Amtrak
Mr. Speaker, I am pretty excited about the fact that we are going to spend an hour discussing Amtrak. I do not think anybody in this country knows more about transportation and transportation infrastructure and the needs of transportation…
Mr. Speaker, I am pretty excited about
the fact that we are going to spend an hour discussing Amtrak. I do not think anybody in this country knows more about transportation and transportation infrastructure and the needs of transportation than the gentleman from Minnesota (Mr. Oberstar). I have asked him to give us kind of a broad background, bringing us up to date as to how we arrived where we are as far as Amtrak is concerned in this country. And then we will go to the other speakers.
I yield to the gentleman from Minnesota.
Would you answer just one question for me before you leave. Can you let me know whether there is any form of transportation that pays for itself?
You know, we have been raising this issue about aviation, and, you know, we put billions of dollars, I forget how many billions into aviation, and we talk about our transportation bill, we have it on the floor today, and we are putting it in.
But is there any mode of transportation in the whole world that pays for itself?
Mr. Speaker, now the gentlewoman from Indiana (Ms. Carson).
Mr. Speaker, now I would bring up the gentleman from California (Mr. Costa). He is new to the Congress, but not new to the fight as far as passenger rail is concerned. He has a history that precedes him in the legislature in California.
Mr. Speaker, would you believe that 66 percent of the American people support Amtrak? Not 66 percent from the Red States or the Blue States, but 66 percent of the American people.
Mr. Speaker, I yield to the gentleman from Maryland (Mr. Cummings), a member of the Committee on Transportation and Infrastructure and a leader in this country on transportation and infrastructure.
Mr. Speaker, reclaiming my time, may I ask the gentleman one question before he leaves?
I know that the gentleman comes from Baltimore, which is a big city, and many people look at the big city and know that we need Amtrak. But would the gentleman believe that 109 small cities do not have any other form of transportation? They do not have bus service, nor do they have air service.
Mr. Speaker, I thank the gentleman.
Mr. Speaker, it is now my pleasure to yield to the gentleman from New York (Mr. Bishop), also a leader on the Committee on Transportation and Infrastructure.
Mr. Speaker, I have a question for the gentleman: Can he repeat how much we are proposing to spend this year on Amtrak?
Zero.
Mr. Speaker, $1.8 billion. Would the gentleman believe that we are spending $1 billion a week in Iraq, $4 billion a month in Iraq, and with $3 billion, it would completely fund the Amtrak system and bring it up to date. The people that pay the bill are getting the short end of the stick.
Mr. Speaker, I thank the gentleman.
Mr. Speaker, I would like to yield to the delegate from the District of Columbia who is a leader on the Committee on Transportation and Infrastructure and has been on that committee ever since I have been here in Congress for over 12 years, and I know longer, but certainly is the voice for transportation, not just in the District, but in the country.
Mr. Speaker, would the gentlewoman yield?
We are working on the bill; hopefully, we will pass it tomorrow. But I want to point out, we are looking at a bill that is $284 billion, and our Department of Transportation indicated that we needed $375 billion. So we are way behind. This is because this Bush administration does not support the investments that we really need to make in transportation, and that is why we are 17 months behind passing a transportation bill that the country and all of the Governors, the local communities, the private sector, they all need this investment, because our infrastructure in the United States is falling apart.
Mr. Speaker, if the gentlewoman will yield, our local Coast Guard came to Washington and carried the Florida delegation home.
And it took all day, because the group was stationed out of Jacksonville, so we flew from here to Miami, then we went to Fort Lauderdale, Orlando, then to Jacksonville. That was the only way we could get out of the city.
But let me mention to the gentlewoman from the District of Columbia, after September 11, there was another plane that went down in New York. I do not know whether you remember that; it went down in Queens.
I was in New York at that time. I had checked out of the hotel, and the hotel would not let us back in. We did not know what was going on. And everything shut down, like the gentlewoman said. The airport shut down; the bridges shut down. There was no way out of the city.
I went to the Amtrak station and there I saw several Members of the Senate and the House, and that is how we were able to get out of New York City and get back into Washington, D.C. It is a safety issue. Why would the richest country in the world even consider not having a rail transportation to move people in time of crisis.
Mr. Speaker, if the gentlewoman will yield, it is truly hard to believe how an administration could state that it is their goal to put an industry out of business and put them in bankruptcy. To me, it is just a clear example that we have gotten our priorities wrong.
I think that this debate should not be between Democrats and Republicans, House and Senate. I think this debate, I think it is very important for the American people to weigh in on why they think it is important. One of the things that I think has been a failure is that we have not been able to convey the importance of rail service in this country.
Mr. Speaker, I want to be clear that there is no mode of transportation, including rail, that pays for itself, not only here in the United States but nowhere in the world. Public transportation is just that. We subsidize every forming of transportation.
I really welcome this debate because I think we have been nickeling and diming Amtrak to death, and now we need to put up or shut up. And I think the American people, where 66 percent, not from the blue States and the red States, but 66 percent of the American people said that they want passenger rail in this country.
I want to point out ridership on Amtrak is up 1 million passengers. People are using the services. You lawyers do this, suppose this. Well, let me just say, my position is what happens when failure is not an option. We cannot fail the American people on this issue. This issue is bigger than us. This is bigger than the Congress. This is about the future of America. It is about post-9/ 11 and whether or not we are going to provide the safety that the American people need. We are talking about homeland security. This is homeland security.
We have got to make sure that we can move people and not just invest in operations, but we need to invest in safety, and not just for Amtrak but for all of the systems. Because look what happened in Madrid when the Amtrak was bombed. I mean, those are the kinds of things that we need to be looking into. How can we make sure the system is safe for the ridership?
This administration is short-minded. They have their priorities backwards in many areas. And certainly, I feel that, I guess when you get a 53 percent mandate, you got it going on. But as far as I am concerned, the American people need to understand, and I think it is our job to help educate them on the importance of Amtrak and give them a method that they can communicate to us and let us know that Amtrak is important.
With that, I am proposing that we do a series of whistle stops throughout the country. I think the Members need to get out into the districts, ride the train, and talk to the people that are doing that ridership. And we are working on that, and we are organizing that. And I hope that the gentlewoman will participate because I think that the best thing to do is to have townhall meetings where the people can give us direct input.
This is the people's House, and we represent the people of the United States, and we are closer to them. We have to come before them every 2 years. And so I think this would be one avenue with those whistle stops, to get out and talk to the American people and hear what they have to say about Amtrak.
My hour is up. I am going to close by just saying, what do you do when failure is not an option? Failure is not an option when it comes to Amtrak. We must have Amtrak passenger rail service in this country.
The current funding issues concerning Amtrak brings up a fundamental question of where this Nation stands on public transportation. We have an opportunity to improve a system that serves our need for passenger rail service, or we can let it fall apart, and leave this country's travelers and businesses with absolutely no alternative form of public transportation.
Without the funding Amtrak needs to keep operating, we will soon see people that rely on Amtrak to get them to work each day, waiting for a train that isn't coming.
We continue to subsidize highways and aviation, but when it comes to our passenger rail system, we refuse to provide the money Amtrak needs to survive.
This issue is so much bigger than just transportation. This is about safety and national security. Not only should we be giving Amtrak the money it needs to continue providing service, we should be providing security money to upgrade their tracks and improve safety and security measures in the entire rail system.
Once again we see the Bush Administrations paying for its failed policies by cutting funds to vital public services and jeopardizing more American jobs. This Administration sees nothing wrong with taking money from the hard working Amtrak employees who work day and night to provide top quality service to their passengers. These folks are trying to make a living for their families, and they don't deserve this shabby treatment from the President.
It's time for this Administration to step up to the plate and make a decision about Amtrak based on what's best for the traveling public, not what's best for the right wing of the Republican party and the bean counters at OMB.
I represent Central Florida, which depends on tourism for its economy, and we need people to be able to get to the state to enjoy it. Ever since September 11th, more and more people are turning from the airlines to Amtrak, and they deserve safe and dependable service.
And this is just one example of Amtrak's impact on my state. Amtrak runs four long-distance trains through Florida, employs 990 residents with wages totaling over $43 million, and purchase over $13 million in goods and services last year alone. And they are doing the same thing in every state they run in.
Some people think that the solution to the problem is to privatize the system. If we privatize, we will see the same thing we saw when we deregulated the airline industry. Only the lucrative routes would be maintained, and routes to Rural locations will be expensive and few.
I was in New York shortly after September 11th when the plane leaving JFK airport crashed into the Bronx. I, along with many of my colleagues in both the House and Senate took Amtrak back to Washington. I realized once again just how important AMTRAK is to the American people, and how important it is for this nation to have alternative modes of Transportation.
This isn't about fiscal policy, this is about providing a safe and reliable public transportation system that the citizens of this Nation need and deserve.
Amtrak was created by Congress in 1970 to take over the money-losing passenger rail service previously operated by private freight railroad companies in the United States.
More than half of all rail passenger routes were eliminated when Amtrak began service on May 1, 1971.
Although Amtrak's route system has remained essentially the same size, it represents a mere skeleton of what was once the United States' passenger rail network.
During the period from Amtrak's inception through 2003, the federal government has spent $1.89 trillion on air and highway modes. In the same time frame, Amtrak received just over $30 billion in federal subsidies.
While the United States once had a passenger rail system that was the envy of the world, a lack of capital investment has stalled the advancement of corridor development throughout the country.
Dependent upon an annual federal appropriation, Amtrak's national network is constantly threatened by under-investment, lack of a clearly articulated federal rail policy, and an uncertain future.
Amtrak operates a nationwide rail network, serving over 500 stations in 46 states on 22,000 miles of track with approximately 20,000 employees.
During FY 2004, Amtrak carried just over 25 million passengers, representing an increase of over 4 percent compared to FY 2003.
In addition to operating 300 daily intercity trains, approximately 850,000 commuters each day depend on operating agreements with Amtrak, Amtrak-owned infrastructure, or shared operations.
Amtrak's Northeast Corridor is the heaviest traveled railroad in North America, with over 1,700 trains operating over some portion of the Washington-Boston route each day.
Compared to domestic airlines in FY 2002, Amtrak ranks 8th in ridership with a market share of 4.6 percent and 1st in passengers per frequency.
In FY 2004, Amtrak generated approximately $2.06 billion in revenues and incurred approximately $3.18 billion in expenses, covering 65 percent of its operating costs, on par with Canada, Spain and France. No passenger railroad system in the world operates without some form of public subsidy.
Outside the Northeast Corridor, five other corridors carry over one half million people annually. These corridors are: San Diego-Los Angeles-San Luis Obispo; San Jose-Oakland-Sacramento-Auburn; New York- Albany-Buffalo; Oakland-Fresno-Bakersfield; and Vancouver-Seattle- Portland-Eugene.
Amtrak owned property includes 2,141 railroad cars, 425 locomotives, 20 high-speed Acela train sets, a 97 mile segment of 95 mph track in Michigan, a 62 mile segment from New Haven, CT to Springfield, MA, 104 miles of 90 mph track in Pennsylvania, and 363 miles of the Northeast Corridor connecting Washington, Philadelphia, New York and Boston; the busiest passenger line in the country.
All transportation in the United States is directly or indirectly subsidized. Unlike aviation, highways and transit, there is no dedicated fund for investing in passenger rail development. These other modes all operate on predominantly federally owned or federally assisted infrastructure, and rely on government-supported security, research, and traffic controllers.
In FY04, the United States Department of Transportation's $59 billion budget included $34 billion for highways, $14 billion to the FAA, and $1.217 billion for Amtrak.
Amtrak's FY 2004 appropriation of $1.217 billion represented 2 percent of the Department of Transportation's $59 billion budget.
Countries with well-developed passenger rail networks but much smaller populations such as Germany and Japan invest $3-4 billion annually on passenger rail, representing over 20 percent of their total transportation spending.
In 2000, Canada announced a dedicated source of capital for five years to fund new equipment, modernize infrastructure, and improve its existing passenger railroad network. Canada's system is \1/3\ the size of Amtrak's and has \1/6\ the ridership.
The State of California has invested approximately $100 million per year in passenger rail over the past 10 years and its state-supported trains carried 4.25 million passengers in FY 2004, representing approximately 17 percent of Amtrak's national total. These trains are consistently achieving double-digit ridership growth, proving that investment in passenger rail will reap benefits.
Amtrak's corridor services operate over a 6,000-mile route system and serve 23 states, primarily in the Northeast, Midwest and along the Pacific Coast. With the exception of some trains operating between Boston and Washington, which cover their direct operating costs but not the corridor's significant capital costs, none of Amtrak's corridor or state routes covers all of their expenses from fare box revenues.
Outside the Northeast Corridor, five other corridors carry over one half million people annually. These corridors are: San Diego-Los Angeles-San Luis Obispo; San Jose-Oakland-Sacramento-Auburn; New York- Albany-Buffalo; Oakland-Fresno-Bakersfield; and Vancouver-Seattle- Portland-Eugene.
Thirteen states provide operating support for 20 different routes, with payments totaling over $135 million in FY 2004. Many states, including California, Illinois, Oregon, New York, and Washington recognize the benefits of investing in corridor development, and have spent substantial state funds to improve services with positive ridership results.
Currently, Amtrak operates the high-speed Acela Express service, which travels in the Northeast Corridor between New York and Washington in approximately 2 hours 45 minutes, and Boston and New York in approximately 3 hours, 20 minutes. Amtrak now carries 50 percent of the air/rail market between New York and Washington, and 39 percent of the market share between Boston and New York. This is up from 36 percent between New York and Washington and 18 percent between Boston and New York before Acela Express was introduced. This demonstrates travelers will increasingly use a reliable, trip-time competitive alternative to the congestion that is otherwise choking our cities.
Corridors in which states have invested funds to improve trip times and frequencies include the Pacific Surfliners in California and the Cascades Service in the Pacific Northwest. These corridors have multiple frequencies and the potential to become higher-speed rail corridors once infrastructure improvements can be made.
The State of California has invested approximately $100 million per year in passenger rail over the past 10 years and its state-supported trains carried 4.25 million passengers in FY 2004, representing approximately 17 percent of Amtrak's national total. These trains are consistently achieving double-digit ridership growth, proving that investment in passenger rail will reap benefits.
The route through the Northern part of the country, the Empire Builder, which carried over 437,000 passengers last year, is the only public transportation service in many communities in North Dakota, Montana and Northeastern Washington. For most of the states along the Empire Builder, tourism serves as a major economic engine. A recent study identifying the economic contributions of the Empire Builder demonstrated nearly $14 million in annual economic benefits to the state of Montana alone.
Long-distance trains also provide transportation during periods of severe weather conditions or emergencies that stall other modes of transportation. This was demonstrated after the September 11 terrorist attacks that grounded air travel. Additionally, these trains provide a strong economic benefit for the states and communities that they serve.
The majority of passengers on the long-distance trains do not travel between the endpoints, but rather to any combination of city pairs. For example, the Southwest Chief, which travels from Chicago to Los Angeles via Kansas City, has 33 stops, creating 528 possible trip combinations.
Most of Amtrak's expenditures are due to the immense capital needs of its infrastructure, particularly the Northeast Corridor, not the operating costs of the long distance trains. These operating cost figures should be cited with caution.
Critics often refer to the ``loss per passenger'' of the tong distance trains. However, each long distance train passenger is the equivalent of five short distance train passengers because of the greater distances traveled. More importantly, these ``loss per passenger'' figures often include not only the ``avoidable'' costs of operating individual long distance trains (such as the cost of diesel fuel) but all of the shared costs that Amtrak incurs for the benefit of both long-distance and corridor trains (such as the cost of mechanical facilities, Amtrak's computer systems, and stations like Los Angeles Union Station). Including shared costs produces inflated and misleading ``loss'' figures, since these costs will not go away if long distance trains are eliminated.
Eliminating all long distance trains would produce negligible cost savings in the first few years because of the requirement that Amtrak pay labor protection to impacted employees. When these payments ended after five years, the savings would still be minimal: around $300 million annually.
Eliminating individual long distance trains produce even fewer savings: most of the shared costs of Amtrak's long distance network, such as the costs of maintenance facilities that serve multiple long distance trains, would remain. Additionally, Amtrak continues to make changes to its long-distance trains that will improve revenue and finances for the system.
Amtrak recently exited from the mail and express business, resulting in shorter and more convenient schedules, with reduced labor costs. The repair of wreck-damaged equipment continues and will allow Amtrak to increase capacity, and therefore revenues, on long distance trains, which often sell out. These changes should help further reduce the losses of long-distance trains.
Amtrak's right to operate passenger trains over freight railroads comes from the Rail Passenger Service Act. This act states that: Amtrak has the right to access all rail lines in the U.S. to operate intercity passenger trains and; Amtrak trains have dispatching preference over freight trains.
With the exception of trains over the Northeast Corridor between Washington, DC, and Boston, MA, Amtrak trains operate over tracks owned and managed by the nation's freight railroad companies.
In the past, congestion on these freight routes has caused delays for Amtrak trains, however, this past summer has seen significant delays and inconveniences to Amtrak's passengers across the country.
Amtrak's 5-year Strategic Plan, which was approved by its Board of Directors on June 10, 2004, specifies that approximately $1.8 billion will be required for fiscal year 2006.
According to a recent report by the Congressional Research Service, both the now defunct Amtrak Reform Council and the DOT-IG acknowledge the need for at least $1.5 billion in capital and operating support.
Seeking no funds for direct Amtrak expenses and ceding control of the railroad to a
bankruptcy trustee, whose legal responsibility is to Amtrak's creditors, represents a drastic and unrealistic turnaround in the Administration's policy.
Since David Gunn's arrival, Amtrak Total Ridership has increased by 11.6 percent. The number of intercity trains operated have increased by 21.4 percent. The number of trains on the NEC has increased by 29.2 percent while others have increased by 17.3 percent.
Ridership on the NEC is 10 percent and other corridor trains, like the Pacific Surfliner, Capitals and San Juaquins in California and the Cascades in Oregon and Washington have increased by 27 percent driving a 12 percent increase in ticket revenue.
Americans have chosen it as their form of travel in record numbers. In the 3 years post September 11th, Amtrak has proven its value to the nation and has increased its ridership steadily.
Last year, Amtrak carried 25 million passengers, up from the previous year's record. When given the option, travelers choose Amtrak over other, less convenient forms of travel. In FY04 the air-rail market from DC to New York was split 50 percent to 50 percent, Los Angeles to San Diego was 30 percent to 70 percent and Portland to Seattle was 30 percent to 61 percent.
David Gunn has made real progress reforming the railroad since taking the helm in May of 2002. Over the last 30 months he has decreased the workforce by more than 22 percent, removing unnecessary layers on management, increased train service and operation, eliminated and realigned routes for greater efficiency and implemented more internal reforms than any of its previous CEOs.
In fact, Amtrak's core operating expenses are lower today than they were when he took over. David Gunn has made real reforms and has proven to be the right person to continue fixing the problems that have plagued Amtrak over the years.