More Urgent National Choo-Choo Business In The Nation's Capital

by Vince Daliessio

It's Amtrak time again - time for adults to abandon economic rationality, and time for the politicians to propose the latest reform that isn't really a reform for the government's hideously expensive 1:1 scale train set. Some precious excerpts;

WASHINGTON, Oct. 12 - The Amtrak board has approved an essential step in the Bush administration plan to break up the railroad, voting to carve out the Northeast Corridor, the tracks between Boston and Washington, as a separate division.

The board, made up entirely of Mr. Bush's appointees, voted in a meeting on Sept. 22 to create a new subsidiary to own and manage the corridor, which includes nearly all the track that Amtrak owns.

The vote was not announced. It was reported on Wednesday in the newsletter of the United Rail Passenger Alliance of Jacksonville, Fla., an organization that has been highly critical of Amtrak management.

The plan, which would require action by Congress, is to transfer the corridor to a consortium including the federal government and the governments of the states in the region that would share the costs to maintain it.That would relieve Amtrak from spending billions of dollars to build and rebuild bridges, rails and electrical systems, but still let the company run its trains.

Some predictable reaction from NJ Senator Frank Lousenberg;

"The Bush administration wants to hold a fire sale on Amtrak and dump its best asset, the Northeast Corridor," Mr. Lautenberg said in a statement. "Selling the Northeast corridor is the first step in President Bush's plan to destroy Amtrak and intercity rail service in America."

Aaaaand, reaction from the choo-choo lovers lobby;

At the National Association of Railroad Passengers, which lobbies for more subsidies for Amtrak, the executive director, Ross B. Capon, said that separating the corridor into a distinct business entity was a step toward moving it out of Amtrak entirely, but that the move would also have a second effect, insulating the commuter operations in the Northeast from Amtrak troubles. That, Mr. Capon said, would give more leverage to the Transportation Department, which has been leading the charge to close Amtrak or break it up.

"Their dream is an Amtrak crisis where the commuter trains are unaffected and, therefore, the political power behind the protest is that much smaller, and they can go ahead and do whatever they want with or too Amtrak," he said.

My advice echoes Jeff Tucker's - sell the routes, keep the real-estate and sell it later after it is clear whether the markets involved want to use it for rail service, or highways, or something else.

Maybe when everyone is fed up with the demeaning, hostile treatment they receive at the hands of the federal airport goons, this railfan's utopia will come about.

But then again, it is up to the market, and not a bunch of connected people obsessed with obsolete technology.

Comments

I take Amtrak fairly regularly. The NE corridor is one that could and should run profitably. All I can see, if totally privatized, is better service and stabilized or lowered prices. Rail travel to DC and NYC is the way to go, and it would get even better if run privately. "But rail travel is too important to be left to private companies!" Wua ha ha ha ha haaaaaa

Amtrak is a prime example of where you shouldn't spend the people's money for them. Let's take all the subsidies Amtrak get, refund the money with a tax cut, and let Amtrak run as a business in the real world. If it fails then we didn't really want it anyway. If it doesn't, we'll end up with a profitable company that helps the economy.

The unique problem with Amtrak is that you have a federally subsidized national railroad pyramided atop state and city-funded regional railroads, all of which cross-subsidize one another to present the appearance of a workable system that is just beyond profitability, and thus needs "small" subsidies to produce "huge" benefits. What is really happening is that regional and national passenger service is like trying to get from here to there by burning thousand-dollar bills. When an enterprise that was "supposed" to be self-supporting has instead soaked up $25 BILLION in its lifetime in DIRECT subsidies (not counting indirects and infrastructure spending that has probably been twice that), it is time to pull the plug. If the service Amtrak offers has value, someone will provide it. Those who favor continuing this insanity point out that highways and airports are subsidized too, and they have a point - walking away from Amtrak must not be accompanied by then turning around and doubling subsidies for highway or air travel, however. All operating and infrastructure spending on transportation should be halted, and all privatized.

I agree. Amtrak is a great example of Soviet-style planning right here at home. It can't be fixed and it can't be managed. It must be abolished. Washington should just walk away.

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