Gulf Coast Service: CSX Responds

And now CSX has said "Not so fast!" All of this could have been prevented if Amtrak had actually resumed service 15 years ago when the host railroad told them that the tracks east of New Orleans were ready post-Katrina. 

Revolting Against Amtrak Part II

Is Amtrak the only state option?

To answer the article in the April edition of Trains Magazine: It shouldn't be.

Testifying at a U.S. House of Representatives rail subcommittee hearing on Amtrak operations, [Stacey] Mortenson said she found it "absolutely astonishing" when Amtrak officials told her in a meeting "that service cuts or reducing the number of railcars would not necessarily same us any money."

But yet at certain times, bean counters in Washington go ahead and cut service under the guise of "saving money" anyway.
For all of the flak, NCDOT gets from some rail activists for using refurbished pre-Amtrak era equipment, it looks as if it made a smart move since it only pays Amtrak for Carolinian equipment. For instance, look at all of the trouble the Midwestern states went through with Nippon-Sharyo's double-decker equipment.
Bob Johnston pointed out that advertising and corridor-specific marketing among other things have fallen off a cliff since the late '90s. Here in North Carolina, advertising for the Piedmont and Carolinian are handled by NCDOT, and the only Amtrak presence came in the form of radio ads in the mid '10s.
Amtrak may have the statutory right of access to the host railroads' tracks but if the states had done their homework in the early '10s, they could have dumped Amtrak, used the commuter rail model for AIPRO operators and saved themselves a lot of money. The refusal by the states to consider AIPRO operators means that these DOTs shot themselves in the foot in regards to expansion and using their imagination.

It must be pointed out the reason why the Hoosier State failed was because it was the only corridor route that had less than daily service, Indiana officials were half-hearted with their support--the cities and universities along the route did most of the heavy lifting--and the trains stopped at unmarketable times.

Bennett Levin pointed out to Trains Magazine that Amtrak's liability advantage was eradicated after the Train #188 derailment five years ago when the cap was raised from $250 million for only Amtrak to $294 million for all passenger carriers.

In any case, heightened scrutiny of Amtrak's costs an responsiveness will clearly be a contentious element of upcoming re-authorization discussions.

Congress needs to keep the pressure up on Amtrak because it has gotten away with saddling states with high cost, low revenue studies that all but guarantee no expansion of existing services and no new routes. On top of that, the other states need to stand up to bureaucrats in D.C. who know nothing about their needs and only care about the 457 miles between Washington and Boston.

Bennett Levin's Visit to Pennsylvania Legislators

In the First Quarter issue in Passenger Train Journal, Kevin McKinney analyzed Levin's testimony in the Pennsylvania House Transportation Committee at the end of last year.

[Levin] adds that "SEPTA gives Amtrak attributable to the Harrisburg Line is not being used by Amtrak on the Harrisburg Line, but is being used by Amtrak for other purposes."

Is it any wonder why Levin wants SEPTA to run the trains? A slight variation should result in a new PENN RAIL running the trains instead.

Levin also pointed out just how out of touch the Amtrak Board is with the people who are on it and have no railroading experience. It's worth noting that both Levin and Mortenson told the legislative bodies in question that Amtrak's accounting is absolutely opaque.

Levin is right in that "Amtrak is running on auto-pilot" and the states "are getting shortchanged." The former is due to "America's Railroad" getting all of that PRIIA money from the states and feeling no need to improve the state-supported routes without needless studies.

Alternative History #7

Scenario

An agreement is reached between Florida East Coast management and employees, averting a strike

Point of Departure

1963

Storyline A (Seaboard merges with Southern and the ACL merges with N&W)
Amtrak doesn’t serve Florida in 1971 since the three Class I railroads still do. Governor Lawton Chiles chooses corridor service over the high speed Florida Overland Express in 1996, effectively killing future efforts for high speed rail in the state. The Florida Rail System is formed the following year.

In 1993, the Norfolk Coast Line interlines its Gulf Wind route with Amtrak to provide true bicoastal service. A dozen years later, Amtrak withdrew its support citing unreliable Union Pacific timekeeping out west.

Today’s Likely Outcome

There are only modest changes to the schedules.  

Storyline B (the Ripley Plan is adopted)

The FEC became a subsidiary of Southern Railway long before the 1970s in the same way the LIRR is a subsidiary of the ACL (the FEC route officially became a Southern route in 1992). 

In 1997, Congress responded to growing state interest in corridor service by transferring routes that are less than 500 miles long to the states. It was at this point that the former FEC routes were handed over to the FL DOT. Eleven years later, Congress increased the corridor length to 750 miles in response to interstate pacts.

Today’s Likely Outcome

East Coast service is increased alongside Southern’s presence in Florida. There are two overnight frequencies along the route. Due to the increase in intrastate service, the railroads alter their schedules so that certain trains provide overnight service in Florida

Storyline C (the SCL holds out of joining Amtrak)
The Southeast Rail Coalition was formed in the late 1980s to expand passenger rail in Virginia, the Carolinas, Georgia and Florida so passengers have more daytime options. 
FEC rebranded its overnight routes in 2001 as a premium, all-sleeper service. A few years later, other Class I railroads were so envious of CSX’s success that they got Congress to pass a provision in PRIIA that allows intercity competition against Amtrak.
The Miami Intermodal Center opened ten years ago and continues to serve Amtrak, CSX and FL DOT passenger trains.

Today’s Likely Outcome

Amtrak’s frequency remains as is, CSX promotes several routes to year-round status, the FEC has added another roundtrip, and the FL DOT system continues its expansion.

Storyline D (the FEC competes with Amtrak for Jacksonville-Miami passengers)

Throughout the 1970s, the FEC was very leery of interlining with Amtrak due to there being no other private railroads available. In the mid to late 1980s, FEC agreed to allow commuter service in South Florida as I-95 is being widened. About a decade later, Tri-Rail’s service between downtown Miami and Jupiter intrigues state officials so much that it explores similar service along the CSX route. The result was the 1998 launch of Amtrak Florida. With double decker cars in tow, the first routes the state launched were Orlando-Miami and Tampa-Miami. The state extended service to Jacksonville in 2000 along both the A and S Lines. A daytime Jacksonville-Pensacola route was launched in 2005, months before Hurricane Katrina suspended Sunset Limited service east of New Orleans.

At the turn of the millennium, Amtrak targeted Southwest Florida as a part of its short-lived Mail & Express expansion plan. In late 2004, the national carrier decided to pull out of the Tampa market rather than the S-Line once it terminated carrying mail (the Silver Star is put back on the route once the Palmetto is cut back to Savannah). Sunrail launched service in 2006 without any difficulties.

In the fall of 2011, FL DOT objected to the Section 209 PRIIA provisions and terminated its agreement with Amtrak two years later (this move made Indiana the second state to hold out of the PRIIA standards), opting to contract with Sunrail operator Bombardier at the beginning of 2014.

The FEC did a massive rebranding campaign in 2012: Local stops service became Coastal, night service became the Owl, and a new limited stop service was originally named All Aboard Florida (now known as Brightline) in advance of expansion to Tampa. 

Today’s Likely Outcome
The FEC opened new stations in Jacksonville, West Palm Beach, and Fort Lauderdale in 2014 with Miami Central replacing the old downtown location the following year. Service to Orlando Airport began two years ago while the extension to Tampa opened in time for the Memorial Day weekend last month. FEC now has over 40 frequencies around the clock as a result of the rebranding and expansion.


Divorcing itself from Amtrak has paid the FL DOT huge dividends as it rebranded the rail service as FLORail, added new frequencies, expanded to new cities, acquired new equipment, and taken over certain stations previously neglected by Amtrak. FLORail trains also serve the historic station in Jacksonville and the Miami Airport Station. The former was the result of FL DOT’s vision to relocate corridor trains and the latter happened because the state wanted to make things easier for airport travelers. One of FLORail’s biggest hits is the Panhandle route (a feasibility study on extending service to New Orleans is underway). Southwest Florida service to Venice and Naples is also in the works. 

As for Amtrak? Having its role reduced to being a bit player in the state, it decided to end service to smaller cities and to limit its southbound stops to discharge only and its northbound stops to receive only so no one can travel locally within Florida on Amtrak any more.

Tackling the Headlines 92

Section 207 of PRIIA declared unconstitutional
Take: It's finally over. One hurdle for Amtrak's competitors has been obliterated.

CATS Blue Line Extension delayed
Take: Facepalm! I was hoping to catch the train from North Charlotte to the Arts District and Uptown this summer.

Tackling the Headlines 90: International Edition

Did someone just say a dirty word? (Hat tip James Coston)
Take:This goes against everything I constantly read from Amtrak apologists, people on online forums, and rail groups. I have read elsewhere that Japanese operators make money on running trains. If enough people do the research from themselves, then, the "no country makes money on passenger trains" narrative either goes away or it should primarily be looked at as an Amtrak problem vis a vis other operators.

A person with a rational mind has to question just how ultra egalitarian Sweden is able to deal with a Hong Kong company competing against SJ and a third operator between Stockholm and Goteborg while a much bigger America continues to have a monopoly operator that is making the passenger experience less and less pleasant as the days go by--closing stations, stripping overnight routes of dining cars, cutting back amenities on other overnight routes.

If NARP and other True Believers stopped putting all of their eggs in the Amtrak basket and were much more proactive, this country would once again passenger train service that the rest of the world envies. 

Rocky times in New Brunswick
Take: I hope everything works out and VIA service is expanded along the line.

Fragmenting Long-Distance Passenger Trains?

Railfan & Railroad, August

NEC a different matter 

• Not only is the NEC huge but the region but the region's congressional delegation would block any effort by AIPRO members to compete against Amtrak
• Maybe when the folks in D.C. get serious about infrastructure, then, we'll see Amtrak face competition in its home region. Until then, I wish the LEO Express people good luck because they'll need it
• By avoiding the NEC, Chambers is sticking to what he knows since the bulk of the AIPRO's commuter contracts are outside of Amtrak-friendly Northeast and Chicagoland territories

Opaque

• By opening the overnight routes up to competition, we'd finally be able to find out the truth about the financial condition of the routes

Cutting a deal?

• By capping the subsidy at 90 percent, the FAST Act is actually doing all potential Amtrak competitors a favor because these newcomers will be hungry and eager to demonstrate that the long distance train of the future is better off without Amtrak

Amtrak--another shot at the target

• "America's Railroad" may get the chance to counterbid but it'd be wise to figure out just which three routes it can do without

Role of Class Is

• As far as the major railroads go, Sections 209 & 214 of PRIIA as well as Section 205 of the FAST Act supersede their long-held Amtrak-only stance
• If the major railroads (continue) flout(ing) the laws, then Congress will have to play hardball: Allow non-Amtrak operators who fairly get contracts for state-supported or overnight routes on your rails or you'll be in charge of every intercity route outside of the Northeast--and in the process, reducing Amtrak to an NEC-only entity

Who bids?

• To me, it's simple: A partnership between independent and Class I railroads--shades of my rail consortium

Another thorny complaint

• Vernon discusses how the major railroads have griped about how Amtrak has never paid them market rates for access on their tracks. As it turns out, a fellow AIPRO member Stan Feinsod advocated a scenario in which other operators would use the commuter model in order to access freight tracks
• In the event the AIPRO is able to see its vision happen, then perhaps we could actually see some of its members revive and actively push for the restoration of service along routs Amtrak abandoned

High mountains to climb

• As far as the RRIF loan scenario goes, whatever it takes

The New Passenger Paradigm

Railway Age, July

Initial takeaway: Rail activists would be keen to read and reread the first sentence on what really led to the creation of Amtrak so they can stop spewing their defeatist nonsense whenever someone tries to propose out of the box ways to expand passenger travel in this country.

Third paragraph: Herzog was prescient and took notes before anyone on Capitol Hill even drafted PRIIA. Even though the AIPRO is small, it should say something that its members have the bulk of commuter rail contracts when a couple of decades ago, Amtrak had a near monopoly outside of the Northeast and Chicago.

Fourth paragraph: This expert nails it: The status quo cannot be maintained after 45 years when multiple operators have expressed interest in running intercity trains.

Fifth paragraph: The New Passenger Paradigm matches up with the late Gil Carmichael's Interstate II and my rail highway concepts.

Sixth paragraph: Based on what Mr. Chambers is saying, all that's needed is for the feds to actually enforce the laws and end the stasis once and for all. After all, when the time came to enforce the Pilot Program in accordance to PRIIA guidelines, the FRA waited a full two years to do so and by that time, there were too many loose ends that the old program just withered away despite immense interest. Another thing is to make sure that the feds do not play favorites--i.e., rig the process to maintain Amtrak's near monopoly (the 2012 near miss comes to mind).

Second column: Regarding the push for new legislation, somebody has to do it because the resident rent seekers sure won't. When it comes to Section 301 not being enforced, one can only look at the executive branch and ask: What happened, President Obama, USDOT, FRA? Was it in any way retaliation to some states returning stimulus money? Was the lack of enforcement actually stimulus related?

If the feds had followed the German model, we would already have: 1) states having greater flexibility to select operators and set their own standards and 2) Amtrak having a surplus amount of equipment due to it experiencing the same type of contract losses of its intercity routes that it's had with its commuter service. The next president and Congress would be very wise to adopt AIPRO's statutes. The second proposed statute would be an excellent way to make money. JR West does this now and Brightline and Housatonic plan on turning their station areas into prime real estate.

Tackling the Headlines 84: New Amtrak CEO

Last Friday, the Amtrak Board surprised everybody by announcing that former Norfolk Southern CEO Wick Moorman will succeed Joe Boardman on September 1--a month early.

The People Who Were Passed Over

Various magazine issues speculated as to who could replace Boardman presented various names earlier this year. In the May issue of Trains, AAF's Gene Skoropowski gave Don Phillips a list of four railroad leaders who were in their 30s or 40s. In the following issue, Phillips looked at former Amtrak veterans Al Engel and Richard Phelps--both of whom left Amtrak in 2011 (it is worth noting that in that same June issue, the Amtrak Board ignored Boardman's handpicked search firm/successor).

In the Second Quarter issue of Passenger Train Journal, NARP CEO Jim Mathews warned about the dangers of an NEC-centric board could have on the next president's agenda. The magazine reported that the Amtrak Board also ignored suggestions from the States for Passenger Rail Coalition.

As Jim Wrinn said, Amtrak was on time for once. When Tom Downs was replaced, the Board named George Warrington as the interim president and didn't remove his name when challengers stepped up. The result? Amtrak almost went bankrupt due to his all-in focus on the Acelas. It took the Board a year to transition from David Gunn to Andrew Kummant. Then, after Kummant left, Boardman, fresh off of his FRA duties, was appointed as the interim boss for over a year before the Board removed the interim tag. Until last Friday, it looked as though the Board would appoint yet another temporary person who would become the permanent head.

My Prediction vs Actual Outcome

I thought for sure that the Board would pick someone who would continue along the same path of taking the states for granted and still be in reactionary mode in the wake of competition. As far as Moorman goes, he falls outside of the names listed by magazines and rail experts only because he initially told everyone that he was going to just enjoy his retirement.

Amtrak's Path Forward

The operator is in need of fresh blood. The last railroader to run Amtrak--Andrew Kummant--was a low-level Union Pacific leader and had a very uneventful two-year tenure. Amtrak is staring at a future where: 

1. All Aboard Florida's Brightline is about to resume the era of private passenger service. A successful run may mean that Florida's leaders implent their version of a California-like system without even talking to Amtrak
2. Regional and shortline railroads are either providing intercity services or are planning to
3. A trade group representing Amtrak's commuter competitors is chomping at the feet of "America's Railroad" to grab intercity contracts of state-supported corridors and overnight routes courtesy of the FAST Act (and PRIIA before it)
4. Congressional pull alone may not be enough for Amtrak to maintain its near monopoly on passenger routes. Ironically, the tipping point may have been the Senate's failed attempt to drive private competitors out of the business in the spring of 2012
5. The states themselves may be tired of paying high prices to keep Amtrak as the contractor of their routes when they have budgets to balance and expansion is met by the national operator by endless studies to nowhere. Indiana may have gotten the ball rolling by contracting the Hoosier State to Iowa Pacific, but there will be a state or group of states that will completely break away from Amtrak

What It Means for Competitors

With a former Class I executive running Amtrak, it may or may not be a bit more difficult for AIPRO members and others to get existing routes away from the national operator but time will tell. However, I will say this: It's very unlikely that Mr. Moorman will be as combative towards other operators. If anything, the new Amtrak CEO may decide on his own just which routes are worth keeping in the Amtrak system and which ones would be better off in the hands of someone else.

Tackling the Headlines 82

Long distance competition at last?
On Wednesday, the FRA finally complied with Section 205 of the FAST Act and set the standards for bidding on long distance routes

TL;DR analysis: For once, the FRA is following the law on time. I want to see what the Ed Ellises and the AIPROs of the world do with overnight routes. 

Full analysis: Go to Tumblr.

More destaffings
Recently, Amtrak has been turning staffed stations into unstaffed stations. Now, Homewood, IL and Wolf Point, MT have been added.  

Take #1: I seriously wonder if Joe Boardman has enacted some kind of a scorched earth policy on his way out. The rash of destaffings and stripping the Silver Star of its dining cars come to mind as possible ways the lame duck Amtrak president is getting back at a lot of people. The latter act is also justification for the FRA's actions a couple of days ago.

Take #2: I am also getting tired of know it all railfans justifying small towns and suburban locations losing agents. Not everybody has access to technology and not everyone wants to handle computers. That mentality is exactly why so-called "flyover country" is in open rebellion against city folks. Instead of reducing staffed stations, a responsible company would be adding staffed stations.

Alabama rising?
Earlier this month, news broke that Corridor Capital was planning a regional rail system for Alabama and two other states and headquarters in Montgomery. As it turned out, Alabama media ran with this story big time. However, last Friday's NARP's newsletter poured cold water on exactly who was backing Corridor Capital's efforts. The Southern Rail Commission not only denied supporting CorrCap but also decided to stress how it was working with Amtrak among others.

Take #1: I had to reread the stories from the Alabama press and not once did I ever get any idea that CorrCap was even mentioned as an operator.

Take #2: A comment on the Trains Magazine page on the SRC's disavowal of CorrCap says it all: "So I guess if you are a private sector entity seeking improved passenger rail service the politicians don't want you." When I said that advocacy groups needed to adapt to a post-monopoly era rather than going all in with Amtrak, I didn't think that I'd have to also apply this to the states but given this development and Minnesota picking Amtrak to run the Northern Lights Express even though the planned second Chicago-Twin Cities frequency won't serve Minneapolis, I guess I have to.

Take #3: I wonder if NARP got into the SRC's ear and told them to distance themselves from Corridor Capital given how attached to Amtrak NARP really is.

Take #4: There is no excuse for the New Orleans-Orlando route to still be "suspended" after 10 1/2 years! If someone else can come along and get something going, that group should be commended not ridiculed the way CorrCap is now.

Take #5: Going back to Mr. Norton's comments in the Trains article, he's right on. The Floridian (1971-79), Gulf Breeze (1990-95), and the Gulf Coast Limited (1984-85 & 96-97) have all come and gone. If an entrepreneur is trying to provide a service that is absent and the only thing the current operator is doing is subjecting states to endless feasibility studies, sooner or later, the public will have to go with the person who is thinking outside of the box.

St. Louis Union Station excursions
Links can be found here, here, and here.

Take: Until non-Amtrak operators are allowed to run overnight trains and America gets serious about European-style high speed rail, this might be as good as it gets. But at least, Union Station is finally being used for its original purpose 38 years after Amtrak left.

The Tower 55 reroute

The Texas Eagle's Tower 55 reroute from its current Union Pacific tracks to Trinity Railway Express tracks has been in the news recently

Reasons for the reroute

• It saves time
• No more backing move at Fort Worth
• The projected TEX Rail could transform the Dallas-Fort Worth area into a rail hub

Reasons against the reroute

• The effort to reroute Amtrak trains onto TRE tracks was purely political
• Amtrak delays north of Dallas or south of Fort Worth thanks to Sunset Route misadventures could adversely affect TRE trains
• Removing the Eagle from the UPRR tracks could permanently result in the loss of access for future intra-Texas rail service

My personal thoughts
Although I do favor the separation of passenger and freight rights of way, I generally tend to support it in wide open rural areas as opposed to the Dallas-Fort Worth megaplex, which has sprawling suburbs.

The liability issue is doubly tricky since the T will be picking up the tab without any support from its TRE partner DART after the Fort Worth agency agreed to assume liability for accidents that involve the Eagle along its tracks.

It's a draw

The Supreme Court delivered its ruling on Monday...just not on the Section 207 metrics. Instead, the high court ruled that Amtrak is a public organization.

I agree with those who say that SCOTUS punted and is setting up a much bigger battle later on. All of the buildup ends in a whimper. One would hope Congress will clarify the metrics in the upcoming rail bill but we'll see.

Tackling the Headlines 62

East-west Amtrak corridor promoted in Illinois
Take: This is looking like a Plan B since Iowa is totally uncooperative with extending the route across its state. Maybe, when Terry Branstad is sent to the retirement home, the Iowa DOT can return to Earth and provide the funds to produce a route that is not necessarily operated by Amtrak and doesn't necessarily stop at Union Station in Chicago.

Black Hawk update
Take: So, is Canadian National trying to replace Union Pacific as the most passenger hostile Class I railroad? Anyway, it's better to get part of a route working than to end up with with a situation like Ohio.

Indiana puts the Hoosier State up for bid...
Take #1: So, it begins. If Amtrak loses this route, then, this will be a ripple effect across the nation as other states look more closely at their budgets, with the goal of saving money by selecting the operator who will provide them the most service for the smallest amount.

Take #2: My official take and what it could mean for Amtrak can be found here.

Take #3: Assuming that all of the hurdles with the tracks and all six hosts are overcome, the new operator could extend one frequency to Cincinnati with a second one to follow shortly thereafter and another to Louisville for a total of four Chicago-Indianapolis frequencies plus the Cardinal.

Take #4: The only thing I don't like is the extremely short timespan that other companies have to submit bids. However, if a competent operator steps up, then the April 29 deadline will be moot.

...and Oregon and Washington State could be next
Take: If this happens, then Amtrak management should very, very worried because the Cascades' southern neighbor could follow.

Talgo shifts its focus where?
Take: Even Michigan is interested in making Wisconsin look foolish. Enjoy those leftover Horizon Cars, Scott Walker.

Chief fight moves to Congress 
Take: Now is the time for the innovators and D.C. pols to step up and provide a real workable solution.

Vermont House OKs Ethan Allen rail extension
Take: This move is the right one. Rather than rerouting an existing train, Vermonters will get an extra option to travel to New York City.

Disrupters, Innovators & Rent Seekers in Rail

Introduction

The purpose of this post is to demonstrate how disruptions, innovations, and rent seeking apply to the world of passenger rail just like it does to any other form of business.

Here are some examples of business disruptions. Such actions have resulted in life being much better for society today. 

Rent seeking is the yang to disruption's yin. As Steve Blank says about this counterbalance:  

Rent seekers are individuals or organizations that have succeeded with existing business models and look to the government and regulators as their first line of defense against innovative competition… Rent seekers spend money to increase their share of an existing market instead of creating new products or markets…

Overhauling the Paradigm Could Make the Passenger Train Thrive Once Again

Here are some possible scenarios of how passenger rail could drastically change for the better:

• Operators provide multiple classes of service--beyond today's coach, business, first classes
• Premium and specialty food service on trains
• New operators using historic stations in major cities that are currently commuter only or have no meaningful Amtrak service
• Train tickets that include non-rail connections and transfers between multiple stations in the same city
• Rail operators providing other services at stations, like real estate agencies 
• Private industry like travel agencies and cruise companies getting into the world of passenger rail
• Expanded Auto Train service, regardless of operator
• Some ideas for unconventional rail travel Jon Fostik and I separately proposed a few years ago
• All-sleeper trains that are affordable but also offer premium rates
• The recent move by the feds to allow Caltrain to use European style equipment on U.S. tracks
• Different ways to finance passenger rail given that politicians aren't readily receptive to funding trains

Who Are Passenger Rail's Innovators Today?

Passenger rail ridership in America is at its highest in decades but most expansion plans to draw even more riders are stuck at the station due to congressional gridlock. There are disagreements over whether Amtrak—and by default, the public sector—should continue its role as a monopoly operator or if other carriers—some of whom are privately run—should be allowed to compete.

In the midst of the fight over passenger policy, there are several renegades who are not waiting for Congress or the White House to set new laws. In the last three years, Iowa Pacific has emerged as a potential shortline powerhouse by planning and providing passenger service to areas that hadn't carried people in decades while Florida East Coast’s All Aboard Florida has laid the groundwork for passenger service in 2015. 

Meanwhile in Amtrak's own backyard, Housatonic and New England Central have plans to provide service to cities that are underserved by the national carrier.

Last year, two different companies provided plans to run private service between Portland, ME and Montreal--one during the day, the other, at night. For years, the feds have included a Boston-Montreal route as part of a national high speed rail system, but the problem is that HSR money has dried up and even if it hadn't, there would have been some serious disagreements over where the route should go (via the Downeaster/western ME, central NH or Springfield, MA/Vermonter).

The Roadblocks to Innovation

Just as there are people who are thinking beyond an Amtrak (-only) world, there are many others who aren't willing to give up the existing order without a fight:

• The aviation and highway lobbies along with their allies like think tanks and politicians
• The Class I railroads and the AAR's Amtrak only stance
• Amtrak management's complacency (continued focus on the NEC at the expense of its other routes)
• Rail activists who support the status quo and oppose competition
• Amtrak friendly politicians who resist meaningful changes for the national carrier (NJ Transit & politicians and the Northeastern congressional delegation)
• A segment of the rail community that is opposed to lighter equipment being used because they allege that the European cars are "too dangerous" despite the fact that bulky equipment currently used on U.S. rails has its own safety issues
• True Believers who think that giving more money to Amtrak is the answer while failing to realize that the agency's management is too focused on the Northeast
• The FRA's inane standards on things like equipment crash-worthiness 

How Rent Seeking Is Blocking a 21st Century Rail Renaissance

I will now provide some examples of how rent seeking behavior is hurting the cause for passenger rail by responding to three of Blank's quotes:

Instead of offering better products or better service at lower prices, rent seekers hire lawyers and lobbyists to influence politicians and regulators to pass laws, write regulations and collect taxes that block competition.

When foreign operators devised plans to run HSR in late 2009 and early 2010, Amtrak was forced to create an HSR department just to keep up.

Amtrak president Joe Boardman sent a letter to four congressional leaders to impose burdens on some of these would-be HSR competitors by playing the liability card.

In 2012, the Senate proposed three provisions that would have stunted competition. Amtrak claimed plausible deniability because Senator Durbin and Majority Leader Reid took the brunt for proposing such foolishness. It wasn't coincidental that the move was directed at the very operators that have constantly outbid Amtrak on commuter contracts and formed the Association of Independent Passenger Rail Operators in 2011 to bid on intercity routes.

When companies are protected from competition, they have little incentive to cut costs or to pay attention to changing customer needs.

The Tea Party backlash of 2010 led Amtrak to primarily focus on the Northeast Corridor without much detail to the rest of the system. Remember, the non-NEC states are paying Amtrak for Section 209.

The FRA’s foot dragging on Section 214 provisions led Amtrak to tell three states to pay for a non-corridor train or lose service in 2016. That lax federal enforcement has also led Amtrak management to not make any serious efforts to provide additional equipment for the Western long distance trains.

The national operator is planning to completely phase out its remaining Heritage fleet while providing no additions to its eastern long distance capacity and completely neglecting inactive Superliners. Rumor has it is that Amtrak would rather scrap its older equipment than see other companies use it for state-sponsored services. 

Startups, investors and the public have done a poor job of calling out the politicians and regulators who use the words “innovation means jobs” while supporting rent seekers.

The Nightmare Scenario or the possibility of Amtrak only running overnight routes (plus the NEC) would stifle any hopes for reviving passenger rail in this country yet most rail advocates haven’t gotten this message, choosing instead to support the near monopoly.

On the other hand, it’s to the AIPRO’s credit that it got a jump start in challenging the rent seeking activities by pointing out the regulatory burdens. Now, someone needs to point the following out to the unions: If they are opposed to non-Amtrak operators, then they are in effect opposed to more jobs.

Conclusion

Innovation has helped other businesses and can help passenger rail—if entrepreneurs are allowed to. Rent seekers are around the corner and will seek to keep the laws as they are. If this latter group succeeds, then the public will be the biggest losers as America would continue to have mediocre rail service, and anti-rail forces will then continue to mock passenger trains as "outdated."

Dreams of Passenger Rail's Future

The title is from the December 2013 edition of Railfan & Railroad Magazine's Capitol Lines column written by Wes Vernon. The column was based on last year's Passenger Trains on Freight Railroads Conference where four panelists involved in the railroad industry gave their visions on the future of passenger rail in America. 

The panelists were railroad attorney John Heffner, All Aboard Florida's Gene Skoropowksi (formerly of California's Capitol Corridor), Iowa Pacific's Ed Ellis, and Amtrak VP for Governments and Corporate Communications Joe McHugh.

"More cohesion instead of the piecemeal routings here and there. The entire picture is likely less monolithic or under one entity known as Amtrak." (Heffner) 

Vernon interjected by suggesting that Amtrak remains "the 'spine' of intercity operations." Even with the failed attempt to leverage intercity and commuter rail back towards an Amtrak monopoly, "business as usual" can no longer be considered good enough for travelers.

Regarding PRIIA, Vernon looked at the possibility of states looking to private operators if they can't find alternative public funding, which in turn could lead Amtrak to using more of its equipment on longer routes. 

Once those PRIIA extensions that were signed last year expire, the states should make a serious effort to talk to other operators to reduce the cost of running their corridors. As far as the equipment goes, I have been a huge advocate of Amtrak keeping its equipment in the event states look elsewhere so that it can spread to other parts of the country.

Heffner says that there is no end to potential nationwide expansion, possibly a combination of Amtrak and non-Amtrak operators, some under contract to state or regional government agencies. It may be freight railroads, perhaps short lines or regionals deciding to just run their own passenger service. (Vernon)

There can be no end to expansion because America still has a skeletal system and other various other entities could be the key to reviving the national network.

The dream scenario leaves Amtrak as (again) the operator of most, if not all, long-distance trains. On the Northeast Corridor, Amtrak would remain the only operator other than the commuter lines. (Vernon)

A dream for who? Maybe that's a True Believer's dream scenario but as long as the current people (board and management alike) continue to run Amtrak, this is much closer to my Nightmare Scenario. President/CEO Joe Boardman and various board members have done nothing to advance long-distance trains. If anything, they're either willing to keep the status quo or see the long-distance network shrink by inaction. 

When Amtrak gets fresh blood who just won't have a dismissive attitude about expansion (i.e., always citing high costs and passing on adding routes) and is willing to consider Western passengers' needs by ordering new equipment, then will I believe that "America's Railroad" is committed to the nation as opposed to just one region.

Speaking of that one region, the NEC states' political bloc will likely use their clout to keep out anyone who may want to take on Amtrak.

Vernon cited how the shortlines are trying to get into the passenger business due to limited expansion opportunities for freight in the future.

The shortlines are proactive while the big boy railroads are reactive. The Class I railroads are focused on their specific needs and have to be goaded into dealing with passenger service (see Amtrak throwing in the towel on talking to CSX about converting the Cardinal to daily service as just one example).

The shortlines could also play the role of saviors when it comes to routes/segments/towns that are abandoned by Amtrak.

The Type of Rail Reform That's Needed

It’s almost time for Congress to take up the next rail reauthorization bill. Here are my recommendations:

State-Supported Trains

Congress should make it much easier for states to select other operators by mandating a competitive bidding process. The interest is clearly there, and these two 2011 stories expressed the Association of Independent Passenger Rail Operators’ interest in running corridors. However, the hysteria surrounding PRIIA Section 209 got in the way. 

Regarding point #8 that NARP laid out in its vision for the reauthorization bill, if Congress enacts this, then, these 18 states operating 19 corridors will continue paying high costs to Amtrak and leave them vulnerable to shifting political climates (see WI and OH when it comes to conventional rail--never mind what FL did to high speed rail). These corridors shouldn't just be about Amtrak because there are routes that would be better off operated by someone else.

I would much rather see the states divided into nine regions (mostly based on regional pacts like MWHSR) and being protected the way German state routes are. 

Long Distance Routes

Since the Federal Railway Administration failed to do its job with Section 214, it’s up to Congress to permit some type of competition. As a matter of fact, Congress should force the FRA to conduct a pilot program that allows an overnight route to be leased out to another entity for five years (this route would get enough money to make it profitable). Congress should also make it much easier for private organizations to partner with the hosts because if Amtrak is unwilling to add sufficient equipment or routes to expand the national system, someone else must be given a shot.

Needed: A National Rail Network

It has been three years since President Obama’s effort at building a national HSR network collapsed. In its place, calls for “high performance rail” have surfaced. 

In that vein, the federal government should conduct a study on how much it would cost to upgrade the national network via Interstate II (Exhibits A & B) and rail highways (Exhibits C & D).

Ideally, existing overnight routes would be linked to each other and to former routes and segments that were abandoned by Amtrak and the fallen flags of old. This type of overhaul may not be as flashy as a nationwide high speed rail network, but it would be less costly, connect more travelers, and serve more people.

A Remedy for the Southwest Chief

Speaking of a national intercity rail network, the feds should begin the process of building one by having the FRA or the USDOT take over the 700-mile stretch of the Raton Pass Route between Newton, KS and Albuquerque, NM in 2016. Whatever agency controls the route would then upgrade the tracks and have an open bidding process where freight and passenger entities would be selected to provide service to customers and residents in KS, CO and NM. Based on space, the Raton Pass Route would be at least double tracked throughout and even have separate freight and passenger rights of way.

The shortline company or independent operator that replaces the Southwest Chief should then be allowed to provide connections in Newton to Amtrak and Belen, NM to Amtrak and Rail Runner trains. It goes without saying that this new entity would also have more than one frequency along its route and that Amtrak would then reroute the Southwest Chief onto BNSF’s Transcontinental Route.  

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CAHSR gets treated like a yo-yo

Take: These recent moves are setbacks for the project, but the project will continue--just in a compressed amount of time.

Dallas-Houston HSR train could be running by 2020

Take: The idea that they could get this finished before the first leg of the California project is quite astonishing.

Rail fix on track for 2015 passenger service

Take #1: A parallel route to the current Vermonter should pave the way for the Montrealer's revival and the possibility of eventually having three or four frequencies between Springfield and St. Albans would really make the Knowledge Corridor live up to its name.

Take #2: This also comes with a bit of bad news: Amherst would be replaced by a bus. This is primarily due to the fact that the Central Corridor did not receive any TIGER funding earlier this year. It's also worth pointing out that the New London-Brattleboro corridor is still being negotiated between the CT DOT and the NECR while the MA DOT is conducting a feasibility study on the corridor. While it's possible for an NECR shuttle train between Amherst and Brattleboro to supersede the bus, who knows when the NECR would be able to start full service between Brattleboro and New London?

Southwest Florida on the fast-track for proposed railroad corridor

Take: Is this thing on? Okay, Florida DOT officials, this is yet another community that is expressing an interest in operating some type of passenger service. Governor Scott and ex-Governor Crist need to get this point: The DOT needs to stop dragging its feet and produce its own intercity rail system! 

The current DOT boss is waiting to see how successful the privately operated All Aboard Florida service is before committing to intrastate service. Instead of being completely reactive, Tallahassee needs to grow a spine before it has a mess on its hands--a series of disjointed or ill-timed commuter routes, spotty Amtrak service, and privately run FEC-AAF trains that skip small towns. 

I'm not saying that that Amtrak should operate this system. If anything, Amtrak should only operate the East Coast route between Jacksonville and Miami as the "local stops" alternative to All Aboard Florida's initial service and northern extension that will end up as "express services." Florida has been innovative before, and it should be innovative once again. Contact Richard Branson, Bombardier, and the AIPRO and let them bid for the other corridors (including the "suspended" leg of the Sunset Limited and the S-Line route Amtrak foolishly abandoned nine years ago).

Transit experts: Orange, Durham not ready for light rail

Take: These "experts" primarily focused on neighboring Wake County and only made a passing judgment on the other two counties. Durham and Orange Counties got their act together while Wake fell behind due to the Tea Party backlash of 2010. 

Advocating for better rail service

Take: Canada's clearly in worse shape than America. People here wonder what would happen if Amtrak only operated the Northeast Corridor and a few other routes. Via Rail Canada is the lab rat since it's primarily focusing on the Montreal-Toronto corridor. If residents along the affected portion of Via's recent cuts band together, then they could form a coalition so someone else can operate trains to their communities. Otherwise, the Wilner Plan would be more applicable (and appropriate) to Via Rail than Amtrak.

An open letter to Joseph Boardman

Dear Mr. Boardman,

Now that you have been given an extra two years, here's some advice for you: Amtrak needs to have a concrete plan for future routes and should display such routes on its system map. Ridership is up and more people are traveling but seats are sold out and there's a serious lack of equipment. 

What is your focus? That is, will you continue to provide lip service to routes outside of the Northeast, Wolverine, and Lincoln corridors? If the NEC is truly your future, Amtrak should go to Congress, the FRA, and the STB to put some of your other routes up for bidding.

Speaking of other operators, Mr. Boardman, you yourself know that other passenger entities are waiting in the wings to outbid Amtrak on existing and future routes. Rather than relying on your congressional buddies to unfairly tilt the playing field in your company's favor, provide Congress, the states, President Obama, and riders compelling reasons why Amtrak is better than AIPRO members, Virgin, and other carriers.

The next time you conduct a route study, call the host railroads on their bluff, and for goodness sake, don't throw your own employees under the bus when the going gets tough. There is no reason why the Cardinal shouldn't be a daily train. There is no reason why Panhandle residents should be without train service for almost eight years now. Speaking of the Sunset Limited, either restore the eastern link or allow another operator to conduct daily service between New Orleans and Orlando because the drama has dragged on long enough. When it comes to the Southwest Chief, fight to keep the train on its current route between Newton, KS and Gallup, NM.



Sincerely,



The Rail Enthusiast

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X-Train news

Here's a report on where in Vegas the train will stop and here's the latest info on when it will launch

Take: It seems that Paul Druce and X-Train rival Pullman Palace were unto something earlier this year because this entity officially known as Las Vegas Railway Express Inc. is setting itself up to be a stillborn project.

Railroads expected to fall short of PTC deadline

Take: This is what happens when Congress passes a measure and expects the railroads to pay for it.

Over in the UK, hardcore Labourites are calling for the revival of British Rail

While the controversy may be over one rail line, the end game is about driving all of the franchises out of business.

Take: This news would probably be joy to the ears of True Believers and other people opposed to Amtrak competition and would supposedly be "proof" that the British experiment failed. However, the problem is that the government's botched privatization has gotten all of the attention rather than the fixes that it made and the franchises that have actually succeeded.