrak owns the Chicago Union Station Company (Chicago Union Station) and leases (New York Penn Station). It has a 99.7% interest in the Washington Terminal Company[113] (tracks around Washington Union Station) and 99% of 30th Street Limited (Philadelphia 30th Street Station). Also owned by Amtrak is Passenger Railroad Insurance.[114]
| Service | Route |
|---|---|
| Acela Express | Boston – Washington,D.C. |
| Adirondack | Montreal – New York City |
| Amtrak Cascades | Vancouver – Eugene, Oregon (via Portland, Oregon and Seattle, Washington) |
| Auto Train | Lorton (Washington, D.C. area)- Sanford (Orlando, Florida area) |
| Blue Water | Chicago – Port Huron |
| California Zephyr | Chicago – Emeryville (San Francisco) |
| Capitol Corridor | Auburn – Sacramento – San Jose (via Oakland) |
| Capitol Limited | Chicago – Washington, D.C. (via Cleveland, Ohio and Pittsburgh, Pennsylvania) |
| Cardinal | Chicago – New York (via Indianapolis/Cincinnati/D.C.) |
| Carl Sandburg | Chicago – Quincy |
| Carolinian | New York – Raleigh – Greensboro – Charlotte |
| City of New Orleans | Chicago – New Orleans |
| Coast Starlight | Seattle – Los Angeles (via Sacramento/Oakland) |
| Crescent | New York – New Orleans (via Atlanta) |
| Downeaster | Portland, Maine – Boston |
| Empire Builder | Chicago – Portland, Oregon/Seattle (via Spokane) |
| Empire Service | New York – Niagara Falls (via Albany) |
| Ethan Allen Express | New York – Rutland (via Albany) |
| Heartland Flyer | Oklahoma City – Fort Worth |
| Hiawatha | Chicago – Milwaukee |
| Hoosier State | Chicago – Indianapolis |
| Illini | Chicago – Carbondale |
| Illinois Zephyr | Chicago – Quincy |
| Keystone Service | New York – Harrisburg (via Philadelphia) |
| Lake Shore Limited | New York / Boston – Chicago (via Albany) |
| Lincoln Service | Chicago – St. Louis |
| Maple Leaf | New York – Toronto |
| Missouri River Runner | St. Louis – Kansas City |
| New Haven–Springfield Shuttle | New Haven – Springfield |
| Northeast Regional | Boston or Springfield – New York – Washington DC – Virginia (Newport News or Lynchburg) |
| Pacific Surfliner | San Luis Obispo – Los Angeles – San Diego |
| Palmetto | New York – Savannah |
| Pennsylvanian | New York – Pittsburgh (via Newark, Philadelphia, Harrisburg and Altoona) |
| Pere Marquette | Grand Rapids – Chicago |
| Piedmont | Charlotte – Raleigh |
| Saluki | Chicago – Carbondale |
| San Joaquin | Bakersfield – Oakland / Sacramento |
| Silver Meteor | New York – Fayetteville – Miami |
| Silver Star | New York – Raleigh – Tampa – Miami |
| Southwest Chief | Chicago – Los Angeles |
| Sunset Limited | Los Angeles – New Orleans |
| Texas Eagle | Chicago – Los Angeles (through San Antonio and Dallas) |
| Vermonter | Washington – St. Albans |
| Wolverine | Chicago – Detroit – Pontiac |
Amtrak owns 2,142 railway cars and 425 locomotives for revenue runs and service. Examples include the GE P42DC, the EMD AEM-7, the Amfleet car and the Superliner car. Occasionally private cars, or leased locomotives from affiliated companies are added to the roster.
| Wikimedia Commons has media related to: Amtrak |
Topics dealing with Amtrak
Rail Companies of Interest
Rail Disasters
Related Companies
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