Gilbert B Norman wrote:SouthernRailway wrote: Isn't Amtrak supposed to be "for-profit", though?
That's what the language says, Mr. SRY, but be it assured all concerned that another bureaucracy was being born. The language was there to mollify President Nixon who would have been loath to have a new bureaucracy formed during his presidency (of course we conveniently forget the EPA).
I was in the industry ("not ecactly" high up) during the formation of Amtrak. The "for profit" stuff was good for a joke.
The identity crisis here is the root of the problem at Amtrak. Is it for-profit? Is it a public service? To what degree should it be either assuming there is a spectrum and no exigent factors that affect the service-versus-profit tradeoff.
Given the extreme identity crisis the carrier has seen over 45 years and the complete unpredictability of who the friends will be - certainly has not been along party lines - it's very hard to evaluate the company for doing anything other than staying alive and running trains. It doesn't surprise me that they're afraid to clearly define a strategy (either profit or public good) as they'd lose either the public backing and NEC profits or both.
I have long maintained that the concept of franchising out a few operations is sound practice, as these new for-profit operators have no political baggage and freedom to take risk and innovate. If the risk fails, our tax dollars aren't wasted. If the risk succeeds, Amtrak can adopt the innovation.
For example:
1. Iowa Pacific banked on deluxe food service to increase passenger loads and thus revenues. It didn't work (although the revenue share w/ CSX is an exigency there) so Amtrak hasn't gone back to traditional food service.
2. Auto Train Corp took a risk and proved that, in at least the eastern market, people were willing to do the car-on-train concept. Although they went under due to overexpansion and some accidents, the concept proved sound and Amtrak adopted it without having to take much of a risk.
3. With Brightline - Amtrak risked a lot on this new multi-level, and after the failure, wound up with a deal for Siemens cars that were already being delivered and certainly had passed crash tests. The fallback itself (after dust settled from their latest disaster) cost them little.
Perhaps selecting franchise operators for at/near profit corridor services would be the smart move with a healthy revenue split for all.
The new Acela: It's not Aveliable.